TCRAP_Public/091001.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Thursday, October 1, 2009, Vol. 12, No. 194

                            Headlines

A U S T R A L I A

BABCOCK & BROWN POWER: Debt Restructuring Delayed Until Late Oct.
FORTESCUE METALS: Misses September 30 Financing Deadline


C H I N A

GAMMA PHARMA: Posts US$800,000 Net Loss in Quarter Ended June 30
INDUSTRIAL AND COMMERCIAL: To Acquire 19.26% Stake in ACL Bank
SHANGHAI PUDONG: Raises US$2.2 Billion in Private Placement


H O N G  K O N G

ANSOME COMPANY: Creditors' Proofs of Debt Due on October 27
AT ASSET: Member to Receive Wind-Up Report on October 30
EVER SHARP: Commences Wind-Up Proceedings
EXETER HONG KONG: Creditors' Proofs of Debt Due on October 27
KAM TAI: Creditors' Proofs of Debt Due on November 2

MARUBENI CHEMICALS: Commences Wind-Up Proceedings
MODERN BASE: Member to Receive Wind-Up Report on October 28
NEC TELECOMMINICATIONS: Wong Ka Wah Steps Down as Liquidator
PO HONG: Members' Final Meeting Set for October 30
SATORI AUTOMATICS: Member to Receive Wind-Up Report on October 27

SHUN YICK: Creditors' Proofs of Debt Due on October 27
UNIGAIN (P & M): Appoints Chan Kin Hang Danvil as Liquidator
UNION WINNER: Members' Final Meeting Set for October 30
ZOLA TECH: Placed Under Members' Voluntary Liquidation
ZOLA TECH: Placed Under Members' Voluntary Liquidation


I N D I A

AB SUGARS: ICRA Assigns 'LBB+' Rating on INR2.43BB Term Loans
AIR INDIA: Resumes Operation After Pilots Call Off 4-Day Strike
AMSAL CHEM: CRISIL Assigns 'BB-' Rating on Various Bank Debts
BANK OF AMERICA: Taps AIG's Sonthalia for India Capital Markets
DAMODAR J: CRISIL Rates INR320.0 Million Cash Credit at 'BB'

DK INFRASTRUCTURE: CRISIL Puts 'BB+' Rating on INR40MM Cash Credit
GARG TUBE: Low Net Worth Cues CRISIL to Assign 'BB' Rating
KUTTY FLUSH: Fitch Assigns National Long-Term Rating at 'B-'
METAL CLOSURES: ICRA Places 'LB-' Rating on Various Bank Debts
OMAXE LIMITED: Coercive Debt Exchange Cues Fitch's 'D' Rating

PBS FOODS: ICRA Rates INR250 Million Bank Debt at 'LBB+'
SILKTEX LIMITED: ICRA Assigns 'LB+' Rating on INR86.1MM Term Loan
SP SUPERFINE: ICRA Places 'LB-' Rating on INR451.9MM Term Loans


J A P A N

AKAI HOLDINGS: Hong Kong Police Raid Ernst & Young Offices
SANYO ELECTRIC: EU Commission OK's Panasonic Takeover Bid


K O R E A

GENERAL MOTORS: GM Daewoo Incurs US$2.6-Bln in Forex Losses
HYUNDAI MOTOR: Pulls Out of Tokyo Motor Show


N E W  Z E A L A N D

FISHER & PAYKEL: Bank Lenders Waive Budget Performance Covenant


S I N G A P O R E

MERITLAND REALTY: Creditors' Proofs of Debt Due on October 12
MOULMEIN DEVELOPMENT: Creditors' Proofs of Debt Due on October 12
O.C.C. HOLDING: Creditors' Proofs of Debt Due on October 26
SPORTS NETWORK: Creditors' First Meeting Set for October 8
THK REALTY: Creditors' Proofs of Debt Due on October 12


T A I W A N

TAIWAN HIGH: Bankers Won't Lend More Than NT$382 Billion


                         - - - - -


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


BABCOCK & BROWN POWER: Debt Restructuring Delayed Until Late Oct.
-----------------------------------------------------------------
Babcock & Brown Power said the commercial negotiations in relation
to the restructuring of the debt owed to its two major finance
providers, the Babcock & Brown Group and a syndicate of banks that
have lent to a subsidiary, BBP Finance Australia Pty Limited, will
be delayed until mid to late October.

In a statement to the Australian stock exchange, BBP said the 11
members of the BBPF Syndicate and B&B are in the process of
seeking internal approval to implement the restructuring -- which
in the case of B&B involves consent from its financiers.

"BBP had expected to have entered into legal agreements to
implement the transactions prior to September 30, but now expects
this will not occur until mid to late October -- at which time
details of binding agreements will be announced to the market."

"Resolution of the B&B loan restructuring is likely to require a
securityholder vote," BBP said.

Whilst BBP remains confident of effecting the restructures, it
does note that until the B&B Group and all members of the BBPF
syndicate enter into legally binding transactions with BBP, a risk
that the restructure is not effected as currently expected
remains.

Bloomberg News relates that two loans are being restructured, one
for AU$2.7 billion from a group of 11 banks and one for about
AU$400 million from Babcock & Brown Group, Babcock Power's parent
company.

According to Bloomberg, Babcock Power spokesman Jason Steed said
the first has a three-year, AU$1.6 billion tranche paying 220
basis points more than the bank-bill swap rate, as well as a five-
year, AU$1.1 billion tranche paying 240 basis points more.  The
AU$1.6 billion tranche is due June 2011 and the AU$1.1 billion
tranche June 2013.  The loan from Babcock Power's parent matures
March 2010.

Bloomberg says the 11 banks are:

   -- Commonwealth Bank of Australia;
   -- BNP Paribas;
   -- Australia & New Zealand Banking Group Ltd.;
   -- National Australia Bank Ltd.;
   -- Dexia SA;
   -- Natixis;
   -- WestLB AG;
   -- Societe Generale;
   -- HVB Group;
   -- Suncorp-Metway Ltd; and
   -- Mizuho Financial Group Inc.

As reported in the Troubled Company Reporter-Asia Pacific on
June 4, 2009, The National Business Review said that BBP's share
price has been further buffeted by news that its AU$2.7 billion
debt will have to be renegotiated, in light of the company being
unable to attract an investment grade credit rating.  Babcock &
Brown Power, the Business Review related, is already in breach of
its interest cover covenant and is in talks with its banking
syndicates.

Babcock & Brown Power lost 96% of its market value last year and
was the worst performer in Australia's benchmark stock index in
2008, the Business Review noted.

Babcock & Brown Power posted a net loss of AU$148.98 million for
the year ended June 30, 2009, compared with a net loss of
AU$426.51 million from a year ago.

                    About Babcock & Brown Power

Australia-based Babcock & Brown Power (ASX:BBP) --
http://www.bbpower.com/--   is a power generation business.  The
company develops, operates and acquires generation portfolio.  As
of June 30, 2008, its portfolio had interests in 12 operating
power stations representing 3,000 megawatts of installed
generation capacity and two power stations under construction.
BBP has interests in a number of other associated power assets,
including the Western Australia retail assets of Alinta.  BBP is a
stapled entity comprising Babcock & Brown Power Limited and the
Babcock & Brown Power Trust.  In February 2008, BBP acquired 100%
of BBP Neerabup Power Pty Limited from B&B Australia
Infrastructure.  On July 4, 2008, the Company sold its 100%
interest in the Uranquinty Power Station near Wagga Wagga in
southern New South Wales to Origin Energy Ltd. The manager of BBP
is Babcock & Brown Power Management Pty Ltd.  In March 2009, the
company sold its remaining interest in the Kwinana Power Station
to ERM Power Pty Limited.

Babcock & Brown Power is a listed satellite of Babcock & Brown
Ltd.


FORTESCUE METALS: Misses September 30 Financing Deadline
--------------------------------------------------------
Fortescue Metals Group Ltd said Wednesday it missed a deadline to
raise up to US$6 billion (AU$6.85 billion) in financing deals from
Chinese banks.

"Fortescue Metals Group Ltd advises, with regard to its agreement
announced on August 17, 2009 with the Baosteel Group and China
Iron & Steel Association (CISA), that the condition subsequent
relating to the completion of finance by September 30, 2009, will
not be met in time," Fortescue said in a statement.

"Fortescue intends to continue working co-operatively with CISA
including the provision of attractive iron ore pricing if
requested."

Bloomberg News relates that the deadline was part of the company's
funding and pricing agreement last month with CISA and Baosteel
Group Corp.

According to Bloomberg, Fortescue plans to use the funds to more
than double exports by 2012.  Bloomberg relates that former Chief
Financial Officer Michael Minosora said last month the company
plans to expand capacity to 95 million metric tons by 2012, from
current capacity of about 45 million tons.

"Without securing extra funding, the expansion timeline has to
come into question until if, when, a suitable funding package is
secured," Len Eldridge, an iron and steel analyst at Macquarie
Group Ltd. said by phone from Perth.  He has an "underperform"
rating on the stock.

Bloomberg notes Morgan Stanley analysts said in a Sept. 2 report
that the company is "tight on cash" and needs additional capital
this half.  An expansion to 98 million tons may cost as much as $4
billion, the broker forecast, Bloomberg says.

Bloomberg, citing Morgan Stanley, discloses that Fortescue has
liabilities of $554 million maturing this half and a further $178
million due next half.  It had cash of $654 million at June 30 and
debt of $2.8 billion, Bloomberg relates citing Fortescue's Aug. 10
presentation.

                    About Fortescue Metals

Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited (ASX: FM) -- http://fmgl.com.au/-- is involved in
the exploration of iron ore through a project to mine iron ore
in the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.

                        *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
September 4, 2009, Moody's Investors Service lowered to B2 from B1
the Senior Secured rating of FMG Resources (August 2006) Pty Ltd
(previously FMG Finance Pty Ltd), the financing arm of the
Fortescue Metals Group.  The outlook for the rating is negative.
This completes the rating review for possible downgrade commenced
in May 2009 in view of weakness in the iron ore market and
operating challenges at FMG's mining and processing operations.


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


GAMMA PHARMA: Posts US$800,000 Net Loss in Quarter Ended June 30
--------------------------------------------------------------
Gamma Pharmaceuticals, Inc., posted a net loss of US$796,052 for
three months ended June 30, 2009, compared with a net loss of
US$1,084,230 for the same period in 2008.

The Company's balance sheet at June 30, 2009, showed total assets
of US$6,049,116, total liabilities of US$1,452,580 and a
stockholders' equity of US$4,596,536.

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?45ac

Gamma Pharmaceuticals, Inc. (OTC BB: GMPM.OB) -- http://www.gamma-
pharma.com/ -- operates as a marketing, brand management, and
product formulation company.  The company focuses on the
formulation, marketing and sale of vitamins and nutriceuticals,
over the counter pharmaceutical products, and personal care
products in the Peoples Republic of China, Hong Kong, Taiwan, and
the United States.  Its product formulations are based on its
proprietary Gel Delivery Technology' and are marketed and sold as
wellness products.   The company offers products under the
BrilliantChoice, Savvy, Jugular Energy Products, and IceDrops.  It
also manufactures house brands for retail accounts.  The company,
formerly known as Sunburst Pharmaceuticals, Inc., was founded in
1993 and is headquartered in Las Vegas.

                           Going Concern

On July 14, 2009, L.L. Bradford & Company, LLC, in Las Vegas,
Nevada, expressed substantial doubt about Gamma Pharmaceuticals'
ability to continue after auditing the Company's financial
statements for the fiscal years ended March 31, 2009, and 2008.
The auditor noted that the Company's current liabilities exceed
current assets and has incurred significant losses during the
development stage.


INDUSTRIAL AND COMMERCIAL: To Acquire 19.26% Stake in ACL Bank
--------------------------------------------------------------
Industrial and Commercial Bank of China Limited and Bangkok Bank
Public Company Limited have reached an agreement on the sale and
purchase of shares in ACL Bank Public Company Limited.  At the
same time, ICBC declared that it will make a tender offer to all
shareholders of ACL.  The transfer by BBL of its shares in ACL to
ICBC under the agreement above will be completed as part of the
said tender offer.

Under the agreement between ICBC and BBL, BBL will sell its entire
19.26% stake in ACL to ICBC at the price of THB11.5 per share.
Meanwhile, ICBC will make a conditional tender offer to all
shareholders of ACL for all outstanding ACL shares at the same
price.  The tender offer will become effective upon ICBC receiving
acceptances in respect of 51 per cent or more of the outstanding
ACL shares.  Through the above transaction, ICBC may be able to
acquire up to 100% shareholding of ACL.

"ICBC has always attached great importance to the Thai market.
This transaction will be of great significance to ICBC in the
expansion of its business and network in the Mekong River region
and also the South East Asia region.  ICBC will endeavor to
contribute to the development of the Thailand economy and
bilateral trade between China and Thailand," Dr. Jiang Jianqing,
Chairman of ICBC, said in a statement.

Mr. Chatri Sophonpanich, Chairman of BBL said, "We very much
welcome this investment by ICBC in the Thailand market.  BBL and
ICBC have always maintained a good business relationship.  Looking
forward, the two banks will continue to develop a business partner
relationship and together provide better quality financial
services to clients in China and Thailand."

The conditions precedent to the making of the voluntary tender
offer by ICBC are ICBC's shareholders approval and relevant
approvals and waivers from the regulatory authorities in China and
Thailand having been obtained.

                           About ACL Bank

ACL Bank Public Company Limited (BAK:ACL) --
http://www.aclbank.com/th/--formerly Asia Credit Public Company
Limited, is a Thailand-based commercial bank.  ACL Bank offers a
variety of financial services, including lending and deposit
acceptance through the issuance of promissory notes, short-term
and long-term loans, project financing, and syndication loans.  In
addition, it also offers the suite of services in international
trade finance through its import and export bill operations,
combined with a full foreign exchange capability.  The Bank offers
all types of loans and investment products, effect money
transfers, and undertake all forms of import and export services
in international trade.  ACL BANK also provides financial advisory
services. Its subsidiaries include ACL Securities Co., Ltd. and
Leasing Sinn Asia Co., Ltd.

                             About ICBC

The Industrial and Commercial Bank of China (ICBC) --
http://www.icbc.com.cn/-- is the largest state-owned commercial
bank, and is authorized by the State Council and the People's Bank
of China.  ICBC conducts operations across China as well as in
major international financial centers.

                         *     *     *

ICBC continues to carry Fitch Ratings' Individual D rating.

On May 4, 2007, Moody's Investors Service affirmed Industrial &
Commercial Bank of China Ltd's Bank Financial Strength Rating at
D-.  The outlook for BFSR is stable.


SHANGHAI PUDONG: Raises US$2.2 Billion in Private Placement
-----------------------------------------------------------
Bloomberg News reports that Shanghai Pudong Development Bank Co.,
part owned by Citigroup Inc., said it raised CNY15 billion (US$2.2
billion) in a private placement to replenish capital depleted by
credit growth.

Citing Pudong Bank's statement, Bloomberg discloses that the bank
sold 904 million new shares at CNY16.59 each to nine institutional
investors, including Haitong Securities Co., China National
Offshore Oil Corp., and Youngor Group Co.

The report notes the bank said Citigroup's stake in the lender
will fall to 3.4% from 3.8% after the sale.

The Troubled Company Reporter-Asia Pacific reported on Sept. 24,
2009, that Shanghai Pudong received approval from the China
Securities Regulatory Commission to sell not more than 1.14
billion new A-shares in a private placement.

Headquartered in Shanghai, China, Shanghai Pudong Development
Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial
bank involved in personal banking, corporate banking, and inter-
bank business.  The bank also offers Internet banking and
telephone banking.

                           *     *     *

The bank continues to carry Moody's Investors Service's "Ba1"
long-term bank deposit rating and "D" bank financial strength
rating.  It also carries Fitch Ratings' "D" individual rating.


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


ANSOME COMPANY: Creditors' Proofs of Debt Due on October 27
-----------------------------------------------------------
The creditors of Ansome Company Limited are required to file their
proofs of debt by October 27, 2009, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on September 17, 2009.

The company's liquidator is:

          Ho Tak Sang
          East Ocean Centre, Room 303
          98 Granville Road
          TST East, Kowloon


AT ASSET: Member to Receive Wind-Up Report on October 30
--------------------------------------------------------
The member of At Asset Management (Asia-Pacific) Limited will
receive on October 30, 2009, at 10:00 a.m., the liquidator's
report on the company's wind-up proceedings and property disposal.

The meeting will be held at the 27th Floor of Alexandra House, 18
Chater Road, in Central, Hong Kong.


EVER SHARP: Commences Wind-Up Proceedings
-----------------------------------------
At an extraordinary general meeting held on September 21, 2009,
the members of Ever Sharp Trading Limited resolved to voluntarily
wind up the company's operations.

The company's liquidator is:

          Siu Yee Cheong Stephen
          Easey Commercial Building, Room 1003
          253-261 Hennessy Road
          Wanchai, Hong Kong


EXETER HONG KONG: Creditors' Proofs of Debt Due on October 27
-------------------------------------------------------------
The creditors of Exeter Hong Kong Limited are required to file
their proofs of debt by October 27, 2009, to be included in the
company's dividend distribution.

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

The company's liquidators are:

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


KAM TAI: Creditors' Proofs of Debt Due on November 2
----------------------------------------------------
The creditors of Kam Tai Hong Enterprises Limited are required to
file their proofs of debt by November 2, 2009, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on September 18, 2009.

The company's liquidator is:

          Yan Shui Lau, Francis
          China Merchants Building, Room 801-3
          303-307 Des Voeux Road Central
          Hong Kong


MARUBENI CHEMICALS: Commences Wind-Up Proceedings
-------------------------------------------------
The sole shareholder of Marubeni Chemicals & Plastics (Hong Kong)
Limited resolved to voluntarily wind up the company's operations.

The company's liquidators are:

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


MODERN BASE: Member to Receive Wind-Up Report on October 28
-----------------------------------------------------------
The member of Modern Base Investments Limited will receive, on
October 28, 2009, at 11:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The meeting will be held at Flat B, 16th Floor of Empire Land
Commercial Centre, 81-85 Lockhart Road, in Wanchai, Hong Kong.


NEC TELECOMMINICATIONS: Wong Ka Wah Steps Down as Liquidator
------------------------------------------------------------
Wong Kam Wah stepped down as liquidator of NEC Telecommunications
(Hong Kong) Limited.


PO HONG: Members' Final Meeting Set for October 30
--------------------------------------------------
The members of Po Hong Computer Equipment Cleaning Limited will
hold their meeting on October 30, 2009, at 10:00 a.m., at Room 804
of Cheong K. Building, 84-86 Des Voeux Road, in Central,
Hong Kong.

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


SATORI AUTOMATICS: Member to Receive Wind-Up Report on October 27
-----------------------------------------------------------------
The member of Satori Automatics Hong Kong Co. Limited will receive
on October 27, 2009, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The meeting will be held at the 8th Floor of Gloucester Tower, The
Landmark, 15 Queen's Road, in Central, Hong Kong.


SHUN YICK: Creditors' Proofs of Debt Due on October 27
------------------------------------------------------
The creditors of Shun Yick Production Group Limited are required
to file their proofs of debt by October 27, 2009, to be included
in the company's dividend distribution.

The company commenced wind-up proceedings on September 18, 2009.

The company's liquidator is:

          Lau Kwok Kwong Arthur
          Tung Ming Building, Room 806
          42 Des Voeux Road
          Central, Hong Kong


UNIGAIN (P & M): Appoints Chan Kin Hang Danvil as Liquidator
------------------------------------------------------------
On September 18, 2009, the creditors of Unigain (P & M) Limited
appointed Chan Kin Hang Danvil as the company's liquidator.

The Liquidator can be reached at:

          Chan Kin Hang Danvil
          Ginza Square, 17th Floor
          565-567 Nathan Road, Yaumatei
          Kowloon, Hong Kong


UNION WINNER: Members' Final Meeting Set for October 30
-------------------------------------------------------
The members of Union Winner Enterprises Limited will hold their
meeting on October 30, 2009, at 11:15 a.m., at the 3rd Floor of
Chinachem Tower, 34-37 Connaught Road, in Central, Hong Kong.

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


ZOLA TECH: Placed Under Members' Voluntary Liquidation
------------------------------------------------------
At an extraordinary general meeting held on September 11, 2009,
the members of Zola Tech Industries Company Limited resolved to
voluntarily liquidate the company's business.

The company's liquidator is:

          Tang Piu Hung
          Rammon House, 3rd Floor
          101 Sai Yeung Choi Street South
          Mongkok, Kowloon


ZOLA TECH: Placed Under Members' Voluntary Liquidation
------------------------------------------------------
At an extraordinary general meeting held on September 11, 2009,
the members of Zola Tech International Co. Limited resolved to
voluntarily liquidate the company's business.

The company's liquidator is:

          Tang Piu Hung
          Rammon House, 3rd Floor
          101 Sai Yeung Choi Street South
          Mongkok, Kowloon


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AB SUGARS: ICRA Assigns 'LBB+' Rating on INR2.43BB Term Loans
-------------------------------------------------------------
ICRA has assigned rating of LBB+ to the INR2.43 billion term loans
and sanctioned fund based limits of AB Sugars Limited.

The rating is constrained by ABSL's vulnerability to agro-climatic
risks which may impact availability of its basic raw material cane
and thus its revenues and profits, and cyclicality inherent in the
business.  Also the raw material availability for distillery
operations namely molasses and grain is prone to availability
risk, former being an outcome of cane production and molasses
realizations and latter being a gate purchase item and hence very
variable.  ICRA also takes note of the short term mature of PPA
which poses risk to the power sales income.  The rating is also
affected by the high gearing of 2.08 as on March 31, 2008.  Going
forward, ABSL's profitability will remain impacted by government
policies relating to cane pricing, sugar release mechanism,
taxation on cane and by-products as well as subsidy support for
exports.  ICRA draws comfort from ABSL's long presence in the
integrated operations (Sugar, Cogeneration and Distillery) and
position in the arena of liquor manufacture and retailing in
Punjab.

AB Sugars Ltd is a 7,000 tcd integrated sugar mill operating in
Punjab.  In the liquor business, it manufactures alcohol and
branded liquor and retails throughout India through a wide
network.  Besides this it also undertakes bottling activity for
imported scotch.  The distillery can operate with locally
available grain also and this provides the company protection from
low availability risk from molasses.  ABSL also operates a bagasse
based 33 MW cogeneration plant and has a PPA with PSEB under which
it sells excess power (@ INR3.69/ unit).


AIR INDIA: Resumes Operation After Pilots Call Off 4-Day Strike
---------------------------------------------------------------
Air India's pilots on Wednesday called off their four-day strike
after the national carrier decided to "keep in abeyance" a move to
cut productivity-linked incentives, Bloomberg News reports citing
airline spokesman Jitender Bhargava.

According to Bloomberg, V.K. Bhalla, who represented the pilots,
said the pilots decided to return to work after Civil Aviation
Minister Praful Patel assured that there wouldn't be any salary
cuts and their dues will be paid by Oct. 7.

The Economic Times quoted Mr. Bhalla as saying that "I have full
faith on the assurances given by our aviation minister.  If the
minister says that productivity-linked incentives (PLI) will be
paid, then we trust him.  We are going to call off our strike with
immediate effect."

Air India is estimated to have lost about INR100 crore in the past
four days due to disruption of operation, the Times says.

"The operation will return to normalcy by Thursday morning.  We
will operate all our flights, except the non-stop flights.  Fresh
bookings have already begun and flights have been put into the
system," the Times quoted Air India Executive Director (Corporate
Communication) Jitender Bhargavahe as saying.

The Troubled Company Reporter-Asia Pacific reported on Sept. 29,
2009, that a section of Air India pilots went on a strike on
September 26 to protest reduction in their productivity-linked
incentives.

The Air India Board at its meeting held in Mumbai on Sept. 24
accepted the recommendation of the Committee headed by Mr. Anup
Srivastava, Director-Personnel, to review Productivity Linked
Incentive paid to employees.

The cut, applicable to all officers, including top management
personnel, in various management disciplines, will range from 25%
for those getting PLI of INR10,000 or less per month and 50% for
those receiving PLI or flying related allowances of INR2.00 lakhs
or more per month.  The cut for those receiving PLI of INR10,001
to INR25,000; INR25,001 to INR50,000; and INR50,001 to INR2.00
lakhs will be 35%, 40% and 45%, respectively.

The cut will be effective from PLI payable in August 2009 onwards.
The number of employees covered by the decision will be over
7,000.

As reported in the TCR-AP on June 10, 2009, the National Aviation
Company of India Ltd., the holding company for the carrier, was
seeking INR14,000 crore in equity infusion, soft loans and grants.
The TCR-AP reported on June 19, 2009, that Air India has been
bleeding due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown.  Air India's losses have almost doubled to over INR4,000
crore in 2008-09 (INR2,226 crore in 2007-08), according to the
Hindustan Times.

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

                          About Air India

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


AMSAL CHEM: CRISIL Assigns 'BB-' Rating on Various Bank Debts
-------------------------------------------------------------
CRISIL has assigned its ratings of 'BB-/Stable/P4+' to the bank
facilities of Amsal Chem Pvt Ltd.  The ratings reflect Amsal
Chem's moderate financial risk profile, and small scale of
operations.  These weaknesses are partially offset by Amsal Chem's
established customer relationships and track record.

   Facilities                         Ratings
   ----------                         -------
   INR6.4 Million Rupee Term Loan    BB-/Stable (Assigned)
   INR72.5 Million Cash Credit       BB-/Stable (Assigned)
   INR14.0 Million Working Capital   BB-/Stable (Assigned)
           Demand Loan
   INR51.0 Million Letter of Credit  P4+ (Assigned)
   INR5.0 Million Bank Guarantee     P4+ (Assigned)

Outlook: Stable

CRISIL expects Amsal Chem's business and financial risk profile to
be maintained over the medium term.  The outlook may be revised to
'Negative' in case of substantial weakening of the company's
financial risk profile led by large debt funded capital
expenditure programme.  Conversely, the outlook maybe revised to
'Positive' in case the company scales up its operations without
any deterioration of financial risk profile accompanied by
maintenance of profitability and/or fresh equity infusion by the
promoters.

                          About Amsal Chem

Incorporated in 1992, Amsal Chem is a bulk drug manufacturer with
two chief products isoniazid and niacin/niacinamide.  The
company is promoted by members of the Majithia family and is a
government-recognised one-star export house.  It has an installed
manufacturing capacity of 1200 tonnes per annum at Ankleshwar,
Gujarat.  The company is one of largest producers of isoniazid,
which is used in standard multi drug tuberculosis (TB) treatment.
Niacin/niacinamide are primarily used in animal feed products and
also in pharmaceutical formulations and cosmetic products.

For 2008-09 (refers to financial year, April 1 to March 31), the
company reported a profit after tax (PAT) of Rs 21.1 million on
revenues of INR436.7 million, as against a PAT of INR0.005 million
on revenues of INR347.9 million for 2007-08.


BANK OF AMERICA: Taps AIG's Sonthalia for India Capital Markets
---------------------------------------------------------------
Bank of America Merrill Lynch hired Saurabh Sonthalia to head its
capital markets business in India, Bloomberg News reports.

Citing two people familiar with the matter, who declined to be
identified because the matter is not public, Bloomberg relates
that Mr. Sonthalia, chief executive officer at AIG Global Asset
Management Co. (India) Pvt. in Mumbai, will rejoin Merrill Lynch
next month after quitting the firm in 2006, Bloomberg relates

Bloomberg says Mr. Sonthalia was executive vice president and head
of strategy and business development for DSP Merrill Lynch Fund
Managers Ltd. in 2006.  DSP Merrill Lynch was rebranded DSP
BlackRock Mutual Fund after Blackrock Inc.'s acquisition of
Merrill Lynch's investment unit in 2006.

Based in Charlotte, North Carolina, Bank of America --
http://www.bankofamerica.com/-- is one of the world's largest
financial institutions, serving individual consumers, small and
middle market businesses and large corporations with a full range
of banking, investing, asset management and other financial and
risk-management products and services.  The Company serves more
than 59 million consumer and small business relationships with
more than 6,100 retail banking offices, nearly 18,700 ATMs and
online banking with nearly 29 million active users.  Following the
acquisition of Merrill Lynch on January 1, 2009, Bank of America
is among the world's leading wealth management companies and is a
global leader in corporate and investment banking and trading
across a broad range of asset classes serving corporations,
governments, institutions and individuals around the world.  Bank
of America offers support to more than 4 million small business
owners.  The Company serves clients in more than 150 countries.
Bank of America Corporation stock is a component of the Dow Jones
Industrial Average and is listed on the New York Stock Exchange.

The bank needed the government's financial help in completing its
acquisition of Merrill Lynch.

Merrill Lynch & Co. Inc. -- http://www.ml.com/-- is a wealth
management, capital markets and advisory companies with offices in
40 countries and territories.  As an investment bank, it is a
leading global trader and underwriter of securities and
derivatives across a broad range of asset classes and serves as a
strategic advisor to corporations, governments, institutions and
individuals worldwide.  Merrill Lynch owns approximately half of
BlackRock, one of the world's largest publicly traded investment
management companies with more than $1 trillion in assets under
management.  Merrill Lynch's operations are organized into two
business segments: Global Markets and Investment Banking (GMI) and
Global Wealth Management (GWM).

As reported by the Troubled Company Reporter on March 27, 2009,
Moody's Investors Service lowered the senior debt rating of Bank
of America Corporation to A2 from A1, the senior subordinated debt
rating to A3 from A2, and the junior subordinated debt rating to
Baa3 from A2.  The preferred stock rating was downgraded to B3
from Baa1.  The holding company's short-term rating was affirmed
at Prime-1.


DAMODAR J: CRISIL Rates INR320.0 Million Cash Credit at 'BB'
------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable' to the bank
facility of Damodar J. Malpani:

   INR320.0 Million Cash Credit   BB/Stable (Assigned)

The ratings reflect the susceptibility of DJM's margins to
fluctuations in the raw material prices.  This weakness is
partially offset by DJM's established market position in the
tobacco industry and brand visibility.

Outlook: Stable

CRISIL believes that DJM will maintain a steady business profile
over the medium term backed by its strong brand positioning. The
outlook may be revised to 'Positive' if DJM's cash accruals
improve significantly.  Conversely, the outlook may be revised to
'Negative' if the firm's financial risk profile is constrained
because of the greater than expected withdrawal of the capital by
the partners, unrelated diversifications and investments outside
business, resulting in deteriorated debt protection measures or a
material decline in margins.

DJM is a partnership firm promoted by the late Mr. Damodar
Malpani.  The firm manufactures and sells chewing tobacco under
the name Gai Chaap and Baadshah which has a brand loyalty in
Maharashtra and Karnataka.  Its manufacturing facilities are at
Sangamner (Maharashtra) and Borsad (Gujarat).  For 2008-09 (refers
to financial year, April 1 to March 31), DJM reported a profit
after tax (PAT) of INR409.2 million on net sales of INR1357
million, as against a PAT of INR147.4 million on net sales of
INR863.5 million for 2006-07.


DK INFRASTRUCTURE: CRISIL Puts 'BB+' Rating on INR40MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4+' to the bank
facilities of DK Infrastructure Pvt Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR40.0 Million Cash Credit       BB+/Stable (Assigned)
   INR210.0 Million Proposed Long    BB+/Stable (Assigned)
          Term Bank Loan Facility
   INR52.0 Million Bank Guarantee    P4+(Assigned)
   INR198.0 Million Proposed Short   P4+(Assigned)
          Term Bank Loan Facility

The ratings reflect DKIPL's modest scale of operations and
moderate financial risk profile.  These weaknesses are, however,
partially offset by the benefits that DKIPL derives from the
experience of its promoters in the civil engineering industry.

Outlook: Stable

CRISIL believes that DKIPL will maintain a stable business risk
profile, on the back of a strong order book, the experience of
promoters, and established relationship with its customers.  The
outlook may be revised to 'Positive' if DKIPL's operating margins
and debt protection metrics improve substantially.  Conversely,
the outlook may be revised to 'Negative' if the company takes on
large debt to fund capital expenditure or in case of deterioration
in operating margins or debt protection metrics.

                      About DK Infrastructure

Set up in 1956 by the late Mr. Dolchand Kallaji, DKIPL undertakes
civil engineering projects in the roads, water and sewerage
pipelines, and building repairs segments.  DKIPL reported a profit
after tax (PAT) of INR33.0 million on net sales of INR759.4
million for 2008-09 (provisional) (refers to financial year,
April 1 to March 31), as against a PAT of INR22.4 million on net
sales of INR388.9 million for 2007-08.


GARG TUBE: Low Net Worth Cues CRISIL to Assign 'BB' Rating
----------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank
facilities of Garg Tube Ltd.

   Facilities                         Ratings
   ----------                         -------
   INR40.0 Million Cash Credit        BB/Stable (Assigned)
   INR10.0 Million Export Packing     P4+ (Assigned)
                        Credit
   INR10.0 Million Bill Purchase-     P4+ (Assigned)
             Discounting Facility
   INR20.0 Million Letter of Credit   P4+ (Assigned)
   INR15.0 Million Bank Guarantee     P4+ (Assigned)

  * The cash credit limit, export packing credit and bill
    discounting are the sub-limit for working capital loan
    and thereby interchangeable.

The ratings reflect GTL's moderate financial risk profile, marked
by low net worth and moderate debt protection measures, and the
company's exposure to risks relating to fluctuations in steel
prices, and its limited pricing flexibility.  However, these
weaknesses are partially offset by the benefits that the company
derives from its established relationships with retailers across
the country.

Outlook: Stable

CRISIL believes that GTL's financial risk profile will remain
constrained by low net worth and moderate debt protection
measures.  The outlook may be revised to 'Positive' if the company
scales up its operations with a sustained improvement in
profitability.  Conversely, the outlook may be revised to
'Negative' if the company takes on large debt to fund capital
expenditure or incremental working capital requirements, thereby
leading to material deterioration in its financial risk profile.

                          About Garg Tube

Set up in 1988, GTL manufactures steel tubes, electric resistance-
welded (ERW) steel pipes, galvanized (GI) pipes, fencing tubes,
and scaffolding pipes.  The company has its manufacturing facility
at Gautam Buddha Nagar (Uttar Pradesh).  The company sells
products under its Jai India, Jai Shri, and Goodwill brands.

GTL reported a profit after tax (PAT) of INR5.2 million on net
sales of INR833.2 million for 2007-08 (refers to financial year,
April 1 to March 31), as against a PAT of INR5.0 million on net
sales of INR818.6 million for 2006-07.


KUTTY FLUSH: Fitch Assigns National Long-Term Rating at 'B-'
------------------------------------------------------------
Fitch Ratings has assigned a National Long-term rating of 'B-
(ind)' with a Stable Outlook and a National Short-term rating of
'F4(ind)' to India's Kutty Flush Doors & Furniture Co Pvt Ltd.
Fitch has also assigned ratings to Kutty's bank loans:

  -- Term loans of INR26 million: 'B-(ind)';
  -- Cash Credit Limit of INR40 million: 'B-(ind)';
  -- Cheque Bill Discounting limit of INR1.5 million: 'F4(ind)';
  -- Bank guarantee of INR2.5 million: 'F4(ind)'; and
  -- Letter of credit of INR30 million:' F4(ind)'.

Kutty's ratings are underpinned by its long-established track
record in the 'Doors' business, covering a wide product range
across residential, commercial and industrial segments, its strong
relationship with customers and its focus on product development.
In the second half of FY09, Kutty commissioned a new plant in
Himachal Pradesh (HP) at a cost of INR135 million, which produces
steel and wooden doors with Northern India as its primary market.

The ratings are constrained by Kutty's below-par operational track
record in the last four years when marginal profits and losses
were reported at the operating level.  Profitability has also been
impacted by increases in the price of raw materials which could
not be passed onto customers due to strong competition and imports
from Malaysia and China.  Added to this, the HP plant had a cost
overrun of INR25 million and was commissioned at a time when the
industry was into a severe downturn.  Future revenue visibility is
impacted by the fact that sales are on a project-basis.  Key
concerns are the current slowdown in the real estate sector,
Kutty's low capacity utilization and its impact on margins.

The ratings could be negatively impacted if the company sustained
negative EBITDA margins in FY10.  Positive ratings triggers would
include a significant increase in revenue and a sustained
improvement in EBITDA margins.

Kutty, a Chennai-based company, was incorporated in 1962.  As per
provisional FY09 results, Kutty had revenues of INR159 million,
negative EBITDA of INR14 million, with a net loss of
INR13 million.  This compares to revenues of INR182 million,
EBITDA of INR1.5 million and net income of INR4.6 million in FY08.
The EBITDA margin was 0.8% in FY08 and negative 9.1% in FY09.


METAL CLOSURES: ICRA Places 'LB-' Rating on Various Bank Debts
--------------------------------------------------------------
ICRA has assigned an LB- rating to INR433 million Term loans and
INR367 million fund based limits of Metal Closures Private
Limited.  ICRA has also assigned an A4 rating to INR400 million
non fund based limits.

The rating takes into account MCPL's experienced management, its
established position in the metal packaging industry and its
reputed client base.  The ratings are, however, constrained by
MCPL's stretched liquidity position owing to high working capital
intensity and significant expansion project undertaken by the
company in the recent past.  While debt servicing has been
irregular in recent past and gearing level is high, going forward,
ICRA expects the financial profile to improve because of several
initiatives undertaken by the company to rationalize its costs and
augment its revenues.

Incorporated in the year 1977, Metal Closures Private Limited is a
metal packaging manufacturing company with corporate office in
Bangalore and manufacturing units in Bangalore, Kunigal
(Karnataka) and Kal-amb (Himachal Pradesh).  It manufactures caps
and closures, including Roll On Pilfer Proof (ROPP) Closures,
Crown caps, Battery jackets and twist-off closures.  Company's
products are used across industries in processed fruits and
vegetables, pharmaceutical, liquor, beverage, dry cell battery and
shoe care industries.  Company's clientele include multinationals
like Coca-Cola, Pepsi Foods, Hindustan Lever, Reckitt Benckiser,
Sab Miller and Indian multinationals like McDowell and Company,
United Breweries, Eveready Batteries, Nippo Batteries and Cipla.

During 2008-09, 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.


OMAXE LIMITED: Coercive Debt Exchange Cues Fitch's 'D' Rating
-------------------------------------------------------------
Fitch Ratings has downgraded India's Omaxe Limited's to 'D' from
'BB-(ind)' to reflect the agency's assessment of the company
undergoing a Coercive Debt Exchange.  Simultaneously, the agency
has re-assigned Omaxe a National Long-term rating of 'B-(ind)' to
reflect its post-restructuring credit profile.  As a result of
these actions, the Rating Watch Negative on the National Long-term
rating has been resolved.  The Outlook is Negative.  The other
ratings actions on Omaxe are listed at the end of this release.

The downgrade of the National Long-term rating reflects Fitch's
treatment of Omaxe's financial restructuring with banks, financial
institutions and mutual funds as "coercive", in line with the
agency's criteria on treatment of such restructurings (for
additional context, please see Fitch's comment titled "India:
Impact of Restructurings on Corporate Ratings" dated May 29m
2009).  Fitch notes that the restructuring has not resulted in
significant impairment of the contractual terms for the creditors,
with the revised terms envisaging an extension in maturity profile
keeping the other loan terms unchanged.  However, in Fitch's view,
the restructuring was essential for Omaxe to avoid a liquidity
crunch and would have otherwise resulted in a default on its debt
obligations.  Fitch has, therefore, treated the restructuring as
an effective default.

Fitch has simultaneously re-assigned the National Long-term rating
at 'B-(ind)' to reflect the successful execution of restructuring.
Omaxe's financial profile has also been aided by its recent
monetisation of its assets including an office building in Delhi
and the surrender of land parcel.  However liquidity risks
continue as Omaxe, post-restructuring, has substantial repayments
in FY11.  The company's cash flow, and consequent deleveraging of
the balance sheet, could potentially be aided by the proposed
equity issuance; however, this has not been factored into the
rating.

The Negative Outlook reflects that the operating environment in
the Indian real estate sector, though slightly improved, remains
subdued making asset monetization and project sales slow to
achieve.  Fitch notes that these are crucial in facilitating debt
repayments in line with the restructured schedule.  Any shortfall
in cash flows from asset monetization or project sales could
constrain the extent of de-leveraging and exert renewed pressure
on liquidity, thereby acting as a negative driver for the rating.
In any event, further restructuring of its debt obligations that
Fitch deems to be "coercive" in line with its criteria, could
again see the rating migrate to default.

The Outlook may be revised to Stable if there is a significant
deleveraging of the balance sheet through monetization of its
assets or through raising of additional equity, and/or an
improvement in the operating environment.

The agency has also downgraded and then re-assigned the ratings of
its debt instrument:

  -- INR2.30 billion (from INR3.0 billion previously) Long-term
     debt program:

     downgraded to 'D' from 'BB-(ind)' and re-assigned at 'B-
     (ind)';

The RWN has been removed from all ratings.

Omaxe, having started as a construction company, is now engaged in
real estate development in the northern region of India.  It made
INR1.5 billion in operating EBITDA on revenue of INR8 billion in
FYE09.  At FYE09, Omaxe's total adjusted debt net of cash was
12.4x operating EBITDAR, whereas total adjusted debt was 57.3% of
total adjusted capitalization.  In the three months ended
June 2009, Omaxe had revenue of INR1.2 billion and net income of
INR0.1 billion.


PBS FOODS: ICRA Rates INR250 Million Bank Debt at 'LBB+'
--------------------------------------------------------
ICRA has assigned rating of LBB+ to the INR250 million sanctioned
fund based and non fund based limits of PBS Foods Private Limited.

The rating is constrained by the inherent risk to the
profitability of the business from variations in raw material
prices and the fixed selling price of the final product.  ICRA has
taken into consideration the probable risk to the company in the
event of not securing further orders from the Government of Uttar
Pradesh (UP) and the competition emanating from existing players
in the market which might affect the company's market share in
future.  ICRA has take note that the company has borrowed working
capital from banks and deployed them in the liquor retailing
business of the group companies.  The rating of the company is
linked to the credit risk of the Government of UP since the
company only operates in UP.  The rating is however supported by
the currently comfortable market share of 20% of the company in
the market and comfortable profitability and debt indicators.
ICRA also draws comfort from the professional management which is
experienced in similar fields and directly involved in operations
of the company.

PBS Foods is engaged in the manufacture of Amylase Rich Energy
Food (AREF), a health food which is largely supplied only to
government for their nutrition programs.  The finished product of
the company is a multivitamin health food comprising of wheat,
soya bean, sugar, ragi malted flour, vitamins and minerals premix.
PBS Foods started its operations in FY 2005-06 and its first
supply was in March 2007.  Although sales are mainly to various
government schemes, some part of the production is also freely
saleable in the open market.  The production capacity of the unit
is 0.16 million MT per annum.  The operations comprise of mixing
the raw materials in a particular proportion and there is very
limited value addition.  Hence raw material cost is a major
component of the product cost (RMC/ OI is more than 85%).

The company began its sales after it secured a contract/tender
(dated Feb. 19, 2007) for the supply of AREF also known locally as
Poshahar from Government of UP (GoUP) under the Integrated Child
Development Services (ICDS) scheme of the GoUP.  The estimated
quantum of the AREF which shall be procured from the company is
approx. 8,750 MT per month.  It has executed the agreement for the
same with Principal Secretary, Women & Child Development Deptt, Go
UP.  The agreement is valid for 3years. The sale price is fixed at
INR24,990/ Mt.  The agreed quantity of AREF supply to the Go Up is
approx. 0.10 million MT / annum which may change with the
requirement of various blocks in the state.


SILKTEX LIMITED: ICRA Assigns 'LB+' Rating on INR86.1MM Term Loan
-----------------------------------------------------------------
ICRA has assigned an LB+ rating to the INR86.1 million Term Loan
and A4 rating each to the INR 88 million Fund Based Limits and
INR25.9 million Non-Fund Based Limits of Silktex Limited.

The ratings are constrained by the modest scale of operations of
the company, the decline in sales level seen in the recent past
and the limited bargaining power vis-a-vis customers and
suppliers.  The significant contraction in demand for silk
products following the weak economic environment in global
markets, high silk yarn prices and competitive pressures has put
pressure on the profitability of the company.  This is also
corroborated by the weak financial profile characterized by
foreign exchange led loss at net levels, stretched debt coverage
indicators and incidence of delay in debt servicing.  However, the
ratings draw comfort from the experience management and
established presence of the company in the silk fabrics export
market.

Silktex Limited was incorporated as a private limited company in
August 1993 and subsequently converted to public limited company
on July 28, 1994.  The company is a 100% Export Oriented Unit
manufacturing silk fabrics for home furnishing and dress material.
The production unit having a total capacity of 7,75,000 meters
p.a. is located at KIADB Industrial Area, Hoskote near Bangalore
in an area of 19,000 sq. mtrs.  The company exports its products
mainly in USA, UK, West European countries, Middle East countries,
Australia and Japan.  In FY2009, the company had a net loss of
INR4.8 million on an operating income of INR298.4 million.


SP SUPERFINE: ICRA Places 'LB-' Rating on INR451.9MM Term Loans
---------------------------------------------------------------
ICRA has assigned an LB- rating to the INR451.9 million term loans
and INR135.0 million fund-based bank limits of SP Superfine Cotton
Mills Private Limited.  ICRA has also assigned an A4 rating to
INR125.0 million non-fund based bank limits of SSCM.

The ratings reflect recent delay in debt servicing by the company,
contributed by liquidity constraints.  The ratings are also
constrained by the company's small scale of operations, its
vulnerability to the volatile cotton and cotton yarn prices and a
highly fragmented market leading to competitive pressures.  SSCM's
financial profile remains weak characterized by net losses in the
last two financial years, highly aggressive capital structure and
high working capital intensity in the business.  SSCM has also
restructured its term loans, whereby the principal commitments of
the term loans were deferred.  The ratings however favorably
factor in the experience of the promoters in the spinning industry
and the company's proximity to the demand market.  Henceforth,
ICRA anticipates the company's overall profitability to be under
pressure accentuated by adverse power situation in the state of
Tamil Nadu, sluggish demand and weak price outlook for cotton yarn
in the short to medium term.

                         About SP Superfine

SSCM was incorporated in the year 1995; however the company
commenced operations in the year 2001 with 14,112 spindles in
Attur district, Salem.  The Company added further 10,080 spindles,
which commenced commercial production from April 1, 2009.
Primarily engaged in the production of hosiery and karded warp
yarn, SSCM had installed and commissioned two wind mill generators
in Tirunelveli district of Tamil Nadu each of capacity 1.25 MW in
2006-07.


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


AKAI HOLDINGS: Hong Kong Police Raid Ernst & Young Offices
----------------------------------------------------------
Jeffrey Ng at The Wall Street Journal reports that the Hong Kong
offices of Ernst & Young LLP was raided Tuesday by police as part
of an investigation into suspected forgery linked to bankrupt
electronics maker Akai Holdings Ltd.

The Journal relates that the Hong Kong police said Wednesday it is
conducting an investigation into a case of suspected forgery
involving an auditing firm in Hong Kong, but didn't name the firm.

According to the Journal, the police said it searched the offices
of the related company on Tuesday and seized a number of
documents.  The Journal states that the police also arrested a
41-year-old man, identified only by his surname Dang, in
connection with the case.

The Journal notes Ernst & Young said in a statement Tuesday it
lent police "every assistance" when they visited the firm.  "It is
our intention to engage with and support further investigations
into the Akai matter," the report quoted Ernst & Young as saying.

As reported in the Troubled Company Reporter-Asia Pacific on
September 25, 2009, Bloomberg News said Ernst & Young settled a
lawsuit over its role in Akai Holdings Ltd and suspended a partner
after the accounting firm was accused of falsifying documents.

Bloomberg, citing a statement by liquidator Borrelli Walsh, said
the firm agreed to pay a "substantial" amount to settle claims of
negligence in its auditing of Akai between 1997 and 1999.

According to Bloomberg, Ernst & Young denied Mr. Walsh's
allegation at the opening of trial on Sept. 16.  Ernst & Young
said it had started an internal investigation and was "dismayed."

"This investigation has made clear that certain documents
produced for the audits in 1998 and 1999 could no longer be
relied on due to the action of the audit manager in early
2000," Bloomberg cited Ernst & Young in an e-mailed statement.

According to Bloomberg, the firm said it has informed the relevant
regulatory body and that a former employee may also have been
involved.  It didn't identify the partner who was suspended or
specify the settlement amount.

Akai Holdings declared bankruptcy in 2000 owing creditors about
$1.11 billion.  According to Bloomberg, the consumer electronics
maker at its peak employed 100,000 and had annual sales of HK$40
billion ($5.2 billion) of brands including Singer Sewing Machine
Co. of the U.S.  Its Shanghai-born, Canadian-educated owner James
Ting, jailed for six years for false accounting in 2005, was freed
the following year because of errors in the prosecution's case,
Bloomberg states.

Akai Holdings' principal activities were investment holding,
manufacturing, distribution and retailing of consumer durables,
consumer electronics, sewing machines and property development.


SANYO ELECTRIC: EU Commission OK's Panasonic Takeover Bid
---------------------------------------------------------
Xinhua News Agency reports that Panasonic Corp. won approval from
the European Union (EU) to buy Sanyo Electric on condition that it
sells certain battery production facilities in Europe.

According to the news agency, the European Commission said that
after Panasonic pledged to divest certain battery production
facilities in markets where competition concerns were identified,
it concluded that the operation would not significantly impede
effective competition.

"In view of the remedies offered, I am satisfied that competition
will remain vigorous after the merger and that purchasers of
batteries will continue to benefit from choice and competitive
prices," Xinhua quoted Competition Commissioner Neelie Kroes as
saying.

As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 22, 2008, Sanyo Electric Co.'s three major shareholders
agreed to sell their stakes in the company to Panasonic Corp.

Panasonic will buy 70% stake in Sanyo from Goldman Sachs Group
Inc., Sumitomo Mitsui Banking Corp. and Daiwa Securities SMBC Co.
for JPY131 (US$1.48) a share.  The deal values Sanyo at about
JPY800 billion (US$9.01 billion).

The Wall Street Journal reported on August 31 that Panasonic said
it is still awaiting approval from antitrust regulators in four
countries on its tender offer to acquire Sanyo Electric and will
report by late October on the progress of the deal.

                            About Sanyo

Headquartered in Osaka, Japan, Sanyo Electric Co. Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products.  The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.

                          *     *     *

Sanyo Electric continues to carry Moody's Investors Service "Ba1"
long term bank deposits rating and "D" Bank Financial Strength
rating.  It also continues to carry Fitch Ratings "D" Individual
rating.


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


GENERAL MOTORS: GM Daewoo Incurs US$2.6-Bln in Forex Losses
-----------------------------------------------------------
Jane Han at The Korea Times reports that GM Daewoo, the South
Korean subsidiary of General Motors, incurred a foreign exchange
loss totaling nearly KRW3.1 trillion (US$2.6 billion) by
mishandling currency risks in 2008.

Citing data submitted by Korea Development Bank (KDB) to lawmaker
Kim Young-sun, chairwoman of the governing Grand National Party
National Policy Committee, The Times relates that GM Daewoo lost
KRW3.1 trillion in forward exchange transactions in 2008, which is
equivalent to 25% of GM Daewoo's gross sales last year.

According to the Times, the report indicates that the auto firm is
planning to roll back investments on facilities and R&D by
KRW1.04 trillion and inventory storage costs by KRW430 billion as
part of measures to cover the heavy loss.

The Times notes observers said that GM Daewoo's bigger-than-
expected forex loss may trouble its ongoing negotiations with KDB
to receive fresh emergency loans.

As reported in the Troubled Company Reporter-Asia Pacific on
September 2, 2009, The Wall Street Journal said KDB reiterated in
mid-August that it won't provide financial support to GM Daewoo
unless General Motors presents a long-term development plan for
the South Korean unit.

GM has engaged in "constructive" negotiations with the KDB on new
financing aid for Daewoo, which GM Chief Financial Officer Ray
Young confirmed over Reuters Television.  South Korean officials
have said that they are waiting to see resolution of New GM's
restructuring before completing talks on new financing support for
GM Daewoo, Reuters noted.

"There is no change in our [existing] stance that no additional
funding or refinancing will be made to GM Daewoo if GM plans to
operate the Korean unit as just a manufacturing base of small
cars," KDB spokesman Sung Ju-young said in a telephone interview
with the Journal.

Mr. Young has said that GM Daewoo is "a critical element of
the new General Motors," offering strategic importance to the
Company.

                       About General Motors

Headquartered in Detroit, Michigan, General Motors Corp.
(NYSE: GM) -- http://www.gm.com/-- as founded in 1908.  GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries.  In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in Miramar,
Florida.

As reported by the Troubled Company Reporter, GM reported net loss
of US$6.0 billion, including special items, in the first quarter
of 2009.  This compares with a reported net loss of US$3.3 billion
in the year-ago quarter.  As of March 31, 2009, GM had
US$82.2 billion in total assets and US$172.8 billion in total
liabilities, resulting in US$90.5 billion in stockholders'
deficit.

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026).  General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.

The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts.  Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company.  GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel.  Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors.  GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.

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


HYUNDAI MOTOR: Pulls Out of Tokyo Motor Show
--------------------------------------------
Hyundai Motor Co. said it won't join in the Tokyo Motor Show this
year, the Associated Press reports.

"Hyundai Motor Co. will not be an official exhibitor at the 2009
Tokyo Motor Show because of the global economic downturn, which
has forced a more careful allocation of resources," the AP cited
Hyundai in a statement.

Hyundai, according to the AP, defended its decision as "in line
with other leading automakers who have canceled their
participation."

The report notes the large number of companies skipping the event
is unprecedented for the Tokyo show and underlines the industry's
serious slump.

The AP relates that as early as February, U.S. automakers such as
General Motors and Ford Motor said they weren't exhibiting at the
show because of economic woes.  By May, the AP says, almost all
foreign automakers had made a similar decision to save money,
including German automakers Volkswagen AG and BMW AG, which had
attended the previous Tokyo show in 2007.

The Tokyo Motor Show is slated to open on October 21 and runs
through November 4.

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

                           *     *     *

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


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


FISHER & PAYKEL: Bank Lenders Waive Budget Performance Covenant
---------------------------------------------------------------
Fisher & Paykel Appliances said it has concluded an agreement with
its banking syndicate whereby the budget performance covenant test
as at September 30, 2009, has been waived.

The company also said that the banking syndicate has accepted a
revised forecast against which the budget performance covenant
will be tested for the three months ending December 31, 2009, and
the six months ending March 31, 2010.

                          Debt Facilities

The recently announced sale and leaseback of part of the East
Tamaki site is scheduled to be completed during October.  Of the
NZ$53 million sales proceeds, NZ$34 million will be immediately
used to complete the full repayment of the NZ$235 million
Amortising Debt Facility.  The balance will be used to repay the
Company's Term Debt Facility and the facility limit will now
reduce by NZ$40 million on March 31, 2010, consistent with the
previously announced intentions of the Company.

Debt is forecast to fall below NZ$200 million by 31 March 2010 as
inventory reductions continue and cash flow from operations
improves through the second half of the current financial year.

                         Revised Forecast

Fisher & Paykel said the higher than expected levels of
competition and continued depressed market conditions in the USA,
particularly in the high end of the appliances sector, are likely
to result in first half earnings for the Group being below the
level of first half earnings in the Prospective Financial
Information as contained in the Rights Issue Investment Statement
and Prospectus issued on May 27, 2009.

"As a result of these market conditions, North American sales
revenue in USD terms is now forecast to finish the year
approximately 12% below the level assumed in the PFI," the company
said in a September 24 statement.

Group Normalised Operating Earnings before Interest and Tax for
the full year is expected to be NZ$19 - NZ$24 million below the
NZ$87.7 million that was forecast in the PFI for the year ending
March 31, 2010.

FY 2010 Normalised Net Profit after Tax is forecast to be
approximately NZ$20 - NZ$23 million (PFI NZ$32.8 million).  The
company expects a net loss (after tax and abnormals) of
NZ$2.0 - NZ$5.0 million (PFI $11.7 million profit).   As a
consequence of the under performance in North America the
Directors are reviewing the carrying value of assets for any
possible impairment.
                         New Bank Funding

As reported in the Troubled Company Reporter-Asia Pacific on
May 29, 2009, Bloomberg News said the company arranged a new
NZ$575 million, three-year banking package.  Of this, NZ$235
million has to be repaid by the end of April next year, AFP said.

Bloomberg News related Fisher & Paykel has posted a NZ$95.3
million full-year loss after sales in Europe and the U.S.
plunged and it was forced to sell properties to reduce debt.  The
same report recalled the company warned investors in February it
may need to raise capital after a plant closure in the U.S. and a
slump in the New Zealand dollar increased debts incurred shifting
output overseas.

AFP said the New Zealand white goods manufacturer's debt ballooned
to US$323.5 million as it shifted manufacturing to cheaper
countries such as Thailand and Mexico.

                      About Fisher & Paykel

Fisher & Paykel Appliances Holdings Ltd. --
http://www.fisherpaykel.com/--  is a New Zealand-based company,
which has two principal areas of business: Appliance manufacturer,
distributor and marketer (Appliances Group) and Financial services
in New Zealand (Finance Group).  The principal activity of the
Appliances business is the design, manufacture and marketing of
household appliances.  Its major markets are New Zealand,
Australia, North America and Europe. The Appliances business has
manufacturing operations in New Zealand, Australia, North America,
Italy and Thailand.  The Finance business is a provider of retail
point of sale consumer finance (including the Farmers Finance
Card), insurance services, and rental and leasing finance.


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


MERITLAND REALTY: Creditors' Proofs of Debt Due on October 12
-------------------------------------------------------------
The creditors of Meritland Realty Pte Ltd are required to file
their proofs of debt by October 12, 2009, to be included in the
company's dividend distribution.

The company's liquidator is:

          Neo Ban Chuan
          c/o KordaMentha Pte Ltd
          30 Robinson Road
          Robinson Towers, #12-01
          Singapore 048546


MOULMEIN DEVELOPMENT: Creditors' Proofs of Debt Due on October 12
-----------------------------------------------------------------
The creditors of Moulmein Development Pte Ltd are required to file
their proofs of debt by October 12, 2009, to be included in the
company's dividend distribution.

The company's liquidator is:

          Neo Ban Chuan
          c/o KordaMentha Pte Ltd
          30 Robinson Road
          Robinson Towers, #12-01
          Singapore 048546


O.C.C. HOLDING: Creditors' Proofs of Debt Due on October 26
-----------------------------------------------------------
The creditors of O.C.C. Holding Pte Ltd are required to file their
proofs of debt by October 26, 2009, to be included in the
company's dividend distribution.

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

The company's liquidator is:

          Mdm Chia Lay Beng
          1 Scotts Road, #21-08 Shaw Centre
          Singapore 228208


SPORTS NETWORK: Creditors' First Meeting Set for October 8
----------------------------------------------------------
The creditors of Sports Network Pte Ltd will hold their first
meeting on October 8, 2009, at 9:00 a.m.  At the meeting, the
creditors will be asked to:

   -- receive an update on the progress of liquidation;
   -- appoint a Committee of Inspection;
   -- approve the sale of stocks; and
   -- discuss other business.

The company's liquidator is:

          Aaron Loh Cheng Lee
          c/o Ernst & Young Solutions LLP
          One Raffles Quay
          North Tower, Level 18
          Singapore 048583


THK REALTY: Creditors' Proofs of Debt Due on October 12
-------------------------------------------------------
The creditors of THK Realty Pte Ltd are required to file their
proofs of debt by October 12, 2009, to be included in the
company's dividend distribution.

The company's liquidator is:

          Neo Ban Chuan
          c/o KordaMentha Pte Ltd
          30 Robinson Road
          Robinson Towers, #12-01
          Singapore 048546


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


TAIWAN HIGH: Bankers Won't Lend More Than NT$382 Billion
--------------------------------------------------------
Crystal Hsu at Taipei Times reports that Bank of Taiwan Chairwoman
Susan Chang said Wednesday the banks would lend no more than
NT$382 billion to Taiwan High Speed Rail Corp.

According to the report, Ms. Chang, who is leading talks on a
refinancing plan on behalf of lenders, said NT$308.3 billion of
the loan would be guaranteed by the government.

Ms. Chang, as cited by the Times, said that while the company has
put up its tracks, trains, stations and other equipment as
collateral, the lenders wanted THSRC's founding shareholders to
jointly guarantee the remaining NT$73.7 billion.

The Times relates Ms. Chang said she hoped to settle the
refinancing plan before THSRC's current debt payments become due
in November.  The new loan, Ms. Chang added, would be offered at a
reduced interest rate, but that the cut would not exceed 1
percentage point.

The Taipei Times, meanwhile, reports that two analysts have urged
the government to compel THSRC's shareholders to pay the company's
debts rather than keep pumping money into what they called a
"bottomless money pit."

The report, citing Jack Lee, a member of the Taiwan
Competitiveness Forum, said the government should push a capital
reduction plan for THSRC shareholders to pay off current debts to
improve the company's financial profile.

The Troubled Company Reporter-Asia Pacific, citing Taiwan News,
reported last week that Taiwan High Speed Rail Corp. accepted the
resignation of Chairwoman Nita Ing.  Ms. Ing will be replaced by
Ou Chin-der, the representative of the government-controlled China
Aviation Development Foundation, a major shareholder of THSRC.

Taiwan News said that the high-speed railway went into operation
less than three years ago, but had already incurred an accumulated
loss of NT$70.2 billion as of the end of June this year, or about
two-thirds of its total paid-in capital of NT$105.3 billion
(US$3.23 billion).

Taiwan News stated that the Ministry of Transportation and
Communications in February agreed to assist the company in
resolving its financial difficulties by seeking new bank loans but
creditor banks are reluctant to approve new loans unless the
THSRC's five original shareholders injected more capital.

The company is likely to be forced to go bankrupt within two years
if the annual loss of around NT$25 billion lingers and if no
additional fund is injected into the firm, according to The China
Post.

                            About THSRC

Taiwan High Speed Rail Corporation is principally engaged in the
construction, development and operation of the high-speed railway
system in Taiwan.  The Company is also involved in other high-
speed railway transportation-related businesses and the
development and usage of train station sites.  The Company's high-
speed railway transportation-related businesses include shopping
malls, special stores located in travel agencies, car leasing and
parking lots, among others.  The Company developed train station
sites for hotel, restaurant, entertainment, department store,
financial service, tourism service, communication service and
other uses.  During the year ended December 31, 2008, the Company
carried approximately 30.581 million of passengers by train.


                         *********

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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