TCRAP_Public/100105.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Tuesday, January 5, 2010, Vol. 13, No. 002

                            Headlines



A U S T R A L I A

FORTESCUE METALS: Ordered to Review Safety Systems After Incidents
GRIFFIN COAL: West Australia Gov't. Guarantees Workers' Benefits
TRIO CAPITAL: Holds AU$1.5-Mln Risky Debenture


C H I N A

CHINESEWORLDNET.COM: Files Amended Annual Report for 2008
LDK SOLAR: Closes Offering of 16,520,000 ADSs at US$7.00 per ADS
LDK SOLAR: Posts US$210 Million Net Loss in Q3 2009


H O N G  K O N G

EVANGEL FLOWERS: Members' Final Meeting Set for January 25
HONGKONG-SHANGHAI CULTURAL: Members' Final Meeting Set for Jan. 25
LUMENA RESOURCES: Moody's Reviews 'B1' Corporate Family Rating
MEADHAM LIMITED: Placed Under Voluntary Wind-Up Proceedings
MERANTI JOINERY: Seng and Lo Step Down as Liquidators

NUCLEAR CONSTRUCTION: Final Meetings Set for January 27
PAMFORD LIMITED: Members' Final Meeting Set for January 29
POPE & KIERMAN: Placed Under Voluntary Wind-Up Proceedings
PROMISE WIN: Members' Final Meeting Set for January 25
SOHOMILANO INNOVATIVE: Creditors' Proofs of Debt Due January 24

STRANWELL HOLDINGS: Members' Annual Meeting Set for Jan. 11
VERTEX CHINA: Members' Final Meeting Set for January 26
WELL CENTURY: Members' Final Meeting Set for January 27
ZHONG FREIGHT: Final Meetings Set for January 26


I N D I A

AJAY FOOD: Delay in Term Loan Repayment Cues CRISIL 'D' Ratings
ARKAY LEATHERS: CRISIL Rates Various Bank Facilities at 'P4'
EASTERN BEARINGS: CRISIL Puts 'BB-' Rating on INR8.5MM Term Loan
FORTUNE CARS: CRISIL Places 'B' Rating on INR185 Mil. Cash Credit
G.P. ISPAT: CRISIL Places 'BB' Rating on INR146.2 Mil. LT Loan

GANESH BUILDERS: CRISIL Assigns 'BB' Rating on INR30MM Cash Credit
GANGADHAR DEVELOPERS: CRISIL Puts Junk Ratings on INR401MM Loan
GEO SEAFOODS: CRISIL Assigns 'BB+' Rating on INR5.2 Mil. LT Loan
GREEN AGRO: CRISIL Assigns 'B' Ratings on Various Bank Facilities
JALNIDHI BITUMEN: CRISIL Rates INR70 Mil. Cash Credit at 'BB-'

MANGALA ISPAT: CRISIL Puts 'BB+' Ratings on INR67.6 Mil. Term Loan
MOHAN GEMS: Low Operating Margins Cue CRISIL 'B+' Ratings
OM BIOMEDIC: Delay in Loan Repayment Prompts CRISIL Junk Ratings
PALAK JEWELLERS: CRISIL Rates INR50 Mil. Cash Credit at 'BB+'
PARAS STEEL: CRISIL Assigns 'BB' Rating on Cash Credit Limit

RADHA SMELTERS: CRISIL Assigns 'BB-' Ratings on Various Bank Debts
RAGHU PRIME: Delay in Term Loan Payment Cues CRISIL Junk Ratings
SANJOO PRINTS: CRISIL Assigns Junk Ratings on Various Bank Debts
SRI KANDHAN: CRISIL Places 'P4' Ratings on Various Bank Facilities
SHRI KSHETRA: CRISIL Rates INR3.80 Bil. Long Term Loan at 'BB+'

TREND SETTERS: Default in Loan Repayment Cues CRISIL Junk Ratings
VIJAYKUMAR & COMPANY: CRISIL Rates INR35MM Cash Credit at 'BB'


I N D O N E S I A

GARUDA INDONESIA: Bank Mandiri Acquires 10% Garuda Stake


J A P A N

AIFUL CORP: Resumes Television Advertising After Debt Plan OK'd
HITACHI LTD: To Boost Sales to More Than 50% Thru Expansion
HN TRUST: Fitch Affirms Ratings on Senior Beneficial Interests
JAPAN AIRLINES: AMR Remains in Talks with JAL on Equity Infusion
JAPAN AIRLINES: President Nishimatsu Prefers Delta Over AMR

JAPAN AIRLINES: Wins Employee's Approval for Pension Cuts


K O R E A

BUSAN BANK: Ratings Remain Unchanged, Moody's Says
CITIBANK KOREA: Ratings Remain Unchanged, Moody's Says
DAEGU BANK: Ratings Remain Unchanged, Moody's Says
HANA BANK: Ratings Remain Unchanged, Moody's Says
HANJIN HEAVY: Plans to Cut Workforce by 30% in February

HYUNDAI MOTOR: Aims to Boosts Global Sales by 17% This Year
KOREA EXCHANGE BANK: Lone Star's Purchase Legitimate, Court Rules
KUMHO ASIANA: KDB Seeks Strategic Investors for Daewoo Engineering
KUMHO ASIANA: To Slash Executive Headcount by 20%; to Sell Assets


N E W  Z E A L A N D

KINGSTON ACQUISITIONS: Railmark Continues Bid for Kingston Flyer


P A K I S T A N

* PAKISTAN: Moody's Reports Negative Outlook for Banking System


T A I W A N

ASUSTEK COMPUTER: To Spinoff Pegatron Unit by June 1


X X X X X X X X

* BOND PRICING: For the Week December 28, 2009 to January 1, 2010




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A U S T R A L I A
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FORTESCUE METALS: Ordered to Review Safety Systems After Incidents
------------------------------------------------------------------
Fortescue Metals Group has been directed to commission an
independent engineering review and audits of its safety systems at
its three mining operations in Western Australia, The Australian
Associated Press reports.

The AAP says Western Australia's state mining engineer Simon Ridge
gave the order following three major incidents in the past month.

The report relates Mr. Ridge said that one of department's
Resources Safety Mines inspectors was conducting an investigation
into an incident on December 26 in which a light vehicle was
crushed when a truck drove over it.

"While the recent incidents have not resulted in any deaths or
injury, it is extremely important to clearly identify all factors
involved to ensure that there is no similar occurrences that could
result in adverse consequences," the report cited Mr. Ridge as
saying in a statement.

Fortescue has been given until the end of March to report back to
the department, the report notes.

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.


GRIFFIN COAL: West Australia Gov't. Guarantees Workers' Benefits
----------------------------------------------------------------
Bloomberg News, citing the Australian Financial Review, reports
that Griffin Coal Mining Co. workers will be guaranteed their
entitlements by the West Australia state government after the
company appointed an administrator.

The newspaper, citing state Energy Minister Peter Collier,
reported that the government said it has enough coal to maintain
power supplies, according to Bloomberg.

The Sydney Morning Herald, meanwhile, reports that creditors,
including the 500 employees of Griffin Coal, will get their first
chance to question the company's administrators in Perth next
week.

The Herald says the initial creditors meeting for the Ric Stowe-
controlled company will take place on January 13.

The Troubled Company Reporter-Asia Pacific, citing Bloomberg News,
reported yesterday that Griffin Coal Mining Co., appointed
Kordamentha as administrator with total debts amounting to about
AU$700 million.

Bloomberg said the coal supplier defaulted on an interest payment
last month to bondholders owed $475 million and also missed a
payment to Australia's tax authority.

KordaMentha partner Brian McMaster said the 300 employees of the
coal operation would operate on a "business as usual" basis while
administrators assessed the condition of the business, according
to the Business Spectator.

Based in Australia, The Griffin Coal Mining Company Pty Ltd --
http://www.griffincoal.com.au/-- is engaged in coal mining and
processing.  Griffin Coal operates major mines in the Collie area,
approximately 220 kilometers south east of Perth.  The Company is
producing more than three million tons of coal per year. Griffin
Coal has operations at Ewington Mine, Muja Mine and Buckingham
Mine.


TRIO CAPITAL: Holds AU$1.5-Mln Risky Debenture
----------------------------------------------
The Sydney Morning Herald reports that a AU$1.5 million debenture
owed by Astarra Asset Management is listed in the books of one of
Trio Capital Limited's managed funds as an asset.

The Herald says the investors in ARP Growth Fund, however, should
not hold high hopes for its prospects as Astarra Asset Management
was placed into administration shortly before Christmas.

In addition, the report notes, the only security on offer for its
investment is the shares owned by [Astarra Asset Management] in
SpecOpsLab, a defunct listed Nasdaq entity to the total value of
AU$1,500,000.

The appearance of a risky debenture within ARP raises further
questions about the quality of assets that have been placed into
Trio's funds, according to the Herald.

As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 22, 2009, the Australian Prudential Regulation Authority
(APRA) suspended Trio Capital Limited (formerly Astarra Capital
Limited) as the trustee of its four superannuation funds and one
pooled superannuation trust, and appointed an Acting Trustee to
manage these five entities.

APRA suspended Trio and appointed an Acting Trustee as a result of
numerous breaches of Trio Capital Limited's license conditions and
Trio not being able to satisfy APRA's concerns regarding the
valuation of superannuation assets.  The Acting Trustee of the
superannuation entities is ACT Super Management Pty Ltd, a
subsidiary of McGrathNicol.

The four main superannuation funds -- Astarra Superannuation Plan,
Astarra Personal Pension Plan, My Retirement Plan, and the
Employers Federation of NSW Superannuation Plan -- have
approximately 10,000 members and their last reported assets as at
end September 2009 totalled AU$300 million.  Total assets under
management in the various Trio Capital Limited superannuation
entities and registered managed investment schemes, for which Trio
is the Responsible Entity, are approximately AU$426 million.  The
total number of non superannuation investors is 732.  The
superannuation entities have significant investments in the
Astarra Strategic Fund (ASF), one of the Trio Capital Limited
managed investment schemes.  The ASF financial statements for the
year ended June 30, 2009, show total assets of around AU$118
million.

The Australian Securities and Investments Commission has also
suspended the Australian Financial Services Licence held by Trio
Capital Limited, under which it acts as responsible entity of 24
registered managed investment schemes, including the Astarra
Strategic Fund.

Trio Capital Limited has been placed into external administration.
Trio, under the control of its administrators, Stephen James
Parbery, Neil Singleton and Nicholas Martin of PPB, will continue
to act as responsible entity of the registered schemes until a
replacement responsible entity is found or the schemes are wound
up.

APRA and ASIC have been working closely in their separate
investigations into the affairs of the Trio Capital Limited
superannuation entities and managed investment schemes (including
underlying funds of those schemes) and will continue to do so.

ASIC said it will work with PPB to ensure the interests of the
members of the registered schemes are protected during this
period.

The Acting Trustee has been appointed by APRA to protect the
interests of the superannuation fund members.  The Acting Trustee
will be required to provide APRA with a report setting out among
other things a plan of its proposed course of action in respect of
the ongoing and future management of the superannuation entities.
The administrators have been similarly appointed to protect the
interests of the members of the registered managed investments
schemes.

                           Background

ASIC commenced an investigation of the Astarra Strategic Fund on
October 2, 2009.

On October 21, 2009, ASIC issued a stop order on the product
disclosure statements for Astarra Superannuation Plan, Astarra
Personal Pension Plan, My Retirement Plan and three related sub-
funds of My Retirement Plan.  The effect of the stop orders was to
prevent new issues of interests in the schemes and superannuation
funds to investors.

ASIC also issued a stop order on October 16, 2009, in relation to
the product disclosure statements for Astarra Conservative Fund,
Astarra Balanced Fund, Astarra Growth Fund, Astarra Strategic
Fund, Astarra Covered Call Fund and Astarra International Covered
Call Fund.

APRA issued directions freezing the assets of the four main
superannuation funds on October 21, 2009, for one month
(subsequently extended to February 19, 2010) to minimize the risk
that transactions with fund members would occur on unit prices
that may not be reliable.

While the freezing orders are in place, the four superannuation
funds are precluded from accepting contributions and rollovers,
making benefit payments or transfers to other funds or allowing
investment switching.  In addition, Trio undertook to ensure that
redemptions from the managed investment schemes and all
superannuation funds did not occur.  However, APRA has permitted,
on a limited basis, monthly pension payments and certain other
payments to be made but their continuation will be subject to
ongoing assessment by the Acting Trustee and APRA.


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C H I N A
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CHINESEWORLDNET.COM: Files Amended Annual Report for 2008
---------------------------------------------------------
On December 11, 2009, ChineseWorldNet.com Inc. filed an amended
annual report for the year ended December 31, 2008, on Form 20-F/A
with the Securities and Exchange Commission.

The Company has filed this amendment to its annual report on Form
20-F in order to provide a report on management's assessment of
internal control over financial reporting for the year ended
December 31, 2008.

A full-text copy of the amended Form 20-F is available at no
charge at http://researcharchives.com/t/s?4cc7

As reported in the Troubled Company Reporter on July 9, 2009, the
Company posted a net loss of US$950,123 for 2008 compared with net
income of US$108,354 for 2007.

At December 31, 2008, the Company's balance sheet showed total
assets of US$2,104,383, total liabilities of US$621,072 and
stockholders' equity of US$1,483,311.

                        Going Concern Doubt

On May 29, 2009, Chang Lee LLP in Vancouver, Canada, expressed
substantial doubt about Chineseworldnet.com Inc.'s ability to
continue as a going concern after auditing the company's
consolidated financial statements for the year ended December 31,
2008, and 2007.  The independent public accounting firm reported
that the Company has incurred recurring losses from inception and
requires additional financing for its intended business
operations.

                  About ChineseWorldNet.com Inc.

Based in Vancouver, B.C., ChineseWorldNet.com Inc. (OTC BB: CWNOF)
-- http://www.chineseworldnet.com/-- is a financial web-based
portal that provides up-to-date financial information and
financial management tools in Chinese to the Chinese community in
North America.  The Company's Portal provides financial news and
information on North American blue chip and large cap S&P 500
public companies listed or quoted on the New York Stock Exchange,
the American Exchange, NASDAQ and Toronto Stock Exchange, as well
as Shanghai Stock Exchange and Shenzhen Stock Exchange and
Taiwanese companies and market news by an in-house editorial team,
with Hong Kong company and market news provided by the Company's
partners.

The Company generates direct revenues from a number of means
through the www.chineseworldnet.com website including premium
subscription fees and on-line advertising and marketing services.


LDK SOLAR: Closes Offering of 16,520,000 ADSs at US$7.00 per ADS
----------------------------------------------------------------
In a regulatory 6-K filing dated December 24, 2009, LDK Solar Co.,
Ltd., discloses that on December 23, 2009, it closed a follow-on
offering of 16,520,000 American depositary shares, or ADSs, each
representing one ordinary share, at a price to the public of
US$7.00 per ADS.  The Company received net proceeds of
US$111,014,400 from this offering.

LDK Solar expects to use approximately US$90.0 million of its net
proceeds to pay down short-term debt and the remaining net
proceeds to fund the poly-silicon production plant and the
expansion of the solar module business, and for general corporate
purposes.

Morgan Stanley and Citi acted as joint bookrunners for the
offering.

                         About LDK Solar

LDK Solar Co., Ltd. (NYSE: LDK) -- http://www.ldksolar.com/-- is
a leading manufacturer of multicrystalline solar wafers, which are
the principal raw material used to produce solar cells.  LDK Solar
sells multicrystalline wafers globally to manufacturers of
photovoltaic products, including solar cells and solar modules.
In addition, LDK Solar provides wafer processing services to
monocrystalline and multicrystalline solar cell and module
manufacturers.  LDK Solar's headquarters and manufacturing
facilities are located in Hi-Tech Industrial Park, Xinyu City,
Jiangxi Province in the People's Republic of China.  LDK Solar's
office in the United States is located in Sunnyvale, California.

As of September 30, 2009, the Company had an annualized wafer
production capacity of approximately 1.7 GW.

At September 30, 2009, the Company's consolidated balance sheets
showed US$4.013 billion in total assets, US$3.417 billion in total
liabilities, and US$596.0 million in total equity

                       Going Concern Doubt

At September 30, 2009, the Company had a working capital deficit
US$1.152 billion and an accumulated deficit of US$8.5 million.
During the nine-month period ended September 30, 2009, the Company
incurred a net loss of US$210.0 million and used US$95.2 million
of cash in operations.  The Company had cash and cash equivalents
of US$67.8 million, most of which are held by subsidiaries in the
People's Republic of China.  Most of the Company's short term bank
borrowings and current installments of its long-term debt totaling
US$1.104 billion reside with these subsidiaries.

"These factors initially raise substantial doubt as to the Group's
ability to continue as a going concern.  However, we believe that
we have developed a liquidity plan that, if executed successfully,
will provide sufficient liquidity to finance our anticipated
working capital and capital expenditure requirements for the next
12 months."


LDK SOLAR: Posts US$210 Million Net Loss in Q3 2009
---------------------------------------------------
LDK Solar Co., Ltd., reported a net loss of US$210.0 million for
the nine months ended September 30, 2009, compared with net income
of US$285.4 million for the nine months ended September 30, 2008.

The swing to a net loss for the nine months ended September 30,
2009, compared to the same period last year was primarily due to
the decrease in net sales and increase in provision for inventory
write-down.

For the nine months ended September 30, 2009, net sales were
approximately US$793.4 million, representing a decrease of
US$423.4 million from net sales of US$1.217 billion for the nine
months ended September 30, 2008.  This decrease was primarily due
to the decline in the average selling price of the Company's
solar wafers, partially offset by an increase in processing
volume.

                    Summary of Net Cash Flows

During the nine months ended September 30, 2009, net cash used in
operating activities was US$95.2 million because of an increase in
trade accounts receivable and bills receivable of US$154.2 million
as a result of the Company offering a credit period to more
customers instead of requiring prepayment in 2009 in light of
recent changes to industry practice, an increase in pledged bank
deposit by US$17.2 million and an increase in prepayments to
suppliers by US$9.6 million to secure the Company's future sources
of raw materials.

During the nine months ended September 30, 2008, net cash provided
by operating activities was US$353.5 million because of a
US$553.5 million increase in advance payments received from the
Company's customers for future sales, which was partially offset
by an increase in inventory by US$311.4 million, an increase in
prepayments to suppliers by US$148.5 million to secure the
Company's future sources of raw materials, and an increase in
pledged bank deposits by US$35.4 million.

During the nine months ended September 30, 2009, net cash used in
investing activities amounted to US$661.1 million, mainly as a
result of investments in additional property, plant and equipment
for US$598.8 million, purchase of additional land use rights at
the Company's Xinyu Hi-Tech Industrial Park site for US$14.5
million and cash paid for investment in an associate and a
jointly-controlled entity of US$74.5 million.

During the nine months ended September 30, 2008, net cash used in
investing activities amounted to US$869.5 million, mainly as a
result of purchases of property, plant and equipment for
US$743.0 million, purchase of additional land use rights at the
Company's Xinyu Hi-Tech Industry Park site for US$67.1 million for
the expansion of the Company's wafer manufacturing capacity and
the construction of the Company's polysilicon plants and the
Company's pledged bank deposits of US$57.1 million relating to
purchases of property, plant and equipment.

During the nine months ended September 30, 2009, net cash provided
by financing activities amounted to US$566.5 million, mainly as a
result of the net proceeds of US$581.7 million from the Company's
net bank borrowings during the period.  The Company's aggregate
new loans and borrowings during the nine months ended
September 30, 2009, amounted to US$1.783 billion.  The Company
repaid an aggregate principal amount of US$1.201 billion of the
Company's loans and borrowings during the period.

During the nine months ended September 30, 2008, net cash provided
by financing activities amounted to US$778.7 million, mainly as a
result of net proceeds of US$905.9 million from the Company's
issuance of ordinary shares and convertible senior notes and net
bank borrowings during the period.  Aggregate new loans and
borrowings during the nine months ended September 30, 2008,
amounted to US$671.0 million.  The Company repaid an aggregate
principal amount of US$358.9 million of its loans and borrowings
during the period.  The Company prepaid US$199.4 million relating
to the Company's prepaid forward contracts in connection with the
offering of the Company's convertible senior notes in April 2008.

                            Total Debt

The aggregate principal amount of short-term bank borrowings and
current installments of long-term bank borrowing, outstanding as
of September 30, 2009, and December 31, 2008, was US$1.104 billion
and US$662.2 million, respectively.  The aggregate principal
amount of long-term bank borrowings outstanding, excluding current
portions, as of September 30, 2009, and December 31, 2008, was
US$298.9 million and US$154.3 million, respectively.

                          Balance Sheet

At September 30, 2009, the Company's consolidated balance sheets
showed US$4.013 billion in total assets, US$3.417 billion in total
liabilities, and US$596.0 million in total equity.

The Company's consolidated balance sheets at September 30, 2009,
also showed strained liquidity with US$1.099 billion in total
current assets available to pay US$2.250 billion in total current
liabilities.

A full-text copy of the Company's unaudited condensed consolidated
financial statements for the nine-month periods ended Sept. 30,
2009, and 2008, is available at no charge at:

                  http://researcharchives.com/t/s?4cce

                       Going Concern Doubt

At September 30, 2009, the Company had a working capital deficit
US$1.152 billion and an accumulated deficit of US$8.5 million.
During the nine-month period ended September 30, 2009, the Company
incurred a net loss of US$210.0 million and used US$95.2 million
of cash in operations.  The Company had cash and cash equivalents
of US$67.8 million, most of which are held by subsidiaries in the
People's Republic of China.  Most of the Company's short term bank
borrowings and current installments of its long-term debt totaling
US$1.104 billion reside with these subsidiaries.

"These factors initially raise substantial doubt as to the Group's
ability to continue as a going concern.  However, we believe that
we have developed a liquidity plan that, if executed successfully,
will provide sufficient liquidity to finance our anticipated
working capital and capital expenditure requirements for the next
12 months."

                         About LDK Solar

LDK Solar Co., Ltd. (NYSE: LDK) -- http://www.ldksolar.com/-- is
a leading manufacturer of multicrystalline solar wafers, which are
the principal raw material used to produce solar cells.  LDK Solar
sells multicrystalline wafers globally to manufacturers of
photovoltaic products, including solar cells and solar modules.
In addition, LDK Solar provides wafer processing services to
monocrystalline and multicrystalline solar cell and module
manufacturers.  LDK Solar's headquarters and manufacturing
facilities are located in Hi-Tech Industrial Park, Xinyu City,
Jiangxi Province in the People's Republic of China.  LDK Solar's
office in the United States is located in Sunnyvale, California.

As of September 30, 2009, the Company had an annualized wafer
production capacity of approximately 1.7 GW.


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H O N G  K O N G
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EVANGEL FLOWERS: Members' Final Meeting Set for January 25
----------------------------------------------------------
Members of Evangel Flowers Christian Charitable Foundation
Limited, which is in members' voluntary liquidation, will hold
their final meeting on January 25, 2010, at 10:00 a.m., at
Room 1217, 17/F, North Tower, Concordia Plaza, 1 Science Museum
Road, Tsimshatsui, Kowloon, in Hong Kong.

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


HONGKONG-SHANGHAI CULTURAL: Members' Final Meeting Set for Jan. 25
------------------------------------------------------------------
Members of Hongkong-Shanghai Cultural Exchange Association
Limited, which is in members' voluntary liquidation, will hold
their final general meeting on January 25, 2010, at 10:00 a.m., at
Unit 6, 9/F., Tower B, Hoi Luen Industrial Centre, 55 Hoi Yuen
Road, Kwun Tong, in Kowloon.

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


LUMENA RESOURCES: Moody's Reviews 'B1' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has put on review for possible downgrade
Lumena Resources Corp's B1 corporate family and senior unsecured
bond ratings.

The review has been prompted by the company's announcement that
its controlling shareholder has pledged a stake of about 20.5% --
as security --- for a loan from Bank of China International.

Lumena's largest shareholder, Mr. Suolang Duoji, through Nice Ace
Technology Ltd, owns approximately 37.5% of the company.  Details
of the loan are not available at this stage.

"Moody's had previously expressed concerns over Lumena's untested
financial discipline and corporate governance due to its short
track record as a listed entity.  This recent transaction raises
Moody's concerns over these issues," says Elizabeth Allen, a
Moody's Vice President.

"While the pledge of shares by Lumena's largest shareholder does
not appear to have any immediate impact on the company's operation
or financial position, it adds a degree of uncertainty over the
stability of Lumena's financial profile.  If the loan repayments
or conditions are not met, it could trigger a change of control
event under Lumena's bonds," adds Allen.

Lumena's US$250 million 12% Senior Notes due 2014 specifies that
if the interest of the controlling shareholder falls below 30%,
then it would trigger a change of control.

Under such a situation, the company has to offer to purchase all
outstanding notes at 101% of the principal amount plus interest.
Should this happen, it is uncertain as to whether the company
would have the ability to do so.

It is also uncertain as to whether such a change of control would
constitute any event of default under any other debt instruments.

During the rating review, Moody's will seek to understand the
rationale and details of this loan transaction, reassess the
transparency and financial needs of the major businesses --
outside Lumena -- of its largest shareholder, and ascertain how
the above may affect the future financial condition or policy of
Lumena.

The last rating action on Lumena was taken on October 28, 2009,
when Moody's affirmed its B1 corporate family and bond ratings.

Lumena Resources Corp. mines, processes and manufactures natural
thenardite products.  Thenardite is also known as anhydrous sodium
sulphate, a basic chemical.  Lumena operates two mines and
processing facilities in Sichuan Province in China with an annual
production capacity of around 1.6 million tons.  It was listed on
the Hong Kong Stock Exchange in June 2009.


MEADHAM LIMITED: Placed Under Voluntary Wind-Up Proceedings
-----------------------------------------------------------
At an extraordinary general meeting held on December 18, 2009,
shareholders of Meadham Limited resolved to voluntarily wind up
the company's operations.

The company's liquidators are:

         Ng Tze Kin
         Yuen Shu Tong
         Malaysia Building, 3/F
         50 Gloucester Road
         Wanchai, Hong Kong


MERANTI JOINERY: Seng and Lo Step Down as Liquidators
-----------------------------------------------------
Natalia K M Seng and Susan Y H Lo stepped down as liquidators of
Meranti Joinery Products Limited on December 11, 2009.


NUCLEAR CONSTRUCTION: Final Meetings Set for January 27
-------------------------------------------------------
Contributories and creditors of Nuclear Construction and
Engineering Company Limited will hold their final meetings on
January 17, 2010, at 11:00 a.m., and 11:30 a.m., respectively at
the 18/F, 1801 Wing On House, 71 Des Voeux Road, Central, in Hong
Kong.

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


PAMFORD LIMITED: Members' Final Meeting Set for January 29
----------------------------------------------------------
Members of Pamford Limited, which is in members' voluntary
liquidation, will hold their final general meeting on January 29,
2010, at 10:00 a.m., at 7/F, Allied Kajama Building, 138
Gloucester Road, Wanchai in Hong Kong.

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


POPE & KIERMAN: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on December 18, 2009,
members of Pope & Kiernan & Black Limited resolved to voluntarily
wind up the company's operations.

The company's liquidators are:

         Bruno Arboit
         Simon Blade
         China Merchants Tower,
         Shun Tak Centre, 12/F
         168-200 Connaught Road
         Central, Hong Kong


PROMISE WIN: Members' Final Meeting Set for January 25
------------------------------------------------------
Members of Promise Win Limited, which is in members' voluntary
liquidation, will hold their final general meeting on January 25,
2010, at 11:00 a.m., at No. 10, Lane 688, Qing Xi Road, Zhang Ning
Qu, Shanghai in China.

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


SOHOMILANO INNOVATIVE: Creditors' Proofs of Debt Due January 24
---------------------------------------------------------------
Creditors of Sohomilano Innovative Industries Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by January 24, 2010, to be included in the company's
dividend distribution.

The company's liquidator is:

         Tjon Yose Manuel Sie Fo
         Hua Chiao Commercial Centre
         Unit A, 10/F
         678 Nathan Road
         Mong Kok, Kowloon
         Hong Kong


STRANWELL HOLDINGS: Members' Annual Meeting Set for Jan. 11
-----------------------------------------------------------
Members of Stranwell Holdings Company Limited, which is in
members' voluntary liquidation, will hold their annual meetings on
January 11, 2010, at 2:30 p.m., at the boardroom of Baker Tilly
Hong Kong, 12/F, China Merchants Tower, Shun Tak Centre, 168-200
Connaught Road Central, in Hong Kong.

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


VERTEX CHINA: Members' Final Meeting Set for January 26
-------------------------------------------------------
Members of Vertex China Investment (Hong Kong) Limited, which is
in members' voluntary liquidation, will hold their final general
meeting on January 26, 2010, at 11:00 a.m., at the Level 28, three
Pacific Place, 1 Queen's Road East, in Hong Kong.

At the meeting, Seng Sze Ka Mee Natalia and Cheng Pik Yuk, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


WELL CENTURY: Members' Final Meeting Set for January 27
------------------------------------------------------
Members of Well Century Investment Limited, which is in members'
voluntary liquidation, will hold their final general meeting on
January 27, 2010, at 9:00 a.m., at 15th Floor, Manulife Tower, 169
Electric Road, North Point, in Hong Kong.

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


ZHONG FREIGHT: Final Meetings Set for January 26
------------------------------------------------
Contributories and creditors of Zhong Freight Limited will hold
their final meetings on January 26, 2010, at 2:30 p.m., and 3:00
p.m., respectively at the 18/F, 1801 Wing On House, 71 Des Voeux
Road, Central, in Hong Kong.

At the meeting, N T C Hill, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.


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


AJAY FOOD: Delay in Term Loan Repayment Cues CRISIL 'D' Ratings
---------------------------------------------------------------
CRISIL has assigned its ratings of 'D/P5' to the bank facilities
of Ajay Food Products Pvt Ltd.  The ratings factor in the delay by
Ajay Food on its term loan obligations owing to weak liquidity.

   Facilities                             Ratings
   ----------                             -------
   INR100.0 Million Cash Credit           D(Assigned)
   INR92.6 Million Term Loan^             D (Assigned)
   INR8.5 Million Letter of Credit        P5(Assigned)

   ^ Including proposed limit of INR20.1 Million

Ajay Food, set up in 1972 as a proprietorship firm, became a
private limited company in 2000.  It manufactures and processes
pulses, besan, maida, atta and suji.  The company's plant at Katni
(Madhya Pradesh) has capacity to manufacture 30,000 tonnes of dal,
24,000 tonnes of besan and 45,000 tonnes of atta, maida and suji
per annum.

Ajay Food reported a profit after tax (PAT) of INR1.5 million on
net sales of INR1442.1 million for 2007-08 (refers to financial
year, April 1 to March 31), as against a PAT of INR9.7 million on
net sales of INR 1141.3 million for 2006-07.


ARKAY LEATHERS: CRISIL Rates Various Bank Facilities at 'P4'
------------------------------------------------------------
CRISIL has assigned its 'P4' rating to Arkay Leathers Pvt Ltd's
bank facilities.

   Facilities                             Ratings
   ----------                             -------
   INR75.00 Million Packing Credit        P4 (Assigned)
   INR90.00 Million Foreign Bill          P4 (Assigned)
                    Discounting*
   INR60.00 Million Letter of Credit      P4 (Assigned)

   *Includes sub limit of INR60.00 Million for bills drawn
    on exports to wholly owned subsidiaries.

The rating reflects ALPL's below-average financial risk profile,
and its susceptibility to fluctuations in the value of the Indian
rupee.  These rating weaknesses are partially offset by ALPL's
moderate business risk profile, supported by its promoter's
experience in the leather industry.

                       About Arkay Leathers

Set up in 1991 by Mr. R Kumar, ALPL manufactures finished leather
products.  ALPL's finished leather manufacturing units (tanneries)
are located in Pallavaram and Ranipet (Tamil Nadu), and its
garment manufacturing units are in Chennai.  The company has
installed capacity to manufacture 0.6 million square feet of
finished leather and 3000 pieces of leather garments per month.
The company exports mainly to China, Hong Kong, Taiwan, and
Europe.

ALPL reported a net loss of INR3.9 million on net sales of
INR509.7 million for 2008-09 (refers to financial year, April 1 to
March 31), against a profit after tax of INR0.9 million on net
sales of INR635.3 million for 2007-08.


EASTERN BEARINGS: CRISIL Puts 'BB-' Rating on INR8.5MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its ratings of 'BB-/Stable/P4' to Eastern
Bearings Pvt Ltd's bank facilities.

   Facilities                            Ratings
   ----------                            -------
   INR21.0 Million Cash Credit           BB-/Stable (Assigned)
   INR15.0 Million Cash Credit           BB-/Stable (Assigned)
               ? Book Debt
   INR20.0 Million Working Capital       BB-/Stable (Assigned)
                Demand Loan
   INR8.5 Million Term Loan              BB-/Stable (Assigned)
   INR14.0 Million Letter of Credit      P4 (Assigned)
   INR1.0 Million Bank Guarantee         P4 (Assigned)
   INR4.0 Million Packing Credit         P4 (Assigned)
   INR14.5 Million Proposed Short Term   P4 (Assigned)
                   Bank Loan Facility

The ratings reflect EBPL's small scale of operations in the
intensely competitive bearings industry, weak financial risk
profile, large working capital requirements, and vulnerability to
volatility in raw material prices and foreign exchange rates.
These rating weaknesses are partially offset by the benefits that
EBPL derives from its promoters' industry experience.

Outlook: Stable

CRISIL believes that EBPL will continue to benefit from its
promoters' industry experience.  However, its scale of operations
will remain small, and its financial risk profile will remain
weak, over the medium term.  The outlook may be revised to
'Positive' if the company's scale of operations increases
significantly, or if its net worth, and consequently financial
flexibility, improve.  Conversely, the outlook may be revised to
'Negative' if EBPL's revenues or operating profitability decline
sharply, or if the company undertakes any fresh large debt-funded
capital expenditure programme.

                      About Eastern Bearings

Incorporated in 2000, EBPL manufactures industrial bearings, and
fabricated metal structures for shelters in telecom towers.  The
bearings are sold under the ARB brand. EBPL has a manufacturing
unit in Kundli (Haryana).  The company is managed by Mr. Surinder
Goel and his brother, Mr. Sunil Goel.

EBPL reported a profit after tax (PAT) of INR4.0 million on net
sales of INR234.5 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR2.2 million on net sales
of INR139.8 million for 2007-08.


FORTUNE CARS: CRISIL Places 'B' Rating on INR185 Mil. Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'B/Negative' rating to Fortune Cars Pvt
Ltd's bank facilities.


   Facilities                           Ratings
   ----------                           -------
   INR185.0 Million Cash Credit*        B/Negative (Assigned)

   * Sublimit to cheque discount facility to the extent of
     INR10.0 Million.

The rating reflects FCPL's weak financial risk profile marked by
high gearing and moderate debt protection measures, and exposure
to intense competition in the passenger vehicle market.  These
weaknesses are partially offset by FCPL's longstanding presence
and established position in the Mumbai and the suburban market as
a dealer of Tata Motors Ltd's (Tata Motors') passenger vehicles.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of FCPL and Unitech Automobiles Pvt Ltd.
This is because these companies have a common management team and
have cross-guaranteed each other's facilities.

Outlook: Negative

CRISIL believes that FCPL's financial profile will remain weak in
the medium term, given the company's high gearing levels. The
rating may be revised downward if the company makes large debt-
funded investments, leading to deterioration in its financial risk
profile.  Conversely, the outlook may be revised to 'Stable' if
there is fresh equity infusion into the company, or a sustained
increase in its operating revenues and improvement in operating
margin.

                        About Fortune Cars

FCPL was incorporated in 1997 by Mr. Vinod Sharma, Mr. R P
Mungikar, Mr. S Premkumar, and Mr. N Subramanian.  FCPL is an
authorized dealer of Tata Motors for Mumbai, Thane, and the Raigad
region since 2000.  FCPL is part of the Unitech Group of
Companies, which, in addition to being a dealer of Tata Motors'
passenger vehicles and commercial vehicles, is into transport and
logistics and educational services.  UAPL, incorporated in 1986,
is a dealer of Tata Motors' commercial vehicles.

FCPL reported a profit after tax (PAT) of INR7.74 million on net
sales of INR1573.2 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR11.76 million on net
sales of INR1569.4 million for 2007-08.


G.P. ISPAT: CRISIL Places 'BB' Rating on INR146.2 Mil. LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of G.P. Ispat Pvt Ltd, which is part of the GP group.

   Facilities                             Ratings
   ----------                             -------
   INR146.2 Million Long Term Loan        BB/Stable (Assigned)
   INR390 Million Cash Credit             BB/Stable (Assigned)
   INR50 Million Bank Guarantee           P4+ (Assigned)

The ratings reflect the GP group's large working capital
requirements, and exposure to intense competition in the steel
industry, resulting in limited pricing flexibility.  These rating
weaknesses are partially offset by the GP group's moderate
business risk profile supported by its integrated nature of
operations, and improving financial risk profile.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of GP, Super Iron and Steel Pvt Ltd (SIS),
and Buland Ingot Pvt Ltd, together referred to as the GP group.
This is because GP has strong operational linkages with SIS, and
had acquired Buland in March 2009 to backward integrate its
operations.

Outlook: Stable

CRISIL believes that the GP group will maintain its credit risk
profile over the medium term on the back of its moderate financial
policy and limited capital expenditure (capex) plans.  The outlook
may be revised to 'Positive' if the GP group's backward
integration initiatives enhance its operating efficiencies and
profitability.  Conversely, the outlook may be revised to
'Negative' in case the GP group faces significant pressure on its
revenue and margins because of adverse market conditions, or if it
undertakes a large, debt-funded capex programme.

                         About the Group

GP was incorporated in 2005 by Mr. Pritpal Singh Chandhok and Mr.
Jagdish Singh Saini, and their sons, Mr. Gurpreet Singh Chandhok
and Mr. Sunny Saini, respectively.  GP manufactures high-strength
deformed steel reinforcement bars (re-bars) for concrete and
thermo-mechanically treated bars.  Its plant at Raipur,
Chhattisgarh, has capacity to produce 140,000 tonnes of rebars per
annum.  The company expanded its production capacity by 107,000
tonnes per annum in 2008-09 (refers to financial year, April 1 to
March 31); the expanded capacity was commissioned in March 2009.

SIS has induction furnaces with capacity to produce 4000 tonnes of
ingots per month.  Buland manufactures ingots and billets, and has
capacity of 3000 tonnes per month.

GP, on a stand-alone basis, reported a profit after tax (PAT) of
INR24 million on net sales of INR1.96 billion for 2008-09, against
a PAT of INR24.2 million on net sales of INR1.46 billion for
2007-08.  The GP group reported a PAT of INR40 million on net
sales of INR1.96 billion for 2008-09, against a PAT of INR5
million on net sales of INR1.46 billion for 2007-08.


GANESH BUILDERS: CRISIL Assigns 'BB' Rating on INR30MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank
facilities of Ganesh Builders.

   Facilities                             Ratings
   ----------                             -------
   INR30.0 Million Cash Credit*           BB/Stable (Assigned)
   INR160.0 Million Bank Guarantee**      P4+ (Assigned)

   *includes a proposed limit of INR15.00 Million
   **includes a proposed limit of INR60.00 Million

The ratings reflect Ganesh's small scale of operations, the
geographical concentration in its revenue profile, its limited
financial flexibility, large working capital requirements, and
exposure to volatility in raw material prices.  These weaknesses
are partially offset by Ganesh's established position in the road
construction segment in Rajasthan, and its comfortable capital
structure and debt protection measures.

Outlook: Stable

CRISIL believes that Ganesh's scale of operations will remain
small, but the firm will continue to benefit from its established
market position in Rajasthan.  The outlook may be revised to
'Positive' in case of a significant increase in the firm's scale
of operations and net worth.  Conversely, the outlook may be
revised to 'Negative' if the firm reports lower-than-expected cash
accruals, or in case of significant withdrawals of capital by the
partners, leading to deterioration in the firm's financial risk
profile.

                      About Ganesh Builders

Set up in 1998 as a partnership firm, Ganesh is a Class AA civil
contractor; it undertakes projects involving road construction and
road resurfacing in Rajasthan.  Its clients include state and
central government organisations such as Public Works Departments,
Rural Road Development Authority, the Ministry of Road and
Transport Corporation, and the Border Roads Organisation.

Ganesh reported a profit before tax (PBT) of INR24.3 million on
net sales of INR483.2 million for 2008-09 (refers to financial
year, April 1 to March 31), against a PBT of INR24.3 million on
net sales of INR481.6 million for 2007-08.


GANGADHAR DEVELOPERS: CRISIL Puts Junk Ratings on INR401MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of
Gangadhar Developers Pvt Ltd.

   Facilities                           Ratings
   ----------                           -------
   INR401 Million Term Loan             D (Assigned)
   INR99 Million Proposed Long Term     D (Assigned)
                 Bank Loan Facility

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of GDPL and Tirupati Plaza Pvt Ltd,
together referred to as the Begraj Group. GDPL holds a 67.8% stake
in TPPL, and extends advances to the subsidiary.

GDPL, incorporated in 1997 by Mr. Begraj Agarwal, is in the
business of construction of commercial complexes, malls, and
residential units. The company operates mainly in Siliguri and
Sikkim. TPPL is in commercial and residential real estate.  Both
the companies also execute construction work on contract basis

For 2008-09 (refers to financial year, April 1 to March 31),
Begraj Group reported a profit after tax (PAT) of INR55 million on
net sales of INR282.3 million, against a PAT of INR1.9 million on
net sales of INR204.6 million for 2007-08.


GEO SEAFOODS: CRISIL Assigns 'BB+' Rating on INR5.2 Mil. LT Loan
----------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4+' to Geo
Seafoods' bank facilities.

   Facilities                                Ratings
   ----------                                -------
   INR5.20 Million Long Term Loan            BB+/Stable (Assigned)
   INR130.00 Million Export Packing Credit   P4+ (Assigned)
   INR100.00 Million Post Shipment Credit    P4+ (Assigned)
   INR20.00 Million Letter of Credit/Bank    P4+ (Assigned)
                              Guarantee*
   *Fully interchangeable between Letter of Credit & Bank
    Guarantee.

The ratings reflect Geo's geographical concentration in revenue
profile, small scale of operations, and its exposure to risks
inherent in the sea-food-export industry.  These rating weaknesses
are partially offset by Geo's moderate financial risk profile, and
its promoters' industry experience.

Outlook: Stable

CRISIL believes that Geo will continue to benefit from its
management's experience, and will maintain its moderate operating
efficiency, over the medium term.  The outlook may be revised to
'Positive' if the firm scales up its operations, while
diversifying its revenue profile, thereby strengthening its credit
risk profile.  Conversely, the outlook may be revised to
'Negative' if the firm undertakes a large, debt-funded capital
expenditure programme, or if its revenues and accruals decline,
resulting in deterioration in its financial risk profile.

                        About Geo Seafoods

Set up as a partnership firm in 1968, Geo is managed by Mr. K G
Lawrence and his sons -- Mr. Pradeesh Lawrence and Mr. Vivek
Lawrence.  The firm procures from auctions, sea food -- shrimps,
fish, squid and cuttle fish -- and processes and exports it to
European Union countries, Japan, Africa, the US, and the Middle
East.  It has capacity to process 25,200 tonnes of sea food per
annum.

Geo reported a profit after tax (PAT) of INR25 million on net
sales of INR622 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR11 million on net sales
of INR538 million for 2007-08.


GREEN AGRO: CRISIL Assigns 'B' Ratings on Various Bank Facilities
-----------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to Green Agro Pack
Pvt Ltd's bank facilities.

   Facilities                                 Ratings
   ----------                                 -------
   INR2.90 Million Long Term Loan             B/Stable (Assigned)
   INR39.90 Million Proposed Long             B/Stable (Assigned)
          Term Bank Loan Facility
   INR11.50 Million Agricultural Overdraft    B/Stable (Assigned)
   INR35.50 Million Packing Credit            P4 (Assigned)
   INR53.00 Million Bill Purchase ?           P4 (Assigned)
              Discounting Facility
   INR10.00 Million DPN Loan                  P4 (Assigned)
   INR7.00 Million Letter of Credit and       P4 (Assigned)
               Bank Guarantee

The ratings reflect GAPPL's weak financial risk profile marked by
high gearing and weak debt protection measures, large working
capital requirements, and exposure to risks inherent in
agriculture-based businesses.  These rating weaknesses are
partially offset by GAPPL's strong track record in the gherkin
export market.

Outlook: Stable

CRISIL believes that GAPPL will continue to benefit from its
improving cash accruals and margins over the medium term. The
outlook may be revised to 'Positive' if the company's scale of
operations increases, and its capital structure and debt
protection measures improve significantly.  Conversely, the
outlook may be revised to 'Negative' if GAPPL's financial risk
profile deteriorates, most likely because of fresh, debt-funded
capital expenditure, sharp decline in sales and margins, or delays
in receivables.

                         About Green Agro

GAPPL was incorporated in 1994 by Mr. B M Devaiah and his friends
in Bengaluru. The company processes and exports gherkins.  Its
processing plant in Davangere (Karnataka) has capacity to process
12,000 tonnes of gherkins per annum.

GAPPL reported a profit after tax (PAT) of INR17.9 million on net
sales of INR275.8 million for 2008-09 (refers to financial year,
April 1 to March 31), against a net loss of INR5.8 million on net
sales of INR126.6 million for 2007-08.


JALNIDHI BITUMEN: CRISIL Rates INR70 Mil. Cash Credit at 'BB-'
--------------------------------------------------------------
CRISIL has assigned its ratings of 'BB-/Stable/P4+' to the bank
facilities of Jalnidhi Bitumen Specialities Pvt Ltd.

   Facilities                           Ratings
   ----------                           -------
   INR70 Million Cash Credit            BB-/Stable (Assigned)
   INR2 Million Bank Guarantee          P4+ (Assigned)
   INR38 Million Letter of Credit       P4+ (Assigned)

The ratings reflect the working-capital-intensive nature and small
scale of Jalnidhi's operations in the bitumen products industry.
These weaknesses are, however, mitigated by the benefits that
Jalnidhi derives from the experience of its promoters in the
business.

Outlook: Stable

CRISIL expects Jalnidhi to maintain a comfortable business risk
profile over the medium term, backed by stable demand for its
products.  The outlook may be revised to 'Positive' if Jalnidhi
strengthens its financial risk profile considerably, backed by
scale-up in operations, and improved margins and accruals; or to
'Negative' if Jalnidhi takes on substantial debt to fund capital
expenditure, or if its debt protection measures and margins
deteriorate.

                      About Jalnidhi Bitumen

Set up as a private limited company in 1994 by Mr Sanjay Kumar
Dalmia, Jalnidhi manufactures bitumen products at its facilities
at Howrah (West Bengal).  Its products include blow and polymer-
modified bitumen, bitumen emulsions, crumb rubber, and roofing
felts.  The products are used mostly in road constructions,
bridges, flyovers, airport runways, tunnels and dams.

Jalnidhi reported a profit after tax (PAT) of INR2.2 million on
net sales of INR351 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR2.9 million on net
sales of INR255 million for 2007-08.


MANGALA ISPAT: CRISIL Puts 'BB+' Ratings on INR67.6 Mil. Term Loan
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4+' to the bank
facilities of Mangala Ispat (Jaipur) Ltd.

   Facilities                             Ratings
   ----------                             -------
   INR67.6 Million Rupee Term Loan        BB+/Stable (Assigned)
   INR64.0 Million Cash Credit            BB+/Stable (Assigned)
   INR5.0 Million Letter of Credit        P4+ (Assigned)

The ratings reflect MIJL's exposure to risks relating to modest
scale of operations and cyclicality in the steel business,
moderate operating efficiencies.  These rating weaknesses are
partially mitigated by the benefits that MIJL derives from its
comfortable financial risk profile, established brand, and
satisfactory receivables management.

Outlook: Stable

CRISIL believes that MIJL will maintain a comfortable financial
risk profile, and benefit from an established presence in the
thermo-mechanically treated (TMT) bar segment in Rajasthan over
the medium term.  The outlook may be revised to 'Negative' if sub-
optimal capacity utilization leads to deterioration in
profitability, or if MIJL undertakes a significant debt-funded
capex programme.  Conversely, the outlook may be revised to
'Positive' if MIJL's business risk profile improves, supported by
value-addition in products, and sustained improvement in
profitability.

                       About Mangala Ispat

Set up by the Agarwal family in 1995, MIJL produces TMT bars.  The
company commenced operations in the steel industry by setting up
an automatic rolling mill in 1995 in Rajasthan.  The company has
manufacturing units in Jaipur and Bagru (Rajasthan) and has a
rolling capacity of 103,000 tonnes per annum (tpa) and ingots
capacity of 25,000 tpa.  The promoters also have businesses in
ingot production and power generation through group companies,
Mangala Products Pvt Ltd (MPPL) and Mangala Power Projects (MPP, a
partnership firm).  MIJL reported a profit after tax (PAT) of
INR7.93 million on net sales of INR1.15 billion for 2008-09
(refers to financial year, April 1 to March 31), as against a PAT
of INR6.60 million on net sales of INR893.05 million for 2007-08.


MOHAN GEMS: Low Operating Margins Cue CRISIL 'B+' Ratings
---------------------------------------------------------
CRISIL has assigned its rating of 'B+/Stable' to Mohan Gems and
Jewels Pvt Ltd's bank facilities.

   Facilities                           Ratings
   ----------                           -------
   INR280.0 Million Cash Credit         B+/Stable (Assigned)
   INR20.0 Million Long Term Loan       B+/Stable (Assigned)

The rating reflects MGJ's weak financial risk profile, and low
operating margins.  These rating weaknesses are partially offset
by the benefits that MGJ derives from healthy growth in revenues,
efficient working capital management, and promoters' experience in
the gold jewellery business.

Outlook: Stable

CRISIL believes that MGJ will maintain a stable business risk
profile supported by the promoters' industry experience, and
healthy growth in revenues from both the retail and wholesale
segments.  The outlook may be revised to 'Positive' if MGJ
generates high net cash accruals, improving its financial risk
profile.  Conversely, the outlook may be revised to 'Negative' if
MGJ's inventory position deteriorates resulting in strained
liquidity, or if gold prices fall steeply, impacting the company's
overall profitability, or if its gearing levels or inventory
levels increase without corresponding sales growth.

                         About Mohan Gems

Set up in 2006 by Mr. Mukesh Soni and Mr. Murari Lal Soni, MGJ
manufactures gold jewellery ranging from 18 carats (cts) to 24
cts.  The company specializes in the manufacture of 22 cts, hand-
made antique jewellery.

MGJ reported a profit after tax (PAT) of INR3.4 million on net
sales of INR1062.7 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR2 million on net
sales of INR660 million for 2007-08.


OM BIOMEDIC: Delay in Loan Repayment Prompts CRISIL Junk Ratings
----------------------------------------------------------------
CRISIL has assigned its ratings of 'D/P5' to Om Biomedic Private
Limited's bank facilities.

   Facilities                             Ratings
   ----------                             -------
   INR45.0 Million Cash Credit Limit      D (Assigned)
   INR50.0 Million Term Loan              D (Assigned)
   INR5.0 Million Letter of Credit        P5 (Assigned)

The ratings reflect delay by Om Biomedic in meeting its term loan
obligations; the delay was caused by weak liquidity.

Om Biomedic, incorporated in 2005, is engaged in manufacture of
betalactam and non-betalactam bulk drugs in the form of tablets,
capsules, liquid orals, dry syrups, ointments, drops and dry
injections.  Its unit is located in Haridwar, Uttaranchal and
started commercial production in March 2008.  The company is
promoted by Mr. Sumit Uthra, Mr. Inder Sain Bhatia, Mr. Rohit
Bhatia, and Mr. Mahesh Bhatia.  The company sells its products to
pharmaceutical manufacturers that sell these under their brand
names.  Om Biomedic's manufacturing plant has the Good
Manufacturing Practices (GMP) certification and the company has
applied for World Health Organization (WHO) certification and the
ISO 9000 certification.

Om Biomedic reported a profit after tax (PAT) of INR9.3 million on
net sales of INR202.5 million for 2008-09 (refers to financial
year, April 1 to March 31).


PALAK JEWELLERS: CRISIL Rates INR50 Mil. Cash Credit at 'BB+'
-------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to Palak
Jewellers Pvt Ltd's bank facilities.

   Facilities                           Ratings
   ----------                           -------
   INR50.0 Million Cash Credit          BB+/Stable (Assigned)
   INR70.0 Million Bank Guarantee       P4+(Assigned)

The ratings reflect Palak's moderate financial risk profile, and
exposure to intense competition.  These rating weaknesses are
partially offset by Palak's proven and efficient risk management
policies, and its established relationship with key supplier
Emerald Jewel Industry India Pvt Ltd (Emerald).

Outlook: Stable

CRISIL believes that Palak will continue to benefit from its
established relationships with customers and suppliers.  The
outlook may be revised to 'Positive' if Palak increases its scale
of operations and revenues on sustainable basis, while maintaining
its current debt protection indicators.  Conversely, the outlook
may be revised to 'Negative' if the company's accruals decline
steeply, or debt protection indicators deteriorate.

Set up in 2006 by Mr. Nilesh Daga and his brother Mr. Shailesh
Daga, Palak is a wholesale trader of gold ornaments and leading
distributor for the Coimbatore-based Emerald.  Palak procures
Bureau of Indian Standards-hallmarked gold ornaments from Emerald,
and caters to clients across India, including Tribhuvandas Bhimji
Zaveri, Rajawat Jewellers, and Swarn Plaza. Palak largely sells
22-carat gold ornaments and operates through its office in Mumbai.

Palak reported a profit after tax (PAT) of INR7.2 million on net
sales of INR476.7 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR3 million on net sales
of INR373 million for 2007-08.


PARAS STEEL: CRISIL Assigns 'BB' Rating on Cash Credit Limit
------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank
facilities of Paras Steel Corporation, which is part of the Shah
group.

   Facilities                             Ratings
   ----------                             -------
   INR35.0 Million Cash Credit Limit      BB/Stable (Assigned)
   INR200.0 Million Letter of Credit      P4+ (Assigned)

The ratings reflect the Shah group's stretched financial risk
profile, and exposure to risks relating to cyclicality in the
shipping industry.  Industry is also susceptible to changes in
government regulations specifically with respect to environmental
concerns.  These rating weaknesses are partially offset by the
benefits that the Shah group derives from its relatively superior
market position due to ownership of three ship breaking yards, and
the healthy growth prospects of the ship-breaking industry over
the medium term.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Paras, Dalkan Ship Breaking Ltd
(Dalkan), and Vijaykumar and Company (VKC).  This is because the
three entities, collectively referred to as the Shah group, are
under a common management, and have operational linkages, and
fungible funds.

Outlook: Stable

CRISIL believes that the Shah Group will maintain a stable credit
risk profile over the medium term, on the back of healthy near-
term growth prospects in the ship-breaking industry, capitalizing
on promoters' industry experience. The outlook may be revised to
'Positive' if anticipated growth in top line coincides with
healthy profitability. Conversely, the outlook may be revised to
'Negative' if steel scrap prices fall sharply, resulting in the
group being unable to recover the cost of ship purchase, and
consequently in decline in margins.

                         About the Group

Set up in 1994, VKC is a proprietorship concern founded by Mr.
Chimanlal Mavjibhai Shah and his three brothers, Mr. Bhupatrai,
Mr. Jaysukhlal, and Mr. Vinaychand.  The family has been in the
business of ship breaking since 1985 through a partnership
concern, Amar Ship Breaking Corporation (ASBC).  In 1994, the
family exited from ASBC and set up VKC. VKC owns a 50 square
meters (sq. mtrs.) plot at Alang ship breaking yard in Bhavnagar,
Gujarat.

The incorporation of Vijaykumar was followed by setting up of
Dalkan in 1994 and Paras in 1998.  Mr. Jayasukhlal Mavjibhai Shah,
younger brother of Mr. Chimanlal M. Shah, is the proprietor of
Paras while the board members of Dalkan, a closely held limited
company, are all second generation entrepreneurs of the Shah
family.  Paras operates a 35 sq. mtrs. plot and Dalkan has a 50
sq. mtrs. plot at Alang.

Paras reported a profit after tax (PAT) of INR0.8 million on net
sales of INR312 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a net loss of INR0.9 million in
2007-08.


RADHA SMELTERS: CRISIL Assigns 'BB-' Ratings on Various Bank Debts
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB-/Stable/P4+' to the bank
facilities of Radha Smelters Ltd's.

   Facilities                              Ratings
   ----------                              -------
   INR63.00 Million Long Term Loan         BB-/Stable (Assigned)
   INR150.00 Million Cash Credit           BB-/Stable (Assigned)
   INR80.00 Million Letter of Credit       P4+ (Assigned)
   INR10.00 Million Bank Guarantee Limit   P4+ (Assigned)

The ratings reflect Radha Smelters' below-average financial risk
profile constrained by large capital expenditure (capex)
borrowings, susceptibility to volatility in raw material prices,
and exposure to intense competition in the steel industry.  These
rating weaknesses are partially offset by the benefits the company
derives from its promoters' experience in the steel industry, and
by the company's partially integrated operations.

Outlook: Stable

CRISIL believes that Radha Smelters will maintain its credit risk
profile over the medium term on the back of its growing share in
Andhra Pradesh thermo-mechanically treated (TMT) bars market. The
outlook may be revised to 'Positive' if the company's financial
risk profile improves substantially, backed by improved gearing
and margins. Conversely, the outlook may be revised to 'Negative',
if Radha Smelters' capacity utilization or realizations reduce,
affecting the company's margins and cash flows, or if the company
contracts large quantum of debt for funding its capex or
acquisitions.

                        About Radha Smelters

Radha Smelters commenced operations in 2007-08 (refers to
financial year, April 1 to March 31), by acquiring the operations
of its promoter's firm Radha Steels.  Set up by Mr. Sunil Sheraf,
Radha Steels manufactured mild-steel sections, and had an angle
manufacturing capacity of 9600 tonnes per annum (tpa).  Radha
Smelters set up a 36,000 tpa mild-steel ingot manufacturing unit
in 2008-09, and commenced production of TMT bars in August 2009,
with a capacity of 72,000 tpa.  Radha Smelters is currently
setting up another 36,000 tpa mild-steel ingot manufacturing unit,
which will increase its total ingot capacity to 72,000 tpa. The
plant is expected to commence operations by March 2010.

Radha Smelters reported a profit after tax (PAT) of INR11.0
million on net sales of INR797.1 million for 2008-09, against a
PAT of INR1.9 million on net sales of INR117.1 million for
2007-08.


RAGHU PRIME: Delay in Term Loan Payment Cues CRISIL Junk Ratings
----------------------------------------------------------------
CRISIL has assigned its rating of 'D' to Raghu Prime Metal Ltd's
(RPM's) bank facilities.  The rating reflects delay by RPM in
meeting its term loan obligations; the delay was caused by weak
liquidity.

   Facilities                             Ratings
   ----------                             -------
   INR135.0 Million Cash Credit           D (Assigned)
   INR50.0 Million Term Loan              D (Assigned)

Incorporated in 2001 by Mr. Manoj Sachdeva, Mr. Sanjeev Arora,
Mr. Daljeet Singh, and Mr. Rakesh Gupta, RPM manufactures mild
steel (MS) ingots and rolled products including flats and rounds,
which find application in the construction, automobile and steel
furniture industry.  Its unit is located in Ghaziabad (Uttar
Pradesh), and has an induction furnace with a capacity of 29,200
tonnes per annum (tpa) and a rolling mill with a capacity of
30,000 tpa.  The company caters to the domestic market.

RPM reported a profit after tax (PAT) of INR3.5 million on net
sales of INR732.6 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR5.4 million on net sales
of INR612.7 million for 2007-08.


SANJOO PRINTS: CRISIL Assigns Junk Ratings on Various Bank Debts
----------------------------------------------------------------
CRISIL has assigned its ratings of 'D/P5' to Sanjoo Prints Pvt
Ltd's bank facilities.  The ratings reflect delay by SPPL in
repayment of term loan obligations, owing to weak liquidity.

   Facilities                             Ratings
   ----------                             -------
   INR60.0 Million Cash Credit Limit      D (Assigned)
   INR54.7 Million Term Loan              D (Assigned)
   INR3.0 Million Bank Guarantee          P5 (Assigned)

Incorporated in 1993, Sanjoo Prints Pvt Ltd undertakes job work,
dyeing and printing of grey polyester fabrics.  It has dyeing and
printing capacity of 150,000 metres per day and grey fabric
manufacturing capacity of 120 tonnes, which commenced operations
in August 2008.  The Company increased its dyeing and printing
capacity by 50,000 metres per day in 2009-10 (refers to financial
year, April 1 to March 31), at a capital expenditure of around
INR8 million. Until 2007-08, the company also traded in grey
fabrics, but has discontinued this business from 2008-09,
following the commencement of its own grey fabric manufacturing
unit.

SPPL reported a profit after tax (PAT) of INR1.6 million on net
sales of INR212.8 million for 2008-09 as against a PAT of INR0.3
million on net sales of INR62.4 million for 2007-08.


SRI KANDHAN: CRISIL Places 'P4' Ratings on Various Bank Facilities
------------------------------------------------------------------
CRISIL has assigned its rating of 'P4' to Sri Kandhan Rugs Exports
Pvt Ltd's bank facilities.

   Facilities                                   Ratings
   ----------                                   -------
   INR50.00 Million Export Packing Credit       P4 (Assigned)
   INR15.00 Million Foreign Bill Discounting    P4 (Assigned)
   INR13.00 Million SME Care (Standby Line      P4 (Assigned)
                              of Credit)

The rating reflects SKRE's below-average financial risk profile,
concentration in revenue profile, small scale of operations, and
large working capital requirements.  These weaknesses are
partially offset by the benefits the company derives from the
industry experience of its management.

Set up in 1966 in Bhavani, Tamil Nadu, by Mr. G Sadaiyaraj, SKRE
was converted into a company in 1995.  The company manufactures
handloom floor mats, tablecloths, napkins, bed linen, and
curtains.  SKRE has dyeing capacities of 600 tonnes per annum, but
out sources weaving operations. Around 90 per cent of its revenues
are from exports to the US, Europe, Germany, and Malaysia.

SKRE reported a profit after tax (PAT) of INR3 million on net
sales of INR53 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR5 million on net sales
of INR203 million for 2007-08.


SHRI KSHETRA: CRISIL Rates INR3.80 Bil. Long Term Loan at 'BB+'
---------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to the existing and
proposed long term bank loan facilities of Shri Kshetra
Dharmasthala Rural Development Project.

   Facilities                            Ratings
   ----------                            -------
   INR3800 Million Long Term Bank        BB+/Stable (Assigned)
                   Loan Facility
   INR1200 Million Proposed Long         BB+/Stable (Assigned)
         Term Bank Loan Facility

The rating reflects SKDRDP's modest financial risk profile, the
geographical concentration in its operations, and its exposure to
inherent risks in the microfinance business.  These rating
weaknesses are partially offset by the benefits the trust derives
from its strong institutional linkage with Shree Manjunatheswara
Temple, Dharmasthala, and its diverse resource profile.

Outlook: Stable

CRISIL believes that SKDRDP will continue to benefit from its
strong institutional linkage with Shree Manjunatheswara Temple and
diverse funding profile, over the medium term.  The outlook may be
revised to 'Positive' if SKDRDP improves its financial risk
profile significantly, while maintaining its asset quality.
Conversely, the outlook may be revised to 'Negative' if SKDRDP's
asset quality and earnings deteriorate.

                          About the Trust

Set up in 1982 by Dr. Veerendra Heggade, SKDRDP is a charitable
trust engaged in rural development.  Dr. Heggade is a trustee of
Shri Kshetra Dharmasthala, a famous religious shrine of Lord
Manjunatheshwara in Karnataka.  The trust caters to marginal
farmers, landless laborers, and women, to help them undertake
livelihood-related activities.  Currently, SKDRDP is executing 14
projects, involving development of barren land, agricultural
extension, housing, health and hygiene, women's empowerment,
primary education, and promotion of non-conventional energy
sources, among other projects.  The expenses of various
developmental activities carried out by SKDRDP are met through
donor funds from Dr. Heggade.

SKDRDP entered the microfinance business in 1996.  It follows the
self-help-group (SHG)-based lending approach, where group members
are collectively responsible for the repayment of credit extended
to individual members of their group.  SKDRDP's affiliation with
Shree Manjunatheswara Temple at Dharmasthala has helped the entity
build its portfolio over the past few years without any adverse
effect on its asset quality.  As on September 30, 2009, SKDRDP had
34 branches, covering 5570 villages in nine districts in
Karnataka, including Udipi, Dakshina Kannada, Shimoga,
Chickmagalur, and Uttara Kannada. It caters to around 1.2 million
members from 0.11 million SHGs and had loans outstanding of INR5.2
billion as on September 30, 2009.

SKDRDP earned a net surplus of INR104 million on total income of
INR991 million for 2008-09 (refers to financial year, April 1 to
March 31), against a net surplus of INR120 million on total income
of INR670 million for 2007-08.


TREND SETTERS: Default in Loan Repayment Cues CRISIL Junk Ratings
-----------------------------------------------------------------
CRISIL has assigned its ratings of 'D/P5' to the bank facilities
of Trend Setters International.  The ratings reflect default by
TSI in its repayment of term loan obligations, owing to weak
liquidity.

   Facilities                                Ratings
   ----------                                -------
   INR33.8 Million Term Loan                 D (Assigned)
   INR60.0 Million Bill Discounting          P5 (Assigned)
   INR30.0 Million Letter of Credit          P5 (Assigned)
   INR2.5 Million Bank Guarantee             P5 (Assigned)
   INR160.0 Million Export Packing Credit    P5 (Assigned)

Set up in 1981 as a partnership firm, TSI manufactures readymade
garments for women and children, and exports these garments to USA
and Europe.  The firm's facility at Manesar (Haryana) has capacity
to manufacture around 2 million pieces of garments per annum.  TSI
reported a profit after tax (PAT) of INR17.5 million on net sales
of INR502 million for 2007-08 (refers to financial year, April 1
to March 31), as against a PAT of INR20.5 million on net sales of
INR544 million for 2006-07.


VIJAYKUMAR & COMPANY: CRISIL Rates INR35MM Cash Credit at 'BB'
--------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank
facilities of Vijaykumar & Company, which is part of the Shah
group.

   Facilities                             Ratings
   ----------                             -------
   INR35.0 Million Cash Credit Limit      BB/Stable (Assigned)
   INR200.0 Million Letter of Credit      P4+ (Assigned)

The ratings reflect the Shah group's stretched financial risk
profile, and exposure to risks relating to cyclicality in the
shipping industry.  Industry is also susceptible to changes in
government regulations specifically with respect to environmental
concerns.  These rating weaknesses are partially offset by the
benefits that the Shah group derives from its relatively superior
market position due to ownership of three ship breaking yards, and
the healthy growth prospects of the ship-breaking industry over
the medium term.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of VKC, Paras Steel Corporation (Paras),
and Dalkan Ship Breaking Ltd.  This is because the three entities,
collectively referred to as the Shah group, are under a common
management, and have operational linkages, and fungible funds.

Outlook: Stable

CRISIL believes that the Shah Group will maintain a stable credit
risk profile over the medium term, on the back of healthy near-
term growth prospects in the ship-breaking industry, capitalizing
on promoters' industry experience.  The outlook may be revised to
'Positive' if anticipated growth in top line coincides with
healthy profitability.  Conversely, the outlook may be revised to
'Negative' if steel scrap prices fall sharply, resulting in the
group being unable to recover the cost of ship purchase, and
consequently in decline in margins.

                         About the Group

Set up in 1994, VKC is a proprietorship concern founded by Mr.
Chimanlal Mavjibhai Shah and his three brothers, Mr. Bhupatrai,
Mr. Jaysukhlal, and Mr. Vinaychand.  The family has been in the
business of ship breaking since 1985 through a partnership
concern, Amar Ship Breaking Corporation.  In 1994, the family
exited from ASBC and set up VKC. VKC owns a 50 square meters (sq.
mtrs.) plot at Alang ship breaking yard in Bhavnagar, Gujarat.

The incorporation of Vijaykumar was followed by setting up of
Dalkan in 1994 and Paras in 1998.  Mr. Jayasukhlal Mavjibhai Shah,
younger brother of Mr. Chimanlal M. Shah, is the proprietor of
Paras while the board members of Dalkan, a closely held limited
company, are all second generation entrepreneurs of the Shah
family.  Paras operates a 35 sq. mtrs. plot and Dalkan has a 50
sq. mtrs. plot at Alang.

VKC reported a profit after tax (PAT) of INR0.9 million on net
sales of INR460 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.4 million on net
sales of INR0.9 million for 2007-08.


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


GARUDA INDONESIA: Bank Mandiri Acquires 10% Garuda Stake
--------------------------------------------------------
PT Bank Mandiri has acquired 10.6% of the shares in Indonesia's
flag carrier Garuda Indonesia under a debt-to-share conversion
agreement, according to Antara News.

Antara, citing the newspaper Investor Daily, says the deal
converting into share 95% or IDR967 billion (US$102.50 million) of
the Garuda's debt in mandatory convertible bonds (MCB) was signed
on December 30.

Company source told the paper that the remaining IDR50 billion of
the principal is to be paid in cash to the state bank, the report
relates.  Garuda, according to Antara, has a total debt of IDR3.7
trillion to Bank Mandiri.

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 1, 2009, Jakarta Globe said Bank Mandiri will take an 11%
stake in PT Garuda Indonesia under a debt-to-equity conversion
agreed to by all parties involved, including the central bank.
Bank Mandiri will convert US$100 million of the state-owned
carrier's bond debt into equity.  The deal could be concluded
before Garuda's planned initial public offering, scheduled for the
middle of next year.

The TCR-AP reported on Aug. 13, 2009, that Garuda Indonesia
expects to raise as much as US$400 million from its much-awaited
Initial Public Offering in June, next year.  The expected launch,
however, is based on a positive outlook of the market condition,
vis-a-vis investor sentiment.

According to analysts, market response to the IPO will largely
depend on the company's ability to settle its US$670 million in
debts.  Garuda's total debts as of the end of last December
reached US$670 million ? US$450 million to the European Credit
Agency (ECA), US$100 million to Bank Mandiri, and the rest to
other creditors.

On May 29, 2009, the TCR-AP reported that Garuda Indonesia reached
a debt restructuring agreement with several of its creditors to
pay its debts.  Restructuring the airline's debt into a manageable
package is a major prerequisite for holding its initial public
offering.

                      About Garuda Indonesia

Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations.  Under its
Citilink brand, it serves 10 other domestic routes.  Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.


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


AIFUL CORP: Resumes Television Advertising After Debt Plan OK'd
---------------------------------------------------------------
Takahiko Hyuga at Bloomberg News reports that Aiful Corp. on
Monday resumed television advertising after reaching an agreement
with creditors in December that helped it avoid bankruptcy.

Hirofumi Haruguchi, a Tokyo-based company spokesman, told
Bloomberg that Aiful advertisements will be broadcasted in 14
regions, including Hokkaido, Hiroshima and Nagano, after being
halted more than a year ago.

As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 29, 2009, Dow Jones Newswires said all of Aiful's creditor
financial institutions have agreed to the company's debt
rescheduling plan during an out-of court debt mediation, allowing
Aiful to delay loan repayments of JPY280 billion, or about US$3.06
billion.

Dow Jones said that had all 65 creditors not voted in favor of the
plan, the consumer finance company might have had to seek debt
rescheduling through the courts, ending up in legal liquidation.

Under the restructuring plan, Dow Jones noted, the lender has
reduced the number of its branches to 675 from 915 and has cut
nearly the half its group workforce to 2,200.

Aiful said in September that it has begun preliminary
consultations with the Japanese Association of Turnaround
Professionals to apply for commencement of consensual business
revitalization alternative dispute resolution procedures.  The
JATP has provisionally accepted the company's preliminary
application to utilize the business revitalization procedures.
The lender asked its financial institutions for the maintenance of
its debt balance for a certain period and then the debt
rescheduling.

                           About Aiful

Aiful Corporation (TYO:8515) -- http://www.ir-aiful.com/--  is
a Japan-based financial service provider.  The company is
engaged in the provision of small-lot uncollateralized loan for
individual consumers, business loan for individuals, as well as
mortgage collateral and credit card services, in addition to the
collection and management of debts.  Other business activities
the Company is involved in include the development, investment
and nurture of venture companies, as well as the leasing of real
estates.  Headquartered in Kyoto, the Company has 29 subsidiaries
and two associated companies.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 29, 2009, Moody's Investors Service downgraded to Caa1
from B3 the long-term senior unsecured debt rating and unsecured
medium-term note rating of Aiful Corporation.  At the same time,
Moody's continues to review the ratings for possible further
downgrade.  In addition, Moody's says Aiful's issuer rating
remains at Caa1, but continues to review it for possible further
downgrade.

The TCR-AP reported on Dec. 29, 2009, that Standard & Poor's
Ratings Services revised its long-term and short-term counterparty
ratings on Aiful Corp. to 'CCC-' and 'C', respectively, from 'SD',
and placed the long-term counterparty rating on CreditWatch with
positive implications.  The rating action follows an agreement by
Aiful's creditors on the rescheduling of debt repayments worth
JPY280 billion under alternative dispute resolution procedures.
Repayments will be suspended until September 2010.  Standard &
Poor's considers that the creditors' agreement on the rescheduling
resolves the selective default status on Aiful.  The revised
ratings also reflect S&P's review of the probability of debt
repayment under the new repayment schedule.

At the same time, S&P lowered its senior unsecured rating on Aiful
by one notch to 'CCC-' from 'CCC' and kept the rating on
CreditWatch with developing implications.  Although the agreement
by creditors increases the overall probability of repayments,
Standard & Poor's sees a likelihood of Aiful undertaking bond
repurchases.  According to S&P's rating criteria, such repurchases
may be regarded as distressed debt restructuring by an issuer in
difficulty, and may constitute a default.  As such, S&P may lower
ratings on repurchased bonds on a issue-by-issue basis.

The 'CCC-' counterparty rating reflects Standard & Poor's view
that Aiful's business prospects will remain difficult even after
the launch of the restructuring plan.  The company's asset size
and interest income are likely to decrease with the full
implementation of the amended money lending business law in 2010
and repayments of overcharged interest will remain a burden.
While the company's new financing is likely to be limited, Aiful
faces the challenge of balancing its cash flows while reducing its
asset size by about half.  In addition, the company's debt-to-
capital ratio rose to 7.2x as of the end of September 2009 from
2.3x six months ago, due to net losses of JPY282.3 billion posted
in the first half fiscal 2009 (ended Sept. 30, 2009).

On the positive side, the revision of the repayment schedule
mitigates the company's near-term repayment burden and increased
provisions will improve its capacity to refund overcharged
interest.  In addition, business restructuring is expected to
reduce operating expenses materially, which is likely to mitigate
pressure on cash management.  Standard & Poor's will review the
counterparty and senior unsecured ratings further after reviewing
the prospects of Aiful's revitalization.


HITACHI LTD: To Boost Sales to More Than 50% Thru Expansion
-----------------------------------------------------------
Hitachi Ltd will aim to expand its overseas operations to account
for more than 50% of its total sales "within several years," up
from just over 40% at present, Kyodo News reports citing Hitachi
Chairman and President Takashi Kawamura.

Mr. Kawamura said during an interview with Kyodo News that to
achieve the target, Hitachi will aim to:

   -- capitalize on growing demand in China, India and other
      emerging economies;

   -- seek orders for upgrading infrastructures, such as railway
      systems, in Europe;

   -- will engage in mergers and acquisitions to boost its
      presence in the fields of railway systems and information
      technology overseas; and

   -- will focus on the operation of "mother plants" that will
      develop cutting-edge technologies for medical treatment
      and environmental protection and provide them to overseas
      outlets.

Hitachi Ltd. (NYSE:HIT) -- http://www.hitachi.co.jp/-- develops a
diversified product mix ranging from electricity generation
systems to consumer products and electronic devices.  The Company
has seven segments: Information & Telecommunication Systems,
Electronic Devices, Power & Industrial Systems, Digital Media &
Consumer Products, High Functional Materials & Components,
Logistics, Services & Others and financial services.  In April
2008, Hitachi acquired a majority ownership interest in M-Tech
Information Technology, Inc.  In April 2008, Hitachi, Ltd.
established a wholly owned subsidiary, Hitachi Information &
Telecommunication Systems Global Holding Corporation. In March
2008, Hitachi Consulting, the global consulting company of
Hitachi, acquired JMN Associates.  On March 16, 2009, the Company
made Hitachi Koki Co., Ltd. a subsidiary via share purchase.  On
March 18, 2009, the Company made Hitachi Kokusai Electronic Inc. a
subsidiary via share purchase.

                           *     *     *

For the 2008 fiscal year ended March 31, 2009, Hitachi incurred a
third annual loss of JPY788 billion.  For the 2007 fiscal year
ended March 31, 2008, Hitachi posted a net loss of JPY58.12
billion, compared with a net loss of JPY32.79 billion for year
ended March 31, 2007.


HN TRUST: Fitch Affirms Ratings on Senior Beneficial Interests
--------------------------------------------------------------
Fitch Ratings has affirmed HN Trust's senior beneficial interests
and assigned Loss Severity Ratings.

  -- JPY140 million* Class A1 senior BIs affirmed at 'AAA';
     Outlook Stable; Loss Severity Rating assigned at 'LS-5';

  -- JPY60 million* Class A2 senior BIs affirmed at 'BBB'; Outlook
     Stable; Loss Severity Rating assigned at 'LS-5';

  -- JPY20 million* Class A3 senior BIs affirmed at 'BB'; Outlook
     Stable; Loss Severity Rating assigned at 'LS-5';

  -- JPY600 million* Class B1 senior BIs affirmed at 'AAA';
     Outlook Stable; Loss Severity Rating assigned at 'LS-4'; and

  -- JPY447.7 million* Class B2 senior BIs affirmed at 'A';
     Outlook Stable; Loss Severity Rating assigned at 'LS-5'.

  * as of December 29, 2009

The affirmations and Stable Outlooks reflect Fitch's view that the
available credit enhancement is sufficient to support the current
ratings and that the overall transaction performance remains in
line with the agency's expectations.

Based on the updated counterparty criteria published in October
2009, Fitch has reviewed counterparty exposure for the
transaction.  The agency has been advised that the trustee's
account bank was recently changed to an eligible counterparty.
Also, Fitch has analyzed the transaction's exposure to other
account banks, and concluded that these exposures are well
mitigated in the overall transaction structure, taking into
account the materiality of the exposure and the transaction's
performance to date.

The transaction is a resecuritisation of two junior BIs issued
prior to the issuance of the rated senior BIs, and is ultimately
backed by multiple residential mortgage loan pools.  The rated
senior BIs do not bear trust dividend payments and the ratings
address the ultimate payment of initial principal by the final
maturity date.

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 Remains in Talks with JAL on Equity Infusion
----------------------------------------------------------------
Mary Schlangenstein at Bloomberg News reports that AMR Corp.'s
American Airlines said it is still in talks with Japan Airlines on
a possible equity infusion to keep the Asian carrier in the
Oneworld alliance.

Bloomberg notes American Airlines spokesman Charley Wilson said in
an e-mail statement that media reports that Japan Air had decided
on an alliance partner "are inaccurate and misleading."  According
to Bloomberg, Japanese newspaper Yomiuri has reported that Japan
Air decided to join with Delta Air Lines Inc. and the SkyTeam
group of carriers.

"American continues to negotiate with JAL," Bloomberg quoted
Mr. Wilson as saying.  "Many important issues still need to be
considered before a decision is made."

Delta spokeswoman Betsy Talton also told Bloomberg that Delta and
its SkyTeam partners remain in discussions with JAL.

As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 17, 2009, the Wall Street Journal's Mariko Sanchanta and Dow
Jones Newswires' Doug Cameron report AMR may increase a proposed
capital investment in Japan Airlines and draw on financial support
from other members of their Oneworld alliance.

According to the report, Gerard Arpey, chairman and chief
executive of American parent AMR Corp., also offered to make JAL
the airline's "exclusive partner" in the region, as it intensified
efforts to fend off a rival offer from Delta Air Lines Inc.

AMR said earlier in December that it could inject $1.1 billion
into JAL with its partner TPG Inc., the private-equity group, and
support from members of its Oneworld alliance.

According to the report, the pledged support had previously been
in the form of logistical and management help for JAL, but Mr.
Arpey hinted the partners could also provide capital.  "In terms
of investment, it's fair to say that they are open-minded, but a
lot more understanding would have to be done in terms of how the
overall restructuring will come together," he said, the report
says.

The report related that the pace of talks is expected to intensify
after the U.S. and Japan last month agreed to an open-skies
aviation treaty, paving the way for JAL to seek antitrust immunity
with its eventual partner.

The report noted Delta and its partners in the rival SkyTeam
alliance have also said they may revise their proposal to inject
$500 million into JAL and provide a $200 million loan and a $300
million revenue guarantee.  Delta hasn't said whether other
SkyTeam members would inject funds into JAL.  The report also said
Richard Anderson, Delta's CEO, met with Seiji Maehara, Japan's
Minister of Land, Infrastructure, Transport and Tourism, last
month to explain his company's proposal in more detail.

                           *     *     *

At a news conference on December 16 in Tokyo -- held after a
meeting with Mr. Maehara -- Mr. Arpey said, "the total value of
the proposition we have made is far superior than the proposed
alternative, both in terms of commercial benefits and direct
financial investment. . . . [W]e have offered a solution that
would be an important piece of a successful restructuring plan.
It will enhance JAL's opportunity for long-term success while also
injecting a large amount of much-needed capital in the short term.

"[T]he bottom line is that our direct investment offer is worth
more than twice to JAL as any other proposal.  The difference is
even greater when you consider the commercial implications of JAL
exiting a superior global alliance with the strongest U.S. network
for a less desirable global alliance and U.S. network.  We
estimate this would cost JAL hundreds of millions of dollars per
year," according to Mr. Arpey.

The Oneworld alliance includes British Airways, Qantas, Cathay
Pacific, Iberia, LAN, Finnair and Mexicana.

Mr. Arpey also said American's proposal is also achievable and has
the most certain chance of success while creating the least risk
for JAL and its employees and customers, and for the Japanese
public and taxpayers.

Mr. Arpey also told reports a JAL-American Airlines combination
can readily obtain antitrust immunity from the United States
Department of Transportation, which will be worth hundreds of
millions of dollars to JAL in the future.  "We are confident that
this will not be an option for JAL in any other alliance," he
said.

Mr. Arpey explains, "An immunized partnership is critical to JAL's
future, and time is of the essence. With the new Open Skies
agreement in place, All Nippon Airways (ANA) will surely pursue
immunity with United Airlines and Continental Airlines, all
members of the Star Alliance. JAL must act quickly or risk losing
ground as these competitors grow stronger, which could very well
derail its restructuring.

"To suggest that JAL could achieve the benefits we've outlined
with another partner is simply disingenuous, as the recent remarks
of Former U.S. Secretary of Transportation Norm Mineta made very
clear.  The DOT's interest is in preserving and enhancing
competition.  Our proposal does that, and would result in a
landscape of three alliances of roughly equal size battling in the
U.S.-Japan market. That is the most favorable result for
consumers, which are the DOT's highest priority, as well as for
the countries involved and taxpayers.

Mr. Arpey also pointed out American's and JAL's interests are
aligned.  "That is not and never will be the case with the other
potential partner that has suddenly become interested in JAL's
future at a time when JAL is most vulnerable," he cited.

"It is clear that American succeeds when JAL succeeds.
Specifically, we both have an interest in seeing a successful U.S-
Japan Open Skies regime, which will mean more opportunities for
airlines to serve customers between the U.S. and Japan. It will
also pave the way for a closer relationship between American and
JAL through antitrust immunity, creating revenue and growth
opportunities for our respective companies.

"At the same time, United, Continental and ANA are expected to
become stronger through a similar partnership. You can clearly see
why that outcome -- tougher competition between the U.S. and Japan
-- would not be the desired outcome for some.  It would be
unfortunate if the ground breaking Open Skies agreement forged
last week by our two countries were jeopardized by a tie-up that
presents an uncompetitive dynamic across the Pacific.

"To better understand why American and JAL are the most natural
partners, consider that our networks complement each other -- they
don't overlap.  As a result, we each have a strong incentive to
push as much traffic as possible onto the other's network. In
fact, JAL is so central to our partnership that we have discussed
with JAL a proposal that would guarantee it exclusivity as our
sole partner in this region, assuring a strong JAL and Tokyo hub
for the future.

"That is very different from the situation JAL will face if it
leaves oneworld.  For example, American doesn't have a hub in
Japan or a hub in Korea that would compete for JAL's customers,
siphoning important revenue and traffic from its network.  Indeed,
the competing offer would put JAL at risk of losing customers at a
time when it can least afford it.  Yet, it is also clear that a
withered, marginalized JAL would significantly benefit SkyTeam's
immunized hub in Seoul.  That is not a risk that JAL, nor the
government of Japan, should take," according to Mr. Arpey.

                          About AMR Corp.

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.

                          *     *     *

AMR carries a 'CCC' issuer default rating from Fitch Ratings.  It
has 'Caa1' corporate family and probability of default ratings
from Moody's.  It has 'B-' corporate credit rating, on watch
negative, from Standard & Poor's.

                       About Delta Air Lines

With its acquisition of Northwest Airlines, Atlanta, Georgia-based
Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or
http://www.nwa.com/-- became the world's largest airline
following merger with Northwest Airlines in 2008.  From its hubs
in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul,
New York-JFK, Salt Lake City and Tokyo-Narita, Delta, its
Northwest subsidiary and Delta Connection carriers offer service
to more than 376 destinations worldwide in 66 countries and serves
more than 170 million passengers each year.   The merger closed on
October 29, 2008.

Northwest and 12 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan.  That amended plan took effect May 31, 2007.

Delta and 18 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan.  That plan
became effective on April 30, 2007.

(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).

                           *     *     *

Delta Air Lines has $44,480,000,000 in assets against total debts
of $43,500,000,000 in debts as of June 30, 2009.

Delta Air Lines and Northwest Airlines carry a 'B/Negative/--'
corporate ratings from Standard & Poor's.  They also continue to
carry 'B2' corporate family ratings from Moody's.

                             About JAL

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

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

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
December 4, 2009, Standard & Poor's Ratings Services lowered to
'SD' (selective default) from 'CC' its long-term corporate credit
ratings on Japan Airlines Corp. and Japan Airlines International
Co. Ltd., its wholly owned subsidiary, and removed the ratings
from CreditWatch.  At the same time, Standard & Poor's maintained
its senior unsecured debt ratings on both companies at 'CCC' and
kept the ratings on CreditWatch with developing implications.  On
Sept. 18, 2009, S&P placed the corporate credit and senior
unsecured debt ratings on both companies on CreditWatch with
negative implications and maintained the CreditWatch status on
Oct. 16, 2009, and Nov. 4, 2009.  On Nov. 13, 2009, S&P maintained
its CreditWatch status on the corporate ratings on both companies
and revised to developing its CreditWatch status on the senior
unsecured debt ratings.

The TCR-AP reported on Nov. 3, 2009, that Moody's Investors
Service downgraded the long-term debt rating and issuer rating of
Japan Airlines International Co., Ltd. to Caa1 from B1, and will
continue to review both ratings for further possible downgrade.


JAPAN AIRLINES: President Nishimatsu Prefers Delta Over AMR
-----------------------------------------------------------
The New York Times' DealBook reports that Haruka Nishimatsu, the
president of Japan Airlines, told The Asahi Shimbun newspaper on
Friday he preferred Delta Air Lines as the carrier?s overseas
partner to American Airlines.

In the interview, published on Sunday, Mr. Nishimatsu also told
Asahi he opposes the plan to place the cash-strapped airline in
bankruptcy, suggesting tough negotiations ahead between the
airline and state-backed Enterprise Turnaround Initiative
Corporation of Japan.  "The image (of bankruptcy) would affect us
and we would lose customers," Mr. Nishimatsu told the newspaper.
"If we lose recognition from customers, restructuring would be
difficult and this will trouble the ETIC too."

The New York Times, citing Reuters, says ETIC, a state-backed fund
established to inject capital into and buy the debt of struggling
but viable firms, has told JAL?s main creditors it favors a
bankruptcy proceeding as part of its rescue package.

The NY Times, citing Kyodo news agency, says the Japanese
government on Sunday said state-owned Development Bank of Japan
would double its credit line for JAL to JPY200 billion (US$2.15
billion).

JAL has said it will make a decision on which overseas partner it
will choose by early January.

On December 17, 2009, the Troubled Company Reporter, citing The
Wall Street Journal's Mariko Sanchanta and Dow Jones Newswires'
Doug Cameron, reported that AMR Corp.'s American Airlines said it
may increase a proposed capital investment in Japan Airlines and
draw on financial support from other members of their Oneworld
alliance.

According to the report, Gerard Arpey, chairman and chief
executive of American parent AMR Corp., also offered to make JAL
the airline's "exclusive partner" in the region, as it intensified
efforts to fend off a rival offer from Delta Air Lines Inc.

Early in December, AMR said it could inject $1.1 billion into JAL
with its partner TPG Inc., the private-equity group, and support
from members of its Oneworld alliance.  According to the Journal,
the pledged support had previously been in the form of logistical
and management help for JAL, but Mr. Arpey hinted the partners
could also provide capital.

Delta and its partners in the rival SkyTeam alliance have said
they may revise their proposal to inject $500 million into JAL and
provide a $200 million loan and a $300 million revenue guarantee.
Delta hasn't said whether other SkyTeam members would inject funds
into JAL.  The Journal said Richard Anderson, Delta's CEO, met
with Seiji Maehara, Japan's Minister of Land, Infrastructure,
Transport and Tourism, early in December to explain his company's
proposal in more detail.

The Oneworld alliance includes British Airways, Qantas, Cathay
Pacific, Iberia, LAN, Finnair and Mexicana.

                          About AMR Corp.

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.

                          *     *     *

AMR carries a 'CCC' issuer default rating from Fitch Ratings.  It
has 'Caa1' corporate family and probability of default ratings
from Moody's.  It has 'B-' corporate credit rating, on watch
negative, from Standard & Poor's.

                       About Delta Air Lines

With its acquisition of Northwest Airlines, Atlanta, Georgia-based
Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or
http://www.nwa.com/-- became the world's largest airline
following merger with Northwest Airlines in 2008.  From its hubs
in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul,
New York-JFK, Salt Lake City and Tokyo-Narita, Delta, its
Northwest subsidiary and Delta Connection carriers offer service
to more than 376 destinations worldwide in 66 countries and serves
more than 170 million passengers each year.   The merger closed on
October 29, 2008.

Northwest and 12 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan.  That amended plan took effect May 31, 2007.

Delta and 18 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan.  That plan
became effective on April 30, 2007.

(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).

                           *     *     *

Delta Air Lines has $44,480,000,000 in assets against total debts
of $43,500,000,000 in debts as of June 30, 2009.

Delta Air Lines and Northwest Airlines carry a 'B/Negative/--'
corporate ratings from Standard & Poor's.  They also continue to
carry 'B2' corporate family ratings from Moody's.

                             About JAL

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

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

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
December 4, 2009, Standard & Poor's Ratings Services lowered to
'SD' (selective default) from 'CC' its long-term corporate credit
ratings on Japan Airlines Corp. and Japan Airlines International
Co. Ltd., its wholly owned subsidiary, and removed the ratings
from CreditWatch.  At the same time, Standard & Poor's maintained
its senior unsecured debt ratings on both companies at 'CCC' and
kept the ratings on CreditWatch with developing implications.  On
Sept. 18, 2009, S&P placed the corporate credit and senior
unsecured debt ratings on both companies on CreditWatch with
negative implications and maintained the CreditWatch status on
Oct. 16, 2009, and Nov. 4, 2009.  On Nov. 13, 2009, S&P maintained
its CreditWatch status on the corporate ratings on both companies
and revised to developing its CreditWatch status on the senior
unsecured debt ratings.

The TCR-AP reported on Nov. 3, 2009, that Moody's Investors
Service downgraded the long-term debt rating and issuer rating of
Japan Airlines International Co., Ltd. to Caa1 from B1, and will
continue to review both ratings for further possible downgrade.


JAPAN AIRLINES: Wins Employee's Approval for Pension Cuts
---------------------------------------------------------
Kiyotaka Matsuda at Bloomberg News reports that Japan Airlines
Corp. won approval from employees of a plan to reduce its pension
obligations.

Bloomberg relates JAL spokesman Satoru Tanaka said more than
the required two-thirds of workers supported the plan.  About
one-third of 9,000 retirees have so far agreed to the reduced
payout plan, he said.

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
December 4, 2009, Standard & Poor's Ratings Services lowered to
'SD' (selective default) from 'CC' its long-term corporate credit
ratings on Japan Airlines Corp. and Japan Airlines International
Co. Ltd., its wholly owned subsidiary, and removed the ratings
from CreditWatch.  At the same time, Standard & Poor's maintained
its senior unsecured debt ratings on both companies at 'CCC' and
kept the ratings on CreditWatch with developing implications.  On
Sept. 18, 2009, S&P placed the corporate credit and senior
unsecured debt ratings on both companies on CreditWatch with
negative implications and maintained the CreditWatch status on
Oct. 16, 2009, and Nov. 4, 2009.  On Nov. 13, 2009, S&P maintained
its CreditWatch status on the corporate ratings on both companies
and revised to developing its CreditWatch status on the senior
unsecured debt ratings.

The TCR-AP reported on Nov. 3, 2009, that Moody's Investors
Service downgraded the long-term debt rating and issuer rating of
Japan Airlines International Co., Ltd. to Caa1 from B1, and will
continue to review both ratings for further possible downgrade.


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


BUSAN BANK: Ratings Remain Unchanged, Moody's Says
--------------------------------------------------
Moody's Investors Service says that its ratings for Korean banks
are likely to remain unchanged despite the large exposures of some
of these institutions to the troubled Kumho Asiana Group, which is
now poised for restructuring.

In addition, while Moody's is aware that most banks in Korea,
including those rated by Moody's, have some exposure to Kumho
Asiana members, Moody's currently have only aggregate numbers and
lack a detailed breakdown of exposures by obligor and product
type.

Furthermore, Moody's can not say how much time will be required to
liquidate the group's assets, or how the share-purchase program of
the Korean Development Bank -- the largest creditor -- will work.

"Although the exact details are unclear at this early stage,
Moody's believe Moody's existing bank ratings capture the risks,
for three reasons," said Moody's Vice President and Senior
Analyst, Youngil Choi.

First, the total exposures at most private sector banks could be
written off against 2009 earnings.  Those that exceed earnings,
represent small proportions of capital.

Second, not all of itsKRW 15.7 trillion of exposure
(US$13.6 billion) would require significant provisioning, as not
all members of Kumho Asiana -- Korea's 9th largest business
conglomerate or Jaebeol -- will be subject to the restructuring
announced yesterday.

And third, the Korean banks could write off all of their Kumho
Asiana exposures and still record lower losses than those assumed
in Moody's May 2009 downgrades of the Korean, due to the current
global recession.

So far, the Financial Supervisory Service puts the credit
exposures of financial institutions to Kumho Asiana at
KRW15.7 trillion -- KRW10.1 trillion in loans, KRW1.2 trillion in
debt securities, and KRW 4.4 trillion in other instruments.

But, the ultimate loss to Korea's banking sector could well exceed
the FSS estimate on the banks' credit loss provisioning of
KRW1.2 trillion, if the group's restructuring plan does not play
out smoothly.

In the long term, as suggested by the FSS estimate of
KRW15.7 trillion in total credit exposures, the losses -- whatever
they ultimately measure -- from the Kumho Asiana restructuring are
likely to adversely and significantly impact the earnings or even
the capital levels of a few banks with larger exposures.

KDB has, as indicated, by far the largest exposure, followed by
Export-Import Bank of Korea and Woori Bank.  Moreover, KDB's
financial burden could rise appreciably in view of its plan to
purchase a majority share of Daewoo Engineering and Construction
Co, a member of the group, at a significant premium to market
prices.

However, as mentioned, Moody's does not -- at this point -- see
any likely impact on the ratings of KDB or other rated Korean
banks.  KDB's D BFSR -- or Ba2 baseline credit assessment --
already incorporates a certain level of financial burden from its
concentrated exposures to large corporate groups overall.  The
bank's policy function -- as a lender to Korea's major corporates
-- means that it has traditionally played a leading role in the
workouts of financially troubled companies.

Rating actions in May 2009 -- in the wake of stress test
applications -- cover the levels of financial burden now evident
at most Korean banks.  The actions, which involved 9 banks,
included downgrades of BFSRs and BCAs, and changes in BFSR
outlooks.

For example, Moody's lowered Woori Bank's BCA to Baa2 from A3 due
to its low capital level -- when compared to other banks in the
system -- and the possible emergence later on of more serious
asset quality problems.

Kumho Asiana announced a plan, which it had agreed with KDB, to
restructure its group companies due to financial problems on 30
December 2009.

According to the announcement, Keumho Industrial Co and Keumho
Tire Co will be subject to debt workout programs.  Separately,
Kumho Petrochemical Co and Asiana Airlines Inc will seek to
normalize their operations on their own.

A private equity fund, led by KDB, will purchase 50% plus 1 share
of Daewoo Engineering and Construction Co. The group will also try
to sell some companies such as Kumho Life.

Kumho Asiana faces immediate financial problems primarily because
of its obligation to pay about KRW4 trillion by mid-January 2010
to investors who partially financed the group's acquisition of
Daewoo Engineering and Construction Co in 2006.

These investors include some of its creditor banks and they also
have put options to force the group to buy back as much as about
39% of Daewoo Engineering and Construction Co at KRW32,510 per
share, much higher than the December 30 closing of KRW12,800.

List bank ratings below:

  -- Citibank Korea: BFSR of C-, BCA of Baa2, local currency
     deposit of A2, foreign currency long-term deposit of A2;

  -- Busan Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Daegu Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Export-Import Bank of Korea: BCA of A3, foreign currency
     senior debt of A2;

  -- Hana Bank: BFSR of C-, BCA of Baa1, local currency deposit of
     A1, foreign currency long-term senior/subordinated debt of
     A2/A2, foreign currency long-term deposit of A2;

  -- Industrial Bank of Korea: BFSR of D+, BCA of Baa3, foreign
     currency long-term senior/subordinated debt of A2/A2, foreign
     currency long-term deposit of A2;

  -- Jeonbuk Bank: BFSR of D+, BCA of Baa3, local currency deposit
     of A3, foreign currency long-term deposit of A3;

  -- Kookmin Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A1, foreign currency long-term senior/subordinated debt of
     A2/A2, foreign currency long-term deposit of A2;

  -- Korea Exchange Bank: BFSR of C-, BCA of Baa2, local currency
     deposit of A2, foreign currency long-term senior/subordinated
     debt of A2/A3, foreign currency long-term deposit of A2;

  -- Korea Development Bank: BFSR of D, BCA of Ba2, local currency
     deposit of A1, foreign currency long-term senior debt and
     deposit of A2;

  -- National Agricultural Cooperative Federation: BFSR of D+, BCA
     of Ba1, local currency deposit of A1, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2;

  -- Shinhan Bank: BFSR of C-, BCA of Baa1, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2;

  -- Standard Chartered First Bank of Korea: BFSR of D+, BCA of
     Baa3, local currency deposit of A2, foreign currency long-
     term senior/subordinated debt of A2/A3, foreign currency
     long-term deposit of A2;

  -- Suhyup Bank: BFSR of D-, BCA of Ba3, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Woori Bank: BFSR of C-, BCA of Baa2, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2.


CITIBANK KOREA: Ratings Remain Unchanged, Moody's Says
------------------------------------------------------
Moody's Investors Service says that its ratings for Korean banks
are likely to remain unchanged despite the large exposures of some
of these institutions to the troubled Kumho Asiana Group, which is
now poised for restructuring.

In addition, while Moody's is aware that most banks in Korea,
including those rated by Moody's, have some exposure to Kumho
Asiana members, Moody's currently have only aggregate numbers and
lack a detailed breakdown of exposures by obligor and product
type.

Furthermore, Moody's can not say how much time will be required to
liquidate the group's assets, or how the share-purchase program of
the Korean Development Bank -- the largest creditor -- will work.

"Although the exact details are unclear at this early stage,
Moody's believe Moody's existing bank ratings capture the risks,
for three reasons," said Moody's Vice President and Senior
Analyst, Youngil Choi.

First, the total exposures at most private sector banks could be
written off against 2009 earnings.  Those that exceed earnings,
represent small proportions of capital.

Second, not all of itsKRW 15.7 trillion of exposure
(US$13.6 billion) would require significant provisioning, as not
all members of Kumho Asiana -- Korea's 9th largest business
conglomerate or Jaebeol -- will be subject to the restructuring
announced yesterday.

And third, the Korean banks could write off all of their Kumho
Asiana exposures and still record lower losses than those assumed
in Moody's May 2009 downgrades of the Korean, due to the current
global recession.

So far, the Financial Supervisory Service puts the credit
exposures of financial institutions to Kumho Asiana at
KRW15.7 trillion -- KRW10.1 trillion in loans, KRW1.2 trillion in
debt securities, and KRW 4.4 trillion in other instruments.

But, the ultimate loss to Korea's banking sector could well exceed
the FSS estimate on the banks' credit loss provisioning of
KRW1.2 trillion, if the group's restructuring plan does not play
out smoothly.

In the long term, as suggested by the FSS estimate of
KRW15.7 trillion in total credit exposures, the losses -- whatever
they ultimately measure -- from the Kumho Asiana restructuring are
likely to adversely and significantly impact the earnings or even
the capital levels of a few banks with larger exposures.

KDB has, as indicated, by far the largest exposure, followed by
Export-Import Bank of Korea and Woori Bank.  Moreover, KDB's
financial burden could rise appreciably in view of its plan to
purchase a majority share of Daewoo Engineering and Construction
Co, a member of the group, at a significant premium to market
prices.

However, as mentioned, Moody's does not -- at this point -- see
any likely impact on the ratings of KDB or other rated Korean
banks.  KDB's D BFSR -- or Ba2 baseline credit assessment --
already incorporates a certain level of financial burden from its
concentrated exposures to large corporate groups overall.  The
bank's policy function -- as a lender to Korea's major corporates
-- means that it has traditionally played a leading role in the
workouts of financially troubled companies.

Rating actions in May 2009 -- in the wake of stress test
applications -- cover the levels of financial burden now evident
at most Korean banks.  The actions, which involved 9 banks,
included downgrades of BFSRs and BCAs, and changes in BFSR
outlooks.

For example, Moody's lowered Woori Bank's BCA to Baa2 from A3 due
to its low capital level -- when compared to other banks in the
system -- and the possible emergence later on of more serious
asset quality problems.

Kumho Asiana announced a plan, which it had agreed with KDB, to
restructure its group companies due to financial problems on 30
December 2009.

According to the announcement, Keumho Industrial Co and Keumho
Tire Co will be subject to debt workout programs.  Separately,
Kumho Petrochemical Co and Asiana Airlines Inc will seek to
normalize their operations on their own.

A private equity fund, led by KDB, will purchase 50% plus 1 share
of Daewoo Engineering and Construction Co. The group will also try
to sell some companies such as Kumho Life.

Kumho Asiana faces immediate financial problems primarily because
of its obligation to pay about KRW4 trillion by mid-January 2010
to investors who partially financed the group's acquisition of
Daewoo Engineering and Construction Co in 2006.

These investors include some of its creditor banks and they also
have put options to force the group to buy back as much as about
39% of Daewoo Engineering and Construction Co at KRW32,510 per
share, much higher than the December 30 closing of KRW12,800.

List bank ratings below:

  -- Citibank Korea: BFSR of C-, BCA of Baa2, local currency
     deposit of A2, foreign currency long-term deposit of A2;

  -- Busan Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Daegu Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Export-Import Bank of Korea: BCA of A3, foreign currency
     senior debt of A2;

  -- Hana Bank: BFSR of C-, BCA of Baa1, local currency deposit of
     A1, foreign currency long-term senior/subordinated debt of
     A2/A2, foreign currency long-term deposit of A2;

  -- Industrial Bank of Korea: BFSR of D+, BCA of Baa3, foreign
     currency long-term senior/subordinated debt of A2/A2, foreign
     currency long-term deposit of A2;

  -- Jeonbuk Bank: BFSR of D+, BCA of Baa3, local currency deposit
     of A3, foreign currency long-term deposit of A3;

  -- Kookmin Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A1, foreign currency long-term senior/subordinated debt of
     A2/A2, foreign currency long-term deposit of A2;

  -- Korea Exchange Bank: BFSR of C-, BCA of Baa2, local currency
     deposit of A2, foreign currency long-term senior/subordinated
     debt of A2/A3, foreign currency long-term deposit of A2;

  -- Korea Development Bank: BFSR of D, BCA of Ba2, local currency
     deposit of A1, foreign currency long-term senior debt and
     deposit of A2;

  -- National Agricultural Cooperative Federation: BFSR of D+, BCA
     of Ba1, local currency deposit of A1, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2;

  -- Shinhan Bank: BFSR of C-, BCA of Baa1, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2;

  -- Standard Chartered First Bank of Korea: BFSR of D+, BCA of
     Baa3, local currency deposit of A2, foreign currency long-
     term senior/subordinated debt of A2/A3, foreign currency
     long-term deposit of A2;

  -- Suhyup Bank: BFSR of D-, BCA of Ba3, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Woori Bank: BFSR of C-, BCA of Baa2, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2.


DAEGU BANK: Ratings Remain Unchanged, Moody's Says
--------------------------------------------------
Moody's Investors Service says that its ratings for Korean banks
are likely to remain unchanged despite the large exposures of some
of these institutions to the troubled Kumho Asiana Group, which is
now poised for restructuring.

In addition, while Moody's is aware that most banks in Korea,
including those rated by Moody's, have some exposure to Kumho
Asiana members, Moody's currently have only aggregate numbers and
lack a detailed breakdown of exposures by obligor and product
type.

Furthermore, Moody's can not say how much time will be required to
liquidate the group's assets, or how the share-purchase program of
the Korean Development Bank -- the largest creditor -- will work.

"Although the exact details are unclear at this early stage,
Moody's believe Moody's existing bank ratings capture the risks,
for three reasons," said Moody's Vice President and Senior
Analyst, Youngil Choi.

First, the total exposures at most private sector banks could be
written off against 2009 earnings.  Those that exceed earnings,
represent small proportions of capital.

Second, not all of itsKRW 15.7 trillion of exposure
(US$13.6 billion) would require significant provisioning, as not
all members of Kumho Asiana -- Korea's 9th largest business
conglomerate or Jaebeol -- will be subject to the restructuring
announced yesterday.

And third, the Korean banks could write off all of their Kumho
Asiana exposures and still record lower losses than those assumed
in Moody's May 2009 downgrades of the Korean, due to the current
global recession.

So far, the Financial Supervisory Service puts the credit
exposures of financial institutions to Kumho Asiana at
KRW15.7 trillion -- KRW10.1 trillion in loans, KRW1.2 trillion in
debt securities, and KRW 4.4 trillion in other instruments.

But, the ultimate loss to Korea's banking sector could well exceed
the FSS estimate on the banks' credit loss provisioning of
KRW1.2 trillion, if the group's restructuring plan does not play
out smoothly.

In the long term, as suggested by the FSS estimate of
KRW15.7 trillion in total credit exposures, the losses -- whatever
they ultimately measure -- from the Kumho Asiana restructuring are
likely to adversely and significantly impact the earnings or even
the capital levels of a few banks with larger exposures.

KDB has, as indicated, by far the largest exposure, followed by
Export-Import Bank of Korea and Woori Bank.  Moreover, KDB's
financial burden could rise appreciably in view of its plan to
purchase a majority share of Daewoo Engineering and Construction
Co, a member of the group, at a significant premium to market
prices.

However, as mentioned, Moody's does not -- at this point -- see
any likely impact on the ratings of KDB or other rated Korean
banks.  KDB's D BFSR -- or Ba2 baseline credit assessment --
already incorporates a certain level of financial burden from its
concentrated exposures to large corporate groups overall.  The
bank's policy function -- as a lender to Korea's major corporates
-- means that it has traditionally played a leading role in the
workouts of financially troubled companies.

Rating actions in May 2009 -- in the wake of stress test
applications -- cover the levels of financial burden now evident
at most Korean banks.  The actions, which involved 9 banks,
included downgrades of BFSRs and BCAs, and changes in BFSR
outlooks.

For example, Moody's lowered Woori Bank's BCA to Baa2 from A3 due
to its low capital level -- when compared to other banks in the
system -- and the possible emergence later on of more serious
asset quality problems.

Kumho Asiana announced a plan, which it had agreed with KDB, to
restructure its group companies due to financial problems on 30
December 2009.

According to the announcement, Keumho Industrial Co and Keumho
Tire Co will be subject to debt workout programs.  Separately,
Kumho Petrochemical Co and Asiana Airlines Inc will seek to
normalize their operations on their own.

A private equity fund, led by KDB, will purchase 50% plus 1 share
of Daewoo Engineering and Construction Co. The group will also try
to sell some companies such as Kumho Life.

Kumho Asiana faces immediate financial problems primarily because
of its obligation to pay about KRW4 trillion by mid-January 2010
to investors who partially financed the group's acquisition of
Daewoo Engineering and Construction Co in 2006.

These investors include some of its creditor banks and they also
have put options to force the group to buy back as much as about
39% of Daewoo Engineering and Construction Co at KRW32,510 per
share, much higher than the December 30 closing of KRW12,800.

List bank ratings below:

  -- Citibank Korea: BFSR of C-, BCA of Baa2, local currency
     deposit of A2, foreign currency long-term deposit of A2;

  -- Busan Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Daegu Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Export-Import Bank of Korea: BCA of A3, foreign currency
     senior debt of A2;

  -- Hana Bank: BFSR of C-, BCA of Baa1, local currency deposit of
     A1, foreign currency long-term senior/subordinated debt of
     A2/A2, foreign currency long-term deposit of A2;

  -- Industrial Bank of Korea: BFSR of D+, BCA of Baa3, foreign
     currency long-term senior/subordinated debt of A2/A2, foreign
     currency long-term deposit of A2;

  -- Jeonbuk Bank: BFSR of D+, BCA of Baa3, local currency deposit
     of A3, foreign currency long-term deposit of A3;

  -- Kookmin Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A1, foreign currency long-term senior/subordinated debt of
     A2/A2, foreign currency long-term deposit of A2;

  -- Korea Exchange Bank: BFSR of C-, BCA of Baa2, local currency
     deposit of A2, foreign currency long-term senior/subordinated
     debt of A2/A3, foreign currency long-term deposit of A2;

  -- Korea Development Bank: BFSR of D, BCA of Ba2, local currency
     deposit of A1, foreign currency long-term senior debt and
     deposit of A2;

  -- National Agricultural Cooperative Federation: BFSR of D+, BCA
     of Ba1, local currency deposit of A1, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2;

  -- Shinhan Bank: BFSR of C-, BCA of Baa1, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2;

  -- Standard Chartered First Bank of Korea: BFSR of D+, BCA of
     Baa3, local currency deposit of A2, foreign currency long-
     term senior/subordinated debt of A2/A3, foreign currency
     long-term deposit of A2;

  -- Suhyup Bank: BFSR of D-, BCA of Ba3, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Woori Bank: BFSR of C-, BCA of Baa2, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2.


HANA BANK: Ratings Remain Unchanged, Moody's Says
--------------------------------------------------
Moody's Investors Service says that its ratings for Korean banks
are likely to remain unchanged despite the large exposures of some
of these institutions to the troubled Kumho Asiana Group, which is
now poised for restructuring.

In addition, while Moody's is aware that most banks in Korea,
including those rated by Moody's, have some exposure to Kumho
Asiana members, Moody's currently have only aggregate numbers and
lack a detailed breakdown of exposures by obligor and product
type.

Furthermore, Moody's can not say how much time will be required to
liquidate the group's assets, or how the share-purchase program of
the Korean Development Bank -- the largest creditor -- will work.

"Although the exact details are unclear at this early stage,
Moody's believe Moody's existing bank ratings capture the risks,
for three reasons," said Moody's Vice President and Senior
Analyst, Youngil Choi.

First, the total exposures at most private sector banks could be
written off against 2009 earnings.  Those that exceed earnings,
represent small proportions of capital.

Second, not all of itsKRW 15.7 trillion of exposure
(US$13.6 billion) would require significant provisioning, as not
all members of Kumho Asiana -- Korea's 9th largest business
conglomerate or Jaebeol -- will be subject to the restructuring
announced yesterday.

And third, the Korean banks could write off all of their Kumho
Asiana exposures and still record lower losses than those assumed
in Moody's May 2009 downgrades of the Korean, due to the current
global recession.

So far, the Financial Supervisory Service puts the credit
exposures of financial institutions to Kumho Asiana at
KRW15.7 trillion -- KRW10.1 trillion in loans, KRW1.2 trillion in
debt securities, and KRW 4.4 trillion in other instruments.

But, the ultimate loss to Korea's banking sector could well exceed
the FSS estimate on the banks' credit loss provisioning of
KRW1.2 trillion, if the group's restructuring plan does not play
out smoothly.

In the long term, as suggested by the FSS estimate of
KRW15.7 trillion in total credit exposures, the losses -- whatever
they ultimately measure -- from the Kumho Asiana restructuring are
likely to adversely and significantly impact the earnings or even
the capital levels of a few banks with larger exposures.

KDB has, as indicated, by far the largest exposure, followed by
Export-Import Bank of Korea and Woori Bank.  Moreover, KDB's
financial burden could rise appreciably in view of its plan to
purchase a majority share of Daewoo Engineering and Construction
Co, a member of the group, at a significant premium to market
prices.

However, as mentioned, Moody's does not -- at this point -- see
any likely impact on the ratings of KDB or other rated Korean
banks.  KDB's D BFSR -- or Ba2 baseline credit assessment --
already incorporates a certain level of financial burden from its
concentrated exposures to large corporate groups overall.  The
bank's policy function -- as a lender to Korea's major corporates
-- means that it has traditionally played a leading role in the
workouts of financially troubled companies.

Rating actions in May 2009 -- in the wake of stress test
applications -- cover the levels of financial burden now evident
at most Korean banks.  The actions, which involved 9 banks,
included downgrades of BFSRs and BCAs, and changes in BFSR
outlooks.

For example, Moody's lowered Woori Bank's BCA to Baa2 from A3 due
to its low capital level -- when compared to other banks in the
system -- and the possible emergence later on of more serious
asset quality problems.

Kumho Asiana announced a plan, which it had agreed with KDB, to
restructure its group companies due to financial problems on 30
December 2009.

According to the announcement, Keumho Industrial Co and Keumho
Tire Co will be subject to debt workout programs.  Separately,
Kumho Petrochemical Co and Asiana Airlines Inc will seek to
normalize their operations on their own.

A private equity fund, led by KDB, will purchase 50% plus 1 share
of Daewoo Engineering and Construction Co. The group will also try
to sell some companies such as Kumho Life.

Kumho Asiana faces immediate financial problems primarily because
of its obligation to pay about KRW4 trillion by mid-January 2010
to investors who partially financed the group's acquisition of
Daewoo Engineering and Construction Co in 2006.

These investors include some of its creditor banks and they also
have put options to force the group to buy back as much as about
39% of Daewoo Engineering and Construction Co at KRW32,510 per
share, much higher than the December 30 closing of KRW12,800.

List bank ratings below:

  -- Citibank Korea: BFSR of C-, BCA of Baa2, local currency
     deposit of A2, foreign currency long-term deposit of A2;

  -- Busan Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Daegu Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Export-Import Bank of Korea: BCA of A3, foreign currency
     senior debt of A2;

  -- Hana Bank: BFSR of C-, BCA of Baa1, local currency deposit of
     A1, foreign currency long-term senior/subordinated debt of
     A2/A2, foreign currency long-term deposit of A2;

  -- Industrial Bank of Korea: BFSR of D+, BCA of Baa3, foreign
     currency long-term senior/subordinated debt of A2/A2, foreign
     currency long-term deposit of A2;

  -- Jeonbuk Bank: BFSR of D+, BCA of Baa3, local currency deposit
     of A3, foreign currency long-term deposit of A3;

  -- Kookmin Bank: BFSR of C-, BCA of Baa1, local currency deposit
     of A1, foreign currency long-term senior/subordinated debt of
     A2/A2, foreign currency long-term deposit of A2;

  -- Korea Exchange Bank: BFSR of C-, BCA of Baa2, local currency
     deposit of A2, foreign currency long-term senior/subordinated
     debt of A2/A3, foreign currency long-term deposit of A2;

  -- Korea Development Bank: BFSR of D, BCA of Ba2, local currency
     deposit of A1, foreign currency long-term senior debt and
     deposit of A2;

  -- National Agricultural Cooperative Federation: BFSR of D+, BCA
     of Ba1, local currency deposit of A1, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2;

  -- Shinhan Bank: BFSR of C-, BCA of Baa1, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2;

  -- Standard Chartered First Bank of Korea: BFSR of D+, BCA of
     Baa3, local currency deposit of A2, foreign currency long-
     term senior/subordinated debt of A2/A3, foreign currency
     long-term deposit of A2;

  -- Suhyup Bank: BFSR of D-, BCA of Ba3, local currency deposit
     of A2, foreign currency long-term senior/subordinated debt of
     A2/A3, foreign currency long-term deposit of A2;

  -- Woori Bank: BFSR of C-, BCA of Baa2, foreign currency long-
     term senior/subordinated debt of A2/A2, foreign currency
     long-term deposit of A2.


HANJIN HEAVY: Plans to Cut Workforce by 30% in February
-------------------------------------------------------
Antara News reports that Hanjin Heavy Industries and Construction
Co. said it plans to slash its shipbuilding workforce by at least
30% to help overcome a management crisis arising from a worldwide
recession in the industry.

According to the news agency, the plan calls for the company to
begin layoffs in its shipbuilding unit in February and spin off
part of its technology group.

"The company did not receive any new ship orders this year and we
are not structurally capable of taking on low-priced orders at the
moment," Antara cited Hanjin as saying.  "For the survival of the
company, layoffs and workforce restructuring are inevitable."

Based in Busan, South Korea, Hanjin Heavy Industries &
Construction Co., Ltd., (SEO:097230) -- http://www.hanjinsc.com/
-- is engaged in the construction and shipbuilding sectors.  The
Company operates its business under two segments.  The
construction segment focuses on the architectural works, comprised
of the construction of commercial buildings, hotels, hospitals,
educational institutions, apartment complexes, houses, sports and
entertainment facilities and military facilities, and engineering
works, including construction of roads, bridges, railways,
subways, tunnels and harbors.  The shipbuilding segment builds and
supplies container carriers, liquefied natural gas (LNG) carriers,
chemical tankers, oil and petroleum product carriers, bulk
carriers and special-purpose vessels.


HYUNDAI MOTOR: Aims to Boosts Global Sales by 17% This Year
-----------------------------------------------------------
Yonhap News reports that Hyundai Motor Co. and affiliate Kia
Motors Corp. said Monday they plan to increase global sales this
year by 17%, helped by a global economic recovery and introduction
of new models.

Citing Hyundai and Kia's joint statement, Yonhap says the two
companies expect their combined sales to rise to 5.4 million
vehicles in 2010, compared with 4.63 million units sold last year.

                              Hijack

Kyunghee Park at Bloomberg News reports that Hyundai and Kia don?t
expect any losses after Somali pirates hijacked a vessel carrying
cars last week.

"As soon as the vessel embarks, all risks related to the vessel
are the responsibility of the distributor," Bloomberg relates
citing Hyundai's e-mailed response to queries.  "All payments for
the cars have been made, while the cars are also insured."

Bloomberg, citing a statement from South Korea?s Ministry of Land,
Transport and Maritimes Affairs, reports that Asian Glory, a car
ship operated by EUKOR Car Carriers Inc., was hijacked on Jan. 1
while on its way to Saudi Arabia after departing from Ulsan.   The
vessel is owned by Zodiac Maritime Agencies Ltd. and was carrying
2,405 cars, including 2,388 from Hyundai Motor and Kia, Bloomberg
relates.  The Asian Glory has 25 crewmembers, including eight
Bulgarians and five Indians, and was hijacked 1,000 kilometers
(620 miles) off Somalia, according to the South Korean ministry's
statement obtained by Bloomberg.

                       About Hyundai Motor

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
Nov. 13, 2009, Moody's Investors Service revised to stable from
negative the outlook of the Baa3 issuer and senior unsecured bond
ratings for Hyundai Motor Company and its guaranteed subsidiary
Hyundai Motor Manufacturing Alabama LLC.  Moody's also revised the
Ba1 Corporate Family Rating outlook of Kia Motors Corp. to stable
from negative.

The TCR-AP reported on December 11, 2009, that Fitch Ratings
revised the Outlook on Hyundai Motor's and Kia Motors' foreign
currency Long-term Issuer Default Ratings to Positive from
Negative, and simultaneously affirmed them at 'BB+'.  The agency
also affirmed the 'BB+' rating on both companies' senior unsecured
debt and the Short-term IDRs at 'B'.

HMC's and Kia's Long-term IDR was downgraded to 'BB+' with
Negative Outlook in January 2009, due to concerns that the global
auto market downturn would negatively impact the profitability and
key credit metrics of the companies to an extent that is not
commensurate to investment grade levels.


KOREA EXCHANGE BANK: Lone Star's Purchase Legitimate, Court Rules
-----------------------------------------------------------------
Carla Main at Bloomberg News reports that a Seoul appeals court
ruled that Lone Star Funds' 2003 purchase of Korea Exchange Bank
was legitimate, clearing the lender's then chief executive officer
and a former government official of charges they sold it too
cheaply.

According to the report, the Seoul High Court upheld a lower court
ruling, finding Lee Kang Won, who at the time was CEO of Korea
Exchange Bank, and Byeon Yang Ho, then a finance ministry official
in charge of banking policies, innocent of breach-of-duty charges.
No officials at Dallas-based Lone Star have been charged in the
case.

The verdict, Ms. Main relates, puts Lone Star a step closer to
clearing legal hurdles that cast doubt on its ownership and
thwarted the firm's two attempts to sell control of Korea Exchange
Bank.

The Bloomberg report recounts that Lone Star founder John Grayken
said on Sept. 30 he expected to sell Korea Exchange Bank in six to
12 months after getting "unofficial" support from the government.

Korea Exchange Bank -- http://www.keb.co.kr/-- established in
1967, is one of seven national banks in South Korea with over
300 domestic branches and 28 overseas networks, including
Canada, the United States, Panama and Germany, constituting the
most extensive global banking network of any Korean bank.  KEB
Futures -- http://www.kebf.com/-- is a clearing member of KOFEX
and is a subsidiary of Korea Exchange Bank, the official F/X
settlement bank for Korean Futures Exchange.


KUMHO ASIANA: KDB Seeks Strategic Investors for Daewoo Engineering
------------------------------------------------------------------
The Chosun Ilbo reports that Korea Development Bank wants
strategic investors including top steelmaker POSCO to buy troubled
builder Daewoo Engineering & Construction from Kumho Asiana Group.

Chosun Ilbo relates that a private equity fund led by the state-
owned bank has agreed to buy the construction firm for US$2.5
billion and is considering handing over the management rights to
prospective investors in three to five years.

"KDB plans to send investment offers to companies at home and
abroad within the month, and will seek to find strategic
investors," The Korea Herald cited an official at the state-run
lender as saying.  The official, according to the Herald, said the
bank is considering asking POSCO to join the deal and will sound
out other large companies to see whether they are interested.

The move, says the Herald, comes as Kumho faced a cash call worth
around KRW4 trillion from financial investors, who exercised their
rights to sell shares in Daewoo Engineering back to the group on
December 31 at above-market prices.

The Korea Herald, citing sources, meanwhile reports that creditors
and Kumho Asiana Group plan to come up with measures to
restructure the ailing units and finalize debt restructuring plans
by the end of February.

As reported in the Troubled Company Reporter-Asia Pacific on
January 4, 2010, Yonhap News said Kumho Asiana's creditor banks
have decided to put two of the group's units on a debt
rescheduling program to help it ride out a liquidity squeeze.

According to the news agency, Kumho Asiana had earlier asked its
creditors to place Kumho Industrial Co. and Kumho Tire Co. under
the debt workout scheme to help it ease a worsening cash shortage
sparked by the delayed sale of the group's construction unit,
Daewoo Engineering & Construction Co.

The TCR-AP reported on August 6, 2009, that Kumho Asiana has been
suffering from a liquidity crisis, which observers describe as a
typical case of acquisition indigestion.  In a bid to ease a cash
shortage, the conglomerate in July decided to re-sell the
controlling stakes and management rights of Daewoo Engineering &
Construction, three years after acquiring it for KRW6.4 trillion,
according to the Korea Herald.

Bloomberg reported Kumho Asiana has sold properties and stakes in
affiliates to help it repay debt stemming from its 2006 purchase
of Daewoo Engineering.  Bloomberg said creditors including Shinhan
Bank may force the company to repay KRW3.9 trillion (US$3.2
billion) by June if they exercise an option to sell Daewoo
Engineering shares they hold back to Kumho Asiana.

Kumho Asiana is seeking to sell between 50% and 72% of the
builder, Bloomberg said citing people with knowledge of the
matter.

                       About Kumho Asiana

Established in 1946, Kumho Asiana Group is a large South Korean
conglomerate, with subsidiaries in the automotive, industry,
leisure, logistic, chemical and airline fields.  The group is
headquartered at the Kumho Asiana Main Tower in Sinmunno 1-ga,
Jongno-gu, Seoul, South Korea.


KUMHO ASIANA: To Slash Executive Headcount by 20%; to Sell Assets
-----------------------------------------------------------------
The Wall Street Journal's Kyong-Ae Choi reports South Korea's
cash-strapped Kumho Asiana Group said Tuesday it will reduce its
executive headcount by 20% and reduce their salaries by 20% as
part of a restructuring.

The Journal relates Kumho Asiana also plans to raise more than
KRW1.3 trillion through the sale of assets.  Kumho Tire was down
by its daily 15% limit.

According to the Journal, Kumho Asiana said in a statement all
employees, with the exception of some workers on assembly lines,
will have to take unpaid leave for one month and some welfare
benefits will be suspended for the time being to cut costs.  The
Journal notes Kumho Asiana didn't specify how many employees might
be exempt from the unpaid leave, saying that exact figures aren't
available for now due as the restructuring is ongoing.

The Journal says Kumho Tire and Kumho Industrial were both down by
their daily 15% limit.

"Investors won't buy stocks of Kumho Tire and Kumho Industrial as
they will be put under a debt workout program as part of the
group's self-rescue efforts," said Louis Shin at Woori Investment
& Securities, according to the Journal.

Bloomberg News' Bomi Lim and Kyunghee Park last week reported
Kumho Asiana agreed to sell a controlling stake in Daewoo
Engineering & Construction Co. for KRW2.9 trillion (US$2.5
billion) to its main creditor Korea Development Bank to help meet
a cash call from banks.  According to Bloomberg, KDB will buy 50%
plus one share from Kumho Asiana through a private-equity fund for
18,000 won a share, Kim Young Kee, vice chairman of Korea
Development Bank, said in Seoul on December 30.  Bloomberg said
the purchase price is 41% more than Daewoo Engineering?s closing
price on December 30.

Kumho Asiana's Kumho Industrial Co. and Kumho Tire Co. units are
seeking a debt restructuring from creditors.  Korea Kumho
Petrochemical Co. and Asiana Airlines Inc. will also discuss ways
of improving their finances with creditors, Bloomberg said.

According to Bloomberg data, the group's net debt was KRW2.21
trillion as of September 30, 2009 -- more than double the KRW998.5
billion it had at the end of 2005, before Kumho Asiana bought 72%
of Daewoo Engineering for KRW6.43 trillion.  Kumho Tire's net debt
stood at KRW1.71 trillion at the end of September 2009.

                     About Kumho Asiana Group

Established in 1946, Kumho Asiana Group is a large South Korean
conglomerate, with subsidiaries in the automotive, industry,
leisure, logistic, chemical and airline fields.  The group is
headquartered at the Kumho Asiana Main Tower in Sinmunno 1-ga,
Jongno-gu, Seoul, South Korea.


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


KINGSTON ACQUISITIONS: Railmark Continues Bid for Kingston Flyer
----------------------------------------------------------------
U.S.-based firm Railmark is still in sideline negotiations to buy
the Kingston Flyer despite other potential buyers being told all
offers had been rejected, Ben Heather at The Press reports.

According to the report, Railmark chief executive Allen Brown said
his firm had bypassed the tender process and was negotiating
directly with the receiver.  "The tender process does not affect
the Railmark bid.  We have made our offer directly to the
receiver."

Mr. Brown said the offer was still being assessed by the receiver
and Railmark expected a response this week, The Press relates.

The Press discloses that the receivers of Kingston Acquisitions
Ltd have been trying to sell the dormant heritage train near
Queenstown, along with tracks, stations and surrounding land since
the firm was placed into receivership in November.

According to the Press, sales agent Bayleys last month told
parties participating in the international tender seven offers had
been lodged, but none was acceptable to the receiver.

Meanwhile, the Otago Daily Times reports that a legal battle has
erupted over who own assets associated with the Kingston Flyer
historic steam train.

Kingston Flyer Steamtrain Ltd, the former train and tavern
operator, has been issued a trespass notice to stay off the
Kingston Flyer site and told by the train's receivers that its
lease has never been valid, according to the Otago Daily.

KFSL held a 35-year lease to operate the business with Kingston
Acquisitions Ltd, the Otago Daily discloses.

The Otago Daily relates KFSL director Phil Kerr said he received a
letter on December 23.  "The receiver sent a letter to our
companies in Kingston, advising that the whole agreement between
KFSL and KAL is void ab initio [from the beginning]," the Otago
Daily quoted Mr. Kerr as saying.

The letter also said the lease agreement between Mr. Kerr's
Kingston Village Inn Ltd company, trading as the Kingston Tavern,
with KAL was void from the beginning, according to the Otago
Daily.

"We were given a notice to leave and stay off the premises and if
we failed to do so, we would be committing an offence against the
Trespass Act," Mr. Kerr said.

Mr. Kerr said KFSL owned "various assets" on the Kingston site.

According to the Otago Daily, receiver Lindsay McClean, of Malloch
McClean Queenstown, said he had received legal advice that all the
assets were owned by KAL.

The Otago Daily quoted Mr. McClean as saying that "All the assets
are for sale. We have legal advice that KAL owns all the assets.
The lease is a different story. KFSL had a lease on the train but
that's got to be tested."

Mr. McClean said he would be "negotiating" with interested parties
in the New Year, the Otago Daily notes.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 12, 2009, The Southland Times said Kingston Acquisitions Ltd,
the company behind the Kingston Flyer steam train, was placed into
receivership by financier Prudential Mortgage Nominees, owing at
least NZ$4.7 million.

The company's assets, which include 80 hectares of development
land, would be sold in an international tender organized by
Bayleys Queenstown, the Southland Times said.

The Kingston Flyer is a vintage steam train operating in the South
Island of New Zealand at the southern end of Lake Wakatipu.  The
Kingston Flyer stopped operating since August 2009.


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


* PAKISTAN: Moody's Reports Negative Outlook for Banking System
---------------------------------------------------------------
The fundamental credit outlook for the Pakistani banking sector is
negative, reflecting challenging operating conditions as a result
of the continued economic slowdown, domestic security instability
and the weak sovereign position of Pakistan.  However, the banking
system remains relatively resilient overall, says Moody's
Investors Service in its new Banking System Outlook on Pakistan.

Moody's negative outlook for the Pakistani banking system
expresses the rating agency's view on the likely future direction
of fundamental credit conditions in the industry over the next 12
to 18 months.  It does not represent a projection of rating
upgrades versus downgrades.

"Overall credit conditions in Pakistan remain unfavorable as the
security situation hinders both foreign and domestic confidence,
lending rates are high, the political environment remains fragile
and structural impediments in the supply of power and gas
persist," says Christos Theofilou, a Moody's Analyst and author of
this report.

Amid the challenging operating conditions, Pakistan's banks have
become more risk-averse, preferring the higher perceived security
of government-related or backed loans and investments.  However,
given the low rating of these assets (B3), Moody's views the
banks' high concentrations to government and government-related
entities as a significant rating constraint.  Government ownership
in the three largest banks also raises related-party and quasi-
related party risk concerns.

Asset quality has traditionally been an issue for the rated
Pakistani banks, weighing on their balance sheets and restricting
any upgrades.  Problem loans have leaped in recent quarters and
the success of loan recovery, restructuring and rescheduling
operations will play an important role in future asset quality
levels and any additional provisioning requirements.

Capitalization metrics do not indicate any imminent threats to the
banking system's solvency, ensuring a level of stability amid the
more volatile operating environment.  Nonetheless, Moody's
believes the banks' equity is compromised to a certain extent and
their capacity to absorb losses or any major unexpected credit
shocks is now lower than what it was a couple of years ago.  The
rated banks' liquidity profiles are adequate and are a positive
rating driver, while they all have strong franchise positions in
the domestic market.  Their profitability indicators also remain
strong, despite coming under pressure and are in fact commensurate
with those of higher-rated banks in other markets.

Looking ahead, Moody's expects both profitability ratios and asset
quality metrics to remain under pressure despite the downturn
forecasted to have bottomed out.  The strength of the economic
recovery, a material drop in the still high lending rates and the
success of banks in mobilizing fresh low-cost deposits should play
an important role in the timing and magnitude of any meaningful
rebound in private sector loan growth and an improvement in asset
quality.

"Despite the negative credit outlook, all of the Pakistani bank
financial strength ratings have stable outlooks, as strong
capitalization levels and adequate liquidity profiles ensure a
level of stability.  However, if the economic recovery is sluggish
or Pakistan's repayment capacity is impaired, leading to a further
deterioration in the rated banks' financials, downward rating
pressure may result," cautions Mr. Theofilou.


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


ASUSTEK COMPUTER: To Spinoff Pegatron Unit by June 1
----------------------------------------------------
Reuters, citing Taiwan's Commercial Times, reports that Asustek
Computer Inc.'s board approved a plan to spin off its fully owned
manufacturing subsidiary Pegatron Technology Corp. by June 1, a
month earlier than anticipated.

Reuters relates the newspaper said the spinoff could be listed by
June 24.

According to Reuters, Asustek will reduce its holding in Pegatron
to 25%, a move to reduce any conflict of interest between the two
sides.  Reuters notes Asustek said last month it would cut the
number of shares issued by 85%.

ASUSTeK Computer Inc. -- http://www.asus.com.tw/-- is principally
engaged in the provision of computers, communications and consumer
electronics (3C) solutions.  The Company offers desktop
motherboards, server motherboards, three-dimension graphics
display cards, audio cards, laptops, servers, smart personal
digital assistant (PDA) mobile phones, liquid crystal displays
(LCDs), LCD televisions, broadband communication products, compact
disc read-only memory (CD ROM) drives, digital versatile disc
(DVD) drives, disc carving machines and Eee personal computers
(PCs), among others.  The Company distributes its products in
domestic market and to overseas markets, including the United
States, Canada, Asia Pacific, Europe and Africa.

                          *     *     *

As of January 4, 2010, Asustek Computer continues to carry
Fitch Ratings 'BB+' long-term foreign currency issuer default
ratings.


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


* BOND PRICING: For the Week December 28, 2009 to January 1, 2010
-----------------------------------------------------------------


Issuer                  Coupon     Maturity   Currency  Price
------                  ------     --------   --------  -----

   AUSTRALIA
   ---------

AMP GROUP FINANC         9.80    04/01/2019   NZD       0.94
ANTARES ENERGY          10.00    10/31/2013   AUD       2.00
AUROX RESOURCES          7.00    06/30/2010   AUD       0.80
BECTON PROP GR           9.50    06/30/2010   AUD       0.50
BOUNTY INDUSTRIE        10.00    06/30/2010   AUD       0.03
CBD ENERGY LTD          12.50    01/29/2011   AUD       0.13
CHINA CENTURY           12.00    09/30/2010   AUD       0.82
FIRST AUSTRALIAN        15.00    01/31/2012   AUD       0.32
GRIFFIN COAL MIN         9.50    12/01/2016   USD      55.00
HEEMSKIRK CONSOL         8.00    04/29/2011   AUD       2.43
JPM AU ENF NOM 1         3.50    06/30/2010   USD       8.25
NATIONAL WEALTH          6.75    06/16/2026   AUD      60.44
NEW S WALES TREA         1.00    09/02/2019   AUD      61.00
NYLEX LTD               10.00    12/08/2009   AUD       0.84
ORCHARD INVEST           7.36    12/15/2010   AUD      29.50
RESOLUTE MINING         12.00    12/31/2012   AUD       0.92
SUN RESOURCES NL        12.00    06/30/2011   AUD       0.31
TIMBERCORP LTD           8.90    12/01/2010   AUD      26.10
VERO INSURANCE           6.15    09/07/2025   AUD      67.76

   CHINA
   -----

JIANGXI COPPER           1.00    09/22/2016   CNY      70.84
SICHUAN CHANGHON         0.80    07/31/2015   CNY      73.19

   HONG KONG
   ---------

RESPARCS FUNDING         8.00    12/29/2049   USD      22.25


   INDIA
   -----

AKSH OPTIFIBRE           1.00    01/29/2010   USD      55.00
GEMINI COMMUNICA         6.00    07/18/2012   EUR      69.00
KEI INDUSTRIES           1.00    11/30/2011   USD      73.75
WANBURY LTD              1.00    04/23/2012   EUR      69.50


   JAPAN
   -----

AIFUL CORP               1.20    01/26/2012   JPY      45.11
AIFUL CORP               1.22    04/20/2012   JPY      45.09
AIFUL CORP               1.50    10/20/2011   JPY      50.12
AIFUL CORP               1.58    05/26/2011   JPY      62.03
AIFUL CORP               1.63    11/22/2012   JPY      43.07
AIFUL CORP               1.74    05/28/2013   JPY      41.06
AIFUL CORP               1.99    03/23/2012   JPY      45.10
AIFUL CORP               1.99    10/19/2015   JPY      40.03
AIFUL CORP               5.00    08/10/2010   USD      73.50
AIFUL CORP               5.00    08/10/2010   USD      73.50
AIFUL CORP               6.00    12/12/2011   USD      52.25
AIFUL CORP               6.00    12/12/2011   USD      52.25
COVALENT MATERIA         2.87    02/18/2013   JPY      52.12
CSK CORPORATION          0.25    09/30/2013   JPY      59.66
JAL SYSTEM               2.94    12/18/2013   JPY      65.67
JAPAN AIRLINES           3.10    01/22/2018   JPY      71.48
JPN EXP HLD/DEBT         0.50    09/17/2038   JPY      56.74
JPN EXP HLD/DEBT         0.50    03/18/2039   JPY      57.27
PROMISE CO LTD           2.06    03/20/2014   JPY      71.58
PROMISE CO LTD           2.10    04/21/2014   JPY      71.17
SHINSEI BANK             3.75    02/23/2016   EUR      74.81
SHINSEI BANK             5.63    12/29/2049   GBP      71.50
TAKEFUJI CORP            4.00    06/05/2022   JPY      53.15
TAKEFUJI CORP            8.00    11/01/2017   USD      25.75
TAKEFUJI CORP            9.20    04/15/2011   USD      64.75
TAKEFUJI CORP            9.20    04/15/2011   USD      64.75
WILLCOM INC              2.35    06/27/2012   JPY      45.33


   MALAYSIA
   --------

ADVANCE SYNERGY          2.00    01/26/2018   MYR       0.70
ALIRAN IHSAN RES         5.00    11/29/2011   MYR       1.28
CRESCENDO CORP B         3.75    01/11/2016   MYR       0.74
DUTALAND BHD             4.00    04/11/2013   MYR       0.35
DUTALAND BHD             4.00    04/11/2013   MYR       0.61
EASTERN & ORIENT         8.00    07/25/2011   MYR       1.03
EASTERN & ORIENT         8.00    11/16/2019   MYR       1.01
HUAT LAI RESOURC         5.00    03/28/2010   MYR       0.43
KRETAM HOLDINGS          1.00    08/10/2010   MYR       1.10
KUMPULAN JETSON          5.00    11/27/2012   MYR       2.34
LION DIVERSIFIED         4.00    12/17/2013   MYR       1.69
MITHRIL BHD              3.00    04/05/2012   MYR       0.59
NAM FATT CORP            2.00    06/24/2011   MYR       0.20
OLYMPIA INDUSTRI         2.80    04/11/2013   MYR       0.18
OLYMPIA INDUSTRI         4.00    04/11/2013   MYR       0.23
PUNCAK NIAGA HLD         2.50    11/18/2016   MYR       0.65
RUBBEREX CORP            4.00    08/14/2012   MYR       1.27
SCOMI GROUP BHD          4.00    12/14/2012   MYR       0.10
TRADEWINDS CORP          2.00    02/08/2012   MYR       0.70
TRADEWINDS PLANT         3.00    02/28/2016   MYR       1.10
TRC SYNERGY              5.00    01/20/2012   MYR       1.29
WAH SEONG CORP           3.00    05/21/2012   MYR       3.21
WIJAYA BARU GLOB         7.00    09/17/2012   MYR       0.28
YTL CEMENT BHD           0.00    11/10/2015   MYR       2.03


   NEW ZEALAND
   -----------

ALLIED FARMERS           9.60    11/15/2011   NZD      53.21
ALLIED NATIONWID        11.52    12/29/2049   NZD      67.00
BBI NTWKS NZ LTD         9.00    11/30/2012   NZD       0.84
BLUE STAR PRINT          9.10    09/15/2012   NZD      73.50
CAPITAL PROP NZ          8.00    04/15/2010   NZD      15.00
CONTACT ENERGY           8.00    05/15/2014   NZD       1.02
FLETCH BUILD FIN         8.85    03/15/2010   NZD       8.00
FLETCHER BUI             8.50    03/15/2015   NZD       8.50
FLETCHER BUILDIN         7.55    03/15/2011   NZD       7.50
GMT BOND ISSUER          7.75    06/19/2015   NZD       0.13
INFRASTR & UTIL          8.50    09/15/2013   NZD      12.50
INFRATIL LTD             8.50    11/15/2015   NZD      11.00
INFRATIL LTD            10.18    12/29/2049   NZD      62.00
KIWI INCOME PROP         8.95    12/20/2014   NZD       1.38
MANUKAU CITY             6.90    09/15/2015   NZD       1.00
MARAC FINANCE           10.50    07/15/2013   NZD       0.97
NZ FINANCE HLDGS         9.75    03/15/2011   NZD      46.91
PROVENCOCADMUS           2.00    04/15/2010   NZD       0.85
SKY NETWORK TV           4.01    10/16/2016   NZD      54.98
SOUTH CANTERBURY        10.43    12/15/2012   NZD       0.75
SOUTH CANTERBURY        10.50    06/15/2011   NZD       0.92
ST LAURENCE PROP         9.25    05/15/2011   NZD      68.85
TOWER CAPITAL            8.50    04/15/2014   NZD       1.01
TRUSTPOWER LTD           8.50    09/15/2012   NZD       7.80
TRUSTPOWER LTD           8.50    03/15/2014   NZD      10.25
UNI OF CANTERBUR         7.25    12/15/2019   NZD       0.94
VECTOR LTD               7.80    10/15/2014   NZD       1.01
VECTOR LTD               8.00    12/29/2049   NZD       7.50


   SINGAPORE
   ---------

BLUE OCEAN              11.00    06/28/2012   USD      29.75
BLUE OCEAN              11.00    06/28/2012   USD      29.75
SENGKANG MALL            8.00    11/20/2012   SGD       0.05
UNITED ENG LTD           1.00    03/03/2014   SGD       1.33
WBL CORPORATION          2.50    06/10/2014   SGD       2.20

   SOUTH KOREA
   -----------

HYNIX SEMICONDUCTOR      7.87    06/10/2014   USD      74.64
SSAMZIE CO LTD           6.00    09/25/2012   KRW      46.75
WOORI BANK               6.20    05/02/2037   USD      73.00

   SRI LANKA
   ---------

SRI LANKA GOVT           7.00    10/01/2023   LKR      70.11




                         *********

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 2010.  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
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