TCRAP_Public/100107.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Thursday, January 7, 2010, Vol. 13, No. 004

                            Headlines



A U S T R A L I A

ESTATE PROPERTY: ASIC Bans Two Auditors for One Year
GRIFFIN COAL: Attracts Big Local and International Buyers
GRIFFIN COAL: Nomura Says U.S. Bondholders May Get 40% Recovery
KLEENMAID GROUP: Administrator Settles Brand Name Dispute


H O N G  K O N G

CITY TELECOM: Free TV License Won't Affect S&P's 'BB-' Rating
HONEST RIVER: Members' Final Meeting Set for February 3
HOME MART: Commences Wind-Up Proceedings
HORSBURG TRADING: Members' Final Meeting Set for February 5
INTERDEAN (FAR EAST): Commences Wind-Up Proceedings

INTERNATIONAL MOULDS: Creditors' Proofs of Debt Due January 22
JETFLOW LIMITED: Members' Final Meeting Set for February 1
JWC LIMITED: Creditors' Meeting Set for January 11
KING TO: Creditors' Proofs of Debt Due January 31
LI & FUNG MANAGEMENT: Commences Wind-Up Proceedings

LI & FUNG MARKETING: Commences Wind-Up Proceedings
LEO SHIP: Yan and Haughey Step Down as Liquidators
LOYAL FIELD: Members' Final Meeting Set for February 3
LUMENA RESOURCES: S&P Gives Negative Outlook; Affirms 'BB-' Rating
MEI WAH: Placed Under Voluntary Wind-Up Proceedings

MFML LIMITED: Liu and Kwan Appointed as Liquidators


I N D I A

BINDALPAPERS: CARE Cuts Ratings on INR219.75cr Loan to 'CARE BB'
CELEBRITY FASHIONS: ICRA Puts 'LB-' Rating on INR1.56BB Term Loan
GODHANI GEMS: CARE Pares Rating on LT Bank Debts to 'CARE BB+'
K.K. SILK: ICRA Places 'LBB' Rating on INR186.1 Mil. LT Bank Debts
MYK SPINNING: ICRA Reaffirms 'LBB+' Rating on INR69.5MM Term Loan

NEEPAZ V: Fitch Assigns National Long-Term Rating at 'B'
S.C. CHEMICALS: ICRA Assigns 'LBB' Rating on INR3.86MM Term Loans
SHAKTI INTERNATIONAL: CRISIL Assigns 'BB+' Rating on INR70MM Debts
SRINATH SPINNERS: CRISIL Rates INR15.3 Mil. Term Loan at 'BB-'
SURAJ PRODUCTS: CRISIL Assigns 'BB+' Ratings on Various Bank Debts

TULSI EXTRUSION: CARE Revises Rating on Bank Debts to 'CARE BB+'
TUNGABHADRA POWER: CRISIL Reaffirms 'D' Rating on INR415Mm LT Loan
UNITECH AUTOMOBILES: CRISIL Rates INR370 Mil. Cash Credit at 'B'
VICTORY SPINNING: CRISIL Places 'B-' on INR57.9MM Long Term Loan
VIPUL IMPEX: CARE Revises Rating on INR105cr LT Bank Facilities


I N D O N E S I A

CENTRAL PROTEINAPRIMA: Fitch Retains Negative Watch on 'CC' Rating


J A P A N

JAPAN AIRLINES: AMR Willing to Invest Even in Bankruptcy
JAPAN AIRLINES: ETIC Aims to Cut JAL's Liabilities by JPY730 Bil.


K O R E A

GENERAL MOTORS: Liquidity Concerns Pull GM Daewoo's 2009 Sales
HYNIX SEMICONDUCTOR: UAE Shows Interest in Buying Stake
KUMHO ASIANA: Creditors Okay Kumho Industrial 3-Month Debt Freeze
KUMHO ASIANA: Creditors Agree to Freeze Units' Debts for 1 Year


N E W  Z E A L A N D

AIR NEW ZEALAND: Manager Joined Into Price Fixing Case
STRATEGIC FINANCE: In Talks with Trustee; Misses First Repayment


S I N G A P O R E

GANDAK PRIVATE: Creditors' Proofs of Debt Due February 5
ORIENT TELECOM: Court to Hear Wind-Up Petition on January 15
PACIFIC COATINGS: Creditors' Proofs of Debt Due February 7


T H A I L A N D

THAI AIRWAYS: Chairman Steps Down Over Excess Baggage Scandal


X X X X X X X X

* Low Order Levels, Lack of Financing to Lead to Yard Closures




                         - - - - -


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A U S T R A L I A
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ESTATE PROPERTY: ASIC Bans Two Auditors for One Year
----------------------------------------------------
The Sydney Morning Herald reports that two auditors who held
senior roles in scrutinizing the accounts of collapsed developer
Estate Property Group have each accepted bans of a year from the
corporate regulator for inadequate work.

According to the report, Christopher Chandran and Scott Whiddett,
both partners at the Sydney office of the Moore Stephens national
accounting practice, have signed enforceable undertakings with the
Australian Securities and Investments Commission not to practise
as auditors for 12 months.

The report says Messrs. Chandran and Whiddett will also undertake
15 hours of extra professional education and have the next five
audits they carry out in the year after their ban reviewed by an
ASIC-approved auditor.  According to the report, the pair said
they acknowledged ASIC's concerns but did not agree with its
findings. Nonetheless, they agreed to sign the enforceable
undertakings to resolve the case against them.

Messrs. Chandran and Whiddett were the respective lead auditors
for Estate Property Group for the company's financial years ending
June 30, 2006 and 2005, the Herald states.

Estate Property Group and its 21 subsidiaries, including ACR, went
into voluntary administration on May 28, 2007.  ACR was the fund-
raising arm of the group.  It raised funds through a series of
nine prospectuses offering unsecured deposit notes to the
investing public between April 2000 and December 2006.

According to ASIC, ACR lent the funds it raised to other EPG
subsidiaries that used the funds for the purchase and development
of properties.  As at May 28, 2007, ACR had lent AU$332 million of
noteholders' funds to 13 of its property owning subsidiaries.

On September 17, 2007, the Administrator of EPG entered into a
Deed of Company Arrangement (DOCA) with EPG and ACR.  The DOCA was
to return to ACR unsecured noteholders approximately 59 cents in
the dollar.  As at November 27, 2009, creditors of ACR had
received a total of 47 cents per dollar.  Further distributions
are forecast until July 2013.


GRIFFIN COAL: Attracts Big Local and International Buyers
---------------------------------------------------------
Matt Chambers and Andrew Main at The Australian report that big
local and international companies have already shown interest in
snapping up Griffin Coal Mining Co. or taking part in a
restructuring.

According to The Australian, administrator KordaMentha said
Wesfarmers -- the most logical buyer according to analysts -- was
far from the only potential bidder for Griffin.

"We've been overwhelmed by expressions of interest from both
domestic and international participants who are at different
stages of evaluating some form of transaction," The Australian
quoted KordaMentha partner Brian McMaster as saying.

The Australian relates Mr. McMaster declined to elaborate, but
said some of the interest was from "pretty serious players".

                    AU$4 Million Pre-payments

The Sydney Morning Herald reports that the West Australian
government has pledged to "risk" AU$4 million in pre-payments for
coal to Griffin Coal.

The Herald relates Premier Colin Barnett on Wednesday said the $4
million taxpayer-funded pre-payment would be used to cover costs
to deliver two weeks worth of coal to Verve Energy.  This should
be sufficient time to enable administrators to decide the
company's future, the Herald notes.

Mr. Barnett, as cited by the Herald, said administrators had
requested the money, and while it was risky, it was "a risk worth
taking" to protect jobs.

"No, this is not a bailout.  Maybe, it's a semantic difference,"
the Herald quoted Mr. Barnett as saying.  "We are doing what I
believe is responsible to allow the company to continue to
operate, and hopefully during that period they can find a buyer
and return stability to the situation."

The Troubled Company Reporter-Asia Pacific, citing Bloomberg News,
reported Monday 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 US$475 million and also missed a
payment to Australia's tax authority.

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.


GRIFFIN COAL: Nomura Says U.S. Bondholders May Get 40% Recovery
---------------------------------------------------------------
Sarah McDonald at Bloomberg News reports that Nomura Holdings Inc.
said Griffin Coal Mining Co. bondholders may recover less than 40
cents on the dollar after the Australian company defaulted on $475
million of notes and appointed an administrator.

Citing Nomura sales and trading desk analysts led by Pradeep
Mohinani's note to clients on Wednesday, Bloomberg relates that
investors in Western Australia's oldest coal mining company may
receive from "mid 30s" to "high 40s" depending on the price its
assets fetch.

"The recovery value of the U.S. bondholders will hinge largely on
the valuation of the company," Bloomberg cited the Nomura
analysts.  "Uncertainty remains as to whether the company would be
bought at market price and whether the latest valuation of its
mining leases would be substantially lower than the figure as of
June 2009."

According to Bloomberg, Energy Minister Peter Collier said
Western Australia won?t give Griffin financial aid and the most
likely outcome for the company is a change in ownership.
Bloomberg relates Griffin said Dec. 11 that it would ask
bondholders to agree to waive their rights to take enforcement
action after it missed a bond payment due Dec. 1, citing "a
temporary liquidity shortage."

The International Swaps & Derivatives Association said that a
committee of dealers and investors will decide whether there has
been a so-called bankruptcy credit event that will trigger payouts
on credit-default swaps linked to the company, Bloomberg reports.
Bank of America Merrill Lynch asked for the ruling Wednesday,
according to Bloomberg.

The Troubled Company Reporter-Asia Pacific, citing Bloomberg News,
reported Monday 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 US$475 million and also missed a
payment to Australia's tax authority.

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.


KLEENMAID GROUP: Administrator Settles Brand Name Dispute
---------------------------------------------------------
Kerrin Binnie at ABC News reports that a dispute over the future
use of the Kleenmaid brand name has been settled with private
equity firm Compass Capital Partners given the right to revive the
Kleenmaid brand by administrator, Deloitte.

A Deloitte spokesman told ABC News that an agreement has been
reached where Compass can use the Kleenmaid name but has to stop
using and destroy any customer information it already has.

Founded in 1985, Kleenmaid Group -- http://www.kleenmaid.com.au/
-- sells kitchen and laundry appliances.

The Troubled Company Reporter-Asia Pacific reported on April 13,
2009, that Kleenmaid Group has been placed into administration.
The company appointed Deloitte partners John Greig, Richard Hughes
and David Lombe as voluntary administrators.  A TCR-AP report on
May 26, 2009, said the creditors of Kleenmaid Group voted to wind
up the company at a meeting in Brisbane.

The TCR-AP, citing a report posted at news.com.au, said that the
administrators had recommended that Kleenmaid be put into
liquidation, saying the company may have been insolvent as early
as June 2007.  The administrators said Kleenmaid creditors are
owed AU$102 million, which included AU$3 million owed to Kleenmaid
employees.


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H O N G  K O N G
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CITY TELECOM: Free TV License Won't Affect S&P's 'BB-' Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services said that the rating on City
Telecom (HK) Ltd. (BB-/Stable/--) is not affected by the company's
application for a domestic free television program service license
in Hong Kong.  CTI estimates it will invest up to Hong Kong dollar
(HK$) 210 million before reaching positive free cash flow.  In
S&P's view, the estimated investment is manageable, as CTI has
generated more than HK$130 million in positive free operating cash
flow in each of the past three fiscal years.  In addition, the
company had a cash balance of HK$221.1 million at the end of
fiscal 2009 (ended Aug. 31).

The application may, however, signal a diversification in CTI's
business focus.  S&P will reassess the company's business and
financial risk profiles should it be granted the license.  Free
television broadcast in Hong Kong is a difficult market, as
evidenced by the weak financial performance of one of the two
existing players and the pressure on the sector's profitability.
If the new investment is significantly higher than currently
expected and the company has to rely on borrowings to fund the
investment, the rating may come under pressure.


HONEST RIVER: Members' Final Meeting Set for February 3
-------------------------------------------------------
Members of Honest River Limited, will hold their final general
meeting on February 3, 2010, at 10:00 a.m., at the 12/F, Fee Tat
Commercial Centre, No. 613 Nathan Road, Kowloon, in Hong Kong.

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


HOME MART: Commences Wind-Up Proceedings
----------------------------------------
Members of Home Mart Limited, on Dec. 23, 2009, passed a
resolution to voluntarily wind-up the company's operations.

The company's liquidators are:

         Rainier Hok Chung Lam
         Anthony David Kenneth Boswell
         Prince's Building, 22/F
         Central, Hong Kong


HORSBURG TRADING: Members' Final Meeting Set for February 5
-----------------------------------------------------------
Members of Horsburg Trading Company Limited will hold their final
general meeting on February 5, 2010, at 10:15 a.m., at Level 28,
Three Pacific Place, 1 Queen's Road East, in Hong Kong.

At the meeting, Natali K M Seng, the company's joint and several
liquidator, will give a report on the company's wind-up
proceedings and property disposal.


INTERDEAN (FAR EAST): Commences Wind-Up Proceedings
---------------------------------------------------
Members of Interdean (Far East) Limited on December 16, 2009,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidators are:

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


INTERNATIONAL MOULDS: Creditors' Proofs of Debt Due January 22
--------------------------------------------------------------
Creditors of International Moulds Company Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by January 22, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on December 22, 2009.

The company's liquidators are:

         Chan Mi Har
         Ying Hing Chiu
         Three Pacific Place, Level 28
         1 Queen's Road East
         Hong Kong


JETFLOW LIMITED: Members' Final Meeting Set for February 1
----------------------------------------------------------
Members of Jetflow Limited, which is in members' voluntary
liquidation, will hold their final meeting on February 1, 2010, at
10:00 a.m., at Room 1701, Olympia Plaza, 255 King's Road, North
Point, in Hong Kong.

At the meeting, Lui Wan Ho and To Chi Man, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.


JWC LIMITED: Creditors' Meeting Set for January 11
--------------------------------------------------
Creditors of JWC Limited will hold their meeting on January 11,
2010, at 2:30 p.m., for the purposes provided for in Sections 241,
242, 243, 244 of the Companies Ordinance.

The meeting will be held at 2001 A2 Nam Fung Centre, 264-298
Castle Peak Road, Tsuen Wan, New Territories, in Hong Kong.


KING TO: Creditors' Proofs of Debt Due January 31
-------------------------------------------------
Creditors of King To (H.K.) Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by January 31, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on December 16, 2009.

The company's liquidator is:

         Lam Ying Sui
         Allied Kajima Building, 10/F
         138 Gloucester Road
         Wanchai, Hong Kong


LI & FUNG MANAGEMENT: Commences Wind-Up Proceedings
---------------------------------------------------
Members of Li & Fung Management Services Limited, on Dec. 23,
2009, passed a resolution to voluntarily wind-up the company's
operations.

The company's liquidators are:

         Rainier Hok Chung Lam
         Anthony David Kenneth Boswell
         Prince's Building, 22/F
         Central, Hong Kong


LI & FUNG MARKETING: Commences Wind-Up Proceedings
--------------------------------------------------
Members of Li & Fung Marketing (Hong Kong) Limited, on Dec. 23,
2009, passed a resolution to voluntarily wind-up the company's
operations.

The company's liquidators are:

         Rainier Hok Chung Lam
         Anthony David Kenneth Boswell
         Prince's Building, 22/F
         Central, Hong Kong


LEO SHIP: Yan and Haughey Step Down as Liquidators
--------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey stepped down as
liquidators of Leo Ship Management Limited on December 22, 2009.


LOYAL FIELD: Members' Final Meeting Set for February 3
------------------------------------------------------
Members of Loyal Field Limited, will hold their final general
meeting on February 3, 2010, at 11:00 a.m., at the 12/F, Fee Tat
Commercial Centre, No. 613 Nathan Road, Kowloon, in Hong Kong.

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


LUMENA RESOURCES: S&P Gives Negative Outlook; Affirms 'BB-' Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised the
rating outlook on Lumena Resources Corp. to negative from stable.
At the same time, Standard & Poor's affirmed its 'BB-' long-term
corporate credit rating on Lumena and the 'BB-' issue rating on
the company's US$250 million callable senior unsecured notes due
2014.

S&P revised the outlook to negative following Lumena's
announcement that its major shareholder and chairman, Mr. Suolang
Duoji, has charged about 20.51% of the company's total issued
share capital to Bank of China International as security for a
loan facility.

"In S&P's view, Lumena's credit risk profile could come under
further pressure if the chairman continues to utilize financing
avenues that have a financial and operational impact on the
company -- including increasing dividends and loans to
shareholders -- and such actions may lead us to lower the rating
on Lumena," said Standard & Poor's credit analyst Judy Kwok-
Cheung.

The share charge that Mr. Suolang, initiated on Dec. 27, 2009,
through Nice Ace Technology Ltd., increases the risk that Lumena
will trigger a change-of-control clause under the 2014 bond
covenants, increasing uncertainty over Lumena's liquidity
position.  If Nice Ace is unable to repay the recently closed loan
facility and Bank of China International takes control of the
20.51% of ordinary shares in Lumena, the company could need to
repurchase the 2014 bonds at 101%.

"We may lower the rating on Lumena by multiple notches if the
change-of-control clause is triggered and leads the company's weak
business risk profile to further deteriorate.  In S&P's opinion,
if the clause is triggered, the company may not have the required
resources to improve future profitability, while its financial
flexibility is likely to weaken due to the damage to its
creditability in the capital markets," said Ms.  Kwok-Cheung.

Standard & Poor's expects Lumena's currently high profit margin to
remain volatile as the company operates in a high growth and
evolving market environment.  Lumena is the second-largest natural
thenardite producer in China and in the world by capacity.
Nevertheless, the rating on Lumena continues to be supported by
the company's leading position in this small niche market, its low
cost profile, and good resources base that are reflected in its
currently high profit margins.  These strengths are balanced by
Lumena's small niche market, exposure to high technology risk, low
barriers to entry, and customer concentration.


MEI WAH: Placed Under Voluntary Wind-Up Proceedings
---------------------------------------------------
At an extraordinary general meeting held on December 11, 2009,
creditors of Mei Wah Water & Electrical Engineering Limited
resolved to voluntarily wind up the company's operations.

The company's liquidator is:

         Pang Wai Kui
         Ritz Plaza, Suite A, 12/F
         122 Austin Road
         TST, Kowloon
         Hong Kong


MFML LIMITED: Liu and Kwan Appointed as Liquidators
---------------------------------------------------
Liu Chi Tat Stephen and Kwan Pak Kong on December 21, 2009, were
appointed as liquidators of MFML Limited.

The liquidators may be reached at:

         Liu Chi Tat Stephen
         Kwan Pak Kong
         C C Wu Building
         Room 1304, 13/F
         302-308 Hennessy Road
         Wanchai, Hong Kong


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BINDALPAPERS: CARE Cuts Ratings on INR219.75cr Loan to 'CARE BB'
----------------------------------------------------------------
CARE has revised the rating assigned to the long-term bank loan
facilities of Bindal Papers Ltd of INR 219.75 crore from
'CARE BBB-' to 'CARE BB'. This rating is applicable for facilities
having tenure for more than one year. Facilities with 'Double B'
rating are considered to offer inadequate safety for timely
servicing of debt obligations and carry high credit risk.

Further, CARE has revised the rating assigned to the short-term
bank loan facilities of Bindal Papers Ltd (BPL) of INR2.34 crore
from 'PR3' to 'PR4'.  This rating is applicable for facilities
having tenure up to one year.  Facilities with 'PR4' rating would
have inadequate capacity for timely payment of short-term debt
obligations and carry very high credit risk. Such facilities are
susceptible to default.

                      Amount
  Instrument         (INR cr)         Ratings
  ----------          -------         -------
  Term Loan          190.00          'CARE BB'
  Cash Credit         28.75          'CARE BB'
  BG                   1.00          'CARE BB'
  LC/BG                2.34          'PR4'

Rating Rationale

The rating revision considers company's history of debt
restructuring, delay in commencement of the project, weakened
financial profile characterized by low profitability during
H1FY10, leading to liquidity constraints. The ratings however,
draw comfort from long experience of the promoters in the
industry, well-established marketing and distribution network of
the group and cost-effective production set-up.  Going forward,
BPL's ability to scale-up operations and profitability, further
weakening of financial profile and cyclical nature of the paper
and pulp industry would be the key rating sensitivities.

Bindal Paper Ltd was incorporated in May 2006 to set up a writing
& printing paper manufacturing facility of 90,000 TPA capacity and
a captive 15 MW co-generation power plant at Muzaffarnagar, UP.
The project commenced from May 2009 as against originally
envisaged from mid March 2009.

The total project cost incurred was INR295 crore and was financed
with a debt-equity mix of 2:1, comprising debt of INR190 crore and
balance INR85 crore being promoter contribution in the form of
equity/unsecured loans.

As per provisional half year results ending September 2009 (five
months of operations from May 2009 to September 2009), the company
earned a PBT of INR1 crore on a net sales of INR36 crore.  Due to
delay in implementation and subsequent non-stabilization of the
project, the company faced stressed liquidity.


CELEBRITY FASHIONS: ICRA Puts 'LB-' Rating on INR1.56BB Term Loan
-----------------------------------------------------------------
ICRA has assigned an 'LB-' rating to the INR 1568.0 million term
loans and INR 200.0 million long term fund-based limits of
Celebrity Fashions Limited.  ICRA has also assigned an A4 rating
to INR 470.0 million short term non-fund based facilities and
INR 400.0 million short term fund based bank limits of CFL.

The ratings are constrained by the weak financial profile of the
Company with a high gearing of 15.0x as on March 31, 2009,
negative coverage indicators, continuing losses and substantial
erosion in net worth.  CFL's financial profile remains vulnerable
to exchange rate fluctuations and MTM losses on derivative
contracts entered by the Company.  The industry environment
remains highly competitive with limited bargaining power for the
company when dealing with major export customers.  The Company's
profitability declined sharply in the year 2008-09 due to
disruption of operations at its main plant, transfer of orders by
major customers and drop in productivity levels.  The ratings
however take comfort from the promoters experience in the line of
business and relationships with international brands in its core
area of operations, garment exports. CFL generated around 29% of
its operating income from domestic sales made under its brand
"Indian Terrain" during 2008-09, which acts a de-risking element
in the Company's business model.  ICRA notes that the bank loans
of CFL have been restructured recently and there have been delays
in debt servicing by the Company till August, 2009.

Incorporated on April 28, 1988 as Celebrity Fashions Private
Limited in Chennai,.CFL is engaged in designing, manufacturing and
selling garments.  It exports these garments to international
markets for brands and department stores and caters to the
domestic market through its brand "Indian Terrain".  The
"Celebrity Group" consisted of few other companies engaged in the
same line of business, which have been subsequently merged with
CFL.

CFL became a Public Limited Company on September 12, 2005 and came
out with an IPO in December 2005 at a price of INR 180/share (face
value INR 10) thereby raising INR 81.9 crore and getting itself
listed on the BSE and NSE.  The IPO proceeds were to be used for
ACL acquisition and setting up a new factory, besides other
requirements like working capital and expansion projects. Before
the IPO, CFL made pre-IPO placement to Bennett Coleman & Company,
New Bharat Vernon Private Equity and Reliance Capital.

Recent performance

The Company reported a net loss after tax of INR170 million on
operating income of INR1346 million for the six months ending
September 30, 2009, against net loss after tax of INR 424 million
on operating income of INR913 million for the six months ending
September 30, 2008.


GODHANI GEMS: CARE Pares Rating on LT Bank Debts to 'CARE BB+'
--------------------------------------------------------------
CARE has downgraded the rating assigned to the Long-term Bank
Facilities of Godhani Gems from 'CARE BBB-' to 'CARE BB+'.  The
long-term rating is applicable for facilities having tenure of
more than one year.  Facilities with this rating are considered to
offer inadequate safety for timely servicing of debt obligations.
Such facilities carry high credit risk.

CARE assigns '+' or '-' signs to be shown after the assigned
rating (wherever necessary) to indicate the relative position
within the band covered by the rating symbol.

The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo change in case of withdrawal of capital or
the unsecured loans brought in by the partners in addition to
the financial performance and other relevant factors.

Rating Rationale

The rating revision takes into account the deterioration in the
financial performance of the firm in FY09 characterized by decline
in profitability and liquidity constraints faced due to delay in
export realizations, foreign exchange losses and the slowdown in
major export markets.  The rating is also constrained by high
overall gearing ratio, high proportion of receivables to total
sales and long working capital cycle.

The rating continues to derive strength from the vast experience
of partners in the diamond business and exports of the firm to
geographically diversified countries.

Ability of the firm to improve its financial position and timely
recovery of receivables in the external environment characterized
by subdued demand for gems and jewellery in the major export
markets are the key rating sensitivities.

                         About Godhani Gems

Godhani Gems, established in 1995, is a partnership firm engaged
in import of rough diamonds, processing and export of cut and
polished diamonds to destinations like UAE, USA, Thailand and
Israel.  The financial performance of GG in FY09 was characterized
by 12% YoY decline in the sales to INR386 crore, mainly attributed
to the global slowdown and a steep fall in PAT from INR11 crore in
FY08 to INR3 crore in FY09 on account subdued PBILDT and increased
interest costs. GG's overall gearing ratio stood at 2.46 times as
on March 31, 2009 and working capital cycle stood at 225 days for
FY09 due to delay in collection from customers and inventory pile
up, especially in the second half of FY09.  The liquidity crunch
also led to delays in servicing of dues to bankers.


K.K. SILK: ICRA Places 'LBB' Rating on INR186.1 Mil. LT Bank Debts
------------------------------------------------------------------
ICRA has assigned the 'LBB' rating to INR 186.1 million long term
fund based bank lines of K.K. Silk Mills Private Limited (?KKSM'
or the company.  The outlook for the long term rating is stable.
ICRA has also assigned the A4 rating to INR 19.0 million non fund
based short term bank lines of the company.

The ratings are constrained by weak financial indicators
characterized by low profitability and strained cash flows of the
company.  The company has witnessed low profitability due to
dominance of trading operations which generate low margins as
compared to manufacturing of fabric.  Cash flows of the company
have remained negative due to low profitability and interest cost
on debt availed for capital expenditure.  The ratings are further
constrained by highly geared capital structure primarily due to
increase in utilization of debt for capital expenditure and
supporting working capital requirements of the company. ICRA notes
that KKSM operates in a fragmented sub segment of the textile
industry, dominated by small and medium unorganized companies
resulting in high competitive pressure.  The company with its
small scale of operations faces restricted economies of scale.
ICRA also notes that the company has in the past overdrawn its
working capital limits but draws comfort from the fact that the
limits were regularized within time frame allowed by its lender.
The ratings favorably take into account experience of the
promoters in the textile industry and established business
relationship with key clientele.

Long term outlook is stable as revival of demand in textile
industry coupled with likely increase in share of revenue from
manufacturing activities of the company would result in
improvement of profitability and cash flow indicators.

                          About K.K. Silk

K.K. Silk Mills (erstwhile Manish Weaving Industries Private
Limited) was promoted by Mr. Kantilal Shah in 1992 to manufacture
and trade in fabrics for suitings and shirtings.  The company was
rechristened as K.K. Silk Mills Private Limited in 2003 without
any change in management and nature of business undertaken.  The
company manufactures and deals in cotton, polyester and blended
fabrics.  KKSM owns 100 looms at Umbergaon in Gujarat with an
installed capacity of -57.2 lakh meters per annum.

Recent Results

For half year ended September 30, 2009, the company recorded a PAT
of INR4.5 million on operating income of INR319.2 million (based
on unaudited numbers).


MYK SPINNING: ICRA Reaffirms 'LBB+' Rating on INR69.5MM Term Loan
-----------------------------------------------------------------
ICRA has re-affirmed the 'LBB+' rating assigned to the INR69.5
million term loan and the INR47.5 million fund-based limits of MYK
spinning Industries Limited.  ICRA has assigned a stable outlook
to the long-term rating.  ICRA has also re-affirmed the A4+ rating
assigned to the INR35 million non-fund based limits of MYKSIL.

The ratings are constrained by the small scale of operations of
MYKSIL; its moderate customer concentration and stretched capital
structure on account of debt-funded capital expenditure towards
expansion and modernization.   The industry is characterized by
intense competition with a fragmented market structure; and is
highly vulnerable to fluctuations in exchange rates and raw
material prices.  The ratings also factor in the shift in business
of MYKSIL from medium to finer counts of yarn with  better demand
visibility in the market in the long term; established
relationships with reputed clients; the significant experience of
the promoters and the support rendered by the group companies.

                        About MYK Spinning

Promoted by Mr. P. Muni Krishna (part of the Parasakthi group),
MYK Spinning Industries Limited is engaged in the manufacture of
cotton yarn.  The company manufactures cotton yarn from 40's
counts to 80's counts.  The company procures cotton from ginners
within AP and uses medium and long staple cotton of MCU and DCH
variety.  The company is in the process of modernization of the
mill by replacing all of the older machines with newer machines.


NEEPAZ V: Fitch Assigns National Long-Term Rating at 'B'
--------------------------------------------------------
Fitch Ratings has assigned Neepaz V Forge (India) Limited a
National Long-term rating of 'B(ind)' with a Stable Outlook.
Fitch has also assigned National ratings of 'B(ind)' to NVFL's
term loans aggregating INR1.1 billion and its fund based limits
aggregating INR240.0 million.  At the same time, the agency has
assigned its non fund based limits aggregating INR173.6 million a
National Short-term rating of 'F4(ind)'.

The ratings reflect the low capacity utilization of NVFL during
FY09 resulting in an EBITDA loss of INR1.64m.  The ratings are
further constrained by a delay in the completion of the project to
set up an 8000 ton press, which was expected to be finished by
April 2009, due to financial tie up.  The project was eventually
implemented and the trial run has been done in October 2009;
however, the delay resulted in NVFL's need to restructure its debt
with banks, which further constrains its ratings.  The rating
assigned reflects the post restructuring profile of the company
and Fitch notes that the restructuring has not resulted in
significant impairment of the contractual terms for the creditors,
with the revised terms envisaging an extension in maturity.
However in Fitch's view, the restructuring was essential for NVFL
to avoid a liquidity crunch which would have otherwise resulted in
a default on its debt obligations.

NVFL's prospects benefit from the vendor approvals received from
original equipment manufacturers like Tata Motors Limited, Ashok
Leyland, Greaves Cotton Limited and Spicer India Limited for the
supply of forged auto components and from Power Grid Corporation
of India Ltd for supply of non forging components.  The ratings
also draw significant comfort from the expected support from
Adhunik Metaliks Limited ('A-(ind)'/'F2+(ind)') which holds a
73.8% stake in NVFL.  Fitch believes that given the strong
operational linkage between NVFL and AML, reflected in the latter
being the source of 90%-95% of NVFL's raw material, support will
be forthcoming should the need arises.

The commencement of commercial production with capacity
utilisation above 75%, coupled with an improvement in EBITDA
margins resulting in net leverage below 10x, could be positive for
NVFL's ratings.  Conversely, further delays in the commencement of
commercial production and/or dilution of stake by AML could impact
its ratings negatively.

NVFL has achieved revenues of INR32.33 million in FY09 (FY08:
INR17.13 million), and has a total debt of INR1.07 billion as at
FYE09.  Its debt comprises of INR851.35 million in term loans,
INR202.63 million in working capital finance and INR19.8 million
in unsecured loans.  NVFL reported negative net free cash flow of
INR433.59 million in FY09 (FY08:INR349.7 million) mainly due to
its ongoing capex program, and Fitch expects the net free cash
flow to remain negative in the short to medium-term.


S.C. CHEMICALS: ICRA Assigns 'LBB' Rating on INR3.86MM Term Loans
-----------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the Rs 3.86 million
outstanding  term loans; the INR 10 million sub-limit for cash
credit and the INR 40 million standby line of credit facility of
S.C. Chemicals.  ICRA has also assigned a short term rating of A4
to the INR 200.0 million fund-based and the INR 1.5 million non-
fund based bank limits of SCC.  The outlook on the long term
rating is stable.

The ratings reflect the weak financial profile of the Firm as
characterized by low profit margins, high working capital
intensity resulting in high gearing levels and below average debt
protection metrics; the low value added nature of its product
portfolio; vulnerability of margins to commodity price volatility
and forex risks; and the relatively high client concentration with
a few Chinese companies accounting for bulk of the Firm's sales.
Besides, in the current fiscal the Firm's operations have been
under pressure due to the adverse policy environment for SEZ based
units, which is likely to result in depressed sales volume and
lower profitability margins for the year. However, ICRA takes note
of the considerable experience of SCC's promoters in the castor
oil business; the Firm's locational advantage due to proximity to
both raw material source (with Gujarat being the hub for castor
seed production) and seaports (for export of castor oil) and the
overall favorable demand prospects for castor oil in the
export market.  ICRA also notes that being a partnership firm, SCC
faces certain inherent risks like limited ability to raise equity
capital and risk of dissolution upon the death/ retirement/
insolvency of partners.

                       About S.C. Chemicals

S.C. Chemicals, promoted by the Parekh family is based out of
Gandhidham (Gujarat) and is engaged in the manufacture and export
of castor oil.  The Firm's sole manufacturing unit is located at
the Kandla SEZ.  However since the unit was set up before the area
was declared as an SEZ, SCC is not eligible for any of the SEZ
benefits. SCC is constituted as a partnership firm with 14
partners (comprising members, friends and associates of the Parekh
family) and its operations are headed by Mr. Kushalraj Parekh, one
of the first generation entrepreneurs of the family. The promoters
hold considerable experience in the castor oil trade and have been
present in various business activities in the Kutch region for
more than two decades.  The group has about 14 entities under its
fold, which are engaged in diverse activities like trading of
oilseeds, manufacture of salt, plastic products, timber, agency
work etc. In 2008-09, the Firm reported a Net Loss of INR 4
million on an Operating Income of INR 1158 million.


SHAKTI INTERNATIONAL: CRISIL Assigns 'BB+' Rating on INR70MM Debts
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4+' to the bank
facilities of Shakti International Pvt Ltd.

   Facilities                           Ratings
   ----------                           -------
   INR70.0 Million Cash Credit          BB+/Stable (Assigned)
   INR30.0 Million Proposed Long        BB+/Stable (Assigned)
         Term Bank Loan Facility
   INR500.0 Million Letter of Credit    P4+ (Assigned)

The ratings reflect SIPL's exposure to risks relating to modest
scale of operations, and adverse changes in regulatory framework.
The impact of these weaknesses is mitigated by the benefits that
SIPL derives from its promoters' extensive experience in the
edible oils segment, the diverse services it offers, and from its
strong operational capabilities, and proactive risk management
policies.

As part of this rating exercise, CRISIL has combined the business
and financial risk profiles of Shakti International Pvt Ltd (SIPL)
and Shakti Enterprises (SE).  This is because these companies,
collectively referred to, herein, as SIPL, have a common
management. Moreover, they are in the same line of business, and
have inter-company transactions between them.

Outlook: Stable

CRISIL believes that SIPL will maintain its market position over
the medium term on the back of the promoters' industry experience.
The outlook may be revised to 'Positive' if SIPL is able to
generate better-than-expected growth in sales and profits, and
diversify its customer base. Conversely, the outlook may be
revised to 'Negative' if SIPL's credit risk profile deteriorates
materially because of adverse changes in regulatory framework,
impacting the import scenario of edible oils in India, or if its
debt protection indicators deteriorate.

SIPL, promoted by Mr. Srinivaas Sirigeri, provides import
management services for the edible oil industry. The promoters
have experience of over two decades in this business. SIPL
provides a range of services such as import aggregation, foreign
exchange and commodity advisory, and pricing decisions. Its major
clients include Bunge India Private Limited, Godrej Industries
Limited, and KS Oil Limited.

SIPL reported a profit after tax (PAT) of INR35.9 million on net
sales of INR115.7 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR27.8 million on net
sales of INR213.3 million for 2007-08.


SRINATH SPINNERS: CRISIL Rates INR15.3 Mil. Term Loan at 'BB-'
--------------------------------------------------------------
CRISIL has assigned its bank loan ratings of 'BB-/Stable/P4+' to
the various bank facilities of Srinath Spinners Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR45 Million Cash Credit         BB-/Stable (Assigned)
   INR153.1 Million Term Loan        BB-/Stable (Assigned)
   INR5.9 Million Bank Guarantee     P4+ (Assigned)
   INR6 Million Letter of Credit     P4+ (Assigned)

The ratings reflect weak financial risk profile of SSL
(consolidated), and SSL's exposure to risks relating to volatility
in cotton prices.  These weaknesses are, however, partially offset
by the benefits that SSL derives from the experience of its
promoters in the yarn industry enabling them to maintain moderate
operating efficiency.

CRISIL has consolidated the financials of SSL and Srinath Spinning
Mills Ltd.  This is because the two companies are under a common
management, and in the same line of business. Moreover, SSML, the
holding company, has extended corporate guarantees to the loans of
SSL.

Outlook: Stable

CRISIL expects SSL to maintain a favorable business profile over
the medium term backed by its established customer profile.  The
outlook may be revised to 'Positive' if significant improvement in
operating margins strengthens SSL's consolidated financial risk
profile.  Conversely, the outlook may be revised to 'Negative' if
the consolidated financial profile deteriorates significantly, or
if it takes on substantial debt to fund capital expenditure.

                       About Srinath Spinners

Srinath Spinners Limited, incorporated as a public limited company
in April 2001 by Mr. Ketan C. Parekh, Mr. Premal C Parekh, and
Mr. Prem Kumar Agarwal manufactures coarse yarn.  The company
began commercial production in August 2007, and has a capacity of
1440 rotors.  SSML, established in 1995, is the flagship company
of the group. Its open-end spinning mills have a capacity of 1760
rotors.

SSL (consolidated) reported a net loss of INR12 million on net
sales of INR432 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a net loss of INR1 million on net
sales of INR309 million for 2007-08.


SURAJ PRODUCTS: CRISIL Assigns 'BB+' Ratings on Various Bank Debts
------------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Suraj Products Ltd.

   Facilities                         Ratings
   ----------                         -------
   INR85.0 Million Cash Credit        BB+/Stable (Assigned)
   INR82.7 Million Rupee Term Loan    BB+/Stable (Assigned)
   INR10.0 Million Letter of Credit   P4+ (Assigned)
   INR5.0 Million Bank Guarantee      P4+ (Assigned)

The ratings reflect Suraj's small market share in and
vulnerability to downtrends in the steel industry, and large
working capital requirements.  These weaknesses are partially
offset by the company's above-average financial risk profile
marked by moderate gearing and satisfactory debt protection
measures.

Outlook: Stable

CRISIL believes that Suraj will maintain its financial risk
profile on the back of strong debt protection measures.  The
outlook may be revised to 'Negative' if the company undertakes a
large debt-funded capex programme, leading to deterioration in its
capital structure.  Conversely, the outlook may be revised to
'Positive' if the company increases its scale of operations
significantly, and consequently its market share and revenues,
while maintaining its healthy profitability.

                       About Suraj Products

Suraj, incorporated in 1991 as Champion Cement Industries Pvt Ltd,
commenced operations as a manufacturer of cement.  The name was
changed in 2000.  The company began manufacturing sponge iron in
2001, and currently has installed capacity to 36,000 tonnes per
annum (tpa) of pig iron and 24,000 tpa of sponge iron.  The
facilities are located in Rourkela, Orissa. The cement operations
were discontinued in 2003.

Suraj reported a profit after tax (PAT) of INR12.86 million on net
sales of INR559.43 million in 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR10.94 million on net
sales of INR460.51 million for the previous year.


TULSI EXTRUSION: CARE Revises Rating on Bank Debts to 'CARE BB+'
----------------------------------------------------------------
CARE has revised the rating assigned to the Long-term Bank
Facilities of Tulsi Extrusion Ltd aggregating INR 36.47 crore from
'CARE BB' to 'CARE BB+'.  This rating is applicable to facilities
having tenure of more than one year.  Facilities with 'Double B'
rating are considered to offer inadequate safety for timely
servicing of debt obligations. Such facilities carry high credit
risk.

CARE has also reaffirmed the rating of 'PR4' assigned to the
Short-term Bank Facilities of IIPL aggregating INR8.00 crore.
This rating is applicable to facilities having a tenure up to one
year. Facilities with this rating would have inadequate capacity
for timely payment of short-term debt obligations and carry very
high credit risk. Such facilities are susceptible to default.

CARE assigns '+' or '-' signs to be shown after the assigned
rating (wherever necessary) to indicate the relative position
within the band covered by the rating symbol.

Rating Rationale

The revision in the rating factors in the improvement in
profitability (during H2FY09 and H1FY10) on account of growing
focus on high margin products.  However, the ratings continue to
be constrained by relatively small size of operations limiting the
ability of the company to withstand any adverse economic shock,
project implementation risk, long working capital cycle exposing
it to liquidity mismatch and fragmented nature of the industry
limiting the pricing flexibility of the company.  The ratings also
take into cognizance the promoters' significant experience in the
industry, widespread distribution network and low leverage.
The ability of the company to maintain its sales volume and
achieve healthy profitability in an increasingly competitive
environment and volatility in input prices are the key rating
sensitivities.

                       About Tulsi Extrusion

Incorporated in Sept, 1994 Tulsi Extrusion Ltd is engaged in
manufacturing of PVC/HDPE/LLDPE pipes and fittings.  PVC pipes &
fittings is the largest contributor in the sales of TEL and
contributed around 90% of the total revenue in FY09.  The products
manufactured by the company find application in agriculture
(mainly drip/sprinkler irrigation), potable water supply schemes,
sewerage and drainage systems, construction industry etc. TEL has
also has also recently forayed into the MIS (Micro Irrigation
System) business.

The company posted a PAT of INR 1.27 crore on a total operating
income of INR 74.74 crore in FY09. The overall gearing has been
comfortable at around 0.44 x as at the end of FY09. During the
first half of FY10 the company posted a PAT of INR 4.13 crore on
sales of INR 45.42 crore.


TUNGABHADRA POWER: CRISIL Reaffirms 'D' Rating on INR415Mm LT Loan
------------------------------------------------------------------
CRISIL has reaffirmed its 'D' rating on the INR415 million long-
term bank loans of Tungabhadra Power Co Pvt Ltd (Tungabhadra
Power), as the facility continues to be in default.  The delay in
the debt servicing has been caused by weak liquidity as
Tungabhadra Power is yet to commence commercial operations.

Incorporated in 1999, Tungabhadra Power obtained licence from the
Government of Karnataka (GoK) to produce power from the mini-hydel
project (part of the Singatalur lift irrigation scheme) proposed
over the Singatalur barrage near Thimmalapur village (Bellary
District, Karnataka).  The plant has an installed capacity of 18
mega watts (MW, four units of 4.5 MW each).  The project cost of
around INR650 million was funded at a debt-to-equity ratio of
65:35. Work on the power plant project commenced in February 2005,
and the plant was to be commissioned in February 2007.  There has
been a time overrun of nearly 23 months because of delay in
completion of the Singatalur barrage by the irrigation department
of GoK, and floods in the river Tungabhadra, leading to a halt in
the plant construction work.  The plant was finally constructed in
December 2008.  The project is currently facing protests due to
submergence of villages. The issue of rehabilitation for these
submerged villages is yet to be settled.  As a result, the company
is yet to commence commercial power generation.


UNITECH AUTOMOBILES: CRISIL Rates INR370 Mil. Cash Credit at 'B'
----------------------------------------------------------------
CRISIL has assigned its 'B/Negative'rating to Unitech Automobiles
Pvt Ltd's bank facilities.

   Facility                           Rating
   --------                           ------
   INR370.0 Million Cash Credit*      B/Negative (Assigned)

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

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

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

Outlook: Negative

CRISIL believes that UAPL's financial risk profile will remain
weak in the medium term, given the company's high gearing levels.
The ratings 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 in case of
sustained increase in its operating revenues and improvement in
operating margin.

                    About Unitech Automobiles

Incorporated in 1986 by Mr. Vinod Sharma, Mr. R P Mungikar, Mr. S
Premkumar, and Mr. N Subramanian, UAPL is an authorized commercial
vehicle dealer for Tata Motors for Mumbai, Thane, and the Raigad
region. In 1992, it was recognized as the first Tata Authorised
Service Station by Tata Motors.  UAPL 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. FCPL, incorporated in 1997, is
a dealer of Tata Motors' passenger vehicles.

UAPL reported a profit after tax (PAT) of INR1.362 million on net
sales of INR3054 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR15.74 million on net
sales of INR4297 million for 2007-08.


VICTORY SPINNING: CRISIL Places 'B-' on INR57.9MM Long Term Loan
----------------------------------------------------------------
CRISIL has assigned its ratings of 'B-/Negative/P4' to Victory
Spinning Mills Ltd's bank facilities.

   Facility                             Rating
   --------                             ------
   INR57.90 Million Long Term Loan*     B-/Negative (Assigned)
   INR70.00 Million Cash Credit         B-/Negative (Assigned)
   INR1.80 Million Bank Guarantee       P4 (Assigned)

   * Includes proposed limit of INR9.20 Million

The ratings reflect VSML's weak financial risk profile, and
exposure to risks relating to fluctuating raw material prices.
These rating weaknesses are partially offset by VSML's average
business risk profile backed by its moderate operating efficiency.

Outlook: Negative

CRISIL believes that VSML's liquidity will remain weak over the
medium term as the company's profitability and cash accruals are
expected to remain constrained.  The ratings may be downgraded if
the cash accruals and profitability decline beyond expectation or
company undertakes large, debt-funded capital expenditure (capex)
programmes, leading to further deterioration in its financial risk
profile.  Conversely, the outlook may be revised to 'Stable' if
VSML's revenues and profitability increase substantially,
resulting in improvement in liquidity and overall financial risk
profile.

                      About Victory Spinning

Incorporated in 2003, in Tamil Nadu by Mr. R Thangavelu and Mr. P
S Sundaram, VSML manufactures viscose fibre yarn, which finds
application in the apparel industry.  The company has production
capacity of 18144 spindles.  The yarn is sold to various
wholesalers and distributors spread all over India.

VSML reported a profit after tax (PAT) of INR8 million on net
sales of INR344 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a net loss of INR6 million on net
sales of INR350 million for 2007-08.


VIPUL IMPEX: CARE Revises Rating on INR105cr LT Bank Facilities
---------------------------------------------------------------
CARE has revised the rating assigned to the Long-term Bank
Facilities of Vipul Impex & Infrabuild Limited, aggregating INR
105 crore from 'CARE BBB' to 'CARE B'.  This rating is applicable
to facilities having tenure of more than one year.  Facilities
with CARE B rating are considered to offer low safety for timely
servicing of debt obligations and carry very high credit risk.
Such facilities are susceptible to default.  Further, CARE has
revised the rating assigned to the Short-term Bank Facilities of
VIIL, aggregating INR4 crore from 'PR3' to 'PR4'.  This rating is
applicable for facilities having tenure up to one year.
Facilities with PR4 rating would have inadequate capacity for
timely payment of short-term debt obligations and carry very high
credit risk. Such facilities are susceptible to default.

                              Amount
  Instrument                 (INR cr)     Ratings
  ----------                  -------     -------
  Long-term Bank Facilities   105.00      CARE B
  Short-term Bank Facilities    4.00      PR4

Rating Rationale

The ratings have been revised keeping in view the deteriorated
financial performance of the company, increasing debtors, high
leverage, devolvement in letters of credit and delays in the
interest payments. The ratings continue to take cognizance of the
experienced promoter and management team and the recent equity
infusion by promoters.

VIIL's ability to improve its financial position despite adverse
features like intense competition from large number of players,
threat posed by EU to ban seafood imports from India and stringent
quality norms posed by various countries are the key rating
sensitivities.

Incorporated in 1978,VIIL is engaged in the processing of a
variety of marine/seafoods, which yield basic, semi-finished and
finished products at its processing facility at Veraval, District
Junagarh, in Gujarat.

VIIL achieved net sales of INR173 crore and PAT of INR1.66 crore
in FY09 as against net sales of INR70 crore and PAT of INR3.15
crore in FY08. Overall gearing stood at 4.79x at March 31, 2009.
Liquidity constraints faced by VIIL resulted in a few instances of
devolvement of letter of credit and delay in interest payment.


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


CENTRAL PROTEINAPRIMA: Fitch Retains Negative Watch on 'CC' Rating
------------------------------------------------------------------
Fitch Ratings has said that it has not been able to determine if
PT Central Proteinaprima Tbk has paid the semi-annual coupon on
its US$ notes which was due December 28, 2009.  The agency has not
been able obtain any confirmation of this from CPP, the trustee of
the US$ notes or CPP's advisors.

Fitch will downgrade the ratings by one notch if it determines
that the coupon was not paid when it was due.

Pending such confirmation, CPP's 'CC' Long-term foreign currency
Issuer Default Rating and the 'CC' senior unsecured rating of
CPP's US$325m senior unsecured notes due 2012, issued by Blue
Ocean Resources Pte Ltd and guaranteed by CPP and its subsidiaries
remain on Rating Watch Negative.


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


JAPAN AIRLINES: AMR Willing to Invest Even in Bankruptcy
--------------------------------------------------------
Will Ris, in charge of government affairs at American Airlines,
told Reuters American is considering sweetening its $1.1 billion
investment proposal for Japan Airlines and would be willing to
invest in JAL even if it goes into bankruptcy.

"We want to be flexible in terms of our ability to enhance our
proposal and we have been continually in conversation with Japan
Airlines about that," Mr. Ris told Reuters.

"We are looking at every possibility to make our proposal more
attractive," he said.

According to Mr. Ris, "We are OK either way and what we want to do
is position ourselves so that we can act very quickly depending on
which scenario takes place and make our capital investment
available at that time."

The state-backed Enterprise Turnaround Initiative Corp of Japan
has proposed a bankruptcy procedure as the most transparent way to
restructure JAL, and is now in the process of convincing
creditors, sources have told Reuters.

As reported by the Troubled Company Reporter on January 5, 2010,
The New York Times' DealBook said Haruka Nishimatsu, the president
of Japan Airlines, told The Asahi Shimbun newspaper he preferred
Delta Air Lines as the carrier's overseas partner to American
Airlines.  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 the ETIC.  "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 NY Times, citing Kyodo news agency, reported the Japanese
government has 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 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 by the Troubled Company Reporter on November 3, 2009,
Moody's Investors Service has 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: ETIC Aims to Cut JAL's Liabilities by JPY730 Bil.
----------------------------------------------------------------
Bloomberg News, citing Nikkei English News, reports that the
Enterprise Turnaround Initiative Corp. of Japan -- the government-
backed entity overseeing the turnaround for Japan Airlines Corp.
-- wants to cut the airline?s financial burden by JPY730 billion
(US$7.9 billion) through debt waivers and reductions in pension
and bond obligations.

According to Bloomberg, the Nikkei said the ETIC intends to ask
JAL?s lenders to waive JPY300 billion in loans and offer a debt-
for-equity swap for other obligations.  The agency may provide
capital of JPY300 billion to JAL, the Nikkei said.

The Nikkei, as cited by Bloomberg, said about 10,000 positions
would be cut over three years under the agency's plan.  The
airline may also take a JPY1.13 trillion restructuring charge in
the year ending March 31, the Nikkei said.

According to Bloomberg, the Nikkei said the agency aims to
complete its plan, based on court-led bankruptcy proceedings, by
Jan. 20.

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
=========


GENERAL MOTORS: Liquidity Concerns Pull GM Daewoo's 2009 Sales
--------------------------------------------------------------
Yonhap News reports that GM Daewoo Auto & Technology Co., the
South Korean unit of General Motors Co., sold 578,758 units last
year, down 34.4% from the year before.

The news agency says the sharp decline in 2009 sales comes as GM
Daewoo is grappling with a precarious liquidity condition as its
U.S. parent emerged from bankruptcy protection in mid-2008.

General Motors Company -- http://www.gm.com/-- is one of the
world's largest automakers, tracing its roots back to 1908.  With
its global headquarters in Detroit, GM employs 209,000 people in
every major region of the world and does business in some 140
countries.  GM and its strategic partners produce cars and trucks
in 34 countries, and sell and service these vehicles through these
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall and Wuling.  GM's largest national market is the United
States, followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany.  GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.

GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code.  Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.

At September 30, 2009, GM had US$107.45 billion in total assets
against US$135.60 billion in total liabilities.

                    About Motors Liquidation

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

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

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


HYNIX SEMICONDUCTOR: UAE Shows Interest in Buying Stake
-------------------------------------------------------
Jung-Ah Lee and Shin Jung-Won at Dow Jones Newswires, citing the
Electronic Times, report that the United Arab Emirates government
has shown an interest in buying a stake in Hynix Semiconductor
Inc.

A Korean government official said the UAE government showed an
interest in acquiring (at least) a part of the stake, if it proves
difficult to acquire the entire stake, Dow Jones relates.

Dow Jones says creditors of Hynix Semiconductor, including Korea
Exchange Bank and Korea Development Bank, are now looking to sell
their entire or part of their 28% stake in the Company.

Creditor banks will receive preliminary bids for some or all of
their entire 28% stake, or 165.48 million shares, in Hynix by
Jan. 29, the report adds.

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

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
November 17, 2009, Standard & Poor's Ratings Services revised to
stable from negative the outlook on its long-term corporate credit
rating on Hynix Semiconductor Inc. following the recovery of the
DRAM market and the company's profitability.  At the same time,
Standard & Poor's affirmed its 'B+' long-term corporate and 'B'
senior unsecured debt ratings on Hynix.

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

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


KUMHO ASIANA: Creditors Okay Kumho Industrial 3-Month Debt Freeze
-----------------------------------------------------------------
Creditor banks of Kumho Industrial Co., a unit of cash-strapped
Kumho Asiana Group, agreed Wednesday to freeze debt repayments by
the builder for three months, Yonhap News reports.

The news agency relates Woori Bank said that during the period,
the creditors will come up with a plan to put Kumho Industrial
back on track after a due diligence is conducted on the builder.

According to Yonhap, the lender said Kumho Industrial will be
required to carry out a self-rescue plan that includes the sale of
non-core assets and cost-cutting efforts in return for the three-
month debt freeze.

Woori Bank said the creditors plan to provide fresh loans to Kumho
Industrial to help revive the company as soon as possible, Yonhap
notes.

Meanwhile, Bloomberg News, citing Korean-language online newspaper
MoneyToday, reports that Kumho Industrial's creditors may seek
court receivership of the company if due diligence shows debt
restructuring is not an option for the South Korean builder.

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. also discuss ways of
improving their finances with creditors, Bloomberg said.

Kumho Asiana unveiled a restructuring plan on Tuesday that
involves raising KRW1.3 trillion (US$1.1 billion) by selling off
assets, while cutting costs via a 20% reduction in executive
positions and wages, Yonhap states.

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.


KUMHO ASIANA: Creditors Agree to Freeze Units' Debts for 1 Year
---------------------------------------------------------------
The Korea Times reports that state-run Korea Development Bank
(KDB) and other financial firms have decided to freeze debts of
Kumho Petrochemical and Asiana Airlines for one year to help the
struggling Kumho Asiana Group tide over its worsening cash flow
problem.

The Times says the creditors also plan to appoint financial
auditors to oversee the money management and restructuring of the
two flagship units of South Korea's ninth-largest conglomerate,
while taking equity and other assets held by the debt-ridden firms
as collateral when providing fresh loans.

Kumho creditors said the liabilities of the group's de facto
holding firm, Kumho Petrochemical, and Korea's second-largest air
carrier, Asiana Airlines, will be frozen for one year to help them
restructure themselves into a more financially-sound business
entity.

The report, citing a creditor bank official, notes that the two
firms will go through a pre-workout program to improve financial
soundness, adding that since they borrowed 77 percent of the
nearly 6 trillion won in loans from KDB and other banks, the KDB-
initiated, pre-workout program will get the green light.

According to the report, the creditors:

   -- will dispatch a group of financial managers to Kumho
      Petrochemical and Asiana Airlines to control cash flow
      management, self-imposed restructuring measures and other
      corporate decision making;

   -- will require the two Kumho units to put forward their
      equity stakes in group affiliates as collateral in return
      for fresh loans; and

   -- demand that honorary group Chairman Park Sam-koo and other
      founding family members take responsibility for
      mismanagement, and that they should give not only their
      Kumho stocks, but also real estate and other personal
      assets to creditors as collateral in exchange for fresh
      loans.

The Time says the creditors are also putting greater pressure on
Kumho Petrochemical and Asiana Airlines to more drastically
restructure themselves, saying the self-rescue plan is not enough.
They plan to put the two under a creditor-led debt workout program
if their restructuring is not satisfactory, the Times adds.

Kumho Petrochemical and Asiana Airlines currently owe banks and
other financial institutions KRW2.2 trillion and KRW3.76 trillion,
respectively.

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. also discuss ways
of improving their finances with creditors, Bloomberg said.

Kumho Asiana unveiled a restructuring plan on Tuesday that
involves raising KRW1.3 trillion (US$1.1 billion) by selling off
assets, while cutting costs via a 20% reduction in executive
positions and wages, Yonhap states.

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
====================


AIR NEW ZEALAND: Manager Joined Into Price Fixing Case
-------------------------------------------------------
A senior Air New Zealand manager has been added into Commerce
Commission court claims Air New Zealand and other airlines
conspired to operate an anti-competitive global air cargo fuel
surcharge cartel, The National Business Review reports.

Citing a High Court decision, the NBR discloses that Justice
Judith Potter added California-based Salvatore Sanfilippo as
seventh defendant, along with five other Air NZ employees, in a
case expected to get to trial this year.

According to the report, the commission alleges that from December
1998 to February 2006, Air New Zealand and other airlines took
part in a cartel relating to the imposition of fuel charges on air
cargo services around the world.

NBR says the Commerce Commission alleged anti-competitive
behaviour with regard to fuel surcharges by Air NZ and Mr.
Sanfilippo on routes between the United States and New Zealand,
and applied to have him joined as a defendant last July.

The commission, according to NBR, alleged Mr. Sanfilippo, who from
March 2001 was Air New Zealand's cargo sales manager for the
Americas, was personally a party to a conspiracy with other
employees and implemented what was known as an "overarching fuel
surcharge understanding."

Initiated in 2005, the investigation of alleged cartel conduct,
which includes Korean Air Lines, Qantas, Lufthansa and Polar Air,
is continuing.

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

                           *     *     *

Air New Zealand Ltd. continues to carry Moody's Investors Service
"Ba1" Senior Unsecured Issuer rating with stable outlook.


STRATEGIC FINANCE: In Talks with Trustee; Misses First Repayment
----------------------------------------------------------------
Strategic Finance Ltd is in discussions with its trustee,
Perpetual Trust, after the company confirmed it is unable to make
a first payment to retail investors, The National Business Review
reports.

The NBR relates Strategic Chairman Denis Thom said in a letter to
investors on Tuesday that the company did not have the required
cash because conditional and unconditional sales needed to enable
loan repayments had not been settled.

However, Mr. Thom said it was pleased to confirm that a $25
million Bank of Scotland International (BOSIAL) debt facility had
been fully repaid, the report adds.

"Given this position the SFL board has informed the trustee it
considers it likely that a review event under the moratorium
arrangements will occur on January 7, 2010 and this has already
resulted in the commencement of constructive dialogue between the
company and the trustee," the report cited Mr. Thom in a
statement.

According to the report, Mr. Thom said it was likely negotiations
would take more than a 14-day period allowed under the moratorium
agreed in December 2008 to make sure all options were analysed.

The company would meanwhile focus on generating proceeds to be
able to repay investors and everything above working capital could
be returned to investors now the BOSIAL debt had been repaid, the
report notes.

                     About Strategic Finance

Headquartered in Wellington, New Zealand, Strategic Finance
Limited (NZE:SFLHA) -- http://www.strategicfinance.co.nz/--
operates as a specialist finance company offering financial
services, primarily to the property sector.  It has four main
business activities: Lending within the property sector; Non-
property lending and investments; Corporate advisory and
management services, and Underwriting services.  Lending within
the property sector is its primary activity with a focus on
providing finance for property development and property
investment activities.  It was offering motor vehicle lending
under non-property lending and investments.  The Company, and in
some circumstances through its wholly owned subsidiary Strategic
Advisory Limited, provides specialist advisory and management
services to the property and corporate sectors for which it
receives fee income.  It may provide underwriting services.
These services include the underwriting of property related
share or debt securities offered by a promoter through a
registered prospectus.  It receives fees for such services.

Strategic Finance Limited's parent company, Strategic Investment
Group, is wholly owned by Australian-based finance company Allco
HIT Limited.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
August 8, 2008, Strategic Finance Limited suspended redemptions of
its secured debenture stock and subordinated notes.  The company
also ceased accepting subscriptions for debenture stock and
subordinated notes under its current prospectus and investment
statement.  The company owed NZ$325 million to 15,000 investors,
according to various reports.

On Dec. 22, 2008, the TCR-AP reported that Strategic Finance
gained the approval from debenture stockholders, depositors and
noteholders of its moratorium proposal.

Under the moratorium plan, the company will, subject to the
availability of funds as the assets of Strategic Finance
are realized, make quarterly repayments of principal and interest
through to December 2013, to its stockholders, deposit holders and
subordinated note holders, in accordance with existing priority
arrangements, as the assets of Strategic Finance are realized.

Under the moratorium proposal, interest on investments was re-set
at August 7, 2008, to 8.0% across the board for all
securityholders, including BOSIAL for its main bank facility
(interest that accrues on the prior ranking BOSIAL facilities of
NZ$25 million will continue to accrue at the existing ordinary
rate).


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


GANDAK PRIVATE: Creditors' Proofs of Debt Due February 5
--------------------------------------------------------
Creditors of Gandak Private Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by February 5, 2010, to be included in the company's dividend
distribution.

The company's liquidators are:

         Kon Yin Tong
         Wong Kian Kok
         Aw Eng Hai
         C/O 47 Hill Street #05-1
         Singapore Chinese Chamber Of Commerce & Industry Building
         Singapore 179365


ORIENT TELECOM: Court to Hear Wind-Up Petition on January 15
------------------------------------------------------------
A petition to wind up the operations of Orient Telecommunications
Networks Pte Ltd, which is under judicial management, will be
heard before the High Court of Singapore on January 15, 2010, at
10:00 a.m.

Tam Chee Chong filed the petition against the company on Dec. 22,
2009.

The Petitioner's solicitors are:

         Tan Peng Chin LLC
         30 Raffles Place
         #11-00 Chevron House
         Singapore 048622


PACIFIC COATINGS: Creditors' Proofs of Debt Due February 7
----------------------------------------------------------
Pacific Coatings Pte Ltd, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by February 7, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on December 30, 2009.


The company's liquidator is:

         Steven Tan Chee Chuan
         25 International Business Park
         #04-22/26 German Centre
         Singapore 609916


===============
T H A I L A N D
===============


THAI AIRWAYS: Chairman Steps Down Over Excess Baggage Scandal
-------------------------------------------------------------
Thai Airways International PCL's executive chairman, Wallop
Bhukkanasut, has resigned after being embroiled in a scandal
involving excess baggage on a THAI flight from Japan last
November, the Bangkok Post reports.

The Post relates THAI chairman Ampon Kitti-ampon said Mr. Wallop's
resignation as THAI's executive chairman, as a member of its board
and from his post as chairman of Nok Air, a low-cost subsidiary of
the national carrier, took effect on Tuesday.

According to the report, Mr. Wallop, his wife Jaruwan and Pruek
Bupphakham, the airline's executive vice-president for commercial
affairs, are accused of using their positions at THAI to dodge
excess baggage fees on a flight from Tokyo's Narita airport to
Bangkok's Suvarnabhumi airport.  They are also accused of
channelling the baggage through a special route to avoid paying
taxes and fees, the report adds.

The Post notes Mr. Ampon said the THAI board-appointed
investigating committee, headed by THAI board member Kanit
Sangsubhan, would continue its inquiries despite the resignation.
The panel is due to deliver its findings on January 11.

According to the Post, Mr. Ampon said the investigation would
cover all THAI staff involved in the scandal and would reveal
those responsible for allowing Mr. Wallop to take the excess
luggage on board without being charged.  Mr. Wallop's baggage had
been declared at only 170kg instead of 398kg and the staff
involved in the cover up would be punished, he said.

The THAI board meets next on Jan 15.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 21, 2009, Thai Airways asked the government for emergency
funds to resolve a cash shortage after being hit by last year's
surge in fuel prices, the global economic slowdown and last year's
shutdowns of Bangkok airports.

Citing Raj Tanta-Nanta, Thai Airways's vice-president for investor
relations, The Financial Times reported that the funds would go
towards covering the airline's short-term borrowing requirements,
with the rest going to balance sheet support.

Thai Airways, whose stock has fallen 80% in the past year, has
"problems with cash flow because we lost THB19 billion in cash
during the closures of airports," acting President Narongsak
Sangapong told Reuters.

Thai Airways made a net loss of THB4.03 billion (US$121.4
million), or THB2.37 per share, in the July-September 2009
quarter, against THB426 million profit a year earlier.

Thai Airways International PCL (BAK:THAI) --
http://www.thaiairways.co.th/-- is the national carrier of
Thailand.  The company operates domestic, regional and
intercontinental flights radiating from its home base in Bangkok
to key destinations around the world and within Thailand.  During
the fiscal year ended September 30, 2007, the company owned a
total of 90 aircrafts and provided flights to 11 destinations
domestically, excluding Bangkok, and 62 destinations in 35
countries throughout the world.  Through its subsidiaries, THAI
provides a variety of services, including cargo and mail services,
technical services, catering services, ground support equipment
services and ground customer services.  In addition, the company
offers support services such as dispatch services, sales on board
and Thai shop.  Headquartered in Bangkok, THAI has a subsidiary
and 10 affiliated companies.


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


* Low Order Levels, Lack of Financing to Lead to Yard Closures
--------------------------------------------------------------
Robert Wright at The Financial Times reports that the shipbuilding
industry looks set for a rash of insolvencies as the collapse in
order levels combines with banks' reluctance to finance ship
construction to starve many yards of cash.

Citing London-based Clarkson shipbrokers, the FT says only 28.8m
deadweight tonnes (dwt) of ships were ordered between January and
November in 2009, against 272m dwt for the whole of 2007, the peak
of the shipping boom.  The dearth of orders means yards are barely
receiving any of the downpayments on new orders that previously
smoothed out their cash flow, the FT discloses.

The FT recalls the past year has already seen three shipyards in
Korea, the world leader, several small yards in China, a yard in
Japan, three German yards and a Norwegian and US yard file for
insolvency.  Denmark's only yard is to be closed, the FT notes.

According to the FT, the crisis looks set not only to force more
yards into insolvency but also to stymie plans to expand
shipbuilding capacity further, with some of the proposed new yards
in China unlikely to be built.

The rush by the governments of major shipbuilding nations to
support failing yards has also led to concerns that the industry
faces years of chronic over-capacity and dependence on subsidy.
Such conditions dogged the industry in the 1970s and 1980s, the FT
states.


                         *********

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
to be reliable, but is not guaranteed.

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





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