TCRAP_Public/100114.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 14, 2010, Vol. 13, No. 009

                            Headlines



A U S T R A L I A

GRIFFIN COAL: Administrators Get 26 Creditors Committee Nominees
KLEENMAID GROUP: Compass Capital Offers Product to Customers


C H I N A

CITIGROUP INC: Discloses 9.9% Equity Stake in Wuhan (China)
SHANGHAI AIRLINES: Seeks to Delist Shares from Shanghai Bourse


H O N G  K O N G

GOLD HERO: Court Enters Wind-Up Order
GREEN HARBOUR: Members' Final Meeting Set for February 11
GREENWOOD DESIGN: Court Enters Wind-Up Order
GOLD RAMBO: Court Enters Wind-Up Order
HEDWORTH LIMITED: Court Enters Wind-Up Order

HK ASSOCIATION: Placed Under Voluntary Wind-Up Proceedings
HK BREWING: Chan and Wong Step Down as Liquidators
HOPEWILL ENGINEERING: Court Enters Wind-Up Order
INTERBREW ZHEJIANG: Members' Final Meeting Set for February 9
INTERNATIONAL INSTITUTE: Members' Final Meeting Set for February 9

J'S PUBLICATIONS: Court Enters Wind-Up Order
JOYFUL FALCON: Commences Wind-Up Proceedings
JOYFUL LONG: Lees and Ng Appointed as Liquidators
K.Y. CATERING: Court Enters Wind-Up Order
KINGSWAY CORPORATION: Court Enters Wind-Up Order

KONG HING: Court Enters Wind-Up Order
KWONG YICK: Creditors and Contributories to Meet on Feb. 5
LABOUR BUILDINGS: Court to Hear Wind-Up Petition on February 24
LASALLE TRADE: Creditors' Proofs of Debt Due February 8
LEE DUNG: Court to Hear Wind-Up Petition on February 3

LEGEND PROFIT: Court to Hear Wind-Up Petition on February 24
LEVA (HK): Members' Final General Meeting Set for February 10
LIK PANG: Court Enters Wind-Up Order
LONGSHAFT LIMITED: Placed Under Voluntary Wind-Up Proceedings
LUCKY TECH: Court Enters Wind-Up Order


I N D I A

D A JHAVERI: CRISIL Reaffirms 'P4+' Ratings on Various Bank Debts
DECCAN POLYPACKS: CRISIL Assigns 'B' Rating on INR55MM Bank Debts
ECOHOMES CONSTRUCTIONS: CRISIL Rates INR132.5MM Term Loan at 'BB'
EVEREADY SPINNING: CRISIL Puts 'BB+' Ratings on Various Bank Debts
EVERGREEN VENEERS: CRISIL Puts 'BB-' Rating on INR25MM Cash Credit

GARG INDUSTRIES: CRISIL Assigns 'BB' Rating on INR75.9MM Term Loan
GOLDEN JUBILEE: ICRA Assigns 'LBB+' Rating on INR3.5BB LT Loans
JCO GAS: CRISIL Downgrades Rating on INR350MM Term Loan to 'B-'
HYT ENGINEERING: CRISIL Places 'C' Ratings on INR101.6MM Term Loan
MANI SPINNING: CRISIL Reaffirms 'BB+' Rating on Cash Credit

SUNSTAR PRECISION: ICRA Places 'LB' Rating on INR309MM Bank Debts
VAYHAN COFFEE: ICRA Assigns 'LB' Rating on INR510MM Term Loans


J A P A N

BEST DENKI: To Wind-Up Sakuraya Unit Next Month Due to Losses
FORD MOTOR: Japan Unit to Recall 13,729 Units of Explorer SUV
JAPAN AIRLINES: Chapter 11-Type Restructuring Needed for Tie Up
JAPAN AIRLINES: Looming Bankruptcy to Affect 10,000 Firms
JAPAN AIRLINES: Qantas May Keep Codeshare Agreement

JAPAN AIRLINES: Government Taps Inamori to Lead JAL's Revival
JAPAN AIRLINES: Wins Retirees Approval for 30% Pension Cuts


K O R E A

HYNIX SEMICONDUCTOR: Credit Suisse Prefers Local Buyers for Stake
KUMHO ASIANA: Fires 7 CEOs Amid Liquidity Crisis


M A L A Y S I A

AKN TECHNOLOGY: Enhanced Regularization Plan Submitted
POLY TOWER: Fails to Submit Annual Financial Statement




                         - - - - -


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


GRIFFIN COAL: Administrators Get 26 Creditors Committee Nominees
----------------------------------------------------------------
Jason Scott at Bloomberg News reports that Griffin Coal Mining Co.
on Wednesday received 26 applicants to join a committee of
creditors at a meeting in Perth.

Bloomberg relates Brian McMaster of administrator KordaMentha said
the number of applicants may make the committee "unworkable."  Mr.
McMaster would prefer the committee to be comprised of up to 10
members, The Sydney Morning Herald reports.

The Herald says parties including Japan's Mitsui and Co. have been
nominated to join the committee.

Mr. McMaster adjourned the meeting briefly in a bid to reduce the
amount of applicants, Bloomberg notes.

As reported by the Troubled Company Reporter-Asia Pacific on
January 4, 2010, Griffin Coal Mining Co. appointed Kordamentha as
administrator with total debts amounting to about AU$700 million.
The coal supplier defaulted on an interest payment in December 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: Compass Capital Offers Product to Customers
------------------------------------------------------------
The Sydney Morning Herald reports that Compass Capital Partners, a
private equity firm behind the new Kleenmaid venture, offered out-
of-pocket customers the chance to buy the whitegoods again -- but
at a "discount" rate.

The Herald relates that about 4,500 customers paid deposits or the
full price of kitchen and laundry goods before Kleenmaid Group
went into administration nine months ago.  These customers
unlikely to get any of their money back from the administrators
after creditors sent the group into liquidation.

According to the report, Compass Capital, the company that bought
the rights to the well-known brand name, is trying to drum up
business by offering customers another chance to buy the products.

Compass Capital describes the discount offer as a "goodwill
gesture" designed to help repair the tarnished brand for future
sales, the Herald says.

According to the report, Compass Capital is also trying to sell
some former customers new two-year warranties, after their
previous warranties became invalid following the collapse.

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.

Liquidators from Deloitte have not yet finished their report on
claims the former Kleenmaid Group may have been trading while
insolvent for up to two years, according to The Sydney Morning
Herald.


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


CITIGROUP INC: Discloses 9.9% Equity Stake in Wuhan (China)
-----------------------------------------------------------
Citigroup Alternative Investments LLC; Citigroup Investments Inc.;
and Citigroup Inc. disclose holding 2,701,924 shares or roughly
9.9% of the common stock of Wuhan General Group (China), Inc., as
of December 31, 2009.

Based in New York, Citigroup Inc. (NYSE: C) -- is a global
diversified financial services holding company whose businesses
provide a broad range of financial services to consumer and
corporate customers.  Citigroup has roughly 200 million customer
accounts and does business in more than 140 countries.
Citigroup's businesses are aligned in three reporting segments:
(i) Citicorp, which consists of Regional Consumer Banking (in
North America, EMEA, Asia, and Latin America) and the
Institutional Clients Group (Securities and Banking, including the
Private Bank, and Transaction Services); (ii) Citi Holdings, which
consists of Brokerage and Asset Management, Local Consumer
Lending, and a Special Asset Pool; and (iii) Corporate/Other.

As reported in the Troubled Company Reporter on November 25, 2008,
the U.S. government entered into an agreement with Citigroup to
provide a package of guarantees, liquidity access, and capital.
The U.S. Treasury and the Federal Deposit Insurance Corporation
agreed to provide protection against the possibility of unusually
large losses on an asset pool of roughly $306 billion of loans and
securities backed by residential and commercial real estate and
other such assets, which will remain on Citigroup's balance sheet.
As a fee for this arrangement, Citigroup issued preferred shares
to the Treasury and FDIC.  The Federal Reserve agreed to backstop
residual risk in the asset pool through a non-recourse loan.

Citigroup, the third-biggest U.S. bank, received $45 billion in
bailout aid.  Other bailed-out banks, including Bank of America
Corp., Wells Fargo & Co., have pledged to repay TARP money.
JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley,
repaid TARP funds in June.  Citigroup is selling assets to repay
the bailout funds.

Citigroup is one of the banks that, according to results of the
government's stress test, need more capital.


SHANGHAI AIRLINES: Seeks to Delist Shares from Shanghai Bourse
--------------------------------------------------------------
China Daily reports that Shanghai Airlines, which is scheduled to
merge with China Eastern Airlines, said it is seeking to delist
its shares from the Shanghai Stock Exchange.  The company's shares
were suspended from trading following the notice, the report says.

Despite the merger, Shanghai Airlines is expected to retain an
independent operational license, China Daily discloses.

According to the report, Shanghai Airlines' shareholders can
choose between selling their Shanghai Airlines' shares to China
Eastern for CNY5.5 each, or accepting 1.3 China Eastern shares for
each Shanghai Airlines' share.  Dissenting shareholders of China
Eastern can also convert their stock to cash at a rate of CNY5.28
per share, the Daily notes.

China Eastern shares will not be available to stakeholders until
the merger is completed, according to the Daily.

China Eastern said in July it would buy smaller rival Shanghai
Airlines via a 9-billion-yuan (US1.3 billion) share swap that
would give it a market share of more than 50% in Shanghai, China's
financial hub.

The Troubled Company Reporter-Asia Pacific reported on March 26,
2009, that Shanghai Airlines posted a CNY1.25 billion net loss in
2008, more than double from CNY435.12 million net loss it incurred
in 2007.  The company attributed the losses to plunging air travel
demand and a significant rise in operating costs due to higher
fuel prices for most of the year.

At the end of the third quarter of 2009, total assets of Shanghai
Airlines amounted to CNY16 billion, on a debt ratio of 93.1% and
quarterly losses of CNY253 million, China Daily says.

                      About Shanghai Airlines

Shanghai Airlines Co., Limited -- http://www.shanghai-air.com/
-- is a China-based commercial airline company.  The company
mainly provides air passenger and air cargo transportation
services and air mail services domestically and internationally.
The company also develops traveling, import and export trading
and advertising businesses.  As of December 31, 2007, the
company had 58 airplanes.  In 2007, the company develops 10 new
national airlines and three new international airlines.  During
the year ended December 31, 2007, the company transported
approximately 9.45 million passengers and 327,400 metric tons of
cargos.  As of December 31, 2007, the company had 15 major
subsidiaries and associates.


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


GOLD HERO: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on December 30, 2009,
to wind up the operations of Gold Hero (Asia) Limited.

The official receiver is E T O'Connell.


GREEN HARBOUR: Members' Final Meeting Set for February 11
---------------------------------------------------------
Members of Green Harbour Limited, which is in members' voluntary
liquidation, will hold their final general meeting on February 11,
2010, at 10:00 a.m., at Room 2/F, Leader Centre, 37 Wong Chuk Hang
Road, in Hong Kong.

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


GREENWOOD DESIGN: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on December 23, 2009,
to wind up the operations of Greenwood Design & Decoration
Limited.

The official receiver is E T O'Connell.


GOLD RAMBO: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on December 30, 2009,
to wind up the operations of Gold Rambo Limited.

The official receiver is E T O'Connell.


HEDWORTH LIMITED: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on December 30, 2009,
to wind up the operations of Hedworth Limited.

The official receiver is E T O'Connell.


HK ASSOCIATION: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on December 30, 2009,
creditors of Hong Kong Association for the Protection of Water
Resources Limited resolved to voluntarily wind up the company's
operations.

The company's liquidators are:

         Chiu Ming Chung Joe
         Tam Kwok Kong
         Room 1228, 12/F
         One Grand Tower
         639 Nathan Road
         Kowloon


HK BREWING: Chan and Wong Step Down as Liquidators
--------------------------------------------------
Antonio Chan and Wong Kwok Man stepped down as liquidators of
Hong Kong Brewing & Restaurants Limited on November 27, 2009.


HOPEWILL ENGINEERING: Court Enters Wind-Up Order
------------------------------------------------
The High Court of Hong Kong entered an order on December 30, 2009,
to wind up the operations of Hopewill Engineering Limited.

The official receiver is E T O'Connell.


INTERBREW ZHEJIANG: Members' Final Meeting Set for February 9
-------------------------------------------------------------
Members of Interbrew Zhejiang Holding Limited, which is in
members' voluntary liquidation, will hold their final general
meeting on February 9, 2010, at 10:00 a.m., at Level 28, Three
Pacific Place, 1 Queen's Road East, in Hong Kong.

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


INTERNATIONAL INSTITUTE: Members' Final Meeting Set for February 9
------------------------------------------------------------------
Members of International Institute for Outsource Management Asia
Pacific Limited, which is in members' voluntary liquidation, will
hold their final general meeting on February 9, 2010, at 10:00
a.m., at Unit 511, Tower One, Silvercord, 30 Canton Road,
Tsimshatsui, Kowloon, in Hong Kong.

At the meeting, Ho Man Kit and Kong Sze Man Simone, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.


J'S PUBLICATIONS: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on December 30, 2009,
to wind up the operations of J'S Publications Limited.

The official receiver is E T O'Connell.


JOYFUL FALCON: Commences Wind-Up Proceedings
--------------------------------------------
Members of Joyful Falcon Limited, on December 29, 2009, passed a
resolution to voluntarily wind-up the company's operations.

The company's liquidators are:

         Ho Mo Han Miranda
         Au Wai Keung
         China Insurance Group Building
         Unit 2601, 26/F
         141 Des Voeux Road Central
         Hong Kong


JOYFUL LONG: Lees and Ng Appointed as Liquidators
-------------------------------------------------
John Robert Lees and Mat Ng on November 26, 2009, were appointed
as liquidators of Joyful Long International Limited.

The liquidators may be reached at:

          John Robert Lees
          Mat Ng
          Henley Building, 20/F
          5 Queen's Road
          Central, Hong Kong


K.Y. CATERING: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on December 30, 2009,
to wind up the operations of K.Y. Catering (Holdings) Limited.

The official receiver is E T O'Connell.


KINGSWAY CORPORATION: Court Enters Wind-Up Order
------------------------------------------------
The High Court of Hong Kong entered an order on December 23, 2009,
to wind up the operations of Kingsway Corporation Limited.

The official receiver is E T O'Connell.


KONG HING: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on December 23, 2009,
to wind up the operations of Kong Hing Transportation Company
Limited.

The official receiver is E T O'Connell.


KWONG YICK: Creditors and Contributories to Meet on Feb. 5
----------------------------------------------------------
Creditors and contributories of Kwong Yick Metals Limited will
hold their first meeting on February 5, 2010, at 10:30 a.m., and
10:0 a.m., respectively at Room 1601-1602, 16/F, CCIF Corporate
Advisory Services Limited, One Hysan Avenue, Causeway Bay, in Hong
Kong.

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


LABOUR BUILDINGS: Court to Hear Wind-Up Petition on February 24
---------------------------------------------------------------
A petition to wind up the operations of Labour Buildings Limited
will be heard before the High Court of Hong Kong on February 24,
2010, at 9:30 a.m.


LASALLE TRADE: Creditors' Proofs of Debt Due February 8
-------------------------------------------------------
LaSalle Trade Services Limited, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by February 8, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on December 28, 2009.

The company's liquidators are:

         Robin Harris
         Ng Kit Ying Zelinda
         The Center, 31/F
         99 Queen's Road
         Central, Hong Kong


LEE DUNG: Court to Hear Wind-Up Petition on February 3
------------------------------------------------------
A petition to wind up the operations of Lee Dung Food and Beverage
Company Limited will be heard before the High Court of Hong Kong
on February 3, 2010, at 9:30 a.m.


LEGEND PROFIT: Court to Hear Wind-Up Petition on February 24
------------------------------------------------------------
A petition to wind up the operations of Legend Profit Limited will
be heard before the High Court of Hong Kong on February 24, 2010,
at 9:30 a.m.

The Petitioner's Solicitors are:

          Tsang, Chan & Wong
          Wing On House, 16/F
          No. 71 Des Voeux Road Central
          Hong Kong


LEVA (HK): Members' Final General Meeting Set for February 10
-------------------------------------------------------------
Members of Leva (Hong Kong) Limited, which is in members'
voluntary liquidation, will hold their final general meeting on
February 10, 2010, at 10:00 a.m., at 4304, 43/F, China Resources
Building, 26 Harbour Road, Wanchai, in Hong Kong.

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


LIK PANG: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on December 30, 2009,
to wind up the operations of Lik Pang Industrial Company Limited.

The official receiver is E T O'Connell.


LONGSHAFT LIMITED: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------------
At an extraordinary general meeting held on December 29, 2009,
creditors of Longshaft Limited resolved to voluntarily wind up the
company's operations.

The company's liquidator is:

         Messrs. Peter Raymond Griffiths
         Flat C, 10/F, Block C and D
         Medallion Heights
         45 Conduit Road
         Hong Kong


LUCKY TECH: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on December 23, 2009,
to wind up the operations of Lucky Tech International Limited.

The official receiver is E T O'Connell.


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


D A JHAVERI: CRISIL Reaffirms 'P4+' Ratings on Various Bank Debts
-----------------------------------------------------------------
CRISIL's rating on the bank facility of D A Jhaveri continues to
reflect the firm's low net worth and the limitations arising from
the partnership nature of the business.  These rating weaknesses
are partially offset by the firm's improving business and
financial risk profiles, as the majority of the firm's sales are
on cash-on-delivery (COD) basis, and its healthy relationships
with customers and suppliers, backed by the experience of its
promoters in the diamond business.

   Facilities                        Ratings
   ----------                        -------
   INR250 Million Pre-Shipment/      P4+ (Reaffirmed)
        Post-Shipment Facility

   INR100 Million Proposed Short     P4+ (Reaffirmed)
        Term Bank Loan Facility

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of D A Jhaveri and Alpa Diamond, together
referred to as the D A Jhaveri group.  This is because of the
operational and financial linkages between the two entities, and
their common management.

D A Jhaveri, formed by Mr. Dilip Jhaveri in 1974 as a
proprietorship concern, was converted into a partnership firm in
1982, with Mr. Dilip Jhaveri and his brother Mr. Sanath Jhaveri as
equal partners.  At present, Mr. Dilip Jhaveri's family has a 70
per cent stake, while Mr. Sanath Jhaveri's family holds the
remainder.  The firm manufactures and trades in polished diamonds;
it commenced manufacturing operations in 1989. Over the years, it
has built a customer base of more than 400 clients, and has an
established presence in leading markets such as the US, Belgium,
Israel, and Hong Kong.

Alpa Diamond is a partnership concern based in Mumbai. It
undertakes cutting and polishing operations for D A Jhaveri on a
job-work basis.

For 2008-09 (refers to financial year, from April 1 to March 31),
the D A Jhaveri group reported a net profit of INR20 million on
net sales of INR2.9 billion, against a net profit of INR78 million
on net sales of INR2.6 billion for 2007-08.


DECCAN POLYPACKS: CRISIL Assigns 'B' Rating on INR55MM Bank Debts
-----------------------------------------------------------------
CRISIL has assigned its ratings of 'B/Stable/P4' to Deccan
Polypacks Ltd's bank facilities.

   Facilities                             Ratings
   ----------                             -------
   INR55.0 Million Cash Credit Limit      B/Stable (Assigned)
   INR45.0 Million Letter of Credit       P4 (Assigned)
   INR2.0 Million Bank Guarantee          P4 (Assigned)

The ratings reflect DPL's weak financial risk profile, marked by
weak debt protection measures and exposure to risks relating to
intense competition, and small scale of operations, in the woven
sacks industry.  These rating weaknesses are partially offset by
DPL's moderate business risk profile, marked by long track record
in the industry.

Outlook: Stable

CRISIL expects DPL to maintain its business risk profile backed by
long-term track record. However, its financial risk profile is
expected to remain weak due to high gearing and weak debt
protection measures. The outlook may be revised to 'Positive' if
the company's financial risk profile improves substantially,
supported by capital infusion and improvement in topline and
operating margins. Conversely, the outlook may be revised to
'Negative' if the company's financial risk profile deteriorates on
account of large, debt-funded capex and further deterioration in
margin.

                        About Deccan Polypacks

Incorporated in 1984 as private limited company, DPL converted
into public limited company in 1985.  It manufactures woven sacks.
The total capacity of the company's manufacturing unit at Medak
(Andhra Pradesh) is 3243 tonnes per annum.

DPL reported a profit after tax (PAT) of INR2.6 million on net
sales of INR281.9 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR3.9 million on net
sales of INR280.3 million for 2007-08.


ECOHOMES CONSTRUCTIONS: CRISIL Rates INR132.5MM Term Loan at 'BB'
-----------------------------------------------------------------
CRISIL has assigned its rating of 'BB/Negative' to Ecohomes
Constructions Pvt Ltd's term loan facility.

   Facilities                       Ratings
   ----------                       -------
   INR132.5 Million Term Loan       BB/Negative (Assigned)

The rating reflects ECPL's exposure to risks relating to
inadequate coverage for loan against securitization of lease
rentals against its 'Ecolite' property, to geographical
concentration in revenue profile, to high degree of lending to
group companies for land purchases, and to cyclicality in the real
estate sector.  These rating weaknesses are partially offset by
the benefits that ECPL derives from the absence of significant
debt-funded project plans, and healthy saleability of its ongoing
projects.

Outlook: Negative

CRISIL expects ECPL's financial risk profile to deteriorate over
the medium term primarily on account of a weak capital structure
and slowdown in the real estate sector.  The outlook may be
revised to 'Stable' if the company generates more than expected
cash accruals from ongoing projects, and substantial advances for
future projects, leading to improvement in its capital structure.
Conversely, the ratings may be downgraded if ECPL takes on large
debt for future projects, or if the company reports lower than
expected off-take for current and future projects.

                    About Ecohomes Constructions

Incorporated in 2002 by the Monga and Patel families, ECPL
(formerly, Dynamind Construction Pvt Ltd) ECPL undertakes
development of mid-range residential and commercial properties.
Over the last nine years, the company has executed six residential
and three commercial projects in and around the Andheri region of
Western Mumbai.

ECPL reported a profit after tax (PAT) of INR51.7 million on net
sales of INR180.5 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR68.4 million on net
sales of INR145.3 million for 2007-08.


EVEREADY SPINNING: CRISIL Puts 'BB+' Ratings on Various Bank Debts
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of Eveready Spinning Mills
Pvt Ltd, an Eveready group entity, continue to reflect the group's
below-average financial risk profile marked by high gearing, its
exposure to fluctuations in raw material prices, and its large
working capital requirements.  These weaknesses are partially
offset by the group's established market position supported by
longstanding relationships with customers.

   Facilities                         Ratings
   ----------                         -------
   INR171.00 Million Proposed Long    BB+/Stable (Assigned)
           Term Bank Loan facility
   INR72.30 Million Long-Term Loan    BB+/Stable (Reaffirmed)
   INR110.00 Million Cash Credit      BB+/Stable (Reaffirmed)
   INR10.00 Million Bank Guarantee    P4+ (Reclassified from 'P4')

For arriving at its ratings, CRISIL has combined the financials of
ESMPL and Mani Spinning Mills Pvt Ltd.  This is because both ESMPL
and Mani Mills, together referred to as the Eveready group, are
under a common management, are in the same line of business, and
have operational and financial linkages, including fungible funds,
with each other.

Outlook: Stable

CRISIL believes that the Eveready group will maintain its
financial risk profile over the medium term on the back of steady
accruals.  The outlook may be revised to 'Positive' if the group's
gearing and profitability improve significantly, resulting in
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' if the group undertakes a large,
debt-funded capital expenditure programme, or if its revenues
decline and profitability deteriorates.

                         About the Group

Eveready Mills, set up in 1998, manufactures cotton yarn of count
size ranging from 30s to 40s.  The group set up Fisher Spinning
Mills Pvt Ltd (Fisher Mills) to manufacture yarn of low count, and
Mani Mills with a capacity of 60,000 spindles and 720 rotors to
manufacture hosiery yarn. Fisher Mills was merged with Mani Mills
in 2006.

The Eveready group reported a loss of INR34.8 million on a
turnover of INR1.73 billion for 2008-09 (refers to financial year,
April 1 to March 31), against INR103.1 million and INR1.78
billion, respectively, for 2007-08.


EVERGREEN VENEERS: CRISIL Puts 'BB-' Rating on INR25MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB-/Stable/P4+' to the various
bank facilities of Evergreen Veneers Pvt Ltd.

   Facilities                            Ratings
   ----------                            -------
   INR25.00 Million Cash Credit          BB-/Stable (Assigned)
   INR150.00 Million Letter of Credit    P4+ (Assigned)
   INR0.50 Million Bank Guarantee        P4+ (Assigned)

The ratings reflect EVPL's small scale of operations in the
intensively-competitive plywood and veneer industry coupled with
its large working capital requirements.  These weaknesses are,
however, partially offset by EVPL's moderate financial risk
profile, and the benefits it derives from the experience of its
promoters.

Outlook: Stable

CRISIL believes that EVPL will maintain a stable credit risk
profile over the medium term, on the back of its established
presence in the plywood and veneer business. The outlook may be
revised to 'Positive' if the company's financial risk profile
improves significantly, supported by a sustainable scale-up in
operations and margins. Conversely, the outlook may be revised to
'Negative' if the company undertakes large debt-funded capital
expenditure.

                      About Evergreen Veneers

EVPL, set up in 1992 by Mr. Lakshmichand Garg, was acquired by
Mr. Ashok Kumar Agarwal and Mr. Vijay Gupta in 2001.  Based at
Vishakhapatnam, the company manufactures veneers and plywood. The
entire timber requirement is met by imports from Malaysia,
Myanmar, and New Zealand.  The company sells veneer to plywood
manufacturers in South India. It sells plywood under its own
brands, Du'k Ply, Monteck Ply, Imax Ply, Mount Ply.

EVPL reported a profit after tax (PAT) of INR2.4 million on net
sales of INR386.9 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR2.1 million on net
sales of INR377.0 million for 2007-08.


GARG INDUSTRIES: CRISIL Assigns 'BB' Rating on INR75.9MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Garg Industries Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR125 Million Cash Credit       BB/Stable (Assigned)
   INR75.9 Million Term Loans       BB/Stable (Assigned)
   INR55 Million Letter of Credit   P4+ (Assigned)

The ratings reflect GIL's diverse product mix, improving operating
efficiency, and its promoters' industry experience.  These rating
strengths are partially offset by GIL's small scale of operations,
exposure to intense competition, the vulnerability of its
operating margin to raw material price volatility, and its average
financial risk profile marked by low net worth.

Outlook: Stable

CRISIL believes that GIL will continue to benefit from its product
diversity, established local market position, and improving
operating efficiency.  However, the company will remain highly
leveraged over the medium term because of its large working
capital borrowings and relatively low net cash accruals.  The
outlook may be revised to 'Negative' if GIL's gearing
deteriorates, or if its operating profitability is below
expectation.  Conversely, the outlook may be revised to 'Positive'
if the company reports higher-than-expected cash accruals on a
sustained basis, or in case of fresh equity infusion into the
company, leading to improvement in its financial risk profile.

                      About Garg Industries

Incorporated in 1991 by Mr. Balraj Garg, GIL is engaged in the
production of wire rods, squares, Thermo-mechanical treatment
(TMT) bars, steel ingots, and rounds.  The company has two
divisions: induction furnace and hot-rolling mill. The induction-
furnace division has a total capacity of 6 tonnes per hour. The
rolling mill has an installed capacity of 200 tonnes per day.

For 2008-09 (refers to financial year, April 1 to March 31), GIL
reported a profit after tax of INR4.2 million (INR15.1 million for
2007-08) on net sales of INR787 million (INR676 million).


GOLDEN JUBILEE: ICRA Assigns 'LBB+' Rating on INR3.5BB LT Loans
---------------------------------------------------------------
ICRA has assigned an 'LBB+' rating to the INR3,500 million long
term loans of Golden Jubilee Hotels Limited.  The outlook on the
rating is stable.  ICRA has also assigned an A4+ rating to the
INR350 million non-fund based limits of the company.

While the ratings reflect the strength and experience of the
promoters and the lead developer-headed by Mr. LN Sharma in the
field of hospitality, the project risk (timely and cost effective
implementation of the project) and the market risk (the large
expected addition to room inventory in the 5-star/Deluxe Hyderabad
market) are issues of concern.  The project also is yet to obtain
a pending approval from the municipality which is expected
shortly, as the project is a Public Private Project (PPP) and all
clearances are covered under a single window clearance mechanism.
The management tie-up with EIH Limited for operating the two
properties under the established Trident and Oberoi brands is a
source of comfort to the project.  Additionally, the project is
nearing financial closure having completed debt tie-up and
significant equity infusion.  The ratings also factor in the
inherent cyclicality of the hotel industry.


JCO GAS: CRISIL Downgrades Rating on INR350MM Term Loan to 'B-'
---------------------------------------------------------------
CRISIL has downgraded its rating on JCO Gas Pipes Ltd's bank loan
facilities to 'B-/Negative' from 'BB+/Positive'.

   Facilities                       Ratings
   ----------                       -------
   INR300.0 Million Cash Credit     B-/Negative (Downgraded from
                                                   BB+/Positive)

   INR350.0 Million Term Loan       B-/Negative (Downgraded from
                                                   BB+/Positive)

The downgrade reflects JCO's inability to scale up the production
as expected earlier, and consequent large losses expected to be
incurred in its first year of operations.  The downgrade also
reflects CRISIL's belief that JCO's debt servicing ability, which
has been adversely affected because of the losses, will remain
constrained unless the promoters extend funding support or the
company's loans are refinanced.

CRISIL's previous rating had assumed timely completion of the
project and subsequent scaling up of production.  While the
company completed its project in time, it could not scale up its
production as expected, due to significant delays in product
registration with the Bureau of Indian Standards (BIS) and in
obtaining of approval from various Jal boards, who are the end-
users of JCO's products. Significant losses expected to be
incurred in 2009-10 (refers to financial year, April 1 to
March 31) compared with CRISIL's earlier expectation have
adversely impacted the company's ability to service debt on time
resulting in stretched liquidity.

Low scale of operations and the resultant losses are expected to
result in debt service coverage ratio (DSCR) of less than 1 time
for 2009-10.  This is against CRISIL's earlier expectation of a
DSCR of more than 1 time.  On account of expected low DSCR during
the initial years, JCO may face difficulty in meeting its debt
obligations in this period without the additional support from its
promoters or refinancing of its loans.

The ratings reflect JCO's weak financial risk profile marked by
weak liquidity, and small scale of operations and limited pricing
power vis--vis larger players in the helical submerged arc-welded
(HSAW) pipe manufacturing business. These rating weaknesses are
partially offset by the benefits JCO is expected to derive from
the strong growth prospects in the submerged arc-welded (SAW) pipe
industry.

For arriving at its ratings, CRISIL has treated the preference
shares issued to the promoters (DP Jindal group) neither as debt
nor as equity due to the bank loan agreement stipulation that
these shares cannot be redeemed over the next 12 years, before the
term debt is wholly repaid; furthermore, the management has stated
that the dividend on these shares will not be paid until JCO has
sufficient funds to repay its term debt installment.

Outlook: Negative

CRISIL believes that JCO's financial risk profile and liquidity
will remain weak over the near to medium term due to the negative
accruals expected in the initial year of operation. JCO's debt
repayment ability in the month of March 2010, when the company is
to pay its quarterly debt obligation of INR10.4 million, will be
constrained unless promoters infuse funds or the debt repayment is
rescheduled or refinanced. The rating will be downgraded in case
of a delay in the repayment of term loan installments. Conversely,
the outlook may be revised to 'Stable' if the company establishes
a track record of increased cash flows from the project, thereby
easing the pressure on liquidity.

                           About JCO Gas

JCO, a 50-50 joint venture between the DP Jindal group and the
Chokhani group, was formed as part of the DP Jindal group's entry
into the helical submerged arc-welded (HSAW) pipe manufacturing
segment.  The company has set up a 50,000 tonnes per annum (tpa)
HSAW pipe facility in Chhindwara (Madhya Pradesh). The commercial
production started from April 2009. The company currently caters
to the domestic water transportation segment.


HYT ENGINEERING: CRISIL Places 'C' Ratings on INR101.6MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its ratings of 'C/P4' to the bank facilities
of HYT Engineering Co Pvt Ltd, part of the HYT Group.

   Facilities                        Ratings
   ----------                        -------
   INR200 Million Cash Credit        C (Assigned)
   INR101.6 Million Term Loan        C (Assigned)
   INR15 Million Letter of Credit    P4 (Assigned)
   INR480 Million Bank Guarantee     P4 (Assigned)

The ratings reflect HECPL's stretched liquidity with instance of
delay by group companies in meeting term loan obligations.  The
ratings also reflect HYT group's exposure to risks relating to the
ongoing investigation of corruption charges against the group, the
group's small scale of operations, and high customer concentration
in revenue profile.  The impact of these weaknesses is mitigated
by the benefits the group derives from the expected improvement in
its financial risk profile because of private equity investment,
and its promoter's extensive experience and established position
in the special purpose railway machines segment.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of HECPL, HYT Machines Pvt Ltd and HYT
Innovative Projects Pvt Ltd, collectively referred to, herein, as
the HYT group.  This is because HECPL, HMPL, and HIPPL are under
the same management and have made intra-group investments. After
the completion of private equity investment in HIPPL, HECPL and
HMPL will collectively own a 27.3-per cent stake in HIPPL.
Furthermore, HCEPL and HMPL are in the same line of business, as
both companies manufacture machines for Indian Railways and have
significant inter-company transactions. Moreover, these entities
provide funding support to each other in the form of unsecured
loans. All the entities have also provided cross-corporate
guarantee for each other's bank facilities in the past.

                          About the Group

HECPL and HMPL manufacture special-purpose machines used to
manufacture and maintain wheel and axle assemblies in railway
locomotives, wagons, and coaches. The two companies, together,
have six manufacturing units in Pune (Maharashtra). HIPPL
manufactures precision tubes used in a wide range of defence
projects such as missiles and nuclear reactors.

The group's promoter, Mr. Bhojraj Hemraj Teli, has decided to sell
a 50-per cent stake in HIPPL to a private equity fund, Cogent
Global, for a total investment of INR250 million in 2009-10
(refers to financial year, April 1 to March 31).

The HYT group reported a profit after tax (PAT) of INR29 million
on net sales of INR505 million for 2007-08, as against a PAT of
INR15 million on net sales of INR311 million for 2006-07.


MANI SPINNING: CRISIL Reaffirms 'BB+' Rating on Cash Credit
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Mani Spinning Mills Pvt
Ltd, an Eveready group entity, continue to reflect the group's
below-average financial risk profile marked by high gearing, its
exposure to fluctuations in raw material prices, and its large
working capital requirements.  These weaknesses are partially
offset by the group's established market position supported by
longstanding relationships with customers.

   Facilities                           Ratings
   ----------                           -------
   INR56.00 Million Proposed Long       BB+/Stable (Assigned)
         Term Bank Loan Facility

   INR1063.30 Million Long-Term Loan    BB+/Stable (Reaffirmed)
   INR550.00 Million Cash Credit        BB+/Stable (Reaffirmed)
   INR20.00 Million Bank Guarantee      P4+ (Reaffirmed)

For arriving at its ratings, CRISIL has combined the financials of
MSMPL and Eveready Spinning Mills Pvt Ltd.  This is because both
MSMPL and Eveready Mills, together referred to as the Eveready
group, are under a common management, are in the same line of
business, and have operational and financial linkages, including
fungible funds, with each other.

Outlook: Stable

CRISIL believes that the Eveready group will maintain its
financial risk profile over the medium term on the back of steady
accruals.  The outlook may be revised to 'Positive' if the group's
gearing and profitability improve significantly, resulting in
improvement in its financial risk profile.  Conversely, the
outlook may be revised to 'Negative' if the group undertakes a
large, debt-funded capital expenditure programme, or if its
revenues decline and profitability deteriorates.

                         About the Group

Eveready Mills, set up in 1998, manufactures cotton yarn of count
size ranging from 30s to 40s. The group set up Fisher Spinning
Mills Pvt Ltd to manufacture yarn of low count, and MSMPL with a
capacity of 60,000 spindles and 720 rotors to manufacture hosiery
yarn. Fisher Mills was merged with MSMPL in 2006.

The Eveready group reported a loss of INR34.8 million on a
turnover of INR1.73 billion for 2008-09 (refers to financial year,
April 1 to March 31), against INR103.1 million and INR1.78
billion, respectively, for 2007-08.


SUNSTAR PRECISION: ICRA Places 'LB' Rating on INR309MM Bank Debts
-----------------------------------------------------------------
ICRA has assigned long term rating of 'LB' to the term loans of
INR309 million and fund based limits of INR50 million of Sunstar
Precision Forge Limited.  ICRA has also assigned short term rating
of A4 to the company's non-fund based facilities of INR5 million.

The assigned ratings take into account the weak operating
performance of the company during FY08 and FY09, weak financial
profile due to accumulated losses & stretched liquidity position
and high working capital intensity.  The rating also factors in
the continued financial support from promoters in the form of
equity/unsecured loans and the improving outlook for global as
well as domestic auto market.

Sunstar Precision Forge Limited has been promoted by three
families i.e. Gargs, Guptas and Goels.  The company is involved in
forging and machining of auto components for Indian as well as
international players.  The manufacturing facility is located in
Greater Noida and has an area of around 80,000 sq. meters.

Gargs and Goels are partners in manufacturing of katha for the
last 12-13 years.  This business is carried through 2 private
companies namely, Shiva Katha Pvt Ltd.and Swastik Katha Pvt Ltd.
Both o.10, 36th milestone Delhi-Rothak Road, District
Rothak,Haryana.  In addition to this, Garg family is engaged in
wholesale trading of dry fruits, Kirana items, betel nut etc. This
business is carried from Tilak Bazar, Khaari Baoli, Delhi office.
They are engaged in this business for the last 30-40 years. Goels
are also engaged in wholesale and retail trading of Iron and Steel
and manufacturing of agricultural Implements. Both these business
are carried at Sampla, Distt.Rothak, Haryana.

Guptas are related to Gargs and are in forging business for the
last 30 years. Mr.Sadhu Ram Gupta,a Director on our board is a
Director of Sadhu Forging Limited, Faridabd for the last 30 years.
Mr.Vinay Kumar Gupta has worked as Executive Director in Sadhu
Forging Ltd. for 6 years.  The Gupta family has exited from SPFL
since February 2008 and Mr. Vijay Kumar Gupta & Mr.Sadhu Ram Gupta
have ceased as Directors of the company.

Recent Results

The company has reported a net loss of around INR94.4 million on
the operating income of around INR144.9 million during FY09.


VAYHAN COFFEE: ICRA Assigns 'LB' Rating on INR510MM Term Loans
--------------------------------------------------------------
ICRA has assigned an 'LB' rating to the INR510.0 million term
loans and INR2.5 million non-fund based facilities of Vayhan
Coffee Limited.  ICRA has also assigned an A4 rating to INR120
million fund based limits and INR25 million non-fund based
limits of VCL.

The assigned ratings are constrained by VCL's limited operating
history, its small scale of operations and its exposure to
currency fluctuations and volatility in coffee bean prices. The
rating is also constrained by the company's dependence on single
product -- spray dried instant coffee, a segment that is
characterized by high competitive intensity and lower contribution
margin relative to freeze dried instant coffee. ICRA also notes
that VCL's operations are still to stabilize as commercial
production started towards the end of October 2008.  In addition,
there was a delay in sanction of working capacity limits. Thus,
the company has been facing liquidity problems as evident from
delays in payments of installments for the term loans taken for
setting up the plant.  The ratings, however, draws comfort from
the extensive exposure of VCL's management to coffee industry and
the good initial response that VCL's product has got from the
market as reflected in an adequate order book position from
international customers in the private labelling and trading house
segments.  ICRA notes that within ten months of the start of
commercial production, VCL was able to attain over 80% capacity
utilization in August 2009, and was able to market more than 60%
of its output in first five months of 2009-10 to private labellers
who offer higher realizations.

                        About Vayhan Coffee

Vayhan Coffee Limited was incorporated on December 22, 2005.  The
promoters of the company are D.R.S. Paramananda Raju, D. Rama
Raju, K.V.K. Raju and H.N.Tarafdar.  VCL manufactures and exports
spray dried and agglomerated instant coffee to various countries
in Asia, Europe and Africa.  The company has setup an export
oriented Instant Coffee plant at West Godavari District, Andhra
Pradesh (AP) with an installed capacity of 3600 tons per annum
(TPA).


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


BEST DENKI: To Wind-Up Sakuraya Unit Next Month Due to Losses
-------------------------------------------------------------
Best Denki Co. Ltd. said Tuesday that Sakuraya Co., its consumer
electronics retail unit, will pull the plug on its business by the
end of the current business year to February 28, Japan Today
reports.  Sakuraya will subsequently be liquidated as it is
unlikely to turn around its money-losing operations, the report
says.

According to the report, Best Denki also raised its group net loss
projection for the current business year to JPY30.18 billion from
JPY1.37 billion as it anticipates an extraordinary loss of around
JPY22 billion partly in connection with deterioration in earnings
at Sakuraya.

Best Denki Co., Ltd. (TYO:8175) is a Japan-based company mainly
engaged in the sale of home electric appliances and information
communication equipment.  It has five business segments.  The
Electrical Home Appliance Retailing segment is involved in the
sale of electrical home appliances and information communications
equipment, as well as the sale of broadband-related information
technology products.  The Electrical Home Appliance Wholesaling
segment is engaged in the sale of products to its subsidiaries,
associated companies and franchised stores.  The Credit segment is
involved in the consumer loan business.  The Service segment is
engaged in the delivery of goods and the provision of post-sale
services, such as repair.  The Others segment is involved in the
construction, expansion and renovation of stores and houses, the
sale of land and buildings, as well as the leasing, amusement,
convenience store, printing and recruitment service businesses.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
September 11, 2009, Japan Credit Rating Agency, Ltd. affirmed the
'BB+' rating on Best Denki Co., Ltd.'s senior debts and bonds,
revising the rating outlook from Stable to Negative.


FORD MOTOR: Japan Unit to Recall 13,729 Units of Explorer SUV
-------------------------------------------------------------
Japan Today reports that Ford Motor Japan Ltd. will recall 13,729
units of its Explorer sport utility vehicles in Japan due to a
defect in the speed control deactivation system.

The Ministry of Land, Infrastructure, Transport and Tourism said
the vehicles subject to the recall were manufactured between
November 1994 and August 2002, the report relates.

According to the report, Ford said an improper structure in the
deactivation switch of the automated cruise control, which enables
drivers to drive cars at a certain speed without stepping down on
the pedal, could cause a fire as brake fluid may leak and produce
heat.

The ministry said that about 4.5 million units of the car have
been subject to recall in the United States, the report adds.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents.  With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo.  The company provides financial
services through Ford Motor Credit Company.

At September 30, 2009, the Company had US$203.106 billion in total
assets against US$210.376 billion in total liabilities.

On March 4, 2009, Ford deferred future interest payments on its
6.50% Junior Subordinated Convertible Debentures due January 15,
2032, beginning with the April 15, 2009 quarterly interest
payment.

                          *     *     *

As reported by the Troubled Company Reporter on November 4, 2009,
Moody's Investors Service upgraded the senior unsecured rating of
Ford Motor Credit Company LLC to B3 from Caa1.  This follows
Moody's upgrade of Ford Motor Company's corporate family rating to
B3 from Caa1, with a stable outlook.  Ford Credit's long-term
ratings remain on review for further possible upgrade.

On Nov. 3, 2009, S&P raised the corporate credit ratings on Ford
Motor Co. and Ford Motor Credit Co. LLC to 'B-' from 'CCC+'.  Ford
Motor Co. carries a long-term issuer default rating of 'CCC', with
a positive outlook, from Fitch Ratings.


JAPAN AIRLINES: Chapter 11-Type Restructuring Needed for Tie Up
---------------------------------------------------------------
Law360 reports that Japan Airlines Corp. may have to complete a
Chapter 11-type restructuring before it can enter into a tie-up
with American Airlines Inc. or Delta Air Lines Inc., both of which
have been trying for months to negotiate a deal with the carrier.

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

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

                         *     *     *

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

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


JAPAN AIRLINES: Looming Bankruptcy to Affect 10,000 Firms
---------------------------------------------------------
Aki Ito at Bloomberg News reports Tokyo Shoko Research Ltd. said
Wednesday that Japan Airlines Corp.'s bankruptcy would have a
"nationwide" impact.  The research agency estimated more than
10,000 companies have business tied to Asia's largest carrier, the
report says.

Citing Tokyo Shoko's report released yesterday, Bloomberg
discloses that some 2,910 domestic firms cite a company within
Japan Air's group as one of their five biggest clients in terms of
sales.  Those firms that do business with JAL also transact with
10,424 companies, the research organization said.

According to Bloomberg, Tokyo Shoko said a reduction in JAL's
routes may also depress sales for businesses that cater to the
passengers at regional airports.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 12, 2010, Kyodo News reports that Japan Airlines is expected
to cut 15,600 jobs, or about 30% of its group workforce, by the
business year through March 2013 under a rehabilitation plan being
compiled by state-backed Enterprise Turnaround Initiative Corp. of
Japan.

Sources told Kyodo that the layoffs, along with cuts in benefits
and wages, will be carried out together with the sale of its
subsidiaries including JAL Hotels Co.  JAL's workforce will be
trimmed to about 36,000 employees by fiscal 2012, Kyodo related.

According to Kyodo, the ETIC plans to decide on its bailout
package for JAL as early as January 19, at the same time the
airline is expected to file for court-backed bankruptcy
proceedings.

The Wall Street Journal's Mariko Sanchanta reports JAL's main bank
creditors, including Mizuho Corporate Bank, Bank of Tokyo-
Mitsubishi UFJ and Sumitomo Mitsui Banking Corp., had been the
most vocal opponents to a court-led rehabilitation plan as they
feared it would wipe out most of their loans outstanding to JAL.
People familiar with the situation have told the Journal the bank
creditors now believe that such a plan is inevitable.

The Journal reports that under the proposal drafted by the ETIC,
loan waivers by the banks, including a debt-for-equity swap, would
total more than JPY300 billion.  According to the Journal, Mizuho
Corporate Bank, which is part of Mizuho Financial Group Inc., and
Bank of Tokyo-Mitsubishi UFJ, part of Mitsubishi UFJ Financial
Group Inc., each have about JPY50 billion in loans outstanding to
JAL.  Sumitomo Mitsui, a unit of Sumitomo Mitsui Financial Group
Inc., has about JPY30 billion in loans outstanding.

                             About JAL

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

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

                         *     *     *

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

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


JAPAN AIRLINES: Qantas May Keep Codeshare Agreement
---------------------------------------------------
Robert Fenner at Bloomberg News reports that Qantas Airways Ltd.
may keep codeshare arrangements with Japan Airlines Corp. even if
the carrier defects to the rival SkyTeam airline alliance.

The report, citing analysts at Macquarie Group Ltd. by Russell
Shaw, relates that Qantas shares common flight numbers with
airlines such as Air France-KLM, a member of SkyTeam, and similar
arrangements may be kept if Tokyo-based Japan Air leaves their
Oneworld coalition.

"Qantas currently enjoys a longstanding codeshare arrangement with
Japan Airlines, and would be eager to maintain this regardless of
JAL's future allegiance," Bloomberg cited Mr. Shaw in its Jan. 12
client notes.  Qantas is still likely to maintain the status quo,
he wrote, affirming his "outperform" rating on the Sydney-based
airline, according to Bloomberg.

Macquarie said flights between Japan and Australia represent about
6% of Qantas' available capacity and the route is "material" to
the company, Bloomberg notes.

According to the report, Mr. Shaw said any defection to SkyTeam
would be a "major dent" in Oneworld, leaving it the smallest of
the three global associations that also includes Star Alliance.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 13, 2010, American Airlines, along with fellow oneworld
Alliance founding members British Airways, Qantas Airways and
Cathay Pacific Airways, outlined US$2 billion in commercial
benefits to Japan Airlines over three years.  The enhanced
oneworld proposal would provide JAL the best path to future
success while minimizing risk for the Japanese government and
taxpayers and maximizing the benefits for air travelers.

The group said that the enhanced, broad-based commercial offer
would serve as a key component of a comprehensive, government-led
restructuring plan for JAL.  As part of the proposal, JAL would
remain a key partner in oneworld, a collection of 11 of the most
respected brands in the airline industry.  The proposal also
includes a pledge -- if welcomed -- to offer JAL guidance and
expertise from partners that have successfully executed airline
restructurings.

Early in December, American's parent AMR Corp. 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 Wall Street Journal, the pledged
support had previously been in the form of logistical and
management help for JAL, but AMR Chief Executive Gerard Arpey
hinted the partners could also provide capital.

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

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

                         About AMR Corp.

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

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

                           *     *     *

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

                     About Delta Air Lines

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

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

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

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

                           *     *     *

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

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

                           About JAL

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

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

                           *     *     *

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

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


JAPAN AIRLINES: Government Taps Inamori to Lead JAL's Revival
-------------------------------------------------------------
Jonathan Soble at The Financial Times reports that the Japanese
government has asked Kazuo Inamori, founder of the Kyocera Corp.,
to lead Japan Airlines Corp. out of its looming bankruptcy.

The FT relates that Japan Prime Minister Yukio Hatoyama on
Wednesday asked Mr. Inamori to take over as JAL chief executive
after current boss Haruka Nishimatsu steps down possibly next
week, when JAL is expected to file a formal request for court
protection from holders of its more than JPY1.4 trillion in
liabilities.

Mr. Inamori, who also founded mobile phone operator KDDI Corp.,
accepted the request, adding that he would work without pay and
planned to choose a chief operating officer from within JAL's
management, the FT says.

Mr. Inamori told reporters in Tokyo yesterday that "I'm a total
novice when it comes to the transportation industry," according to
Bloomberg News.  "I've decided to accept because the government
and the turnaround body want to prevent JAL's failure by any
means," he said.

"The revival of Japan Airlines is deeply connected to the revival
to the Japanese economy," the FT quoted Mr. Hatoyama as saying.
"I have great expectations for a man whose managerial skill built
Kyocera and KDDI in a single lifetime."

Bloomberg discloses that Mr. Inamori, worth US$920 million,
according to Forbes, founded Kyocera, a Japanese maker of solar
cells and electronic devices, in 1959.

Mr. Inamori also set up one of the three companies that merged in
2000 to become KDDI Corp., Japan's second-biggest wireless
operator, Bloomberg relates citing a profile on the Inamori
Foundation Web site.  He founded a chain of management schools to
teach his business philosophy and became a Buddhist priest in
1997, Bloomberg adds.

The FT states that JAL's fate is now in the hands of the
government and the Enterprise Turnaround Initiative Corporation,
the state-backed investment fund that is finalizing a
restructuring plan for the airline.

The FT, citing people familiar with the matter, says it is likely
to include a JPY300 billion capital injection from the fund and
several hundred billion yen in loan forgiveness from JAL's banks.
Delta Air Lines and American Airlines, the FT notes, have tabled
rival proposals to invest in JAL to broaden their reach in Asia.

According to the FT, transport minister Seiji Maehara said Tuesday
that JAL's three main commercial lenders -- Mizuho Financial,
Mitsubishi UFJ Financial and Sumitomo Mitsui Financial -- have
broadly agreed to a restructuring that would cut JAL's debt while
keeping it flying.

                            About JAL

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

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

                          *     *     *

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

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


JAPAN AIRLINES: Wins Retirees Approval for 30% Pension Cuts
-----------------------------------------------------------
Lindsay Whipp and Robin Harding at The Financial Times report that
Japan Airlines Corp. on Tuesday finally won the two-thirds of
support it needs from its retirees to sharply cut their pensions.

According to the FT, the carrier said that 67% of its existing
retirees, or 5,991 out of 8,936 already retired employees, had now
agreed to the requested 30% cut in pension pay-outs.

The FT relates that JAL last week won approval from 91% of the
15,742 existing employees on the same pension scheme that was
introduced in 1992, after the company was privatized.  The scheme
includes about a third of JAL's workforce, the FT notes.

The agreement, the FT relates, should significantly help JAL,
whose pension-related obligations account for more than a quarter
of its JPY1,400 billion (US$15 billion) in interest-bearing debt.
It is also seen as crucial for the loss making airline's future as
well as being a key demand of bankers who have been asked to
forgive several hundred billion yen in loans, the FT adds.

                            About JAL

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

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

                           *     *     *

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

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


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


HYNIX SEMICONDUCTOR: Credit Suisse Prefers Local Buyers for Stake
-----------------------------------------------------------------
Jung-Ah Lee at Dow Jones Newswires reports that Credit Suisse Ltd.
said it is appropriate to sell the stake held by the creditors of
Hynix Semiconductor Inc. only to domestic investors.

According to Dow Jones, Kim Kwang-joon, director of Credit
Suisse's investment banking department, said once local companies
show an interest in acquiring the stake by the end of this month,
the creditors will choose the preferred bidder in the second
quarter of this year.

Dow Jones, citing an executive of the Korea Finance Corporation,
relates that the potential buyer for the stake can only purchase a
minimum stake of 15%.

Kevin Cho at Bloomberg News, meanwhile, reports that Credit Suisse
said Hynix's creditors may help finance an acquisition of their
controlling stake in the company.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 27, 2009, Hynix Semiconductor Inc.'s creditors re-invited
fresh bids for a major stake in the chipmaker and receive letters
of intent from potential investors by January after Hyosung Corp.
dropped its bid.

Invitational notices for South Korean companies to submit bids
went out Dec. 20.  Letters of intent to buy Hynix will be accepted
by Jan. 29, Kyodo News said.  No local company has so far shown
any interest in the offer.

The stake sale, which is estimated to be worth KRW4.5 trillion is
being managed by Credit Suisse Ltd., Woori Investment & Securities
Co. and state-run Korea Development Bank.

Jung-Ah Lee and Shin Jung-Won at Dow Jones Newswires, citing the
Electronic Times, reported last week that the United Arab Emirates
government has shown an interest in buying a stake in Hynix
Semiconductor.  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 related.

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.


KUMHO ASIANA: Fires 7 CEOs Amid Liquidity Crisis
------------------------------------------------
Kumho Asiana Group dismissed seven key executives at its
affiliates Tuesday as it grappled with a liquidity crisis due to
weak earnings and high financial leverage, according to Yonhap
News.

According to the news agency, the reshuffle saw seven out of 18
CEO-level positions at Kumho Asiana affiliates leave the group.
The group said in a statement they included Oh Nam-soo, head of
the group's strategic management division.  Ki Ok, chief executive
officer of Kumho Petrochemical Co., will replace Oh, Yonhap says.

                 Kumho Industrial to Remain Listed

Kumho Industrial, a unit of cash-strapped Kumho Asiana Group, will
likely remain as a publicly traded company as the state-run Korea
Development Bank and other creditors have decided to keep it
listed on the local bourse, The Korea Times reports.

The Times relates that Kumho Industrial's capital has completely
evaporated due to the put option deal that it signed with
financial investors when taking over Daewoo Engineering &
Construction (E&C) in 2006 in return for investments.

Based on the Korea Exchange (KRX) rules, the report notes, listed
firms that have insufficient capital or those under a debt
repayment program will be delisted from the market.

According to the report, the creditors are planning to keep it
listed in order to smoothly carry out a debt rescheduling program
and minimize their losses.  This can be done by forcing Kumho
Industrial to convert its debt into equity, reduce its capital and
implement drastic restructuring measures to bring down its debt
level, the Times states.

"We decided to keep Kumho Industrial listed because if it was
kicked out, we would be saddled with equities and bonds of an
unlisted entity, which is too risky for us.  Before the company
issues its fiscal 2009 business report in March, we will finalize
a debt retooling scheme to resolve its capital erosion and other
financial issues," an official at one of creditor banks was quoted
as saying by The Korea Times.

As reported in the Troubled Company Reporter-Asia Pacific on
January 7, 2010, Yonhap News said creditor banks of Kumho
Industrial agreed to freeze debt repayments by the builder for
three months.  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, Woori Bank 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.  The creditors plan to
provide fresh loans to Kumho Industrial to help revive the company
as soon as possible, Yonhap added.

The Korea Times also reported that state-run Korea Development
Bank and other financial firms have decided to freeze debts of
Kumho Petrochemical and Asiana Airlines for one year to help the
Kumho Asiana tide over its worsening cash flow problem.

Kumho Asiana unveiled a restructuring plan on January 5 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 reported.

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

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.


===============
M A L A Y S I A
===============


AKN TECHNOLOGY: Enhanced Regularization Plan Submitted
------------------------------------------------------
HwangDBS Investment Bank Berhad, on behalf of AKN Technology
Berhad, disclosed that an enhanced regularization plan has been
submitted to Bursa Malaysia Securities Berhad.

The regularization plan now comprises:

   (a) existing businesses of AKN and its subsidiaries; and

   (b) corporate proposals,  details of which are set out
       below:

      (i) share capital reduction of AKN's existing issued and
          paid-up share capital which entails the cancellation
          of MYR0.60 of the par value of AKN pursuant to Section
          64 of the Companies Act, 1965;

     (ii) reduction of the capital redemption reserve of AKN
          pursuant to Section 64 of the act;

    (iii) reduction of the share premium account pursuant to
          Section 64 and Section 60(2) of the Act;

     (iv) set off of credit arising from the Proposed Capital
          Reduction, Proposed CRR Reduction and Proposed Share
          Premium Reduction against the accumulated losses of
          AKN; and

      (v) amendments to the Memorandum of Association of AKN.

KN Technology Berhad -- http://www.akn.com.my/-- is engaged in
manufacturing and trading of coating products.  Its manufacturing
segment comprises electroplating and provision of metal surface
protection services, recycling of parts and components,
manufacturing and trading of coating products.  This segment
offers products and services mainly in areas of electronics,
consumer and healthcare industry.  On July 31, 2006, the company
acquired Paramount Discovery Sdn. Bhd. (PDSB).  PDSB is involved
in the manufacturing of polymer coating solutions for the
production of powder-free gloves, particularly medical examination
and surgical gloves.  On May 17, 2007, the company completed the
disposal of Dragon Trading (Shanghai) Company Limited and the
business operation of Dragon Technology Distribution Company
Limited, which comprised designing, development and engineering of
application systems, and distribution of related semiconductor
chips/products and application software.

Poly Tower Ventures Berhad has been considered as an Affected
Listed Issuer under Practice Note No. 17/2005 of the Bursa
Malaysia Securities Berhad as the Company defaulted in its
principal and interest payments pursuant to Practice Note
No.1/2001 and is unable to provide a solvency declaration.

AKN Technology Berhad has been listed as an Amended Practice
Note 17 company as its auditors have expressed disclaimer opinion
on the company's annual audited accounts for the financial year
ended June 30, 2008.


POLY TOWER: Fails to Submit Annual Financial Statement
------------------------------------------------------
Poly Tower Ventures Berhad disclosed that the Company has failed
to submit its Annual Audited Financial Statements for the
financial year ended August 31, 2009.

The Company said it is still working with the external auditors to
expedite the finalizing of the said Annual Audited Financial
Statements.

PTV is expected to issue and submit its outstanding Annual Audited
Financial Statements for the year ended August 31, 2009,
tentatively by January 31, 2010.

Bursa Securities Securities Berhad on November 2, 2009, suspended
the trading of the securities of Poly Tower Ventures after the
Company failed to submit its quarterly report for the financial
period ended May 31, 2009, to Bursa Malaysia on or before Oct. 30,
2009.

Trading in the shares of Poly Tower will remain suspended.

Based in Malaysia, Poly Tower Ventures Berhad (KUL:POLYTWR) --
http://www.polytowerventures.com/-- is an investment holding
Company.  The Company's segments include investment holding and
property investment, manufacturing, and trading.  The Company is
engaged in manufacturing, marketing and exportation of plastic
bags, films, related products, trading of plastic packaging,
recycling of materials used by plastic industry, and property
investment.  The Company's subsidiaries include Poly Carriers
Industries (Malaysia) Sdn. Bhd, Poly Packaging Products Pty. Ltd.,
Kinsplastic Sdn. Bhd., Kinsplastic Vietnam Co. Ltd, and Bestari
Palms Sdn. Bhd.

Poly Tower Ventures Berhad has been considered as an Affected
Listed Issuer under Practice Note No. 17/2005 of the Bursa
Malaysia Securities Berhad as the Company defaulted in its
principal and interest payments pursuant to Practice Note
No.1/2001 and is unable to provide a solvency declaration.


                         *********

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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