TCRAP_Public/100719.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Monday, July 19, 2010, Vol. 13, No. 140

                            Headlines



A U S T R A L I A

ING REAL: Sells New Zealand Assets to Pay Debts
NUFARM LTD: S&P Downgrades Corporate Credit Rating to 'BB'
PROVIK GROUP: McGrathNicol Appointed as Receiver and Manager
SHENANNIGANS: Placed in Receivership; Ferrier Hodgson Appointed


C H I N A

E-LAND FASHION: Moody's Assigns 'Ba2' Corporate Family Rating
E-LAND FASHION: S&P Assigns 'BB-' Corporate Credit Rating
* CHINA: Half of Textile Firms May Collapse Amid Rising Yuan


H O N G  K O N G

ROLLS-ROYCE INDUSTRIAL: Lai and Haughey Step Down as Liquidators
SCIENTIFICATION-ATLANTA (HK): Commences Wind-Up Proceedings
SUCCESS BRIGHT: Court to Hear Wind-Up Petition on August 25
SUZUKI GOLDLY: Members' Final Meeting Set for August 9
UNITECH PRECISION: Kuroiwa and Fong Step Down as Liquidators

VEEHOM LIMITED: Commences Wind-Up Proceedings
WEETECK LIMITED: Kong Chi How Johnson Steps Down as Liquidator
YUEN & SONS: Placed Under Voluntary Wind-Up Proceedings
YUEN'S COMPANY: Placed Under Voluntary Wind-Up Proceedings


I N D I A

ACT EDUCATIONAL: CRISIL Rates INR179MM Long Term Loan at 'D'
AIR INDIA: To Use IGI's T3 Terminal as Hub; Discloses New Routes
AIR INDIA: National Aviation Aims to Cut Losses by 75% in 2011
BALABHANU ENTERPRISES: CRISIL Rates INR200 Million Credit at 'P4+'
BCL INDUSTRIES: CRISIL Reaffirms 'BB-' Rating on INR435MM Debts

J. KIRIT: CRISIL Rates INR50 Million Letter of Credit at 'P4+'
JET AIRWAYS: Inks Code Share Agreement With Kenya Airways
K.S. VENKATRAMAN: CRISIL Assigns 'BB' Rating to INR5MM LT Loan
KINETA MINERALS: CRISIL Upgrades Rating on INR1.2BB Loan to 'BB+'
ROHAN RAJDEEP: CRISIL Puts 'B+' Rating on INR1.12B Term Loan

SHIV SAI: CRISIL Reaffirms 'BB' Ratings on Various Bank Debts
THENI GURU: CRISIL Assigns 'B' Ratings on Various Bank Facilities


J A P A N

APROCEED CO: Moody's Reviews Ratings on Four Classes of Notes
JAPAN AIRLINES: To Hold Talks With Main Creditors Over Debt Waiver
JAPAN AIRLINES: Proposes to Cut Pilots' Salary by 25%


K O R E A

KOREA EXCHANGE: MBK Partners to Bid for Lone Star's Stake
SSANGYONG MOTOR: M&M Board to Decide on Ssangyong Bid by July 28
SSANGYONG MOTOR: To Sell Shipping Grounds to Shinsegae Group


N E W  Z E A L A N D

AIR NEW ZEALAND: Denies Buying 15% Stake in Virgin Blue
FINANCE & INVESTMENTS: Partners Agree to Lifetime Management Ban
PSIS LTD: S&P Changes Outlook to Positive; Affirms 'BB+/B' Rating




                         - - - - -


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A U S T R A L I A
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ING REAL: Sells New Zealand Assets to Pay Debts
-----------------------------------------------
ING Real Estate Entertainment Fund is raising AU$65 million
through new equity and the sale of its New Zealand assets to pay
down debt, The Sydney Morning Herald reports.

SMH relates IEF said it will raise AU$38.8 million through an
equity raising comprising of a AU$2.4 million placement and a
AU$36.4 million rights issue.  The underwritten two-for-one rights
issue at nine cents per unit has received the support of two
institutional unitholders, the report notes.

According to the report, contracts have been exchanged on the sale
of IEF's New Zealand portfolio, with proceeds expected to be $26.3
million.  The report notes that settlement on the sale will be
staged over a 12-month period from August.

The Troubled Company Reporter-Asia Pacific, citing The Sydney
Morning Herald, reported on September 4, 2009, that ING Real
Estate Entertainment Fund warned investors that it was in danger
of breaching its banking covenants if the value of its portfolio
of 36 pubs falls any further or if any of its pub tenants cannot
pay their rent.  SMH, citing a section of the notes in ING REEF's
financial statements, said at the time directors of the fund have
warned of "significant uncertainties" about the company's
financial position in the "going concern."  SMH added the company
revealed that the falling value of its pubs has increased its
loan-to-value ratio to a dangerously high 59.2%.  Under its
banking covenants it cannot exceed 60%, SMH stated.

ING Real Estate Entertainment Fund reported net losses of AU$54.12
million and AU$8.56 million for the years ended June 30, 2010 and
2009, respectively.

ING Real Estate Entertainment Fund (ASX:IEF) --
http://www.ingrealestate.com.au/-- is a property trust that
invests in entertainment and leisure venues throughout Australia
and New Zealand, and receives income from long-term leases to
experienced hotel operators.  The Fund's subsidiaries include
Bourbon Unit Trust, ING Real Estate Entertainment Subsidiary
Trust, IEF Victoria Trust, IEF NZ Subsidiary Trust and IEF NZ
Trust.


NUFARM LTD: S&P Downgrades Corporate Credit Rating to 'BB'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on Nufarm Ltd. to 'BB', from
'BBB-', after the company's latest earnings downgrade.  The rating
on Nufarm's Step-Up Securities has also been lowered to 'B' from
'BB'.  S&P has removed the ratings from CreditWatch with negative
implications, where they were initially placed on Sept. 28, 2009.
The rating outlook is negative.

"The ratings downgrade reflects S&P's belief that Nufarm's
business profile has deteriorated and the company will be unable
to achieve a financial profile commensurate with S&P's view of an
investment-grade rating despite the recent A$250 million capital
raising," Standard & Poor's credit analyst Richard Creed said.

In S&P's view, a key driver of the weakening of Nufarm's business
profile has been a structural change in the global glyphosate
market, which faces conditions of oversupply and intense price
competition that S&P believes are likely to persist in the medium
term.  S&P notes that unfavorable climatic conditions were the
primary driver for Nufarm's latest earnings downgrade, despite
Nufarm's geographic diversity.  Nevertheless, S&P believes this
earnings downgrade highlights a business profile that continues to
be vulnerable to volume and pricing pressures for its key
glyphosate product.

S&P considers Nufarm's financial profile to be "aggressive" due to
a combination of factors.  In addition to weak near-term credit
metrics, the company's liquidity continues to be exposed to a
significant refinancing challenge as the group rolls over its
seasonal debt facilities.  These facilities are essential to fund
the company's heavy use of working capital in the first half of
its fiscal year to build inventory for sales that peak in the
second half of the year.  Moreover, the company's flexibility to
manage any unexpected adverse variations to its business plan is
constrained by the inherent bias to sales peaking late in the
second half.

Mr. Creed added: "The negative outlook reflects the execution
risks associated with Nufarm's ability to successfully refinance
its bank lines -- of which one-third mature before the end of
calendar 2010 -- to provide adequate funding for the next season.
Achieving a waiver of the likely breach of Nufarm's bank interest
cover covenant in the wake of the earnings downgrade, in S&P's
view, will demonstrate the company retains the support of its
lenders and lend confidence the company will have adequate
liquidity to fund its working-capital needs.  The outlook may be
revised to stable following successful renewal of Nufarm's bank
facilities without the imposition of any material adverse terms
and conditions.  The rating could be lowered if Nufarm were unable
to secure its preferred level of financing, constraining its
working-capital funding.  Negative pressure on the ratings could
also arise if S&P believes that Nufarm's funds from operations
(FFO)-to-debt ratio is likely to be sustained below 15%."


PROVIK GROUP: McGrathNicol Appointed as Receiver and Manager
------------------------------------------------------------
Jamie Harris, Peter Anderson and John Cronin, Partners of
independent restructuring and corporate advisory firm McGrathNicol
were appointed on July 15, 2010, as receivers and managers of 17
companies that comprise the Provik Pty Ltd Group of Companies.

McGrathNicol's appointment followed the appointment of Robert
Hutson and Scott Kershaw of KordaMentha as administrators to the
Provik Group.

Control of the business and assets of the Provik Group now rests
with the receivers and managers, McGrathNicol said in a statement.

The receivers and managers have confirmed they will continue
serving the Provik Group customers and tenants and trading the
businesses as they establish the most appropriate way forward.

John Cronin, Partner at McGrathNicol said: "Our immediate focus is
to work with the key stakeholders of the business including
employees, customers and the local community to understand the
operations and financial position of the Provik Group.

"Both the Cairns and Hemmant operations comprise valuable and
strategic industrial land and businesses.

"We will review and, where necessary, improve on operational,
environmental and health and safety aspects of the businesses in
preparation for a sale campaign.

"Our plan is to continue trading the businesses to preserve their
value and the employment of staff while we prepare to offer the
businesses and associated real estate to the market," Mr. Cronin
added.

The Provik Group owns and operates industrial marine facilities in
Brisbane and Cairns.  It also provides ship lifting, slipway and
marina operations along with marine storage facilities.  The
slipway services enable large-scaled marine refits and
maintenance.

The Provik Group employs approximately 755 staff at its Cairns
slipways operation and approximately six staff at its Hemmant
site.  The Provik Group has approximately 360 creditors.


SHENANNIGANS: Placed in Receivership; Ferrier Hodgson Appointed
---------------------------------------------------------------
The Cairns Post reports that Cairns bar Shenannigans has been
placed into receivership with the pub's owner also facing
financial problems in Adelaide.  Ferrier Hodgson has been
appointed receivers for the hotel and the freehold land of the
business, the report adds.

The Spence St pub, which promotes itself as "the only pub-style
backpackers hostel in Cairns", will continue trading until it is
sold, the report says.

According to the Cairns Post, Tim Michael, who is heading the
receivership, said entitlements owing to the 19 casual
Shenannigans staff were minimal and that wages had been paid.
Mr. Michael was confident all workers would keep their jobs, but
would not comment on the pub's debts, the report notes.

"Our focus is more about keeping the business trading, at this
early stage the debts are secondary to preserving the business,"
the report quoted Mr. Michael as saying.  "I think it would be
preferable to try and sell it during Cairns' busy period, maybe
around October or November."

Owner Winton Veall's Adelaide pub Glynde Hotel is also in
receivership, with Ferrier Hodgson handling both cases.

The Cairns Post relates Mr. Michael said Mr. Veall bought
Shenannigans in 2007.  It is believed the pub was bought for more
than AU$10 million and was recently valued at AU$5.5 million.


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E-LAND FASHION: Moody's Assigns 'Ba2' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has assigned a (P)Ba2 corporate family
rating to E-Land Fashion China Holdings, Limited.  Moody's has
also assigned a (P)Ba2 senior unsecured rating to E-Land Fashion
China's proposed inaugural US$ bond.  The rating outlook is
stable.

This is the first time that Moody's has assigned ratings to E-Land
Fashion China and the provisional status will be removed upon
issuance of the bond.  The bond proceeds will be used for capital
expenditure, general corporate purposes and to a lesser extent,
for potential acquisitions.

"The provisional Ba2 ratings reflect E-Land Fashion China's
growing presence in the highly fragmented women's apparel industry
in China, its extensive nationwide sales networks, and robust
profitability," says Chris Park, a Moody's Vice President and
Senior Analyst.

"The rating is also supported by the growing middle class and
personal consumption in China, a favorable fundamental that will
fuel ongoing growth in its key market."

"The ratings, however, are counterbalanced by the company's
moderate scale and significant business volatility due to high
'fashion risk,' as well as its focus on a narrow product
category/consumer demographic," says Park.

If all of its concession expenses were viewed as operating leases,
E-Land Fashion's expected adjusted debt/EBITDA of mid-4x and
retained cash flow ("RCF")/adjusted debt in the mid-teens for the
next two to three years would be weak for the Ba2 rating.
However, the company's financial leverage is somewhat overstated,
as its concession expenses comprise an element of operating
expenses.  Given this and the moderate amount of funded debt at
around 1x of EBITDA, its financial profile positions it solidly at
the Ba2 rating level.

E-Land Fashion China is a wholly owned subsidiary of E-Land World
Ltd, which has a weaker credit profile, but the ratings reflect E-
Land Fashion China's standalone credit quality only.  This is
because contractual ring-fencing mechanisms exist to protect E-
Land Fashion China from undue cash demands by the parent.

The stable outlook reflects Moody's expectations that E-Land
Fashion China will (1) further strengthen its market position and
continue to grow its scale and brand equity in tandem with the
fast-growing women's apparel industry in China and (2) maintain
solid liquidity position, with a significant portion of the bond
proceeds to be retained as a liquidity buffer.

A rating upgrade in the near term is unlikely, given E-Land
Fashion China's moderate scale and the lack of business diversity
outside of the women's apparel market.  Upward rating pressure
could emerge over the medium term if the Company can establish a
more solid market position and diversify its business portfolio
while improving its financial profile.  This would be
characterized by an adjusted debt/EBITDA of around 3.5-3.8x or
less and RCF/adjusted debt above 17-20%.

The rating could undergo a downgrade due to a persistent decline
in the Company's market position or margins leading to erosion of
liquidity or credit metrics.  Ratings could also be downgraded if
the Company significantly increases debt to fund a major
acquisition.  Quantitatively, the rating could be downgraded if
adjusted debt/EBITDA remains above 5x or if RCF/adjusted debt
declines to less than 12%.

E-Land Fashion China is one of the leading women's apparel
companies in China.  The company designs, distributes, and markets
six casual wear brands mainly through its directly managed shops
in department stores.


E-LAND FASHION: S&P Assigns 'BB-' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB-' long-term corporate credit rating to China-based women's
apparel company E-Land Fashion China Holdings Ltd. The outlook is
stable.  At the same time, Standard & Poor's also assigned its
'BB-' issue rating to E-Land Fashion China's proposed senior
unsecured notes.  The rating on the notes is subject to Standard &
Poor's review of the final documentation for the notes issuance.
The company intends to use the bond proceeds to expand its network
and for associated capital expenditure.

"The rating on E-Land Fashion China reflects the company's
relatively small scale on an international basis and its exposure
to the highly fragmented and increasingly competitive nature of
China's fashion industry.  In addition, S&P see risks associated
with E-Land Fashion China's evolving business strategy and the
weaker credit profile of the wider E.Land Group," said Standard &
Poor's credit analyst Joe Poon.  "These weaknesses are
counterbalanced by the robust growth in demand for quality women's
apparel in China, the company's solid track record, its good brand
recognition in China, and good profitability."

The company has benefited from an early-mover advantage in China.
It began operations there in 1994, and now has six brands in
operation.  Last year, turnover stood at Chinese renminbi (RMB)
3.7 billion and net profit at RMB546 million.  E-Land Fashion
China is a wholly owned subsidiary of Korea-based conglomerate
E.Land World Ltd. (not rated), which is principally engaged in
fashion, retail, hotel, and construction businesses.  E-Land
Fashion China is a key profit contributor to the group.

E-Land Fashion China's established brand image and market position
in China partly offsets its small size relative to international
peers.  In S&P's view, the aggressive entrance of other
established foreign brands into the Chinese market and fast-
changing consumer tastes will continue to challenge the company's
brand position.

E-Land Fashion China's high gross margin stems from its reasonably
good pricing power, good brand recognition in China, and
outsourcing of manufacturing.  S&P expects E-Land Fashion China to
maintain its good profitability because further expansion of its
network -- including the opening of flagship and shopping mall
stores in major cities -- is likely to help it maintain its brand
image and pricing.  In S&P's view, China's women's apparel
industry will continue to grow at a strong pace over the next few
years as disposable incomes rise.

E-Land Fashion China's leverage will substantially increase after
the issuance of the proposed notes.  S&P expects its adjusted
ratio of debt to EBITDA to weaken to about 2.0x following the
proposed bond issuance from 0.5x at the end of 2009.  The adjusted
ratio of total debt to capital should fall between 45% and 60%
over the next few years from 35.5% at the end of 2009.  S&P
anticipates that these ratios will gradually improve from 2011
onwards, assuming that the existing business maintains good
profitability.

E-Land Fashion China's liquidity is adequate, in S&P's view.
Anticipated operating cash flow and the proposed bond proceeds
should be sufficient to meet its capital expenditure and
potentially higher working capital needs.  S&P believes liquidity
will remain sufficient, provided that the company's expansion plan
and dividend payout ratio are not aggressive.

As at March 31, 2010, the company had an unaudited cash balance of
RMB621.5 million and short-term debt of RMB316.1 million due
within one year (including RMB116.2 million due to related parties
that is unsecured, non-interest bearing, and repayable on demand).

The company has about RMB400 million in credit facilities from
banks.  Its commitment to maintaining a minimum cash balance of no
less than 5% of net revenue and a dividend payout ratio of about
20% is not likely to have an impact on its liquidity position.
The existing bank loans do not have any financial covenants or
provisions, but other covenants apply.  The proposed notes do have
covenants.

"The stable outlook reflects S&P's view that E-Land Fashion China
is likely to maintain its market position and brand image, and
that it will benefit from strong growth potential in China.  In
addition, S&P expects the company to continue its measured
business expansion and maintain its satisfactory profitability,"
said Mr. Poon.

S&P could lower the rating if: (1) E-Land Fashion China's
financial performance or profitability deteriorates sharply, such
that its adjusted operating margin falls to less than 20% and its
cash-generating ability is reduced; (2) the company's financial
risk profile or funding strategy becomes more aggressive, causing
the company to significantly deviate from its financial policy; or
(3) the parent takes aggressive action to enhance shareholders'
value, for example by embarking on large debt-financed
acquisitions that cause the group's financial risk profile to
materially deteriorate.

S&P may raise the rating if: (1) E-Land Fashion China executes its
growth strategy in China and maintains its good profitability and
cash flow generation; and (2) E.Land Group continues to deleverage
and improve its financial performance by adhering to its stated
strategy in focusing on its fashion and retail businesses.


* CHINA: Half of Textile Firms May Collapse Amid Rising Yuan
------------------------------------------------------------
China National Textile and Apparel Council has warned that half of
China's textile companies are at risk going to the wall if the
yuan appreciates 5 percent against the US dollar, China Daily
reports.  China National Textile and Apparel Council Vice-
President Gao Yong attributed this knife-edge existence to the
industry's thin profit margins of around 3 to 5 percent, the
report says.

"If the yuan actually appreciates 5 percent against the US dollar,
over half of China's textile companies will go bankrupt," China
Daily quoted Mr. Gao as saying.

China Daily says the government's yuan stress test, conducted in
March, showed that labor-intensive textile companies' profit
margins would decline by 1 percentage point if the currency
appreciates by 1 percent.  Citing the Ministry of Commerce, China
Daily discloses that more than 20 million people are directly
employed in China's textile industry, while a further 140 million
are involved in cotton farming.  Therefore, a large upward
revaluation of the yuan could cost millions of jobs, the report
relates.

According to China Daily, the appreciation of the yuan, together
with rising raw material and labor costs, has already squeezed
profit margins in China's textile industry.  The yuan rose 21
percent against the US dollar from 2005 to 2008, the report notes.


================
H O N G  K O N G
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ROLLS-ROYCE INDUSTRIAL: Lai and Haughey Step Down as Liquidators
----------------------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey stepped down as
liquidators of Rolls-Royce Industrial Power (Hong Kong) Limited on
June 29, 2010.


SCIENTIFICATION-ATLANTA (HK): Commences Wind-Up Proceedings
-----------------------------------------------------------
Members of Scientification-Atlanta (HK) Limited, on June 28, 2010,
passed a resolution to voluntarily wind-up the company's
operations.

The company's liquidators are:

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


SUCCESS BRIGHT: Court to Hear Wind-Up Petition on August 25
-----------------------------------------------------------
A petition to wind up the operations of Success Bright Limited
will be heard before the High Court of Hong Kong on August 25,
2010, at 9:30 a.m.

The Bank of China (Hong Kong) Limited filed the petition against
the company on June 22, 2010.

The Petitioner's solicitors are:

          Messrs. Wat & Co.
          12th Floor, Chuang's Tower
          30 & 32 Connaught Road
          Central, Hong Kong


SUZUKI GOLDLY: Members' Final Meeting Set for August 9
------------------------------------------------------
Members of Suzuki Goldly Sky Limited will hold their final general
meeting on August 9, 2010, at 9:30 a.m., at Room 1005, Allied
Kajima Building, 138 Gloucester Road, Wanchai, in Hong Kong.

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


UNITECH PRECISION: Kuroiwa and Fong Step Down as Liquidators
------------------------------------------------------------
Mr. Norio Kuroiwa and Ms Chan Yuk Fong stepped down as liquidators
of Unitech Precision (H.K.) Limited on July 9, 2010.


VEEHOM LIMITED: Commences Wind-Up Proceedings
---------------------------------------------
Members of Veehom Limited, on June 22, 2010, passed a resolution
to voluntarily wind-up the company's operations.

The company's liquidators are:

         Ho Man Kit
         Kong Sze Man Simone
         Unit 511, 5th Floor
         Tower 1, Silvercord
         No. 30 Canton Road
         Tsimshatsui, Kowloon
         Hong Kong


WEETECK LIMITED: Kong Chi How Johnson Steps Down as Liquidator
--------------------------------------------------------------
Kong Chi How Johnson stepped down as liquidator of Weeteck Limited
on June 3, 2010.


YUEN & SONS: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------
At an extraordinary general meeting held on July 2, 2010,
creditors of Yuen & Sons Investments Company Limited resolved to
voluntarily wind up the company's operations.

The company's liquidator is:

         Poon Wai Hung Richard
         Room 1410, 14/F
         Harbour Centre
         No. 25 Harbour Road
         Wanchai, Hong Kong


YUEN'S COMPANY: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on July 2, 2010,
creditors of Yuen's Company Limited resolved to voluntarily wind
up the company's operations.

The company's liquidator is:

         Poon Wai Hung Richard
         Room 1410, 14/F
         Harbour Centre
         No. 25 Harbour Road
         Wanchai, Hong Kong


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ACT EDUCATIONAL: CRISIL Rates INR179MM Long Term Loan at 'D'
------------------------------------------------------------
CRISIL has assigned its 'D' rating to ACT Educational & Charitable
Trust's term loan facility.  The rating reflects delay by ACT in
servicing its term loan; the delay has been caused
by ACT's weak liquidity.

   Facilities                           Ratings
   ----------                           -------
   INR179.00 Million Long Term Loan     D (Assigned)

ACT has a below average financial risk profile and is exposed to
risks related to intense competition and a high degree of
regulation.  However, CRISIL believes that the trust will benefit
from its modern infrastructure facilities and the experience of
its management.

ACT was set up in 2005 by Mr. T Kumar, Mr. E N Anbuchozhan, and
Mr. R Lakshmanan.  The trust operates two colleges offering the
bachelor's degree in education, two teacher-training institutes,
and two engineering colleges in Attur and Nelvoy (Tamil Nadu).

ACT reported a profit after tax (PAT) of INR42.90 million on net
sales of INR80.7 million for 2008-09 (refers to financial year,
April 1 to March 31) against a PAT of INR8 million on net sales of
INR15.8 million for 2007-08.


AIR INDIA: To Use IGI's T3 Terminal as Hub; Discloses New Routes
----------------------------------------------------------------
Air India is planning to use the new integrated terminal T3 at IGI
Airport as its hub, The Economic Times reports.

The Economic Times relates Air India Chairman and Managing
Director Arvind Jadhav said operating from the new terminal, which
would provide seamless travel for its passengers on all sectors,
was likely to increase business by over 20% in the long run.

Mr. Jadhav said that the airline had been waiting for an
integrated terminal that would enable it to connect India with the
world. "The goal for AI is to establish a dominant domestic
carrier that would use narrow-body aircraft to seamlessly feed
into the medium-haul and long-haul wide-body aircraft.  Together,
the combined network would provide the customer with an end-to-end
offering that could be matched neither by the domestic low-cost
carriers nor the hub-based international long-haul carriers," Mr.
Jadhav was quoted by the Economic Times as saying.

Jadhav also announced three new direct international routes by
October, and this would increase AI's international coverage to 22
destinations from Delhi, the report relates.

According to the report, the carrier will be introducing non-stop
services between Delhi-Melbourne and Delhi-Chicago and resume
services between Delhi-Seoul.  It also has plans to increase the
frequency of existing flights, the report notes.  With this move,
says ET, the airline would be operating 143 flights per week on
the international sector with 33,000 seats, a jump of nearly 50%
of its capacity.

                           About Air India

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

                           *     *     *

The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown.  The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09.  Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.

In December 2009, the Air India board decided to initiate a series
of major steps to cut costs and enhance savings.  The carrier is
focusing on cutting costs by INR1,500 crore and increasing
revenues by INR1,200 crore as per its turnaround plan, according
to the Business Standard.  The airline's turnaround plan has been
broadly divided into 0-9 months, 9-18 months and 18-36 months, and
has been segregated under operational efficiency, product
improvement, organization building and financial restructuring,
the Business Standard said.


AIR INDIA: National Aviation Aims to Cut Losses by 75% in 2011
--------------------------------------------------------------
National Aviation Company Ltd., which runs Air India, aims to
reduce losses by 75% by the end of 2011-12, the Business Standard
reports.

"We will cut our losses by 75% by the end of 2011-12. We will be
able to achieve this because we have registered an increase in the
number of passengers and also revenue," the report quoted Nacil
Chairman and Managing Director, Arvind Jadhav, as saying.  "Our
losses during the last financial year were of INR5,400 crore,
which will be cut down by 75% by 2011-12."

Business Standard states that Air India, with an accumulated loss
of over INR10,000 crore, continues to make operational losses.
According to the report, the airline recently hired an expat chief
operating officer, who has vowed to go ahead with the airline?s
cost cutting plan.

                           About Air India

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

                           *     *     *

The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown.  The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09.  Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.

In December 2009, the Air India board decided to initiate a series
of major steps to cut costs and enhance savings.  The carrier is
focusing on cutting costs by INR1,500 crore and increasing
revenues by INR1,200 crore as per its turnaround plan, according
to the Business Standard.  The airline's turnaround plan has been
broadly divided into 0-9 months, 9-18 months and 18-36 months, and
has been segregated under operational efficiency, product
improvement, organization building and financial restructuring,
the Business Standard said.


BALABHANU ENTERPRISES: CRISIL Rates INR200 Million Credit at 'P4+'
------------------------------------------------------------------
CRISIL has assigned its 'P4+' rating to the Export Packing Credit
facility of Balabhanu Enterprises Pvt Ltd, part of Kineta group.

   Facilities                              Ratings
   ----------                              -------
   INR200 Million Export Packing Credit    'P4+' (Assigned)

The rating reflects the geographical and client concentration in
the Kineta group's revenue profile, and its susceptibility to
downturns in end-user industry and adverse regulatory changes.
These rating weaknesses are partially offset by the Kineta group's
established relationships with its suppliers and international
customers, and above-average financial risk profile.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of BEPL, Kineta Minerals & Metals Ltd
(KMML), and Kineta International Pte Ltd, Singapore (KIPL),
together referred to as the Kineta group. This is because all the
three entities are under common management, in similar line of
business, and expected to extend need-based funding support to
each other ? KMML has guaranteed KIPL's bank loan facilities.

BEPL, incorporated in 2003 in Bhadravati, Karnataka, was set up to
undertake job-based work for Visvesvaraya Iron & Steel Ltd (VISL;
unit of Steel Authority of India Ltd) on a small scale. BEPL cuts
iron rods as per VISL's customer requirements. It started
exporting iron ore from 2005.

Set up in Hyderabad by Mr. V Balashowry in April 2006, KMML trades
in iron ore. It procures iron ore fines from small and big mine
owners located around the port cities of Krishnapatnam, Bellary,
Mangalore, Visakhapatnam, Hospet, and Sandur, and in Goa. It
exports nearly 85 per cent of the iron ore to China, and the
remainder to Korea and Japan. KIPL, a wholly owned subsidiary of
KMML, was set up in 2008 in Singapore, and is also into trading in
iron ore; KIPL exports primarily to China.

For 2009-10 (refers to financial year, April 1 to March 31), the
Kineta group reported a provisional profit after tax (PAT) of
INR204 million on net sales of INR5.56 billion, against a PAT of
INR44 million on net sales of INR2.61 billion for 2008-09.

For 2009-10, BEPL (standalone) reported a provisional PAT of
INR3.1 million on an operating income of INR203.0 million, against
a PAT of INR2.5 million on net sales of INR11.5 million for 2008-
09.


BCL INDUSTRIES: CRISIL Reaffirms 'BB-' Rating on INR435MM Debts
---------------------------------------------------------------
CRISIL's ratings on BCL Industries & Infrastructure Pvt Ltd's bank
facilities continue to reflect BCL's weak debt protection metrics,
average gearing, and low operating margin.

   Facilities                            Ratings
   ----------                            -------
   INR435.0 Million Cash Credit Limit    BB-/Negative (Reaffirmed)
   INR150.0 Million Letter of Credit     P4 (Reaffirmed)
   INR25.0 Million Bank Guarantee        P4 (Reaffirmed)

The ratings also factor in the company's vulnerability to intense
competition in the edible oil industry and volatility in raw
material prices, and its significant exposure to group companies'
real estate ventures.  These rating weaknesses are partially
offset by BCL's integrated edible oil operations and strong track
record in the edible oil industry.

Outlook: Negative

CRISIL believes that BCL's investments in its group companies'
real estate business will continue to be high over the medium
term, adversely impacting its credit risk profile. The ratings may
be downgraded upon further deterioration in BCL's liquidity,
capital structure, and net cash accruals.  Conversely, the outlook
may be revised to 'Stable' if BCL reduces its level of investments
in the real estate business, while sustaining its profitability.

                     About Bhatinda Chemicals

BCL, formerly Bhatinda Chemicals Ltd, manufactures refined oil
such as soyabean, sunflower, cottonseed, and rice bran oils under
the Homecook brand; vanaspati under the Do Khajoor brand; and
mustard oil under the Murli brand. It also trades in non-basmati
rice. BCL sells its products mainly in North India, and has around
300 dealers spread over the entire northern region. The company's
facilities are located in Bhatinda (Punjab).

BCL is promoted by the Mittal group of Bhatinda. The group
operates in two segments: real estate and edible oils. The
companies in the edible oils segment are Kisan Fats Ltd, BCL, and
RK Exports. Those in the real estate sector are Ganpati Estates,
Ganpati Township Ltd, Chavan Rishi Resorts Pvt Ltd, Creative
Buildwell Pvt Ltd, Gee City Builders Pvt Ltd, Ansal Mittal
Township Pvt Ltd, and Sheesh Mahal Developers Ltd.

BCL reported a profit after tax (PAT) of INR11 million on net
sales of INR2963 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR33 million on net sales
of INR4525 million for 2008-09.


J. KIRIT: CRISIL Rates INR50 Million Letter of Credit at 'P4+'
--------------------------------------------------------------
CRISIL has assigned its 'P4+' rating to J. Kirit & Brothers'
letter of credit facility.

   Facilities                           Ratings
   ----------                           -------
   INR50.0 Million Letter of Credit     P4+ (Assigned)

The rating reflects JKB's low net worth and small scale of
operations, and absence of adequate price and inventory risk
management practices.  These rating weaknesses are partially
offset by JKB's strong financial risk profile marked by healthy
debt protection metrics and modest gearing, and efficient working
capital management.

JKB, a partnership firm set up in 1973, trades in chemicals used
in resins, paints, adhesives and other applications. The firm
imports around 75 per cent of its products from countries such as
Germany, France, Taiwan, USA, and Korea. The firm is also an agent
for Arkema Group, Reliance Industries Ltd (CRISIL rated
'AAA/Stable/P1+'), and SI Group India Ltd, and sells various
chemical products manufactured by these entities.  The firm sells
around 70 per cent of its products directly to manufacturers,
while the rest comes through its dealer network.

JKB reported a profit after tax (PAT) of INR3.8 million on net
sales of INR283.9 million for 2009-10 (refers to financial year,
April 1 to March 31) against a PAT of INR2.1 million on net sales
of INR221.4 million for 2008-09.


JET AIRWAYS: Inks Code Share Agreement With Kenya Airways
---------------------------------------------------------
Jet Airways has entered into a code-sharing agreement with Kenya's
national carrier Kenya Airways that will enable passengers to
travel on each other's flights, The Hindu reports.

The Hindu says Jet Airways does not have a direct flight from
Mumbai to Nairobi so this agreement would enable passengers to
travel there on Kenya Airways flights on a Jet ticket and vice
versa.

"In addition to our direct service to Johannesburg, there is
significant demand from our customers to travel to Kenya and
beyond.  We are confident that this partnership will translate
into greater air traffic between India and Africa," the report
quoted Jet Airways CEO Nikos Kardassis as saying.

The two carriers have also entered into network-wide frequent
flyer partnership, which will be effective from July 22, 2010, The
Hindu adds.

                         About Jet Airways

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

                           *     *     *

Jet Airways posted a consolidated net loss of INR9,614.10 million
for the year ended March 31, 2009, compared with consolidated net
loss of INR6,538.70 million for the year ended March 31, 2008.
Consolidated total sales increased from INR109,907.20 million for
the year ended March 31, 2008 to INR134,488.60 million for the
year ended March 31, 2009.


K.S. VENKATRAMAN: CRISIL Assigns 'BB' Rating to INR5MM LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of K.S. Venkatraman & Co Pvt Ltd, part of the KSVR.

   Facilities                              Ratings
   ----------                              -------
   INR5.00 Million Long Term Loan          BB/Stable (Assigned)
   INR45.00 Million Cash Credit            BB/Stable (Assigned)
   INR50.00 Million Bank Guarantee Limit   P4+(Assigned)


The ratings reflect the KSVR group's exposure to risks relating to
fluctuations in raw material prices, large working capital
requirements, and small scale of operations.  These rating
weaknesses are partially offset by the KSVR group's above-average
financial risk profile marked by comfortable gearing and debt
protection measures, and the experience of its promoters in the
construction industry.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of KSVR, Kumar Agencies, and Ashwin
Agencies, collectively referred to as the KSVR group.  This is
because all the three entities are managed by the same promoter
family, and have operational and financial linkages with each
other.

Outlook: Stable

CRISIL believes that the KSVR group will maintain its healthy
capital structure and benefit from its moderate order book, over
the medium term.  The outlook may be revised to 'Positive' if the
KSVR group enhances its scale of operations substantially and
diversifies its revenue profile, while increasing its
profitability.  Conversely, the outlook may be revised to
'Negative' if the group's profitability deteriorates steeply, or
if it undertakes a large, debt-funded capital expenditure
programme, weakening its financial risk profile.

                         About the Group

KSVR was set up in 1940 as a partnership concern, and was
reconstituted as a private limited company in year 1948. KSVR
executes various infrastructure-related works (construction of
factory sheds/buildings, warehouses, schools, military barracks,
and air strips, among others) for both private and government
sector entities. Most of the operations of the company are in
Tamil Nadu. KSVR is currently managed by Mr R RamKumar (Managing
Director) and his family members, operating from Chennai (Tamil
Nadu).

Kumar Agencies, a sole proprietorship concern of Mr RamKumar, is a
distributor of India Cements Ltd for Chennai. Ashwin Agencies is a
sole proprietorship concern of Ms. Hema RamKumar (Director of
KSVR). It owns drilling equipment and provides services to KSVR.

The KSVR group reported a profit after tax (PAT) of INR4 million
on net sales of INR291 million for 2008-09 (refers to financial
year, April 1 to March 31), against a PAT of INR8 million on net
sales of INR299 million for 2007-08.


KINETA MINERALS: CRISIL Upgrades Rating on INR1.2BB Loan to 'BB+'
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Kineta Minerals & Metals Ltd, part of the Kineta group, to
'BB+/Stable' from 'BB/Stable', while reaffirming its rating on the
company's short-term bank facilities at 'P4+'.

   Facilities                                Ratings
   ----------                                -------
   INR1200 Million Proposed Long-Term Loan  'BB+/Stable' (Upgraded
                                                 from 'BB/Stable')

   INR1000 Million Proposed Short-Term Loan 'P4+' (Reaffirmed)

   INR1300 Million Export Packing
      Credit/Foreign Bill Discounting       'P4+' (Reaffirmed)

The upgrade reflects improvement in the Kineta group's financial
risk profile, marked by a decrease in its total outside
liabilities to total net worth ratio to below 1.5 times as on
March 31, 2010, from above 4.0 times as on March 31, 2008. The
improvement was driven by the group's efficient working capital
management and increase in net worth.  CRISIL expects the Kineta
group's financial risk profile to remain comfortable over the
medium term backed by its sound working capital management policy
and established relationships with its customers, resulting in
steady profitability.

However, the ratings also reflect the Kineta group's exposure to
risks related to geographical and client concentration in its
revenue profile, cyclicality in the end-user industry, and
government regulations.  These rating weaknesses are partially
offset by the Kineta group's established relationships with its
suppliers and international customers, and above-average financial
risk profile.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of BEPL, KMML, Kineta International Pte
Ltd, Singapore, and Balabhanu Enterprises Pvt Ltd, together
referred to as the Kineta group.  This is because all the three
entities are under common management, in similar line of business,
and expected to extend need-based funding support to each other -
KMML has guaranteed KIPL's bank loan facilities.

Outlook: Stable

CRISIL believes that the Kineta group will continue to benefit
from its established relationships with its suppliers and
international customers.  The outlook may be revised to 'Positive'
in case of significant diversification in the group's customer
base, or more-than-expected improvement in its profitability with
an increase in its scale of operations.  Conversely, the outlook
may be revised to 'Negative' in case of any adverse change in
Government of India's policy on iron ore exports, or significant
support to other group companies.

Set up in Hyderabad by Mr. V Balashowry in April 2006, KMML trades
in iron ore.  It procures iron ore fines from small and big mine
owners located around the port cities of Krishnapatnam and
Visakhapatnam (Andhra Pradesh); Bellary, Sandur, and Mangalore
(Karnataka); and Hospet (Tamil Nadu); and in Goa.  It exports
nearly 85 per cent of the iron ore to China, and the remainder to
Korea and Japan. KIPL, a wholly owned subsidiary of KMML and set
up in 2008 in Singapore, is also engaged in trading of iron ore,
and exports primarily to China.

BEPL, incorporated in 2003 in Bhadravati (Karnataka), was set up
to undertake job-based work for Visvesvaraya Iron & Steel Ltd
(VISL; unit of Steel Authority of India Ltd) on a small scale.
BEPL cuts iron rods as per VISL's customer requirements. It
started exporting iron ore from 2005.

For 2009-10 (refers to financial year, April 1 to March 31), the
Kineta group is expected to report a provisional profit after tax
(PAT) of INR204 million on net sales of INR5.56 billion, as
against a PAT of INR44 million on net sales of INR2.61 billion for
2008-09.

For 2009-10, KMML (standalone) is expected to report a provisional
PAT of INR9 million on net sales of INR288 million, as against
INR16 million and INR2.15 billion, respectively, for 2008-09.


ROHAN RAJDEEP: CRISIL Puts 'B+' Rating on INR1.12B Term Loan
------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to Rohan Rajdeep
Rajasthan Infra Projects Pvt Ltd's bank facilities.

   Facilities                           Ratings
   ----------                           -------
   INR1125.0 Million Rupee Term Loan    B+/Stable (Assigned)
   INR40.0 Million Bank Guarantee       P4 (Assigned)

The ratings reflect RRRIPPL's exposure to construction risks,
given that RRRIPPL is an SPV for an ongoing road project which is
in the initial stage and the complexity associated with tunnel
construction, and to earnings risks inherent in toll-based road
projects.  These rating weaknesses are partially offset by
RRRIPPL's construction contract with Rohan Rajdeep Tollways Ltd
(RRTL), which has experience in executing road construction
projects; also, the road is being constructed using concrete,
thereby entailing lower routine maintenance charges.

Outlook: Stable

CRISIL believes that RRRIPPL will complete its ongoing project and
start toll collection on schedule.  The outlook could be revised
to 'Positive' if the toll income is higher than expected,
resulting in better debt protection metrics for RRRIPPL.
Conversely, the outlook could be revised to 'Negative' in case
RRRIPPL faces significant time or cost overrun in its ongoing
project, or generates considerably less-than-expected toll income.

                        About Rohan Rajdeep

Rohan Rajdeep Rajasthan Infra Projects Pvt Ltd is a special
purpose vehicle (SPV) promoted by Rohan Builders (I) Pvt Ltd, a
Rohan group company; Rajdeep Buildcon Pvt Ltd, a Rajdeep group
company; and RRTL, a Rohan and Rajdeep group joint venture, to
undertake the project involving the designing, engineering,
financing, construction, operation and maintenance of a four-lane
alternate route to Ghat-Ki-Guni by construction of a tunnel in
Jhalana Hills to connect National Highway 11 (Agra Road), Jaipur
on build, operate and transfer basis.  The project involves
construction of a 647-metre tunnel across Jhalana Hills for a
total project cost of INR1.5 billion, to be funded in a debt-to-
equity ratio of 3:1.  The concession agreement was signed with
Jaipur Development Authority (concessionaire, JDA) in November
2009, for a concession period of 13 years, 5 months and 20 days,
starting April 2010.  The project is expected to be operational by
December 2011.

The Rohan group undertakes industrial and infrastructure
construction projects. The group also has a presence in the real
estate sector.  The Rajdeep group operates in the industrial and
infrastructure construction segment, and has completed a large
number of projects in Maharashtra.


SHIV SAI: CRISIL Reaffirms 'BB' Ratings on Various Bank Debts
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shiv Sai Infrastructure
Pvt Ltd (Shiv Sai; part of the Shiv Sai group) continue to reflect
the Shiv Sai group's moderately weak financial risk profile marked
by moderate net worth, weak debt protection measures, limited
track record in real estate development, and exposure to risks
relating to concentration of revenues in Faridabad (Haryana), and
to completion and funding of projects, Shiv Sai I and Ozone
Centre.  These weaknesses are partially offset by the benefits
that the group derives from low saleability risk of, and advance
bookings for, its ongoing project, Ozone Park. Further, Shiv Sai
has large term loan becoming due for repayment between August and
December 2010; the company's liquidity management and timely
repayment of these loans will be key rating sensitivity factors in
the near term.

   Facilities                           Ratings
   ----------                           -------
   INR200.0 Million Term Loan           BB/Stable (Reaffirmed)
   INR10.0 Million Proposed LT Loan     BB/Stable (Reaffirmed)
   INR40.0 Million Bank Guarantee       P4+ (Reaffirmed)

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Shiv Sai, and Shiv Sai's wholly owned
subsidiaries, SSIPL Pvt Ltd and SMG Estates Pvt Ltd.  This is
because Shiv Sai and its subsidiaries (collectively referred to as
the Shiv Sai group) have a common line of business, and Shiv Sai
has made significant investments in the subsidiaries.

Outlook: Stable

CRISIL believes that the Shiv Sai will maintain a stable financial
risk profile over the medium term, supported by the moderate
saleability of its projects and buoyancy in the Faridabad real
estate market.  The outlook may be revised to 'Positive' if the
group's financial risk profile improves considerably owing to
better than expected accruals, or if it enters new geographies,
while improving its operating margin.  Conversely, the outlook may
be revised to 'Negative' if the group takes on large debt to fund
future projects, or faces low offtake on current and future
projects.

                           About Shiv Sai

Set up in 2005 by Mr. Sandeep Gupta, Mr.Vikram Dhawan, and Mr
Anurag Sharma, Shiv Sai has two on-going real estate projects:
Ozone Park Apartments, which has 500 residential units, and Sai
Park-I, which has 240 residential units. Ozone Park Apartments,
the company's first project, is expected to be completed by
December 2010.  SSIPL is a wholly owned subsidiary of Shiv Sai,
holding a 30 acres land in Palwal, Faridabad. Shiv Sai acquired
SMG for INR11.2 crores in 2007 and took over the 3630 sq meter of
land. Currently SMG is undertaking a commercial project, 'Ozone
Centre', having a total construction cost of INR31 crores.

Shiv Sai reported a profit after tax (PAT) of INR11.3 million on
net sales of INR445 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR16.7 million on net
sales of INR210.4 million for 2007-08. Shiv Sai had no sales prior
to 2007-08.


THENI GURU: CRISIL Assigns 'B' Ratings on Various Bank Facilities
-----------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to Theni Guru
Krishna Textile Mills Pvt Ltd's bank facilities.

   Facilities                            Ratings
   ----------                            -------
   INR160.00 Million Cash Credit         B/Stable (Assigned)
   INR25.00 Million Standby Line         B/Stable (Assigned)
                       of Credit
   INR455.30 Million Term Loan           B/Stable (Assigned)
   INR74.65 Million Proposed Long Term   B/Stable (Assigned)
                         Bank Facility
   INR35.00 Million Letter of Credit     P4 (Assigned)
   INR0.05 Million Bank Guarantee        P4 (Assigned)

The ratings reflect Theni Guru's below-average financial risk
profile and exposure to risks relating to volatility in raw
material prices and to fluctuations in value of the Indian rupee.
These weaknesses are partially offset by the benefits that the
company derives from its experienced management, established
relationships with customers, and moderate operating efficiencies.

Outlook: Stable

CRISIL believes that Theni Guru will continue to benefit from its
integrated operations over the medium term.  The outlook may be
revised to 'Positive' if Theni Guru's accruals and capital
structure improve significantly from current levels. Conversely,
the outlook may be revised to 'Negative' if Theni Guru's financial
risk profile deteriorates because of higher-than-expected
derivative losses, large debt-funded capex, or significant decline
in capacity utilisation or operating profitability.

                          About Theni Guru

Set up in 2005, Theni Guru primarily exports readymade bed sheets,
pillow covers, and blankets manufactured from different blends of
raw material including cotton, polyester, and polycotton.  The
company has integrated operations with spinning, weaving, and
bleaching facilities.  The company is part of the ATK group which
was promoted by Mr. A T Krishnaswamy. The group is now managed by
Mr. T K Ramasamy, Mr. T K Srinivasan, Mr. T K Ponraj, and Mr. S
Rajasekar.

Theni Guru posted a provisional profit after tax of INR41 million
on net sales of INR976 million for 2009-10 (refers to financial
year, April 1 to March 31), as against a net loss of INR19.4
million on net sales of INR693.4 million for 2008-09.


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


APROCEED CO: Moody's Reviews Ratings on Four Classes of Notes
-------------------------------------------------------------
Moody's Investors Service has placed four classes of Aproceed Co.
CMBS bonds under review for possible downgrade.  The final
maturity of these bonds will take place in February 2012.

The individual rating actions are listed below.

  -- Class A, Aaa placed under review for possible downgrade;
     previously on June 18, 2009 confirmed at Aaa

  -- Class B, Aa3 placed under review for possible downgrade;
     previously on June 18, 2009 downgraded to Aa3 from Aa2

  -- Class C, Baa1 placed under review for possible downgrade;
     previously on June 18, 2009 downgraded to Baa1 from A2

  -- Class D, Ba2 placed under review for possible downgrade;
     previously on June 18, 2009 downgraded to Ba2 from Baa2

CMBS Transaction-Aproceed Co., Ltd., effected in March 2007,
represents the securitization of a portfolio of five properties
located in Tokyo and in smaller cities throughout the country.  At
this time, the relevant party aims to sell the five properties in
one lot before August 2010.  After August 2010, backing properties
can be sold individually.

The current review has been prompted by Moody's growing concerns
about the need to reconsider its recovery assumptions because the
fundamental profitability -- in terms of rents and occupancy rates
-- of the properties is likely to be lower than assumed and will
be for some time.

In its review, Moody's will re-assess its recovery assumptions for
the properties, incorporating their leasing status and the
associated disposal activities.

Moody's Investors Service is a publisher of rating opinions and
research.  It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.
This release is not a solicitation or a recommendation to buy,
hold, or sell securities.


JAPAN AIRLINES: To Hold Talks With Main Creditors Over Debt Waiver
------------------------------------------------------------------
Japan Airlines Corp. Chairman Kazuo Inamori is seeking to meet
with the leaders of the company's three main creditor banks for
talks on its request for an additional debt waiver, Kyodo News
reports citing sources familiar with the matter.

According to Kyodo, source said JAL plans to hold separate
meetings with the Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui
Banking Corp and Mizuho Corporate Bank between the end of July and
early August to discuss its corporate rehabilitation plans before
the deadline at the end of August for the airline to submit a
rehabilitation plan to the Tokyo District Court.

Kyodo says representatives from the Enterprise Turnaround
Initiative Corp of Japan, the state-backed administrator
overseeing the airline's rehabilitation, are likely to take part
in the meetings as well.

Kyodo notes that its sources also said JAL is likely to ask the
creditor banks to expand the amount of waivers in unsecured loans
to around JPY400 billion from about JPY358.5 billion the airline
planned to ask for initially.

Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services.  The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.

Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court.  The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.

Japan Airlines Corp. filed for reorganization January 19 in the
Tokyo District Court and filed a Chapter 15 petition in New York
(Bankr. S.D.N.Y. Case No. 10-10198).  The Company said debt is
$28 billion.

Bankruptcy Creditors' Service, Inc., publishes Japan Airlines
Bankruptcy News.  The newsletter tracks the Chapter 15 proceedings
and the bankruptcy proceedings in Tokyo undertaken by Japan
Airlines Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


JAPAN AIRLINES: Proposes to Cut Pilots' Salary by 25%
-----------------------------------------------------
The Yomiuri Shimbun reports that Japan Airlines Corp. has proposed
to labor unions the abolishment of pilots' monthly guaranteed
minimum allowances to further reduce manpower costs.  The proposal
targets employees of Japan Airlines International Co., a core
subsidiary of JAL, the report adds.

The report discloses that the proposal equates to pilot salary
reductions of about 25%, in addition to the 5% across-the-board
salary cuts for all employees implemented in April.  The monthly
allowances for pilots, which are for 65 hours of flight time, have
been guaranteed regardless of actual hours flown, the report
notes.

The Yomiuri Shimbun says JAL has also proposed belt-tightening
policies for other positions at the subsidiary, such as abolishing
similar guaranteed minimum allowances for flight attendants and
reducing allowances for ground workers' holiday and night work.
JAL intends to further reduce its total personnel cost by adopting
a salary system to reflect the company's performance, the report
adds.

                        About Japan Airlines

Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services.  The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.

Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court.  The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.

Japan Airlines Corp. filed for reorganization January 19 in the
Tokyo District Court and filed a Chapter 15 petition in New York
(Bankr. S.D.N.Y. Case No. 10-10198).  The Company said debt is
$28 billion.

Bankruptcy Creditors' Service, Inc., publishes Japan Airlines
Bankruptcy News.  The newsletter tracks the Chapter 15 proceedings
and the bankruptcy proceedings in Tokyo undertaken by Japan
Airlines Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


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


KOREA EXCHANGE: MBK Partners to Bid for Lone Star's Stake
---------------------------------------------------------
Private-equity firm MBK Partners plans to submit a bid for Lone
Star Funds' 51% stake in Korea Exchange Bank, Dow Jones Newswires
reports citing a person familiar with the situation.

According to Dow Jones, the person said Lone Star has set a
deadline of end-July for binding bids and that there have been no
specific discussions on a price for the stake that is currently
valued at KRW4.09 trillion (US$3.4 billion).  The person added
that MBK is also prepared to form a consortium to pull off the
deal if needed, but didn't name specific firms that MBK may enlist
for the bid, Dow Jones says.

Lone Star, a U.S.-based private-equity fund, has had a number of
setbacks in trying to exit from its $1.3 billion investment in
KEB, which it bought in 2003, Dow Jones notes.

Analysts have said Lone Star's sale efforts could be delayed due
to its inability to drum up enough interested bidders because of
uncertainties such as Europe's fiscal woes as well as the South
Korean government's efforts to divest its 57% stake in Woori
Finance Holdings Co., the country's second-largest financial
holding company by assets, the report relates.

According to Dow Jones, Australia & New Zealand Banking Group Ltd.
remains the only firm to publicly acknowledge interest in KEB.

MBK is being advised by Nomura Holdings Inc., while Credit Suisse
is advising Lone Star for the sale, the report adds.

                     About Korea Exchange Bank

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

                           *     *     *

The Troubled Company Reporter-Asia Pacific reported on May 8,
2007, that as part of the application of its refined joint
default analysis and updated bank financial strength rating
methodologies, Moody's Investors Service upgraded Korea
Exchange's Bank Financial Strength Rating to C- from D.

On November 7, 2008, Moody's Investors Service changed the outlook
on the C- bank financial strength rating (BFSR) of Korea Exchange
Bank (KEB) to negative from stable.  Its debt and deposit ratings
are unaffected and carry a stable outlook.


SSANGYONG MOTOR: M&M Board to Decide on Ssangyong Bid by July 28
----------------------------------------------------------------
Mahindra & Mahindra Ltd. said it will take a decision on its bid
for Ssangyong Motor Co. at its board meeting on July 28, Satish
Sarangarajan at Dow Jones Newswires reports.

As reported in the Troubled Company Reporter-Asia Pacific on
June 7, 2010, Ssangyong Motor Co. selected Nissan Motor Co.,
Renault SA and four other bidders for due diligence on the
company.  Ssangyong Motor began accepting letters of intent on
May 10 from potential buyers, who will take over a majority of its
stake valued at around KRW300 billion.  Samjong KPMG, a South
Korean unit of the global services firm KPMG, and Macquarie
Securities are managing the sale.  Deadline for submitting binding
bids is on Aug. 10

Meanwhile, Reuters, citing the China Business News, reports that
SAIC Motor Corp. might continue to slash its holdings in Ssangyong
Motor.  Reuters relates the paper said SAIC, which now holds 3.79
percent of Ssangyong, will not rule out cutting down its stake
further via the stock market.

                       About Ssangyong Motor

Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co.
Ltd. -- http://www.smotor.com/-- is a manufacturer of automobiles
primarily engaged in production of sports utility vehicles (SUVs)
and recreational vehicles (RVs).  The company's production is
grouped into four lines: SUVs under brand names REXTON, KYRON and
ACTYON; sports utility trucks (SUTs) under the brand name ACTYON
Sports; passenger cars under brand name Chairman, and multi-
purpose vehicles (MPVs) under the brand name Rodius.  It also
provides automobile parts such as coolers, diesel engines and
others.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 12, 2009, Ssangyong Motor Co. filed for receivership with the
Seoul Central District Court to stave off a complete collapse.  In
February, the Seoul Central District Court accepted Ssangyong's
application to rehabilitate under court protection.  The court
named former Hyundai Motor Co. executive Lee Yoo-il and Ssangyong
executive Park Young-tae to run the automaker.

A TCR-AP report on Sept. 16, 2009, said Ssangyong Motor submitted
a revival plans to the Seoul Central District Court seeking
capital reduction and a debt-for-equity swap by creditor.  A South
Korean bankruptcy court approved in December Ssangyong Motor's
restructuring plan despite opposition by some bondholders, the
TCR-AP reported on Dec. 18, 2009.


SSANGYONG MOTOR: To Sell Shipping Grounds to Shinsegae Group
------------------------------------------------------------
Ssangyong Motor Co. has entered into a memorandum of understanding
with Shinsegae Group, JoongAng Daily reports.  Under the MOU,
Shinsegae Group will acquire the automaker?s shipping grounds in
Anseong, Gyeonggi, valued at KRW104 billion.

"Ssangyong is in a continuous process of liquidating its assets,
as well as preparing for a merger and acquisition, and a mere 100
billion won will not completely normalize our operations," a
Ssangyong representative told JoongAng Daily.  "But the fact that
Shinsegae has made clear its intent to buy the land does allow for
a little breathing room."

According to the report, Ssangyong Motors head Park Yeong-tae
said: "This land is something we wanted to keep until the end. It
is crucial to the company?s future, but through this sale the firm
will fight to normalize as soon as possible."

                       About Ssangyong Motor

Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co.
Ltd. -- http://www.smotor.com/-- is a manufacturer of automobiles
primarily engaged in production of sports utility vehicles (SUVs)
and recreational vehicles (RVs).  The company's production is
grouped into four lines: SUVs under brand names REXTON, KYRON and
ACTYON; sports utility trucks (SUTs) under the brand name ACTYON
Sports; passenger cars under brand name Chairman, and multi-
purpose vehicles (MPVs) under the brand name Rodius.  It also
provides automobile parts such as coolers, diesel engines and
others.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 12, 2009, Ssangyong Motor Co. filed for receivership with the
Seoul Central District Court to stave off a complete collapse.  In
February, the Seoul Central District Court accepted Ssangyong's
application to rehabilitate under court protection.  The court
named former Hyundai Motor Co. executive Lee Yoo-il and Ssangyong
executive Park Young-tae to run the automaker.

A TCR-AP report on Sept. 16, 2009, said Ssangyong Motor submitted
a revival plans to the Seoul Central District Court seeking
capital reduction and a debt-for-equity swap by creditor.  A South
Korean bankruptcy court approved in December Ssangyong Motor's
restructuring plan despite opposition by some bondholders, the
TCR-AP reported on Dec. 18, 2009.


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


AIR NEW ZEALAND: Denies Buying 15% Stake in Virgin Blue
-------------------------------------------------------
Tracy Withers at Bloomberg News reports that Air New Zealand Ltd.
denied a report it has bought a stake in Virgin Blue Holdings Ltd.
as the two airlines await a ruling on a proposed alliance.

Bloomberg relates Air New Zealand said it is conscious that
alliances such as the one planned with Virgin Blue, Australia's
second-largest carrier, frequently include an equity aspect, but
their proposal does not do so.

According to Bloomberg, The Sydney Morning Herald reported Friday
that the New Zealand carrier may be preparing to buy as much as 15
percent of Virgin, citing people it didn't name.

Bloomberg discloses that Air New Zealand and Virgin are seeking
approval from regulators for an alliance on their services between
New Zealand and Australia.  Co-operation may help the carriers
compete with Qantas Airways Ltd. and Emirates on routes flown by
more than 5 million passengers a year, the report notes.

Bloomberg adds that Air New Zealand said the necessary regulatory
approvals are still in process and it has had no indication of the
outcome of this decision.  A final decision on the alliance is
expected by the end of the year, the report relates.

                        About Air New Zealand

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

                           *     *     *

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


FINANCE & INVESTMENTS: Partners Agree to Lifetime Management Ban
----------------------------------------------------------------
The Securities Commission has accepted enforceable undertakings
Andrew Harding and Murray Scholfield, the partners of Finance &
Investments.

Under the terms of the undertaking, Mr. Harding and Mr. Scholfield
agree not to take part in the management of any company at any
time in the future.  The regulator said they also agree not to
offer or promote an offer of securities at any time in the future.
The regulator said the partners offered securities to the public
without an investment statement or registered prospectus.

Based in Tahanui, Finance & Investments was founded in 1973 to
provide vehicle financing and subsequently expanded into other
areas of finance.   The principals of Finance & Investments,
Andrew Harding and Murray Scholfield placed the finance company
into receivership in September 2007.  The company owed about NZ$16
billion to 370 investors.


PSIS LTD: S&P Changes Outlook to Positive; Affirms 'BB+/B' Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
rating outlook on New Zealand mutual company PSIS Ltd. to
positive, from stable.  At the same time, S&P affirmed the ratings
on PSIS at 'BB+/B'.

"The positive rating outlook reflects S&P's expectations that the
ratings could be raised to 'BBB-/A-3' if the company continues to
successfully manage its low-risk and sound credit profile through
to 2011, a period when the nonbank deposit-taking sector in New
Zealand is expected to come under pressure," Standard & Poor's
credit analyst Peter Sikora said.  Industry pressures anticipated
include the expiry of the existing New Zealand government retail
deposit guarantee on Oct. 12, 2010, heightened competition for
retail funding, and the prospect that additional NBDT failures
could undermine confidence in the sector and affect all NBDTs.

The rating affirmation reflects PSIS' strong member support and
its sound financial profile through the recent very difficult
operating environment in New Zealand, particularly for nonbank
deposit-takers.  PSIS' ongoing commitment to maintaining a low
credit risk profile by focusing lending activities on low-risk
residential mortgage lending has underpinned its solid financial
profile.  The low credit risk profile has also helped offset
limitations regarding PSIS' concentrated business risk profile,
stemming from its single-sector and narrow product focus.  PSIS'
lending activities, together with its conservative underwriting
practices, have supported the company's good asset-quality
experience, evidenced by the low level of nonperforming assets and
sound operating performance, which has been superior compared with
most rated mutual-based credit unions and building societies in
New Zealand.

Mr. Sikora added: "The outlook could be revised to stable should
there be signs that deposit support was not as strong as
anticipated or if PSIS was not successful in maintaining its sound
financial risk profile, which helps offset some of the limitations
regarding its business risk profile."

The rating would also come under downward pressure if there was
any observed increase in the company's risk appetite through
aggressive growth, a material weakening of underwriting standards,
or expansion into higher risk activities.  An early indicator of
this could be a material increase in the level of nonperforming
loans from recent and historical levels.  Downward rating pressure
would also emerge from any unexpected loss that undermines S&P's
overall view of PSIS' risk management capability or weakens
capital materially.


                         *********

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 T. Fernandez, 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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