TCRAP_Public/100728.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

           Wednesday, July 28, 2010, Vol. 13, No. 147

                            Headlines



H O N G  K O N G

CELEBRITY EXPORTS: Annual Meetings Set for August 12
CHEER WAY: Members' Final Meeting Set for August 31
CHINTONG FUTURES: Ian Grant Robinson Steps Down as Liquidator
DIADORA ASIA: Members' and Creditors Meetings Set for August 20
EASEMIND INVESTMENT: Members' Final Meeting Set for August 31

ECM LIBRA: Members' Final Meeting Set for August 23
ENRON (CHINA): Creditors Get 10% Recovery on Claims
FORDSPACE DEVELOPMENT: Members' Final Meeting Set for August 31
FOREVER PROFITS: Members' Final Meeting Set for August 31
FORVISION LIMITED: Placed Under Voluntary Wind-Up Proceedings

FUHWA SECURITIES: Members' Final General Meeting Set for August 26
FUJI EIC: Commences Wind-Up Proceedings
GAINICE INTERNATIONAL: Members' Final Meeting Set for August 31
GASUN SHOES: Members' Final Meeting Set for August 24
GERMANICUS LIMITED: Creditors' Proofs of Debt Due August 13

GLOD VICTORY: Members' and Creditors Meetings Set for August 19
GOLDEN DRAGON: Members' Final Meeting Set for August 24
GRAND SCORE: Members' Final Meeting Set for August 31
GRANVILLE TEXTILES: Members' Final Meeting Set for August 24
LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases

YESTAR GARMENT: Court to Hear Wind-Up Petition on August 25


I N D I A

AA NUTTS: CRISIL Assigns 'BB-' Rating to INR15MM Cash Credit
AL-AZIZ AND COMPANY: CRISIL Places 'BB-' Rating on INR3.0MM Loan
AFEEF CASHEW: CRISIL Assigns 'BB-' Rating to INR15.0MM Cash Credit
AKAK ISPAT: CRISIL Assigns 'B+' Rating to INR37.5MM Cash Credit
ALPHA INTERNATIONAL: CRISIL Rates INR15MM Cash Credit at 'BB-'

ANANDHA INN: CRISIL Reaffirms 'D' Ratings on Various Bank Debts
BEST ROSES: CRISIL Reaffirms 'D' Rating on INR62.74MM LT Loan
BIOPAC INDIA: Fitch Upgrades National Long-Term Rating to 'B'
CHAMAN METALLICS: CRISIL Assigns 'BB+' Rating to INR170MM Loan
GLR REAL: CRISIL Reaffirms 'BB-' Rating on INR100MM Cash Credit

EMERALD MINERAL: Fitch Assigns 'B' National Long-Term Rating
JET AIRWAYS: Expects Improved Seat Factors on International Routes
JET AIRWAYS: Posts INR3.52cr Net Profit in Qtr Ended June 30
RAMAN ISPAT: CRISIL Assigns 'B' Rating to INR14.5MM Term Loan
SAKET ENGINEERS: CRISIL Assigns 'B-' Ratings to Various Bank Debts

* Moody's Upgrades Ratings on India's Government Bonds to 'Ba1'


I N D O N E S I A

BERAU COAL: Moody's Affirms 'B2' Corporate Family Rating


J A P A N

JAPAN AIRLINES: Creditors Likely to Agree on Reduced Debt Waiver
JMAC 4: Fitch Downgrades Ratings on Various Classes of Notes
L-JAC 8: S&P Downgrades Ratings on Various Interests to 'D'
L-JAC 7: S&P Downgrades Ratings on Various Certificates to 'D'


K O R E A

DAEWOO ENGINEERING: Second Qtr Net Profit Slumps 86% to KRW22BB
HYNIX SEMICONDUCTOR: Creditors Sell 4.14% Stake for US$493 Million
TRIGEM COMPUTER: Bondholders Prevail in Earmarking Dispute


N E W  Z E A L A N D

AIR NEW ZEALAND: Carried 1 Million Passengers in June
CRAFAR FARMS: Asks Receivers to Hand Over Documents
STRATEGIC FINANCE: Perpetual Trust Appoints Liquidators


P H I L I P P I N E S

PHILIPPINE AIRLINES: Annual Loss Narrows to US$14.3 Million


T A I W A N

XODTEC LED: Posts $614,400 Net Loss in Q1 Ended May 31


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars




                         - - - - -


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


CELEBRITY EXPORTS: Annual Meetings Set for August 12
----------------------------------------------------
Members and creditors of Celebrity Exports International Limited
will hold their annual meetings on August 12, 2010, at 2:30 p.m.,
and 3:00 p.m., respectively at 20th Floor, Prince's Building, 10
Chater Road, Central, in Hong Kong.

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


CHEER WAY: Members' Final Meeting Set for August 31
---------------------------------------------------
Members of Cheer Way Development Limited will hold their final
meeting on August 31, 2010, at 9:30 a.m., at 11th Floor, Lai Sun
Commercial Centre, 680 Cheung Sha Wan Road, Kowloon, in Hong Kong.

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


CHINTONG FUTURES: Ian Grant Robinson Steps Down as Liquidator
-------------------------------------------------------------
Ian Grant Robinson stepped down as liquidator of Chintong Futures
Limited on July 6, 2010.


DIADORA ASIA: Members' and Creditors Meetings Set for August 20
---------------------------------------------------------------
Members and creditors of Diadora Asia Pacific Limited will hold
their annual meetings on August 20, 2010, at 2:30 p.m., and 3:00
p.m., respectively at Room 201, 10/F., Duke of Windsor Social
Service Building, 15 Hennessy Road, Wanchai, in Hong Kong.

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


EASEMIND INVESTMENT: Members' Final Meeting Set for August 31
-------------------------------------------------------------
Members of Easemind Investment Limited will hold their final
meeting on August 31, 2010, at 9:45 a.m., at 11th Floor, Lai Sun
Commercial Centre, 680 Cheung Sha Wan Road, Kowloon, in Hong Kong.

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


ECM LIBRA: Members' Final Meeting Set for August 23
---------------------------------------------------
Members of ECM Libra Securities Limited will hold their final
meeting on August 23, 2010, at 10:00 a.m., at 29th Floor, Caroline
Centre, Lee Gardens Two, 28 Yun Ping Road, Causeway Bay, in Hong
Kong.

At the meeting, Wong Poh Weng and Wong Tak Man Stephen, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


ENRON (CHINA): Creditors Get 10% Recovery on Claims
---------------------------------------------------
Enron (China) Limited, which is in creditors' voluntary
liquidation, will pay the third interim dividend to its creditors
on August 13, 2010.

The company will pay 10% for ordinary claims.

The company's liquidators are:

         Heng Victor Ja Wei
         Heng Pei Neng Roy
         7/F, Allied Kajima Building
         138 Gloucester Road
         Wanchai, Hong Kong


FORDSPACE DEVELOPMENT: Members' Final Meeting Set for August 31
---------------------------------------------------------------
Members of Fordspace Development Limited will hold their final
meeting on August 31, 2010, at 10:00 a.m., at 11th Floor, Lai Sun
Commercial Centre, 680 Cheung Sha Wan Road, Kowloon, in Hong Kong.

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


FOREVER PROFITS: Members' Final Meeting Set for August 31
---------------------------------------------------------
Members of Forever Profits Associates Limited will hold their
final meeting on August 31, 2010, at 10:15 a.m., at 11th Floor,
Lai Sun Commercial Centre, 680 Cheung Sha Wan Road, Kowloon, in
Hong Kong.

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


FORVISION LIMITED: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------------
At an extraordinary general meeting held on July 13, 2010,
creditors of Forvision Limited resolved to voluntarily wind up the
company's operations.

The company's liquidator is:

         Li Wai Sang
         26/F., Shun Feng International Centre
         182 Queen's Road East
         Wan Chai, Hong Kong


FUHWA SECURITIES: Members' Final General Meeting Set for August 26
------------------------------------------------------------------
Members of Fuhwa Securities (Hong Kong) Company Limited will hold
their final general meeting on August 26, 2010, at 10:30 a.m., at
10F, No. 66, Sec. 1, Dun Hua S. Rd., in Taipei 105 Taiwan.

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


FUJI EIC: Commences Wind-Up Proceedings
---------------------------------------
Members of Fuji EIC Co. Limited, on July 16, 2010, passed a
resolution to voluntarily wind-up the company's operations.

The company's liquidator is:

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


GAINICE INTERNATIONAL: Members' Final Meeting Set for August 31
---------------------------------------------------------------
Members of Gainice International Limited will hold their final
meeting on August 31, 2010, at 10:30 a.m., at 11th Floor, Lai Sun
Commercial Centre, 680 Cheung Sha Wan Road, Kowloon, in Hong Kong.

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


GASUN SHOES: Members' Final Meeting Set for August 24
-----------------------------------------------------
Members of Gasun Shoes Company Limited will hold their final
general meeting on August 24, 2010, at 10:00 a.m., at
Room 1608, 16/F, Nan Fung Tower, 173 Des Voeux Road Central, in
Hong Kong.

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


GERMANICUS LIMITED: Creditors' Proofs of Debt Due August 13
-----------------------------------------------------------
Creditors of Germanicus Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Aug. 13,
2010, to be included in the company's dividend distribution.

The company's liquidators are:

         Bruno Arboit
         Simon Richard Blade
         1008 Shui On Centre
         6-8 Harbour Road
         Wanchai, Hong Kong


GLOD VICTORY: Members' and Creditors Meetings Set for August 19
---------------------------------------------------------------
Members and creditors of Glod Victory Trading Limited will hold
their final meeting on August 19, 2010, at 3:00 p.m., at Rooms
1214-1215, 12/F., Tower A, New Mandarin Plaza, 14 Science Museum
Road, Tsimshatsui East, Kowloon, in Hong Kong.

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


GOLDEN DRAGON: Members' Final Meeting Set for August 24
-------------------------------------------------------
Members of Golden Dragon Vibration Technology Limited will hold
their final general meeting on August 24, 2010, at 10:00 a.m., at
Unit A, 5/F., CKK Commercial Centre, 289 Hennessy Road, Wanchai,
in Hong Kong.

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


GRAND SCORE: Members' Final Meeting Set for August 31
-----------------------------------------------------
Members of Grand Score Investment Limited will hold their final
meeting on August 31, 2010, at 10:45 a.m., at 11th Floor, Lai Sun
Commercial Centre, 680 Cheung Sha Wan Road, Kowloon, in Hong Kong.

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


GRANVILLE TEXTILES: Members' Final Meeting Set for August 24
------------------------------------------------------------
Members of Granville Textiles Limited will hold their final
meeting on August 24, 2010, at 10:30 a.m., at 25/F., Wing On
Centre, 111 Connaught Road Central, in Hong Kong.

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


LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases
-----------------------------------------------------------------
The Hong Kong Monetary Authority (HKMA) announced that
investigation of over 99% of a total of 21,669 Lehman-Brothers-
related complaint cases received has been completed.  These
include:

    * 13,078 cases which have been resolved by a settlement
      agreement reached under section 201 of the Securities and
      Futures Ordinance;

    * 2,472 cases which have been resolved through the enhanced
      complaint handling procedures required by the settlement
      agreement;

    * 2,532 cases which were closed because insufficient prima
      facie evidence of misconduct was found after assessment or
      no sufficient grounds and evidence were found after
      investigation;

    * 2,818 cases (including minibond cases) which are under
      disciplinary consideration after detailed investigation by
      the HKMA, of which proposed disciplinary notices are being
      prepared in respect of 1,862 such cases and proposed
      disciplinary notices or decision notices have been issued
      in respect of the other 956 cases; and

    * 586 cases in respect of which investigation work has been
      completed and are going through the decision process to
      decide whether there are sufficient grounds for
      disciplinary actions or whether the cases should be closed
      because of insufficient evidence or lack of disciplinary
      grounds.

Investigation work is underway for the remaining 181 cases.

A table summarizing the progress of the disciplinary and
complaint-resolution work in respect of Lehman-Brothers-related
complaints is available at http://ResearchArchives.com/t/s?6644

                        About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


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


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


AA NUTTS: CRISIL Assigns 'BB-' Rating to INR15MM Cash Credit
------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of AA Nutts, which is part of the Alpha group.

   Facilities                        Ratings
   ----------                        -------
   INR15.0 Million Cash Credit       BB-/Stable (Assigned)
   INR58.0 Million Packing Credit    P4+ (Assigned)

The ratings reflect the Alpha group's average financial risk
profile, marked by a modest net worth, and average debt protection
metrics.  The group's earnings profile is also exposed to risks
relating to availability of raw cashew and skilled labor.  These
rating weaknesses are partially offset by the Alpha group's
established track record and the promoters' experience in the
cashew industry.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of AA Nutts, Alpha International, Afeef
Cashew Company, and Al-Aziz and Company, collectively referred to
as the Alpha group.  This is because these entities have, and are
managed by, common promoters, are in the same line of business,
and have business and financial fungibility.

Outlook: Stable

CRISIL believes that the Alpha group will continue to benefit from
its established market position in the cashew industry over the
medium term.  The outlook may be revised to 'Positive' if there is
significant improvement in the group's financial risk profile,
marked by growth in net cash accruals, while it maintains stable
debt protection indicators.  Conversely, the outlook may be
revised to 'Negative' if volatility in prices of raw cashew,
availability of skilled labour, and competitive pressures in end-
user markets adversely affect the group's revenues, profitability,
and net cash accruals.

                          About the Group

The Alpha group comprises four partnership firms, Alpha, Afeef,
Al-Aziz, and AA Nutts.  The Alpha group is promoted and managed by
Mr. M A Anzar, and his cousin, Mr. Mohammed Najeeb.  The firms,
based in Kollam (Kerala), process and export cashew nuts, and have
a combined capacity of 70 tonnes per day (tpd). The group also
acquires additional processing facilities on temporary lease
basis.

AA Nutts reported a profit after tax (PAT) of INR1.0 million on
net sales of INR215.0 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR1.29 million on
net sales of INR123.4 million for 2008-09.


AL-AZIZ AND COMPANY: CRISIL Places 'BB-' Rating on INR3.0MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Al-Aziz and Company, which is part of the Alpha
group.

   Facilities                        Ratings
   ----------                        -------
   INR15.0 Million Cash Credit       BB-/Stable (Assigned)
   INR3.0 Million Term Loan          BB-/Stable (Assigned)
   INR65.0 Million Packing Credit    P4+ (Assigned)
   INR10.0 Million Post Shipment     P4+ (Assigned)
                          Credit

The ratings reflect the Alpha group's average financial risk
profile, marked by a modest net worth, and average debt protection
metrics.  The group's earnings profile is also exposed to risks
relating to availability of raw cashew and skilled labour. These
rating weaknesses are partially offset by the Alpha group's
established track record and the promoters' experience in the
cashew industry.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of AA Nutts, Alpha International, Afeef
Cashew Company, and Al-Aziz and Company, collectively referred to
as the Alpha group.  This is because these entities have, and are
managed by, common promoters, are in the same line of business,
and have business and financial fungibility.

Outlook: Stable

CRISIL believes that the Alpha group will continue to benefit from
its established market position in the cashew industry over the
medium term.  The outlook may be revised to 'Positive' if there is
significant improvement in the group's financial risk profile,
marked by growth in net cash accruals, while it maintains stable
debt protection indicators.  Conversely, the outlook may be
revised to 'Negative' if volatility in prices of raw cashew,
availability of skilled labour, and competitive pressures in end-
user markets adversely affect the group's revenues, profitability,
and net cash accruals.

                          About the Group

The Alpha group comprises four partnership firms, Alpha, Afeef,
Al-Aziz, and AA Nutts.  The Alpha group is promoted and managed by
Mr. M A Anzar, and his cousin, Mr. Mohammed Najeeb.  The firms,
based in Kollam, process and export cashew nuts, and have a
combined capacity of 70 tonnes per day (tpd).  The group also
acquires additional processing facilities on temporary lease
basis.

Al-Aziz reported a profit after tax (PAT) of INR2.7 million on net
sales of INR189.3 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.12 million on net
sales of INR84.5 million for 2008-09.


AFEEF CASHEW: CRISIL Assigns 'BB-' Rating to INR15.0MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Afeef Cashew Company, which is part of the Alpha
group.

   Facilities                        Ratings
   ----------                        -------
   INR15.0 Million Cash Credit       BB-/Stable (Assigned)
   INR3.0 Million Term Loan          BB-/Stable (Assigned)
   INR65.0 Million Packing Credit    P4+ (Assigned)
   INR10.0 Million Post Shipment     P4+ (Assigned)
                         Credit

The ratings reflect the Alpha group's average financial risk
profile, marked by a modest net worth, and average debt protection
metrics.  The group's earnings profile is also exposed to risks
relating to availability of raw cashew and skilled labor.  These
rating weaknesses are partially offset by the Alpha group's
established track record and the promoters' experience in the
cashew industry.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of AA Nutts, Alpha International, Afeef
Cashew Company, and Al-Aziz and Company, collectively referred to
as the Alpha group.  This is because these entities have, and are
managed by, common promoters, are in the same line of business,
and have business and financial fungibility.

Outlook: Stable

CRISIL believes that the Alpha group will continue to benefit from
its established market position in the cashew industry over the
medium term.  The outlook may be revised to 'Positive' if there is
significant improvement in the group's financial risk profile,
marked by growth in net cash accruals, while it maintains stable
debt protection indicators.  Conversely, the outlook may be
revised to 'Negative' if volatility in prices of raw cashew,
availability of skilled labor, and competitive pressures in end-
user markets adversely affect the group's revenues, profitability,
and net cash accruals.

                          About the Group

The Alpha group comprises four partnership firms, Alpha, Afeef,
Al-Aziz, and AA Nutts.  The Alpha group is promoted and managed by
Mr. M A Anzar, and his cousin, Mr. Mohammed Najeeb.  The firms,
based in Kollam (Kerala), process and export cashew nuts, and have
a combined capacity of 70 tonnes per day (tpd).  The group also
acquires additional processing facilities on temporary lease
basis.

Afeef reported a profit after tax (PAT) of INR2.38 million on net
sales of INR180.7 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.0 million on net sales
of INR83.5 million for 2008-09.


AKAK ISPAT: CRISIL Assigns 'B+' Rating to INR37.5MM Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to Akak Ispat Udyog Pvt
Ltd's bank facilities.

   Facilities                          Ratings
   ----------                          -------
   INR37.5 Million Cash Credit         B+/Stable (Assigned)
   INR12.5 Million Letter of Credit    B+/Stable (Assigned)


The rating reflects Akak's weak financial risk profile, marked by
a small net worth, high gearing, weak debt protection metrics, and
constrained liquidity, exposure to risks related to the commodity-
like market for its product and trading operations, and
susceptibility to volatility in steel prices. These rating
weaknesses are partially offset by Akak's moderate business risk
profile, backed by promoters' extensive experience in the steel
trading industry.

Outlook: Stable

CRISIL believes that Akak will continue to benefit from its
promoters' extensive experience in the steel trading industry,
over the medium term.  The financial risk profile will, however,
remain constrained due to its weak capital structure. The outlook
may be revised to 'Positive' if Akak's revenues and profitability
improve significantly, thereby increasing its net worth.
Conversely, the outlook may be revised to 'Negative' if the
company's revenues and profitability decline significantly,
leading to deterioration in its financial risk profile.

                          About Akak Ispat

Akak, based in Kolkata, was set up as a partnership firm, Aditya
Kumar Animesh Kumar, by Mr. Mohanlal Gupta in 1995; it was
reconstituted as a private limited company in January, 2008.  The
Gupta family has been trading in steel products since 1962.  Akak
trades in iron and steel products. Its products include mild steel
round bars, angles, channels, billets, and galvanized and cold-
rolled sheets.  The company procures materials from the Steel
Authority of India Ltd, Indian Iron and Steel Company Ltd, and
local traders and manufacturers.  It derives around 95 per cent of
its revenues from West Bengal, and the remainder from sales in
Uttar Pradesh and Bihar.

Akak reported a profit after tax (PAT) of INR0.3 million on net
sales of INR263 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR0.3 million on net sales
of INR262 million for 2008-09.


ALPHA INTERNATIONAL: CRISIL Rates INR15MM Cash Credit at 'BB-'
--------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Alpha International, which is part of the Alpha
group.

   Facilities                         Ratings
   ----------                         -------
   INR15.0 Million Cash Credit        BB-/Stable (Assigned)
   INR58.0 Million Packing Credit     P4+ (Assigned)

The ratings reflect the Alpha group's average financial risk
profile, marked by a modest net worth, and average debt protection
metrics.  The group's earnings profile is also exposed to risks
relating to availability of raw cashew and skilled labour. These
rating weaknesses are partially offset by the Alpha group's
established track record and the promoters' experience in the
cashew industry.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of AA Nutts, Alpha International, Afeef
Cashew Company, and Al-Aziz and Company, collectively referred to
as the Alpha group.  This is because these entities have, and are
managed by, common promoters, are in the same line of business,
and have business and financial fungibility.

Outlook: Stable

CRISIL believes that the Alpha group will continue to benefit from
its established market position in the cashew industry over the
medium term.  The outlook may be revised to 'Positive' if there is
significant improvement in the group's financial risk profile,
marked by growth in net cash accruals, while it maintains stable
debt protection indicators.  Conversely, the outlook may be
revised to 'Negative' if volatility in prices of raw cashew,
availability of skilled labour, and competitive pressures in end-
user markets adversely affect the group's revenues, profitability,
and net cash accruals.

                          About the Group

The Alpha group comprises four partnership firms, Alpha, Afeef,
Al-Aziz, and AA Nutts.  The Alpha group is promoted and managed by
Mr. M A Anzar, and his cousin, Mr. Mohammed Najeeb.  The firms,
based in Kollam (Kerala), process and export cashew nuts, and have
a combined capacity of 70 tonnes per day (tpd). The group also
acquires additional processing facilities on temporary lease
basis.

Alpha reported a profit after tax (PAT) of INR1.0 million on net
sales of INR187.6 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.4 million on net sales
of INR121.3 million for 2008-09.


ANANDHA INN: CRISIL Reaffirms 'D' Ratings on Various Bank Debts
---------------------------------------------------------------
CRISIL's ratings on Anandha Inn Pvt Ltd's bank facilities continue
to reflect sustained delays by Anandha in servicing its term loan;
the delays have been caused by Anandha's weak liquidity.

   Facilities                          Ratings
   ----------                          -------
   INR188.0 Million Long-Term Loan     D (Reaffirmed)
   INR6.5 Million Overdraft Facility   D (Reaffirmed)
   INR0.5 Million Bill Purchase-       P5 (Reaffirmed)
               Discounting Facility
   INR0.3 Million Bank Guarantee       P5 (Reaffirmed)

Anandha's revenues are concentrated in its single property,
Anandha Inn?a 70-room, four-star hotel at Puducherry.
Furthermore, the company has a modest scale of operations and is
susceptible to industrial and economic slowdowns.  However,
Anandha benefits from its good brand image in the premium hotel
segment in Puducherry.

Anandha has not made its June 2010 interest payment on its term
loans from Indian Bank.  The delay in servicing the debt is
because of the cost overrun in the company's ongoing convention
centre project and inadequate cash flows from its existing hotel,
which have weakened the company's liquidity.

Anandha is constructing a convention centre at an estimated cost
of INR348.5 million; the project cost has increased from INR240.0
million because of increase in raw material costs.  The project is
funded through a term loan of INR198.0 million and balance through
promoter's funds.  The convention centre is scheduled to commence
operations in September 2010 (in line with the initial plans),
while the repayment of the debt contracted to fund the project
began in June 2010.

Anandha reported a provisional net loss of INR1.6 million on net
sales of INR79.3 million for 2009-10 (refers to financial year,
April 1 to March 31), against a profit after tax of INR2.0 million
on net sales of INR78.8 million for 2008-09.

                         About Anandha Inn

Anandha was incorporated in 1990 by Mr. P Thirunavukkarasu.  The
company is in the hotel business and has a 70-room, 4-star hotel,
Anandha Inn, in Puduchery.  The company also runs a marriage hall,
Anandha Thirumeanilaoem, and a resto-bar business under the Asian
House brand.  The company is constructing a convention centre at a
cost of INR348.5 million; the convention centre is expected to
commence operations in September 2010.


BEST ROSES: CRISIL Reaffirms 'D' Rating on INR62.74MM LT Loan
-------------------------------------------------------------
CRISIL has reaffirmed its 'D' rating on the long-term bank
facility of Best Roses Biotech Pvt Ltd.  The rating reflects
prolonged default by Best Roses in repayment of its term loan
obligations.

   Facilities                         Ratings
   ----------                         -------
   INR62.74 million Long-Term Loan    D (Reaffirmed)

Best Roses, a 100% export-oriented unit, was engaged in soil-less
cultivation of flowers.  The company has shut down its operations
on account of losses.


BIOPAC INDIA: Fitch Upgrades National Long-Term Rating to 'B'
-------------------------------------------------------------
Fitch Ratings has upgraded Biopac India Corporation Limited's
National Long-term rating to 'B(ind)' from 'B-(ind)'.  The Outlook
is Stable.  The agency has also affirmed the Short-term ratings on
BICL's INR25 million fund-based limits and its INR62.5 million
non-fund based limits at 'F4(ind)'.  Fitch has simultaneously
upgraded these ratings on the company's bank loans:

  -- INR65 million long-term loans upgraded to 'B(ind)' from 'B-
     (ind)'; and

  -- INR60 million cash credit limits upgraded to 'B(ind)' from
     'B-(ind)'.

The upgrades primarily reflect stabilization of BICL's operations,
after it restructured its business following a December 2004 plant
fire.  After showing a negative net profit during FY08-FY07, BICL
showed positive profits during FY09-FY10 and improved cash flows
due to its better working capital management.

The ratings continue to be constrained by the relatively low value
addition undertaken by the company, its vulnerability to raw
material price volatility and increased competition due to low
barriers of entry, which may result in margin pressure.  The
ratings also factor in volatility in the foreign exchange rate,
although BICL follows a conservative forex policy and has been
able to manage the risks.  The Short-term ratings are constrained
by high working capital requirements due to its export operations
and the nature of the business.

The ratings are supported by a Long-term Stable demand Outlook.
The ratings also factor in benefits from packaging and hygiene
standards for the industry and the growing acceptability of
polystyrene as a food-grade plastic.  The company plans to
diversify its product portfolio, which is expected to give it top
line growth and stronger margins.

BICL's ratings could be further upgraded if it is able to
demonstrate sustained growth and an ability to manage the raw
material price fluctuations.  However, any material debt-led capex
and/ or acquisitions could apply downward rating pressure.  Any
significant negative impact from working capital, which affects
cash flow from operations, or a greater-than-expected decline in
the domestic market could also apply downward rating pressure.

In FY10, BICL reported net sales of INR416.5m, a total adjusted
debt/EBITDAR of 1.8x and an EBITDA margin of 15.2% (FY09:
INR313 million, 2.8x and 19.6%, respectively).  As at end-March
2010, BICL's total debt was INR108 million.  As on June 2010, the
company had INR85 million of fund-based limits and INR62.5 million
of non-fund based limits of which 28% and 4% have been utilized,
respectively.  The liquidity is expected to be consistent with the
ratings.


CHAMAN METALLICS: CRISIL Assigns 'BB+' Rating to INR170MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to Chaman
Metallics Ltd's bank facilities.

   Facilities                         Ratings
   ----------                         -------
   INR130.00 Million Cash Credit      BB+/Stable (Assigned)
   INR170.00 Million Term Loan        BB+/Stable (Assigned)
   INR40.00 Million Bank Guarantee    P4+ (Assigned)

The ratings reflect CML's large working capital requirements and
susceptibility of its margins to volatility in raw material
prices.  These rating weaknesses are partially offset by CML's
above-average financial risk profile, marked by moderate gearing,
and the benefits that the company derives from its promoters'
experience in the steel industry.

Outlook: Stable

CRISIL believes that CML will continue to benefit from its
promoters' industry experience and above-average financial risk
profile.  The outlook may be revised to 'Positive' if CML's
business and financial risk profile improve, most likely because
of improved capacity utilization and improvement in margins.
Conversely, the outlook may be revised to 'Negative' if the
company's financial risk profile weakens significantly as a result
of unfavourable movements in prices of coal and iron ore, or the
company extends its financial support to other MSP group entities.

                          About Chaman Metallics

CML, incorporated in 2003, manufactures sponge iron and has
enhanced its capacity to 75,000 tonnes per annum (tpa) from 30,000
tpa in 2009-10 (refers to financial year, April 1 to March 31).
The company promoted by Mr. Suresh Kumar Agarwal is part of the
Kolkata-based MSP group.

CML reported a profit after tax (PAT) of INR13.9 million on net
sales of INR333.7 million for 2009-10 against a PAT of INR16.4
million on net sales of INR313.3 million for 2008-09.


GLR REAL: CRISIL Reaffirms 'BB-' Rating on INR100MM Cash Credit
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of GLR Real Estate Pvt Ltd
continue to reflect GLR's exposure to implementation risks
associated with its upcoming Gulmohar City project and
geographical and project concentration in its revenue profile.
These rating weaknesses are partially offset by expectation of
timely completion and saleability of Phase 1 of GLR's Gulmohar
City project.

   Facilities                         Ratings
   ----------                         -------
   INR100.0 Million Cash Credit       BB-/Stable (Reaffirmed)
   INR50.0 Million Proposed LT Bank   BB-/Stable (Reaffirmed)
                Loan Facility

Outlook: Stable

CRISIL believes that GLR's financial risk profile will remain
stable over the medium term, supported by the expected timely cash
inflows from the completion of Phase 1 of the ongoing Gulmohar
City project.  The outlook may be revised to 'Positive' in case of
increased scale of operations leading to higher net worth levels.
Conversely, the outlook may be revised to 'Negative' if there is
substantial decline in GLR's cash accruals because of reduced
demand in the real estate sector in Gwalior, or if GLR contracts
sizeable debt to launch subsequent phases of Gulmohar City
project, thereby weakening its capital structure and debt
protection metrics.

                       About GLR Real Estate

GLR, incorporated in 2005, is a subsidiary of Neoteric
Constructions Ltd, which has been present in the real estate
market in Gwalior for around 15 years.  GLR successfully completed
and marketed one residential project in Gwalior - Phase III of
Garden Home - in 2007-08 (refers to financial year, April 1 to
March 31).  The company is currently executing a development
project of a mini city ? Gulmohar City in Gwalior, comprising
apartment homes, individual homes, row houses and villas. The
total project cost is estimated at INR2500 million.

GLR is currently executing the first phase of its Gulmohar City
project, which comprises 294 units (flats and row houses) with
cost estimated at INR350 million.

For 2008-09, GLR reported a profit after tax (PAT) INR27 million
on net sales of INR157 million, against a PAT of INR35 million on
net sales of INR132 million for 2007-08.


EMERALD MINERAL: Fitch Assigns 'B' National Long-Term Rating
------------------------------------------------------------
Fitch Ratings has assigned India's Emerald Mineral Exim Pvt. Ltd.
a National Long-term rating of 'B(ind)' with a Stable Outlook.
The agency has also assigned ratings to Emerald's bank loans:

  -- INR154 million fund-based working capital limits:
     'B(ind)'/'F4(ind)'; and

  -- INR50.07 million non-fund based working capital limits:
     'F4(ind)'.

The ratings reflect Emerald's trading nature of business with
associated risks of price and margins fluctuations.  Fitch notes
that Emerald carries a substantial inventory value fluctuaion risk
as its average inventory was more than two months' annual sales
during FY07-FY10.  Emerald's product portfolio mostly comprises
iron ore fines (over 90%) which are mainly meant for export to
China.  This has resulted in significant single product and
geographic concentration risks for the issuer.

The ratings derive support from Emerald's long-term agreements
with mine owners and license holders for iron ore fines, assuring
adequate supply, and also from the issuer's well developed network
of branch and associates offices, which facilitates logistics and
direct control at various stages of transportation.

Positive rating triggers include Emerald's EBIDTA interest
coverage of above 1.5x on a sustained basis with a positive growth
in its volumes.  Negative rating triggers include Emerald's EBIDTA
interest coverage of below 1.1x and/ or any restriction or ban on
the export of iron ore fines to China.

Emerald, incorporated in 2004, is involved in the trading and
export of iron ore fines.  In FY10, the company reported gross
revenues of INR1038.99 million (FY09: INR829.95 million), while
its EBIDTA margins improved to 2.78% (INR28.90 million) from 2.62%
(INR21.72 million) in FY09.


JET AIRWAYS: Expects Improved Seat Factors on International Routes
------------------------------------------------------------------
Jet Airways (India) Ltd. expects seat factors on international
routes to improve in the second quarter ending September 30, which
would offset a seasonally weak domestic market, The Economic Times
reports, citing a senior official.

The second quarter "historically shows lower seat factor because
of reduced leisure travel in the domestic segment," the Economic
Times cited Saroj Datta, executive director, as saying in a
conference call with analysts.  "International routes on the other
hand would show improved seat factors which should help compensate
for the fall in demand for domestic operations," Mr. Datta said.

The group, which has a fleet of 112 aircraft, plans to add between
four and six aircraft on lease for its domestic routes this year,
KG Vishwanath, vice president of strategy and investor relations,
told The Economic Times.  It has already taken delivery of two
aircraft.  It, however, has no plans to enhance capacity on its
international routes this fiscal, the report notes.

                          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.


JET AIRWAYS: Posts INR3.52cr Net Profit in Qtr Ended June 30
------------------------------------------------------------
Jet Airways (India) Ltd posted a stand-alone net profit of INR3.52
crore for the June quarter against a net loss of INR225.33 crore a
year ago, livemint.com reports.  The profit was helped by
exceptional items worth INR43.90 crore, including excess
depreciation reversal of INR53.93 crore.

But Jet also had some exceptional losses of INR103.20 crore during
the quarter, including the European volcanic ash impact, grounded
planes and start-up losses on Johannesburg-Mumbai flights.
Operating revenue increased 23.6% in the June quarter, against a
17% decline last year.  However, operating profit margin dropped
to 13.5% from 15.09% in the March quarter, mainly due to higher
fuel expenses (up 17.6%) and a 25% rise in sales and distribution
expenses.

                         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.


RAMAN ISPAT: CRISIL Assigns 'B' Rating to INR14.5MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to Raman Ispat Pvt
Ltd's bank facilities.

   Facilities                         Ratings
   ----------                         -------
   INR30.0 Million Cash Credit        B/Stable (Assigned)
   INR14.5 Million Term Loan          B/Stable (Assigned)
   INR10.0 Million Letter of Credit   P4 (Assigned)

The ratings reflect Raman's weak financial risk profile, marked by
a small net worth and weak debt protection metrics. The rating
also reflects Raman's exposure to risks related to small scale of
operations, to intense competition in the steel industry, to
product concentration in revenue profile, and to volatility in raw
material prices. These rating weaknesses are partially offset by
the benefits that Raman derives from its established customer base
and promoters' experience in the steel long products segment.

Outlook: Stable

CRISIL believes that Raman will continue to benefit from its
established customer base and its promoters' experience in the
steel long products manufacturing business over the medium term.
The rating outlook may be revised to 'Positive' in case of
significant improvement in Raman's profitability. Conversely, the
rating outlook may be revised to 'Negative' in case the company
undertakes larger-than-expected debt-funded capital expenditure
programme, leading to deterioration in its financial risk profile,
or in case of an unexpected decline in business volumes and
profitability, weakening its liquidity position.

                         About Raman Ispat

Set up in 1989, Raman manufactures of mild steel ingots, which are
used by secondary manufacturers and steel rolling mills to
manufacture thermo-mechanically treated (TMT) bars.  Raman's
manufacturing facility at Muzzafarnagar (Uttar Pradesh) has
capacity of 20,000 tonnes per annum (tpa).  Mr. Ram Pal Singh
(Director) manages the day-to-day operations and overall strategic
functions of the company.

Raman reported a profit after tax (PAT) of INR0.4 million on net
sales of INR170 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR0.7 million on net sales
of INR158 million for 2007-08.


SAKET ENGINEERS: CRISIL Assigns 'B-' Ratings to Various Bank Debts
------------------------------------------------------------------
CRISIL has assigned its 'B-/Stable/P4' ratings to Saket Engineers
Pvt Ltd's bank facilities.

   Facilities                              Ratings
   ----------                              -------
   INR195.30 Million Long-Term Loan        B-/Stable (Assigned)
   INR374.70 Million Proposed LT Loan      B-/Stable (Assigned)
   INR60.00 Million Proposed Cash Credit   B-/Stable (Assigned)
   INR190.00 Million Proposed Letter of    P4 (Assigned)
           Credit/Bank Guarantee

The ratings reflect Saket's exposure to risks related to pressure
on demand and realizations due to oversupply situation in
Hyderabad real estate market and the company's aggressive on-going
projects.  These rating weaknesses are partially offset by Saket's
diversified revenue profile and its established track record in
the regional real estate segment.

Outlook: Stable

CRISIL expects Saket to maintain its business risk profile on the
back of its established presence.  The outlook may be revised to
'Positive' in case of earlier than expected bookings in Saket's
residential projects resulting in healthy cash accruals and if
Saket increases the geographic diversity in its revenue profile.
Conversely, the outlook may be revised to 'Negative' in case of
time or cost overruns in Saket's ongoing project, lower-than-
expected revenues from new projects or unexpected cancellations of
orders or if Saket undertakes large debt funded fresh projects.

                        About Saket Engineers

Saket was set up by Mr. T Radhakrishnan in 1993.  The company is
engaged in construction of various types of residential,
commercial, and industrial structures in Hyderabad.  It has
developed around 750 custom-designed homes, and a gated community.

Saket posted a provisional profit after tax (PAT) of INR18 million
on net sales of INR207 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR19 million on net
sales of INR175 million for 2008-09.


* Moody's Upgrades Ratings on India's Government Bonds to 'Ba1'
---------------------------------------------------------------
Moody's Investors Service has upgraded India's local currency
government bond rating to Ba1 from Ba2.

Moody's has also affirmed India's Baa3 foreign currency government
bond rating, narrowing the gap between the local and foreign
currency ratings to one notch.

The outlook on the local currency rating remains positive, while
the outlook on the foreign currency sovereign rating remains
stable.

The main reasons for the local currency ratings upgrade are:

1.  A broad range of institutional and structural reforms whose
    deepening, over time, will result in gradual improvements in
    the government's financial strength, support fiscal
    credibility, and improve economic resiliency.

2.  The absence of any heightened recourse to non-market measures
    for financing the government's large stimulus program, which
    could otherwise have carried credibility costs

3.  The Indian economy's resilience throughout the global
    recession

4.  The weakening of the structural and policy reasons that could
    still allow the government to prioritize its external
    obligations over its domestic obligations

India's short-term issuer rating of NP was not affected by this
rating action.

Likewise, the country ceilings remain unchanged at Aa3 for local
currency bonds, Baa2 for foreign currency bonds, A1 for local
currency deposits, and Ba1 for foreign currency deposits.

              Rationale For The Ba1 Sovereign Rating
                     And Narrower Ratings GAP

"The upgrade of the local currency sovereign rating to Ba1 was
prompted by the Indian government's adoption of a medium-term
(2010-2015) fiscal consolidation strategy, which is supported by a
broadening structural reform program," said Mr. Aninda Mitra, a
Moody's Vice President and the company's lead sovereign analyst
for India.

"Ongoing policy normalization, disinvestments, fuel subsidy
reforms, along with impending tax reforms will support the
government's fiscal and debt position and are in line with, and
may even outperform, the government debt targets envisaged in the
'revised roadmap for fiscal consolidation' -- as laid out by the
country's Thirteenth Finance Commission," said Mr.  Mitra.

"The sovereign ratings also reflect the ability of policymakers to
temporarily mount sizable counter-cyclical policies without
weakening institutional credibility or damaging local investors'
faith in the government," said Mitra, adding, "recent reforms
follow closely on the heels of the demonstrated resilience of the
Indian economy which had performed better than most emerging
markets without any worsening of external or government debt
metrics."

"The absence of non-market or repressive measures to raise
domestic financing for a substantial government borrowing program
-- in a very stressful local and global environment -- also
influenced Moody's decision to upgrade India's local currency
rating," said the analyst.

          Rationale For The Positive Outlook On The Ba1
                       Local Currency Rating

The positive outlook on the Ba1 local currency sovereign rating
encapsulates the expectation that reasonable policy management and
a deepening of reforms will contain inflationary pressures, and
reduce the risk of any renewed fiscal slippage.  It also reflects
the political scope and the policy commitment for implementing
reforms until the end of the current government's term in office
in 2014.  These are expected to contain the risk of heightened
structural fiscal pressures from a broadening of social welfare
programs.

               What Could Eliminate The Ratings GAP

Moody's ratings gap in favor of the Indian government's foreign
currency obligations signifies a potential likelihood that the
government of India could prioritize its external obligations over
its domestic obligations.  The former are easily repayable and
owed predominantly to official creditors; and the latter are
onerous and owed largely to a statutorily pliable domestic
creditor base.

However, even amidst a trying global and local environment, Indian
authorities have remained on the course of implementing
incremental institutional and regulatory reforms that are
deepening and liberalizing domestic capital markets.  And,
improving government finances will also gradually ease the need
for onshore controls, and risk socialization.

In this context, Moody's will consider unifying India's local and
foreign currency ratings at Baa3 should the track record of fiscal
reforms deepen, and if --currently higher than usual- inflation
pressures normalize.  These developments would underpin the
government's structural reform program and improve its local
currency creditworthiness.

Currently, the Indian government's foreign currency bond rating of
Baa3 and its stable outlook is well positioned given the country's
reasonably healthy external fundamentals, and macroeconomic
prospects.

Moody's last rating action on India was taken on December 15,
2009, at which time it changed the outlook for the Ba2 local
currency sovereign ratings to positive from stable.


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


BERAU COAL: Moody's Affirms 'B2' Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service has affirmed its B2 corporate family
rating for PT Berau Coal.  At the same time, Moody's has affirmed
the B2 senior secured bond rating for the US$350 million 5-year
notes issued by Berau Capital Resources Pte Ltd, which is wholly
owned by PT Berau Coal Energy.  The B2 bond rating also extends to
the proposed tap issue on substantially the same terms and
conditions.  The outlook on both ratings is stable.

The ratings have been removed from their provisional status
following completion of the initial bond raising exercise as well
as the associated US$400 million senior secured loan transaction.

BCE is a 90% shareholder of Berau.  The bonds are guaranteed by
BCE and its subsidiaries, which includes Berau.  Funds raised at
the BCE level will total US$850 million, including the tap issue,
and will be substantially used to partially refinance bridge loans
incurred for the acquisition of Berau by Recapital Advisors.

The tap issue will be used to fund the interest reserve account
and pay fees related to the total US$850 million debt rising
exercise as well as repay a portion of the outstanding
US$580 million vendor notes.  The increase in the total debt
burden to US$1.53 billion clearly has negative implications for
financial metrics, and results in consolidated adjusted
debt/EBITDA increasing to 5.15x from 5.0x, although can be
contained at the B2 rating.  Moody's debt is adjusted to include
the vendor notes and subordinated loan from Bumi Resources at the
holding company.

The last rating action was taken on June 22, 2010, when the
provisional B2 ratings were assigned to Berau's corporate family
and senior secured bonds ratings.

Berau is Indonesia's fifth largest producer and exporter of
thermal coal.  It operates three active mines -- Lati, Sambarata
and Binungan -- at a single site in East Kalimantan.  It has
estimated resources of approximately 1.4 billion tons, with
probable and proven reserves estimated at 346 million tons ("mt").

In December 2009, Recapital acquired an effective 90% stake in
Berau from its existing shareholders for US$1.48 billion


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


JAPAN AIRLINES: Creditors Likely to Agree on Reduced Debt Waiver
----------------------------------------------------------------
Japan Airlines and its creditor banks are likely to agree to
reduce the amount of the carrier's debts that the banks will
forgive from JPY410 billion to about JPY383 billion, The Yomiuri
Shimbun reports citing unnamed sources.

According to the report, sources said JAL hopes to present a final
draft of its corporate rehabilitation plan to the banks, probably
on Aug. 2, and enter into final negotiations between the two
sides.

As reported in the Troubled Company Reporter-Asia Pacific on
July 26, 2010, Kyodo News said Japan Airlines is proposing a
reduction in its debt waiver to its main creditor banks.  The move
would bring JAL's debt waiver down by about JPY20 billion
from the current JPY400 billion it is asking from the creditor
banks, which have been reluctant to accept JAL's request for an
increased debt waiver, sources told Kyodo.  The airline will seek
a reduced figure from the current requested fresh loan of JPY360
billion.  By easing the burden on the banks, Kyodo noted, JAL
and Enterprise Turnaround Initiative Corp of Japan, the state-
backed administrator overseeing the airline's rehabilitation, are
hoping to reach an accord with the banks and proceed with
submitting the rehabilitation plan to the Tokyo District Court as
planned by the end of August.

                       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)


JMAC 4: Fitch Downgrades Ratings on Various Classes of Notes
------------------------------------------------------------
Fitch Ratings has downgraded the class D and E trust beneficiary
interests from JMAC 4 Trust due February 2013, and removed the
Rating Watch Negative on these TBIs.  Fitch has affirmed the
rating of the class C TBIs and also removed the RWN on this class.
All ratings actions are:

  -- JPY0.63 billion* Class A TBIs affirmed at 'AAA'; Outlook
     Stable;

  -- JPY1.0 billion* Class B TBIs affirmed at 'AAA'; Outlook
     revised to Stable from Negative;

  -- JPY0.9 billion* Class C TBIs affirmed at 'BBB-'; off RWN;
     Outlook Negative;

  -- JPY0.8 billion* Class D TBIs downgraded to 'D' from 'C';
     Recovery Rating of 'RR4'; off RWN; and

  -- JPY0.5 billion* Class E TBIs downgraded to 'D' from 'C';
     Recovery Rating of 'RR6'; off RWN.

  -- Class X1 TBIs (dividend-only), rating of 'AAA' with Stable
     Outlook has been withdrawn.

* As of July 23, 2010.  The principal amount for the purpose of
  dividend calculation (Haitou Keisan Kijun Ganpongaku) for the
  Class D and E TBIs has been reduced to JPY0.37 billion and JPY0
  respectively.  The face amount on these classes has not been
  changed.

The class D and E TBIs have been downgraded to reflect Fitch's
opinion that these TBIs have effectively experienced an
irreversible write-down of principal.  In late April 2010, the
servicer reported to the trustee regarding the uncollectable
amount from a loan that had defaulted in December 2008.
Consequently, the principal amount for the purpose of dividend
calculation has been reduced.

All properties backing the defaulted loan had been sold by end-
March 2010 and sales proceeds have already been applied to the
repayment of principal on the loan and TBIs at the May 2010
payment date.  Although some additional collections are expected
from this defaulted loan before the liquidation of the borrower,
the work-out activities initiated by the special servicer have
been substantially completed and the servicer has finalized the
uncollectable amount from the loan.  In Fitch's opinion, the
principal loss on the class D and E TBIs has in effect been
determined, following the reduction of the principal amount of
both for the purpose of dividend calculation for these classes:
JPY0.37bn for class D TBIs and JPY0 for class E TBIs.

The class C TBIs have been affirmed reflecting Fitch's view on the
credit enhancement level after the determination of the principal
loss on the junior classes as well as full recovery from another
defaulted loan.  The latter loan defaulted in February 2010.
However, it was fully recovered in late May 2010 after the
property was disposed.  The repayment proceeds from this loan will
be applied to the principal payment on the TBIs at the next
payment date in August 2010.  The agency has removed the RWN
status as it views that negative rating actions are unlikely in
the short term.  The performance of the two remaining properties
backing the two remaining loans is in line with Fitch's
expectations and the agency has adopted conservative property
values for the purpose of its review, reflecting the remaining
time to loan maturity.

The class A and B TBIs have been affirmed with Stable Outlooks to
reflect the improvement of credit enhancement levels to date,
given that all repayments from the underlying loans were applied
sequentially.

The rating on the dividend-only class X1 TBIs, which only
addresses the likelihood of receiving dividends while principal on
the related classes remain outstanding, has been withdrawn.  For
additional information, please see the comment, entitled 'Fitch
Revises Practice for Rating IO & Pre-Payment Related Structured
Finance Securities', dated June 23, 2010.

At closing, the TBIs were backed by 16 loans ultimately secured by
26 commercial real estate properties in Japan and to date, 13
loans have been fully repaid.  The transaction is currently
secured by two loans backed by a total of two properties,
repayment proceeds from one repaid loan and one defaulted loan,
which has been determined to effectively incur a principal loss.


L-JAC 8: S&P Downgrades Ratings on Various Interests to 'D'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D' from 'CC' its
ratings on the classes C to K trust beneficial interests issued
under the L-JAC 8 Trust Beneficial Interest transaction.  At the
same time, Standard & Poor's affirmed its ratings on the remaining
classes A and B trust beneficial interests.

One of the two transaction's underlying loans defaulted, and the
collateral property backing the defaulted loan was sold at a lower
price than the principal amount of the loan.  To reflect the
erosion of principal, Standard & Poor's lowered its ratings on
classes C to K to 'CC' on March 26, 2010.  Following the erosion
of the principal of the loan, the principal amounts of the classes
C to K trust beneficial interests were reduced on the trust
payment date in July 2010.  To reflect the reduction in principal
amounts, Standard & Poor's lowered its ratings on the classes C to
K to 'D' from 'CC'.

Standard & Poor's will continue to monitor the remaining one loan
backing this transaction (originally representing about 25.4% of
the initial issuance amount of the trust certificates), with a
focus on the repayment of the loan, the performance of the
underlying collateral property, and recoveries from the underlying
property.

L-JAC 8 Trust Beneficial Interest is a multi-borrower CMBS
transaction that was originally secured by two loans extended to
two obligors.  The loans were initially backed by one real estate
beneficial interest and one real estate property.  The transaction
was arranged by Lehman Brothers Japan Inc. Premier Asset
Management Co. acts as the servicer for this transaction.

The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's legal
final maturity date in January 2013 for the class A trust
certificates, the full payment of interest and ultimate repayment
of principal by the legal final maturity date for the class B to K
certificates.

                          Ratings Lowered

                 L-JAC 8 Trust Beneficial Interest
                Trust certificates due January 2013

Class   To          From    Initial issue amount     Coupon type
-----   --          ----    --------------------     -----------
C       D           CC      JPY1.68 bil.             Floating rate
D       D           CC      JPY1.68 bil.             Floating rate
E       D           CC      JPY0.79 bil.             Floating rate
F       D           CC      JPY0.76 bil.             Floating rate
G       D           CC      JPY0.77 bil.             Floating rate
H       D           CC      JPY0.87 bil.             Floating rate
I       D           CC      JPY0.84 bil.             Floating rate
J       D           CC      JPY0.6 bil.              Floating rate
K       D           CC      JPY0.32 bil.             Floating rate

                         Ratings Affirmed

Class   Rating        Initial issue amount          Coupon type
-----   ------        --------------------          -----------
A       BBB           JPY8.78 bil.                  Floating rate
B       CCC           JPY1.68 bil.                  Floating rate



L-JAC 7: S&P Downgrades Ratings on Various Certificates to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on classes
H-1, I-1, J-1, and K-1 trust certificates issued under the L-JAC 7
Trust Beneficial Interest and Trust Loan transaction to 'D' from
'CC'.  At the same time, Standard & Poor's affirmed its ratings on
the remaining 20 tranches of trust certificates, trust loan, and
class X trust certificate.

One of the transaction's underlying loans defaulted in March 2009,
and the collateral property backing the defaulted loan was sold at
a lower price than the principal amount of the loan.  To reflect
the erosion of principal, Standard & Poor's lowered its ratings on
classes H-1, I-1, J-1 and K-1 to 'CC' on March 2, 2010.  Following
the erosion of the principal of the loan, a loss was incurred on
the principal of these four tranches on the trust payment date in
July 2010.  As a result, Standard & Poor's lowered its ratings on
the four classes to 'D' from 'CC'.

Standard & Poor's will continue to monitor the remaining six loans
and specified bonds backing this transaction (originally
representing about 87.8% of the initial issuance amount of the
trust certificates), with a focus on their repayment, the
performance of underlying collateral properties, and recoveries
from underlying properties.

L-JAC 7 is a multi-borrower CMBS transaction initially secured by
four specified bonds and four nonrecourse loans that were
originally extended to eight obligors.  The specified bonds and
nonrecourse loans were originally backed by 16 real estate
properties and real estate beneficial interests.  The transaction
was arranged by Lehman Brothers Japan Inc. Premier Asset
Management Co. is the transaction servicer.

The ratings reflect S&P's opinion of the likelihood of full and
timely payment of interest and the ultimate repayment of principal
by the transaction's legal final maturity date in 2014 for the
class A trust certificates and the trust loan, the full payment of
interest and ultimate repayment of principal by the legal final
maturity date for the class B to K-1 certificates, and the timely
payment of available interest for the class X certificates.

                          Ratings Lowered

         L-JAC 7 Trust Beneficial Interest and Trust Loan
       JPY38.96 billion Trust certificates due October 2014

Class     To        From     Initial issue amount   Coupon type
-----     --        ----     --------------------   -----------
H-1        D         CC       JPY0.68 bil.           Floating rate
I-1        D         CC       JPY0.65 bil.           Floating rate
J-1        D         CC       JPY0.50 bil.           Floating rate
K-1        D         CC       JPY0.15 bil.           Floating rate

                          Ratings Affirmed

Class           Rating Initial issue amount         Coupon type
-----           ------ --------------------         -----------
A                AA     JPY11.75 bil.                Floating rate
Trust Loan       AA     JPY8.50 bil.                 Floating rate
B                BBB+   JPY3.15 bil.                 Floating rate
C                B+     JPY3.14 bil.                 Floating rate
D-1              BB-    JPY1.88 bil.                 Floating rate
D-2              CCC    JPY1.10 bil.                 Floating rate
D-3              CCC    JPY0.60 bil.                 Floating rate
E-1              B+     JPY0.61 bil.                 Floating rate
E-2              CCC    JPY0.56 bil.                 Floating rate
E-3              CCC    JPY0.27 bil.                 Floating rate
F-1              B      JPY0.80 bil.                 Floating rate
F-2              CCC    JPY0.49 bil.                 Floating rate
F-3              CCC    JPY0.26 bil.                 Floating rate
G-1              CCC    JPY0.71 bil.                 Floating rate
G-2              CCC    JPY0.48 bil.                 Floating rate
G-3              CCC    JPY0.26 bil.                 Floating rate
H-2              CCC    JPY0.64 bil.                 Floating rate
H-3              CCC    JPY0.30 bil.                 Floating rate
I-2              CCC    JPY0.62 bil.                 Floating rate
I-3              CCC    JPY0.33 bil.                 Floating rate
J-2              CCC    JPY0.53 bil.                 Floating rate
X                AAA    JPY38.96 bil. (Initial notional principal)


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


DAEWOO ENGINEERING: Second Qtr Net Profit Slumps 86% to KRW22BB
---------------------------------------------------------------
Yonhap News reports Daewoo Engineering & Construction Co. said
Tuesday that its second-quarter earnings dropped 86% from a year
earlier mainly due to a slump in the local construction market and
increased reserves against possible losses.

The company said its net profit reached KRW22 billion (US$18.6
million) in the April-June period, compared with a profit of
KRW161 billion a year earlier, Yonhap News relates.

As reported in the Troubled Company Reporter-Asia Pacific on
July 1, 2009, Kumho Asiana Group decided to put Daewoo Engineering
and Construction up for sale.  Kumho Asiana, which bought Daewoo
Engineering for US$5 billion three years ago, said it has not yet
determined the exact size of stake to be sold, the Financial Times
said.  The size of the sale would be designed to "minimize the
group's losses and to reduce a buyer's burden."  The announcement,
according to the FT, follows pressure on Kumho to raise money by
finding fresh investors in Daewoo by the end of July to ease a
liquidity crunch.  Kumho has a 33% stake in Daewoo with management
control while financial investors hold a further 39%.

                     About Daewoo Engineering

Headquartered in Seoul, South Korea, Daewoo Engineering &
Construction Co. -- http://www.daewooenc.com/-- has become a
world leader in civil engineering, housing construction, power
and industrial plant development, architectural services, and
construction of liquid natural gas facilities.  In addition to
large-scale domestic projects, Daewoo has more recently built
gas plants in Nigeria, a hospital in Libya, and the Trump World
Tower in New York, to name a few.


HYNIX SEMICONDUCTOR: Creditors Sell 4.14% Stake for US$493 Million
------------------------------------------------------------------
Saeromi Shin at Bloomberg News reports that Hynix Semiconductor
Inc. creditors on Tuesday sold a 4.14% stake in the world's
second-largest chipmaker at no discount, raising KRW584.5 billion
(US$493 million).

Bloomberg relates main lender Korea Exchange Bank said in a
statement that Hynix creditors sold 24.4 million shares at
KRW23,950 apiece, the stock's closing price on July 26, to
domestic and foreign institutional investors.

According to Bloomberg, Korea Exchange Bank said the group of nine
financial institutions, which is seeking to recoup the US$4.6
billion spent on bailing out Hynix owns 15% of the company after
the transaction.  The group has had difficulty in finding a buyer
for their shareholding, Bloomberg notes.

Bloomberg recalls that creditors sold a 6.7% stake in Hynix for
KRW923.2 billion in March after three failed attempts to sell
their entire holding.  They've said they'll continue looking for a
strategic purchaser.

Nomura Holdings Inc., Credit Suisse Group AG, Woori Investment &
Securities Co. and Shinhan Investment Corp. arranged the sale, the
report adds.

                     About Hynix Semiconductor

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
June 7, 2010, Fitch Ratings upgraded Hynix Semiconductor's
Long-term foreign currency Issuer Default Rating to 'BB-' from
'B+'.  The Outlook has been revised to Stable from Negative.  At
the same time, the agency also upgraded the ratings of its
outstanding senior unsecured debt aggregating US$500m to 'BB-'
from 'B', and assigned a Long-term local currency IDR at 'BB-'.


TRIGEM COMPUTER: Bondholders Prevail in Earmarking Dispute
----------------------------------------------------------
Pursuant to the earmarking doctrine, WestLaw reports, funds that
were transferred to a Chapter 11 corporate debtor by and through
arrangements made by the debtor's foreign parent for the specific
purpose of making a payment to the parent's bondholders were not
property of the debtor, as required for the trustee to avoid the
debtor's subsequent transfer of the funds to the bondholders as a
fraudulent transfer.  It did not matter that there was no written
agreement between the debtor and its parent as to how the funds
were to be used, given the parties' common understanding that the
debtor was to use the funds to make payment to bondholders.
Moreover, the fact that the transactions were designated by the
debtor and parent in their accounting records as pay-downs by the
parent on an intercompany receivable did not make the earmarked
amounts the debtor's funds.  The debtor owed a significantly
greater amount to its parent and thus was the net inter-company
debtor, such that the transfer would not have occurred absent the
parent's use of the debtor as a conduit to accomplish the
subsequent transfer to the bondholders.  In re Trigem America
Corp., --- B.R. ----, 2010 WL 2787855 (Bankr. C.D. Cal.) (Albert,
J.).

Keith F. Cooper, the Chapter 11 trustee for Trigem America
Corporation, sued (Bankr. C.D. Calif. Adv. Pro. No. 07-AP-01140)
six holders of zero-coupon convertible bonds issued by the debtor-
subsidiary's foreign corporate parent, TriGem Computer, Inc. (a
Korean computer manufacturer and publicly traded company on the
Korean Stock Exchange), in seeking to avoid allegedly fraudulent
prepetition transfer.  The parties cross-moved for summary
judgment, and Judge Albert granted and denied parts of those
motions.

After reviewing all of the declarations, deposition transcripts
and uncontradicted evidence presented in this matter, Judge Adler
concludes that no triable issue of material fact remains.  With
respect to all but $250,000 of the challenged transfer, Judge
Adler says, the trustee fails to prove that property of the debtor
was involved.  Instead, it appears to the Court that the bulk of
the challenged transfer was actually TGI's money and TGA acted
merely as a conduit.  Viewed from the perspective of TGA's
creditors, the creditors had no reasonable expectation of ever
seeing any of that money absent the challenged transfer and so it
is not equitable that they should recover it now through a
fraudulent transfer action.  The Court is persuaded that
earmarking has a role to play in fraudulent transfers as well as
preference actions, even in the Ninth Circuit.  Concerning the
$250,000 however, this was clearly TGA's money and the challenged
transfers were clearly made while the debtor was insolvent.  No
reasonably equivalent consideration was received in return for the
challenged transfer when viewed from the perspective of debtor's
creditors.

Christopher T. Williams, Esq., Douglas C. Emhoff, Esq., and
Jennifer Levin, Esq., at Venable LLP in Los Angeles, represent the
Chapter 11 Trustee.   The Bondholders are represented by Aluyah I.
Imoisili, Esq., Delilah Vinzon, Esq., Fred Neufeld, Esq., and
Jerry L. Marks, Esq., at Milbank Tweed Hadley & McCloy LLP in Los
Angeles.

Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer
Inc. -- http://www.trigem.com/-- manufactures desktop PCs,
notebook PCs, LCD monitors, printers, scanners, other computer
peripherals, and PIDs and supplies over four million PCs a year
to clients all over the world.  Il-Hwan Park, the Foreign
Representative, filed a chapter 15 petition on Nov. 3, 2005
(Bankr. C.D. Calif. Case No. 05-50052).  Charles D. Axelrod,
Esq., at Stutman Treister & Glatt, P.C., represents the Foreign
Representative in the United States.

TriGem America Corporation, a U.S. subsidiary-affiliate, sought
chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif.
Case No. 05-13972).  TriGem Texas, Inc., another U.S. affiliate,
sought chapter 11 protection on June 8, 2005 (Bankr. C.D. Calif.
Case No. 05-14047).

On Sept. 13, 2007, TriGem filed Draft Plan Amendments in Korea and
on Sept. 20, 2007, filed a Final Plan Amendment.  The Korean Court
confirmed TriGem's Amended Plan on Oct. 4, 2007.


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


AIR NEW ZEALAND: Carried 1 Million Passengers in June
-----------------------------------------------------
Air New Zealand carried 1 million passengers during the month of
June.  Revenue passenger kilometres (RPKs) were up 5.8% and
capacity (ASKs) was increased by 1.7%.  The Group load factor
increased by 3.2 percentage points.

Short Haul passenger numbers were up 8.2% on June last year.
Demand (RPKs) increased in the Domestic market by 10.6% on last
year and the load factor rose by 5.7 percentage points to 80.7% as
capacity was increased by 2.9%.  Tasman / Pacific capacity was
reduced by 3.4% and demand increased by 2.2%.  The Tasman /
Pacific load factor increased 4.5 percentage points on June 2009
to 81.2%.

Long Haul passenger numbers were 4.8% higher than June last year.
On North America / UK routes demand increased by 3.9% and capacity
was similar to last year, the load factor increased by 3.0
percentage points to 87.0%.  Demand increased by 10.5% on Asia /
Japan / UK routes and capacity was increased by 10.0%* with the
load factor relatively flat at 79.1%.  In June last year Air New
Zealand reduced capacity in response to decreased demand as a
result of swine flu that predominantly impacted Asian markets.

Group-wide yields for the financial year to date were down 7.1% on
the same period last year.  Year to date Short Haul yields were
down 5.4% and the respective Long Haul yields were down by 10.7%.
Removing the impact of foreign exchange, Group-wide yields were
down 4.9%.

Poor weather again caused a number of operational challenges
during June resulting in 83.0% of Air New Zealand's Domestic
flights departing within 10 minutes of schedule departure time.

                       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.


CRAFAR FARMS: Asks Receivers to Hand Over Documents
---------------------------------------------------
Embattled dairy farmer Allan Crafar has lodged an application at
the High Court in Rotorua to force the receivers of his farms to
hand over a number of documents, the National Business Review
reports.

Mr. Crafar told the National Business Review on Tuesday that the
application for discovery of documents was lodged in an effort to
obtain information about how the receivership of his family's 16
dairy farms was being handled, including how decisions were being
made and who was making them.

                     Crafar Tenancy Agreement

The National Business Review reports that the Crafars were told to
hand over a tenancy agreement for their home.  According to NBR,
receiver Michael Stiassny of KordaMentha said the family was
saying they have a document that includes an arrangement to stay
on the property for life.

NBR relates Mr. Crafar said the tenancy agreement was between the
family and one of the family's companies, Plateau Farms, which
actually owned the house.

Mr. Crafar and five family members appeared in the High Court at
Rotorua on Tuesday to defend their right to remain on the
properties that went into receivership late last year, the New
Zealand Press Association reports.

NZPA says their appearance followed an application by the
receivers to remove Mr. Crafar, Jean Crafar, Frank Robert Crafar,
Heather Monro, Robert Scott Crafar and Layla Rebecca Robinson from
the properties.

NZPA notes that Associate Judge Anthony Christiansen told Mr.
Crafar he would need to get a lawyer before the group's next
appearance on August 23, because there was a lot of work yet to be
done.

As reported in the Troubled Company Reporter-Asia Pacific on
June 3, 2010, The New Zealand Herald said receivers KordaMentha
are trying to get a court order to remove Allan Crafar from his
Reporoa property, after he rejected an offer for six months' free
rent if he left the farm on April 9.  KordaMentha said Mr. Crafar,
as the director of Plateau Farms Limited (in receivership), no
longer controlled the properties and therefore had no legal right
to be living there.  Mr. Crafar has always maintained he would
defend any court action brought against him by receivers.

                    NZ$200 Million Debt Repayment

Meanwhile, the National Business Review reports that Crafar
interests have until August 6 to prove they have the money to
retire more than NZ$200 million of debt that led to receivers
KordaMentha being called in last October.

In addition, NZ$50,000 for security of costs needed to be made
available if an application for an injunction to stall the sale of
the farms was to proceed at the High Court in Auckland, according
to NBR.

                         About Crafar Farms

Crafar Farms, New Zealand's largest family owned dairy business,
runs about 20,000 milking cows, and carries about 10,000 of other
stock.  The company employs 200 staff.

Crafar Farms was placed in receivership by its lenders Westpac
Banking Corp., Rabobank Groep and PGG Wrightson Finance.  The
banks are owed around NZ$200 million and put KordaMentha partners
Michael Stiassny and Brendon Gibson in as receivers after Crafar
Farms breached covenants on its loans.

The New Zealand Herald said CraFarms' banks have been working with
the Ministry of Agriculture and Forestry, Federated Farmers and
Fonterra to ease the Crafars out of their business.  This follows
multiple convictions for environmental lapses and animal neglect
in recent years and the revelation on September 28, 2009, from
interest.co.nz of animal neglect on one of its large farms in the
King Country near Benneydale.


STRATEGIC FINANCE: Perpetual Trust Appoints Liquidators
-------------------------------------------------------
Perpetual Trust Ltd. has appointed liquidators to failed finance
company Strategic Finance, the New Zealand Press Association
reports.  The High Court in Wellington made an order Monday that
Corporate Finance's John Cregten and Andrew McKay be appointed
liquidators.

The Troubled Company Reporter-Asia Pacific reported on March 15,
2010, that PricewaterhouseCoopers partners John Fisk and Colin
McCloy were appointed receivers of Strategic Finance Limited and
related companies Strategic Advisory Limited, Strategic Mortgages
Limited, Strategic Nominees Limited, and Strategic Nominees
Australia Limited.  This ends the moratorium arrangement that has
been in place since December 2008.  The companies' trustee,
Perpetual Trust, appointed receivers after SFL failed to generate
sufficient loan recoveries for its milestone payment on January 7,
2010.  The company owed NZ$417 million to 13,000 investors.

NZPA relates Perpetual Trust head of corporate trust Matthew
Lancaster said liquidators had broader powers than receivers to
investigate transactions in the time leading up to receivership.
Specifically, Mr. Lancaster said if there were transactions the
liquidators thought were voidable for the period up to two years
before liquidation proceedings starting, they could try to have
those transactions overturned, according to NZPA.

                       About Strategic Finance

Headquartered in Wellington, New Zealand, Strategic Finance
Limited (NZE:SFLHA) -- http://www.strategicfinance.co.nz/--
operates as a specialist finance company offering financial
services, primarily to the property sector.  The Company also
provides specialist financial and advisory services to the
property and corporate sectors.  The Company operates in
New Zealand, Australia and Pacific Islands.  The Company's
operating subsidiaries include Strategic Advisory Limited,
Strategic Nominees Limited, Strategic Mortgages Limited and
Strategic Nominees Australia Limited.  The Company's non-operating
subsidiary is Strategic Properties No.1 Limited.  In May 2009, the
Company incorporated a subsidiary, Gulf Property Holdings Limited.

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


=====================
P H I L I P P I N E S
=====================


PHILIPPINE AIRLINES: Annual Loss Narrows to US$14.3 Million
-----------------------------------------------------------
Philippine Airlines narrowed total comprehensive losses for its
fiscal year that ended March 2010 to $14.3 million, compared with
$297.8 million in losses during the previous fiscal year due
largely to weak demand in the international sector, BusinessWorld
Online reports.

BusinessWorld relates PAL said capacity cuts by global airlines
did not match the decline in passenger traffic, exerting pressure
on yields.  Because PAL lowered fares, revenues went down to $1.36
billion from $1.6 billion the previous year.

"Through prudent handling of resources, PAL's total expenses
dropped to $511.4 million, less than the previous year's $1.86
billion," PAL said.  The airline said the major factor for reduced
expenses was the huge drop in fuel prices to an average of $86.94
per barrel from $123.80 the year before.

PAL, as cited by BusinessWorld, also said it had generated "other
income" of $102.5 million after a fair valuation changes to
outstanding fuel deals and a one-time gain from debt buybacks.

Moving forward, PAL said it will strive to improve its financial
condition and results of operations.  BusinessWorld adds the
carrier said it had lined up and implemented various "revenue
enhancement" programs, cash generation strategies, and cost
control initiatives that includes outsourcing of three units.

As reported in the Troubled Company Reporter-Asia Pacific on
April 21, 2010, the Manila Bulletin said that the Philippine
Airlines is spinning off its three non-core units as a last resort
to avoid bankruptcy.  PAL will spin off its three non-core units:
inflight catering services; airport services, including ground
handling, cargo handling and ramp handling; and call center
reservations by May 31, the Manila Bulletin said.  According to
The Manila Standard Today, the PAL Employees Union estimated that
2,000 to 4,000 employees assigned to those departments could be
retired.  The Manila Standard related that PAL president Jaime
Bautista said competition from overseas carriers, slower global
economic growth, and higher oil prices had prompted the airline to
slash its non-core businesses.  The carrier had approached several
investors but failed to secure financial help, and equity had
dropped to a worrisome US$1.1 million as of February 2010,
according to the Manila Standard.

                     About Philippine Airlines

Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline.  It was the first airline in
Asia and the oldest of those currently in operation.  With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights.  First taking off in
1941, the carrier has grown into a fleet of about 40 aircraft
(including five Boeing 747-400s) flying to more than 20 domestic
points and about 30 foreign destinations.


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


XODTEC LED: Posts $614,400 Net Loss in Q1 Ended May 31
------------------------------------------------------
Xodtec LED, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $614,439 on $243,785 of revenue for the
three months ended May 31, 2010, compared with a net loss of
$896,844 on $230,087 of revenue for the same period of 2009.

The Company's balance sheet at May 31, 2010, showed $1,786,400 in
assets and $2,522,583 of liabilities, for a stockholders' deficit
of $736,183.

As reported in the Troubled Company Reporter on July 23, 2010,
Simon & Edward, LLP, in City of Industry, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statements
for the fiscal year ended February 28, 2010.  The independent
auditors noted that the Company has incurred significant operating
losses, has serious liquidity concerns and may require additional
financing in the foreseeable future.

A full-text copy of the quarterly report is available for free at:

               http://researcharchives.com/t/s?670b

Headquartered in Jhonghe City, Taiwan, Xodtec LED, Inc. is a
Nevada corporation incorporated on November 29, 2006, under the
name Sparking Events, Inc.  On June 28, 2009, the Company's
corporate name was changed to "Xodtec Group USA, Inc." and on
May 17, 2010, the Company's corporate name was changed to "Xodtec
LED, Inc."

The Company, through its subsidiaries, is engaged in the design,
marketing and selling of advanced lighting solutions which are
designed to use less energy and have a longer life than
traditional incandescent, halogen, fluorescent light sources.  The
Company's wholly-owned subsidiaries, Xodtec Technology Co., Ltd.;
Targetek Technology Co., Ltd.; UP Technology Co., Ltd., are
organized under the laws of the Republic of China (Taiwan).  The
Company also owns a 35% interest in Radiant Sun Development S.A.,
a company organized under the laws of the Independent State of
Samoa.


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


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------


Aug. 3, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Atlanta Consumer Bankruptcy Skills Training
       Georgia State Bar Building, Atlanta, Ga.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Md.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 11-14, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Hawai.i Bankruptcy Workshop
       The Fairmont Orchid, Big Island, Hawaii
          Contact: 1-703-739-0800; http://www.abiworld.org/

Sept. 14, 2010
AMERICAN BANKRUPTCY INSTITUTE
    ABI/NYIC Golf and Tennis Fundraiser
       Maplewood Golf Club, Maplewood, N.J.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Sept. 20, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
    Complex Financial Restructuring Program
       Fordham Law School, New York, N.Y.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Sept. 23-25, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Southwest Bankruptcy Conference
       Four Seasons Las Vegas, Las Vegas, Nev.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 1, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
    ABI/UMKC Midwestern Bankruptcy Institute
       Kansas City Marriott Downtown, Kansas City, Kan.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
          Contact: http://www.turnaround.org/

Oct. 11, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Chicago Consumer Bankruptcy Conference
       Standard Club, Chicago, Ill.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 15, 2010
AMERICAN BANKRUPTCY INSTITUTE
    NCBJ/ABI Educational Program
       Hilton New Orleans Riverside, New Orleans, La.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 29, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
    International Insolvency Symposium
       The Savoy, London, England
          Contact: 1-703-739-0800; http://www.abiworld.org/

Nov. __, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Delaware Views from the Bench and Bankruptcy Bar
       Hotel du Pont, Wilmington, Del.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Nov. 11, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Detroit Consumer Bankruptcy Conference
       Hyatt Regency Dearborn, Dearborn, Mich.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Dec. 9-11, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Winter Leadership Conference
       Camelback Inn, a JW Marriott Resort & Spa,
       Scottsdale, Ariz.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
    22nd Annual Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800; http://www.abiworld.org/

Jan. 20-21, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Rocky Mountain Bankruptcy Conference
       Westin Tabor Center, Denver, Colo.
          Contact: 1-703-739-0800; http://www.abiworld.org/

January 26-28, 2011
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Distressed Investing Conference
       Aria Las Vegas
          Contact: http://www.turnaround.org/

Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center,
       National Harbor, Md.
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Mich.
             Contact: http://www.abiworld.org/

July 21-24, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Hyatt Regency Newport, Newport, R.I.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 4-6, 2011  (tentative)
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hotel Hershey, Hershey, Pa.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
    NCBJ/ABI Educational Program
       Tampa Convention Center, Tampa, Fla.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
    Hilton San Diego Bayfront, San Diego, CA
       Contact: http://www.turnaround.org/

Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    23rd Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, Calif.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center,
       National Harbor, Md.
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Workshop
       The Ritz-Carlton Amelia Island, Amelia Island, Fla.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Md.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
    Winter Leadership Conference
       JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
          Contact: 1-703-739-0800; http://www.abiworld.org/


                         *********

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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