TCRAP_Public/100811.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, August 11, 2010, Vol. 13, No. 157

                            Headlines



A U S T R A L I A

AUSTRALIAN AGRICULTURAL: First Half Loss Narrows to AU$12.2 Mil.


C H I N A

TITAN PETROCHEMICAL: Moody's Withdraws 'Caa3' Corp. Family Rating
XINHUA SPORTS: Gets Min. Bid Price Non-Compliance Note from NASDAQ


H O N G  K O N G

INTELLILOGICAL LIMITED: Members' Final Meeting Set for Sept. 6
KING MASCOT: Members' Final Meeting Set for September 3
LU KEE: Creditors' Meeting Set for August 24
OPULENT INDUSTRIAL: Briscoe and Meng Step Down as Liquidators
OXWOOD LIMITED: Creditors' Proofs of Debt Due September 6

RRT ENGINEERING: Creditors' Proofs of Debt Due September 6
SANYO ELECTRONIC: Members' Final Meeting Set for September 8
SUMISHO LEASE: Creditors' Proofs of Debt Due September 7
SUNLINK WAVECOM: Creditors' Proofs of Debt Due September 6
TEAM BRIGHT: Chan Yui Hang Michael Appointed as Liquidator

TOPSEAL COMPANY: Creditors' Proofs of Debt Due September 7
TRI LONG: Members' Final Meeting Set for September 10
WELL EAST: Creditors' Proofs of Debt Due August 27


I N D I A

AIRSERCO PRIVATE: CRISIL Reaffirms 'BB-' Rating on INR72.9M Loans
EVOLUTION EDUCATION: CRISIL Reaffirms 'BB-' Rating on INR140M Loan
GENOM BIOTECH: CRISIL Cuts 'D' Ratings on INR50MM Long-Term Loan
GK AUTOWHEELS: CRISIL Reaffirms 'BB-' Rating on INR62.5MM Credit
HOTHUR ISPAT: CRISIL Reaffirms 'D' Ratings on INR533.3MM LT Loan

JALARAM COTTON: CRISIL Reaffirms 'BB-' Rating on INR73MM Term Loan
KALPANA FORGINGS: CRISIL Reaffirms 'BB+' Rating on INR82MM LT Loan
KAPIL PLASTIC: CRISIL Assigns 'D' Rating on INR4.0MM Term Loan
KIRAN INDUSTRIES: CRISIL Reaffirms 'B' Rating on Long-Term Loan
MAX HYPERMARKET: CRISIL Reaffirms 'BB' Ratings on Proposed Loan

PERFECT RADIATORS: CRISIL Reaffirms 'B' Rating on Long Term Loan


I N D O N E S I A

BANK DANAMON: 9-Month Net Profit Slumps 23% to IDR1.365 Trillion
GARUDA INDONESIA: To Pay US$76MM in Debts to Pertamina over 7years
INDAH KIAT: JCR Withdraws 'D' Ratings on Various Notes
PAKUWON JATI: Moody's Changes Outlook on 'Caa1' Rating to Stable


J A P A N

CORSAIR LIMITED: Fitch Downgrades Ratings on Two Notes to 'D'
JAPAN AIRLINES: To Sell Ground Service Units, Nikkei Reports
* JAPAN: Corporate Bankruptcies Fall 23.1% in July
* S&P Puts Ratings on Four Japanese Tranches on Positive Watch


M A L A Y S I A

EVERMASTER GROUP: Abdallah Files Wind-Up Petition Against Unit
KBB RESOURCES: Defaults on MYR20.80 Million Loan Payment


N E W  Z E A L A N D

ALLIED FARMERS: Puts NZ$19.3 Million Capital Raising Plan on Hold
DOMINION FINANCE: Directors to Face Trial Next Month
NZ FARMING: Olam May Tap NZFU Shareholders for Additional Capital


P H I L I P P I N E S

PHILIPPINE AIRLINES: Loses Contract Breach Case Against Pilot
PHILIPPINE AIRLINES: Flight Attendants' Strike Looms as Talks Fail
PHILIPPINE AIRLINES: More Pilots Reportedly Planning to Resign
* Fitch Affirms Philippines' Issuer Default Rating at 'BB'


S I N G A P O R E

AMARU INC: Posts $423,500 Net Loss in Q1 Ended March 31


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars




                         - - - - -


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


AUSTRALIAN AGRICULTURAL: First Half Loss Narrows to AU$12.2 Mil.
----------------------------------------------------------------
Dow Jones Newswires reports that Australian Agricultural Co.'s
first-half loss has narrowed sharply to AU$12.2 million from
AU$30.3 million loss reported a year earlier.  Revenue in the
first half ended June 30, 2010, was AU$105 million, up 43% from
AU$73.6 million.

Dow Jones relates AACo Chief executive David Farley said that this
demonstrated that the turnaround of the business was underway and
progressing with a platform for growth being established.

The company incurred a AU$53.7 million loss for the year ended
Dec. 31, 2009, compared to a AU$38.7 million loss for the previous
corresponding period ended Dec. 31, 2008.

Australian Agricultural Company Limited (ASX:AAC) --
http://www.aaco.com.au/-- is engaged in the business of
operation of grazing and farming properties; cattle breeding,
growing, feedlotting and trading, and wholesale marketing.  The
Company operates in two business segments: cattle and farming
operations, and wholesale beef.  The Company operates an
integrated cattle production system across 22 cattle stations
(plus two feedlots and three farms) located throughout Queensland
and the Northern Territory covering approximately 8.2 million
hectares.


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


TITAN PETROCHEMICAL: Moody's Withdraws 'Caa3' Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Service has withdrawn the "Caa3" corporate
family rating and "C" rating for the 8.5% senior unsecured notes
due November 2012 issued by Titan Petrochemical Group Limited.

This rating withdrawal follows Titan's announcement that it has
closed its tender offer and obtained the agreement from note
holders of 66.43% -- about US$ 209 million -- of the 2012 Notes to
exchange their notes into cash, senior guaranteed convertible
notes due 2015, and senior payment in kind notes due 2015.

Moody's considers this transaction as a distressed exchange and
hence a default under the 2012 Note obligations.

The remaining 2102 Notes -- totaling US$ 106 million -- will rank
as subordinate to the new notes issued under the exchange.

Titan's ratings were assigned by evaluating factors which Moody's
believes are relevant to its credit profile, such as (1) business
risks and competitive position versus others within its industry;
(2) capital structure and level of financial risk; (3) projected
performance over the near to medium term; and (4) management's
track record and tolerance for risk.

These attributes were compared against other issuers both within
and outside of Titan's core industry.  Titan's ratings are
believed to be comparable to those of other issuers of similar
risk.

The last rating action with respect to Titan was taken on 9
December 2009 when Moody's downgraded Titan's senior unsecured
debt rating to C from Ca and affirmed Titan's Caa3 Corporate
family rating following Titan's announcement that it was
commencing an exchange offer and consent solicitation for the 2012
Notes.

Titan Petrochemicals Group Ltd is an operator of oil & chemical
storage and shipyard businesses in China, together with bunkering
operations in Singapore, and floating oil storage in Malaysia.  It
was listed on the Hong Kong Stock Exchange in May 2002.


XINHUA SPORTS: Gets Min. Bid Price Non-Compliance Note from NASDAQ
------------------------------------------------------------------
Xinhua Sports & Entertainment Limited disclosed that, on August 5,
2010, the Company was notified by the Staff of The NASDAQ Stock
Market LLC that it has not regained compliance with the minimum
$1.00 bid price requirement set forth in Listing Rule 5450(a)(1).
As a result, the Company's ADSs would be subject to delisting from
The NASDAQ Global Market unless the Company requests a hearing
before a NASDAQ Listing Qualifications Panel.  The Company intends
to timely request a hearing before the Panel.  Accordingly, the
Company's securities will remain listed until the Panel issues its
decision following the hearing. At the hearing, the Company will
present its plan to regain compliance.

Under NASDAQ's Listing Rules, the Panel may, in its discretion,
grant the Company a further extension of time to regain compliance
up to a maximum of 180 calendar days from the date of the Staff's
delisting determination with respect to the minimum bid price
requirement. However, there can be no assurance that the Panel
will grant any such extension.

                          About XSEL

Headquartered in Beijing, Xinhua Sports & Entertainment Limited is
a leading sports and entertainment media company in China.
Catering to a vast audience of young and upwardly mobile
consumers, XSEL is well-positioned in China with its unique
content and access.  Through its key international partnerships,
XSEL is able to offer its target audience the content they demand
- premium sports and quality entertainment.  Through its Chinese
partnerships, XSEL is able to deliver this content across a broad
range of platforms, including television, the Internet, mobile
phones, cinema, university campuses and other multimedia assets in
China. Along with its in-house advertising resources, XSEL offers
a total solution empowering clients at every stage of the media
process linking advertisers with China's young and upwardly mobile
demographic.

The company's shares are listed on the NASDAQ Global Market.


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


INTELLILOGICAL LIMITED: Members' Final Meeting Set for Sept. 6
--------------------------------------------------------------
Members of Intellilogical Limited will hold their final general
meeting on September 6, 2010, at 10:00 a.m., at Room 1101, 11/F,
China Insurance Group Building, 141 Des Voeux Road Central, in
Hong Kong.

At the meeting, Wong Lung Tak, Patrick, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


KING MASCOT: Members' Final Meeting Set for September 3
-------------------------------------------------------
Members of King Mascot Investment Limited will hold their final
general meeting on September 3, 2010, at 11:00 a.m., at unit 1704,
17th Floor, Podium Plaza, No. 5 Hanoi Road, Tsimshatsui, Kowloon,
in Hong Kong.

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


LU KEE: Creditors' Meeting Set for August 24
--------------------------------------------
Creditors of Lu Kee Electronic Company Limited will hold their
meeting on August 24, 2010, at 2:30 p.m., for the purposes
provided for in Sections 242, 243, 244, 251, 255A(2) and 283 of
the Companies Ordinance.

The meeting will be held at Room 1636, 16/F., One Grand Tower, 639
Nathan Road, Kowloon, in Hong Kong.


OPULENT INDUSTRIAL: Briscoe and Meng Step Down as Liquidators
-------------------------------------------------------------
Stephen Briscoe and Wong Teck Meng stepped down as liquidators of
Opulent Industrial (H.K.) Limited on July 28, 2010.


OXWOOD LIMITED: Creditors' Proofs of Debt Due September 6
---------------------------------------------------------
Oxwood Limited, which is in members' voluntary liquidation,
requires its creditors to file their proofs of debt by
September 6, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on July 23, 2010.

The company's liquidator is:

         Yuen Cheong August
         13A Casas Domingo
         Kam Hang Road
         Kwu Tung, Sheung Shui
         New Territories


RRT ENGINEERING: Creditors' Proofs of Debt Due September 6
----------------------------------------------------------
RRT Engineering Services Philippines Limited, which is in members'
voluntary liquidation, requires its creditors to file their proofs
of debt by September 6, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on July 30, 2010.

The company's liquidators are:

         Lai Kar Yan (Derek)
         Darach Eoghan Haughey
         35th Floor, One Pacific Place
         88 Queensway, Hong Kong


SANYO ELECTRONIC: Members' Final Meeting Set for September 8
------------------------------------------------------------
Members of Sanyo Electronic Components (HK) Limited will hold
their final meeting on September 8, 2010, at 10:00 a.m., at 27/F,
Alexandra House, 18 Chater Road, Central, in Hong Kong.

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


SUMISHO LEASE: Creditors' Proofs of Debt Due September 7
--------------------------------------------------------
Sumisho Lease (Hong Kong) Limited, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by September 7, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on July 30, 2010.

The company's liquidators are:

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


SUNLINK WAVECOM: Creditors' Proofs of Debt Due September 6
----------------------------------------------------------
Sunlink Wavecom Limited, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by September 6, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on July 30, 2010.

The company's liquidators are:

         Stephen Liu Yiu Keung
         David Yen Ching Wai
         62/F., One Island East
         18 Westlands Road
         Island East, Hong Kong


TEAM BRIGHT: Chan Yui Hang Michael Appointed as Liquidator
----------------------------------------------------------
Chan Yui Hang Michael on July 24, 2010, was appointed as
liquidator of Team Bright Corporation Limited.

The liquidator may be reached at:

         Chan Yui Hang Michael
         Room 515, 5/F
         New Mandarin Plaza Tower A
         14 Science Museum Road
         Tsimshatsui East, Kowloon
         Hong Kong


TOPSEAL COMPANY: Creditors' Proofs of Debt Due September 7
----------------------------------------------------------
Topseal Company Limited, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by September 7, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on July 30, 2010.

The company's liquidator is:

         Kong Chi How Johnson
           25th Floor, Wing On Centre
         111 Connaught Road
         Central, Hong Kong


TRI LONG: Members' Final Meeting Set for September 10
-----------------------------------------------------
Members of Tri Long Import & Export Limited will hold their final
general meeting on September 10, 2010, at 10:00 a.m., at 905
Silvercord, Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, in Hong
Kong.

At the meeting, James T. Fulton and Cordelia Tang, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.


WELL EAST: Creditors' Proofs of Debt Due August 27
--------------------------------------------------
Well East Trading Limited, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by August 27, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on July 30, 2010.

The company's liquidators are:

         Stephen Briscoe
         Wong Teck Meng
         602 The Chinese Bank Building
         61-65 Voeux Road
         Central, Hong Kong


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I N D I A
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AIRSERCO PRIVATE: CRISIL Reaffirms 'BB-' Rating on INR72.9M Loans
-----------------------------------------------------------------
CRISIL's ratings on Airserco Private Ltd's bank facilities
continue to reflect Airserco's sub-par financial risk profile
marked by low profitability (because of intense market
competition), and limited ability to pass on impact of increase in
project costs because of the fixed-cost nature of contracts with
its customers.  These rating weaknesses are mitigated by
Airserco's average business risk profile, marked by diversified
revenue profile.

   Facilities                         Ratings
   ----------                         -------
   INR72.9 Million Long-Term Loans    BB-/Negative (Reaffirmed)
   INR70.0 Million Cash Credit        BB-/Negative (Reaffirmed)
   INR20.0 Million Letter of Credit   P4 (Reaffirmed)

Outlook: Negative

CRISIL believes that continuing competitive pressures will result
in Airserco's cash flows remaining under pressure in the medium
term; this may lead to the company refinancing a part of its
upcoming debt-related payments. Airserco is also likely to receive
need-based financial support from the Fedders Lloyd group (of
which Airserco is a part). The rating may be downgraded if there
is a slowdown in Airserco's revenue growth, which would adversely
impact its profitability, the company undertakes larger-than-
expected debt-funded capital expenditure programme, or it delays
in servicing its debt. Conversely, the outlook may be revised to
'Stable' if Airserco scales up its operations, improves its cash
flow, and strengthens its debt protection metrics.

                          About Airserco

Airserco was incorporated in 1965 to provide after-sales
maintenance services for air-conditioners (ACs) sold by its group
company Fedders Lloyd Corporation Ltd. Since 2005-06 (refers to
financial year, April 1 to March 31), Airserco has diversified
into three new segments: undertaking heating, ventilation, air-
conditioning and refrigeration (HVAC) projects for commercial
buildings, shopping malls, and indoor stadiums; installation of
telecommunication towers; and undertaking overhead electrification
(OHE) projects for the Indian Railways.

For 2009-10, Airserco reported (provisional figures) a net profit
of INR20.0 million on net sales of INR1.1 billion, against a net
profit of INR12.0 million on net sales of INR989.4 million for
2008-09.


EVOLUTION EDUCATION: CRISIL Reaffirms 'BB-' Rating on INR140M Loan
------------------------------------------------------------------
CRISIL's rating on the term loans of Evolution Education Society
continue to reflect the society's exposure to risks relating to
the initial phase of operations, and the highly regulated nature
of the education industry.  These rating weaknesses are mitigated
by the growing demand for technical education in the country.

   Facilities                         Ratings
   ----------                         -------
   INR140 Million Term Loan           BB-/Stable (Reaffirmed)

Outlook: Stable

CRISIL expects EES to maintain its moderate business risk profile
on the back of steady growth in revenues over the medium term.
CRISIL believes that the society will not take on incremental debt
and will get funds at regular intervals from its members and
through donations.  The outlook may be revised to 'Positive' if
the society establishes a track record of healthy cash accruals.
Conversely, the outlook may be revised to 'Negative' if the
society takes on more debt or fails to get adequate funds through
donations and from members.

                         About the Society

Ojaswini Samdarshi Nyas, a trust, was formed in 1992 with the
objective of furthering higher education in Madhya Pradesh. The
Ojaswini Group of Institutes was founded in 2001 with the
establishment of Ojaswini Institute Par Excellence. EES is a
newly-formed society of the group.  The EES has set up two
technical education institutions, which became operational from
2008-09 (refers to financial year, April 1 to March 31). The two
institutions, Ojaswini Women Management and Engineering College
(for women), and Infinity Management and Engineering College,
offer degree courses in computer science and engineering,
information technology, electronics and telecommunication, and
civil engineering. The colleges are affiliated to the Rajiv Gandhi
Proudyogiki Vishwavidyalaya, a technical university, and have been
approved by the All India Council for Technical Education, New
Delhi.

For 2009-10, EES reported a net loss of INR9 million on net sales
of INR14 million, as against a net loss of INR7 million on net
sales of INR13 million in the previous year.


GENOM BIOTECH: CRISIL Cuts 'D' Ratings on INR50MM Long-Term Loan
----------------------------------------------------------------
CRISIL has downgraded its ratings on Genom Biotech Pvt Ltd's bank
facilities to 'D/P5' from 'B/Stable/P4'.  The downgrade reflects
the delays in servicing of term loans and export bills being
overdue for more than 30 days.  This is due to Genom's weak
liquidity, caused by stretched receivables.

   Facilities                         Ratings
   ----------                         -------
   INR50.0 Million Long-Term Loan     D (Downgraded from
                                         'B/Stable')
   INR141.5 Million Packing Credit/   P5 (Downgraded from 'P4')
              Post Shipment Credit
   INR60.0 Million Letter of Credit   P5 (Downgraded from 'P4')

The ratings reflect Genom's large working capital requirements and
geographical concentration in revenue profile. These rating
weaknesses are partially offset by the company's established
presence in the pharmaceutical formulations business.

                            About Genom

Genom, promoted by Mr. Binod Kumar, is a manufacturer and exporter
of pharmaceutical formulations.  Exports to Ukraine account for
more than 90 per cent of its revenue.  The company manufactures
tablets, capsules, injectibles, liquids, syrups and ointments for
various therapeutic segments, such as respiratory and anti-
allergy, anti-hypertension, antibacterial, analgesic, anti-
allergics, haematinics and vitamins.  The company has two
manufacturing facilities at Sinnar near Nasik (Maharashtra). Both
units have export-oriented-unit (EOU) status.

Genom reported profit after tax (PAT) of INR195.9 million
(includes foreign exchange gain of INR73.7 million) on net sales
of INR500.5 million for 2008-09 (refers to financial year, April 1
to March 31) against PAT of INR47.7 million on net sales of INR570
million for 2007-08.


GK AUTOWHEELS: CRISIL Reaffirms 'BB-' Rating on INR62.5MM Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of GK Autowheels Pvt Ltd
continue to reflect GK Auto's weak financial risk profile, and
exposure to risks relating to intense competition in the
automobile dealership market.  These weaknesses are partially
offset by the benefits that the company derives from its
promoters' experience in the automobile dealership business.

   Facilities                        Ratings
   ----------                        -------
   INR62.5 Million Cash Credit       BB-/Stable (Reaffirmed)
   INR7.5 Million Letter of Credit   P4+ (Reaffirmed)

Outlook: Stable

CRISIL believes that GK Auto will maintain a moderate business
risk profile over the medium term backed by its established
relationships with principals Piaggio Vehicles Pvt Ltd and Eicher
Motors Ltd, and the promoters' industry experience. The outlook
may be revised to 'Positive' if GK Auto improves its operating
margin substantially.  Conversely, the outlook may be revised to
'Negative' if GK Auto's turnover and margin decline sharply.

The company started dealership of Honda Motorcycles and Scooters
from December 2009.  Moreover, it has set up two new branches in
Chhattisgarh in 2009-10 (refers to financial year, April 1 to
March 31) to increase its rural market penetration.  The company
plans to open 2-3 new branches in 2010-11 and 2011-12 in order to
increase its penetration further at a total estimated capital cost
of INR3 million, which will be funded through internal accruals.

The company's financial performance in 2009-10 is marked by
improved sales in comparison to previous year though the operating
profitability margin was lower on account of more discounts
offered in the first half of 2009-10 to achieve more sales volume.
The company does not intend to undertake any major capital
expenditure over the medium term; hence the gearing is expected to
remain at current levels over the same period.

GK Auto reported a provisional profit after tax (PAT) of INR2
million on net sales of INR264 million for 2009-10, as against a
PAT of INR1 million on net sales of INR177 million for 2008-09.

                         About GK Autowheels

Set up in 1998 as a partnership firm by Mr. Puroshottam Parwani
and his brothers, Mr. Amar Parwani and Mr. Hemant Parwani, GK Auto
(formerly, GK Motors) was converted into a closely held company in
July 2008. GK Auto initially operated as an automobile dealer for
Fiat India; however, this dealership was discontinued in 2008. GK
Auto acquired the dealership of PVPL, EML and Honda Motorcycle &
Scooter India Pvt Ltd in 2004, 2007 and 2009, respectively. The
company has three showrooms in South Chhattisgarh.


HOTHUR ISPAT: CRISIL Reaffirms 'D' Ratings on INR533.3MM LT Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Hothur Ispat Pvt Ltd
continue to reflect the default by HIPL in servicing its term
loan; the default has been caused because of HIPL's weak
liquidity.

   Facilities                              Ratings
   ----------                              -------
   INR533.3 Million Long-Term Loan         D (Reaffirmed)
   INR50.0 Million Cash Credit Limit       D (Reaffirmed)
   INR50.0 Million Letter of Credit Limit  P5 (Reaffirmed)
   INR2.0 Million Bank Guarantee Limit     P5 (Reaffirmed)

HIPL is exposed to risks related to implementation of its ongoing
debt-funded capacity expansion, cyclicality in the iron and steel
industry, and volatility in raw material prices. HIPL,
nevertheless, benefits from its established position in the steel-
related business value chain.

For arriving at the ratings, CRISIL has combined the financials of
HIPL and all its group companies.

                         About Hothur Ispat

HIPL, based in Bellary (Karnataka), has a sponge iron
manufacturing capacity of 60,000 tonnes per annum (tpa), and iron-
ore mines.  It is a closely held family business founded by Mr.
Hothur Mohammed Iqbal.  Currently, the company is in the final
stages of implementing its capacity expansion programme, which
includes setting up a 10-megawatt (MW) power plant, increasing its
sponge iron capacity by 30,000 tpa, connecting the plant with a
water pipeline from Bellary Municipal Corporation, and
constructing a railway siding for loading and unloading
containers.  All these new capacities are expected to become
operational by September 2010.

For 2009-10 (refers to financial year, April 1 to March 31), HIPL,
on a standalone basis, reported a provisional net loss of INR60
million on provisional net sales of INR372 million, against a net
profit of INR7 million on net sales of INR692 million for the
previous year.


JALARAM COTTON: CRISIL Reaffirms 'BB-' Rating on INR73MM Term Loan
------------------------------------------------------------------
CRISIL has reaffirmed its ratings of 'BB-/Stable/P4+' to the bank
facilities of Jalaram Cotton and Proteins Ltd.

   Facilities                           Ratings
   ----------                           -------
   INR200.0 Million Cash Credit Limit   BB-/Stable (Reaffirmed)
   INR73.0 Million Term Loan            BB-/Stable (Reaffirmed)
   INR2.3 Million Overdraft Facility    BB-/Stable (Reaffirmed)
   INR28.0 Million Working Capital      BB-/Stable (Reaffirmed)
                   Demand Loan
   INR26.5 Million Proposed Long Term   BB-/Stable (Reaffirmed)
                             Facility
   INR65.0 Million Foreign Bill         P4+ (Reaffirmed)
                    Discounting
   INR5.0 Million Inland Letter of      P4+ (Reaffirmed)
                Credit Discounting
   INR0.2 Million Bank Guarantee        P4+ (Reaffirmed)

The rating continues to reflect JCPL's exposure to risks relating
to stretched financial profile, and to unfavorable changes in
regulatory policies.  These weaknesses are, however, partially
offset by the benefits that the company derives from forward
integration in its operations.

Outlook: Stable

CRISIL believes that JCPL will sustain its financial risk profile
over the medium term supported by operational benefits derived
through the forward integration of its operations.  The outlook
may be revised to 'Positive', if the company is able to increase
it scale of operations and improve its debt protection measures.
Conversely, the outlook may be revised to 'Negative', if the
company's financial risk profile deteriorates, owing to large
borrowings to meet increased working capital requirements, or if
there are unfavorable changes in regulatory policies.

Update

JCPL's turnover is estimated to have increased by 24 per cent on a
year on year basis to over INR2 billion by the end of 2009-10
(refers to financial year, April 1 to March 31).  This increase
was primarily driven by higher revenue from ginning and pressing
of cotton with the refined oil sales staying around 2008-09
levels. During 2009-10, company has contracted a new term loan of
around INR 25 million as reimbursement of capital expenditure
(capex) undertaken in 2008-09 for increase in installed
capacities.  The company's cash credit limit utilization also
increased by more than INR50 million due to increased working
capital requirements.  Despite such increase in debt, an equity
infusion of around INR25 million has resulted in the company's
gearing at an estimated 2.8 times at the end of 2009-10, similar
to a year ago.  The Company's debt protection measures in net cash
accruals to total debt (NCATD) and interest coverage too have
remained at 5% and 1.4 times respectively during 2009-10.

CRISIL believes that JCPL will sustain its financial risk profile
over the medium term.

                       About Jalaram Cotton

Set up in 2007, JCPL (formerly, Jalaram Cottex) became a limited
company in August 2008.  It undertakes cotton ginning and
pressing, and manufactures refined cotton seed oil. JCPL reported
a profit after tax (PAT) of INR5.3 million on net sales of
INR1690.9 million for 2008-09 (refers to financial year, April 1
to March 31), as against a PAT of INR1.8 million on net sales of
INR1442.1 million for 2007-08.


KALPANA FORGINGS: CRISIL Reaffirms 'BB+' Rating on INR82MM LT Loan
------------------------------------------------------------------
CRISIL's rating on the bank facilities of Kalpana Forgings Ltd
continues to reflect KFL's small scale of operations, low
profitability, and working-capital-intensive operations.  These
rating weaknesses are mitigated by KFL's promoter's industry
experience, its longstanding relationships with customers (most of
whom are Tier I automotive component manufacturers), regular
rental income from long-term lease contracts with lessees, and its
healthy financial risk profile.

   Facilities                            Ratings
   ----------                            -------
   INR82.0 Million Long-Term Loan        BB+/Stable (Reaffirmed)
   INR45.0 Million Cash Credit Limits    BB+/Stable (Reaffirmed)
   INR23.0 Million Proposed Fund-Based   BB+/Stable (Reaffirmed)
                                Limits
Outlook: Stable

CRISIL believes that KFL will maintain its moderate business risk
profile, supported by steady growth in revenues.  The outlook may
be revised to 'Positive' if KFL improves its financial risk
profile by improving its operating profitability.  Conversely, the
outlook may be revised to 'Negative' if KFL's operating
profitability comes under increased pressure because of
intensifying market competition or decline in lease income, or if
the company undertakes larger-than-expected debt-funded capital
expenditure programme.

                       About Kalpana Forgings

KFL was incorporated in 1995.  Its managing director is Mr. B S
Sharma.  The company is in the business of hot-forging automobile
parts.  It has a strong clientele including Hitech Gears Ltd and
Shivam Autotech Ltd.  KFL has long-term lease rental agreements
with INOX Leisure Ltd and Classee (furniture showroom).  The
company leases out its commercial real estate properties (which it
acquired through debt-funding); lease rentals from these
properties help the company meet its regular term loan
obligations.

For 2009-10 (refers to financial year, April 1 to March 31), KFL
reported a profit after tax (PAT) of INR14 million on net sales of
INR285 million, against a PAT of INR21 million on net sales of
INR196 million for the previous year.


KAPIL PLASTIC: CRISIL Assigns 'D' Rating on INR4.0MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to Kapil Plastic
Industries' bank facilities.  The ratings reflect the delay by KPI
in servicing its term loan; the delay has been caused by KPI's
weak liquidity.

   Facilities                           Ratings
   ----------                           -------
   INR25.0 Million Cash Credit Limit    D (Assigned)
   INR4.0 Million Term Loan             D (Assigned)
   INR11.2 Million Proposed Long-Term   D (Assigned)
                   Bank Loan Facility
   INR10.0 Million Letter of Credit     P5 (Assigned)
   INR25.0 Million Bank Guarantee       P5 (Assigned)

KPI has small scale of operations in fragmented power and cable
industry.  It has a weak financial risk profile, marked by high
gearing and below-average debt protection metrics. KPI, however,
benefits from its long track record of operations in power and
cable industry.

                        About Kapil Plastic

Set up in 1991 by the late Mr. Pati Ram Singhal, KPI manufactures
wires and cables.  The firm manufactures wires with diameters of
2.50 millimeters to 25 millimeters, and currently has capacity to
manufacture around 150 kilometers of wires and cables per month.

Till 2001, Mr. Pati Ram Singhal's son-in-law, Mr. Rupesh Kumar,
managed the business and the manufacturing facility was located in
Delhi.  In 2001, because of operational inefficiencies, Mr. Pati
Ram Singhal's son, Mr. Jai Bhagwan Singhal, took over the
management and was admitted as a partner; also, the manufacturing
facility was shifted to Bahadurgarh (Haryana). In November 2009,
Mr. Jai Bhagwan Singhal's daughter was admitted as a partner.

KPI reported book profit of INR0.2 million on net sales of INR77
million for 2008-09 (refers to financial year, April 1 to
March 31), against a book profit of Rs 2.1 million on net sales of
INR77.3 million for 2007-08.


KIRAN INDUSTRIES: CRISIL Reaffirms 'B' Rating on Long-Term Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kiran Industries Pvt
Ltd continue to reflect KIPL's small scale of operations, and its
average financial risk profile marked by a high gearing, large
working capital requirements, and weak liquidity. KIPL's
contingent liability of INR226 million, following a claim by the
Director General of Central Excise Investigation, could impact its
business operations in case the payment is enforced.  These
weaknesses are partially offset by KIPL's promoters' industry
experience, the company's established position in the textile
business in Surat (Gujarat), and its moderate operational
efficiencies.

   Facilities                            Ratings
   ----------                            -------
   INR47.7 Million Long-Term Loan        B/Negative (Reaffirmed)
   INR107.5 Million Cash Credit Limits   B/Negative (Reaffirmed)
   INR20.0 Million Letter of Credit      P4 (Reaffirmed)
   INR1.0 Million Bank Guarantee         P4 (Reaffirmed)

Outlook: Negative

CRISIL believes that KIPL will maintain its business risk profile
over the medium term on the back of its steady relationships with
customers, primarily traders based in Surat, Varanasi (Uttar
Pradesh), Tirupur (Tamil Nadu), Bhadohi (Uttar Pradesh), and
Bengaluru.  The ratings may be downgraded if the company
undertakes a large, debt-funded capital expenditure programme, or
in case of a sustained decline in its cash accruals.  The ratings
may be downgraded by more than one notch if, in addition to the
above, the company's liquidity deteriorates further, resulting in
delays in debt servicing, or on crystallisation of its contingent
liability.  Conversely, the outlook may be revised to 'Stable' if
KIPL's financial risk profile improves substantially, with steady
improvement in margins, or in case of a favorable decision
regarding its contingent liability.

                       About Kiran Industries

KIPL was promoted in 1986 by the Surat-based Sekhani family,
headed by Mr. Ratan Lal Sekhani, as a private limited company. It
was converted into a public limited company in 1995. In April
2010, it was reconverted into a private limited company. KIPL
manufactures dyed man-made yarn and specialised knitted fabric,
and processes man-made fabric.


MAX HYPERMARKET: CRISIL Reaffirms 'BB' Ratings on Proposed Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Max Hypermarket India
Pvt Ltd continue to reflect Max Hyper's weak financial risk
profile, driven by operating losses; the financial risk profile is
likely to worsen because of the company's ongoing debt-funded
capital expenditure (capex).  This weakness is partially offset by
the strong operational support Max Hyper receives from its
promoters, Mr. and Mrs. Mukesh Jagtiani, who are the founders of
the Landmark group, and the company's moderate operating
efficiency because of its tie-up with the Dutch retail giant SPAR
International.

  Facilities                            Ratings
   ----------                            -------
   INR105 Million Cash Credit Facility   BB/Stable (Reaffirmed)
   INR400 Million Proposed LT Loan       BB/Stable (Reaffirmed)
   INR5 Million Bank Guarantee           P4+ (Reaffirmed)
   INR30 Million Letter of Credit        P4+ (Reaffirmed)

Outlook: stable

CRISIL believes that Max Hyper will maintain its current business
risk profile over the medium term backed by the robust growth
prospects for the retail industry. However, CRISIL also believes
that Max Hyper's financial risk profile will remain weak over the
medium term due to its planned capex and initial losses, though
any shortfall in funding the capex is expected to be met by equity
infusion by the promoters. The outlook could be revised to
'Positive' in case of a faster-than-expected turnaround of Max
Hyper stores, or higher-than-expected equity in the capex funding
mix. Conversely, the outlook could be revised to 'Negative' in
case of a delay in turnaround of Max Hyper stores, or more-than-
expected debt-funded capex.

Summary Update

Max Hyper's revenues for 2009-10 (refers to financial year,
April 1 to March 31) have increased to INR1.48 billion as against
INR1.07 billion in the previous year.  However, the company
continued to report operating losses, in line with CRISIL's
expectations.  At present, Max Hyper operates five SPAR
hypermarkets and supermarkets. Max Hyper plans to further add four
stores during 2010-11, taking the total number of stores to nine
by the end of 2010-11. The company had a term loan of INR50
million as on March 31, 2010.

For 2009-10, Max Hyper posted a net loss of INR279 million on net
sales of INR1.48 billion, against a net loss of INR362 million on
net sales of INR1.08 billion for the preceding year.

                           About Max Hyper

Incorporated in 2004, Max Hyper is part of the Landmark group,
which has business interests in the retail segment in the Middle
East. The company has a licence agreement with SPAR International,
which allows it to use the brand name SPAR. SPAR stores are
targeted at middle-class and upper middle-class households.


PERFECT RADIATORS: CRISIL Reaffirms 'B' Rating on Long Term Loan
----------------------------------------------------------------
CRISIL's ratings on Perfect Radiators & Oil Coolers Pvt Ltd's bank
facilities continue to reflect PROC's exposure to risks relating
to volatile raw material prices, intensifying competition, and
revenue concentration on a single customer, Indian Railways.
These rating weaknesses are mitigated by the company's established
presence in the domestic market for locomotive radiators, and its
adequate operating capabilities.

   Facilities                         Ratings
   ----------                         -------
   INR62.5 Million Long Term Loans    B/Stable (Reaffirmed)
   INR80.0 Million Cash Credit        B/Stable (Reaffirmed)
   INR50.0 Million Letter of Credit   P4 (Reaffirmed)
   INR20.0 Million Bank Guarantee     P4 (Reaffirmed)

Outlook: Stable

CRISIL believes that PROC will gradually improve its business risk
profile. The outlook may be revised to 'Positive' if PROC widens
its customer base, thereby reducing dependence on Indian Railways,
while maintaining a prudent capital structure. Conversely, the
outlook may be revised to 'Negative' if the company faces a
slowdown in revenue growth or undertakes significant debt-funded
capital expenditure.

                          About Perfect Radiators

Incorporated in 1984 and taken over by the Fedders Lloyd group in
2003, PROC makes radiators (both copper-brass and aluminium),
radiator assemblies, and other heat exchangers for locomotive, and
industrial and automotive applications, under the Perfect brand.
PROC is a closely-held company and is a pioneer in India in the
development and manufacture of mechanical bonded radiators for
diesel locomotives.

PROC reported a net profit of INR94.9 million on net sales of
INR1.3 billion in 2009-10 (refers to financial year, April 1 to
March 31, based on provisional financial), up from INR15.2 million
and INR1.1 billion, respectively, in the previous year.


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


BANK DANAMON: 9-Month Net Profit Slumps 23% to IDR1.365 Trillion
----------------------------------------------------------------
The Jakarta Post reports that Bank Danamon reported a 23% decline
in net profit between January and September, mainly due to the
fall in demand for corporate loans.

The report says the bank's net profit during the first nine months
of 2009 reached IDR1.365 trillion (US$145.2 million), IDR398
billion less than last year's IDR1.763 trillion.

According to the report, Danamon president director Sebastian
Paredes said the profit downfall had been greatly affected by the
global economic crisis that had caused companies to significantly
reduce their loans.  Danamon, however, had made positive progress
this year, although not enough to fully recover to its 2008
performance.

Jakarta Post notes the bank's profit during the third quarter of
this year reached IDR495 billion, up by 1% from IDR477 billion the
previous quarter.

Danamon's positive performance in 2009 was significantly helped by
its micro loans, mainly run by its subsidiary company, Adira, that
provides automotive as well as household and electronics loans,
the report adds.

                         About Bank Danamon

Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia
Tbk provides a range of products and services, including
Consumer Banking, Small to Medium-Sized Enterprise and
Commercial, Trade Finance, Treasury Product, Cash Management,
Other Services, Financial Planning and e-Banking.  Danamon
Syariah is the Bank's business unit that provides its customers
with syariah banking products and services.  The bank also
operates Danamon Simpan Pinjam, which caters to micro banking
customers.  DSP is divided into two groups: DSP to serve and
help enterprises in micro and small-scale banking, and DSP for
individual customers with fixed income.  As of December 31, 2009,
the Bank had 82 domestic branches, 1,405 domestic supporting
branches and DSP branches, 11 Sharia branches and one overseas
branch.

                           *     *     *

PT Bank Danamon Indonesia continues to carry Fitch Ratings' BB
Long-term foreign currency Issuer Default Rating, 'B' Short-term
foreign currency IDR and 'C/D' Individual Rating.

Bank Danamon also carries Moody's 'Ba3' Long Term Rating, 'Ba3'
Foreign LT Bank Deposits and 'D' BFSR.

The Troubled Company Reporter-Asia Pacific reported on June 23,
2010, that Moody's Investors Service changed its outlook for the
Ba3 foreign currency long-term deposit ratings of Bank Danamon to
positive from stable.  All other ratings are unaffected.


GARUDA INDONESIA: To Pay US$76MM in Debts to Pertamina over 7years
------------------------------------------------------------------
The Jakarta Post reports that Garuda Indonesia said it had just
completed the restructuring of US$76 million of debts to state oil
and gas company PT Pertamina, in the airline's latest move to help
ease its debt burden.

"Under the restructuring deal, we will start to pay the debts by
installments during the next seven years," Jakarta Post quoted
Garuda finance director Eddy Porwanto as saying.

According to the report, Eddy said the debt originated from the
use of jet fuel or avtur provided by Pertamina for Garuda aircraft
during the 2004-2006 period, mainly for transporting Indonesian
Haj pilgrims to Mecca.

Basuki Trikora Putra, a Pertamina spokesperson, confirmed the debt
restructuring, the report notes.

"We have signed the debt restructuring agreement. Of course we
have a scheme and mechanism on how Garuda will pay the debt in the
next seven years," Mr. Basuki told The Jakarta Post on Monday,
declining however to give more details.

Jakarta Post says the deal came just weeks after Garuda has also
completed a debt restructuring negotiation with its biggest
creditor, the state lender Bank Mandiri.

Garuda owes IDR967 billion in debts to Pertamina up to June 2009.

Garuda received IDR1 trillion from the government in 2006 to help
it keep flying and has been negotiating with bondholders since
2007 over notes that weren't redeemed, according to Bloomberg
News.

                      About Garuda Indonesia

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


INDAH KIAT: JCR Withdraws 'D' Ratings on Various Notes
------------------------------------------------------
Japan Credit Rating Agency Ltd. has withdrawn its ratings on the
various notes issued by Indah Kiat International Finance Company
B.V. and guaranteed by PT Indah Kiat Pulp & Paper Corporation.

                   Amount    Issue       Due
  Issues           (Mil.)    Date        Date       Coupon  Rating
  ------           ------    -----       ----       ------  ------
  Mortgaged Notes  US$200    06/29/1994  06/15/2002 11.875%   D
  Mortgaged Notes  US$150    06/29/1994  06/15/2006 12.5%     D

Asia Pulp and Paper Co., Ltd., a holding company of PT Indah Kiat
Pulp & Paper Corporation which guarantees the above mentioned
notes, announced on March 12, 2001, to immediately suspend
servicing the principal and interest of the debts owed by all of
its subsidiaries and affiliates including the notes' guarantor.
JCR, as a consequence, changed its ratings on the above notes to
"D" on March 13, 2001.

APP, thereafter, negotiated with the group of creditors and agreed
upon the overall debt restructuring as per the terms set out in
the "Master Restructuring Agreement in 2003.  The MRA, with
gaining the consents by approximately 93% of the creditors, became
effective on April 28, 2005.

APP has already reached an in-principle agreement with the rest of
the creditors on the notes to restructure them in line with the
MRA, and is now conducting technical negotiation.  Taking into
account such development, JCR has withdrawn the credit ratings on
the above mentioned notes.


PAKUWON JATI: Moody's Changes Outlook on 'Caa1' Rating to Stable
----------------------------------------------------------------
Moody's Investors Service has revised to stable from negative the
outlook for PT Pakuwon Jati Tbk's Caa1 corporate family rating and
the Caa1 senior secured rating for the US$ senior secured notes
due November 2011 issued by Pakuwon Jati Finance BV, and
guaranteed by Pakuwon and its subsidiary, PT Artisan Wahyu.

At the same time, Moody's has affirmed both the company's Caa1
corporate family rating and senior secured rating.

"The outlook revision follows the improvement in the company's
operating results, which include 53% year-on-year growth in
revenue and 26% year-on-year growth in operating income for 1H
2010," says Kaven Tsang, a Moody's AVP/Analyst, adding, "The
results were supported by higher property sales during the
period."

"Moreover, the stable outlook has considered a reduction in the
development and execution risks associated with the Gandaria City
project, as construction work has been substantially completed,
while its retail mall was opened on August 5," adds Tsang.

"Nevertheless, Pakuwon still needs to ramp up the mall's
operation, and demonstrate its abilities to realize its sales plan
and manage the mall with stable occupancy rates and cash flow
generation," adds Tsang.

The Caa1 ratings further reflect Pakuwon's exposure to a high
level of business volatility in view of the small scale and
concentrated nature of its operations.  It also has potential
refinancing needs in 2011 when US$20 million of the rated secured
notes will mature and IDR90 billion (around US$10 million) of
borrowing from Bank ICBC Indonesia will come due.

While debt leverage has improved -- with adjusted leverage at 52%
as of June 2010 from 57% as of June 2009 -- its Caa1 ratings are
restrained by potential refinancing needs by end-2011 against its
history of distressed debt exchanges in 2009 and debt
restructuring in early 2000s.

Partly mitigating these concerns is the expectation that the
Tunjungan City mall will generate stable and recurring cash flow
of around IDR350 billion (approximately US$38-39 million) per
annum.  Presales of offices and condominiums in Gandaria City are
also on track, and payments are scheduled to be received through
installments in the coming 12-18 months.

Upward rating pressures could emerge if Pakuwon successfully 1)
ramps up the mall in the Gandaria City project, and achieves
stable occupancy rates and cash flow generation, 2) executes its
sales plan, such that EBITDA interest coverage could be sustained
at 2.5-3x and adjusted leverage at 50-55%; and 3) improves its
liquidity with free cash to address its funding and refunding
needs.

The rating would be downgraded if 1) the company's liquidity
weakens due to a substantial decline in sales or failure to meet
the financial covenants test, thereby resulting in accelerated
debt payments, or 2) there is a material depreciation in the
Rupiah, which materially increases the company's debt-servicing
obligations.

The last rating action for Pakuwon was taken on December 7, 2009,
when its senior secured bond rating was upgraded to Caa1 from Ca
and corporate family rating was affirmed at Caa1 upon completion
of the distressed exchange.  Both ratings outlook remained
negative at that time.

Headquartered in Surabaya, Indonesia, Pakuwon is engaged in the
development, management and operation of shopping centers, office
buildings, condominium towers, hotels and residential townships,
mainly in Surabaya, East Java.  The company was listed on the
Jakarta Stock Exchange in 1989.


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


CORSAIR LIMITED: Fitch Downgrades Ratings on Two Notes to 'D'
-------------------------------------------------------------
Fitch Ratings has downgraded both Corsair (Jersey) Limited's
Series 327 and 328 credit-linked notes to 'D'/'RR6' from
'C'/'RR6'.  The full list of rating actions is:

  -- JPY3.1 billion* Series 327 downgraded to 'D' from 'C';
     Recovery Rating of 'RR6';

  -- JPY0.7 billion* Series 328 downgraded to 'D' from 'C';
     Recovery Rating of 'RR6'.

  * as of 6 August 2010

These transactions are managed synthetic corporate CDOs.  The
notes have been partially written down as a result of the
cumulative losses from seven credit events in each reference
portfolio: Freddie Mac, Fannie Mae, Lehman Brothers Holdings Inc.,
Glitnir Banki hf, Kaupthing Banki hf, Syncora Guarantee Inc. and
Ambac Assurance Corporation.  This rating action follows the
receipt of the valuation notices on these credit events.


JAPAN AIRLINES: To Sell Ground Service Units, Nikkei Reports
------------------------------------------------------------
Bloomberg News, citing Nikkei English News, reports that Japan
Airlines Corp. is in final talks to sell JAL Ground Service Kansai
Co. to Konoike Transportation Co. while its Chubu Sky Support Co.
may be purchased by Mitsubishi Corp. or Marubeni Corp.

The Nikkei said the possible transactions are part of Japan
Airlines' bid to save JPY10 billion (US$116 million) in costs this
year from ground service, Bloomberg relates.

                       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, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in New
York (Bankr. S.D.N.Y. Case No. 10-10198).  The Company said debt
is $28 billion.

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


* JAPAN: Corporate Bankruptcies Fall 23.1% in July
--------------------------------------------------
Bloomberg News, citing Tokyo Shoko Research Ltd., reports that
Japan's corporate bankruptcies fell 23.1% in July from a year
earlier to 1,066 cases, capping 12 straight months of declines.


* S&P Puts Ratings on Four Japanese Tranches on Positive Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on four
tranches relating to four Japanese synthetic CDO transactions on
CreditWatch with positive implications.

The four tranches placed on CreditWatch positive had SROC
(synthetic rated overcollateralization) levels that rose above
100% at higher ratings than the current ratings during July's
month-end run.

For the transactions that S&P ran on version 5.1 of its CDO
evaluator, S&P applied the top obligor and industry test SROCs, in
addition to the Monte Carlo default simulation results.

S&P intends to review the tranches listed below that have been
placed on CreditWatch, along with any other tranches with ratings
that are currently on CreditWatch with negative or positive
implications, in accordance with S&P's updated CDO criteria by the
end of this month.

                           Ratings List

                        Silk Road Plus PLC

Series 13 limited recourse secured fixed rate credit-linked notes

             To               From        Issue Amount
             --               ----        ------------
             BB/Watch Pos     BB          S$8.064 mil.

Series 14 limited recourse secured fixed rate credit-linked notes

             To               From        Issue Amount
             --               ----        ------------
             BB/Watch Pos     BB          S$8.5 mil.

Series 15 limited recourse secured fixed-rate credit-linked notes

             To               From        Issue Amount
             --               ----        ------------
             BB/Watch Pos     BB          S$8.0 mil.

Series 16 limited recourse secured fixed-rate credit-linked notes

             To               From        Issue Amount
             --               ----        ------------
             BB/Watch Pos     BB          S$9.0 mil.


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


EVERMASTER GROUP: Abdallah Files Wind-Up Petition Against Unit
--------------------------------------------------------------
Evermaster Wood Products Sdn Bhd, a wholly owned subsidiary of
Evermaster Group Berhad, has been served with a winding up
petition by Abdallah Sayed Ismaeel Co.  The winding up petition
against EWP was presented via Kuala Lumpur High Court on July 12,
2010.

The Company asserts it that EWP did not receive the winding-up
petition.  The company said the winding-up petition came to
Evermaster's knowledge when the advertisement of petition appeared
earing in the New Strait Times newspaper on August 3, 2010.

The Petitioner is alleging that EWP is indebted to the Petitioner
for the sum of MYR1,635,000.00 (equivalent to USD$500,000.00 at
the foreign exchange of USD1 : MYR3.270 as of 20.01.2010) and a
further sum of MYR821,500.00 (equivalent to USD$250,000.00 at the
foreign exchange of USD1 : MYR3.286 as of 11.03.2010) being the
refund of deposit paid by the Petitioner to EWP pursuant to
contract entered by the Petitioner and EWP dated January 14, 2010,
for the purchase of plywood as described in the said contract on
the basis of total failure of consideration.

EWP has dispute on the claim and instructed the solicitor to
strike out the winding up Petition.

                       About Evermaster Group

Evermaster Group Berhad is a Malaysia-based investment holding
company.  Through its subsidiaries, the Company is engaged in
integrated timber activities, which consist of manufacturing and
trading of timber and timber-related products, and general
construction business.  It operates through two segments: timber
and timber related operations, and general constructions.  Its
major subsidiaries include Evermaster Sdn. Bhd., Evermaster Wood
Industries Sdn. Bhd., Evermaster Wood Products Sdn. Bhd. and
Evermaster Development Sdn. Bhd.

Evermaster Group Berhad has been considered as an Affected
Listed Issuer under Practice Note No. 17/2005 of the Bursa
Malaysia Securities Berhad as it has triggered Paragraph 2.1(b)
of the Amended PN17.

A Receiver and Manager has been appointed over the asset of the
Evermaster Group.  The asset accounts for at least 50 percent of
the total assets employed of the listed issuer on a consolidated
basis under the terms of the Debenture dated December 18, 2003
executed between the company and Abrar Discounts Berhad.


KBB RESOURCES: Defaults on MYR20.80 Million Loan Payment
--------------------------------------------------------
KBB Resources Berhad has failed to settle the outstanding amount
totaling MYR20.80 million to Prima Uno Berhad and Malaysia
Trustees Berhad under the primary collateralised loan obligations
transaction facility of MYR20.00 million.

KBB said that the key contributing factor leading to the default
in payment was mainly due to the increase in raw material prices
over the past few financial years.  KBB's cash flow was also
affected by their investment in Indonesia which has yet to yield
any financial returns.

KBB said it had submitted an application to Corporate Debt
Restructuring Committee in respect of the Corporate Debts
Restructuring Scheme.  However, the Company is still in the midst
of preparing the proposed debt restructuring plan and other
documents as required by CDRC.

The Company said it aims to furnish all documents to CDRC by early
August 2010 and to be accepted by CDRC in the end of August 2010.

The default with Prima Uno Berhad and Malaysia Trustees Berhad may
trigger a cross default with the Company's other lenders.

                         About KBB Resources

KBB Resources Berhad is a Malaysia-based investment holding
company. The Company, through its subsidiaries, is engaged in
manufacturing and marketing of all types of rice and sago sticks
(vermicelli), noodles and related products. Its subsidiaries are
Kilang Bihun Bersatu Sdn Bhd, Bersatu Sago Industries Sdn Bhd,
Kilang Bihun Bersatu(East Malaysia) Sdn Bhd, Bersatu (BVI)
Limited, PT BersatuInternational Food Industries, Rasayang Food
Industries Sdn Bhd, Bersatu Noodles Industries Sdn Bhd, Bersatu
Sago Industries (Mukah) Sdn Bhd and Bersatu Biotechnology (Johore)
Sdn Bhd. Operations are carried out in Malaysia and Indonesia.


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


ALLIED FARMERS: Puts NZ$19.3 Million Capital Raising Plan on Hold
-----------------------------------------------------------------
Allied Farmers has put its $19.3 million capital raising on hold
while it talks to the trustee of its subsidiary Allied Nationwide
Finance over a disputed trust deed breach, The New Zealand Herald
reports.

The NZ Herald relates Allied Nationwide, whose deposits are
Government guaranteed until October 12, told the market late on
Friday it had received notice from New Zealand Guardian Trust of a
breach in its ratio of liabilities to tangible assets.

Although the company disagreed with the trustee's view, Allied
Farmers chairman John Loughlin said it had decided to delay its
capital raising while Allied Nationwide provided reassurances to
its trustee, according to the report.

"Our preference is for the prospectus to disclose the very latest
information, and with our trustee having some questions over our
finance subsidiary we feel it is prudent to delay the prospectus."

The report says the prospectus had been due to go out to investors
this week with a one-for-three rights offer.  Mr. Loughlin did not
wish to put a timeframe on the delay but said he expected it to be
short, the report notes.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 9, 2010, The National Business Review said that Allied
Nationwide Finance Ltd suspended its prospectus and is in talks
with its trustee about a disputed breach of its trust deed finance
ratios.  Allied Nationwide on Friday received a notice from
Guardian Trust that it was in breach of one of the financial
ratios and has 14 days to remedy the situation.  The finance
company is covered by the Crown deposit guarantee scheme until
October 12.

                      About Allied Nationwide

Allied Nationwide Finance Ltd. is a New Zealand-based finance and
investment company.  It is wholly owned subsidiary of NZX-listed
Allied Farmers Limited.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
June 9, 2010, Standard & Poor's Ratings Services lowered its long-
term issuer credit rating on New Zealand finance company, Allied
Nationwide Finance Ltd. to 'B' from 'BB-'.  At the same time, the
'B/B' issuer credit ratings were placed on CreditWatch with
negative implications.

"The ratings actions reflect a material deterioration in ANF's
liquidity position beyond what S&P previously expected and
factored into the 'BB-' rating," Standard & Poor's credit analyst
Peter Sikora said.  "In S&P's view, this deterioration has
increased ANF's exposure to a cash shortfall from now until
October 2010 should reinvestment rates weaken from current
already-modest levels or should cash inflows from loan repayments
be delayed beyond S&P's current expectations."


DOMINION FINANCE: Directors to Face Trial Next Month
----------------------------------------------------
The directors of Dominion Finance Group and sister company North
South Finance could be committed to stand trial as early as next
month, if the court determines there is a case to answer, The New
Zealand Herald reports.

Vance Arkinstall, Rick Bettle, Terry and Ann Butler, Paul Forsyth
and Robert Barry Whale are facing criminal charges brought by the
Securities Commission related to offer documents and
advertisements it alleges were misleading, according to the NZ
Herald.

According to the report, the case is due back in the Auckland
District Court on September 8 for a post committal conference,
when the Crown will provide disclosure to the court and the
directors are expected to enter pleas.

It is understood all civil proceedings against the directors have
been stayed while the criminal matters are dealt with, the report
notes.

A Securities Commission spokesperson said if there was nothing
else to consider from the next appearance, then a trial date could
be set.

                      About Dominion Finance

Based in Auckland, New Zealand, Dominion Finance Holdings
Limited (DFH:NZX) -- http://www.dominionfinance.co.nz/--engages
in the provision of financial services through the raising of
debenture stock.  The company operates through its wholly owned
subsidiaries Dominion Finance Group Limited and North South
Finance Limited, and investment vehicle Dominion Investment Fund
Limited.  Both Dominion Finance Group Limited and North South
Finance Limited accept debenture stock investments and apply
them (in conjunction with its own funds) towards the provision
of certain loans and other financial accommodation.

                         *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 11, 2008, the company's trustee Perpetual Trust Limited
appointed Rodney Gane Pardington and Barry Phillip Jordan, both
Chartered Accountants of Deloitte, as receivers and managers of
Dominion Finance Holdings' subsidiary Dominion Finance Group
(DFG), rather than allow DFG to put its moratorium proposal to
stockholders for approval.  Dominion Finance Group owes 6,055
debenture holders NZ$224 million.

A TCR-AP report on Oct. 17, 2008, said Dominion Finance Holdings
Limited appointed John Joseph Cregten and Andrew John McKay of
Corporate Finance Limited as the company's voluntary
administrators.  According to The National Business Review:
"Dominion Finance Holding went into voluntary administration after
it was fined NZ$65,000 by NZX Discipline for filing its annual
report late.  At that time, directors said the holding company had
little cash to its own name."

In addition, the TCR-AP on Dec. 3, 2008, reported that the debt
moratorium for Dominion Finance Holding's other subsidiary North
South Finance Ltd was approved by the stockholders on Dec. 2,
2008.


NZ FARMING: Olam May Tap NZFU Shareholders for Additional Capital
-----------------------------------------------------------------
The New Zealand Herald reports that Olam International will look
to tap shareholders to address New Zealand Farming Systems
Uruguay's funding shortfall if the Singapore-based company
succeeds in its takeover bid.

Olam said in its offer document that Farming Systems was
"unrealistic" in setting its operational targets, and needs
significant changes to its strategy.  Farming Systems reliance on
farm sales is "undesirable and unsustainable" as a source of
short-term funding, Olam said.

"It is Olam's view that given NZFSU's performance history and
financial situation, equity is a more appropriate source of
funding as compared to additional debt," the document said.

"Olam believes that NZFSU may need to call on shareholders to
support one or more equity capital raisings."

                         "Don't Sell Option"

Separately, The New Zealand Herald reports that NZ Farming Systems
Uruguay said it disagrees with some assertions made by Olam
International and urged shareholders not to sell their stock
pending the company's response to the takeover, The New Zealand
Herald reports.

"The offer document from Olam contains a number of comments and
assertions with which your board disagrees," the report cited
Farming Systems chairman John Parker in a statement.

According to the report, the company plans to release its target
company statement and independent advisor's report along with its
earnings on August 23.

"In the meantime, we note that the share market has priced NZS
shares at or above the 55 cents offer price since July 26, Parker
said. There is no urgency to accept Olam's offer since it can't
close before September 24 and can be extended at Olam's
discretion," Mr. Parker said.

As reported in the Troubled Company Reporter-Asia Pacific on
July 19, 2010, The National Business Review said Olam
International Ltd. plans to buy PGG Wrightson's stake in NZ
Farming Systems Uruguay Ltd. and has launched a full takeover
offer for the dairy farm developer.  Olam, which owns 18.45% of NZ
Farming Systems already, will pay 55c in its takeover bid after
striking an agreement to buy 28.1 million shares from PGG
Wrightson.  The offer represents a 34% premium on the NZS
share price of 41c prior to the offer being made and values the
company at NZ$134 million.   The offer is subject to Olam
achieving a minimum 50.1% shareholding in NZS and the approval by
the Overseas Investment Office.

NZ Farming had a NZ$45.9 million loss in the year to June 30,
2009, as milk prices fell and it wrote down the value of livestock
and farms.  The loss narrowed to NZ$7 million in the six months
ended Dec. 31, 2009.

                     About NZ Farming Systems

Based in New Zealand, NZ Farming Systems Uruguay Limited (NZE:NZS)
-- http://www.nzfsu.co.nz/-- is engaged in developing and
operating dairy farming activities in Uruguay.  During the fiscal
year ended June 30, 2009 (fiscal 2009), it had 26 milking sheds in
operation.  As of June 30, 2009, the Company's wholly owned
subsidiaries included Gimley S.A., Gabefox S.A., Lembay S.A.,
Ginok S.A., Gabegim S.A. and Dunkit S.A.


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


PHILIPPINE AIRLINES: Loses Contract Breach Case Against Pilot
-------------------------------------------------------------
The Manila Standard Today reports that the Philippine Airlines has
lost a test case against a pilot for breaching contract
obligations, the same charge it is considering against 25 pilots
who walked off their jobs last week without giving notice.

According to the report, the Court of Appeals' Seventh Division
last week denied the airline's petition to reverse a Makati
Court's June 2008 decision to dismiss its complaint for civil
damages against its former pilot, Capt. Antonio Halaguena, on a
technicality.

The Manila Standard recalls that PAL had sought PHP1.2 million
from Capt. Halaguena for allegedly failing to comply with the
terms of a training agreement he had signed with the airline.

But the appellate court noted that the airline filed the suit
seeking payment of the balance on the pilot's training on May 9,
2005, or almost two years after Capt. Halaguena's wife paid the
airline PHP401,480 representing her husband's full monetary
obligations under the training agreement, the report notes.
Associate Justice Normandie Pizarro said that by failing to assert
its rights in time, the airline in effect waived its right to
collect the supposed balance.

PAL hired Capt. Halaguena on March 11, 2002, and offered him
training that all pilots who wished to operate its newer aircraft
must have.  Capt. Halaguena accepted the offer and went under
training until May 19, 2002, and later qualified as captain of an
Airbus A320. But he signed the training agreement containing the
terms and conditions of the training program only on March 22,
2003.

More than one year after completing the training, Capt. Halaguena
failed to report for his flight and reserve pilot assignments and
instead resigned on Oct. 31, 2003, and moved to Vietnam Airlines.

As reported in the Troubled Company Reporter-Asia Pacific on
April 21, 2010, the Manila Bulletin said that the Philippine
Airlines is to spin 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, 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.

The TCR-AP, citing BusinessWorld Online, reported on July 28,
2010, that Philippine Airlines announced a narrower loss for its
fiscal year that ended March 2010 to $14.3 million, from the
previous year's $297.8 million, but warned of still weak demand
for international flights.

                     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.


PHILIPPINE AIRLINES: Flight Attendants' Strike Looms as Talks Fail
------------------------------------------------------------------
Flight attendants of Philippine Airlines moved a step closer to
holding a strike after they and the flag carrier failed to reach
an agreement at the Department of Labor and Employment, the
Philippine Daily Inquirer reports.

The Inquirer relates Andy Ortega, vice president of the Flight
Attendants and Stewards Association of the Philippines, said a
strike became more likely after PAL management insisted that the
attendants' main complaint about retirement age should be
discussed only in the next collective bargaining agreement (CBA)
negotiations.

"The strike option is always there and is, in fact, strengthened
after [Monday's] meeting where nothing happened," the report
quoted Mr. Ortega as saying after the negotiations at the National
Conciliation and Mediation Board.

At the meeting, the Inquirer relates, PAL offered an PHP80-million
package to the flight attendants and stewards to settle their CBA
for 2005 to 2010 but refused to talk about their mandatory
retirement age.

The Inquirer notes that FASAP has opposed PAL's implementation of
a mandatory retirement age of 40 for both male and female flight
attendants, claiming it's "discriminatory."

The report says FASAP is also contesting the "no-motherhood
policy" of PAL, which bars a pregnant flight attendant from
receiving any salary or allowance and travel benefits while she is
on leave.

The Inquirer notes that PAL president Jaime Bautista, however,
said he was hopeful that FASAP would still accept the PHP80-
million package the management offered at the conciliation
meeting.

"PAL is hoping that FASAP will accept our offer. I hope they
understand that PAL lost $320 million or P15 billion these past
two years so the company is having a hard time offering a bigger
(package)," Mr. Bautista was quoted by the Inquirer as saying.

As reported in the Troubled Company Reporter-Asia Pacific on
April 21, 2010, the Manila Bulletin said that the Philippine
Airlines is to spin 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, 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.

The TCR-AP, citing BusinessWorld Online, reported on July 28,
2010, that Philippine Airlines announced a narrower loss for its
fiscal year that ended March 2010 to $14.3 million, from the
previous year's $297.8 million, but warned of still weak demand
for international flights.

                     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.


PHILIPPINE AIRLINES: More Pilots Reportedly Planning to Resign
--------------------------------------------------------------
The Philippine Daily Inquirer reports that many more Philippine
Airlines pilots are preparing to resign in the coming weeks
despite government intervention and management assurance of job
security.

The report relates that a senior member of the airline's Airbus
A320 division, who asked not to be named since he still works for
the company, said PAL pilots had lost faith in PAL management.

"Last week, [PAL president Jaime] Bautista met with all of us and
he promised that none of us would be moved to Air Philippines
anymore," the pilot told the Inquirer.  "We don't believe them
anymore. That's what they told us a month ago before transferring
our colleagues to Air Philippines," he said.

The Inquirer says PAL has pledged not to move any more of its
pilots to Air Philippines, but the management has said it plans to
file criminal and administrative charges against the delinquent
pilots.

"PAL management stands by its statement that there will be no more
transfers. We are hoping that this will assuage our current roster
of pilots that they will not be transferred," the Inquirer quoted
PAL spokesperson Cielo Villaluna as saying.

"We really need our current crop of pilots. They are just enough
to man our fleet," Ms. Villaluna said, reacting to the pilot's
statements.

As reported in the Troubled Company Reporter-Asia Pacific on
April 21, 2010, the Manila Bulletin said that the Philippine
Airlines is to spin 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, 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.

The TCR-AP, citing BusinessWorld Online, reported on July 28,
2010, that Philippine Airlines announced a narrower loss for its
fiscal year that ended March 2010 to $14.3 million, from the
previous year's $297.8 million, but warned of still weak demand
for international flights.

                     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.


* Fitch Affirms Philippines' Issuer Default Rating at 'BB'
----------------------------------------------------------
Fitch Ratings has affirmed the Philippines' Long-term foreign
currency Issuer Default Rating at 'BB' with a Stable Outlook.  At
the same time, the Long-term local currency IDR is affirmed at
'BB+' with a Stable Outlook.  The agency has also affirmed the
Short-term foreign currency IDR at 'B' and the Country Ceiling at
'BB+'.

"Solid remittance inflows have helped the economy rebound from
2009's mild slowdown, while official reserves are climbing and the
currency has been stable," said Andrew Colquhoun, Head of Asia
Pacific Sovereigns at Fitch.  "While the credit profile has
strengthened in some areas since the ratings were downgraded to
current levels in 2003, Fitch waits for the newly-elected Aquino
administration to deliver on promises to boost the chronically-low
tax take and maintain fiscal discipline in the 2011 budget to
support a case for any positive rating action."

The Philippine economy slowed but avoided recession in 2009
and rebounded to a growth of 7.3% in Q110.  Domestic demand
was supported by remittances, which grew 5.6% in 2009 to
US$17.3 billion (10.7% of GDP), defying the global economic
downturn as the number of overseas workers rose 15% according to
official data.  Remittances underpin a persistent current account
surplus averaging 3.8% of GDP over 2005-2009, with the trade
balance boosted by the Philippines' emergence as a global back-
office process outsourcing centre.  The sustained CAS has driven
the strengthening of the country's external finances; the
Philippines became a net external creditor in 2009 of about 3% of
GDP, turning around from a 40% net external debt ratio at end-
2003.  Official reserves rose to US$48.6bn by end-July 2010, up
9.9% year-to-date.  CPI inflation ran at 3.9% in July 2010 yoy,
which is within the Bangko Sentral ng Pilipinas 's 3.5%-5.5%
target band for FY2010.  The BSP's monetary management has
delivered lower and less volatile inflation than rating peers,
contributing to lower dollarisation (22% against the 'BB' median
54%) and supporting financial stability.  Sustained growth with
low and stable inflation would support the Philippines' ratings at
their current levels.

Public finances remains the Philippines' key rating weakness, with
fiscal revenues of just 14.6% of GDP in 2009, well below the
median of 21% (central government basis) for 'BB' range countries.
The revenue ratio climbed to 15.8% in 2008 in the wake of a
successful tax reform and a 2pp hike in the VAT rate in 2006;
however, revenue erosion in 2009 and 2010 (including a VAT
exemption for senior citizens) has given back those gains.  Though
some higher-rated sovereigns have even lower fiscal revenues (for
example Guatemala 'BB+' on just 11.6%), the Philippines also has
relatively higher government debt at 47% of GDP for the general
government as at end-Q3 2009 (latest available), against the 'BB'
median of 39% at end-2009 (although sharply down from 72% at end-
2003).  In partial mitigation, Fitch notes the sovereign's ongoing
access to domestic and international financing.

Raising the fiscal revenue share would directly address the
Philippines' main rating weakness, while generating resources to
meet President Aquino's campaign pledges to raise public
investment.  President Aquino's strong popular mandate, stemming
from his convincing victory in a broadly fair election,
consolidates an improvement in political stability since the early
2000s.  The Aquino administration has made a crackdown on tax
evasion the centrepiece of its fiscal strategy.  If the new
administration can deliver on its plans to raise the revenue take
while maintaining a broadly disciplined fiscal policy in the
remainder of 2010 and in the 2011 budget plan, it would be
positive for the ratings.  Higher government capital and social
spending, if deployed effectively, could also tackle the
Philippines' rating weakness of underdevelopment as reflected in
low average income (just US$1,750 in 2009) and a low investment
rate, and potentially exert upwards pressure on the ratings in the
medium-term.  However, this would have to be balanced against the
near-term effect on the public finances.


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


AMARU INC: Posts $423,500 Net Loss in Q1 Ended March 31
-------------------------------------------------------
Amaru, Inc., filed its quarterly report on Form 10-Q, reporting a
net loss of US$423,545 on US$5,598 of revenue for the three months
ended March 31, 2010, compared with a net loss of US$645,621 on
US$3,215 of revenue for the same period of 2009.

The Company's balance sheet as of March 31, 2010, showed
US$4,046,523 in total assets, US$3,446,898 in total liabilities,
and stockholders' equity of US$599,625.

The Company has sustained net losses of US$423,545 and US$645,621
for the three months ended March 31, 2010, and March 31, 2009,
respectively.  The Company also has an accumulated deficit of
US$37,687,940 and a working capital deficit of US$2,646,429 at
March 31, 2010.  These raises substantial doubt about the
Company's ability to continue as a going concern, according to the
Form 10-Q.

A full-text copy of the Quarterly Report is available for free at:

               http://researcharchives.com/t/s?6847

Singapore-based Amaru, Inc. is in the business of broadband
entertainment-on-demand, streaming via computers, television sets,
PDAs (Personal Digital Assistant) and the provision of broadband
services.  Its business includes channel and program sponsorship
(advertising and branding); online subscriptions, channel/portal
development (digital programming services); content aggregation
and syndication, broadband consulting services, broadband hosting
and streaming services and E-commerce.  The Company was
incorporated under the laws of the state of Nevada in September
1999.


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


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


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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