TCRAP_Public/100916.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

          Thursday, September 16, 2010, Vol. 13, No. 183

                            Headlines



A U S T R A L I A

CHALLENGER FINANCIAL: Plans to Unfreeze Mortgage Trust
DOCUMENT PRINTING: Enters Into Liquidation; Owes Over AU$5 Million
RELIANCE RAIL: Moody's Downgrades Senior Debt Ratings to 'Ba3'


H O N G  K O N G

BANDRIDGE HK: Members' Final Meeting Set for October 11
BANDRIDGE INTERNATIONAL: Members' Final Meeting Set for October 11
CHEERFUL WORLD: Members' and Creditors Meetings Set for Oct. 14
CHEER SUNSHINE: Sung Mi Yin Steps Down as Liquidator
CHEUNG SHING: Members' and Creditors Meetings Set for Oct. 14

CHINA UNITED: Creditors' Proofs of Debt Due October 11
CHUNG KIU: Members' Final Meeting Set for October 11
CORNHILL DEVELOPMENT: Annual Meetings Set for September 29
EAST GLORY: Annual Meetings Set for September 29
ENVOCIS TECHNOLOGY: Members' Final Meeting Set for October 11

EXPRESS BUILDERS: Members' and Creditors Meetings Set for Sept. 21
FORTUNE ALPHA: Members' Final Meeting Set for October 12
HARBOUR ORIGIN: Members' Final Meeting Set for October 13
INNOVATIONS WORLDWIDE: Final Meetings Set for October 13
JUNE AGENTS: Members' and Creditors Meetings Set for October 8

KENLEX ELECTRONICS: Final Meetings Slated for October 14
KENLEX INDUSTRIAL: Members' and Creditors Meetings Set for Oct. 14
KENLEX TECHNOLOGY: Members' and Creditors Meetings Set for Oct. 14
KOMATSU HUANAN: Members' Final Meeting Set for October 13
KWOK'S INDUSTRIAL: Final Meetings Slated for October 14

LUCKY GROUP: Annual Meetings Set for September 29
MALABAR (HK): Commences Wind-Up Proceedings
MEDIA INTERNATIONAL: Placed Under Voluntary Wind-Up Proceedings
MIDTOWN HOLDINGS: Members' and Creditors Meetings Set for Oct. 8
MONTEDIS INVESTMENT: Leung and Leong Step Down as Liquidators

RKI FINANCE: S&P Assigns 'BB-' Rating on Proposed Senior Notes
RKI FINANCE: Moody's Assigns 'Ba3' Rating on Proposed Bonds


I N D I A

AIR INDIA: To Seek Cabinet Nod to Operationalize SBUs
APOLLO COMPUTING: CRISIL Assigns 'D' Rating to INR15.5MM Term Loan
AURA PAPER: CRISIL Cuts Rating on INR150MM Term Loan to 'D'
BANSAL SPINNING: CRISIL Assigns 'BB' Rating to INR160M Cash Credit
BUNDELA BANDHU: CRISIL Places 'B+' Rating on INR30MM Cash Credit

CAPITAL POWER: Fitch Affirms National Long-Term Rating at 'BB'
HARIHARAN SPINNERS: CRISIL Assigns 'B+' Rating to INR149.8MM Loan
LAKSHMAN & COMPANY: CRISIL Reaffirms 'BB-' Ratings on Bank Debts
METAFLUX COMPANY: CRISIL Assigns 'BB+' Rating to INR45MM Credit
PACIFICA HOTELS: CRISIL Reaffirms 'BB' Rating on INR650M Term Loan

PIONEER NF: CRISIL Assigns 'B' Ratings to Various Bank Debts
POPATLAL NATHALAL: CRISIL Puts 'P4' Ratings on Various Bank Debts
SARBAT COTFAB: CRISIL Reaffirms 'D' Rating on INR226MM Term Loan
SHEKAR LOGISTICS: CRISIL Reaffirms 'BB' Rating on INR75MM Credit
SHREE GHANSHYAM: CRISIL Assigns 'D' Ratings to Various Bank Debts

SHREE RAM: CRISIL Assigns 'D' Rating to INR20.9MM Term Loan
UJALA PUMPS: CRISIL Assigns 'B' Rating to INR210MM Cash Credit
WEARIT GLOBAL: Fitch Assigns National Long-Term Rating at 'B-'


J A P A N

INCUBATOR BANK: Sets Two-Day Depositors and Creditors Meetings
JLOC XXX: S&P Puts Note Ratings on CreditWatch Negative
SHINSEI BANK: S&P Downgrades Ratings on Securities to 'B-'


K O R E A

HANA BANK: Fitch Downgrades Ratings on Securities to 'BB+'
* SOUTH KOREA: KOSPI and KOSDAQ Delist 80 Firms in 2010


N E W  Z E A L A N D

BRIDGECORP LTD: Repayment Date for Investors Still Uncertain
FELTEX CARPET: Liquidator Will Pursue Case Against Ex-Directors
MUTUAL FINANCE: Government to Start Paying Investors


P H I L I P P I N E S

PHILIPPINE AIRLINES: Files Suit Against 16 Pilots for Abandonment


T A I W A N

TAIWAN COOPERATIVE: Moody's Withdraws 'D' Bank Strength Rating




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A U S T R A L I A
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CHALLENGER FINANCIAL: Plans to Unfreeze Mortgage Trust
------------------------------------------------------
The Challenger Financial Services Group will reopen its Howard
Mortgage Trust and "recommence commercial lending" through a
restructuring scheme, the International Business Times reports.

According to the report, the proposed restructuring of at least
AU$500 million of the fund will allow small investors to withdraw
100 percent of their funds if their balance is AU$10,000 or less.
Small investors comprise about 40 percent of the fund's 80,000
investor base, the report says.

The report relates that the unfreezing of the fund to small
businessmen is expected to release about AU$150 million in funds.

Under the proposed restructuring, IBT relates, Challenger will
remove the current five percent quarterly cap on redemption
requests.  As a result, investors will be allowed to withdraw part
or all of their invested money, subject to available liquidity
reserves, which are believed to be at least AU$500 million.

In October 2008, Challenger Financial became the first major
mortgage fund manager to freeze withdrawals following a run on
redemptions, which was fueled by a government pledge to guarantee
bank deposits amid the financial market turmoil.

                    About Challenger Financial

Challenger Financial Services Group Limited (ASX: CGF) --
http://www.challenger.com.au-- is a financial services
company.  The company, along with its subsidiaries, is
principally engaged in the provision of financial services, in
particular mortgage management, which involves commercial and
residential lending and securitization business; funds
management, which funds management business; asset management,
which structures and manages assets to generate long term income
streams, and financial planning, which involves financial
planning and funds administration business.  In September 2007,
the company acquired Choice Aggregation Services, including
Choice Home Loans, a mortgage aggregator/broker in the
Australian market.  Challenger has also acquired a 19% stake in
FAST, a national mortgage aggregator headquartered in Western
Australia.


DOCUMENT PRINTING: Enters Into Liquidation; Owes Over AU$5 Million
------------------------------------------------------------------
Document Printing Australia Pty Ltd. has entered liquidation with
debts totaling more than AU$5 million, Daniel Fitzgerald at
ProPrint reports.

ProPrint says DPA appointed liquidators Cor Cordis on August 31,
2010, following the acquisition of its assets -- including staff,
equipment and client lists -- by Melbourne printer On Demand
Printing.

According to the report, the creditors list shows debts totaling
more than AU$5 million, including AU$921,000 owed to the
Australian Taxation Office, as well as a AU$656,000 debt to Fuji
Xerox Australia.

ProPrint relates Alan Ferguson from ASF Printing, which is listed
as being owed more than AU$176,000, said he was "pretty
disappointed" with DPA's directors.  Mr. Ferguson said ASF had
worked with DPA since 2007, but he began distancing his company
earlier this year when it became clear DPA was in financial
trouble, the report adds.

On Demand owner Bruce Peddlesden told ProPrint that the
acquisition of DPA was unaffected by the liquidation.

Document Printing Australia Pty Ltd. -- http://www.dpa.com.au/--
is a Melbourne-based printing company.


RELIANCE RAIL: Moody's Downgrades Senior Debt Ratings to 'Ba3'
--------------------------------------------------------------
Moody's has downgraded Reliance Rail Finance Pty Ltd's senior debt
ratings to Ba3 from Ba1 and its subordinate debt ratings to B2
from Ba3.  The rating outlook is negative.  This concludes the
rating review commenced in July 2010, which was triggered by RRF's
receipt of a reservation of rights notice from its banks.

                        Ratings Rationale

"The downgrade reflects Moody's continued concerns surrounding the
potential for funding gap in February 2012, following the notice
from RRF's banks received in late June 2010 that they are
reserving their rights in respect of the bank facility required to
complete the delivery phase of the Waratah project", says Paul
Ovnerud-Potter, a Moody's Vice President and Senior Credit
Officer.

"The rating downgrade also considers the risk that the bank and
potentially other debt - would likely be re-priced at a level that
will substantially pressure RRF's financial profile", Ovnerud-
Potter adds.

"RRF remains exposed to the financial profile of its two monoline
insurers, both of which continue to exhibit a weak credit
profile", Ovnerud-Potter says, adding that "RRF could be exposed
to a potential funding gap from early 2012 if both Syncora
Guarantee Inc. (rated Ca, developing outlook) and FGIC UK Limited
(unrated) were to become insolvent".

"We see a degree of credit linkage between RRF and the monoline
wrappers given that their insolvency would give the banks the
right to cancel their funding commitment, if a majority of the
banks decided to take that action", Ovnerud-Potter said, adding
"In Moody's view, the issue of the reservation of rights letter
from the banks, related to the financial position of Syncora
Guarantee, suggests that RRF's banks may be considering the
circumstances in which they could cancel the bank facility."

"The negative outlook reflects Moody's view that the uncertainty
over RRF's credit profile will likely become much more heightened
as the project draws closer to February 2012.  Despite Syncora
recently completing a remediation plan and re-commencing claims
payments, the financial profile of RRF's monoline insurers remains
very weak.  RRF's high financial leverage and its reliance on the
bank facility to complete the delivery phase of the project mean
that it has limited flexibility to overcome these potential
liquidity challenges."

"These problems are compounded by a complex contractual structure,
an exposure to future refinancing risk from 2015 onwards, and an
already delayed delivery schedule, all of which combine to
constrain the rating."

Moody's notes that Reliance Rail maintains that the banks'
reservation of rights letter itself does not assert an actual
default or represent a step towards the exercise of enforcement or
termination rights.  Reliance Rail has also stated, based on
advice it has taken, that it believes that the banks have no
current rights to cancel the facility, particularly since Syncora
has re-commenced paying claims following the lifting of the 1310
Order.

Delivery phase progress continues to be made on the revised
program.  Practical completion has been achieved for the Auburn
maintenance facility and the two required training simulators.  In
addition, Moody's understands that successful testing of a pre-
production test vehicle has occurred and the commencement of
track-testing of the first train is underway.  Progress continues
to be made on subsequent train sets.  Moody's will look for
evidence of delivery of completed train sets on the already
revised delivery schedule.

The ratings will be downgraded 1) in the event of insolvency of
one or both of FGIC and Syncora, 2) in the absence of a solution
to this potential funding gap - given the very weak credit profile
of the monoline insurers, or 3) if any re-pricing of debt
pressures RRF's debt service coverage metrics, or 4) if the banks
provide a more explicit indication that they will likely cancel
the A$357 million facility.

Furthermore, the ratings may also be downgraded if there is
evidence of further delays in the delivery phase; or if there is
deterioration in the credit quality of Downer EDI, Hitachi or the
State.

Moody's does not expect the underlying ratings to transition
upwards during the remaining delivery phase unless the company can
overcome both its immediate and longer term funding challenges,
subject also to favorable delivery-phase and operational
performance.

Reliance Rail Finance Pty Ltd is the funding vehicle for the
Reliance Rail Group.  Reliance Rail was the successful consortium
appointed by Railcorp in 2006 to deliver the NSW Rolling Stock
public private partnership project.  Reliance Rail is in the
process of manufacturing 78 eight-car "Waratah" trains for the
Sydney suburban rail network and has completed an associated
maintenance facility.  Reliance Rail will also maintain the trains
and the maintenance facility from completion until 2043.

                      Regulatory Disclosures

Information sources used to prepare the credit rating are these:
parties involved in the ratings, parties not involved in the
ratings, public information, confidential and proprietary Moody's
Investors Service's information.

Moody's Investors Service considers the quality of information
available on the issuer or obligation satisfactory for the
purposes of maintaining a credit rating.

MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources.  However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.


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H O N G  K O N G
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BANDRIDGE HK: Members' Final Meeting Set for October 11
-------------------------------------------------------
Members of Bandridge Hong Kong Limited will hold their final
meeting on October 11, 2010, at 10:00 a.m., at Lammenschansweg
130c, 2321 JX Leiden, in The Netherlands.

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


BANDRIDGE INTERNATIONAL: Members' Final Meeting Set for October 11
------------------------------------------------------------------
Members of Bandridge International Asia Limited will hold their
final meeting on October 11, 2010, at 10:00 a.m., at
Lammenschansweg 130c, 2321 JX Leiden, in The Netherlands.

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


CHEERFUL WORLD: Members' and Creditors Meetings Set for Oct. 14
---------------------------------------------------------------
Members and creditors of Cheerful World Garment Limited will hold
their final meetings on October 14, 2010, at 10:00 a.m., and 10:30
a.m., respectively at Unit A, 14/F., JCG Building, 16 Mongkok
Road, Mongkok, Kowloon, in Hong Kong.

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


CHEER SUNSHINE: Sung Mi Yin Steps Down as Liquidator
----------------------------------------------------
Sung Mi Yin stepped down as liquidator of Cheer Sunshine Limited
on September 10, 2010.


CHEUNG SHING: Members' and Creditors Meetings Set for Oct. 14
-------------------------------------------------------------
Members and creditors of Cheung Shing Engineering Limited will
hold their final meetings on October 14, 2010, at 11:00 a.m., and
11:30 a.m., respectively at Unit A, 14/F., JCG Building, 16
Mongkok Road, Mongkok, Kowloon, in Hong Kong.

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


CHINA UNITED: Creditors' Proofs of Debt Due October 11
------------------------------------------------------
Creditors of China United Telecommunications Corp (HK) Limited,
which is in members' voluntary liquidation, are required to file
their proofs of debt by October 11, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on August 31, 2010.

The company's liquidators are:

         Lau Hin Chi
         19th Floor, Cameron Commercial Centre
         468 Hennessy Road
         Causeway Bay, Hong Kong

         Li Qiuhong
         Flat E, 31st Floor
         Tower 2, Harbour Place
         No. 8 Oi King Street
         Kowloon, Hong Kong.


CHUNG KIU: Members' Final Meeting Set for October 11
----------------------------------------------------
Members of Chung Kiu Telecommunications (China) Limited will hold
their final general meeting on October 11, 2010, at 10:00 a.m., at
Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong.

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


CORNHILL DEVELOPMENT: Annual Meetings Set for September 29
----------------------------------------------------------
Members and creditors of Cornhill Development Limited will hold
their annual meetings on September 29, 2010, at 11:00 a.m., and
11:15 a.m., respectively at 62/F, One Island East, 18 Westlands
Road, Island East, in Hong Kong.

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


EAST GLORY: Annual Meetings Set for September 29
------------------------------------------------
Members and creditors of East Glory Development Limited will hold
their annual meetings on September 29, 2010, at 11:45 a.m., and
12:00 p.m., respectively at 62/F, One Island East, 18 Westlands
Road, Island East, in Hong Kong.

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


ENVOCIS TECHNOLOGY: Members' Final Meeting Set for October 11
-------------------------------------------------------------
Members of Envocis Technology Limited will hold their final
general meeting on October 11, 2010, at 10:00 a.m., at 43/F., The
Lee Gardens, 33 Hysan Avenue, Causeway Bay, in Hong Kong.

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


EXPRESS BUILDERS: Members' and Creditors Meetings Set for Sept. 21
------------------------------------------------------------------
Members and creditors of The Express Builders Company Limited will
hold their annual meetings on September 21, 2010, at 10:30 a.m.,
and 11:00 a.m., respectively at 602 The Chinese Bank Building, 61-
65 Des Voeux Road, Central, in Hong Kong.

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


FORTUNE ALPHA: Members' Final Meeting Set for October 12
--------------------------------------------------------
Members of Fortune Alpha Engineering Limited will hold their final
meeting on October 12, 2010, at 10:00 a.m., at Rm. 1501, 15/F.,
Wanchai Com'l Centre, 194-204 Johnston Rd., in Hong Kong.

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


HARBOUR ORIGIN: Members' Final Meeting Set for October 13
---------------------------------------------------------
Members of Harbour Origin Limited will hold their final meeting on
October 13, 2010, at 2:00 p.m., at 26/F, Chong Hing Bank Centre,
24 Des Voeux Road Central, in Hong Kong.

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


INNOVATIONS WORLDWIDE: Final Meetings Set for October 13
--------------------------------------------------------
Contributories and creditors of Innovations Worldwide Limited will
hold their final meetings on October 13, 2010, at 11:00 a.m., and
11:30 a.m., respectively at 602 The Chinese Bank Building, 61-65
Des Voeux Road, Central, in Hong Kong.

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


JUNE AGENTS: Members' and Creditors Meetings Set for October 8
--------------------------------------------------------------
Members and creditors of June Agents Limited will hold their
annual meetings on October 8, 2010, at 4:00 p.m., and 4:30 p.m.,
respectively at Room 1601-02, 16th Floor, One Hysan Avenue,
Causeway Bay, in Hong Kong.

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


KENLEX ELECTRONICS: Final Meetings Slated for October 14
--------------------------------------------------------
Members and creditors of Kenlex Electronics Limited will hold
their final meetings on October 14, 2010, at 5:15 p.m., and 5:45
p.m., respectively at Unit A, 14/F., JCG Building, 16 Mongkok
Road, Mongkok, Kowloon, in Hong Kong.

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


KENLEX INDUSTRIAL: Members' and Creditors Meetings Set for Oct. 14
------------------------------------------------------------------
Members and creditors of Kenlex Industrial Limited will hold their
final meetings on October 14, 2010, at 4:15 p.m., and 4:45 p.m.,
respectively at Unit A, 14/F., JCG Building, 16 Mongkok Road,
Mongkok, Kowloon, in Hong Kong.

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


KENLEX TECHNOLOGY: Members' and Creditors Meetings Set for Oct. 14
------------------------------------------------------------------
Members and creditors of Kenlex Technology Limited will hold their
final meetings on October 14, 2010, at 3:15 p.m., and 3:45 p.m.,
respectively at Unit A, 14/F., JCG Building, 16 Mongkok Road,
Mongkok, Kowloon, in Hong Kong.

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


KOMATSU HUANAN: Members' Final Meeting Set for October 13
---------------------------------------------------------
Members of Komatsu Huanan Limited will hold their final meeting on
October 13, 2010, at 11:30 a.m., at 35th Floor, Once Pacific
Place, 88 Queensway, in Hong Kong.

At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


KWOK'S INDUSTRIAL: Final Meetings Slated for October 14
-------------------------------------------------------
Members and creditors of Kwok's Industrial Limited will hold their
final meetings on October 14, 2010, at 2:15 p.m., and 2:45 p.m.,
respectively at Unit A, 14/F., JCG Building, 16 Mongkok Road,
Mongkok, Kowloon, in Hong Kong.

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


LUCKY GROUP: Annual Meetings Set for September 29
-------------------------------------------------
Members and creditors of Lucky Group Investments Limited will hold
their annual meetings on September 29, 2010, at 12:30 p.m., and
2:00 p.m., respectively at 62/F, One Island East, 18 Westlands
Road, Island East, in Hong Kong.

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


MALABAR (HK): Commences Wind-Up Proceedings
-------------------------------------------
Members of Malabar (HK) Corporation Limited, on September 6, 2010,
passed a resolution to voluntarily wind-up the company's
operations.

The company's liquidators are:

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


MEDIA INTERNATIONAL: Placed Under Voluntary Wind-Up Proceedings
---------------------------------------------------------------
At an extraordinary general meeting held on September 3, 2010,
creditors of Media International Investment Limited resolved to
voluntarily wind up the company's operations.

The company's liquidators are:

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


MIDTOWN HOLDINGS: Members' and Creditors Meetings Set for Oct. 8
----------------------------------------------------------------
Members and creditors of Midtown Holdings Limited will hold their
annual meetings on October 8, 2010, at 5:00 p.m., and 5:30 p.m.,
respectively at Room 1601-02, 16th Floor, One Hysan Avenue,
Causeway Bay, in Hong Kong.

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


MONTEDIS INVESTMENT: Leung and Leong Step Down as Liquidators
-------------------------------------------------------------
Leung Hok Lim and Leong Ting Kwok David stepped down as
liquidators of Montedis Investment Limited on September 6, 2010.


RKI FINANCE: S&P Assigns 'BB-' Rating on Proposed Senior Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB-' issue rating to the proposed issue of fixed-rate senior
unsecured notes.  The notes will be issued by RKI Finance (2010)
Ltd. and guaranteed by Road King Infrastructure Ltd.
(BB-/Stable/--).  The rating is subject to S&P's review of the
final issuance documentation.

In S&P's view, the proposed notes, if successful, will extend
RKI's maturity profile but increase its total interest expenses.
The company intends to use the proposed issue to: (1) finance a
cash tender offer for all or a portion of its outstanding
guaranteed notes due 2011 and outstanding floating rate notes due
2012; (2) refinance other existing debts; and (3) invest in its
property development business.

Although RKI has turned around its property business this year,
S&P believes further improvement in overall profitability is
uncertain in the second half of 2010 due to challenging conditions
in the Chinese real estate market.  As S&P anticipated, RKI's
gross margin rose to about 34% in the first half of 2010 compared
with 12% for full-year 2009.  Contracted property sales declined
6% year-over-year to about Chinese renminbi 2.5 billion in the
first six months of 2010, and S&P expects a similar level of these
sales by the end of this year.  The real estate segment
contributed to the group's income in the first half of 2010
because it had mostly digested the loss-making projects of Sunco
Property Holdings Co. Ltd. and because average selling prices had
increased compared with those in 2009.

The rating on RKI also reflects the company's high exposure to
China's cyclical and competitive property market amid an evolving
regulatory environment.  In addition, its toll-road portfolio has
become more concentrated following the disposal of Jihe
expressway.  These weaknesses are tempered by the company's stable
cash flow from its toll-road operations, the diversity of its
toll-road and property development projects, and its improving
liquidity position.


RKI FINANCE: Moody's Assigns 'Ba3' Rating on Proposed Bonds
-----------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating to the
proposed US$ bonds issued by RKI Finance (2010) Limited and
guaranteed by Road King Infrastructure Limited.

Moody's has also affirmed Road King's Ba3 corporate family rating.
The outlook for both ratings is stable.

                        Ratings Rationale

The proceeds of the proposed bonds will be used to refinance debt
and fund working capital.

"Road King's Ba3 ratings reflect its stable cash flow from its
toll road investment for debt servicing," says Peter Choy, a
Moody's Vice President and Senior Credit Officer, adding that
"though toll road cash flow has declined from previous years, it
is still more than enough to cover total interest payments."

"The Ba3 rating also reflects the company's short track record in
property development," says Choy.  Though Road King's performance
has surpassed its budget, its sales contracted in 1H 2010 are in
line with Moody's expectation.

"The improvement in sales has helped stabilizing the company's
balance sheet and strengthened cash position, providing some
buffer for operating in the volatile Chinese property market --
which also support the ratings," adds Choy.

As of June 30, 2010 Road King had cash on the balance sheet
amounting to HKD3.1 billion, which more than covers the debt
maturing over the next 12 months.  The proposed bonds issuance
will further improve the company's liquidity.

"Road King's cautious land acquisition after taking over Sunco is
also another factor supporting the Ba3 rating," comments Choy.
"However, the scale of the company's property development is small
relative to its Ba3 peers, which constrains the rating."

The stable outlook incorporates Moody's expectation that Road King
will continue to exercise financial discipline with regard to
growth of its property development and toll road acquisitions,
such that its debt to capitalization will hold at 45%-50%.

Upward pressure on ratings over the near term appears unlikely,
given Road King's modest credit metrics and its small scale of
development when compared with other Ba rated property developers.

Downward pressure could emerge if Road King (a) suffers a further
decline in balance sheet liquidity; (b) fails to meet the targets
in its business plan; (c) continues to suffer losses in its
property development portfolio; (d) undertakes aggressive debt-
funded acquisitions; or (e) the performance of its toll roads
deteriorates.

In terms of credit metrics, Moody's would consider as signals for
a downgrade if EBITDA/interest falls below 2.5-3.0x or debt to
total capitalization is above 55-60%.  Furthermore, the ratings
will also experience downward pressure if cash flow from its toll
roads fails to at least cover the company's interest expenses.

The last rating action on Road King was taken on March 23, 2010,
when its rating outlook was changed to stable from negative.

Established in 1994, Road King is a Hong Kong-listed company with
investments in toll roads and property development projects in
China.

                      Regulatory Disclosures

Information sources used to prepare the credit rating are these:
parties involved in the ratings, public information, confidential
and proprietary Moody's Investors Service's information.

Moody's Investors Service considers the quality of information
available on the issuer or obligation satisfactory for the
purposes of assigning a credit rating.

MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources.  However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.


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AIR INDIA: To Seek Cabinet Nod to Operationalize SBUs
-----------------------------------------------------
In its bid to speed up a turnaround, Air India would seek the
approval of the Union Cabinet to operationalize its six Strategic
Business Units (SBUs) when the government considers an equity
infusion of INR1,200 crore into the carrier, The Press Trust of
India reports.

PTI relates that the Civil Aviation Ministry, in a note to the
Cabinet, is likely to seek approval for operationalizing the SBUs
relating to low cost airline, cargo, Maintenance, Repair and
Overhaul (MRO), grounding handling, engineering and related
business so as to enhance the airline's revenues.

According to the news agency, sources said the Cabinet Committee
on Economic Affairs may take up the issue later this month when it
also considers infusion of INR1,200 crore as equity.

In 2007, when the erstwhile Air India and Indian Airlines were
merged into the National Aviation Company of India Ltd. (NACIL),
it was decided that the six SBUs would act as separate profit
centres.

PTI says the NACIL, which wants to review all agreements with its
14 unions, is also likely to seek government's nod to start
re-negotiations with the unions, two of which were de-recognized
following a flash strike in May this year.

                           About Air India

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

                           *     *     *

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

The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15.  The plan includes raising its fleet strength to
as many as 275 planes in five years from 148 now.  Air India
Chairman and Managing Director Arvind Jadhav said the new 100-page
turnaround plan for 2010-14, which ruled out any job cuts or wage
reductions and, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.


APOLLO COMPUTING: CRISIL Assigns 'D' Rating to INR15.5MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to Apollo Computing
Laboratories (P) Ltd's bank facilities.

   Facilities                          Ratings
   ----------                          -------
   INR22.50 Million Cash Credit        D (Assigned)
   INR15.50 Million Term Loan          D (Assigned)
   INR14.00 Million Letter of Credit   P5 (Assigned)
   INR45.00 Million Bank Guarantee     P5 (Assigned)

The ratings reflect the delay by ACL in servicing its term loan
interest; the delay has been caused by ACL's weak liquidity.

ACL has small scale of operations and large working capital
requirements.  The company is also exposed to risks related to
long gestation periods in its tender-based business and segmental
concentration in its revenue profile.  Moreover, ACL's financial
risk profile is expected to deteriorate over the medium term,
because of the proposed large, debt-funded capital expenditure.
However, ACL benefits from its niche product profile, its
established relationships with customers, and from its experienced
management team.

                       About Apollo Computing

ACL, set up in 1992 in Hyderabad by Mr. Jaipal Reddy, manufactures
electronic systems for embedded computing. ACL's products are used
in electronic systems of defense vessels, and other aeronautical
and nautical applications, commonly known as, 'Avionics'.  These
products are customised to meet specific requirements of profile,
interface, and software. ACL's products have been used in Agni-II,
light combat aircrafts (LCAs), torpedoes, and space and remote
sensing equipment used by the Indian armed forces.

ACL reported a provisional profit after tax (PAT) of INR9 million
on net sales of INR145 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR7 million on net
sales of INR93 million for 2008-09.


AURA PAPER: CRISIL Cuts Rating on INR150MM Term Loan to 'D'
-----------------------------------------------------------
CRISIL has downgraded its ratings on Aura Paper Industries (India)
Pvt Ltd's bank facilities to 'D' from 'BB+/Stable'.

   Facilities                       Ratings
   ----------                       -------
   INR150.00 Million Term Loan      D (Downgraded from BB+/Stable)

The downgrade follows the delay by the company in the repayment of
term debt installments of INR2.8 million each in May, June, and
July 2010.  The delay was caused by APIIPL's weak liquidity, which
was a result of delay in the commissioning of the company's
project involving manufacture of insulated kraft paper (IKP) used
in the transformer industry. The company started commercial
production in March 2010, after a delay of almost 17 months from
the initial planned date. The rating also reflects the working
capital intensive operations. These weaknesses are, however,
partially offset by the benefits that Aura Papers derives from the
assured offtake by Vijai Electricals Ltd.

                          About Aura Paper

Incorporated in December 2006 in Hyderabad (Andhra Pradesh),
APIIPL manufactures IKP used in the transformer industry, and has
capacity of 4500 tonnes per annum.  The company started commercial
production in March 2010, after a delay of almost 17 months from
the initial planned date.

APIIPL reported a loss of INR3.3 million on net sales of INR4.1
million for 2009-10 (refers to financial year, April 1 to
March 31).


BANSAL SPINNING: CRISIL Assigns 'BB' Rating to INR160M Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Bansal Spinning Mills Ltd.

   Facilities                            Ratings
   ----------                            -------
   INR160.0 Million Cash Credit          BB/Stable (Assigned)
   INR91.8 Million Term Loan             BB/Stable (Assigned)
   INR120.0 Million Letter of Credit     P4+ (Assigned)
   INR53.0 Million Bank Guarantee        P4+ (Assigned)

The ratings reflect BSML's modest financial risk profile marked by
high gearing and average debt protection metrics, and
vulnerability to volatility in wool prices and foreign exchange
rates.  These rating weaknesses are partially offset by BSML's
promoters' experience in the textile industry, and its good
revenue visibility on the back of a strong order book.

Outlook: Stable

CRISIL believes that BSML's financial risk profile will remain
modest over the medium term, because of its high gearing and weak
liquidity.  The company's business risk profile will be dependent
on a sustained and profitable relationship with key newly acquired
customers in the export markets. However, BSML is expected to
benefit from its sound operating efficiencies drawn from newly
established plant.  The outlook may be revised to 'Positive' in
case of an improvement in BSML's liquidity, mainly through higher
profitability levels.  Conversely, the outlook may be revised to
'Negative' if the company undertakes a larger-than-expected debt-
funded capital expenditure programme, leading to pressure on its
term debt servicing ability.

                        About Bansal Spinning

BSML was promoted by Mr. Sanjay Bansal and his brother Mr. S P
Bansal in 1997 as Bansal Spinning & Weaving Mills Pvt Ltd.  The
company was reconstituted as a public limited company with the
current name in 1998.  BSML traded in cotton, woollen, and other
yarns till 2004, when it also started manufacturing woollen yarn
with a capacity of 2000 spindles at Ludhiana (Punjab).  The
company expanded its capacity to about 7000 spindles in 2006-07
(refers to financial year, April 1 to March 31); it has a current
installed capacity of 12,000 spindles.

BSML reported a profit after tax of INR2.3 million on net sales of
INR445 million for 2008-09, against INR3.4 million and INR291
million, respectively, for 2007-08.


BUNDELA BANDHU: CRISIL Places 'B+' Rating on INR30MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to Bundela Bandhu
Construction Company's bank facilities.

   Facilities                        Ratings
   ----------                        -------
   INR30.0 Million Cash Credit       B+/Stable (Assigned)
   INR30.0 Million Bank Guarantee    P4 (Assigned)

The ratings reflect BBCC's limited financial flexibility, marked
by large working capital requirements, below-average operating
efficiency, and small scale of operations. These rating weaknesses
are partially offset by the benefits that BBCC derives from its
promoters' experience in the civil construction sector.

Outlook: Stable

CRISIL expects Bundela Bandhu Construction Company to sustain its
credit risk profile over the near to medium term backed by
experience of its promoters in the civil construction industry.
The rating outlook may be revised to positive in case of more-
than-expected improvement in the scale of operations and
profitability of the firm leading to higher than expected cash
accruals.  Conversely, the outlook may be revised to negative in
case of lower than expected improvement in cash accruals or in
case the company undertakes more than expected debt funded
capex/aggressive construction jobs leading to deterioration in the
debt protection indicators and liquidity position of the company.

                        About Bundela Bandhu

BBCC was established in 1985 as a partnership concern by Mr. Sujan
Singh Bundela. BBCC is a Class A5 contractor engaged in civil
construction involving earthwork and canal, road, and dam
construction.  The firm is registered with Irrigation Department
of Uttar Pradesh and Madhya Pradesh as well as with Madhya Pradesh
Road Development Corporation Limited (MPRDC) and Water Resources
Department (WRD). BBCC is based in Uttar Pradesh, and Mr. Chandra
Bhushan Bundela (the founder's son) is the managing partner of
BBCC.

BBCC is presently executing a sub-contracted road construction
project by Nagarjuna Construction Company Ltd (rated 'AA-
/Stable/P1+', by CRISIL) and dam construction projects for the
Irrigation Department and WRD in Madhya Pradesh.  The company has
until date successfully executed more than 50 projects in the
civil construction segment.

BBCC reported a profit after tax (PAT) of INR1.4 million on net
sales of INR83.0 million for 2008-09 (refers to financial year,
April 1 to March 31) against a PAT of INR2.6 million on net sales
of INR76.0 million for 2007-08.


CAPITAL POWER: Fitch Affirms National Long-Term Rating at 'BB'
--------------------------------------------------------------
Fitch Ratings has affirmed India's Capital Power Infrastructure
Private Ltd.'s National Long-term rating at 'BB(ind)'.  The agency
has also affirmed the ratings on CPIL's bank loans:

  - INR400 million enhanced fund-based working capital limits
    (enhanced from INR250 million) affirmed at 'BB(ind)/F4(ind)';
    And

  - INR900 million enhanced non-fund based working capital limits
    (enhanced from INR450 million) affirmed at 'BB(ind)/F4(ind)'.

The Outlook is Positive.

This rating action commentary updates the same published on
July 22, 2010.


HARIHARAN SPINNERS: CRISIL Assigns 'B+' Rating to INR149.8MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank
facilities of Hariharan Spinners Ltd.

   Facilities                          Ratings
   ----------                          -------
   INR149.80 Million Long Term Loan    B+/Stable (Assigned)
   INR40.00 Million Cash Credit        B+/Stable (Assigned)
   INR23.00 Million Bank Guarantee     P4 (Assigned)

The ratings reflect HSL's limited track record in operations,
exposure to revenue and supplier concentration risks, and below-
average financial risk profile.  These rating weaknesses are
partially offset by the benefits that HSL derives from its
promoters' experience in the yarn industry.

Outlook: Stable

CRISIL believes that HSL will continue to benefit over the medium
term from its promoters' experience in the yarn industry. The
outlook may be revised to 'Positive' if the company scales up its
operations, or diversifies its customer base, leading to
improvement in its credit risk profile. On the other hand, the
outlook may be revised to 'Negative' if the company undertakes a
large, debt-funded capital expenditure programme, or if
relationships with key customers deteriorate, or revenue and
accruals decline, thereby weakening its credit risk profile.

                       About Hariharan Spinners

HSL, a closely held company, was set up in April 2008 by Mr. A
Senniappan, Mr. A Kandasamy, Mr. T A Thangavelar, Mr. S Murukesan,
Mr. S Shivakumar, and Mr. V Ganesan.  The Erode (Tamil Nadu)-based
company derives more than 90 per cent of its revenue from the sale
of polyester viscose blended yarn, and the remainder from the sale
of polyester yarn and viscose yarn.  HSL has a capacity of 15,120
spindles, of which, more than 90 per cent is utilised.

HSL reported, on a provisional basis, a profit after tax (PAT) of
INR4 million on net sales of INR186.1 million for 2009-10 (refers
to the financial year, April 1 to March 31).  It had reported a
net loss of INR2.2 million on net sales of INR106.6 million for
2008-09.


LAKSHMAN & COMPANY: CRISIL Reaffirms 'BB-' Ratings on Bank Debts
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Lakshman & Company,
which is part of the Lakshman group, continue to reflect the
Lakshman group's modest scale of operations, and exposure to risks
related to volatility in raw material prices and sub-optimal
capacity utilization because of erratic labor supply.  These
weaknesses are partially offset by the benefits that the group
derives from its strong track record in the cashew industry.

   Facilities                          Ratings
   ----------                          -------
   INR30.0 Million Cash Credit         BB-/Stable (Reaffirmed)
   INR2.0 Million Overdraft Facility   BB-/Stable (Reaffirmed)
   INR30.0 Million Pledge Loan         P4+ (Reaffirmed)
   INR90.0 Million Packing Credit      P4+ (Reaffirmed)
   INR40.0 Million Bills Discounting   P4+ (Reaffirmed)
   INR40.0 Million Letter of Credit    P4+ (Reaffirmed)

For arriving at its ratings CRISIL has combined the business and
financial risk profiles of Lakshman, M/s Shyam Cashews, and
M/sAditya Exports.  This is because , the three entities,
collectively referred to as the Lakshman group, are in similar
businesses, have common partners, and are expected to be merged
into a single entity by the end of 2010?11 (refers to financial
year, April1 to March 31).

Outlook: Stable

CRISIL believes that the Lakshman group will maintain its market
position over the medium term. The outlook may be revised to
'Positive' if the group increases its net cash accruals
significantly while maintaining its debt protection indicators.
Conversely, a steep decline in the group's cash accruals or
adverse changes in regulatory environment in countries exporting
raw cashew may result in a revision in the outlook to 'Negative'.

Update

The Lakshman group's sales in absolute terms declined in 2009?10
(refers to financial year, April 1 to March 31) because of
reduction in volumes of cashew nuts sold during the last cashew
season and because of marginal reduction in realisation per unit
of cashew.  This has caused a decline in the group's margins. In
2009-10, the group faced shortage of labour and of processing
capacity, which it rents in addition to its owned capacity.  This
resulted in the group paying increased rents, which has, in turn,
squeezed its margins. The group's recently installed automatic
cashew cutting machines are expected to result in faster
processing, assisting the growth in the group's output for
2010-11.

The Lakshman group reported a profit after tax (PAT) of INR4.7
million on net sales of INR422.8 million for 2009-10, against a
PAT of INR18.3 million on net sales of INR385.0 million for
2008-09.

                           About the Group

Set up in 1965 as a partnership firm by the late Mr. Lakshmanan
Pillai and family, Lakshman imports raw cashew nuts, which it
processes and sells in the Indian and export markets.  The firm
currently has six partners, Ms. B Sathi, Ms. S Prema, Ms. Preethi
Lakshman, Mr. Aditya Lakshman, Mr. Prakash Prabhakar, and Mr.
Prashanth Prabhakar, who are family members of Mr. Lakshmanan
Pillai.  The firm has nine processing units (three in Kerala and
six in Tamil Nadu), with a total capacity of 440 tonnes per month.
The firm is part of the famous K Parameswaran Pillai group of
Kerala, which has been in the cashew processing industry since
1925. M/s Shyam Cashews and M/s Aditya Exports are partnership
firms of the promoters engaged in same activity as Lakshman.


METAFLUX COMPANY: CRISIL Assigns 'BB+' Rating to INR45MM Credit
---------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to Metaflux
Company Pvt Ltd's bank facilities.

   Facilities                      Ratings
   ----------                      -------
   INR45 Million Cash Credit       BB+/Stable (Assigned)
   INR20 Million Long-Term Loan    BB+/Stable (Assigned)
   INR4 Million Bank Guarantee     P4+ (Assigned)
   INR6 Million Letter of Credit   P4+ (Assigned)

The ratings reflect MCPL's small scale of operations, low net
worth, and vulnerability to cyclicality in the steel industry.
These rating weaknesses are partially offset by long standing
experience of MCPL's promoters resulting in established relation
with customers.

Outlook: Stable

CRISIL believes that MCPL will continue to benefit from its
established relationships with customers resulting in repeat
orders, over the medium term. The outlook may be revised to
'Positive' if the company scales up its operations and acquires
new customers simultaneously, thereby sustaining its
profitability.  Conversely, sharp decline in profitability or
deterioration in the financial risk profile on account of larger-
than-expected debt-funded capital expenditure, may lead to the
outlook being revised to 'Negative'.

                       About Metaflux Company

MCPL manufactures continuous casting products, feeding aids, hot
topping system, refractory dressing for ferrous and non-ferrous
foundries and various other products used in steel plant and
foundry industry.  The company has five manufacturing facilities,
one each in Nagpur (Maharashtra), Bhilai (Chhattisgarh),
Ahmedabad, Kolkata and Durgapur (West Bengal).  Out of the five
existing facilties, two facilities (Kolkata and Durgapur) are
rented. The company has also procured a 5-acre land to set up a
new owned facility in Kolkata at a capital expenditure of around
INR17.5 million.  The company is an A1 category contractor and
bids for tenders for the public sector entities, such as, Steel
Authority of India Limited.

MCPL reported a profit after tax (PAT) of INR9.9 million on net
sales of INR318.0 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR7.3 million on net sales
of INR307.1 million for 2008-09.


PACIFICA HOTELS: CRISIL Reaffirms 'BB' Rating on INR650M Term Loan
------------------------------------------------------------------
CRISIL's rating on the term loan of Pacifica Hotels (Ahmedabad
Project) Pvt Ltd continues to reflect Pacifica Hotels' high
revenue concentration being a single location project, limited
track record, significant vulnerability to economic downturns, and
below-average financial risk profile marked by high gearing and
inadequate debt protection metrics.  These weaknesses are
partially offset by Pacifica Hotels' moderate operating
efficiencies derived from its promoters' experience in the
hospitality industry and association with the Marriott brand, and
the low level of competition it faces in the luxury-class hotel
segment in Ahmedabad.

   Facilities                          Ratings
   ----------                          -------
   INR650 Million Term Loan            BB/Stable
   (Enhanced from INR500 Million)

Outlook: Stable

CRISIL believes that Pacifica Hotels' occupancy rates will improve
over the medium term as the operations of the hotel stabilise and
it derives the benefits from its association with the Marriot
brand.  The outlook may be revised to 'Positive' in case of a
substantial increase in the company's occupancy rate and average
room revenue (ARR), resulting in an increase in its cash accruals
and a significant improvement in its financial risk profile.
Conversely, sustained low occupancy rates and ARR, because of
competitive pressures, resulting in deterioration in Pacifica
Hotels' debt repayment capability, may lead to a revision in the
outlook to 'Negative'.

                       About Pacifica Hotels

Pacifica Hotels has constructed a full-service business-cum-luxury
four-star hotel in Ahmedabad.  The hotel was initially planned as
a four-star hotel with 150 rooms, to be managed and branded by the
Marriott group.  However, later it was upgraded to luxury class by
adding 12 suites and three additional rooms, taking the total room
capacity to 165, besides a sewerage treatment plant and spa
facilities.  The objective of this upgrade in facilities and range
of services offered was to position the proposed hotel as the most
luxurious hotel in Ahmedabad, with facilities of international
standards; this led to an increase in the total project cost to
INR1.2 billion from INR880 million. The project has been funded by
term loans of INR650 million from State Bank of India and Tourism
Finance Corporation of India Ltd, and promoter equity of INR550
million. The hotel was commercially launched in February 2010.

The Pacifica group, founded by Mr. Ashok Israni in 1978 and
headquartered in San Diego, California, comprises over 100
different project special-purpose vehicles. The US operations are
looked after by Mr. Ashok Israni and Mr. Deepak Israni, whereas
Mr. Rocky Israni is responsible for the group's Indian operations.


PIONEER NF: CRISIL Assigns 'B' Ratings to Various Bank Debts
------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to Pioneer NF
Forgings India Pvt Ltd's bank facilities.

   Facilities                          Ratings
   ----------                          -------
   INR40.0 Million Cash Credit         B/Stable (Assigned)
   INR34.2 Million Long Term Loan      B/Stable (Assigned)
   INR5.3 Million Proposed Long Term   B/Stable (Assigned)
                  Bank Loan Facility
   INR0.5 Million Bank Guarantee       P4 (Assigned)

The ratings reflect NFL's weak financial risk profile marked by
small net worth and weak debt protection metrics, and small scale
of operations.  These rating weaknesses are partially offset by
NFL's diversified revenue profile and presence in niche non-
ferrous forging components segment.

Outlook: Stable

CRISIL believes that PNFL will maintain its position in the niche
non-ferrous forging components segment, over the medium term,
supported by its diversified revenue profile. The outlook may be
revised to 'Positive' if the company's scale of operations and
profitability increase, resulting in improvement in liquidity.
Conversely, the outlook may be downgraded if the company's
financial risk profile further deteriorates or the company fails
to meet its term loan repayment obligations.

                       About Pioneer NF

PNFL is a private limited company incorporated in 2006. It
manufactures forgings for automotive and automotive ancillary
sector and electro-mechanical equipment.  The company makes small
size non-ferrous forgings varying from 0.3 kilogramme (kg) to 12
kg, mainly from brass, copper and zinc.

PNFL belongs to the Pioneer Asia group which has diversified
businesses, the most prominent of them being textile, gelatine,
and match box.  The company's facilities are in Chennai. Until
2007, PNFL was known as Madras Diet and Snacks as it had acquired
the assets of Madras Diet and Snacks Ltd.

PNFL reported a loss of INR2 million on net sales of INR96 million
for 2009-10 (refers to financial year, April 1 to March 31),
against a loss of INR 3 million on net sales of INR93 million for
2008-09.


POPATLAL NATHALAL: CRISIL Puts 'P4' Ratings on Various Bank Debts
-----------------------------------------------------------------
CRISIL has assigned its 'P4' rating to the bank facilities of
Popatlal Nathalal Shah.

   Facilities                              Ratings
   ----------                              -------
   INR368.0 Million Post Shipment Credit   P4 (Assigned)
   INR73.0 Million Packing Credit          P4 (Assigned)
   INR10.0 Million Proposed Short Term     P4 (Assigned)
                    Bank Loan Facility

The rating reflects PN Shah's exposure to risks relating to modest
financial risk profile and its large working capital requirements.
These rating weaknesses are partially offset by the benefits that
PN Shah derives from its promoters' experience in the polished
diamonds industry and established relationships with its customers
and suppliers.

Set up as a proprietorship concern in 1956 by the late Mr.
Popatlal Nathalal Shah, PN Shah was reconstituted as a partnership
firm in 1990. The firm is managed by Mr. Ajay Shah (Mr. PN Shah's
son), his wife, Mrs. Priti Shah, and their son, Mr. Nirav Shah. It
manufactures and exports polished diamonds. PN Shah has its
manufacturing units in Mumbai and Surat (Gujarat), and its head
office at Opera House, Mumbai.

PN Shah reported a profit after tax (PAT) of INR13.7 million on
net sales of INR1105.1 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR9.2 million on net
sales of INR938.1 million for 2008-09.


SARBAT COTFAB: CRISIL Reaffirms 'D' Rating on INR226MM Term Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sarbat Cotfab Pvt Ltd
continue to reflect delays by SCPL in servicing its term loan; the
delays have been caused by SCPL's weak liquidity.

   Facilities                          Ratings
   ----------                          -------
   INR50.0 Million Cash Credit Limit   D (Reaffirmed)
   INR226.0 Million Term Loan          D (Reaffirmed)
   INR10.0 Million Bank Guarantee      P5 (Reaffirmed)

SCPL has a weak financial risk profile, marked by small net worth,
high gearing, and weak debt protection metrics.  The company is a
small player with limited track record in the cotton yarn
industry. SSPL, however, continues to benefit from its promoter's
industry experience.

Update

SCPL has an installed capacity of five machines with 360 rotors in
each machine.  Till September 2009, only three machines were
installed and two were installed in October 2009. After the
machines became fully operational, SCPL's turnover increased to
around INR360.0 million in 2009-10 (refers to financial year,
April 1 to March 31) from INR72.3 million in 2007-08.  SCPL does
not have sufficient working capital funds to support its
incremental working capital requirements due to increase in its
scale of operations. This has led to short-term cash flow
mismatches for the company; thus, its term loan repayments got
delayed during the 12 months ended August 2010.

SCPL's profit after tax (PAT) and net sales are estimated to be
INR1.8 million and INR360.0 million respectively for 2009-10; it
reported a PAT of INR0.8 million on net sales of INR72.3 million
for 2008-09.

                       About Sarbat Cotfab

Set up in 2006 by Mr. Randhir Singh Mann, SCPL commenced
operations in October 2008. The company manufactures coarse cotton
yarn of counts ranging from 4s to 14s. Its manufacturing unit in
Samana (Punjab) has an installed capacity of 1800 rotors.


SHEKAR LOGISTICS: CRISIL Reaffirms 'BB' Rating on INR75MM Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shekar Logistics Pvt
Ltd continue to reflect SLPL's small scale of operations in the
fragmented and competitive logistics industry, weak financial risk
profile marked by low net worth and high gearing, and large
working capital requirements.  These weaknesses are partially
offset by the benefits that SLPL derives from the experience of
its promoters, and its established relationship with Tata Steel
Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR75.00 Million Cash Credit      BB/Stable (Reaffirmed)
   INR237.30 Million Term Loan       BB/Stable (Reaffirmed)
   INR15.00 Million Bank Guarantee   P4+ ( Reaffirmed)

Outlook: Stable

CRISIL believes that SLPL will maintain its customer relationships
and healthy operating margins.  The outlook may be revised to
'Positive' if the company scales up its operations significantly,
while it maintains current profitability, and strengthens its
capital structure.  Conversely, the outlook may be revised to
'Negative' if any large, debt-funded capital expenditure (capex)
results in deterioration in its capital structure, or if its
profitability declines.

Update

For 2009-10 (refers to financial year, April 1 to March 31),
SLPL's revenue, at about INR580 million, has been better than
expected, driven by substantial offtake by its main customer, TSL.
Given the expected increase in demand for both transportation and
material handling services from TSL, CRISIL expects SLPL's revenue
in 2010-11 to exceed previous expectations. SLPL's operating
profitability is higher than expected at 24 per cent.  This is
partly due to increased usage of owned vehicles, and increased
contribution from the high-margin material handling business,
which contributed 25 per cent to SLPL's revenue in 2009-10, up
from 20 per cent in 2008-09. Given the management's increasing
reliance on owned fleet, and the expected increase in SLPL's
revenues from the material handling business, the company's
profitability is expected to increase further.

Working capital requirements have been high as in the past. Though
accruals improved in 2009-10 against expectations, due to higher
profitability and revenue, the same were deployed for meeting the
higher than expected capex of INR150 million in 2009-10, towards
addition of 30 new vehicles. Working capital requirements have,
therefore, been predominantly debt-funded, as reflected in the
high utilisation of bank limits, at around 98 per cent on average
during the 12 months ended June 30, 2010. Thus, despite the
increase in accruals, the gearing has been marginally high, at
2.76 times.

CRISIL expects SLPL to invest around INR60 million towards
acquisition of new vehicles each year over the near to medium
term. Though this is expected to result in higher profitability y,
CRISIL believes that incremental accruals will be used to fund
capex, resulting in continued high reliance on debt to fund
working capital requirements. SLPL's liquidity may, therefore,
remain stretched and gearing high over the near to medium term.

                       About Shekar Logistics

SLPL is the exclusive transporter for TSL in southern India, and
provides material movement and handling services to all TSL depots
in the region. TSL is the main customer of SLPL, contributing to
around 90% of LPL's turnover. SLPL has 150 owned trailers, and
hires up to 40 trailers more depending on demand. SLPL has six
branches in southern India.


SHREE GHANSHYAM: CRISIL Assigns 'D' Ratings to Various Bank Debts
-----------------------------------------------------------------
CRISIL has assigned its 'D' rating to Shree Ghanshyam Auto Parts
Pvt Ltd's bank facilities.

   Facilities                         Ratings
   ----------                         -------
   INR114.0 Million Cash credit       D (Assigned)
   INR52.7 Million Term Loan          D (Assigned)
   INR40.0 Million Stand by Line      D (Assigned)
                       of Credit

The rating reflects delay by SGAPL in servicing its term loan.
The delay has been caused by SGAPL's weak liquidity, primarily
arising out of low revenues from its new electronic resistance
welded (ERW) tubes manufacturing facility.

SGAPL has a weak financial risk profile.  The company, however,
benefits from its promoters' experience in the automotive
ancillary division and its established relationship with its main
customer, Bajaj Auto Ltd (BAL; rated 'AAA/FAAA/Stable/P1+' by
CRISIL).

                       About Shree Ghanshyam

SGAPL, incorporated in 1995, manufactures automotive components
such as swing arms, floor boards, and ERW tubes, which are mainly
used in two-wheelers and three-wheelers by BAL.

SGAPL was set up by Mr. Krishkant Lakhani (second generation
entrepreneur) and his son Mr. Ketan Lakhani. It has three
manufacturing facilities in Waluj (Maharashtra). It is presently
managed by Mr. Ketan Lakhani.

SGAPL reported a profit after tax (PAT) of INR4.8 million on net
sales of INR427.6 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR14.3 million on net
sales of INR383.9 million for 2008-09.


SHREE RAM: CRISIL Assigns 'D' Rating to INR20.9MM Term Loan
-----------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to Shree Ram Sponge and
Steels Pvt Ltd's bank facilities.

   Facilities                         Ratings
   ----------                         -------
   INR113.00 Million Cash Credit      D (Assigned)
   INR20.90 Million Term Loan         D (Assigned)
   INR15.00 Million Letter of Credit  P5 (Assigned)

The ratings reflect delay by SSSPL in servicing its term loan; the
delay has been caused by SSSPL's weak liquidity.

SSSPL has weak financial risk profile and small scale of
operations, faces intense competition in the fragmented steel long
products industry, and is susceptible to volatility in raw
material prices.  These rating weaknesses are partially offset by
SSSPL's promoters' industry experience, funding support it gets in
the form of equity capital from promoters, and its improving
efficiency of its semi-integrated operations.

                       About Shree Ram Sponge

Set up in 1998 by Mr. Umesh Kumar Sharma, SSSPL (formerly, Shree
Ram Dairy Farm) was into dairy farming till 2000. The company
closed its dairy operations in June 2000 and ventured into
manufacturing steel ingots. Its name was changed to the current
one in the same year. SSSPL has three induction furnaces, with a
total manufacturing capacity of 32,000 tonnes per annum (tpa) for
ingots. In April 2007, SSSPL forward integrated its operations by
setting up an automatic continuous rolling mill with a capacity of
45,000 tpa. SSSPL's unit is located in Rourkela, Orissa.

SSSPL reported a profit after tax (PAT) of INR9.0 million on net
sales of INR1160.8 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR7.8 million on net sales
of INR567.3 million for 2007-08.


UJALA PUMPS: CRISIL Assigns 'B' Rating to INR210MM Cash Credit
--------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of Ujala Pumps Pvt Ltd, which is a part of the Ujala
group.

   Facilities                            Ratings
   ----------                            -------
   INR210.00 Million Cash Credit Limit   B/Stable (Assigned)
   INR120.00 Million Term Loan           B/Stable (Assigned)
   INR120.00 Million Letter of Credit    P4 (Assigned)

The ratings reflect the Ujala group's weak financial risk profile,
marked by a small net worth, high gearing, and below-average debt
protection metrics; large working capital requirements; and
exposure to intense competition and pricing pressures in the
fragmented pump industry.  The Ujala group, however, benefits from
its established distribution network.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Ujala Pumps and Ujala Sales Pvt Ltd.
This is because the two companies, together referred to as the
Ujala group, have common promoters and management, and are in the
same line of business, with strong business and financial
linkages.  Ujala Pumps sells a significant proportion of its
products to Ujala Sales, and has also given a corporate guarantee
of INR35 million for the loans contracted by Ujala Sales.

Outlook: Stable

CRISIL believes that the Ujala group's financial risk profile may
remain constrained by low net worth, high gearing, and weak debt
protection measures over the near to medium term.  The outlook may
be revised to 'Positive' if the group's financial risk profile
improves considerably, driven mainly by fresh equity infusion and
prudent management of incremental working capital requirements.
Conversely, the outlook may be revised to 'Negative' if pressure
on revenue or profitability leads to reduced cash accruals for the
group, or if large debt-funded capital expenditure weakens its
capital structure.

                          About the Group

Set up in 1992 by the Gupta family of Rajasthan, Ujala Pumps
manufactures water-lifting pumps that are used primarily for
domestic and agricultural purposes. The company has its
manufacturing facility in Bhiwadi (Rajasthan), with an annual
capacity of over 0.2 million pumps. It has undertaken a capital
expenditure programme of INR180 million to increase its capacity
to over 0.4 million pumps annually.

Ujala Pumps sells a significant proportion of its production to
Ujala Sales, which trades in generator sets and water pumps. The
Ujala group has a presence primarily in northern India, covering
Delhi, Rajasthan, Uttar Pradesh, and Punjab.

The Ujala group reported an estimated profit after tax (PAT) of
INR19 million on net sales of INR1154 million for 2009-10 (refers
to financial year, April 1 to March 31), against a PAT of INR15
million on net sales of INR767 million for 2008-09.


WEARIT GLOBAL: Fitch Assigns National Long-Term Rating at 'B-'
--------------------------------------------------------------
Fitch Ratings has assigned India's Wearit Global Ltd. a National
Long-term rating of 'B-(ind)' with a Stable Outlook.  The agency
has also assigned ratings to WGL's bank loans:

  - INR50 million term loan: 'B-(ind)';

  - INR40 million cash credit limits: 'B-(ind)';

  - INR50 million fund-based facilities for packing credits:
    'F4(ind)'; and

  - INR50 million non-fund based facilities: 'F4(ind)'.

WGL's ratings reflect its relatively small scale of trading
business (approximately 8,000 MT per annum) in India's fragmented
textile industry (resulting in intense competition and limited
bargaining power), its strained liquidity position and increased
working capital requirements.  The ratings are further constrained
by WGL's weak financial profile, characterized by high net
leverage (FY10: net debt/EBITDA: 7x) and coverage indicators.

In FY10, WGL entered into an agreement with its group company -
Ritspin Synthetic Ltd., according to which all the production done
in RSL's premises will be sold in the export and domestic markets
through WGL only.  WGL is also partly procuring raw materials for
RSL as the latter does not have adequate working capital limits
with banks to support its operations.  This is in turn has put
liquidity pressure on WGL; its gross interest coverage in FY10 was
low at 1.1x.  However, WGL also has the option to trade in items
manufactured by other textile spinners to improve its financials.

RSL has a synthetic yarn manufacturing unit near Indore (Madhya
Pradesh).  The company has filed an application with the Board for
Industrial and Financial Reconstruction for sustained losses,
which in turn has eroded its net worth.  WGL has become a
strategic investor in RSL and has settled all its secured loans.
For its unsecured loans, only Madhya Pradesh State Industrial
Development Corporation - which is the largest lender - is left;
these are expected to be settled in FY11.

Negative rating triggers include a decline in WGL's in operating
margins with net leverage of above 6x and/or gross interest
coverage of below 1x.

In FY10, WGL reported net sales of INR704.2 million (FY09: INR40.6
million) and its EBITDA margin turned positive at 4.9% (FY09:
negative at 1.4%).  Its total adjusted debt outstanding was
INR243.3 million at FYE10 (FYE09: INR209.2 million), which
comprises INR50.6 million of term loans, INR84.4 million of cash
credits and export packing credit as well as INR101.6 million of
unsecured loans.  WGL reported negative free cash flows of
INR60.6 million in FY10.


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


INCUBATOR BANK: Sets Two-Day Depositors and Creditors Meetings
--------------------------------------------------------------
Kyodo News reports that the Incubator Bank of Japan will hold
meetings with its depositors and other creditors in Tokyo today,
September 16 and on Friday, September 17.

At the meeting, Incubator Bank will:

   -- explain how their credits, including savings above
      the JPY10 million refund limit under Japan's deposit
      protection scheme, will be handled; and

   -- brief the creditors on its current state, a timetable
      for proceedings under the Civil Rehabilitation Law and
      the handling of non-deposit credits such as accounts
      receivable.

As reported in the Troubled Company Reporter-Asia Pacific on
September 13, 2010, Kyodo News said the Incubator Bank of Japan
Ltd. filed for bankruptcy proceedings with the Financial Services
Agency under the Deposit Insurance Law.  The FSA is expected to
invoke the deposit protection scheme for the first time since it
was instituted in 1971.  The protection covers up to JPY10 million
in deposits and interest.  According to Kyodo, sources said the
bank may incur a capital deficit in its semiannual period through
September.  The bank had about JPY592.7 billion in deposits as of
March 31, of which JPY68.6 billion had been deposited in excess of
the JPY10 million threshold by some 4,800 depositors.

Incubator Bank of Japan Ltd. is a Tokyo-based small business
lender.


JLOC XXX: S&P Puts Note Ratings on CreditWatch Negative
-------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch with
negative implications its ratings on classes A to C trust
certificates and affirmed its ratings on classes D and X trust
certificates issued under JLOC XXX Trust Certificates.  At the
same time, Standard & Poor's affirmed its ratings on the classes
Mezz C-1 and Mezz C-2 mezzanine trust certificates issued under
JLOC XXX Satellite Trust.

Of the six specified bonds that backed the trust certificates when
they were issued in May 2006, only two specified bonds remain.  On
June 30, 2010, S&P lowered its assumption with respect to the
likely collection amount from the properties backing one of the
transaction's two remaining specified bonds (the refinancing-type
specified bond, which originally represented about 15% of the
total initial issuance amount of the floating-rate trust
certificates and the Satellite Trust mezzanine trust certificates,
is due to mature in November 2011), which is backed by hotels.
Under its revised assumption, S&P estimated that the combined
value of the hotels was about 58% of S&P's initial underwriting
value.

The total value of the hotels in question is to be shown in the
property appraisal report and the property survey report that the
servicer is set to receive.  In the meantime, the servicer has
given us a provisional value.  Since the provisional value is far
below S&P's assumption as of June 2010, S&P need to review its
assumption with respect to the likely collection amount from the
hotels.  S&P placed classes A to C on CreditWatch with negative
implications because S&P expects to lower its assumption with
regard to the likely collection amount from the hotels.

S&P intend to review its ratings on the three classes that S&P
placed on CreditWatch with negative implications after completing
its assessment of the recovery prospects for the properties.  As
part of this review, S&P will consider the plans made in regard to
collateral liquidation and information regarding the progress of
the liquidation, and procure and examine the property appraisal
report and the property survey report.

JLOC XXX Trust Certificates and JLOC XXX Satellite Trust form a
two-tier transaction that is Japan's largest-ever CMBS
transaction.  The floating-rate trust certificates and the
Satellite Trust mezzanine trust certificates were initially
secured by a total of six specified bonds.  The transaction was
arranged by Morgan Stanley Japan Securities Co. Ltd., and ORIX
Asset Management & Loan Services Corp. acts as the servicer for
this transaction.

The ratings address the full and timely payment of interest and
the ultimate repayment of principal by JLOC XXX Trust
Certificates' legal final maturity date in April 2014 for the
class A floating-rate trust certificates; the full payment of
interest and ultimate repayment of principal by the legal final
maturity date for the class B to D floating-rate trust
certificates; and the timely payment of available interest for the
interest-only class X floating-rate trust certificates.  The
ratings also address the ultimate repayment of principal and the
full payment of interest by the legal final maturity date in April
2014 for the class Mezz C-1 and Mezz C-2 Satellite Trust mezzanine
trust certificates.

              Ratings Placed On Creditwatch Negative

                    JLOC XXX Trust Certificates
  JPY333.8 billion floating-rate trust certificates due April 2014

Class    To                    From           Initial issue amount
-----    --                    ----           --------------------
A        AAA (sf)/Watch Neg    AAA (sf)       JPY225.6 bil.
B        AA (sf)/Watch Neg     AA (sf)        JPY35.4 bil.
C        BBB- (sf)/Watch Neg   BBB- (sf)      JPY37.3 bil.

                    Ratings Affirmed

Class      Rating         Initial issue amount
-----      ------         --------------------
D          CCC (sf)       JPY35.5 bil.
X          AAA (sf)       JPY333.8 bil. (initial notional
                                         principal)

                         Ratings Affirmed

                     JLOC XXX Satellite Trust
     JPY9.3 billion Satellite Trust mezzanine trust certificates
                          due April 2014

       Class      Rating                Initial issue amount
       -----      ------                --------------------
       Mezz C-1   CCC (sf)              JPY8.3 bil.
       Mezz C-2   CCC (sf)              JPY1.0 bil.


SHINSEI BANK: S&P Downgrades Ratings on Securities to 'B-'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered by two notches to 'B-'
from 'B+' its debt rating on the preferred securities issued by
Shinsei Bank Ltd., and placed the rating on CreditWatch with
negative implications.  The actions reflect S&P's view that the
likelihood has increased that Shinsei may be unable to secure the
distributable reserves necessary to pay dividends on its preferred
securities, as the bank may post losses on a nonconsolidated basis
in fiscal 2010 (ending March 31, 2011).  At the same time, S&P
lowered its stand-alone assessment on the bank, which excludes a
government support factor in the event of an emergency, and the
bank fundamental strength rating on Shinsei to 'C' from 'C+', and
revised S&P's outlook on the long-term counterparty rating to
negative from stable.  These rating actions reflect S&P's view
that a recovery in Shinsei's profitability is likely to be weaker
than its initial assumptions.  S&P affirmed its long-term
counterparty rating as a result of increasing the government
support factor to two notches from one notch.

According to a clause in Shinsei's preferred securities'
contracts, the bank will cease dividend payments on the preferred
securities if its nonconsolidated distributable reserves at the
end of the fiscal year fall short of the amount of the upcoming
preferred dividend.  Standard & Poor's estimates the dividend
payments at about JPY9.5 billion next year.  Shinsei's
distributable reserves decreased to around JPY23.2 billion as of
March 31, 2010, in tandem with the deterioration in its financial
performance.  The bank had posted net profits until the first
quarter of fiscal 2010 (April 1, 2010, to June 30, 2010).
However, S&P believes it may not be able to secure the available
distributable reserves sufficient for dividend payments on its
preferred securities, mainly due to possible impairment losses on
stock it holds in Aplus Financial Co. Ltd., a consolidated
subsidiary.  If impairment losses are posted, they could amount to
about JPY50 billion.  Even if Shinsei does not post impairment
losses on Aplus' stock in its interim financial report to be
closed at the end of September 2010, impairment losses may still
accrue given stock price fluctuations.  Although Standard & Poor's
expects Shinsei Bank to take measures to pay dividends on
preferred securities, there is uncertainty over their feasibility.
In addition, the probability of dividend distribution differs
significantly depending on whether or not the bank posts
impairment losses, given the scale of the impairment losses.
Standard & Poor's will review its debt rating on Shinsei's
preferred securities after S&P confirm whether or not the bank
posts impairment losses in its interim financial report to be
closed at the end of September 2010, and examine the bank's
measures to pay dividends.

Lowering the stand-alone assessment on Shinsei, which excludes the
government support factor in the event of an emergency, and
changing the outlook on the long-term counterparty rating to
negative reflects S&P's view that a recovery in Shinsei's earnings
is likely to be weaker than its initial assumptions.
Nonconsolidated losses relating to Aplus Financial are unlikely to
directly affect the stand-alone assessment on Shinsei, as
impairment losses on Aplus Financial's goodwill have been already
realized on a consolidated basis.  The bank also reduced its
exposure to real estate, which generated material losses in fiscal
2009 (ended March 31, 2010).  In addition, it has been reducing
costs faster than it planned.  Standard & Poor's also considers
the bank to hold capital and liquidity that are consistent with
the current stand-alone assessment.

However, market concerns over dividend payments on preferred
securities may heighten reputational risk and constrain the bank's
financial flexibility.  In addition, the bank remains exposed to a
decline in real estate prices.  Moreover, Shinsei's credit
concentration is relatively high, which may cause the bank
material losses if loans to large borrowers become nonperforming.
Business conditions at the bank's consumer finance subsidiaries
also remain severe.  Overall, Standard & Poor's sees Shinsei's
earnings remaining susceptible to changes in the operating
environment.  S&P believes that Shinsei will find it challenging
to establish a stable profit base in the short term, given
uncertain revenue prospects stemming from its limited customer and
business bases compared to Japan's major banks.

The counterparty rating on Shinsei incorporates the government
support factor by two notches.  Standard & Poor's increased the
government support factor to two notches from one notch, while
lowering its stand-alone assessment.  This is based on S&P's view
of Japan's banking regulators, who have always extended support to
banks of a certain size, and its view that Shinsei Bank is
moderately important to the financial system in Japan, even though
it is less important than Japan's mega banks.  However, the
ratings may come under downward pressure if S&P further lower the
stand-alone assessment on Shinsei.  This could occur if the bank's
profitability and liquidity fall below S&P's assumptions, or the
bank's business base weakens.  Conversely, S&P may raise the
ratings if S&P see an increased likelihood that earnings will
stabilize.  Nevertheless, an upgrade would require a considerable
improvement in the stand-alone assessment, as the ratings already
incorporate the government support factor by two notches.


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


HANA BANK: Fitch Downgrades Ratings on Securities to 'BB+'
----------------------------------------------------------
Fitch Ratings has affirmed Hana Bank's Long-term foreign currency
Issuer Default Rating at 'A-' with a Stable Outlook, and affirmed
its Support Rating at '1', Support Rating Floor at 'A-', and
Individual Rating at 'C'.  The agency has simultaneously
downgraded Hana's Hybrid securities to 'BB+' from 'BBB-'.  A full
list of rating actions can be found at the end of this release.

The affirmation of Hana's IDR, Support Rating and Support Rating
Floor reflects Fitch's continued belief of an extremely high
propensity for support from the South Korean government, if
required, given its systemic importance as one of the major
commercial bank in SK.  The bank has a sizable franchise in the
local banking system, holding 8.2% of the system's total assets
and 9.1% of the system's deposits through its nationwide branch
network.  During the global credit crisis, the bank availed itself
of, among the various support measures, the government's Bank
Recapitalization Fund to shore up its capitalization (KRW400bn
hybrid Tier 1 capital which was 4.6% of its Tier 1 capital then)
and government guaranteed senior debts to support its foreign-
currency liquidity in 2009.  Fitch notes that such reliance on the
government was more of a preemptive move rather than as a last
resort.

The affirmation of Hana's IR reflects its strong local franchise
and capitalization, adequate profitability and asset quality, but
also its weak funding profile.  It also considers the subdued
operating environment, which is somewhat mitigated by SK
government's strong support measures for the country's banking
system and economy.  Most of Hana's financial metrics have
weakened in recent years and consequently remain somewhat weaker
than the 'C' rated peer banks.  Although its performance has
recovered in recent quarters, the agency does not expect Hana's
metrics to improve significantly in the next few years.

The downgrade of Hana's hybrid securities to 'BB+' from 'BBB-'
reflects that they are performing, but with going concern loss
absorption.  The 'BB+' rating is two notches below the bank's
implicit unsupported IDR which is driven by its IR, and is in line
with Fitch's criteria and typical notching practice for such
securities.

Hana's profitability has been recovering from the impact of the
global credit crisis, evidenced by a Fitch comprehensive
income/average total assets ratio of 0.35% in 2009, compared with
-0.13% in 2008 and well above 1% in 2007-2005.  The agency
forecasts the ratio to be about 0.50%-0.55% in 2010 and 2011.
Although its regulatory net interest margin recovered to 2.00% in
H110 from a low of 1.52% in H109 due to re-pricing and stabilized
interest rates, it has contracted since 2005 (2.42%), as a result
of strong competition.  Its NIM has been below the system's
average due to its weaker low-cost deposit base compared to local
peers and relatively weaker credit card operation which was spun-
off in late 2009.  Moreover, the agency expects any further
improvement in NIM would be somewhat limited given slow increases
in interest rates and limited room for further re-pricing going
forward.

The agency does not expect a drastic decline in credit costs for
the next few years, although it should be manageable given that
its loan quality was adequate at end-H110, with a non-performing
loan ratio of 1.37% and provision coverage of 111% and its margins
have recovered.  The agency expects the bank's loan quality to
deteriorate, given the poor performance of its small medium
enterprise loans (36% of total loans) with precautionary-and-below
loans ratio of 6.6% (arising from the significant 45% growth in
2006) and the forthcoming withdrawal of support measures.  SK's
banks have been incurring sizable credit costs in SMEs.

Hana's loans/customer deposits ratio (based on ending-balances)
continued to deteriorate in recent years, raising concerns
somewhat for the agency.  The estimated ratio of 136% at end-H110
compares with 121% at end-2005.  Like other SK banks, Hana does
not have any meaningful retail deposits in foreign currency.  It
thus relies largely on wholesale funding and authorities' support,
rendering it potentially vulnerable to capital markets volatility,
particularly in foreign currency.

Hana's capitalization was strong at end-H110, with a total capital
adequacy ratio of 15.33% and a Tier 1 ratio of 11.96%.  Fitch
expects the strong capitalization to be maintained for the next
few years, assuming more disciplined loan growth and no excessive
dividend payments to its parent.  However, the agency does not
rule out a substantial increase in dividends should the parent
make a sizeable acquisition given that its parent, Hana Financial
Group has been considering a sizable M&A with a bank.

Hana's IDR would not change unless its Support Rating Floor is
revised or its IR gets upgraded given that the IDR is at the
Support Rating Floor.  A substantial and sustainable improvement
in asset quality and foreign-currency funding/liquidity profile
could offer upside potential for Hana's IR (and by implication,
also its hybrid securities) which may in turn lead to upgrade
pressure on its IDRs.  Conversely, a significant increase in
credit costs, eroding its capitalization, (currently not expected
by the agency) could lead to a downgrade of its IR.

Hana is SK's fourth-largest commercial bank in terms of total
assets, with 8.2% of the system's assets.  Accounting for 90% of
the group's consolidated total assets at end-2009, Hana is the
flagship subsidiary of Hana Financial Group whose largest
shareholder is Temasek Holdings, Singapore's sovereign fund, with
a 9.6% stake.

The ratings of Hana are detailed below:

  -- Long-term Foreign Currency IDR: affirmed at 'A-' with Stable
     Outlook;

  -- Short-term Foreign Currency IDR: affirmed at 'F2';

  -- Individual Rating: affirmed at 'C';

  -- Support Rating: affirmed at '1';

  -- Support Rating Floor: affirmed at 'A-';

  -- Senior guaranteed debts: affirmed at 'A+';

  -- Senior unsecured debts: affirmed at 'A-';

  -- Subordinated debts: affirmed at 'BBB+'; and

  -- Hybrid securities: downgraded to 'BB+' from 'BBB-'.


* SOUTH KOREA: KOSPI and KOSDAQ Delist 80 Firms in 2010
-------------------------------------------------------
The Korea Exchange said it has delisted 80 troubled companies this
year under a tightened financial audit, the Korea Herald reports.

According to the report, 20 firms were removed from the main index
KOSPI and 60 were from the KOSDAQ, the secondary stock market
heavily loaded with tech firms.

The Korea Herald, citing unnamed officials, says the total number
is likely to exceed the 1999 level when 89 companies were removed
in the wake of the 1997 Asian financial crisis.

The Financial Supervisory Service said that 45 firms in 2009
received a "disclaimer of opinion" after inspection, meaning the
companies weren't able to provide financial statements and details
of their business operation, according to the Herald.  The report
notes that the status is generally regarded as being subject to
further investigation as there is a high possibility that the
auditee willfully hid or refused to provide information required.


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


BRIDGECORP LTD: Repayment Date for Investors Still Uncertain
------------------------------------------------------------
The New Zealand Press Association reports that receivers of
Bridgecorp Limited are still unable to say when they might be able
to make any payouts to secured debenture holders.

NZPA relates that receivers Colin McCloy and Maurice Noone of
PricewaterhouseCoopers, in their seventh report on Bridgecorp's
state of affairs, said the timing of distributions to secured
debenture investors remained uncertain.  That was due to the
nature of Bridgecorp's assets and outstanding taxation issues,
NZPA says.

The receivers previously advised secured debenture investors to
expect less than 10c in the dollar payout, NZPA notes.

A full text copy of the Receivers' Seventh Report on the company's
affairs is available for free at:

                http://ResearchArchives.com/t/s?6b2e

                         About Bridgecorp

Based in New Zealand, Bridgecorp Ltd is a property development
and finance company.  Bridgecorp has been placed in receivership
on July 2, 2007, after failing to pay principal due to debenture
holders.  In that regard, John Waller and Colin McCloy, partners
at PricewaterhouseCoopers, were appointed as receivers.
Bridgecorp owes around 1,800 debenture holders, which
liquidators estimate to approximate NZ$500 million.

Bridgecorp's nine Australian companies were placed into
voluntary administration, owing about 100 investors about
AU$24 million (NZ$27 million).


FELTEX CARPET: Liquidator Will Pursue Case Against Ex-Directors
---------------------------------------------------------------
The liquidator of Feltex Carpet is pushing ahead with its court
case against five former directors of the company, spurred on by
admissions made in the case the five recently won against the
Registrar of Companies, interest.co.nz reports.

The report relates McDonald Vague director Iain McLennan said the
Registrar of Companies case, including a district court trial, had
been watched closely.

According to the report, McDonald Vague had filed a High Court
statement of claim seeking about NZ$41 million from the five --
former chairman Tim Saunders, ex-CEO Peter Thomas, John Hagen,
Peter David Hunter and John Michael Feeney.  The liquidator's
allegations include reckless trading and negligence.

The statement of claim also maintains Feltex was "balance sheet
insolvent" for at least 11 months before the receivers took the
reins and breached sharemarket continuous disclosure laws,
interest.co.nz says.

The report adds that the statement of claim further said Feltex's
board had failed, since 2001, to annually forecast, project or
budget "with any reliability" Feltex's financial performance.

A three-week trial is set down starting May 16, 2011, almost five
years after Feltex was put into receivership, the report notes.

As reported in the Troubled Company Reporter-Asia Pacific on
August 5, 2010, The National Business Review said five former
directors of Feltex Carpets have been found not guilty of
Financial Reporting Act breaches.  The five Feltex directors --
Peter Hunter, Peter Thomas, Michael Feeney, John Hagen and former
chairman Tim Saunders -- faced two charges under the Financial
Reporting Act 1993, to which they pleaded not guilty.  These
related to failing to publish a breach of Feltex's banking
covenants and not properly classifying its AU$119.5 million
(NZ$157 million) debt facility with the ANZ bank in the company's
December 2005 half-year accounts.  The NBR noted that the
directors had accepted the interim accounts did not meet the new
accounting standards, but argued they took all reasonable and
proper steps to ensure compliance, including employing specialist
accounting firm Ernst & Young to audit the statements.

The TCR-AP, citing The New Zealand Herald, reported on August 17,
2010, that the Registrar of Companies won't be appealing the court
ruling to acquit Feltex Carpet's five directors of Financial
Reporting Act charges.

                        About Feltex Carpets

Headquartered in Auckland, New Zealand, and established more than
50 years ago, Feltex Carpets Limited -- http://www.feltex.com/--
has built a reputation for being one of the world's leading
manufacturers of superior-quality carpet.  The Feltex operation
includes a wool scouring plant, six spinning mills, three tufted
carpet mills, a woven carpet mill and offices in New Zealand,
Australia and the United States.  The company also leads the way
in exports, with customers throughout South East Asia, Japan, the
United States, the Middle East and other key world markets.

NZ Bank placed the company in receivership on Sept. 22, 2006, and
named Colin Nicol, Peter Anderson and Kerryn Downey, of
McGrathNicol+Partners, as receivers and managers.

The TCR-AP reported on Oct. 4, 2006, that Godfrey Hirst acquired
Feltex as a going concern, including its assets and undertakings
in New Zealand, Australia, and the United States.  Proceeds of the
sale will be used to ease the company's NZ$128-million debt to ANZ
Bank.

On Dec. 13, 2006, the High Court in Auckland ruled in favor of an
application by the Shareholders Association against Feltex Carpets
putting the carpet maker into liquidation.  John Vague was
appointed as liquidator.


MUTUAL FINANCE: Government to Start Paying Investors
----------------------------------------------------
The National Business Review reports that the Treasury will begin
paying out investors in Mutual Finance under the Crown guarantee.

The receivers said in a report released Wednesday that they have
verified the investor register, enabling the Treasury to begin its
payout process, NBR says.

According to NBR, the receivers said it was not possible to
estimate the level of recovery at this stage.  Based on
preliminary estimates there was unlikely to be a return to
unsecured creditors.

Mutual Finance Ltd. is an Auckland-based financial institution
with around 400 depositors and approximately NZ$8 million in
guaranteed deposits.

As reported in Troubled Company Reporter-Asia Pacific on July 16,
2010, Mutual Finance was placed into receivership, with NZ$8
million of deposits covered by the retail deposit guarantee
scheme.  Covenant Trustee appointed Brendan Gibson and Grant
Graham of KordaMentha as receivers of Mutual Finance.

The finance company said it had been in technical breach of one of
its covenants and its trustee, Covenant Trustee, had deemed there
was a risk of a "cash flow mismatch" between the timing of asset
sales and payments to depositors.


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


PHILIPPINE AIRLINES: Files Suit Against 16 Pilots for Abandonment
-----------------------------------------------------------------
Philippine Airlines has sued 16 of the 25 pilots who resigned in
July to work for other carriers, accusing them of breach of
contract and abandonment of duty before a Makati court, the Manila
Standard Today reports.

"We are still preparing the case against the other pilots before
going to court," an airline official told Manila Standard.

According to the report, the respondents were captains Allan
Avellanosa, John Joseph de Guzman, Bienvenido Gorospe, Christopher
Abella, Alvin Panganiban, Charles Pastrana, Sunny Sim and Jacques
Louis Zialcita.  First officers Gerald Escuril, Regin Lorenzo,
Robert Solis, Emmanuel de Lima, Joevan Magbanua, Van Vincent
Panganiban, Erwin Sibayan, and Darwin Sy were also in the suit,
the Manila Standard discloses.

The report notes that the pilots left without notice for higher-
paying jobs in Hong Kong, Vietnam and the Middle East, causing the
airline to cancel more than 20 flights in August.

The airline accuses the pilots, who used to operate its Airbus 320
fleet, of violating a provision in their contract to give the
company 180 days notice before leaving for another job, as well as
an agreement requiring them to work for five years to cover the
cost of their training.

                     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.

                          *     *     *

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.  The PAL Employees Union
estimated that 2,000 to 4,000 employees assigned to those
departments could be retired.  PAL 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.


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


TAIWAN COOPERATIVE: Moody's Withdraws 'D' Bank Strength Rating
--------------------------------------------------------------
Moody's Investors Service has withdrawn these ratings of Taiwan
Cooperative Bank:

* Bank financial strength rating of D; global local currency and
  foreign currency long-term/short-term deposit ratings of A2/P-
  1.  The outlook for all ratings was negative.

                        Ratings Rationale

Moody's Investors Service has withdrawn the credit ratings for its
own business reasons.  TCB is headquartered in Taipei and reported
total consolidated assets of NT$2,589 billion as of the end of
2009.

                      Regulatory Disclosures

MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources.  However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.


                             *********

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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