TCRAP_Public/120116.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

            Monday, January 16, 2012, Vol. 15, No. 11

                            Headlines


A U S T R A L I A

HOPE CHRISTIAN: Winds Up as Deal to Find New Operator Fails
LEHMAN AUSTRALIA: Seeks Protection From Creditors in the U.S.


C H I N A

* CHINA: Faces Growing Burden from Local Govt Debt, Analysts Say


H O N G  K O N G

CEMCO LIMITED: Members' Final General Meeting Set for Feb. 13
CHIA TAI: Pang Siu Chik Alick Appointed as Liquidator
CHINA UNITED: Lau and Li Step Down as Liquidators
CHINA ZHEJIANG: Yu Qiang Appointed as Liquidator
CYK PRODUCE: Seng and Cheng Appointed as Liquidators

LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases


I N D I A

AIR INDIA: Service Tax Department Freezes AI's Bank Accounts
AIR INDIA: Seeks INR300cr Monthly Aid from Parent to Survive
A S P PVT: CRISIL Assigns 'CRISIL B+' Rating to INR7.6MM Loan
GEM MULTICOLOR: Delay in Loan Servicing Cues CRISIL Junk Ratings
IDBI BANK: Moody's Affirms (P)Ba2 Rating on Jr. Sub. Debt Program

KINGFISHER AIRLINES: DVB Bank May Repossess Two Airbus A320
KSM SPINNING: Delay in Loan Repayment Cues CRISIL Junk Ratings
LAKSHAY ORNAMENTS: CRISIL Puts 'CRISIL B+' Rating on INR55MM Loan
LAKSHMI ENERGY: CRISIL Cuts Rating on INR4BB Loan to CRISIL BB+
PARTAP SPINTEX: CRISIL Upgrades Rating on INR281.4MM Loan to 'BB'

PEERLESS HOSPITEX: Fitch Assigns 'Fitch B-' National LT Rating
POWER SPINNING: Fitch Migrates Rating to Non-Monitored Category
SWAN SILK: CRISIL Cuts Rating on INR119.5MM Loan to 'CRISIL BB-'
TEXCEL INTERNATIONAL: CRISIL Rates INR70-Mil. Loan at 'CRISIL C'
TUFF TUBES: CRISIL Assigns 'CRISIL B' Rating to INR77MM Loan

VANDANA PACKAGING: CRISIL Puts 'CRISIL B' Rating on INR60MM Loan
VEDANTA RESOURCES: Moody's Cuts Sr. Unsec. Bond Rating to 'Ba3'
* Fitch: Indian Currency Fall Has Limited Impact on Int'l Ratings


I N D O N E S I A

ARPENI PRATAMA: Insolvency Case Goes Indonesian Court


J A P A N

CORSAIR NO.2: S&P Puts 'BB-' Rating on Series 52 CDO on Watch Pos
CSC SERIES 1: S&P Lowers Ratings on 3 Classes of Bonds to 'CC'


K O R E A

ACE MUTUAL: Chief Found Dead in Hotel Before Questioning


N E W  Z E A L A N D

BAY FLIGHT: In Liquidation: Talks With Potential Buyers Ongoing


                            - - - - -


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


HOPE CHRISTIAN: Winds Up as Deal to Find New Operator Fails
-----------------------------------------------------------
Campbelltown-Macarthur Advertiser reports that Hope Christian
School in Narellan will not open its doors in 2012 after going
into voluntary liquidation on December 23.

This followed the collapse of a deal with The Lakes Christian
School to buy the school, the report says.

"We just didn't have the cash flow to see ourselves over the
holiday period," the report quotes board chairman Mick Agius as
saying.  "We had no choice.  We had been looking for another
party to take over the school."

Campbelltown-Macarthur Advertiser relates that Mr. Agius said
unpaid debts and outstanding school fees were some of the
problems.

Mr. Agius said the school had contacted local private schools
asking them to take in some of the school's 120 students, the
report adds.

Ernst & Young were appointed liquidators on January 5, the report
discloses.

Campbelltown-Macarthur Advertiser notes that Simon Cathro and
John Gibbons of Ernst & Young said in a statement: "Our
appointment as liquidators followed unsuccessful negotiations by
the board to secure new operators for the school.

"We are investigating all options, including continuing the
school if an interested party can be found, or identifying
potential buyers for the assets of the school. At this stage it
is not clear how long this process will take."

The liquidators can be reached at:

          The Ernst & Young Centre
          680 George Street
          Sydney NSW 2000
          Tel: 9248 5555
          Fax: +61 2 9248 5959


LEHMAN AUSTRALIA: Seeks Protection From Creditors in the U.S.
-------------------------------------------------------------
Lehman Brothers Australia Limited, Lehman Brothers Holdings
Inc.'s Australian unit, sought bankruptcy protection from
creditors on Jan. 6 under Chapter 15 of the U.S. Bankruptcy Code.
The petition was filed in the U.S. Bankruptcy Court for the
Southern District of New York where it's parent's Chapter 11 case
is pending.  LBA also sought recognition of its proceeding before
the Federal Court of Australia, New South Wales District Registry
as a "foreign main proceeding" pursuant to Chapter 15 of the
Bankruptcy Code.

LBA was incorporated in Australia on October 14, 1994 and was
previously known as Grange Securities Limited.  Grange was
involved in carrying on investment banking, securities broking,
capital raising and funds management activities within the
Australian fixed income and equities markets.  On March 7, 2007,
Lehman Brothers Australia Granica Pty Limited, whose ultimate
parent company is LBHI, purchased all of the issued share capital
of Grange.  The company then changed its name to Lehman Brothers
Australia Limited.  LBA continued to carry on business mainly
focused on investment banking.  LBA was part of the broader South
East Asia Lehman Brothers group, with reporting lines to Lehman
Brothers Asia Holdings Limited, which was incorporated in Hong
Kong.

On September 26, 2008, LBA's board of directors appointed Stephen
Parbery and Neil Singleton of PPB Advisory as administrators of
the company believing that LBA was, or was likely to become,
insolvent following its parent's Chapter 11 filing.  In June
2009, the administrators negotiated a deed of company arrangement
with LBA's various stakeholders.  Ultimately, the Australia Court
declared the Deed to be void and of no effect and ordered that
LBA be wound up.

Marcus Ayres, a partner at the professional advisory firm PPB
Advisory and a liquidator of LBA, replaced Mr. Singleton as LBA's
liquidator.

                     LBA's Capital Structure

As of June 7, 2011, the date of the most recent Report to
Creditors in the Australia Proceeding, LBA held approximately
AUD91 million of cash, AUD5.2 million of which is currently
disputed, in various term deposits.

The Company's other assets include:

(a) Certain non-Lehman originated collateralized debt
     obligations, with a face value of AUD127 million and a
     market value of AUD61 to AUD68 million using a valuation
     report prepared by Structured Credit Research and Advisory
     Pty Limited dated April 30, 2011;

(b) Certain Lehman-originated CDOs with a face value of
     approximately AUD17.8 million, of which the Liquidators
     understand the value of the collateral is approximately
     AUD15 million;

(c) Certain intercompany claims against other Lehman entities,
     which LBA has been attempting to settle on a commercial
     basis;

(d) Contingent claims, totaling approximately US$1.3 billion
     plus unliquidated amounts, against LBHI and Lehman Brothers
     Special Financing, Inc.; and

(e) Various other claims and causes of action.

As of June 7, 2011, the Liquidators estimate that LBA has these
potential liabilities:

  (1) LBA has debts due to trade creditors of approximately
      AUD9.9 million.

  (2) Seventeen other Lehman entities have filed intercompany
      claims against LBA in the Australian Proceeding totaling
      approximately AUD168 million to AUD339.9 million.

  (3) More than 225 investors, most of whom are Australian
      pension funds, religious entities, local government
      entities, charities, and individuals holding synthetic
      credit-linked portfolio notes associated with various
      Lehman entities have filed claims in the Australia
      Proceeding.  LBA holds approximately AUD17.8 million of
      SLCDS Notes that were issued as part of the so-called
      "Dante Programme."  The Investor Claims with respect to
      non-Lehman SLCDS Notes are estimated to be approximately
      AUD506.5 million.

According to Mr. Ayres, some of the Investors holding both the
non-Lehman SLCDS Notes and the Dante Programme SLCDS Notes have
sought to prosecute their claims against the LBA estate in the
Australia Court.  On March 2, 2011, the Australia Court commenced
a trial concerning a "representative action" of three applicants
and a group of Investors asserting claims for losses arising in
connection with the purchase of various financial products from
LBA.  The Australia Court took the matter under consideration.
On December 1, 2011 the Australia Court re-opened the trial to
hear further evidence regarding the amount of the Investor
Claims, and how some of those Claims may be affected by the
outcome of the unresolved "flip clause" litigation.

         Australia Proceeding is "Foreign Proceeding"

The Sydney-based company is asking the U.S. bankruptcy court to
recognize its liquidation proceeding in Australia as a "foreign
main proceeding" under Section 101(23) of the U.S. Bankruptcy
Code.

Mr. Ayres, in a declaration in support of the Chapter 15
Petition, asserted that the Australia Proceeding is a "foreign
proceeding" for these reasons:

  (1) The Australia Proceeding was commenced pursuant to Part
      5.4B of the Corporations Act, an Australian law that
      governs corporate liquidations.  The primary purpose of
      liquidation under Chapter 5, Part 5.4B, Division 2 of the
      Corporations Act is to liquidate a company's assets, make
      distributions to the company's creditors, and liquidate
      and dissolve the company.

  (2) The proceeding is "judicial," as it has been commenced
      before the Australia Court and is thereafter subject to
      the day-to-day supervision of that court, in conjunction
      with the Liquidators.  The Liquidators are fiduciaries of
      LBA's estate, subject to the jurisdiction of the Australia
      Court, that are charged with the duty to collect and
      realize the assets of LBA and to hold and distribute the
      proceeds for the benefit of all of LBA's creditors in
      accordance with their interests under the laws of
      Australia and in the priority prescribed by those laws.

  (3) The Australia Proceeding is collective in nature, in that
      the Liquidators are conducting the Australia Proceeding
      for the benefit of all creditors.

  (4) The Australia Court, where the Australia Proceeding is
      pending, is located in Sydney, a city in Australia, which
      is a foreign country.

  (5) The Corporations Act is the Australian law governing,
      among other things, corporate liquidations like the
      Australia Proceeding.

  (6) LBA's assets are subject to the supervision of the
      Australia Court during the pendency of the insolvency
      proceeding.

  (7) The objective of the Australia Proceeding is liquidation.

  (8) The United Kingdom High Court of Justice Chancery Division
      Companies Court has already determined that the Australia
      Proceeding is a "foreign main proceeding" and recognized
      both Mr. Parbery and Mr. Ayres as "foreign
      representatives" of the Australia Proceeding.

        Australia Proceeding is a "Foreign Main Proceeding"

Mr. Ayres further contended that LBA's Australia Proceeding is a
"foreign main proceeding" as the term is defined in Section
1517(b)(1) of the Bankruptcy Code, as LBA has its center of main
interests in Australia, where the liquidation proceeding is
taking place.  Mr. Ayres related that until the Company was
placed into administration, LBA's principal place of business and
registered office was at Level 25, Governor Philip Tower, 1
Farrer Place, Sydney, New South Wales 2000, in Australia.  LBA's
registered address is now PPB Advisory's registered address,
which is Level 46, MLC Centre, 19 Martin Place, Sydney, New South
Wales 2000, Australia.

Mr. Ayres also asserted that these factors establish that
Australia is LBA's COMI:

  -- LBA was incorporated in Australia.

  -- LBA's main office was located at Level 25, Governor Philip
     Tower, 1 Farrer Place, Sydney, New South Wales 2000,
     Australia.

  -- LBA was primarily controlled by, and decision-making was
     made from, its principal place of business in Australia.

  -- All of LBA's employees resided in Australia.

  -- The majority of LBA's assets are located in Australia.

  -- The majority in number of LBA's creditors are located in
     Australia.

  -- All of LBA's administrative functions, including
     accounting, financial reporting, budgeting, and cash
     management were conducted in Australia.

  -- The majority of LBA's contracts with investment banking
     counterparties and clients were governed by the laws of
     Australia, except for a number of agreements that LBA
     entered into as part of its international financial markets
     business that were governed by the laws of other
     jurisdictions like New York or England, in accordance with
     industry norms.

  -- LBA maintains its bank accounts in Australia, and wire
     transfers from counterparties and clients were sent to
     LBA's bank accounts in Australia.

  -- LBA was regulated by the Australian Securities and
     Investment Commission, the Australian regulator of
     companies' affairs.

  -- LBA's accounts were audited in Australia.

                        Chapter 15 Overview

Chapter 15 of the United States Bankruptcy Code codifies a
comprehensive framework through which representatives in
corporate insolvency proceedings outside the U.S. can obtain
access to the United States courts.

Effective October 17, 2005, Chapter 15 replaced Bankruptcy Code
Section 304. Chapter 15 is much broader and more detailed than
Section 304.

Chapter 15 is based on the Model Law on Cross-Border Insolvency
promulgated by the United Nations Commission for International
Trade Law (UNCITRAL).  Legislation based on the UNCITRAL Model
Law on Cross-Border Insolvency has also been adopted in Eritrea,
Japan (2000), Mexico (2000), Poland, Romania (2003), South Africa
(2000), and within Serbia and Montenegro, Montenegro (2002).

"[T]he enactment of the UNCITRAL Model Law on Cross-Border
Insolvency is a significant change to the Bankruptcy Code that
may greatly impact the global economy.  If successful, this new
experiment in globalization may save jobs and create greater
certainty in the international financial market.  If
unsuccessful, the law could create confusion and chaos as courts
worldwide compete with one another across international
boundaries for large multinational bankruptcy cases," Dechert
LLP's Bankruptcy and Corporate Recovery and Insolvency practice
group advised its clients in an April 2005 Special Alert.

The case is In re Lehman Brothers Australia Ltd, 12-10063, U.S.
Bankruptcy Court, Southern District of New York (Manhattan)
before Judge James M. Peck.

The Foreign Representatives' counsel is:

        James H.M. Sprayregen, P.C., Esq.
        KIRKLAND & ELLIS LLP
        601 Lexington Avenue
        New York, NY 10022
        Tel: (212) 446-4800
        Fax: (212) 446-4900
        E-mail: james.sprayregen@kirkland.com

           -- and --

        David R. Seligman, P.C., Esq.
        Sienna R. Singer, Esq.
        KIRKLAND & ELLIS LLP
        300 North LaSalle
        Chicago, IL 60654
        Tel: (312) 862-2000
        Fax: (312) 862-2200
        E-mail: david.seligman@kirkland.com
                sienna.singer@kirkland.com

                      About Lehman Brothers

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

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

Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009
or more than a year after LBHI and its other affiliates filed
their bankruptcy cases.

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

Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.

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

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

               International Operations Collapse

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

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

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


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


* CHINA: Faces Growing Burden from Local Govt Debt, Analysts Say
----------------------------------------------------------------
Agence France-Presse reports that analysts said local governments
across China have borrowed billions of dollars to build bridges,
apartments and shopping centres, leaving many insolvent and
endangering the country's financial system.

While the central government in Beijing is in good financial
shape -- it has a small budget deficit, a huge trade surplus and
the world's largest foreign exchange reserves -- it is a
different picture outside the capital, the news agency relates.

According to AFP, local governments had borrowed CNY10.7 trillion
(US$1.66 trillion) -- 27% of gross domestic product -- by late
2010, according to official data, though the ratings agency
Moody's believes the figure is underestimated by CNY3.5 trillion.

The report relates that Moody's believes that between 8% and
10% of loans made by Chinese banks will never be recouped.

"Debt across the board is rising very quickly," weakening the
banking system, said Michael Pettis, a specialist in Chinese
financial markets at Peking University, reports AFP.

"But any attempts to slow its growth results in a rapid reduction
of investment and [economic] growth."

China's total public debt -- including the central and local
governments -- stands at 68% of GDP, well below Italy's ratio of
120% or Japan's which stands at more than 200%, the news agency
discloses.

But when it comes to local authorities, the key concern is
repayment, AFP says.

AFP notes that ultimately if the loans cannot be repaid, the
banks will have to be bailed out by Beijing, meaning the central
bank will have to print money, which will in turn create
inflation.  A recent downturn in the housing market will also
weigh on the finances of cities and provinces that had planned to
pay off debt by selling land at high prices, the report states.

However, Lin Yifu, the senior vice-president of the World Bank,
said last month that China was not at risk of a debt crisis like
the one engulfing Europe, AFP reports. "The government has much
less debt than many developed countries, so any concern about a
debt crisis in China is groundless," Lin said.


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


CEMCO LIMITED: Members' Final General Meeting Set for Feb. 13
-------------------------------------------------------------
Members of Cemco Limited will hold their final general meeting on
Feb. 13, 2012, at 10:00 a.m., at Room 1410, Harbour Centre, at 25
Harbour Road, Wanchai, in Hong Kong.

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


CHIA TAI: Pang Siu Chik Alick Appointed as Liquidator
-----------------------------------------------------
Pang Siu Chik Alick on Jan. 6, 2012, was appointed as liquidator
of Chia Tai Uromqi Company Limited.

The liquidator may be reached at:

         Pang Siu Chik Alick
         Room 101, 1/F
         Tak Fung Building
         79-81 Connaught Road West
         Hong Kong


CHINA UNITED: Lau and Li Step Down as Liquidators
-------------------------------------------------
Lau Hin Chi and Li Qiubong stepped down as liquidators of China
United Telecommunications Corp (HK) Limited on Jan. 3, 2012.


CHINA ZHEJIANG: Yu Qiang Appointed as Liquidator
------------------------------------------------
Yu Qiang on Jan. 5, 2012, was appointed as liquidator of China
Zhejiang International Trading Company Limited.

The liquidator may be reached at:

         Yu Qiang
         Room 1501, Unit 22
         Shi Jia Garden (Flat B Lianjin Building)
         Chao Hui Road
         Hangzhou, China 310014


CYK PRODUCE: Seng and Cheng Appointed as Liquidators
----------------------------------------------------
Seng Sze Ka Mee Natalia and Cheng Pik Yuk on Jan. 5, 2012, were
appointed as liquidators of CYK Produce Limited.

The liquidators may be reached at:

         Seng Sze Ka Mee Natalia
         Cheng Pik Yuk
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases
-----------------------------------------------------------------
The Hong Kong Monetary Authority (HKMA) announced that
investigation of over 99% of a total of 21,837 Lehman Brothers-
related complaint cases received has been completed.  These
include:

    * 15,764 cases, which have been resolved by a settlement
      agreement reached under section 201 of the Securities and
      Futures Ordinance;

    * 3,173 cases, which have been resolved through the enhanced
      complaint handling procedures required by the settlement
      agreement;

    * 2,296 cases, which were closed because insufficient prima
      facie evidence of misconduct was found after assessment or
      no sufficient grounds and evidence were found after
      investigation;

    * 431 cases (including minibond cases), which are under
      disciplinary consideration after detailed investigation by
      the HKMA, of which proposed disciplinary notices are being
      prepared in respect of 372 such cases and proposed
      disciplinary notices or decision notices have been issued
      in respect of the other 59 cases; and

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

    Investigation work is underway for the remaining 73 cases.

A table summarizing the progress of the disciplinary and
complaint-resolution work in respect of Lehman-Brothers-related
complaints is available at http://ResearchArchives.com/t/s?7777

                      About Lehman Brothers

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

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

Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009
or more than a year after LBHI and its other affiliates filed
their bankruptcy cases.

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

Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.

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

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

               International Operations Collapse

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

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

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


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


AIR INDIA: Service Tax Department Freezes AI's Bank Accounts
------------------------------------------------------------
The Economic Times reports that the service tax department froze
the bank accounts of Air India Ltd on Jan. 11 for the airline's
failure to pay service tax dues of about INR170 crore.

A service tax official said officials of Air India and Central
Board of Excise & Customs are in talks now to salvage the
situation for AI, the report relates.

According to the report, the service tax department froze the
airline's accounts last month, but the same was lifted after a
series of meetings with the officials of Air India and the
Central Excise Commissionerate, and on the guarantee that the
airline will pay the dues before the end of the year 2011.

                         About Air India

Air India Ltd -- 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.


AIR INDIA: Seeks INR300cr Monthly Aid from Parent to Survive
------------------------------------------------------------
The Economic Times reports that Air India Ltd sent a desperate
SOS to parent aviation ministry on Wednesday seeking a monthly
monetary support of INR250 to INR300 crore to survive.  The
letter makes the airline's state of penury clear with AI
admitting that its financial situation has come to such a pass
where it has not been able to pay tax deducted at source for two
to three months and aircraft rentals for one to two months, the
report says.

The Economic Times relates that the letter stated that AI has run
up a fuel bill of INR500 crore in India and another INR150 crore
abroad.  Apart from this, ET relates, there are unpaid airport
charges, service tax and several other vendor dues.  Servicing of
loans is also become an issue now with the airline now threatened
with non-performing asset tag if it's unable to pay interest by
the month-end, says ET.

The report notes that the aviation ministry has for months trying
to get government clearance for infusing INR30,000 crore into the
airline over next decade with immediate grant of INR6,600 crore
to pay all dues.  But this proposal remains just on paper, ET
relates.

In such a condition, the report states, AI has been unable to pay
salaries to employees and now five months' pay has become due.

                         About Air India

Air India Ltd -- 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.


A S P PVT: CRISIL Assigns 'CRISIL B+' Rating to INR7.6MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of A S P Pvt Ltd, part of the ASP group.

   Facilities                       Ratings
   ----------                       -------
   INR7.6 Million Term Loan         CRISIL B+/Stable (Assigned)
   INR111.6 Million Cash Credit     CRISIL B+/Stable (Assigned)
   INR5.8 Million Proposed Long-    CRISIL B+/Stable (Assigned)
     Term Bank Loan Facility
   INR35 Mil. Letter Of Guarantee   CRISIL A4 (Assigned)

The ratings reflect ASPL's modest scale of operations and weak
financial risk profile, marked by a small net worth and weak debt
protection metrics. These rating weaknesses are partially offset
by the extensive industry experience of ASPL's promoters and
established relationships with customers.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of ASPL and its group firm, Steel and
Fence Corporation, collectively referred to as the ASP group.
This is because both entities have significant operational
linkages, are in the same line of business, and are managed by
the same promoters.

Outlook: Stable

CRISIL believes that the ASP group will benefit over the medium
term from its promoter's extensive industry experience and its
established relationship with customers. The outlook may be
revised to 'Positive' if the ASP group's revenues and
profitability increase significantly along with improvement in
working capital management, resulting in an improved financial
risk profile. Conversely, the outlook may be revised to
'Negative' if the group faces significant pressure on its
revenues and profitability, there are considerable delays in
realisation of receivables, or it undertakes a larger-than-
expected, debt-funded capital expenditure programme.

                          About the Group

Set up in 1961 as Associated Steel Products Corporation Pvt Ltd,
the entity based in Howrah (West Bengal) manufactures hot-dipped
galvanised fasteners that are used in transmission line towers.
Its product profile includes nuts, bolts, washers, screws, and
rivets. In 1979, the company was taken over by the present
management led by Mr. Vinod Kumar Sharma and Mr. Arun Kumar
Sharma, and renamed ASPL in 1995. ASPL has two units in Howrah,
with a total capacity of around 8000 tonnes per annum (tpa). Unit
2 is under development and is expected to be fully operational by
around May 2012 with an additional capacity of 9790 tonnes. ASPL
has 70 to 80 clients, with Power Grid Corporation Ltd, National
Thermal Corporation Ltd, Gammon India Limited, Tata Projects Ltd,
KEC International Ltd among its key clients. SFC, a group firm in
the same line of business has a capacity of around 150 tonnes per
month.

ASP(standalone) reported a profit after tax (PAT) of INR3.8
million on net sales of INR402.6 million for 2010-11 (refers to
financial year, April 1 to March 31), as against a PAT of INR3.2
million on net sales of INR385.6 million for 2009-10.


GEM MULTICOLOR: Delay in Loan Servicing Cues CRISIL Junk Ratings
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the bank facilities
of Gem Multicolor Print & Pack India Ltd.  The rating reflects
instances of delay by GMPL in servicing its debt; the delays have
been caused by the company's weak liquidity.

   Facilities                         Ratings
   ----------                         -------
   INR5.2 Million Term Loan           CRISIL D (Assigned)
   INR25 Million Standby Line         CRISIL D (Assigned)
   of Credit
   INR2.5 Million Working Capital     CRISIL D (Assigned)
   Demand Loan
   INR43 Million Cash Credit          CRISIL D (Assigned)
   INR4 Million Proposed Long-Term    CRISIL D (Assigned)
   Bank Loan Facility

GMPL also has a weak financial risk profile, marked by a high
gearing, small net worth, and weak debt protection metrics, and
modest scale of operations in a fragmented industry. These rating
weaknesses are partially offset by the extensive industry
experience of GMPL's promoters in printing industry.

                       About Gem Multicolor

Incorporated in 1989 by the Gupta family, GMPL is engaged in
offset printing of educational books, brochures, newsletters,
printing of cartons, labels, and posters for several government
educational departments and political parties during elections.
Most of the orders executed by GMPL are for state governments and
various political parties. The company has an installed capacity
of about 40 tonnes per day.

GMPL reported a profit after tax (PAT) of INR0.6 million on net
sales of INR57.8 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR3 million on net
sales of INR76.3 million for 2009-10.


IDBI BANK: Moody's Affirms (P)Ba2 Rating on Jr. Sub. Debt Program
-----------------------------------------------------------------
Moody's Investors Service has affirmed IDBI Bank's ratings of
Baa3/P-3 for local currency deposits, Baa3 for foreign currency
(FC) senior unsecured debt, (P)Baa3 for FC senior unsecured debt
program, (P)Ba1 for FC subordinated debt program and (P)Ba2 for
FC junior subordinated debt program. Its foreign currency deposit
rating is also affirmed at Baa3/P-3. Moody's has also affirmed
its bank financial strength rating (BFSR), or stand-alone rating,
at D-, mapping to a baseline credit assessment (BCA) of Ba3.

All ratings carry stable outlooks.

Ratings Rationale

"The ratings affirmation considers IDBI's improving financial
position, driven by rising net interest margins; its developing
retail franchise, as a commercial bank; and improved capital
levels after last year's equity infusion by the Indian
government", says Vineet Gupta, a Moody's Vice President and
Senior Analyst.

"While the Indian operating environment is challenging, with
asset quality likely to deteriorate, IDBI's ratings have
sufficient cushion to absorb our base case assumptions for rising
NPLs", adds Mr. Gupta.

IDBI's income levels have been rising continuously, supported by
rises in net interest income and fee income. During 1H-FY2012
ending September 2011, net interest margins increased to 2.03%
from 1.94% in 1H-FY2011, driven by a rise in yields on funds,
supporting a 25% increase in net income to INR 8.51 billion. "Its
return on assets increased to 0.69% in the six-month period ended
September 2011 (0.61% end-September 2010), and compares well to
other Baa3-rated peers", adds Mr. Gupta.

However, asset quality indicators are deteriorating. Its gross
NPLs -- as a percentage of gross loans -- increased to 2.47% as
of end-September 2011 (1.88% as of end September 2010), mainly
due to higher NPL formation.  "Over the next few quarters, given
the local economic slowdown and the large size of its
restructured loan portfolio of nearly 5% of gross loans, IDBI's
asset quality indicators could further deteriorate", adds Mr.
Gupta.

IDBI's funding profile continues to be dominated by borrowings
and bulk deposits, given its legacy as a development financial
institution, although it is steadily developing its retail
deposit base. "In our view, the share of borrowings and bulk
deposits is high as compared to other Baa3-rated peer public-
sector Indian banks. Furthermore, although the bank's deposits
have grown, this has been at the expense of increasing asset and
liability mismatches in the >3month maturity bucket, although its
large portfolio of mandatory government securities provides
liquidity support", says Mr. Gupta.

The rating outlook remains stable.

The bank's ratings could be upgraded if it significantly improves
its retail deposit franchise by reducing its dependence on bulk
deposits and market borrowings to less than 5% of total funding;
controls the formation rate of fresh NPLs and keeps net NPLs to
net loans below 1.5%, while improving its return on assets to
over 1%; and maintains core tier I capital ratios of over 8% for
an extended period. An upgrade of its foreign currency bank
deposit rating of Baa3/P-3 would be contingent upon an upgrade in
the bank financial strength rating and country ceiling.

The bank's ratings could be downgraded if net NPLs increase to
2.25% of net loans, and/or if there is a decline in the return on
assets to below 0.5%. If the bank fails to maintain its core tier
I capital ratio of 7% or above, the BFSR would see downward
pressure. Any decline in the bank's deposit franchise --
demonstrated by a fall in the market share to below 3%, or any
further increase in the proportion of bulk deposits or market
funding in its total funding mix -- would also likely trigger a
rating revision.

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology published in March 2007 and
Moody's Guidelines for Rating Bank Hybrid Securities and
Subordinated Debt published in November 2009.

IDBI Bank, headquartered in Mumbai, had assets of
INR 2,533.77 billion as of March 31, 2011.


KINGFISHER AIRLINES: DVB Bank May Repossess Two Airbus A320
-----------------------------------------------------------
The Economic Times reports that Germany's DVB Bank SE said it may
repossess two Airbus A320 aircraft from troubled Kingfisher
Airlines Ltd if the carrier failed to meet its commitment to the
lender in due time.

The cash-strapped Kingfisher, controlled by liquor baron Vijay
Mallya, is having trouble making interest payments and paying
salaries, the report says.

"It is a painful situation, it requires a lot of time and work,"
Bertrand Grabowski, a member of the board at the bank who
oversees the aviation business, told Reuters in an interview on
Friday.

"We have said to Vijay (Mallya) that we cannot continue like
this. If we are not paid on due time we will certainly consider
repossession of the aircraft," Mr. Grabowsk added, while
declining to comment if there is a certain deadline that the bank
has set, ET reports.

Last month, the report recalls, tax officials froze several of
Kingfisher's bank accounts for failure to pass on to the
government the service taxes that are included in ticket prices.
According to Bloomberg, the finance ministry said the carrier has
until March to pay the outstanding service tax.

The Economic Times relates that Mr. Grabowski said the amount of
loan that DVB has extended to Kingfisher was not significant to
its $10 billion aviation portfolio and said the carrier is the
only problem that DVB has in its aviation balance sheet.

                     About Kingfisher Airlines

Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops.  It maintains bases in major cities such as Delhi and
Mumbai.  Kingfisher Airlines is a unit of UB Holdings, best known
for its United Breweries unit, and the carrier shares the
Kingfisher brand with a popular Indian beer.  UB Holdings also
owns a stake in another domestic carrier, Air Deccan, whose
operations it combined with Kingfisher Airlines in mid-2008.
Kingfisher Airlines began flying in 2005.

                        *     *     *

Kingfisher Airlines lost money six years in a row, accumulating
net debt of INR77.2 billion (US$1.74 billion) as of March 2010,
according to data compiled by Bloomberg.

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 16, 2011, The Economic Times said Kingfisher Airlines Ltd.
has found itself parrying questions about its survival after its
auditor raised doubts over the company's ability to stay in
business for long.  Audit firm BK Ramadhyani & Co, which
examined the books of the airline, said in remarks published in
the airline's annual report that Kingfisher's ability to remain a
"going concern" will depend on its promoters bringing in money
into the company.  The auditors also said Kingfisher has not
deposited with the government money it collected from employees
as tax deducted at source and provident fund contribution,
painting a dire picture of the airline's finances, The Economic
Times reported.


KSM SPINNING: Delay in Loan Repayment Cues CRISIL Junk Ratings
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of KSM
Spinning Mills Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.

   Facilities                       Ratings
   ----------                       -------
   INR150.0 Million Cash Credit     CRISIL D (Downgraded from
                                            CRISIL B+/Stable)

   INR220.9 Million Term Loan       CRISIL D (Downgraded from
                                           CRISIL B+/Stable)

   INR37.2 Mil. Bank Guarantee      CRISIL D (Downgraded from
                                                  CRISIL A4)

   INR30.0 Mil. Letter of Credit    CRISIL D (Downgraded from
                                                  CRISIL A4 )

The downgrade reflects instances of delay by KSM in servicing the
instalment and interest on its term loans; the delays have been
caused by the company's weak liquidity driven by slowdown in the
textiles industry.

KSM also has a weak financial risk profile, marked by a moderate
net worth, a high gearing, and weak debt protection metrics, and
large working capital requirements; moreover, its margins are
vulnerable to volatility in input prices and it has a small scale
of operations in the intensely competitive yarn industry. KSM,
however, benefits from its promoters' extensive experience in the
yarn trading business and its healthy revenue growth in the past.

                        About Spinning Mills

KSM was incorporated by Mr. Vipan Kumar Mittal and his family
members in 2004 as a closely held public limited company to
manufacture polyester and cotton yarn. The company supplies to
hosiery and knitting units. KSM has set up a spinning mill in
Ludhiana (Punjab) with current capacity of about 32,000 spindles.
The company's output comprises cotton yarn (50 per cent),
polyester yarn (20 per cent), and blended cotton polyester cotton
yarn (30 per cent).

KSM reported a profit after tax (PAT) of INR31.6 million on an
operating income of INR1072 million for 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR15.6
million on an operating income of INR766.8 million for 2009-10.


LAKSHAY ORNAMENTS: CRISIL Puts 'CRISIL B+' Rating on INR55MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the long-term bank
facilities of Lakshay Ornaments Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR55 Million Cash Credit        CRISIL B+/Stable (Assigned)
   INR2.5 Million Standby Line      CRISIL B+/Stable (Assigned)
    of Credit

The rating reflects LOPL's weak financial risk profile, marked by
a small net worth and large working capital requirements leading
to high gearing, and vulnerability to volatility in diamond and
gold prices and hedging policy. These rating weaknesses are
partially offset by the extensive experience of LOPL's promoter
in the gold and diamond jewellery business.

Outlook: Stable

CRISIL believes that LOPL will continue to benefit over the
medium term from its promoter's extensive industry experience.
The outlook may be revised to 'Positive' if the company's
turnover and profitability improves significantly and on a
sustained basis or if any large fresh equity infusion
significantly improves LOPL's financial risk profile. Conversely,
the outlook may be revised to 'Negative' if the company's
liquidity deteriorates or there is higher-than-expected increase
in gearing, most likely on account of longer debtors or inventory
cycles.

                      About Lakshay Ornaments

LOPL was incorporated in 2005 as Harison Impex by Mr. Ashwini
Singla to export diamond and gold jewellery; the company
subsequently acquired its current name. LOPL currently gets
diamond and gold jewellery manufactured on jobwork basis and
sells it to various showrooms and other jewellers in and around
Delhi. Mr. Singla has been trading gold and diamond jewellery
since 1998 and also promoted Harison Diamond Pvt Ltd in 2003.

LOPL reported a profit after tax (PAT) of INR1.2 million on net
sales of INR429.3 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.5 million on net
sales of INR320.9 million for 2009-10.


LAKSHMI ENERGY: CRISIL Cuts Rating on INR4BB Loan to CRISIL BB+
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Lakshmi Energy & Food Ltd to 'CRISIL BB+/Negative/CRISIL A4+'
from 'CRISIL BBB/Stable/CRISIL A3+'.

   Facilities                     Ratings
   ----------                     -------
   INR4000 Million Cash Credit    CRISIL BB+/Negative (Downgraded
                                        from 'CRISIL BBB/Stable')

   INR1139.3 Million Term Loan    CRISIL BB+/Negative (Downgraded
                                        from 'CRISIL BBB/Stable')

   INR10.7 Mil. Proposed Long-    CRISIL BB+/Negative (Downgraded
   Term Bank Loan Facility              from 'CRISIL BBB/Stable')

   INR100 Mil. Letter of Credit   CRISIL A4+ (Downgraded from
   & Bank Guarantee                             'CRISIL A3+')

The downgrade reflects CRISIL's belief that LEFL's business
performance will be weaker than earlier expected and its gearing
will increase, thereby adversely impacting its debt protection
metrics and financial flexibility, over the medium term. LEFL's
performance will continue to be impacted by the weakened
performance of its agri-business division and by the absence of
any operations at its high-margin bio-mass power production plant
in 2010-11 (refers to financial year, October 1 to September 30).
LEFL's high gearing is on account of its large inventory
requirements for its agri-business division. The gearing is
expected to remain high over the medium term because of the
company's working-capital-intensive operations and planned debt-
funded capital expenditure (capex) programme.

The ratings continue to reflect LEFL's large scale of operations
supporting its market position in the basmati rice market in
Punjab, and its moderate operating efficiency. These rating
strengths are partially offset by LEFL's vulnerability to
regulatory and pricing risks and its below-average financial risk
profile marked by high gearing and modest debt protection
metrics.

Outlook: Negative

CRISIL believes that LEFL's profitability will be lower than
earlier expected because of expected weakening in the performance
of its agri-business and bio-mass power production divisions over
the medium term. The company's financial risk profile is expected
to remain constrained because of working-capital-intensive
operations and large, debt-funded capex programmes planned for
the medium term. The ratings may be downgraded in case of further
deterioration in LEFL's financial risk profile, particularly its
debt protection metrics, most likely due to weaker-than-expected
profitability or larger-than-expected debt-funded capex plan.
Conversely, the outlook may be revised to 'Stable' if there is a
significant and sustained increase in LEFL's sales and
profitability, improvement in its financial risk profile
supported by healthy cash accruals, and successful implementation
of its planned capex.

                       About Lakshmi Energy

LEFL runs an integrated rice mill in Khamanon, on the Chandigarh-
Ludhiana section of National Highway 9, in Punjab. Incorporated
in 1981 by the company's current managing director and chairman,
Mr. Balbir Singh Uppal, LEFL is one of the larger rice millers in
the region, with an installed paddy processing capacity of 1.19
million tonnes per annum. LEFL has installed an integrated 30
megawatt-(MW) power plant and matching facilities for
manufacturing rice bran, oil, cattle feed, and de-oiled cakes,
among other products. The company has large, debt-funded capex
plans for capacity expansion in both its agriculture and energy
businesses.

For 2010-11, LEFL reported a profit after tax (PAT) of INR134.8
million on net sales of INR10.38 billion, against a PAT of
INR831.3 million on net sales of INR11.70 billion for 2009-10.


PARTAP SPINTEX: CRISIL Upgrades Rating on INR281.4MM Loan to 'BB'
-----------------------------------------------------------------
CRISIL has upgraded its long term rating on the bank facilities
of Partap Spintex Limited to 'CRISIL BB/Stable' from 'CRISIL BB-
/Positive' while reaffirming the short term rating at 'CRISIL
A4+'.

   Facilities                          Ratings
   ----------                          -------
   INR281.4 Million Term Loan          CRISIL BB/Stable(Upgraded
   (Reduced from INR310.5 million)     from CRISIL BB-/Positive)

   INR140.0 Mil. Warehouse Financing   CRISIL BB/Stable(Assigned)

   INR132.5 Million Cash Credit        CRISIL BB/Stable(Upgraded
   (Enhanced from INR110.0 million)    from CRISIL BB-/Positive)

   INR1.3 Million Proposed Long-Term   CRISIL BB/Stable(Assigned)
   Bank Loan Facility

   INR15.0 Million Bank Guarantee      CRISIL A4+(Reaffirmed)
   (Enhanced from INR9.7 million)

The rating upgrade reflects improvement in PSL's business and
financial risk profiles. The improvement in the company's
business risk profile factors in its successful implementation of
forward integration plant with which it has diversified its
activities from cotton yarn to denim fabric; this is in turn
reflected in the company's topline, which grew by 70 per cent in
2010-11 vis--vis 2009-10, along with stable margins of 11 per
cent and healthy capacity utilisation, despite volatility in the
cotton prices. PSL is currently fully utilising its yarn and
fabric capacities. PSL's improvement in financial risk profile
factors in CRISIL's belief that the company will maintain its
moderate liquidity over the medium term, marked by healthy cash
accruals. PSL is expected to post accruals of over INR100 million
over the medium term vis--vis term obligations of around INR60
million. CRISIL believes that PSL's liquidity will be adequate,
supported by steady margins and cash accruals to meet maturing
debt obligations of around INR60 million per annum, over the
medium term.

The ratings reflect PSL's established market position &
distribution network, its healthy operating capabilities, and
moderate financial risk profile, marked by above-average debt
protection metrics and a moderate net worth. These rating
strengths are partially offset by PSL's vulnerability to
cyclicality inherent in the denim industry, high customer
concentration in revenues, and susceptibility of operating margin
to volatility in cotton prices.

Outlook: Stable

CRISIL believes that the PSL will benefit over the medium term
from its established market position & distribution network in
the denim industry and its healthy operating capabilities. The
outlook may be revised to Positive in case of further improvement
in its liquidity position, due to improvement in the working
capital management or if there is a significant improvement in
PSL's gearing level, most likely due to improvement in net worth,
leading to improvement in PSL's financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case PSL
undertakes larger-than-expected debt-funded capital expenditure
(capex) programme or there is a decline in operating margins or
deterioration in working capital management, impacting its
financial risk profile.

                       About Partap Spintex

Incorporated in 1989, PSL is promoted by Mr. Surender Bansal and
has been manufacturing cotton and polyester yarn since 2006.
Previously, it processed edible; PSL's oil processing units have
been shifted to its associate companies. PSL's plant in Bhatinda
(Punjab) has a capacity of 24,000 spindles for manufacturing ring
frame yarn. In 2009-10, it set up a fabric manufacturing plant in
Ambala (Punjab) with a capacity of 300,000 metres per annum
(mpa), which was increased to 700,000 mpa.

PSL reported a profit after tax (PAT) of INR 37 million on net
sales of INR 1,704 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR 16 million on net
sales of INR 994 million for 2009-10.


PEERLESS HOSPITEX: Fitch Assigns 'Fitch B-' National LT Rating
--------------------------------------------------------------
Fitch Ratings has assigned India's Peerless Hospitex Hospital and
Research Center Limited a National Long-Term rating of
'Fitch B-(ind)'.  The Outlook is Stable.

The ratings reflect Peerless Hospital's weak liquidity position
on account of EBIDTA losses incurred in the financial year ended
March 2011 (FY11: INR15.6 million) and H1FY12 (INR1.4 million),
making the company dependent on its parent entity -- Peerless
General Finance and Investment Company Limited (PGFICL, a 91.9%
stakeholder) -- for debt servicing.

The losses were a result of a dip in revenue to INR560.9 million
in FY11 from INR575.4 million in FY10 and an increase in
operating costs to INR584.6 million from INR534.8 million.  The
revenue decline was on account of the hospital's damaged
reputation following an incidence of alleged medical negligence
in a road accident case in April 2010.

The ratings also factor in the financial support extended by
PGFICL, which infused equity of INR152m into the subsidiary in
December 2011 through a rights issue.

Positive rating guidelines include Peerless Hospital generating
positive EBITDA on a sustained basis.  Negative rating guidelines
include lack of support from the parent company, or continuation
of negative EBITDA.

Peerless Hospital is a 300-bedded, Kolkata-based, multi-specialty
hospital operational since 1993. Revenue for H1FY12 was
INR355.1m.

Fitch has also assigned ratings to Peerless Hospital's bank
facilities as follows:

  -- INR145m term loans: 'Fitch B-(ind)'
  -- INR50m fund based limits: 'Fitch B-(ind)'


POWER SPINNING: Fitch Migrates Rating to Non-Monitored Category
---------------------------------------------------------------
Fitch Ratings has migrated India-based Power Spinning Mills'
'Fitch B+(ind)' National Long-Term rating with a Stable Outlook
to the "Non-Monitored" category.  This rating will now appear as
'Fitch B+(ind)nm' on the agency's website.

The ratings have been migrated to the non-monitored category due
to lack of adequate information, and Fitch will no longer provide
ratings or analytical coverage of PSM.  The ratings will remain
in the non-monitored category for a period of six months and be
withdrawn at the end of that period.  However, in the event the
issuer starts furnishing information during this six-month
period, the ratings could be re-activated and will be
communicated through a Rating Action Commentary.

Fitch has also migrated PSM's bank loans to the non-monitored
category as follows:

  -- INR49.16m long-term loans: migrated to 'Fitch B+(ind)nm'
     from 'Fitch B+(ind)'

  -- INR30m fund-based working capital limits: migrated to 'Fitch
     B+(ind)nm'/'Fitch A4(ind)nm' from 'Fitch B+(ind)'/'Fitch
     A4(ind)'

  -- INR20m non-fund based working capital limits: migrated to
     'Fitch B+(ind)nm'/'Fitch A4(ind)nm' from 'Fitch B+
     (ind)'/'Fitch A4(ind)'


SWAN SILK: CRISIL Cuts Rating on INR119.5MM Loan to 'CRISIL BB-'
----------------------------------------------------------------
CRISIL has downgraded its ratings on Swan Silk (P) Ltd's bank
facilities to 'CRISIL BB-/Negative/CRISIL A4' from 'CRISIL BBB-
/Negative/CRISIL A3'.

   Facilities                     Ratings
   ----------                     -------
   INR119.50 Million Proposed     CRISIL BB-/Negative (Downgraded
   Long-Term Bank Loan Facility        from CRISIL BBB-/Negative)

   INR10.00 Million Foreign Bill  CRISIL A4 (Downgraded from
   Discounting                               CRISIL A3)

   INR45.00 Mil. Export Packing    CRISIL A4 (Downgraded from
   Credit                                     CRISIL A3)

   INR40.00 Million Letter of      CRISIL A4 (Downgraded from
   Credit                                     CRISIL A3)

The downgrade reflects CRISIL's belief that Swan Silk's business
risk profile will remain constrained over the medium term because
of pressure on the company's revenues and profitability. Swan
Silk's revenues declined to INR234 Million in 2010-11 (refers to
financial year, April 1 to March 31) from INR290 Million in 2009-
10, because of slowdown in demand from export markets; the
company reported revenues of INR158 million for the eight months
ended November 30, 2011. The demand for the company's products
has not picked up yet, leading to consistent decline in its scale
of operations. Decline in Swan Silk's topline led to an operating
margin of negative 1.6 per cent for 2010-11 and negative 6.8 per
cent for the period April to November 2011, against an operating
margin of 5.3 per cent for 2009-10; the company is likely to
report operating losses over the near term. Although Swan Silk
does not have any term debt obligations, it will depend on
promoters' funding support for meeting its cash losses over the
medium term.

The ratings reflect Swan Silk's established market position of
more than two decades in the silk fabrics export market and the
company's integrated processing operations.These rating strengths
are partially offset by Swan Silk's weak financial risk profile,
marked by weak debt protection metrics on account of operating
losses and moderate net worth, and geographic concentration in
its revenue profile.

Outlook: Negative

CRISIL believes that Swan Silk's revenues and profitability will
not improve significantly over the medium term. The ratings may
be downgraded if Swan Silk reports sustained losses without
adequate infusion by promoters, thereby impairing its liquidity,
or if the company contracts any long-term debt. Conversely, the
outlook may be revised to 'Stable' if the pressure on Swan Silk's
business risk profile reduces, most likely because of increase in
export orders leading to increased revenue visibility and a
sustained increase in cash accruals.

                          About Swan Silk

Swan Silk is a closely held company, incorporated in 1976. It
exports premium-quality silk fabrics and made-ups to the US and
the EU. The company has integrated operations, with dyeing,
weaving, and embroidery functions. Its units are located in
Bengaluru (Karnataka), Nandi (Karnataka), and Surat (Gujarat).

For 2010-11, Swan Silk reported a net loss of INR36 million on
net sales of INR229 million, against a net loss of INR12 million
on net sales of INR280 million for the previous year.


TEXCEL INTERNATIONAL: CRISIL Rates INR70-Mil. Loan at 'CRISIL C'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL C/ CRISIL A4' ratings to the bank
facilities of Texcel International Pvt Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR70 Million Term Loan           CRISIL C (Assigned)
   INR110 Million Cash Credit        CRISIL C (Assigned)
   INR20 Million Cash Credit         CRISIL C (Assigned)
   INR50 Million Letter of Credit    CRISIL A4 (Assigned)

The ratings reflect instances of delay by TIPL in servicing its
debt due to weak liquidity, its highly working-capital-intensive
operations, and its weak financial risk profile, marked by a high
gearing, small net worth, and weak debt protection metrics. These
rating weaknesses are partially offset by TIPL's established
regional position in the fabrication and precision components
segment.

                     About Texcel International

Established in 2001 and based in Chennai (Tamil Nadu), TIPL
manufactures precision components required by the automobile,
engineering, and related industries. TIPL's core competence is in
offering material handling solutions for the automobile industry,
manufacturing auto components, and fabrication of steel racks,
pallets, heavy equipments, such as pressure vessels, HSD tanks,
cement mill equipment, and equipment for the chemical and
engineering industries. TIPL was set up by the late Mr. R
Rajalingam and is being currently managed by its managing
director, Mr. Kumar Narayanan.

TIPL reported a net losses of INR52 million on net sales of
INR219 million for 2010-11 (refers to financial year, April 1 to
March 31), as against a net losses of INR0.20 million on net
sales of INR295 million for 2009-10.


TUFF TUBES: CRISIL Assigns 'CRISIL B' Rating to INR77MM Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/ Stable/ CRISIL A4' ratings to
the bank facilities of Tuff Tubes Pvt Ltd, part of the Tuff Tubes
group.

   Facilities                        Ratings
   ----------                        -------
   INR77 Million Cash Credit         CRISIL B/Stable (Assigned)
   INR60 Million Letter of Credit    CRISIL A4 (Assigned)
   INR10 Million Bank Guarantee      CRISIL A4 (Assigned)

The ratings reflect the Tuff Tubes group's working-capital-
intensive operations, exposure to project implementation risks,
and marginal presence in the intensely competitive industry.
These rating weaknesses are, however, partially offset by the
diversified business experience of the promoters being leveraged
into the Tuff Tubes group.

For arriving at the ratings, CRISIL has combined the business and
financial risk profile of TTPL and Tuff Tubes (Orissa) Pvt Ltd,
together referred to as Tuff Tubes group. This is because both
the companies have significant operational and financial linkages
among each other, and sell their products under the brand name
Tuff Tubes.

Outlook: Stable

CRISIL believes that the Tuff Tubes group will continue to
benefit over the medium term from its promoter's considerable
experience in diversified businesses and its relationship with
its customers and suppliers. The outlook may be revised to
'Positive' in case the group reports better-than-expected cash
accruals or improvement in its working capital management,
thereby improving its financial risk profile. Conversely, the
outlook may be revised to 'Negative' in case the Tuff Tubes group
reports deterioration in its financial risk profile, because of
larger than expected debt-funded capex plans or any cost or time
overrun in project implementation.

                           About the Group

TTPL was acquired by Mr. Raja Bhadra in December 2008; it
manufactures polyvinyl chloride pipes (PVC). The ISO 9001: 2008-
certified company has a manufacturing unit at Barjora in Bankura
(West Bengal) with capacity of 720 tonnes per month (tpm). The
group supplies a majority of its products directly/indirectly to
government bodies and agencies and in the domestic market through
contractors/dealers.

TTOPL, incorporated in 2010, also manufactures PVC pipes with
capacity of 350 tpm in Cuttack (Orissa).

The Tuff Tubes group reported a profit after tax (PAT) of INR0.4
million on net sales of INR224.5 million for 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR1.5
million on net sales of INR129.2 million for 2009-10.


VANDANA PACKAGING: CRISIL Puts 'CRISIL B' Rating on INR60MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Vandana Packaging Private Limited.

   Facilities                       Ratings
   ----------                       -------
   INR60.0 Million Term Loan        CRISIL B/Stable (Assigned)
   INR20.0 Million Cash Credit      CRISIL B/Stable (Assigned)
   INR2.7 Million Proposed Long-    CRISIL B/Stable (Assigned)
    Term Bank Loan Facility
   INR2.3 Million Bank Guarantee    CRISIL A4 (Assigned)

The ratings reflect expected deterioration in financial risk
profile of the company, due to debt funded capex and pressure on
debt protection metrics, and vulnerability of its operating
margin to volatility in raw material prices and fragmented nature
of the packaging industry. These rating weaknesses are partially
offset by the extensive experience of the VPPL's promoters in the
industry and established customer relationships.

Outlook: Stable

CRISIL believes that VPPL will continue to benefit over the
medium term from its promoters' extensive experience in and its
established relationships with customers. However, its financial
risk profile is expected to remain constrained. The outlook may
be revised to 'Positive' if company reports better than expected
scale of operations and cash accruals leading to improve
financial risk profile. Conversely, the outlook may be revised to
'Negative' if it generates lower-than-expected revenues and
operating margin or if its financial risk profile deteriorates
due to significant increase in its working capital requirements
or if the group undertakes higher-than-expected debt-funded
capital expenditure.

                      About Vandana Packaging

Set up in 1996, VPPL is engaged in the manufacture and printing
of corrugated boxes used in packaging by fast-moving consumer
goods (FMCG) sector. The company's manufacturing facility located
in Meerut, Uttar Pradesh has a manufacturing capacity of about
20,000 boxes per day.

VPPL reported a profit after tax (PAT) of INR1.2 million on net
sales of INR97.0 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR1.3 million on net
sales of INR72.2 million for 2009-10.


VEDANTA RESOURCES: Moody's Cuts Sr. Unsec. Bond Rating to 'Ba3'
---------------------------------------------------------------
Moody's has affirmed Vedanta Resources Plc's Corporate Family
Rating of Ba1 but has lowered the Senior Unsecured Bond Rating to
Ba3 from Ba2. The outlook on both ratings is maintained at
negative.

Ratings Rationale

This rating action follows the completion of the acquisition of a
controlling stake in Cairn India Ltd., on December 8. First
announced in August 2010, Vedanta has successfully negotiated the
course of approvals, objections and amended production contract
arrangements and now holds 38.5% of CIL directly, with a further
20% of CIL held by Sesa Goa Ltd., Vedanta's 55.1%-owned
subsidiary.

While the acquisition of CIL should considerably enhance the
Group's EBITDA, Moody's concern is with the sharply higher debt
burden placed on the Parent company. In order to lift its stake
from 28.5% to 58.5%, Vedanta drew USD2.78 billion from its pre-
arranged acquisition facilities. Coupled with the issue of
USD1.65 billion of bonds in June 2011, debt at the Parent company
level is now in excess of USD9 billion on a pro forma basis. This
compares with a reported Parent equity of USD1 billion at FYE
March 2011.

"In the normal course of events we are concerned about
subordination risk for unsecured bondholders in a holdco due to
the presence of priority debt in operating subsidiaries, but in
Vedanta's case our key concern is the sustainability of bank-like
balance sheet gearing at the Parent company," says Alan Greene, a
Moody's Vice President -- Senior Credit Officer.

"While some of the Parent debt is backed by intercompany loans,
the bulk of debt has been applied towards acquisitions. Unless
refinanced with more debt, acquisition debt servicing relies on
equity returns. Sporadic efforts have been made to offset the
lack of parent company profits and to move cash to the Parent
level but the ability to declare regular dividends from the
operations, chiefly in India, and to upstream these via the
intermediate holding companies, is not well established", adds
Mr. Greene, also Moody's lead analyst for Vedanta.

"The overall negative outlook is maintained given our continuing
and various concerns about the Group. The likely timeframe of the
negative outlook is an opportunity for Vedanta to tackle some of
these areas -- namely to improve the group structure, to work
through some regulatory challenges in India and of course to bed-
in the large Cairn acquisition", continues Mr. Greene.

The negative outlook also reflects the slower rate of growth
being seen in India. Already the impact of the depreciating rupee
has been seen with earnings attributable to equity holders of
Vedanta falling to USD28 million in the six months to
September 2011, largely as a result of net mark to market losses
on financing arrangements at the Indian subsidiaries. Excluding
these and other special items, underlying attributable profit was
USD186 million for 1H FY12. However, a depreciating rupee
generally supports profitability as revenue is USD-linked while
the bulk of costs are in rupees.

The outlook could be stabilized if Vedanta 1) successfully
integrates CIL, with evidence of a stable and sustainable
production and business profile; 2) cash flow from dividends and
equity realizations materialize in a regular fashion.

There is limited upward pressure on the rating over the near to
medium term. Positive momentum could build if the company
demonstrates the ability to streamline its complex corporate
structure, the planned expansion projects start generating
expected returns and there is evidence of a stable and
sustainable business profile for the company. The group would
also have to demonstrate the following financial metrics on a
sustainable basis: CFO (less dividends)/Adjusted debt over 25% -
30%, Adjusted Debt/ EBITDA below 2.5x -3.0x, and EBIT interest
coverage over 5.0x -- 6.5x.

Conversely, the ratings could come under downward pressure if the
company faces further challenges in the oil and gas operations
under CIL; 2) the parent remains thinly capitalized with less
than expected dividends upstreamed from the core operating
subsidiaries; 3) undertakes further acquisitions, investments or
shareholder remuneration policies that include incremental debt;
or 4) it fails to satisfactorily execute its expansion projects.

Credit metrics that Moody's would consider for a ratings
downgrade include CFO (less dividends)/Adjusted Debt below 15%,
Adjusted Debt to EBITDA exceeding 3.5-4.0x, or EBIT interest
coverage declining to 3.5x or less on a sustained basis.

The principal methodology used in rating Vedanta was the Global
Mining Industry Methodology published in May 2009.

Headquartered in London, UK, Vedanta Resources plc is a metals
and mining company focusing on integrated zinc, aluminum, copper,
iron ore mining and commercial power generation. Its operations
are predominantly located in India. It is listed on the London
Stock Exchange and is 62.19% owned by Volcan Investments Ltd.


* Fitch: Indian Currency Fall Has Limited Impact on Int'l Ratings
-----------------------------------------------------------------
Fitch Ratings says that the depreciation of the Indian currency
observed thus far would have limited impact on the International
ratings of Indian corporates.

Fitch currently rates 19 Indian corporates on the international
rating scale.  Of these, seven are rated at 'BBB-' (five benefit
from sovereign support), eight are in the 'BB' rating category
and four are rated in the 'B' category.  Fitch analysed the
impact of the recent rupee depreciation on the operating margins
of these corporates as well as on their foreign currency
liabilities and their overall impact on cash flows and risks of
breaching the negative rating guidelines.

Ten companies import very negligible raw materials for production
as such their costs are neutral to forex fluctuation.  These
companies also have negligible exports and are unlikely to face
an operating margin squeeze.  Of the remaining, seven companies,
belonging mostly to the commodity/natural resources sector,
import raw materials typically in the range of 40% to 100% of
their requirements, and thus are expected to experience a
reduction in their operating profit in the range of 5% to 10%.
There are two companies whose exports outweigh imports and
therefore, are expected to benefit from rupee depreciation.

Twelve corporates have foreign currency debt (mostly USD),
ranging from 10% to 90% of total debt (with an average of 40%).
Of these, seven corporates are expected to face a marginal
deterioration in coverage ratios to the extent these foreign
currency loans are unhedged. Irrespective of the accounting
treatment that may be accorded to the increased forex liability,
Fitch would continue to focus on the economic impact of such
forex fluctuations.  The impact of the falling rupee on the
ability to service debt would be limited as the proportion of
debt which matures in next one to two years is limited.

Overall, among the 19 companies with international ratings, nine
companies would have a negligible direct impact of forex
fluctuation on either their operating margin or leverage ratios.
For the remaining, the impact on operating margin and leverage
ratio would be marginally negative.  However, these are unlikely
to cause a rating impact immediately.  While Fitch takes
conservative estimates of both profitability and capital
structure -- which presently provide cushion to the ratings, a
further 10% to 15% depreciation of rupee against USD could
potentially have a negative impact on some of the ratings.


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


ARPENI PRATAMA: Insolvency Case Goes Indonesian Court
-----------------------------------------------------
Bloomberg News reports that PT Arpeni Pratama Ocean Line won a
court order recognizing Indonesia as home to the shipping
company's main insolvency proceeding.

Bloomberg says the decision in U.S. Bankruptcy Court in Manhattan
gives the bankruptcy judge the right to enforce the rulings of
the Central Jakarta Commercial Court in the U.S.  The Indonesian
court will oversee the distribution of assets, meaning U.S.
creditors will need to file claims in Indonesia, according to
Bloomberg.

Bloomberg notes that the ruling may set an example for future
Indonesian debt restructuring decisions, whereby a foreign court
will accept a debtor's home jurisdiction.  The report says the
decision may mean that all creditors on Arpeni's $141 million
8.5% 2013 bonds will have to accept its offer to exchange the
securities for cash or floating-rate notes.

"International investors will now have to get their head around
the fact that bankruptcy law, as a creature of public policy, has
always been intended to trump creditors' contractual rights in
the debt instruments," Joe Bauerschmidt, a partner at Jones Day
(1113L) working on the case, told Bloomberg by telephone on
Jan. 12.  "Philosophically, this is the right step to make in an
international restructuring."

This step of prohibiting creditors from bringing actions to the
U.S. is "a little while in coming", Mr. Bauerschmidt told
Bloomberg.

PT Arpeni Pratama Ocean Line Tbk -- http://www.apol.co.id/-- is
Indonesia's leading diversified shipping company, owning and
operating the largest fleet of Indonesian flagged dry bulk
vessels.  Arpeni operates a fleet of general-purpose specialist,
such as their tweendecker MV Alas, which is designed to transport
dry cargoes such as plywood and agricultural products.  As of
June 30, 2011, Arpeni operated 77 wholly-owned vessels and two
vessels under long term charters.

Arpeni filed for bankruptcy protection on Dec. 12, 2011, in the
U.S. to block a group of dissident note holders from torpedoing
its debt restructuring in Indonesia.  Fida Unidjaja, as PT
Arpeni's foreign representative, estimated $500 million to
$1 billion in assets and liabilities in the Chapter 15 petition
(Bankr. S.D.N.Y. Case No. 11-15691) for the company.  Judge Allan
L. Gropper oversees the Chapter 15 case.  Fida Unidjaja is
represented by Pedro A. Jimenez, Esq., and Ross Barr, Esq., at
Jones Day.

Arpeni is seeking U.S. court recognition of its proceeding before
the Commercial Court at the Central Jakarta District Court
as a foreign main proceeding.  PT Bank Central Asia Tbk., an
unsecured lender, commenced the Jakarta proceeding on Aug. 5,
2011, which Arpeni voluntarily joined.  On Aug. 24, 2011, the
Jakarta Court issued a temporary suspension of debt payment
decision, effectively staying actions on claims against the
Foreign Debtor for an initial period of 45 days.

Throughout the proceeding, Arpeni remained in possession of and
continued its business while it restructured its debt.

On Dec. 9, 2009, Arpeni announced an informal payment moratorium
with certain of its creditors pursuant to which Arpeni ceased
making payments of interest or principal.

The trustee under the indenture with respect to the U.S. Notes on
Sept. 6, 2011, had accelerated the U.S. Notes and demanded
performance by the Debtor of its obligations as guarantor under
the U.S. Notes Indenture.

In the Jakarta proceeding, the Debtor sought and obtained
approval of a composition plan from the requisite percentage of
its creditors participating in the plan pursuant to Indonesian
bankruptcy law.  In particular, the Composition Plan was approved
by approximately 95% of the Debtor's secured creditors and 80% of
the Debtor's unsecured creditors, in each case present and voting
at a hearing before the Indonesian Court on Nov. 1, 2011 and
holding claims that had been verified for inclusion in the
Foreign Proceeding.  As provided in the Composition Plan as
embodied in the Settlement Agreement, on Nov. 18, 2011, Arpeni
launched an exchange offer and tender offer.


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


CORSAIR NO.2: S&P Puts 'BB-' Rating on Series 52 CDO on Watch Pos
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch with
positive implications its rating on Corsair (Jersey) No. 2 Ltd.'s
series 52 synthetic collateralized debt obligation (CDO)
transaction.

"During our monthly run of transactions on version 5.1 of our CDO
evaluator, the tranche placed on CreditWatch positive had
synthetic rated overcollateralization (SROC) levels in excess of
100% at higher ratings than the current rating as of Jan. 9,
2012," S&P said.

"For all the transactions that we ran on our CDO evaluator, we
applied the top obligor and industry test SROCs, as well as the
results of the Monte Carlo default simulation," S&P said.

"By the end of the month, we intend to review the tranche, the
rating of which we placed on CreditWatch positive, along with any
other tranches with ratings that are presently on CreditWatch
negative or positive, in accordance with our current CDO
criteria," S&P said.

                Standard & Poor's 17g-7 Disclosure Report

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:

         http://standardandpoorsdisclosure-17g7.com

Rating Placed On Creditwatch Positive
Corsair (Jersey) No. 2 Ltd.
Floating rate secured portfolio credit-linked series 52
(Portfolio F360)
To                     From         Issue amount
BB- (sf)/Watch Pos     BB- (sf)     JPY1.0 bil.


CSC SERIES 1: S&P Lowers Ratings on 3 Classes of Bonds to 'CC'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CC (sf)' from
'CCC- (sf)' its ratings on the class E-2, E-3, and F-3 bonds
issued under the CSC, Series 1 GK transaction. "At the same time,
we affirmed our ratings on the class B-2, B-3, C-2, and D-2 bonds
issued under the same transaction. We lowered to 'D (sf)' our
ratings on the interest-only (IO) class X bonds and the class G-3
bonds on Feb. 1, 2011, and Feb. 17, 2011, respectively. Classes
A-2 and A-3 were fully redeemed in November 2011," S&P said.

"Of the 11 loans that initially backed the bonds, only two loans
remain. We lowered our ratings on classes E-2, E-3, and F-3
because, although the sale of the property backing one of the
transaction's two remaining loans has been completed, we have
found that the outstanding principal balance of the loan exceeds
the amount of proceeds collected through the sale of the property
in question. The loan, which was backed by a regional retail
property, originally represented about 8% of the total initial
issuance amount of the bonds. We intend to lower to 'D (sf)' our
ratings on the three classes that we downgraded if losses are
incurred at the transaction level in the future. In addition, we
affirmed our ratings on classes B-2, B-3, C-2, and D-2 because we
do not expect these four classes to incur losses following the
sale of the above regional retail property," S&P said.

CSC, Series 1 GK is a multiborrower commercial mortgage-backed
securities (CMBS) transaction. The bonds were initially secured
by 11 nonrecourse loans extended to six obligors. The loans were
originally backed by 72 real estate trust certificates and real
estate properties. The transaction was arranged by Credit Suisse
Securities, and ORIX Asset Management & Loan Services Corp. acts
as the servicer for the transaction.

"The ratings reflect our opinion on the likelihood of the full
payment of interest and the ultimate repayment of principal by
the transaction's legal final maturity date in November 2012 for
the class B-2 to F-3 bonds," S&P said.

           Standard & Poor's 17g-7 Disclosure Report

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:

         http://standardandpoorsdisclosure-17g7.com

Ratings Lowered
CSC, Series 1 GK
JPY36.2 billion yen-denominated bonds due November 2012
Class     To          From          Initial issue amount
E-2       CC (sf)     CCC- (sf)     JPY0.9 bil.
E-3       CC (sf)     CCC- (sf)     JPY0.6 bil.
F-3       CC (sf)     CCC- (sf)     JPY1.9 bil.

Ratings Affirmed
CSC, Series 1 GK
Class       Rating          Initial issue amount
B-2         CCC (sf)        JPY1.7 bil.
B-3         CCC (sf)        JPY1.5 bil.
C-2         CCC- (sf)       JPY3.2 bil.
D-2         CCC- (sf)       JPY3.2 bil.
*Classes A-2 and A-3 have been fully redeemed


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


ACE MUTUAL: Chief Found Dead in Hotel Before Questioning
--------------------------------------------------------
Bloomberg News reports that the biggest shareholder of Ace Mutual
Savings Bank, a South Korean lender whose operations were
suspended last year by the regulator, was found dead Wednesday
ahead of scheduled questioning by prosecutors.

Bloomberg relates that the city's Bangbae district police
authorities said the body of Kim Hak Heon, chairman of Incheon,
South Korea- based Ace Mutual, was discovered in a Seoul hotel
room.  According to the report, the police said prosecutors had
planned to question Kim on Jan. 11 regarding allegations of
illicit lending and accounting fraud.

Ace Mutual was one of 16 savings banks shuttered by South Korean
regulators last year as developers defaulted on loans amid a
slowdown in the real-estate market.  South Korean prosecutors
last year indicted more than 100 people including shareholders,
executives of the savings banks and government and regulatory
officials over lax management and oversight as well as misuse of
funds.

Mr. Kim owned a 56% stake in closely held Ace Mutual, Bloomberg
discloses citing the bank's regulatory filing.  The lender had
total assets of 991.8 billion won (US$860 million) as of June,
according to Financial Services Commission data obtained by
Bloomberg.


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


BAY FLIGHT: In Liquidation: Talks With Potential Buyers Ongoing
---------------------------------------------------------------
The SunLive reports that Tauranga's biggest flight school, Bay
Flight Aviation Limited, is in liquidation.

Tauranga-based RHB Chartered Accountants was appointed the
liquidator on December 22 and its director, Tom Rodewald --
tomr@rhb.co.nz -- said negotiations are underway with prospective
buyers, according to the report.

"We are hoping to have a deal finalised in the next couple of
days to recommence flying this week," the report quotes
Mr. Rodewald as saying.

The SunLive relates that Mr. Rodewald said the value of the
business cannot be released as they are in confidential
negotiations.

The SunLive, citing the first liquidators report released on
January 6, discloses that the reason for business closure is "due
to poor weather conditions, resulting in a lack of flying
conditions and trading difficulties, together resulting in the
decision to liquidate the company".

Phil Hooker started the training institution in Tauranga in 1996,
owning it for 14 years before selling the business to Palmerston
North resident Steve Rowe 18 months ago, the report says.

The business employs about 20 staff, and has 11 planes in its
fleet, including two Cessna aircraft, a Piper Cherokee, Piper
Seneca and Tecnam P2006T, The SunLive discloses.


                             *********

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 U. Pascual, Marites O. Claro, Joy A. Agravante,
Rousel Elaine T. Fernandez, Ivy B. Magdadaro, Frauline S.
Abangan, and Peter A. Chapman, Editors.

Copyright 2012.  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
Peter Chapman at 240/629-3300.





                 *** End of Transmission ***