TCRAP_Public/070820.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, August 20, 2007, Vol. 10, No. 163
  
                            Headlines

A U S T R A L I A

BRIGHTPOINT INC: Unit Appoints Two Directors in Moscow Office
COMMSCOPE INC: Partners with Axis to Provide Security Services
EVANS & TATE: Calls for Trading Halt
ONEIDA LTD: Loan Termination Cues Moody's to Withdraw Ratings
PANAVISION INC: Inks LOI to Buy Joe Dunton's Camera Inventory


C H I N A   &   H O N G  K O N G

AKER KVAERNER: Bags CNOOC's US$128MM Drilling Equipment Order
BENQ CORP: To Sell Factory Building for NT$500MM to Darfon
CHINA EVERBRIGHT: Board Okays CNY20 Billion Bailout
FIAT SPA: Names Yu Jiufeng as CEO of Nanjing Fiat JV
ROAD KING: Housing Sales Boosts 1H Profit to 25% Year-on-Year
ZTE CORP: Strong Sales in 1st Half Spur 32.5% YoY Rise in Profit

ZTE CORP: Plans to Raise CNY4 Billion Bond to Finance R&D
ZTE CORP: Guarantees Congo-Chine's US$105 Million Loan
ZTE CORP: Looks to Obtain Supplementary Credit from Local Banks


I N D I A

BANK OF BARODA: Annuls 400 Equity Shares
BHARTI AIRTEL: To Invest US$200 Million in Sri Lankan Market
BRISTOW GROUP: Board Declares US$0.69 Dividend on Pref. Stock
GENERAL MOTORS: Joins A123Systems in Making Cells for Chevy Volt
GENERAL MOTORS: Completes US$5.6-Bil. Allison Transmission Sale

GENERAL MOTORS: Paying US$0.25 Per Share Dividend on Sept. 10
HINDUSTAN COPPER: May Propose Follow-On Public Offering
HINDUSTAN ORGANIC: To Raise INR1 Billion in Bonds, Report Says
ICICI BANK: FIPB Clears Sale of 24% Stake in ICICI Financial


I N D O N E S I A

BAKRIE SUMATERA: Signs Oil Supply Deal With Guntung Idamannusa
BANK DANAMON: Unit Signs Pact With Baznas Dompet Dhuafa
GARUDA INDONESIA: Results of Inquiry to be Released on Sept.
PERTAMINA: To Build Java LNG Plant With Korea Gas Corp
PERUSAHAAN GAS: Appoints Heri Yusup as Corporate Secretary


J A P A N

DELPHI CORP: Obtains Court Nod on US$75MM Asset Sale to Umicore
FORD MOTOR: Inks Deal w/ Linamar Corp. on ACH & Converca I Sale
FORD MOTOR: Potential Buyers Wary of New EU Emissions Rules
JAPAN AIRLINES: To Boost Fuel Surcharge Fare from October 2007
SANYO ELECTRIC: To Sell Chilled-Display Units in U.S. and India

SOLO CUP: July 1 Balance Sheet Upside-Down by US$22,854,000
SOFTBANK CORP: Shares Fall After Daiwa Analyst Cuts Rating


K O R E A

BHK INC: Signs KRW4.5-Bil. Supply Contract with Trety LTD
C&C ENTERPRISE: Seeks Injunction Against Delisting Decision


M A L A Y S I A

KUMPULAN BELTON: Bursa Defers Delisting Until Decision on Appeal
MALAYSIA AIRLINES: Unveils Rural Air Division's Mgmt Team
OLYMPIA INDUSTRIES: Forms Development Joint Venture w/ Westcity
STAR CRUISES: Unit Gets US$1 Bil. Equity Investment from Apollo


N E W  Z E A L A N D

BRIDGECORP: Recovery of Capital Noteholders is Unlikely
SKELLERUP: Incurs Major Restructuring Costs; Won't Pay Dividend


P H I L I P P I N E S

GEOGRACE RESOURCES: Enters Into Development Deal with CDO Int'l
PHIL. NATIONAL BANK: Post Rehab Income Surges to PHP622 Million


T H A I L A N D

G STEEL PCL: Moody's Revises B2 Rating Outlook to Negative
KRUNG THAI BANK: Says Investments Are Clear of Sub-Prime Debt
SERIWAT FOODS: Parent Firm S&P Syndicate Announces Liquidation
SRI THAI FOOD: Permanently Shuts Down Business Due to Losses

     - - - - - - - -

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

BRIGHTPOINT INC: Unit Appoints Two Directors in Moscow Office
-------------------------------------------------------------
Brightpoint, Inc.'s subsidiary, Brightpoint RUS LLC, appointed
these persons to two top management positions in the Moscow
office:

  a) Endre Kadas has been appointed as the new General Director
     of Brightpoint Russia, starting from Aug. 1, 2007.

  b) Tomi Maarni has been appointed as Director of Finance and
     Operations of Brightpoint Russia and will start in his
     position on Sept. 1, 2007.

At Nokia, Mr. Endre established Nokia's channel management in
Russia and was responsible for go-to-market planning and
management.  "I am delighted to start working with Brightpoint,
Inc., the global leader in the distribution of wireless devices
and customized logistic services.  Our primary goal is to
further strengthen our operations in Russia and position
Brightpoint for further growth in the Russian and surrounding
CIS markets," said Mr. Kadas.  "We look forward to working with
the local customers and many of our worldwide suppliers --
providing them with a wide range of distribution and logistic
services."

Mr. Maarni has been General Manager and Finance Director of
Brightpoint Finland since 2004.  In his new role at Brightpoint
Russia, Mr. Tomi will be supporting the implementation of
Brightpoint's Russian strategy by managing local financial and
operational issues.

Headquartered in Plainfield, Indiana, Brightpoint, Inc. --
http://www.brightpoint.com/-- engages in the distribution of
wireless devices and accessories, as well as provision of
customized logistic services to the wireless industry.  The
company primarily operates in Australia, Colombia, Finland,
Germany, India, New Zealand, Norway, the Philippines, the Slovak
Republic, Sweden, United Arab Emirates and the United States.
The company's customers include mobile operators, mobile virtual
network operators, resellers, retailers and wireless equipment
manufacturers.  Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.

                          *     *     *

On April 12, 2006, Standard & Poor's placed Brightpoint's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.


COMMSCOPE INC: Partners with Axis to Provide Security Services
--------------------------------------------------------------
CommScope, Inc., has entered into an alliance with Axis
Communications, the global player in the network video market.

One of the more pervasive trends in the security industry is
convergence, according to Mark Peterson, senior vice president,
Global Marketing, Enterprise, CommScope.  "In order to be more
diligent and efficient with security programs, many companies
are merging physical security departments with IT departments,"
he said.  "In addition, many organizations are planning to add
more intelligence to buildings, where data, building automation
and safety and surveillance systems all converge on a single
infrastructure platform.  With this alliance, CommScope and Axis
help bring the intelligent building to their customers.

"In order to allow our customers to deploy a high quality, top
performing, and seamless network for all IP devices, CommScope
is combining our strengths in the physical infrastructure space
with the strength of companies that have their own unique
expertise," said Mr. Peterson.  "In the security space, Axis has
the clear leadership and expertise in IP-based video
surveillance.  We believe that the alliance represents a great
way to help our customers receive exceptional intelligent
building solutions."

As part of CommScope's Alliance program, the relationship with
Axis Communications should open opportunities for CommScope to
promote the idea of an intelligent building infrastructure to
customers around the world by linking them to an expert in
converged surveillance operations.

Both CommScope and Alliance plan to engage in cross-training
programs with their sales force.  "We believe the training will
assist with the delivery of prompt responses to customers'
needs," said Mr. Peterson.  "In addition, this alliance may
cultivate the need for more education within the consulting
community about convergence -- recognizing the potential
benefits from the collaborative designs of surveillance systems
and IT network infrastructures."

"CommScope is helping us communicate more effectively to our
customers the importance and benefits of an intelligent building
network system where all applications, from servers to video
surveillance system, are converged onto one infrastructure
platform," said Fredrik Nilsson, general manager of Axis
Communications.  "We are thrilled to have an opportunity to
build upon CommScope's expertise while delivering the latest
converged video security solutions to our customers."

                          About Axis

Axis Communications -- http://www.axis.com/-- is a Swedish-
based, IT company offering network video solutions for
professional installations.  The company is the global market
leader in network video, driving the ongoing shift from analog
to digital video surveillance.  Axis products and solutions
focus on security surveillance and remote monitoring, and are
based on innovative, open technology platforms.  The company is
operating worldwide with offices in 18 countries and cooperating
with partners in more than 70 countries.  Founded in 1984, Axis
is listed on the OMX Nordic Exchange, Large Cap and Information
Technology.

                        About CommScope

Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV)
-- http://www.commscope.com/-- designs and manufactures "last   
mile" cable and connectivity solutions for communication
networks.  Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R)
Solutions brands CommScope is the global leader in structured
cabling systems for business enterprise applications.  It is
also the world's largest manufacturer of coaxial cable for
Hybrid Fiber Coaxial applications.  Backed by strong research
and development, CommScope combines technical expertise and
proprietary technology with global manufacturing capability to
provide customers with high-performance wired or wireless
cabling solutions.

CommScope has facilities in Brazil, Australia, China and
Ireland.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 2, 2007, Moody's Investors Service placed CommScope Inc.'s
ratings under review for downgrade after their announced intent
to acquire Andrew Corp. for US$2.6 billion.

The ratings under review for downgrade include:

-- Corporate Family Rating, Ba2

-- US$250 million Convertible Senior Subordinated Debentures
    due 2024, Ba3


EVANS & TATE: Calls for Trading Halt
------------------------------------
Evans & Tate Limited has entered a voluntary trading halt
pending an announcement from the company, The Age reports.

According to The Age, Evans & Tate shares were trading 1 cent
higher at 13 cents before the halt.

News.com recounts that the West Australian winemaker has been
the focus of takeover activity in the past several months, with
its board of directors recently rejecting a AU$100-million offer
from Yarraman Estates.

In July, the company entered a restructuring deal involving
major creditor ANZ Bank, Pendulum Capital and McWilliam's Wines.
Under the Pendulum plan, News.com relates, there would be a
AU$45 million placement of shares to ANZ, reducing Evans &
Tate's debt to the bank to about AU$55 million, from
AU$100 million.

Some of the shares would be transferred to McWilliam's and the
balance held equally by ANZ and Pendulum, The Age further
explains.  Evans & Tate convertible noteholders and redeemable
preference shareholders would also convert their holdings into
shares.

The Age says that after the capital restructure, Evans & Tate
would undertake an entitlements issue to raise AU$17.6 million
at 4 cents per share on a one-for-two basis.  After the
entitlements issue, Evans & Tate would make a placement of 100
million shares at 4 cents a share to McWilliam's with 50 million
options exercisable at 6 cents a share.

McWilliam's would therefore contribute a total of AU$10 million
in new equity into Evans & Tate.

Evans & Tate said that its balance sheet would improve through
the elimination of about AU$112 million of debt and an injection
of new cash of about AU$21.6 million, the report notes.

ANZ and Pendulum would have a stake of 48% in Evans & Tate,
McWilliam's about 25%, and other Evans & Tate shareholders would
hold the remaining 27%.


                       About Evans & Tate

Headquartered in Wembley, Western Australia, Evans & Tate
Limited -- http://www.etw.com.au/-- is an Australian wine    
company listed on the Australian Stock Exchange.  The primary
businesses of the Evans & Tate Wine Group are the production,
marketing and distribution of a number of branded, exclusive
labeled and unbranded wines; contract winemaking; wine trading;
viticultural services; and wine tourism through its Visitor
Centers.

The Troubled Company Reporter-Asia Pacific reported on Sept. 15,
2006, that Evans & Tate Limited posted a loss of AU$63.9 million
for the 2005-2006 financial year, down 12% on the corresponding
figure for the previous year.

The TCR-AP report also stated that as of June 30, 2006, the
company's balance sheet revealed strained liquidity with
AU$90.930 billion in total current assets available to pay
AU$152.377 billion of total current liabilities coming due
within the next 12 months.  Further, Evans & Tate's June 30,
2006 balance sheet also showed total liabilities of
AU$207.445 billion exceeding total assets of AU$139.792 billion,
resulting to total shareholders' deficit of AU$67.653 billion.

                          Going Concern

The same TCR-AP report adds that Evans & Tate says that the
financial report has been prepared on a going concern basis,
noting that as at June 30, 2006, certain matters are considered
pertinent when considering the ability of the consolidated
entity to continue as a going concern.

The company notes that if it is unable to continue as a going
concern, it will be required to realize its assets and
extinguish its liabilities other than in the normal course of
business and at amounts that may be different to those stated in
the financial report.


ONEIDA LTD: Loan Termination Cues Moody's to Withdraw Ratings
-------------------------------------------------------------
Moody's Investors Service withdrew all ratings on Oneida, Ltd.

The withdrawal is driven by Oneida's announcement that it has
terminated its intent to enter into a new US$120 million senior
secured term loan facility due to unfavorable market conditions.

The company intended to use proceeds from the term loan and a
portion of cash to refinance its existing term loan that was put
in place following its emergence from voluntary bankruptcy in
September 2006, pay a US$30 million special dividend to
preferred equity holders, and pay related fees, expenses and
prepayment penalties.

These ratings were withdrawn:

Oneida, Ltd.:

-- Corporate family rating at B2

-- Probability of default rating at B2

-- US$120 million first-lien Term Loan due 2013 at B3 (LGD 4,
    62%)

Headquartered in Oneida, New York, Oneida, Ltd. is a leading
marketer and distributor of tableware products, including
metalware, dinnerware, glassware and other tabletop accessories.
The company's key operations are in the U.S., Canada, Mexico,
U.K., EMEA and Australia, and revenue is estimated to be about
US$350 million.


PANAVISION INC: Inks LOI to Buy Joe Dunton's Camera Inventory
-------------------------------------------------------------
Panavision Inc. has entered into an exclusive Letter of Intent
to purchase the camera inventory of Joe Dunton & Company.  Joe
Dunton and Lester Dunton will join Panavision's executive ranks
upon completion of the transaction.  JDC has rental facilities
in London and Wilmington, North Carolina.
    
"With the acquisition of these assets, Panavision will expand
its inventory of high-end film cameras and lenses to support its
growing worldwide business," Bob Beitcher, president and CEO,
Panavision Inc., said.  "It is another step forward in our
strategy to acquire valuable assets on a selective basis and to
attract entrepreneurial industry leaders to our executive team."
    
"I'm personally very pleased to be reuniting with Panavision, a
company at the very top of our industry," Joe Dunton said.  
"It's an incredibly exciting platform for me and Lester to
continue our innovative approach to solving the issues faced by
filmmakers on the set every day.  We couldn't be joining a
better team!"
    
The purchase includes all film camera equipment owned by JDC,
along with a wide assortment of spherical and anamorphic lenses
and camera accessories.

                    About Joe Dunton & Company

Headquartered in Wilmington North Carolina, Joe Dunton & Company
--- www.joedunton.com/ -- specializes in the rental of cameras,
lenses, grip and video assist equipment to the UK, US and
international film industry.

                      About Panavision Inc.
    
Headquartered in Woodland Hills, California, Panavision Inc.
-- http://www.panavision.com/-- manufactures and rents camera  
systems and lighting equipment to motion picture and television
producers worldwide.  

Panavision has locations in Australia and New Zealand.

                          *     *     *

As reported in the Troubled Company Reporter on July 13, 2007,
Moody's Investors Service downgraded the corporate family rating
of Panavision Inc. to B3 from B2.


================================
C H I N A   &   H O N G  K O N G
================================

AKER KVAERNER: Bags CNOOC's US$128MM Drilling Equipment Order
-------------------------------------------------------------
Aker Kvaerner has won China National Offshore Oil Corporation's
order for various drilling equipment worth US$128 million, AFX
News reports, citing the Norwegian engineering firm's statement.

The equipment to be provided includes the system for an ultra
deepwater drilling semi-submersible unit, Aker Kvaerner said.

"This first delivery of drilling equipment systems into the
Chinese offshore market is a breakthrough for Aker Kvaerner,"
the firm's executive vice president Mads Andersen was quoted by
the news agency as saying.

The contract, according to Aker Kvaerner, will be fulfilled by
its subsidiary in Kristiansand, with delivery scheduled for
early 2011.

                       About Aker Kvaerner

Headquartered in Lysaker, Norway, Aker Kvaerner ASA --
http://www.akerkvaerner.com/-- through its subsidiaries and   
affiliates, is a leading global provider of engineering and
construction services, technology products and integrated
solutions.  The company has operations in Malaysia, Brazil,
Chile, China, India, Indonesia, Japan, Singapore, South Korea,
Thailand.

The Aker Kvaerner group is organized into two principal business
streams, namely Oil & Gas and E&C, each consisting of a number
of separate legal entities.

                          *     *     *

Moody's Investors Service upgraded the ratings of Aker Kvaerner
Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the
sustainable strong recovery in profitability and cash flow
generation of the ring-fenced oil and gas group over the past
two years, coupled with the clear reduction in senior debt,
repaid from internally generated funds.

Ratings affected:

Aker Kvaerner Oil & Gas Group AS

   -- Corporate family rating: upgraded to Ba1 from Ba3

Aker Kvaerner AS
  -- Rating of the second priority lien notes due 2011:
      upgraded to Ba1 from Ba3.

Moody's said the outlook on all ratings is stable.


BENQ CORP: To Sell Factory Building for NT$500MM to Darfon
----------------------------------------------------------
BenQ Corp plans to sell a factory building to Darfon Electronics
Corp. for NT$500 million (US$15 million) to raise funds, China
Post reports.

Citing BenQ's spokeswoman, Jasmine Hung, the paper relates that
the building houses an electronics factory in Taoyuan and Darfon
will use the factory for offices.

BenQ, according to The Post, has sold assets to help repay debt
after Chairman K.Y. Lee failed to turn the company to a profit
following the 2005 acquisition of Siemens AG's mobile-phone
unit.  BenQ's total liabilities stood at NT$60.7 billion at the
end of March, while the company had NT$6.45 billion in cash.

Darfon makes keyboards for notebook computers and power adapters
for televisions.  BenQ, also based in Taoyuan, is Darfon's
largest shareholder, with a 58.3% stake at the end of last year.

Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. --
http://www.benq.com/-- is principally engaged in manufacturing      
developing and selling of computer peripherals and
telecommunication products.  It is also a major provider of 3G
handset, camera phones, and other products.

BenQ Mobile GmbH & Co., the company's German-based wholly owned
subsidiary, filed for insolvency in Munich on Sept. 29, 2006,
after BenQ Corp.'s board decided to discontinue capital
injection into the mobile unit in order to stem unsustainable
losses.  The collapse follows a year after Siemens sold the
company to Taiwanese technology group BenQ.

BenQ Mobile has lost market share against giant competitors.  A
Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a
buyer for the company by the Dec. 31, 2006 deadline.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.

The outlook on the long-term rating is negative.  At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.

The ratings reflect BenQ's continuing operating losses from its
handset operations and high leverage, and the competitive nature
and low profitability of the LCD monitor industry.


CHINA EVERBRIGHT: Board Okays CNY20 Billion Bailout
---------------------------------------------------
The board of directors of China Everbright Bank has approved the
planned CNY20 billion (US$2.6 billion) government bailout,
paving the way for its stock sale, Shanghai Daily reports,
citing the bank's statement.

According to the report, Central Huijin Investment Co, the
investment arm of the central bank, will buy 20 billion new
shares at CNY1 each.

Everbright Bank will then list its shares next year after it
completes its financial restructuring and gains strategic
investors, according its Chairman, Tang Shuangning.

China International Capital Corp. and Morgan Stanley were hired
to find a foreign strategic investor before an initial public
offering that may raise at least US$1 billion next year,
according to media reports.


Headquartered in Beijing, China, China Everbright Bank Company
-- http://www.cebbank.com/-- is the first state-owned  
commercial bank with shares held by international financial
institutions.

Everbright Bank is 21%-owned by Hong Kong-listed China
Everbright Ltd, an Everbright Group unit.  The Asian Development
Bank is the only foreign stakeholder, with 2%.

The Troubled Company Reporter-Asia Pacific stated on Aug. 9,
2007, that China has approved mid-sized lender China Everbright
Bank's plan for financial restructuring, paving the way for a
capital injection and eventual listing.

China Everbright Bank is saddled with debts partly because of
its takeover of the troubled China Investment Bank in the late
1990s.


FIAT SPA: Names Yu Jiufeng as CEO of Nanjing Fiat JV
----------------------------------------------------
FIAT SpA last week appointed Yu Jiufeng as chief executive
officer and general manager of its Chinese joint venture as the
Italian carmaker tries to revive its fortune in the world's
second-biggest auto market, Xinhuanet News reports.

Mr. Yu, the former director of purchasing and director of
manufacturing in Nanjing Fiat, is the third CEO of the venture
in about two years and replaces Andrew Humberstone, the report
notes.

Nanjing Fiat, the joint venture between Nanjing Automobile
Corporation and Fiat SpA, has been struggling with flat sales
that were blamed on frequent leadership changes amid an uneasy
partnership between the two parents and lack of attractive
models, Xinhuanet relates.  

"Yu has rich experience in managing Sino-foreign joint venture
companies," Fiat is quoted by the news agency as saying in a
statement.

Mr. Yu has been the general manager of the Sino-Italian joint
venture of NAC Group Nanjing Yuejin Automotive Brake System Co
Ltd since 2005.

"The changes in management structure have been decided by NAC
and Fiat to prepare and adapt the joint venture to its next
phase of operation and development," Fiat said.

Mr. Humberstone, the former CEO & general manager of Nanjing
Fiat, will assume the role of vice chairman and continue to
support closely the development of Nanjing Fiat, the statement
added.

"The personnel shakeup may reflect that Fiat is considering
having less control over the money-losing car maker," Cao He, an
auto analyst from Mingzu Securities Co Ltd told the news agency.  
"But I doubt whether it could help Fiat to drive out of its
current unsatisfactorily business performance."

Nanjing Fiat started production of Fiat-branded cars in 2002
with four models in China.

Nanjing Auto has injected more investment and resources in
developing its self-branded models, drawing complaints from Fiat
which threatened to end the partnership early this year.

A week earlier, Fiat announced that it would form an equally
owned joint venture with Chery Automobile Co Ltd to make Alfa
Romeo sedans and other models that carry the Chery badge after
buying the Chinese car maker's engines, the report recounts.

                         About Fiat SpA

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,   
commercial vehicles, and agricultural and construction
equipment.  It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems.  Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.

Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.

                          *     *     *

As of June 19, 2007, Fiat S.p.A. carries Moody's Long-Term
Corporate Family Rating of Ba2 and Probability of Default Rating
at Ba2 with Outlook Positive.

Standard & Poor's give Long-Term Foreign and Local Issuer Credit
Ratings of BB+ for Fiat.  Its Short-term Foreign and Local
Issuer Credit Ratings are at B with Positive Outlook.

Dominion Bond Rating Service gives Fiat a Long-term Issuer
Rating of BB with Positive Outlook.


ROAD KING: Housing Sales Boosts 1H Profit to 25% Year-on-Year
-------------------------------------------------------------
Road King Infrastructure Limited 's net profit for the first-
half of 2007 rose 25% to HK$310 million from HK$248 million a
year earlier, boosted by housing project sales, Infocast News
says, citing the company's financial statement.

According to the company's statement, revenue for the
January-June period surged 42% to HK$916 million from
HK$645 million a year earlier, helped by sales worth
HK$308 million from its housing projects in China.

Road King is developing seven wholly-owned housing projects in
mainland China, three of which are located in Guangdong province
and four in Jiangsu, the report notes.

Toll revenue from its infrastructure joint ventures dropped to
HK$608 million from HK$612 million in the same period last year,
the company said.  However, the company said that it reported a
9% year-on-year increase in traffic volume and 14% growth in
toll revenue from its road projects for the period, excluding
those which were disposed of in 2006.

In June this year, Road King disposed of a further 25% interest
in three Class II highways, namely Provincial Highway 307 Bengbu
Huaihe Bridge Highway, Provincial Highway 307 Bengbu Huaiyuan-
Mengcheng Highway and Bengbu Chaoyanglu Huaihe Highway Bridge,
of which the Group originally owned a 60% stake.

The company is preparing to dispose of all of its remaining
interests in the highway projects in coming years to enhance its
investment returns, Infocast notes.  

Road King declared an interim dividend of 24 HK cents, up from
22 cents a year earlier.


Road King Infrastructure Limited -- http://www.roadking.com.hk/
-- is a publicly listed company in Hong Kong with its core
business in the investment, development, operation and
management of toll roads and bridges in China.  Road King has a
toll road investment portfolio comprising over 20 toll roads and
bridges spanning approximately 1,100 kilometers in 8 provinces
of China.  In 2004, Road King entered the property development
business in China and the developing property projects have
reached total gross floor area of 1.6 million square meters.

The company carries Moody's Investors Service Ba1 corporate
family rating.  On May 1, 2007, Moody's downgraded the senior
unsecured rating on Road King Infrastructure Finance (2004)
Ltd's bonds to Ba2 from Ba1.  The outlook for the ratings is
negative.

In addition, Standard & Poor's Ratings Services lowered its
corporate credit rating on Road King Infrastructure Ltd. to BB
from BB+.  The rating was also removed from CreditWatch, where
it had been placed with negative implications on Jan. 26, 2007,
following RKI's announcement that it planned to increase its
stake in a Chinese property developer, Sunco Binhai Land Ltd.,
(Sunco A) to 90% and the possible acquisition of 100% of Sunco
Real Estate Investment Ltd. (Sunco B).  The outlook is stable.

Fitch Ratings on May 4, 2007, downgraded Hong Kong-based Road
King Infrastructure Limited's Long-term Foreign Currency Issuer
Default Rating to 'BB' from 'BB+' and removed the company from
Rating Watch Negative on which it was placed on January 30,
2007.  The issue rating on the USD200 million senior unsecured
notes due 2011 guaranteed by Road King has also been downgraded
to 'BB' from 'BB+'.  The Outlook on the IDR is Stable.  The
rating actions follow greater clarity on the company's progress
in the acquisition of Sunco Binhai Land Limited.


ZTE CORP: Strong Sales in 1st Half Spur 32.5% YoY Rise in Profit
----------------------------------------------------------------
China's ZTE Corp. posted a net profit of CNY459.8 million in the
first six months to June under Chinese accounting standards, a
rise of 32.5% year-on-year on the back of strong sales growth,
Forbes reports.

Citing the company's financial report, Forbes notes that the
company booked operating revenue of CNY15.23 billion in the
first half, up 43.85% from a year earlier.

Revenue from overseas markets surged 99% YoY to CNY7.97 billion.

ZTE's main revenue contributors were equipment for China's
homegrown mobile technology standard TD-SCDMA and Global System
For Mobile communication (GSM) systems as well as its third-
generation (3G) mobile phones, the report says.

Forbes recounts that ZTE has won bids to provide TD-SVDMA
network products for China Mobile in Beijing, Tianjin, Shenzhen,
Shenyang, Qinhuangdao and Xiamen.

Meanwhile, mobile phone revenue stood at CNY3.59 billion for the
first half to June, up from CNY2.13 billion last year.

Additionally, the company's key GSM and CDMA products entered
developed markets in Western Europe and North America in the
first half, the news agency relates.

ZTE will further expand its overseas market share in the second
half.

Headquartered in Shenzhen, China, ZTE Corp --
http://www.zte.com.cn/-- produces and sells general system and  
communication terminal equipment.  The group operates both in
the domestic and international market.

The Troubled Company Reporter-Asia Pacific reported on Dec. 1,
2006, that Fitch Ratings assigned ZTE Corp. long-term foreign
and local currency Issuer Default ratings of 'BB+'.  The rating
outlook is stable.


ZTE CORP: Plans to Raise CNY4 Billion Bond to Finance R&D
---------------------------------------------------------
ZTE Corp. plans to raise up to CNY4 billion (HK$4.11 billion) by
selling bonds and warrants to help finance research and
development on the homegrown TD-SCDMA third-generation mobile
standard, various sources say.

According to the reports, bondholders will receive call warrants
for each five-year bond they posts and that the call warrants
and the bonds are tradable separately.

The coupon rate has not been set as it is subject to market
conditions and talks with the underwriter, The Standard notes.  
Meanwhile, the bonds and warrants will only be sold in the
mainland and the holders of yuan-denominated A shares will be
given preference.

Proceeds will be spent on 11 R&D projects, which are expected to
cost CNY10.7 billion, media reports say.  

Shareholders will vote on the proposal on October 16.

Headquartered in Shenzhen, China, ZTE Corp --
http://www.zte.com.cn/-- produces and sells general system and  
communication terminal equipment.  The group operates both in
the domestic and international market.

The Troubled Company Reporter-Asia Pacific reported on Dec. 1,
2006, that Fitch Ratings assigned ZTE Corp. long-term foreign
and local currency Issuer Default ratings of 'BB+'.  The rating
outlook is stable.


ZTE CORP: Guarantees Congo-Chine's US$105 Million Loan
------------------------------------------------------
ZTE Corporation will provide a guarantee by way of pledge of
equity interests in respect of an US$105 million loan extended
to Congo-Chine Telecom S.A.R.L., Infocast News reports.

Congo-Chine is a 51% owned unit of ZTE, the news agency relates.

Under the agreement, Congo-Chine pledged that the loan will be
applied solely to the Second Phase National GSM Expansion and
payments for the purchase of equipment and services from ZTE.

As at the end of 2006, the total network capacity of Congo-Chine
was 450,000 lines covering 172 stations, making it the third
largest mobile communications carrier of the Democratic Republic
of the Congo.

Headquartered in Shenzhen, China, ZTE Corp --
http://www.zte.com.cn/-- produces and sells general system and  
communication terminal equipment.  The group operates both in
the domestic and international market.

The Troubled Company Reporter-Asia Pacific reported on Dec. 1,
2006, that Fitch Ratings assigned ZTE Corp. long-term foreign
and local currency Issuer Default ratings of 'BB+'.  The rating
outlook is stable.


ZTE CORP: Looks to Obtain Supplementary Credit from Local Banks
---------------------------------------------------------------
ZTE Corporation plans to apply for supplementary composite
credit facilities from three local banks for the second half of
2007, Infocast News reports.

The proposed composite credit facilities amount to CNY10 billion
and US$140 million, including CNY3 billion from Bank of
Communications, CNY4 billion from ICBC and CNY2 billion from
Agricultural Bank of China, the report says.  

The planned credit, Infocast notes, is still subject to approval
by the banks.

Headquartered in Shenzhen, China, ZTE Corp --
http://www.zte.com.cn/-- produces and sells general system and  
communication terminal equipment.  The group operates both in
the domestic and international market.

The Troubled Company Reporter-Asia Pacific reported on Dec. 1,
2006, that Fitch Ratings assigned ZTE Corp. long-term foreign
and local currency Issuer Default ratings of 'BB+'.  The rating
outlook is stable.


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

BANK OF BARODA: Annuls 400 Equity Shares
----------------------------------------
Bank of Baroda disclosed with the Bombay Stock Exchange that
pursuant to the Regulation 35 of Bank of Baroda General (Shares
and Meetings) Regulations, 1998, 400 forfeited equity shares, of
INR10 each, are annulled:

   Shareholders            No. of Shares
   ------------            -------------
   Vijay Shanker Shukla        100
   Subhash Chandra Gupta       100    
   Sitara Devi                 100
   Minesh Kumar T Gandhi       100

With the annulment, the paid up share capital of the vank has
increased by INR4,000 to INR364,26,64,000 as of Aug. 14, 2007.

Headquartered in Vadodara, India, Bank of Baroda --
http://www.bankofbaroda.com/-- is a provider of banking        
services in India.  The company's solutions includes personal
banking, which includes deposits, retail loans, credit cards,
debit card, lockers and other services; business banking, which
comprises working capital, term finance and traders loans;
corporate banking, which includes cash management and
remittances, multi-city cheques, appraisals and merchant
banking; international business, which includes import finance,
international treasury, export finance, correspondent banking
and other solutions; treasury banking, which comprises domestic
operations and forex operations, and rural banking, which
includes retail loan, small businesses and small scale
industries.  

Bank of Baroda has branches in the Bahamas, Belgium, the Fiji
Islands, Mauritius, Republic of South Africa, Seychelles,
Singapore, Sultanate of Oman, United Arab Emirates, the United
Kingdom, and the United States of America.

                          *     *      *

As reported by the Troubled Company Reporter-Asia Pacific on
July 11, 2007, Standard & Poor's assigned its 'BB' issue rating
to Bank of Baroda's US$300 million upper Tier-II subordinated
notes due in 2022.

Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of
Baroda's proposed unsecured subordinated Upper Tier 2 notes
(expected size: USD250 million plus greenshoe option), as well
as the hybrid Tier 1 debt to be issued under its USD1.5 billion
medium-term notes programme.   The agency also affirmed the
bank's Individual Rating of 'C/D'.  The outlook on all ratings
is stable.


BHARTI AIRTEL: To Invest US$200 Million in Sri Lankan Market
------------------------------------------------------------
Bharti Airtel Lanka Private Limited, a subsidiary of Bharti
Airtel Limited, one of Asia's leading integrated telecom
services companies, plans to launch world class 2G and 3G
services in Sri Lanka by the end of the current financial year
(2007-08).  The company also plans to invest approximately
US$200 million in the Sri Lankan market.  The mobile services
from Bharti Airtel will be launched under the Airtel brand in
the Island nation.

According to Mr. Sanjay Kapoor, President, Mobile Services,
Bharti Airtel, "We are  committed to offering world-class and
affordable 2G and 3G services to customers in Sri Lanka.  With
mobile penetration of around 30% and growing at a rate of
approximately 2 million mobile users per annum, we are excited
about our entry into this market.  Our plans for Sri Lanka
clearly demonstrate our commitment to the market and also our
confidence in the potential that this market holds in Airtel's
overseas expansion journey."

Bharti Airtel, that has been rated among the best performing
companies in the world in the BusinessWeek IT 100 list 2007,
will invest approximately US$200 million in setting up and
expanding its operation in the country over the next five years.
Since the company is currently setting up its operations, a
major portion of the committed investment will be made during
the next 12 to 18 months.  Bharti Airtel was recently awarded
the license to provide 2G and 3G mobile services in Sri Lanka.

                      About Bharti Airtel

Headquartered in Ballarpur, India, Ballarpur Industries Limited
-- http://www.bilt.com/-- is a paper manufacturer and exporter.     
BILT has five product groups: coated wood-free, uncoated wood-
free, copier, creamwove, and business stationery.  There are
three types of products in the coated wood-free segment: two
side coated paper, two side coated boards, and single side
coated products.  The company has a presence in all segments of
the paper usage spectrum that includes writing and printing
paper, industrial paper, and specialty paper.

On April 12, 2004, Standard and Poor's Ratings Services gave
Ballarpur Industries BB- ratings for both its long-term local
and foreign issuer credit.  As of May 15, 2007, the company
still carry those ratings.


BRISTOW GROUP: Board Declares US$0.69 Dividend on Pref. Stock
-------------------------------------------------------------
The board of directors of Bristow Group Inc. has declared a
dividend of US$0.68750 per share of Mandatory Convertible
Preferred Stock issued and outstanding at the close of business
on Sept. 1, 2007.
    
The dividend will be payable on Sept. 15, 2007, to stockholders
of record at the close of business on Sept. 1, 2007.    

There are 4,600,000 shares of Bristow's Mandatory Convertible
Preferred Stock issued and outstanding.
    
Headquartered in Houston, Texas, Bristow Group, Inc. --
http://www.bristowgroup.com-- (NYSE:BRS), fka Offshore
Logistics, Inc., provides helicopter transportation services to
the worldwide offshore oil and gas industry with operations in
the United States Gulf of Mexico and the North Sea. The Company
also has operations, both directly and indirectly, in offshore
oil and gas producing regions of the world, including Australia,
Brazil, China, India, Mexico, Nigeria, Russia and Trinidad.  The
Company also provides production management services for oil and
gas production facilities in the United States Gulf of Mexico.

                          *     *     *

As reported in the Troubled Company Reporter on June 6, 2007,
Standard & Poor's Ratings Services assigned its 'BB' rating to
helicopter service company Bristow Group Inc.'s $250 million
senior notes due 2017.  At the same time, Standard & Poor's
affirmed the 'BB' corporate credit rating and all other ratings
onthe company.  The outlook is negative.


GENERAL MOTORS: Joins A123Systems in Making Cells for Chevy Volt
----------------------------------------------------------------
General Motors Corp. and A123Systems, Inc., will co-develop
cells with A123System's nanophosphate battery chemistry for a
long-lasting, safe and powerful battery for use in GM's electric
drive E-Flex system.  The agreement is expected to expedite the
development of the batteries for both electric plug-in vehicles
and fuel cell variants of the E-Flex architecture.

"Breakthrough battery technology will drive future automotive
propulsion, and the company that aligns with the best strategic
partners will win.  That's what is so important about this
deal," said Bob Lutz, GM vice chairman of Global Product
Development.  "Whether you're talking about the Chevy Volt, a
fuel cell or even a plug-in hybrid such as our planned Saturn
Vue, we need to understand the fundamental battery cell
performance."

The contract calls for A123Systems, of Watertown, Massachusetts,
to develop battery cells to meet the specific requirements of
GM's E-Flex system.  A123Systems is considered a forerunner in
the development of nanophosphate-based cell technology, which,
compared to other lithium-ion battery chemistries, provides
higher power output, longer life and safer operations over the
life of the battery.

The E-Flex electric vehicle architecture was first shown in the
Chevy Volt concept car revealed earlier this year.  For average
commuters driving 40 miles, the Chevy Volt will use zero
gasoline and produce zero emissions and could nearly eliminate
going to the gas station altogether.

"The Chevy Volt will lead the automotive industry in a new
direction," Mr. Lutz said.  "We see a future where vehicles run
on electricity and are equipped with clever ways of making
electricity on board, making us less dependent on gasoline.  
It's the next great paradigm shift in our industry, an
opportunity largely due to the rapid advancement in battery cell
technology by companies such as A123Systems and LG Chem."

Earlier this year, GM awarded two contracts for advanced
development of battery packs, which require the integration of
multiple battery cells, to Compact Power, Inc., a subsidiary of
Korean battery manufacturer LG Chem, based in Troy, Michigan;
and Frankfurt, Germany-based Continental Automotive Systems, a
division of Continental A.G., a tier one automotive supplier.  
Under these agreements, one contract was awarded to CPI, which
will use battery cells developed by parent company LG Chem.  A
separate contract was issued to Continental, which will use the
cells being co-developed by GM and A123Systems.

"A123Systems and LG Chem are both top-tier battery suppliers,
with proven technologies," said Denise Gray, director of GM's
Energy Storage Devices and Strategies.  "We're confident one, or
possibly both of these companies' solutions will meet our
battery requirements for the E-Flex system."

Dave Vieau, A123System's chief executive officer, said this type
of battery will be advantageous in other transportation
industries as well.

"We're talking today about the Volt and implications that it
will have on the electrification of passenger vehicles, but the
technology goes a lot further than that," Mr. Vieau said.  "The
weight, size, safety and performance of these batteries have
implications on all transportation, including hybrid buses,
trucks and aircraft."

A123Systems currently manufactures over ten million cells
annually making it the world's largest producer of batteries
with nanophosphate chemistry.  Most of these cells are used in
rechargeable power tools.

                      About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs  
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India.  In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                         *     *     *

As reported in the Troubled Company Reporter on May 28, 2007,
Standard & Poor's Ratings Services placed General Motors Corp.'s
corporate credit rating at B/Negative/B-3.

At the same time, Moody's Investors Service affirmed GM's B3
Corporate Family Rating and B3 Probability of Default Rating,
and maintained its SGL-3 Speculative Grade Liquidity Rating.  
The rating outlook remains negative, according to Moody's.


GENERAL MOTORS: Completes US$5.6-Bil. Allison Transmission Sale
---------------------------------------------------------------
General Motors Corp. has completed the sale of its Allison
Transmission commercial and military business to The Carlyle
Group and Onex Corporation for about US$5.6 billion.

The company expects to use the funds to strengthen liquidity and
support heavy investments in new products and technology, such
as its continued energy diversity initiatives.

Allison Transmission designs and manufactures automatic
transmissions for medium and heavy duty commercial vehicles.  
Its products are used in on-highway, off-highway and vehicles.  
Headquartered in Indianapolis, Indiana, Allison Transmission
employs approximately 3,400 people, has seven plants in
Indianapolis and sells its transmissions through a worldwide
distribution network with sales offices in North America, South
America, Europe, Africa and Asia.  The company generates annual
revenues in excess of US$2 billion.

                       About Carlyle Group

The Carlyle Group -- http://www.carlyle.com/-- is a private   
equity firm with US$58.5 billion under management.  Carlyle
invests in buyouts, venture & growth capital, real estate and
leveraged finance in Asia, Europe and North America, focusing on
aerospace & defense, automotive & transportation, consumer &
retail, energy & power, healthcare, industrial, infrastructure,
technology & business services and telecommunications & media.  
Since 1987, the firm has invested US$28.3 billion of equity in
636 transactions for a total purchase price of US$132 billion.  
The Carlyle Group employs more than 800 people in 18 countries.  
In the aggregate, Carlyle portfolio companies have more than
US$87 billion in revenue and employ more than 286,000 people
around the world.

                           About Onex

Onex Corp. makes private equity investments through the Onex
Partners and ONCAP family of Funds.  These companies are in a
variety of industries, including electronics manufacturing
services, aerostructures manufacturing, healthcare, financial
services, aircraft & aftermarket, metal services, customer
management services, theatre exhibition, personal care products
and communications infrastructure.

                       About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs   
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India.  In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                          *     *     *

As reported in the Troubled Company Reporter on May 28, 2007,
Standard & Poor's Ratings Services placed General Motors Corp.'s
corporate credit rating at B/Negative/B-3.

At the same time, Moody's Investors Service affirmed GM's B3
Corporate Family Rating and B3 Probability of Default Rating,
and maintained its SGL-3 Speculative Grade Liquidity Rating.  
The rating outlook remains negative, according to Moody's.


GENERAL MOTORS: Paying US$0.25 Per Share Dividend on Sept. 10
-------------------------------------------------------------
General Motors Corp. has disclosed a third-quarter dividend of
US$0.25 per share on GM common stock.  The dividend is payable
Sept. 10, 2007, to holders of record as of Aug. 17, 2007.  
The dividend is unchanged from the previous quarter.

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs   
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India.  In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                          *     *     *

As reported in the Troubled Company Reporter on May 28, 2007,
Standard & Poor's Ratings Services placed General Motors Corp.'s
corporate credit rating at B/Negative/B-3.

At the same time, Moody's Investors Service affirmed GM's B3
Corporate Family Rating and B3 Probability of Default Rating,
and maintained its SGL-3 Speculative Grade Liquidity Rating.  
The rating outlook remains negative, according to Moody's.


HINDUSTAN COPPER: May Propose Follow-On Public Offering
-------------------------------------------------------
Hindustan Copper Limited may come up with a follow-on offering
proposal by the end of this financial year or early next fiscal
year, Moneycontrol.com reports, citing a senior company
official.

The proposal will be finalized depending on its fund
requirements in developing Malanjkhand and Chapri Sideshwar
copper deposits, the report relates.

Depending on the projects fund requirements, the company
reportedly plans to explore various options including IPO,
private equity and debt finance.

Citing initial estimates, Monecontrol says the company may
require close to INR1,800 crore in developing diverse deposits
in next five years, with the major part of the investment for
the Malanjkhand and Chapri deposits.

To conduct pre-feasibility study on the projects, the company
has tapped SRK Consulting Engineers & Scientists.  In the next
six months, the company expects to see the report on the study,
which report will give it a clear idea of the funding
requirements.

                     About Hindustan Copper

Based in Kolkata, India, Hindustan Copper Limited --  
http://www.hindustancopper.com/-- is an undertaking of the   
Government of India.  The company is the sole fully integrated
copper manufacturer in India.

On November 18, 2005, CRISIL Ratings upgraded its outstanding
rating on the non-convertible bond program of Hindustan Copper
Limited to 'C' from 'D'.  Since July 2004, Hindustan Copper has
met its interest obligations on the rated instrument on time.
The upward revision in the rating is in line with CRISIL's
policy of revising ratings, post-default only after monitoring
timely debt servicing for a year.  Hindustan Copper, however,
continues to default on its interest obligations relating to its
unrated debt.


HINDUSTAN ORGANIC: To Raise INR1 Billion in Bonds, Report Says
--------------------------------------------------------------
Hindustan Organic Chemicals Limited is considering raising
INR1 billion in bonds, Reuters reports, citing Dow Jones.

According to the report, Hindustan Organic plans to sell one-
year bonds, which issue opens on Aug. 22, 2007 and closes on
Aug. 24.  The bonds reportedly will be priced with two options:

   -- a coupon of around 9%; or

   -- a 250 basis points spread over the National Stock Exchange
      of India overnight Mumbai interbank offered rate.

Hindustan Organic Chemicals Ltd was incorporated on December 12,
1960, as a wholly owned enterprise of the Government of India.  
It has two manufacturing units: the phenol complex at Cochin and
the integrated Nitro Aromatic Complex at Rasayani.  The company
produces a wide range of products including phenol, acetone, and
aniline.

Hindustan Organic has continuously paid dividend for over 20
years until 1997.  Due to reduced protection from imports, poor
market condition and excessive manpower and interest cost, the
company had been reporting losses since that year.  A financial
restructuring package was proposed in 2002 to help the company
turn its business around.  The package, which has been cleared
by the Cabinet Committee on Economic Affairs based on the
recommendations of the Board for Reconstruction of Public Sector
Enterprises, consists of grants aggregating INR750 million and
subscription by way of non-cumulative redeemable preference
shares aggregating INR1.75 billion by the Government of India.


ICICI BANK: FIPB Clears Sale of 24% Stake in ICICI Financial
------------------------------------------------------------
The Foreign Investment Promotion Board has given ICICI Bank Ltd
the go signal to sell up to 24% of its wholly owned subsidiary
ICICI Financial Services to foreign investors, various reports
say.

The unit holds the bank's investments in the insurance and
mutual fund businesses.

"This brings to an end the long-running controversy over ICICI
Bank's holding company structure," The Economic Times says.  
According to The Times, FIPB had previously rejected the
proposal because it seemed that the holding company might breach
the 26% ceiling for foreign investment in insurance companies.

The bank, however, will still need the approval of the Reserve
Bank of India and the finance minister.

After the final approvals, ICICI Bank will sell 5.9% in ICICI
Financial to foreign investors to help fund the organic growth
of its subsidiaries, The Times relates.

According to The Times, the bank is also looking to list the
subsidiary.  The bank had received commitments of INR2,650 crore
to buy 5.9% stake in ICICI Financial, pegging its value at about
US$11 billion, the news agency says.  The foreign investors of
the ICICI Financial include Nomura, Swiss Re, Sequoia Capital,
Sorus and Goldman Sachs, which according to The Times will be
the largest foreign investor.

ICICI Financial holds 74% of both ICICI Prudential Life
Insurance Co. and ICICI Lombard General Insurance Co., and owns
51% of both ICICI Prudential Asset Management Co. and ICICI
Prudential Trust Ltd., domain-b.com relates.  

India-based ICICI Bank Ltd -- http://www.icicibank.com/-- is a
diversified financial company that provides a range of banking
and financial services to customers, including retail banking,
project and corporate finance, working capital finance,
insurance, venture capital and private equity, investment
banking, broking, and treasury products and services.  The bank
operates in two business segments: consumer and commercial
banking, and investment banking.  ICICI has a network of over
741 branches and over 3,300 ATMs in India.

The bank has operations in Russia and the United States.

                          *     *     *

Moody's Investors Service, on Apr. 24, 2007, said that ICICI
Bank 's Foreign Currency Deposit Rating is unchanged at Ba2.

ICICI Bank carries Fitch Ratings' 'C' Individual Rating and 'BB'
Subordinated Debt Rating.


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

BAKRIE SUMATERA: Signs Oil Supply Deal With Guntung Idamannusa
--------------------------------------------------------------
PT Bakrie Sumatera Plantations signed an offtake agreement and a
management agreement with PT Guntung Idamannusa.

According to a report by Antara News, Bakrie Sumatera will be
supplied with 23,100 tons of crude palm oil by Guntung
Idamannusa pursuant to the terms of the offtake pact.

The report, citing Bakrie Sumatera Executive Fitri Barnas,
relates that under the management agreement, the company would
provide managerial and technical services to manage 10,815.82 ha
of oil palm plantations and oil palm processing plants owned by
GIN in Pelangsiran sub district, Riau province.  Ms. Barnas told
Antara News that the managerial services were meant to increase
the productivity of oil palm plantations owned by GIN to at
least 23,100 tons of crude palm oil.  

Headquartered in Sumatra, Indonesia, Bakrie Sumatera Plantations
Tbk is Indonesia's third largest largest publicly traded
plantation company.  It is 54% owned by PT Bakrie & Brothers
Tbk, and its products include crude palm oil, palm kernel oil
and latex.  It was listed in 1990 on the Jakarta Stock Exchange.

BSP carries Standard & Poor's Ratings Services' 'B' corporate
credit rating.  The outlook is stable.

The Troubled Company Reporter-Asia Pacific reported on
March 1, 2007, that Moody's Investors Service affirmed the B2
senior secured debt rating for Bakrie Sumatera Plantations Tbk
following its decision to increase the existing bond size of
US$110 million by another US$45 million.  At the same time,
Moody's also affirmed the B2 corporate family rating for BSP.  
The outlook for all the ratings is stable.


BANK DANAMON: Unit Signs Pact With Baznas Dompet Dhuafa
-------------------------------------------------------
PT Bank Danamon Indonesia Tbk's unit Bank Danamon Syariah and
the national zakat agency Baznas Dompet Dhuafa signed an
agreement for the allocation of zakat, or obligatory tax
required of Moslems, as well as charity funds generated from the
Dirham Card, the first syariah card in Indonesia.  The agreement
was signed by Hendarin Sukarmadji, Director of Bank Danamon
Syariah and Rahmad Riyadi President of Baznas Dompet Dhuafa.

Dirham Card uniquely offers the full functionality and benefits
of a conventional credit card, while the relationship among
transacting parties is based on syariah regulations.  Bank
Danamon Syariah requires its Dirham Card holders to maintain a
mandatory goodwill investment and manages a charity fund, or
Qardhul Hasan, generated from its syariah card business
activities, for example from late payment fees, which will be
used to fund charity activities.

"This agreement with Baznas Dompet Dhuafa reflects the high
social responsibility, of Dirham Card in particular and of the
business activities of Bank Danamon Syariah, in general," said
Hendarin Sukarmadji. "The zakat from this goodwill investment
feature is one of the advantages from Dirham Card. We also aim
to educate and encourage customers to save through the mandatory
goodwill investment which amounts to 10 percent of their credit
limit.  Cardholders can opt to donate the yield or revenue-
sharing generated from this investment," he added.

Rahmad Riyadi, President of Baznas Dompet Dhuafa said, "Our
collaboration with Bank Danamon is one of the ways Baznas Dompet
Dhuafa will take to improve service quality to the contributors,
by making possible zakat payments through features of the Dirham
Card."

The Dirham Card is a product of the collaboration between Bank
Danamon and MasterCard with all networks or merchants throughout
the world to provide payment services to card holders.

The uniqueness of the Dirham Card lies in the 'akad', the term
for transaction contract or scheme which it uses; namely Ijarah,
Kafalah and Qardh. The Dirham Card is introduced based on Fatwa
No. 54/DSN-MUI/X/2006 of the Indonesian Ulemas Council's
National Syariah Board or Dewan Syariah Nasional Majelis Ulama
Indonesia and Bank Indonesia Letter No. 9/183/DPbS/2007 on the
approval for the Danamon Syariah Card.

The three contracts, or 'akad', can be distinguished as follows.
On the Ijarah scheme, the card issuer acts as the provider of
payment and service system for the card holder.  For the
provision of this service, the card holder is charged a
membership fee.  Meanwhile, in the Kafalah transaction scheme,
Bank Danamon Syariah as card issuer, acts as the guarantor for
the card holders against the merchants, of all obligations to
pay, which arise from the transactions between card holder and
merchant, and/or cash withdrawal from banks other than the ATM
of the bank issuing the card.  Based on Kafalah, the card issuer
can accept a fee.  Under the Qardh scheme, the card issuer acts
as the lender to the card holder through the cash withdrawal
from the bank or ATM of the card issuing bank.  The card holder
is therefore obliged to return the same amount of funds he
withdrew at the time.

                   About Bank Danamon Syariah

Bank Danamon Syariah was initiated in 2002 with the first
Syariah Branch Office in Ciracas, East Jakarta. Bank Danamon
Syariah is now supported by syariah branch offices in 7 (seven)
major cities, namely, Jakarta, Bukit Tinggi, Banda Aceh,
Surabaya, Martapura, Solo and Makassar, as well as 3 (three)
syariah sub-branch offices and 7 (seven) office channeling
branch offices in the Jakarta area, in addition to 5 (five)
office channeling branch offices in East Java. As per 30 June
2007, Bank Danamon Syariah's third party funds reached Rp 455
billion, while its total financing in various syariah schemes
reached Rp 309 billion, and total asset reached Rp 549 billion.

                    About Baznas Dompet Dhuafa

Baznas Dompet Dhuafa is the Joint-Operation Body that was formed
from the cooperation between Badan Amil Zakat Nasional (Baznas)
and Dompet Dhuafa Republika Foundation (Dompet Dhuafa).
Established since 20 September 2006, in the first ten months
period raised Rp 40 billion of charity fund from the public. By
the end of February 2007, Baznas Dompet Dhuafa has 16.000
consolidated donators that continuing pay zakat and charity
fund.

Baznas was formed in 2001 based on the Decree of President
Number 8/2001, following the Law No. 38/1999 on Zakat
Management. Dompet Dhuafa was established in 1994 as legalized
with the Notary Act of H. Abu Jusuf, SH, dated 14 September
1994, Number 41. Established with the purpose to improve the
dignity of human life through fundraising and utilization of
zakat, charity fund and wakaf of the public. According to the
Law No. 38/1999 on Zakat Management, Dompet Dhuafa was
acknowledged as zakat institution by Minister of Religious
Affairs Decree Number 439/2001.

                     About Bank Danamon

Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia
Tbk provides a range of products and services, including
Consumer Banking, Small to Medium-Sized Enterprise and
Commercial, Trade Finance, Treasury Product, Cash Management,
Other Services, Financial Planning and e-Banking.  Danamon
Syariah is the Bank's business unit that provides its customers
with syariah banking products and services.  The bank also   
operates Danamon Simpan Pinjam, which caters to micro banking
customers.  DSP is divided into two groups: DSP to serve and
help enterprises in micro and small-scale banking, and DSP for
individual customers with fixed income.  Bank Danamon is  
supported by 86 domestic branch offices, 325 domestic supporting  
branch offices, 25 domestic cash office, 739 supporting branches  
for DSP, six personal banking branch offices, 10 syariah branch  
offices and one overseas branch.

The Troubled Company Reporter-Asia Pacific reported on Aug 15,
2007, that Fitch Ratings has upgraded the National Long-term
rating of PT Bank Danamon Indonesia Tbk to 'AA(idn)' from 'AA-
(idn)' (AA minus(idn)) while affirming all its other ratings as
follows:

   * Long term foreign currency Issuer Default Rating (IDR)
     'BB-' with a Positive Outlook,

   * Short term foreign currency IDR at 'B',

   * Individual Rating 'C/D',

   * Support Rating '4' and

   * Support Rating Floor 'B'.

The Outlook on the National rating remains Stable.

On May 8, 2007, Moody's Investors Service published the rating
results for Indonesia's PT Bank Danamon Indonesia Tbk as part of
the application of its refined joint default analysis and
updated bank financial strength rating methodologies.

The specific ratings changes are as follows:

      * BFSR is changed to D with a positive outlook from D-

         -- This action also concludes a review for possible
            upgrade on the BFSR initiated on July 4, 2006

      * Foreign Currency Deposit Ratings are unchanged at B2/Not
        Prime

      * Foreign Currency Debt Rating for subordinated
        obligations is unchanged at Ba3.

      -- Foreign Currency Deposit and Foreign Currency Debt
         Ratings have positive outlooks in line with the outlook
         on the country's sovereign ratings outlook


GARUDA INDONESIA: Results of Inquiry to be Released on Sept.
------------------------------------------------------------
PT Garuda Indonesia's investigation result regarding the
Yogyakarta accident last March will be released at the end of
September, Tempo Interactive reports noting that the National
Committee for Transportation Safety has completed the final
report draft last month.

As reported by the Troubled Company Reporter - Asia Pacific on
Mar. 8, 2007, Garuda Indonesia Airline Boeing 737-400 plane
carrying 140 people burst into flames on landing at Yogyakarta
airport.  Twenty-three people have died in the crash.

Tempo Interactive relates that Tatang Kurniadi, the Committee's
chairman, said that they are just awaiting the response of
related parties in terms of the 60-day deadline.  The responses
include those from the United States' National Transportation
Safety Board and the Australia Transportation Safety Board, the
news agency notes.

The draft, which contains 25 recommendations including pilot
capacity, has also been conveyed to Garduda Indonesia and the
Boeing Co as the aircraft producer, Mr. Kurniadi told Tempo.

The other recommendation is the request for the airport
management to build a lane for fire engines, Tempo relates.  In
the Garuda accident, it was found that the Adisutjipto Airport
Yogyakarta did not have a special lane for fire engines so the
evacuation was difficult, the agency adds.

                      About Garuda Indonesia

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

The airline was affected by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005.  It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates.  Garuda is concentrating its efforts on repaying its debt
with foreign creditors under the European Credit Agency, which
was due on Dec. 31, 2005.

The company, until November 2006, suffered an unaudited loss of
IDR390 billion, which was lower than the IDR672 billion,
recorded in the same period the year before.

Garuda is currently undergoing debt restructuring.  The Troubled
Company Reporter-Asia Pacific reported on December 20, 2006,
that in line with the airline's debt restructuring, it continues
to consistently pay debt interest.


PERTAMINA: To Build Java LNG Plant With Korea Gas Corp
------------------------------------------------------
PT Pertamina (Persero) may cooperate with Korea Gas Corp to
build a liquefied natural gas terminal on Java island, Reuters
reports.

According to the report, Pertamina is trying to phase out
expensive oil-fired power generation and use cleaner gas.  But
it faces limited supplies due to long-term LNG export contracts,
which it is reviewing.

Ari Soemarno, Pertamina president director, said that they are
seeking a partner to build an LNG terminal with a capacity of
between three to four million tonnes per year.  One possibility
is to cooperate with KOGAS knowing that they have experience in
this project, Reuters quotes Mr. Soemarno as saying.

Mr. Soemarno said that the cost was not clear yet and did not
give a time frame, the report adds.

                      About Pertamina

PT Pertamina (Persero) -- http://www.pertamina.com/-- is a             
wholly state-owned enterprise.  The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company.  In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream.  Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day.  However, these refineries only cover about
three-quarters of domestic oil demand, the rest is supplied by
imports.

Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.

In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java.  Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.


PERUSAHAAN GAS: Appoints Heri Yusup as Corporate Secretary
----------------------------------------------------------
PT Perusahaan Gas Negara (Persero) Tbk Director's Decree number
011500.K/751/UT/2007 dated July 30, 2007, disclosed the
appointment of Mr. Heri C, SH., LL.M to replace Mr. Widyatmiko
Bapang, SH. as the Corporate Secretary.

Mr. Heri C, SH will start acting as the new corporate secretary
starting July 30, 2007.

The disclosure of the new Corporate Secretary's appointment has
been informed to the Capital Market Regulator and has been
announced to public in the national newspaper.

Headquartered in Jakarta, Indonesia, -- http://www.pgn.co.id/--     
is a gas and energy company that is comprised of two core
businesses: distribution and transmission.  For distribution,
PGN signs long-term supply agreements with upstream operators,
which give the company scheduled and reliable gas volumes and
fixed gas prices.  These volumes are subsequently sold to
commercial and industrial customers under gas sales agreements.  
Under these agreements, sales volumes are take-or-pay and the
gas pricing is fixed and in US dollar.  On the transmission
business, PGN ships gas on behalf of the upstream suppliers
under a fixed US dollar tariff with ship-or-pay volumes
agreements.   The company is 59.4% owned by the Government of
Indonesia.

The Troubled Company Reporter-Asia Pacific reported on
Jan. 18, 2007, that Moody's Investors Service affirmed the Ba2
corporate family rating of PT Perusahaan Gas Negara (Persero)
Tbk.  At the same time, Moody's affirmed the Ba3 debt ratings of
PGN Euro Finance 2003 Ltd, which is guaranteed by PGN.  The
ratings outlook is stable.  This affirmation followed the recent
announcement of a delay in the South Sumatera West Java gas
commercialization.

The TCR-AP reported on Dec. 21, 2006, that Standard & Poor's
Ratings Services revised the outlook on Perusahaan Gas to
positive from stable.  The ratings on the company are affirmed
at 'B+'.

On June 28, 2006, the TCR-AP stated that Fitch Ratings Agency
assigned these ratings to PT Perusahaan Gas Negara Tbk:

   -- Long-term foreign currency Issuer Default Rating 'BB-';

   -- Long-term local currency IDR 'BB-'; and

   -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due
      2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN
      and its subsidiaries 'BB-'.


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

DELPHI CORP: Obtains Court Nod on US$75MM Asset Sale to Umicore
---------------------------------------------------------------
Delphi Corporation and certain of its affiliates received
approval from the U.S. Bankruptcy Court for the Southern
District of New York for the sale of assets related to the
company's global original equipment and aftermarket catalyst
business to Umicore for US$75 million, subject to adjustments,
Delphi officials stated.

"Delphi continues to make significant progress with its
transformation plan," John Sheehan, Delphi's chief restructuring
officer, said.  "This sale is consistent with our ongoing effort
to refine our product portfolio to feature the core technologies
for which we have competitive and technological advantages.  
This transaction is another step toward our emergence."

The court also approved Catalytic Solutions Inc. as the
alternate bidder, and authorized Delphi to consummate the sale
with CSI in the event the transaction between Delphi and Umicore
does not close.

Delphi selected Umicore as the lead bidder and received court
approval to proceed with the sale process for the catalyst
business.  

In accordance with bidding procedures approved by the bankruptcy
court, Delphi conducted an auction to allow other qualified
buyers to bid on the assets related to the catalyst business.  
At the conclusion of the auction, Delphi selected Umicore as the
successful bidder.

Delphi will carefully manage the transition of the business, and
the sale will be completed in coordination with Delphi's
customers, employees, unions and other stakeholders. The
transaction, which is subject to certain closing conditions,
including completion of consultation procedures with certain
unions and works councils, and completion of the closing
documents, is expected to close before year-end 2007.

Although the company is selling its catalyst business, it will
continue to provide full engine management systems, including
air and fuel management, combustion and valvetrain technology,
and exhaust systems technology through its gas EMS product
business unit.

                     About Delphi Corporation

Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ) --
http://www.delphi.com/-- is the single supplier of vehicle  
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000
in total assets and $23,851,000,000 in total debts.  The
Debtors' exclusive plan-filing period expires on Dec. 31, 2007.


FORD MOTOR: Inks Deal w/ Linamar Corp. on ACH & Converca I Sale
---------------------------------------------------------------
Ford Motor Company has signed Definitive Agreements with Linamar
Corporation, for the sale of the Automotive Components Holdings'
Power Transfer Unit business and its Converca I Plant in Nuevo
Laredo, Mexico.  The sales transaction is expected to be
completed on September 1.
    
The ACH Converca I Plant is among the manufacturers of PTUs in
the North American auto industry.  As part of the deal, assets
of the plant will be transferred to Linamar.  The plant employs
about 500 employees.
    
Other products produced at the plant are propshafts, stabilizer
bars and steering gears.  Stabilizer bar production is scheduled
to end late this year, while the propshaft and steering gear
production will continue to be manufactured at Converca for the
immediate future.
    
"This sale is another demonstration of our commitment to achieve
the material cost goals in our Way Forward strategy," Mark
Fields, president of The Americas and Ford executive vice
president, said.  "This is critical as we work toward our goal
of profitability in North America by 2009."
    
The sale will be the second for ACH this year.  The first sale,
Disclosed in April, involved the fuel rail business and the ACH
Mexican subsidiary in El Jarudo.  MOUs have been signed and
discussions are underway for the sale of six other plants and
one business from a seventh plant.
    
"We remain focused on selling or idling our operations," Al Ver,
ACH CEO and COO and Ford Motor Company vice president, said.  
"We are pleased with our progress, but aware that we still have
much to do in a short time."
    
ACH is a temporary company, managed and established by Ford
Motor
Company in October 2005 to ensure the flow of quality components
and systems to Ford while ACH prepared its component operations
for sale or idling.  The $4 billion company is supported by
about 12,000 people including about 6,000 UAW employees leased
from Ford.

                    About Linamar Corporation

Headquartered in Guelph, Ontario, Linamar Corporation (TSX: LNR)
-- http://www.linamar.com/-- is a designer and manufacturer of  
precision metallic components and systems for the automotive
industry, and mobile industrial markets.   Building on the
foundation of over 40 years of successful growth, the company is
a supplier of engine, transmission/driveline, modules & systems
and mobile aerial work platforms.  
    
                       About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles    
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

The company has operations in Japan in the Asia Pacific region.  
In Europe, the company maintains a presence in Sweden, and the
United Kingdom.  The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.

                          *     *     *

In July 2007, Moody's Investors Service said that the
performance of Ford Motor Company's global automotive operations
for the second quarter of 2007 was significantly stronger than
the previous year and better than street expectations.

However, Moody's explained that the company continues to face
significant competitive and financial challenges, and the rating
agency expects that Ford's credit metrics and rate of cash
consumption will likely remain consistent with no higher than a
B3 corporate family rating level into 2008.

According to the rating agency, Ford's corporate family rating
is currently a B3 with a negative outlook.  The rating is
pressured by the shift in consumer preference from high margin
trucks and SUVs, and by the need for a new 2007 UAW contract
that provides meaningful relief from high health care costs and
burdensome work rules, Moody's relates.


FORD MOTOR: Potential Buyers Wary of New EU Emissions Rules
-----------------------------------------------------------
Some bidders for Ford Motor Co.'s Jaguar and Land Rover brands
have expressed concerns over the European Union's new
regulations on carbon-dioxide emissions, Jason Singer and
Stephen Power write for the Wall Street Journal.

The European Commission plans to implement in 2012 new rules
lowering auto emissions and curbing the gases believed to
contribute to global warming, WSJ relates.  Although the
commission plans to require Europe's car makers to reduce the
average carbon-dioxide levels of new cars by roughly 20% over
current levels to 130 grams per kilometer by 2012, details of
how this rule will be enforced haven't been disclosed yet.

The potential for tighter regulation would prove particularly
difficult for private-equity suitors, as they likely won't have
other auto operations with more-efficient vehicles that could
bring down a fleet fuel-economy average, WSJ states.  To bolster
the interest of private-equity buyers, Ford has told potential
buyers it would provide some of the financing itself in response
to turmoil in the debt markets, where private-equity firms often
turn to fund their deals.

                           Sale Talks

Meanwhile, deal negotiations are moving forward as planned.  
Ford has scheduled management meetings with India's Tata Motors
and Mahindra & Mahindra with detailed due diligence to follow,
the Economic Times reports, citing industry insiders as its
source.

The TCR-Europe reported on July 27, 2007, that bidders,
including private equity groups Ripplewood Holdings, One Equity
Partners, TPG Capital, and Cerberus Capital Management, as well
as India's Tata Motors and Mahindra & Mahindra had submitted
indicative offers for Land Rover and Jaguar.  Ford's financial
and legal advisers have begun preparing information to
facilitate due diligence for potential bidders of the two
marques as the company hopes to reach a tentative deal by
Sept. 30, 2007.

Concurrently, former Ford CEO Jacques Nasser, who is now a
managing director at One Equity Partners LLC, met with a senior
official from the European Commission in July to ask how the new
EU regulations would be implemented, WSJ states, quoting a
person familiar with the matter.  The informal meeting was
inconclusive although the commission has revealed it intends to
avoid "any unjustified distortion of competition" between car
makers and is expected to outline various proposals for
structuring new regulations later this year.

                      About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles   
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

The company has operations in Japan in the Asia Pacific region.  
In Europe, the Company maintains a presence in Sweden, and the
United Kingdom.  The Company also distributes its brands in
various Latin American regions, including Argentina and Brazil.

                            *   *   *

As reported in the TCR-Europe on July 31, 2007, Moody's
Investors Service said that the performance of Ford Motor
Company's global automotive operations for the second quarter of
2007 was significantly stronger than the previous year and
better than street expectations.

However, Moody's explained that the company continues to face
significant competitive and financial challenges, and the rating
agency expects that Ford's credit metrics and rate of cash
consumption will likely remain consistent with no higher than a
B3 corporate family rating level into 2008.

According to the rating agency, Ford's corporate family rating
is currently a B3 with a negative outlook.  The rating is
pressured by the shift in consumer preference from high margin
trucks and SUVs, and by the need for a new 2007 UAW contract
that provides meaningful relief from high health care costs and
burdensome work rules, Moody's relates.


JAPAN AIRLINES: To Boost Fuel Surcharge Fare from October 2007
--------------------------------------------------------------
Japan Airlines International Company, Limited, requested
approval from the Japanese Ministry of Land, Infrastructure and
Transport, to revise the fuel surcharge placed on nearly all
international passenger tickets issued on or after October 1,
2007.

JAL has decided to increase the fuel surcharge for tickets
issued between October 1 and December 31 2007, as the price of
Singapore kerosene-type jet fuel has averaged US$84.37 per
barrel over the 3 month period May-July 2007.

Based on ticket sales in Japan, the new surcharges per person
per sector flown range from JPY2,000 on a Japan-Korea ticket (up
from JPY1,700) to JPY17,000 on a Japan-Brazil ticket (up from
15,500).  The surcharge on a Japan-Europe ticket or a Japan-
North America ticket will be JPY13,000, up from JPY12,000.

A copy of the complete fuel surcharge revision can be viewed for
free at the company's Web site at:   

        http://www.jal.com/en/press/0001085/1085.html

The new fuel surcharges will be fixed at these levels throughout
the three-month period beginning October 1.

JAL originally introduced the fuel surcharge on international
tickets in February 2005 in response to unprecedented rises in
the cost of fuel.  The surcharge will be progressively reduced
as the price of fuel decreases, and will be cancelled completely
when the price of Singapore kerosene stays below the benchmark
of US$45.00.

The fuel surcharge charged for tickets issued from January to
March 2008 will be reviewed based on the average price of fuel
for August through to October 2007.

The company will continue conducting a wide range of
countermeasures to limit the full impact of the price increase
including fuel hedging, fuel consumption reductions, and the
introduction of more fuel-efficient small and medium-sized
aircraft to its fleet.

Despite these measures, the company is still reluctantly obliged
to ask its international passengers to bear part of the burden
caused by the unprecedented increase in the price of fuel over
the past few years.

                       About Japan Airlines

Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger  
of Japan Airlines and Japan Air Systems to boost domestic
coverage.  Japan Airlines flies to the United States, Brazil and
France.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on
Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed
its 'B+' long-term corporate credit and issue ratings on Japan
Airlines Corp. (B+/Negative/--) following the company's
announcement of its new medium-term management plan.  The
outlook on the long-term corporate credit rating is negative.

The TCR-AP reported on Oct. 10, 2006, that Moody's Investors
Service affirmed its Ba3 long-term debt ratings and issuer
ratings for both Japan Airlines International Co., Ltd and Japan
Airlines Domestic Co., Ltd.  The rating affirmation is in
response to the planned restructuring of the Japan Airlines
Corporation group on Oct. 1, 2006 with the completion of the
merger of JAL's two operating subsidiaries, JAL International
and Japan Airlines Domestic.  JAL International will be the
surviving company.  The rating outlook is stable.

Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position.  Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.


SANYO ELECTRIC: To Sell Chilled-Display Units in U.S. and India
---------------------------------------------------------------
Sanyo Electric Co., Ltd., will start selling chilled display
units and refrigerators for use in retail stores in India and
the United States, reports the Jiji Press.

According to the report, Sanyo's plants in Thailand and Mexico,
which have been making home-use refrigerators, will be the ones
to manufacture store-use chilled display units and
refrigerators, following the company's successful outsourcing of
its production of home-use refrigerators to Chinese consumer
electronics maker, Haier Group Co.

The Tijuana, Mexico plant has reportedly started test production
of chilled display units and will begin full-scale output within
a year for sale in the U.S. market.

Also, in an August 10, 2007 report by the Troubled Company
Reporter-Asia Pacific, Sanyo has invested THB466 million in its
Thai plant which will be used for the installation of new
machinery and the upgrade for the manufacturing of a wider range
of products, including freezers and coolers.

Jiji writes in its report that Sanyo plans to increase the
annual sales of its Thai unit from the current JPY2 billion to
JPY3 billion, which will ship store-use chilled display units
and refrigerators to Southeast Asian countries.

The Osaka-based consumer electronics maker, conveys the article,
hopes that reinforcing sales of those profitable products will
help it achieve a turnaround.

                      About Sanyo Electric

Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading  
manufacturers of consumer electronics products.  The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.

                          *     *     *

In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.


SOLO CUP: July 1 Balance Sheet Upside-Down by US$22,854,000
-----------------------------------------------------------
Solo Cup Company had total assets of US$1,399,737,000, total
liabilities of US$1,422,591,000, resulting in total
stockholders' deficit of US$22,854,000 as of July 1, 2007.

The company has reduced its net debt by US$140,500,000 since the  
beginning of the year including the retirement of its
US$130,000,000 second lien term loan.  As of July 1, 2007, the
company had in excess of US$100,000,000 of liquidity under its
revolving credit facilities and cash on hand.  Net cash provided
by operating activities during the 26 weeks ended July 1, 2007,
was US$29,100,000 compared to net cash used in operating
activities of US$79,900,000 during the first 26 weeks of 2006, a
US$109,000,000 improvement.  Capital expenditures totaled
US$14,900,000 for the 26 weeks ended July 1, 2007 versus
US$29,600,000 during the first 26 weeks of 2006.

In June 2007, the company entered into a lease agreement in
conjunction with the sale of six of its manufacturing
facilities. It received proceeds of US$130,000,000 that were
used to retire the company's second lien credit agreement dated
March 31, 2006, as amended.  Upon the sale of the six
properties, the company immediately leased them back pursuant to
a 20-year term lease.  The Lease contains four five-year renewal
term options.

                    Second Quarter 2007 Results

The company recorded net income of US$3,200,000 for the 13-week
period ended July 1, 2007, compared to a net loss of
US$299,400,000 for the comparable period in 2006.

The company had net sales of US$650,200,000 for the 13 weeks
ended July 1, 2007, versus US$670,300,000 for the 13 weeks ended
July 2, 2006.  Although net sales decreased, gross profit for
the quarter increased from the year ago period by US$4,700,000
to US$96,700,000, reflecting a gross margin of 14.9%.  Selling,
general and administrative expenses decreased about
US$8,000,000, or 10.8%, to US$65,900,000 for the 13 weeks ended
July 1, 2007, from US$73,800,000 for the 13 weeks ended July 2,
2006.  Operating income for the second quarter 2007 was
US$32,300,000; excluding a US$228,500,000 goodwill impairment
charge taken in the second quarter of 2006, this represents a
US$15,100,000 improvement in operating income over the prior
year.

The decrease in net sales reflects a 5.2% decrease in sales
volume partially offset by a 2.2% increase in average realized
sale price as compared to the 13 weeks ended July 2, 2006.  The
lower volume is a result of the divestiture of the company's
dairy business in Japan in December 2006, which contributed
about US$11,000,000 to net sales in the second quarter of 2006,
as well as a modest volume decrease due to continuing
competitive conditions and the company's ongoing SKU
rationalization efforts.

                    Year-to-Date 2007 Results

For the 26 weeks ended July 1, 2007, the company reported net
sales of US$1,200,000,000, that decreased by about US$40,000,000
over net sales of US$1,240,000,000 for the 26 weeks ended July
2, 2006.  Gross profit year to date is US$143,200,000, compared
to US$145,800,000 year to date in 2006.  Selling, general and
administrative expenses decreased US$16,000,000 this year to
US$125,000,000.  The company reported a net loss for the 26
weeks ended July 1, 2007 of US$35,500,000.

Net sales decreased US$33,300,000, or 2.7%, for the 26 weeks
ended July 1, 2007, compared to the prior year period.  This
decrease reflects a 4.8% decrease in sales volume partially
offset by a 2.1% increase in average realized sales price as
compared to the 26 weeks ended July 2, 2006.  The sale of the
company's Japan dairy business represents about US$21,000,000 of
the decline with the remainder attributed to competitive
pressure and SKU rationalization across product categories.

Year over year, gross profit for the 26 weeks ended July 1,
2007, decreased slightly reflecting raw material costs absorbed
during first quarter 2007 offset by lower freight and
distribution expenses as well as other efficiency improvements
realized during second quarter 2007.  Gross profit for the 26
weeks ended July 2, 2006, included a US$9,800,000 reserve for
spare parts and inventory obsolescence, and US$22,100,000 in
pension curtailment gains.  Excluding these unusual items, the
company's gross margin for the 26 weeks ended July 2, 2006,
would have been 10.8%, compared to gross margin of 11.9% for the
26 weeks ended July 1, 2007.

A full-text copy of the company's second quarter report is
available for free at http://ResearchArchives.com/t/s?2288

"During the second quarter, we saw our employees' efforts in
implementing our performance improvement program begin to
positively impact the bottom line," said Robert M. Korzenski,
chief executive officer.  "We are achieving improvements in our
manufacturing and supply chain operations ahead of schedule, we
are continuing to reduce our SG&A costs and we are doing a
better job managing our working capital.  We also completed a
sale-leaseback transaction during the quarter that reduced our
debt and increased our financial flexibility."

Mr. Korzenski concluded, "We continue to face rising raw
material prices and incur high interest expense while operating
in a competitive environment.  However, our second quarter
results show that our business is growing stronger.  Our
liquidity position continues to improve as we better manage our
cash and working capital, and reduce our net borrowings.  Going
forward, we are focused on receiving fair value for our products
and services while striving for best-in-class service levels,
and continuing to pursue efficiency improvements across the
board.  We intend to maintain our focus on these efforts as the
year progresses."

                      About Solo Cup Company

Solo Cup Company -- http://www.solocup.com/-- manufactures   
disposable foodservice products for the consumer/retail,
foodservice, packaging, and international markets.  Solo Cup has
broad expertise in paper, plastic, and foam disposables and
creates brand name products under the Solo, Sweetheart, Fonda,
and Hoffmaster names.  The company was established in 1936 and
has a global presence with facilities in Japan, Canada, Europe,
Mexico, Panama and the United States.

                          *     *     *

As reported in the Troubled Company Reporter on Mar. 13, 2007,
Moody's Investors Service affirmed the 'B3' corporate family
rating of Solo Cup Company and revised the rating outlook to
negative.


SOFTBANK CORP: Shares Fall After Daiwa Analyst Cuts Rating
----------------------------------------------------------
Softbank Corp. shares fell after an analyst at Daiwa Institute
of Research Ltd., downgraded its "buy" rating to "outperform,"
citing limited reductions in expenses to retain customers,
Masaki Kondo writes for Bloomberg News.

Mr. Kondo conveys that Softbank's shares on August 16, 2007,
dropped 4.8% to JPY2,280 at the 11 a.m. break on the Tokyo Stock
Exchange.

The article quotes analyst Kenji Nishimura as saying,
"Softbank's expenses for customers haven't been much reduced."  
He added that the company pays JPY40,020 in costs per customer,
little changed from JPY43,800 a year earlier and the expenses
included discounts on subscriptions and handset subsidies.

Softbank, according to Mr. Kondo, offers Japan's cheapest
monthly plan of JPY980.  To cut expenses, the Tokyo-based
company, in September, began allowing installment payments for
users who must pay the balance if they break the contract.

                    About Softbank Corp.

Based in Tokyo, Japan, Softbank Corporation --
http://www.softbank.co.jp/-- is a leading Japanese  
telecommunications and media corporation.  SoftBank was
established on September 3, 1981.  The company operates in eight
business segments:

   * Broadband Infrastructure Segment
   * Fixed-line Telecommunications Segment
   * e-Commerce Segment
   * Internet Culture Segment
   * Broadmedia Segment
   * Technology Services Segment
   * Media & Marketing Segment
   * Overseas Funds Segment

Softbank is also involved with leisure and service operations,
e-finance, holding company functions for overseas operations,
and back-office services in Japan.  SoftBank's corporate profile
includes various other companies such as Japanese broadband
company Cable & Wireless IDC, cable company BB-Serve, and gaming
company GungHo Online Entertainment.  In 2006, SoftBank bought
Vodafone Japan, giving it a stake in Japan's US$78 billion
mobile market.

As of March 31, 2007, the company's paid-in capital was
JPY163.3 billion.

                          *     *     *

Troubled Company Reporter-Asia Pacific reported on June 7, 2007
that Standard & Poor's Rating Agency lifted its long-term
corporate credit and senior unsecured debt ratings to BB from
BB- in light of the company's increasing earnings stability.  
The outlook for the long-term credit rating is stable.

According to the Troubled Company Reporter - Asia Pacific,
Moody's Investors Service, on August 9, 2006, upgraded Softbank
Corp.'s stable long-term debt rating and issuer rating to Ba2
from Ba3, concluding a review initiated on March 17, 2006, when
the company announced that it would acquire a 97.7% stake in
mobile phone giant Vodafone Group's Japanese unit, Vodafone K.K.

On Feb. 12, 2007, the TCR-AP reported that Softbank Corp.'s net
profit slipped 66% to JPY7.4 billion in the 2006 third quarter
because of higher taxes and declines in extraordinary income.   
The company's revenue more than doubled to JPY702.1 billion in
the 2006 third quarter from JPY287.5 billion in the same period
the previous fiscal year.


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

BHK INC: Signs KRW4.5-Bil. Supply Contract with Trety LTD
---------------------------------------------------------
BHK Inc. has signed a contract worth KRW4,517,856,000 to supply
EGO Pockets, GPS-based mobile golf personal digital assistant,
and cart cradles to Trety LTD in Hong Kong, Reuters reports.

Seoul, Korea-based BHK Inc. is engaged in international trading.
The company's products consist of liquid crystal display
televisions (LCD-TV's), electronic products, bed sheets,
pillows, pillowcases, curtains and clothing.  The company sells
its bedding products in the department stores under the brand
name Pierre Cardin.  Currently, the company is also in the
development stage for launching of a new business segment, which
specializes in biomedical products, namely MyoCell, for heart
muscle regeneration.

The Troubled Company Reporter - Asia Pacific reported on
August 17, 2007, that the company has a shareholders' equity
deficit of US$17.38 million on total assets of US$24.36 million.


C&C ENTERPRISE: Seeks Injunction Against Delisting Decision
-----------------------------------------------------------
C&C Enterprise Co., Ltd. has applied for an injunction against
Korea Exchange's decision to delist the Company shares from
KOSDAQ, on August 16, 2007, Reuters reports.

Headquartered in Seoul, Korea, C&C Enterprise Co., Ltd.
-- http://www.cncen.com/-- is specialized in the provision of      
electronic money systems.  The company provides its services
under three categories: automatic fare collection (AFC), smart
card and intelligent transport systems (ITS).  Its AFC system
enables deferred payment on public transit usages.  Its smart
card system stores money values electronically in the integrated
circuit (IC) cards and use electronic money for payments to
purchase products or services.  Its ITS provides solutions to
reduce fare collection and transaction time and integrate
various fare payment methods.  In addition, the company offers
access control, digital video record (DVR) and remote control
systems and other related services.

The Troubled Company Reporter-Asia Pacific's "Large Companies
with Insolvent Balance Sheets" column on August 17, 2007, stated
that the company had a US$14.50 million shareholders' equity
deficit on total assets of KRW28.05 million.


SPATIALIGHT INC: June 30 Balance Sheet Upside-Down by US$11.9MM
---------------------------------------------------------------
SpatiaLight Inc. reported its financial results for the period
ended June 30, 2007.

The company's consolidated balance sheet at June 30, 2007,
showed US$5.9 million in total assets and US$17.8 million in
total liabilities, resulting in a US$11.9 million total
stockholders' deficit.

The company's consolidated balance sheet at June 30, 2007, also
showed strained liquidity with US$925,774 in total current
assets available to pay US$16.6 million in total current
liabilities.

Net loss was US$6.4 million and US$12.3 million, respectively
for the second quarter and six months ended June 30, 2007,
versus US$5.3 million and US$10.9 million, respectively for the
same periods in 2006.  Much of this loss was non-cash due to the
impact of stock based financing and associated expenses.  

The company recognized revenue of approximately US$3,000 and
US$59,000 during the quarters ended June 30, 2007, and 2006,
respectively. Revenue in both periods was derived primarily from
sales of LCoS Sets to LGE.

Net cash used in operating activities totaled approximately
US$1.8 million and US$3.5 million for the three months ended
June 30, 2007 and 2006, respectively, and approximately US$4.2
million and US$7.7 million for the six months ended June 30,
2007, and 2006, respectively.  Cash used in operating activities
decreased for the three and six month periods ended June 30,
2007, as compared to the same periods in 2006 primarily due to
decreased operations due to financial constraints.

Net loss for the quarter includes selling, general and
administrative expenses of US$1.6 million and US$2.9 million,
respectively for the second quarter and six months ended June
30, 2007, compared to US$2.9 million and US$5.5 million,
respectively for the same periods in 2006, reflecting
significant reduction in spending rates and in stock based
compensation.  SG&A expenses include administrative costs
associated with both the company's US and Korean facilities.  
The cost reductions include reductions in staffing as well as
reduced legal, accounting, consulting and other general and
administrative expenses.

Research and development expenses were US$405,000 and
US$699,000, respectively, for the three and six months ended
June 30, 2007, versus US$411,000 and US$653,000, respectively,
for the same periods in 2006.  The slight decrease in the three
months is due primarily to timing differences while the overall
increase for the six month period is a result of increased
spending related to the company's agreements with Deocom, Foreal
and the Joint Development Agreement with SI Infocomm and SCRAM
Technologies.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2007, are available
for free at http://researcharchives.com/t/s?2270

                        Going Concern Doubt

As reported in the Troubled Company Reporter on March 23, 2007,
Odenberg, Ulakko, Muranishi & Co. LLP, in San Francisco,
expressed substantial doubt about SpatiaLight Inc.'s ability to
continue as a going concern after auditing the company's
financial statements for the years ended Dec. 31, 2006, and
2005.  The auditing firm pointed to the company's recurring
operating losses, negative cash flows from operations, negative
working capital position, and stockholders' deficit.

                         About SpatiaLight

SpatiaLight, Inc. -- http://www.spatialight.com/-- founded in   
1989, manufactures high-resolution Liquid Crystal on Silicon
microdisplays for use in high definition televisions and other
display applications.  The company manufactures its products at
its facility in South Korea.


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

KUMPULAN BELTON: Bursa Defers Delisting Until Decision on Appeal
----------------------------------------------------------------
The Bursa Malaysia Securities Bhd deferred the securities
delisting of Kumpulan Belton Bhd pending the decision regarding
the company's appeal on the bourse's initial judgment.

As reported by the Troubled Company Reporter-Asia Pacific on
Aug. 14, 2007, the Bursa Securities decided to delist and remove
the securities of Kumpulan Belton from its official list on
August 21, after the company failed to submit it regularization
plan to the Securities Commission and other relevant
authorities.

Headquartered in Perak Darul Ridzuan, Malaysia, Kumpulan Belton
Berhad -- http://www.beltongroup.com/-- manufactures and sells    
automotive suspension parts and components.  Other activities
include property development and investment, provision of
machining and heat treatmentservices and investment holding.   
Operations of the Group are carried out in Malaysia and
Australia.

Kumpulan Belton was identified as an affected listed issuer of
Practice Note 17, as its consolidated shareholders' equity as of
December 31, 2005, was less than 25% of its issued an paid up
capital.  As an affected issuer, the Company is required to
submit a Regularization Plan to the relevant authorities for
approval and implement the Regularization Plan within the
timeframe stipulated by the relevant authorities.


MALAYSIA AIRLINES: Unveils Rural Air Division's Mgmt Team
---------------------------------------------------------
Malaysia Airlines unveiled the management team of its newly
formed unit, MASWings, which will be responsible for the
airline's rural air services business, The Edge Daily reports.

The wholly owned subsidiary of Malaysia Airlines will be led by
a team of eight, divided into the core areas of ground
operations, flight operations and engineering, the report
relates.

"I am delighted to announce MASWings' management team which
brings with them years of experience in running an airline.   
Their expertise especially in the field of operations will be
invaluable in ensuring the smooth running of our services," said
MASWings managing director, Dr Amin Khan who is also MAS' senior
general manager for transition management, said in a press
release.

MASWings will be structured into two divisions - Operations and
Support Services.  General Manager, Wan Abdul Rahim Wan Ishak
was named head of operations, the paper notes.  

Serena Ho will take the role of chief financial officer and will
double-hat as assistant general manager of transition
management.  Meanwhile, the business development and human
resources division will be led by Norsalela Md Din and Nor Aida
Othman respectively.

MAS, which is in the process of taking back the RAS handed over
to Fly Asian Xpress last August, will commence services in Sabah
and Sarawak beginning October 1, 2007 from their main base in
Miri, Sarawak.

MASWings is slated to provide service between the two states and
serve 23 destinations in Sabah and Sarawak and also Labuan.  By
Dec 1, MASWings would have a fleet of eight Fokker 50 and five
Twin Otter aircraft to provide an average of 113 weekly F50 and
80 weekly Twin Otter flights, the airline's statement said.


Headquartered in Selangor, Malaysia, Malaysia Airlines --
http://www.malaysiaairlines.com/-- services domestic and  
international flights.  Its global network comprised 32 domestic
and 86 international destinations.  Of the 86 international
destinations, 17 were operated in collaboration with airlines
partners.

The carrier posted a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes.  In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion to stay afloat and
return to profitability by 2007.  Under the restructuring plan,
the airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
whistle-blowing and stop corporate sponsorship.


OLYMPIA INDUSTRIES: Forms Development Joint Venture w/ Westcity
---------------------------------------------------------------
Olympia Industries Bhd disclosed with the Bursa Malaysia
Securities Bhd that it has inked a memorandum of understanding
with Stonehenge Westcity Property Fund Ltd to jointly develop   
10 acres of land located in the Mont Kiara vicinity.

The development will be carried out on the proposed terms of
60:40 joint venture basis between the company and Westcity and
will include a Newco to be incorporated for the purpose of :

    a) the acquisition of the Land;

    b) the development of the Land in accordance with a
       development plan; and

    c) the sale of the components of the development within 5
       years.

The other salient terms of the MOU also includes:

    1. a valuation to be carried out on the Land; and

    2. agreement on the management role of KHL and Westcity in
       relation to the development of the Land and the execution
       of a management agreement to be entered between the Newco
       and KHL and Westcity Developers Limited.

SWPF was established on July 3, 2006, between Westcity and the
Stonehage Group in Jersey, Channel Islands.  It was established
as a Jersey closed-ended expert fund with the aim of identifying
international property transactions on an opportunistic basis,
diversified across different jurisdictions and property sectors.  
The Fund typically incorporates special purpose vehicles for
each direct property purchase.

Westcity is the property adviser, property acquisition agent and
property manager to the Stonehage Westcity Property Fund.  The
Westcity group is responsible for many major development
projects in the UK property market since 1989. WDL is a wholly-
owned subsidiary of Westcity with core competencies in all
aspects of property development in the UK and Europe.

Stonehenge was established in 1976 and provides international
families with wealth management and fiduciary services.  The
group has over US$24 billion of assets under administration and
has offices in the United Kingdom, Switzerland, Jersey and
Israel.


Headquartered in Kuala Lumpur, Malaysia, Olympia Industries
Berhad organizing and managing numbers forecast pools and public
lotteries, operation of recreation clubs, investment holding and
property development.  Other activities include trading in
securities, paint spraying of aluminium, other metal products
and architectural products, letting of properties, maintaining
and operating internet based transaction facilities and
services, food and beverage business, events organizer and
project management, travel and tours agency, servicing of oil
and gas pipeline, asset management, money lending and
stockbroking.

Operations are carried out in Malaysia, Papua New Guinea and
Singapore.  The Company has incurred continuous losses in the
past and has also been fined many times by Bursa Malaysia
Securities for failing to maintain appropriate standards of
corporate responsibility and accountability to the investing
public.

Malaysian Rating Corp Bhd assigns the rating of BB- to Olympia
Industries Berhad's MYR137,124,246 nominal value of Redeemable
Unsecured Loan Stocks, reflecting the risks associated with the
implementation of the Group's restructuring scheme.

The rating carries a stable outlook.

As reported on the Troubled Company Reporter - Asia Pacific's
insolvent balance sheet column on Aug. 17, 2007, Olympia
Industries Bhd's equity deficit reached US$281.44 million.


STAR CRUISES: Unit Gets US$1 Bil. Equity Investment from Apollo
---------------------------------------------------------------
NCL Corporation Ltd, parent company of Norwegian Cruise Line and
NCL America, announced today that private equity group, Apollo
Management, LP, has agreed to make a US$1-billion cash equity
investment in NCL.

The new investment, in the form of common stock alongside NCL's
existing sole shareholder, Star Cruises, is designed to
strengthen NCL's balance sheet and its ability to continue to
expand what is fast-becoming the youngest fleet in the industry,
and to evolve further the company's successful Freestyle
Cruising concept first introduced in 2000.

"To have an investment on this scale by one of the very top
names in the private equity world is a huge vote of confidence
in the new NCL we have created since Star Cruises became the
owner in 2000," said NCL Corporation's President and CEO Colin
Veitch.

Steve Martinez, Partner at Apollo Management, added, "We are
very excited to be forming this partnership with Star Cruises
and the existing management team of NCL.  Our investment will
help NCL complete its transition into the youngest fleet in the
cruise industry, with a truly original next generation product
with its F3 concept ships.  We believe the NCL brand has
significant growth potential over many years to come."

Under the terms of the proposed investment, which includes an
agreement for additional future distributions to be made
directly by NCL to Star, Apollo will become 50 percent owner of
NCL and will name a majority of the NCL board with certain
consent rights retained by Star.  Star will retain all of its
existing stock in NCL and will, like Apollo, be 50 percent owner
of the recapitalized company.

Star Cruises Chairman and CEO Tan Sri KT Lim, welcomed the new
partner and remarked on the opportunities that lie ahead:
"Apollo's significant financial commitment in NCL's common stock
means we have an equal partner who believes in the business as
much as we do.  This is a powerful validation of what we have
achieved so far and of our vision for the future.  It is also
truly the start of the next - and most exciting - chapter for
this great company."

The proceeds of the Apollo investment will be used to repay
existing NCL indebtedness, greatly increasing the liquidity
available to fund a continuation of the dramatic new building
program that has seen the introduction of eight purpose-built
Freestyle Cruising ships to the fleet in just six years.  The
NCL-owned fleet today (excluding four chartered ships) stands at
19,740 berths, with another 15,000 berths under construction and
under option, including the new Norwegian Gem due for delivery
at the start of October this year.

As part of Apollo's investment in NCL, Apollo and Star have
entered into a sub- agreement relating to NCL's U.S. flagged
Hawai`i operations under the NCL America brand ("NCLA")
providing for deferred consideration to be paid to Star by NCL
in the future.  The sub-agreement is designed to support the
business of NCLA in the near term and permit NCLA time to
realize the benefits of various measures recently implemented to
raise revenue yields and to lower crew turnover and payroll
costs.  Taken together with the pre-money valuation implied by
Apollo's $1 billion payment for 50 percent of the expanded
equity, this added element of the transaction implies a total
enterprise valuation of NCL of approximately $4 billion.

Completion of the transaction is expected early in Q4 2007 and
is subject to customary conditions, including regulatory
approval, Star Cruises shareholder approval, and Star and NCL
lender consents.

The completion of the transaction will constitute a change of
control under NCL's outstanding 10 5/8% senior notes and NCL
expects to make a change of control offer at 101% after
completion as required under the indenture governing the notes.

                     About NCL Corporation

NCL Corporation Ltd. is an innovative cruise company
headquartered in Miami, Florida, with a fleet of 14 ships in
service and under construction.  The corporation oversees the
operations of Norwegian Cruise Line, NCL America, and Orient
Lines.  The company recently took delivery of its newest ship,
Norwegian Pearl, and is currently building Norwegian Gem for
delivery in October of 2007.  In addition, NCL plans to build up
to three new third generation Freestyle Cruising ships for
delivery between 2009 and 2011.

NCL is on target to have the youngest fleet in the industry by
the end of 2007 with the introduction of Norwegian Gem,
providing guests the opportunity to enjoy the flexibility of
Freestyle Cruising on the newest, most contemporary ships at
sea.         

                     About Apollo Management

Founded in 1990, Apollo is a leading private equity and capital
markets investor with more than 17 years of experience investing
across the capital structure of leveraged companies.  The firm
employs over 120 professionals and has offices in New York, Los
Angeles, London, Singapore, Frankfurt and Paris.  Since its
inception, Apollo has managed more than US$33 billion of capital
across a wide variety of industries both domestically and
internationally.  The firm's most recent private equity fund and
its co-investment affiliate have capital commitments of
approximately US$11.6 billion.  Investments in the leisure and
hospitality industries have included Harrahs Entertainment
(pending), AMC Entertainment, Sirius Satellite Radio, Wyndham
International, and Vail Resorts.  Apollo is already active in
the cruise industry, having invested in the upper premium
Oceania Cruises brand earlier this year.  Since buying the line,
Apollo has supported the ordering of two new ships worth
approximately US$1 billion.

                        About Star Cruises

Malaysia-based Star Cruises Limited --
http://www.starcruises.com/-- is a company publicly listed in  
Hong Kong and is a core member of the Genting Group and 36.1%
owned by Resorts World, which is, in turn, 57.7% owned by
Genting Berhad.  Star Cruises operates 22 ships with 35,000
lower berths under five main brands: Star Cruises and Cruise
Ferries, which service Asia Pacific, and three brands under NCL.

Standard & Poor's Ratings Services on April 11, 2007, said its
BB- long-term corporate credit ratings on Malaysia-based cruise
operator Star Cruises Ltd., remain on CreditWatch with negative
implications.  The ratings were placed on CreditWatch on Dec.
11, 2006, following the announcement that Genting International
PLC had won its SD$5.2 billion bid to build Singapore's second
integrated resort on Sentosa Island.

Moody's Investors Service confirmed the B1 corporate family
rating of Star Cruises Limited.  The rating outlook is stable.   
This concludes the ratings review initiated on January 25, 2007.


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

BRIDGECORP: Recovery of Capital Noteholders is Unlikely
-------------------------------------------------------
In a press release, the receivers for Bridgecorp Limited gave an
update on the position of related company Bridgecorp Investments
Limited, which was placed into liquidation on July 6, 2007.

According to the release, the reported assets of BIL, comprise
of:

   -- NZ$1.24 million tax asset and various amounts linked to
      Bridgecorp, represented by inter-company advances totaling
      NZ$1.9 million;

   -- a dividend due of NZ$1.1 million; and

   -- NZ$33 million of redeemable preference shares held in
      Bridgecorp.

The amounts linked to Bridgecorp rank behind amounts due to
Bridgecorp's secured debenture investors.  A preliminary
estimate of recoveries for these secured debenture investors was
released last week, with estimated returns ranging from 25%
through to 74% of the original amounts invested.

Liquidator Colin McCloy said that because of the ranking of the
amounts and the preliminary estimate of recoveries for
Bridgecorp, the liquidators' view was that it was unlikely
Capital Note Holders would recover anything of the NZ$29m owing
to them by BIL.

"Unfortunately, unless there are recoveries from the NZ$1.24m
tax asset, it is unlikely there will be any recoveries for the
Capital Note Holders of BIL.  We appreciate that this is not
good news for the holders of the capital notes and we regret not
being able to deliver more positive news.

"Our investigations into potential recovery avenues continue,
and the final position will not be known for some time. We will
contact BIL Capital Note Holders if the situation improves
sufficiently for any return to be made."

                       About Bridgecorp

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

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


SKELLERUP: Incurs Major Restructuring Costs; Won't Pay Dividend
---------------------------------------------------------------
Skellerup Holdings reported a Net Profit After Tax (before
abnormals and a deferred tax adjustment) of NZ$9.2 million for
the 12 months ending June 30, 2007, reflecting a currency impact
of NZ$4.7 million from the strengthening New Zealand Dollar,
slower trading conditions in New Zealand and factory under-
recoveries resulting from inventory reductions.

Revenues for the year increased by 21.6% as the group benefited
from a full year's contribution from Gulf Rubber and 5.7%
organic growth.

Offshore revenues continued to increase steadily as a proportion
of overall revenue -- from 58% in 2006 to more than 62% in the
latest year, exceeding expectations of growth in this area.
Industrial Division revenues increased as expected -- from 65%
to 71% -- affected positively by recent acquisitions and by good
performances from mining in Australia and our Construction
businesses, particularly in Containment.

                      Strategic Direction

As announced in June the Group is realigning its operating
portfolio with resources now focused on those areas,
particularly technical polymer (including rubber) products,
where the group has the greatest competitive advantage.
This realignment draws on Skellerup's established reputation as
a manufacturer and distributor for the Global Dairy Industry -
and also builds on the excellent platform for Industrial
technical polymer products that has been developed through the
acquisition of Deks Industries in 2003,Gulf Rubber in 2006 and
the more recent Italian based Tumedei purchase in May 2007.

The areas in which the group has the greatest competitive
advantage include:

   -- Extensive expertise in technical polymer product
      development and production

   -- Global distribution networks

   -- Global access to high quality, low cost manufacturing

The group intends to focus our resources to build on these
strengths and thereby gain a stronger presence in the larger,
higher growth segments of the global technical polymer market.

The realignment is likely to result in the sale of various
business units that -- despite being sound operations - are not
central to the high quality technical polymer strategy.
Indicative offers have been received to purchase businesses and
will be considered over the next few weeks and an update given
to the market as developments occur.

In addition, there will be an increase in the outsourcing of
manufacturing which will require a significant restructuring of
our Christchurch Industrial manufacturing facility.

The impact on NPAT for the 2007 year of the outsourcing decision
and the restructuring of the Christchurch factory is an abnormal
charge against this year's Operating Surplus before Tax of
NZ$17.9 million (including NZ$12.7 million in non-cash asset
writedowns) resulting in a Net Operating Shortfall before Tax of
NZ$4.3 million.  After taking into account a deferred tax credit
of NZ$8.3m arising from the recognition of asset depreciation
and other timing differences (resulting in a net tax credit for
the year of NZ$5.0 million), NPAT for the year is NZ$0.6
million.

                           Dividend

Given that a dividend of 3 cents per share was paid on April 26
this year, the Board has determined that there will be no final
dividend for the 2007 year.  This recognizes that the group is
currently undergoing a strategic process that involves
significant restructuring costs, and as a consequence it is
prudent to ensure that adequate resources are available to
support these initiatives.

The Board expects to resume dividend payments in the 2008
financial year.

The group's Annual Meeting will be held in Auckland on Wednesday
Sept. 26, 2007, at 2:30 p.m. at the Ellerslie Convention Centre.

                         Trading Review

The Agri Division achieved a revenue increase of 2.9%, but its
earnings before Interest and Tax were down by 26 %.  This was
primarily a result of currency effects, but also reflected
challenging trading conditions and higher costs.

When adjustment is made for the foreign currency impact, the
result is a marginal decrease in EBIT of 1%.

The Industrial Division performed well, considering the impact
of the weak US Dollar on its exporting businesses in
Australasia, with a revenue increase of 31.5% including a full
year's contribution from Gulf Rubber and 8% organic growth.
Earnings at the EBIT level increased by 6.2% with the full year
earnings from Gulf compensating for the adverse foreign currency
impact.

Gulf's operations in both Australia and New Zealand exceeded
expectations, contributing strongly to divisional EBIT as well
as providing benefits across the group from in-house technical
capabilities and competitive outsourced manufacturing
facilities.

                  Acquisitions and Initiatives

The 2006 acquisition of Gulf Rubber brought a better-than-
expected contribution to group profitability, and significantly
increased our core technical expertise, global manufacturing
capabilities and distribution networks.  The acquisition was a
significant milestone in enabling Skellerup to narrow its focus
going forward.

The purchase in May 2007 of Italian technical rubber
manufacturer Tumedei, was a further significant step to build on
our focus strategy -- particularly for the Industrial division
in positioning itself for growth in Europe.

With the acquisition completed and some re-organisation already
undertaken to make best use of the synergies between Gulf and
Tumedei, this company is well positioned for growth.  In the
coming year, we will continue to work to optimise Tumedei's
contribution to overall group operations.

                            Outlook

The group will seek to strengthen its niche position by
divesting businesses whose potential contribution to its target
position is limited, and making further acquisitions that will
help to achieve our goal of global leadership in technical
polymer production and distribution.

The international trend for increasingly globalised manufacture
and distribution -- together with identification of those
markets which have the greatest potential for our products --
will influence our choice of the geographical areas in which to
invest.


As conveyed to the market in June it is anticipated that the
Company will post a Net profit after Tax of approximately
NZ$12.5m assuming no divestments for the year to June 2008.

                    About Skellerup Holdings

Skellerup Holdings Ltd., formerly Skellmax Industries Limited,
is a New Zealand-based manufacturer, distributor, marketer and
exporter of rubber and foam products, footwear and vacuum pumps
for agricultural and industrial customers. The Company operates
in two industry segments.  The Agri segment manufactures and
distributes dairy rubberware, related rural products and dairy
vacuum equipment for the global agriculture market.  The
Industrial segment manufactures and distributes industrial
rubber and related polymer components together with industrial
vacuum equipment for a variety of industrial applications
worldwide.


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

GEOGRACE RESOURCES: Enters Into Development Deal with CDO Int'l
---------------------------------------------------------------
Geograce Resources Philippines Inc. had signed an operating and
development agreement with CDO International Metal Corp. under
which it will operate CDO's mining assets in Mindanao, the
Philippine Daily Inquirer reports.

Geograce, in a disclosure with the Philippine Stock Exchange,
said that the Deal included 19 blocks of CDO's mining property
in Opol town in the southern province of Misamis Oriental, and
another four blocks in Manticao town in Misamis Oriental.

PDI relates that the Opol blocks cover 1,539 hectares while the
Manticao blocks involve 324 hectares.

According to the report, CDO International is based in the Agora
Lapasan area of the southern city of Cagayan de Oro.  It is is
engaged in buying, collecting and exportation of ferrous and
nonferrous scrap materials.  It may also engage in the
exploration, development, extraction, removal, production,
processing, buying and selling locally and/or exporting chrome
ore, manganese ore, iron ore and other minerals and mineral
products.

According to the disclosure, CDO International entered into a
memorandum of understanding with Minedomain Inc. in July that
gave Minedomain the right of first refusal to either acquire or
operate the Opol and Manticao assets.  With the signing of the
Geograce-CDO Deal, Minedomain has assigned all its rights in the
Opol and Manticao blocks to Geograce, with the consent of CDO.

                    About Geograce Resources

Headquartered in Makati City, Philippines, Geograce Resources --
fka Global Equities, Inc. -- was originally incorporated as La
Suerte Gold Mining Corporation on April 20, 1970, primarily to
engage in the exploration, exploitation, and development of
mineral resources; to purchase, lease and otherwise acquire
mining claims and concessions anywhere in the Philippines; and
to carry on the business of mining, extracting, smelting,
treating, and otherwise producing and dealing in metals and
minerals of all kinds including all its products and by-
products.

As of Mar. 31, 2007, the company, however, had total assets of
PHP8.37 million and total liabilities of PHP21.80 million,
resulting in a capital deficiency of PHP13.43 million.


PHIL. NATIONAL BANK: Post Rehab Income Surges to PHP622 Million
---------------------------------------------------------------
The Philippine National Bank, in a press statement filed with
the Philippine Stock Exchange, relates that after its recent
successfully completed rehabilitation program, it booked a
consolidated net income of PHP622 million for the first semester
of 2007, a substantial 46% improvement from the PHP427-million
income registered for the same period last year.

More importantly, PNB says, this result primed it towards
attaining a ten-year high annual income target of at least
PHP1.2 billion.  As a result, the Bank's Return on Equity ratio
for the first half of the year jumped to 5.1% from the previous
year's comparative figure of 3.8%.

In June 2007, the bank settled in full its PHP6.1 billion loan
with the Philippine Deposit Insurance Corporation four years
ahead of the loan's due date, with payment being sourced from
excess liquidity.  The bank, during the semester, also realized
a PHP1.55-billion reduction in the level of its non-performing
loans to PHP10.747 billion by June 30, 2007.  As a result, total
assets at semester end registered a slight reduction of 1.36% to
PHP240.14 billion from PHP243.47 billion.

With it's successful exit from the government's Rehab program as
of June 30, 2007, PNB subsequently achieved full independence
from government support when the bank recently completed a
successful Follow-on Equity Offering.  Total offer size was
160.8 million shares made up of 89 million primary shares and
71.8 million secondary shares owned by the National Government
thru PDIC and the Department of Finance.  The offering finally
allowed PNB to be fully privatized.

The bank's total deposits as of June 30, 2007, stood at
PHP183.4 billion.  Though finally fully privatized, PNB was
granted by the Bangko Sentral ng Pilipinas the authority to
accept government deposits on a continuing basis, having
complied with all the criteria for a government depository bank.  
During the second quarter, with the introduction of the Special
Deposit Accounts of the BSP, the Bank through its Trust Banking
Group generated additional funds which, as of June 30, 2007,
registered an outstanding balance totaling PHP9.086 billion.

In terms of capital adequacy, the bank's consolidated capital
adequacy ratio as of June 30, 2007, stood at a solid 20% well
above the required 10% floor.  With the proceeds of the
successful follow-on equity offering, the Bank's capital
accounts have recently been increased by more than PHP5.0
billion that would impr0ove capital adequacy ratio to an
estimated 24%.

The bank achieved another milestone as it recently became the
first Philippine bank to be granted a license to operate a cargo
company in the United States.  With the recent establishment of
PNB Cargo Services, PNB now provides freight forwarding services
to overseas Filipinos who regularly send goods from the United
States to the Philippines.  With ONBCS, existing clientele will
now be able to send goods and remit money at the same time to
their loved ones in the Philippines.

During the second quarter, PNB sealed agreements with various
entities to strengthen its remittance business.  First, an
agreement with G-Xchange, Inc. that will allow pay-out of PNB
overseas remittances in the growing number of GCash outlets all
over the country to bring greater convenience to beneficiaries
of OFWs.  The bank also signed a Memoranda of Agreement with 1)
Sta. Lucia Realty to receive remittances of SLR customers via
PNB overseas offices or remittance centers and 2) Quadrillon
Inc. to expedite remittance of its Filipino migrant workers.  In
addition, another MOA was signed with PNCC Skyway Corporation to
allow ONCC ePass subscribers to replenish their ePass tags via
PNB's eCollect service facility and to send payments using any
of the bank's electronic channels such as over-the-counter, ATM,
phone, mobile and Internet banking facilities.


Philippine National Bank -- http://www.pnb.com.ph/-- is the     
Philippine's first universal bank established on July 22, 1916.  
The bank's core business consists of lending and deposit-taking
activities from corporate, middle market and retail customers,
as well as various government units.  Its other principal
activities include bill discounting, fund transfers, remittance
servicing, foreign exchange dealings, retail banking, trust
services, treasury operations and trade finance.  Through its
subsidiaries, PNB engages in a number of diversified financial
and related businesses such as international merchant banking,
investment banking, life/non-life insurance, leasing, financing
of small-and-medium-sized industries, and financial advisory
services.  It introduced innovations such as the bank on wheels,
computerized banking, ATM banking, mobile money changing and
domestic travelers' checks.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on Nov. 6,
2006, that Moody's Investors Service revised the outlook of
Philippine National Bank's foreign currency long-term deposit
rating of B1, local currency senior debt rating of Ba2, and
local currency subordinated debt rating of Ba3 to stable from
negative.

The TCR-AP also reported that Standard and Poor's Ratings
Services gave PNB 'B' Short-Term Foreign Issuer Credit and
Short-Term Local Issuer Credit Ratings, as well as 'B-' Long-
Term Foreign Issuer Credit and Long-Term Local Issuer Credit
Ratings effective as of April 26, 2006.


===============
T H A I L A N D
===============

G STEEL PCL: Moody's Revises B2 Rating Outlook to Negative
----------------------------------------------------------
Moody's Investors Service has changed its outlook to negative
from stable for the B2 corporate family rating and B2 senior
unsecured bond rating of G Steel Public Company Limited.

"The outlook change has been prompted by the continuing weakness
in the company's operating performance at a time when its
refinancing plans for a US$120 million bridge loan, due on 13
September 2007, are not yet finalized," says Alan Greene,
Moody's Senior Vice President.  "While Moody's anticipates that
some funds will be forthcoming, these are unlikely to come
cheaply and this would further strain G Steel's financial
profile," he adds.

"The weaker domestic demand for hot rolled coil (HRC) steel
arises from sluggish growth in the Thai economy, while export
markets are competitive," continues Greene.  "These pressures
come when production costs are rising, leading to weakened
margins and credit metrics, as reflected in the company's latest
6-month results.  Furthermore, while NSM outsold G Steel in the
first six months of 2007, the high price G Steel paid for an
effective 33% interest in NSM just prior to the coup, remains a
drag on the company's balance sheet."

In the short-term, failure to refinance the bridge loan into a
sustainable basis within the next 60 days would precipitate a
downgrade.  Downward rating pressure could also emerge if:

   1) G Steel's operating and liquidity profiles weaken further;

   2) the size of the capex program is not moderated
      sufficiently to reflect financial constraints;

   3) there are substantial cost overruns or delays in the
      completion of its new expansion projects, or if
      integration with NSM does not proceed as planned; and/or

   4) G Steel undertakes further aggressive debt-funded capital
      investment or acquisitions.

The key credit metrics that Moody's would consider for a
downgrade include average EBIT/interest falling below 1.0-1.2x,
and/or average adjusted debt/EBITDA rising above 5.0x on a
sustained basis.

The ratings are unlikely to be upgraded, given the negative
outlook.  However, for the outlook to return to stable, G Steel
would need to demonstrate an ability to satisfactorily complete
its capex program currently underway; improve its working
capital management and profitability throughout the industry
cycle; and successfully integrate and achieve synergies from its
strategic alliance with NSM.

G Steel, headquartered in Bangkok, is Thailand's second largest
HRC steel manufacturer and distributor.  It currently produces
about 1 million tons per year of steel using the electric arc
furnace and continuous casting method.


KRUNG THAI BANK: Says Investments Are Clear of Sub-Prime Debt
-------------------------------------------------------------
Krung Thai Bank assures that its US$160-million investment in
offshore collateralized debt obligations did not involve U.S.
sub-prime housing assets, the Bangkok Post says.

Krung Thai President Apisak Tantiworawong told Bangkok Post that
the bank had holdings in five CDO tranches ranked as investment-
grade.

The report recounts that Krung Thai invested in the securities
several years ago following its issue of US$220 million in
hybrid tier-one bonds.

"We decided to invest US$160 million from the bond issue in
foreign securities in order to take advantage of the higher
yields available in the market.  The remaining US$60 million
from the hybrid bond was used for lending operations," Bangkok
Post quotes Mr. Apisak as saying.

He added that Krung Thai invested in long-term instruments with
maturities of seven to 10 years to match with the duration of
the hybrid bond.  "Our total CDO investments in any case only
represent 0.54% of our total assets," Mr. Apisak told Bangkok
Post.

The report points out that credit spreads have widened sharply
as investors have fled risky assets to seek haven in U.S.
treasuries.  Mr. Apisak said the widening of spreads had
actually led to investment opportunities for Thai banks seeking
investments in low-risk securities such as Thai sovereign bonds
or offshore deposits.

Yet, the disruption in the international market has raised
funding costs for companies and placed pressure on central banks
to inject liquidity into the markets to revive investor
confidence, Bangkok Post relates.

The downturn in the U.S. housing market, particularly among sub-
prime, risky borrowers, has caused panic in the international
credit markets and raised default risks for CDOs backed by
underlying housing assets, Bangkok Post points out.

But Mr. Apisak said he believed the sub-prime troubles would not
have a lasting impact on the global economy, given that the size
of the problem was relatively small compared with the U.S.
economy.

Mr. Apisak said that Krung Thai's investments continued to hold
an investment grade rating and were backed by quality underlying
assets, the report notes.

CDOs, the report explains, are a type of securitized bond in
which pools of different assets are packaged together and broken
up into different tranches with varying levels of risk and
returns.  According to Bangkok Post, the underlying assets for
CDOs include loans to a variety of sectors, including banking
and insurance, electronics, energy and industries, vehicles and
transportation, consumer products, retail, infrastructure and
construction.


Headquartered in Bangkok, Thailand, Krung Thai Bank Public
Company Limited -- http://www.ktb.co.th/-- began its operation   
on March 14, 1966, through the merger of business between the
Agricultural Bank Limited and the Provincial Bank Limited with
the Ministry of Finance as its major shareholder.

The Bank provides financial assistance to large and small
business, it also renders financial assistance to other state
enterprises, both business oriented and public utility types.  
Currently the bank is operating 511 domestic and 12 foreign
branches and representative offices.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported that
Standard & Poor's Ratings Services assigned on September 11,
2006, its BB+ rating to the proposed perpetual, non-cumulative,
hybrid Tier-I securities by Krung Thai Bank Public Co. Ltd.


SERIWAT FOODS: Parent Firm S&P Syndicate Announces Liquidation
--------------------------------------------------------------
S&P Syndicate Public Company Limited said that on Aug. 14, 2007,
its board of directors decided to dissolve and liquidate its
subsidiary Seriwat Foods Co., Ltd, according to a filing with
the Stock Exchange of Thailand.

Seriwat Foods is engaged in the manufacture of sausage and ham
products, pasta, food coloring and essence used in the food
production industry supplied to outside parties.

According to S&P, it had ceased the operations of Seriwat Foods
since 2004.


SRI THAI FOOD: Permanently Shuts Down Business Due to Losses
------------------------------------------------------------
Sri Thai Food and Beverage Public Company Limited has shut down
its business permanently and laid off 144 employees, due mainly
to losses from the impact of bird flu, competition and
unsuccessful debt restructuring, Reuters Key Developments
relates.

Sri Thai had reported a net loss of THB134,339,000 for the year
ended December 31, 2006, compared with the THB189,608,000 net
loss in 2005.

The Troubled Company Reporter-Asia Pacific reported on Aug. 17,
2007 that Sri Thai's latest asset figure was at US$18.29 million
and its stockholders' equity was at US$43.37 million.


Sri Thai Food and Beverage Public Company Limited, a poultry
processor, engaged in breeding and raising, as well as sale of
chickens in Thailand and internationally.  The company, through
Sri Thai Food Products Co., Ltd., also processed and distributed
chicken.



                            *********


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
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Copyright 2007.  All rights reserved.  ISSN: 1520-9482.
   
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