TCRAP_Public/080505.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, May 5, 2008, Vol. 11, No. 88

                            Headlines

A U S T R A L I A

AMIGO HOLDINGS: Commences Liquidation Proceedings
BEMAX RESOURCES: Moody's Affirms Ba3 Rating & Revises Outlook
CENTRO NP: Moody's Maintains Review of 'B3' Senior Debt Ratings
CHRYSLER LLC: April Sales Drop 23% Due to Slowing SUV Demand
KNOWLEDGE DEVELOPMENT: Commences Liquidation Proceedings

L.W. WEEKS: Commences Liquidation Proceedings
LANE COVE TUNNEL: S&P Cuts Rating on AU$1.14 Bil. Bonds to BB-
OPES PRIME: ANZ Wins Case Against Beconwood Securities
OPES PRIME: Julian Smith's Travel Ban Extended Until Sept. 26
PENDO (AUSTRALIA): Placed Under Voluntary Liquidation

POLYPORE INT'L: Reports US$12.9 Mil. Net Income in First Quarter
R & R DRIVESHAFTS: Member and Creditors to Meet on May 6
RELOS TRANSPORT: Supreme Court Enters Wind Up Order
SERHAN GROUP: Placed Under Voluntary Liquidation
W PINFOLD: Final Members' Meeting Slated for May 9


C H I N A   &   H O N G  K O N G   &   T A I W A N

BUCYRUS INTERNATIONAL: Board Okays Two-For-One Stock Split
CHINA SOUTERN: Establishes Domestic Flight Training Base
CNH GLOBAL: S&P Upgrades Corporate Credit Rating From 'BB+'
COVANTA ENERGY: S&P Alters Outlook to Pos.; Holds 'BB-' Rating
FIAT SPA: Signs MoU to Acquire Zastava's Kragujevac Plant

NANJING STEEL: 2007 Net Profit Up 164% to CNY1 Billion
NANJING STEEL: Increases Steel Plate Price
XINING SPECIAL: 2007 Operating Revenue Increases to CNY5.7 Bil.
XIN JIANG: Not Paying Dividend for FY2007


I N D I A

CONEXANT SYSTEMS: Posts $142MM Net Loss in Qtr. Ended March 28
CONEXANT SYSTEMS: Terminates Daniel Artusi as President and CEO
CONEXANT SYSTEMS: D. Scott Mercer Named as New CEO
CONEXANT SYSTEMS: Sells Broadband Media Product Line to NXP
DUERR AG: Earns EUR4.4 Million for First Quarter Ended March 31

GMAC LLC: JCR Cuts Senior Debts Rating to #B+  from #BB-
SUN MICRO: Posts US$34 Million Net Loss in Fiscal 3rd Quarter
UTSTARCOM INC: Two Execs Pay $175,000 in Settlement with SEC


I N D O N E S I A

ALCATEL-LUCENT SA: Posts EUR181 Million Loss for 1st Qtr 2008
ANEKA TAMBANG: 1Q Net Profit Decreases 37% to IDR675 Billion


J A P A N

ALITALIA SPA: Files Over EUR1-Billion Damages Suit vs SEA SpA
DELPHI CORP: Court Approves DIP Facility Extension & Refinancing
DELPHI CORP: Court Approves Up to $650MM in GM Credit Extensions
FORD MOTOR: April 2008 Sales Drops 12%, Focus Sales Ups 88%
JAPAN AIRLINES: Cuts FY2007 Operating Revenue Forecast by 0.4%

JAPAN AIR: To Sell 49.4% Stake in Credit-Card Unit to Mitsubishi
NOVOLIPETSK STEEL: To Invest US$6.1 Bln to Double Output by 2015
TOKYO ELECTRIC: Posts JPY150.1 Billion Net Loss for FY2007  
USINAS SIDERURGICAS: Net Profit Rises to BRL646 Mil. in 1st Qtr.
WAVE SYSTEMS: Gets Nasdaq Notice on Listing Non-Compliance


K O R E A

CLOROX CO: March 31 Balance Sheet Upside-Down by US$472 Million
KENERTEC CO: Moves Date for Common Shares Listing to May 28
*Hynix Joins Working Group to Create Mobile Memory Standards


M A L A Y S I A

ARK RESOURCES: SC Approves Proposed Restructuring Exercise
LITYAN HOLDINGS: Wong Weng Foo & Co. Issues Qualified Report
LIQUA HEALTH: Unit Commences Legal Action Against Wynsum Healthy
THERMADYNE HOLDINGS: To Hold Annual Meeting on Tuesday
THERMADYNE HOLDINGS: S&P Lifts Corporate Credit Rating to 'B-'


N E W  Z E A L A N D

ARTISAN DEVELOPMENTS: Commences Liquidation Proceedings
BANKS PENINSULA: Faces Shell's Wind-Up Petition
BAY LUMBER: Settles With A S L Industries' Wind-Up Petition
DW FUNDING: Shareholders Appoint Waller and Agnew as Liquidators
EFFECT NZ LIMITED: Creditors Must File Claims by May 16

FORTUNATO LTD.: Commences Liquidation Proceedings
FUEL SAVERS: Court Appoints Nellies and William as Liquidators
KELOMIKA HOLDINGS: Court to Hear Wind-Up Petition on May 12
LUDLOW INVESTMENTS: Court to Hear Wind-Up Petition Today
METE CONSTRUCTION: Court to Hear Wind-Up Petition on May 30

MOOLOOLABA HOLDINGS: Court Appoints Richard Edge as Liquidator
MFS FINANCE: Discloses NZ$334.8 Million Shortfall
PREMIER HOLDINGS: Court to Hear Wind-Up Petition on June 20
PRIMO BUILDING: Faces DB Plumbing's Wind-Up Petition
SHEPHERD FINANCIAL: Shareholders Appoint Liquidators


P H I L I P P I N E S

MANILA ELECTRIC: GSIS Head Seeks Full Transparency in Power Firm
PETRO ENERGY: Assistant Corporate Secretary Leaves Post
PRIMANILA PLANS: SEC Probe Uncovers Fraudulent Practices
SEAFRONT RESOURCES: Stockholders' Meeting Slated for June 17
WESTMONT INVESTMENT: Court of Appeals Revives Fraud Case


S I N G A P O R E

CHEMTURA CORP: Posts US$21 Mil. Net Loss in 2008 First Quarter
CHEMTURA CORP: Annual Stockholders Meeting Scheduled for May 14
CHEMTURA CORP: Inks Pact with Baerlocher on Heat Stabilizers
SCOTTISH RE: S&P Says Ratings Remain on Negative CreditWatch


T H A I L A N D

GLOBAL TRADER: Creditors Names Grant Thornton as Administrator


                         - - - - -


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

AMIGO HOLDINGS: Commences Liquidation Proceedings
-------------------------------------------------
At the general meeting of the members of AMIGO HOLDINGS PTY LTD
held April 22, 2008, JOHN WILCOX, the appointed liquidator,
presented an account showing the manner in which the winding up
has
been conducted and the property of the company disposed.

The liquidator can be reached at:

          John Wilcox
          Hill Rogers Chartered Accountants
          Level 5, No 1 Chifley Square
          Sydney, New South Wales 2000
          Australia
          Telephone: (02) 9232-5111


BEMAX RESOURCES: Moody's Affirms Ba3 Rating & Revises Outlook
-------------------------------------------------------------
Moody's Investors Service affirmed on May 1, 2008, the Ba3
corporate family and Ba3 senior unsecured ratings of Bemax
Resources Limited. The outlook has been changed to negative from
stable.

"The change in outlook to negative reflects the company's
unexpected weakness in production, primarily in Western
Australia, and total sales levels relative to forecast - at the
time that the rating was first established", says Ian Lewis a
Moody's Vice President and Lead Analyst for the company, adding
"The combined effects of lower concentrate output together with
increased costs associated with higher freight - mainly shipping
costs - amid a higher exchange rate environment are challenging
the company's Ba3 rating".

"Moody's will be closely monitoring Bemax' expansion agenda
relative to its initial forecasts and its ability to sustain
financial metrics appropriate to its rating level and relative
to its peers" says Lewis.

Bemax Resources Limited (Bemax) is an Australian-based mineral
sands producer, producing zircon and titanium based feedstock
products. Bemax intends to expand operations to additional
mining sites as well as ramp up operations at its Broken Hill
Mineral Separation Plant (MSP) facility to allow for the
processing of Rutile and Zircon.


CENTRO NP: Moody's Maintains Review of 'B3' Senior Debt Ratings
---------------------------------------------------------------
Moody's Investors Service stated that it will maintain the B3
senior unsecured debt ratings under review direction uncertain
of Centro NP LLC (formerly New Plan Excel Realty Trust, Inc.)
reflecting the company's announcement that its parent, Centro
Properties Group, was granted a seven day interim extension
until May 7, 2008, on all facilities previously scheduled to
expire in order to allow time to finalize discussions with
financiers and complete documentation for a longer term
extension.

The review continues to reflect the financial difficulties and
uncertainty regarding the final capital structure and strategic
profile of the company in light of Centro NP's and Centro
Properties Group's short-term pressure to refinance debt.  
Moody's will continue to monitor Centro NP's compliance with its
bond covenants and the quality and composition of its portfolio
as it works though these financings.

Upwards rating movement would be contingent upon implementing a
viable plan to refinance or restructure Centro Property Group's
debt by May 7, 2008, in addition to Centro NP refinancing the
bridge facility and line of credit on or before its Sept. 30,
2008 extension date without materially pressuring their
leverage, secured debt, the value of their portfolio, and other
credit metrics, while complying with bond covenants.  

A confirmation of the B3 rating would result from Centro NP
reaching a financing plan to which the debt holders agree, with
a strategic plan in place to restructure Centro Properties
Group's debt.  A downgrade to the Caa range or lower would most
likely reflect Centro NP's continued issues refinancing its line
and Centro Properties Group's inability to refinance its debt by
the extension dates, noncompliance with bond covenants at the
Centro NP level, acceleration of bond payments, a firesale of
assets or a bankruptcy filing.

These ratings are at B3, with review direction uncertain:

-- Centro NP LLC -- Senior unsecured debt at B3; medium-term
    notes at B3.

Centro NP LLC, headquartered in New York City, owns and operates
496 community and neighborhood shopping centers in 39 states.  
The company had assets of $5.7 billion and equity of $3.2
billion at Dec. 31, 2007.

Centro Properties Group, headquartered in Melbourne, Victoria,
Australia, is an Australian Listed Property Trust that
specializes in the ownership, management and development of
retail shopping centers in Australia, New Zealand and the USA
with $26.6 billion in assets under management.


CHRYSLER LLC: April Sales Drop 23% Due to Slowing SUV Demand
------------------------------------------------------------
Chrysler LLC reported total April 2008 sales of 147,751 units,
which is 23% below the same period last year.  Overall sales
were most affected by slowing truck and SUV demand and a
dramatic cut in daily rental-fleet sales.

"The overall decrease in April sales, particularly of pickup
trucks, demonstrates that the auto industry continues to be
under pressure from the national economy," Vice Chairman and
President Jim Press said.  "Despite the economic challenges, and
concern about rising fuel prices, we continue to hear from
consumers that there is growing interest in vehicles that meet
specific needs, such as the Dodge Journey seven-passenger
crossover for families and the Dodge and Jeep fuel-efficient
compact vehicles for young professionals.  Our plan is to
continue to focus on meeting customers' needs, and managing our
overall inventory to best weather this slowdown."

Chrysler's lineup of compact vehicles continued to connect well
with consumers this month.  Total compact vehicle sales of the
fuel-efficient Dodge Caliber, Jeep Compass and Jeep Patriot,
which each achieve 28 miles per gallon or better in highway
driving, reached an April record 17,977 units last month, up 16
percent from April 2007.

As the spring "top-down" driving season begins, the Chrysler
Sebring Convertible finished the month with 2,827 units compared
with April 2007 sales of 1,447 units, a 95% sales increase.  
Also enjoying a positive month was the Dodge Charger with sales
of 13,021 units in April, a 29% increase over 2007 April sales.

In April, the company launched its largest digital-advertising
campaign in Chrysler history for the all-new Dodge Journey, 'If
you can dream it, do it.'  The Journey, with best-in-class fuel
economy (25-mpg hwy, 4-cylinder), delivers a unique combination
of versatility and flexibility at less than $20,000.  The
Journey increased sales to 6,667 units in only its third month
on the market.

As a result of the success of its "New Day" packages, Chrysler
will continue to offer the popular packages in May.  The
packages have struck a chord with buyers by combining the
company's most sought-after features on a wide range of vehicles
at reduced prices.

The company finished the month with 422,353 units of inventory,
or a 74-day supply.  As part of a planned reduction in
manufacturing and capacity, inventory is down 13% compared with
April 2007 when it totaled 482,786 units.

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.

                         *     *     *

As reported in the Troubled Company Reporter on Dec. 10, 2007,
Standard & Poor's Ratings Services revised its recovery rating
on Chrysler's $2 billion senior secured second-lien term loan
due 2014.  The issue-level rating on this debt remains unchanged
at 'B', and the recovery rating was revised to '3', indicating
an expectation for 50% to 70% recovery in the event of a payment
default, from '4'.

Both the issue-level and recovery ratings on Chrysler's $7
billion first-lien term loan due 2013 remain unchanged.  The
issue-level rating on this debt is 'BB-' with a recovery rating
of '1', indicating an expectation for 90% to 100% recovery in
the event of a payment default.


KNOWLEDGE DEVELOPMENT: Commences Liquidation Proceedings
--------------------------------------------------------
At the general meeting of the members and creditors of Knowledge
Development Laboratories Pty Ltd held May 1, 2008, Morgan Kelly,
the appointed liquidator, presented an account showing the
manner in which the winding up has been conducted and the
property of the company disposed.

The liquidator can be reached at:

          Morgan Kelly
          Ferrier Hodgson
          GPO Box 4114
          Sydney, New South Wales 2001
          Australia


L.W. WEEKS: Commences Liquidation Proceedings
---------------------------------------------
At the general meeting of the members of L.W. Weeks Holdings Pty
Ltd held April 24, 2008, John Wilcox, the appointed liquidator,
presented an account showing the manner in which the winding up
has been conducted and the property of the company disposed.

The liquidator can be reached at:

          John Wilcox
          Hill Rogers Chartered Accountants
          Level 5, No 1 Chifley Square
          Sydney, New South Wales 2000
          Australia
          Telephone: (02) 9232-5111


LANE COVE TUNNEL: S&P Cuts Rating on AU$1.14 Bil. Bonds to BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered on May 1, 2008, its
Standard & Poor's Underlying Rating (SPUR) on the A$1.14 billion
senior secured bonds issued by Lane Cove Tunnel Finance
Co. Pty. Ltd. (LCTF) to 'BB-', from 'BBB-', and placed the SPUR
on CreditWatch with negative implications. This follows our
concerns on the continued underperformance of the Lane Cove toll
road. The 'AAA/Negative/--' insured rating on LCTF was
unchanged, reflecting the fact that bondholders continue to
have the benefit of bond insurance provided by MBIA Insurance
Corp. (AAA/Negative/--).  

A SPUR represents our current opinion of the stand-alone
creditworthiness of a debt issue. Specifically, the SPUR
indicates the capacity and willingness of an issuer to satisfy
the obligations of a debt instrument on a timely basis
and in accordance with the terms of the debt. A SPUR excludes
consideration of any applicable credit support from a third
party. Under our criteria, the issue rating on an insured bond
issue is the higher of the rating on the bond insurer and the
SPUR.

"Despite the strong rationale for the Lane Cove Tunnel, traffic
numbers continue to fall well short of expectations," Standard &
Poor's credit analyst Philip Grundy said. "Liquidity and traffic
growth are the key factors to the success of this transaction,
and the protracted underperformance of traffic on the road
increases the likelihood that liquidity will be exhausted before
break-even traffic is achieved. In our view, the acid test for
this project and its available liquidity support has begun,
given the road is now operating as it was intended to be. Based
on our current analysis of the project and using conservative
traffic growth forecasts, the project is likely to face
liquidity problems by the end of 2009 or early in 2010."   

The initial poor traffic performance of the road in 2007 had
been attributed to the deferral of the Epping Road surface
works, which commenced in August 2007 and were completed in
March 2008. The traffic profile has shown little improvement
since then, although we note that March and April 2008
traffic numbers are likely to be negatively affected by the
public and school holidays over the period. A more realistic
picture of the road's future traffic profile is expected to be
available over the next few months.  

Standard & Poor's notes that new toll roads are typically
characterized by higher traffic growth rates early (ramp-up
periods), followed by lower growth rates or a steady state. The
ramp-up tends to vary between projects, but can range anywhere
from 18 months to five years depending on the characteristics of
the road and catchment area. Moreover, liquidity for toll-road
projects is typically sufficient for the expected ramp-up
period, with some buffer for contingencies. With the ramp-up
period for the Lane Cove Tunnel forecast at the low end of
industry standards, the project benefited from above-average
liquidity. However, all evidence now points to a lower starting
point for traffic and slower-than-forecast growth. Consequently,
without further support, our concern is that the road's
liquidity may run out before break-even traffic is achieved.    

Mr. Grundy added: "We have some confidence that the road's key
stakeholders will try to find solutions to the financial
problems facing the project over the next few months. We will
closely monitor those developments and the road's traffic
performance ahead of an expected resolution of the CreditWatch
by the end of July 2008. If traffic continues to underperform
and there is no tangible solution offered by stakeholders, we
would expect the SPUR to be lowered further."  

The Lane Cove Tunnel project is a 33-year concession to finance,
design, build, operate and maintain the final section of a ring
of toll roads which circle Sydney.  The project will revert to
government ownership at its maturity.


OPES PRIME: ANZ Wins Case Against Beconwood Securities
------------------------------------------------------
The Australian Associated Press reported last Friday that the
Federal Court of Victoria rejected Beconwood Securities'
argument that ANZ should return shares lodged with Opes Prime
Group Limited.

According to the AAP Justice Ray Finkelstein ruled that
Beconwood did not have an "equity of redemption" -- the right to
a return of equivalent shares -- or other equitable interests in
securities that it had loaned to Opes Prime in return for loans.

The Troubled Company Reporter-Asia Pacific reported on April 22,
2008, that according to the AAP, Melbourne businessman Paul
Choiselat's Beconwood Securities went to the Federal Court
seeking orders that ANZ return equivalent securities to the
shares of Beconwood placed with Opes Prime.  The report noted
that Beconwood pledged AU$7 million worth of shares to Opes
Prime in return for a AU$1.3 million loan.

The AAP relates that Justice Finkelstein said that under a
securities lending agreement, absolute title to shares passed
from the lender of the shares to the borrower.  

Richard Gluyas of The Australian notes that "most margin lenders
in Australia allow depositors to retain title over shares
deposited, but failed broker Opes had a UK-type model where the
lender registered stock in its own name."

Mr. Gluyas relates, citing Mallesons Stephen Jaques partner Tony
Troiani, the Federal Court decision will have no impact on Opes
administrator John Lindholm's decision to recommend a
liquidation for Opes or pursuit of commercial settlements with
creditors that could lead to a deed of company arrangement.

The Australian reports that now that a key preliminary issue has
been determined, the Beconwood case can now go to a full trial,
which is expected to be in July or August.

The AAP report states that Beconwood failed to convince Justice
Finkelstein that it was an unsophisticated investor and did not
know what it was getting in to when it signed the securities
lending agreement.

In a separate report, Trevor Chappell of the AAP relates that
ANZ welcomed the decision but acknowledged that issue is far
from over.

                ANZ Sells Conquest Mining Stake

In another report, Susannah Moran of The Australian writes that
ANZ has sold its 5 percent stake in Conquest Mining heightening
its dispute with Conquest managing director John Terpu, a former
Opes Prime client who previously owned the shares and who has
initiated a legal action against Opes and ANZ in the NSW Supreme
Court.

Ms. Moran relates that Mr. Terpu was initially successful in
obtaining an injunction to stop ANZ selling the shares but that
injunction was lifted on April 18.  Gold Fields disclosed to the
Australian Stock Exchange last week that it bought the shares
from ANZ at AU$0.35 per share, bringing its total shareholding
to 19.06 percent, Ms. Moran states.

According to The Australian, Mr. Terpu is pursuing an
investigation of the deal.

                       About Opes Prime

Opes Prime Group Ltd is an Australian unlisted public company
providing a range of financial services and products for high
net worth individuals, stockbrokers and financial advisors,
asset managers, banks and other firms, both for themselves and
their clients.  The Group conducts business via a number of
operating subsidiaries based in Melbourne, Sydney and Singapore:

   1) Opes Prime Stockbroking Limited is a full Market           
      Participant of the Australian Stock Exchange Ltd, and          
      holds an Australian Financial Services Licence (#247408)       
      which enables it to deal and advise in financial       
      services and products to retail and wholesale clients. The
      company was first registered on 10 March 1999, and started
      business with its current shareholders in 2005.  Opes      
      Prime Stockbroking is a specialist provider of          
      securities lending and equity financing services.  In      
      Singapore, the firm operates through Opes Prime Group's    
      wholly owned subsidiary, Opes Prime International Pte Ltd.
      In Australia, Opes Prime Stockbroking has granted          
      Authorized Representative status to Trader Dealer Pty Ltd,    
      an on-line non-advisory trading execution service for the
      semi-professional and professional trader.

   2) Opes Prime Structured Products Pty Ltd develops, manages
      and markets specialized leveraged products for the high
      net worth market, providing outstanding risk protection
      and return potential.

   3) Opes Prime Paradigm Pty Ltd, is a corporate finance and

      advisory firm specializing in small and mid cap stocks.

   4) In Singapore, Opes Prime Asset Management Pte Ltd provides
      specialist hedge fund incubation, advisory and trade   
      management services, and Five Pillars Associates Pte Ltd
      provides Islamic finance consultancy.

                          *     *     *

The Troubled Company Reporter Asia-Pacific reported on April 1,
2008 that Opes Prime was placed under receivership after
directors became aware of a number of cash and stock movement
irregularities in relation to a small number of accounts.  
Ferrier Hodgson Partners John Lindholm, Peter McCluskey and
Adrian Brown have been appointed Administrators by the directors
of Opes Prime Group Limited and a number of its subsidiaries and
related entities including, Opes Prime Stockbroking Limited.  
Initial investigations indicate that the solvency of the
business was under pressure due to a number of major clients not
meeting significant margin calls.  The Administrators are
currently examining the Group's affairs to quantify the likely
liability to OPSL's clients.

At the same time, Sal Algeri and Chris Campbell from the
Deloitte Corporate Reorganisation Group were appointed by a
secured creditor, ANZ Banking Group Ltd., as Receivers and
Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd,
Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd.


OPES PRIME: Julian Smith's Travel Ban Extended Until Sept. 26
-------------------------------------------------------------
Richard Gluyas of The Australian reports that OPES Prime Group
Ltd. co-founder Julian Smith and  the Australian Securities &
Investments Commission have agreed to extend his travel ban
until September 26.

According to The Australian, Mr. Smith's passport will continue
to be held at the Federal Court registry in Sydney.  The report
adds that Mr. Smith promised to give the ASIC seven days' notice
of any legal action to vary the terms of the extension order, as
well as hand over any evidence he intended to rely on at a
hearing on September 26.

Mr. Gluyas relates that ASIC investigator Richard Vandeloo
considers Mr. Smith to be a flight risk citing that Mr. Smith
obtained AU$5.5 million in loans from Leveraged Capital, an Opes
company.

The Troubled Company Reporter-Asia Pacific reported on April 10,
2008, citing The Sydney Morning Herald, that the ASIC said Opes
Director Julian Smith may possibly be involved in covering up
massive losses for certain clients just before the firm
collapsed.  The Herald, the TCR-AP noted, reported that the ASIC
made allegations about what it called "double-counting" of
shares, a practice it says shielded a handful of Opes' most
favored clients from losing millions of dollars against their
rapidly deteriorating portfolios.

According to the TCR-AP, the ASIC obtained urgent orders from
Justice Ray Finkelstein forcing Mr. Smith to hand over his
passport until April 11.  Mr. Smith had previously booked a 10-
day holiday in Fiji with his family and was due to leave
April 13.

                       About Opes Prime

Opes Prime Group Ltd is an Australian unlisted public company
providing a range of financial services and products for high
net worth individuals, stockbrokers and financial advisors,
asset managers, banks and other firms, both for themselves and
their clients.  The Group conducts business via a number of
operating subsidiaries based in Melbourne, Sydney and Singapore:

   1) Opes Prime Stockbroking Limited is a full Market           
      Participant of the Australian Stock Exchange Ltd, and          
      holds an Australian Financial Services Licence (#247408)       
      which enables it to deal and advise in financial       
      services and products to retail and wholesale clients. The
      company was first registered on 10 March 1999, and started
      business with its current shareholders in 2005.  Opes      
      Prime Stockbroking is a specialist provider of          
      securities lending and equity financing services.  In      
      Singapore, the firm operates through Opes Prime Group's    
      wholly owned subsidiary, Opes Prime International Pte Ltd.
      In Australia, Opes Prime Stockbroking has granted          
      Authorized Representative status to Trader Dealer Pty Ltd,    
      an on-line non-advisory trading execution service for the
      semi-professional and professional trader.

   2) Opes Prime Structured Products Pty Ltd develops, manages
      and markets specialized leveraged products for the high
      net worth market, providing outstanding risk protection
      and return potential.

   3) Opes Prime Paradigm Pty Ltd, is a corporate finance and

      advisory firm specializing in small and mid cap stocks.

   4) In Singapore, Opes Prime Asset Management Pte Ltd provides
      specialist hedge fund incubation, advisory and trade   
      management services, and Five Pillars Associates Pte Ltd
      provides Islamic finance consultancy.

                          *     *     *

The Troubled Company Reporter Asia-Pacific reported on April 1,
2008 that Opes Prime was placed under receivership after
directors became aware of a number of cash and stock movement
irregularities in relation to a small number of accounts.  
Ferrier Hodgson Partners John Lindholm, Peter McCluskey and
Adrian Brown have been appointed Administrators by the directors
of Opes Prime Group Limited and a number of its subsidiaries and
related entities including, Opes Prime Stockbroking Limited.  
Initial investigations indicate that the solvency of the
business was under pressure due to a number of major clients not
meeting significant margin calls.  The Administrators are
currently examining the Group's affairs to quantify the likely
liability to OPSL's clients.

At the same time, Sal Algeri and Chris Campbell from the
Deloitte Corporate Reorganisation Group were appointed by a
secured creditor, ANZ Banking Group Ltd., as Receivers and
Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd,
Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd.


PENDO (AUSTRALIA): Placed Under Voluntary Liquidation
-----------------------------------------------------
At a general meeting of Pendo (Australia) Pty Limited's members
held March 14, 2008, it was resolved that the company be wound
up voluntarily and that Stuart Ariff be appointed to act as
liquidator of the company.


POLYPORE INT'L: Reports US$12.9 Mil. Net Income in First Quarter
----------------------------------------------------------------
Polypore International Inc. reported its financial results for
the first quarter of 2008.  For the three months ended March 31,
2007, the company earned of US$12.9 million on net revenues of
US$145.3 million compared to net income of US$2.1 million on net
revenues of US$129.0 million for the same period in 2007.

Commenting on the quarter, Robert B. Toth, President and Chief
Executive Officer, said, "We are pleased with the quarter and
the solid start to the year.  Our global presence, together with
the breadth of markets and applications we serve, contributed to
our good performance in the current economic environment."

                       Fiscal 2008 Guidance

For the year ending Jan. 3, 2009, the company expects to achieve
sales of US$580 million to US$605 million.  The company estimate
total capital expenditures of approximately US$52.0 million in
2008.  This remains unchanged from the company's increased
guidance issued on March 3, 2008 in conjunction with the
acquisition of Microporous.

Headquartered in Charlotte, North Carolina, Polypore
International Inc., develops, manufactures and markets
specialized polymer-based membranes used in separation and
filtration processes.  The company is managed under two business
segments.  The energy storage segment, which currently
represents approximately two-thirds of total revenues, produces
separators for lead-acid and lithium batteries.  The separations
media segment, which currently represents approximately one-
third of total revenues, produces membranes used in various
health care and industrial applications.  The company has
operations in Australia, Germany and Brazil.

                         *     *     *

In July 2007, Standard & Poor's Ratings Services revised its
outlook on Charlotte, N.C.-based Polypore International Inc. and
its subsidiary Polypore Inc. to positive from stable.  At the
same time, S&P affirmed its ratings on both companies, including
the 'B' corporate credit rating.


R & R DRIVESHAFTS: Member and Creditors to Meet on May 6
--------------------------------------------------------
R & R Driveshafts & Steering Pty Limited will hold a joint
meeting for its members and creditors on May 6, 2008, at 10:30
a.m., at the offices of GHK Ferrier Green Krejci Silvia, Level
13, 1 Castlereagh Street, in Sydney.

At the meeting, the appointed liquidator will present the manner
in which the winding up has been conducted and the property of
the company disposed.

The liquidator is:

          Martin J. Green
          GHK Ferrier Green Krejci Silvia
          Level 13, 1 Castlereagh Street
          Sydney, New South Wales 2000
          Australia


RELOS TRANSPORT: Supreme Court Enters Wind Up Order
---------------------------------------------------
On March 11, 2008, the Supreme Court of New South Wales entered
an order to have Relos Transport Pty Limited's operations wound
up.  
Bradd Morelli was appointed official liquidator.

The liquidator can be reached:

          Bradd Morelli
          Jirsch Sutherland
          GPO Box 4256
          Sydney, New South Wales 2001
          Australia
          Telephone: (02) 9236 8333
          Facsimile:  (02) 9236 8334
          e-mail: admin@jirschsutherland.com.au


SERHAN GROUP: Placed Under Voluntary Liquidation
------------------------------------------------
At a general meeting of Serhan Group Pty Limited's members held
March 19, 2008, it was resolved that the company be wound up
voluntarily and that Mitchell Warren Ball of Paladin Partners
be appointed to act as liquidator of the company.

The liquidator can be reached at:

          Mitchell Ball
          Paladin Partners
          Level 3, 120 Sussex Street
          Sydney, New South Wales 2000
          Australia
          Telephone: (02) 9290-5300
          Facsimile:  (02) 9290-5399


W PINFOLD: Final Members' Meeting Slated for May 9
--------------------------------------------------
W Pinfold Pty Limited will hold a final meeting of its members
on May 9, 2008, at 10:00 a.m., at the offices Alan Ross Taggart,
35 Belford Street, in Broadmeadow, New South Wales.

At the meeting, the appointed liquidator will present an account
of how the winding up has been conducted.

The liquidator is:

          Alan Ross Taggart
          35 Belford Street
          Newcastle, New South Wales 2292
          Australia



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

BUCYRUS INTERNATIONAL: Board Okays Two-For-One Stock Split
----------------------------------------------------------
Bucyrus International Inc.'s Board of Directors has approved a
two-for-one split of Bucyrus' common stock in the form of a 100%
stock dividend.  The stock split will be effective May 27, 2008
for stockholders of record on May 13, 2008.

The Board of Directors also declared a quarterly dividend of
US$0.025 per share on Bucyrus common stock.  The quarterly
dividend is payable on May 27, 2008 to stockholders of record on
May 13, 2008.  The quarterly dividend will be paid on a post-
stock split basis.

"Bucyrus has consistently delivered excellent results, both
financially and operationally.  Today's stock split announcement
reflects the Board of Directors' recognition of our strong stock
price performance over the past year," said Timothy W. Sullivan,
Bucyrus' chief executive officer and president.  The two-for-one
stock split is Bucyrus' second stock split in the past two
years.  The previous stock split was a three-for-two split of
the common stock effective March 29, 2006.

Bucyrus stockholders also approved today an amendment to the
Bucyrus Amended and Restated Certificate of Incorporation
increasing the number of authorized shares of common stock from
75 million to 200 million.

                   About Bucyrus International

Headquartered in South Milwaukee, Wisconsin, Bucyrus
International Inc. (Nasdaq: BUCY) -- http://www.bucyrus.com/--    
is a global manufacturer of electric mining shovels, walking
draglines and rotary blasthole drills and provides aftermarket
replacement parts and services for these machines.  In 2006, it
had sales of USUS$738 million.  The company has operations in
Brazil, Chile, China, Poland, the United Kingdom, Australia,
India, Germany and Peru, among others.

                         *     *     *

Moody's Investor Service placed the company's long-term
corporate family rating at 'Ba3' in April 2007.  The rating
still holds to date with a stable outlook.


CHINA SOUTERN: Establishes Domestic Flight Training Base
--------------------------------------------------------
China Southern Airlines Co. Limited has set up a flight training
base in Nanyang Airport and is mulling to invest CNY510 million
to improve facilities at the airport, People Daily Online
reports.

The report relates that the training base will have specialized
training aircraft, airport and management organization.

Nanyang Airport is the first wholly-owned airport under the
exclusive management of China Southern Airlines.  “Located in
the hinterland of the Central Plains with pleasant climate, the
airport has fine static air conditions, with more than 300 days
suitable for flying annually,” the company said, the report
notes.

According to the reports, the company will gradually dispatch
three different models of large aircraft to Nanyang base for the
training of all pilots.

                About China Southern Airlines

Headquartered in Guangzhou, China, China Southern Airlines Co.
Ltd. -- http://www.cs-air.com-- engages in the operation of   
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally.  It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.

                         *    *    *

As reported in the Troubled Company Reporter-Asia Pacific on  
March 3, 2008, Fitch Ratings affirmed China Southern Airlines
Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer
Default Ratings at 'B+'.  The Outlook on the ratings is Stable.


CNH GLOBAL: S&P Upgrades Corporate Credit Rating From 'BB+'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on CNH Global N.V. to 'BBB-' from 'BB+' after taking the
same rating action on CNH's parent company, Italy-based auto and
truck manufacturer Fiat SpA (BBB-/Stable/A-3).  The outlook is
stable.
   
Owing to the investment-grade rating, recovery methodology is no
longer applicable and Standard & Poor's has thus withdrawn its
'4' recovery rating on Case Corp.'s and Case New Holland Inc.'s
senior unsecured debt.
   
The corporate credit rating and outlook on publicly traded CNH
are the same as those on Fiat because of the close ties between
the two.  Fiat views CNH as a core business and continues to
provide strong liquidity support to CNH by way of intercompany
loans and bank loan guarantees.  Fiat has a roughly 90% equity
ownership stake in CNH.  As of March 31, 2008, CNH had $1
billion of cash deposited with Fiat affiliates' cash management
pools (repayable to CNH on one day's notice).
     
"Because S&P views CNH as core to the Fiat Group, a positive or
negative rating action on Fiat would result in the same action
on CNH," said Standard & Poor's credit analyst Dan Picciotto.  
"If S&P ceases to view CNH as core to the Fiat Group, and if
CNH's stand-alone financial profile fails to support the
ratings, S&P could take a negative rating action."


COVANTA ENERGY: S&P Alters Outlook to Pos.; Holds 'BB-' Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Covanta Energy Corp. to positive from stable to reflect the
company's improving credit metrics, continued focus on its key
business, and S&P's expectation that the company will be able to
fund costs associated with its growth strategy in a credit
neutral manner.  At the same time, Standard & Poor's affirmed
its ratings on the company, including the 'BB-' corporate credit
rating.  Covanta had about $2.3 billion total debt as at Dec.
31, 2007, of which $1.3 billion was project debt.
   
The credit rating on Covanta continues to reflect its reliance
on residual distributions from project investments and its
limited financial flexibility as it pursues its growth strategy
given the capital-intensive nature of its business.  Although
Covanta generates significant cash flow from its operating
subsidiaries, it also has significant ongoing maintenance-
capital requirement.  Furthermore, the company intends to grow
its business through acquisitions, expansion of existing
projects, or investments in greenfield energy-from-waste
development.

Headquartered in Fairfield, New Jersey, Covanta Energy
Corporation -- http://www.covantaenergy.com/-- is a publicly   
traded holding company whose subsidiaries develop, own or
operate power generation facilities and water and wastewater
facilities in the United States and abroad.  Covanta has
operations in the Philippines, China, Costa Rica, India, and
Bangladesh.


FIAT SPA: Signs MoU to Acquire Zastava's Kragujevac Plant
---------------------------------------------------------
Fiat S.p.A. and Serbia’s Ministry of Economy and Regional
Development has signed a Memorandum of Understanding as the
basis for the acquisition by Fiat Group Automobiles of the
assets of the Zastava plant at Kragujevac, Serbia.

Under the MoU, joint teams are to be set up by FGA and Zastava
with the support of the Serbian Ministry of Economy, which will
examine the various aspect of the initiative in greater detail.

If deemed feasible, the two companies will enter into a
definitive agreement in the course of the coming months.

"This initiative represents a further step in Fiat Group
Automobiles’ strategy aimed at supporting its growth and volume
aspirations," Sergio Marchionne, Fiat CEO, said.  "It follows a
number of targeted alliances and partnerships signed with
leading carmakers and automotive suppliers over the last four
years.  Moreover, it demonstrates our confidence and trust in
Serbia, its industry, management competence and the skill of its
workers, not to forget the Serbian automotive market itself,
which we consider an integral extension of our domestic market.

"[Fifty-four] years ago, Fiat and Zastava signed an accord for
the construction of the factory at Kragujevac where the Fiat
Punto is manufactured today," Mr. Marchionne added.  "We believe
that, together with Zastava, we have played an important role in
enhancing the Serbian automotive industry from both the
manufacturing as well as the technological point of view.  We
are proud that many Serbian engineers and technicians have been
trained at Fiat in Italy and in Serbia."

                        About Fiat S.p.A.

Based in Turin, Italy, Fiat SpA -- http://www.fiatgroup.com/--      
designs, manufactures, and sells automobiles, trucks, wheel
loaders, excavators, telehandlers, tractors and combine
harvesters.  Outside Europe, the company has subsidiaries in the
United States, Japan, India, China, Mexico, Brazil and
Argentina, among others.

                          *     *     *

As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries
Ba3 Corporate Family and Senior Unsecured ratings from Moody's
Investors Service, which said the outlook is positive.


The company carries Standard & Poor's Ratings Services' BB long-
term corporate credit rating.  The company also carries B short-
term rating.  S&P said the outlook is stable.


NANJING STEEL: 2007 Net Profit Up 164% to CNY1 Billion
------------------------------------------------------
Nanjing Iron & Steel Co reported a 2007 net profit of
CNY1 billion, up by 164% year on year, Steel Guru News reports.

According to the report, the company's sales revenue increased
38% to CNY22 billion and operating income by 142% to CNY1.4
billion.

The company, the report relates, produced 5.4million tonnes of
pig iron in 2007 up by 22.2% YoY, 5.1 million tonnes of crude
steel up by 26.4% YoY , and 4.2 million tonnes of finished steel
up by 21.6% YoY.  Its plate output reached 2.7 million tonnes
making it the second largest producer in China, Guru News says.

Moreover, Guru News notes that Nanjing also exported 535,500
tonnes of steel products last year.

Nanjing Steel plans to produce 5.9 million tonnes of pig iron,
5.4million tonnes of crude steel and 4.5 million tonnes of
finished steel in 2008, the report adds.

                  About Nanjing Iron & Steel

Nanjing, China-based Nanjing Iron & Steel Co.,Ltd. --
http://www.600282.net/-- is primarily engaged in the smelting  
and processing of ferrous metal and the production and sale of
steel products, coke and coke by-products.  Its major iron and
steel products consist of steel plates, steel bars, steel bands,
billets and pig iron.

As of May 2, 2008, the company currently holds Xinhua Far East
China Ratings' BB+ issuer credit rating.


NANJING STEEL: Increases Steel Plate Price
------------------------------------------
Nanjing Iron & Steel Co. Limited increased the price of its
steel plate, effective April 1, 2008, Steel Guru News reports.

According to the report, the increased in price will be CNY300
per tonnes for ship plate and CNY 600 per tonnes for heavy
plate, low alloy plate, boiler plate and vessel plate.

The current price for Q235 with thickness from 16mm to 20mm is
about CNY 5,780 per tonnes, the report notes.

Nanjing, China-based Nanjing Iron & Steel Co.,Ltd. --
http://www.600282.net/-- is primarily engaged in the smelting  
and processing of ferrous metal and the production and sale of
steel products, coke and coke by-products.  Its major iron and
steel products consist of steel plates, steel bars, steel bands,
billets and pig iron.

As of May 2, 2008, the company currently holds Xinhua Far East
China Ratings' BB+ issuer credit rating.


XINING SPECIAL: 2007 Operating Revenue Increases to CNY5.7 Bil.
--------------------------------------------------------------
Xining Special Steel Co. Limited recorded an operation revenue
of CNY5.7 billion for 2007, up by CNY2.3 billion in 2006, Steel
Guru News reports.

The report relates that the company's 2007 output and sales
volume exceeded 1 million tonnes.

According to Guru News, in the company's product cost structure,
the main raw materials account for a large proportion.  The
company combines this situation, as well as the resources
advantage in Qinghai province, and put forward mineral resources
development strategy, the report notes.

Xining Special said that it will increase the development and
construction of its iron ore and coal resources.

The company's unit, Xigang Mining Development Company, will
exploit three iron ore mimes in Qinghai:

   -- Da Shalong iron ore mine with 32 million tonnes,

   -- Magnet hill mine with 35 million tonnes, and

   -- Flood river mine with 12.1 million tonnes.

The mines are expected to put into operation in three years and
form 700,000 tonnes production capacity.

In 2008, Xining Special Steel plans to produce 1.1 million tons
iron powder concentrate, up by 78.5% than that of in 2007, with
expectation that in three years, it will have 2 million tons
iron powder concentrate production capacity, the report adds.

                      About Xining Special

Based in Xining, Qinghai Province, Xining Special Steel Co.,
Ltd. is principally engaged in the smelting and processing of
special steel products and offers alloy structural steel, alloy
tool steel, carbon structural steel, bearing steel, spring
steel, carbon tool steel, stainless steel, high-temperature
steel and other steel products.

As of May 2, 2008, the company currently holds Xinhua Far East
China Ratings's BB issuer credit rating on August 25, 2006.


XIN JIANG: Not Paying Dividend for FY2007
-----------------------------------------
Xin Jiang Hops Co. Limited will not pay any dividend to its
shareholders for fiscal year 2007, Reuters reports.

Based in Urumqi, Xinjiang Uygur Autonomous Region, China,  Xin
Jiang Hops Co., Ltd. -- http://www.ljjn.com/-- is principally  
engaged in the production and sale of beers, raw materials for
beer, fruit drinks and vegetable drinks, as well as the real
estate business.  The company primarily offers hops and hop
pellets under the brand name of Xinrui, malt, beers under the
brand name of Xinjiang, guava drinks and carrot drinks under the
brand names of Shennei and Pinjiashi.

The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007, that the company has a capital deficiency of
US$11.26 million, on total assets of US$86.63 million.



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

CONEXANT SYSTEMS: Posts $142MM Net Loss in Qtr. Ended March 28
--------------------------------------------------------------
Conexant Systems Inc. disclosed Tuesday results for the second
quarter ended March 28, 2008.

GAAP operating loss was $125.7 million and GAAP net loss was
$142.0 million for the second quarter of fiscal 2008.  The GAAP
net loss in the quarter included an asset impairment charge of
$121.7 million primarily related to the write-down of goodwill
associated with the Broadband Media Processing business.

GAAP operating loss was $172.7 million and GAAP net loss was
$133.4 million for the second quarter of fiscal 2007.  The GAAP
net loss in the quarter included non-cash goodwill and
intangible asset impairment charges related to the company's
Embedded Wireless Networking business of $135.0 million and
$20.0 million, respectively, and a gain on the sale of the
company's investment in Jazz Semiconductor Inc. of $43.5
million.  

Revenues for the second quarter of fiscal 2008 were
$174.0 million, compared to revenues of $200.0 million for the
second quarter of fiscal 2007.  

Core gross margins were 45.0% of revenues, which was unchanged
compared to core gross margins of 45.0% of revenues in the
second quarter of fiscal 2007.  Core operating expenses were
$72.3 million, and core operating income was $6.0 million,
compared with core operating expenses of $89.9 million, and core
operating income of $63,000 in the second quarter of fiscal
2007.  Conexant's core net loss was $3.3 million in the second
quarter of fiscal 2008, compared to core net loss of $9.9
million in the second quarter of fiscal 2007.

On a GAAP basis, gross margins for the second quarter of fiscal
2008 were 45.4% of revenues.  GAAP operating expenses were
$204.7 million.  GAAP gross margins were 45.0% of revenues and
GAAP operating expenses were $262.5 million in the second
quarter of fiscal 2007.

The company ended the quarter with $164.1 million in cash and
cash equivalents.  Cash declined by approximately $68.0 million,
due in large measure to the company's re-purchase of $53.6
million of its floating rate senior notes.

                      Business Perspective

"I am pleased to be a part of the Conexant team and enthusiastic
about our company's long-term prospects," said Scott Mercer, who
joined Conexant as chief executive officer on April 14, 2008.  
"In the coming weeks and months, I will be focusing on our
overall strategy, and on improving our financial performance and
position.
   
"For the second fiscal quarter, we exceeded our expectations
entering the quarter," Mercer said.  "We anticipated revenues in
a range between $165.0 million and $170.0 million, and we
delivered $174.0 million.  Core gross margins came in at the
high end of the range we provided, and core operating expenses
were significantly lower than we expected, which reflects the
team's commitment to reducing costs."

                         Balance Sheet

At March 28, 2008, the company's consolidated balance sheet
showed $748.6 million in total assets, $746.6 million in total
liabilities, and $1.9 million in total stockholders' equity.

                        Business Outlook

Conexant expects revenues for the third quarter of fiscal 2008
to be in a range between $167.0 million and $171.0 million,
which includes revenues from its Broadband Media Processing
product lines.

                     About Conexant Systems

Headquartered in Newport Beach, CA, Conexant Systems, Inc. --
http://www.conexant.com/-- is a leading provider of integrated   
circuits for the communications and broadband digital home
markets.  The company has operations in India, Taiwan, China,
Japan, Korea, Bristol, and Germany.

                         *     *     *

Moody's Investor Service placed Conexant Systems Inc.'s long
term corporate family and probability of default ratings at
'Caa1' in October 2006.  The ratings still hold to date with a
stable outlook.


CONEXANT SYSTEMS: Terminates Daniel Artusi as President and CEO
---------------------------------------------------------------
Conexant Systems, Inc. said that on April 21, 2008, it executed
an agreement, which became effective on April 29, 2008, with
Daniel A. Artusi, pursuant to which Mr. Artusi’s service as
President and Chief Executive Officer of the company ceased
effective as of April 14, 2008 and Mr. Artusi became a non-
executive employee of the company, which position he held
through April 25, 2008.

Pursuant to the Artusi Agreement, the company elected to
terminate Mr. Artusi’s employment as President and Chief
Executive Officer with the company per section 8(b)(ii) of the
original employment agreement between Mr. Artusi and the Company
dated June 21, 2007.  Mr. Artusi will receive certain
compensation and benefits that Mr. Artusi is entitled to receive
pursuant to the 2007 Agreement as a result of his termination
"without cause" from the company.

Pursuant to his employment agreement, Mr. Artusi will receive a
lump sum separation payment in full and final settlement of
matters relating to his employment with the company of
US$2,716,438, which payment will be paid within 30 days of
April 25, 2008.  In addition, all of Mr. Artusi’s stock options
and shares of non-performance based restricted stock will vest
and all vested stock options may be exercised for two years from
the date of termination, after which time all of his stock
options will expire.

In addition, Mr. Artusi is restricted from competing with the
company or soliciting employees or customers of the Company,
which provisions will apply to Mr. Artusi until April 25, 2009.

                          About Conexant

Headquartered in Newport Beach, California, Conexant Systems,
Inc. (NASDAQ: CNXT) -– http://www.conexant.com/-- has a  
comprehensive portfolio of innovative semiconductor solutions
includes products for Internet connectivity, digital imaging,
and media processing applications.  Conexant is a fabless
semiconductor company that recorded revenues of US$809 million
in fiscal year 2007.

Outside the United States, the company has subsidiaries in
Northern Ireland, China, Barbados, Korea, Mauritius, Hong Kong,
France, Germany, the United Kingdom, Iceland, India, Israel,
Japan, Netherlands, Singapore and Israel.

                      *     *     *

Conexant currently carries Standard & Poor's Ratings Services’
B- rating with a negative outlook.


CONEXANT SYSTEMS: D. Scott Mercer Named as New CEO
--------------------------------------------------
In a regulatory filing, Conexant Systems, Inc. said that that
board member D. Scott Mercer has been named chief executive
officer.  The company also said that Christian Scherp, senior
vice president of Worldwide Sales, has been promoted to
president, and that Sailesh Chittipeddi, senior vice president
of Global Operations, has been promoted to executive vice
president of Global Operations and chief technical officer.

Mercer and Scherp replace Daniel Artusi, who had been president
and chief executive officer.  Artusi will be leaving the company
to pursue outside opportunities.

“We are fortunate that an executive of Scott’s caliber and
experience has chosen to become Conexant’s next chief executive
officer,” said Dwight W. Decker, non-executive chairman of
Conexant’s board of directors.  “Scott has been a Conexant
director for the past five years, so he is intimately familiar
with the issues facing our company.  I am confident that he will
provide the strategic leadership Conexant requires to attain the
next level of performance.”

Mercer, 57, will continue as a company director.

“I want to thank Dwight and the Conexant board for giving me the
opportunity to lead the company,” Mercer said.  “Over the past
three quarters, the Conexant team has done a good job of
reducing costs and improving financial performance, and we must
continue to drive progress in these areas.  Our highest priority
right now is to determine the best way to deliver increased
value to customers and shareholders.  I am looking forward to
working with Christian, Sailesh, and the rest of the senior team
in the coming weeks to evaluate our market and financial
positions, and to establish a clear strategic direction for our
company.

“I would also like to thank Dan for his service, and wish him
the best in his future endeavors,” Mercer said.

Mercer serves on the boards of Palm, Inc., Polycom, Inc., SMART
Modular Technologies, Inc., and Adaptec, Inc., where he is
chairman. In 2005, Mercer was named interim chief executive
officer at Adaptec.  Before that, he spent a total of eight
years at Western Digital Corporation in positions that included
executive vice president, chief financial and administrative
officer, and senior vice president and advisor to the CEO. He
also spent a year at TeraLogic, Inc. as chief financial officer,
five years at Dell, Inc. in a variety of financial-management
positions, and seven years at LSI Logic Corporation, where he
was promoted to chief financial officer.  After graduating with
a bachelor’s degree in Accounting from the California
Polytechnic University at Pomona, Mercer spent seven years with
Price Waterhouse in San Jose, Calif.

In his new position as president, Scherp, 42, will report to
Mercer and be responsible for the activities and results of
Conexant’s three business units in addition to managing the
company’s global sales force.  Prior to joining Conexant in June
2005, Scherp spent eight years with Infineon Technologies North
America.  In his last position at Infineon, he served as vice
president and general manager of the company’s Wireless/Wireline
Communications Group.  He was also vice president of marketing
for the Wireline Communications Group, and vice president and
general manager of the Communications Group’s wide area
networking business.  Before Infineon was spun-off from Siemens
AG in 1997, Scherp spent six years in a variety of positions in
engineering, marketing and business planning at Siemens.  He
holds a master’s degree in electrical and electronics
engineering, and a master’s degree in business administration
from the Technical University of Munich, Germany.

Chittipeddi, 45, joined Conexant in June 2006 as senior vice
president of Global Operations.  In his new role, Chittipeddi
will report to Mercer and be responsible for Global Operations,
Quality, Worldwide Manufacturing Engineering, Design Platform
Engineering, and Purchasing.  Prior to joining Conexant,
Chittipeddi held several senior operations-related positions
with Agere Systems, Lucent Technologies, and AT&T
Microelectronics.  He also served as Lucent’s SEMATECH
representative, and was a member of the Technical Staff with
AT&T Bell Labs.  Chittipeddi holds a master’s degree in business
administration from the University of Texas at Austin, a
master’s degree and a doctorate in physics from Ohio State
University, and a master’s degree in physics from Northern
Illinois University.  He also holds 59 U.S. patents related to
semiconductor process, package, and design, and has authored
nearly 40 publications.

                         About Conexant

Headquartered in Newport Beach, California, Conexant Systems,
Inc. (NASDAQ: CNXT) -– http://www.conexant.com/-- has a  
comprehensive portfolio of innovative semiconductor solutions
includes products for Internet connectivity, digital imaging,
and media processing applications.  Conexant is a fabless
semiconductor company that recorded revenues of US$809 million
in fiscal year 2007.

Outside the United States, the company has subsidiaries in
Northern Ireland, China, Barbados, Korea, Mauritius, Hong Kong,
France, Germany, the United Kingdom, Iceland, India, Israel,
Japan, Netherlands, Singapore and Israel.

                      *     *     *

Conexant currently carries Standard & Poor's Ratings Services’
B- rating with a negative outlook.


CONEXANT SYSTEMS: Sells Broadband Media Product Line to NXP
-----------------------------------------------------------
Conexant Systems, Inc. signed a definitive agreement to sell its
Broadband Media Processing product lines to NXP Semiconductors
in a transaction valued at up to US$145 million.  Conexant’s
Broadband Media Processing business provides solutions for
satellite, cable, terrestrial, and IPTV set-top box
applications.

Under the terms of the agreement, Conexant will receive
US$110 million in cash, and up to US$35 million in an “earn-out”
fee, contingent upon the achievement of certain milestones over
the next two years.  The transaction is subject to customary
closing conditions and regulatory approvals, and is expected to
close within the next 60 days.

“Over the years, the Conexant team has successfully developed
complex solutions for a variety of set-top box applications,”
said Scott Mercer, Conexant’s chief executive officer.  “NXP has
a long history in consumer electronics, and they possess the
scale, skill-sets, and resources required to maintain and expand
the positions we established.  I am convinced that the combined
team will attain an even higher level of success as they
continue to deliver innovative, cost-effective set-top box
solutions to customers worldwide.

“Divesting our Broadband Media Processing product lines also
represents a major step in our continuing effort to restructure
our company’s business model and cost structure,” Mercer said.  
“As we get closer to completing the transaction, we plan to
provide additional information on the financial performance we
expect from our continuing company.”

Approximately 700 Conexant employees at locations in the United
States, Europe, Israel, Asia-Pacific, and Japan will transfer to
NXP and join the company’s Home BusinessUnit when the
transaction closes.  At that time, Conexant’s ongoing businesses
will consist of Imaging and PC Media, and Broadband Access.  The
total available market addressed by these product lines is
greater than US$3 billion today and expected to grow over the
next three years.

                        About Conexant

Headquartered in Newport Beach, California, Conexant Systems,
Inc. (NASDAQ: CNXT) -– http://www.conexant.com/-- has a  
comprehensive portfolio of innovative semiconductor solutions
includes products for Internet connectivity, digital imaging,
and media processing applications.  Conexant is a fabless
semiconductor company that recorded revenues of US$809 million
in fiscal year 2007.

Outside the United States, the company has subsidiaries in
Northern Ireland, China, Barbados, Korea, Mauritius, Hong Kong,
France, Germany, the United Kingdom, Iceland, India, Israel,
Japan, Netherlands, Singapore and Israel.

                      *     *     *

Conexant currently carries Standard & Poor's Ratings Services’
B- rating with a negative outlook.


DUERR AG: Earns EUR4.4 Million for First Quarter Ended March 31
---------------------------------------------------------------
The Duerr Group AG posted EUR4.5 million in net profit on
EUR356.2 million in net revenues for the first quarter ended
March 31, 2008, compared with EUR2.1 million in net losses on
EUR304.1 billion in net revenues for the same period in 2007.

"We have taken a first important step towards raising the EBIT
margin to 5% in 2008 as announced," CEO Ralf Dieter said.  
"Duerr aims to increase sales revenues by up to 10%."

Net financial debt was reduced to EUR57.2 million from
EUR60.7 million.  Orders on hand were up 20% to EUR1.2 billion.

The Group’s gross margin rose by 0.4 percentage points to 17.0%.
Besides higher capacity utilization, this also reflects the
continuous improvement of internal processes. At 3.5%, the
increase in administrative and selling expenses was held well
below the growth in sales revenues.

                   Positive Outlook Unchanged

For 2008, Duerr expects incoming orders on a level with last
year provided the general economic conditions and currency
situation do not take a decisive turn for the worse. Sales
revenues will probably increase by up to 10%.

Duerr forecasts a further strong improvement in earnings, to
which a higher gross margin and the earnings improvement
targeted in final assembly conveyor systems are expected to
contribute.  As a result of the tax reform the effective tax
rate should not be more than 30% (2007: 39%) which will
additionally boost earnings. Duerr aims to hold cash flow at
least at the 2007 level.  The company therefore expects further
improvements in net financial debt and liquidity.

                          About Duerr

Headquartered in Stuttgard, Germany, The Duerr Group
-- http://www.durr.com/en/-- supplies products, systems, and
services for automobile manufacturing.  Duerr designs and builds
paint shops and final assembly plants.

The Duerr Group also operates in Czech Republic, France, U.K.,
Italy, Netherlands, Poland, Russia, Slovakia, Spain, Turkey,
Australia, Brazil, China, India, Japan, Mexico, South Africa,
South Korea and the U.S.A.

                          *     *     *

As reported in the TCR-Europe on March 3, 2008, Standard &
Poor's Ratings Services revised its outlook to positive from
stable on Duerr AG.  S&P also affirmed its 'B' long-term
corporate credit rating on the group.

Duerr AG also carries B2 Corporate Family, B2 Probability of
Default and Caa1 Senior Subordinate ratings from Moody's
Investor Service.  Moody's said the outlook is stable.


GMAC LLC: JCR Cuts Senior Debts Rating to #B+  from #BB-
--------------------------------------------------------
Japan Credit  Rating Agency  Ltd. has downgraded GMAC LLC
foreign currency long term senior debts rating to #B+ (Negative)
from #BB- (Negative).  The rating remains under Credit Monitor
(Negative).  The downgrade reflects Residential Capital, LLC
(ResCap), GMAC's mortgage operations' deteriorating earning
prospects and difficult funding environment.  GMAC's
profitability and liquidity will remain under risk due to
challenging operating environment surrounding ResCap, in JCR's
view.  If level of liquidity or equity capital of ResCap will be
substantially weakened, GMAC's rating will be further
downgraded.

According to JCR, ResCap's operation is pressured by
increasingly harsh mortgage market conditions. In the first
quarter of 2008, ResCap reported a substantial net loss,
resulting in USD589 million consolidated net loss of GMAC. In an
increasingly challenging operating environment, JCR sees a
growing possibility that ResCap should continue to record losses
in coming quarters.  In this case, ResCap could breach its
financial covenant which requires it to maintain a minimum
tangible net worth of USD5.4 billion.  The total net worth of
ResCap at the end of March 2008 was USD5.8 billion, compared
with USD6.0 billion at the end of 2007.

JCR also noted that in recent years, GMAC's auto finance and
insurance have been performing relatively well.  However,
operating environment of auto finance business in North America
is becoming weaker on the back of shrinking light-vehicle sales
amid weakening economy, and increasingly challenging capital
market situation.  In addition, GMAC's profitability and
liquidity will remain under risk due to challenging operating
environment surrounding ResCap.

Continuation of Credit Monitor (Negative) reflects possibility
of additional downgrades going forward. If level of liquidity or
equity capital of ResCap will be substantially weakened, GMAC's
rating will be further downgraded, JCR said.

                         About GMAC LLC

GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors      
Acceptance Corporation, is a global, diversified financial
services company that operates in approximately 40 countries in
automotive finance, real estate finance, insurance and other
commercial businesses.  GMAC was established in 1919 and employs
approximately 26,700 people worldwide.  Cerberus Capital
Management LP bought 51% GMAC LLC stake from General Motors
Corp. on December 2006.

In Asia, the company has operations in Australia, China, India,
New Zealand and Thailand.

                          *     *     *

As reported in the Troubled Company Reporter on April 25, 2008,
Moody's Investors Service downgraded GMAC LLC's senior rating to
B2 from B1; the rating remains on review for further possible
downgrade.  This action follows Moody's rating downgrade of
ResCap LLC, GMAC's wholly-owned residential mortgage unit, to
Caa1 from B2.


SUN MICRO: Posts US$34 Million Net Loss in Fiscal 3rd Quarter
-------------------------------------------------------------
Sun Microsystems, Inc. reported results for its fiscal third
quarter, which ended March 30, 2008.

Revenues for the third quarter of fiscal 2008 were US$3.266
billion, a decrease of 0.5% as compared with US$3.283 billion
for the third quarter of fiscal 2007.  Total gross margin as a
percent of revenues was 44.9, an increase of 0.4 percentage
points, as compared with the third quarter of fiscal 2007.

Net loss for the third quarter of fiscal 2008 on a GAAP basis
was US$34 million, or US$(0.04) per share, as compared with net
income of US$67 million, or US$0.07 per share, for the third
quarter of fiscal 2007.  In the third quarter of fiscal 2008,
the company recorded a US$52 million dollar tax provision, as
compared to a tax benefit of US$3 million in the third quarter
of fiscal 2007.  Net loss for the third quarter included charges
related to the acquisition of MySQL, which reduced earnings per
share by approximately US$0.04.

Cash generated from operations for the third quarter of fiscal
2008 was US$329 million, and the cash and marketable debt
securities balance at the end of the quarter was US$3.801
billion. During the third quarter, Sun continued to leverage its
cash position, spending US$300 million to repurchase 17.5
million shares of its common stock.  There is currently US$500
million remaining of the US$3 billion share repurchase program
announced in the company's fiscal fourth quarter of 2007.

"The U.S. economy presented Sun with significant challenges in
the third quarter, masking our progress in developing nations
and economies across the world," said Jonathan Schwartz, CEO of
Sun Microsystems.  "With double digit year-over-year growth in
India and Brazil, and triple digit year-over-year billings
growth in our energy-efficient, SolarisTM-based Chip Multi-
Threading (CMT) systems, Sun made considerable progress during
the quarter.  We continue to invest in the future created by
open alternatives to proprietary technologies, best exemplified
by the acquisition of MySQL. The world is moving to open source
innovation, and Sun continues to lead that revolution."

                   Third Quarter Highlights

Sun reported year-over-year revenue growth in 12 out of its 16
sales geographies during the third quarter, with double-digit
revenue growth in key international markets across EMEA, Asia
Pacific and the International Americas.

From a product perspective, SolarisTM-based Chip Multi-Threading
systems billings more than doubled year-over-year, with the
company's blade systems also delivering impressive billings
growth fueled by Sun's comprehensive portfolio spanning AMD
OpteronTM, Intel Xeon(R) and Sun UltraSPARC(R) offerings.

Furthering its presence in the open source software marketplace,
Sun announced the close of two significant acquisitions: MySQL,
the world's most popular open source database provider, and
innotek, whose VirtualBoxTM products provide free desktop
virtualization.

Sun signed a landmark collaboration agreement with The People's
Republic of China Ministry of Education to cultivate integrated
circuit engineering talent and industry development based upon
Sun's OpenSPARCTM open source silicon platform.

Sun was awarded significant contracts including funding from the
Defense Advanced Research Projects Agency for a five and a half
year research project focused on microchip interconnectivity via
on-chip optical networks enabled by silicon photonics and
proximity communication.

                     About Sun Microsystems

Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: JAVA) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services.  It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.

Sun Microsystems has subsidiaries in, among other, the United
Kingdom, Netherlands, Singapore, Taiwan, Mexico, Argentina,
Chile, India and Bermuda.

                          *     *     *

Sun Microsystems Inc. carries Moody's "Ba1" probability of
default and long-term corporate family ratings with a stable
outlook.  The ratings were placed on Sept. 22, 2006, and
Sept. 22, 2005, respectively.

Sun Microsystems also carries Standard & Poor's "BB+" long-term
foreign and local issuer credit ratings, which were placed on
March 5, 2004, with a stable outlook.


UTSTARCOM INC: Two Execs Pay $175,000 in Settlement with SEC
------------------------------------------------------------
Two UTStarcom Inc. officials agreed to pay a collective civil
penalty of $175,000 to settle claims with the Securities and
Exchange Commission, Christopher Lawton of The Wall Street
Journal reports.

Hong Liang Lu, UTStarcom's chief executive, agreed to pay
$100,000 while Michael Sophie, the company's former chief
financial officer, agreed to pay $75,000, in penalties, WSJ
notes.  

According to WSJ, citing SEC filings, the settled action was
filed after finding that between 2000 and 2005, UTStarcom
improperly reported more than $400 million in sales under
applicable accounting principles related to revenue recognition.  

WSJ notes that SEC further discovered that the company failed to
disclose transactions related to a third party, and did not
correctly record compensation for employee stock options.

Mr. Lu and Mr. Sophie, failed to initiate adequate measures
after being notified of the flaw in the company's internal
controls early as 2003, WSJ relates.

WSJ says quoting Marc Fagel, co-acting regional director of the
SEC's San Francisco regional office: "In our view when a company
has three restatements in three years having been put on notice
for some internal control problems, they need to take it
seriously.  Much of UTStarcom's troubles came from its
operations in China and other parts of Asia and offered a
warning to other Bay Area companies to what they are doing
offshore."

The company did not admit nor deny allegations of wrongdoing,
and agreed to settle the charges by consenting to a permanent
injunction against any future violations of the reporting,
books-and-records and internal control provisions of the federal
securities laws.  No monetary penalties were assessed against
the Company in conjunction with this settlement.

The settlement with the SEC does not include the investigation
of possible violations of the Foreign Corrupt Practices Act
which is ongoing with the Department of Justice.

"We are pleased to conclude this investigation with the SEC as
we have spent significant time and energy to resolve these
historical matters," Fran Barton, chief financial officer of
UTStarcom, stated.  "With these matters behind us we can now
redirect our efforts towards realizing UTStarcom's technological
advantages and growth opportunities."

                       About UTStarcom

Headquartered in Alameda, California, UTStarcom Inc. (Nasdaq:
UTSI) -- http://www.utstar.com/-- provides IP-based, end-to-end   
networking solutions and international service and support.  The
company sells its broadband, wireless, and handset solutions to
operators in both emerging and established telecommunications
markets around the world.  UTStarcom enables its customers to
rapidly deploy revenue- generating access services using their
existing infrastructure, while providing a migration path to
cost-efficient, end-to-end IP networks.  Founded in 1991, the
company has research and design operations in the United States,
China, Korea and India.

                       Going Concern Doubt

As reported in the Troubled Company Reporter on March 31, 2008,
PricewaterhouseCoopers LLP said on Feb. 29, 2008, that UTStarcom
Inc. suffered recurring net losses, negative cash flows from
operations and has significant debt obligations due on March 1,
2008.  These conditions raise substantial doubt about the
company's ability to continue as a going concern.



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

ALCATEL-LUCENT SA: Posts EUR181 Million Loss for 1st Qtr 2008
-------------------------------------------------------------
Alcatel-Lucent S.A. posted EUR181 million in net losses on
EUR3.86 billion in net revenues for the first quarter ended
March 31, 2008, compared with EUR8 million in net losses on
EUR3.88 billion in net revenues for the same period in 2007.

The company posted EUR95 million in adjusted net losses for
first quarter 2008, compared with EUR199 million in adjusted net
profit for the same period in 2007.

"Considering the impact of the Euro/USD adverse shift, our
revenue performance was in line with our expectations, with a
year-over-year growth of 6.3%and a sequential decline in the mid
point of our typical seasonal pattern of –20% to –25%," Patricia
Russo, CEO, said. "

"We achieved significant progress in our adjusted gross margin,
up 3.8 points quarter-over-quarter to 36.2%, in spite of
significantly lower volumes," Ms. Russo continued.  "This is
attributable in part to one-time gains and a favorable mix, but
also reflects an improved ability to retain the benefits of our
product costs reduction programs.  Additionally, we reduced our
operating expenses by 12% year-over-year, excluding the one time
capital gain."

                        2008 Forecast

With approximately half of its revenue in US dollar or dollar-
linked currencies, Alcatel-Lucent expects its full year 2008
revenue, expressed in current rate, to be down in the low to
mid-single digit range.

This is due primarily to the significant deterioration in the
Euro/US$ exchange rate and, to a much lesser extent, the
potential for lower capital spending by a few customers.

Against this backdrop, Alcatel-Lucent will continue to execute
against its three-year plan, with an aim to improve gross
margin, reduce operating expenses and turn around
underperforming businesses.

    * for full year 2008, the company believes it can achieve an
      adjusted gross margin in the mid thirties and confirms its
      target to achieve a low to mid single-digit adjusted
      operating margin in percentage of revenues; and

    * for the second quarter 2008, Alcatel-Lucent expects
      revenues to increase in the mid single-digit range
      sequentially.

                 Balance Sheet and Pension Status

The net debt position was EUR30 million as of March 31, 2008,
compared with net cash position of EUR271 million as of
Dec. 31, 2007.

It should be noted that the amount of accounts receivable sold
during the quarter was reduced by Euro 217 million sequentially.

The funded status of pensions and other post retirement benefits
(OPEB) amounted to EUR2.609 billion as of March 31, 2008, down
from EUR2.806 billion as of Dec. 31, 2007.

As of March 31, 2008, the global asset allocation of the group’s
funds was 20% in equity securities, 60% in bonds and 20%in
alternatives (i.e., real estate, private equity and hedge
funds), unchanged from year-end 2007.

                       About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.

Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.

                          *     *     *

As reported in the TCR-Europe on April 4, 2008, Moody's
Investors Service affirmed the ratings for Alcatel-Lucent, which
include a Ba3 corporate family rating for Alcatel-Lucent and a
Not-Prime for its short term debt, as well as Ba3 ratings for
senior and B2 ratings for subordinated debt that was issued
originally by the predecessor companies Alcatel S.A. and Lucent
Technologies, Inc.  Moody's said the outlook for the ratings is
Negative.

Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating.  Its Short-Term Corporate Credit rating stands at B.


ANEKA TAMBANG: 1Q Net Profit Decreases 37% to IDR675 Billion
------------------------------------------------------------
PT Aneka Tambang Tbk or Antam said its unaudited consolidated
net profit decreased 37% to IDR675 billion, and Earnings per
Share (EPS) of IDR70.81 for the first quarter of 2008, from the
IDR1,073 billion and EPS of IDR112.52 of the same quarter of
2007. The decrease is mostly due to lower achieved selling
prices of ferronickel and lower ferronickel sales volumes, with
no increase of nickel ore sales volumes or prices, in
combination with a 20% increase to Antam's cost of sales due to
higher fuel and ore feed prices.  The decrease occurred despite
slighter higher ferronickel production volume, signaling a good
performance from FeNi III, increased gold and silver sales
volumes and higher gold and silver achieved selling prices.  As
such Antam's net margin contracted to 32% from 45%.

Antam's President Director, Mr. Dedi Aditya Sumanagara said:
"While our net income has decreased in the first quarter of
2008, this was not unexpected.  We are pleased FeNi III appears
to have stabilized and ferronickel production increased
slightly.  As well, we were able to maintain our nickel ore
prices despite softening spot prices for nickel throughout the
quarter.  Our gold division performed well in terms of revenue
growth and prices of gold increased significantly.  We are still
optimistic we will achieve our volume targets for this year.  We
are also now focused on our next significant growth investment."

   * Net Sales

Antam's consolidated first quarter sales revenues dropped 12% to
IDR2,092 billion from IDR2,386 billion, due to lower ferronickel
sales volume as well as lower nickel prices. Nickel, including
exports of ferronickel and nickel ore, remains Antam's biggest
sales revenue component, accounting for 72% followed by gold
segment which accounted for 27%. The contribution of gold
segment increased from a 7% share of sales revenue in the first
quarter of 2007, due to stronger sales from trading activities
conducted by Antam's Logam Mulia unit.  However, while these
trading activities boosted revenues, the small operating margins
did not generate a similar boost to operating income.  Antam
remains an export oriented mining and metals company.  In the
first quarter of 2008, exports contributed 92% of Antam's total
net sales. All of Antam's nickel products are sold abroad while
exports accounted for 73% of the sales from Antam gold segment.

   * Ferronickel

In the first quarter of 2008, sales volumes dropped 62% from
3,345 tonnes to 1,267 tonnes of contained nickel in ferronickel
and generated IDR325 billion, a 69% decline from the IDR1,063
billion generated in the first quarter of 2007.  The decrease of
sales volumes in the first quarter of 2008 was due to
ferronickel shipments still in transit to Europe and so were
still accounted for as inventories. Total shipments of nickel
contained in ferronickel during the March quarter amounted to
5,975 tonnes. However, of that amount 4,708 tonnes departed at
the end of March and is expected to arrive in April. Antam
matches its ferronickel shipments with each customer's request.
During the March quarter, Antam delivered 1,159 tonnes to a
customer in Korea and 108 tonnes to a customer in Japan. Lower
sales volumes coupled with a 20% lower average achieved selling
price of US$12.69 per pound resulted in a 69% decrease of
revenues to IDR325 billion.  Although only reaching 7% of the
target, Antam remains hopeful to meet its 2008 ferronickel sales
target of 17,000 tonnes.

Not related to lower sales volumes during the March quarter,
ferronickel production was relatively similar to the first
quarter of 2007, as Antam produced 4,362 tonnes of contained
nickel in ferronickel compared to 4,352 tonnes. With this
result, Antam reached 26% of the 2008 17,000 tonnes target.  The
operation of FeNi III and FeNi II smelters was stable, while  
production from the FeNi I smelter was reduced due to a routine
maintenance overhaul.  FeNi I, FeNi II and FeNi III produced 752
tonnes, 1,758 tonnes and 1,851 tonnes, respectively. This
compares to the same quarter of 2007 when FeNi I, FeNi II and
FeNi III produced 1,089 tonnes, 1,565 tonnes and 1,697 tonnes
respectively.  The production of FeNi II was above capacity due
to higher ore grades and the maximization of the concentrates
from the slag treatment plant at the kiln.

To produce 4,362 tonnes Antam used 18,094 wmt from its own mines
at Pomalaa and Halmahera Island and 276,463 wmt from PT Inco's
East Pomalaa deposit. Antam has an agreement to source +/- 1
million wmt of ore feed from PT Inco. Antam currently is in
talks with PT Inco to extend the agreement.

As part of the routine maintenance of its ferronickel smelters,
Antam switched off the FeNi I smelter on February 19th. Antam
usually overhauls its smelters every 8-10 years. Antam expects
the overhaul to be complete in the middle of the second quarter
of 2008. Despite the overhaul of FeNi I smelter, Antam expects
to achieve its 2008 ferronickel production target of 17,000
tonnes. Antam last completed a routine overhaul of FeNi I
smelter at the beginning of 1999.  In 2005, Antam completed an
overhaul of FeNi II smelter, which included the installation of
a new copper cooling system.  However, the overhaul of FeNi I
will not include the installation of a similar system.  After
having recently been repaired following a leak that occurred in
July of 2007, the operation of FeNi III was stable and Antam
successfully increased the load of the smelter above 25
megawatts at the end of February. Despite the current load of
30-32 MW, Antam could need to lower the power load of the FeNi
III smelter to maintain the stability of the plant.  FeNi III
has a greater capacity than FeNi II, yet only just outpaced FeNi
II due to the low power load and due to the above average output
from FeNi II.

   * Nickel Ore

Beginning in 2008, with regards to the marketing of its ore
products, and not the estimation of reserves and resources,
Antam began to implement a new classification of its nickel ore.
Previously, nickel ore known as low grade saprolite ore (LGSO),
with a nickel grade between 1.5% and 2%, was included in the
classification of saprolite. It is now included in the
classification of low grade ore, which also includes limonite
ore with grades below 1.5%.  Ore grading above 2% is simply
classified as high grade ore.

The new classification has changed Antam's annual export targets
for 2008.  Rather than 5.8 million wmt of saprolite, Antam is
now targeting 3.2 million wmt of high grade ore and 2.6 million
wmt of low grade ore, or more specifically 2.4 million wmt of
LGSO and 0.2 million wmt of limonite.  Antam's production target
for high grade of 3.65 million wmt is the same as the export
target plus and additional 450,000 wmt for ore feed.  Antam's
production target for low grade is the same as the sales target.

As the reclassification of Antam's ore was only applied to
Antam's 2008 ore output, the only figures that represent an
accurate reflection of the company's performance are the
production and sales volumes, price and revenues of total
combined high grade and low grade nickel ore.  In the first
quarter of 2008, Antam's total ore production volume increased
33% to 2,313,299 wmt, while Antam's total ore sales volume held
steady at 2,005,706 wmt. The combined average achieved selling
price of all of Antam's nickel ore, which is sold free on board
(FOB) amounted to US$63.26 per wmt, slightly higher than the
US$62.76 per wmt of the same period last year.   Combined nickel
ore revenue increased 6% to IDR1,173 billion from IDR1,102
billion.

Antam's nickel ore is sold to Japan, Eastern Europe and China,
with the high grade generally going to Japan and Eastern Europe
and low grade to China. During the first quarter of 2008, 73% of
Antam's high grade was sold to Japan with the rest sold to
Europe.  Antam's ore prices are determined according to the spot
price on the London Metal Exchange, as well as the grade,
moisture content and specified recovery rate.  

Due largely to the ore reclassification for 2008 (2007 was not
reclassified), whereas Antam had no production of low grade in
the first quarter of 2007, production of low grade ore amounted
to 1,354,770 wmt, including 1,211,895 wmt of LGSO and 142,875
wmt of limonite. For the same reason, production of high grade
nickel ore decreased 45% to 958,529 wmt during the first
quarter.  Antam thus achieved 52% of the low grade production
target for 2008 (50% of the LGSO target and 71% of the limonite
target) and 26% of the high grade production target.

Combined high grade nickel ore sales amounted to 975,693 wmt, a
51% decrease compared to the first quarter of 2007, due to the
reclassification of ore in 2008. For the same reason,
consolidated high grade sales revenue decreased 40% to IDR720
billion. Meanwhile, whereas there were no sales in 2007, low
grade nickel ore sales of 1,030,013 wmt, including 926,476 wmt
of LGSO and 103,537 wmt of limontite, brought in sales revenues
of IDR453 billion.  Antam achieved 29% of its high grade sales
volume target and 40% of its low grade target (39% of the LGSO
target and 52% of the limonite target).

   * Gold and Silver

Antam's gold production increased 21% to 935 kg, or 31% of the
2008 target of 2,980 kg. The stronger production was due to
higher gold ore production as well as higher gold grades. Gold
ore production increased to 105,952 wmt from 99,428 wmt in the
first quarter of 2007 while the average gold grade was 10.80
grams per ton (gpt) during the first quarter of 2008 or 15%
higher than the 9.38 gpt achieved during the first quarter of
2007.

Gold sales increased by 112% in the first quarter of 2008 to
1,580 kg, or 26% of the 2008 target of 6,000 kg, as Logam Mulia
continued its extensive gold trading that began at the beginning
of last year. Antam's trading activities mostly consist of
buying scrap gold and reprocessing it into pure gold bars for
sale.  Exports accounted for 75% of gold sales in the March
quarter. Logam Mulia's .9999 fine gold products are
internationally accredited. Strong sales volumes coupled with a
38% increase in the average achieved selling price of gold of
US$901.57 per troy ounce, increased gold revenues by 269% to
IDR528 billion compared to IDR143 billion in the first quarter
of 2007. However, Antam's materials costs also increased
significantly related to the higher cost of using gold scrap to
produce gold bars.  In the first quarter of 2008, Logam Mulia
bought 1,109kg of gold compared to 56kg of gold in the same
quarter of 2007. Antam made smaller margins on its trading
activities than selling gold refined from bullion produced by
the Pongkor gold mine.

Sales of silver increased 40% to 7,289 kg supported by the 23%
increase in silver production to 7,633 kg. Inline with higher
silver sales volume as well as a 33% increase in the average
achieved selling price of silver to US$17.81 per troy ounce,
revenue from silver amounted to IDR30 billion, a 49% increase
compared to the first quarter of 2007. Exports accounted for 69%
of total silver sales. Domestic silver sales increased 46% to
IDR12 billion while exports increased 124% to IDR26 billion.  

Revenue from the precious metals refinery services decreased 15%
to IDR6 billion. Antam's gold segment, including gold, silver
and refinery services, generated IDR575 billion, an increase of
243% from the IDR167 billion in the first quarter of 2007.  

   * Bauxite

Despite a 24% higher average achieved bauxite price of US$20.41
per wmt, revenue from bauxite fell 70% to IDR14 billion. This
was due to lower demand for Antam's low quality high silica
bauxite ore still remaining at the nearly depleted Kijang
bauxite mine.  As such, bauxite sales volume decreased 76% to
73,866 wmt, or 5% of the 1.5 million wmt 2008 target. In line
with lower demand, Antam's bauxite production decreased 59% to
181,141 wmt or 12% of of the 2008 production target of 1.5
million wmt.

   * Cost of Sales and Production Costs

Despite a decrease in Antam's revenue, Antam's cost of sales
increased 20% to IDR1,061 billion mainly due to significant
increases in materials costs, ore mining fees, fuel,
depreciation and labour costs.  These top five largest
components of Antam's cost of sales represented 86% of Antam's
total production costs.

   * Materials Used

Materials costs, the largest component of Antam's cost of
production,  increased  185% to IDR570 billion representing 36%
of Antam's total cost of production.  The main cause of the
increase was a substantial increase in materials costs for
Antam's Logam Mulia precious metal refining business which
increased 2,479% to IDR307 billion and accounted for 54% of
Antam's overall material costs. This is due to Logam Mulia's
increased gold and silver trading activities. In view of the
strong demand for refined precious metals, Logam Mulia has been
active in purchasing gold and silver scraps from retailers and
jewelers and then remelting and refining them to produce refined
gold bars.  Logam Mulia purchased 1,109 kg of gold in the first
quarter of 2008, up 1,880% from the 56 kg purchased in the first
quater of 2007.  Gold and silver inventories also increased 150%
to IDR238 billion.  

Another substantial component of Antam's materials costs was the
purchase of nickel ore feedstock for ferronickel production,
which increased 45% to IDR200 billion, representing 35% of
Antam's overall material costs.  Ore was more expensive as Antam
purchased higher grades than in the first quarter of 2007.  In
the first quarter of 2008, Antam used 294,557 wmt of high grade
ore to produce 4,362 tonnes of nickel in ferronickel, resulting
in a lower than normal ratio of 67.5 tonnes of ore for each
tonne of contained nickel. About 94% of Antam's nickel feedstock
was sourced from PT Inco's East Pomalaa deposit. By buying ore
from PT Inco, Antam preserves its own high grade ore reserves
for later development, lowers the cost of ore mining fees and
frees up ore extraction capacity in order to increase production
of lower quality ore, which Antam does not use for its own
ferronickel production, for export to China.

In the first quarter of 2008, Antam did not undertake toll
smelting activities for its ferronickel production.

Other important materials are consumables such as coal and
anthracite which are used as reductors in the furnace. Although
coal consumption decreased 5% to  25,694 tonnes its price
increased 59% to IDR830,000 per tonne which resulted in 20%
increase in total coal cost to IDR17 billion. Anthracite
consumption increased 31% to 3,191 tonnes while its price
remained flat at  IDR1.26 million per tonne, which resulted in
31% increase in total cost to IDR4 billion.

   * Ore Mining Fees

Antam outsources most of its mining activities to third party
mining contractors  inline with Antam's plan to move downstream,
as well as to lower overhead costs, labour costs and pension
obligations. While both largely performed by mining contractors,
Antam classifies the cost of mining of ore for exports as ore
mining fees while the cost of mining the ore for feedstock as
materials used.

Ore mining fees increased 84% to IDR349 billion in the first
quarter of 2008 mainly due to a 33% increase of nickel ore
production and 6% increase of nickel ore sales volumes as well
as higher operating cost, such as fuel, which are passed on to
Antam by the mining contractors. Ore mining fees was the second
largest component, or 22%, of Antam's production cost. Nickel
ore mining fees, which amounted to IDR338 billion, was the
largest component of Antam's ore mining fees and accounted for
about 97% of the total.  Bauxite mining fees stood at IDR10
billion or 3% of Antam's mining fees while  gold mining fees
amounted to IDR1 billion or 0.3% of overall ore mining fees.

   * Fuel

Fuel costs,  the third largest component, representing 13% of
Antam's cost of production, increased 60% to IDR208 billion.
This is mainly due to higher international oil prices.  The
marine fuel oil (MFO) price increased by 77% to IDR4,708  per
litre while industrial diesel oil (IDO)  price increased by 40%
to IDR6,625 per litre. About 98% of Antam's fuel cost is
attributed to Antam's energy intensive ferronickel facilities at
Pomalaa. In first quarter of 2008, Antam used around 37.4
million litres of fuels, of which 91% was the less expensive MFO
and 9% was the more expensive IDO. However, although cheaper
compared to IDO, MFO is still too expensive and Antam's
ferronickel cash cost is still above the industry average. Antam
plans to lower its fuel cost further by converting to less
expensive fuels such as natural gas, hydropower or coal.

   * Depreciation

Depreciation was the fourth largest component, representing 8%
of total production costs. Depreciation increased 37% to IDR128
billion mainly due to the depreciation of FeNi III, which began
commerical operations in early 2007. About 80% of Antam's
depreciation is attributed to depreciation at Antam's
ferronickel facilities in Pomalaa.  Depreciation at Antam'gold
facilities in Pongkor contributed 19.5% of total depreciation
cost.

   * Labour Cost

Labour cost, which include salaries, wages, bonus and employee
benefits, was the fifth largest component of production costs
and  increased 18% to IDR122 billion representing 8% of total
production costs. Among the largest components of labour costs
were the IDR24 billion for bonuses, IDR15 billion for pension
health, IDR12 billion for business unit (remote-site)
allowances. Antam's Pomalaa nickel business unit accounted for
63% or the largest portion of the total labour cost. Pongkor and
Kijang accounted for 22% and 8% respectively.

   * Transportation Cost

While not included as the five largest production costs,
transportation cost, which includes costs associated with the
shipment of ore, machinery mobilisation, and loading and
unloading logistics, is an important component of production
costs. Despite higher fuel prices in the first quarter of 2008
and a slight increase in ore export volumes, transportation
costs decreased 38% to IDR21 billion.  The decrease is mainly
due to lower loading logistics activities. In the first quarter
of 2007 ore loading amounted to IDR18 billion and accounted for
53% of transportation cost. Meanwhile in the first quarter of
2008 ore loading amounted to only IDR6 billion and accounted for
only 28% of transportation cost.

   * Gross Profit

Antam's gross profit decreased 31% to IDR1,031 billion due to
lower revenues and higher cost of sales. As a result, Antam's
gross profit margin decreased 22% to 49% in the first quarter of
2008 from 63% in the first quarter of 2007.

   * Operating Expenses and Operating Profit

Antam's operating expense  increased 23% to IDR94 billion mainly
due to a 39% increase in general and administrative expenses to
IDR74 billion.  The largest component of  general and
administrative expenses was salaries and other employee
benefits, which increased by 52% to IDR36 billion and accounted
for about 49% of the total general and administrative expenses.
Other expenses, the second largest component of general and
administrative expenses, increased 63% to IDR16 billion in the
first quarter of 2008.

Exploration expenses and the Tokyo office's selling and
marketing activities, the other important components of general
and administrative expenses, decreased 10% to IDR19 billion and
44% to IDR1.6 billion respectively.

Antam's operating profit decreased by 34% to IDR937 billion,
which resulted in a decrease of operating margin to 45% in the
first quarter of 2008  from 60% in 2007.

   * Other Income and Net Income

In the first quarter of 2008 Antam booked other income of IDR10
billion, a 91% decrease from IDR108 billion in the first quarter
of 2007. This was mainly due to the foreign exchange losses of
IDR108 billion in the first quarter of 2008 due to the weakening
of the US dollar as opposed to IDR17 billion of foreign exchange
gain in the first quarter of 2007. Antam also booked less one-
off types of income, totalling IDR84 billion compared to IDR98
billion in the first quarter of 2007. The 249% increase of
interest income to IDR49 billion, due to higher interest rates,
and in particular for Antam's IDR3,646 billion of US dollar time
deposits and the 34% decrease of interest expense to IDR15
billion due to lower investment loans, could not offset the
decrease in other income.

Antam's profit before income tax decreased 38% to IDR947 billion
and after the deduction of 30% corporate income tax, Antam's net
income decreased 37% to IDR675 billion. As a result, Antam's net
margin decreased 29% to 32% in the first quarter of 2008 from
45% in the first quarter of 2007.

   * Cash Cost and Cost Reduction Program

Similar to other mining and metal companies, Antam experienced
increases in the cash costs of its products due to among other
things higher materials, labour and fuel costs. the provisional
ferronickel cash cost increased 37% to US$6.17 per pound mainly
due to higher fuel  and ore feed prices while the provisional
gold cash cost increased 6% to US$283.09 per troy ounce largely
due to higher fuel prices.  

Antam has taken various measures to lower its costs such as
using less expensive but higher quality parts, machinery and
equipment and continuously conducting employee training and
workforce size reduction to improve efficiency and productivity.
Antam has also entered into a Power Purchase Agreement with a
hydropower producer for the supply of 15 megawatts of
electricity (about 15% of its energy requirements) at a
competitive price of US$0.0565 per kilowatt hour that will
commence in 2009. The next major and most important costs
reduction exercise, however, will come when Antam converts its
main energy source from the more expensive diesel fuel to
cheaper alternative sources of energy such as coal, hydropower
or gas. Currently, coal is considered as the 'front runner' and
the most feasible source of cheaper energy for Antam's
ferronickel smelters. A study on a process called Smart
Predictive Line Controller, which would make the use of coal
suitable for the high energy needs of Antam's ferronickel, is
currently underway.

                          Balance Sheet

Antam's financial structure improved as Antam's cash and cash
equivalents more than doubled while total debt and post-
retirement obligations decreased, although accounts payable
increased slightly.  Lower debt in combination with a
significant increase of total stockholders' equity reduced
Antam's long term debt to equity (end of period) to 7%.   
Antam's balance sheet is ready to leverage and make growth
investments.

   * Total Assets

Antam's total assets increased IDR3,826 billion, or 47%, to
IDR12,004 billion.  The main reason for the increase is the 124%
increase of cash and cash equivalents.  Total assets also
increased due to an 870% increase of investments in shares of
stock and despite a 10% decrease of property, plant and
equipment.

   * Current Assets

Antam's current assets increased 80% to IDR7,593 billion due to
increased cash.  Cash and cash equivalents increased to IDR4,568
billion due to increased production and higher prices in 2007.  
Compared to the end of 2007 Antam's cash position decreased 4%,
due to a large income tax payment, long term investments and the
effect of foreign exchange rate fluctuations.  Antam's cash was
80% held in US dollar time deposits and 18% held in US dollar
bank accounts, in fourteen domestic and international banks.  
The range of annual interest rates on Rupiah time deposits
increased to 7.25% - 9.25%, while for US dollar time deposits
the range increased to 4.00% - 5.50%.

Antam's third party trade receivables net of the IDR1.3 billion
allowance for doubtful accounts held steady at IDR831 billion.  
Of these, 36% were current and 37% were 31 - 90 days overdue.  
The largest four receivables made up 69% of the account and were
owed by Antam's agent for ferronickel sales in Europe, Avarus
AG, followed by Raznoimport Nickel (UK) Ltd, Zhejiang Grand IMP
and Mitsui & Co. Ltd.

Antam's net inventories increased 76% to IDR1,845 billion,
mostly due to the IDR700 billion of ferronickel shipments in
transit to customers.  Antam did not have inventories in transit
at the end of the first quarter of 2007.  Inventories also
increased due to the 153% increase of gold and silver
inventories to IDR238 billion, associated with the gold trading
activities conducted by Logam Mulia, Antam's precious metals
refinery.   Nickel ore inventories increased 111% to IDR186
billion, while ferronickel inventories dropped 48% to IDR158
billion.

   * Non-Current Assets

Antam's non-current assets increased 11% to IDR4,411 billion.
The increase is due to the nearly ten times increase of
investments in shares of stock to IDR485 billion from IDR50
billion.  This account includes investments in PT Nusa Halmahera
Minerals, a gold joint venture company Antam has with Newcrest
Ltd, in PT Cibaliung Sumberdaya, a gold joint venture company
owns with Austindo, and in PT Indonesia Chemical Alumina.  In
the first quarter of 2008, Antam spent IDR430 billion to acquire
a 10.72% stake in Herald Resources Ltd, an Australian mineral
exploration and development company with which Antam has an
Indonesian lead and zinc joint venture called PT Dairi Prima
Mineral.

Non-current assets also increased due to a 38% increase in
deferred exploration and development expenditure to IDR527
billion and the 61% increase of deferred tax payments to IDR330
billion.  These increases offset the 10% decrease of property,
plant and equipment to IDR2,935 billion.

   * Total Liabilities

Antam's total liabilities decreased 9% to IDR2,561 billion, due
to lower taxes payable, lower debt and lower post-retirement
obligations, despite higher other payables and accrued expenses.

   * Current Liabilities

Antam's current liabilities decreased 5% to IDR1,090 billion,
due to lower taxes payable which decreased 65% to IDR146
billion.   Meanwhile the increases of current liabilities were
not enough to offset the increase to taxes payable.  Other
payables increased 576% to IDR115 billion due mostly due to
IDR48 billion of cash advances from customers.  Antam's accrued
expenses increased 23% to IDR494 billion, mostly due to
purchases of nickel ore from PT Inco and for mining and
transportation services fees.  Antam's trade payables increased
21% to IDR93 billion, with the largest amount of IDR26 billion
owed to Antam's mining services contractor PT Yudhistira Bumi
Bhakti.  Antam's current maturities of long term investment
loans held steady at IDR215 billion.

   * Non-Current Liabilities

Antam's non-current liabilities decreased 12% to IDR1,471
billion.  The decrease is mostly due to a 23% reduction of
investment loans, net of current maturities.  Antam has two
investment loans outstanding.  Net of current maturities, Antam
owes PT Bank Central Asia IDR409 billion and PT Bank Mandiri
IDR277 billion.  Both investment loans had an interest rate of
6.89%.

Antam's pension and other post-retirement obligations decreased
7% to IDR655 billion.  The fair value of the pension plan's
assets increased at a greater pace than the present value of
funded obligations such that obligations for pension benefits
dropped to IDR43 billion.   The trend was similar for post-
employment medical benefits which saw the fair value of the
plan's assets increasing 133%, while the present value of funded
obligations decreased 16% to IDR909 billion.  Meanwhile, the
liability for other post-retirement benefits, such as past-
service benefits, severance and compensation for accumulated
unused leave increased 22% to IDR152 billion.

   * Total Consolidated Stockholders' Equity

Antam's total consolidated stockholders' equity rose 76% to
IDR9,442 billion due to the 93% increase in retained earnings to
IDR8,461 billion.  This amount was 9% higher than the IDR7,785
billion at the end of 2007.  Antam had appropriated IDR2,653
billion of retained earnings, as per the end of 2007.  The
significant increase in retained earnings is due to
significantly higher net income in 2007 generated by increasing
production and higher commodity prices.

                           Cash Flows

Despite a decreased average achieved selling price for
ferronickel and decreased ferronickel and bauxite sales volumes,
in combination with flat total nickel ore sales volumes and
average achieved total nickel ore selling price, Antam was able
to increase its first quarter 2008 cash receipts from customers.  
This increase was supported by higher volumes and achieved
selling prices for gold and silver.  Although a significant
increase in income tax payments caused net cash flows provided
by operating activities to fall, Antam still remained free cash
flow positive.  With just IDR49 billion of capital expenditures,
Antam generated free cash flows of IDR375 billion.

   * Cash Flows from Operating Activities

Antam's cash flows provided by operating activities dropped 65%,
or IDR775 billion, to IDR424 billion.  The main reason for the
decrease was the 114% larger payments of tax, of IDR1,033
billion, related to Antam's substantial 230% net income increase
for the year 2007.  Antam pays corporate income tax at a rate of
30%.  Throughout the year Antam pre-pays income tax on a monthly
basis based on forecast annual income.  In the first quarter of
the 2008, as Antam's actual 2007 annual net income tax far
exceeded the forecast, Antam was required to make additional tax
payments to reconcile the difference.

Antam's cash receipts from customers moved in the opposite
direction of net sales and increased 20%, or IDR481 billion, to
IDR2,941 billion, due to the settlement of large amounts of
accounts receivables.  Antam's payments to suppliers increased
112% to IDR1,471 billion due to increased purchases of gold by
Logam Mulia, to an amount of IDR307 billion, for its gold
trading activities, as well as due to higher prices for ore feed
and for fuel.  As such, Antam's net cash receipts from operating
activities decreased 14% to IDR1,422 billion.  Payments to
commissioners, directors and employees meanwhile held steady at
IDR138 billion. Other receipts increased 411% to IDR91 billion,
mostly due to increased cash advances from customers.  

   * Cash Flows from Investing Activities

Antam's net cash used in investing activities increased IDR439
billion, or 664%, to IDR505 billion.  The main reason for the
increase is the IDR434 billion spent on long term investments, a
311%, or IDR420 billion increase over 2007.  Antam's main long
term investment was the IDR430 billion spent on the 10.72% stake
in Herald Resources Ltd (ASX: HER), a publicly listed Australian
exploration and mining company.  Antam also spent IDR4.25
billion to acquire an additional 76% in PT Mega Citra Utama, a
bauxite exploration company.  Antam (20%) and Herald (80%) have
a joint venture in Indonesia called PT Dairi Prima Mineral,
which will soon develop a large lead zinc project on Sumatra.  
Together with its Chinese partner, Shenzhen Zhongjin Lingnan
Nonfemet Co. Ltd, Antam made a joint takeover bid for Herald,
for AUD2.50 per share. Antam wants to majority own PT Dairi
Prima Mineral, with Zhongjin as the operator, so as to maximize
value. Currently Antam is still in the midst of its takeover
bid.

Antam also spent IDR63 billion on exploration and development,
an additional IDR34 billion, or 117%, over the first quarter of
2007.  Antam increased spending on acquisitions of property,
plant and equipment by 40% to IDR49 billion, mostly for land
improvements, with IDR20 billion spent at Pongkor and IDR18
billion spent at Pomalaa.  

Antam's dividend income increased slightly to IDR42 billion, all
of which was paid by Antam's gold joint venture with Newcrest
Ltd, PT Nusa Halmahera Minerals.

   * Cash Flows from Financing Activities

Antam did not generate any cash flows from financing activities
during the first quarter of 2008.  This compares with the same
quarter of 2007 when Antam repaid IDR247 billion of long term
borrowings.

                      About Aneka Tambang

PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,         
processes, develops, and explores natural deposits.  The company
operates six mines.  They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and
WestJava (gold).  The company also operates a precious metal
refinery and a geology unit in Jakarta.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 17, 2008, Moody's Investors Service upgraded PT Aneka
Tambang (Persero) Tbk's corporate family rating to Ba3 from B1.  
The action concluded the review for possible upgrade which
commenced on October 22, 2007.

On Dec. 4, 2006, that Standard & Poor's Ratings Services raised
its long-term corporate credit rating on Indonesian state-owned
miningcompany PT Antam Tbk. to 'B+' from 'B'.  The outlook is
stable.  At the same time, Standard & Poor's also raised to
'B+', from 'B', the rating on the senior unsecured notes issued
by Antam Finance Ltd. and guaranteed by Antam.



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

ALITALIA SPA: Files Over EUR1-Billion Damages Suit vs SEA SpA
-------------------------------------------------------------
Alitalia S.p.A. is seeking more than EUR1 billion in damages
against SEA S.p.A. for breach of contract and serious damage to
reputation, Agence France-Presse reports.

Alitalia claims SEA breached plans to expand Milan's Malpensa
airport and improve transport infrastructure, AFP relates.  
Alitalia also claims that SEA's EUR1.2-billion suit against it
has damaged the national carrier's sale prospects.

Air France-KLM SA, said its binding offer for the Italian
government's 49.9% stake in Alitalia hinges on several
conditions, including "the identification of an applicable
solution to definitely remove the risk connected to the SEA
claim."  Air France had withdrawn its bid.

As reported in the TCR-Europe on Feb. 6, 2008, SEA filed a
EUR1.2 billion damages suit against Alitalia over the carrier's
decision to downscale its operations at Milan's Malpensa
airport.  SEA chairman Giuseppe Bonomi said Alitalia violated a
hub partnership agreement and contracts with SEA and its SEA
Handling unit.

Mr. Bononi noted that SEA designed and developed Malpensa as
Alitalia required in terms of infrastructures, facilities and
organization.  However, Mr. Bononi added, the investments are
rendered useless by Alitalia's downscale plan.  According to Mr.
Bononi, Alitalia's downscale plan will cut traffic at Malpensa
by 6 million passengers and will reduce the airport's results by
EUR70 million.

In March, SEA said will not withdraw the suit against Alitalia,
but may consider an out-of-court settlement.

                         About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes, including United States, Canada,
Japan and Argentina.  The Italian government owns 49.9% of
Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.

Italian Finance Minister Tommaso Padoa-Schioppa had said that if
the sale to Air France fails, Alitalia may seek protection from
creditors and the government would appoint a special
commissioner to initiate bankruptcy proceedings.


DELPHI CORP: Court Approves DIP Facility Extension & Refinancing
----------------------------------------------------------------
The Hon. Robert Drain of the U.S. Bankruptcy Court for the
Southern District of New York authorized Delphi Corp. and its
debtor-affiliates to effectuate an extension to Dec. 31, 2008,
and obtain a refinancing of its $4,095,820,240 DIP facility,
pursuant to an amendment and restatement of the First Amended
and Restated DIP Credit Agreement dated Nov. 20, 2007.

Under the Existing Credit Agreement, JPMorgan Chase Bank, N.A.,
as lender and administrative agent, provided loan facilities of
$4,095,820,240 to Delphi, as borrower.  JPMorgan has agreed to
arrange refinancing of the DIP Facility, which consists of:

    * Tranche A.  A $1,000,000,000 first priority revolving
      credit facility,

    * Tranche B.  An up to $600,000,000 first priority term
      loan, and

    * Tranche C.  A $2,495,820,240 second priority term loan.

"We expect to close shortly," John Wm. Butler, Jr., Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois,
said of the loan syndication, according to a Bloomberg News
report.  "Sometime within the next 10 days."

The proposed Second Amended and Restated DIP Credit Agreement
provides for these terms:

Borrower:      Delphi Corp.

Guarantors:    Delphi's subsidiaries

Lenders:       [_______]

Admin. Agent:  JPMorgan Chase

Joint Book
Runners &
Lead
Arrangers:     JPMorgan Securities Inc., [*] and [*]

Syndication
Agent for
Tranche A and
Tranche B
Lenders:       Citicorp USA, Inc.

Commitments:   Tranche A initially at $1,000,000,000.  Tranche B
               initially at $600,000,000, and Tranche C
               initially at $2,495,820,240.

Use of
Proceeds:      The proceeds of the Tranche A, Tranche B and
               Tranche C borrowings made on the effective date
               of the Amendment will be used to pay in part all
               the respective Existing DIP Loans outstanding on
               the Effective Date.

               The remaining proceeds of the Tranche A Loans
               made and the Letters of Credit issued after the
               Effective Date will be used for working capital
               and for other general corporate purposes of the
               Debtors, including the making of pension
               contributions, the payment of transaction costs,
               fees and expenses in respect of transactions in
               connection with the Amendment and Transactions
               and the Chapter 11 cases and the payment of
               Restructuring Costs.

Letters of
Credit:        Delphi may request the issuance of letters of
               credit for its own account or the account of any
               subsidiary, each of which will expire on the
               earlier of (i) one year after the date of the
               issuance of the L/C and (ii) 365 days after the
               Maturity Date.

Maturity Date: December 31, 2008.

Conditions to
Effectiveness: Conditions include JPMorgan will have received
               (i) an amendment fee equal to (A) 150 basis
               points of the Commitments of each Tranche A
               Lenders or Tranche B Lenders and (B) 200 basis
               points of the Commitments of each Tranche C
               Lender; and (ii) fees provided under a Fourth
               Amendment Fee Letter dated as of April 25, 2008.

Interest
on Loans:      Each ABR Loan will bear interest at a rate per
               annum equal to the Alternate Base Rate plus (A)
               if a Tranche A Loan, 3.00%, (B) if a Tranche B
               Loan, 3.00% and (C) if a Tranche C Loan, 4.25%;
               provided that if the applicable Alternate Base
               Rate at the time of determination of the interest
               rate for a Tranche B Loan or a Tranche C Loan is
               below 4.25%, the Alternate Base Rate for the
               Tranche B Loan or Tranche C Loan for the Interest
               Period will be deemed to be 4.25%.

               Each Eurodollar Loan will bear interest at a
               rate per annum equal, during each Interest Period
               applicable thereto, to the Adjusted LIBO Rate for
               the Interest Period in effect for such Borrowing
               plus (A) if a Tranche A Loan, 4.00%, (B) if a
               Tranche B Loan, 4.00% and (C) if a Tranche C
               Loan, 5.25%; provided that if the applicable
               Adjusted LIBO Rate at the time of determination
               of the interest rate for a Tranche B Loan or a
               Tranche C Loan is below 3.25%, the Adjusted LIBO
               Rate for the Tranche.

               "Alternate Base Rate" will mean, for any day, a
               rate per annum equal to the greater of (a) the
               Prime Rate in effect on such day and (b) the
               Federal Funds Effective Rate in effect on the day
               plus 1/2 of 1%, subject to certain conditions.

EBITDAR
Covenant:      EBITDAR for Delphi and its subsidiaries for each
               rolling 12 fiscal month period ending on the last
               day of each fiscal month to be less than the
               amounts set forth:

                  Period Ending            Global EBITDAR
                  -------------            --------------
                  April 30, 2008            $475,000,000
                  May 31, 2008              $575,000,000
                  June 30, 2008             $600,000,000
                  July 31, 2008             $575,000,000
                  August 31, 2008           $550,000,000
                  September 30, 2008        $625,000,000
                  October 31, 2008          $600,000,000
                  November 30, 2008         $675,000,000

Default
Interest:      If the Borrower or any Guarantor, as the case may
               be, will default in the payment of the principal
               of or interest on any Loan or in the payment of
               any other amount becoming due hereunder, whether
               at stated maturity, by acceleration or
otherwise,                
               it will pay interest, to the extent permitted by
               law, on all Loans and overdue amounts up to  the
               date of actual payment at a rate per annum equal
               to (x) the rate then applicable for the
               Borrowings plus 2.0% and (y) in the case of all
               other amounts, the rate applicable for Alternate
               Base Rate plus 2.0%.

Commitment
Fees:          Delphi will pay to the Tranche A Lenders a
               commitment fee for the period commencing on the
               Effective Date to the Termination Date or the
               earlier date of termination of the Tranche A
               Commitment, computed at the rate of 1.0% per
               annum on the average daily Unused Total Tranche A
               Commitment.

L/C Fees:      Delphi will pay with respect to each Letter of
               Credit (i) to JPMorgan on behalf of the Tranche A
               Lenders a fee calculated at the rate of 4.00% per
               annum, on the daily average L/C Exposure and (ii)
               to the issuing lender its customary fees for
               issuance, amendments and processing.  In
               addition, Delphi agrees to pay each issuing
               lender for its account a fronting fee of 0.25%
               per annum in respect of each Letter of Credit
               issued by the issuing lender, for the period from
               and including the date of issuance of the L/C to
               and including the date of termination of the L/C.

Priority
and Liens:     Subject to the carve-out for fees to the
               Bankruptcy Court, the U.S. Trustee and retained
               professionals, pursuant to Section 364(c)(1) of
               the Bankruptcy Code, obligations under the DIP
               Facility will at all times constitute allowed
               claims having priority over any and all
               administrative expenses, diminution claims and
               all other claims, including all administrative
               expenses of the kind specified in Sections 503(b)
               or 507(b) of the Bankruptcy Code.  Claims in
               respect of obligations under the Tranche A
               Facility and the Tranche B Loan will be senior in
               priority to the claims granted under the in
               respect of the Tranche C Loan.  The DIP
               obligations will also be secured by other liens
               and interests pursuant to Sections 364(c)(2),
               364(c)(3) and 364(d)(1).

A full-text copy of the April 29 draft of the Second Amended and
Restated DIP Credit Agreement is available for free at:

    http://bankrupt.com/misc/Delphi_Draft_RefinancedDIP.pdf

                       About Delphi Corp.

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: 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
March 31, 2007, the Debtors' balance sheet showed
$11,446,000,000 in total assets and $23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.

(Delphi Bankruptcy News, Issue No. 127; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: Court Approves Up to $650MM in GM Credit Extensions
----------------------------------------------------------------
The Hon. Robert Drain of the U.S. Bankruptcy Court for the
Southern District of New York authorized Delphi Corp. and its
debtor-affiliates to:

  (i) obtain extensions of credit of up to $650 million from
      General Motors Corp. and

(ii) pay undisclosed fees in connection with the loan.

GM, through an affiliate, will provide $650 million in advances
to Delphi in anticipation of the effectiveness of their Master
Restructuring Agreement and Global Settlement Agreement, both
dated Sept. 6, 2007, and amended Dec. 7, 2007.

As reported in the Troubled Company Reporter on April 29, 2008,
the parties' agreement provides for these terms:

  Borrower:            Delphi Corp.

  Guarantors:          Other Debtors

  Lender:              General Motors Corp.

  Commitment:          GM will provide loans to Delphi beginning
                       May 7, 2008:

                        (a) prior to June 1, 2008, in an
                            aggregate outstanding principal
                            amount not to exceed $200,000,000,

                        (b) from and after June 1, 2008, and
                            prior to July 1, 2008, in an
                            aggregate outstanding principal
                            amount not to exceed $300,000,000
                            and

                        (c) from and after July 1, 2008, in an
                            aggregate outstanding principal
                            amount not to exceed $650,000,000.

  Scheduled
  Termination Date:    The earliest of (a) Dec. 31, 2008, (b)
                       the date on or after the effectiveness of
                       the amendments to each of the Master
                       Restructuring Agreement and the Global
                       Settlement Agreement, on which GM or its
                       affiliates has paid to or for the credit
                       or the account of the Debtors from and
                       after the Effective Date an amount equal
                       to or greater than $650,000,000 in the
                       aggregate under the agreements and (c)
                       the date on which a Reorganization Plan
                       becomes effective.

  Covenants:           The parties agree to, among other things,
                       use their good-faith, commercially
                       reasonable efforts to (a) negotiate and
                       enter into amendments to each of the
                       Global Settlement Agreement and Master
                       Restructuring Agreement as soon as
                       practicable (the parties desire to enter
                       into amendments on or prior to July 1,
                       2008), and (b) obtain the consent of
                       Delphi's statutory committees with
                       respect to the amendments.

  Interest Rates:      Adjusted LIBO Rate plus [__]%  

  Interest Payments:   Interest payment date will mean the last
                       day of each March, June, September and
                       December, commencing Sept. 30, 2008.

  Default Interest:    Rate for Advances plus 2.0%.

  Priority:            The Debtors' obligations to GM will
                       constitute allowed claims having priority
                       pursuant to Section 503(b)(1) of the
                       Bankruptcy Code.  GM's set-off rights
                       will rank ahead of general unsecured
                       claims at all times.

  Conditions to
  Effectiveness:       The GM Agreement will be effective, when,
                       among other things, the Court approves
                       an amendment to the Amended and Restated
                       Revolving Credit, Term Loan and Guaranty
                       Agreement, dated as of Nov. 20, 2007,
                       originally signed by JPMorgan Chase Bank,
                       N.A., as administrative agent, and  
                       Citicorp USA, Inc., which amendment will
                       extend the termination date thereunder to
                       a date no earlier than Dec. 31, 2008.

A copy of the April 29 draft of the Agreement is available for
free at http://bankrupt.com/misc/Delphi_GM_Agreement2.pdf

                       About Delphi Corp.

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: 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
March 31, 2007, the Debtors' balance sheet showed
$11,446,000,000 in total assets and $23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.

(Delphi Bankruptcy News, Issue No. 127; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


FORD MOTOR: April 2008 Sales Drops 12%, Focus Sales Ups 88%
-----------------------------------------------------------
Total Ford Motor Company sales in April 2008, including Jaguar,
Land Rover, and Volvo sales, totaled 200,727, down 12%.

Ford's new Focus continues to defy gravity -- and the U.S.
economy -- with a 88% jump in retail sales versus last April and
the highest total Focus April sales since 2000.

"Focus is the right car at the right time," Jim Farley, Ford
group vice president, Marketing and Communications, said.  "This
is the little car that delivers in a big way for customers, with
outstanding fuel economy, cool features including SYNC, a fun
drive and the right price, right along with the rest of our
newest cars and crossovers."

Ford, Lincoln and Mercury cars achieved a 21% increase in retail
sales.  While Focus was the standout, the company's mid-size
cars also posted higher retail sales. Ford Fusion retail sales
were up 31%, Mercury Milan retail sales were up 19% and Lincoln
MKZ retail sales were up 20%.  The Fusion and Milan set April
sales records with total sales of 15,059 for the Fusion and
3,809 for the Milan.

Retail sales for the company's crossovers were 11% higher than a
year ago, paced by the Ford Edge (up 24%) and Ford Escape (up
13%).  Retail sales for the Mercury Mariner were up 6 percent
and Lincoln MKX retail sales were up 4%.

Higher gas prices are accelerating the industry-wide shift from
trucks and traditional sport utility vehicles to cars and
crossovers.  At Ford, April sales for sport utility vehicles
were 36% lower than a year ago and trucks were 19% lower.

Lower sales to daily rental companies (down 32%) also
contributed to the company's sales decline.  Overall, Ford,
Lincoln and Mercury sales totaled 189,247, down 12% compared
with a year ago.  Retail sales to individual customers were down
7%.

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 Troubled Company Reporter on March 28, 2008,
Standard & Poor's Ratings Services said that the ratings and
outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated
B/Stable/B-3) were not affected by Ford's announcement of an
agreement to sell its Jaguar and Land Rover units to Tata Motors
Ltd. (BB+/Watch Neg/--) for $2.3 billion (before $600 million of
pension contributions by Ford for Jaguar-Land Rover).

As reported in the Troubled Company Reporter on Feb. 15, 2008,
Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor
Company and Ford Motor Credit Company at 'B', and maintained the
Rating Outlook at Negative.

As reported in the Troubled Company Reporter on Nov. 19, 2007,
Moody's Investors Service affirmed the long-term ratings of Ford
Motor Company (B3 Corporate Family Rating, Ba3 senior secured,
Caa1 senior unsecured, and B3 probability of default), but
changed the rating outlook to Stable from Negative and raised
the company's Speculative Grade Liquidity rating to SGL-1 from
SGL-3.  Moody's also affirmed Ford Motor Credit Company's B1
senior unsecured rating, and changed the outlook to Stable from
Negative.  These rating actions follow Ford's announcement of
the details of the newly ratified four-year labor agreement with
the United Auto Workers.


JAPAN AIRLINES: Cuts FY2007 Operating Revenue Forecast by 0.4%
--------------------------------------------------------------
JAL Group revised its consolidated financial forecast for
FY2007, the year ended March 31, 2008, reflecting the trends of
recent performance.

The revised forecast supersedes the Group’s last forecast
announced on November 6, 2007 when the airline issued its
financial results for the half-year results for financial year
2007 (the period from April 1, 2007 to September 30, 2007).

Compared to the previous forecast, JAL Group’s revised forecast
for FY2007 operating revenue is now estimated at 2,230.0 billion
yen, down 8.0 billion yen or 0.4%. Operating costs are estimated
at 2140.4 billion yen, down by 49.5 billion yen or 2.3%.
Ordinary income is now estimated at 90.0 billion yen, up 42.0
billion yen or 87.5%; ordinary income at 69.0 billion yen up
25.0 billion yen or 56.8%; and net income at 16.0 billion yen,
up 9.0 billion yen or 128.6%.

If a company registered in Japan at anytime expects net income
to change by more than 30% - either up or down - from previously
announced forecasts it must notify the Tokyo Stock Exchange.

The JAL Group is currently in the process of making final
calculations for FY2007 and these will announced on May 9, 2008.

The JAL Group is focusing its energy and resources on the
creation of a business foundation capable of stable growth and
profit generation in any environment.

As a result of the effectiveness of ‘premium strategies’ aimed
at attracting business and top-tier travelers through product
and service enhancement and development, international business
passenger demand has been robust. Even though domestic passenger
demand is slightly lower than expected, the JAL Group’s revised
forecast for operating revenue is almost the same as its
previous forecast announced in November last year.

Due to the effectiveness of group-wide cost reform implemented
during FY2007 with the objective of increasing profitability and
tackling, for example, increases in the cost of jet fuel, the
JAL Group now forecasts that operating cost reductions will be
greater than previously expected.

To reflect this, both operating and ordinary income forecasts
have been revised upwards.

To remove risks in business operations, we have posted the
extraordinary losses outlined below, but net income for FY2007
is still expected to exceed previously announced estimates as a
result of the forecast increase in ordinary income.

Main Extraordinary Losses:

   a. Temporary depreciation costs of 7,068 million yen will be
      posted for FY2007, as the expected lifetime of spare parts
      for some aircraft models has been adjusted.

   b. A reserve fund of 6,193 million yen has been set aside for
      an ongoing investigation by the European Commission into
      alleged violations of the anti-trust law regarding
      international air cargo operations involving major global
      airlines.  The reserve is the best estimate of future
      possible losses related to this investigation, based on
      currently available information.  There is the possibility
      of a fluctuation in this estimate.

This is additional to the extraordinary loss resulting from JAL
International (JALI) entering into a plea agreement with the US
Department of Justice forviolations of the antitrust law in
which the company agreed to plead guilty concerning certain
alleged violations of the antitrust laws in the U.S./trans-
Pacific international air cargo business and to pay a fine of
US$110 million.

                     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.

                         *     *     *

As reported in the Troubled Company Reporter  on April 17, 2008,
Fitch Ratings revised the Outlook on Japan Airlines Corporation
and its whollyowned operating subsidiary, JAL International
Co., Ltd.'s Long-term Issuer Default ratings to Stable from
Negative.  At the same time, Fitch affirmed both companies'
Long-term IDRs and ratings of outstanding bonds at 'BB-'.  The
Outlook revision follows JAL's operational turnaround and better
liquidity.

As reported on Feb. 9, 2007, 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.  S&P said
the outlook on the long-term corporate credit rating is
negative.


JAPAN AIR: To Sell 49.4% Stake in Credit-Card Unit to Mitsubishi
----------------------------------------------------------------
Chris Cooper of Bloomberg News reports that Japan Airlines Corp.
will sell a 49.4 percent stake in its credit- card unit to
Mitsubishi UFJ Financial Group Inc.

According to the report, the airline will book a JPY42 billion
($401 million) gain from the sale.

The transaction, Bloomberg relates, is part of Japan Air's plan
to restructure its balance sheet.

The carrier lately sold JPY151.5 billion of preferred shares to
financial institutions to raise funds and is buying new planes
to reduce fuel costs, Bloomberg says.

In addition, Bloomberg says Japan Air plans to cut labor costs
by JPY10 billion this year and cut debt by 15 percent this
fiscal year to JPY1.32 trillion, from JPY1.55 trillion at the
end of March.

                    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.

                         *     *     *

As reported in the Troubled Company Reporter  on April 17, 2008,
Fitch Ratings revised the Outlook on Japan Airlines Corporation
and its whollyowned operating subsidiary, JAL International
Co., Ltd.'s Long-term Issuer Default ratings to Stable from
Negative.  At the same time, Fitch affirmed both companies'
Long-term IDRs and ratings of outstanding bonds at 'BB-'.  The
Outlook revision follows JAL's operational turnaround and better
liquidity.

As reported on Feb. 9, 2007, 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.  S&P said
the outlook on the long-term corporate credit rating is
negative.


NOVOLIPETSK STEEL: To Invest US$6.1 Bln to Double Output by 2015
----------------------------------------------------------------
Novolipetsk Steel OJSC plans a US$6.1 billion investment to
double its local steel production by 2015, Maria Kolesnikova
writes for Bloomberg News, citing chairman Vladimir Lisin.

According to Mr. Lisin, Bloomberg News reports, NLMK plans to
hike crude steel production to 22 million metric tons by 2015,
to meet up to 65% increase in Russian steel consumption by the
same year, driven by a boom in construction and car making.

                        About Novolipetsk

Headquartered in Lipetsk, Russia, Novolipetsk Steel OJSC --
http://www.nlmksteel.com/-- manufactures pig iron, slabs, hot-
rolled steel, and a variety of value-added steel products, such
as cold-rolled sheet, electrical steel and other specialty flat
products.  The group also operates in Denmark and Japan.

The group entered the Danish steel market in the first quarter
of 2006 by acquiring a 100% stake at DanSteel A/S.

                         *     *    *

As of April 7, 2008, Novolipetsk Steel OJSC carries Ba1
Corporate Family and Probability-of-Default ratings from Moody's
Investors Service, which said the Outlook is stable.

NLMK carries BB+ Issuer Credit rating from Standard &
Poor's Ratings Services,  which said the Outlook is stable.

The company also carries BB+ Long-term Issuer Default,
B and Short-term Issuer Default ratings from Fitch Ratings,
which said the Outlook is Stable.


TOKYO ELECTRIC: Posts JPY150.1 Billion Net Loss for FY2007  
----------------------------------------------------------
The Tokyo Electric Power Co. Inc. disclosed that operating
revenues in fiscal year 2007 (from April 1, 2007 to March 31,
2008) increased 3.7% from the previous fiscal year to 5,479.3
billion yen (5,224.3 billion yen on a non-consolidated basis, up
4.2%).  Ordinary income decreased 92.5% from the previous fiscal
year to 33.1 billion yen (loss of 22.0 billion yen on a non-
consolidated basis).

Net loss for the period was 150.1 billion yen (177.6 billion yen
on a non-consolidated basis), due to extraordinary loss of 269.2
billion yen (267.1 billion yen on a non-consolidated basis)
resulting from inspection and restoration costs of the
Kashiwazaki-Kariwa Nuclear Power Station hit by the Niigata-
Chuetsu-Oki Earthquake.

Electricity sales in the fiscal year increased 3.4% from the
previous fiscal year to 297.4 billion kWh, not only due to
increased air-conditioning demand in residential use by the
effect of a hotter summer and a colder winter than in the
previous year, but also due to increased demand in large
industrial power sector.  Of the total, electricity sales for
residential use increased by 4.7% to 97.6 billion kWh, low-
voltage power increased by 1.2% to 12.8 billion kWh, and
specified-scale demand increased by 2.9% to 187.0 billion kWh,
compared with the previous fiscal year, respectively.

On the revenues side, electricity revenues increased by 4.5%
from the previous fiscal year to 4,914.7 billion yen due to the
increase in electricity sales and so on.  Operating revenues,
including sales to other companies, etc., increased by 3.7% to
5,479.3 billion yen (up 4.2% to 5,224.3 billion yen on a non-
consolidated basis).  Ordinary revenues increased by 3.7% to
5,549.1 billion yen (up 4.1% to 5,265.8 billion yen on a non-
consolidated basis).

On the expenses side, in spite of the decrease in personnel
expenditure caused by reexamining the corporate pension plan,
ordinary expenses in electric business increased by 12.4% from
the previous fiscal year to 5,516.0 billion yen (up 12.8%
to 5,287.8 billion yen on a non-consolidated basis) due to
substantial increase in fuel cost and electricity purchase
expenses caused by the shutdown of the Kashiwazaki-Kariwa
Nuclear Power Station.

                          About TEPCO

Tokyo Electric Power Company (TEPCO) is the largest electric
power company in Japan and the largest privately owned electric
utility in the world.  TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.

As of March 31, 2007, TEPCO has the total assets of 12,924
billion yen, 38,108 employees, and the total generating capacity
of 61,835MW.  During fiscal year 2006, ended on March 31, 2007,
TEPCO sold 287,622 million kWh of electricity.


USINAS SIDERURGICAS: Net Profit Rises to BRL646 Mil. in 1st Qtr.
----------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais S.A.'s net profit increased
1% to BRL646 million in the first quarter 2008, compared to the
first quarter 2007, Business News Americas reports.

BNamericas relates that Usinas Siderurgicas' EBITDA rose 6% to
BRL1.3 billion in the first quarter 2008, compared to the same
period last year.  Its net revenues grew 7% to BRL3.6 billion,
and "physical sales" declined 3% to 1.9 million tons.

Usinas Siderurgicas' first quarter 2008 performance was well
above expectations, BNamericas says, citing Banco Brascan
analyst Rodrigo Ferraz.

Banco Brascan said in a research note that sales volume was hurt
due to restorations in some of Usinas Siderurgica's furnaces at
its Cosipa unit.  Restoration is expected to be completed in
May.  Usinas Siderurgicas plans to increase productivity.  "We
believe Usiminas will increase its production.  For the
remainder of 2008 we should see positive repercussions for the
company," Banco Brascan said in its report.

SLW Corretora analyst Kelly Trantin commented to BNamericas, "I
see a very positive outlook for Usiminas [Usinas Siderurgicas]."

Usinas Siderurgicas' revenues will tend to increase due to a
strong Brazilian consumer market especially in automobiles, auto
parts, appliances, industrial equipment, and construction,
BNamericas says, citing Mr. Trantin.  Another positive factor
was Usinas Siderurgicas' acquisition of J Mendes in 2007, as it
lessens the firm's dependence on other mining companies for iron
ore.  About 40% of Usinas Siderurgicas' iron ore supply will
come from J Mendes mines next year and the firm should be self-
sufficient by 2012, Mr. Trentin added.

Mr. Trentin commented to BNamericas, "Usiminas will gain a lot
in terms of competitiveness and margins."

Usinas Siderurgicas prefers to concentrate its efforts on
Brazil's internal market rather than the export market,
BNamericas states, citing Mr. Trentin.

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA -- http://www.usiminas.com.br-- is among the   
world's 20 largest steel manufacturing complexes, with a
production capacity of approximately 10 million tons of steel.  
Usiminas System companies produces galvanized and non-coated
flat steel products for the automotive, small and large diameter
pipe, civil construction, hydro-electronic, rerolling,
agriculture, and road machinery industries.  Brazil consumes 80%
of its products and the company's largest export markets are the
US and Latin America.  The company also sells in China and
Japan.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local
currency rating and an Aa1.br rating on its Brazilian national
scale to the BRL500 million non-guaranteed subordinated
debentures due 2013 to be issued by Usinas Siderurgicas de Minas
Gerais S.A. (aka Usiminas).  Net proceeds from the debentures
issuance will be used to partially fund the company's capex
program.  Moody's said the rating outlook is stable.


WAVE SYSTEMS: Gets Nasdaq Notice on Listing Non-Compliance
----------------------------------------------------------
Wave Systems Corp. received a notice from the Listing
Qualifications division of The Nasdaq Stock Market indicating
that the company's common stock is subject to potential
delisting from The Nasdaq Global Market because the market value
of the company's common stock was below $50 million for 10
consecutive business days and did not meet the requirement set
forth in Nasdaq Marketplace Rule 4450(b)(1)(A).  The notice
further stated that the company is not in compliance with an
alternative test, Nasdaq Marketplace Rule 4450(b)(1)(B), which
requires total assets and total revenue of $50 million each for
the most recently completed fiscal year or two of the last three
most recently completed fiscal years.

In accordance with Nasdaq Marketplace Rule 4450(e)(4), Wave will
be provided until May 29, 2008, to regain compliance with the
Rule.  If at anytime before May 29, 2008, the market value of
Wave's common stock is $50 million or more for a minimum of 10
consecutive business days, or such longer period of time as the
Nasdaq staff may require in some circumstances, the company will
achieve compliance with the Rule.

If Wave has not regained compliance with the Rule by May 29,
2008, the Nasdaq staff will issue a letter notifying the company
that its common stock will be delisted.  At that time, the
company may appeal the determination to delist its common stock
to a Listings Qualifications Panel.  Alternatively, if the
company cannot meet the requirements for continued listing on
The Nasdaq Global Market, it may apply to transfer to The Nasdaq
Capital Market.

Wave Systems plans to exercise diligent efforts to maintain the
listing of its common stock on The Nasdaq Global Market, but
there is no assurance that it will be successful in doing so.  
If the company does not resolve the listing deficiency, the
company may apply for listing on The Nasdaq Capital Market.

                       About Wave Systems

Wave Systems Corp. (NasdaqGM: WAVE) --  http://www.wave.com/--   
provides client and server software for hardware-based digital
security, enabling organizations to know who is connecting to
their critical IT infrastructure, protect corporate data, and
strengthen the boundaries of their networks.  Wave's core
products are based around the Trusted Platform Module, the
industry-standard hardware security chip that is included as
standard equipment on most enterprise-class PCs shipping today.  
A TPM is a highly secure cryptographic support system.  It
generates, stores and processes keys, which can be used to
encrypt information and harden identities.  It provides a broad
range of security features, but because the TPM works
independently of the operating system, it can serve as a "root
of trust," verifying the integrity of the machine and user.   
The company maintains operations in Japan.

                          *     *     *

As reported in the Troubled company Reporter on March 28, 2008,
KPMG LLP raised substantial doubt about the ability of Wave
Systems Corp. to continue as a going concern after it audited
the company's financial statements for the year ended Dec. 31,
2007.  The auditor pointed to the company's recurring losses
from operations and accumulated deficit.



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

CLOROX CO: March 31 Balance Sheet Upside-Down by US$472 Million
----------------------------------------------------------------
The Clorox Company reported results for its fiscal third
quarter, which ended March 31, 2008.

“Total company and base business sales growth were strong,
especially considering our very high level of growth in the
year-ago quarter,” said Chairman and CEO Don Knauss.  “Our
market shares held steady despite the economic pressures
consumers are facing.

“As expected, we faced intense cost pressures from commodity
cost increases.  Aggressive cost savings and the benefit of
recent price increases helped mitigate much of this impact, and
we feel good about our overall performance in this environment.  
Importantly, we continue to make progress against our Centennial
strategy and do the things we believe will drive economic profit
growth and shareholder value over the long term.”

                    Third-quarter highlights

Clorox reported third-quarter net earnings of US$100 million, or
71 cents diluted earnings per share, based on weighted average
diluted shares outstanding of 140 million.  Current quarter
earnings were reduced by US$17 million in pretax charges, or 8
cents diluted EPS, associated with the announced consolidation
of the company’s manufacturing networks and other charges, and
US$11 million, or 5 cents diluted EPS, associated with the
Burt’s Bees acquisition.  Excluding these factors, the company
delivered 84 cents diluted EPS.

In the year-ago quarter, Clorox reported US$129 million, or 84
cents diluted EPS, based on weighted average diluted shares
outstanding of 154 million.  The year-ago quarter’s results
included 6 cents diluted EPS, or US$14 million on a pretax
basis, of incremental costs associated with the IT services
agreement and asset impairments.  Excluding these factors, the
company delivered 90 cents diluted EPS in the year-ago quarter.

Third-quarter sales grew 9%  to US$1.35 billion, compared with
US$1.24 billion in the year-ago quarter, when the company
delivered 7% sales growth.  Excluding the Burt’s Bees and bleach
business acquisitions, sales growth in the current quarter was 5
percent.  This includes the benefit of favorable foreign
exchange rates and the unfavorable impact of exiting the
company’s private label food bags business.

Total volume increased 4% compared to the year-ago quarter, when
the company delivered 8% volume growth.  Excluding about 3
percentage points of growth from Burt’s Bees(R) products and
less than half a percentage point of growth from the bleach
business acquisition, volume was up slightly due to core volume
growth, offset by the impact of price increases and a higher
year-ago comparison.  Sales growth outpaced volume growth
primarily due to the benefit of price increases, favorable
foreign exchange rates and improved product mix.

Gross margin in the third quarter decreased 350 basis points to
39.8% from 43.3% in the year-ago quarter.  Excluding the impact
of the Burt’s Bees purchase-accounting step-up in inventory
values and previously announced restructuring-related charges,
gross margin was 41.8 percent.  The decrease was primarily due
to the impact of unfavorable commodity costs and higher costs
for manufacturing and logistics, including diesel fuel.  These
factors were partially offset by the benefit of cost savings,
price increases and improved product mix.

Net cash provided by operations was US$165 million, compared to
US$172 million in the year-ago quarter.  The year-over-year
decrease was primarily due to lower net earnings in the current
quarter.

At March 31, 2008, the company's balance sheet showed total
assets of US$4.750 billion and total debts of US$5.222 billion
resulting in a stockholders' deficit of US$472 million.

                         North America

The segment reported 8% sales growth, 4% volume growth and a 3%
decline in pretax earnings.  Volume benefited from the addition
of Burt’s Bees, the launch of Green Works(TM) cleaners, and
higher shipments of Brita products(R) and Fresh Step(R)
scoopable cat litter.  These results were partially offset by
the impact of poor weather on the auto and Kingsford(R) charcoal
businesses, price increases and the company’s exit from the
private-label food bags business.  Sales growth outpaced volume
growth primarily due to the benefit of price increases, a
favorable Canadian exchange rate and improved product mix.  
Pretax earnings reflected the impact of unfavorable commodity
costs and the charge of US$14 million for a purchase-accounting
step-up of inventory values associated with Burt’s Bees,
partially offset by the benefit of higher sales and cost
savings.

                        International

The segment reported 14% sales growth, 4% volume growth and a
16% decline in pretax earnings.  Sales results included about 6
percentage points from favorable foreign exchange rates and
about 4 percentage points of growth from the bleach business
acquisition.  Volume growth was driven by the bleach business
acquisition and category growth in Latin America.  Sales growth
outpaced volume growth primarily due to the benefit of favorable
foreign exchange rates and price increases.  Pretax earnings
reflected the impact of unfavorable commodity and manufacturing
costs and charges related to restructuring and asset impairment.

          Updated fiscal year 2008 financial outlook

For fiscal year 2008, Clorox now anticipates total sales growth
in the range of 8-9%.  Excluding the anticipated benefit of the
bleach business and Burt’s Bees acquisitions, Clorox anticipates
sales growth in the range of 5-6%.  This includes the benefit of
favorable foreign exchange rates and the unfavorable impact of
exiting the company’s private-label food bags business.

The company’s earnings outlook has been updated to reflect a
greater impact from commodity cost inflation and revised
estimates for dilution from the Burt’s Bees acquisition.
Previously, Clorox anticipated EPS dilution in the range of 13
cents to 15 cents from the Burt’s Bees acquisition.  Due to
strong business performance and lower interest rates, the
projected EPS dilution impact from the acquisition is now
anticipated to be in the range of 9 cents to 11 cents.  This
range includes pretax costs of about US$2 million for
amortization of intangible assets, US$19 million for the
purchase-accounting step-up in inventory values, and the impact
of financing the transaction.  Including the above factors,
Clorox now anticipates diluted EPS in the range of US$3.20 to
US$3.28.

Excluding the impact of the Burt’s Bees acquisition and
announced restructuring-related charges in the range of 25 cents
to 26 cents diluted EPS, the company anticipates fiscal year
2008 diluted EPS in the range of US$3.57 to US$3.62.

           Initial fiscal year 2009 financial outlook

For fiscal year 2009, Clorox’s initial outlook is for total
sales growth in the range of 6-8%.  Excluding the impact of the
Burt’s Bees acquisition, Clorox anticipates sales growth in the
range of 4-6%.  This range includes about 2 percentage points of
growth from innovation, including Green Works(TM) natural
cleaners.

The company anticipates modest gross margin expansion.  The
benefits of cost savings and price increases are expected to
more than offset the impact of commodity cost pressure for the
fiscal year.

For the fiscal year, Clorox projects cost savings in the range
of US$90 million to US$100 million; restructuring-related
charges in the range of US$20 million to US$25 million,
primarily related to the previously announced consolidation of
the company’s manufacturing networks; and a tax rate in the
range of 34-35 percent. The company anticipates weighted average
diluted shares outstanding of about 142 million.  Including
these factors, the company anticipates fiscal year 2009 diluted
EPS in the range of US$3.75 to US$3.90.

              Clorox completes credit agreement

On April 16, Clorox signed a five-year, US$1.2 billion unsecured
revolving credit agreement, with JPMorgan Chase Bank N.A.,
Citicorp USA Inc. and Wachovia Bank N.A. as the administrative
agents.  Amounts available under the agreement are for general
corporate purposes and to support the company’s issuance of
commercial paper.  Concurrently with the new pact, the company
ended its existing credit agreement, dated Dec. 7, 2004.

                     The Clorox Company

The Clorox Company -- http://www.TheCloroxCompany.com/--  
(NYSE:CLX) manufactures and markets of consumer products with
fiscal year 2007 revenues of US$4.8 billion.  Clorox brands
include its namesake bleach and cleaning products, Green
Works(TM) natural cleaners, Armor All(R) and STP(R) auto-care
products, Fresh Step(R) and Scoop Away(R) cat litter,
Kingsford(R) charcoal, Hidden Valley(R) and K C Masterpiece(R)
dressings and sauces, Brita(R) water-filtration systems, Glad(R)
bags, wraps and containers, and Burt’s Bees(R) natural personal
care products.  With 8,300 employees worldwide, the company
manufactures products in more than two dozen countries and
markets them in more than 100 countries.  The company has
subsidiaries in Switzerland, Luxembourg, Mexico, Venezuela,
Chile, Hong Kong, Korea and Australia, among others.


KENERTEC CO: Moves Date for Common Shares Listing to May 28
-----------------------------------------------------------
Kenertec Co. Limited amended the listing date for the private
placement of 1,315,000 common shares, Reuters reports.

According to the report, the new listing date is May 28, 2008.

Headquartered in Gyeongsangbuk Province, Korea, Kenertec Co.,
Ltd. -- http://www.kenertec.co.kr/-- is provides industrial   
burners and energy-related equipment.  The company operates two
main divisions: Furnace division, which provides regenerative
combustion systems, including regenerative combustion industrial
furnace burners, regenerative combustion radiant tube burners,
regenerative combustion raddle burners, radiant combustion
devices, direct heat-treatment burners, flat flame burners,
turndish-heating burners, high-spray burners, low-nitrogen-oxide
radiant tube burners, oxygen burners, flare stack burners and
rotary kiln burners, and Energy division, which provides
cogeneration systems, community energy systems and energy
diagnosis equipment.

Korea Ratings gave the company's convertible bond a BB rating on
Jan. 30, 2007.


*Hynix Joins Working Group to Create Mobile Memory Standards
------------------------------------------------------------
Hynix Semiconductor joined mobile handset industry leaders,
ARM, LG Electronics, Samsung Electronics, Silicon Image, Inc.,
Sony Ericsson Mobile Communications AB, and ST  
Microelectronics, to form a working group committed to creating
an open standard for next-generation memory interface technology
targeting mobile devices.  This first-of-its-kind memory
standard for dynamic random access memory, named Serial Port
Memory Technology, will enable extended battery life, bandwidth
flexibility, significantly reduced pin count, lower power demand
and multiple ports by using a serial interface instead of the
parallel interface commonly used in today's memory devices.

This technology will be ideal for mobile handset manufacturers
and consumers because it will dramatically extend battery life
while allowing high- performance media-rich applications that
will be the norm on next-generation mobile phones.

The SPMT Working Group's goal is to define a technology that
reduces pin count by a minimum of 40%, provides a bandwidth
range from 3.2GB/s to 12.6GB/s and higher, reduces input/output
power by 50 percent or more to extend battery life, and provides
the ability to use either a single port or multiple ports into a
single SPMT-enabled memory chip.  While initially targeted at
the mobile handset market, the technology will also be in demand
by other markets such as portable media players, digital still
cameras and handheld gaming devices.

The Working Group came together to pioneer a new technology to
meet the growing demand of manufacturers to extend battery life
and increase the performance and functionality of handsets while
reducing system cost for the devices.  This is in response to
mobile service providers' demand for solutions enabling them to
give consumers more data-intensive, media-rich capabilities such
as video (including high-definition video), GPS, gaming,
Internet access, e-mail, multimedia applications and music at a
competitive price.  The SPMT Working Group has been meeting
since the third quarter of 2007 and is expected to organize a
formal consortium later this year consisting of handset, memory
and system-on-chip manufacturers and semiconductor IP providers
with the intention of bringing the SPMT specification to the
industry by the end of 2008.

"The need for faster, denser DRAM chips for handsets will
continue to grow, particularly as the requirement for media-rich
functionality escalates," said Nam Hyung Kim, memory analyst,
iSuppli.  "It makes sense to develop an interface standard for
DRAM integrating serial technology that offers a way to achieve
higher bandwidth, pin count reduction and scalability not
achievable with current interface technologies."

"The increasing levels of integration in today's SoCs demand
greater bandwidth and performance from the communication fabric
and memory system," said Keith Clarke, vice president and
general manager, Fabric IP, ARM, "This serial memory interface
technology offers unique characteristics that enable ARM to
further optimize these critical system components.  Our
participation in this group will enable timely access to this
technology throughout our wide partner network."

"The growing number of full-featured, media-rich mobile
applications is creating an increased demand for more memory,"
said JB Kim, senior vice president of technical marketing,
Hynix's memory group.  "Serial Port Memory Technology will be
the right solution to support the requirements for low
pin count, low power and high bandwidth that will be required
for these new applications."

"We look forward to participating in the SPMT working group to
help define a new-generation memory interface," said Hee Chan
Park, general manager, development procurement team, LG
Electronics Mobile Communications Company.  "Being able to
significantly reduce pin count and increase bandwidth while
keeping cost in check is vital to successfully introducing
advanced and competitive products for our customers."

As DRAM content continues to grow for the new generation of
mobile devices, it is becoming increasingly difficult for
current technologies to keep up with the demand for longer
battery life, greater bandwidth and design flexibility while
reducing overall system cost," said Jim Venable, head of Silicon
Image's Advanced Memory Technology Products.  "Serial Port
Memory Technology will be a game-changer in the way mobile
device developers design new products that deliver significantly
better battery life and a higher- quality user experience.

"The constraints of physical size, pin-out, temperature and
power consumption continue to be a formidable barrier in
bringing media-rich applications to handheld products," said
Teppo Hemia, director of Mobile Chipset Platforms,
STMicroelectronics.  "By working together as an industry
to standardize a memory interface technology, we anticipate
enabling another big step in performance for mobile chipset
technologies that expand the range of useful products available
in the market."

               About Hynix Semiconductor

Headquartered in Echon, South Korea, Hynix Semiconductor Inc.
-- http://www.hynix.com/-- is a semiconductor manufacturer.    
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.
The company has operations in Russia, and the United States.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific
reported on June 19, 2007, Moody's Investors Service upgraded to
Ba2 from Ba3 Hynix Semiconductor Inc's senior unsecured bond
rating and corporate family rating.  At the same time, Moody's
assigned a Ba2 senior unsecured bond rating for Hynix's proposed
US$500 million issuance.  Moody's said the outlook for the
ratings is stable.



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

ARK RESOURCES: SC Approves Proposed Restructuring Exercise
----------------------------------------------------------
Pursuant to Practice Note 17/2005 the Listing Requirements of
Bursa Malaysia Securities Berhad, Ark Resources Berhad disclosed
that the Securities Commission has approved the Proposed
Corporate Restructuring Exercise under Section 32(5) of the
Securities Commission Act.

Pursuant to Chapter 18 of the Securities Commission's guidelines
on Issue/ Offer of Securities, the Proposed Restructuring
Exercise should be implemented within 12 months from the first
approval date of April 30, 2008.  

In relation thereto, the company's adviser, Aseambankers (M) Bhd
had sought the Securities Commission's approval for an extension
of time of eight months for the implementation and completion of
the Proposed Restructuring Exercise. Aseambankers is still
awaiting Securities Commission's approval.

ARK Resources Berhad, formerly known as Lankhorst Berhad --
http://www.lankhorst.com.my/-- is an investment holding company  
with headquarters in Shah Alam, Malaysia.  Through its
subsidiaries, the Company provides civil and geotechnical
engineering

On April 24, 2006, Lankhorst was classified as an affected
listed issuer under the Bourse's Practice Note 17/2005.  It was,
therefore, required to submit and implement a plan to regularize
its financial condition category.


LITYAN HOLDINGS: Wong Weng Foo & Co. Issues Qualified Report
------------------------------------------------------------
Lityan Holdings Berhad's auditors, Wong Weng Foo & Co have
issued a qualified report for the company's financial report for
the year ended December 31, 2007, saying that there is
substantial doubt on the appropriateness of preparing the
financial statements of the group and the company on the going
concern basis.  If the group and the company are not able to
continue as going concerns, adjustments would have to be made to
reduce the value of assets to their recoverable amounts, to
provide for any further liabilities which might arise, and to
reclassify the non-current assets and the non-current
liabilities as current assets and current liabilities
respectively.

Wong Weng Foo & Co. highlights these factors:

   * For the financial year ended December 31, 2007, the group          
     and the company incurred a net profit of MYR2.10 million      
     and a net loss of MYR4.16 million.  As of Dec. 31, 2007,      
     the shareholders' equity of the group and the company were      
     in deficit of MYR91.08 million and MYR28.08 million      
     respectively, and the current liabilities of the Group and      
     of the company exceeded their current assets by
     MYR114.29 million and MYR28.08 million respectively.  As of
     Dec. 31, 2007, the group and the company have been
     experiencing difficulties in settling their obligations as
     they fall due and have also defaulted on the repayment of
     certan bank borrowings;

   * There are multiple uncertainties that may affect the
     ability of the group and the company to obtain continued
     financial support from the lenders in the form of borrowing
     facilities, to generate sufficient cash inflows to sustain
     their operations and implementation of projects, and to
     obtain the outstanding approvals of the shareholders and
     relevant authorities for the implementation of proposals;

   * In the group's consolidated cash flow forecast for the
     financial year ending Dec. 31, 2008, the basis of the cash
     flow presumes that the Group and the company will continue
     to receive financial support from their shareholders,
     bankers and creditors for the improvement of future
     operating results and the successful implementation of the
     corporate and debt restructuring exercises;

   * the subsidiaries have defaulted on certain bank borrowings
     as at December 31, 2007, for which the company has provided  
     the corporate guarantees.  Most of these liabilities
     pertaining to the corporate guarantee have already been
     reflected in the consolidated financial statements of the
     group.  However, the net exposure of the company to these
     corporate guarantees as a result of the default has yet
     been quantified, and as such, the company has not provided       
     for the liabilities arising from these corporate
     guarantees.

Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides   
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding.  The Group carries out its operations in
Malaysia and the Philippines.

On May 10, 2005, the company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category.  On January 16, 2006, the Company
entered into a conditional Restructuring Agreement to undertake
the Proposed Restructuring Scheme with the intention of
restoring itself onto stronger financial footing via an
injection of new viable businesses.


LIQUA HEALTH: Unit Commences Legal Action Against Wynsum Healthy
----------------------------------------------------------------
Liqua Health Corp Bhd, through its wholly owned unit, Liqua
Health Marketing (M) Sdn Bhd has commenced legal action against
Wynsum Healthy Living Sdn Bhd, The EdgeDaily reports.

According to the report, Wynsum Healthy had breached a
distribution agreement entered with Liqua Health in Feb. 2007.  
Liqua Health is now claiming MYR15.7 million from Wynsum Healthy
for payments made and the non-delivery of goods.  The company
has also issued a writ of summons and a statement of claims for
the sum, which includes interest and costs incurred.

On the other hand, the EdgeDaily also notes that Liqua Health
also formed an investigative committee for the company believes
that there could have been a breach of fiduciary duties of its
directors with regard to the signing of a distribution agreement
and misappropriation of funds paid by Liqua Health Marketing, by
persons yet to be identified.

The Investigative Committee comprises of: Yeoh Eng Kong as the
chairman, Saaran Nadarajah and Andrew Su Meng Kit, the report
added.

Liqua Health Corporation Berhad is principally engaged in the
businesses of investment holding and provision of management
services.  Its core business is direct selling of health food
and related products, through its subsidiaries.  Liqua Health
and Liqua Spirulina are the two core health products of the
company.  The company’s subsidiaries include Liqua Health
Marketing (M) Sdn. Bhd., which is engaged in direct selling of
health food and general merchandise; Packcon (Asia) Sdn. Bhd,
which is engaged in marketing packaging materials and general
trading; Liqua Biotech Sdn. Bhd formerly known as Liqua Heath
Dairy Marketing & Supplies Sdn. Bhd.), which is engaged in
research and development; Quantum Healing Centre Sdn. Bhd
(dormant), which is engaged in the trading and marketing of
health food and general merchandise.  In February 2007, Liqua
Health Marketing acquired the remaining 51% interest in Liqua
Health Chain.

As reported by the Troubled Company Reporter-Asia Pacific on
May 2, 2008, the company was classified as an Affected Listed
Issuer as it has triggered Paragraph 2.1 of the Amended PN17 as
the consolidated shareholders' fund has dropped to approximately
MYR5.9 million which is below the 25% of the paid-up share
capital which stands at MYR144.3 million and the minimum issued
and paid up capital of MYR60 million required under paragraph
8.16A(1) of the Listing Requirements


THERMADYNE HOLDINGS: To Hold Annual Meeting on Tuesday
------------------------------------------------------
Thermadyne Holdings Corp. will hold its Annual Meeting of
Stockholders at 10 a.m., Central Daylight Savings Time, on
Tuesday, May 6, 2008, Chairman and Chief Executive Officer Paul
D. Melnuk disclosed in a regulatory filing.

The meeting will be held at the company's corporate headquarters
at 16052 Swingley Ridge Road, Suite 300 in St. Louis, Missouri.

At the meeting, the stockholders will be asked to:

      (1) elect a board of directors;

      (2) approve the Amended and Restated 2004 Stock Incentive
          Plan;

      (3) ratify the appointment of KPMG LLP as our independent
          registered public accountants for the year ending
          Dec. 31, 2008; and

      (4) transact any other business properly presented at the
          meeting.

Mark A. McColl, Interim General Counsel and Corporate Secretary,
added that only stockholders of record at the close of business
on March 10, 2008, will be allowed to vote at the meeting.

                        About Thermadyne

Headquartered in St. Louis, Missouri, Thermadyne Holdings Corp.
(NASDAQ: THMD) -- http://www.Thermadyne.com/-- manufactures and  
markets metal cutting and welding products and accessories under
a variety of leading premium brand names including Victor(R),
Tweco(R) / Arcair(R), Thermal Dynamics(R), Thermal Arc(R),
Stoody(R), TurboTorch(R), Firepower(R) and Cigweld(R).  
Thermadyne has subsidiaries outside the United States which
inlucdes, among others, Australia, Philippines, Malaysia,
Indonesia, England, Italy, Japan, Mexico and Brazil.


THERMADYNE HOLDINGS: S&P Lifts Corporate Credit Rating to 'B-'
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Thermadyne Holdings Corp. to 'B-' from 'CCC+'.  At the
same time, S&P raised the ratings on the subordinated notes to
'CCC' from 'CCC-'.

"This action results from the improved performance at the
company and from adequate cash and availability on its credit
facility," said Standard & Poor's credit analyst John Sico.  
S&P's previous concerns regarding material weaknesses that had
caused delays in Thermadyne's financial reporting have moderated
as the company has taken steps to alleviate this issue.  The
company is current on its filings with the SEC.  The outlook is
positive.

The ratings on Thermadyne reflect the company's aggressive
financial profile, weak but improving cash flow protection, and
still somewhat limited financial flexibility.  Thermadyne's
business risk profile is weak because of its participation in
the large, fragmented, intensely competitive, and cyclical
global welding-equipment industry.  Thermadyne's current
operating and financial performance reflect improving cost
controls and inventory levels, and somewhat better product-
pricing.  The company has invested heavily in working capital to
fund seasonal business needs.  It has exposure to raw-material
prices -- namely for copper, brass, and steel -- which has hurt
its operating performance.  Thermadyne has been addressing these
issues and is working to alleviate concerns regarding the
effectiveness of internal control over financial reporting.

S&P could raise the ratings one notch in the near term if the
company continues to generate free cash flow to reduce debt.  
The ratings do not incorporate any acquisitions or share
repurchases.  Conversely, S&P could revise the outlook to
negative or lower the ratings if market conditions deteriorate
and Thermadyne's performance deteriorates.  As of Dec. 31, 2007,
Thermadyne still had a material weakness in its financial
disclosure controls and procedures.  However, the company is
making progress toward resolving this weakness.


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

ARTISAN DEVELOPMENTS: Commences Liquidation Proceedings
-------------------------------------------------------
On March 31, 2008, Artisan Developments Limited was put into
liquidation by the High Court at Christchurch.  The High Court
appointed Iain Andrew Nellies and Wayne John Deuchrass as joint
and several liquidators.

The liquidators can be reached at:

          Insolvency Management Limited
          148 Victoria Street, Level 1 (PO Box 13401)
          Christchurch


BANKS PENINSULA: Faces Shell's Wind-Up Petition
-----------------------------------------------
On March 26, 2008, an application to put Banks Peninsula
Transport Limited into liquidation was filed in the High Court
at Christchurch.

The application will be heard before the High Court at
Christchurch on May 12, 2008, at 10:00 a.m.

The plaintiff is Shell New Zealand Limited and its solicitor is:

          R. J. BUCHANAN
          Buchanan Gray, Lawyers
          Zephyr House, 5th Floor
          82 Willis Street (PO Box 24057)
          Wellington
          Telephone: (04) 472 8269


BAY LUMBER: Settles With A S L Industries' Wind-Up Petition
-----------------------------------------------------------
Bay Lumber Limited has settled with A S L Industries Limited
regarding the advertisement of an application for liquidation
published in the New Zealand Gazette on March 6, 2008.

The advertisement in the New Zealand Gazette was withdrawn.  The
plaintiff in the suit was A S L Industries Limited and its
solicitor is MALCOLM DAVID WHITLOCK.


DW FUNDING: Shareholders Appoint Waller and Agnew as Liquidators
----------------------------------------------------------------
John Anthony Waller and Richard Dale Agnew, both chartered
accountants of Auckland, were appointed joint and several
liquidators of DW Funding Limited on April 9, 2008, by special
resolution of its shareholders.

The liquidators fixed May 9, 2008, as the last day for creditors
to make their claims and to establish any priority their claims
may have, or be excluded from the benefit of any distribution.

The liquidators can be reached at:

          Simone Fernandes
          PricewaterhouseCoopers (Private Bag 92162)
          Auckland
          Telephone: (09) 355 8000
          Facsimile: (09) 355 8013


EFFECT NZ LIMITED: Creditors Must File Claims by May 16
-------------------------------------------------------
Damien Grant and Steven Khov, insolvency practitioners, were
appointed joint and several liquidators of Effect NZ Limited by
the High Court on April 11, 2008.

The liquidators fixed May 16, 2008, as the last day for
creditors to make their claims and to establish any priority
their claims may have, or be excluded from the benefit of any
distribution.

The liquidators can be reached at:

          Waterstone Insolvency
          PO Box 352
          Auckland
          Freephone: 0800CLOSED
          Facsimile: 0800FAXWSI


FORTUNATO LTD.: Commences Liquidation Proceedings
-------------------------------------------------
Terence Charles Webb Bastion, chartered accountant of
Wellington, was appointed liquidator of Fortunato Limited by
special resolution of its shareholders on March 27, 2008.

The deadline to file claims expired on April 30, 2008.

The liquidators can be reached at:

          Terry Bastion
          PO Box 17344
          KBC House
          272 Karori Road
          Karori, Wellington
          Telephone: (04) 476 5775
          Facsimile: (04) 476 5778


FUEL SAVERS: Court Appoints Nellies and William as Liquidators
--------------------------------------------------------------
On March 31, 2008, Fuel Savers NZ Limited was placed into
liquidation and the High Court at Christchurch appointed Iain
Andrew Nellies and Paul William Gerrard Jenkins as joint and
several liquidators

The liquidators can be reached at:

          Insolvency Management Limited
          148 Victoria Street, Level 1 (PO Box 13401)
          Christchurch


KELOMIKA HOLDINGS: Court to Hear Wind-Up Petition on May 12
-----------------------------------------------------------
On March 28, 2008, an application to put Kelomika Holdings
Limited into liquidation was filed in the High Court at
Christchurch.

The application will be heard before the High Court at
Christchurch on May 12, 2008 at 10.00 a.m.

The plaintiff is Kiwi Property Holdings Limited and its
solicitor is:

          J. SHACKLETON
          Simpson Grierson, Solicitors
          HSBC Tower, Level 24
          195 Lambton Quay
          Wellington


LUDLOW INVESTMENTS: Court to Hear Wind-Up Petition Today
--------------------------------------------------------
On February 28, 2008, an application to put Ludlow Investments
Limited into liquidation was filed in the High Court at
Hamilton.

The application will be heard before the High Court at Hamilton
today, May 5, 2008, at 10:45 a.m.

The plaintiff is APR Architects Limited and its solicitor is:

          PAUL ALEXANDER SANFORD
          Sandford & Partners, Solicitors
          1208 Amohia Street (PO Box 99)
          Rotorua


METE CONSTRUCTION: Court to Hear Wind-Up Petition on May 30
-----------------------------------------------------------
On February 26, 2008, an application to put Mete Construction
Limited into liquidation was filed in the High Court at
Auckland.

The application will be heard before the High Court at
Auckland on Friday, May 30, 2008, at 10:45 a.m.

The plaintiff is Trans-Space Doors Limited and its solicitor is:

          T. M. BATES
          AEL Legal
          31-33 Great South Road, Ground Floor
          Newmarket, Auckland


MOOLOOLABA HOLDINGS: Court Appoints Richard Edge as Liquidator
--------------------------------------------------------------
Richard Owen Edge was appointed as liquidator of Mooloolaba
Holdings Limited by the High Court on March 31, 2008.

The liquidator can be reached at:

         Shannon Wrigley & Co Limited
         Chartered Accountants
         30 Duke Street West (PO Box 510)
         Cambridge
         Telephone: (07) 827 9512
         Facsimile: (07) 827 3495


MFS FINANCE: Discloses NZ$334.8 Million Shortfall
-------------------------------------------------
MFS Pacific Finance, now known as OPI Pacific Finance, disclosed
in a filing with the New Zealand Stock Exchange on Friday, that
of its NZ$476 million in cash, loans and investments as at
March 31, 2008, only NZ$122 million may be recoverable.
Therefore, Pacific Finance estimates a shortfall of the amount
needed to repay all of its Stockholders and creditors of as much
as NZ$334.8 million.  The company said loan and investment
recoveries have been impacted upon by, among other matters, the
lack of liquidity in the market as a result of the events in
global credit markets and more recently liquidity issues in the
Australian mortgage funding market, and the slowing of the
Australian economy and property markets.

This was the assessment of the directors of Pacific Finance
following receipt of information from Octaviar Limited as
administrator and originator of the loan and investment
portfolio of Pacific Finance, and advice from independent
professional advisers.  This assessment was included in the
company's moratorium proposal released on Friday.

As at March 31, 2008, Pacific Finance owed NZ$256.7 million to
Secured Debenture Stockholders and NZ$56.7 million to Unsecured
Noteholders.  This means that, even if the Company incurred no
costs in connection with asset realisations (or otherwise),
without financial support from Octaviar the Secured Debenture
Stockholders' recovery would amount to less than 50% of the
amount of their principal and accrued interest, and Unsecured
Noteholders would not recover any of their principal or
interest. The directors believe that this may be the likely
scenario in a receivership.

               Pacific Finance Moratorium Proposal

The moratorium proposal documents are available for download at
http://www.opinewzealand.co.nz/OPI+Pacific+Moratorium.htmland  
will shortly be emailed to financial advisors.  

The documentation was sent to the Secured Debenture Stockholders
and Unsecured Noteholders that are recorded on the Register of
Stockholders.  Where a Stockholder's investment is held in the
name of a custodian or nominee the documentation information
pack will be sent to that custodian or nominee. Included in the
information pack are:

   1. A Notice of Meeting and Explanatory Memorandum
      (incorporating a short form prospectus);

   2. A letter from Perpetual Trust Limited as the trustee of
      the Company;

   3. A Proxy Appointment Form; and

   4. A letter from the Directors of the Company.

                         Meeting Details

Meetings of the Secured Debenture Stockholders and Unsecured
Noteholders will be held contemporaneously at 10 a.m. on May 19,
2008, at Guineas 2 & 3 (Ellerslie Stand 3rd level), Ellerslie
Convention Centre, Ellerslie Racecourse, 80-100 Ascot Avenue,
Greenlane, Auckland.

The meetings, which will be held together as a single meeting
but with the Secured Debenture Stockholders and Unsecured
Noteholders voting separately, will consider important issues
concerning the future of Pacific Finance, namely a proposal that
Stockholders approve a moratorium on contracted repayments of
principal and interest payments until June 30, 2011.

             Key Features of the Moratorium proposal

The Moratorium is intended to allow Pacific Finance to conduct
an orderly realisation of its loans and investments, and to
receive proceeds from Octaviar Limited, previously MFS Limited,
under a proposed Standstill Loan Agreement, as Octaviar realises
its assets over a three year period.

Should Octaviar's proposed restructuring and asset realisation
programme be achieved at the amounts that Octaviar expects to
receive -- although of course no guarantees can be given --
Pacific Finance's Stockholders (including the Unsecured
Noteholders) should be repaid their principal over the three
year term of the Moratorium together with the possibility of
some interest.

In addition, if the Moratorium is approved on May 19, 2008 -- or
at any adjournment of the proposed Stockholder meetings --
Octaviar will release NZ$23.1 million to Pacific Finance that is
currently held in a solicitor's trust account in New Zealand as
an initial payment.  This payment is a key initial benefit of
the Moratorium.

The directors have investigated the options available to Pacific
Finance, and believe that the Moratorium:

   a) is the best way forward for Stockholders and the Company
      at this time, and that Stockholders should vote in favour
      of the Moratorium,

   b) provides Stockholders with the best possible opportunity
      of maximising recoveries; and

   c) is the only alternative to receivership, which the
      directors believe will be more costly and result in a
      worse outcome for Stockholders.

            Put Option and Standstill Loan Agreement

Pacific Finance has a put option agreement with Octaviar.
However Octaviar is not currently in a position to meet its
obligations under the Put Option, and enforcement may require
litigation to be commenced against Octaviar.  Instead, Octaviar
has requested Pacific Finance to recharacterise its potential
claims in a standstill loan agreement.

This Standstill Loan Agreement would exist alongside the Put
Option.  It is intended that the Standstill Loan Agreement be
entered into after the date of the Stockholders meetings, but on
or before August 29, 2008.  Octaviar is also negotiating with
its other large unsecured creditors in relation to it also
entering into similar standstill loan agreements with those
creditors.

The standstill loan agreements are intended to enable Octaviar
to undertake a restructuring and asset realisation program.
Octaviar has provided the directors of Pacific Finance with
information that indicates that Octaviar can (through the
standstill loan agreements), over a period of three years,
satisfy its obligations to its large creditors, including
Pacific Finance.  However, this is dependent on such large
creditors agreeing to no payments of interest and is also
dependant on the amounts for which Octaviar can realise its
assets.

         What Happens if the Moratorium is not Approved?

If the Moratorium is not approved then the NZ$23.1 million
currently held in trust for Pacific Finance would have to be
returned to Octaviar and would not be available to Pacific
Finance for payment to its Stockholders or creditors.

If the Moratorium is not approved, the Company would most likely
be placed into receivership.  For the reasons set out in the
Explanatory Memorandum, the Directors consider that a
receivership would result in Stockholders receiving
significantly less than they would receive if the Moratorium is
approved, and a Standstill Loan Agreement is entered into.

                             Voting

Stockholders are encouraged to consider the moratorium
documentation carefully, and to seek their own financial advice
on the Moratorium.  It is important that Stockholders exercise
their vote, to ensure the required quorum and approval threshold
are met.  Stockholders, whose investment is held in the name of
a custodian or nominee, are unable to vote at the meeting in
their own name and will have to instruct their custodian or
nominee how they wish it to vote in respect of their investment.

The Moratorium has the unanimous support of the directors of
Pacific Finance, who recommend that Stockholders vote in favour
of the resolutions.

It is important to note that the last date for receipt of a
Proxy Appointment Form is 10 a.m. on May 17, 2008.

The Troubled Company Reporter-Asia Pacific reported on Feb. 13,
2008, that MFS Pacific Finance defaulted on interest payments to
its 12,000 New Zealand investors after its parent company halted
support.  


PREMIER HOLDINGS: Court to Hear Wind-Up Petition on June 20
-----------------------------------------------------------
On March 11, 2008, an application to put Premier Holdings
Limited into liquidation was filed in the High Court at
Auckland.

The application will be heard before the High Court at Auckland
on June 20, 2008, at 10:45 a.m.

The plaintiff is Westpac New Zealand Limited and its solicitor
is:

          M. V. ROBINSON
          Simpson Grierson, Solicitors
          88 Shortland Street, Level 27
          Auckland


PRIMO BUILDING: Faces DB Plumbing's Wind-Up Petition
----------------------------------------------------
On March 11, 2008, an application to place Primo Building
Services Limited into liquidation was filed in the High Court at
Tauranga.

The application will be heard before the High Court at Rotorua
on May 19, 2008, at 10:45 a.m.

The plaintiff is DB Plumbing Limited and its solicitor is:

          S. J. CLEWS
          Osborne Attewell Clews
          Concordia House, Top Floor
          Pyne Street
          Whakatane

          
SHEPHERD FINANCIAL: Shareholders Appoint Liquidators
----------------------------------------------------
Victoria Toon and Boris van Delden, chartered accountants and
both of Auckland, were appointed joint liquidators of Shepherd
Financial Services Limited by its shareholders on April 9, 2008.

The liquidators fixed May 23, 2008, as the last day for
creditors to make their claims and to establish any priority
their claims may have, or be excluded from the benefit of any
distribution.

The liquidators can be reached at:

          McDonald Vague
          PO Box 6092
          Wellesley Street Post Office
          Auckland
          Telephone: (09) 303 0506
          Facsimile: (09) 303 0508



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

MANILA ELECTRIC: GSIS Head Seeks Full Transparency in Power Firm
----------------------------------------------------------------
Government Service Insurance System President Winston Garcia
is demanding full transparency and accountability in the
operations of Manila Electric Co., Doris C. Dumlao of Philippine
Daily Inquirer reports.

According to the report, Mr. Garcia complained that Meralco
management refused to give the GSIS access to corporate
documents although it and the government held four seats on the
11-seat Meralco board.

The report relates that the government controls 33 percent of
Meralco, of which 23 percent is owned by the GSIS.

                     About Manila Electric Co.

Headquartered in Ortigas, Pasig City, the Manila Electric
Company aka Meralco -- http://www.meralco.com.ph/-- is
engaged in the distribution and sale of electric energy through
its distribution network facilities in its franchise area.  The
franchise area of Meralco covers specific areas in Luzon,
consisting of 25 cities and 86 municipalities, with a size
of approximately 9,337 square kilometers.  This includes
Metro Manila, industrial estates and urban and suburban areas
of adjacent provinces.  The principal sources of power of
Meralco include the National Power Corporation, First Gas Power,
Quezon Power and the Wholesale Electricity Spot Market.

Meralco's subsidiaries are Meralco Industrial Engineering
Services Corporation, Corporate Information Solutions Inc.,
Rockwell Land Corporation, Meralco Energy Inc., e-Meralco
Ventures Inc., and Meralco Financial Services Corporation.
These companies are engaged in various businesses such as
engineering and construction services, information technology
services, integrated business solutions and property
development.

                         *     *     *

The Troubled Company Reporter-Asia Pacific reported on
Dec. 14, 2007, that Standard & Poor's Ratings Services revised
the outlook on its ratings on Meralco to stable from negative.
The 'B-' long-term issuer credit rating on Meralco was affirmed.


PETRO ENERGY: Assistant Corporate Secretary Leaves Post
-------------------------------------------------------
Atty. Arturo B. Maulion has resigned as Assistant Corporate
Secretary/Information Officer – Alternate of PetroEnergy
Resources Corporation effective May 31, 2008.

Milagros V. Reyes, President, is acting as the company's Chief
Information Officer/Alternate.

Meanwhile, PetroEnergy disclosed in a regulatory filing that
activities at its West Linapacan Oilfield remained on suspension
mode and its Galoc Block of the Service Contract (SC) 14-C was
farmed out to the Bahrain-registered Galoc Production Company in
the last quarter of 2004.

Commenting on the actions, independent auditor Sycip Gorress
Velayo & Co. said that the suspension of the production
activities in the West Linapacan Oilfield raises uncertainties
as to the profitability of the petroleum operations.

The auditing firm also noted that the farm-out of the company’s
participating interest in Service Contract No. 14 may result in
a potential reduction in its share of future revenues.

According to Sycip Gorress, “the profitability of petroleum
operations and the full recovery of unamortized cost of wells,
platforms and other facilities and the deferred oil exploration
costs incurred in connection with the company’s participation in
the acquisition and exploration of petroleum concessions are
dependent upon additional discoveries of oil in commercial
quantities and the success of future development thereof.”

Headquartered in Pasig City, Metro Manila, PetroEnergy Resources
Corporation (PERC), formerly Petrotech Consultants, Inc., was
organized on September 29, 1994 to provide specialized technical
services to companies exploring for oil in the Philippines. On
June 25, 1999, the Department of Energy authorized the
assumption by PERC of Philippine oil exploration contracts. The
Ministry of Energy of Gabon, Africa had also been duly notified
of the transfer to PERC of a Production Sharing Contract
covering the Etame discovery block in the Atlantic shelf.

The principal properties of PERC consist of various oil areas
located in the Philippines and in Gabon, Africa. PERC's local
Service Contracts are located in Northwest Palawan, Offshore
Mindoro and East Visayan Sea. PERC derives its revenues from its
Gabon operations. The Philippine contracts are in the
exploration stage and some contracts are being farmed out to
comply with minimum work requirements.


PRIMANILA PLANS: SEC Probe Uncovers Fraudulent Practices
--------------------------------------------------------
The Securities and Exchange Commission issued a cease and desist
order against Primanila Plans Inc. for several violations.

According to the SEC, the firm, which sells pension plans,
closed its business office in Makati City without informing the
public of the reason for the  closure.

In addition, the SEC said that Primanila failed to renew its
dealer's license for  2008 but its bank account, where
planholders pay their contributions, was active as of the last
transaction dated March 6, 2008.

Primanila also failed to deposit the required monthly
contributions to the trust fund in violation of Pre-Need Rule
19.1.

Furthermore, the firm under-declared the total amount of its
collections from January to September 2007 by Php 1,386,884.

Enlisted personnel of the Philippine National Police are among
the firm's planholders, whose premiums were collected via salary
deductions and regularly remitted on a monthly basis.


SEAFRONT RESOURCES: Stockholders' Meeting Slated for June 17
------------------------------------------------------------
Seafront Resources Corporation will convene a meeting of
its stockholders on June 17, 2008, at 1:30 p.m.

All stockholders of record date May 16, 2008, are entitled
to notice and to vote at the meeting.

The meeting will be held at Rooms 527-528 YIAS, Level 5, Podium
4, RCBC Plaza Tower II, Ayala Avenue corner Sen. Gil J. Puyat
Avenue, in Makati City.

Headquartered in Pasig City, Metro Manila, Seafront Resources
Corporation (SPM) was originally incorporated on April 16, 1970
as an oil exploration and production company. On October 18,
1996, the company changed its primary purpose from engaging in
the business of oil exploration and production into a holding
company and to include the oil exploration and production
business as one of its secondary purposes.

SPM has an investment of P100 million with about P30 million
payable upon call of subscription payment to Hermosa Ecozone
Development Corporation (HEDC), a corporation which will develop
certain land areas for mixed use purposes in Bataan. The Hermosa
project has industrial, leisure and commercial centers for
locators, which make it a self-contained community.

Seafront Resources' net income dropped almost 80% to
Php2,813,958 for the year ended December 31, 2007, from
Php10,954,019 in the year ended December 31,  2006.


WESTMONT INVESTMENT: Court of Appeals Revives Fraud Case
--------------------------------------------------------
Rey E. Requejo of  Manila Standard reports that the Court of
Appeals has set aside a Makati court’s ruling in 2006 dismissing
the case against Westmont Investment Corporation for alleged
fraud and misrepresentation.

According to the report, Pearlbank Securities Inc. sued Westmont
claiming that it enticed investors to  place billions of pesos
with the firm but failed to return the capital and accrued
interest.

Manila Standard relates that in 2004,  the Justice Department
recommended that the officers and directors of Westmont be
indicted for syndicated estafa.

The Securities and Exchange Commission disclosed in its Web site
that it issued a cease and desist order against Westmont by
engaging in unlicensed investment contracts, i.e. selling
unregistered securities and selling or buying securities by
unregistered corporation.



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

CHEMTURA CORP: Posts US$21 Mil. Net Loss in 2008 First Quarter
--------------------------------------------------------------
Chemtura Corporation reports a net loss of US$21 million, or
US$0.09 per share, for the first quarter of 2008 and net
earnings on a managed basis of US$23 million, or US$0.10 per
share.

“Our focus in the first quarter has been on execution.
Performance was in line with our expectations and we delivered
on cost reduction.  We did a better job in managing the
continuing inflation in raw material costs and we completed a
number of our portfolio realignment projects,” said Robert L.
Wood, chairman and CEO.

“We saw the benefit of the diversity in our portfolio this
quarter.  Our Crop Protection business delivered a very strong
quarter with operating income up 50% on 10% growth in sales
revenues.  This offset a flat year-on-year performance from our
Performance Specialties business due to the timing of the
recovery of raw material cost increases and higher manufacturing
costs.  Consumer Products was able to increase profitability
despite sales 8% lower than last year.  Operating profit for
Polymer Additives was slightly down from last year but up 20%
from the fourth quarter of 2007.

“With our cost reduction actions taking hold, SGA&R was US$15
million or 13% lower than in the first quarter of 2007 at 11% of
sales compared to 13% a year ago.  Gross profit margins at 20%,
down from 23% a year ago, reflect dramatic impact of raw
material increases over the last year.  While we have not yet
recovered the ground lost last year, our businesses did a great
job in recovering the raw material cost increases in the last
quarter.

“The first quarter saw a flurry of activity related to our
portfolio realignment.  We completed the divestiture of our
oleochemicals business, reducing our exposure to the volatility
in the cost of natural oils and fats, and closed the sale of our
fluorine business.  We acquired our partners’ interests in our
Baxenden urethanes chemicals joint venture and our antimony
joint venture.  Yesterday, we announced an agreement with
Baerlocher for the manufacture of certain heat stabilizer
products used in PVC applications.  The oleochemicals, antimony
and heat stabilizer actions all form part of our continuing
efforts to improve the positioning and performance of our
Polymer Additives business segment.  The Baxenden purchase will
permit us to integrate our global urethane chemicals activities
and leverage our opportunities for growth.

“The second quarter is historically our strongest quarter of the
year and a quarter in which we expect to demonstrate earnings
growth despite the uncertainties of the global economy.  Our
businesses remain focused on tightly managing the impacts of raw
material cost increases and improving manufacturing operations.”

        First Quarter 2008 Business Segment Highlights

Polymer Additives revenues decreased US$2 million compared with
the first quarter of 2007.  The divestiture of the oleochemicals
and organic peroxides businesses reduced revenues by US$9
million and US$5 million, respectively.  Additionally, sales
volume decreased by US$12 million, primarily related to reduced
sales of plastic antioxidants. These reductions were partially
offset by favorable foreign currency translation of US$12
million and higher selling prices of US$12 million.  Operating
profit on a managed basis declined 4% or US$1 million compared
with the first quarter of 2007, primarily due to the net impact
of raw material and energy cost increases, which were partially
offset by the benefit of higher selling prices and improved
product mix.  On a GAAP basis, operating profit declined 68% or
US$17 million and included the impact of US$14 million of
accelerated depreciation of property, plant and equipment and
US$2 million of accelerated recognition of asset retirement
obligations.

Performance Specialties revenues increased 21% or US$44 million
compared with the first quarter of 2007 but operating profit on
a managed basis was unchanged from the first quarter of 2007.  
The revenue increase was primarily due to the acquisition of
Kaufman of US$20 million, increased sales volumes of US$16
million, higher selling prices of US$4 million and favorable
foreign currency translation of US$4 million.  Operating profit
benefited from the Kaufman acquisition, higher selling prices
and improved product mix.  However, these benefits were offset
by increased raw material and energy costs, manufacturing and
freight cost variances and the impact of the stronger Canadian
dollar.  On a GAAP basis, operating profit decreased 4% or US$1
million and included a US$1 million impact from the accelerated
depreciation of property, plant and equipment.

Consumer Products revenues declined 8% or US$9 million compared
with the first quarter of 2007.  The decline in sales is due to
lower seasonal demand from the U.S. mass market channel for
recreational and household products, and lower international
demand than the first quarter of 2007.  These impacts were
partially offset by higher selling prices and the benefit of
favorable foreign exchange translation.  Operating profit rose
150% or US$3 million primarily due to the net benefit of
favorable manufacturing efficiencies.

Crop Protection revenues increased 10% or US$8 million compared
with the first quarter of 2007.  The increase in sales was
primarily from European markets.  Operating income rose 50% or
US$7 million in the first quarter as compared with the same
quarter of 2007 largely from improvements in product mix,
volume, reductions in selling, general and administrative, and
research and development expenses and favorable foreign currency
translation.

Corporate expense for the quarter was US$32 million, which
included US$10 million of amortization expense related to
intangibles and US$7 million relating to the correction of
accounting treatment for an assumed lease that was not
identified at the time of the merger.  Corporate expense in the
first quarter of 2007 was US$23 million, which included US$9
million of amortization expense related to intangibles.

   First Quarter 2008 Significant Transactions and Events

On Jan. 31, 2008, the company completed the sale of its fluorine
chemical business located at the Company's El Dorado, Arkansas
facility.  The fluorine chemical business had revenue of
approximately US$49 million in 2007.  The fluorine chemical
business is reported as a discontinued operation in the
accompanying consolidated financial statements.

On Feb. 29, 2008, the Company completed the sale of its
oleochemicals business. The oleochemicals business had revenue
of approximately US$175 million in 2007.  Proceeds from the
transaction were used to reduce debt.

On Feb. 29, 2008, Chemtura acquired the remaining stock of
Baxenden Chemicals Limited Plc.  Increasing our ownership to
100%.  Chemtura previously held 53.5% of Baxenden’s stock.

On March 12, 2008, the company purchased the remaining 50%
interest in GLCC Laurel, LLC.

On April 30, 2008, the company announced it had entered into an
agreement with Baerlocher for the manufacture of certain heat
stabilizers used in PVC.

As of March 31, 2008 the company employed 5,049 people compared
to 5,144 as of Dec. 31, 2007.  The reduction reflects the net
effect of the divestitures of the oleochemicals and fluorine
businesses and the benefit of restructuring actions offset by
the addition of 284 employees as a result of the acquisitions of
Baxenden and GLCC Laurel.

           First Quarter Results - GAAP

Revenue for the quarter was US$909 million, or 2% above first
quarter 2007 revenue of US$889 million.  The increase in revenue
was attributable to US$24 million from favorable foreign
exchange translation, US$19 million from higher selling prices
and US$20 million from the Kaufman acquisition.  The increase
was partially offset by US$36 million from the impact of the
divestitures of the oleochemicals business, organic peroxides
business and Celogen(R) foaming agents product line and US$7
million impact from product mix.

Gross profit decreased US$18 million compared with the same
period of 2007.  The decrease in gross profit resulted from
US$31 million in higher raw material and energy costs, US$7
million relating to the correction of accounting treatment for
an assumed lease that was not addressed at the time of the
merger and other cost increases of US$4 million, offset by US$19
million from higher selling prices, US$4 million contribution
from the Kaufman acquisition and US$1 million benefit from
favorable manufacturing efficiencies.

Operating profit decreased US$17 million in the first quarter of
2008 as compared with the same quarter last year.  The decrease
in operating profit resulted from a US$18 million decrease in
gross profit discussed above, US$23 million from the loss on
sale of the oleochemicals business and US$6 million increase in
depreciation and amortization primarily due to accelerated
depreciation of property, plant and equipment, offset by a US$15
million decrease in SGA&R, US$12 million decrease in antitrust
costs and a US$3 million decrease in facility closures,
severance and related costs.

Other income, net, of US$14 million for the quarter primarily
reflects non-recurring foreign exchange gains resulting from the
over-hedging of two inter-company loans.

The loss from continuing operations for the first quarter of
2008 was US$21 million, or US$0.09 per share, compared with a
loss of US$20 million, or US$0.08 per share, for the first
quarter of 2007.  The increase in the loss primarily reflects
the US$17 million decrease in operating profit discussed above,
partially offset by a US$12 million increase in other income,
net, US$3 million decrease in interest expense and US$1 million
decrease in income tax expense.

Earnings from discontinued operations were not material for the
first quarter of 2008 and reflect that the fluorine business was
sold on January 31, 2008 and only provided one month of
contribution in the quarter.  Earnings from discontinued
operations for the first quarter of 2007 were US$5 million (net
of US$2 million of tax) and reflecting the contribution from the
EPDM, fluorine and optical monomers businesses that have been
subsequently sold.

In the first quarter of 2007, the gain on sale of discontinued
operations of US$2 million (net of US$1 million of tax)
represents the final contingent earn-out proceeds related to the
sale of the OrganoSilicones business in 2003.

           First Quarter Managed Basis Results

On a managed basis, first quarter 2008 gross profit was US$186
million, or 20% of net sales, as compared with first quarter
2007 managed basis gross profit of US$205 million, or 23% of net
sales.

On a managed basis, first quarter 2008 operating profit was
US$41 million, or 5% of net sales, as compared with first
quarter 2007 managed basis operating profit of US$43 million, or
5% of net sales.

Earnings from continuing operations before income taxes on a
managed basis in 2008 and 2007 exclude pre-tax charges of US$47
million and US$32 million, respectively, primarily related to
accelerated depreciation of property, plant and equipment, loss
on sale of businesses, antitrust costs, facility closures,
severance and related costs and accelerated recognition of asset
retirement obligations.

Chemtura’s managed basis tax rate of 35% represents the expected
effective tax rate for the Company’s core operations.  The
company has chosen to apply this rate to pre-tax income on a
managed basis to better reflect underlying operating
performance.

Earnings from discontinued operations on a managed basis
principally reflect the contribution of the EPDM, optical
monomers and fluorine businesses of US$5 million for the quarter
ended March 31, 2007.

                      Cash Flows - GAAP

Net cash provided by operations in the first quarter of 2008 was
US$16 million as compared with net cash used in operations of
US$31 million in 2007.  The change is primarily due to an
increase in securitized receivables during the three months
ended March 31, 2008 as compared to the three months ended
March 31, 2007.

The company’s accounts receivable securitization programs
totaled US$337 million as of March 31, 2008, US$239 million as
of Dec. 31, 2007 and US$328 million as of March 31, 2007.

At March 31, 2008, the company’s inventory balance of US$707
million was increased by the foreign currency translation impact
of the weakening in the U.S. dollar.  At the same exchange rates
that applied as of December 31, 2007, the value of inventories
as of March 31, 2008 would have been US$695 million.

Capital expenditures for the first quarter of 2008 were US$23
million compared with US$20 million in 2007.  The company
currently anticipates capital expenditures to be US$165 million
in 2008, which includes US$25 million related to the
consolidation of its legacy ERP systems onto a single instance
of SAP.

The company’s total debt as of March 31, 2008 was US$1,092
million as compared with US$1,063 million as of December 31,
2007.  Cash and cash equivalents were US$115 million as of
March 31, 2008 compared to US$77 million as of December 31,
2007.

                   About Chemtura Corporation

Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- manufactures and  
markets specialty chemicals, crop protection products, and pool,
spa and home care products.  The company has subsidiaries in the
United Kingdom, Netherlands, Singapore, Australia, China, Japan,
Chile and Mexico, among others.

                          *     *     *

In December 2007, Moody's Investors Service placed Chemtura
Corporation's corporate family rating of Ba2 under review for
possible downgrade after reports that its "board of directors
has authorized management to consider a wide range of strategic
alternatives available to the company to enhance shareholder
value."

Standard & Poor's Ratings Services similarly placed its 'BB+'
corporate credit and senior unsecured debt ratings of Chemtura
Corp. on CreditWatch with developing implications.


CHEMTURA CORP: Annual Stockholders Meeting Scheduled for May 14
---------------------------------------------------------------
Chemtura Corp. will hold its Annual Meeting of Stockholders at
11:15 a.m. on Wednesday, May 14, 2008, Chief Executive Officer
Robert L. Wood said in a regulatory filing.

The meeting will be held at the company’s headquarters located
at 199 Benson Road in Middlebury, Connecticut.

At the meeting, stockholders will be asked to:

     -- elect six directors for a term of one-year expiring at
        the 2009 Annual Meeting of Stockholders; and

     -- ratify the company’s selection for 2008 of its
        independent registered public accounting firm.

Only stockholders of record at the close of business on
March 18, 2008, will be allowed to vote at the meeting.

                   About Chemtura Corporation
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- manufactures and  
markets specialty chemicals, crop protection products, and pool,
spa and home care products.  The company has subsidiaries in the
United Kingdom, Netherlands, Singapore, Australia, China, Japan,
Chile and Mexico, among others.

                          *     *     *

In December 2007, Moody's Investors Service placed Chemtura
Corporation's corporate family rating of Ba2 under review for
possible downgrade after reports that its "board of directors
has authorized management to consider a wide range of strategic
alternatives available to the company to enhance shareholder
value."

Standard & Poor's Ratings Services similarly placed its 'BB+'
corporate credit and senior unsecured debt ratings of Chemtura
Corp. on CreditWatch with developing implications.


CHEMTURA CORP: Inks Pact with Baerlocher on Heat Stabilizers
------------------------------------------------------------
Chemtura Corporation on Wednesday entered into an agreement with
Baerlocher for the manufacture of certain heat stabilizers used
in PVC.

In addition, Chemtura is selling its organic-based stabilizers
product line for rigid PVC applications to Baerlocher.

“Chemtura has developed a valuable intellectual property estate
in OBS but has been unable to fully leverage the technology in
rigid PVC,” said Anne Noonan, group president for Chemtura
Polymer Additives.  “Chemtura will, however, continue its
efforts in further development of OBS technology, particularly
for flexible PVC applications where we have greater
capabilities.

“This represents another step in the strategic restructuring of
our non-flame-retardant Polymer Additives businesses,” Noonan
said.  “In the last year, we have restructured our antioxidants
business by moving manufacturing from high-cost facilities in
Europe to lower-cost facilities in Asia and the Middle East.  We
also have divested our organic peroxides and oleo chemicals
businesses in order to focus on businesses we are better
positioned to grow.  The agreement with Baerlocher continues
this trend and establishes a sustainable platform for Chemtura
to develop its PVC business.”

                   About Chemtura Corporation

Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- manufactures and  
markets specialty chemicals, crop protection products, and pool,
spa and home care products.  The company has subsidiaries in the
United Kingdom, Netherlands, Singapore, Australia, China, Japan,
Chile and Mexico, among others.

                          *     *     *

In December 2007, Moody's Investors Service placed Chemtura
Corporation's corporate family rating of Ba2 under review for
possible downgrade after reports that its "board of directors
has authorized management to consider a wide range of strategic
alternatives available to the company to enhance shareholder
value."

Standard & Poor's Ratings Services similarly placed its 'BB+'
corporate credit and senior unsecured debt ratings of Chemtura
Corp. on CreditWatch with developing implications.


SCOTTISH RE: S&P Says Ratings Remain on Negative CreditWatch
------------------------------------------------------------
Standard & Poor's Ratings Services its counterparty credit
rating on Scottish Re Group Ltd. (B/Watch Neg/--; Scottish Re)
and its counterparty credit and financial strength ratings on
Scottish Re's operating companies and the ratings on these
companies' dependent unwrapped securitized deals remain on
CreditWatch with negative implications.

"Standard & Poor's placed these ratings on CreditWatch on
Jan. 31, 2008, because of the erosion of Scottish Re's
capitalization due to the declining market value of its subprime
and Alt-A investments, our increased estimate of expected losses
on these assets, and the meaningful risk of losing some reserve
credits secured through Ballantyne Re plc," said Standard &
Poor's credit analyst Robert Hafner.

"Our increasing estimates of cumulative subprime and Alt-A
expected losses based on the composition of such investments, by
vintage and other characteristics negatively affects our view of
Scottish Re's capitalization," said Mr. Hafner. "Scottish Re's
announcement of a letter of intent signed with ING, the only
cedent for the Ballantyne trust, moderates our concern about its
ability to avert loss of significant reserve credits pending
execution of the arrangement."

"We continue to monitor developments and awaits the release of
Scottish Re's delayed financial data, which are needed to better
refine our view of expected cumulative losses and the impact on
the firm's capitalization," Mr. hafner added.  "The ratings will
be lowered if a substantial risk of losing reserve credits
lingers or if our investment loss estimate were to increase
materially.  The ratings will be affirmed if our refined
investment loss estimate is in line with our current
expectations and the risk of losing reserve credits is
ameliorated."

Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist.  Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore.  Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc.  Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.



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

GLOBAL TRADER: Creditors Names Grant Thornton as Administrator
--------------------------------------------------------------
Creditors of Global Trader Europe has appointed Steve Akers at
Grant Thornton LLP as liquidator of the company's assets, Ben
Bland writes for The Telegraph.

Mr. Akers will coordinate with GTE administrators Stephen Cork
and Joanne Milner at Smith & Williamson Ltd. after the
administration is converted to liquidation within this month,
The Telegraph relates.

During the meeting, a representative of GTE parent New World
Trader asked for a seat on the five-man creditors' committee,
The Telegraph reports.  The administrators, however, refused the
request.

                      Global Trader Europe

Global Trader Europe Ltd. offers a Spread Trading and a Contract
for Difference execution and advisory service to both
institutional and private clients investing in international and
domestic markets.  Global Trader was founded in Europe in 2000.  
Since then it has grown its global reach into South Africa,
North America and Asia, with a physical presence in the United
Kingdom, South Africa, Thailand, Canada and Russia.

As previously reported in the TCR-Europe, Global Trader
experienced a regulatory capital deficit as a result of a single
client margin call default.  GT Europe applied, at the close of
business to the Financial Services Authority in the United
Kingdom for a Variation of Permission - the official method by
which companies change the terms of their authorization,
limiting principal activities to closing existing trades.

To ensure that the various alternatives can be evaluated within
an orderly operational structure and regulated financial
exposure, GT Europe, on Feb. 15, 2008, applied, with the
permission of the FSA, to be managed under Administration.

                         *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Rousel Elaine C. Tumanda, Valerie Udtuhan, Marie
Therese V. Profetana, Frauline S. Abangan, and Peter A. Chapman,
Editors.

Copyright 2008.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
   
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.





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