TCRAP_Public/080612.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Thursday, June 12, 2008, Vol. 11, No. 116

                            Headlines

A U S T R A L I A

A & E FIREWORKS: Declares Dividend for Creditors
ACN 009 757 466: Liquidator Gives Wind-Up Report
ACN 009 998 541: Liquidator Gives Wind-Up Report
ACN 009 569 399: Liquidator Gives Wind-Up Report
ACN 000 785 802: Liquidator Gives Wind-Up Report

ACN 000 909 277: Liquidator Gives Wind-Up Report
AGRA AGRICULTURAL: Liquidator Presents Wind-Up Report
ALLENS MANAGEMENT: Liquidator Presents Wind-Up Report
CENTRO PROPERTIES: Unit Completes AU$331 Mil. Debt Refinancing
DOWCON PTY: Liquidator Presents Wind-Up Report

HARTZ GROUP: Loses Injunction Bid, Sale of Assets to Go On
JE FLETCHER: Liquidator Presents Wind-Up Report
KRISPY KREME: Reports $4 Mil. Net Income in Quarter Ended May 4
MEWEDA PTY:Commences Liquidation Proceedings
N.B.S. INVESTMENTS: Appoints Sneddon as Liquidator

NOEL SMITH (YASS): Placed Under Voluntary Liquidation
NORTH WESTERN: Liquidator Presents Wind-Up Report
TRICOM EQUITIES: Saxo Bank Cautious About Loan Book Issue


C H I N A

CITIC GROUP: Seeks to Privatize HK Unit for US$1.57 Billion
DONGFENG ELECTRON: To Infuse US$4.3MM in Shanghai Electric Firm
INNER MONGOLIA: To Merge Unit With Six Companies
INNER MONGOLIA EERDUOSI: Paying Dividends to Shareholders
PETROCHINA CO: Proposes RMB60 Billion Bond Issue

XINHUA: Noteholders OK Sr. Notes Purchase From US$50M Stock Sale


H O N G  K O N G

BREAN DISTRIBUTOR: Creditors' Proofs of Debt Due June 27
CENTRAL FINANCE: Members & Creditors to Meet on July 8
COSMO FIRE: Commences Liquidation Proceedings
ENCHANTING INVESTMENT: Creditors Meeting Fixed for July 7
HELPING METAL: Liquidators Quit Post

INTEGRITAS MANAGMENT: Liquidator Quits Post
MICKY WEATHERWEAR: Creditors' Proofs of Debt Due July 2
MASTERWELL WORLDWIDE: Creditors' Proofs of Debt Due July 11
REDWOOD INT'L: Commences Liquidation Proceedings
YETO ACCOUNTING: Creditors Meeting Fixed for July 4


I N D I A

SPICEJET: To Cut Flights, FY 2008 Net Loss Seen
* INDIA: Soaring Oil Prices Cue RBI's Special Market Operations
* INDIA: RBI Increases Repo Rate by 25bp to 8.00%


I N D O N E S I A

BANK RAKYAT: To Offer IDR3 Tril. Loans to Support PT Telkom
MEDCO ENERGI: Signs Pact Selling Apexindo to Mitra Rajasa
PERUSAHAAN LISTRIK: Monthly Income Up by IDR260 Billion
* INDONESIA: Moody's to Assign Ba3 Rating on Upcoming Bond


J A P A N

AMPEX CORP: Files Third Amended Disclosure Statement & Plan
FORD MOTOR: Trancinda Buys 20MM Shares of Over 1 Bil. Tendered
NIS GROUP: JCR Withdraws BB/Negative Senior Debts Rating
NISSIN SERVICER: JCR Withdraws BB/Negative Senior Debts Rating
KOBE STEEL: Begins Construction of JPY4-Billion Testing Facility

KOBE: Unit to Raise Production Capacity of Three Joint Ventures
SANYO ELECTRIC: Seeks to Expand Market Share in North America


K O R E A

* KOREA: April 2008 Interests on Savings Deposits Rose 0.18%p


M A L A Y S I A

BSA INTERNATIONAL: Unable to Pay Interest on Loan Obligations
BSA INTERNATIONAL: Incurs MYR12.88MM Net Loss in 1st Qtr. 2008
MEMS TECHNOLOGY: Bursa Rejects Application for Waiver
WONDERFUL WIRE: Total Default Reaches MYR64.86 Mil. as of May 31


N E W  Z E A L A N D

CHRISCOTT LTD: Commences Liquidation Proceedings
HATUMA FOODS: Liquidators Appointed
OTARA SECONDHAND: Court Sets July 30 Liquidation Hearing
PARKSTONE NURSING: Commences Liquidation Proceedings
PERCY DAVIS: Liquidators Fix June 19 as Claims Bar Date

PROPERTY FUNDING: Claims Filing Deadline is June 19
SEPI MANAGEMENT: Court Sets June 16 Liquidation Hearing
* NEW ZEALAND: Export Price Index Up 4.5% in March 2008 Qtr.


P H I L I P P I N E S

PHILIPPINE NATIONAL: To Offer PHP3BB Lower Tier 2 Notes in Feb.


S I N G A P O R E

AXS-ONE INC: March 31 Balance Sheet Upside-Down by US$10,622,000


                         - - - - -


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

A & E FIREWORKS: Declares Dividend for Creditors
------------------------------------------------
A & E Fireworks Pty Limited, which is in liquidation,
declared its dividend for its creditors.

Only creditors who were able to file their proofs of debt by
May 21, 2008, were included in the company's dividend
distribution.

The company's liquidator is:

          E. M. Senatore
          SBR Insolvency + Reconstruction
          Level 7, 28 University Avenue
          Canberra ACT 2601
          Australia


ACN 009 757 466: Liquidator Gives Wind-Up Report
------------------------------------------------
At the final meeting of the members of ACN 009 757 466 Pty Ltd
held May 29, 2008, Allan Blundell, 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:

          Allan Blundell
          Piers Property Group
          PO Box 3007
          Tweed Heads South DC NSW 2486
          Australia


ACN 009 998 541: Liquidator Gives Wind-Up Report
------------------------------------------------
At the final meeting of the members of ACN 000 998 541 Pty Ltd
held May 29, 2008, Allan Blundell, 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:

          Allan Blundell
          Piers Property Group
          PO Box 3007
          Tweed Heads South DC NSW 2486
          Australia


ACN 009 569 399: Liquidator Gives Wind-Up Report
------------------------------------------------
At the final meeting of the members of ACN 009 569 399 Pty Ltd
held May 29, 2008, Allan Blundell, 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:

          Allan Blundell
          Piers Property Group
          PO Box 3007
          Tweed Heads South DC NSW 2486
          Australia


ACN 000 785 802: Liquidator Gives Wind-Up Report
------------------------------------------------
At the final meeting of the members of ACN 000 785 802 Pty Ltd
held May 29, 2008, Allan Blundell, 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:

          Allan Blundell
          Piers Property Group
          PO Box 3007
          Tweed Heads South DC NSW 2486
          Australia


ACN 000 909 277: Liquidator Gives Wind-Up Report
------------------------------------------------
At the final meeting of the members of ACN 000 909 277 Pty Ltd
held May 29, 2008, Allan Blundell, 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:

          Allan Blundell
          Piers Property Group
          PO Box 3007
          Tweed Heads South DC NSW 2486
          Australia


AGRA AGRICULTURAL: Liquidator Presents Wind-Up Report
-----------------------------------------------------
Agra Agricultural Holdings Pty. Ltd.'s estate liquidator, met
with the company's members on May 29, 2008, and provided them
with property disposal and winding-up reports.

The liquidator can be reached at:

          H. J. Kazar
          Sims Partners
          6 Lonsdale Street
          Braddon ACT 2612
          Australia


ALLENS MANAGEMENT: Liquidator Presents Wind-Up Report
-----------------------------------------------------
At the final meeting of the members and creditors of Allens
Management Australia Pty Ltd held May 29, 2008, Frank Lo Pilato,
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:

          Frank Lo Pilato
          RSM Bird Cameron Partners
          Level 1, 103-105 Northbourne Avenue
          Turner ACT 2612
          Australia
          Telephone: (02) 6247 5988


CENTRO PROPERTIES: Unit Completes AU$331 Mil. Debt Refinancing
--------------------------------------------------------------
Centro Properties' Centro MCS has completed an agreement to
refinance a AU$331 million debt facility for eight syndicates.

The facility has been refinanced for two years and will mature
in April 2010.  Additional funding for forecast operational
capital expenditure during the loan term has also been approved.

The eight syndicates involved are Centro MCS 2, 3, 4, 5, 6, 8,
11 & 12.
        
                    About Centro Properties

Centro Properties Group -- http://www.centro.com.au/--  is a  
retail investment organisation specialising in the ownership,
management and development of retail shopping centres.  Centro
manages both listed and unlisted retail property and has an
extensive portfolio of shopping centres across Australia, New
Zealand and the United States.  Centro has funds under
management of $24.9 billion.

Centro owes its creditors as much as AU$6.6 billion and its
deadline to repay these debts has been extended four times since
December 2007, when the company's market value plunged.  The
recent deadline extension given to the Group is December 15,
2008.

                         *     *     *

The Troubled Company Reporter-Asia Pacific reported on Jan. 4,
2008, that Standard & Poor's Ratings Services lowered its issuer
credit, senior-unsecured debt and preferred stock ratings to
'CCC+' with negative implications reflecting the potential of
the group's assets to be sold in softening market conditions,
particularly in the U.S.


DOWCON PTY: Liquidator Presents Wind-Up Report
----------------------------------------------
At the final meeting of the members and creditors of Dowcon Pty
Ltd held May 29, 2008, H. J. Kazar, 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:

          H. J. Kazar
          Sims Partners
          6 Lonsdale Street
          Braddon ACT 2612
          Australia


HARTZ GROUP: Loses Injunction Bid, Sale of Assets to Go On
----------------------------------------------------------
Hartz Group's Mineral Water business in Tasmania is up for sale
this Friday to an interstate buyer who cannot be named because
of a confidentiality agreement, Mark Worley of Mercury News
reports.

Hartz managing controller Rick Leighton told Mercury News that
contracts had been drawn up and were being finalised with the
buyer who wants to keep the business in Tasmania.

In April, Mercury News relates, investment firm Business
Expansion Capital Pty Ltd appointed controllers to manage Hartz,
less than seven months after it provided a AU$600,000 loan to
the company.  BE managing controllers, who claim Hartz broke the
terms of the loan agreement, are selling the company to recoup
their loan and a risk fee of at least AU$600,000, the report
says.

Meanwhile, ABC News says the receiver for Hartz company Mountain
Maid, Hall Chadwick, recently called for expressions of interest
in the Hartz trademarks, which BE Capital is also pursuing.  The
receiver is believed to have finalised the sale, says the
report.

According to Mercury News, Hartz owner Stephen Powell, in a move
to save his business, sought an injunction order from the
Supreme Court to stop the sale of his business going ahead, but
lost the ruling to BE Capital at a hearing held last week.  A
separate trial, questioning the merits of BE's controllership of
the company, has been partly heard but it is not known when it
will resume, Mercury News says.

In yet another move to revive its business, Hartz recently
appointed Allan Branch as its new chief executive officer.

Mr. Branch told Mercury News that his tenure as CEO would be
determined by the outcome of the sale process and the court
trial.

                   About Hartz Group

Based in Prince of Wales Bay, Australia, Hartz Group --
http://www.hartz.com.au/-- was initially formed as a  
manufacturer of chilled juices.  It has developed its
proprietary brands to include long-life fruit juices and mineral
water.


JE FLETCHER: Liquidator Presents Wind-Up Report
-----------------------------------------------
B. R. Cook, JE Fletcher Pty. Ltd.'s estate liquidators, met with
the company's members on June 6, 2008, and provided them with
property disposal and winding-up reports.


KRISPY KREME: Reports $4 Mil. Net Income in Quarter Ended May 4
---------------------------------------------------------------
Krispy Kreme Doughnuts Inc., in a press statement, reported net
income of $4.0 million, for the first quarter ended May 4, 2008,
compared to a net loss of $7.4 million in the first quarter last
year.

According to the Birmingham Business Journal, this is Krispy
Kreme's first quarterly gain in three years.  

Dow Jones says that shares of Krispy Kreme shot up 7.6% in early
trading Monday as the company disclosed its fiscal first-quarter
earnings of 6 cents a share, up from a loss of 12 cents a share
at the same time last year.

The company stated in a statement that it was able to report a
profit, in part, because the loss in 2008's first quarter was
largely due to a $9.6 million charge related to the refinancing
of long-term debt.  In the 2009 quarter, the company did not
report any refinancing charge.

"We are pleased to report improved bottom line results in the
first quarter of fiscal 2009 compared to the first quarter of
last year," Jim Morgan, chairman, president and chief executive
officer, said.  "Much work remains to be done to achieve the
consistent profitability and sustainable growth we envision.  

"While we continue to face many challenges, I believe more than
ever there also are many opportunities ahead of us," Mr. Morgan
added.  "Although our near term results may be uneven, our
employees are working hard to implement the further improvements
necessary for us to be successful for the long term."

Among the other factors that affected the company's results for
the first quarter of fiscal 2009 were a $930,000 non-cash gain
on the disposal of equity interests in two franchisees and the
related release of the company's guarantees of certain debt and
leases; well as a net credit in impairment and lease termination
costs of $645,000 resulting from changes in estimated sublease
rentals on a closed store and the realization of proceeds on the
assignment of another closed store lease.

As of May 4, 2008, the company's consolidated balance sheet
reflects cash of approximately $29.2 million and debt of
approximately $75.7 million.

During the first quarter of fiscal 2009, 28 new Krispy Kreme
stores, comprised of four factory stores and 24 satellites, were
opened systemwide, and seven stores, comprised of six factory
stores and one satellite, were closed systemwide.

This brings the total number of stores systemwide at quarter end
to 470, consisting of 289 factory stores and 181 satellites.  
The net increase of 21 stores in the quarter reflects a net
increase of 27 international stores and a net decrease of six
domestic stores.  Approximately 75% of total stores are operated
by franchisees, and half are located outside the United States.

                      About Krispy Kreme

Headquartered in Winston-Salem, North Carolina, Krispy Kreme
Doughnuts Inc. (NYSE: KKD) -- http://www.KrispyKreme.com/--
is a retailer and wholesaler of doughnuts.  The company's
principal business, which began in 1937, is owning and
franchising Krispy Kreme doughnut stores where over 20 varieties
of doughnuts are made, sold and distributed and where a broad
array of coffees and other beverages are offered.

As of Feb. 3, 2008, there were 449 Krispy Kreme stores operated
systemwide in 37 U.S. states and in the District of Columbia,
Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico,
the Philippines, Qatar, Saudi Arabia, South Korea, the United
Arab Emirates and the United Kingdom, of which 105 were owned by
the company and 344 were owned by franchisees.  Of the 449 total
stores, there were 295 factory stores and 154 satellites.  Of
the Krispy Kreme factory stores and satellites in operation at
Feb. 3, 2008, 210 and 35, respectively, were located in the
United States.

                         *     *     *

Standard & Poor's placed Krispy Kreme Doughnuts Inc.'s long term
foreign and local issuer credit ratings at 'B-' in September
2007.  The ratings still hold to date with a negative outlook.


MEWEDA PTY:Commences Liquidation Proceedings
--------------------------------------------
Meweda Pty Limited's members agreed on April 14, 2008, to
voluntarily liquidate the company's business.  Graham P. Brown
was appointed to facilitate the sale of its assets.

The liquidator can be reached at:

          Graham P. Brown
          216 Victoria Street
          Taree NSW 2430
          Australia


N.B.S. INVESTMENTS: Appoints Sneddon as Liquidator
--------------------------------------------------
N.B.S. Investments Pty Ltd.'s members agreed on April 15, 2008,
to voluntarily liquidate the company's business.  Graham P.
Brown was appointed to facilitate the sale of its assets.

The liquidator can be reached at:

          Kenneth John Sneddon
          Chartered Accountant
          Office 1, 11 Swan Street
          Hamilton NSW 2303
          Australia


NOEL SMITH (YASS): Placed Under Voluntary Liquidation
-----------------------------------------------------
Noel Smith (Yass) Pty Ltd.'s members agreed on April 16, 2008,
to voluntarily liquidate the company's business.  Graham P.
Brown was appointed to facilitate the sale of its assets.

The liquidator can be reached at:

          Cameron Stuart Smith
          Ann Smith
          61 Reservoir Road
          Crookwell NSW 2583
          Australia


NORTH WESTERN: Liquidator Presents Wind-Up Report
-------------------------------------------------
Keiran William Hutchison and John Raymond Gibbons, North Western
Resources Pty. Ltd.'s estate liquidators, met with the company's
members on May 29, 2008, and provided them with property
disposal and winding-up reports.

The liquidators can be reached at:

          Keiran William Hutchison
          John Raymond Gibbons
          Ernst & Young
          Level 37, 680 George Street
          Sydney NSW 2000
          Australia
          Telephone: (02) 9248 5555


TRICOM EQUITIES: Saxo Bank Cautious About Loan Book Issue
---------------------------------------------------------
Saxo Bank has confirmed its interest in Tricom Group following
the completion of the first phase of the group's due diligence,
the Australian reports citing Saxo Bank's head of Asia Kevin
Ashby.

According to the report, Saxo unveiled plans in May 2008 to
spend AU$20 million for a 35 per cent stake in Tricom but said
it had "ring-fenced" itself against past problems and potential
litigation associated with the Sydney stockbroker.

Particularly, Saxo expects resolution of the issues relating to
some existing investors and the winding down of the securities
loan book, the Australian says.

As reported in the Troubled Company Reporter-Asia Pacific on
April 30, 2008, the Australian Securities Exchange conducted
an investigation in February 2008 about securities and margin
lending at Tricom.

Commenting on the probe, Tricom Managing Director Lance
Rosenberg said in February that the company is "working in 100%
partnership with the ASX to ensure restoration of confidence in
Tricom."

As part of ASX’s condition with regards to the probe, Tricom
appointed Pricewaterhouse Coopers to conduct an independent
review of Tricom’s operating and systems controls.

In addition, Tricom reduced its securities lending book  from
approximately AU$2.4 billion in June 2007 to AU$340 million at
close of business on March 17 , 2008.

The Australian says Saxo's plans for Tricom do not include
a securities lending business.

The brokerage firm is staggering under similar debt burdens
which forced Opes Prime Stockbroking Ltd. and Lift Capital Ltd.
into receivership, said Laura Santini of The Wall Street
Journal.

According to WSJ, there is a loophole in Australia's regulations
that allows brokers to put up customers' shares as loan
collateral, without notifying the customers.

Tricom termed the practice as securities lending book in which
Tricom borrows from counterparties on behalf of clients to fund
loans. The borrowing is secured by shares, and remains covered
by a significant margin. As the market has corrected, Tricom
said lenders have become more conservative about loan to value
ratios, and values have simultaneously dropped.  This prompted
Tricom to commence an orderly sell down in June 2007.

                           Merger Deal

In a media release dated February 19, 2008, Tricom disclosed
that Bell Financial Group agreed to acquire 100% of Tricom
Group, subject to a number of conditions, including satisfactory
completion of due diligence prior to March 7, 2008.

However, in March 2008, Tricom confirmed that discussions
regarding a potential acquisition by Bell Financial Group have
ceased after the March 7, 2008 exclusivity period ended.

                         About Saxo Bank

Saxo Bank is a global investment bank specialising in online
trading in the international capital markets.  Saxo Bank does
business with partners and clients in over 170 countries.  Saxo
Bank currently employs more than 1,300 employees from 72
different countries.  Saxo Bank is headquartered in Copenhagen
with offices in London, Geneva, Zurich, Singapore and Marbella.  
It also runs a representative office in Beijing and an IT
development centre in St. Petersburg.

                    About Tricom Equities Limited

Tricom Equities Limited -- http://www.tricom.com.au/-- is an
Australian owned global Investment, Advisory and Trading House.
Formed in Sydney, Australia in 1994 as a specialist futures
broking firm, Tricom now employs over 230 people in 14 offices.
Internationally, the firm is located in New Zealand, China, Hong
Kong and Switzerland.



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

CITIC GROUP: Seeks to Privatize HK Unit for US$1.57 Billion
-----------------------------------------------------------
Citic Group proposed to privatize its Hong Kong-based unit Citic
International Financial Holdings Limited, various reports say.

Chia-Peck Wong of Bloomberg News reports that Citic Group
offered Citic International's minority stockholders one China
Citic Bank Corp. share plus HK$1.46 for every share they own,
potentially valuing the privatization at HK$12.3 billion
(US$1.57 billion).

As reported by the Troubled Company Reporter - Asia Pacific on
May 9, 2008, Banco Bilbao Vizcaya Argentaria SA. will double its
stake in Citic Group before July.   Banco Bilbao, Bloomberg
relates, will spend EUR800 million (US$1.24 billion) to acquire
about 30% in Citic International and 10.1% in Citic Bank, once
the privatization is completed.

According to Bloomberg, about HK$5.1 billion of the funds raised
will be used to pay loans of Citic Ka Wah Bank, Citic
International's Hong Kong banking unit.  Another HK$3 billion
will be used to fund Citic Ka Wah Bank's expansion, the report
says.

Donny Kwok of Reuters reports that based on the closing price of
HK$5.44 per China Citic Bank share on June 2, the offer
represented a 21% premium over the closing price of HK$5.70 per
Citic International.  The offer would involve the issue of some
1.75 billion China Citic Bank H shares and HK$2.6 billion cash,
Reuters relates.

Citic Group owns 62.3% of Citic Bank and 55.2% of Citic
International, while Citic International in turn owns 15% of
Citic Bank.

Bloomberg says the shares owned by Citic Group and BBVA are
excluded from the privatization.

Lehman Brothers Holdings Inc. is advising Citic Group on the
privatization.

                     About CITIC Group

State-owned conglomerate CITIC Group --
http://www.citic.com/wps/portal/-- oversees the government's     
international investments, as well as some domestic ones.  Its
approximately 45 subsidiaries on four different continents
include financial institutions -- more than 80% of its assets --
industrial concerns (satellite telecommunications, energy,
manufacturing), and service companies (construction,
advertising).  Holdings include stakes in CITIC Securities and
CITIC International Financial Holdings.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported that on
Feb. 13, 2007, Standard & Poor's Ratings Services removed the
BB+ long-term and B short-term foreign currency counterparty
credit rating on CITIC Group from CreditWatch.  The outlook on
the ratings is developing.  At the same time, Standard & Poor's
also removed the BB+ foreign currency issue rating on the
group's senior unsecured debt from CreditWatch.


DONGFENG ELECTRON: To Infuse US$4.3MM in Shanghai Electric Firm
---------------------------------------------------------------
Dongfeng Electronic Technology Co. Limited will infuse
US$4,299,500 in a Shanghai-based electric company, Reuters
reports.

The report relates that Johnson Controls Automotive Systems
Group, which primarily provides vehicle interiors products to
automakers, is also investing US$7,700,500 in the same company.

Reuters did not disclose the name of the electrical company.

According to the report, after the capital injection, the
registered capital of the electric company will increase from
US$12 million to US$17 million, in which Dongfeng Electronic and
Johnson Controls will contribute US$6.8 million and US$10.2
million, respectively.

Dongfeng Electronic's shareholding in the electric company will
decrease from 50.01% to 40%, the report says.

                   About Dongfeng Electronic

Based in Shanghai, Dongfeng Electronic Technology Co., Ltd. --
http://www.detc.com.cn/-- is principally engaged in the   
manufacture and sale of automobiles and automobile parts and
components.  The company offers automobiles, instrument sets,
sensors, flexible shafts, gasoline supply systems, braking
products, die casting products, automobile ornaments, automobile
global position system (GPS) navigation parts, automobile
remote-controllers and other accessories for motorcycles,
passenger cars and trucks.

                         *     *     *

As of June 11, 2008, the company still holds Xinhua Far East
China Ratings' BB- LC Long-Term Issuer Credit Rating.


INNER MONGOLIA: To Merge Unit With Six Companies
------------------------------------------------
Inner Mongolia Eerduosi Cashmere Products Co. Ltd. plans to
merge its 92% owned subsidiary with six companies, Reuters
reports.

Reuters did not disclose the names of the six companies  
involved in the transaction.

The report relates that two of the six companies is 100% jointly
owned by Inner Mongolia Eerduos and its unit's 8% shareholder.

Reuters says that under Inner Mongolia's merger plan, the
company will:

-- purchase a 49% stake in an Inner Mongolia-based cashmere
   product company from an American company for US$118,700;

-- pay CNY11,499,000 to purchase the 49% stake in another Inner
   Mongolia-based clothing company from a Hong Kong-based trade
   company;

-- acquire a 19% stake in an Inner Mongolia-based textile
   company from a Japanese company for US$380,000; and

-- Pay CNY1,815,700 to purchase the 11% stake in the same
   Japanese company from another Japanese textile company.

After the merger and transaction, the new unit will continue to
exist and other six companies will be liquidated, the report
says.

           About Inner Mongolia Eerduosi Cashmere

Based in Dongsheng, Inner Mongolia Meng Autonomous Region, the
People's Republic of China, Inner Mongolia Eerduosi Cashmere
Products Co., Ltd. is principally engaged in the manufacture and
sale of cashmere products and de-haired cashmere, cashmere yarn,
cashmere sweaters, cashmere coats, silk/cashmere blended
products, cashmere fashions, Nano materials, electrically
conductive fibers, healthcare fibers and other products.

                          *     *     *

As of June 11, 2008, the company stillholds Xinhua Far East
China Ratings's BB+ issuer credit rating.


INNER MONGOLIA EERDUOSI: Paying Dividends to Shareholders
---------------------------------------------------------
Inner Mongolia Eerduosi Cashmere Products Co. Ltd. paid on
June 10, 2008, a dividend of RMB1.5 (before tax) to holders of A
shares of record on June 3, 2008, Reuters reports.

The report relates that the company will also be paying a
dividend of US$0.021496 on June 17, to holders of B shares of
record on June 6, 2008, for every 10 shares they hold.

Based in Dongsheng, Inner Mongolia Meng Autonomous Region, the
People's Republic of China, Inner Mongolia Eerduosi Cashmere
Products Co., Ltd. is principally engaged in the manufacture and
sale of cashmere products and de-haired cashmere, cashmere yarn,
cashmere sweaters, cashmere coats, silk/cashmere blended
products, cashmere fashions, Nano materials, electrically
conductive fibers, healthcare fibers and other products.

                          *     *     *

As of June 11, 2008, the company stillholds Xinhua Far East
China Ratings's BB+ issuer credit rating.


PETROCHINA CO: Proposes RMB60 Billion Bond Issue
------------------------------------------------
PetroChina Company Limited's Board resolved to seek
shareholders' approval for the proposed issue of the
Domestic Corporate Bonds in the PRC with an aggregate principal
amount of not more than RMB60 billion in one or more tranches at
the EGM to be held on 31 July 2008.

The Wall Street Journal said today that PetroChina wants to cut
its financing costs as it faces huge refining losses due to
soaring oil prices through the bond issue.

              Proposed Issue of Bonds in PRC

* Background

To satisfy the operational needs of the company, further improve
its debt structure, reduce the financing costs and supplement
the working capital of the company, on June 10,2008, the Board
resolved to submit to Shareholders for consideration and
approval the proposed issue of the Domestic Corporate Bonds with
an aggregate principal amount of not more than CNY60 billion in
one or more tranches at the extraordinary general meeting to be
held on July 31,2008.

According to the Company Law of the PRC and the Articles of
Association, the Bond Issue is subject to the approval of the
Shareholders (including holders of H Shares and A Shares).

After Shareholders' approval is obtained, the Bond Issue will
still require final approval from the CSRC.  The timing of the
Bond Issue will depend on the timing of the approval and the
conditions of the bond market of the PRC.

* Proposed Issue of Domestic Corporate Bonds

The proposed arrangements for the Bond Issue are:

(1) Issuer:                      PetroChina Company Limited

(2) Place of Issue:              People's Republic of China

(3) Size of the Bond Issue:      The aggregate principal amount
                                 of the Domestic Corporate Bonds
                                 shall not be more than CNY60
                                 billion.
(4) Arrangement for
    the Bond Issue to the
    shareholders of A Shares:    Subject to the granting of  
                                 authorization to the Board by
                                 the Shareholders, the specific
                                 terms and conditions of the
                                 Bond Issue (including whether             
                                 such issuance will be made by
                                 way of placing and the
                                 proportion of placing) will be
                                 determined by the Board after
                                 taking into account of the
                                 market conditions prior to the
                                 issuance and the specific terms
                                 and conditions of the Bond
                                 Issue.
(5) Duration of the
    Domestic Corporate Bonds:    The duration of the Domestic
                                 Corporate Bonds shall be not
                                 more than 15 years.  The
                                 Domestic Corporate Bonds may be  
                                 issued under a single category
                                 or mixed categories with
                                 different maturities.  Subject
                                 to the granting of  
                                 authorization to the Board by
                                 the Shareholders, the maturity
                                 and the size of each category
                                 of the Domestic Corporate Bonds
                                 shall be determined by the
                                 Board in accordance with the
                                 relevant requirements and the
                                 market conditions.

(6) Use of proceeds:             The proceeds of the Bond Issue
                                 shall be used to satisfy the
                                 demand for mid-term and long-
                                 term capital requirements of
                                 the Company, further improve
                                 its debt structure, supplement
                                 the working capital of the
                                 Company, and/or investment in
                                 projects such as the Second
                                 West-East Gas Pipeline project.
                                 Subject to the granting of
                                 authorization to the Board by
                                 the Shareholders, the specific
                                 use of proceeds shall be
                                 determined by the Board in
                                 accordance with the capital
                                 needs of the Company.

(7) Listing of the Domestic
    Corporate Bonds:             Subject to the satisfaction of
                                 the listing requirements,
                                 application for listing of the
                                 Domestic Corporate Bonds on the
                                 domestic stock exchange(s) as
                                 approved by the relevant PRC
                                 regulatory authorities shall be
                                 made.

(8) Term of validity of
    the resolution:              The authority granted to the
                                 Board by way of special
                                 resolution passed at the
                                 shareholders meeting with
                                 regard to the proposed issue of
                                 the Domestic Corporate Bonds
                                 will expire two years after the
                                 date of the passing of such
                                 resolution.

* Granting of Board Authorization to Deal w/ Bond Issue Matters

To ensure the smooth issue of the proposed Domestic Corporate
Bonds and according to the relevant provision of the "Tentative
Methods on Issue of Corporate Bonds" promulgated by the CSRC, it
is proposed that the Board be authorized by the Shareholders
generally and unconditionally and when items (a) to (f) below
have been approved and authorized by the Shareholders, the Board
shall further authorize the Chief Financial Officer of the
Company, Mr. Zhou Mingchun, taking in account the specific needs
of the Company and other market conditions, to do:

(a) to confirm the category, specific terms, conditions and
    other matters of the Bond Issue, including but not limited
    to all matters related to the Bond Issue, such as the issue
    size, actual sum, maturity, issue prices, coupon rates or
    method of determination, timing of issuance, whether to
    issue in tranches and the number of tranches, whether any
    terms for repurchase and redemption will be in place, rating
    arrangements, security matters, duration of repayment of the
    principal and the interests, use of proceeds as approved by
    the shareholders' meeting, specific placing arrangements
    etc;

(b) to perform all necessary and ancillary actions with respect
    to the Bond Issue, including but not limited to the
    appointment of intermediaries, to determine underwriting
    arrangements and submit applications to the relevant
    regulatory authorities for approval of the Bond Issue, to
    engage entrusted manager for the Bond Issue, to execute the
    agreement for entrusted management and formulate rules for
    the meetings of bondholders, to deal with other issues
    related with the issuance and the turnover;

(c) to take all necessary actions in relation to the Bond Issue,
    including but not limited to execute all necessary
    contracts, agreements and documents and make disclosure of
    relevant information pursuant to applicable regulatory
    requirements, and to approve, confirm and ratify such
    actions and steps undertaken by the Board or any authorized
    director in relation to the Bond Issue;

(d) to make corresponding changes to the specific plan of the
    Bond Issue based on opinions of the regulatory authorities
    when there is any change to the policies on the issuance of   
    bonds or market conditions, save for issues which are
    subject to further approval at shareholders'meeting as
    required by the relevant laws, regulations and Articles of
    Association;

(e) to deal with any matters relating to the Bond Issue and the
    listing of the Domestic Corporate Bonds; and

(f) if the Company expects it may fail to pay the principal and
    coupon interests of the Domestic Corporate Bonds on schedule
    or fails to pay the principal and coupon interests on
    a due date during the subsistence of the Domestic Corporate
    Bonds, to authorize the Board to determine not to distribute
    dividends to the Shareholders in accordance with relevant
    protection measures for repayment of debts as required under
    the relevant laws and regulations.

                 Extraordinary General Meeting

An Extraordinary General Meeting will be held at Beijing
Oriental Bay International Hotel, 26 Anwai Xibinhe Road,
Dongcheng District, Beijing, the PRC on Thursday, July 31, 2008,
at 9:00 a.m. to approve the proposed issue of the Domestic
Corporate Bonds by special resolution.

A circular containing details of the proposed issue of the
Domestic Corporate Bonds and notice to shareholders convening
the Extraordinary General Meeting will be dispatched to
Shareholders as soon as practicable.

                   About PetroChina Company

PetroChina Company Limited (PetroChina)--
http://www.petrochina.com.cn -- is a producer of crude oil and  
natural gas in China.  The company is engaged in a range of
petroleum and natural gas related activities, including the
exploration, development, production and sale of crude oil and
natural gas; the refining, transportation, storage and marketing
of crude oil and petroleum products; the production and
marketing of basic petrochemical products, derivative chemical
products and other chemical products, and the transmission and
storage of crude oil, refined products and natural gas, as well
as the sale of natural gas.  Substantially all of its crude oil
and natural gas reserves and production-related assets are
located in China. During the year ended December 31, 2007,
PetroChina completed the acquisition of the remaining interest
in Jinzhou Petrochemical Co., Ltd. (Jinzhou Petrochemical),
Liaohe Jinma Oilfield Co., Ltd. (Liaohe Jinma) and Jilin
Chemical Industrial Company Limited (Jilin Chemical).


XINHUA: Noteholders OK Sr. Notes Purchase From US$50M Stock Sale
----------------------------------------------------------------
Xinhua Finance disclosed that holders representing more than a
majority in aggregate principal amount of its outstanding
US$100,000,000-10% Senior Guaranteed Notes due 2011, consented
to the proposed amendment to the indenture pursuant to which the
Senior Notes were issued and as proposed in the consent
solicitation statement that was sent to the holders of the
Senior Notes on May 26, 2008.

In connection with the consent solicitation, Xinhua Finance had
announced on May 26, 2008, that subject to the delivery, on or
before June 9, 2008, of the consents required for implementing
its proposed amendment to the Indenture, Xinhua Finance would
agree to set aside 50% of the proceeds from the sale of capital
stock, up to and including proceeds in an aggregate amount of
US$50 million, of any of Mergent, Inc., Stone & McCarthy
Research Associates, Inc., Market News International, Inc., G-7
Group, Inc., Washington Analysis Corporation and Taylor Rafferty
Associates, Inc., to make an offer to purchase Senior Notes at
par, plus accrued interest, within 45 days from receipt of any
such proceeds, with the remaining 50% of such proceeds to be
applied in accordance with the Indenture.

Xinhua Finance will allocate up to the first US$25 million of
proceeds from the aforementioned sale of stock, if any, to the
Noteholders to make an offer to purchase Senior Notes, with the
balance of up to and including US$50 million, if any, being
applied in accordance with the Indenture.  The supplemental
indenture implementing the Proposed Amendment will be amended
accordingly to reflect these changes.

The complete terms and conditions of the Consent Solicitation
are set forth in the Consent Solicitation Statement that was
sent to the Noteholders.

               About Xinhua Finance Limited

Xinhua Finance Limited – http://www.xinhuafinance.com/-- is  
China's premier financial information and media service provider
and is listed on the Mothers Board of the Tokyo Stock Exchange
(symbol: 9399) (OTC ADRs: XHFNY).  Xinhua Finance's proprietary
content platform, comprising Indices, Ratings, Financial News,
and Investor Relations, serves financial institutions,
corporations and re-distributors worldwide.  Through its
subsidiary Xinhua Finance Media Limited (NASDAQ: XFML), XFL
leverages its content across multiple distribution channels in
China including television, radio, newspaper, magazine and
outdoor media.  Founded in November 1999, XFL is headquartered
in Shanghai, with offices and news bureaus spanning 12 countries
worldwide.

                       *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
May 30, 2008, Xinhua Finance Limited commenced a consent
solicitation relating to its outstanding US$100,000,000 10%
Senior Guaranteed Notes due 2011, ISIN: XS0275685641 and Common
Code: 027568564.  The Consent Solicitation will expire at 3:00
p.m., London time, on June 9, 2008, unless extended.
             


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

BREAN DISTRIBUTOR: Creditors' Proofs of Debt Due June 27
-------------------------------------------------------
Creditors of Brean Distributor Limited are required to file
their proofs of debt by June 27, 2008, to be included in the
company's dividend distribution.

The company's liquidator is:

         Stephen Briscoe
         1801 Wing On House, 18th Floor
         71 Des Voeux Road, Central
         Hong Kong


CENTRAL FINANCE: Members & Creditors to Meet on July 8
-------------------------------------------------------
Central Finance Limited will hold a joint meeting for its
creditors and contributors at 9:30 a.m. and 9:45 a.m,
respectively on July 8, 2008.  During the meeting, the company's
liquidator, Stephen Briscoe will provide the attendees with
property disposal and winding-up reports.

The company's liquidator can be reached at:

            Stephen Briscoe
            Admiralty Centre, Tower 1, Level 14
            18 Hartcourt Road, Hong Kong


COSMO FIRE: Commences Liquidation Proceedings
---------------------------------------------
Cosmo Fire Insurance Company Limited's members agreed on May 30,
2008, to voluntarily liquidate the company's business.  The
company has appointed Chui Wai Hon and Kau Wai Ming to
facilitate the sale of its assets.

The liquidators can be reached at:

          Chui Wai Hon
          Lau Wai Ming
          Hang Seng Wancahi Building, 6th Floor
          Room 603-4, Hennessy Road
          Wanchai, Hong Kong


ENCHANTING INVESTMENT: Creditors Meeting Fixed for July 7
---------------------------------------------------------
The creditors of Enchanting Investment Company Limited will have
their final meeting on July 7, 2008, at Level 28, Three Pacific
Place, 1 Queen's Road East, in Hong Kong to hear the
liquidator's report on the company's wind-up proceedings and
property disposal.

The liquidators can be reached at:

           Ying Hing Chui
           Chung Mui Yin, Diana
           Level 28, Three Pacific Place
           1 Queen's Road East, Hong Kong


HELPING METAL: Liquidators Quit Post
------------------------------------
On May 27, 2008, Wong Man Chung, Francis and Leung Lok Ming
stepped down as liquidators for Helping Metal Company Limited.


INTEGRITAS MANAGMENT: Liquidator Quits Post
-------------------------------------------
On June 6, 2008, Philip Brendan Gilligan stepped down as
liquidator for Integritas Management Limited.


MICKY WEATHERWEAR: Creditors' Proofs of Debt Due July 2
-------------------------------------------------------
Creditors of Micky Weatherwear Limited are required to file
their proofs of debt by June 2, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 2, 2008.

The company's liquidator is:

         Tam Chi Chung
         Cheong K. Building, Room 804
         84-86 Des Voeux Road Central, Hong Kong


MASTERWELL WORLDWIDE: Creditors' Proofs of Debt Due July 11
-----------------------------------------------------------
Creditors of Masterwell Worldwide Investments Limited are
required to file their proofs of debt by July 11, 2008, to be
included in the company's dividend distribution.

The company's liquidator is:

         Lee Sze Ho
         Island Place Tower, Unit 2605
         510 King's Road, North Point
         Hong Kong


REDWOOD INT'L: Commences Liquidation Proceedings
------------------------------------------------
Redwood International Limited's members agreed on May 26, 2008,
to voluntarily liquidate the company's business.  The company
has appointed To Fung Wo to facilitate the sale of its assets.

The liquidator can be reached at:

          To Fung Wo
          Chinacem Century Tower, 31st Floor
          178 Gloucester Road, Wanchai
          Hong Kong


YETO ACCOUNTING: Creditors Meeting Fixed for July 4
---------------------------------------------------
The creditors of Yeto Accounts & Taxation Limited will have
their final meeting on July 4, 2008, at Island Place Tower, Unit
2605, 510 King's Road, North Point, in Hong Kong to hear the
liquidator's report on the company's wind-up proceedings and
property disposal.

The liquidator can be reached at:

           Lam Wing Yi, Jerry
           Island Place Tower, Unit 2605
           510 King's Road, North Point
           Hong Kong
           


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

SPICEJET: To Cut Flights, FY 2008 Net Loss Seen
-----------------------------------------------
SpiceJet plans to cut the number of flights to just 100 per day
from 117 by the first week of July as the company's FY 2008 net
loss is seen at nearly Rs 100 crore and breakeven is seen
delayed by a year to March 2010, moneycontrol.com reports.

According to moneycontrol.com, Vijay Mallya, Chairman, UB Group,
said there is a need to rationalise fleet services and cut
routes if aviation turbine fuel prices are not cut.  
International operations are on track and the delivery of wide-
body aircraft is on June 19, he added.

“If there is no tax relief, the only way forward is to
rationalise routes and to seriously cut down flights.  The
aviation industry is suffering heavy losses primarily due to the
unprecedented increase in the price of oil.  To make matters
completely worse, there is a huge element of government taxation
on top of this, which makes the position unsustainable,”
moneycontrol.com cites Vijay Mallya, CMD of Kingfisher Airlines
as saying.

As surging oil prices continue to pull down the industry, the
government of India asked state-run oil companies to consider a
cut in the base price of jet fuel to give immediate relief to
airlines, The Telegraph relates.

The government will also call upon an empowered group of
ministers to discuss likely tax cuts to bail out the sector, The
Telegraph says.

“This is an extraordinary situation.  There is a crisis in the
aviation sector and we must all collectively try to find out a
solution.  Otherwise it is going to affect the overall growth of
the sector in a big way,” civil aviation minister Praful Patel
was quoted by The Telegraph as saying after meeting Prime
Minister Manmohan Singh on the ATF issue.  “We have also
explained that it is not so easy for a vital sector like
aviation go belly up and it will have a cascading effect or
multiplied effect on the entire economy.”

Meanwhile, sources told the Economic Times that Paramount
Airways has expressed interest in SpiceJet and is already in
talks for a possible buyout.

Jet Airways and Anil Dhirubhai Ambani Group (ADAG) have
previously indicated their interest in the SpiceJet, the
Economic Times said.

“We are looking at raising Rs 400-crore capital, but the mode
has not been decided yet.  Nor have we yet appointed an advisory
firm,” SpiceJet chief financial officer Partha Sarathi Basu told
ET.  He, however, declined to comment on the airline being in
talks with Paramount Airways or other suitors for a buyout, ET
said.

As to reports on possible Ambani deal, Spicejet clarified in a
regulatory filing with the  Bombay Stock Exchange on June 6,
2008, that “the Company has till date not received any formal
communication from any party.”

When contacted by ET, Paramount Airways managing director M
Thiagrajan declined to comment.  However, company sources told
ET that the privately-held airline is actively looking at a pan-
India presence, including the competitive northern market.

Spicejet will be releasing its fiscal year 2008 results on
June 30, 2008.

SpiceJet Limited -- http://www.spicejet.com/-- is an airline
carrier in India. During the fiscal year ended May 31, 2007
(fiscal 2007), the company increased its fleet size to 11
aircrafts covering 14 destinations and operating 83 daily
flights. The aircrafts acquired during fiscal 2007, were the
next generation Boeing737-800. The company has also integrated
with Tata AIG Insurance Company Limited to commence travel
insurance sales, which was launched in May 2007.

                           *     *     *

Spicejet incurred net losses for at least two consecutive years
-- INR414.2 million in the year ended May 31, 2006, and
INR287.05 million in the year ended May 31, 2005.  The company
changed its financial year from June-May to April-March.  For
the ten months ended March 31, 2007, the airline carrier booked
a net loss of INR707.43 million.


* INDIA: Soaring Oil Prices Cue RBI's Special Market Operations
---------------------------------------------------------------
Keeping in view the systemic implications of the liquidity and
other related issues currently faced by Public Sector Oil
Companies arising from the unprecedented escalation in
international crude oil prices, the Reserve Bank of India had
decided on May 30, 2008, to put in place Special Market
Operations (SMOs), for the smooth functioning of financial
markets and for overall financial stability.  

Accordingly the RBI decided to conduct open market operations
(outright or repo at the discretion of RBI) in the secondary
market through designated banks in oil bonds held by public
sector oil marketing companies in their own accounts subject to
an overall ceiling of Rs.1000 crore on any single day.

In addition, the RBI decided to provide equivalent foreign
exchange through designated banks at market exchange rate to the
oil companies.

It was emphasized that these measures were adhoc, temporary in
nature and were to be reviewed on a continuous basis.

On a review of the operations, RBI has been decided to enhance
the overall ceiling of open market operations to Rs.1,500 crore
on any single day.  All other features of the scheme would
remain unchanged.


* INDIA: RBI Increases Repo Rate by 25bp to 8.00%
-------------------------------------------------
The Reserve Bank of India said the Annual Policy Statement for
the year 2008-09 (April 29, 2008) had stated, inter alia, that
the overall stance of monetary policy in 2008-09 will broadly be
to ensure a monetary and interest rate environment that accords
high priority to price stability, well-anchored inflation
expectations and orderly conditions in financial markets while
being conducive to continuation of the growth momentum.  
Further, it was proposed to respond swiftly on a continuing
basis to the evolving constellation of adverse international
developments and to the domestic situation impinging on
inflation expectations, financial stability and growth momentum,
with both conventional and unconventional measures, as
appropriate.

The year-on-year WPI inflation which was 4.36 per cent on
January 12, 2008 (at the time of announcement of the Third
Quarter Review for 2007-08) increased to 7.33 per cent on April
12, 2008 (at the time of announcement of the Annual Policy
Statement for 2008-09) and to a high of 8.24 per cent on May 24,
2008.  Further, various measures of CPI inflation, which ranged
from 4.8 to 5.9 per cent in January 2008 have increased to a
range of 7.8 to 8.9 per cent in April 2008.

The Annual Policy Statement for the year 2008-09 (April 29,
2008) had referred to the unprecedented uncertainties and
dilemmas that exist and added "while monetary policy has to
respond proactively to immediate concerns, it cannot afford to
ignore considerations over a relatively longer term perspective
of, say, one to two years, with respect to overall macroeconomic
prospects.  At the same time, it is critical at this juncture to
demonstrate on a continuing basis a determination to act
decisively, effectively and swiftly to curb any signs of adverse
developments in regard to inflation expectations".

Accordingly, and on a review of the current macroeconomic and
overall monetary conditions and with a view to containing
inflation expectations, the RBI says it is essential to take
appropriate action on an urgent basis.  The RBI has decided to
increase the repo rate under the Liquidity Adjustment Facility
(LAF) by 25 basis points to 8.00 per cent from 7.75 per cent
with immediate effect.  There is no change in the reverse repo
rate.



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

BANK RAKYAT: To Offer IDR3 Tril. Loans to Support PT Telkom
-----------------------------------------------------------
PT Bank Rakyat Indonesia will offer IDR3 trillion (US$330
million) in loans for PT Telkom to finance its capital
expenditure, Antara News reports.

PT Telkom is still seeking additional funds of IDR9.3 trillion,
in which US$2.5 billion will be used to build 3,000 more base
transceiver station units and to acquire a telecommunications
company in the Middle East, the report says.

According to Antara News, the loan is expected to come mainly
from Bank Rakyat and Bank Negara Indonesia.

                           About RBI

Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- services comprise    
Savings, Credits and Syariah.  In addition, the bank divides its
financial and business services into three groups: Business
Services, consisting of bank guarantees, bank clearance,
automatic teller machines and safe deposit boxes; Financial
Services, consisting of bill payments, CEPEBRI, INKASO, deposit
acceptance, online transactions and transfers, and Other
Services, consisting of tax and fine payments, donations,
Western Union and zakat contributions.  During the year ended
Dec. 31, 2005, the bank had one branch office in Cayman Islands
and two representative offices in New York and Hong Kong,
respectively.

The Troubled Company Reporter-Asia Pacific reported on Oct. 19,
2007, that Moody's Investors Service raised Bank Rakyat's
foreign currency long-term debt rating to Ba2 from Ba3 and its
foreign currency long-term deposit ratings to B1 from B2.

Fitch Ratings affirmed all the ratings of PT Bank Rakyat
Indonesia (Persero) Tbk:

     * Long-term foreign Issuer Default rating 'BB-',
     * Short-term rating 'B',
     * National Long-term rating 'AA+(idn)',
     * Individual 'C/D', and
     * Support '4'.


MEDCO ENERGI: Signs Pact Selling Apexindo to Mitra Rajasa
---------------------------------------------------------
Medco Energi Internasional Tbk PT disclosed in a regulatory
filing that on June 9, 2008, it signed an agreement for the sale
and purchase of shares of its subsidiary, PT Apexindo Pratama
Duta Tbk, with PT Mitra Rajasa Tbk to sell 1,287,045,106 shares
representing approximately 48.72% of the total issued shares of
Apexindo at the price of Rp 2,450 per share with total
transaction value of US$340,893,028.

Of the total consideration for the transaction, US$272,714,422
will be paid to the company in cash while US$68,178,606 will be
paid by guaranteed secured bonds issued by Sabre Systems
International Pte. Ltd, a wholly owned subsidiary of Mitra
Rajasa.

The sale of Apexindo's shares is one of the company's efforts to
implement its strategy to focus the business on oil and gas E&P,
power and downstream sectors.

Headquartered in Jakarta, Indonesia, Medco Energi Internasional
Tbk PT (JAK:MEDC) -- http://www.medcoenergi.com/-- is an  
integrated energy company.  The company is engaged in oil and
gas exploration and production, drilling services, methanol
production and the power generation industry.  The company holds
working interests in various exploration and production blocks
in Indonesia and overseas, producing more than 21 million barrel
of oil and 61 million cubic feet of gas annually.  In addition,
it has 10 onshore rigs and four offshore rigs (swamp barge) and
operates one methanol plant, one liquefied petroleum gas plant
and three power plants.  The company's Indonesian operations
span from Aceh in Indonesia's western border to Papua in the
eastern territory.

The company's subsidiary, PT Apexindo Pratama Duta Tbk, is a
heavy equipment provider.  Apexindo Pratama has five
subsidiaries, namely PT Antareja Jasatama, Apexindo Asia Pacific
B.V., Apexindo Khatulistiwa B.V., Apexindo Offshore Pte. Ltd.
and Apexindo Raniworo Pte. Ltd.

                       *     *     *

As of June 11, 2008, Medco Energi continues to carry Moody's
“B1” long-term corporate family rating and Standard & Poor's
“B+” long-term foreign and local issuer credit ratings.  All
ratings have negative outlook.


PERUSAHAAN LISTRIK: Monthly Income Up by IDR260 Billion
-------------------------------------------------------
Perusahaan Listrik Negara's monthly income increased by
IDR260 billion following its policy, that took effect in April,
of charging consumers of over 6,600 VA with a non-subsidized
tariff, Antara News reports citing PLN president director Fahmi
Mochtar at a hearing with the House of Representatives'
Commission VII which deals with energy affairs.

According to Antara News, Mr. Mochtar said the additional income
was learned based on a provisional evaluation on the imposition
of the non-subsidized tariff on power customers of 6,600 VA and
over.

"The sensitivity of consumers of over 6,600 VA has not yet been
seen over the imposition of the non-subsidized tariff. Customers
who consumed electricity below the efficiency limit were only 50
percent," Antara News quotes Mr. Mochtar as saying.

He added that with such a condition, a policy of intensifying
the imposition of non-subsidy power tariffs needed to be taken.

                     About Perusahaan Listrik

Indonesian state utility firm PT Perusahaan Listrik Negara --
http://www.pln.co.id/-- transmits and distributes electricity       
to around 30 million customers, roughly 60% of Indonesia's
population.  The Indonesian Government decided to end PLN's
power supply monopoly to attract independents to build more
capacity for sale directly to consumers, as many areas of the
country are experiencing power shortages.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on June 18,
2007, that Standard & Poor's Ratings Services affirmed its
'BB-' foreign currency rating and 'BB' local currency rating on
Indonesia's PT Perusahaan Listrik Negara (Persero).  The outlook
is stable.  At the same time, Standard & Poor's assigned its
'BB-' issue rating to the proposed senior unsecured notes to be
issued by PLN's wholly owned subsidiary, Majapahit Holding B.V.


* INDONESIA: Moody's to Assign Ba3 Rating on Upcoming Bond
----------------------------------------------------------
Moody's Investors Service will assign a Ba3 rating with a stable
outlook to the Republic of Indonesia's forthcoming US dollar-
denominated global bond.

The Ba3 government bond rating reflects levels of general
government debt and total external debt that are relatively high
in comparison respectively to fiscal revenues and current
account receipts.  However, overall levels of indebtedness are
on a marked downward trend.

This reduction in the government's debt-to-GDP ratio has been
helped by the implementation of cautious fiscal policies and a
stronger Rupiah.  External resiliency is also improving due to
rising foreign exchange reserves that are underpinned in turn by
current account surpluses and growing FDI inflows.

At the same time, risks arising from a high proportion of
foreign currency denominated government debt are limited by its
predominantly concessional structure and long duration.

On the other hand, the rating incorporates weaknesses in
Indonesia's legal and regulatory system, and which heighten
business costs and investor uncertainty, and may also be
hindering the emergence of a higher growth rate.

The stable outlook reflects Moody's view that reasonable policy
management and prospects for gradual structural reforms will
offset the challenges that the Indonesian authorities will
continue to face over the next 12-18 months.  This view was
validated recently by the authorities' policy response to the
intensifying nature of the global oil price shock.

Against the backdrop of rising global crude oil prices and a
system of domestic fuel price subsidies which still limit the
pass-through of world market prices, Indonesia's fiscal position
has come under increasing strain.  As a result, its budgeted
fiscal deficit has been adjusted modestly upwards to 2.1% of
GDP.

However, the structural composition of the deficit is improving
and fiscal credibility remains fairly strong.  Moreover, the
upward revision in the government's deficit remains consistent
with the stable-to-improving trends in its debt ratios.

The budgetary improvements are underpinned by:

(1) further reductions in government oil price subsidies;
(2) higher crude price assumptions in the budget, and which are
    closer to international benchmarks; and
(3) more accurate expenditure projections in line with declining
    oil output.

The government's modifications of budget assumptions and fuel
price subsidies were scrutinized in parliamentary deliberations.
They will be accompanied by cash transfers that may reduce the
realization of projected fiscal savings, but should assist the
poorest sections of society in coping with the financial burden
of higher fuel prices.  As a result, socio-political stability
will likely be maintained.

Inflationary pressures will rise on account of the greater pass-
through of higher oil prices.  However, better implementation of
fuel price increases (and cash transfers) coupled with expected
monetary tightening and a supportive balance of payments should
limit the second-round inflationary effects.

The financing of Indonesia's higher budget deficit for FY08
relies predominantly on domestic sources.  This debt management
strategy complements the government's cautious fiscal stance and
policy adjustments, and is broadly consistent with maintaining
stability in the size, tenor and currency composition of its
overall debt ratios.



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

AMPEX CORP: Files Third Amended Disclosure Statement & Plan
-----------------------------------------------------------
Ampex Corporation and its debtor-affiliates delivered to the
U.S. Bankruptcy Court for the Southern District of New York on
June 8, 2008, a Third Amended Disclosure Statement explaining
their Third Amended Joint Chapter 11 Plan of Reorganization.

The Court scheduled a hearing yesterday, June 11, 2008,
to consider the adequacy of the Debtors' Disclosure Statement.

The Official Committee of Unsecured Creditors filed objection
to the Debtors' earlier versions of the disclosure statement
and plan.  The Committee argued that the plan leaves unsecured
creditors with minor equity share in the reorganized Debtors.  
The Committee's objection to the disclosure statement has not
been resolved.

As of March 30, 2008, the Debtors issued at least $59.6 million
of outstanding notes, wherein $6.9 million represents amounts
due under the a certain agreement dated Feb. 28, 2002, as
amended, entered between the Debtors and U.S. Bank, National
Association.  Under the agreement, the Debtors issued 12% senior
secured notes due 2008, which are secured by liens on the
Debtors' future royalty receipts.

The remaining $52.7 million of outstanding indebtedness
represents Hillside Capital Incorporated Notes that were issued
in connection with its satisfaction of required contribution
obligation under the pension plans -- Ampex Corporation
Retirement Plan and Quantegy Media Retirement Plan.

The pension plans will not be terminated under the Debtors'
Plan.  The Debtor will continue to fund the pension plans in
accordance with the minimum financing standards under the
Internal Revenue Code and the Employee Retirement Income
Security Act of 1974.  The Debtors anticipate making pension
plan contributions of at least $52.9 million by 2013.

As of Dec. 31, 2007, both pension plans were underfunded by
$57.7 million in the aggregate.

                     Overview of the Plan

The Plan provides for substantive consolidation of the Debtors'
estates for making distributions to the holders of allowed
claims and allowed interests.

The Plan further provides for the restructuring of the Debtors'
liabilities to maximize recovery to all stakeholders and to
improve financial viability of the reorganized Debtors.  All of
the Debtors' existing common stock will have no value and will
be canceled.  Upon emergence, at least 80% of the reorganized
Debtors' new common stock will be owned by Hillside.  The new
common stock will not be registered and will not be traded on
any public exchange.

Under the Plan, the disbursing agent is expected to transfer all
rights to the appropriate holders free and clear of all liens
and interests.

The Third Amended Plan classified claims against and interest in
the Debtors eight classes.  The classification and treatment of
claims and interests are:

              Treatment of Claims and Interests

              Type of                      Estimated   Estimated
Class        Claims           Treatment   Amount      recovery
-----        -------          ---------   ---------   ---------
unclassified  Administrative               $100,000    100%
              Expense Claims

unclassified  Fee Claims                   $2,900,000  100%

unclassified  Priority Tax                 $200,000    100%
              Claims

1             Priority Non-    unimpaired  $0          100%
              Tax Claims

2             Senior Secured   impaired    $6,900,000  
              Note Claims

3             Other Secured    unimpaired  $0          100%
              Claims

4             Hillside         impaired    $11,000,000 100%
              Secured
              Claims

5             General          impaired    $51,600,000 10%
              Unsecured
              Claims

6             Existing Common  impaired    $0          0%
              Stock

7             Existing         impaired    $0          0%
              Securities      
              Laws Claims

8             Other Existing   impaired    $0          0%
              Interests

If holder of Class 5 general unsecured creditors agrees to a
different treatment, holder will receive its pro rata share of
the unsecured claim distribution.  Distributions of new common
stock will be made after the Plan's effective date.  Hillside
unsecured deficiency claims, if any, will be deemed an allowed
unsecured claim in the amount of at least $41.7 million.

Holders of claims in classes 2, 4 and 5 are entitled to vote to
accept or reject the Plan.

A full-text copy of the Third Amended Disclosure Statement is
available for free at:

             http://ResearchArchives.com/t/s?2d9b

A full-text copy of the Amended Joint Chapter 11 Plan of
Reorganization is available for free at:

             http://ResearchArchives.com/t/s?2d9c

Headquartered in Redwood City, California, Ampex Corp. --  
http://www.ampex.com/-- (Nasdaq:AMPX) is a licensor of visual       
information technology.  The company has two business segments:
Recorders segment and Licensing segment.  The Recorders segment
primarily includes the sale and service of data acquisition and
instrumentation recorders (which record data and images rather
than computer information), and to a lesser extent mass data
storage products.  The Licensing segment involves the licensing
of intellectual property to manufacturers of consumer digital
video products through their corporate licensing division.

On March 30, 2008, Ampex Corp. and six affiliates filed for
protection under Chapter 11 of the Bankruptcy Code with the U.S.
Bankruptcy Court for the Southern District of New York (Case
Nos. 08-11094 through 08-11100).  Matthew Allen Feldman, Esq.,
and Rachel C. Strickland, Esq., at Willkie Farr & Gallagher LLP,
represent the Debtors in their restructuring efforts.  The
Debtors have also retained Conway Mackenzie & Dunleavy as their  
financial advisors.  In its schedules of assets and liabilities
filed with the Court, Ampex Corp. disclosed total assets of
$9,770,089 and total debts of $82,488,054.

The Debtors have nine foreign affiliates that are incorporated
in seven countries -- one each in the United Kingdom, Japan,
Belgium, Colombia and Brazil and two each in Germany and Mexico.  
With the exception of the affiliates located in the U.K. and
Japan, none of the other foreign affiliates conduct meaningful
business activity.  As of March 30, 2008, none of the foreign
affiliates have commenced insolvency proceedings.


FORD MOTOR: Trancinda Buys 20MM Shares of Over 1 Bil. Tendered
--------------------------------------------------------------
Tracinda Corporation disclosed the preliminary results of its
cash tender offer for up to 20,000,000 shares of Ford Motor
Company common stock, which expired at 5:00 p.m., New York City
time, on Monday, June 9, 2008.  Based on the preliminary count,
subject to final verification, approximately 1,016,959,620 of
2,240,000,000 shares of Ford˙s common stock were tendered,
including approximately 240,549,802 shares tendered by notices
of guaranteed delivery.

Tracinda will purchase 20,000,000 shares of Ford˙s common stock
in the tender offer at a purchase price of $8.50 per share, for
a total purchase price of $170,000,000, raising Tracinda's
interest in Ford to 5.5% from 4.7%.  Because the number of
shares tendered exceeded the number of shares that Tracinda
offered to purchase, the resulting estimated proration factor is
approximately 1.97% of the shares tendered.

According to Matthew Dolan of The Wall Street Journal, holders
were expected to dump off their shares since Trancinda's offer
was a 34% premium to Ford's June 9 trading price on the New York
Stock Exchange of $6.36.

The number of shares tendered and not withdrawn and the
proration factor are preliminary and are subject to
verification.  The actual number of shares validly tendered and
not withdrawn and the final proration factor will be announced
promptly following completion of the verification process.  
Promptly after such announcement, the depositary will issue
payment for the shares validly tendered and accepted under the
tender offer and will return all other shares tendered.

Questions regarding the offer should be directed to the
information agent, D. F. King & Co., Inc., at (212) 269-5550 for
banks and brokerage firms or (800) 859-8511 for all others.

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.


NIS GROUP: JCR Withdraws BB/Negative Senior Debts Rating
--------------------------------------------------------
Japan Credit Rating Agency Ltd. has withdrawn its ratings on
senior debts, shelf registration and CP program of NIS Group Co.
Ltd. and that on senior debts of Nissin Servicer Co. Ltd. at the
request of the issuer.

NIS Group: Rating
Senior Debts BB/Negative
Shelf Registration: Preliminaty Rating
Maximum:PY Y100 billion BB
Valid: two years effective from December 3, 2007
CP: NJ
Nissin Servicer: Rating
Senior Debts BB/Negative

As reported in the Troubled Company Reporter-Asia Pacific on
May 13, 2008, JCR affirmed its BB and preliminary BB rating on
senior debts and shelf registration of NIS Group Co., Ltd. while
revising rating outlook from Stable to Negative. Similarly, JCR
has affirmed its BB rating on senior debts of Nissin Servicer
Co. Ltd., revising the rating outlook from Stable to Negative.

JCR stated that NIS Group revised downwards the forecasts for
operating performance for FY2007 ended March 31, 2008.  Although
NIS Group's net assets will lower than originally forecasted due
to the expanded net loss, NIS Group is estimated to have secured
net assets amounting about JPY58 billion (as of the end of March
2008 (20% capital to total assets ratio).

According to the rating agency, the write-downs on inventory and
additional loan loss provisions made the Company's financial
risk derived from weakened real estate and stock markets
smaller.  JCR gave the Company high marks for the increased
capital through issue of common stock for JPY20 billion in
February this year, the undertakings towards business selection
and concentration and also enhancement of governance based on
the "management reform program", lowered proportion of consumer
finance business to the entire business portfolio and the fact
that loss on consumers' claims for refunds of excess interest
payments has been limited to the assumptions as supporting
factors for the rating for the Company.

On the other hand, JCR said changes in lending postures of
financial institutions and realization of the growth strategy
over the medium term will depend on external environment to a
large degree.  There are constraints on the rating with respect
to these factors.  Although risk of deterioration in asset
quality was reduced, downward pressures are being put on medium-
term business plan and profitability of the real estate related
business, which is one of the core businesses for the Company.  

JCR revised rating outlook for the Company from Stable to
Negative, based on the fact that JCR will have to pay more
attention to the above.  Similarly, JCR revised rating outlook
for Nissin Servicer, which has strong unity with the Company in
human affairs and fundraising.

                        About NIS Group

Japan-based NIS Group Co. Limited -- http://www.nisgroup.jp/--  
formerly Nissin Co. Ltd., is mainly engaged in the provision of
secured and unsecured loans to individuals, including small
business owners, consumers, small- and medium-sized enterprises
in Japan.  The company operates in four business segments.  The
Integrated Loan Services segment is engaged in the provision of
secured and unsecured loans, trust assurance, leasing and
securities services to individuals and corporate clients.  The
Debt Management and Collection segment is engaged in the
purchase, management and collection of debts. The Real Estate
segment is engaged in the purchase, sale and development of real
estate, as well as the asset management business.  The Others
segment is engaged in the provision of construction services and
enterprise support services, among others. The company has 54
subsidiaries and 10 associated companies.


NISSIN SERVICER: JCR Withdraws BB/Negative Senior Debts Rating
--------------------------------------------------------------
Japan Credit Rating Agency Ltd. has withdrawn its ratings on
senior debts, shelf registration and CP program of NIS Group Co.
Ltd. and that on senior debts of Nissin Servicer Co. Ltd. at the
request of the issuer.

NIS Group: Rating
Senior Debts BB/Negative
Shelf Registration: Preliminaty Rating
Maximum: Y100 billion BB
Valid: two years effective from December 3, 2007
CP: NJ
Nissin Servicer: Rating
Senior Debts BB/Negative

As reported in the Troubled Company Reporter-Asia Pacific on
May 13, 2008, JCR affirmed its BB and preliminary BB rating on
senior debts and shelf registration of NIS Group Co., Ltd. while
revising rating outlook from Stable to Negative.  Similarly, JCR
has affirmed its BB rating on senior debts of Nissin Servicer
Co. Ltd., revising the rating outlook from Stable to Negative.

JCR stated that NIS Group revised downwards the forecasts for
operating performance for FY2007 ended March 31, 2008.  Although
NIS Group's net assets will lower than originally forecasted due
to the expanded net loss, NIS Group is estimated to have secured
net assets amounting about JPY58 billion (as of the end of March
2008 (20% capital to total assets ratio).

According to the rating agency, the write-downs on inventory and
additional loan loss provisions made the Company's financial
risk derived from weakened real estate and stock markets
smaller.  JCR gave the Company high marks for the increased
capital through issue of common stock for JPY20 billion in
February this year, the undertakings towards business selection
and concentration and also enhancement of governance based on
the "management reform program", lowered proportion of consumer
finance business to the entire business portfolio and the fact
that loss on consumers' claims for refunds of excess interest
payments has been limited to the assumptions as supporting
factors for the rating for the Company.

On the other hand, JCR said changes in lending postures of
financial institutions and realization of the growth strategy
over the medium term will depend on external environment to a
large degree.  There are constraints on the rating with respect
to these factors.  Although risk of deterioration in asset
quality was reduced, downward pressures are being put on medium-
term business plan and profitability of the real estate related
business, which is one of the core businesses for the Company.  

JCR revised rating outlook for the Company from Stable to
Negative, based on the fact that JCR will have to pay more
attention to the above.  Similarly, JCR revised rating outlook
for Nissin Servicer, which has strong unity with the Company in
human affairs and fundraising.

                       About Nissin Servicer

Headquartered in Tokyo, Nissin Servicer Co. Limited --
http://www.nissin-servicer.co.jp/ -- is principally engaged in  
the credit management and credit collection businesses.  The
company, along with its subsidiaries, is also engaged in the
investment business, the real estate-related business, as well
as the management of corporation reconstruction funds. The
company has 20 subsidiaries and nine associated companies.


KOBE STEEL: Begins Construction of JPY4-Billion Testing Facility
----------------------------------------------------------------
Kobe Steel, Ltd. has begun construction of a large-capacity
compressor testing facility at its Takasago Works in Hyogo
Prefecture, Japan.  Kobe Steel plans to invest JPY4.1 billion in
the new facility, which will go into operation in April 2010.

The new facility will be able to test large-capacity rotating
machinery, mainly turbo compressors, with variable-speed motors
rated up to 20,000 kW. Kobe Steel's testing capacity will
increase by 50%, in comparison to the current level.  Testing
facilities are essential to confirm the design performance of
compressors, a major product of Kobe Steel's Machinery segment.
The new testing facility will enable Kobe Steel to enter the
large-capacity turbo compressor market.

Kobe Steel anticipates that numerous projects in the future,
both in Japan and overseas, will need large turbo compressors.
Two examples are oxygen plants in steel mills and the
manufacturing of liquid crystal displays.  Kobe Steel estimates
that it currently has a 10% share of the world market for the
integral-gear variety of turbo compressors.  The company
anticipates that by expanding into large-capacity compressors,
it will be able to gain a 20% share of the integral-gear
compressor market in the future.

In the Kobe Steel Group's Machinery segment, business has been
brisk from the oil refining, petrochemical and energy
industries.  In recent years, Kobe Steel has been developing the
global market including the United States, Europe, China and the
Middle East.  It has also been supplying compressors of higher
pressure and with larger capacities.  Owing to strong demand,
Kobe steel doubled total compressor sales to 700 billion yen
between fiscal 2002 and fiscal 2007.  Sales in fiscal 2008 are
also anticipated to increase further.

In 1915, Kobe Steel began production of Japan's first
reciprocating compressor.  From this start, it has been growing
its compressor business for nearly a century.  Kobe Steel is
Japan's top comprehensive manufacturer of compressors.  It
currently makes screw, centrifugal and reciprocating compressors
- the only company that produces all three types.

Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel,  
Limited -- http://www.kobelco.co.jp/english/corp/index.html--      
is one of Japan's leading steel makers, as well as the top  
supplier of aluminum and copper products.  Other businesses
include welding consumables, urban infrastructure and plant
engineering services, and industrial machinery.  Kobe Steel has
offices in New York, Singapore, Bangkok and Beijing.

                       *     *     *

As of June 11, 2008, the company still holds Mikuni Credit
Rating's “BB” Mortage Debt and Senior Debt ratings.


KOBE: Unit to Raise Production Capacity of Three Joint Ventures
--------------------------------------------------------------
Kobelco Construction Machinery Co., Ltd., unit of Kobe Steel,
Ltd., will raise the production capacity of three subsidiaries
in China by investing approximately JPY10 billion, Reuters
reports, citing Jiji Press.

According to the report, the three subsidiaries are engaged in
the business of hydraulic shovels and small-size shovels.  The
manufacturing operations will be transferred to a new location,
and the production capacity will approximately be tripled, the
report says.

Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel,  
Limited -- http://www.kobelco.co.jp/english/corp/index.html--      
is one of Japan's leading steel makers, as well as the top  
supplier of aluminum and copper products.  Other businesses
include welding consumables, urban infrastructure and plant
engineering services, and industrial machinery.  Kobe Steel has
offices in New York, Singapore, Bangkok and Beijing.

                       *     *     *

As of June 11, 2008, the company currently holds Mikuni Credit
Rating's “BB” Mortage Debt and Senior Debt ratings.


SANYO ELECTRIC: Seeks to Expand Market Share in North America
-------------------------------------------------------------
Sanyo Electric Co. Ltd. is in talks with Best Buy Co. Inc. and
other stores to expand sales channels in North America beyond
Wal-Mart stores, Reuters relates, citing Masami Murata,
president of Sanyo North America.

The report says the company, with the help of its major
shareholder Goldman Sachs, hopes to reach an agreement with Best
Buy this year, and is also in talks to expand its product lineup
with energy-efficient appliances at Wal-Mart.

According to Yukari Iwatani Kane of The Wall Street Journal,
Sanyo, currently selling television sets only through Wal-Mart,
is talking with other retailers, including Costco Wholesale
Corp., to offer its television sets.

Reuters says Sanyo is fighting to keep pace with undercutting
rivals like Vizio Inc. by procuring panels from suppliers such
as Sharp Corp.

The company, The WSJ relates, aims to more than triple its flat-
panel-television shipments in North America to four million
units by the end of its fiscal year ending March 2011. The goal
is part of Sanyo's plan to nearly double sales of electronics
products in the region to JPY220 billion (US$2.1 billion) in the
next three years from JPY128 billion in the last fiscal year
ended in March, The WSJ says.

Mr. Murata told Reuters that the company plans to launch a
marketing campaign targeting hotels, movie theatres, gasoline
stations and other businesses with its low-power consumption air
conditioners, refrigerators and other appliances.  "We would
like to hit double-digit sales growth this year," Mr. Murata
said.  "But this year is a year of preparation.  Sales will
truly take off in the following two years," Mr. Murata was cited
by Reuters as saying.

                      About Sanyo Electric

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

                           *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
June 6, 2008, Standard & Poor's Ratings Services raised to 'BB'
from 'BB-' its long-term corporate credit rating on Sanyo
Electric Co. Ltd, reflecting the company's stable cash flow
generating ability and improving financial profile.  At the same
time, Standard & Poor's raised to 'BB+' from 'BB' its issue
ratings on Sanyo Electric's senior unsecured debt.  The outlook
on the ratings is stable.



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

* KOREA: April 2008 Interests on Savings Deposits Rose 0.18%p
-------------------------------------------------------------
South Korea's average annual interest rates on new - time &
savings deposits taken by commercial and specialized banks
during April 2008 registered 5.45%, up 0.12%p from the preceding
month's 5.33%, the country's Economic Statistics Department
said.

Interests on savings deposits rose 0.18%p (5.28% to 5.46%),
centering around time deposits, led by some banks' setting of
high prime rates and special sales of high interest rate deposit
products.  Interests on new marketable instruments also showed
an increase of 0.04%p (5.41% to 5.45%), centering around CDs and
Rps.

The average annual new lending rates in April 2008 registered
6.91%, up 0.01%p from the preceding month's 6.90%.

Interest rates on corporate loans went down (6.92% to 6.91%,
-0.01%p), centering around those on loans to Small- and
Medium-sized Enterprises (SMEs), while interest rates on
household loans went up (6.89% to 6.99%, +0.10%p), reflecting an
upward movement in the yield on CDs (91 days).

A. Deposit Rates

   Savings Deposits
   ----------------
The average annual interest rate on new savings - deposits stood
at 5.46%, up 0.18%p from the previous month.  By deposit type,
interest rates on mutual installment deposits went down (-0.02%
p), while those on housing installment deposits remained
unchanged from the preceding month.  Meanwhile, the rates on
both time deposits (+0.18%p) and installment savings (+0.08%p)
rose from the preceding month.

As for interest rates on time deposits, the portion - of time
deposits with rates of 6.0% or higher rose to 14.1% from the
preceding month's 3.7%.

   Marketable Instruments
   ----------------------
The average annual interest on new marketable - instruments
registered 5.45% in April 2008, up 0.04%p from the previous
month.  Interest rates on new financial debentures (-0.16%p)
exhibited a decrease, while those on CDs (+0.10%p), RPs
(+0.08%p) and cover bills (+0.07%p) posted increases.

B. Lending Rates

   Corporate Loans
   ---------------
The average annual interest rate on new corporate - loans in
April 2008 registered 6.91%, down 0.01%p from the previous
month.  Interest rates on lending to large businesses remained
unchanged from the preceding month, whereas those on lending to
SMEs posted a decrease (-0.01%p).

   Household Loans
   ---------------
The average annual interest rates on new household - loans stood
at 6.99% in April 2008, a rise of 0.10%p from the previous
month.  Interest rates on loans on credit (+0.13%p), on mortgage
(+0.10%p), on deposits (+0.07%p) and on guarantee (+0.05%p) all
exhibited increases.

                    Weighted Average Interest
                  Rates on Outstanding Amounts

As of the end of April 2008, the deposit rates of outstanding
amounts increased by 0.02%p from the preceding month, while the
lending rates of outstanding amounts fell by 0.07%p.

As for deposit rates, rates on demand deposits and instant
access savings deposits remained unchanged from the preceding
month, while the rates on savings deposits (+0.02%p) and
marketable instruments (+0.02%p) went up from the preceding
month.

As for lending rates, both household lending rates (-0.11%p) and
corporate lending rates (-0.04%p) fell from the preceding month.

                   Interest Rates of Non-bank  
                     Financial Institutions

Interest rates on deposits and loans newly - taken and extended
by non-bank financial institutions during April 2008 are as
follows:

   -- Deposit interest rates of mutual savings banks fell by
      0.01%p, while their lending rate rose by 0.03%p.

   -- Deposit rates of credit unions went down by 0.09%p and
      their lending rates by 0.11%p.

   -- Deposit rates of mutual credits declined by 0.04%p from
      the preceding month, while their lending rates rose by
      0.01%p.



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

BSA INTERNATIONAL: Unable to Pay Interest on Loan Obligations
-------------------------------------------------------------
BSA International Berhad was classified as an affected listed
issuer under Practice Note 17 due to its failure to pay the
principal plus interest amount owed to certain facilities,
including:


   -- default in payment of interest in respect of
      MYR150 million Murabahah Commercial Papers/Medium-Term
      Notes Programme (2004/2011);

   -- default in payment of interest in respect of MYR45 million
      loan under Kerisma Berhad’s Collateralised Loan
      Obligations;

   -- BSA Manufacturing Sdn. Bhd.'s default in payment of
      principal plus interest to HSBC Bank Malaysia Berhad
      amounting to MYR5,168,515.25; and

   -- CAM Component Alloy Manufacturing Sdn. Bhd.'s default in
      payment of principal plus interest to HSBC Bank amounting
      to MYR5,185,597.35.

In its regulatory filing, the company stated that the default
was due to continuous rise in prices of raw material, its
primary raw material of aluminium ingot and fuel as well as the
weakening of USD in the recent years which contributed to
constraint in working capital.

To address the default, the company has appointed FHMH Corporate
Advisory Sdn Bhd as its Financial Adviser to undertake a
comprehensive review of the company and to consider and
recommend options available.

As an affected listed, the company is required to:

   -- regularize its condition and submit a plan to this effect
      to the Securities Commission and other relevant
      authorities for approval within eight months;

   -- implement the Regularization Plan within the timeframe
      stipulated by the Approving Authorities; and

   -- make the following announcements:

   a. the status of BSA’s Regularization Plan and the number of
      months to the end of the relevant time frames on a
      monthly basis until further notice from Bursa Securities;

   b. its compliance or non-compliance with a particular
      obligation imposed pursuant to PN 17 on an immediate
      basis; and

   c. details of the Regularization Plan, which shall include
      the timeline for the complete implementation of the
      Regularization Plan.  This Requisite Announcement must be
      made by a merchant banker or a participating organization
      that may act as a principal adviser under the Securities
      Commission’s Policies and Guidelines on Issue/Offer of
      Securities.

            Status of company's Regularization Plan

The company is currently in the process of negotiation with the
lenders and noteholders in connection with the facilities
defaulted to seek indulgence for a standstill period for the
company to come out with a propose restructuring of repayment of
the outstanding amount.

Thereafter, appropriate steps will be taken pursuant to the
guidelines under Securities Commission’s Policies and Guidelines
on Issue/Offer of Securities to formalize the Regularization
Plan.  BSA will make on finalization and completion of the
regularization Plan, the requisite announcement outlining the
details of its Regularization Plan.

                     About BSA International

BSA International Berhad is a Malaysia-based investment holding
company.  The company operates in two business segments:
manufacturing, which is engaged in manufacturing of alloy wheels
and related accessories, and trading, which is engaged in
trading of alloy wheels, tires and related accessories.  Other
business segments include investment holding, provision of
services and promotion of motor sport events.  The company’s
subsidiaries include BSA International (Labuan) Plc., CAM
International Limited, BS Automotive (M) Sdn. Bhd., BSA
Motorsports Sdn. Bhd., CAM Automotive Inc., PT CAM Automotive
and BSA Racing Team Sdn. Bhd.


BSA INTERNATIONAL: Incurs MYR12.88MM Net Loss in 1st Qtr. 2008
--------------------------------------------------------------
BSA International Berhad incurred a net loss of MYR12.88 million
on MYR25.10 million of revenues in the first quarter ended
March 31, 2008, as compared to MYR2.61 million net profit on
MYR58.4 million of revenues recorded in the same quarter of the
preceding year.

As of March 31, 2008, the company's balance sheet showed
MYR453.48 million in total assets and MYR328.58 million of total
liabilities resulting to a shareholders equity of
MYR124.9 million.

                     About BSA International

BSA International Berhad is a Malaysia-based investment holding
company.  The company operates in two business segments:
manufacturing, which is engaged in manufacturing of alloy wheels
and related accessories, and trading, which is engaged in
trading of alloy wheels, tires and related accessories.  Other
business segments include investment holding, provision of
services and promotion of motor sport events.  The company’s
subsidiaries include BSA International (Labuan) Plc., CAM
International Limited, BS Automotive (M) Sdn. Bhd., BSA
Motorsports Sdn. Bhd., CAM Automotive Inc., PT CAM Automotive
and BSA Racing Team Sdn. Bhd.


MEMS TECHNOLOGY: Bursa Rejects Application for Waiver
-----------------------------------------------------
MEMS Technology Berhad disclosed in a letter dated June 6, 2008,
that the Bursa Securities has rejected the company's application
for a waiver to submit its regularization plan within eight
months since it became an affected company under the Guidance
Note No. 3/2006 of the listing requirements of Bursa Securities
for the MESDAQ market.

The EdgeDaily reports that MEMS had become an affected company
after its external auditors had expressed a disclaimer opinion
on the company’s consolidated financial results for the
financial year ended July 31, 2007.  The company's external
auditors had “expressed concerns” over certain transactions
relating to its revenue, as well as some of its assets.

MEMS reported a variation of MYR8.36 million in its audited net
profit for FY07 to MYR13.11 million after reversing transactions
that their external auditors had objected to, the Edge Daily
relates.

The deviation of the results in FY07, according to MEMS, was due
to the reversal of transactions after it decided not to
recognize revenue of MYR19.72 million, the report says.

However, external auditors said they were unable to verify the
authenticity of the revenue in question, as they were unable to
perform audit procedures to satisfy themselves as to the
identity of the payers for the sales to two multinational
companies, the Edge Daily adds.

                      About MEMS Technology

MEMS Technology Berhad is a Malaysia-based investment holding
company.  The company’s subsidiaries include SensFab Pte.Ltd,
which is engaged in the designing, development, testing and
manufacture of microelectro-mechanical systems-based sensors
products, SenzPak Pte.Ltd and SenzPak (M) Sdn. Bhd., which is
engaged in the designing, development, testing and assembly,
packaging and manufacturing of micro electromechanical systems.
The company manufactures micro electro-mechanical systems
(MEMS)-based sensors, sensor modules, and provides manufacturing
services.


WONDERFUL WIRE: Total Default Reaches MYR64.86 Mil. as of May 31
----------------------------------------------------------------
Wonderful Wire Berhad disclosed with the Bursa Stock Exchange
that together with its subsidiary, WWC Oil & Gas (Malaysia) Sdn.
Bhd, the company's total default reached MYR64,865,967.07 as of
May 31, 2008, which comprises of:

Wonderful Wire's loans:

                                          Principal & Interest
    Lender                 Facility        Outstanding (MYR)
    -------                --------       --------------------
* CIMB Bank Berhad         Term Loan            9,636,662.62
* Malayan Banking Berhad   Term Loan           30,631,142.37
* RHB Islamic Bank Berhad  Term Loan           20,062,025.70
* CIMB Bank Berhad         Leasing              4,229,499.00
                                          --------------------
                                     Total:    64,559,329.69

WWC Oil's loan:

                                          Principal & Interest
    Lender                Facility        Outstanding (MYR)
    -------               --------        --------------------  
  CIMB Bank Berhad        Leasing         MYRRM306,637.38

WWC and its subsidiary are unable to service the loan repayments
to the lending financial institutions as their businesses has
suffering operating losses for the last few years.  The problem
has been compounded by the shortage in working capital and
continuing increase in the prices of copper, the main raw
material for WWC’s productions.

To address the default, the company is considering an
appropriate regularization plan which will include a proposed
corporate and debt restructuring scheme to be submitted to the
authorities for their approval by July 31, 2008 to regularize
its financial position.

                      About Wonderful Wire

Wonderful Wire & Cable Berhad is a Malaysia-based company that
is engaged in the manufacture and trading of all kinds of
electrical wires and cables.  The principal activities of the
company's subsidiaries include the investment holding, provision
for oil, gas and petroleum engineering, and design engineers and
contractors.  Its subsidiaries include Wonderful Industries Sdn.
Bhd., WWC Oil & Gas (Malaysia) Sdn. Bhd., WWC Sealing (Malaysia)
Sdn. Bhd., Transmission Resources Sdn. Bhd., WWC Engineering (M)
Sdn. Bhd. and Wonderful Wire & Cable.  In November 2006, the
company acquired the remaining 40% interest in WWC Sealing
(Malaysia) Sdn Bhd.  The principal activity of WWC Sealing
(Malaysia) Sdn Bhd is to design, manufacture and market
different ranges of industrial seal and gasket.

On December 3, 2007, the company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category as the company's shareholders' equity
on a consolidated basis for the unaudited results is less than
25% of the issued and paid-up capital for the third quarter
ended Sept. 30, 2007.



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

CHRISCOTT LTD: Commences Liquidation Proceedings
------------------------------------------------
The High Court at Wellington convened a hearing on June 3, 2008,
to consider an application putting Chriscott Limited into
liquidation.

The application was filed on April 18, 2008, by  the
Commissioner of Inland Revenue.

The plaintiff can be reached at:

          Inland Revenue Department
          Legal and Technical Services
          7-27 Waterloo Quay
          (PO Box 1462), Wellington
          Telephone: (04) 890 1028
          Facsimile: (04) 890 0009

Philip Hugh Brian Latimer is the plaintiff’s solicitor.  


HATUMA FOODS: Liquidators Appointed
-----------------------------------
By a special resolution pursuant to section 241 of the Companies
Act 1993, John Richard Palairet and David William Pearson,
chartered accountants of Napier, were appointed as liquidators
of  Hatuma Foods Limited.

The company's liquidation commenced on May 12, 2008.

For inquiries contact:

          BDO Spicers Hawke's Bay
          86 Station Street
          (PO Box 944), Napier
          Telephone: (06) 835 3364
          Facsimile: (06) 835 3388


OTARA SECONDHAND: Court Sets July 30 Liquidation Hearing
--------------------------------------------------------
On April 3, 2008, an application for putting Otara Secondhand
Warehouse Limited fka Leabank Service Station Limited into
liquidation by the High Court was filed in the High Court at
Auckland.

The application is to be heard before the High Court at Auckland
on July 30, 2008 at 10:00 a.m.

Any person, other than the defendant company, who wishes to
appear on the hearing of the application must file an appearance
not later than the second working day before that day.

The plaintiff, the Commissioner of Inland Revenue, can be
reached at:

          Inland Revenue Department
          Legal and Technical Services
          1 Bryce Street (PO Box 432)
          Hamilton
          Telephone: (07) 959 0373
          Facsimile: (07) 959 7614

Kay S. Morgan is the plaintiff’s solicitor.


PARKSTONE NURSING: Commences Liquidation Proceedings
----------------------------------------------------
The High Court at Wellington convened a hearing on June 3, 2008,
to consider an application putting Parkstone Nursing & Care
Limited into liquidation.

The application was filed on April 18, 2008, by the
Commissioner of Inland Revenue.

The plaintiff can be reached at:

          Inland Revenue Department
          Legal and Technical Services
          7-27 Waterloo Quay
          (PO Box 1462), Wellington
          Telephone: (04) 890 1028
          Facsimile: (04) 890 0009

Philip Hugh Brian Latimer is the plaintiff’s solicitor.


PERCY DAVIS: Liquidators Fix June 19 as Claims Bar Date
-------------------------------------------------------
The liquidators appointed in Percy Davis Limited and Cairngorm
Civils Limited's cases fixed June 19, 2008, as the last day for
creditors of the company to make their claims and to establish
any priority their claims may have under section 312 of the
Companies Act 1993.

Robert B. Walker and John M. Scutter, the liquidators,
can be reached at:

          Active Chartered Accountants
          Level 2, 330 High Street
          (PO Box 31047)
          Lower Hutt
          Telephone: (04) 586 4645
          Facsimile: (04) 586 7641


PROPERTY FUNDING: Claims Filing Deadline is June 19
---------------------------------------------------
The creditors of Property Funding Investment Group Limited
have until June 19, 2008, to make their claims and to
establish any priority their claims may have under
section 312 of the Companies Act 1993.

Stephen James Higgs and Stephen Alan Dunbar, chartered
accountants of Polson Higgs, were appointed liquidators.

The liquidation of the company commenced on May 14, 2008.

For inquiries, contact Jiahua Su at 139 Moray Place, in
Dunedin, or through telephone number (03) 477 9923.

The Liquidators can be reached at:

          Polson Higgs
          PO Box 5346
          Dunedin


SEPI MANAGEMENT: Court Sets June 16 Liquidation Hearing
-------------------------------------------------------
On April 8, 2008, an application for putting SEPI Management
Limited fka Paradise Pies Limited into liquidation by the High
Court was filed in the High Court at Tauranga.

The application is to be heard before the High Court at Rotorua
on June 16, 2008 at 10:45 a.m.

Any person, other than the defendant company, who wishes to
appear on the hearing of the application must file an appearance
not later than the second working day before that day.

The plaintiff, the Commissioner of Inland Revenue, can be
reached at:

          Inland Revenue Department
          Legal and Technical Services
          1st Floor Reception
          224 Cashel Street
          (PO Box 1782)
          Christchurch 8140
          Telephone: (03) 968 0807
          Facsimile: (03) 977 9853

Julie Newton is the plaintiff’s solicitor.


* NEW ZEALAND: Export Price Index Up 4.5% in March 2008 Qtr.
------------------------------------------------------------
The price indexes for both merchandise exports and imports rose
in the March 2008 quarter, while volumes for both were down,
Statistics New Zealand said.

Although volumes fell for both exports and imports in the March
2008 quarter, both have come off the highs set in December 2007,
and are still at the second highest levels on record.

The export price index rose 4.5 percent in the March 2008
quarter while volumes fell 3.5 percent, with dairy products the
main contributor to both movements.  The dairy products price
index rose 19.7 percent to reach a new high in March 2008, with
rises recorded for milk and cream, butter, and cheese.  At the
same time, volumes fell 10.6 percent (from the record high of
the December 2007 quarter), with falls recorded in all dairy
products sub-indexes except for butter.

The merchandise import price index rose 0.3 percent in the March
2008 quarter while import volumes fell 0.9 percent.  The price
increase was driven by an 8.3 percent rise in the petroleum and
petroleum products index.  However, when these products are
excluded, the price index for total merchandise imports shows a
fall of 1.1 percent.  The fall in import volumes follows six
consecutive quarterly increases, with the current decrease led
by transport equipment, primarily due to reduced volumes of
aircraft imports compared with December 2007.

Due to export prices rising more than import prices, the
merchandise terms of trade index rose 4.1 percent in the March
2008 quarter.  The terms of trade have now risen for six
consecutive quarters.



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

PHILIPPINE NATIONAL: To Offer PHP3BB Lower Tier 2 Notes in Feb.
---------------------------------------------------------------
Philippine National Bank will offer at least PHP3 billion of
Lower Tier 2 notes (LT2) to raise additional capital primarily
to re-finance outstanding LT2 Notes callable in February 2009.  
The bank started offering the Notes on June 3, 2008, and market
response to the issue has been very strong with over
PHP7 billion in total orders as of June 6, 2008.

Indicative interest rate for the Notes is about 8.50%.  The
final rate will be determined by the Bank early this week.  The
Notes will have an initial maturity of ten years but are
callable by the Bank in 2013.  The rate on the Notes will
increase if the Bank does not call the Notes after the 5th year.  
PNB is looking to close the offer peiod on June 18 although it
reserves the right to close the offer period subject to
discussion with the Arranger.

Deutsche Bank AG, Manila Branch is the Arranger and a Selling
Agent for the transaction.  Other selling agents include Allied
Banking Corporation, First Metro Investment Corporation and
Multinational Investment Bancorporation.  Limited selling agents
include PNB and PNB Capital and Investment Corporation.  
Deutsche Bank AG, Manila is also acting as Registry for the
transaction and Development Bank of the Philippines is acting as
Public Trustee.  The market maker for secondary sales of these
Notes is MIB.

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

                        *     *     *

The TCR-AP reported on May 15, 2008, that Moody's Investors
Service affirmed the bank's foreign currency deposit rating of
B1/Not-Prime, upgrades bank's financial strength rating to E+.
At the same time, the bank's local-currency deposit and
subordinated debt ratings have been raised to Ba1/Not-Prime and
Ba2 respectively.



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

AXS-ONE INC: March 31 Balance Sheet Upside-Down by US$10,622,000
----------------------------------------------------------------
AXS-One Inc.'s consolidated balance sheet at March 31, 2008,
showed $5,529,000 in total assets and $16,151,000 in total
liabilities, resulting in a $10,622,000 total stockholders'
deficit.

At March 31, 2008, the company's consolidated balance sheet also
showed strained liquidity with $5,025,000 in total current
assets available to pay $8,341,000 in total current liabilities.

The company reported a net loss of $2,205,000, on total revenues
of $3,894,000, for the first quarter ended March 31, 2008,
compared with a net loss of $2,661,000, on total revenues of
$3,694,000, in the same period last year.

Revenues increased $200,000 or 5.4% for the three months ended
March 31, 2008, as compared to the corresponding prior year
period due to a $500,000 increase in service revenue offset
somewhat by a $300,000 decrease in license fees.

Operating loss decreased to $1,752,000 for the three months
ended March 31, 2008, as compared to $2,776,000 in the
corresponding prior year period as a result of the reductions in
operating expenses of $824,000 and higher sales revenue.

Other expense, net, was $453,000 for the three months ended
March 31, 2008, as compared to other income of $115,000 in the
same period in 2007.  

Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2008, are available
for free at http://researcharchives.com/t/s?2d93

                      Going Concern Doubt

As reported in the Troubled Company Reporter on April 25, 2008,
Amper, Politziner, & Mattia, P.C., in Edison, N.J., expressed
substantial doubt about AXS-One Inc.'s ability to continue as a
going concern after auditing the company's consolidated
financial statements for the years ended Dec. 31, 2007, and
2006.  The auditing firm pointed to the company's losses from
operations and working capital deficiency.

The company has generated losses from operations of $1,752,000
for the three months ended March 31, 2008.  Additionally, the
company was not in compliance with its quarterly license revenue
covenant as of March 31, 2008.  The bank waived such violation
and changed the covenants for future periods from a minimum
license revenue covenant and minimum three month rolling net
loss covenant to (a) a minimum three month rolling EBITDA
covenant, (b) minimum cash and accounts receivable availability
covenant and (c) a minimum equity infusion covenant of $500,000.

The company also had a working capital deficiency of $3,316,000
as of March 31, 2008.

                       About AXS-One Inc.

Headquartered in Rutherford, N.J., AXS-One (OTC BB: AXSO)
-- http://www.axsone.com/-- provides Records Compliance
Management software solutions.  The AXS-One Compliance Platform
enables organizations to implement secure, scalable and
enforceable policies that address records management for
corporate governance, legal discovery and industry regulations
such as SEC17a-4, NASD 3010, Sarbanes-Oxley, HIPAA, The Patriot
Act and Gramm-Leach Bliley.  AXS-One has offices worldwide
including in the United States, Australia, Singapore, United
Kingdom and South Africa.

                         *********

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.  Marites M. Claro, Rousel Elaine C. Tumanda,
Valerie C. 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.





                 *** End of Transmission ***