TCRAP_Public/080630.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Monday, June 30, 2008, Vol. 11, No. 128

                            Headlines

A U S T R A L I A

AUSSIE STRONG: Commences Liquidation Proceedings
DOMINEO PTY: Appoints Robert James Locke as Liquidator
L W BURGESS: Liquidator Presents Wind-Up Report
LA & MG: Placed Under Voluntarily Liquidation
LIVERPOOL HOLDINGS: Appoints Mitchell Ball as Liquidator

ST GEORGE: Completes Wholesale Funding Requirements for FY2008
ST LAURENCE: To Begin Annual Investor Roadshow in Late July
WESTPOINT GROUP: ASIC to Pursue Fresh Proceedings
UNIFIED CONSTRUCTIONS: Appoints Mitchell Ball as Liquidator
UNITED UNDERWRITERS: Appoints Stephen Humphrys as Liquidator


C H I N A

AGILE PROPERTY: S&P Affirms 'BB' Rating with Stable Outlook
ASCALADE COMM: Plan of Compromise or Arrangement Gets Court OK
CHINA SOUTHERN: Names Zhang Wei as Supervisor
CHINA SOUTHERN: Launches Credit Card With ICBC
HOPSON DEVELOPMENT: S&P Cuts Long-Term Corporate Rating to 'BB-'

IVANHOE ENERGY: To Increase Private Placement to C$88 Million
XINHUA FINANCE: XFMedia CEO and Directors Buy Company Shares


H O N G K O N G

AMTAC INT'L: Court to Hear Wind-Up Proceedings on Aug. 13
GANGFORD INT'L: Court to Hear Wind-Up Proceedings on July 9
HK NEOPOINT: Court to Hear Wind-Up Proceedings on July 30
HUA YANG: Court to Hear Wind-Up Proceedings on July 2
PENINSULA BOSS: Court to Hear Wind-Up Proceedings on Aug. 6

PROMAIL INT'L: Creditors' Proofs of Debt Due on July 4
SAN WO: Court to Hear Wind-Up Proceedings on July 9
UNITED PACIFIC: Court to Hear Wind-Up Proceedings on July 18
YATIN DEV'T: Court to Hear Wind-Up Proceedings on Aug. 13


I N D I A

A INFRASTRUCTURE: CRISIL Rates Bank Facilities at “BB+”
GENERAL MOTORS: Investors See 75% Chance of Default in 5 Years
GENERAL MOTORS: Fitch Trims ID Rating to B-; Puts Negative Watch
NELFIN (INDIA): Reserve Bank Cancels Registration Certificate

* CRISIL: Subsidy May Weaken Fertilizer Makers' Credit Profiles
* INDIA: Silk Industry Severely Affected by China Quake


I N D O N E S I A

ANEKA TAMBANG: To Pay IDR215.23 Per Share Dividend
INDOSAT: Qatar Telecom to Acquire 44.9% Company Stake


J A P A N

AIFUL CORP: May Sue Lehman Brothers on Insolvency Report
FORD MOTOR: Fitch to Review Ratings Over Next Six Weeks
* JAPAN: Six Major Automakers Post Decrease in May Sale


K O R E A

* FITCH: Korean Life Insurance Market Shows Growth Potential


N E W  Z E A L A N D

ATAARANGI CONTRACTORS: Court Sets July 14 Liquidation Hearing
CAMELIA PROPERTIES: Replacement Liquidators Appointed
GOODYEAR TIRE: To Invest US$2BB in Plants' Expansion-Improvement
HOME IMPROVEMENTS: Commences Liquidation Proceedings
MAD PLUMBING: Commences Liquidation Proceedings

MONSAL INVESTMENTS: John Gilbert Appointed as Liquidator
OHINEMATAROA HOLDINGS: Court Sets July 14 Liquidation Hearing
PETONE WHOLESALERS: Commences Liquidation Proceedings
TE REO: Court Schedules July 14 Liquidation Hearing

* NEW ZEALAND: Economic Activity Shrinks 0.3% in 1st Qtr 2008
* NEW ZEALAND: Records NZ$196 Mil. Trade Deficit in May 2008


P H I L I P P I N E S

ALLIED BANKING: Moody's May Lift “Ba3” Subordinated Debt Rating


X X X X X X X X

* FITCH: Emerging Market Economic and Credit Outlook Worsening


                         - - - - -


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

AUSSIE STRONG: Commences Liquidation Proceedings
------------------------------------------------
At the general meeting of the members and creditors of  Aussie
Strong Services Pty Ltd held June 5, 2008, Schon G. Condon RFD,
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:

          Schon G. Condon RFD
          Condon Associates
          Level 6, 87 Marsden Street
          Parramatta NSW
          Australia
          Telephone: (02) 9893 9499


DOMINEO PTY: Appoints Robert James Locke as Liquidator
------------------------------------------------------
Domineo Pty. Ltd.'s members agreed on April 21, 2008, to
voluntarily liquidate the company's business.  R. J. Locke was
appointed to facilitate the sale of its assets.

The liquidator can be reached at:

          R. J. Locke
          PS Accounting Pty Ltd
          161 Rusden Street
          Armidale NSW 2350
          Australia


L W BURGESS: Liquidator Presents Wind-Up Report
-----------------------------------------------
At the final meeting of the members of L W Burgess  Pty Ltd
held June 10, 2008, Simon Paul, 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:

          Simon Paul
          Roberts & Morrow
          PO Box 112 (137 Beardy Street)
          Armidale NSW 2350
          Telephone: (02) 6774 8400
          Facsimile: (02) 6772 9338


LA & MG: Placed Under Voluntarily Liquidation
---------------------------------------------
LA & MG Holdings Pty. Ltd.'s members agreed on April 22, 2008,
to voluntarily liquidate the company's business.  Geoffrey Trent
Hancock was appointed to facilitate the sale of its assets.

The liquidator can be reached at:

          Geoffrey Trent Hancock
          BDO Kendalls Business Recovery & Insolvency
          (NSW-VIC) Pty Limited
          Level 19, 2 Market Street
          Sydney NSW 2000
          Australia


LIVERPOOL HOLDINGS: Appoints Mitchell Ball as Liquidator
--------------------------------------------------------
Liverpool Holdings Pty. Ltd.'s members agreed on April 22, 2008,
to voluntarily liquidate the company's business.  Frank Gooch
was appointed to facilitate the sale of its assets.

The liquidator can be reached at:

          Mitchell Ball
          Paladin Partners
          Level 3, 120 Sussex St
          Sydney NSW 2000
          Australia
          Telephone: (02) 9290 5300
          Facsimile: (02) 9290 5399


ST GEORGE: Completes Wholesale Funding Requirements for FY2008
--------------------------------------------------------------
St George Bank said that it has issued AU$9.2 billion of
committed term funding since Oct. 1, 2007. St George has now
completed 100 percent of its 2008 financial year term wholesale
funding requirements and has already raised 10 percent of its
estimated AU$11-AU$12 billion term whole funding requirements
for 2009.

                        Credit Quality

The company said its credit quality in the retail bank remains
excellent, with arrears performance particularly strong.  

St George continues to have no exposure to U.S. or domestic sub-
prime lending, CDOs or hedge funds.

Overall credit quality in business banking remains strong.  
Circa 95% of the portfolio is secured with the greater than 80
percent secured by property.

                           Capital

According to St George, it is well capitalized with its Tier 1
capital adequacy ratio of 6.75 percent as at May 31, 2008.  St
George minimum Tier 1 capital adequacy ratio is 6.25 percent.

                         Business Volumes

Retail deposit balance are continuing to experience positive
growth.  Growth for the eight months ended May 31, 2008, was
12.4 percent annualized.

Residential receivables growth for the eight months ended May
31, 2008, was 10.1 percent annualized.  St George is on track to
grow broadly in line with system.  St George expects growth to
slow from current levels in line with the moderation in system
growth.

Middle market receivables growth for the eight months ended May
31, 2008, was 30.3% annualized with a robust pipeline that
suggests growth remains on track to exceed 25 percent in the
financial year 2008.

Managed fund balances have fallen during the eight months ended
May 31, 2008, by 9.5 percent.  While balances have increased by
2.5 percent since March 31, 2008, balance growth in financial
year 2008 will continue to reflect the performance of investment
markets.

                             Margins

In the 2008 interim results, St George highlighted factors
benefiting the margin outlook for the second half of 2008.  They
included the full run rate impacts of:

   -- November 7 capital placement free funds benefit,

   -- benefit of repricing of all lending product
      categories, and

   -- benefit of increased spreads on retail deposits
      following increases in official interest rates in
      first half 2008.

These factors continue to contribute according to expectations
and the underlying margin outlook for the financial year 2008 is
expected to be less than 10 basis points.

              Lower Exposure to Equity Markets
               within Captive Mortgage Issuer

During May and June 2008, St George Insurance Australia Ltd
(SGIA) put in place hedges to reduce the effective equities
exposure within the investment portfolio to less than 15
percent, down from 33 percent as at March 31, 2008, and 48
percent as at September 30, 2007.

As at May 31, 2008, SGIA maintained total assets of AU$391
million in its investment portfolio.

                  Proposed Merger with Westpac

On May 26, 2008, St George and Westpac announced that, following
the successful completion of due diligence by both
organizations, they had signed a Merger Implementation Agreement
(MIA).

The company stated that it intends to recommend the merger
proposal subject to it remaining in the best interests of St
George shareholders.  This recommendation will also be subject
to an Independent Experts's report confirming proposal is in
shareholders' best interests and no superior proposal emerging.

St George shareholders will receive a scheme booklet, which will
contain full details of the proposal, including the basis for
the St George directors' recommendation and an independent
expert's report.  It is currently anticipated that this booklet
will be dispatched to shareholders by early October 2008,
subject to relevant regulatory approvals, and that St George
shareholders will vote on the proposed merger by early November
2008, with finalization of the merger envisaged for late
November 2008.

                       Outlook and Targets

St George remains on track to meet its EPS growth target of 8-
10% in 2008.  This target continues to exclude the impact of
hedging and derivatives, assumes a reasonably sound economic
environment and no further one-off material credit losses.

St George remains on track to meet its other targets around cost
to income, capital, credit quality and customer satisfaction as
outlined in its 2008 interim results.

St George also continues to experience solid momentum across
core businesses and product lines.

                         About Westpac

Headquartered in Sydney, New South Wales, Australia --
http://www.westpac.com.au/-- Westpac Banking Corporation     
provides a range of banking and financial services, including
retail, commercial, and institutional banking, as well as wealth
management services to individuals and business customers in
Australia, New Zealand, and the Pacific region.

                      About St George Bank

Headquartered in Kogarah, New South Wales, Australia --
http://www.stgeorge.com.au-- St. George Bank Limited is a          
banking company.  The Company operates in four business
segments: Retail Bank (RB), Institutional and Business Banking
(IBB), BankSA (BSA) and Wealth Management (WM).  RB is
responsible for residential and consumer lending, provision of
personal financial services including transaction services, call
and term deposits, small business banking and financial
planners.  This division manages retail branches, call centers,
agency networks and electronic channels, such as electronic
funds transfer at point of sale (EFTPOS) terminals, automated
teller machines (ATMs) and Internet banking.

On September 28, 2007, it disposed of its 100% interest in
Scottish Pacific Business Finance Holdings Pty. Limited.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific
on May 13, 2008, Moody's Investors Service reviewed, with
direction uncertain, the ratings of St.George Bank.  It is rated
Aa2 for deposits and senior debt, Prime-1 for short-term
obligations and carries a bank financial strength rating (BFSR)
of B.

In addition, Fitch Ratings placed St.George Bank Limited's
'B' Individual Rating and 'BB+' Support Rating Floor on Rating
Watch Positive.


ST LAURENCE: To Begin Annual Investor Roadshow in Late July
-----------------------------------------------------------
St Laurence Limited said it will be holding their annual
Investor Roadshow in late July and early August.  These sessions
will provide an opportunity for investors to find out more about
the St Laurence group’s current position and the performance of
particular investments.

The company said Kevin Podmore, Managing Director of St Laurence
and Executive Chairman of St Laurence Property & Finance and
John Crone, General Manager of The National Property Trust will
take investors through the presentation.

The briefings will be at these locations:



    Location       Date & Time     Venue
    --------            -----------     -----
    New Plymouth       Mon 21 July     Ballroom, Quality Hotel
                        11.00 am     Plymouth International
                                        Corner Courtney & Leach
                                        Streets, New Plymouth

    Palmerston North Tues 22 July    Elwood Room, Palmerston
                        9.30 am     North Convention Centre
                                        400 Main Street West,
                                        Palmerston North

    Kapiti             Tues 22 July    Theatre, Southward Car
                        2.30 pm     Museum Otaihanga Road,
                                        Paraparaumu

    Wellington       Wed 23 July     Ballroom, Duxton Hotel
                        10.00 am     170 Wakefield Street,
                                        Wellington

    Christchurch       Thu 24 July     Metropolitan Lounge,
                        10.00 am     Main Stand, Addington
                                        Events Centre, Twigger
                                        Street, Addington,
                                        Christchurch

    Dunedin             Fri 25 July     Hutton Theatre, Otago                     
                        10.00 am     Museum 419 Great King
                                        Street, Dunedin

    Invercargill       Mon 28 July     Takitimu Room,
                        10.00 am     Ascot Park Hotel,
                                        Corner of Tay Street &
                                        Racecourse Road,
                                        Invercargill

    Whangarei       Mon 4 Aug       Cafler Suite, Forum              
                        2.30 pm     North Rust Avenue,
                                        Whangarei

    North Harbour       Tues 5 Aug      Fuji Film Lounge,
                        10.00 am     Level 3, North Harbour
                                        Stadium Stadium Drive,
                                        Albany

    Auckland       Tues 5 Aug      Guineas One, Level 3,
                        2.30 pm     Ellerslie Racecourse
                                        80-100 Ascot Avenue,
                                        Greenlane, Auckland

    Hamilton       Wed 6 Aug       Balmoral Room
                        9.30 am     Glenview International
                                        Hotel & Conference
                                        Centre 254 Ohaupo Road,
                                        Glenview, Hamilton

    Tauranga       Thu 7 Aug       Trinity Rooms,
                        10.00 am        The Sebel Trinity Wharf
                                        51 Dive Crescent,
                                        Tauranga

    Napier             Fri 8 Aug       Assembly Room, Hawke’s
                        10.00 am        Bay Opera House 101
                                        Hastings Street South,
                                        Hastings

           Halts Lending Business to Avoid Loan Default

As reported in the Troubled Company Reporter – Asia Pacific on
June 25, 2008, St. Laurence Limited decided to exit from its
money lending activities and is to withdraw its prospectus
immediately.  This decision results from rapid changes in the
property lending markets affecting many financiers and
investors.

St Laurence's majority owner Mr. Kevin Podmore said that
although the company is not currently in default of its
obligations under its Trust Deed, given the current environment,
there is considerable risk that it might do so in the future.
St Laurence Limited has advised its trustee, Perpetual Trust
Limited, of its intention to seek its debenture holders’
approval for a scheme of repayment and for that purpose, it has
commissioned an independent advisor’s report so that details of
the scheme can be sent out to investors in July.

The scheme will be a proposal to repay the principal amount of
debenture stock outstanding on an installment basis.  The Board
believes that this is the most prudent course of action to
protect investors’ funds as it exits its lending operations.
Debenture holders will continue to receive interest until they
have been repaid in full.

Mr. Podmore says “The decision is consistent with St Laurence's
philosophy of putting investors' interests first.  There is
simply too much risk and uncertainty on our investors for us to
continue our money lending operations.  We have not run out of
cash but cash flows are at risk.”

The decision has no affect on St Laurence Property & Finance
Limited and holders of its debentures, bonds and mandatory
convertible notes.  Nor will it affect St Laurence Limited's
role as manager of The National Property Trust or its other
various funds management activities in relation to individual
property syndicates.

                        About St Laurence

St Laurence Limited (NZX: DPC) --
http://www.stlaurence.co.nz/st_laurence.php-- is a property-
based funds management and finance company with over $1.2
billion in assets under management.  Since 1995 it has been
developing and promoting investments, lending to property
borrowers, and managing its property assets and investments for
its investors.

  
WESTPOINT GROUP: ASIC to Pursue Fresh Proceedings
-------------------------------------------------
In November 2007, The Australian Securities and Investments
Commission (ASIC) announced proceedings under section 50 of the
ASIC Act against the directors (including Mr. Norman Carey) of
Westpoint companies for compensation of breach of directors
duties for an amount of AU$245 million.

Rather than commence new proceedings, ASIC took over existing
proceedings brought against the directors by the liquidators
(PricewaterhouseCoopers).  Mr. Carey challenged whether or not
ASIC could take over existing proceedings.

The Federal Court of Australia has agreed with Mr. Carey that
ASIC does not have power to carry on existing proceedings
commenced by the liquidator of Ann Street Mezzanine Pty Ltd and
York Street Mezzanine Pty Ltd.

Justice Ray Finkelstein held that while ASIC did not have power
to take over existing proceedings, ASIC could commence fresh
proceedings.

Justice Finkelstein said: “…in the circumstances of this case,
the answer is somewhat academic.  The parties accept that if Mr
Carey’s view prevails ASIC can and will simply begin new
proceedings in the name of each plaintiff.  Moreover, I have
pointed out to the parties that in such event, I would, most
likely, make an order deeming each step taken in the existing
proceedings to have been taken in the new proceedings…”

ASIC Chairman, Mr. Tony D’Aloisio, said “the court's decision
clarifies a point of law and we will immediately institute fresh
proceedings.  Let me reassure Westpoint investors that the
decision does not affect the substance of the cases which we are
pursuing in which we are seeking compensation for them.”

ASIC said it will commence new proceedings on behalf of Ann
Street Mezzanine and York Street Mezzanine and is in the process
of commencing proceedings to be filed by July 15, 2008 in
relation to a number of other mezzanine companies within the
Westpoint group.

The present proceedings will return to Court for directions in
relation to the other issues raised in Mr. Carey’s application
and on the question of costs.

As reported in the Troubled Company Reporter – Asia Pacific on
Nov. 13, 2007, the Australian Securities & Investments
Commission took legal action for the benefit of investors in
the Westpoint Group seeking compensation for their failed
investments.

This announcement follows ASIC's statement to the Federal Court
that the Commission had resolved to take over the running of
liquidators' proceedings commenced by the liquidator of Ann
Street Mezzanine Pty. Ltd. and York Street Mezzanine Pty.
Ltd. and to bring claims on behalf of other mezzanine companies.

The regulator believes the legal action, over a number of
phases, if successful, could provide benefits to as many as
3,600 out of some 4,300 investors in the failed property
development group.

                      About Westpoint

Headquartered in Perth, Western Australia, the Westpoint Group
-- http://westpoint.com.au/-- is engaged in property    
development and owns or manages retail and commercial properties
with a total value of over AU$300 million.  The Group's troubles
began in 2005 when the Australian Securities and Investments
Commission commenced investigations on 160 companies within the
Westpoint Group.  ASIC's investigation led to ASIC initiating
action in late 2005 in the Federal Court of Australia against a
number of mezzanine companies in the Westpoint Group, including
winding up proceedings.  ASIC contends that Westpoint projects
are suffering from significant shortfall of assets over
liabilities so that hundreds of investors are at serious risk of
not receiving repayment of their investments.  ASIC also sought
wind-up orders after the Westpoint companies failed to comply
with its requirement to lodge accounts for certain financial
years.  These wind-up actions are still continuing.

In February 2006, the Federal Court in Perth issued a wind-up
order against Westpoint Corporation Pty. Ltd.  The ASIC had
applied to wind up the company on grounds of insolvency.  The
ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.  
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.

The Westpoint Group's collapse is considered by many as the
largest of its type in recent years, with small investors being
the biggest group affected.  Investors are currently joining
forces to commence a class action against Westpoint and its
advisors.


UNIFIED CONSTRUCTIONS: Appoints Mitchell Ball as Liquidator
-----------------------------------------------------------
Unified Constructions Pty. Ltd.'s members agreed on April 21,
2008, to voluntarily liquidate the company's business.  Frank
Gooch was appointed to facilitate the sale of its assets.

The liquidator can be reached at:

          Mitchell Ball
          Paladin Partners
          Level 3, 120 Sussex St
          Sydney NSW 2000
          Australia
          Telephone: (02) 9290 5300
          Facsimile: (02) 9290 5399


UNITED UNDERWRITERS: Appoints Stephen Humphrys as Liquidator
------------------------------------------------------------
United Underwriters Pty. Ltd.'s members agreed on April 17,
2008, to voluntarily liquidate the company's business.  Mitchell
Ball was appointed to facilitate the sale of its assets.



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

AGILE PROPERTY: S&P Affirms 'BB' Rating with Stable Outlook
-----------------------------------------------------------
Standard & Poor's Ratings Services had revised its outlook on
Agile Property Holdings Ltd. to stable from positive, and
affirmed its 'BB' long-term corporate credit rating on the
company. At the same time, Standard & Poor's affirmed the 'BB'
issue rating on Agile's outstanding bond issue.

"The outlook revision reflects the combination of more adverse
market conditions in the areas where Agile operates and the
company's weaker-than-expected liquidity buffers.  These issues
have materially reduced the probability that the rating on Agile
will be raised over the next six to 12 months," said Standard &
Poor's credit analyst Bei Fu.

The rating affirmation reflects the rating agency's expectation
that Agile will maintain an adequate level of liquidity,
underpinned by a recently scaled-back land expansion plan,
itself reflecting a reassuring degree of strategic flexibility
on the part of management in the face of changing market
conditions.  The company's key financial metrics should be
managed at the current rating level, supported by a sizable,
low-cost land bank and an established presence in the Pearl
River Delta region of China.

These strengths are partly offset by Agile's limited revenue
source diversity, ongoing risk associated with project execution
in new cities, and the evolving regulatory environment in China.

Agile's sizable land bank reduces the risk of a depleting land
bank to support future business growth.  The land reserve of
28.8 million square meters as at April 30, 2008, should be
sufficient to support future development for at least eight
years.  The low-cost land bank also provides Agile with a good
financial buffer when selling prices contract.

The heightened market pressure triggered by the government's
credit-tightening measures should have some impact on Agile's
overall sales performance.  This mainly reflects the company's
heavy revenue concentration in the Peal River Delta region, an
area that the recent credit measures have particularly affected.

Execution risk associated with Agile's expansion into new cities
has declined, given the company's good one-year track record.   
Nevertheless, any benefit may be overshadowed by the uncertainty
over the projects being developed in Chengdu and Chongqing,
following the recent earthquake in Sichuan.


ASCALADE COMM: Plan of Compromise or Arrangement Gets Court OK
--------------------------------------------------------------
Ascalade Communications Inc. obtained an order from the Supreme
Court of British Columbia approving the plan of compromise or
arrangement in connection with the on-going legal proceedings
filed by Ascalade and Ascalade Technologies Inc. in Canada under
the Companies' Creditors Arrangement Act.

On June 17, 2008, at the Meeting of Creditors, the Plan received
100% approval of the creditors who voted to approve the Plan.  A
stay of proceedings with respect to any actions which have or
might be brought against the companies will remain in effect
until all of the assets of the companies are sold and the net
proceeds distributed to the stakeholders of the companies.

The Order authorizes Ascalade, at any time after July 25, 2008,
to apply to the Toronto Stock Exchange to have the trading of
the common shares of Ascalade suspended from trading and
delisted.

Any recovery in the CCAA for creditors and other stakeholders of
the companies, including shareholders, is uncertain and is
highly dependent upon a number of factors, including the
recovery from the sale of the factory, equipment and inventory
in the PRC and the outcome of the Scheme in Hong Kong.

A copy of the Plan of Compromise or Arrangement is available for
free at http://ResearchArchives.com/t/s?2ec7

                About Ascalade Communications Inc.

Based in Richmond, British Columbia, Ascalade Communications
Inc. (TSE:ACG) -- http://www.ascalade.com/ -- is an innovative  
product company that designs, develops and manufactures digital
wireless and communication products.  The company deliver
products by offering its partners and customers complete
vertical integration, from product design and development to
final production.  The company's products include digital
cordless phones, Voice over Internet Protocol phones, digital
wireless baby monitors and digital wireless conference phones.
Ascalade products have been distributed in more than 35
countries and under 80 regional brands.  Ascalade also has
facilities in Qingyuan, China, Hong Kong and a sales office in
Hertfordshire, United Kingdom.

On April 29, 2008, Jervis Rodrigues, senior vice-president of
Deloitte & Touche Inc., filed separate petitions for protection
under Chapter 15 of the U.S. Bankruptcy Code on behalf of
Ascalade Communications Inc. and its debtor-affiliate (Bankr.
N.D. Ill. Case Nos. 08-10612 and 08-10616).  Jeffrey G. Close,
Esq. at Chapman and Cutler LLP represents the Petitioner in the
Chapter 15 case.  Ascalade's financial condition as of September
2007 showed total assets of $99,630,000 and total debts of
$40,410,000.


CHINA SOUTHERN: Names Zhang Wei as Supervisor
---------------------------------------------
China Southern Airlines Company Limited appointed Zhang
Wei was appointed as a supervisor of the Fifth Session of the
Supervisory Committee of the company on June 25, 2008 after
approval by shareholders of the company at the annual general
meeting.

Ms. Wei, aged 41, graduated from Tianjin University majoring in
investment skills & economics.  She holds a master of science in
chemical engineering.  Ms. Wei started her career in September
1988, and served as the General Manager Assistant and Vice
General Manager of the Finance Department of thecompany, the
Vice Director of the Supervisory Bureau and the Director of
the Audit Division of China Southern Air Holding Company
("CSAHC"), and the General Manager and Party Secretary of China
Southern Airlines Group Finance Company Limited.

She has been the Vice Director of the Supervisory Bureau and the
Director of the Audit Division of CSAHC since October 2007.  She
has also been the supervisor of China Southern Airlines Group
Finance Company Limited, Southern Airlines (Group) Import and
Export Trading Company and Southern Airlines Culture and Media
Co., Ltd. since October 2007, March 2008 and April 2008
respectively.

Ms. Zhang has not held any directorships in or been a supervisor
of other publicly listed companies in the last
three years.

The term of service of Ms. Zhang commences from June 25, 2008
until the expiry of the term of service of the Fifth Session of
the Supervisory Committee.  The Supervisory Committee will
exercise the power, given by the shareholders of the Company, to
determine the remuneration of Ms. Zhang with reference to her
duties and responsibilities.

                      About China Southern

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

                           *     *     *

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


CHINA SOUTHERN: Launches Credit Card With ICBC
----------------------------------------------
China Southern Airlines and Industrial and Commercial Bank of
China (ICBC) launched a credit card, Xinhua News reports.

The credit card has individual and business cards models.

According to the report, card holders will get mileage bonus,
big-amount aviation accident insurance and other services from
China Southern.

ICBC provides various financial services for the airline,
including pilot training loan, e-ticket business, aircraft
guarantee business, the report says.

                      About China Southern

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

                          *     *     *

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



HOPSON DEVELOPMENT: S&P Cuts Long-Term Corporate Rating to 'BB-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on China-based property developer Hopson
Development Holdings Ltd. to 'BB-' from 'BB'.  The outlook is
stable.  At the same time, Standard & Poor's lowered its issue
ratings on Hopson's US$350 million 8.125% notes due 2012 and on
its convertible bond to 'B+' from 'BB'.  All the ratings were
removed from CreditWatch, where they had been placed with
negative implications on April 21, 2008.

"We lowered the rating on Hopson to reflect the company's
escalating financial and liquidity pressure.  This pressure is
attributable to Hopson's continued aggressive spending on land
acquisitions, despite slower-than-expected cash generation so
far this year, and increasing debt.  The company's liquidity is
likely to remain tight for the rest of this year," said Standard
& Poor's credit analyst Bei Fu.

The issue ratings have been lowered one notch down from the
corporate credit rating because Hopson's ratio of priority debt
to total asset has exceeded our 15% threshold for the past four
consecutive years, and we don't expect this situation to reverse
in the next two years.

In the past year, Hopson's CEO and CFO have both left the
company.  It is yet to be proved whether the newly appointed top
management team can execute an aggressive growth strategy in a
year when market conditions are challenging.

The ratings on Hopson also reflect the cyclical and competitive
Chinese property market, with an evolving regulatory
environment.  The above risks are partly mitigated by the
company's proven track record of property development in first-
tier cities, such as Beijing, Shanghai, and Guangdong.  Its
market position and diversification are above-average among its
rated peers.  It had a sizable land bank of over 21 million
square meters in saleable gross floor area at the end of 2007.

Hopson's earnings in 2007 were in line with our expectation, but
it recorded weaker liquidity and higher debt.  Due to aggressive
land acquisitions, its cash balance was Hong Kong dollar (HK$) 2
billion and total debt grew 68% to HK$12.8 billion, much weaker
than our expectations.


IVANHOE ENERGY: To Increase Private Placement to C$88 Million
-------------------------------------------------------------
Ivanhoe Energy Inc. is increasing the private placement
disclosed on June 6 to C$88 million due to significantly
increased expressions of interest from institutional investors.  
The price for the offering has been set at C$3.00 per special
warrant.  Ivanhoe Energy announced on June 6 that it was
intending to raise up to C$50 million.

Private placement allocations based on expressions of interest
received to date remain subject to completion of formal
documentation.  The proceeds will be used by Ivanhoe Energy to
make the initial payment of C$30 million required under the
company's agreement with Talisman Energy Canada to acquire
Talisman's interests in three leases in the Athabasca oil sands
region in the Province of Alberta, Canada, which was announced
on May 29, 2008.  Ivanhoe Energy plans to use the balance of the
funds for general working capital purposes and for its planned
development activities on the oil sand leases.

Subject to regulatory approval and satisfaction of all
conditions precedent, the private placement is expected to close
contemporaneously with the closing of the acquisition of the oil
sand leases.

                       About Ivanhoe Energy

Based in Vancouver, British Columbia, Canada, Ivanhoe Energy
Inc. (TSX: IE; Nasdaq: IVAN) -- http://www.ivanhoe-energy.com/
-- is an independent international heavy oil development and
production company focused on pursuing long-term growth in its
reserve base and production.  

Ivanhoe Energy plans to utilize technologically innovative
methods designed to significantly improve recovery of heavy oil
resources, including the application of the patented rapid
thermal processing process for heavy oil upgrading and enhanced
oil recovery techniques.  In addition, the company seeks to
expand its reserve base and production through conventional
exploration and production of oil and gas.  Finally, the company
is exploring an opportunity to monetize stranded gas reserves
through the application of the conversion of natural gas-to-
liquids using a technology licensed from Syntroleum Corporation.  
The company's core operations are in the United States and
China.

                        Going Concern Doubt

Ivanhoe Energy Inc. believes that existing conditions cast
substantial doubt about its ability to continue as a going
concern.  The company incurred a net loss of $8.5 million for
the three-month period ended March 31, 2008, and as at March 31,
2008, had an accumulated deficit of $168.5 million and negative
working capital of $8.8 million.  

In addition, the company currently anticipates incurring
substantial expenditures to further its capital investment
programs and the company's cash flows from operating activities
will not be sufficient to both satisfy its current obligations
and meet the requirements of these capital investment programs.

Moreover, recovery of capitalized costs related to potential
HTL(TM) and GTL projects is dependent upon finalizing definitive
agreements for, and successful completion of, the various
projects, the outcome of which is uncertain.


XINHUA FINANCE: XFMedia CEO and Directors Buy Company Shares
------------------------------------------------------------
XFMedia, a unit of Xinhua Finance Limited, disclosed the
purchases of the company's American depository shares (ADSs) in
the open market in a manner compliant with applicable U.S.
securities regulations by CEO Fredy Bush as well as independent
directors David Olson, Larry Kramer, David Green and John
Springer.

Ms. Bush purchased 50,000 ADSs at an average price of US$2.25 on
June 23, 2008.  Mr. Olson purchased 100,000 ADSs at an average
price of US$2.63 on various dates between May 27, 2008 and June
20, 2008.  Mr. Kramer purchased 15,000 ADSs at an average price
of US$ 2.57 on June 12, 2008, in addition to the 10,000 ADSs
purchased at an average price of US$2.20 on March 17, 2008.

Mr. Green purchased 7,600 ADSs at an average price of US$2.63 on
June 16, 2008.  Mr. Springer purchased 4,000 ADSs at an average
price of US$2.57 on June 16, 2008.

Following these transactions, Ms. Bush, Mr. Olson, Mr. Kramer,
Mr. Green and Mr. Springer respectively hold 4,649,166, 100,000,
25,000, 7,600, and 4,000 ADSs. Each ADS represents two common
shares of the Company.

"XFMedia has grown rapidly since we went public last year,
establishing a strong and unique China media platform," said CEO
Ms. Bush.  "It is our view that the stock is undervalued at
these levels.  We as individuals have bought shares to reflect
both our commitment to the business and our optimism about its
future prospects."

"We are working on continued improvement of our margins and
building our existing business, while continuing to look for
good acquisition prospects that will further enhance our bottom
line," Ms. Bush added.

                    About Xinhua Finance Media

Xinhua Finance Media, a unit of Xinhua Finance Limited, is a
leading media group in China with nationwide access to the
upwardly mobile demographic.  Through its synergistic business
groups, Broadcast, Print and Advertising, XFMedia offers a total
solution empowering clients at every stage of the media process
and connecting them with their target audience.  Its unique
platform covers a wide range of media.

                   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 of June 17, 2008, the company still holds Moody's "B2" LT
Family and Senior Unsecured Debt Ratings.   It also currently
holds S&P's LT Credit Rating at "B."



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

AMTAC INT'L: Court to Hear Wind-Up Proceedings on Aug. 13
---------------------------------------------------------
On June 10, 2008, Amtac International Company Limited, filed a
petition to have its operations wound up.

The High Court of Hong Kong will convene at 9:30 a.m. on
August 13, 2008, to hear the petition.

The petitioners' solicitors can be reached at:

          Wilkinson & Grist
          Prince's Building, 6th Floor
          Charter Road, Central
          Hong Kong


GANGFORD INT'L: Court to Hear Wind-Up Proceedings on July 9
-----------------------------------------------------------
On April 24, 2008, Keung, Keung Shing, filed a petition to have
Gangford International Limited's operations wound up.

The High Court of Hong Kong will convene at 9:30 a.m. on
July 9, 2008, to hear the petition.

The petitioners' solicitors can be reached at:

          Bernard Wong & Co.
          Takshing House, Rooms 1101-6
          20 Des Voeux Road Central
          Hong Kong


HK NEOPOINT: Court to Hear Wind-Up Proceedings on July 30
---------------------------------------------------------
On May 28, 2008, Li Shun Lun, filed a petition to have HK
Neopoint Communication Co., Limited's operations wound up.

The High Court of Hong Kong will convene at 9:30 a.m. on
July 30, 2008, to hear the petition.

The petitioners' solicitors can be reached at:

          Christina Hadiwibawa
          Revenue Tower, 30th Floor
          5 Gloucester Road
          Wanchai, Hong Kong


HUA YANG: Court to Hear Wind-Up Proceedings on July 2
-----------------------------------------------------
On April 24, 2008, Bank of China (Hong Kong) Limited, filed a
petition to haveHua Yang Printing Holdings Co., Limited's
operations wound up.

The High Court of Hong Kong will convene at 9:30 a.m. on
July 2, 2008, to hear the petition.

The petitioners' solicitors can be reached at:

          Jones Day
          Edinburg Tower, 29th Floor
          The Landmark, 15 Queen's Road
          Central, Hong Kong


PENINSULA BOSS: Court to Hear Wind-Up Proceedings on Aug. 6
-----------------------------------------------------------
On June 3, 2008, Bank of China (Hong Kong) Limited, filed a
petition to have Peninsula Boss Limited's operations wound up.

The High Court of Hong Kong will convene at 9:30 a.m. on
August 6, 2008, to hear the petition.

The petitioners' solicitors can be reached at:

          Gallant Y.T. Ho & Co.
          Jardine House, 5th Floor
          No. 1 Connaught Road
          Central, Hong Kong


PROMAIL INT'L: Creditors' Proofs of Debt Due on July 4
------------------------------------------------------
The creditors of Promail International Limited are required to
file their proofs of debt by July 4, 2008, to be included in the
company's dividend distribution.

The company's liquidators are:

         Roderick John Sutton
         Desmond Chung Seng Chiong
         Hong Kong Club, 14th Floor
         3A Charter Road, Central
         Hong Kong


SAN WO: Court to Hear Wind-Up Proceedings on July 9
---------------------------------------------------
On May 7, 2008, Cheng Choi Hung, filed a petition to have San Wo
Restaurant Company Limited's operations wound up.

The High Court of Hong Kong will convene at 9:30 a.m. on
July 9, 2008, to hear the petition.

The petitioners' solicitors can be reached at:

          Christina Hadiwibawa
          Revenue Tower, 30th Floor
          5 Gloucester Road
          Wanchai, Hong Kong


UNITED PACIFIC: Court to Hear Wind-Up Proceedings on July 18
------------------------------------------------------------
On May 28, 2008, United Pacific Enterprises Limited, filed a
petition to have United Pacific Trading Limited's operations
wound up.

The High Court of Hong Kong will convene at 9:30 a.m. on
July 18, 2008, to hear the petition.

The petitioners' solicitors can be reached at:

          Wilkinson & Grist
          Prince's Building, 6th Floor
          Charter Road, Central
          Hong Kong


YATIN DEV'T: Court to Hear Wind-Up Proceedings on Aug. 13
---------------------------------------------------------
On June 5, 2008, Marble Holding Limited, filed a petition to
have Yatin Development Limited's operations wound up.

The High Court of Hong Kong will convene at 9:30 a.m. on
August 13, 2008, to hear the petition.

The petitioners' solicitors can be reached at:

          Sit Fung Kwong & Shun
          Gloucester Tower, 18th Floor
          The Landmark, 11 Pedder Street
          Central, Hong Kong



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

A INFRASTRUCTURE: CRISIL Rates Bank Facilities at “BB+”
-------------------------------------------------------
CRISIL has assigned these bank loan ratings on the various bank
facilities of A Infrastructure Ltd (AIL):

   Rs.183.0 Mil. Cash Credit Limit  
                 BB+/Stable (Assigned)

   Rs.109.0 Mil. Working Capital Demand Loan
                 BB+/Stable(Assigned)

   Rs.78.0 Mil.  FCNR(B)  
                 BB+/Stable(Assigned)

   Rs.70.0 Mil.  Overdraft  
                 BB+/Stable(Assigned)

   Rs.342.5 Mil. Term Loan  
                 BB+/Stable(Assigned)

   Rs.345.0 Mil. Letter of Credit  
                 P4(Assigned)

   Rs.105 Mil.   Bank Guarantee  
                 P4(Assigned)

The ratings reflect the company’s sub-par financial risk profile
with high gearing, aggressive capital expenditure (capex) plans
and high working capital requirements. The rating also factors
in the exposure towards Capital Commerce Ltd for Aurangabad
plant and susceptibility of the company’s margins to
fluctuations in asbestos fibre and cement prices.  These rating
weaknesses are however, partly offset by the established
position of the company in AC pressure pipes segment, and
buoyant demand for AC Pressure pipes.

Outlook: Stable

CRISIL expects AIL to maintain its leadership position in AC
pressure pipes segment.  The outlook could be revised to
‘Positive’ in case of sustained improvement in profitability and
turnaround of sheet division (making losses as of now).  
Conversely outlook may be revised may be revised to ‘Negative’
in case of any large debt funded capex or significant decline in
operating margins leading to deterioration in the debt
protection measures.

                   About A Infrastructure Ltd

A Infrastructure Ltd (formerly Shree Pipes Ltd) was promoted in
the joint sector by Mr B K Kanoria and Rajasthan State
Industrial Investment corporation (RIICO) in 1980 for
manufacture of Asbestos cement pressure pipes.  The company
started its commercial production in July 1985.  The company was
manufacturing AC pressure pipes till 2006 after which it started
manufacturing AC roofing sheets also.  AIL has a manufacturing
plant in Bhilwara and it has also taken two more plants in
Ahmedabad and Auarangabad in on lease from Gujrat Composite Ltd
and Roofit Industries Ltd respectively to gain a close to
monopolistic position in AC Pressure pipes industry.  The
company is using the state govt. approved “MAAZA” technology for
production of AC Pressure pipes which is demanded by Govt sector
for water supply projects, it also manufactures pipes for bore-
well where steel pipes were used earlier. As on March 31, 2007,
AIL had a net worth of ~Rs.210 million; it reported a profit
after tax (PAT) of Rs.60 million on revenues of Rs.1.60 billion
for 2006-07.


GENERAL MOTORS: Investors See 75% Chance of Default in 5 Years
--------------------------------------------------------------
According to Anastasija Johnson at Reuters, credit investors see
a 75% chance General Motors Corp. would default on its debt in
the next five years despite GM's assurance on Thursday that it
has sufficient liquidity.

Various reports note that GM's shares sank to a 53-year low on
Thursday on concerns about liquidity, equity dilution and a
potential dividend cut, heightening speculation that GM doesn't
have enough cash to finance its turnaround.  The Wall Street
Journal notes that GM stock fell $1.38, or 11%, to $11.43 in 4
p.m. composite trading on the New York Stock Exchange.

GM's syndicated loans due Nov. 27, 2013 trade at 91.96 cents on
the dollar as of June 20, 2008, according to loan pricing data
compiled by the Journal.  The instrument carries interest at
LIBOR plus 275 basis points, and Ba3 loan rating from Moody's
and BB- rating from S&P.

John D. Stoll and Serena Ng at The Wall Street Journal relates
that, in a research note Thursday, Goldman Sachs said it
believes GM will try to raise more cash, which could lead to
"significant shareholder dilution" and possibly a cut to the
company's dividend.

GM indicated there are no debt covenants tied to the market
value of the company, WSJ notes.

WSJ notes that, in an interview last month, George Fisher, GM's
lead independent director, said a takeover offer isn't a concern
given the large amount of debt GM carries on its books.  WSJ
relates that Kenneth A. Elias, a partner at Maryann Keller &
Associates, an automotive-consulting firm, said any buyer would
have to invest billions of dollars beyond the purchase price to
restructure GM and pay off its liabilities.

GM, according to WSJ, is expected to end the second quarter with
about $20,000,000,000 in cash, the lowest balance it has
reported in recent years.  Analysts and ratings firms believe
the company will go through at least $10 billion this year, WSJ
relates.

Buckingham Research analyst Joe Amaturo, according to WSJ, cut
his target on the stock to $8 on Tuesday, saying, "We continue
to believe GM has liquidity issues and will have to raise
capital given the significant automotive cash burn that GM is
likely to experience in 2009 and 2010."

The cost to insure GM's debt with credit default swaps rose to
33.5% upfront, or $3,350,000 per year for five years to insure
$10,000,000 in debt, plus annual payments of 500 basis points,
Reuters says, citing Markit.

"What's most concerning about GM is that no one has a good sense
of how its (business) shift is going to affect its
profitability," said Geoffrey Gwin, principal of Group G Capital
Partners, a New York credit hedge fund, according to WSJ.  Gwin,
WSJ relates, added that a change in the mix of vehicles GM
produces, toward more cars and fewer sport-utility vehicles and
light trucks, coupled with absolute declines in its auto sales
and rising oil prices are causing a lot of uncertainty among
investors.

Business Week says one GM executive, at a few recent meetings,
floated the idea of a GM-Ford merger, but it was deemed a
counter-productive distraction.

                 About General Motors Corp.

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs  
about 266,000 people around the world and manufactures cars and
trucks in 35 countries.  In 2007, nearly 9.37 million GM cars
and trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

General Motors Corporation offers products under the Chevrolet
brand in India through its wholly owned subsidiary, General
Motors India.  GM India has 95 sales points and over 110 service
centers.

At March 31, 2008, GM's balance sheet showed total assets of
$145,741,000,000 and total debts of $186,784,000,000, resulting
in a stockholders' deficit of $41,043,000,000.  Deficit, at
Dec. 31, 2007, and March 31, 2007, was $37,094,000,000 and
$4,558,000,000, respectively.

                          *     *     *

As reported in the Troubled Company Reporter on June 24, 2008,
DBRS has placed the ratings of General Motors Corporation and
General Motors of Canada Limited Under Review with Negative
Implications.  The rating action reflects the structural
deterioration of the company's operations in North America
brought on by high oil prices and a slowing U.S. economy.

Standard & Poor's Ratings Services is placing its corporate
credit ratings on the three U.S. automakers, General Motors
Corp., Ford Motor Co., and Chrysler LLC, on CreditWatch with
negative implications, citing the need to evaluate the financial
damage being inflicted by deteriorating U.S. industry
conditions--largely as a result of high gasoline prices.  
Included in the CreditWatch placement are the finance units Ford
Motor Credit Co. and DaimlerChrysler Financial Services Americas
LLC, as well as GM's 49%-owned finance affiliate GMAC LLC.

As related in the Troubled Company Reporter on June 5, 2008,
Standard & Poor's Ratings Services said that its ratings on
General Motors Corp. (B/Negative/B-3) are not immediately
affected by the company's announcement that it will cease
production at four North American truck plants over the next two
years.  These closures are in response to the re-energized shift
in consumer demand away from light trucks.  GM previously said
only one shift was being eliminated at each of the four truck
plants.  Production is being increased at plants producing small
and midsize cars, but the cash contribution margin from these
smaller vehicles is far less than that of light trucks.


GENERAL MOTORS: Fitch Trims ID Rating to B-; Puts Negative Watch
----------------------------------------------------------------
Fitch has downgraded the Issuer Default Rating of General Motors
Corporation to 'B-' from 'B', and assigned a Rating Outlook
Negative.  The downgrade results from weak economic conditions,
the dramatic shift to fuel efficient vehicles and the resulting
cash drains at GM that are expected to persist at lest through
2009.  Fitch expects that cash drains in 2008 will exceed
$10 billion, and that new financing activity will be required
over the next 18 months to keep GM's cash position above the
minimum comfort level of $12 - $14 billion.

GM's product portfolio remains misaligned with market demand,
and the rapid shift to more fuel-efficient vehicles over the
last several months has exacerbated GM's market position.  As a
result, ever-deeper restructuring will be required, and will
need to be accomplished on an accelerated time frame.  Recently
announced production cuts will result in meaningful share and
revenue declines in North America in 2008 and 2009, heightening
the challenge and the urgency to drive down costs at a pace that
exceeds revenue declines.  International operations in China,
Latin America and Eastern Europe continue to perform well, and
to generate healthy excess cash flow, although persistently
higher commodity costs will continue to impair margins globally
through 2010.

Factors that could trigger a downgrade:

  -- Projections that show GM would dip below $15 billion in
     cash.
  -- Inability to refinance s/t maturities over the next 18
     months.

  -- Expectations that North American gross margins continue to
     shrink into 2009.

  -- Material reversal in GM's overseas operating results.
  -- Indications that GMAC's access to cost-effective financing
     have diminished or if GM is required to provide material
     financial support to GMAC.

Macro-economic factors and the shift in consumer buying
preferences have resulted in a severe drop in unit volumes among
the domestic manufacturers, particularly in the more profitable
segments.  Although the weak construction market has produced a
steep cyclical decline in pickup sales, industry unit volumes
have moved outside of the range attributed solely to
recessionary conditions in the housing market, confirming that a
more permanent shift in market is taking place.  A rebound in
industry pickup sales would certainly benefit GM volumes and
profitability at the time it occurs, but the impact is likely to
be more muted and more distant than originally anticipated.  The
recent announcement that GM will close an additional four
assembly plants was expected, but reflect the fact that lost
volumes are permanent, limiting the potential cash flow capacity
over the longer term.

GM has made material improvements in its cost structure,
progress that will continue with an additional hourly workforce
reduction of 19,000 employees by July 1.  In 2010, GM will
benefit from savings associated with the recent UAW healthcare
agreement, and an eventual rebound in economic conditions.  
Supplier and labor issues, such as the recent American Axle
strike, the continuing Delphi situation, and disputes with the
UAW on local operating agreements have drained resources and
deferred efficiency and productivity savings.

Of primary concern is continuing financial deterioration at GMAC
due primarily to the turmoil in residential mortgage markets.  
This has necessitated additional financial support from GM in
the form of capital injections and guarantees.  While GMAC
continues to work through issues in its residential mortgage
business, Fitch believes that core automotive finance
fundamentals are also showing weakness, and that these trends
are expected to persist throughout 2008.  While Fitch
acknowledges GMAC's recent bank line restructuring, which should
provide necessary near-term funding, Fitch is concerned that a
sustained lack of liquidity, particularly in the securitization
markets, may reduce GMAC's ability to provide financing for GM
customers.  In this scenario, the Issuer Default Rating of GM
could be reviewed with an expectation of a downgrade to 'CCC'.

Entering 2008, Fitch anticipated that the rate of increase in
commodity costs would slow, thereby allowing more of the
company's restructuring actions to be realized.  Instead,
commodity prices increases have continued to escalate in steel,
other metals, and a wide variety of inputs that are expected to
continue in the short term.  Over the longer term, these costs
will have to be recouped at least in part through higher
pricing, which will remain a challenge.

Fitch expects that cash drains in 2008 will exceed $10 billion
prior to any capital raising, and negative cash flow will
persist at least through 2009.  Raising capital in excess of
maturities over the next two years is probable, but to a very
limited extent given the state of the capital markets, the
company's financial position, limited availability of
securitizable domestic assets and GM's market capitalization.  
GM also retains access to approximately $7 billion in revolving
credit agreements.  Fund-raising options include the likely
extension of VEBA-related debt owed to the UAW, financing
related to profitable and growing international operations,
equity-related offerings and other modest asset-based
financings.

GM's balance sheet over the near term is likely to reflect more
than $50 billion in consolidated debt (including VEBA-related
debt).  Interest expense will continue to rise, reflecting
higher debt and higher pricing, and Fitch expects that interest
expense will exceed $3.5 billion over the near term.  Together
with capital expenditure requirements, this represents an
increasing financial hurdle given the continued shrinking of
GM's domestic earnings capacity.  International operations have
become a solid contributor to the company's cash flow and credit
profile, but free cash flow from these operations will not be
sufficient to offset North American losses and the growth in
financial obligations.  European operations are also expected to
be hurt by high oil prices and high commodity costs.

Fitch has downgraded these ratings:

General Motors
  -- IDR to 'B-' from 'B';
  -- Senior unsecured debt to 'CCC+/RR5 from 'B-/RR5';
  -- Senior Secured to 'BB-/RR1' from 'BB/RR1'.

General Motors of Canada
  -- IDR to 'B-' from 'B';
  -- Senior unsecured to 'CCC+/RR5' from 'B-/RR5'.

                 About General Motors Corp.

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs  
about 266,000 people around the world and manufactures cars and
trucks in 35 countries.  In 2007, nearly 9.37 million GM cars
and trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

General Motors Corporation offers products under the Chevrolet
brand in India through its wholly owned subsidiary, General
Motors India.  GM India has 95 sales points and over 110 service
centers.

At March 31, 2008, GM's balance sheet showed total assets of
$145,741,000,000 and total debts of $186,784,000,000, resulting
in a stockholders' deficit of $41,043,000,000.  Deficit, at
Dec. 31, 2007, and March 31, 2007, was $37,094,000,000 and
$4,558,000,000, respectively.


NELFIN (INDIA): Reserve Bank Cancels Registration Certificate
-------------------------------------------------------------
The Reserve Bank of India canceled the certificate of
registration granted to Nelfin (India) Private Limited for
carrying on the business of a non-banking financial institution.

Following cancellation of the registration certificate, Nelfin
(India) Private Limited, cannot transact the business of a non-
banking financial institution.

By the powers conferred under Section 45-IA (6) of the Reserve
Bank of India Act, 1934, the Reserve Bank can cancel the
registration certificate of a non-banking financial company.  
The business of a non-banking financial institution is defined
in clause (a) of Section 45-I of the Reserve Bank of India Act,
1934.

Nelfin (India) Private Limited has its registered office at 1st
Floor, Dayakara Reddy Buildings, in Nellore.


* CRISIL: Subsidy May Weaken Fertilizer Makers' Credit Profiles
---------------------------------------------------------------
CRISIL says fertilizer manufacturers' credit profiles may weaken
over the medium term because of increasing subsidy receivables.  
Subsidy levels are growing because of rising input costs coupled
with stable selling prices.  As these subsidy levels grow, so
does the likelihood of delays in disbursements, because of the
strains that fertilizer subsidies impose on government finances.  
The resulting working capital pressures will manifest themselves
in pressure on credit profiles.  According to CRISIL, the cracks
could begin from 2008-2009 itself.

CRISIL says high input prices in 2008-2009 will result in
increased subsidies for fertilizer manufacturers.  Selling
prices for fertilizers remain largely constant, while imported
fertilizers and raw materials for fertilizer manufacturers grow
ever more expensive, resulting in ballooning subsidy levels.  In
fact, largely because of high input prices coupled with high
international prices of urea and DAP, the government's
fertilizer subsidy bill is likely to surge to nearly Rs.950
billion in 2008-2009, more than twice the figure for the last
fiscal; against this, the budgeted fertilizer subsidy for 2008-
2009 is only Rs.310 billion.

In this scenario, CRISIL states that the regularity with which
subsidies are paid will depend almost entirely on the
government's fiscal position.  

Mr. Raman Uberoi, Senior Director, CRISIL Ratings, says,
“Subsidy settlements are likely to be increasingly delayed
during the second half of 2008-2009, after the government's
subsidy budget has been exhausted.  Fertilizer companies will
have to make up the difference through increasing working
capital borrowing; in a high interest rate regime, this will
exert considerable downward pressure on coverage ratios, and
thereby on their overall credit profiles.”

Despite the many difficulties that government faces, CRISIL
believes that subsidy settlements will not be delayed
indefinitely.  Fertilizer producers are heavily dependent on
subsidy reimbursements for meeting their working capital
requirements; beyond a point, delays in reimbursements could
result in a slowdown in domestic fertilizer production as
manufacturers cut back or stop production, an eventuality that
the government would like to avoid in the months running up to
general elections.

The government will also be keen to avoid higher fertilizer
imports to meet domestic demand.  Says Sudip Sural, Head,
Corporate and Government Ratings, CRISIL, “International urea
prices are higher than retention prices being paid to domestic
producers; more imports will only add to the government's
fertilizer burden.  Hence, the government will try to avoid more
imports, and will have a strong incentive to keep domestic
production running.”

Already, India's dependence on imported di-ammonium phosphate
(DAP) and urea has increased steadily in recent years.  In 2007-
2008, urea imports were around 6.9 million tonnes, an increase
of 47 percent from the previous year.  Likewise, DAP imports
meet a significant 37 percent of India's total demand, despite a
marginal reduction in import levels to 2.7 million tonnes in
2007-2008 from 2.9 million tonnes in 2006-2007.  The problems
relating to increasing imports have been aggravated by
substantial increases in international prices.  International
urea prices increased to US$500 per tonne in April 2008 from
US$330 in March 2007.  Similarly, DAP increased to US$1220 per
tonne from US$435.

However, while fertilizer consumption has increased steadily, no
urea plant has been commissioned since 1999, even when capacity
utilization level of domestic urea manufacturers were more than
95 percent in 2007-2008.  This is largely because of the
unfavorable government policy framework, which thwarts fresh
investments in urea capacity.


* INDIA: Silk Industry Severely Affected by China Quake
-------------------------------------------------------
Indian silk industry has been hit hard by the last month's
earthquake in China, The Times of India reports.  

According to The Times, the industry claimed that hundreds of
units in Varanasi, Bangalore, Madurai, Coimbatore and Bhagalpur
have closed down as the raw material costs of silk have gone up
by up to 40 per cent and over one lakh persons engaged in the
sector have lost jobs after the earthquake in Sichuan province
of China.

Sichuan, the report relates, is the primary supplier of raw silk
yarn and dupion to Indian manufacturers of silk products.  
Majority of the mulberry gardens have been destroyed due to the
quake, which has led to a sharp fall in production in India, the
report says.

"The earthquake and subsequent floods in Sichuan has affected
the import prices of raw material, which have gone up by about
30-40 per cent," Indian Silk Export Promotion Council Chairman T
V Maruthi was cited by The Times as saying.



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

ANEKA TAMBANG: To Pay IDR215.23 Per Share Dividend
--------------------------------------------------
PT Antam Tbk aka PT Aneka Tambang Tbk's shareholders resolved to
pay IDR2,053 billion, or 40% of Antams' profts after tax of the
year ended December 31, 2008, which is equivalent to IDR215.23
per share.

The company also agreed with the recommendation to appoint the
firm Public Accountant Purwantono, Sarwoko and Sandjaja as the
public accountant.  The company's shareholders also agreed to
appoint the firm of Sugijadi, Kurdi & Riyono to audit the
financial statements of the Partnership and Environmental
Development Program for the year ended December 31, 2008.

As well, Antam received shareholder ratification of the
company's consolidated 2007 aidited financial statements and
approved the audited 2007 report and financial statements of the
Partnership and Environmental Development Program.

                       About Aneka Tambang

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

                          *     *     *

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

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


INDOSAT: Qatar Telecom to Acquire 44.9% Company Stake
-----------------------------------------------------
Qatar Telecom plans to buy a 44.9% stake of PT Indosat Tbk,
triggered by its recent US$1.8 billion acquisition of another
40.8% of the company from Asia Mobile Holdings, John Aglionby of
Financial Times reports.

According to the report, Qatar Telecom is offering IDR7,388
(US$0.80) a share, a 19% premium on Indosat's June 25 close of
IDR6,200.  It would value the 44.9% stake at US$1.95 billion.

However, the report notes, analysts and sources believe Qatar
Telecom is unlikely to end up with much more than 50% of
Indosat.  "Our view is that there will be some take-up of the
offer, but not a full subscription.  The long-term mobile
telecoms story in Indonesia is still very attractive," said Nick
Cashmore of CLSA in Jakarta told the news agency.

The government, which owns the remaining 14.3% of Indosat,  
intends to retain its shares, the report notes.

The Times says that the offer requires approval from Bapepam LK,
the Indonesian capital market regulator.  Bapepam said the
agency was still studying the offer.

Moreover, the report says the deal might also be scuppered by
Indonesia's supreme court, if it upholds a conviction for cross-
ownership and price-fixing violations against Singapore
Technologies Telemedia (STT), a wholly owned subsidiary of
Temasek Holdings.

According to a lower court ruling cited by the report, STT can
sell a maximum of 10 percentage points of the 30.8% of Indosat
it owned to any one company.

Sources told The Times that STT decided to sell its Indosat
stake following the conviction in spite of the appeal still
pending because it was becoming increasingly frustrated with
Indonesia's investment climate.

                          About Indosat

PT Indosat Tbk -- http://www.indosat.com/-- is a   
telecommunication and information service provider in Indonesia
that provides cellular services (Mentari, Matrix and IM3), fixed
telecommunication services or fixed voice (IDD 001, IDD 008 and
FlatCall 01016, fixed wireless service StarOne and I-Phone).
Indosat also provides Multimedia, Internet & Data Communication
Services (MIDI) through its subsidiary company, Indosat
Mega Media (IM2) and Lintasarta.  Indosat also provides 3.5 G
with HSDPA technology.  Indosat's shares are listed in the
Indonesia Stock Exchange (IDX:ISAT) and its American Depository
Shares are listed in the New York Stock Exchange (NYSE:IIT).

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
June 11, 2008, Moody's Investors Service placed on review for
possible downgrade the Ba1 local currency corporate family
rating of PT Indosat Tbk (Indosat), and the Ba2 foreign currency
senior unsecured bond rating of Indosat Finance Company B.V. and
Indosat International Finance Company B.V., which are guaranteed
by Indosat.

The rating action was prompted by the announcement that
Singapore Technologies Telemedia (STT), a wholly owned unit of
Singapore government's investment firm Temasek Holdings, agreed
to sell its interest in Indosat to its business partner Qatar
Telecom.  Qatar Telecom will pay US$1.8 billion for the 40.8%
stake in Indosat held by Asia Mobile Holdings, a joint
venture between Qatar Telecom and STT.  Upon completion of the
transaction, STT will no longer have any involvement in Indosat.

As reported in the Troubled Company Reporter-Asia Pacific on
March 3, 2008, Fitch Ratings assigned a stable outlook on PT
Indosat Tbk's BB- rating.  EBITDA margins are likely to be
stable overall.  Fitch Ratings said that its overall outlook
for the Asia Pacific telecommunication sector in 2008 is stable,
with 24 out of its total 28 rated telecommunications issuers
bearing a Stable Outlook.  Highlighting its newly published
"Asia-Pacific Telecoms Credit Outlook 2008" 20 page report, the
agency outlines its expectations on how key financial metrics
will move for 26 operators across Asia-Pacific in 2008,
concluding that while revenue growth is likely to slow, cash
flow from operations and free cash flow after dividends are
likely to rise on aggregate.  Nevertheless the agency cautioned
that it expects FCF to actually fall for half of its rated
operators across Asia Pacific.



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

AIFUL CORP: May Sue Lehman Brothers on Insolvency Report
-------------------------------------------------------
Aiful Corporation may take legal actions against Lehman Brothers
Holdings Inc. after the broker disclosed that Aiful may be
insolvent on a parent basis, various reports say.

As reported by the Troubled Company Reporter - Asia Pacific on
June 27, 2008, Aiful Corp.'s shares slid nearly 11% at JPY1,345
on news of the Lehman report.

The decrease is the Aiful's lowest since the company was listed
on the Tokyo Stock Exchange in 1998.

As of March 2008, "Aiful had only JPY818 billion in parent loans
to cover JPY1,051 billion in debt,” Lehman analyst FT Walter
Altherr said in a report.

Finbarr Flynn of Bloomberg reports that Mr. Altherr wrote that
about 22% of the company's loans are non-performing, and bad
loans have risen for at least the last 19% at the company.  
Aiful is depending on inter-company loan repayments to stay
solvent, he said.

In a press release, Aiful Corp. said that the Lehman contained
certain factual errors, such as statements to the effect that
"we fear that dept repayment will get tougher (for Aiful)" and
"Sumitomo Trust, Aiful's main bank... has also told Lehman
Brothers that is [sic] has no desire to fully support, much less
take over, Aiful."

The company asked Lehman to issue an apology and erratum report.  
Lehman Brothers responded with an erratum report dated June 26,
but the erratum, according to Aiful, failed to address the
inaccuracies in the original report.

The company has issued the following response on inquiries
regarding the Lehman report.

1. On Aiful's Cash Flow Situation

As of March 31, 2008, AIFUL was scheduled to repay JPY522.7
billion in debt within 12 months.  AIFUL has already secured the
funds needed, including a balance of JPY257.3 billion in cash
and cash equivalents.  There are absolutely no problems with
AIFUL's cash flow situation.

2. On Aiful's Relationship with Sumitomo Trust & Banking

Aiful continues to maintain a good relationship with its main
bank, Sumitomo Trust & Banking Co., Ltd.

The company said that they will continue to complain the
inaccurate statements made by Lehman Brothers with that
firm.  "We will continue to protest against Lehman Brothers, and
to recover our honor and trust, we are considering taking legal
action." Aiful spokesman Kenichi Hashimoto was quoted by
Bloomberg as saying.

Meanwhile, according to Reuters, another spokesman said he had
not heard from Sumitomo Trust, the company's main bank, about
any changes to its internal credit rating, and added that the
company was checking on the details of the Lehman report.

                  About Aiful Corporation

Aiful Corporation (TYO:8515) -- http://www.ir-aiful.com/--  is
a Japan-based financial service provider.  The company is
engaged in the provision of small-lot uncollateralized loan for
individual consumers, business loan for individuals, as well as
mortgage collateral and credit card services, in addition to the
collection and management of debts.  Other business activities
the Company is involved in include the development, investment
and nurture of venture companies, as well as the leasing of real
estates.  Headquartered in Kyoto, the Company has 29
subsidiaries and two associated companies.


FORD MOTOR: Fitch to Review Ratings Over Next Six Weeks
-------------------------------------------------------
Fitch has not taken a rating action on Ford Motor Company and
Ford Motor Credit Co LLC, but will be reviewing the existing
ratings over the next six weeks.  Although Ford is viewed as
having more than adequate liquidity and resources to weather
current conditions through 2009, unrelenting industry and
economic pressures make it increasingly likely that Ford will be
unable to maintain its existing ratings.  A key determinant in
the review will be the performance of Ford Credit.

Among the domestic manufacturers, Ford is the most reliant on
the U.S. pickup truck market, which has seen steep declines due
to weak economic conditions in the homebuilding market and
soaring gas prices.  Industry pickup sales have declined well
outside a range that could be explained by cyclical
fluctuations, confirming that a permanent market shift away from
pickup trucks has taken place.  Ford has been aggressive in
addressing overcapacity in the pickup and SUV segments over the
last several years, but has been unable to stay ahead of a
rapidly deteriorating market.  Fitch expects that there is some
pent-up demand accruing in the pickup market, although a rebound
is now expected to be more muted and more distant that expected,
and may not occur until 2010.

Ford's lineup at the lower end of the product spectrum, the
Escape, Fusion and Focus, as well as the Edge crossover, have
held up relatively well in the current environment, providing
Ford with the best product balance among the domestic
manufacturers over the intermediate term.  The most recent surge
in gas prices and the corresponding shift in consumer
preferences has required an acceleration of restructuring
efforts, and shortened the timeline over which the domestic
manufacturers are required to transform their product lineups
and manufacturing footprint in line with market demand.  
Commodity prices have continued to be a stronger headwind than
anticipated, and higher steel costs will now be contracted in
for the next several years.  Recouping these cost increases
through pricing will be required over the long-term, but
will be unlikely in the current environment.

Fitch's ongoing assessment of Ford and Ford Credit will focus on
expected cash drains through 2009 and the performance of Ford
Credit.  Ford's current cash cushion is expected to leave the
company with more than adequate liquidity through 2009, keeping
the company above a minimum comfort level of approximately
$10 - 11 billion.  Incremental asset sales and financing are
expected over the near term to supplement existing liquidity.  
Ford has been opportunistic in using equity-for-debt swaps in
muting the growth in debt.  It should also be noted that a
portion of the cash drain in 2008 is associated with the cash
funding of the recent UAW healthcare agreement, as opposed to
issuing new short-term debt.  In 2010, Ford will begin to
realize the benefits of this VEBA agreement, and could also
benefit from a rebound in economic conditions.

A primary focus of the review will be on Ford Credit and
continued access to cost-effective financing, either through the
securitization market or other sources.  To date, Ford Credit's
underwriting standards have been consistent, and loss experience
has been in line with expectations given the economic cycle.  
However, with the unsettled capital markets, the steep decline
in pickup and SUV residuals, extended contract terms and a
weakened consumer, underlying performance has weakened and may
diminish investor appetite for auto loans at economically
sustainable terms.  In the event that the financing markets are
expected to be less accommodative over the near-to-intermediate
term, Fitch could potentially lower the IDR to 'CCC'.

                         About Ford Motor

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,
through Ford Japan Limited.


* JAPAN: Six Major Automakers Post Decrease in May Sale
-------------------------------------------------------
Six of eight major Japanese automakers each posted a decline in
May sales, Japan corporation News reports, citing a data
released by the companies.

According to the report, Toyota Motor Corp., Honda Motor Co.,
Nissan Motor Co., Mitsubishi Motors Corp., Mazda Motor Corp. and
Fuji Heavy Industries Ltd., post loss in their reports,  with
Mitsubishi Motors having the biggest decline of 18.7%.

Meanwhile, the report notes, Suzuki Motor Corp. and Daihatsu
Motor Co. posted increases in domestic vehicle sales.

All companies excluding Honda logged increases in domestic
vehicle production on the back of strong exports to other parts
of Asia and Russia, while domestic output surged 40.3% at Nissan
and 19.9% at Mazda, the report says.

JCN relates that Japanese automakers' production and sales in
the United States are slowing due to a deceleration in the U.S.
economic growth amid the lingering impacts of the subprime
mortgage crisis there.

Toyota and Nissan's vehicle production in the country slump
10.3% and 26.1%, respectively, in May, while Mitsubishi's
production in North America fell 40%.

Toyota's vehicle sales in the United States dropped 4.3% year on
year to 257,000 units in the latest reporting month due to
sluggish sales of sport-utility vehicles and pickup trucks.
Mitsubishi's sales slumped 23.6%, the report adds.



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

* FITCH: Korean Life Insurance Market Shows Growth Potential
------------------------------------------------------------
The South Korean life insurance market shows good business
growth potential given robust economic conditions, an ageing
population, greater spending power and risk awareness of
consumers - all this amidst intensifying market competition,
according to a Fitch Ratings special report.

"The South Korean Life Sector: Seeing the Light at the End of
IPO Dispute Tunnel", provides the agency's latest views on the
key trends and developments in the life insurance market.  
Traditionally dominated by the three largest players, namely
Samsung Life, Korea Life and Kyobo Life, their market shares
have declined in recent years, with improved participation from
foreign and smaller local players.

Industry regulator, the Financial Supervisory Commission, had
earlier announced that Korea's life insurers could go ahead with
public listings, after recognising their status as stock
companies both from legal and operational perspectives.  This
marked the end of a long-standing battle of more than 15 years,
between the insurers and their policyholders.  Though legally
incorporated as stock companies, policyholders had earlier
challenged that the domestic insurers displayed characteristics
of mutual companies, through their significant participating
policies.

Fitch believes the FSC announcement is positive as it provides
the insurers with more flexibility and easier access to the
capital markets for additional resources, if needed.  
Additionally, with greater public scrutiny, insurers will place
heavier emphasis on the institution of good corporate
governance, internal control and risk management practices.

The operating environment was also affected by a wave of M&A in
2006/2007, which will continue into 2008/2009; this will further
intensify market competition and weed out the smaller and weaker
players leading to a tighter and more efficient market.

To further strengthen the financial health of the industry and
enhance its capital management, a risk-based capital regulatory
regime is scheduled for implementation in the next year or two.  
The strengthened capital regime may provide impetus for the
weaker players to seek M&A or public listings.  In the long run,
overall industry capitalisation will improve as insurers
demonstrate greater risk awareness and the ability to better
manage their capital resources.

Overall, Fitch believes that it is important for companies to
focus on prudent underwriting, with appropriate capital and risk
management, amidst the increasingly competitive environment.  
With greater risk awareness, the agency also expects an
increasing focus on enterprise risk management by insurers to
better manage and control their risks.  Given the upcoming RBC
regime, the industry will need to adapt to new capital
requirements and it is crucial for the insurers to manage their
capital appropriately, commensurate with their business
profiles.


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

ATAARANGI CONTRACTORS: Court Sets July 14 Liquidation Hearing
-------------------------------------------------------------
The High Court at Rotorua will convene a hearing on July 14,
2008 at 10:45 a.m. to consider an application putting Ataarangi
Contractors Limited into liquidation.

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 application was filed on May 3, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          1 Bryce Street (PO Box 432)
          Hamilton
          Telephone: (07) 959 0416
          Facsimile: (07) 959 7614

Rachel L. Scott is the plaintiff’s solicitor.


CAMELIA PROPERTIES: Replacement Liquidators Appointed
-----------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, John
Robert Buchanan and Callum James Macdonald, insolvency
practitioners of Auckland, have been appointed replacement
liquidators of Camelia Properties Limited (in liquidation).

The company's liquidation commenced on May 2, 2008.

Messrs. Buchanan and Macdonald replace the appointment and
subsequent resignation of Andrew Hill and Shaun Adams who were
appointed on July 11, 2007.

The Liquidators can be reached at:

          Buchanan Macdonald Limited, Chartered Accountants
          PO Box 101993, North Shore Mail Centre
          North Shore City 0745
          Telephone: (09) 441 4165
          Facsimile: (09) 441 4167


GOODYEAR TIRE: To Invest US$2BB in Plants' Expansion-Improvement
----------------------------------------------------------------
Goodyear Tire & Rubber Co. plans to invest over US$2 billion in
the next five years to expand and modernize its plants both in
the U.S. and around the world as it looks to boost production of
high-end products and output in low-cost countries, The Wall
Street Journal reports.

In a press statement, Robert J. Keegan, chairman and chief
executive officer, said: "given the challenges that the macro-
environment is presenting, particularly in North America, we are
performing well in a difficult environment.  We respect the
magnitude of the market challenges we face.  Our business model
changes over the past five years have positioned us to manage
through the current environment while continuing to drive our
long-term strategies."

"The company's strategy to drive profitable growth includes
significant plans to capitalize on worldwide increases in demand
for its innovative, high-value-added tires," Mr. Keegan said.  
"Goodyear will leverage its innovation capabilities to
differentiate its products in the marketplace"

The company also plans to build on strength in its profitable
businesses in the emerging markets of Latin America, Eastern
Europe and Asia.

"Growth in markets such as China, Russia and Brazil and a
transition to increasingly high-value-added tires in these
markets represent significant opportunities," Mr. Keegan said.  
"Our leadership teams in these markets have proven capability to
develop markets, build strong distribution networks, leverage
our brands and deliver high returns.  We see many opportunities
for our businesses in emerging markets to continue to be a major
growth engine for Goodyear."

Goodyear leaders will also discuss the impact of higher fuel
prices, changing driving habits and a shift in vehicle
preferences in the U.S. in its investor presentation in New York
slated to start at 9 a.m. EDT.

Structural cost topics to be discussed in the meeting include:

    -- Goodyear's decision to increase its cost savings target
       to more than US$2 billion by 2009 from its prior goal of
       between US$1.8 billion and US$2 billion through
       intensified focus on efficiency throughout the supply
       chain and in back office operations.

   -- The closure of Goodyear's tire manufacturing plant in
      Somerton, Australia, which completes the company's
      targeted reduction of approximately 25 million units of
      high-cost capacity as part of its 4-point cost savings
      plan.

High-return growth opportunities to be discussed include:

   -- Investment of up to US$500 million to increase Goodyear's
      presence in China through a relocation and expansion of
      its manufacturing plant in Dalian to facilitate increased
      production of high-value-added consumer and commercial
      tires for the Asia-Pacific region.

   -- Investments of US$500 million to US$700 million over five
      years to modernize four U.S. manufacturing plants to
      increase high-value-added tire production and improve cost
      efficiency.

   -- Investments of up to US$600 million to expand production
      in Brazil and Chile.

   -- Investments of approximately US$500 million to modernize
      and expand production in Germany and Poland.

"Going forward, we anticipate capital investments totaling
between US$1 billion and US$1.3 billion per year from 2008 to
2010," stated Mr. Keegan.

"Our plans, however, are flexible so that we can adjust both the
pace and amount to reflect the macro-environment and market
trends while maintaining positive cash flow," he added.  "We
will continue to be extremely analytic and hard-nosed with
respect to the allocation of capital and are focused on return
on invested capital as a key financial metric."

The company expects to increase high-value-added capacity by 50%
from 2006 levels and to increase its low-cost capacity to 50% of
its worldwide total by 2012.

                       About Goodyear Tire

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company.  The company manufactures tires, engineered rubber
products and chemicals in more than 60 facilities in 26
countries and employs 80,000 people worldwide.  Goodyear has
subsidiaries in New Zealand, Australia, Venezuela, Peru, Mexico,
Luxembourg, Finland, Korea and Japan, among others.  

                          *     *     *

As reported by the Troubled Company Reporter-Europe on March 6,
2008, Fitch Ratings upgraded The Goodyear Tire & Rubber
Company's Issuer Default Rating to 'BB-' from 'B+' and senior
unsecured debt rating to 'B+' from 'B-/RR6'.

Goodyear Tire & Rubber Company continues to carry Moody's “Ba3”
senior secured debt, senior unsecured debt, probability of
default and long term corporate family ratings.

In addition, the company still carries Standard & Poor's “BB-”
long term local and foreign issuer credit ratings and Fitch's
“B+” senior unsecured debt rating.   


HOME IMPROVEMENTS: Commences Liquidation Proceedings
----------------------------------------------------
The High Court at Wellington held a hearing on June 16, 2008, to
consider an application putting Home Improvements Petone Limited
into liquidation.

The application was filed on May 7, 2008, by Wattyl New Zealand
Limited.

The plaintiff's address for service is at the office of:

          Debtworks (NZ) Limited
          Level 6, 44 Anzac Avenue
          Auckland
          Postal Address: PO Box 6086
          Wellesley Street, Auckland
          Facsimile: (09) 366 0110

RALPH WILLIE ELIKA is the plaintiff’s solicitor.


MAD PLUMBING: Commences Liquidation Proceedings
-----------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Jeffrey
Philip Meltzer and Karen Betty Mason, insolvency practitioners,
were appointed joint and several liquidators of Mad Plumbing
Merchant Limited on May 26, 2008.

The Liquidators can be reached at:

          Meltzer Mason Heath, Chartered Accountants
          PO Box 6302, Wellesley Street
          Auckland 1141
          Telephone: (09) 357 6150
          Facsimile: (09) 357 6152


MONSAL INVESTMENTS: John Gilbert Appointed as Liquidator
--------------------------------------------------------
Pursuant to Section 255(2) of the Companies Act 1993, John
Michael Gilbert was appointed liquidator of Monsal Investments
Limited and Sutherland Holdings Limited.

The Liquidator can be reached at:

          C/o C & C Strategic Limited
          Private Bag 47927
          Ponsonby, Auckland
          Telephone: (09) 376 7506
          Facsimile: (09) 376 6441


OHINEMATAROA HOLDINGS: Court Sets July 14 Liquidation Hearing
-------------------------------------------------------------
The High Court at Rotorua will hold a hearing at 10:45 a.m. on
July 14, 2008, to consider an application putting Ohinemataroa
Holdings Limited into liquidation.

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 application was filed on May 3, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          1 Bryce Street (PO Box 432)
          Hamilton
          Telephone: (07) 959 0416
          Facsimile: (07) 959 7614

Rachel L. Scott is the plaintiff’s solicitor.


PETONE WHOLESALERS: Commences Liquidation Proceedings
-----------------------------------------------------
The High Court at Wellington held a hearing on June 16, 2008, to
consider an application putting Petone Wholesalers Limited into
liquidation.

The application was filed on May 9, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is 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.


TE REO: Court Schedules July 14 Liquidation Hearing
---------------------------------------------------
The High Court at Rotorua will hold a hearing on July 14, 2008,
at 10:45 a.m. to consider an application putting Te Reo
Whakapaoho Takaro o Te Ao Limited into liquidation.

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 application was filed on May 3, 2008, by the Commissioner of
Inland Revenue.

The plaintiff can be reached at:

          Inland Revenue Department
          Legal and Technical Services
          1 Bryce Street (PO Box 432)
          Hamilton
          Telephone: (07) 959 0416
          Facsimile: (07) 959 7614

Rachel L. Scott is the plaintiff’s solicitor.


* NEW ZEALAND: Economic Activity Shrinks 0.3% in 1st Qtr 2008
-------------------------------------------------------------
Economic activity, as measured by gross domestic product (GDP),
declined 0.3 percent in the March 2008 quarter, Statistics New
Zealand said.  The agriculture and construction industries were
the main contributors to the decline this quarter.  This follows
an increase in economic activity of 0.8 percent in the December
2007 quarter.  In annual terms, the economy grew 3.0 percent to
the year ended March 2008.

Activity in the primary industries declined 4.1 percent in the
March 2008 quarter.  Agriculture was down 5.6 percent for the
March 2008 quarter, the largest decline in agriculture since the
March 1998 quarter. Drought conditions experienced by parts of
the country contributed to lower output and increased costs
(intermediate consumption) for the agriculture industry.

Activity in the goods producing industries was down 1.9 percent
in the March 2008 quarter.  The main drivers in the decline in
the goods producing industries were construction (down 5.2
percent) and manufacturing (down 1.2 percent).  Of the
manufacturing industries the largest decline this quarter was in
food, beverage and tobacco manufacturing.  The decline in
construction activity was in both residential and non-
residential construction.

The expenditure-measure of GDP, which is released concurrently
with the production-measure, declined 0.6 percent in the March
2008 quarter.

Gross fixed capital formation – which measures investment in
fixed assets – declined by 2.0 percent in the March 2008
quarter. The main contributors to the decline in fixed asset
investment this quarter were residential and non-residential
buildings. Partly offsetting these decreases was increased
investment in plant, machinery and equipment that was mainly
sourced through imports.

Spending by New Zealand households was down 0.4 percent in the
March 2008 quarter, following an increase of 0.5 percent in the
December 2007 quarter. This is the first quarter since June 2004
that household consumption expenditure has been negative.
Expenditure on durable items, such as vehicles and furniture and
major appliances, were down 3.4 percent this quarter while
volumes of non-durable goods, which includes food and alcohol,
remained flat.


* NEW ZEALAND: Records NZ$196 Mil. Trade Deficit in May 2008
------------------------------------------------------------    
The total value of merchandise exports rose 11.2 percent from
May 2007 to May 2008, to reach NZ$3.7 billion, while merchandise
imports were up 17.3 percent to NZ$3.9 billion over the same
period, Statistics New Zealand said.

For both exports and imports, this is the ninth consecutive
monthly rise (from the same month of the previous year). Crude
oil and other petroleum products led the increase for both
exports and imports in the May 2008 month.

The next largest increase in exports came from meat and edible
offal which rose NZ$117 million from May 2007, with sheep meat
the main contributor to this rise.  The total exports value for
meat and edible offal is the highest ever for a May month and at
NZ$528 million is only just short of the highest ever recorded
monthly value (NZ$534 million in March 2005).

The recent drought appears to have impacted on both imports and
exports in May 2008.  Import quantities of food residues, wastes
and fodder were 70.9 percent higher than any other month of the
last decade, led by an increase in oil cake.  Export quantities
of milk powder, butter and cheese were down 29.7 percent
compared with the previous May, although values were still up
3.9 percent.

In May 2008, the monthly trade balance was a deficit of NZ$196
million, or 5.3 percent of exports.  Over the past 10 years, May
months have recorded a deficit only three times.  All three of
these occurred in the past four years, with May 2008 being the
largest (both by value and as a percentage of exports).



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

ALLIED BANKING: Moody's May Lift “Ba3” Subordinated Debt Rating
---------------------------------------------------------------
Moody's Investors Service placed Allied Banking Corporation's
(ABC) local-currency subordinated debt on review for possible
upgrade.  The rating action follows shareholder approval of
ABC's merger with Philippine National Bank (B1/Not-Prime/E+).

All other ratings of ABC and their outlooks are not affected.

In placing ABC's rating under review for possible upgrade,
Moody's said ABC's creditors should benefit from the merged
entity being a larger company with a more extensive branch
network and a much larger market share within the Philippines.

The review will focus on whether the deal will be completed, and
if so it is highly probable that ABC's subordinated debt rating
will rise to PNB's level. The review process may last to the
completion of the transaction, expected within the next 3
months.

Moody's also noted that both banks' E+ financial strength
ratings will not be affected by the merger. The negative impact
of merger-created goodwill -- which must be deducted from Tier 1
capital -- will be more than offset by the active capital-
raising activities of both banks before the formal merger.

However, the ratings of the merged bank will most likely
converge to the middle of global peers within the E+ bank
financial strength rating, as its financial profile will remain
burdened by PNB's high level of deferred charges and impaired
assets. ABC's financial strength rating is currently at the high
end of the global E+ peers.

This rating of ABC was placed on review for possible upgrade:

   * ABC's local-currency subordinated debt rating of Ba3.

These ratings of ABC were unaffected:

   * Foreign currency deposit ratings of B1/Not-prime
   * BFSR of E+

The outlook on its long-term foreign currency deposit rating is
positive, while the outlook on its short-term foreign currency
deposit rating and BFSR is stable.

                    About Allied Banking

Allied Banking Corp, headquartered in Manila, is the 12th
largest commercial bank in the Philippines with P147.8 billion
in assets as of year-end 2007.

                 About Philippine National

Philippine National Bank, headquartered in Manila, is the 6th
largest bank in the Philippines with P239.7 billion in assets as
of year-end 2007.



===============
X X X X X X X X
===============

* FITCH: Emerging Market Economic and Credit Outlook Worsening
--------------------------------------------------------------
Fitch Ratings says in its semi-annual Sovereign Review that the
economic and credit outlook for emerging market economies is
deteriorating, driven primarily by rapidly rising inflation.

"It is the surge in inflation, rather than the direct
consequences of the global credit crunch, that is the principal
threat to macroeconomic and financial stability in many emerging
markets," says David Riley, Group Managing Director in Fitch's
Sovereigns team.  "The risk faced by several central banks is
that the failure to contain inflationary pressures will result
in downward pressure on exchange rates - especially if the Fed
surprises with earlier rises in US interest rates - leaving
policymakers with the unenviable choice of either allowing
currencies to depreciate, which in turn will stoke inflation
further, or intervening in support of their currencies and
raising interest rates much more aggressively with negative
consequences for growth."

While economic growth and exports in Latin America have been
buoyed by high and rising commodity prices, the terms of trade
for commodity-consuming emerging Asia and Europe have worsened.  
Inflation in Asia, in particular, has accelerated sharply as
policymakers have been reluctant to raise interest rates, while
much of emerging Europe remains exposed to a reversal of private
capital flows due to large current account deficits and external
borrowing.

Economic activity has continued to be robust in most emerging
markets despite the slowdown in the G7 economies.  Fitch
predicts that emerging markets will grow 6.2% in 2008, compared
to 7.2% last year.  However, inflation has accelerated at an
alarming pace in many emerging markets to multi-year highs.  The
monetary policy response to rising inflation has been
disappointing, with several central banks apparently reluctant
to raise interest rates and allow their currencies to appreciate
in response to what is perceived as external and temporary price
shocks.  However, with consumer price inflation in several
emerging market economies now significantly above official
targets and accommodated by wage increases, including by hikes
in public-sector salaries, the risk of a wage-price spiral as
inflation expectations shift upwards is increasing.

Inflation can have an insidious impact on sovereign
creditworthiness by heightening the incidence of macroeconomic
volatility, not least by encouraging a flight into foreign
currency assets, and increases the risk of exchange rate and
banking crises.  Rising fuel and food prices are also placing
government budgets under pressure as subsidies become more
expensive.  These concerns have been at the forefront of several
negative rating actions by Fitch in recent months and the net
balance of Positive to Negative rating Outlooks has fallen to
just 3 (12 Positives/9 Negatives) from 16 (19 Positive/3
Negative) less than a year ago, suggesting that the positive
rating momentum of recent years is dissipating despite recent
high profile rating upgrades, notably of Brazil to investment-
grade.

Fitch notes that the global credit crunch has so far not had a
noticeable impact on private sector credit growth which remains
strong, while rising commodity prices have boosted incomes in
resource-rich emerging economies.  But it warns that the full
impact of the downturn in the US and other advanced economies is
yet to be fully felt in terms of reduced export demand.  The
agency further warns that commodity prices are expected to
moderate from current levels and central banks are being forced
to tighten monetary policies in response to the upsurge in
inflationary pressures.

                         *********

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
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Information contained herein is obtained from sources believed
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