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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Thursday, July 10, 2008, Vol. 11, No. 136

                            Headlines

A U S T R A L I A

B.I. INTERIORS: Final Meeting Slated for July 17
BILL EXPRESS: Appoints Craig Crosbie as Administrator
CORSAIR NO 4: Fitch Lowers AA- Rating on AU$105MM Notes to B+
CRANE HOLDINGS: Proofs of Debt Due July 16
FOXDALE CORP: Final Meeting Slated for July 17

KURRI EARTHMOVING: Proofs of Debt Due July 16
M.J. & G. JOINERY: Proofs of Debt Due July 16
MID COAST: Members and Creditors to Meet on July 17
OMEGA CAPITAL: Fitch Cuts Notes Ratings and Removes Neg. Watch
SN CIVIL: To Declare Dividend on July 18

SUPPLY @ 25: Members and Creditors to Meet on July 18
SYNOPSIS SOLUTIONS: Members and Creditors to Meet on July 21
WESTLEE CLOTHING: Final Meeting Set on July 18
* AUSTRALIA: ASIC Sets Disclosure System for Unlisted Schemes
* AUSTRALIA: Consumer Outlook Falls to Lowest Level Since 1992


C H I N A

ARROW ELECTRONICS: Completes Buyout of Achieva Distribution Biz
CHINA SOUTHERN: Ups Fuel Surcharge on Int'l Flights by 30%
SOLUTIA INC: Signs US$182 Million Deal with Chinese Companies


H O N G K O N G

MERECHAL LIMITED: Liquidator Quits Post
MAY KAY: Liquidator Quits Post
OBVIO KING: Liquidator Quits Post
PAK KWONG: Liquidator Quits Post
PARKER HOLDING: Sees 18% Growth in "Same-Store" Sales for 1H '08

PING FAI DEV'T: Liquidator Quits Post
QUETICO LIMITED: Liquidator Quits Post
RUSHFORD COMPANY: Liquidator Quits Post
RANPECT COMPANY: Liquidator Quits Post
SHIELD DEV'T: Liquidator Quits Post

SHUREN DEV'T: Liquidator Quits Post


I N D I A

GENERAL MOTORS: Denies News of Further Brands Sale to Cut Costs
SHAH ALLOYS: CARE Withdraws “D” Rating on Rs.100 cr NCDs
TATA POWER: Wins Power Supply Ruling Against Reliance Energy
* CRISIL: Fuel Prices & Inefficiencies Spur Airlines' Losses


J A P A N

ATARI INC: JH Cohn Expresses Going Concern Doubt
* JAPAN: Mobile Shipments Down 10.7% in May


M A L A Y S I A

OCI BERHAD: MITI Approves Proposed Restructuring Scheme
PECD BHD: Court Grants Interim Restraining Order Until July 14
TECHVENTURE BHD: High Court Grants Summary Judgment Against TVSB


N E W  Z E A L A N D

ABLE AUTO: Wind-Up Petition Hearing Set for July 24
ADAMS DAIRY: Wind-Up Petition Hearing Set for July 18
AUSTRAL PACIFIC: KPMG LLP Expresses Going Concern Doubt
CNI PUBLICATIONS: Brown and Rodewald Appointed as Liquidators
HAMILTON BUILDING: Brown and Rodewald Appointed as Liquidators

LANDCO LTD: Property Market Slump Hits Holdings Value
LOMBARD GROUP: Incurs NZ$3.26 Mil. Net Loss in FY2008  
N & T DEVELOPMENTS: Wind-Up Petition Hearing Set for July 18
NEW TREND: Shareholders Place Company Under Liquidation
RANDHAWA HORTICULTURE: Liquidators Appointed

SIM FARMS: Shareholders Place Company Under Liquidation
VIBRA–FITNESS: Commences Liquidation Proceedings


P H I L I P P I N E S

LEPANTO CONSOLIDATED: Fully Pays 3,192,857 Class "B" Shares
* FITCH: Volatile Environment Affects Philippine Banking System


S I N G A P O R E

ALL SAINTS: Court to Hear Wind-Up Petition on July 18
ALLCO REIT: Allco Finance Group to Sell 17.7% Company Stake
ALLCO REIT: Moody's May Upgrade “Ba2” Rating After Review
ATLUS ENTERTAINMENT: Creditors' Proofs of Debt Due on August 6
FOREX SYSTEM: Wind-Up Petition Hearing Set for July 11

INFORMATICS EDUCATION: Auditor Expresses Going Concern Doubt
TRAMP OIL: Requires Creditors to File Claims by August 4


T A I W A N

AU OPTRONICS: Records NT$36.77 Billion Revenues in June 2008


                         - - - - -


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

B.I. INTERIORS: Final Meeting Slated for July 17
------------------------------------------------
B.I. Interiors Pty Ltd will hold a final meeting for its members
and creditors at 11:00 a.m. on July 17, 2008.  During the
meeting, the company's liquidator, Michael G. Jones at Jones
Partners, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Michael G. Jones
          Jones Partners
          Insolvency & Business Recovery
          Telephone: (02) 9251 5222
          Australia


BILL EXPRESS: Appoints Craig Crosbie as Administrator
-----------------------------------------------------
Bill Express Ltd has appointed Craig Crosbie, of PPB in
Melbourne, as administrator of the company after a meeting with
creditors on Tuesday, Mysmallbusiness reports.

ABC News says the company has gone into administration owing
AU$180 million and leaving newsagencies unable to process bill
payments, electronic mobile phone recharge pins, and the Bill
Express-owned Bopo pre-paid credit cards.

As reported yesterday in the Troubled Company Reporter-Asia
Pacific, a subsidiary of Saudi-based Al Othman Group has
withdrawn its proposal for the recapitalization and
restructuring of the company.  

The proposal was to include a substantial capital injection and
new bank guarantees combined with a restructuring of the
existing liabilities of the company.  In addition, the Board and
management of the company were to be substantially restructured.

As a consequence of the withdrawal, the exclusivity arrangements
between the company and Al Othman Group are now concluded.

The company initiated talks with its financiers and major
suppliers regarding the impact of the withdrawal on their
standstill agreements.

In June, Bill Express and its financiers and major suppliers
agreed to extend their standstill agreements until Aug. 22,
2008.

However, at a meeting held Tuesday, the suppliers and
financiers indicated that they are not willing to continue the
standstill arrangements or otherwise support the company's
continued trading.

Accordingly, the company's directors resolved to appoint
administrators to the company.

On June 27, 2008, the Troubled Company Reporter-Asia Pacific
cited a report by Mark Hawthorne of The Age which said that Bill
Express is facing claims and counterclaims of suspect deals and
related-party transactions at board level that resulted in cash
allegedly being siphoned off into private companies and bank
accounts not controlled by the company.

The Age report related that Australia and New Zealand Banking
Group Limited, one of the company's key creditors, appointed a
team led by Ben Steinberg to investigate the financial situation
of Bill Express and its holding company, On Q, after both listed
companies have been suspended from trading since April, with no
announcement to shareholders or the market about the financial
position of either company.

Meanwhile, Business Day said Bill Express had been involved in a
dispute with Optus over a supply agreement for prepaid products,
which prompted Optus to terminate the agreement because of a
failure to pay an amount owed to it by Bill Express.

Bill Express Ltd. (ASX:BXP) -- http://www.billexpressltd.com/--    
is engaged in the management and development of an electronic
distribution system for pre-paid products and services across in
excess of 14,000 locations around Australia, automated ordering,
delivery and inventory control for pre-paid services including
mobile, landline and Internet services.  It also processes
payments for bills and services, including bills that are
presented for payment to its outlets across Australia.  The
company has an in-store media, which is a network that promotes
Bill Express Limited's and other products at the point of sale
and in-store aisles.


CORSAIR NO 4: Fitch Lowers AA- Rating on AU$105MM Notes to B+
-------------------------------------------------------------
Fitch Ratings has downgraded the notes issued by Corsair (Cayman
Islands) No. 4 Ltd Series 6 (also known as "Kakadu"), and
removed them from Rating Watch Negative, as:

  -- AU$105,000,000 credit-linked notes due March 2014
     (ISIN: AU3FN0001236): downgraded to 'B+' from 'AA-',
     removed from RWN.

The transaction is a managed synthetic CDO referencing a
portfolio of primarily investment grade corporate obligations
and managed by Lehman Brothers Australia (formerly Grange
Securities Ltd).  The portfolio maximum notional amount is
AUD13.13 billion.

The transaction was placed on RWN on May 20, 2008, and the RWN
placement reflected Fitch's view on the credit risk of the rated
notes following the release of its new corporate CDO rating
criteria.  Since then the portfolio has experienced further
negative rating migration mainly due to the downgrading of four
reference entities in the Buildings and Materials sector and
three reference entities in the Banking and Finance sector as a
reflection of the challenges afflicting the US homebuilders and
mortgage insurers.  The four downgraded reference entities in
the Buildings and Materials sector are Beazer Homes USA, Inc.
('B'/RWN), Centex Corp. ('BB+'/Negative Outlook), Lennar
Corporation ('BBB-'/Negative Outlook) and Pulte Homes, Inc.
('BBB-'/Negative Outlook).

Furthermore, three other reference entities with Negative
Outlooks namely, Hovnanian Enterprises, Inc. ('B-'/Negative
Outlook), Masco Corporation ('BBB'/Negative Outlook) and Toll
Brothers Inc. ('BBB'/Negative Outlook), are also in the same
sector.  The three downgraded reference entities in the Banking
and Finance sector are PMI Group, Inc., MGIC Investment Corp.
and Lehman Brothers Holdings Inc.  The former two entities are
currently on RWN while Lehman Brothers is still on Negative
Outlook.

Other key drivers of this transaction's credit risk include:

  -- Portfolio credit risk deteriorating to an average portfolio
     quality of 'BBB' from 'BBB+'/'BBB' at last review in
     November 2007.  Since the last review, the percentage of
     the portfolio rated below investment grade has increased to
     12.1% from 7.9%, with 6.2% of the portfolio in the 'BB'
     category, 3.5% in the 'B' category and 2.4% in the 'CCC+ or
     below' category, including a defaulted asset, Residential
     Capital LLC (rated 'D'), which represents 0.6% of the
     portfolio.

  -- Portfolio migration risk with 5.9% of the portfolio on RWN
     and 17.1% of the portfolio with a Negative Outlook.

  -- Industry concentration of 55.6% in the three largest
     industries, made up of 43.5% in Banking & Finance, 6.8% in
     Telecommunications and 5.3% in Utilities.

  -- The portfolio is heavily concentrated in the US which
     represents 51% of the portfolio.

Given Fitch's view of concentration risk and the current credit
quality of the portfolio, the credit enhancement level of 4.03%
is not sufficient to justify the current rating of the notes.  
The credit enhancement level is likely to be eroded should there
be a credit event called on Residential Capital LLC.

At close, proceeds from the issuance of the notes were used to
purchase the charged asset to collateralise CDS between the
issuer and J.P. Morgan Securities (C.I.) Ltd (guaranteed by
JPMorgan Chase Bank, N.A., 'AA-'/'F1+').  The charged assets in
this transaction comprise AU$105 million in aggregate of senior
secured notes issued by Dexia Municipal Agency due March 2013
(rated 'AAA') and Depfa ACS Bank due March 2014 (rated 'AAA').

Fitch released updated criteria on April 30, 2008 for corporate
CDOs and, at that time, noted it would be reviewing its ratings
accordingly to establish consistency for existing and new
transactions.  As part of this review, Fitch makes standard
adjustments for any names on RWN or Negative Outlook, reducing
such ratings for default analysis purposes by two and one notch,
respectively.  Fitch has noted its review will be focused first
on ratings most exposed to risks it has highlighted in its
updated criteria.  Consequently, this transaction was placed on
RWN on May 20, 2008.  As previously indicated, resolution of the
Rating Watch status depends on any plans managers/arrangers may
choose to modify either the structure or the portfolio.  In this
case, the manager has confirmed that it does not intend to make
any modifications.


CRANE HOLDINGS: Proofs of Debt Due July 16
------------------------------------------
Crane Holdings Pty Limited will declare dividend on July 16,
2008.

Creditors are required to file their proofs of debt by July 16,
2008, to be included in the company's dividend distribution.

The company's liquidator is:  

          Richard Judson
          Members Voluntarys Pty Ltd
          1st Floor, 10 Park Road
          Cheltenham VIC 3192
          Australia


FOXDALE CORP: Final Meeting Slated for July 17
----------------------------------------------
Foxdale Corporation Pty Ltd will hold a final meeting for its
members and creditors at 10:30 a.m. on July 17, 2008.  During
the meeting, the company's liquidator, Michael G. Jones at Jones
Partners, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Michael G. Jones
          Jones Partners
          Insolvency & Business Recovery
          Telephone: (02) 9251 5222
          Australia


KURRI EARTHMOVING: Proofs of Debt Due July 16
---------------------------------------------
Kurri Earthmoving Pty Limited will declare dividend on July 16,
2008.

Creditors are required to file their proofs of debt by July 16,
2008, to be included in the company's dividend distribution.

The company's liquidator is:

          Richard Judson
          Members Voluntarys Pty Ltd
          1st Floor, 10 Park Road
          Cheltenham VIC 3192
          Australia


M.J. & G. JOINERY: Proofs of Debt Due July 16
---------------------------------------------
M.J. & G. Joinery Works Pty Limited will declare dividend on
July 16, 2008.

Creditors are required to file their proofs of debt by July 16,
2008, to be included in the company's dividend distribution.

The company's liquidator is:  

          Richard Judson
          Members Voluntarys Pty Ltd
          1st Floor, 10 Park Road
          Cheltenham VIC 3192
          Australia


MID COAST: Members and Creditors to Meet on July 17
---------------------------------------------------  
Mid Coast Mowers & Chainsaws Pty Ltd  will hold a joint meeting
for its members and creditors at 10:00 a.m. on July 17, 2008.  
During the meeting, the company's liquidator, David Leigh at
PPB, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          David Leigh
          PPB
          Level 2, 75-77 Clarence Street
          Port Macquarie NSW 2444
          Australia
          Telephone: (02) 6580 0400


OMEGA CAPITAL: Fitch Cuts Notes Ratings and Removes Neg. Watch
--------------------------------------------------------------
Fitch Ratings has downgraded the notes issued by Omega Capital
Investments Plc Series 40 (also known as Henley), and removed
them from Rating Watch Negative, as:

  -- AU$70,000,000 Class A notes due June 2013
     (ISIN: AU3FN0001632): downgraded to 'BB' from 'AAA',
     removed from RWN; and

  -- AU$40,000,000 Class B notes due June 2013
     (ISIN: AU3FN0001640): downgraded to 'B-' from 'BBB',
     removed from RWN.

The transaction is a managed synthetic CDO referencing a
portfolio of primarily investment grade corporate obligations
and managed by Lehman Brothers Australia (formerly Grange
Securities Limited). The maximum portfolio notional amount for
Class A is AUD14 billion and AUD4bn for Class B.

The transaction was placed on RWN on 16 May 2008, and since then
the portfolio has experienced further negative rating migration
mainly due to the downgrading of two reference entities in the
Buildings and Materials sector and three reference entities in
the Banking and Finance sector as a reflection of the challenges
afflicting the US homebuilders and mortgage insurers.  The two
downgraded reference entities in the Buildings and Materials
sector are Ryland Group, Inc. and Lennar Corporation.  Both
companies, together with the other four reference entities in
the same sector - KB Home, Masco Corporation, Toll Brothers
Inc., and M.D.C. Holdings, Inc. are currently on Negative
Outlook.  The three downgraded reference entities in the Banking
and Finance sector are PMI Group, Inc., MGIC Investment Corp.
and Lehman Brothers Holdings Inc.  The former two entities are
currently on RWN while Lehman Brothers is still on Negative
Outlook.

Other key drivers of this transaction's credit risk include:

  -- Portfolio credit risk deteriorating with an average
     portfolio quality of 'BBB'/'BBB-'.  Since the last review
     in November 2007, the percentage of the portfolio rated
     below investment grade has increased to 15.7% from 11.3%,
     with 10.4% of the portfolio in the 'BB' category, 3.5% in
     the 'B' category and 1.8% in the 'CCC+ or below' category,
     including a defaulted asset, Residential Capital LLC (rated
     'D'), which represents 0.9% of the portfolio.

  -- Portfolio migration risk with 7.8% of the portfolio on RWN
     and 11.3% of the portfolio with a Negative Outlook.

  -- Industry concentration of 47.0% in the three largest
     industries, made up of 31.3% in Banking & Finance, 8.7% in
     Telecommunications and 7.0% in Broadcasting & Media.

  -- The portfolio is heavily concentrated in the US which
     represents 65.0% of the portfolio.

Given Fitch's view of concentration risk and the current credit
quality of the portfolio, the credit enhancement levels of 4.97%
for the Class A notes and 2.88% for the Class B notes,
respectively, are not sufficient to justify the current ratings
of these notes.  The credit enhancement levels are likely to be
eroded should there be a credit event called on Residential
Capital LLC.

At close, proceeds from the issuance of the notes were used to
purchase the charged asset to collateralize CDS between the
issuer and BNP Paribas ('AA'/'F1+').  The charged asset in this
transaction comprises AU$110 million investments in eligible
securities under the repo agreements.

Fitch released updated criteria on April 30, 2008 for Corporate
CDOs and, at that time, noted it would be reviewing its ratings
accordingly to establish consistency for existing and new
transactions.  As part of this review, Fitch makes standard
adjustments for any names on RWN or Negative Outlook, reducing
such ratings for default analysis purposes by two and one notch,
respectively.  Fitch has noted its review will be focused first
on ratings most exposed to risks it has highlighted in its
updated criteria.

Consequently, this transaction was placed on RWN on 16 May 2008.  
As previously indicated, resolution of the Rating Watch status
depends on any plans managers/arrangers may choose to modify
either the structure or the portfolio.  In this case, the
manager has confirmed that it does not intend to make any
modifications.


SN CIVIL: To Declare Dividend on July 18
----------------------------------------
SN Civil Contractors Pty Limited will declare dividend on
July 18, 2008.

Only creditors who were able to file their proofs of debt by
July 3, 2008, were included in the company's dividend
distribution.

The company's liquidator is:  

          Paul Burness
          Worrells Solvency & Forensic Accountants
          Level 5, 15 Queen Street
          Melbourne VIC 3000
          Australia
          Telephone: (03) 9613 5511
          Facsimile: (03) 9614 3233
          Website: www.worrells.net.au


SUPPLY @ 25: Members and Creditors to Meet on July 18
-----------------------------------------------------  
Supply @ 25 King Street Pty Ltd  will hold a final meeting for
its members and creditors at 11:30 a.m. on July 18, 2008.  
During the meeting, the company's liquidator, S. W. Free at
Lawler Partners, will provide the attendees with property
disposal and winding-up reports.

The company's liquidator can be reached at:

          S. W. Free
          Lawler Partners
          Chartered Accountants
          763 Hunter Street
          Newcastle West NSW 2302
          Australia


SYNOPSIS SOLUTIONS: Members and Creditors to Meet on July 21
------------------------------------------------------------
Synopsis Solutions Pty Ltd will hold a final meeting for its
members and creditors at 11:00 a.m. on July 21, 2008.  During
the meeting, the company's liquidator, Michael G. Jones at Jones
Partners, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Michael G. Jones
          Jones Partners
          Insolvency & Business Recovery
          Telephone: (02) 9251 5222
          Australia


WESTLEE CLOTHING: Final Meeting Set on July 18
----------------------------------------------
Westlee Clothing Pty Ltd will hold a final meeting for its
members and creditors at 11:00 a.m. on July 18, 2008.  During
the meeting, the company's liquidator, D. A. Turner at PKF
Chartered Accountants, will provide the attendees with property
disposal and winding-up reports.

The company's liquidator can be reached at:

          D. A. Turner
          PKF Chartered Accountants
          14th Floor, 140 William Street
          Melbourne VIC 3000
          Australia


* AUSTRALIA: ASIC Sets Disclosure System for Unlisted Schemes
-------------------------------------------------------------
The Australian Securities & Investments Commission (ASIC)
released consultation papers and draft regulatory guides aimed
at improving disclosure to retail investors by unlisted mortgage
schemes and unlisted property schemes.

When ASIC released its report on new disclosure measures by
unlisted and unrated debentures in April this year, it
foreshadowed extending the concept of an ‘if not, why not’
approach to disclosure against key benchmarks to other areas of
unlisted investments.

Debt and equity market turbulence since late 2007 and a cyclical
softening in the real property market has increased the
financial stress on some sectors where retail investors are
exposed, such as the unlisted mortgage scheme and unlisted
property fund sectors.

ASIC Chairman, Mr. Tony D’Aloisio, said ASIC wanted to ensure
that retail investors were better informed about the nature of
these investment and risks associated with unlisted mortgage
schemes and unlisted property schemes.

‘Our work with unlisted and unrated debentures highlighted to us
the need to put greater ASIC resources into the unlisted and
unrated areas of investment,’ Mr. D’Aloisio said.

‘The proposals released today are the start of a process to
assess in more detail with the market what scope there is to
improve disclosure in these areas of unlisted investments’, he
said.

As with its work in the unlisted and unrated debentures, ASIC
will be producing companion investor guides for both sectors to
assist investors in understanding the enhanced disclosure and
make better informed investment decisions.

ASIC encourages responsible entities to communicate the enhanced
disclosure information to investors in the most effective way
possible and using existing effective investor communication
channels (e.g. by the scheme’s website and regular reports).

ASIC has also included draft guidance for advertising of these
products and our expectations of compliance plans, compliance
committees and compliance plan auditors.

                    Unlisted Mortgage Schemes

In formulating its proposed disclosure approach, ASIC has
identified and profiled more than 200 unlisted mortgage funds,
which represent about $42 billion in funds under management.

ASIC’s draft regulatory guide proposes a benchmark-based
disclosure model for unlisted mortgage schemes. The eight
benchmarks differ from the ones introduced for debentures to
reflect the different risk profile of unlisted mortgage schemes
and the different legal structures and rights associated with
this type of investment.

It is proposed that issuers disclose against the benchmarks on
the ‘if not, why not’ approach.

ASIC is proposing that responsible entities for existing
mortgage schemes report against benchmarks to existing investors
by October 31, 2008.  From this date, new fundraising documents
for new and existing mortgage schemes need to comply with the
‘if not, why not’ benchmarks.

                    Unlisted Property Schemes

ASIC analysed about 300 unlisted property schemes managed by
upwards of 100 responsible entities in formulating its enhanced
approach to disclosure.  These schemes represented approximately
AU$32 billion in assets.

The new proposals centre on eight disclosure principles that are
designed to give issuers guidance on key areas that need to be
prominently disclosed to existing and potential retail
investors.

Clear and prominent disclosure of information referred to in the
disclosure principles will allow retail investors to compare the
relative risk and return of unlisted property scheme
investments.

ASIC does not currently propose to extend the ‘if not, why not’
approach to unlisted property schemes.  ASIC will be reviewing
the unlisted property schemes sector to see whether our guidance
has improved investor disclosures.  ASIC will also analyze the
impact on the sector of any changes in market conditions. Based
on these factors, ASIC may consider whether there is a need to
establish benchmarks for property schemes to disclose against on
an ‘if not, why not’ basis.

ASIC is proposing that responsible entities for existing
unlisted retail property schemes provide updated disclosure to
existing investors applying in the new disclosure principle by
October 31, 2008.  From this date, responsible entities of all
unlisted retail property schemes will need to apply the
disclosure principles to PDSs and ongoing disclosures.

                        Background

The AU$42 billion under management in the unlisted mortgage
scheme sector and the AU$32 billion unlisted property scheme
sector are part of the AU$1.6 trillion total unconsolidated
funds under management.

Comments on the consultation papers and draft regulatory guides
are due by August 5, 2008.

ASIC consulted experts in both the mortgage scheme sector and
the property scheme sector to ensure its proposals were viable
from an industry perspective.


* AUSTRALIA: Consumer Outlook Falls to Lowest Level Since 1992
--------------------------------------------------------------
The Westpac Melbourne Institute Index of Consumer Sentiment fell
by 6.7% in July from 84.7 in June to 79.0 in July.

Westpac’s Chief Economist, Bill Evans, commented, "Following
last month’s 5.6% fall this is another surprisingly large fall
in the Index.  Recall that it was already at a 16 year low
and we have had another month of stable official interest rates.

The Index is now at its lowest level since January 1992 when
consumers were still recovering from the brutal recession of
1990-1991.  In 1990, the low point of that recession, the Index
averaged 73.4, only 7.1% below this month’s read.  Indeed in
1991 – by which time the unemployment rate had jumped 2ppts and
was well on its way to 11% – the Index averaged 81.1, 2.7% above
today’s level.  With current economic conditions not nearly as
dire as in that period, this year’s slide in the Index (down
34.6% over the last year) should be nearing an end.

“Nonetheless these consistently weak reads are pointing to a
period of very weak consumer spending and associated economic
activity.  “News on the interest rate front since the last
survey was mixed. Certainly the Reserve Bank held rates steady
for a fourth consecutive month and has softened its rhetoric.

However, we did see St George Bank announce an increase in its
mortgage rate of 0.2% on the fifth day of the survey period.
That news received extensive media coverage and would have
unsettled respondents.

“The most probable explanation for the sharp fall in the Index
is likely to be petrol and oil prices.  Average petrol prices
rose by 3.4% since the last survey to be up 15.3% over the
last three months.  Crude oil prices were reported to have
increased by 11.5% since the last survey. Households would have
been disturbed by the rise in petrol prices and the prospect of
further increases as oil price rises feed into pump prices.  It
is probably not well appreciated by consumers that crude oil
only represents about half of the petrol price with the other
half being made up of the more stable components of excise tax,
refiner costs and margins. For example, while crude prices have
risen approximately 60% in AUDs over the last year, the petrol
price has increased by ‘only’ 30%.

“There is historical evidence to support petrol prices as the
key explanation behind this recent fall in Sentiment.  Over the
last three months, while official interest rates have been
stable, the Index has fallen by 9.6%. That has coincided with a
15.3% rise in petrol prices.

There is a recent precedent.  Between July and October 2005,
also a period of stable interest rates, the Index fell by 8.7%
while petrol prices rose by 15.8%.

“Nevertheless, other factors would also have undermined
Sentiment.  Since the last survey the share market fell by 9.1%.
We also saw the first fall in employment for 19 months which
was announced on June 12.

“There were substantial falls in three of the five components of
the Index. Households' assessments of their finances relative to
a year ago fell by 6.2% while expectations for their finances
over the next twelve months were down by 12.2%.

Their assessments of economic conditions over the next twelve
months deteriorated by a dramatic 15.5%.  The outlook for
economic conditions over the next five years (up 0.4%) and
whether now is a good time to buy a major household item (down
1.2%) were both relatively stable.

“The Reserve Bank board next meets on August 5.  Of considerable
significance to that meeting will be the announcement of the
June quarter Consumer Price Index on July 23.

Inflation pressures are expected to have remained elevated in
the June quarter.  However, we expect that the Bank will have
lowered its growth forecasts since they were last released on
May 9.  That will accommodate a higher inflation read in June
than was expected back in May and allow the Bank to maintain its
forecast that inflation will move back within the 2–3% band by
the end of 2010. Consequently we do not expect that the bank
will assess the need to raise rates despite higher inflation”,
Mr. Evans said.



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

ARROW ELECTRONICS: Completes Buyout of Achieva Distribution Biz
---------------------------------------------------------------
Arrow Electronics Inc. completed its acquisition of the
components distribution business from parent company Achieva
Ltd., a value-added electronic components distributor in Asia
Pacific.

As reported in the Troubled Company Reporter on March 10, 2008,
Arrow Electronics signed a definitive agreement pursuant to
which Arrow will purchase the components distribution business
from parent company Achieva Ltd.  The transaction was subject to
approval by the shareholders of Achieva Ltd.

Arrow anticipated the transaction will be immediately accretive
to earnings in the first twelve months by $.01 to $.03 per share
and will meet the company's acquisition objectives for return on
invested capital.

"With this acquisition, we have gained a highly experienced
management team and strengthened our position in the ASEAN  or
Association of Southeast Asian Nations and greater China
regions," William E. Mitchell, chairman and chief executive
officer of Arrow Electronics Inc., said.  "The company's
technical focus will enhance our existing demand creation
abilities and position Arrow for continued profitable, above-
market growth in the Asia Pacific region."

                       About Achieva Ltd.

Achieva Ltd. is focused on creating value for its partners
through technical support and demand creation activities.  The
company's product range covers semiconductor components as
application specific integrated circuits, programmable logic
devices, digital signal processing chips and microchip-
controller units.  With over 200 employees, the company has a
presence in eight countries: Singapore, Taiwan, China, India,
Malaysia, Philippines, Thailand, and Korea, and primarily serves
small and medium sized customers in the data communications,
telecommunications, lighting, industrial and digital consumer
end markets.

                     About Arrow Electronics

Headquartered in Melville, New York, Arrow Electronics Inc. --
http://www.arrow.com/-- provides products, services and  
solutions to industrial and commercial users of electronic
components and computer products.   Arrow serves as a supply
channel partner for nearly 600 suppliers and more than 130,000
original equipment manufacturers, contract manufacturers and
commercial customers through a global network of over 270
locations in 53 countries and territories.

The company operates in France, Spain, Portugal, Denmark,
Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden,
Italy, Germany, Austria, Switzerland, Belgium, the Netherlands,
United Kingdom, Argentina, Brazil, Mexico, Australia, China,
Hong Kong, Korea, Philippines and Singapore.

                          *     *     *

Arrow Electronics senior subordinated stock continues to carry
Moody's Investors Service's Ba1 rating.  The company's senior
preferred stock is rated at Ba2.


CHINA SOUTHERN: Ups Fuel Surcharge on Int'l Flights by 30%
----------------------------------------------------------
China Southern Airlines Co. Limited will increase the fuel
surcharge on its international flights by 30% to offset the
surging fuel prices, various reports say.

As reported by the Troubled Company Reporter - Asia Pacific on
June 25, 2008, China Southern sought regulatory approval to
increase fuel surcharges on domestic routes to offset the latest
rise in jet fuel prices.  The government raised jet fuel prices
by CNY1,500 to CNY7,450 per ton, as it also raised the prices of
gasoline and diesel fuel.

Company Chairman Liu Shaoyong said in the report that jet fuel
accounts for about 40% of China Southern's operating costs.  The
latest price hike is expected to cost the airline industry CNY15
billion.

China Southern is now mulling on doing the same thing for
international flights.  The airline, Fang Yan of Reuters
reports, would raise the fuel surcharge for round-trip tickets
on long-haul international flights to CNY2,200 (US$320.70) from
CNY1,600, up 37.5%.  Between China and Australia, Africa, the
US, Europe and Middle East the new one-way fuel surcharge will
be CNY1100 – or about US$160, AviationRecord relates.

According to AviationRecord, one-way fuel surcharge of about
US$80 will apply on routes within the South Asia Subcontinent
and between China and South Asia, East Asia and Korea, while a
one-way fuel surcharge of about US$40 will apply between
Guangzhou and Bangkok.

EtravelBlackboard News says that the surcharge increase will go
into effect from today, July 10.

Reuters says the price hike was a double blow for the airlines,
which have also faced a drop in passenger volume in recent
months triggered in part by May's devastating earthquake in
southwest China.

                       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.


SOLUTIA INC: Signs US$182 Million Deal with Chinese Companies
-------------------------------------------------------------
According to STLtoday.com, Solutia Inc. Chief Executive Officer
Jeffry Quinn signed US$182,000,000 in contracts with certain
Chinese companies on June 16, 2008.

Mr. Quinn was among local industry leaders who signed deals with
Chinese companies during a meeting at the Ritz-Carlton Hotel in
Clayton, STLtoday reported.

Solutia said that 58% of its revenue growth between 2006 and
2001 will come from China, according to STLtoday.  Solutia
exports nylon resins and polymers to China from its Pensacola,
Florida facility, STLtoday noted.

"We look at China not as a place to outsource production and
find cheap labor, but as a vibrant market that needs and desires
the quality products that Solutia produces around the world,"
STLtoday quoted Mr. Quinn.

Solutia manufactures tinted window films and, through a joint
venture, heat-transfer fluid in China, according to STLtoday.

Solutia also recently announced that it is seeking to expand its
Crystex(R) insoluble manufacturing capacity in the Asia-Pacific
region.  Crystex is a vulcanizing agent used in the tyre
industry.

                   St. Louis RCGA Press Release

Chinese Vice Premier Wang Qishan became the highest Chinese
government official yet to visit St. Louis in connection with
the proposal to create an air cargo hub and commercial center
here to facilitate trade between China and the United States.

The Vice Premier arrived on a flight direct from Beijing.  After
his meetings at St. Louis, he went on to Washington, D.C. for
discussions with Secretary of the Treasury Henry Paulson.

"We are extremely pleased to be hosting this visit by Vice
Premier Wang," said Richard C. D. Fleming, President and Chief
Executive Officer of the St. Louis Regional Chamber & Growth
Association (RCGA).  "His presence here speaks volumes about how
seriously the Chinese are exploring the notion of making St.
Louis their Midwestern port of entry to the United States."

While in St. Louis, Vice Premier Wang met with Sens. Christopher
S. "Kit" Bond and Claire McCaskill, as well as with Congressmen
Russ Carnahan, William "Lacey" Clay, Todd Akin, and JoAnn
Emerson, and with Mo. Lt. Gov. Peter Kinder, Missouri House
Speaker Rod Jetton, St. Louis Mayor Francis Slay, St. Louis
County Executive Charlie Dooley, and others, including Robert A.
Reynolds Jr., RCGA's chairman and chairman, president, and chief
executive officer of Graybar.  The meetings took place at the
Ritz-Carlton Hotel in Clayton, and were followed by a luncheon
where the Vice Premier made remarks that were open to the media.

In conjunction with Vice Premier Wang's visit, Chinese
government officials signed four agreements with local and state
businesses and organizations.  The agreements were with the
United Soybean Board, United States Soybean Export Council, and
the American Soybean Association; the Missouri Department of
Agriculture; Emerson (NYSE: EMR); and Solutia, Inc. (NYSE: SOA).

Solutia signed memorandums of understanding with three companies
for the purchase of Solutia's Vydyne(R) nylon resin, which is
used by Chinese manufacturers of automotive, electrical,
consumer, and industrial products.

The three companies, and the size of the respective contracts,
are Guangzhou Kingfa Science and Technology Co. Ltd.,
US$84,000,000; Hangzhou Yongchang Nylon Co. Ltd., US$56,000,000;
and Liaoning Yinzhu Chem-Tex Group Co., US$42,000,000.

                     About the St. Louis RCGA

The St. Louis Regional Chamber & Growth Association is the
chamber of commerce and economic development organization for
the 16-county, bi-state region.  With nearly 4,000 member
companies, RCGA members constitute 40% of the regional work
force.  The mission of the RCGA is to unite the region's
business community, and to engage dynamic business and civic
leadership to develop and sustain a world-class economy and
community.

                        About Solutia Inc.

Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,     
manufactures and sells chemical-based materials, which are used
in consumer and industrial applications worldwide.

The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03-
17949).  When the Debtors filed for protection from their
creditors, they listed $2,854,000,000 in assets and
US$3,223,000,000 in debts.

Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel.  Trumbull Group
LLC is the Debtor's claims and noticing agent.  Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice.  The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.

On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement.  On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan.  The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007.  On Oct. 22,
2007, the Debtor re-filed a Consensual Plan & Disclosure
Statement and on Nov. 29, 2007, the Court confirmed the Debtors'
Consensual Plan.  Solutia emerged from chapter 11 protection
Feb. 28, 2008.  (Solutia Bankruptcy News, Issue No. 128;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).

                          *     *     *

As reported in the Troubled Company Reporter on March 4, 2008,  
Standard & Poor's Ratings Services raised its corporate credit
rating on Solutia Inc. to 'B+' from 'D', following the company's
emergence from bankruptcy on Feb. 28, 2008, and the
implementation of its financing plan.  The outlook is stable.
     
S&P also affirmed its 'B+' rating and '3' recovery rating on
Solutia's proposed senior secured term loan.  In addition, S&P
assigned its 'B-' rating to Solutia's $400 million unsecured
bridge loan facility.  S&P also withdrew its 'B-' rating on the
proposed $400 million unsecured notes, which have been replaced
by the bridge facility in Solutia's capital structure.



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

MERECHAL LIMITED: Liquidator Quits Post
---------------------------------------
On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator
for Merechal Limited.


MAY KAY: Liquidator Quits Post
------------------------------
On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator
for May Kay Development Company Limited.


OBVIO KING: Liquidator Quits Post
---------------------------------
On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator
for Obvio King Company Limited.


PAK KWONG: Liquidator Quits Post
--------------------------------
On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator
for Pak Kwong Development Company Limited.


PARKER HOLDING: Sees 18% Growth in "Same-Store" Sales for 1H '08
----------------------------------------------------------------
Parkson Retail Group Limited forecasts an 18% growth in its
same-store sales in the first quarter of 2008 and will keep an
over 10% increment in the first two quarters, SinoCast News
reports.

The company's June sales, SinoCast News relates, showed a strong
growth trend although the figure in May was affected by the
earthquake in southwestern China's Sichuan Province.  Thus, the
group could keep a stable operating profit margin in the first
six months.

Meanwhile, the report says the company also plans to acquire
majority stakes in Nanning Brilliant Parkson Commercial Co. Ltd.
and Tianjin Parkson Retail Development Co. Ltd. in the Mainland
China from the Malaysian controlling shareholder Parkson
Holdings Bhd.

                    About Parkson Retail Group

Headquartered in Hong Kong, Parkson Retail Group Limited
operates department stores including 37 "Parkson"branded
department stores and 2 "Xtra"branded supercentres situated in
26 cities in the People's Republic of China.  Other activities
include provision of consultancy and management services,
research and development of computer software and investment
holding.

                          *     *     *

As of July 10, 2008, Parkson Retail Group Limited continues to
carry Moody's "Ba1" Long-Term Corporate Family Ratings with a
Stable outlook.

In May 2008, Moody's said Parkson's Ba1 rating reflects the
retailer's well-recognized brand name and national coverage,
based on its over-14 years' operating track record in China.

According to Moody's, Parkson maps to a borderline Ba1/Baa3.  
The rating assumes no need for Parkson to render support to its
53.6% parent Parkson Holdings Berhad and group companies.  

Moody's added that Parkson has low inventory exposure in regard
to concessionaire sales and has strong liquidity -- given the
cash generative nature of the business, Parkson does not
maintain standby credit facilities.

On July 3, 2008, Moody's said it has a stable rating outlook for
Asia Pacific's retailing and consumer-product sectors over the
next 12-18 months despite rising economic uncertainty in the
region and worldwide.


PING FAI DEV'T: Liquidator Quits Post
-------------------------------------
On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator
for Ping Fai Development Company Limited.


QUETICO LIMITED: Liquidator Quits Post
-------------------------------------
On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator
for Quetico Limited.


RUSHFORD COMPANY: Liquidator Quits Post
---------------------------------------
On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator
for Rushford Company Limited.


RANPECT COMPANY: Liquidator Quits Post
--------------------------------------
On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator
for Ranpect Company Limited.


SHIELD DEV'T: Liquidator Quits Post
-----------------------------------
On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator
for Shield Development Limited.


SHUREN DEV'T: Liquidator Quits Post
-----------------------------------
On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator
for Shuren Development Company Limited.



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

GENERAL MOTORS: Denies News of Further Brands Sale to Cut Costs
---------------------------------------------------------------
Mark LaNeve, General Motor Corp.'s head of sales, denied
speculations that the largest U.S. car manufacturer intends to
sell or close more brands, an alternative that would streamline
costs, The Wall Street Journal relates, citing a letter to
dealers obtained by Down Jones Newswires.  The letter was in
response to a WSJ news story on Monday that cited unnamed
sources.

Mr. LaNeve's letter recounts that it has no plans to sell the
Saturn brands as the paper reported.  Although the company has
dropped the Ion, sales for the Aura, Vue, Outlook, and Astra is
going better.  As disclosed in the Troubled Company Reporter on
July 2, 2008, The Saturn division had strong sales in June with
Sky total sales up 62%, Aura up 41% and Vue up 40%.  The Astra
had sales of nearly 900 vehicles.  GM's popular crossover Buick
Enclave, GMC Acadia and Saturn Outlook together accounted for
more than 8,800 vehicle sales in the month as demand for the
vehicles continues to strain available supply.

As disclosed in the Troubled Company Reporter on June 26, 2008,
GM hired Citibank to evaluate strategic alternatives for the
automaker's Hummer brand, including the assessment of
prospective buyers, Reuters reports, citing GM's U.S. sales
chief Mark LaNeve.  GM CEO Rick Wagoner said the move is in
response to the rapid rise n oil prices and the resulting
changes in the U.S., changes that it believes are more
structural than cyclical.  Sales of the Hummer brand dropped 62%
in May, compared with May 2007 and sales of the brand were off
36% January through May.

Mr. LaNeve also stated in the letter to dealers that GM's June
sales were higher than Ford, Chrysler and Toyota on a year-over-
year basis.  Saturn sales were up 9% retail.  Mr. LaNeve urged
dealers to focus on sales and customers.  He insisted that due
to the automotive industry downturn, rumors abound.  He has
asked dealers to contact him directly for any questions.

A full-text copy of Mark LaNeve's Letter to GM Dealers obtained
by Dow Jones Newswires is available for free at:

      http://bankrupt.com/misc/MarkLaNeveLettertoDealers.doc

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
US$145,741,000,000 and total debts of US$186,784,000,000,
resulting in a stockholders' deficit of US$41,043,000,000.  
Deficit, at Dec. 31, 2007, and March 31, 2007, was
US$37,094,000,000 and US$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.


SHAH ALLOYS: CARE Withdraws “D” Rating on Rs.100 cr NCDs
--------------------------------------------------------
Subsequent to the approval of the restructuring scheme by the
corporate debt restructuring (CDR) cell, the terms and
conditions of the non-convertible debentures of Shah Alloys
Limited originally rated by CARE have been significantly
altered.

As per the terms of the restructuring scheme approved by the CDR
cell, the redemption schedule of the rated NCDs, which was in
the ratio of 30:30:40 falling due in FY 2009, FY 2010 and FY
2011 respectively, has now been rescheduled to 32 equal
quarterly instalments beginning from 1/10/2009 to 30/09/2017.

Further, the rate of interest, which was floating rate for an
amount of Rs.80 crore and fixed rate of 9% p.a. for balance
Rs.20 crore, has been revised to a fixed rate of 10% p.a. or
actual rate, whichever is lower.

As per the scheme, with the change in the terms and conditions
of the NCDs, it becomes a new instrument not rated by CARE.  
Accordingly, the rating accorded to such NCDs by CARE will no
longer be valid, thereby necessitating the withdrawal of the
rating.

As such, consequent to the implementation of the scheme, the
CARE D rating accorded to outstanding NCDs aggregating Rs.100 cr
of SAL stands withdrawn.

On January 3, 2008, CARE revised the rating assigned to the
outstanding NCD issue of Shah Alloys for an amount of Rs 100 cr
to CARE D [Single D].

Instruments with this rating are of the lowest category.  They
are either in default or are likely to be in default soon.  The
revision in rating is on account of company’s approach to the
CDR Cell for a complete debt restructuring and delay on
servicing its debt obligations pending the approval of the CDR
package from the CDR Cell.

Shah Alloys is into manufacturing of wide range of stainless
steel (SS) products viz. flats, rounds, black/bright bars,
slabs, plates, billets, Hot Rolled Coil (HRC) and Cold Rolled
Coil (CRC).  It is the second largest player in SS industry. It
has also gone into backward integration through its group
company, SAL Steel Limited (SSL), which is into manufacturing of
Sponge Iron and Ferro Alloys.

During H1FY08, there has been a decline in total income and the
PBILDT margin became negative, as compared to the corresponding
period in the previous year mainly on account of sharp
fluctuation in nickel prices which resulted into unrealizable
book debts and cancellation of orders on account of sudden fall
in selling prices of stainless steel.  Decline in PBILDT also
resulted into cash loss for H1FY08, thereby resulting into
liquidity crunch for Shah Alloys.


TATA POWER: Wins Power Supply Ruling Against Reliance Energy
------------------------------------------------------------
Tata Power Company obtained a go signal from the Supreme Court
to supply electrical energy in retail directly to consumers,
whose maximum demand is less than 1000 KVA within its area of
supply as stipulated in its licenses.

The utility company can now supply electricity to consumers in
Mumbai and its suburbs, which area is also served by Reliance
Energy Ltd.

The ruling reversed the earlier orders of Maharashtra
Electricity Regulatory Commission (MERC) and the Appellate
Tribunal restraining the Tata group company from effecting the
supply, The Times of India says.

The Hindu reports that a bench headed by Justice Altamas Kabir
turned down Reliance Energy's contentions that Tata Power had
license to supply power only to bulk customers and should
neither be permitted to provide new connections to retail
consumers nor allowed to poach its existing consumers in its
licensed area.

"...we have no hesitation in holding that the Appellate Tribunal
for Electricity (ATE) erred in coming to a finding that under
its licenses Tata Power was entitled to supply energy only in
bulk and not for general purposes and in retail to all
consumers, irrespective of their demand....," the bench's ruling
said as cited by The Economic Times.

The bench also said that MERC had overstepped its jurisdiction
by issuing orders which had not been prayed for by Reliance
Energy, The Economic Times relates.

                   About Tata Power Company Ltd

Tata Power Company Ltd. -- http://www.tatapower.com/-- is a
licensee engaged in generation and supply power to bulk
consumers in the Mumbai metropolitan area.  The company operates
four thermal plants with a combined capacity of 1,350 MW, and
three hydroelectric plants aggregating 447 MW; all of these
supply power to the Mumbai licence area.  The company also has a
plant that supplies power to Tata Steel.  In addition, Tata
Power has an 81-MW independent power project at Belgaum that
sells power to Karnataka Power Transmission Corporation Limited.

                          *     *     *

Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered
its corporate credit rating on India's Tata Power Co. Ltd. to
'BB-' from 'BB+'.  S&P said the outlook is stable.  At the same
time, the rating on Tata Power's US$300 million senior unsecured
bonds have been lowered to 'BB-' from 'BB+'.

Moody's Investors Service, on July 3, 2007, downgraded the
corporate family rating of Tata Power Company to Ba3 from Ba1.
At the same time, Moody's downgraded its senior unsecured
bond rating to B1 from Ba2.  Moody's said the ratings outlook is
negative.

All ratings still hold to date.


* CRISIL: Fuel Prices & Inefficiencies Spur Airlines' Losses
------------------------------------------------------------
According to CRISIL Research, airline companies in India would
continue to incur losses even if crude oil prices decline
significantly if they do not quickly undertake a revenue
augmentation exercise in conjunction with cost reduction
measures and efficiency improvement initiatives.

The sharp increase in crude oil prices in the first half of 2008
has led to a corresponding rise in the price of aviation turbine
fuel (ATF) for all airline companies, due to which they are
expected to post heavy losses.  Fuel cost as a percentage of
total operating costs has increased by 300-600 basis points.

CRISIL Research has analysed the movement in breakeven ticket
prices of domestic carriers at various prices of crude oil and
at varying load factors and concluded that a structural increase
in ticket prices is required in the near term.

Mr. Sudhir Nair, Head, CRISIL Research, elaborated, “Although
airlines have gradually increased the fuel surcharge to counter
the impact of rising ATF prices, they continue to remain in the
red.  This incessant increase in the price of ATF and the
consequent increase in ticket prices have led to a reduction in
growth of passenger traffic, thereby leading to a drop in
passenger load factors.  Even at sharply lower crude oil prices,
airlines will not break-even; a structural increase in ticket
prices is required in the near term.”  This has resulted in
airlines adopting a co-operative route to profitability, under
which both, Low Cost Carriers (LCCs) and Full Service Carriers
(FSCs) have fixed the minimum base fare, fuel surcharges and
other taxes.  The same needs to continue till the airlines are
back in the black.

Mr. Nair added, “More critical for airlines is an urgent need
for efficiencies.  Measures include selectively reducing
capacities in order to improve load factors and reducing
dependence on leased aircraft resulting in a lower aircraft
rental outgo besides employee productivity enhancement measures.  
As the fare differential between LCCs and FSCs has decreased
considerably, consolidated airlines could also consider a single
brand FSC operation.  This would not only help improve passenger
load factors and reduce other operating costs, but would also
help augment revenues through superior pricing.”



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

ATARI INC: JH Cohn Expresses Going Concern Doubt
------------------------------------------------
J.H. Cohn LLP raised substantial doubt about Atari, Inc.'s
ability to continue as a going concern after it audited the
company's financial statements for the year ended March 31,
2008.  The auditor pointed to the company's significant
operating losses.

                       Management Statement

During fiscal 2007, the company sold a number of intellectual
properties and development facilities in order to obtain cash to
fund its operations.  During 2007, the company raised around
US$35.0 million through the sale of the rights to the Driver
games and certain other intellectual property, and the sale of
the company's Reflections Interactive Ltd. and Shiny
Entertainment studios.  By the end of fiscal 2007, the company
did not own any development studios.

The reduction in the company's development activities has
significantly reduced the number of games the company publish.  
During fiscal 2008, the company's revenues from publishing
activities were US$69.8 million, compared with $104.7 million
during fiscal 2007.

For the year ended March 31, 2007, the company had an operating
loss of US$77.6 million, which included a charge of US$54.1
million for the impairment of the company's goodwill, which is
related to the company's publishing unit.  For the year ended
March 31, 2008, the company incurred an operating loss of around
US$21.9 million. The company has taken significant steps to
reduce its costs such as the May 2007 and November 2007
workforce reduction of around 20% and 30%, respectively.  The
company's ability to deliver products on time depends in good
part on developers’ ability to meet completion schedules.  
Further, the company's releases in fiscal 2008 were even fewer
than the company's releases in fiscal 2007.  In addition, most
of the company's releases for fiscal 2008 were focused on the
holiday season.  As a result the company's cash needs have
become more seasonal and the company faces significant cash
requirements to fund its working capital needs.

Although, transactions provided cash financing that should meet
the company's need through the company's fiscal 2009 second
quarter (i.e., the quarter ending Sept. 30, 2008), management
continues to pursue other options to meet the company's working
capital cash requirements but there is no guarantee that the
company will be able to do so, if the proposed transaction in
which majority stockholder, Infogrames Entertainment S.A., would
acquire the company is not completed.

Historically, the company have relied on IESA to provide limited
financial support, through loans or, in recent years, through
purchases of assets.  However, IESA has its own financial needs,
and its ability to fund its subsidiaries’ operations, including
the company's, is limited.  Therefore, there can be no assurance
the company will ultimately receive any funding from IESA, if
the proposed transaction in which IESA would acquire Atari is
not completed.

The company continues to explore various alternatives to improve
the company's financial position and secure other sources of
financing which could include raising equity, forming both
operational and financial strategic partnerships, entering into
new arrangements to license intellectual property, and selling,
licensing or sub-licensing selected owned intellectual property
and licensed rights.  The company continues to examine the
reduction of working capital requirements to further conserve
cash and may need to take additional actions in the near-term,
which may include additional personnel reductions.

                           Financials

The company posted a net loss of US$23,646,000 on net revenues
of US$80,131,000 for the year ended March 31, 2008, as compared
with a net loss of US$69,711,000 on net revenues of
US$122,285,000 in the prior year.

At March 31, 2008, the company's consolidated balance sheet
showed US$33,433,000 in total assets and US$53,845,000 in total
liabilities, resulting in US$20,412,000 stockholders' deficit.  

The company's consolidated balance sheet at March 31, 2008, also
showed strained liquidity with US$25,076,000 in total current
assets available to pay US$37,872,000 in total current
liabilities.

A full-text copy of the company's 2008 annual report is
available for free at http://ResearchArchives.com/t/s?2f44

                        About Atari Inc.

New York City-based Atari Inc. is a publisher of video game
software that is distributed throughout the world and a
distributor of video game software in North America. Most of the
products it publishes and distributes are games developed by or
for Infogrames Entertainment S.A., or IESA, a French corporation
listed on Euronext, which owns approximately 51% of its stock.

Atari has offices in Brazil, the United Kingdom and Japan.


* JAPAN: Mobile Shipments Down 10.7% in May
-------------------------------------------
Japan's mobile phone shipments in May decreased 10.7% from a
year before to 3,501,000 units, down for the fourth straight
month, Jiji Press reports, citing the Japan Electronics and
Information Technology Industries Association.

The report says the drop came in reaction to strong shipments in
the same month last year, and that consumers in the reporting
month were waiting for new model launches in the summer.

Shipments of handsets capable of receiving digital terrestrial
broadcasts jumped 2.8-fold to 2,172,000 units, with cumulative
shipments totaling 33,065,000 units, while shipments of personal
hand phone system handsets rose 7.9% to 150,000 units, the
report adds.



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

OCI BERHAD: MITI Approves Proposed Restructuring Scheme
-------------------------------------------------------
The Ministry of International Trade and Industry (MITI) approved
OCI Berhad's Proposed Restructuring Scheme, which is subject to
the company's obtaining the approval from the Securities
Commission for the Proposed Restructuring Scheme and complying
with the Guidelines on the Acquisition of Interests, Mergers and
Take-overs by Local and Foreign Interests.

In addition, the MITI had approved the relaxation on compliance
with OCI’s existing equity condition for a period of three years
from the date of the Approval Letter.

The company's restructuring scheme composes of:

   * Proposed Scheme of Arrangement with Shareholders;
   * Proposed Rights Issue;
   * Proposed Exemption;
   * Proposed Scheme of Arrangement with Creditors;
   * Proposed Transfer of Listing Status; and
   * Proposed Disposal

OCI Berhad manufactures adhesives used in the production of
shoes for the footwear, toy making, building and construction,
automotive, furniture and packaging industries.  OCI
manufactures and markets a range of sealants and adhesives for
various consumer and industrial purposes in 70 countries around
the world.  On January 24, 2006, the Company disposed off its
entire 51% equity interest in Tongyong Resin Chemical Industry
Co. Ltd.

                          *     *     *

The company is an affected listed issuer as Ernst & Young
expressed substantial doubt regarding the company's ability to
continue as a going concern after having audited the company's
financial statements for the year ended June 30, 2007.  The
auditor pointed to the company's losses and, together with its
subsidiaries, the default on the repayment of various financial
obligations.


PECD BHD: Court Grants Interim Restraining Order Until July 14
--------------------------------------------------------------
The High Court of Kuala Lumpur granted an interim restraining
order to PECD Berhad, whereby all further proceedings including
suits, winding-up, execution and arbitration proceedings as well
as any intended or future proceedings against the company and
its wholly owned subsidiary, PECD Construction Sdn Bhd (PCSB) to
be restrained and stayed until July 14, 2008.

PECD Berhad is engaged in investment holding and provision of
management services.  The company operates in four business
segments: construction, EPCC oil and gas, property development
and others.  Its wholly owned subsidiaries include Peremba
Construction Sdn. Bhd., which is engaged in general construction
and investment holding and Wong Heng Engineering Sdn. Bhd.,
which is engaged in investment holding and engineering,
procurement, construction and commissioning emphasizing in the
oil and gas, as well as the power sectors.  PECD Berhad's 70%-
owned subsidiary is Peremba Jaya Holdings Sdn. Bhd., which is
engaged in property development, construction and investment
holding.

                          *     *     *

Malaysian Rating Corp. Bhd downgraded PECD Berhad's
MYR200-million serial fixed rate bonds to BB+ from BBB-.
The rating outlook remains negative.

The downgrade reflects the major operational and strategic
challenges currently faced by PECD as well as continued
deterioration in its credit metrics, and recognizes the
increased execution challenges confronting management as it
pursues its turnaround strategy.

The Troubled Company Reporter-Asia Pacific reported on
March 7, 2008, that the company was classified as an Affected
Listed Issuer under Practice Note No. 17/2005 of the Listing
Requirements of Bursa Malaysia Securities Berhad, since the
company's shareholders' equity deficit reached MYR914.9 million
as at December 31, 2007.


TECHVENTURE BHD: High Court Grants Summary Judgment Against TVSB
----------------------------------------------------------------
The Kuala Lumpur High Court has allowed an application for
summary judgement against Techventure Berhad's wholly owned
subsidiary, TVB Ventures Sdn Bhd (TVSB), made by a creditor,
Aseam Credit Sdn Bhd via a summons served on TVSB on August 16,
2004.

Aseam Credit is asserting a MYR240,208 claim under a hire-
purchase agreement with Aseam Credit to finance freezers in
TVSB’s operations, plus interest at 2% p.a. from May 14, 2004,
until final realisation and costs.  The hire-purchase facility
is part of the debt being restructured under Techventure's
proposed restructuring scheme submitted to the Securities
Commission for consideration as announced earlier.

The hire-purchase agreement was terminated after TVSB failed to
pay the monthly instalments due to operational losses, following
which Aseam Credit filed the claim.

Techventure and six of its subsidiaries had been granted a
restraining order, which expired on September 22, 2006.  An
application for an extension of the RO was made to the High
Court on September 22, 2006.  Hearing of the application for an
extension of the RO was adjourned several times by the High
Court.  The learned judge hearing Aseam Credit’s claim adjourned
hearing pending the disposal of the application for an extension
of the RO.  On March 6, 2008, Techventure and the six
subsidiaries withdrew the application, in view of the fact that
there were material changes to the original restructuring scheme
upon which the RO was granted, to prepare to file a fresh
application.   Pending the filing of a fresh application for the
RO, the judge hearing Aseam Credit’s claim granted the order
against TVSB.

Other than legal costs and the interest claimed which are not
ascertainable yet, there is no financial or operational impact
on the Group, Techventure says.

Currently, the company said its Board of Directors would
evaluate the options available in response to the judgment and
will make the relevant disclosure to Bursa Securities in due
course.

                      About Techventure Berhad

Techventure Berhad is based in Selangor, Malaysia. Apart from
being a corrugated cartons manufacturer, the Group is also
involved in the production of rubber insulation materials and
roto-molded plastic products like septic tanks, playground
equipment, traffic barriers, and water tanks. It markets its
entire corrugated cartons and plastic products locally while
about 80% of the rubber insulation materials are exported. In
addition, the Group also manufactures ice cream.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on May 10,
2006, that Bursa Malaysia Securities Berhad identified
Techventure Berhad as an affected listed issuer having triggered
two of the criteria of the Amended Practice Note 17 category.

The company fell under the category because:

-- the auditors have expressed a modified opinion with
    emphasis on Techven's going concern status in the latest
    audited accounts for the financial year ended Dec. 31, 2005,
    and

-- there are defaults in payment by Techven and its major
    subsidiaries as announced pursuant to Practice Note
    No. 1 and Techven is unable to provide a solvency
    declaration to Bursa Malaysia Securities Berhad.

  

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

ABLE AUTO: Wind-Up Petition Hearing Set for July 24
---------------------------------------------------
The High Court at Napier will hold a hearing on July 24, 2008,
at 10:00 a.m., to consider an application putting Able Auto
Spray Limited into liquidation.

The application was filed on April 10, 2008, by Resene Santano
Limited.

The plaintiff's address for service is at:

          Receivables Management (NZ) Limited
          Level 8, 7 City Road
          Auckland
          Postal Address: PO Box 5519
          Wellesley Street
          Auckland
          Facsimile: (09) 919 3697

Amy Marie Hutton, is the plaintiff’s solicitor.


ADAMS DAIRY: Wind-Up Petition Hearing Set for July 18
-----------------------------------------------------
The High Court at Auckland will hold a hearing on July 18, 2008,
at 10:45 a.m., to consider an application putting Adams Dairy
Foods Limited into liquidation.

The application was filed on April 11, 2008, by Sulkem Company
Limited.

The plaintiff's address for service is at:

         Account Collection Service Limited
         33B Constellation Drive
         Mairangi Bay, North Shore City
         Postal Address: PO Box 100163
         North Shore Mail Centre
         Auckland 0745

C. N. Lord, is the plaintiff's solicitor.


AUSTRAL PACIFIC: KPMG LLP Expresses Going Concern Doubt
-------------------------------------------------------
KPMG LLP raised substantial doubt about Austral Pacific Energy
Ltd.'s ability to continue as a going concern after it audited
the company's financial statements for the year ended Dec. 31,
2007.  

The auditor reported that the company has suffered recurring
losses from operations, has a working capital deficit and a net
capital deficiency and has also been unable to generate net cash
from operating activities.  In addition, the company is in
breach of several covenants relating to its bank loan facility.

For the year ended Dec. 31, 2007, the company had an accumulated
deficit of $63,118,912.  The company also had a working capital
deficit of $29,982,748 and a shareholders’ deficit of $3,290,102
as at Dec. 31, 2007.  In addition the company has also been
unable to generate net cash from operating activities for each
of the years in the three year period ended Dec. 31, 2007.  For
the five months ended May 31, 2008, the company had an unaudited
net loss of $8,212,599 and unaudited accumulated deficit of
$71,331,511.  The company also had an unaudited working capital
deficit of $20,625,713 and an unaudited shareholders’ equity of
$4,361,755 as at May 31, 2008.  The company’s cash balances and
working capital are not sufficient to fund all of its
obligations with respect to its ongoing work program
requirements related to the exploration permits.  In addition,
the company is in breach of several covenants relating to its
Investec Bank (Australia) Ltd. loan facility, following delays
in completing the project in accordance with established
timelines.  Accordingly, the loan facility and hedging
arrangements have been disclosed as current liabilities in the
Consolidated Financial Statements.  The factors raise
substantial doubt about the company’s ability to continue as a
going concern for a reasonable period of time.

The company and Investec have agreed, in the interim, to
restructure the facility, with the key financial terms requiring
a principal payment of $4.2 million on March 31, 2008
(reflecting the scheduled $2.2 million due; and the further $2
million paid from the restricted cash held in respect of the
loan facility and applied in inverse order of maturity), since
paid.  In addition, a further $3.5 million was to be paid on
completion of the announced sale of the PNG Stanley (PRL 4) and
PRL 5 assets (to be applied as $2.05 million against the June 30
scheduled principal due; and the balance of $1.45 million
applied in inverse order of maturity), since paid on May 30,
2008.  The crude oil forward sales contracts  were closed out on
May 27, 2008, funded by a short term loan ($17.8 million) from
Investec (repayable on Dec. 15, 2008).  It has been further
agreed that any cash in excess of operating requirements will be
used to reduce principal outstanding.  The interest rate margin
has been increased by an additional 2% on the total principal
outstanding for the period Jan. 31 to Dec. 15, 2008, inclusive.  
In addition, the company issued to Investec 1,056,338 shares to
the value of $750,000 (based on the Austral share price at March
19, 2008), on May 23, 2008.  There are several commercial and
administrative conditions which must also be complied with.

                     Events After Dec. 31, 2007

Peter Hazledine has been appointed to the board of directors on
Jan. 1, 2008, and Ronald Bertuzzi resigned from the board of
directors on June 6, 2008.

Kanuka Energy Limited and Arrowhead Energy Limited which are
both subsidiaries of Austral Pacific Energy (NZ) Limited were
merged with Totara Energy Limited with effect from Feb. 1, 2008.  
Totara Energy Limited is the surviving company.

On Feb. 28, 2008, a private placement of 12,500,000 shares with
12,500,000 warrants attached was completed at a unit price of
$1.20 per unit.  A unit consists of one common share and one
share purchase warrant.  The warrants are convertible one-for-
one into common stock for tweve months from closing at exercise
price of $2.25.  At the balance sheet date $9,679,614 had been
received and recorded as net cash received in advance.

The company sold its interests in PNG Stanley (PRL 4) and PRL 5
assets for $3.5 million to subsidiary of Horizon Oil Limited
(ASX: HZN), which was completed on May 30, 2008, although legal
transfer of the licenses remains subject to receipt of
governmental approval.

The company sold its interests in Douglas (PPL 235) and in PPL
261 to a subsidiary of Rift Oil plc (AIM: RIFT) for $5 million,
initial completion of such transaction occurring on May 29, 2008
($2 million), with further payments due within 3 months ($1.5
million), and within 12 months ($1.5 million), or earlier upon
receipt of governmental approval of the legal transfers of the
licenses.

Farm-out of an 80% interest in PEP 38524 to Australian Worldwide
Exploration Ltd. effective May 20, 2008.  In return AWE has
undertaken to fully fund acquisition of some 350km of 2D seismic
within the permit.  The farm-out is subject to approval of a
revised work program by the Ministry of Economic Development.

The company has entered into an agreement to purchase an
additional 5.1% of the Cardiff permit to bring the total share
to 50%.  The payment of NZ$400,941 consists of the purchase
price of $119,000 and the company’s share of outstanding cash
calls at time of purchase of NZ$281,941.  This acquisition is
subject to the completion of a third party transaction related
to this permit.

The company has reached an agreement in principle with the
holders of the preferred shares for the conversion of the
preferred shares into convertible debentures, with the expected
effective date from June 30, 2008.  The convertible debentures
would have similar commercial terms, but would not be entitled
to any voting rights.  The conversion will be subject to a
number of conditions precedent, including the approval of the
TSX-V.

The close-out of the company’s forward oil contracts (including
placement of a series of $90 put options) funded by Investec at
a cost of $17.9 million.  The company will recognize a loss of
$9.7 million on these forward oil contracts in 2008 in addition
to the unrealized losses of $7.3 million previously recognized
in 2007, resulting in a total loss of $17 million.

                            Financials

The company posted a net loss of $22,030,249 on net revenues of
$5,922,975 for the year ended Dec. 31, 2007, as compared with a
net loss of $13,406,828 on net revenues of $871,032 in the prior
year.

At Dec. 31, 2007, the company's consolidated balance sheet
showed $62,732,060 in total assets and $66,022,162 in total
liabilities, resulting in $3,290,102 stockholders' deficit.  

The company's consolidated balance sheet at Dec. 31, 2007, also
showed strained liquidity with $19,003,104 in total current
assets available to pay $48,985,852 in total current
liabilities.

A full-text copy of the company's 2007 annual report is
available for free at http://ResearchArchives.com/t/s?2f48

                      About Austral Pacific  

Austral Pacific Energy Ltd is a limited liability company
incorporated in British Columbia under the Business Corporations
Act (British Columbia).  The company domiciles in New Zealand.  
The company is primarily engaged in the acquisition,
exploration, appraisal and development of oil and gas properties
in New Zealand and Papua New Guinea.


CNI PUBLICATIONS: Brown and Rodewald Appointed as Liquidators
-------------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Kenneth
Peter Brown and Thomas Lee Rodewald were appointed liquidators
of CNI Publications Limited on June 1, 2008.

The Liquidators can be reached at:

         Rodewald Hart Brown Limited
         127 Durham Street
         PO Box 13380
         Tauranga
         Telephone: (07) 571 6280
         Website: www.rhb.co.nz


HAMILTON BUILDING: Brown and Rodewald Appointed as Liquidators
--------------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Kenneth
Peter Brown and Thomas Lee Rodewald were appointed liquidators
of Hamilton Building Solutions Limited on June 1, 2008.

The Liquidators can be reached at:

         Rodewald Hart Brown Limited
         127 Durham Street
         PO Box 13380
         Tauranga
         Telephone: (07) 571 6280
         Website: www.rhb.co.nz


LANDCO LTD: Property Market Slump Hits Holdings Value
-----------------------------------------------------
The property market slump has hit the value of Landco Limited's
portfolio as well as made potential buyers much harder to find,
the National Business Review reports.

According to the report, last November, Landco put its assets on
the block, which
at the time were said to be worth NZ$1 billion, but has still
not been able to find a buyer.

In yet another blow to the company, the Business Review says
Landco co-owners Greg Olliver and the Todd family have been in
tense negotiations about the company's future, leaving its
debtors hanging in the balance.

Market sources told the Business Review that potential outcomes
were the Todd family buying Mr Olliver's 50.5% stake; or Landco
being placed into receivership.

Landco spokesman Dennis Lynch dismissed the possibility of
receivership, the report says.

                       About Landco

New Zealand-based Landco Limited -- http://www.landco.com/--   
invests in and actively manages a portfolio of prime residential
land, agribusiness and vineyard properties in selected locations
across New Zealand.


LOMBARD GROUP: Incurs NZ$3.26 Mil. Net Loss in FY2008  
-----------------------------------------------------
Lombard Group said that its financial performance for the year
in review has been dramatically affected by the receivership of
the Group's significant subsidiary, Lombard Finance &
Investments Limited, which occurred on April 10, 2008.  While
the audited Group result is a loss of NZ$3.26 million, the Board
recognizes that does not reflect the full impact of the
receivership.

The financial statements have been prepared from the information
that the Group held as at the date of the receivership of
Lombard Finance & Investments Limited and its subsidiaries,in
the form of incomplete draft management accounts as at March 31,
2008.

The Group said given the Trustee's appointment of receivers on
April 10, 2008, the Directors believe it is appropriate to fully
impair the balance sheet of Lombard Finance & Investments
Limited and its subsidiaries.  However, strictly in compliance
with IFRS the receivership occurred after the March 31 balance
date and its full impact should be recorded in the Group
financial statements for the 2008/2009 financial year.

Accordingly, as reflected in the preliminary announcement made
on May 31, 2008, the Group's Board has sought to show the state
of the Group post the receivership of Lombard Finance &
Investments Limited by including in the financial statement an
additional set of information which has been prepared on a pro-
forma and unaudited basis.

The Group's unaudited consolidated pro-forma after-tax result
for the year is a loss of NZ$21.0 million.  This includes
NZ$20.2 million impairment loss resulting from the write down of
Lombard Group Limited's NZ$42 million investment (including
debentures) in Lombard Finance & Investments Limited, and NZ$5.7
million impairment of goodwill. Shareholders' equity has reduced
to NZ$1.9 million.

The Company said it will separately release a table showing the
differences between its preliminary announcement (which showed a
loss of NZ$21.7 million) and its revised pro-forma (loss of
NZ$21.0 million) and audited (loss of NZ$3.26 million) results.

                        About Lombard Group

Headquartered in Wellington, New Zealand, Lombard Group Limited
(NZE:LOM) -- http://www.lombardgroup.co.nz/-- is primarily   
engaged in the business of investment in a portfolio of
mortgage-secured loan advances and other advances.  This is
carried out through the Company's principal subsidiary, Lombard
Finance & Investments Limited.  Lombard Finance provides
property finance to selected customers.  Lombard Group's lending
within the property sector is secured by property and includes
lending for residential and commercial property investment,
property development, bridging loans and mezzanine finance.  The
Company’s subsidiary, Lombard Asset Finance Limited, provides
loans to business customers, including hire purchase, lease
finance and general business funding.  In March 2008, the
Company’s wholly owned subsidiary, Lombard Mortgages Limited,
acquired the remaining 30% interest in Tasman Mortgages Limited.


N & T DEVELOPMENTS: Wind-Up Petition Hearing Set for July 18
------------------------------------------------------------
The High Court at Auckland will hold a hearing on July 18, 2008,
at 10:45 a.m., to consider an application putting N & T
Developments Limited into liquidation.

The application was filed on April 11, 2008, by Louvretec
Auckland Limited.

The plaintiff's address for service is at:

          Account Collection Service Limited
          33B Constellation Drive
          Mairangi Bay, North Shore City
          Postal Address: PO Box 100163
          North Shore Mail Centre
          Auckland 0745

C. N. LORD, is the plaintiff’s solicitor.


NEW TREND: Shareholders Place Company Under Liquidation
-------------------------------------------------------
Pursuant to Section 241(2) of the Companies Act 1993, the
shareholders of New Trend Limited resolved that the company be
liquidated and that Jeffrey Philip Meltzer and Rachel Karen
Mason, insolvency practitioners, be appointed liquidators.

Creditors who were not able to file their proof of debts by
July 4, 2008, were excluded from any dividend distribution.

Creditors and shareholders may direct their inquiries to:

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


RANDHAWA HORTICULTURE: Liquidators Appointed
--------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Kenneth
Peter Brown and Robert James Neilson were appointed liquidators
of Randhawa Horticulture Limited on June 3, 2008.

The Liquidators can be reached at:

          Rodewald Hart Brown Limited
          127 Durham Street
          PO Box 13380
          Tauranga
          Telephone: (07) 571 6280
          Website: www.rhb.co.nz


SIM FARMS: Shareholders Place Company Under Liquidation
-------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
shareholders of Sim Farms Limited resolved that the company be
liquidated and that John David Naylor, chartered accountant of
Palmerston North, be appointed liquidator.

The Liquidators can be reached at:

Creditors and shareholders may direct their inquiries to:

         A. G. Doig
         Naylor Lawrence & Associates
         4th Floor, Guardian Trust House
         corner of Main Street and The Square
         Palmerston North
         Postal Address: PO Box 648
         Palmerston North
         Telephone: (06) 357 0640
         Facsimile: (06) 358 9105


VIBRA–FITNESS: Commences Liquidation Proceedings
------------------------------------------------
The High Court at Auckland convened a hearing on June 27, 2008,
to consider an application putting Vibra-Fitness Limited into
liquidation.

The application was filed on April 1, 2008, by the Commissioner
of Inland Revenue.

The plaintiff's address for service is at:

          Meredith Connell
          Level 17, Forsyth Barr Tower
          55-65 Shortland Street
          PO Box 2213 or DX CP 24063
          Auckland

S. J. Eisdell Moore,  is the plaintiff’s solicitor.



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

LEPANTO CONSOLIDATED: Fully Pays 3,192,857 Class "B" Shares
-----------------------------------------------------------
In February, Lepanto Consolidated Mining Company obtained
approval from the Philippine Stock Exchange to list
4,112,364,385 common shares consisting 2,467,419,971 LC shares
and 1,644,944,414 LCB shares, at a par value of PHP0.10 per
share, to cover its 1:7 stock rights offering to all
stockholders as of a proposed record date of March 25, 2008, at
an offer price of PHP0.25 per share.

On July 1, Lepanto fully paid an additional 3,192,857 Class "B"
shares.

This brings the number of the company's fully paid shares to a
total of 4,101,154,206 common shares and the number of partially
pad shares to 11,210,179 common shares.

The additional fully paid 3,192,857 common shares started
trading on Monday, July 7, 2008.

                   About Lepanto Consolidated

Headquartered in Makati City, Lepanto Consolidated Mining
Company -- http://www.lepantomining.com/--  was incorporated on   
September 8, 1986 and operated an enargite copper mine until
1997, after which, LC shifted to gold bullion production through
its Victoria Project. LC also operated a copper flotation plant
from August 2000 to December 2001, and restarted it in late
2006.  LC sells its gold and silver bullion production to
Heraeus Ltd. (Hong Kong) while its copper concentrate production
are sold to various traders.

LC and its subsidiaries are involved in other businesses such as
hauling, diamond drilling services, insurance, and manufacture
of diamond tools.  LC has two Mineral Production and Sharing
Agreements for areas located in Mankayan, Benguet.  The
company's subsidiaries are Shipside, Inc., Diamond Drilling
Corporation of the Philippines, Lepanto Investment and
Development Corporation, Diamant Boart Philippines, Inc., and
Far Southeast Gold Resources, Inc.

                            *     *     *

In its Amended 2007 Annual Report filed with Philippine Stock
Exchange on April 16, 2008, Lepanto disclosed net losses for
three consecutive years.  For the year ended December 31, 2007,
Lepanto incurred a net loss of PHP206,445,000, compared with a
net loss of PHP35,802,000 in 2006 and PHP 355,223,000 in 2005 as
restated.


* FITCH: Volatile Environment Affects Philippine Banking System
---------------------------------------------------------------
Fitch Ratings has commented that while operating fundamentals of
the Philippine banking system have improved over the past four
to five years thanks to the progress in resolution of NPLs,
improved capitalization and enhanced regulation, it nevertheless
continues to be weak owing to a volatile operating environment
and the lack of a sustainable earning assets profile.  The
agency notes that despite the recent improvements, the
Philippine economy remains weak due to limited fiscal
flexibility, high inflation and persistent political
uncertainty.

In a special report on the Philippine banking system to be
published soon, Fitch notes that a salient feature of the
Philippine banking system has been the historically weak demand
for bank credit (comprising 33% of GDP in 2007).  This could be
attributed to the dominance of the services sector and to a
lesser extent the agrarian sector, which require relatively less
investment outlay as well as limited activity in the consumer
banking space.  Even though banks have recorded higher lending
growth over the last two years, the agency believes this
momentum may not be sustainable due to the more challenging
operating environment in the future.  As such, a rather high 25%
of the banking system assets are allocated as investments,
mostly in government debt securities, which has resulted in the
banking system depending on trading income.

However, the agency observes that such dependence in the present
rising interest rate environment could erode the banks' earnings
through lower trading gains and possibly even actual or mark to
market losses.

Since the implementation of the Special Purpose Vehicle Act in
2002, the system's gross non-performing assets/total assets
ratio improved to 5.9% at end-2007 from 13.2% at end-2002.  The
SPV Act, which expired in May 2008, facilitated the reduction in
NPLs, but had a lesser impact on reducing foreclosed properties.  
Due to the current less benign economic environment, the
resolution of foreclosed properties is likely to remain slow and
loan quality may even start to somewhat deteriorate although
NPLs were well reserved at 80% at end-2007.

The capitalization levels in the system provide moderate support
for the Philippine banks to weather the higher operating-
environment related risk.  The various types of capital
instruments, which were raised since 2006 have helped to
preserve the capital adequacy ratios against the negative impact
of Basel II accord, which was adopted in July 2007.  The
Philippine banks have presently adopted the standardized
approach for credit risk and the basic indicator approach for
operational risk.

While the Philippine banking system consists of 847 banks,
including more than 700 rural & cooperative banks, the core of
the banking system is formed by 38 universal and commercial
banks that account for 87% of the system assets, with the top
three banks accounting for nearly 33% of the system assets.  
Following the consolidation among some of the larger banks over
the past few years, ownership concentration has increased with
some large private banks being majority-owned by Filipino
business families with other significant business interests.  
While such ownership concentration could lead to conflicts of
interest and is potentially a concern, Fitch notes that
standards of corporate governance in the Philippines have
somewhat improved over the years, albeit at a gradual pace.



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

ALL SAINTS: Court to Hear Wind-Up Petition on July 18
-----------------------------------------------------
A petition to have All Saints Christian Bereavement Services Pte
Ltd's operations wound up will be heard before the High Court of
Singapore on July 18, 2008.

Ho Geok Kuan filed the petition on June 24, 2008.

Ho Geok's solicitor is:

         Wong Chang & Tay Partnership
         70 Anson Road
         #24-05 Hub Synergy Point (formerly known as Apex Tower)    
         Singapore 079905


ALLCO REIT: Allco Finance Group to Sell 17.7% Company Stake
-----------------------------------------------------------
Allco (Singapore) Limited, the manager of Allco Commercial Real
Estate Investment Trust (“Allco REIT”), said that Allco Finance
Group Limited and two of its indirect wholly owned subsidiaries,
Allco Singapore Holdings Limited and Allco Singapore Investments
Pte. Ltd. (“Allco Group”), have entered into a Sale and Purchase
Agreement dated July 8, 2008 with Frasers Centrepoint Limited
(“FCL”).

Pursuant to the terms of the Agreement, Allco Group has agreed
to sell to FCL for a total consideration of SG$180 million:

(a) all of the issued ordinary and preference shares in Allco
    Singapore (for a consideration of SG$75,709,405.23);

(b) its approximately 17.7% interest in Allco REIT (125,651,319
     Allco REIT units for a consideration of SG$104,290,594.77
     or SG$0.83 per Unit).

The price of S$0.83 per Unit represents:

(1) a discount of 42.3% to the unaudited net asset value of
    Allco REIT per Unit of SG$1.44 as at March 31, 2008; and

(2) a premium of 16.9% to the closing price per Unit of S$0.71
    traded on the Singapore Exchange Securities Trading Limited
     (“SGX-ST”) on July  7, 2008, the last trading day  
     immediately before this announcement.
The effect of the Sale is that FCL, whose ultimate holding
company is SGX-listed Fraser and Neave, Limited, will, on
completion, control the manager of Allco REIT.

Subject to the matters referred to below, completion of the Sale
is expected to take place by August 6, 2008.  A further
announcement will be made upon completion of the Sale.

Completion of the Sale is subject to certain conditions
precedent being fulfilled or waived on or prior to September 30,
2008 (or such later date as FCL and Allco Group may agree),
including:

(a) the Monetary Authority of Singapore not raising an objection
    to FCL acquiring AllcoSingapore;

(b) receipt of Australian Foreign Investment Review Board
    approval for (or no-objection to the Sale;

(c) waiver of certain covenants under Allco REIT’s financial
    indebtedness to Commonwealth Bank of Australia;

(d) no breach of certain representations, warranties and
    undertakings given by Allco Group under the Agreement; and

(e) no occurrence of certain events which have a material
    adverse effect on Allco REIT or Allco Singapore and their
    respective subsidiaries.


ALLCO REIT: Moody's May Upgrade “Ba2” Rating After Review
---------------------------------------------------------
Moody's Investors Service has placed the Ba2 rating of Allco
Commercial REIT on review for possible upgrade.

The rating action follows the announcement that Allco Finance
Group has entered into an agreement to sell - to Frasers
Centrepoint Limited ("FCL") - its 17.7% equity interest in Allco
REIT and 100% interest in the REIT manager, Allco (Singapore)
Limited.

Frasers Centrepoint Limited - a subsidiary of Fraser and Neave
Limited - is an established property company in Singapore and
has announced plans to seek to inject assets into Allco REIT and
rename it Frasers Commercial Trust.

Moody's notes that the transaction remains conditional on a
number of factors including waivers of certain covenants under
Allco REIT's bank loan from the Commonwealth Bank of Australia.
This means there is no certainty that the transaction will
proceed.

Assuming the transaction completes as expected, the review will
focus on the future property portfolio, financial policy and
funding of the REIT under its new manager.

                      About Allco REIT

Allco REIT is a Singapore based real estate investment trust
managed by Allco (Singapore) Limited.  Listed in March 2006, it
focuses on office and retail properties across Asia Pacific,
including investment and related activities in Singapore, Japan
and Australia.


ATLUS ENTERTAINMENT: Creditors' Proofs of Debt Due on August 6
--------------------------------------------------------------
Atlus Entertainment Pte Ltd, which is in voluntary liquidation,
requires its creditors to file their proofs of debt by August 6,
2008, to be included in the company's dividend distribution.

The company's liquidator is:

         Mitani Masatoshi
         c/o 89 Short Street
         #08-11 Golden Wall Centre
         Singapore 188216


FOREX SYSTEM: Wind-Up Petition Hearing Set for July 11
------------------------------------------------------
The High Court of Singapore will hear on July 11, 2008, at
10:00 a.m., a petition to have Forex System Selector Pte Ltd's
operations wound up.

EQ Management (Singapore) Pte Ltd filed the petition against the
company on June 19, 2008.

EQ Management's solicitor is:

         Messrs. Tan Rajah & Cheah
         80 Raffles Place
         #58-01 UOB Plaza 1
         Singapore 048624


INFORMATICS EDUCATION: Auditor Expresses Going Concern Doubt
------------------------------------------------------------
Ernst & Young LLP said it has significant doubt on Informatics
Education Ltd.'s ability to continue as a going concern.  

The auditors cited the company's financial statements wherein
the group incurred a net loss of US$3,604,000
(2007: US$5,815,000) for the financial year ended March 31,
2008, and as at that date, the Group's total current liabilities
and total liabilities exceeded its total current assets and
total assets by US$7,488,000 (2007: US$21,827,000) and
US$4,798,000 (2007: US$17,664,000) respectively.

Ernst & Young added that if the Group and the company are unable
to continue its operational existence for the foreseeable
future, the Group and the Company may be unable to discharge
their liabilities in the normal course of business and
adjustments may have to be made to reflect the situation that
assets may need to be realized other than in the normal course
of business and at amounts which could differ significantly from
the amounts at which they are currently recorded in the balance
sheets.  In addition, the Group and the Company may have to
reclassify non-current assets and liabilities as current assets
and liabilities.  No such adjustments have been made to the
financial statements.

                   About Informatics Education

Singapore-based Informatics Education Ltd. is engaged in
investment holding, and franchising for computer and commercial
training centres.  It also operates as an examination
facilitator.  The company operates under the names Informatics
International, Informatics Academy, Informatics Consulting,
Thames Academy, Thames International, Informatics Higher
Education, Informatics Corporate Learning and Informatics Uni.
It operates in three segments: the Global Higher Education
segment, which offers diploma, advanced diploma, degree, masters
and doctorate qualifications in a range of business, engineering
and technological subjects, to college going students and life
long learners; the Informatics Professional Skills Development
segment, which provides training and skills upgrading and
enhancement to the general workforce, in both technical and non-
technical areas, and the e-Learning segment, which offers
courses through online virtual campus platform for e-learners.


TRAMP OIL: Requires Creditors to File Claims by August 4
--------------------------------------------------------
Tramp Oil & Marine (Far East) Pte Ltd, which is in voluntary
liquidation, requires its creditors to file their proofs of debt
by August 4, 2008, to be included in the company's dividend
distribution.

The company's liquidators are:

         Low Sok Lee Mona
         Teo Chai Choo
         c/o Low, Yap & Associates
         4 Shenton Way
         #04-01 SGX Centre 2
         Singapore 068807



===========
T A I W A N
===========

AU OPTRONICS: Records NT$36.77 Billion Revenues in June 2008
------------------------------------------------------------
AU Optronics Corp. posted its June 2008 revenue with preliminary
consolidated and unconsolidated basis of NT$36,724 million and
NT$36,388 million respectively.  It represented 17.2% and 17.1%
sequential decrease, and 5.7% and 6.4% year-over-year decrease.
This weaker than expected June sales was owing to the cautious
inventory control for semi-annual results by customers as well
as the anticipation of uncertain seasonal demand under current
macro environment.

Shipments of large-sized panels(a) used in desktop monitor,
notebook PC, LCD TV and other applications for June 2008 totaled
6.7 million units, decreased by 12.9% sequentially.  Small-and-
medium-sized panel shipments totaled 13.5 million units, a 2.7%
month-over-month decrease.

In the second quarter of 2008, AUO’s unaudited consolidated and
unconsolidated revenues totaled NT$123,464 million and
NT$122,373 million.  It represented year-over-year growth of
16.5% and 15.5%, but quarter-over-quarter decrease of 9.6% and
10.2%.  The decline was due to the lower-than-expected shipment
and ASP in both IT and TV panels.

Large-sized panel shipments for the second quarter of 2008 were
21.8 million, a mild 0.9% Q-o-Q decrease but 12% Y-o-Y increase.
Small- and medium-sized panel shipments for the second quarter
of 2008 totaled 41.9 million units, representing 11.1% Q-o-Q
increase and 29.9% Y-o-Y increase.

AUO will consistently manage its inventory at reasonable level
and adjust its loading rate based on the market demand.

                        About AU Optronics

Taiwan-based AU Optronics Corp. -- http://www.auo.com/--   
designs, develops, manufactures, assembles and markets flat
panel displays.  The company's principal products are thin-film
transistor liquid crystal display (TFT-LCD) panels.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
June 19, 2008, Fitch Ratings upgraded Taiwan-based AU Optronics
Corporation's Long-term foreign and local currency Issuer
Default ratings to 'BB+' from 'BB', and its National Long-term
rating to 'A-(twn)' from 'BBB+(twn)'.  The Outlook is
Positive.

                         *********

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

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

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


                            *********


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

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





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