TCRAP_Public/080722.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Tuesday, July 22, 2008, Vol. 11, No. 144

                            Headlines

A U S T R A L I A

A.C.N. 116 168 051: To Declare Dividend on July 29
BENJAMIN CLUB: Proofs of Debt Due on July 24
BROADFIELDS II: To Declare Dividend on July 28
CRIT SOL (CBN): Members' Final Meeting Set for July 24
CRUSADE ABS: S&P Assigns BB/B Rating to Class D/E 2008-2 Trusts

EURO TRADING: To Declare Dividend on July 29
FORTESCUE METALS: Completes Pilbara Iron Ore Project
FRIEBOURG PTY : To Declare Dividend on August 5
HELIUM CAPITAL: Fitch Cuts A Rating on US$18.727MM Notes to B
LISKOT HOLDINGS: Final Meeting Slated for July 24

MEDINA MARITIME: To Declare Dividend on July 23
PALMER BRUYN: To Declare Dividend on July 30
SHARPER IMAGE: Changes Corporate Name to TSIC, Inc.
SHARPER IMAGE: Exclusive Plan Filing Date Extended to Sept. 16
STIRLING HARBOUR: To Declare Dividend on July 23

WARATAH TOWAGE: To Declare Dividend on July 23
WILD BISCUIT : To Declare Dividend on July 23
YOW PTY: To Declare Dividend on July 23
ZIRCON FINANCE: Fitch Trims Rating on US$10 Mil. Notes to 'B+'
ZIRCON FINANCE: Fitch Cuts AA Rating on AU$30MM Notes to BB-

ZIRCON FINANCE: Fitch Cuts Rating on AU$14.8 Mil. Notes to BB-
ZIRCON FINANCE: Fitch Chips Ratings on Two Synthetic CDO Notes
* Fitch: New Australian Banking Policy Adds to System Stability


C H I N A

CHINA MERCHANTS BANK: Gets License to Open New York Branch
LAS VEGAS SANDS: Moody's to Review Ba3 Ratings for Possible Cut
MGM MIRAGE: Moody's May Cut Low-B Ratings on Revenue Decline
PORTOLA PACKAGING: Defaults on US$60MM Credit Deal w/ GE Capital  
TCL CORP: 1H LCD TV Sales Up 2.3 Times to 1.52 Million Sets

XINHUA FINANCE: Completes Sale of Mergent and Kinetic
* CHINA: Major Banks' Non-Performing Loan Ratio Down 6.10%


H O N G K O N G

ARCELOR NEGOCE: Final General Meeting Set for August 15
ASCALADE COMMS: Names Troy Bullock & Greg Allen as Board Members
BASE (CN): Final General Meeting Set for August 6
BETTERISE LIMITED: Members' Final Meeting Set for August 11
DIPLOM LIMITED: Final General Meeting Set for August 14

KESSEL TELECOM: Liquidators Quit Posts
RICHCOURT LIMITED: Placed Under Voluntary Liquidation
RUSK (CHINA): Commences Liquidation Proceedings
THIRST FOR CHRIST: Members Resolve to Liquidate Business
TRUMP FORTUNE: Inability to Pay Debts Prompts Wind-Up

WORLD FAITH: Members and Creditors to Meet on August 15


I N D I A

AIR INDIA: Expected to Cut Down Routes Due to Mounting Losses
TATA POWER: Acquires 26% Stake in Bhutan's Power Project
* IDFC Growth May Slow on Need to Raise Capital, Analysts Say
* INDIA: Travel Agents Balk at Scrapping Air Ticket Commission


I N D O N E S I A

BANK DANAMON: Wants to Increase Stake in Adira to 95%
BANK NIAGA: Shareholders Approve Niaga-Lippo Merger
* INDONESIA: Plans to Swap Short-Term Debt w/ Longer Term Paper


J A P A N

SHINSEI BANK: Former LT Credit Bank of Japan Execs Acquitted
ZEPHYR CO: JCR Downgrades Senior Debts & Bond Ratings to D


M A L A Y S I A

PECD BERHAD: Appeals Ruling Dismissing RO Extension Application
CNLT (FAR EAST): Court Dismisses Originating Summons


N E W  Z E A L A N D

AMMA CORP: Court Appoints Liquidators
BLUE CHIP: Certain Mortgaged Properties Up for Sale
BRAZENHEAD LTD: Shareholders Appoint Liquidator
BROADBAT LTD: Commences Liquidation Proceedings
CAPITAL + MERCHANT: Debenture Holders To Receive Lower Payout

CP CARPARKS: Commences Liquidation Proceedings
DECONTAMINATION: Court Appoints Liquidators
DORCHESTER PACIFIC: Kevin Podmore Resigns as Director
ENTERPRISE PROPERTIES: Commences Liquidation Proceedings
J.D. RAI: Commences Liquidation Proceedings

PANDEY HOTEL: Commences Liquidation Proceedings
RONGOTAI HOLDINGS: Commences Liquidation Proceedings
TSL INVESTMENTS: Shareholders Appoint Liquidator
ZX CORPORATION: Commences Liquidation Proceedings
* NEW ZEALAND: Retail Electronic Card Spending Falls

* NEW ZEALAND: Short Term Departures Down 11% in June


P H I L I P P I N E S

* PHILIPPINES: Posts US$145.6 Million Net Outflow in June
* PHILIPPINES: Monetary Board Up Policy Rates by 50 Basis Pts.


V I E T N A M

VIETNAM BANK: Fitch Affirms 'D/E' Individual Rating


X X X X X X X X

* Fitch: Global CMBS Performance Was Strong in 1st Half of 2008
* BOND PRICING: For the Week July 14 - July 18, 2008  


                         - - - - -


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

A.C.N. 116 168 051: To Declare Dividend on July 29
--------------------------------------------------
A.C.N. 116 168 051 Pty Ltd will declare dividend on July 29,
2008.

Creditors have until today, July 22, 2008, to file their proofs
of debt, to be included in the company's dividend distribution.

The company's deed administrator is:

          Geoffrey Mcdonald
          Hall Chadwick
          Level 29, 31 Market Street
          Sydney NSW 2000
          Australia


BENJAMIN CLUB: Proofs of Debt Due on July 24
--------------------------------------------
Benjamin Club Ltd will declare dividend on Aug. 14 2008.

Creditors are required to file their proofs of debt by July 24,
2008, to be included in the company's dividend distribution.

The company's deed administrator is:

          W. B. Rangott
          Kazar Slaven
          Telephone: (02) 6285 1310
          Facsimile: (02) 6215 8450


BROADFIELDS II: To Declare Dividend on July 28
----------------------------------------------
Broadfields II Pty Ltd will declare dividend on July 28, 2008.

Creditors are required to file their proofs of debt by July 23,
2008, to be included in the company's dividend distribution.

The company's liquidator is:

          Christopher J. Palmer
          O'Brien Palmer
          Level 4, Currency House
          23 Hunter Street
          Sydney NSW 2000
          Australia


CRIT SOL (CBN): Members' Final Meeting Set for July 24
------------------------------------------------------
Matthew Addison, Crit Sol (CBN) Pty Ltd and Crit Sol Nursing
Agency Pty Ptd's estate liquidator, will meet with the company's
members on July 24, 2008, to provide them with property disposal
and winding-up reports.

The liquidator can be reached at:

          Matthew Addison
          Addisons
          7/24 Lakeside Drive
          Burwood East, Victoria
          Australia


CRUSADE ABS: S&P Assigns BB/B Rating to Class D/E 2008-2 Trusts
---------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its preliminary
ratings to the notes to be issued by BNY Trust Company of
Australia Ltd. as trustee of Crusade ABS Series 2008-2 Trust.
The notes are backed by commercial hire purchase, chattel
mortgage loan, finance lease, and consumer finance contracts
originated by the asset finance division of St.George Bank Ltd.,
for the purchase or lease of motor vehicles.
     
The preliminary ratings are based on information as of July 18,
2008.  Subsequent information may result in the assignment of
final ratings that differ from the preliminary ratings.
      
"This is the largest Australian asset-backed securities (ABS)
transaction launched this year," S&P's credit analyst Luke Elder
said.  "It is the fourth ABS deal for the year and as such
represents the continuation of a positive trend in the ABS asset
class.  While global market conditions are difficult, deals such
as Crusade ABS Series 2008-2 Trust are, in some ways, suited to
these conditions.  These deals offer investors the chance to
review a solid track record of data and they provide an
alternative to residential mortgage-backed securities."
     
Preliminary Ratings Assigned:

Crusade ABS Series 2008-2 Trust

  Class   Rating     Amount (mil.)
  --------------------------------
  A-1      A-1+        AU$200.0
  A-2      AAA         AU$941.5
  B         A           AU$42.8
  C        BBB          AU$22.2
  D        BB            AU$3.5
  E         B            AU$3.3
  Seller   N.R.         AU$22.5

* N.R.–Not rated.  The class A-2 T1 notes (EUR279 million) and
class A-2 T2 notes (EUR300 million) will be denominated in euro.


EURO TRADING: To Declare Dividend on July 29
--------------------------------------------
Euro Trading Pty Ltd will declare dividend on July 29, 2008.

Creditors have until today, July 22, 2008, to file their proofs
of debt, to be included in the company's dividend distribution.

The company's liquidator is:

          Henry Kazar
          Kazar Slaven
          Chartered Accountants
          GPO Box 138
          Canberra ACT 2601
          Australia


FORTESCUE METALS: Completes Pilbara Iron Ore Project
----------------------------------------------------
Fortescue Metals Group Ltd has received independent sign off
certifying the achievement of "Project Completion", for the
first stage of its integrated mine, rail and port facilities in
the Pilbara region of Western Australia.

Project completion includes operations having mined, railed and
shipped two million tonnes within a four week period which has
been verified by the Project's Independent Engineer, Behre
Dolbear Australia.

Fortesque said achieving project completion satisfies certain
covenants within Fortescue's financial arrangements and allows
the company to pursue its stated ambition to expand and further
develop growth projects across the Chichester Ranges.

Coming only eight weeks after the first shipment of ore from the
Herb Elliott Port in Port Hedland, Fortescue Chief Executive
Officer, Mr. Andrew Forrest, said it was a remarkable
achievement for all concerned.  "Our success is testament to the
company's enormous potential and future growth objectives.  This
sets a great platform for the continuing ramp up of our project
to its initial targeted capacity of 45 million tonnes per annum
"Mta" which will then be optimised to 55Mta," Mr. Forrest said.

Mr. Forrest praised the efforts of all Fortescue staff and
contractors who have worked tirelessly to achieve this great
result.  He said project completion achieved significant
milestones in a number of areas, including:

   * All product achieving mill customers' specifications
     with a total of 20 ships having already left
     Fortescue's Herb Elliott Port bound for China;

   * Sale proceeds having been received that reflect the
     current record high prices for lump & fines as
     determined under Fortescue's long term supply contracts.

   * Heavy haul rail reached its capacity of 40 tonne axle
     loads ahead of schedule with 194 train loads of product
     already railed to port;

   * The integrated port product handling system of train
     unloader, stacker, reclaimer and ship loader achieving
     targeted rates allowing for the continuing ramp up of
     the stage one targeted annualised base rate of up to
     55Mta;

   * The project has achieved scheduled capacity across
     all operations.

"Our people continue to amaze all our customers and financiers
with their dedication and passion to achieve the seemingly
impossible," Mr. Forrest said.

"This achievement is another milestone in the path to Fortescue
becoming a major international mining house.  Our objective of
becoming a leader in the international resources industry, the
strongest growth sector of the world's economy, is a step
closer with already three million tonnes of Fortescue's iron ore
having been exported to China in the short time since Fortescue
commenced shipping."

                     About Fortescue Metals

Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.

                          *     *     *

Fortescue reported consecutive net losses for the past three
fiscal years.  Net loss for the year ended June 30, 2007, was
AU$68.43 million, while net losses for FY2006 was AU$2.15
million and for FY2005 was AU$4.52 million.


FRIEBOURG PTY : To Declare Dividend on August 5
-----------------------------------------------
Friebourg Pty. Limited will declare dividend on  Aug. 5, 2008.

Creditors have until today, July 22, 2008, to file their proofs
of debt, to be included in the company's dividend distribution.

The company's liquidator is:

          Frank Lo Pilato
          RSM Bird Cameron Partners
          Chartered Accountants
          GPO Box 200
          Canberra ACT 2601
          Australia


HELIUM CAPITAL: Fitch Cuts A Rating on US$18.727MM Notes to B
-------------------------------------------------------------
Fitch Ratings has downgraded Helium Capital Limited Series 77
notes and removed them from Rating Watch Negative, as:

  -- US$18,727,500 Helium Capital Limited Series 77 Notes due
     2014: downgraded to 'B' from 'A', removed from RWN.

The transaction is a static, funded synthetic corporate single-
tranche CDO referencing a portfolio of primarily investment
grade corporate obligations.

Since the transaction was placed on RWN on 26 May 2008, the
portfolio has experienced further negative rating migration
mainly due to the downgrade of 20 reference entities in the
Buildings & Materials sector and Banking & Finance sector, as a
reflection of the challenges afflicting the US homebuilders,
banks and financial guarantors.  This resulted in an aggregate
31 notch downgrade, compared with an aggregate 13 notch upgrade
from 8 entities.

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

  -- Portfolio credit risk deteriorating with an average
     portfolio quality of 'BBB-'.  Since the last review in
     December 2007, the percentage of the portfolio rated below
     investment grade has increased to 19.17% from 9.17%, with
     13.33% of the portfolio in the 'BB' category, 2.50% in the
     'B' category and 3.33% in the 'CCC+ or below' category,
     including Residential Capital LLC (rated 'D'), which
     represents 0.83% of the portfolio.

  -- Portfolio migration risk with 10.00% of the portfolio on
     RWN and 24.17% of the portfolio on Negative Outlook.

  -- Industry concentration of 41.66% in the three largest
     industries, made up of 25.00% in Banking & Finance, 8.33%
     in Telecommunications and 8.33% in Buildings & Materials.

  -- The portfolio is heavily concentrated in the US which
     represents 71.39% of the portfolio.

Given Fitch's view of concentration risk and the current credit
quality of the portfolio, the credit enhancement level of 4.90%
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 charged assets to collateralize CDS between the issuer
and Merrill Lynch International.  All obligations of MLI under
the CDS agreements are guaranteed by Merrill Lynch & Co., Inc.
('A+'/'F1'/RWN).  The charged assets in this transaction
comprise of US$18,727,500 in principal amounts of floating-rate
notes issued by HBOS Treasury Services Plc and guaranteed by
HBOS Plc (rated 'AA+/F1+'/Negative Outlook).

Fitch released updated criteria on 30 April 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 26 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
arranger has confirmed that it does not intend to make any
modifications.


LISKOT HOLDINGS: Final Meeting Slated for July 24
-------------------------------------------------
Liskot Holdings Pty Ltd will hold a final meeting for its
members and creditors at 11:00 a.m. on July 24, 2008.  During
the meeting, the company's liquidator, Bruce Gleeson at Jones
Partners, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Bruce Gleeson
          Jones Partners
          Insolvency & Business Recovery
          Telephone: (02) 9251 5222


MEDINA MARITIME: To Declare Dividend on July 23
-----------------------------------------------
Medina Maritime Services Ltd will declare dividend on July 23,
2008.

Creditors have until today, July 22, 2008, to file their proofs
of debt, to be included in the company's dividend distribution.

The company's liquidators are:

          John Gibbons
          Keiran Hutchison
          Ernst & Young
          Ernst & Young Centre
          680 George Street
          Sydney NSW 2000
          Australia
          Telephone: (02) 9248 4124


PALMER BRUYN: To Declare Dividend on July 30
--------------------------------------------
Palmer Bruyn Pty Ltd will declare dividend on July 30, 2008.

Creditors are required to file their proofs of debt by July 23,
2008, to be included in the company's dividend distribution.

The company's liquidator is:

          Steven Nicols
          Nicols + Brien
          Telephone: (02) 9299 2289
          Website: www.bankrupt.com.au


SHARPER IMAGE: Changes Corporate Name to TSIC, Inc.
---------------------------------------------------
The Asset Purchase Agreement between Sharper Image Corp. and the
joint venture composed of Gordon Brothers Retail Partners, LLC,
GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco
Consumer Capital, LLC, requires Sharper Image to change its name
and the caption of its Chapter 11 case.

For this reason, Sharper Image sought and obtained the Court's
approval to change its name to "TSIC, Inc."

At the Debtor's behest, the Court further amended the caption of
the  Chapter 11 case to reflect the name change.  

                      About Sharper Image

Based in San Francisco, California, Sharper Image Corp. --
http://www.sharperimage.com/-- is a multi-channel specialty
retailer.  It operates in three principal selling channels: the
Sharper Image specialty stores throughout the U.S., the Sharper
Image catalog and the Internet.  The company has operations in
Australia, Brazil and Mexico.  In addition, through its Brand
Licensing Division, it is also licensing the Sharper Image brand
to select third parties to allow them to sell Sharper Image
branded products in other channels of distribution.  

The company filed for Chapter 11 protection on Feb. 19, 2008
(Bankr. D.D., Case No. 08-10322).  Steven K. Kortanek, Esq. at
Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the
Debtor in its restructuring efforts.  An Official Committee of
UnsecuredCreditors has been appointed in the case.  Whiteford
Taylor Preston LLC is the Committee's Delaware counsel
When the Debtor filed for bankruptcy, it listed total assets of
US$251,500,000 and total debts of US$199,000,000.  

The Court extended the exclusive period during which the Debtor
may file a Plan through and including Sept. 16, 2008.  

(Sharper Image Bankruptcy News, Issue No. 17; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or        
215/945-7000)


SHARPER IMAGE: Exclusive Plan Filing Date Extended to Sept. 16
--------------------------------------------------------------
Judge Kevin Gross of the U.S. Bankruptcy Court for the District
of Delaware extended the exclusive period during which The
Sharper Image Corp., now known as TSIC, Inc., may file a Plan
through and including Sept. 16, 2008.  Judge Gross also extended
the period during which the Debtor may solicit acceptances of
the plan, through and including Nov. 15.

Sharper Image sought and obtained the Court's approval to change
its name to "TSIC, Inc." in relation to an an Asset Purchase
Agreement by the Debtor with Gordon Brothers Retail Partners,
LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco
Consumer Capital, LLC.

                       About Sharper Image

Based in San Francisco, California, Sharper Image Corp. --
http://www.sharperimage.com/-- is a multi-channel specialty
retailer.  It operates in three principal selling channels: the
Sharper Image specialty stores throughout the U.S., the Sharper
Image catalog and the Internet.  The company has operations in
Australia, Brazil and Mexico.  In addition, through its Brand
Licensing Division, it is also licensing the Sharper Image brand
to select third parties to allow them to sell Sharper Image
branded products in other channels of distribution.  

The company filed for Chapter 11 protection on Feb. 19, 2008
(Bankr. D.D., Case No. 08-10322).  Steven K. Kortanek, Esq. at
Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the
Debtor in its restructuring efforts.  An Official Committee of
UnsecuredCreditors has been appointed in the case.  Whiteford
Taylor Preston LLC is the Committee's Delaware counsel
When the Debtor filed for bankruptcy, it listed total assets of
US$251,500,000 and total debts of US$199,000,000.  

(Sharper Image Bankruptcy News, Issue No. 17; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or        
215/945-7000)


STIRLING HARBOUR: To Declare Dividend on July 23
------------------------------------------------
Stirling Harbour Services Ltd will declare dividend on July 23,
2008.

Creditors have until today, July 22, 2008, to file their proofs
of debt, to be included in the company's dividend distribution.

The company's liquidators are:

          John Gibbons
          Keiran Hutchison
          Ernst & Young
          Ernst & Young Centre
          680 George Street
          Sydney NSW 2000
          Australia
          Telephone: (02) 9248 4124


WARATAH TOWAGE: To Declare Dividend on July 23
----------------------------------------------
Waratah Towage Pty Ltd will declare dividend on July 23, 2008.

Creditors have until today, July 22, 2008, to file their proofs
of debt, to be included in the company's dividend distribution.

The company's liquidators are:

          John Gibbons
          Keiran Hutchison
          Ernst & Young
          Ernst & Young Centre
          680 George Street
          Sydney NSW 2000
          Australia
          Telephone: (02) 9248 4124


WILD BISCUIT : To Declare Dividend on July 23
---------------------------------------------
Yow Pty Ltd will declare dividend on July 23, 2008.

Creditors have until today, July 22, 2008, to file their proofs
of debt, to be included in the company's dividend distribution.

The company's liquidator is:

          R. G. Shoobridge
          Deloitte Touche Tohmatsu
          Level 9, 22 Elizabeth Street
          Hobart TAS 7000
          Australia
          Telephone: (03) 6237 7000
          Facsimile: (03) 6237 7001


YOW PTY: To Declare Dividend on July 23
---------------------------------------
Yow Pty Ltd will declare dividend on July 23, 2008.

Creditors are required to file their proofs of debt by July 23,
2008, to be included in the company's dividend distribution.

The company's liquidator is:

          P. Newman
          HLB Mann Judd
          Chartered Accountants
          Level 1, 160 Queen Street
          Melbourne VIC 3000
          Australia


ZIRCON FINANCE: Fitch Trims Rating on US$10 Mil. Notes to 'B+'
--------------------------------------------------------------
Fitch Ratings has downgraded the rating on Zircon Finance
Limited series 2007-10 US$10 million notes due December 2015 to
'B+' from 'AA-', removed it from Rating Watch Negative and
simultaneously withdrawn the rating.  The transaction is a
synthetic corporate CDO, managed by Lion Global Investors
Limited, which references a portfolio of primarily investment
grade corporate obligations.

Fitch received written notification that the transaction was
restructured on 11 July 2008, and that no ongoing portfolio
information will be provided to Fitch after this date.

The agency's policy on withdrawing ratings is to take into
consideration whether it has access to sufficient information in
assessing the credit quality of the notes.  In this case, as
Fitch has been notified that future portfolio information will
not be provided, it has decided to withdraw the ratings on these
notes.

Since the notes were placed on RWN on 16 May 2008, the
transaction has been restructured with 30% of the portfolio
being substituted with generally higher rated entities.  Based
on the latest portfolio information available to the agency,
dated 11 July 2008, the portfolio's weighted average rating has
improved to 'BBB' from 'BBB'/ 'BBB-' at the RWN review.  In
addition, the credit enhancement level has been reduced to
4.51%, from 5.34% at the RWN review.

The key drivers of this transaction's credit risk as of the
restructuring date included the 15% of the restructured
portfolio that is rated below investment grade compared with 5%
at closing on 13 June 2007, with 1% in the 'CCC' rating
category, 2% in the 'B' rating category and 13% in the 'BB'
rating category.  Also, 9% of the portfolio was on RWN and 35%
with a Negative Outlook.  The portfolio also has industry
concentration of 49% in the three largest industries, made up of
37% in Banking & Finance, 6% in Building & Materials, and 6% in
Retail (General).  The portfolio was geographically concentrated
in United States at 51%.

Given Fitch's view of concentration and the credit quality of
the portfolio, the credit enhancement level for the transaction
is not sufficient to justify the current rating of the notes.

Fitch released its updated criteria on 30 April 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 previously noted that its review will be focused first
on ratings most exposed to risks it has highlighted in its
updated criteria.  As such, the 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 arranger has restructured the transaction and the amended
transaction documentation was executed with noteholders'
approval on 11 July 2008.


ZIRCON FINANCE: Fitch Cuts AA Rating on AU$30MM Notes to BB-
------------------------------------------------------------
Fitch Ratings has downgraded two classes of managed synthetic
CDO notes issued by Zircon Finance Limited, and removed them
from Rating Watch Negative, as:

Series 2007-9 class A
  -- AU$30 million notes due June 2013: downgraded to 'BB-' from
     'AA', removed from RWN;

Series 2007-9 class B
  -- AU$10 million notes due June 2013: downgraded to 'B-' from
     'BBB', removed from RWN.

The RWN actions reflect Fitch's view on the credit risk of the
rated notes following the release of its new corporate CDO
rating Criteria.

The transaction is a managed synthetic CDO referencing a
portfolio of primarily investment grade corporate obligations
and managed by Lion Capital Management Limited.  The portfolio
current maximum notional amount of class A and class B are
AU$7,500 million and AU$1,176 million, respectively.

The transaction was placed on RWN on 20 May 2008, and since then
the portfolio has experienced further negative rating migration
mainly due to the downgrading of five reference entities in the
Buildings & Materials sector, as a reflection of the challenges
afflicting the US homebuilders.  The five downgraded reference
entities in the Buildings & Materials sector are Beazer Homes
USA, Inc., Lennar Corporation, Centex Corp., Pulte Homes, Inc.
and D. R. Horton, Inc.  Except for Beazer Homes, which is on
RWN, the rest of the four companies, together with three other
reference entities in the same sector - Hovnanian Enterprises,
Inc., Masco Corporation and KB Home, are currently on Negative
Outlook.

Key drivers of this transaction's credit risk include:

  -- Portfolio credit risk deteriorating to an average portfolio
     quality of 'BBB'/'BBB-' from 'A-'/'BBB+' since closing in
     June 2007.  Currently, 17.1% of the portfolio is rated
     below investment grade, an increase from 5.0% at closing,
     with 12.5% in the 'BB' rating category, 2.9% in the 'B'
     rating category and 1.8% in the 'CCC+ or below' rating
     category, including Residential Capital LLC (rated 'D'),
     which represents 0.7% of the portfolio.

  -- Portfolio migration risk with 7.5% of the portfolio on RWN
     and 20.4% of the portfolio on Negative Outlook.

  -- Industry concentration of 48.9% in the three largest, made
     up of 35.3% in Banking & Finance, 7.2% in Retail (General)
     and 6.5% in Telecommunications.

  -- The portfolio is heavily concentrated in the US, which
     represents 64.0% of the portfolio.

Given Fitch's view of concentration and the current credit
quality of the portfolio, the credit enhancement levels of 4.20%
for Class A and 2.63% for Class B 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 Lehman Brothers Special Financing Inc., (guaranteed
by Lehman Brothers Holding Inc., rated 'A+'/'F1'/Negative
Outlook).  The charged asset of series 2007-9 is an investment
of AU$40 million in principal amounts of notes issued by GE
Capital Australia Funding Pty. Ltd and guaranteed by General
Electric Capital Corporation.

Fitch released updated criteria on 30 April 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 20 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.


ZIRCON FINANCE: Fitch Cuts Rating on AU$14.8 Mil. Notes to BB-
--------------------------------------------------------------
Fitch Ratings has downgraded the managed synthetic CDO notes
issued by Zircon Finance Limited Series 2007-3 and removed them
from Rating Watch Negative, as:

  -- AU$14.8 million notes due March  2017 (ISIN
     AU3FN0002325): downgraded to 'BB-' from 'AA', removed from
     RWN.

The transaction is a managed synthetic CDO referencing a
portfolio of primarily investment grade corporate obligations
and managed by Lion Capital Management Limited.  The portfolio
current maximum notional amount is AU$1,000 million.

The transaction was placed on RWN on 20 May 2008, and since then
the portfolio has experienced further negative rating migration
mainly due to the downgrading of four reference entities in the
Buildings & Materials sector and two reference entities in the
Banking & 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., Lennar Corporation, Centex
Corp., and Pulte Homes, Inc. Except for Beazer Homes, which is
on RWN, the rest of the three companies, together with four
other reference entities in the same sector - Hovnanian
Enterprises, Inc., Masco Corporation, Toll Brothers Inc., and
M.D.C. Holdings, Inc., are currently on Negative Outlook.

The two downgraded reference entities in the Banking & Finance
sector are PMI Group, Inc. and MGIC Investment Corp., both of
which are currently on RWN.

Key drivers of this transaction's credit risk include:

  -- Portfolio credit risk deteriorating to an average portfolio
     quality of 'BBB'/ 'BBB-' from 'A-'/ 'BBB+' since closing in
     April 2007.  Currently, 14.1% of the portfolio is rated
     below investment grade, an increase from 3.6% at closing,
     with 9.3% in the 'BB' rating category, 1.7% in the 'B'
     rating category and 3.1% in the 'CCC+ or below' rating
     category, including Residential Capital LLC (rated 'D'),
     which represents 1.3% of the portfolio.

  -- Portfolio migration risk with 5.2% of the portfolio on RWN
     and 18.7% of the portfolio on Negative Outlook.

  -- Industry concentration of 41.8% in the three largest, made
     up of 26.6% in Banking & Finance, 7.6% in Building &
     Materials and 7.6% in Telecommunications.

  -- The portfolio is heavily concentrated in the US, which
     represents 66.0% of the portfolio.

Given Fitch's view of concentration and the current credit
quality of the portfolio, the credit enhancement level of 5.85%
for Series 2007-3 is 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 Lehman Brothers Special Financing Inc., (guaranteed
by Lehman Brothers Holding Inc., rated 'A+'/'F1'/Negative
Outlook).  The charged asset of series 2007-3 is an investment
of AU$14.8 million in principal amounts of Floating Rate Notes
due 20 March 2017 issued by GE Capital Australia Funding Pty Ltd
and guaranteed by General Electric Capital Corporation.

Fitch released updated criteria on 30 April 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 20 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.


ZIRCON FINANCE: Fitch Chips Ratings on Two Synthetic CDO Notes
--------------------------------------------------------------
Fitch Ratings has downgraded two classes of managed synthetic
CDO notes issued by Zircon Finance Limited, and removed them
from Rating Watch Negative, as:

Series 2007-1 Class A:
  -- AU$84.1 million notes due September 2014 (ISIN
     AU3FN0002085): downgraded to 'B+' from 'AA', removed from
     RWN

Series 2007-1 Class B:
  -- AU$ 28.6 million notes due September 2014 (ISIN
     AU3FN0002093): 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 Lion Capital Management Limited.  The portfolio
current maximum notional amount is AUD1,000m.

The transaction was placed on RWN on 20 May 2008, and since then
the portfolio has experienced further negative rating migration
mainly due to the downgrading of four reference entities in the
Buildings & Materials sector and two reference entities in the
Banking & 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., Lennar Corporation, Centex
Corp., and Pulte Homes, Inc.  Except for Beazer Homes, which is
on RWN, the rest of the three companies, together with four
other reference entities in the same sector - Hovnanian
Enterprises, Inc., Masco Corporation, Toll Brothers Inc., and
M.D.C. Holdings, Inc. are currently on Negative Outlook.  The
two downgraded reference entities in the Banking & Finance
sector are PMI Group, Inc. and MGIC Investment Corp., both of
which are currently on RWN.

Key drivers of this transaction's credit risk include:

  -- Portfolio credit risk deteriorating to an average portfolio
     quality of 'BBB'/ 'BBB-' from 'A-'/'BBB+' since closing in
     March 2007.  Currently, 17.5% of the portfolio is rated
     below investment grade, an increase from 3.6% at closing,
     with 12.7% in the 'BB' rating category, 1.7% in the 'B'
     rating category and 3.1% in the 'CCC+ or below' rating
     category, including Residential Capital LLC (rated 'D'),
     which represents 1.3% of the portfolio.

  -- Portfolio migration risk with 7.3% of the portfolio on RWN
     and 17.8% of the portfolio on Negative Outlook.

  -- Industry concentration of 39.6% in the three largest, made
     up of 24.0% in Banking & Finance, 8.0% in Building &
     Materials and 7.6% in Telecommunications.

  -- The portfolio is heavily concentrated in the US, which
     represents 66.8% of the portfolio.

Given Fitch's view of concentration and the current credit
quality of the portfolio, the credit enhancement levels of 5.15%
for Class A and 3.40% for Class B 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 Lehman Brothers Special Financing Inc., (guaranteed
by Lehman Brothers Holding Inc., rated 'A+' /'F1'/Negative
Outlook).  The charged asset of series 2007-1 is an investment
of AU$112.65 million in principal amounts of Floating Rate Notes
due 20 September 2014 issued by GE Capital Australia Funding Pty
Ltd and guaranteed by General Electric Capital Corporation.

Fitch released updated criteria on 30 April 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 20 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.


* Fitch: New Australian Banking Policy Adds to System Stability
---------------------------------------------------------------
Fitch Ratings has said that the recent policy pronouncements
made by the Australian government relating to the domestic
banking sector, which include the establishment of a deposit
protection scheme and a commitment to the "four pillars" policy,
add further stability to a sound banking system.

In a special report, Fitch believes that the proposed deposit
protection scheme, which would see the Australian government
make payments of up to AU$20,000 to Australian bank deposit
holders in the event of a bank failure, reduces the propensity
of a bank run on a troubled institution while largely mitigating
the moral hazard problems that arise in some other schemes.

Meanwhile, the "four pillars" policy, which prevents Australia's
four major banks (Australia & New Zealand Banking Group ('AA-'
(AA minus)/Stable); Commonwealth Bank of Australia
('AA'/Stable); National Australia Bank ('AA'/Stable); Westpac
Banking Corporation ('AA-' (AA minus)/Rating Watch Positive))
from merging amongst each other, promotes a level of stability
while limiting concentration risk within the system.

"Fitch views both proposals as beneficial for the system.
However, it is important to note that they are only one part of
a broader regulatory and supervisory framework that underpins
financial stability in Australia," noted John Miles, Senior
Director in Fitch's Financial Institutions Group. "This
framework is reflected in the current strength of Australia's
major banks.  The present credit crunch has seriously hamstrung
a number of banks around the world, but Australia's major banks
appear to have erred on the side of caution in an over exuberant
credit environment.  Although they have not escaped the credit
crunch unscathed - wholesale funding is more expensive and, at
times, harder to come by - their excellent asset quality overall
is recognized by wholesale investors who have kept funding lines
open."



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

CHINA MERCHANTS BANK: Gets License to Open New York Branch
----------------------------------------------------------
China Merchants Bank has received a banking license to open a
branch in New York this year, CCTV News reports.

The bank, the report relates, is the first Chinese bank to
receive a banking license in the United States since the
adoption of the Foreign Bank Supervision Enhancement Act of
1991.

According to the report, the bank's New York branch will
facilitate trade and other business activities between the US
and China by providing trade services, financing, dollar
clearing and other services.

                      About China Merchants

China Merchants Bank -- http://www.cmbchina.com/-- is the    
second largest bank among China's 12 nationwide shareholding
commercial banks. It was established in 1987 and listed on the
Shanghai Stock Exchange in 2002. The Ministry of
Communications-owned China Merchants Group is the bank's main
shareholder with a 26 percent stake (through various companies).
The bank had 410 banking outlets nationwide and 17,829 employees
at end-2004.

                          *     *     *

The company continues to carry Moody's Investors Service has
affirmed China Merchants Bank's Baa3/P-3 long-term/short-term
foreign currency deposit ratings and D+ bank financial strength
rating.  The affirmation follows CMB's planned purchase of Wing
Lung Bank ("WLB", C+/A2).  The ratings' outlook remains stable.

On August 3, 2006, the Troubled Company Reporter-Asia Pacific
reported that Fitch Ratings upgraded its Individual rating on
China Merchants Bank to 'D' from 'D/E'. At the same time, the
bank's Support rating was affirmed at '3'.


LAS VEGAS SANDS: Moody's to Review Ba3 Ratings for Possible Cut
---------------------------------------------------------------
Moody's Investors Service placed the ratings of Las Vegas Sands
Corp. and Las Vegas Sands, LLC (Venetian Casino Resort, LLC) on
review for possible downgrade.  Ratings affected include Las
Vegas Sands Corp.'s Ba3 Corporate Family Rating and Ba3 rated
senior notes as well as Las Vegas Sands, LLC's Ba3 secured bank
loan rating.  Las Vegas Sands Corp.'s Speculative Grade
Liquidity rating was lowered to SGL-3 from SGL-2.

The review for downgrade considers the slower than anticipated
growth at Las Vegas Sands, LLC stemming largely from the
material softness in the Las Vegas gaming market.  Las Vegas
Sands, LLC is a wholly-owned U.S. subsidiary of Las Vegas Sands
Corp. and owns and operates The Venetian Resort Hotel Casino and
The Palazzo Resort Hotel Casino located on the Las Vegas Strip.  
Las Vegas Sands, LLC is financed on a restricted group basis.

Slower than anticipated growth combined with a continued decline
in overall Las Vegas gaming market revenue would make it
difficult for Las Vegas Sands, LLC to achieve and maintain
debt/EBITDA over the long-term of below 6 times, the level
needed to maintain the current rating.

"The decline in Las Vegas gaming market revenue through May 2008
was worse than Moody's had anticipated and is expected to
continue. Additionally, the weaker economy is taking its toll on
the Las Vegas Strip as casino operators in that market are
experiencing fewer visitors, shorter stays, and lower spend per
visitor," Keith Foley, senior vice president at Moody's, stated.

Moody's review will focus on the evolving operating trends in
the Las Vegas gaming market and their impact on Las Vegas Sands,
LLC's ability to reduce leverage over the longer-term while
contributing financially to the global development initiatives
of its parent company, Las Vegas Sands Corp.

The downgrade to SGL-3 from SGL-2 reflects Moody's concern that
slower than expected growth combined with a continuation of
softness in the Las Vegas gaming market will reduce Las Vegas
Sands, LLC's free cash flow over the next 12-month period as
well as prevent the company from increasing its EBITDA enough to
meet the step-down provision in its bank agreement.  The pro
forma based debt/EBITDA covenant in Las Vegas Sands, LLC's bank
agreement steps down to 7.0 times from 7.5 times on March 31,
2009.  Debt/EBITDA for the latest 12-months ended March 31, 2008
was well over that limit, at about 11 times.  While pro forma
leverage is considerably lower than that, Moody's still expects
the company will be challenged to meet the pro forma debt/EBITDA
covenant over the next few quarters given the current operating
environment as it relates to the Las Vegas Strip.

The ratings of Venetian Macao Limited, also a wholly-owned
subsidiary of Las Vegas Sands Corp, were not affected by this
rating action.  VML owns and operates casino properties in
Macao, China and has its own restricted group financing
arrangement.  VML has a B1 Corporate Family Rating and stable
rating outlook.

Las Vegas Sands Corp. ratings placed on review for possible
downgrade:

  -- Corporate Family Rating at Ba3
  -- Probability of Default Rating at Ba3
  -- US$250 million 6.375% senior notes due 2105 at Ba3

Las Vegas Sands, LLC ratings placed on review for possible
downgrade:

  -- US$5 billion senior secured bank facilities expiring 2014
     at Ba3

Las Vegas Sands Corp. reported consolidated net revenues of
about US$3.4 billion for the 12-month period ended March 31,
2008.  Las Vegas Sands, LLC reported net revenues of about
US$1 billion for that same period.


MGM MIRAGE: Moody's May Cut Low-B Ratings on Revenue Decline
------------------------------------------------------------
Moody's Investors Service placed the ratings of MGM Mirage on
review for possible downgrade and affirmed the company's
Speculative Grade Liquidity rating (SGL) at SGL-3.  The review
is prompted by the challenging operating environment in Las
Vegas, an eroding cushion under the company's one financial
covenant, and the need to complete the financing for the City
Center joint venture in order to address future liquidity needs.

Las Vegas reported much larger than expected declines in gaming
revenues in May.  The year-to-date market trend is worse than
Moody's had anticipated.  Given the pace of deterioration in
these markets (comprising about 80% of the company's EBITDA) as
well as uncertainty regarding the level of future funding
support for CityCenter, the company's credit metrics could
weaken to a level inconsistent with its current Ba2 rating.

The SGL-3 reflects adequate liquidity.  The company's negative
free cash flow position is offset by availability under the
US$4.5 billion revolving credit facility.  While we expect the
company to remain compliant the financial covenant in the
revolver, covenant headroom will shrink.  The SGL-3 is supported
by the company's largely unencumbered asset base that can
provide considerable liquidity support to the company, if
needed.

The review will focus on evolving operating trends in the Las
Vegas gaming market, the final terms of the CityCenter financing
and their impact on the company's liquidity and intermediate
term credit profile.

Ratings placed on review for possible downgrade:

MGM Mirage

-- Corporate Family Rating at Ba2

-- Probability of default rating at Ba2

-- Senior unsecured notes at Ba2

-- Senior subordinated notes at B1

Mirage Resorts

-- Senior unsecured notes at Ba2

Mandalay Resort Group

-- Senior unsecured notes at Ba2

-- Senior subordinated notes at B1

                        About MGM Mirage

Headquartered in Las Vegas, Nevada, MGM MIRAGE owns and operates
17 properties located in Nevada, Mississippi and Michigan, and
has investments in three other properties in Nevada, New Jersey
and Illinois.  MGM MIRAGE has a 50% interest in CityCenter
Holdings Inc., a mixed-use project on the Las Vegas Strip and a
50% interest in MGM Grand Macau, a hotel-casino resort in Macau
S.A.R.


PORTOLA PACKAGING: Defaults on US$60MM Credit Deal w/ GE Capital  
----------------------------------------------------------------
Portola Packaging Inc. received a notice of default under its
US$60.0 million revolving credit agreement dated Jan. 16, 2004,
with General Electric Capital Corporation.

The notice was prompted by the company's filing stating that the
company was investigating accounting irregularities at certain
subsidiaries in China that may require restatement of these
financial statements for approximately US$2.5 million net over
these periods, in total.

While reserving its rights and remedies under the credit
agreement, GECC has been continuing to fund under the credit
agreement.  The company has retained Peter J. Solomon company
and Gibson & Rechan LLC to assist the company in evaluating its
alternatives, including potentially a restructuring of its
funded debt obligations.

Wayzata Investment Partners LLC made a US$15 million term loan
to the company in April 2008.  Discussions are underway with
GECC and Wayzata Investment Partners LLC regarding restructuring
alternatives, including without limitation possible forbearance
arrangements that would allow the company to pursue a balance
sheet restructuring in the near term, to help minimize
disruption to business operations.

The company also related that it will not be able to file its
quarterly report on Form 10-Q for the quarter ended May 31,
2008, until it has completed the investigation of the accounting
irregularities at its China subsidiaries and the restatement
process, if necessary, which could impact the financial
statements for the Third Quarter.  The company expects to file
the restatements, if necessary, soon as possible after
completion of the investigation and expects to file its
Quarterly Report on Form 10-Q for the Third Quarter of fiscal
2008 at that time or shortly thereafter.

                  Restatement of Financial Reports

On June 23, 2008, the company reported that the consolidated
financial statements for these periods must no longer be relied
upon:

   * Quarterly financial statements for the periods ended
     Nov. 30, 2006; Feb. 28, 2007, and May 31, 2007, filed with
     the Securities Exchange Commission;

   * Annual financial statements for the fiscal year ended
     Aug. 31, 2007 filed with the SEC;

   * Quarterly financial statements for the periods ended
     Nov. 30, 2007, and Feb. 29, 2008; filed with the SEC; and

   * S-1 Prospectus Amendments filed with the SEC which includes
     information from these financial statements.

During the company's review of its financial statements for its
China subsidiaries, Portola (Asia Pacific) Holding Limited and
Shanghai Portola Packaging company Limited, the company
discovered accounting irregularities totaling up to
approximately US$2.5 million net over these periods.

These irregularities consisted of errors in the accounts
receivable, accounts payable, inventory and cost of sales
accounts.  The investigation is continuing and it is not known
at this time if theft was involved or if there were just
erroneous accounting entries.

These irregularities may result in a decrease of approximately
US$2.5 million, in total, in the net income reported by the
company in the six quarters.  The company's president and its
chief financial officer well as the Audit committee of the board
of directors have discussed this matter and the continuing
investigation with BDO Seidman LLP, the company's independent
auditors.  The company will, if necessary after completion of
the analysis, restate the financial statements soon as
practical.

                     About Portola Packaging

Headquartered in Batavia, Illinois, Portola Packaging Inc. --
http://www.portpack.com/-- designs, manufactures and markets     
tamper-evident plastic closures used in dairy, fruit juice,
bottled water, sports drinks, institutional food and other non-
carbonated beverage markets.  The company also produces a wide
variety of plastic bottles for use in dairy, water and juice
markets, including various high density bottles, as well as
five-gallon polycarbonate water bottles.  In addition, the
company designs, manufactures and markets capping equipment for
use in high speed bottling, filling and packaging production
lines.  Portola is also engaged in the manufacture and sale of
tooling and molds used for blow molding.


TCL CORP: 1H LCD TV Sales Up 2.3 Times to 1.52 Million Sets
-----------------------------------------------------------
TCL Corporation's LCD TV sales volume soared 2.3 times year-on-
year to 1.52 million sets in the first six months of 2008, of
which about 456,000 were sold in the Chinese market, SinoCast
News reports.

The company, the report relates, sold 5.448 million cathode ray
tube (CRT) TVs during the period, declining 15.6% from a year
ago.  Meanwhile, it sold 6.716 million mobile phones, up 59.56%
from the comparable period of 2007, the report notes.

In June, the report says, TCL sold around 387,000 LCD TVs,
rocketing 3.5 times from last June; 779,000 CRT TVs, down 18.8%;
and 1.164 million mobile phones, rising 47.01%.

According to the report, the company attributed the sharp growth
in LCD TV sales in the off-season to its gradual mature
deployment on global operation, the integration of its global
supply chain, as well as its quickened pace to launch new
products and technologies.

                         About TCL Corp

Headquartered in Guangdong Province, China, TCL Corporation --
http://www.tcl.com-- Corporation is principally engaged in the  
manufacture of TV sets and handset products.  TCL Corp is the
parent of Hong Kong-listed TV maker TCL Multimedia Technology
Holdings Ltd and cellphone maker TCL Communication .

Xinhua Far East China Ratings downgraded on April 7, 2006,
the domestic currency issuer credit rating of TCL Corporation to
"BB" from "BBB".  The ratings outlook remains negative.


XINHUA FINANCE: Completes Sale of Mergent and Kinetic
-----------------------------------------------------
Xinhua Finance Limited has completed the sale of a 100% interest
in Mergent Inc., a US-based financial data company, and Kinetic
Information System Services Limited, a UK-based index
calculation company, to Carousel Capital Partners III, L.P., a
private equity fund.

As reported by the Troubled Company Reporter - Asia Pacific on  
June 27, 2008, the aggregate purchase price under the agreement
will be US$93.5 million in cash.  Within 45 days of the closing,
XFL will make an offer to repurchase approximately US$50 million
of its outstanding US$100,000,000 10% Senior Guaranteed Notes
due 2011.

Commenting on the agreement, XFL Chief Executive Officer Jae Lie
said "This transaction is the initial result of the review of
our operations which we have undertaken in recent months in
consultation with our financial advisor Gleacher Partners.  The
sale of Mergent and Kinetic is the first step in our overall
strategy to unlock shareholder value by focusing our resources
on our core competency, which is providing valuable information
to China's financial information sector.  We continue to be
committed to streamlining our operations and focusing on growing
our core businesses in China."

                   About Xinhua Finance Limited

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

                          *     *     *

Xinhua Finance Limited continues to carry Moody's "B2" LT Family
and Senior Unsecured Debt Ratings.  The company also carries
S&P's "B" LT Credit Rating.


* CHINA: Major Banks' Non-Performing Loan Ratio Down 6.10%
----------------------------------------------------------
China's major commercial banks saw a drop in their non-
performing loan ratio to 6.10% by the end of June, down 0.62
percentage point from the start of the year, Edmund Klamann of
Reuters reports, citing the China Banking Regulatory Commission.

According to the report, the regulator said the total non-
performing loans at the banks fell to CNY1.18 trillion (US$173.1
billion), down CNY24.71 billion, from the start of the year.

Meanwhile, Reuters relates, CBRC Chairman Liu Mingkan called for
greater scrutiny of changes in the property market with a view
to avoiding and controlling risks.

The report says some analysts have warned that government
efforts to clamp down on property speculation could put many
property developers out of business, potentially adding to
banks' non-performaing loans.



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

ARCELOR NEGOCE: Final General Meeting Set for August 15
-------------------------------------------------------
The sole member of Arcelor Negoce Distribution China Holding
Limited will hold final general meeting on August 15, 2008, at
11:00 a.m.

At the meeting, Fang Da Jun, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.


ASCALADE COMMS: Names Troy Bullock & Greg Allen as Board Members
----------------------------------------------------------------
Ascalade Communications Inc. provided an update in accordance
with the Ontario Securities Commission Policy 57-603 Defaults by
Reporting Issuers in Complying with Financial Statement Filing
Requirements. In accordance with the OSC Policy, the company
confirmed that, except as disclosed in this press release, or in
press releases dated April 2, 2008, April 9, 2008, April 29,
2008, May 14, 2008, May 21, 2008, June 24, 2008, and June 30,
2008 issued by the company since its initial default
announcement dated March 31, 2008:

   (i) there is no material change to the information set out in
       its initial default announcement filed pursuant to the
       OSC Policy;

  (ii) except that this announcement was delayed by several days
       due to recent power outages in Vancouver, which effected
       the company's ability to make this announcement, there
       has been no failure by the company to adhere to the
       Alternative Information Guidelines set out in the OSC
       Policy with respect to the financial statement filing
       default; and

(iii) there is no other material information concerning the
       affairs of the company that has not been generally
       disclosed.
    
Any recovery in the CCAA for creditors and other stakeholders of
the company, including shareholders, is uncertain and is highly
dependent upon a number of factors, including the recovery from
the sale of the factory, equipment and inventory in the PRC and
the outcome of the Scheme in Hong Kong.

On June 30, Ascalade Communications accepted the resignations of
John Kim and Henry Quan from its board of directors, and that
all of the company's remaining staff members in Canada have been
released from their employment.  The company thanked each of
these individuals for their service.

The company also disclosed that Troy Bullock and Greg Allen will
be joining its board of directors, effective as of June 30,
2008. With these changes, the company's board of directors is
comprised of Greg Allen, Troy Bullock and Edmund Ho.

The Court has approved the plan of compromise or arrangement
under the CCAA.  A copy of the Plan of Compromise or Arrangement
is available for free at http://ResearchArchives.com/t/s?2ec7 

                About Ascalade Communications Inc.

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

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


BASE (CN): Final General Meeting Set for August 6
-------------------------------------------------
Base (CN) Limited will hold its final general meeting on Aug. 6,
2008, at 10:00 a.m., at Suites 2205-06 of Island Place Tower,
510 King's Road, in North Point, Hong Kong.

At the meeting, Chang Lai Ying and Lau Kwok Hung, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.


BETTERISE LIMITED: Members' Final Meeting Set for August 11
-----------------------------------------------------------
The members of Betterise Limited will hold their final meeting
on August 11, 2008, at 10:00 a.m., to hear the liquidator's
report on the company's wind-up proceedings and property
disposal.

The company's liquidators are:

          Chan Kwok Man
          Mok Wai Kwong
          Beverley Comm. Ctr., Room 1029
          87-105 Chatham Rd., Tsimshatsui
          Kowloon, Hong Kong


DIPLOM LIMITED: Final General Meeting Set for August 14
-------------------------------------------------------
The sole member of Diplom Limited will hold a final general
meeting on August 14, 2008, at 11:00 a.m., at the 22nd Floor of
Prince's Building, in Central, Hong Kong.

At the meeting, Rainier Hok Chung Lam, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


KESSEL TELECOM: Liquidators Quit Posts
--------------------------------------
On June 27, 2008, Kennic Lai Hang Lui and Lau Wu Kwai King quit
as liquidators of Kessel Telecom Limited.

The former Liquidators can be reached at:

          Kennic Lai Hang Lui
          Lau Wu Kwai King, Lauren
          Messrs. Kennic L.H. Lui & Co.
          Ho Lee Commercial Building, 5th Floor
          38-44 D' Aguilar Street
          Central, Hong Kong


RICHCOURT LIMITED: Placed Under Voluntary Liquidation
-----------------------------------------------------
At an extraordinry general meeting held on July 3, 2008, the
members of Richcourt Limited resolved to voluntarily liquidate
the company's business.

Creditors are required to file their proofs of debt by
August 12, 2008, to be included in the company's dividend
distribution.

The company's liquidators are:

          Leung Shu Yin, William
          Au Wing Fai
          Kai Tak Commercial Building
          Rooms 903-908, 9th Floor
          317-319 Des Voeux Road Central
          Hong Kong


RUSK (CHINA): Commences Liquidation Proceedings
-----------------------------------------------
Rusk (China) Limited commenced liquidation proceedings on July
4, 2008.  Wan Yiu Chung, Paul and Lin Lai Har, Wendy were
appointed as liquidators.

The Liquidators can be reached at:

          Wan Yiu Chung, Paul
          Lin Lai Har, Wendy
          1301 Eton Tower, 8 Hysan Avenue
          Causeway Bay
          Hong Kong


THIRST FOR CHRIST: Members Resolve to Liquidate Business
--------------------------------------------------------
At an extraordinary general meeting held on July 4, 2008, the
members of Thirst for Christ Forerunner Church Limited resolved
to voluntarily liquidate the company's business.

To Wai Kum was appointed as liquidator.

The Liquidator can be reached at:

          To Wai Kum
          Concordia Plaza
          1711 North Tower
          1 Science Museum Road
          Tsim Sha Tsui
          Kowloon, Hong Kong


TRUMP FORTUNE: Inability to Pay Debts Prompts Wind-Up
-----------------------------------------------------
At an extraordinary general meeting held on June 18, 2008, the
members of Trump Fortune Enterprises Limited resolved to
voluntarily liquidate the company's business due to its
inability to pay its debts.

The company's liquidator is:

          Cheung Hok Hin, Alan
          Blissful Building
          Room 1304
          243-247 Des Voeux Road
          Central, Hong Kong


WORLD FAITH: Members and Creditors to Meet on August 15
-------------------------------------------------------
The members and creditors of World Faith Trading Limited will
hold a final meeting for its members and creditors on August 15,
2008, at 2:00 p.m., at the offices of Unit 301, 3rd Floor of
Malaysia Building, 50 Gloucester Road, in Wanchai, Hong Kong.

At the meeting, Yuen Shu Tong, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.



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

AIR INDIA: Expected to Cut Down Routes Due to Mounting Losses
-------------------------------------------------------------
Air India will have to take harsh decisions including reduction
in flights to cut down the mounting losses and reduce
expenditure, The Times of India reports citing civil aviation
minister Praful Patel.

"Some harsh steps are required by Air India.  They have to cut
down loss-making routes.  They could also reduce the
expenditures," the Times quoted Mr. Patel as saying.

All airlines are cutting down on routes, and Air India is also
planning similar measures, Mr. Patel said in the report.  He
added that the airlines can look at the excess capacity but
there will be no reduction in connectivity.

Air India incurred a net loss of Rs 447.93 crore in the year
2006-07 and is expected to incur a net loss of Rs 2,144 crore
for 2007-08.

The carrier blamed its net loss for 2006-07 on intense price
competition and rising fuel and labor costs.

Headquartered in Mumbai, India, national flagship airline Air
India -- http://www.airindia.com/-- transports passengers  
throughout India and to more than 40 destinations throughout the
world.  Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle
East, and Air India Cargo provides freight transportation.  The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on
domestic routes.  The combined airline, part of a new holding
company called National Aviation Company of India, uses the Air
India brand.  The new Air India and its affiliates have a fleet
of more than 110 aircraft altogether.


TATA POWER: Acquires 26% Stake in Bhutan's Power Project
--------------------------------------------------------
Tata Power Company Limited has signed a partnership agreement
with The Royal Government of Bhutan to develop the 114 MW run-
of-the-river Hydro Electric Power Project over river Dagachhu
through Druk Green Power Corporation Limited.  The project will
be executed by a special purpose vehicle – Dagachhu Hydro Power
Corporation Limited.

According to Mr. Prasad Menon, Tata Power Managing Director, the
partnership consists of equity participation and off-take of
power by the company and Tata Power Trading Company Limited
respectively.

As part of the transaction, Tata Power will acquire a 26% in the
project, while Tata Power Trading has negotiated to purchase all
the power generated from the project.  Tata Power Trading will
off-take power from the project for a period of 25 years and the
power will be delivered at India-Bhutan Border.  The power is
expected to be evacuated through the Tala Transmission Link into
India's Eastern Region Grid.

Tata Power is now working on expanding its power projects as
energy demand in India soars.

As reported in the Troubled Company Reporter-Asia Pacific on
July 18, 2008, Tata Power, according to Bloomberg News, may
invest in two coal mines overseas to supply as much as 4 million
metric tons of the fuel.

Mines in Australia, Indonesia or Mozambique would meet half the
additional 8 million tons of coal that Tata Power needs by 2013
to fuel a fivefold increase in generating capacity, Tata Power
Executive Director S. Ramakrishnan told Bloomberg News.

                      Other Expansion Plans

As reported in the Troubled Company Reporter-Asia Pacific on
June 25, 2008, Tata Power said it plans to increase its electric
generation capacity by 10,000 MW in the next five years.

The company has signed financing agreements for its 4000 MW
Mundra Ultra Mega Power Project, with an estimated cost of
INR17,000 Crores (US$4.2 billion) with the first of the five
units to be commissioned in September 2011.

Financing for the 1050 MW Maithon Joint Venture Project has also
been completed.  The project, estimated at a cost of Rs.4,450
Crores is being funded on a debt-equity ratio of 70:30.  The
promoters, Tata Power abd DVC, would bring in equity in a ratio
of 74% and 26% respectively.  The debt for the project is
Rs.3,115 Crores and is being financed by various banks led by
State Bank of India.

The company said its 250 MW (Unit 8) expansion project at
Trombay is progressing ahead of schedule and will be
commissioned by October 2008, while its 50.4 MW Khandke Wind
Farm Project has been completed.  Two additional wind projects
of 50.4 MW each are being developed in Jamnagar district at
Gujarat and Gadag district at Kartakana.

As to its Captive Power Projects for Tata Steel, the 120 MW
Power House #6 at Tata Steel Works, Jamshedpur will be
commissioned this financial year while the 120 MW Unit #5 at
Jojobera will be commissioned in the next financial year.

The Unit 1 of 2x45 MW Phase of Haldia Power Plant Project was
synchronized with the grid in April 2008, and the second unit is
scheduled to commission later this year.

Tata Power said it is actively pursuing setting up mega power
project in coastal Maharashtra and is in discussions with the
Government of Maharashtra for getting required assistance in
land acquisition.

The company completed the refinancing of its bridge loan taken
for the acquisition of 30% equity stakes in major Indonesian
thermal coal producers, PT Kaltim Prima Coal and PT Arutmin
Indonesia, as well as related trading companies owned by PT Bumi
Resources Tbk.  The company successfully refinanced US$860
million out of a total of US$950 million bridge loan taken at
the time of acquisition.

                   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.


* IDFC Growth May Slow on Need to Raise Capital, Analysts Say
-------------------------------------------------------------
Shares of Infrastructure Development Finance Co. were down 14
rupees, or 13 percent, at 95.65 rupees, its lowest in six months
on concern that it may have to raise additional capital,
Bloomberg News reports.

The company may need about US$250 million in equity capital,
Morgan Stanley analysts said in a note cited by Bloomberg News.

A central bank requirement for finance firms to increase capital
to 15 percent of assets, from 10 percent, will force IDFC to
sell stock, the note cited by Bloomberg News said.

“This is a big negative,” Morgan Stanley analyst Anil Agarwal
said in the cited report.  “Growth will have to slow as IDFC
becomes much more cautious on capital consumption.”

As reported in the Troubled Company Reporter-Asia Pacific on
July 17, 2008, CRISIL said it believes that a number of medium-
sized and small real estate developers could face a liquidity
crunch in the months ahead.  

“Many such developers have stretched themselves operationally,
and borrowed heavily, to benefit from the real estate upturn of
the past three years.  The current slowdown in demand for
realty, coupled with declining internal accruals and reduced
funding options, exposes them to the downside of this aggressive
strategy: there are large amounts of debt already on their
balance sheets, and external funds are increasingly hard to come
by,” CRISIL said in a statement.

CRISIL foresees delays in many ongoing and planned real estate
projects, thereby leading to the possibility of sale of projects
or even enterprises.

Separately, Sumit Sharma of Bloomberg News reported last week
that DLF Limited was downgraded to “underperform” from “neutral”
by Credit Suisse on concern that the Indian developer's new real
estate projects may be delayed due to slowing demand and
difficulties in raising funds.

DLF shares dropped 2.4 percent, the most in eight days, to 446
rupees at 10:40 a.m. local time on news of the cut, Bloomberg
News said.

According to Bloomberg News, Credit Suisse analysts Anand
Agarwal and Musaed Noorani said accelerating inflation and
borrowing costs that have climbed to the highest in six and a
half years are deterring home buyers, while companies are
delaying real estate investments due to faltering economic
growth.  The developers may also defer new projects in the next
fiscal year as the drop in Indian equities and high debt costs
crimp fund raising, they said.

The report related that the analysts also dropped the stock
price target for DLF by 48 percent to 342 rupees saying the
company's plans to buy back shares are “ill advised” and the
funds would be better used for new projects.

DLF's Board of Directors approved July 10 the buyback of its
equity shares up to price of Rs 600 per equity share.

In a resolution approved by its Board, DLF would buy a maximum
of 2.2 crore equity shares which will not reduce the minimum
public shareholding below 10%, at a price not exceeding Rs. 600
per equity share.  The company will allocate up to Rs. 1,100
crore for this purpose, and will be financing the same through
its internal resources.

The maximum price fixed for the buyback is at a premium of 33.24
% over the last average closing price of the company's equity
shares on the BSE and NSE as of July 9, 2008.

DLF has appointed JM Financial Consultants Private Limited and
DSP Merrill Lynch Limited as the merchant bankers for the
buyback.


* INDIA: Travel Agents Balk at Scrapping Air Ticket Commission
--------------------------------------------------------------
The Business Standard reports that major travel agents have
threatened to stop selling domestic and international air
tickets until airlines agreed to restore commissions that they
had said they would scrap starting October 1, citing higher
costs and slower growth.

According to the report, the decision was taken at a meeting in
Mumbai by the country's three top travel associations — the
Travel Agents Association of India, Travel Association
Federation of India and Indian Association of Tour Operators —
representing over 4,500 IATA-accredited international and
domestic agents and more than 85 per cent of the total air
ticketing business.

The associations said they would stop selling tickets if a
meeting between the agents and leading airlines scheduled for
July 24 in Delhi did not come out with a solution, the Business
Standard relates.

The Business Standard says airlines have been giving agents 5
per cent of their base fare on the tickets as commission, a
recent reduction from the earlier 9 per cent.  Last month,
domestic airlines Jet Airways, Kingfisher and Air India
unilaterally sent letters to travel agents saying no commissions
would be given from October 1.  Foreign carriers like Lufthansa,
Singapore Airlines and British Airways, among others, did the
same.  Airlines say they will save over Rs 1,000 crore from the
move.

"This zero-commission is the question of our very existence,"
the Business Standard quoted Sunil Bijlani, a travel agent from
Mumbai, as saying.



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

BANK DANAMON: Wants to Increase Stake in Adira to 95%
-----------------------------------------------------
Bank Danamon is seeking to increase its present 75 shareholding
in Adira Finance by 20 percent or a total of 95 percent, Antara
News reports, citing bank President Sebastian Paredes.

According to the report, the bank is still awaiting the central
bank's approval regarding its plan.

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

The Troubled Company Reporter-Asia Pacific reported on Feb. 25,
2008, Fitch Ratings took rating actions on PT Bank Danamon.
Fitch revised the outlook to stable from positive.  The detailed
ratings are:

   -- LTFC IDR upgraded to 'BB' from 'BB-'/Outlook revised to
      Stable from Positive;

   -- Support rating upgraded to '3' from '4';

   -- Support Rating Floor upgraded to 'BB-' from 'B';

   -- Individual rating affirmed at C/D;

   -- ST IDR affirmed at 'B';

   -- National Long-term affirmed at 'AA(idn)'.

On Oct. 19, 2007, Moody's Investors Service raised the foreign
currency long-term debt and foreign currency long-term deposit
ratings of PT Bank Danamon Indonesia Tbk:

   -- The foreign currency subordinated debt rating was raised
      to Ba2 from Ba3.

   -- Foreign currency long-term deposit rating to B1 from B2.

   -- The Not Prime foreign currency short-term deposit rating,
      Baa3 global local currency deposit rating and D BFSR were
      unaffected.


BANK NIAGA: Shareholders Approve Niaga-Lippo Merger
---------------------------------------------------
Shareholders of PT Bank Niaga Tbk and PT Bank Lippo Tbk approved
resolutions to merge both banks during their respective
extraordinary general meetings held on July 18, 2008.  The
merger entails that:

   -- CIMB Group Sdn Bhd, a wholly-owned subsidiary of
      Bumiputra-Commerce Holdings Berhad (BCHB), to acquire 51%
      of Bank Lippo shares from Santubong Investments, a wholly-
      owned subsidiary of Khazanah Nasional Bhd, for
      MYR2.07 billion;

   -- BCHB to issue 207.1 million new ordinary shares at MYR10
      each to Khazanah as consideration for the 51% stake in
      Bank Lippo;

   -- The merger of Bank Niaga and Bank Lippo (where Bank Niaga
      will be the surviving entity), which will see Bank Lippo
      shareholders receiving some 2,822 new Bank Niaga shares
      for every 1,000 Bank Lippo shares they hold;

   -- CIMB Group to undertake a proposed standby facility to
      purchase Bank Niaga and Bank Lippo shares at IDR1,052 and
      IDR2,969 each respectively from minority shareholders of
      Bank Niaga and Bank Lippo who opt not to take up equity in
      the merged bank, Bank CIMB Niaga.  CIMB Group will emerge
      with a shareholding of between 58.7% and 81.3% of Bank
      CIMB Niaga, depending on the number of shareholders who
      opt to take up equity in the merged bank; and

   -- Bank Lippo's assets and liabilities to be transferred to
      Bank Niaga by operation of law

"These shareholders' approvals bring us one step closer to
completing this merger for growth that will form the fifth
largest bank in Indonesia by assets," said Dato Sri Nazir Razak,
Group Chief Executive, CIMB Group.  

"By combining the strengths of both banks, the merger will
result in a bank well-positioned to compete and grow in the
increasingly competitive Indonesian banking environment,"
Mr. Razak added.

As part of the merger exercise, a total of 10,560 employees,
representing 96% of the combined staff strength of Bank Niaga
and Bank Lippo, have opted to join Bank CIMB Niaga as at
July 14, 2008.  "This is a merger for growth, so there will be
no staff attrition.  We are pleased that such a high proportion
of existing employees have chosen to come on board with us to
pursue this new beginning," said Mr. Nazir.

Bank Niaga shareholders also approved the new board composition
for Bank CIMB Niaga, and the proposed appointment of its new
President Director, Arwin Rasyid.

Mr. Arwin, 51, has held several senior positions in the banking
sector including Vice President Director of Bank Negara
Indonesia (BNI), President Director of Bank Danamon Indonesia
and Vice President Director of Bank Niaga.  He was formerly
President Director and Chief Executive Officer of PT
Telekomunikasi Indonesia.  He also served as Vice Chairman of
the Indonesian Bank Restructuring Agency (IBRA).  "We are
confident of his ability to steer Bank CIMB Niaga to become the
premier universal bank in Indonesia," said Mr. Nazir.  

Mr. Arwin's appointment is still subject to approval by Bank
Indonesia.

The merged bank's President Commisioner will be Dato' Shukri
Hussin, while Roy Tirtadji will be Deputy President
Commissioner.  Other commissioners are Abdul Farid Alias, Ananda
Barata, Sri Hartina Urip Simeon and Zulkifli M. Ali.

The merger is still subject to approvals from regulatory
authorities in both Indonesia and Malaysia.  The target date for
legal completion of the merger is October 1, 2008, while full
business integration is scheduled to be completed by the fourth
quarter of 2009.

                        About Bank Niaga

PT Bank Niaga Tbk was established in 1955 and is 62.41% owned by
CIMB Group.  It offers a comprehensive suite of conventional and
Islamic banking products and services, from 256 branches in 48
cities in Indonesia and is the second largest player in the home
loans market.  Bank Niaga has over 6,000 employees.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
June 13, 2008, Moody's affirmed Bank Niaga's Ba2 Issuer/foreign
currency subordinated debt rating as well as the bank's B1/Not
Prime foreign currency long-term/short-term deposit rating.
The outlook for all ratings is stable.


* INDONESIA: Plans to Swap Short-Term Debt w/ Longer Term Paper
---------------------------------------------------------------
Indonesia announced plans to swap short-term rupiah debt with
longer term paper as part of efforts to ease the country's
refinancing risks, Reuters reports citing statement from the
finance ministry.

According to the report, the ministry plans to swap government
bonds maturing in 2009-2013 with fixed rate bonds FR0035
maturing on June 15, 2022, and carrying a coupon
rate of 12.9 percent.



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

SHINSEI BANK: Former LT Credit Bank of Japan Execs Acquitted
------------------------------------------------------------
Japan's supreme court has acquitted three former executives of
the now-defunct Long-Term Credit Bank of Japan, ending a long
legal case, Michiyo Nakamoto of the Financial Times reports.

The court, the report relates, ruled that Ex-President Katsunobu
Onogi and Yoshiharu Suzuki and Masami Suda, former deputy
presidents, were not guilty of understating the bad loans owed
by its non-bank affiliates.

According to the Times, the supreme court overturned the rulings
of lower courts, which had found the three responsible for
hiding about JPYY313 billion in bad loans by failing to use new
accounting standards issued by the finance ministry, and
illegally paying JPYY7.1 billion in dividends in spite of a lack
of funds to cover the payment.

The lower courts had given Mr. Onogi a three-year suspended jail
term, and two-year suspended terms to Mr. Suzuki and Mr. Suda,
the report says.

The Time relates that the supreme court supported their case
that use of the old accounting standards was not in violation of
the law.   The new standards, which would have provided more
transparency, were not commonly used at the time, the report
notes.

The court, the Times says, also upheld the lower courts' ruling
that the executives could not be held liable for damages, as
claimed by the government-run body that took over LTCB's bad
loans.

LTCB collapsed in 1998 under the weight of bad loans, and was
nationalised and later sold amid controversy to a consortium led
by Ripplewood Holdings, which re-named it Shinsei Bank.

                        About Shinsei Bank

Headquartered in Tokyo, Japan, Shinsei Bank Ltd --  
http://www.shinseibank.com/-- is a financial institution    
providing a full range of financial products and services to
both institutional and retail customers based on a three-pillar
strategic business model comprising institutional banking,
consumer and commercial finance and retail banking.  The Bank
has total assets of JPY11.5 trillion (US$115 billion) on a
consolidated basis (as of March 2008) and a network of 41
outlets that includes 35 Shinsei Financial Centers, 2 Platinum
Centers and 4 BankSpots in Japan.

                          *     *     *

The bank continues to carry Fitch Ratings affirmed Shinsei Bank
Ltd's Short-term foreign and local currency IDRs at 'F2',
Individual 'C', Support '3', and Support Rating Floor 'BB+'.

Shinsei Bank Ltd also continues to carry a "BB" Subordinated
Debt rating, which was placed by Mikuni Credit Ratings on
October 25, 2006.
  

ZEPHYR CO: JCR Downgrades Senior Debts & Bond Ratings to D
----------------------------------------------------------
JCR has downgraded the ratings on senior debts and bonds of
Zephyr Co. from B+ to D and from B to D.

Senior Debts D

Issues     Amount(bn)  Issue Date    Due Date  Coupon  Rating
bonds #2    JPYY12      8/22/06      8/22/08    2.47%     D
bonds #3     JPY8       6/21/07      6/21/10    2.94%     D

Zephyr resolved the filing of a petition for the civil
rehabilitation proceedings at the Board of Directors Meeting
held today and filed it with the Tokyo District Court and it was
accepted by the Court.  JCR has assigned the D ratings to the
company.

                        About Zephyr Co.

Zephyr Co. Ltd. -- http://www.zephyr.co.jp/-- is a Japan-based     
real estate company.  The company has four business segments.
The Real Estate Property Sale segment is engaged in the
planning, development and sale of condominiums and detached
housing.  The Real Estate Liquidation segment sells investment
real estate properties.  The Construction Management (CM)
segment is engaged in the construction business, utilizing CM
method, and the planning and construction of commercial
buildings.  Through its subsidiaries, the Others segment is
involved in the general management of condominiums and buildings
for leasing, as well as the sale, leasing, and the provision of
agency businesses of real estate properties. Headquartered in
Tokyo, the company has 19 subsidiaries and five associated
companies.



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

PECD BERHAD: Appeals Ruling Dismissing RO Extension Application
---------------------------------------------------------------
PECD Berhad and its wholly owned subsidiary, PECD Construction
Sdn Bhd (PCSB), have filed a notice of appeal on July 16, 2008,
against the decision of the High Court for dismissing the
company's application for the extension of the restraining order
granted on May 9, 2008.

The petition is fixed for hearing at the Shah Alam High Court on
November 7, 2008.

Morover, the company and PCSB had called for a court convened
meeting with all the scheme creditors, including the Petitioner,
to vote on a proposed Scheme of Arrangement (SoA).  If the
scheme creditors do not approve the proposed SoA, the company
will request the scheme creditors to support its application for
an extension of the Order for an additional 90 days in
compliance with Section 176(10A) of the Companies Act 1965 to
allow for a revised scheme to be tabled for the scheme
creditors' consideration at a later date.

                        About PECD Berhad

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.


CNLT (FAR EAST): Court Dismisses Originating Summons
----------------------------------------------------
The High Court of Malaya at Seremban, on July 8, 2008, dismissed
CNLT (Far East) Berhad's Originating Summons pursuant to Section
176 of the Companies Act, 1965 with costs and struck out the
Interim Restraining Order granted by the Court on June 10, 2008.

In the hearing at the High Court of Malaya at Kuala Lumpur on
July 16, 2008, Dato' Prem Krishna Sahgal, Managing Director of
the company has pleaded guilty to the contempt proceedings
brought by Vearrian Tanzania Ltd against him in refusing to
comply with the Order in the appointment of provisional
liquidators to the company and after hearing Dato' Sahgal
mitigation, the Learned Judicial Commissioner fixed the
sentencing date to July 23, 2008.

The same Court adjourned the company's application for a
validation order to pay salaries to its employees to a final
date on July 23, 2008, to enable the provisional liquidators to
file a report on the financial status of the company.

The same Court has also fixed the winding up petition and the
company's application to set aside the appointment of the
Provisional Liquidators to July 23, 2008, for hearing.

                  About CNLT (Far East) Berhad

CNLT (Far East) Berhad is engaged in the manufacture and sale of
yarn.  Its subsidiary includes Indosen S.A., which is engaged in
the manufacture and sale of textiles and apparel.  The company
operates in Malaysia and Senegal.

                          *     *     *

The company was admitted into the Amended PN17 listing criteria
of the Bursa Malaysia Securities Bhd as it has triggered
Paragraph 2.1(e) of the bourse's listing requirements:

     (i) Based on the unaudited quarterly results of CNLT for
         the first quarter ended March 31, 2007, as announced
         to Bursa Securities, the shareholders' equity on a
         consolidated basis is less than 50% of the issued and
         paid up capital of the company ; and

    (ii) The auditors of CNLT have expressed a modified opinion
         with emphasis on the Company's going concern in its
         latest audited accounts for the financial year ended
         December 31, 2005.


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

AMMA CORP: Court Appoints Liquidators
-------------------------------------
The High Court has appointed David Donald Crichton and Keiran
Anne Horne, chartered accountants of Crichton Horne & Associates
Limited, as liquidators of Amma Corp Limited and Wine Reach
Services Limited

Only creditors who were able to file their proofs of debt on
July 12, 2008, were included in the company's dividend
distribution.

Creditors and shareholders may direct their inquiries to:

          Marie Inch
          Crichton Horne & Associates Limited
          Old Library Chambers
          109 Cambridge Terrace (PO Box 3978)
          Christchurch
          Telephone: (03) 379 7929
          Website:  www.cha.co.nz


BLUE CHIP: Certain Mortgaged Properties Up for Sale
---------------------------------------------------
A central Auckland Blue Chip property, an empty lot at 19 Anzac
Avenue, will be sold by its mortgagees on August 7, the New
Zealand Herald reports.

According to the Herald, the site, which was planned to be a
149-unit apartment development, is owned by Ile My Ltd, a
company associated with the interests of Blue Chip founder Mark
Bryers.

The Herald relates that an estimated NZ$11.2 million in investor
deposits for the project are nowhere to be found.

The Herald says Blue Chip investors put down deposits on the
future The Emily apartments through a reseller company
associated with the property investment group -- which was later
placed under liquidation when the Blue Chip scheme collapsed in
February.

Meanwhile, Greg Ninnes of Sunday Star Times reports that another
Blue Chip property on which a swank international resort hotel
was intended to be built is now in the hands of its mortgagee
and will probably be sold.

The Times says Mr. Bryers had pledged expected profits from the
hotel development as security for a NZ$38.1 million debt created
by the restructuring of the listed Blue Chip group last
September.

The possible sale of the would-be resort hotel was confirmed by
Tim Downes, the receiver for one of the property's mortgagees,
who said new owners would be able to proceed with the resort as
Mr. Bryers had planned, or do whatever else they wanted with it.

FP Holdings fka Vestar Wealth Management holds the first
mortgage on the property while Capital + Merchant Finance holds
a second mortgage.  Both companies are in receivership.

The adjacent golf course and country club, which Bryers also
owns, is also in the process of being sold by mortgagee sale,
the Times says.

                       About Blue Chip NZ

Blue Chip New Zealand Ltd. is a financial services company with
offices throughout New Zealand.  It is a subsidiary of Blue Chip
Financial Solutions Limited, now known as Northern Crest
Investments.  Northern Crest operates in two divisions:
financial services and leasing services.  The financial services
division is engaged in the provision of financial structuring
services and investment product to a variety of clients.  The
leasing activities division is engaged in rental of residential
property.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
April 15, 2008, Blue Chip New Zealand Ltd. is in voluntary
liquidation, joining 20 other Blue Chip companies that are now
being wound up.  Blue Chip New Zealand is a subsidiary of the
company formerly known as Blue Chip Financial Solutions.


BRAZENHEAD LTD: Shareholders Appoint Liquidator
-----------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Brazenhead Limited has appointed John Francis
Managh, of Napier, as liquidator.

The Liquidator can be reached at :

          John Managh
          50 Tennyson Street
          (PO Box 1022)
          Napier
          Telephone/Facsimile: (06) 835 6280


BROADBAT LTD: Commences Liquidation Proceedings
-----------------------------------------------
The High Court at Wellington held a hearing on June 30, 2008, to
consider an application putting Broadbat Limited into
liquidation.

The application was filed on May 20, 2008, by Accident
Compensation Corporation .

The plaintiff's address for service is at:

          Maude & Miller
          2nd Floor
          McDonald's Building
          Cobham Court
          PO Box 50555 or DX SP 32505
          Porirua City

Dianne S. Lester is the plaintiff's solicitor.


CAPITAL + MERCHANT: Debenture Holders To Receive Lower Payout
-------------------------------------------------------------
Tim Downes and Richard Simpson of accounting and business
advisory firm Grant Thornton, acting as first receivers for
Capital + Merchant Finance, said that the finance company's
debenture holders are now likely to receive a recovery of only
8% at best of their investment, compared with an original
estimate of 14% to 59% long term.  When combined with the
expected full recovery for Fortress, who appointed the receivers
under their priority charge, the overall forecast recovery comes
out at 18%.

In their six-monthly report on the state of affairs of the
failed finance company, the receivers also said that they are
concerned about the appropriateness of a number of transactions
"and we continue to investigate these along with agencies such
as the Securities Commission."

                        Recovery Issues

The receivers noted that the preliminary estimated range of
recovery reflected considerable risks and uncertainties relating
to the recoverability of certain loans.

"Unfortunately, the poor quality lending, the deteriorating
property market and lack of alternative credit to facilitate
refinancing options have had an adverse effect on our ability to
recover outstanding loans and assets," they said.  "As a
consequence, we now revise our estimate of recoveries to
debenture holders to a recovery of up to 8% of their
investment."

Gross recoveries of NZ$42.8 million have so far been realised
from 55 loans with a total book value of NZ$182.6 million.  Of
this amount, NZ$13.4 million has been repaid to Fortress, the
balance having been paid to prior ranking security holders or
applied to the costs of running the receivership.

The receivers said further sales and settlements are pending,
but realization of the loan portfolio will be a complex and
time-consuming process.

                         Investigations

Dealing with their investigations along with the Securities
Commission, the receivers added:

"We are also aware of concerns raised by investors and other
parties in respect of certain activities of the company and
certain parties, prior to receivership.  As a result, thorough
investigations are taking place in respect of:

   * Specific transactions entered into by the company
     prior to our appointment.

   * The activities and conduct of the company, the
     officers of the company and third parties leading
     up to the appointment of receivers.

   * Any other matters that come to our attention.

"Due to the legal consequences and the nature of these
investigations, we are unable to provide details regarding these
issues or our findings to date."

As reported in the Troubled Company Reporter – Asia Pacific on
Dec. 4, 2007, Capital + Merchant Finance Ltd and Capital +
Merchant Investments Ltd have gone into receivership due to
breaches in respect of general security agreements issued by the
companies in favor of creditor Fortress Credit Corporation
(Australia) 11 Pty Ltd.

Fortress appointed Tim Downes and Richard Simpson of Grant
Thornton, chartered accountants, while trustee Perpetual Trust
have called in KordaMentha,  the New Zealand Press Association
related.

According to reports, Capital + Merchant owes about
NZ$190 million to 7,000 investors.  Fortress reportedly has a
prior charge over assets and was owed around NZ$70 million in
total.


CP CARPARKS: Commences Liquidation Proceedings
----------------------------------------------
The High Court at Auckland held a hearing on July 2, 2008, to
consider an application putting CP Carparks Limited into
liquidation.

The application was filed on May 22, 2008, by the Commissioner
of Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          17 Putney Way (PO Box 76198)
          Manukau
          Auckland 2241
          Telephone: (09) 985 7274
          Facsimile: (09) 985 9473

Sandra Joy North is the plaintiff's solicitor.


DECONTAMINATION: Court Appoints Liquidators
-------------------------------------------
The High Court at Auckland has appointed David Stuart Vance and
Barry Phillip Jordan, chartered accountants, of Decontamination
Services Limited.

Only creditors who were able to file their proofs of debt on
July 9, 2008, were included in the company's dividend
distribution.

Creditors and shareholders may direct their inquiries to:

          Logan Nicholls
          Deloitte
          Deloitte House
          Levels 11-16
          10 Brandon Street, Wellington
          Telephone: (04) 472 1677
          Facsimile: (04) 472 8023


DORCHESTER PACIFIC: Kevin Podmore Resigns as Director
-----------------------------------------------------
Dorchester Pacific Limited disclosed that Mr. Kevin Podmore has
resigned as a director of the company and its subsidiaries
effective July 18, 2008.

Dorchester said Mr. Podmore has decided to release himself from
a number of activities and responsibilities, including that as a
director of Dorchester, in order to focus on his role as
Managing Director of St. Laurence Limited.

As reported in the Troubled Company Reporter – Asia Pacific on
June 27, 2008,  citing Bloomberg report, Dorchester Pacific owns
25% of St. Laurence Ltd., which announced June 24 that it had
stopped lending and will ask for approval to pay back investors
by installment.

Chairman of Dorchester, Mr. Barry Graham, said "Kevin has been a
valued member of the board during a particularly challenging
time for the industry and for the company.  On behalf of the
board I would like to thank him for his contribution and wish
him well for the future."

                     About Dorchester Pacific

Headquartered in Auckland, New Zealand, Dorchester Pacific
Limited (NZE:DPC)-- http://www.dorchester.co.nz--is a financial   
solutions provider, offering complementary products and services
across finance, insurance, savings and investments.  The Finance
division provides investment opportunities through secured
debenture stock and subordinated unsecured notes, and financing
solutions for the property, business, equipment, motor vehicle
and personal finance sectors.  Its insurance and savings
division provides a range of savings, life insurance, reverse
annuity mortgages, home equity release loans and other financial
products and services.  The Investment Service division includes
equity investment advisers and sharebrokers, MoneyOnline and NZ
Investor Magazine, which provide professional, independent
investment advice, sharebroking and financial planning services.   
Dorchester Pacific holds a 25% shareholding in St. Laurence
Limited, the holding company for a property-based investment and
finance group of companies, which manages assets for over 16,000
investors.


ENTERPRISE PROPERTIES: Commences Liquidation Proceedings
--------------------------------------------------------
The High Court at Auckland held a hearing on July 2, 2008, to
consider an application putting Enterprise Properties Ltd. into
liquidation.

The application was filed on May 15, 2008, by  the Commissioner
of Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          17 Putney Way (PO Box 76198)
          Manukau, Auckland 2241
          Telephone: (09) 985 7274
          Facsimile: (09) 985 9473

Sandra Joy North is the plaintiff's solicitor.


J.D. RAI: Commences Liquidation Proceedings
--------------------------------------------
The High Court at Auckland held a hearing on July 2, 2008, to
consider an application putting J.D. Rai & Sons Limited into
liquidation.

The application was filed on May 15, 2008, by the Commissioner
of Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          17 Putney Way (PO Box 76198)
          Manukau
          Auckland 2241
          Telephone: (09) 985 7274
          Facsimile: (09) 985 9473

Sandra Joy North is the plaintiff's solicitor.


PANDEY HOTEL: Commences Liquidation Proceedings
-----------------------------------------------
The High Court at Auckland held a hearing on July 2, 2008, to
consider an application putting Pandey Hotel Corporation Limited
into liquidation.

The application was filed on May 22, 2008, by  the Commissioner
of Inland Revenue .

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          17 Putney Way (PO Box 76198)
          Manukau, Auckland 2241
          Telephone: (09) 985 7274
          Facsimile: (09) 985 9473

Sandra Joy North is the plaintiff's solicitor.


RONGOTAI HOLDINGS: Commences Liquidation Proceedings
----------------------------------------------------
The High Court at Auckland held a hearing on July 2, 2008, to
consider an application putting Pandey Hotel Corporation Limited
into liquidation.

The application was filed on May 15, 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.


TSL INVESTMENTS: Shareholders Appoint Liquidator
------------------------------------------------
In accordance with Section 241(2)(a) of the Companies Act 1993,
the shareholders of TSL Investments Ltd. has appointed Graeme
George McDonald, chartered accountant of Auckland, as
liquidator.

Only creditors who were able to file their proofs of debt on
July 15, 2008, were included in the company's dividend
distribution.

The Liquidator can be reached at :

          Graeme G. Mcdonald
          Apex Accounting Limited
          Unit 3A
          517 Mt Wellington Highway (PO Box 7719)
          Wellesley Street Post Office
          Auckland
          Telephone: (09) 573 5840
          Facsimile: (09) 573 5359


ZX CORPORATION: Commences Liquidation Proceedings
-------------------------------------------------
The High Court at Auckland held a hearing on June 27, 2008, to
consider an application putting ZX Corporation (2001) Limited
into liquidation.

The application was filed on April 1, 2008, by Transnet NZ
Limited .

The plaintiff's address for service is at:

          Stafford Klaassen
          1 Kimberley Road (PO Box 29185)
          Epsom, Auckland

Andrew Klaassen is the plaintiff's solicitor.


* NEW ZEALAND: Retail Electronic Card Spending Falls
----------------------------------------------------
After adjusting for seasonal effects, the retail Electronic Card
Transaction (ECT) series decreased 0.4 percent in June 2008
compared with May 2008, Statistics New Zealand said.  The trend
for the retail ECT series has flattened since January 2008.

The durables and consumables industries were the main
contributors to this decrease.  Decreases were also recorded in
June 2008 for the apparel and hospitality industries.  These
decreases were partially offset by an increase in the fuel
retailing industry.

After adjusting for seasonal effects, the core retail ECT series
(which excludes the motor vehicle-related industries) decreased
1.2 percent in June 2008 compared with May 2008.  The trend
appears to have declined in recent months, although more data
points are required in order to confirm the direction.  The
annual increase in the trend of 1.7% was the smallest increase
since the series began in October 2002.

The seasonally adjusted value of the total ECT series decreased
0.6% in June 2008 compared with May 2008.  The trend has
flattened since March 2008.  There were 80 million electronic
transactions in the total ECT series during June 2008.


* NEW ZEALAND: Short Term Departures Down 11% in June
-----------------------------------------------------
New Zealand residents departed on 186,000 short-term trips
overseas in June 2008, down 22,300 (11%) from June 2007,
Statistics New Zealand said.

This coincided with a later start to the winter school holidays,
beginning in July in 2008 compared with June in 2007.  There
were fewer departures to Australia (down 12,900 or 14 percent),
the United Kingdom (down 1,600 or 10 percent) and China (down
1,000 or 19 percent).  In the June 2008 year, there were 1.977
million resident departures, up 53,200 (3 percent) from the June
2007 year.

Short-term visitor arrivals numbered 142,400 in June 2008, down
2 percent from the 145,500 recorded in June 2007.  There were
more visitor arrivals from Australia (up 1,200 or 2 percent) but
fewer from the United States (down 1,800 or 12 percent), China
(down 1,600 or 24 percent) and Korea (down 1,300 or 18 percent).
The 2.480 million visitor arrivals recorded in the June 2008
year were up 22,000 (1 percent) from the previous year.

There was a net permanent and long-term (PLT) migration inflow
of 4,700 people in the year ended June 2008, slightly above the
recent low of 4,600 in the February 2008 year.  Net migration
inflows were recorded from the United Kingdom (7,300), India
(4,400), the Philippines (3,500), Fiji (2,600), South Africa
(2,400), China (2,200) and Germany (1,600) in the year ended
June 2008.  However, there was a net outflow of 31,900 to
Australia, the highest since the net outflow of 32,000 in the
year ended May 1989.

On a seasonally adjusted basis, PLT arrivals exceeded departures
by 500 for the month of June 2008, consistent with the net PLT
series monthly average of 500 between January 2007 and May 2008.



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

* PHILIPPINES: Posts US$145.6 Million Net Outflow in June
---------------------------------------------------------
Transactions in Bangko Sentral-registered foreign portfolio
investments in June posted a net outflow of US$145.6 million,
lower than the US$158.1 million net outflow in May.  Continued
risk aversion, record high oil prices, the acceleration of
inflation to a nine-year high of 9.6 percent in May kept
investors cautious during the period.

The Central Bank data show that on a gross basis, registered
foreign portfolio investments in June aggregated US$589.6
million, 79 percent of which went to shares listed in the  
Philippine  Stock  Exchange (PSE).     Investments in peso-
denominated government securities accounted for the 21 percent
balance.  On the other hand, capital repatriations totaled
US$735.2 million and came from withdrawals of investments in (a)
PSE-listed shares (38 percent);(b) government securities (19
percent); and (c) peso bank deposits  (43 percent).

                     January-June 2008 Flows

For the first semester of the year, transactions resulted in a
net outflow of US$417.4 million versus the nearly US$2.6 billion
net inflow for the comparable period in 2007.  This reflected
continuing risk aversion due to the expected global economic
slowdown and credit crisis as well as reduced corporate earnings
resulting from surging oil and other commodity prices.  By type
of instrument, investments in PSE-listed shares posted a net
inflow of nearly US$1.2 billion, while placements in government
securities and peso bank deposits showed net outflows of US$28.6
million and US$1.6 billion, respectively.
  
Gross investment inflows totaled over US$5.2 billion during the
period, only about 67 percent of the close to US$7.8 billion
total recorded for the same period in 2007.  Investments in PSE-
listed shares of more than US$3.4 billion (61 percent of which
went to telecommunications, property and holding firms)
accounted for 66 percent of the total and were 56 percent of the
almost US$6.2 billion level last year.  Investments in peso-
denominated government securities of nearly US$1.3 billion (24
percent) also fell by 15 percent from last year.  On the other
hand, placements in bank deposits rose by 285 percent to  
US$546.7 million to  account  for a 10 percent share of total
investment flows.  The United Kingdom, United States and
Singapore remained the top three investor countries and
collectively contributed 67 percent of investment funds during
the first semester.

Meanwhile, gross capital outflows expanded by 8 percent year-on-
year to US$5.7 billion and came from proceeds of withdrawals of
investments from listed shares (40 percent of total), government
securities (23 percent), and peso bank deposits (37 percent).


* PHILIPPINES: Monetary Board Up Policy Rates by 50 Basis Pts.
--------------------------------------------------------------
During its meeting held on July 17, 2008, the Monetary Board
decided to increase by 50 basis points the BSP's key policy
interest rates to 5.75 percent for the overnight borrowing or
reverse repurchase (RRP) facility and 7.75 percent for the
overnight lending or repurchase (RP) facility, Central Bank data
show.  The interest rates on term RRPs, RPs, and SDAs were also
raised accordingly.

Inflation control is the foremost priority of the BSP, in
accordance with its mandate.  The Monetary Board, in its
assessment of price conditions, noted that concurrent and
interrelated shocks to the economy—such as the persistent surge
in oil prices and spikes in commodity prices—have contributed to
elevated inflation readings.  Second-round effects have set in,
as evident in the rise in core inflation.

The BSP's baseline forecasts show the risk of inflation
exceeding the inflation targets for 2008 and 2009.  Price
pressures have increased even as they are projected to ease
starting late 2008.  For this reason, authorities believe that
more decisive monetary action is necessary.  Sustained high
inflation can unseat inflation expectations and potentially
create a repeating cycle of lingering inflation and wage
pressures that could prove costly to the economy.  By responding
promptly to inflation risks, the BSP intends to reduce the risks
to inflation expectations and the long-term cost to output
growth from prolonged high inflation.  Authorities believe that
the series of policy adjustments will help to steer inflation
towards its desired path for the medium term.

The Monetary Board is prepared to take all necessary actions to
address the threat of high inflation and promote price
stability.



=============
V I E T N A M
=============

VIETNAM BANK: Fitch Affirms 'D/E' Individual Rating
---------------------------------------------------
Fitch Ratings has affirmed Vietnam Bank for Agriculture and
Rural Development's Individual rating at 'D/E' and its Support
rating at '4'.

Agribank's Individual rating is based on its uncertain asset
quality, low capitalization, as well as its lack of
commerciality.  The rating also takes into account general
confidence in the bank, given it is Vietnam's largest bank and
is 100% government-owned.  Although the authorities' propensity
to support the bank is extremely high, given its state ownership
and franchise, Fitch expects a limited probability of external
support, due to uncertainties about the government's ability to
do so.

"We remain concerned about Agribank's loans quality,
particularly given its strong loans growth over recent years and
the now very challenging high inflation/high interest rate
environment in Vietnam threatening to herald an increase in loan
defaults and lowering collateral values," says Sabine Bauer,
Director in the agency's Financial Institutions team.

Agribank's Individual rating would benefit from a significant
strengthening of its capitalization and overall balance sheet
strength.  Fitch would welcome the introduction of a consistent
management information system throughout the Agribank group,
allowing more centralized and more commercial management.
Deterioration in asset quality would exert downward pressure on
Agribank's Individual rating.

Agribank is Vietnam's largest bank and had market shares of
around 23% of system loans and 21% of system assets at end-2007.
Established in 1988 as a state policy bank responsible for
directed lending to agricultural and rural customers, it is
still tasked with implementing government social targets.  Its
large network comprised over 2,000 branches, 802 ATMs and it
employed over 34,000 staff at end-2007.



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

* Fitch: Global CMBS Performance Was Strong in 1st Half of 2008
---------------------------------------------------------------
Fitch Ratings has said that global CMBS performance was strong
throughout 2007 and the first half of 2008.

"Global CMBS performance was positive in 2007, with 99.7% of
investment grade tranches remaining the same or being upgraded
to a new rating category," says Rodney Pelletier, Managing
Director in Fitch's European Structured Finance Group.  
"However, in the second half of 2008, negative ratings actions
are expected to increase and the overall ratings outlook can be
generally classified as changing from stable to
stable/negative."

"The more negative rating outlook for 2008 is primarily due to a
decline in global commercial property values, especially for UK-
based commercial real estate," says Charlotte Eady, Associate
Director in the agency's Performance Analytics team. "Whilst
occupational markets have remained resilient, continuing
liquidity issues could increase the likelihood and severity of a
downturn in the future."

"Upgrades outpaced downgrades 732 to 67, reflecting an upgrade-
to-downgrade ratio of 10.9 to one", says Stephanie Mah, Senior
Director in Fitch's Credit Markets Research Group.  "This
compares to a net negative global ABS and global RMBS upgrade-
to-downgrade ratio of 0.14 to one and 0.57 to one,
respectively."

The study includes detailed analysis and commentary on CMBS in
the US, European and Asia Pacific jurisdictions, and provides an
update on Fitch's outlook for each of these sectors.


* BOND PRICING: For the Week July 14 - July 18, 2008  
----------------------------------------------------

   Issuer                      Coupon  Maturity  Currency  Price
   ------                      ------  --------  --------  -----

   AUSTRALIA &
   NEW ZEALAND
   -----------
Ainsworth Game Technology Ltd  8.000%  12/31/09     AUD     0.65
A&R Whitcoulls Group           9.500%  12/15/10     NZD    10.95
Allco Hit Ltd                  9.000%  08/17/09     AUD    18.50
Antares Energy                10.000%  10/31/13     AUD     0.62
Avoca Resources                6.000%  05/14/12     AUD     6.99
Babcock & Brown Pty Ltd        9.010%  09/15/16     NZD    29.00
BBI Ntwrks NZ Limited          8.000%  11/30/12     NZD    20.00
Becton Property Group          9.500%  06/30/10     AUD     0.55
Bounty Industries Limited     10.000%  06/30/10     AUD     0.07
Capital Properties NZ Ltd      8.500%  04/15/09     NZD    13.50
Capital Properties NZ Ltd      8.000%  04/15/10     NZD    11.00
China Century                 12.000%  09/30/10     AUD     0.61
Cit Group Au Ltd               6.000%  03/03/11     AUD    74.85
Djerriwarrh Investments Ltd    6.500%  09/30/09     AUD     4.00
Fletcher Building Ltd          7.550%  03/15/11     NZD    10.00
Fletcher Building Ltd          7.550%  03/15/09     NZD    13.00
Heemskirk Consolidated
  Limited                      8.000%  04/29/11     AUD     3.00
Hy-Fi Securities Ltd           8.750%  08/15/08     NZD    10.25
Hy-Fi Securities Ltd           7.000%  08/15/08     NZD    15.00
Infrastructure & Utilities     8.500%  09/15/13     NZD     9.90
Jem Warehouse                  3.000%  08/01/14     AUD    71.61
LongReach Group Limited       10.000%  10/31/08     AUD     0.35
Nylex Ltd.                    10.000%  12/08/09     AUD     1.50
Macquarie Comm                 2.500%  08/23/13     AUD    72.54
Metal Storm Ltd               10.000%  09/01/09     AUD     0.10
Minerals Corp                 10.500%  09/30/08     AUD     0.77
Publ & Broad Fin               6.280%  05/06/11     AUD     9.67
Record Funds Man              11.000%  09/01/10     AUD    46.60
Speirs Group Ltd.             13.160%  06/30/49     NZD    55.00
South Canterbury              10.430%  12/15/12     NZD     0.98
St. Laurence Prop              9.250%  07/15/01     NZD    50.21
TrustPower Ltd                 8.300%  12/15/08     NZD    11.00
TrustPower Ltd                 8.500%  09/15/12     NZD    11.00
TrustPower Ltd                 8.500%  03/15/14     NZD     9.00

   CHINA
   -----
Baoshan Iron                   8.000%  06/20/14     CNY    74.75
China Govt Bond                4.860%  08/10/14    CNY      0.00

Cosco Shipping                 0.800%  01/28/14    CNY     72.32
GD Power Develop               1.000%  05/07/14    CNY     72.75
Gezhouba                       0.600%  06/26/14    CNY     68.74
Kangmei Pharm                  0.800%  05/08/14    CNY     70.28
Tsingtao Brewery               0.800%  04/02/14    CNY     71.36

   INDIA
   -----
Ghcl Ltd                       1.000%  03/21/11    USD     67.12
India Gov't                    5.640%  01/02/19    INR     72.61
India Gov't                    5.870%  08/28/22    INR     70.87
India Gov't                    5.970%  09/25/25    INR     68.33
India Gov't                    6.010%  03/25/28    INR     66.50
India Gov't                    6.130%  06/12/23    INR     67.40
India Gov't                    6.170%  06/12/23    INR     72.26
India Gov't                    6.300%  04/09/23    INR     73.47

   INDONESIA
   ---------
Indonesia Gov't                9.750%  05/15/37    IDR     73.61


   JAPAN
   -----

Nichielei Co Ltd               1.750%  03/31/14     JPY    60.06
NIS Group                      2.730%  92/26/10     JPY    74.49
Pacific Management             2.370%  03/16/10     JPY    64.89
Pacific Management             2.370%  03/15/12     JPY    64.87
Shinsei Bank Ltd.              5.625%  12/29/49     GBP    73.30
Zephyr Co Ltd                  2.940%  06/21/10     JPY    36.92

   KOREA
   -----
Korea Dev. Bank                7.310%  11/08/21     KRW    44.23
Korea Dev. Bank                7.350%  10/27/21     KRW    44.33
Korea Dev. Bank                7.400%  11/02/21     KRW    44.28
Korea Dev. Bank                7.450%  10/31/21     KRW    44.29
Korea Dev. Bank                8.450%  12/15/26     KRW    69.52

   MALAYSIA
   --------
Advance Synergy Berhad         2.000%  01/26/18     MYR     0.04
Aliran Ihsan Resources Bhd     5.000%  11/29/11     MYR     0.92
Berjaya Land Bhd               5.000%  12/30/09     MYR     3.90
Bumiputra-Commerce
   Holdings Bhd                2.500%  07/16/08     MYR     1.13
Eastern & Orient               8.000%  07/25/11     MYR     2.48
EG Industries Berhad           5.000%  06/16/10     MYR     0.25
Equine Capital                 3.000%  08/26/08     MYR     1.63
Greatpac Holdings              2.000%  12/11/08     MYR     0.12
Huat Lai Resources Bhd         5.000%  03/28/10     MYR     0.35
Insas Berhad                   8.000%  04/19/09     MYR     0.40
Kamdar Group Bhd               3.000%  11/09/09     MYR     0.22
Kretam Holdings Bhd            1.000%  08/10/10     MYR     1.17
Kumpulan Jetson Berhad         5.000%  11/27/12     MYR     0.51
LBS Bina Group Bhd             4.000%  12/31/08     MYR     0.30
LBS Bina Group Bhd             4.000%  12/31/08     MYR     0.70
Media Prima Bhd                2.000%  07/18/08     MYR     1.16
Mithril Bhd                    3.000%  04/05/12     MYR     0.50
Mithril Bhd                    8.000%  04/05/09     MYR     0.10
Nam Fatt Corp                  2.000%  06/24/11     MYR     0.35
Pelikan International          3.000%  04/08/10     MYR     1.31
Pilecon Engineering Bhd        5.000%  12/19/11     MYR     0.09
Plus Spv Bhd                   2.000%  06/27/17     MYR    68.75
Puncak Niaga Holdings Bhd      2.500%  11/18/16     MYR     0.79
Rhythm Consolidated Berhad     5.000%  12/17/08     MYR     0.11
Rubberex Corporation Berhad    4.000%  08/14/12     MYR     0.60
Silver Bird Group              1.000%  02/15/09     MYR     1.10
Tenaga Nasional Bhd            3.050%  05/10/09     MYR     0.90
Tradewinds Corp.               2.000%  02/08/12     MYR     0.50
Tradewinds Plantation Berhad   3.000%  02/28/16     MYR     1.61
TRC Synergy Berhad             5.000%  01/20/12     MYR     1.21
Wah Seong Corp.                3.000%  05/21/12     MYR     4.16
Wijaya Baru Global Berhad      7.000%  09/17/12     MYR     0.45
YTL Cement Bhd                 4.000%  11/10/15     MYR     1.31


   SRI LANKA
   ---------
Sri Lanka Govt                7.500%  08/15/18     LKR     54.67
Sri Lanka Govt                6.850%  04/15/12     LKR     69.10
Sri Lanka Govt                6.850%  10/15/12     LKR     68.45
Sri Lanka Govt                7.000%  10/15/11     LKR     61.32
Sri Lanka Govt                8.500%  07/15/13     LKR     73.69
Sri Lanka Govt                8.500%  07/15/13     LKR     72.52
Sri Lanka Govt                8.500%  07/15/18     LKR     66.92
Sri Lanka Govt                8.500%  02/15/13     LKR     66.36




                         *********

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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