TCRAP_Public/080801.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

            Friday, August 1, 2008, Vol. 11, No. 152

                            Headlines

A U S T R A L I A

139 YORK: Members' Final Meeting Set for August 4
ABC LEARNING: To Post AU$437 Mil. Pre-Tax Loss
ACN 086 311 051: Joint Meeting Slated for August 5
ACN 087 574 570: Liquidator to Give Wind-Up Report on August 5
ACN 106 309 111: Members and Creditors to Meet on August 5

ALCATEL-LUCENT SA: Reports EUR1.1 Billion Net Loss for Q2 2008
ALCATEL-LUCENT SA: Chief Executive & Chairman to Quit from Posts
BE COOL: Liquidator to Present Wind-Up Report on August 4
CENTRAL CHAMBERS: Liquidator to Give Wind-Up Report on August 4
CREATIVENGINE DESIGN: Members and Creditors to Meet on August 4

DORIC INVESTMENTS: Members' Final Meeting Slated for August 4
EBS INTERNATIONAL: Placed Under External Administration
F & R (NO 16): Liquidator to Give Wind-Up Report on August 4
FORREST HOLDINGS: Members' Final Meeting Set for August 5
MOBIUS NCM-04: S&P Downgrades Rating on Class D, E, F & M Notes

NATIONAL EPROCUREMENT: Members' Meeting Slated for August 5
PENRITH CITY: Members and Creditors to Meet on August 4


C H I N A

AGRICULTURAL BANK: Gets OK to Set Up Rural Banking Units
CHINA SOUTHERN: Stranded Passengers Cause Riot in Airport
* CHINA: Government Budgets CNY3.5BB for Troubled-Small Firms


I N D I A

CHRYSLER LLC: In Talks w/ Tata Motors on SUV Sale-Assembly
GENERAL MOTORS: To Continue Automotive Lease Incentives in Aug.
GENERAL MOTORS: Plans to Cut 5,000 Jobs in North America
MGM TRADELINK: CRISIL Rates Rs.105 Mil. Bank Facilities at "BB-"
TATA MOTORS: Net Profit Down 30.13% on Notional Valuation Loss

* INDIA: Two Largest Banks Hike Floating Loan Rates by 75 bps


I N D O N E S I A

BANK INTERNASIONAL: S&P Holds B+/B Counterparty Credit Ratings
GARUDA: Signs MOU w/ Korean Air to Enhance Marketing Cooperation
PT INDOSAT: Signs Marketing and Services Agreement with Mandala
* INDONESIA: Fuel Trade Balance to Remain in Deficit, Says Basri


J A P A N

FORD MOTORS: Raising Lease Prices on Trucks and SUVs on August 1
NOMURA HOLDINGS: Posts JPY76.6 Bil. Loss for 1Q Ended June 30
SKYLARK CO: Major Shareholders Urge President to Step Down
* JAPAN: Moody's has Stable Outlook for Automobile Manufacturers
* JAPAN: S&P Says Iwate Earthquake Has Little Effect on CMBS


M A L A Y S I A

ALLIANCE: Moody's Reviews Ba2 Bank Deposit Rating for Downgrade
LIQUA HEALTH: Gives More Info. on Impact of Writ Filed by Wynsum
NIKKO ELECTRONICS: Defaults MYR436,664 on Bankers' Acceptance
NIKKO ELECTRONICS: Cepco Demands MYR397,811.11 Payment for Goods
WONDERFUL WIRE: Bursa to Suspend Security Trading on Aug. 5


N E W  Z E A L A N D

BLUE CHIP: Investors to Get Legal Aid from Government
COMPUDIGM INTERNATIONAL: Proofs of Debt Due on August 4
CRAZY TOWN: Proofs of Debt Due on August 4
J & G COURIERS: Proofs of Debt Due on August 6
J & R PAINTERS: Proofs of Debt Due on August 8

J & R PORTABLE: Wind-Up Petition Hearing Set for August 6
KOHA SEAFOODS: Liquidators Set August 8 as Claims Bar Date
LANDCO LTD: Todd Capital Buys Remaining 50.5% Stake in Company
MONCUR ENGINEERING: Liquidators Set August 8 as Claims Bar Date
NAZIA SEA: Proofs of Debt Due on August 6

NICKSFOODS LTD: Liquidators Set August 4 as Claims Bar Date
RONGOTAI HOLDINGS: Proofs of Debt Due on August 5


P H I L I P P I N E S

STEEL CORP: Seeks Reconsideration of Rehab Case Termination


T A I W A N

* TAIWAN: Cabinet Welcomes China Investors Into Stock Market


X X X X X X X X

* Large Companies with Insolvent Balance Sheets


                         - - - - -

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

139 YORK: Members' Final Meeting Set for August 4
-------------------------------------------------
Jozef Ritchie Singer, 139 York Street Pty Ltd's state
liquidator, will meet with the company's members at 10:30 a.m.
on Aug. 4, 2008, to provide them with property disposal and
winding-up reports.  The meeting will be held at Level 2, 580
George Street, in Sydney.


ABC LEARNING: To Post AU$437 Mil. Pre-Tax Loss
----------------------------------------------
During the preparation of the 2008FY accounts ABC Learning
Centres Limited has identified a number of areas where a
reassessment of accounting treatments and carrying values is
required and further provisions, adjustments and write-downs of
AU$(213) million need to be taken.

The audited accounts are expected to include the following
changes:

   Expected 2008FY EBITDA per April 22,
   2008,announcement (post deduction
   of AU$280 million expected book loss
   in relation to deconsolidation of
   ABC's US operations)                     AU$105m – AU$114m
   ----------------------------------------------------------

   Profit on sale of UK Vouchers business
   included in April 22, 2008 guidance
   (delayed into 2009FY per ASX announcement
   of June 27, 2008)                                AU$(110)m

   Adjustments to items included in previous
   EBITDA guidance as at April 22, 2008             AU$    7m

   Changes in underlying operating performance      AU$ (20)m

   Additional non-recurring adjustments to
   EBITDA guidance                                  AU$ (68)m
   ----------------------------------------------------------
   Expected 2008FY EBITDA as at July 31, 2008       AU$ (86)m
   ----------------------------------------------------------

   Prior expected depreciation, amortisation
   and finance charges as at April 22, 2008         AU$(219)m

   Additional impairments, depreciation,
   amortisation and finance charges                 AU$(132)m
   ----------------------------------------------------------
   Expected Profit Before Tax as at
   July 31, 2008                                    AU$(437)m
   ----------------------------------------------------------

The NPAT figure has not been included as the tax effect
accounting has not been completed.

                      Asset Value Review

The review of asset values as well as the final calculation of
the precise book loss in relation to the deconsolidation of
ABC's US operations (AU$280 million was included in the
April 22, 2008, guidance update) is ongoing.


                      FY2007 Re-statement

At this stage based on the work completed to date, ABC expects
that a re-statement of 2007FY pre-tax earnings by AU$(19)
million will be made at the 2008 full year results announcement
based on accounting advice received.  In addition, a one-off,
pre-tax adjustment to prior year earnings before 2007FY of
AU$(34) million will be reflected in retained earnings at the
same time.

These restatements relate to:

   (i) the treatment of the restructuring charges
       associated with the unwinding of the Regional
       Management Companies structure together
       with associated costs, some of which has to be
       allocated to 2006FY and 2007FY due to the age
       of the debtors that have been written off;

  (ii) the partial reversal of income recorded
       following the receipt of cash from the sale
       of rights to provide labour to ABC's childcare
       centres in Aust/NZ to 123 Careers in 2006,
       which will be recorded over the 10 year term
       of the agreement rather than during 2006FY,
       2007FY and 2008FY; and

(iii) a change in ABC's accounting principles
       regarding the recognition and depreciation
       of toys and equipment.

                Adjustments to 2008FY Guidance

Of the adjustments outlined in the table above, a total amount
of AU$20 million relates to ABC's underlying operating
performance – AU$13 million of which is attributable to the
company's operations in Australia and New Zealand.  The
reduction in profitability is mainly attributable to lower than
expected improvements in the company's management of waiting
lists and occupancy levels as well as salary and rent expenses
which were higher than planned during 2H 2008FY.

                           Dividends

In the current circumstances, the Board of ABC has determined
not to declare a dividend for the second half of the 2008
financial year.  Payment of future dividends will depend upon
profitability, capital commitments and available cash and
franking credits at that time.  A fully franked interim dividend
of 8 cents per share was paid for the six months to December 31,
2007.

                       Capital Expenditure

Consistent with ABC's stated commitment to focus on organic
business improvement and a slower pace of acquisitions, the
company's capital expenditure programme for centre acquisitions
and refurbishments in Australia and New Zealand has been
reviewed and is now expected to be as follows:

   2009 110 new centres AU$165m* plus AU$45m of refurbishments

   2010 70 new centres AU$ 80m* plus AU$17m of refurbishments
   (*net of deposits paid)

The above capital expenditure for Aust/NZ centre acquisitions
and refurbishments represents a significant reduction from
2008FY which was approximately AU$400 million.

                       2009FY Performance

The first three weeks of the 2009 fiscal year have been
encouraging and ABC confirms that its centres in Aust/NZ have
met their revenue and wages targets.  An increase in fees in
Australia and New Zealand has been implemented following a
comprehensive fee review and the introduction of a standardised
fee structure.

                       Banking Covenants

ABC confirms that post all of these adjustments, write-downs and
impairment charges it remains compliant with all banking
covenants.

                        About ABC Learning

A.B.C. Learning Centres Limited (ASX: ABS) --
http://www.childcare.com.au/-- provides childcare services and
education.  The company operates in Australia, New Zealand, the
United States and the United Kingdom.  The company's
subsidiaries include A.B.C. Developmental Learning Centres Pty
Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier
Early Learning Centres Pty Ltd, A.B.C.  Developmental Learning
Centres (NZ) Ltd., A.B.C. New Ideas Pty. Ltd., A.B.C. Land
Holdings (NZ) Limited and Child Care Centres Australia Ltd.

On September 25, 2006, the company acquired Hutchison Child Care
Services Ltd.  On September 7, 2006, it acquired The Children's
Courtyard LLP.  On December 18, 2006, it acquired Busy Bees
Group Ltd. On January 26, 2007, it acquired La Petite Holdings
Inc.  On February 2, 2007, it acquired Forward Steps Holdings
Ltd.  On March 23, 2007, it acquired Children's Gardens LLP. In
September 2007, the company purchased the Nursery division
(Leapfrog Nurseries) from Nord Anglia Education PLC.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific, the
company's Sydney trading on Feb. 26, 2008, plunged 43% after a
slump in earnings raised concerns it may struggle to repay debt.
The drop to AU$2.14 triggered margin calls on stakes held by
some directors.  Consequently, stock trading was halted as the
company entered talks on "indications of interest" for parts of
its business.  More than 96% of the remaining 21.9 million ABC
Learning shares owned by directors, equivalent to 4.6% of stock
outstanding, are held in margin lending arrangements that may
result in forced sales.


ACN 086 311 051: Joint Meeting Slated for August 5
--------------------------------------------------
A.C.N. 086 311 051 Pty Ltd will hold a final meeting for its
members and creditors at 11:00 p.m. on Aug. 5, 2008.  During the
meeting, the company's liquidator, Bryan P. Collis at O'Brien
Palmer, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Bryan P. Collis
          O'Brien Palmer
          Level 4, 23-25 Hunter Street
          Sydney NSW 2000
          Telephone (02) 9232 3322
          Facsimile (02) 9232 3388


ACN 087 574 570: Liquidator to Give Wind-Up Report on August 5
--------------------------------------------------------------
A.C.N. 087 574 570 Pty Ltd will hold a final meeting for its
members and creditors at 11:00 p.m. on Aug. 5, 2008.  During the
meeting, the company's liquidator, Bryan P. Collis at O'Brien
Palmer, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Bryan P. Collis
          O'Brien Palmer
          Level 4, 23-25 Hunter Street
          Sydney NSW 2000
          Telephone (02) 9232 3322
          Facsimile (02) 9232 3388


ACN 106 309 111: Members and Creditors to Meet on August 5
----------------------------------------------------------
ACN 106 309 111 Pty Ltd will hold a final meeting for its
members and creditors at 11:00 p.m. on Aug. 5, 2008.  During the
meeting, the company's liquidator, Bryan P. Collis at O'Brien
Palmer, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Bryan P. Collis
          O'Brien Palmer
          Level 4, 23-25 Hunter Street
          Sydney NSW 2000
          Telephone (02) 9232 3322
          Facsimile (02) 9232 3388


ALCATEL-LUCENT SA: Reports EUR1.1 Billion Net Loss for Q2 2008
--------------------------------------------------------------
Alcatel-Lucent S.A. posted EUR1.102 billion in net losses on
EUR4.1 billion in net revenues for the second quarter ended
June 30, 2008.

During the second quarter, the CDMA activity declined at a
higher pace than the company had planned.  This was due, to a
large extent, to a strong reduction in the capital expenditure
of a key customer in North America.  Although there are new
opportunities in other geographic areas, the uncertainty
regarding spending in North America has led the company to take
more cautious mid-term assumptions in this activity.

This resulted in a goodwill impairment charge of EUR810 million,
which is reflected in the reported net loss of EUR1.102 billion
or EUR0.49 per diluted share for the second quarter.

"Looking beyond the non-cash impairment charge, operationally we
made good progress against our turnaround plan in the second
quarter, delivering top-line and an adjusted operating margin in
line with our expectations," Patricia Russo, CEO, commented.

"First, revenue performance came in at the higher end of our
guidance, posting sequential growth of slightly more than 6%. We
were able to fully absorb the material decline in CDMA,
achieving year-over-year growth of close to 2% at constant
Euro/US$ exchange rate, thanks to the strong growth of our
Enterprise and Services operating segments and good performance
in most of our other carrier activities.  Of particular note,
GSM/W-CDMA/WiMAX continued to enjoy strong, double-digit growth
year-over-year.  In addition, our activities in convergence grew
for the first time since completing the merger and we saw slight
growth in our wireline activities.

"Second, our adjusted gross margin is in the mid thirties, which
is in line with our overall guidance for the year.  Factoring
out the impact of one-time gains, our gross margin increased by
150 basis points year-over-year, reflecting a more stringent
pricing discipline and the impact of our product costs reduction
programs.  Sequentially, it declined 90 basis points, in spite
of higher volumes, reflecting to a large extent a negative shift
in the product and geographic mix.

"Finally, we continue to make good progress in reducing our
fixed costs.  Our operating expenses declined 8.6% year-over-
year and 1.7% sequentially.  As a result, we achieved higher
adjusted operating margins in all three business segments, with
break-even performance in the carrier segment and high single-
digit operating margins in the Enterprise and Services
segments."

                       Market and Outlook

"In our outlook for the second quarter and full year, we were
prudent in our view of the telecommunications equipment market
due to the macroeconomic environment and the resulting potential
for lower capital spending in the U.S.," Ms. Russo continued.
"Over the past three months, the global macroeconomic
environment has further deteriorated and the economic slowdown
has begun to spread to Europe.  Although not evident yet, we
believe this could impact somewhat the capital expenditure
decisions of certain European customers, especially in fixed
access.

"At the same time, we are seeing a stronger-than-expected demand
for GSM/W-CDMA mobile access in emerging markets, especially in
Asia.  In addition, we feel positive about our prospects in
China, both in 2G and 3G (including CDMA EV-DO) for the fourth
quarter and next year.  Finally, we now see a stronger than
initially expected demand in Services, especially in network
operations and network integration.  Against this mixed
backdrop, we continue to anticipate that the global
telecommunications equipment and related services market should
be flat in 2008 at constant currency."

"With approximately half of the company’s revenue in U.S. dollar
or dollar-linked currencies, Alcatel-Lucent reiterates its
previous guidance for the full year 2008 revenue.  Expressed in
current Euro rate and due to the reduction in the value of the
dollar since 2007, revenue should be down in the low to mid
single-digit range.  The company continues to expect an adjusted
gross margin in the mid thirties and an adjusted operating
margin in the low to mid single-digit range in percentage of
revenue in full year 2008.  For the third quarter 2008, Alcatel-
Lucent expects its revenue to be flat to slightly down
sequentially, followed by a strong ramp in the fourth quarter."

                        Net Debt Position

The net debt position was EUR415 million as of June 30, 2008,
compared with EUR30 million as of March 31, 2008.  The increase
in net debt of EUR385 million primarily reflects an increase in
non operating working capital requirements mainly related to the
bonus payments which were concentrated in the second quarter,
cash outflow related to restructuring plans (EUR166 million),
our cash contribution to pensions (EUR112 million) and a
slightly higher-than-anticipated cash income tax payment
(EUR48 million).

Based on the outlook for revenue and adjusted operating margin,
Alcatel-Lucent expects its year-end 2008 net debt to be
materially reduced compared to the level at the end of June
2008.

As of June 30, 2008, Alcatel-Lucent SA had EUR30.94 billion in
total assets, EUR20.98 billion in total liabilities and
EUR9.96 billion in total shareholders' liability.

                      About Alcatel-Lucent

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

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

                           *     *     *

Alcatel-Lucent continues to carry Ba3 Corporate Family and
Senior Debt ratings, Not-Prime for short term debt, as well as
B2 ratings for subordinated debt with negative outlook from
Moody's Investors Service.  The ratings were were affirmed in
April 2008.

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


ALCATEL-LUCENT SA: Chief Executive & Chairman to Quit from Posts
----------------------------------------------------------------
Alcatel-Lucent SA disclosed changes to its leadership and Board
of Directors.  The company also announced its quarterly results
and demonstrated improvements to its operational results for the
third straight quarter.  The Company reported that it is making
steady progress on the strategy the company laid out last fall.

To pave the way for a fully aligned governance and management
model going forward, the company announced these changes to its
management team and Board of Directors:

    * Non-Executive Chairman Serge Tchuruk has decided to step
      down on October 1, 2008;

    * CEO Pat Russo has decided to step down no later than the
      end of the year, and at the Board's request will continue
      to run the company until a new CEO is in place to effect a
      smooth transition and maintain the continuity of the
      company's business;

    * The Board will commence a search for a new non-executive
      Chairman and CEO immediately;

    * The Board is also initiating a process to change the
      composition of the Board to a smaller group that will
      include new members.

"The merger phase is now behind us.  I am proud that Alcatel-
Lucent has become a world leader in a technology which is
transforming our society.  It is now time that the company
acquires a personality of its own, independent from its two
predecessors.  The Board must also evolve and the Chairman
should give the first example, which I have decided to do," said
Mr. Tchuruk.

"I am very pleased with the progress we are making especially in
light of a difficult market environment," said Ms. Russo.  "Our
strategy is taking hold and our results are demonstrating good
operational progress.  That said, I believe it is the right time
for me to step down.  The company will benefit from new
leadership aligned with a newly composed Board to bring a fresh
and independent perspective that will take Alcatel-Lucent to its
next level of growth and development in a rapidly changing
global market."

"I have every desire to ensure a smooth transition of leadership
within the company and I have informed the Board of my
determination to work closely with them until the end of the
year or sooner if a successor is named, and we are in agreement
on this approach.  I have great confidence in Alcatel-Lucent and
believe this to be a company with tremendous potential," added
Ms. Russo.

Now that the company has moved beyond the transitional phase of
the merger, the Board has determined to restructure itself in a
way consistent with the company's needs going forward.  As part
of this process the Board will reduce the size of its membership
over time while adding several new members with strong industry
expertise.  To initiate this process, Henry Schacht announced
that he will resign from the Board immediately believing that,
being a former CEO, he should not remain beyond the transitional
stage of the merger.  Mr. Schacht was the CEO of Lucent
Technologies prior to Ms. Russo becoming CEO in January 2002.

                      About Alcatel-Lucent

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

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

                           *     *     *

Alcatel-Lucent continues to carry Ba3 corporate family and
senior debt ratings, not-prime for short term debt, as well as
b2 ratings for subordinated debt with negative outlook from
Moody's Investors Service.  The ratings were were affirmed in
April 2008.

Alcatel-Lucent's Long-Term corporate credit rating and senior
unsecured debt still carry Standard & Poor's Ratings Services'
BB rating.  Its short-term corporate credit rating stands at B.


BE COOL: Liquidator to Present Wind-Up Report on August 4
---------------------------------------------------------
Be Cool Refrigeration Pty Ltd will hold a final meeting for its
members and creditors at 12:30 p.m. on Aug. 4, 2008.  During the
meeting, the company's liquidator, Steven Nicols at Nicols +
Brien, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

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


CENTRAL CHAMBERS: Liquidator to Give Wind-Up Report on August 4
---------------------------------------------------------------
Timothy James Brett, Central Chambers (Gunnedah) Pty Ltd's state
liquidator, will meet with the company's members at 10:00 a.m.
on Aug. 4, 2008, to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

          Timothy James Brett
          Paul & Brett Services Proprietary
          286 Conadilly Street
          Gunnedah NSW 2380
          Australia


CREATIVENGINE DESIGN: Members and Creditors to Meet on August 4
---------------------------------------------------------------
Creativengine Design and Digital Media Pty Ltd will hold a final
meeting for its members and creditors at 11:00 a.m. on Aug. 4,
2008.  During the meeting, the company's liquidator, Steven
Nicols at Nicols + Brien, will provide the attendees with
property disposal and winding-up reports.

The company's liquidator can be reached at:

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


DORIC INVESTMENTS: Members' Final Meeting Slated for August 4
-------------------------------------------------------------
J. A. Shaw, Doric Investments Pty Ltd's state liquidator, will
meet with the company's members at 10:00 a.m. on Aug. 4, 2008,
to provide them with property disposal and winding-up reports.

The liquidator can be reached at:

          J. A. Shaw
          Ferrier Hodgson
          Chartered Accountants
          PO Box 840
          Newcastle NSW 2300
          Australia


EBS INTERNATIONAL: Placed Under External Administration
-------------------------------------------------------
EBS International Pty Ltd was wound up Friday, July 25, and is
under external administration, the Herald Sydney Morning Herald
reports citing Australian Securities and Investments Commission
(ASIC).

According to the Herald, hundreds of eBay users around the
country who bought exercise equipment, pocket bikes, quad bikes,
electric guitars, furniture and other household items from EBS
International before it went bust now have little chance of
receiving their items or obtaining a refund from the seller.

However, the report relates, PayPal managing director Andrew
Pipolo said those who paid for items using PayPal, which is
owned by eBay, will be entitled to refunds through a new fund
set up specifically to deal with this incident.

Mr. Pipolo also said PayPal users who were customers of EBS
International and had not received a refund from the company
would be contacted "in the next few days".

Meanwhile, the report says Queensland Police confirmed its fraud
department was investigating 12 complaints made against the
company but there was no evidence of criminality so far.

The liquidator, Terry van de Velde, of SV Partners, said his
examination of the company was in its early stages so he could
not comment on eBay users' suspicions that the owners were
fraudsters, the Herald relates.

Mr. de Velde added he would be sending letters to creditors
advising them of the situation.

In the past three months, the report notes, EBS International
Pty Ltd, aka ebusiness-supplies, sold over AU$1 million worth of
goods.  It is the seventh biggest Australian eBay user in terms
of the number of items sold.


F & R (NO 16): Liquidator to Give Wind-Up Report on August 4
------------------------------------------------------------
F & R (No 16) Pty Ltd will hold a final meeting for its members
and creditors at 11:30 a.m. on Aug. 4, 2008.  During the
meeting, the company's liquidator, Steven Nicols at Nicols +
Brien, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

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


FORREST HOLDINGS: Members' Final Meeting Set for August 5
---------------------------------------------------------
Martin David Lewis, Forrest Holdings Pty Ltd's state liquidator,
will meet with the company's members at 10:0 a.m. on Aug. 5,
2008, to provide them with property disposal and winding-up
reports.

The liquidator can be reached at:

          Martin David Lewis
          Ferrier Hodgson
          Level 6, 81 Flinders Street
          Adelaide SA 5000
          Australia


MOBIUS NCM-04: S&P Downgrades Rating on Class D, E, F & M Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered the ratings on
the Class D, Class M, Class E, and Class F notes issued by
Mobius NCM-04 and affirmed the ratings on all other classes
of Mobius NCM-04 rated notes.  The Class F notes remain on
Credit Watch with negative implications.

These rating actions are a result of continued deterioration in
the performance of the underlying portfolio.  There has been a
high level of disputed insurance claims for defaulted loans,
which have a lenders mortgage insurance policy with The Mortgage
Insurance Company Pty Ltd.  There has also been a significant
charge-off to unrated class G notes.  These factors weaken the
credit support available to the rated notes, in particular the
class D, E, and F notes.

The level of losses from loans that are in the advanced stages
of arrears has increased markedly in recent months; this
resulted in a 49% charge-off to the unrated note since April
2008.  The proportion of loans in the total portfolio that are
more than 90 days in arrears is still above 20%.  The prospect
of curing these loans is remote and this increases the
likelihood of further losses.  In addition, there is an
unprecedented level of insurance claims that are not likely to
be fully paid on loans that are in arrears.  This will further
erode the credit support available in other forms such as excess
spread and subordination.

The Class F notes remain on CreditWatch with negative
implications due to their market vulnerabilities.  This class of
notes is highly sensitive to falls in property prices; when
affected mortgages foreclose, charge-offs to the class F notes
may result.  Furthermore, charge-off triggers within the
transaction limit the use of liquidity and principal draws.
This means that any future charge-off to the class F notes will
put further pressure on the timely payment of interest.

Those notes that are ranked above the class D notes have
benefited from a build-up in subordination under the sequential
pay structure.  The level of credit support available is
sufficient to maintain the current rating on these notes after
factoring in the expected losses for this trust at this time.

The rating on the Class M notes has been lowered as this note
ranks below the Class D notes in terms of payment priority.

Ratings Lowered:

Transaction     Class   Rating to      Rating from
----------------------------------------------------
Mobius NCM-04    D       BB            BBB/Watch Neg
Mobius NCM-04    M       BB            BBB/Watch Neg
Mobius NCM-04    E       CCC           BB/Watch Neg
Mobius NCM-04    F       CC/Watch Neg  B/Watch Neg

Ratings Affirmed:

Transaction     Class   Rating
------------------------------
Mobius NCM-04    A1      AAA
Mobius NCM-04    A2      AAA
Mobius NCM-04    Z       AAA
Mobius NCM-04    B       AA
Mobius NCM-04    C       A


NATIONAL EPROCUREMENT: Members' Meeting Slated for August 5
-----------------------------------------------------------
George Georges, National eProcurement Pty Ltd's state
liquidator, will meet with the company's members at 10:30 a.m.
on Aug. 5, 2008, to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

          George Georges
          Ferrier Hodgson
          Level 29, 600 Bourke Street
          Melbourne VIC 3000
          Telephone: (03) 9600 4922
          Facsimile: (03) 9642 5887


PENRITH CITY: Members and Creditors to Meet on August 4
-------------------------------------------------------
Penrith City Used Cars Pty Ltd will hold a final meeting for its
members and creditors at 12:00 p.m. on Aug. 4, 2008.  During the
meeting, the company's liquidator, Steven Nicols at Nicols +
Brien, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

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



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

AGRICULTURAL BANK: Gets OK to Set Up Rural Banking Units
---------------------------------------------------------
The Agricultural Bank of China has received approval from
industry regulators to set up township banking units in the
northern Inner Mongolia autonomous region and the central Hubei
province, Xinhua News reports.

According to the report, the lender also planned to acquire
stakes in rural financial leasing firms and rural insurance
companies.

In the next three years, the report relates, the bank aimed to
to get 80,000 to 100,000 small- and medium-sized corporate
clients and expand its service network coverage to half the
nation's 250 million rural households.

"The move to set up rural financial institutions is part of our
efforts to expand service coverage in rural areas," Xinhua cited
Zhang Yun, the bank's vice president, as saying.

               About Agricultural Bank of China

Agricultural Bank of China -- http://www.abchina.com/-- is the
mainland's fourth largest bank.  It has lagged behind other
major Chinese commercial banks, which have received government
injections of new capital and been allowed to link up with
foreign partners in preparation for raising money on foreign
stock exchanges.

                        *     *     *

In May 2008, a Xinhua News report said Agricultural Bank of
China's non-performing loan (NPL) ratio increased 0.07
percentage points to 23.5% last year as it assessed bad loans
more strictly to prepare for a share-holding reform.

The bank, the report relates, reported its NPLs at CNY817.97
billion (US$116.9 billion) as of the end of 2007.

The Bank carries an 'E' Individual rating from Fitch Ratings.


CHINA SOUTHERN: Stranded Passengers Cause Riot in Airport
---------------------------------------------------------
A number of China Southern Airlines Co. Limited's passengers
caused a riot at an airport in Kunming after they were stranded
for 17 hours, allegedly without food and accommodations, various
reports say.

The passengers, Guo Shipeng of Reuters reports, smashed
computers and desks and clashed with the police.  It was only
after 3 hours that peace was restored.

According to Agence France-Presse, citing Xinhua News, more than
170 passengers were holed up at an airport in Kunming, after
three China Southern Airlines flights were delayed late on
July 28, due to bad weather.

Some passengers were told to go to a hotel by themselves but
ended up being rejected once they arrived, AFP relates.  They
end up spending the night on an aircraft or in the departure
hall without food, AFP says.

AFP reports that China Southern denied the accusation that it
did not provide food or accommodation, adding some furious
passengers were left at the airport because they refused the
company's hotel arrangements.

"Staff from the airport and China Southern's Kunming branch were
all along on the spot, communicating with the passengers and
arranging rescheduled flights, food and accommodation for them
after the original flights were delayed," the airline said in a
statement emailed to AFP.

Meanwhile, Shanghai Daily relates, the passengers demanded an
apology and the exact times for the rescheduled flights.

According to the Daily, more than 80 passengers accepted China
Southern's CNY100 (US$14.7) compensation and chose to fly on
other airlines.  However, more than 40 passengers were refusing
to board their flight until they obtained a satisfactory
response from the airlines, the same report says.

The passengers, the Daily notes, had asked the airlines to pay
between CNY600 and CNY1,000 each and publish a formal apology,
and then ask the airline to apologize in the major media in
Changsha and Kunming and pay each of the passengers CNY1.

Ai Qingping, a duty manager at China Southern's Kunming outlet,
told the Daily that the delay was caused by runway repairs at
Changsha Airport and the airline was entitled to refuse
passengers' demands for compensation according to law.

All the stranded passengers had left Kunming by July 29,
afternoon on two separate rescheduled flights after reaching an
undisclosed agreement with the carrier, AFP adds.

                      About China Southern

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

                          *     *     *

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


* CHINA: Government Budgets CNY3.5BB for Troubled-Small Firms
-------------------------------------------------------------
China's Ministry of Finance (MOF) will use 25%, or CNY3.5
billion (US513 million), of this year's central budget to
support smaller companies that are having difficulties amid
economic restructuring, Xinhua News reports.

Small and mid-sized companies, the report relates, have become
an important force in both economic growth and job creation in
China.

The MOF told the news agency that it might improve fiscal and
tax policies that affect small and mid-sized companies, to
support their technical innovation and help them upgrade their
product mix.

According to the report, an innovation fund for high-tech
smaller companies would get a central allocation of CNY1.4
billion, up 27.3% from last year.  The proportion of money used
to improve public technical services and the start-up climate
for smaller high-tech firms would increase from 20.9% last year
to 23.6%, the report says.

Moreover, the report adds, the ministry plans to established
more public technical service agencies to offers technical
support to those companies, and a credit guarantee system would
be established to improve their fund-raising environment.



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

CHRYSLER LLC: In Talks w/ Tata Motors on SUV Sale-Assembly
----------------------------------------------------------
Chrysler LLC is mulling potential joint ventures with foreign
counterparts to cut costs and to secure finances, The Wall
Street Journal reports, citing people familiar with the matter.

Reuters relates that Chrysler is discussing plans with Tata
Motors Ltd. relating to the sale and assembly of Chryslers' Jeep
Wrangler SUV in India and other Asian markets through the Indian
automaker.

A Tata representative declined to comment about the deal,
however, the Indian automaker said in January that "exploratory
discussions" had begun with Chrysler over sales for a battery-
powered version of its Ace mini-truck, Reuters says.

Reuters relates that Chrysler is also negotiating production and
distribution deals with Fiat SpA.

In April 2008, the Troubled Company Reporter disclosed that
Chrysler and Nissan Motor Co., Ltd., entered into two new
agreements for the supply of products between both companies.
Nissan agreed, in January, to supply Chrysler with a new car
based on the Nissan Versa sedan for limited distribution in
South America on an Original Equipment Manufacture basis in
2009.

According to WSJ, owner Cerberus Capital Management LP is
seeking ways to push Chrysler's turnaround plan, including joint
ventures with foreign auto makers.  Chrysler is also restricting
its costs on development projects and reconsidering increasing
production plans for the fuel-efficient Phoenix auto engine.

As disclosed in the TCR on July 29, 2008, Chrysler's financial
arm, Chrysler Financial, will cease offering vehicle lease
alternatives in the U.S. to focus more on financing vehicle
purchases.  In addition, Chrysler is planning to reduce 1,000
salaried jobs by September 30 in an effort to cut costs amid a
deep slump in U.S. auto sales.

                        About Chrysler LLC

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

                          *     *     *

As reported in the Troubled Company Reporter June 24, 2008,
Moody's Investors Service affirmed the B3 Corporate Family
Rating and Probability of Default Rating of Chrysler LLC, but
changed the outlook to negative from stable.  The change in
outlook reflects the increasingly challenging environment faced
by Chrysler as the outlook for US vehicle demand falls, and as
high fuel costs drive US consumers away from light trucks and
SUVs, and toward more fuel efficient vehicles.

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

As reported in the Troubled Company Reporter on May 9, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Chrysler
LLC to 'B' from 'B+', with a Negative Rating Outlook.  Fitch has
also downgraded the senior secured bank facilities, including
senior secured first-lien bank loan to 'BB/RR1' from 'BB+/RR1';
and senior secured second-lien bank loan to 'CCC+/RR6' from
'BB+/RR1'.  The recovery rating on the second lien was also
downgraded from 'BB+/RR1' to 'CCC+/RR6' based on lower asset
value assumptions and associated recoveries in the event of a
stress scenario.


GENERAL MOTORS: To Continue Automotive Lease Incentives in Aug.
---------------------------------------------------------------
General Motor Corp.'s decision to continue offering car leasing
incentives in August amid rising costs spurred the drop of its
share trading price, on Wednesday, by 60 cents, or 5%, to
US$11.30, The Associated Press reports.

GM's move followed an announcement by its financing subsidiary,
GMAC LLC, on Tuesday that it would cease lease deal extensions
to Canadian consumers with lowest credit ratings, including
buyers who fall in the lowest two of six credit-rating
categories, The Wall Street Journal quotes George Fowler,
general manager of Superior Buick Pontiac GMC in Dearborn,
Michigan.

AP related that GM's shares fell to US$11.28 early Wednesday
before the US$11.30 closing price.  In the past 52 weeks, GM's
shares have traded between US$8.81 and US$43.20.

Big car makers are restricting their vehicle-leasing terms to
curb rising costs related to low used-vehicle values, WSJ's John
Stoll reports.  As disclosed in the Troubled Company Reporter on
July 29, 2008, Chrysler LLC's financial arm, Chrysler Financial,
will cease offering vehicle lease alternatives in the U.S. to
focus more on financing vehicle purchases.  The unit will stop
offering leases starting August 1.  Chrysler's decision stems
from trouble taunting its unit's lease business, particularly in
the borrowing and selling end.

WSJ reports that a dealer observed that lease prices will be so
high that consumers won't be willing to agree to terms.

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

General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units.  GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela.  GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.

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

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

                          *     *     *

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

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

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


GENERAL MOTORS: Plans to Cut 5,000 Jobs in North America
--------------------------------------------------------
General Motors Corp. intends to pare 5,000 jobs or 15% of its
salaried workforce in the U.S. and Canada by the end of 2008, to
save annual costs by US$10 billion, Bloomberg News reports,
citing people familiar with the matter.

As disclosed in the Troubled Company Reporter on July 16, 2008,
GM expects to generate approximately US$10 billion of cumulative
cash improvements by the end of 2009, versus original plans,
through a number of internal operating changes and other
actions.

An estimates reduction of US$1.5 billion in 2009 is expected by
GM's plans to further reduce salaried headcount in the U.S. and
Canada in the 2008 calendar year, which will be achieved through
normal attrition, early retirements, mutual separation
programsand other separation tools.  In addition, health care
coverage for U.S. salaried retirees over 65 will be eliminated,
effective Jan. 1,
2009.

Affected retirees and surviving spouses will receive a pension
increase from GM's over funded U.S. salaried plan to help offset
costs of Medicare and supplemental coverage.  And there will be
no new base compensation increases for U.S. and Canadian
salaried employees for the remainder of 2008 and 2009.

Beyond these moves, which also impact GM executives, additional
actions are being taken.  There will be no annual discretionary
cash bonuses for the company's executive group in 2008.  With
the elimination of the annual cash bonus, combined with GM's
long-term incentives which are driven by GM stock price
performance to assure alignment with its stockholders, GM's
executive group will have a significant reduction in their cash
compensation opportunity for 2008.  For the company's top
executive officers, it represents a reduction in their cash
compensation opportunity of 75% to 84%.

These benefit changes, salaried headcount reductions and other
related savings will result in an estimated reduction in cash
costs of more than 20%, or US$1.5 billion in 2009.

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

General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units.  GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela.  GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.

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

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

                          *     *     *

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

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

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


MGM TRADELINK: CRISIL Rates Rs.105 Mil. Bank Facilities at "BB-"
----------------------------------------------------------------
CRISIL has assigned its rating of 'BB-/Stable/P4' to the various
bank facilities of MGM Tradelink Pvt Ltd (MGM).

  Rs.15.0 Million Cash Credit   BB-/Stable(Assigned)
  Rs.10.0 Million Overdraft    BB-/Stable(Assigned)
  Rs.80.0 Million Proposed
     Long Term Bank facility    BB-/Stable(Assigned)
  Rs.95.0 Million Export
     Packing Credit          P4(Assigned)
  Rs.40.0 Million Letter
     of Credit                P4(Assigned)
  Rs.20.0 Million Proposed
     Short Term Bank facility   P4(Assigned)

The rating reflects high price and inventory risk due to
fluctuations in commodity prices, MGM's weak financial risk
profile due to high debt levels and limited track record of the
company.  These weaknesses are partly offset by company's
proximity to sea port.

Outlook: Stable

CRISIL expects MGM's rating to be constrained by its high
exposure to commodity price fluctuations.  The outlook may be
revised to 'Positive' in case of improvement in company's
networth and sustenance of healthy profitability. Conversely,
the outlook may be revised to 'Negative' in the event of more
than expected debt undertaken to fund working capital
requirements.

                           About MGM

Incorporated in 2003 by Mrs. Susan Perumal, and supported by her
two sons, Mr. Solly Perumal and Mr. Saju Perumal, MGM exports
agricultural commodities, mainly soya bean meal and rape seeds
meal, and imports iron scrap.  MGM sources soya bean meal and
rapeseed meal extractions from suppliers in Madhya Pradesh, and
these are exported mainly to the Middle East.  Iron scrap is
imported mainly from Dubai, and sold to steel companies in the
Kutch region.

For 2007-08 (refers to financial year, April 1 to March 31), MGM
reported a profit after tax (PAT) of Rs.12 million on net sales
of Rs.485 million, as against a PAT of Rs. 6 million on net
sales of Rs.416 million for 2006-07.


TATA MOTORS: Net Profit Down 30.13% on Notional Valuation Loss
--------------------------------------------------------------
Tata Motors Limited's net profit for the quarter ended June 30,
2008, declined 30.13% to Rs. 3,261.10 million from Rs. 4,667.60
million in the same period last year.

Meanwhile, total revenues increased 14.4% to Rs. 69,284.40
million in the current quarter from Rs. 60,568.20 million in the
year ago period.

Tata Motors said profits for the quarter include a notional
valuation loss of Rs.199.88 crores (compared to a gain of
Rs.205.89 crores in the corresponding quarter last year)
reflecting the volatility in foreign exchange rates impacting
the company’s long-term funds raised through issue of Foreign
Currency Convertible instruments.

Margins were further impacted in a challenging environment due
to abnormal input material cost increases and general
inflationary trends, the company said.

Sales volume for the quarter (including exports) at 1,33,079
vehicles grew by 3.9% over 1,28,095 vehicles in the
corresponding period last year.  Domestic sales of commercial
vehicles increased by 15.9% to 71,049 units, while domestic
sales of passenger vehicles (including Fiat) at 52,450 units
were flat.

According to Tata Motors, while higher interest rates and
reduction in overall vehicle financing continue to affect
retails, the company is posting good growth and also improving
market shares in segments where it has already introduced new
products.  For example, the launch of Indigo CS has made a
significant contribution to increase in market share in the
entry mid-size segment to 38.6% during the quarter.  Similarly,
introduction of Magic and Winger, along with buses, has resulted
in a substantial increase in the company’s market share in
public transportation.  Market share has also increased in the
M&HCV segment.

The company said it will continue to launch new products and
variants both in passenger vehicles and commercial vehicles over
the coming months.

The company said it will also continue to accord a special
thrust on vehicle finance to facilitate better retail sales.
New initiatives of cost reduction, now under development, will
continue to be implemented vigorously.

Tata Motors acquired the business of Jaguar Land Rover on June
2, 2008.  The financial statements of the business are under
compilation.  In view of this,
consolidated results are not yet available.

                       About Tata Motors

India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the company.  The company's operating segments consists of
Automotive and Others.  In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.  TML is listed on the Bombay Stock
Exchange, the National Stock Exchange of India and New York
Stock Exchange.  It was ultimately 33.4% owned by the Tata Group
as of December 2007.

Tata Motors has operations in Russia and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
July 9, 2008, Standard & Poor's Ratings Services kept its 'BB'
corporate credit rating on India's Tata Motors Ltd. on
CreditWatch with negative implications, pending finalization of
the long-term financing plans for funding the company's purchase
of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--).
At the same time, Standard & Poor's ratings on all Tata Motors'
rated debt remain on CreditWatch with negative implications.

The rating on Tata Motors was lowered on April 4, 2008, to 'BB',
from 'BB+', after the announcement of the agreement with Ford
Motor Co. for the purchase of Jaguar and Land Rover.  Tata
Motors has paid about US$2.3 billion in cash for Jaguar and Land
Rover (comprising brands, plants, and intellectual property
rights).  Ford has contributed US$600 million to the Jaguar-Land
Rover (JLR) pension plans.

As reported in the Troubled Company Reporter-Asia Pacific on
June 4, 2008, Moody's Investors Service downgraded the
corporate family rating of Tata Motors Ltd to Ba2 from Ba1
following the completion of its acquisition of Ford's Jaguar
Land Rover.  The rating outlook is negative.


* INDIA: Two Largest Banks Hike Floating Loan Rates by 75 bps
-------------------------------------------------------------
The Economic Times reports that HDFC and ICICI Bank hiked
interest rates on floating loans by 75 basis points, a quarter
point more than what the Reserve Bank of India has signaled.

The new rates will be effective this month.

According to the Times, this is the second increase in the
course of a month as interest rates were hiked at the beginning
of July.

As reported in the Troubled Company Reporter-Asia Pacific, the
Reserve Bank of India increased Tuesday the Repo Rate by 50
basis points from 8.5 per cent to 9.00 per cent.

The Reserve Bank also increased the Cash Reserve Ratio by 25
basis points to 9.0 per cent with effect from the fortnight
beginning August 30, 2008.

The Times relates the HDFC and ICICI Bank's move brings back
home loan rates to where they were in 1999-2000, just before the
start of the great retail boom, the report says.

The Times says although the current situation may be reminiscent
of the high interest rate years of the late 90s, the average
cost of borrowing continues to be lower than what it was nine
years ago despite the identical rates.  This is because of tax
breaks, which enable deduction of up to Rs 1.5 lakh on interest
payments from the annual income for computing tax liability.

HDFC and ICICI Bank are two of the largest providers of housing
finance in India, the Times says.



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

BANK INTERNASIONAL: S&P Holds B+/B Counterparty Credit Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed all its ratings
on PT Bank Internasional Indonesia Tbk (BII), including its
'B+/B' counterparty credit ratings, and removed them from
CreditWatch, where they were placed with positive implications
on March 28, 2008.  The outlook is stable.

The removal from CreditWatch follows S&P's assessment of
dramatically lowered chance of Malayan Banking Bhd. acquiring a
controlling stake in BII.

On July 29, 2008, Maybank (A-/Stable/A-2) announced that Bank
Negara Malaysia (BNM), the banking regulator in Malaysia, had
revoked its approval on Malayan Banking's proposed acquisition
following the recent changes in the takeover rule in Indonesia.

"Without BNM's approval on Maybank's plan, we expect any
potential enhancement on BII's credit profile due to a possible
strategic importance of BII to Maybank has become unlikely,"
said S&P's credit analyst Terry Sham.

The ratings on BII were placed on CreditWatch in March 2008,
after the announcement that Malaysia's Malayan Banking Bhd. was
to acquire a controlling stake of 56% in BII and would launch a
tender offer for the remaining 44%.

Under the revised rule on takeovers in Indonesia, a new
controlling shareholder is obliged to divest to public
shareholders a minimum of 20% and at least 300 parties within
two years after the tender offer is undertaken.  According to
BNM, this new regulation may result in Maybank potentially
incurring material losses from selling the shares and writing
down the investment, if the bank proceeds with the proposed
acquisition.

"We will continue to closely monitor for any future impact on
BII's credit profile, with attention to any course of action to
be taken by BII's existing majority owner, Fullerton Financial
Holdings, for compliance with the Single-Presence Policy of the
banking regulator in Indonesia by 2010," Mr. Sham said.


GARUDA: Signs MOU w/ Korean Air to Enhance Marketing Cooperation
----------------------------------------------------------------
Garuda Indonesia said in its disclosure that it signed a
Memorandum of Understanding (MoU)with Korean Air to "Enhance Co-
operations in Marketing", in Denpasar, Bali, on July 24, 2008.
During the occasion, the signatories were the President Director
& CEO of Garuda Indonesia, Emirsyah Satar and COO of Korean
Airlines, Jong Hee Lee.

The deal will allow Garuda Indonesia and Korean Air to increase
seat allocations from 20 to 30 seats on the Jakarta/Denpasar -
Seoul (vv) service, introduce a new destination city on the
domestic service as part of the Special Prorate Agreement,
implement an "interline e-ticket" strategy which will reduce
travel hassles and enhance overall code-sharing management
efficiency.  It also explores possibilities of code-sharing on
Garuda Indonesia's and Korean Air's domestic flights.  In the
area of cargo transportation, the two airlines expect to see
increased volume and broader operations network.

As founder of the "Skyteam" airline alliance, Korean Air has
also signaled its endorsement of Garuda Indonesia's intention to
become a member of the alliance.  To date, Skyteam airline
members include Aeroflot, Aero Mexico, KLM/Air France, Alitalia
China Southern, Continental Airlines, Czech Airlines, Delta
Airlines, Korean Air, Northwest Airlines, Air Europe, Copa
Airlines and Kenya Airways.

According to Emirsyah Satar, Garuda Indonesia has set its sight
on becoming a four star airline by 2009 and a five star airline
by the following year.  To this end, Garuda Indonesia has never
ceased improving the performance of various aspects in the
organization, including areas of operations and service.  "And
by entering the Skyteam alliance we are closer to achieving our
targets", Mr. Satar said.

Garuda Indonesia and Korean Air have already begun code-sharing
on the Jakarta-Seoul (vv) service.  Flying seven times a week
and operating a A-330, Korean Air acts as the operating party
(the airline flying the code-sharing route), while Garuda
Indonesia, as the marketing party, sells seats based on agreed
allocations.

Code-sharing on the Denpasar-Seoul (vv) service entitles both to
act as 'operating party' and 'marketing party' towards its code-
sharing partner. On this service, Garuda Indonesia flies 5 times
a week, and Korean Air, 4 times a week. Both use an A-330.

Meanwhile, both airlines have also agreed to enter a Special
Prorate Agreement for service beyond Seoul, in which both
airlines will be able to cover more destinations in Japan, the
US and South Korea.  In the partnership, Garuda Indonesia
operates on the Jakarta-Seoul sector, while for destinations
beyond Seoul-destinations in Japan (Tokyo, Nagoya, Fukuoka and
Osaka), the US (Los Angeles, New York, Washington and Chicago)
and South Korea (to Kwangju and Pusan) will be served by Korean
Air.

The SPA also applies on other routes, beyond Jakarta to various
destinations in Asia (Hong Kong, Singapore, Kuala Lumpur and
Bangkok) and on domestic flights in Indonesia (to Surabaya,
Yogyakarta, Denpasar).  Korean Air operates flights from South
Korea to Jakarta, while Garuda Indonesia serves destinations
beyond Jakarta-destinations in the Asian region and domestic
flights in Indonesia.

So far, Garuda Indonesia and Korean Air have already initiated a
joint operation in cargo transportation serving destinations
beyond Seoul, to the US (Los Angeles, San Francisco, New York,
Chicago, Dallas, Atlanta), and Europe (Amsterdam, London and
Frankfurt).  The partnership also involves the operation of
Korean Air's B-747-400 cargo freighters to transport cargo 4
times a week and the use of Garuda Indonesia's cargo warehouse
since 1990.  Several of the cargo routes to the US are operated
under the SPA, among others Los Angeles, San Francisco,
Montreal, Phoenix, Chicago, Dallas, and Washington.  Cargo
transportation between major cities in the cargo route is
carried out by reliable trucking service.

                     About Garuda Indonesia

Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations.  Under its
Citilink brand, it serves 10 other domestic routes.  Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on March 18,
2008, that PT Garuda Indonesia is slated to complete the
restructuring of its US$800 million debts, including US$500
million to the European Credit Agency, in the first semester of
this year.  As part of efforts to boost efficiency, since
Jan. 15, Garuda had halted the operation of its budget-carrier
Citilink pending a reorganization of the division.

The TCR-AP reported on Sept. 6, 2007, that Garuda was saddled
with a debt of around US$750 million of which US$475 million was
owed to the European Credit Agency.  The airline was affected by
plunging arrivals on the resort island of Bali, where tourists
have been killed in bomb attacks in 2002 and 2005.  It also
suffered from soaring global oil prices, a weakening of the
Indonesian rupiah and rising interest rates.


PT INDOSAT: Signs Marketing and Services Agreement with Mandala
---------------------------------------------------------------
PT Indosat President Director Johnny Swandi Sjam and Chief
Executive Officer of Mandala Airlines Warwick Brady have signed
a memorandum of understanding on marketing and services to each
of their customers, Antara News reports.

According to the report, the cooperation agreement covers micro-
payment services, SMS-based campaigns, marketing and sales, and
corporate solution of Mandala airlines telecommunications
problems.

Other sectors of cooperation include event organization,
sponsorship and corporate social responsibility (CSR), the
report adds.

Indosat marketing director, Guntur S. Siboro, told Antara News
that the micro-payment service under the cooperation -- the
Mandala's fares -- are paid through an Indosat mobile wallet,
which is combined with WAP reservation.

"This is a cross-sale between Indosat and Mandala due to
similarity in subcribers", Mr. Siboro was quoted by Antara News
as saying.

                          About Indosat

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

                          *     *     *

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

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

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


* INDONESIA: Fuel Trade Balance to Remain in Deficit, Says Basri
----------------------------------------------------------------
Indonesia's oil and fuels trade balance has remained in the red
throughout the first semester of 2008 due to low domestic output
and spiraling consumption and is estimated to continue as a
deficit for the rest of the year, The Jakarta Post cites
Economist Faisal Basri as saying during a discussion held about
energy crisis.

According to the report, Mr. Basri said the deficit stood at
US$5.5 billion as of end of May and is predicted to reach US$15
billion at the end of this year.

"We are heading toward a very critical situation if we don't
formulate a proper energy policy", Mr. Basri was quoted by The
Post as saying.

The report relates that Mr. Basri pointed out the big gap
between the fuels import and export shows that the country has
poor production but massive consumption.

Indonesia needs to develop alternative energy sources as well as
implement energy saving measures, Mr. Basri added.

On the other hand, professor of electrical engineering Rinaldy
Dalimi was cited by The Post as saying that the energy crisis
had little to do with resources shortages.

"Our energy policy has been wrong since the start", Mr. Dalimi
was quoted by the Jakarta Post as saying.

The report, citing Mr. Dalimi, says that Indonesia exported oil
since the 60's because the country's oil is expensive.  At the
same time, Indonesia imports oil from Saudi Arabia to be
processed as fuels.  As a result, even now, the country's
refineries cannot process their our own oil.



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

FORD MOTORS: Raising Lease Prices on Trucks and SUVs on August 1
----------------------------------------------------------------
Ford Motor Co. is changing its leasing business plan to raise
lease prices of the Ford F-150 and Super Duty pickups, and the
Ford Explorer and Sport Trac SUVs, effective Aug. 1, 2008, The
Wall Street Journal's John D. Stoll and Matthew Dolan report.
Ford informed dealers through an e-mailed memo that the move is
necessary for Ford's financing subsidiary, Ford Motor Credit
Co., to curb losses incurred in the second quarter of 2008.

WSJ relates that the memo said that extreme losses has sparked
Ford Credit to take on off-lease vehicles, adjusting residuals
mid-quarter on the following vehicle lines.  Off-lease vehicles
are vehicles returned to the dealer after a lease has expired.
A normal lease period runs between 24 months and 36 months,
although some leases are extended.

According to a press release, Ford Motor Credit reported a net
loss of US$1.427 billion in the second quarter of 2008, down
US$1.489 billion from net income of US$62 million a year
earlier.  On a pre-tax basis, Ford Motor Credit reported a loss
of US$2.380 billion, compared with earnings of US$112 million in
the previous year.  Excluding a US$2.1 billion impairment charge
for operating leases, Ford Motor Credit incurred a pre-tax loss
of US$294 million in the second quarter of 2008.

The decrease in pre-tax earnings primarily reflected the
impairment charge for operating leases, higher depreciation
expense for leased vehicles, and higher provision for credit
losses.  These were offset partially by the non-recurrence of
net losses related to market valuation adjustments from
derivatives, higher financing margin, a gain related to the sale
of approximately half of our ownership interest in our Nordic
operations, and lower operating costs.

During the second quarter of 2008, higher fuel prices and the
weak economic climate in North America resulted in a pronounced
shift in consumer preferences from full-size trucks and
traditional sport utility vehicles to smaller, more fuel-
efficient vehicles.  This shift in consumer preferences combined
with a weak economic climate caused a significant reduction in
auction values for used full-size trucks and traditional sport
utility vehicles.

In addition, Ford Motor Credit completed its quarterly North
America operating lease review and projected that lease-end
residual values would be significantly lower than previously
expected for full-size trucks and traditional sport utility
vehicles.  As a result of these market factors and Ford Motor
Credit's portfolio review, Ford Motor Credit determined a pre-
tax impairment charge of US$2.1 billion was required.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom.  The company also distributes its brands in
various Latin-American regions, including Argentina and Brazil.

                            *   *   *

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3-billion of senior convertible notes
due 2036.


NOMURA HOLDINGS: Posts JPY76.6 Bil. Loss for 1Q Ended June 30
-------------------------------------------------------------
Nomura Holdings Inc. posted a JPY76.6 billion (US$712.8 million)
net loss for its fiscal first quarter, from a JPY75.9 billion
net profit a year earlier, Alison Tudor of The Wall Street
Journal reports

The reported loss, the Journal relates, came after write-downs
of risky debt products, and a Japanese bank's expectation that
difficult market conditions will continue.

According to WSJ, the loss was attributable to a hit of JPY63.1
billion on exposure to troubled monoline insurers, which provide
cover against the risk of defaults on debt.

The company also posted a JPY132 billion annual net loss for the
fiscal year ended March 31, the report notes.

The company, WSJ relates, repackaged derivative contracts for
investors, and to cover itself against defaults on the
underlying assets, it insured with monoline insurers.

The Journal notes that the debt, backed by pools of mortgages,
has been hit hard by the decline in the value of subprime
mortgages extended to risky borrowers.   Because of this, Nomura
could no longer count on the monolines to insure it against
defaults, so the bank has made provisions that cover 85% of its
exposure and lowered its total net exposure to US$174 million,
WSJ says.

Nomura Holdings, Inc. -- http://www.nomura.com/ --  is a
securities and investment banking firm in Japan and has
worldwide operations.  Nomura is a holding company.  The
services it provides include trading, underwriting, and offering
securities, asset management services, and others.  As of
March 31, 2008, it operated offices in about 30 countries and
regions, including Japan, the United States, the United Kingdom,
Singapore and Hong Kong through its subsidiaries.  The company's
customers include individuals, corporations, financial
institutions, governments and governmental agencies.  Nomura
operates in five business divisions: domestic retail, global
markets, global investment banking, global merchant banking and
asset management.   In February, 2007, Nomura acquired Instinet
Incorporated.


SKYLARK CO: Major Shareholders Urge President to Step Down
----------------------------------------------------------
Skylark Co. Ltd.'s major shareholders, Nomura Principal Finance
Co. and  European investment fund CVC Capital Partners, are
urging President Kiwamu Yokokawa to step down to take
responsibility for the company's sluggish business performance,
Jiji Press reports.

The two shareholders, the report relates, are increasingly
frustrated at the company's tardy earnings recovery after the
company went private through a management buyout scheme in 2006
with the support from the two investment firms.

According to the report, the investment firms and Yokokawa, a
member of Skylark's founding family, are also at odds over the
timing of the company's envisioned stock market comeback.   To
make matters worse, surging gasoline prices are casting a pall
over Skylark's operations, Jiji Press says.

The two shareholders, the report notes, explained the proposed
top management reshuffle to 19 banks.  Consent from the banks is
necessary to oust the president.

Meanwhile, Yokokawa is believed to have told the banks that he
intends to stay on, stressing that Skylark's earnings will
improve since its ongoing restructuring measures are set to pay
off, Jiji Press says.

                         About Skylark Co

Headquartered in Tokyo, Japan, Skylark Co. Ltd. --
http://www.skylark.co.jp/-- operates a chain of family
restaurants in Japan through the following divisions:
Restaurants and food; Construction and maintenance and Other.
The Restaurants and food division engages in restaurant chain
operations, sale of food materials and prepared foods, food
transportation and cleaning.  The Construction division deals
with design, construction and repairs of restaurants and
maintenance of building facilities.  The Other business division
deals with wallpaper, manufacture and sale of automobile goods,
real estate buying and selling and hotels and condominium
operations.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
July 26, 2006, that Standard & Poor's Ratings Services lowered
its long-term corporate credit and senior unsecured debt
ratings on Skylark Co. Ltd. by two notches to 'BB' from 'BBB-',
on expectations of weakening profitability and a deterioration
in he company's debt structure over the next one to two years,
due to an increase in bank borrowings to carry out a management
buyout and to enhance the profitability of its existing
restaurants.


* JAPAN: Moody's has Stable Outlook for Automobile Manufacturers
----------------------------------------------------------------
The outlook for the Japanese automotive manufacturing sector is
stable, according to a new report by Moody's Investors Services.

"This outlook is based on companies' solid operating franchises,
continuing development in technological strategies, and
favorable brand image, as well as ongoing cost-cutting efforts,"
writes Junichi Yamaki, Moody's SVP and author of the report.
"We expect revenue growth will hold steady over the medium
term."

Toyota's consolidated vehicle sales have grown sharply in recent
years, increasing by 600,000 units each year, while Honda's have
grown at 200,000 units annually -- which combined equal a 40%
share of the entire global market's expansion (two million units
each year).

In addition, Japanese OEMs have been increasing their share in
global markets by improving their positions in the various
markets in which they operate, including the developed markets
in North America and Europe.

However, the Japanese automakers, which had sustained favorable
operating performances for eight or more years (albeit with
significant differences among companies) until FYE3/2008, are
now projecting weaker overall operating performance for this
fiscal year, because of the higher costs of fuel and raw
materials and the stronger yen, according to the report.

Japanese automakers will find it difficult to pass on cost
increases to consumers in a weak economy, resulting in margin
pressure.  However, companies' efforts to increase product
prices for new models and their ongoing cost-cutting programs
should offset in part the rising costs of raw materials.

"The Japanese companies are probably in a better position to
mitigate these risks -- their geographically diversified revenue
and earnings, as well as their diversified business portfolios,
should help provide some insulation against the adverse effects
of rising costs and currency fluctuations -- hence our belief
that revenue growth will remain stable over the medium term,"
Yamaki writes.


* JAPAN: S&P Says Iwate Earthquake Has Little Effect on CMBS
------------------------------------------------------------
Standard & Poor's Ratings Services said that the 6.8-magnitude
earthquake that hit the coastal areas of Iwate Prefecture and
other parts of northeastern Japan in the early morning of
July 24, 2008, has had a limited impact on the underlying real
estate assets for some Japanese CMBS transactions rated by the
rating agency.  S&P conducted its assessment based on
information received from servicers regarding damage to the real
estate assets.

After the Iwate-Enganhokubu earthquake, S&P assessed the
condition of the real estate assets through contact with
servicers.  Servicers reported that the earthquake's impact on
the real estate assets was generally marginal compared with that
of the Iwate-Miyagi Nairiku earthquake that shook the same
Tohoku area in June.

Following the latest earthquake, servicers ascertained that
some of the assets had sustained slight damage requiring small-
scale repairs.  S&P thus believes that this earthquake should
have a limited impact on rated CMBS transactions, given that it
has had no significant impact on the valuation of the real
estate assets and cash flow.  S&P's will continue to collect
updates on this matter through servicers.  If this review
process reveals significant impact on the CMBS transactions,
they may be subject to rating actions.

S&P requests that third-party organizations submit investigative
reports on earthquake-related risks pertaining to major
underlying real estate assets for CMBS transactions.  Based on
these reports, S&P requires properties identified as vulnerable
to earthquake risk to obtain earthquake insurance.



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

ALLIANCE: Moody's Reviews Ba2 Bank Deposit Rating for Downgrade
---------------------------------------------------------------
Moody's Investors Service has placed the Ba2 long-term bank
deposit and Ba2/Ba3 senior and subordinated debt ratings of
Alliance Bank on review for possible downgrade.  The bank's E+
bank financial strength rating and Not Prime short-term ratings
are not affected by the review and have been affirmed.

At the same time, Moody's has placed the Ba3 long-term foreign
and local currency issuer ratings of Seimar Alliance Financial
Corporation, a holding company of the bank, on review for
possible downgrade.

Moody's rating action has been prompted by a weakening of
Alliance Bank's BFSR within the E+ category, with the BFSR now
mapping to a Baseline Credit Assessment of B2 compared to B1
previously.  This weakening is a result of the deteriorating
quality of the bank's loan portfolio, liquidity concerns arising
from the outflow of customer deposits from the bank and
significant refinancing issues related to its ongoing high
reliance on wholesale sources of funding along with its
continuing limited access to the market for refinancing.

Moody's said that the rating review will focus on:

(i)   developments with regard to Alliance Bank's customer
      deposit base, which, along with the high reliance on
      wholesale funding, raises material concerns about the
      bank's funding and liquidity profile,

(ii)  the bank's ability to generate sufficient operating income
      in the longer term, and

(iii) the impact on capital and profitability of possible future
      write-downs and impairment charges associated with the
      declining trend in the bank's loan portfolio.

Moody's review will also reassess the systemic support
assumptions incorporated in the bank's debt and deposit ratings
given its declining market share, particularly in deposit-
taking.

Moody's previous rating action on Alliance Bank and SAFC was in
November 2007, when it changed the outlook on all of the bank's
and holding company's deposit and debt ratings to negative from
stable to reflect the negative impact of the continued credit
and liquidity crisis on the bank's credit risk.

                     About Alliance Bank

Alliance Bank was formed through the merger of Multi-Purpose
Bank with several financial institutions in 2001.  It is 100%-
owned by Malaysian Plantations Berhad, a publicly-listed holding
company with the bank as its main subsidiary -- wit other
smaller property interests).   Vertical Theme, a 51:49 joint-
venture between Langkah Bahagia, the largest shareholder in
MPlant, and Temasek Holdings, has held a combined 30.14% in
MPlant since March 2005.


LIQUA HEALTH: Gives More Info. on Impact of Writ Filed by Wynsum
----------------------------------------------------------------
As reported by the Troubled Company Reporter-Asia Pacific on
July 24, 2008, Liqua Health Corporation Berhad -- its wholly-
owned subsidiary -- Liqua Health Marketing (M) Sdn Bhd and among
others have been served with a Writ of Summons by Wynsum Healthy
Living Sdn Bhd.

In an a query by the Bursa Stock Exchange, the company has given
additional information on the impact to the company brought by
the Writ of Summons.

      Financial and Operational Impact of Writ of Summons

According to the company, the Writ has no real operational or
financial impact on the Group except for the legal fees to be
incurred in defending the case.  In this regard, the company and
Liqua Health Marketing are strenuously opposing the Writ and
believe that they have merits in their defence.

            Expected Losses Arising from the Writ

The company says that it is not possible to state the quantum of
losses that may arise from the Writ at this juncture as the
Plaintiff's claim is based on estimated loss of earnings.  In
the event that the Court allows the Plaintiff's claim, the
expected losses arising from the Writ is to the extent of the
damages that will have to be assessed by the Court.

The Plaintiff's ability to claim damages is premised on its
proving that the damages are reasonable and foreseeable
consequence of the company  and its subsidiary's alleged
wrongful actions.

However, the company does not expect any losses arising from the
Writ, as the it believes that it has a strong defence.

Liqua further disclosed that the claims by Wynsum for specific
damages against the defendants should be MYR300,822,600 instead
of MYR389,153,551 as earlier disclosed.  The claims of Wynsum
comprisese of:

   * A sum of MYR88,330,950 against Liqua Health Marketing and
     one other defendant; and

   * A sum of MYR212,491,650 against the company, Liqua Health
     Marketing and one other defendant.

                       About Liqua Health

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

                          *     *     *

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


NIKKO ELECTRONICS: Defaults MYR436,664 on Bankers' Acceptance
-------------------------------------------------------------
Pursuant to Practice Note 1/2001, Nikko Electronics Bhd.
disclosed that the company defaulted on bankers' acceptance
facilities amounting to MYR436,664.65, which was granted by
Maybank Islamic Berhad.  The amount was due on July 30, 2008.

Nikko was unable to repay the liability to the Bank due to the
difficult cash flow position as a result of the contraction in
the remote-control toys industry.  The company had been loss-
making and its ventures to manufacture news products had also
failed to make a profitable contribution to the company.

To address the default, the company will review various
restructuring options and also in the process of shutting down
its business activities to prevent incurrring further losses.

       Financial and Legal Implications in respect of the
                     Default of  Payments

Financial implications on the company include the inability to
sufficiently meet its ongoing expenses, like the payment of
salaries and wages to employees.

The legal implications from the defaults are banks may institute
foreclosure and legal proceedings against the company in the
event that the outstanding debts are not settled in.

                        Solvency of Nikko

The company's board of directors believe that the company is
unable to pay all its outstanding debts in full within 12 months
from June 30, 2008.

                            About Nikko

Nikko Electronics Berhad manufactures sells radio controlled
toys, electronic and toy related products.  The Group operates
in Malaysia, United States of America, France, Japan, United
Kingdom, Netherlands, Italy, Norway, Hong Kong, Denmark,
Austria, Spain, Australia and other countries.

                         *     *     *
On June 30, 2008, Nikko Electronics Bhd. was classified as an
affected listed issuer under Practice Note 1/2001 (PN1/2001) of
the Listing Requirements of Bursa Malaysia Securities Berhad
because it had defaulted on a bankers' acceptance facility due
on June 27, 2008, for an amount of MYR1,457,084 due to Malayan
Banking Berhad.  Nikko is unable to repay the liability to the
bank due to the difficult cash flow position as a result of the
contraction in the remote-control toys industry.

The company had been loss-making and its ventures to manufacture
new products had also failed to make a profitable contribution
to it.  Nikko will also be suspending its business activities to
prevent incurring further losses.


NIKKO ELECTRONICS: Cepco Demands MYR397,811.11 Payment for Goods
----------------------------------------------------------------
Nikko Electronics Bhd. has been served a Section 218 notice by
Presgrave & Matthews, Advocates & Solicitors acting for Cepco
Electronics (M) Sdn Bhd, demanding the payment of MYR397,811.77
being monies due for the supply of goods and owing to them as at
June 30, 2008.

Nikko is given 21 days from the receipt of notice to settle the
said outstanding debts, falling which, a winding up petition
will be taken against the company.

The company is seeking the necessary legal advice to resolve and
defend against this matter.

                            About Nikko

Nikko Electronics Berhad manufactures sells radio controlled
toys, electronic and toy related products.  The Group operates
in Malaysia, United States of America, France, Japan, United
Kingdom, Netherlands, Italy, Norway, Hong Kong, Denmark,
Austria, Spain, Australia and other countries.

                         *     *     *

On June 30, 2008, Nikko Electronics Bhd. was classified as an
affected listed issuer under Practice Note 1/2001 (PN1/2001) of
the Listing Requirements of Bursa Malaysia Securities Berhad
because it had defaulted on a bankers' acceptance facility due
on June 27, 2008, for an amount of MYR1,457,084 due to Malayan
Banking Berhad.  Nikko is unable to repay the liability to the
bank due to the difficult cash flow position as a result of the
contraction in the remote-control toys industry.

The company had been loss-making and its ventures to manufacture
new products had also failed to make a profitable contribution
to it.  Nikko will also be suspending its business activities to
prevent incurring further losses.


WONDERFUL WIRE: Bursa to Suspend Security Trading on Aug. 5
-----------------------------------------------------------
The Bursa Malaysia Securities Berhad will suspend the trading of
Wonderful Wire & Cable Berhad's securities on August 5, 2008,
due to the failure of the company to submit its regularisation
plan to the Securities Commission and other relevant authorities
for approval by July 29, 2008, the timeframe stipulated by Bursa
Securities.

The company further disclosed that:

   * it has been accorded five market days by Bursa Securities
     to make written representations to Bursa Securities,
     supported by documentary evidence, as to why its securities
     should not be removed from the Official List of Bursa
     Securities;

   * that in the event Bursa Securities decides to de-list the
     company, its securities will be removed from the Official
     List of Bursa Securities upon the expiry of seven market
     days from the date of notification of the decision to de-
     list the company or other date as may be specified by Bursa
     Securities unless an appeal is made within the prescribed
     timeframe; and

   * that in the event Bursa Securities decides not to de-list
     the company, other appropriate action/penalty(ies) may be
     imposed pursuant to paragraph 16.17 of the LR.

                      About Wonderful Wire

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

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



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

BLUE CHIP: Investors to Get Legal Aid from Government
-----------------------------------------------------
Around 2000 investors that have lost at least NZ$84 million when
Blue Chip New Zealand Ltd. collapsed are being encouraged to
apply for legal aid, Maria Slade of the New Herald reports.

According to the Herald, the Legal Services Agency is co-
ordinating a centralised response to applications from Blue Chip
victims from its Rotorua branch.

In a letter to property consultant Olly Newland cited by the
Herald, Commerce Minister Lianne Dalziel said she is "interested
in helping Blue Chip investors find ways and means to access
legal advice, particularly in this case where lack of funding is
a barrier to legal recourse."

Olly Newland, the report says, is acting for numerous former
Blue Chip clients.

Meanwhile, the report relates that several hundred of Blue Chip
investors are being represented by Law firm Ellis Law together
with barristers Paul Dale and Daniel Grove.

Principal Brian Ellis told the Herald that his firm was already
processing legal aid applications for around half a dozen
investors, and it expected a lot more.

Mr. Ellis said he welcomed the encouraging words from the
Government.  "It gives some of those people who have no hope the
possibility of getting on the bandwagon to do something."

                       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.


COMPUDIGM INTERNATIONAL: Proofs of Debt Due on August 4
-------------------------------------------------------
The High Court at Wellington has appointed Greg Sherriff and
David Vance, insolvency specialists, as liquidators of Compudigm
International Limited.

Creditors are required to file their proofs of debt by Aug. 4,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

          Robin Crimp
          Deloitte, Level 8
          Deloitte House
          95 Customhouse Quay
          Wellington
          Telephone: (04) 472 1677
          Facsimile: (04) 472 8023


CRAZY TOWN: Proofs of Debt Due on August 4
------------------------------------------
The High Court at Wellington has appointed Greg Sherriff and
David Vance, insolvency specialists, as liquidators of Crazy
Town Limited.

Creditors are required to file their proofs of debt by Aug. 4,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

          Louise Craig
          Deloitte, Level 8
          Deloitte House
          95 Customhouse Quay
          Wellington
          Telephone: (04) 472 1677
          Facsimile: (04) 472 8023


J & G COURIERS: Proofs of Debt Due on August 6
----------------------------------------------
The High Court at Auckland has appointed Vivien Judith Madsen-
Ries, insolvency specialist, and David Stuart Vance, chartered
accountant, as liquidators of J & G Couriers Limited.

Creditors are required to file their proofs of debt by Aug. 6,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

          Deloitte
          Deloitte House, Level 8
          8 Nelson Street, Auckland
          Telephone: (09) 309 4944
          Facsimile: (09) 309 4947


J & R PAINTERS: Proofs of Debt Due on August 8
-----------------------------------------------
In accordance with Section 241 of the Companies Act 1993, the
shareholders of J & R Painters Limited  appointed Peri Micaela
Finnigan and Victoria Toon, chartered accountants of Auckland,
as liquidators.

Creditors are required to file their proofs of debt by Aug. 8,
2008, to be included in the company's dividend distribution.

The liquidators can be reached at:

          McDonald Vague
          PO Box 6092
          Wellesley Street Post Office
          Auckland
          Telephone: (09) 303 0506
          Facsimile: (09) 303 0508
          Website: www.mvp.co.nz


J & R PORTABLE: Wind-Up Petition Hearing Set for August 6
---------------------------------------------------------
The High Court at Nelson will convene a hearing on Aug. 6, 2008,
to consider an application putting J & R Portable Sawmilling
Limited into liquidation.

The application was filed on June 11, 2008, by Ashley Industrial
Services Limited.

The plaintiff's address for service is at:

          Cavell Leitch Pringle & Boyle
          Level 15, Clarendon Tower
          cor. of Worcester Street and Oxford Terrace
          Christchurch
          Telephone: (03) 379 9940
          Facsimile: (03) 379 2408

Owen Godfrey Paulsen is the plaintiff's solicitor.


KOHA SEAFOODS: Liquidators Set August 8 as Claims Bar Date
----------------------------------------------------------
The High Court at Auckland has appointed John Trevor Whittfield
and Peri Micaela Finnigan, insolvency practitioners, as
liquidators of Koha Seafoods Limited.

Creditors are required to file their proofs of debt by Aug. 8,
2008, to be included in the company's dividend distribution.

The liquidators can be reached at:

          McDonald Vague
          PO Box 6092
          Wellesley Street Post Office
          Auckland
          Telephone: (09) 303 0506
          Facsimile: (09) 303 0508
          Website: www.mvp.co.nz


LANDCO LTD: Todd Capital Buys Remaining 50.5% Stake in Company
--------------------------------------------------------------
Todd Capital has bought the rest of Landco Ltd after the company
holding the remaining 50.5 percent, associated with Auckland
property developer Greg Olliver, was placed in receivership, the
National Business Review reports.

According the the report, the Todd family who owned half the
company, bought the remainder from The Phoenix Trust, of which
Mr. Olliver was director.  The Phoenix Trust was placed in
receivership on July 7, the report relates citing the Companies
Office.

As reported in the Troubled Company Reporter – Asia Pacific on
July 10, 2008, the National Business Review said that last
November, Landco put its assets on the block, which at the time
were said to be worth NZ$1 billion, but has still not been able
to find a buyer.

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

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

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

                         About Landco

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


MONCUR ENGINEERING: Liquidators Set August 8 as Claims Bar Date
---------------------------------------------------------------
In accordance with Section 241 of the Companies Act 1993,
the shareholders of Moncur Engineering Ltd. Have appointed
Iain McLennan, insolvency practitioner, and Victoria Toon,
chartered accountant, both of Auckland, as liquidators.

Creditors are required to file their proofs of debt by Aug. 8,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

          Iain Mclennan
          McDonald Vague
          PO Box 6092, Wellesley Street Post Office
          Auckland
          Telephone: (09) 303 0506
          Facsimile: (09) 303 0508
          Website: www.mvp.co.nz


NAZIA SEA: Proofs of Debt Due on August 6
-----------------------------------------
The High Court at Auckland has appointed Vivien Judith Madsen-
Ries, insolvency specialist, and David Stuart Vance, chartered
accountant, as liquidators of Nazia Sea & Air Freight Limited.

Creditors are required to file their proofs of debt by Aug. 6,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

          Deloitte
          Deloitte House, Level 8
          8 Nelson Street, Auckland
          Telephone: (09) 309 4944
          Facsimile: (09) 309 4947


NICKSFOODS LTD: Liquidators Set August 4 as Claims Bar Date
-----------------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993,
Timothy Wilson Downes and Stephanie Beth Jeffreys, insolvency
practitioners and chartered accountants of Grant Thornton
Auckland Limited were appointed liquidators of Nicksfoods
Limited on July 3, 2008.

Creditors are required to file their proofs of debt by Aug. 4,
2008, to be included in the company's dividend distribution.

The liquidators can be reached at:

          Stephanie Jeffreys
          Grant Thornton Auckland Limited
          152 Fanshawe Street
          Auckland
          Telephone: (09) 308 2570


RONGOTAI HOLDINGS: Proofs of Debt Due on August 5
-------------------------------------------------
The High Court at Auckland has appointed Henry David Levin,
insolvency specialist, and David Stuart Vance, chartered
accountant, as liquidators of Rongotai Holdings Limited.

Creditors are required to file their proofs of debt by Aug. 5,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

          Miranda Law
          Deloitte House
          Level 8, 8 Nelson Street
          Auckland
          Telephone: (09) 309 4944
          Facsimile: (09) 309 4947



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

STEEL CORP: Seeks Reconsideration of Rehab Case Termination
-----------------------------------------------------------
Steel Corp. of the Philippines has asked the Court of Appeals to
reconsider the termination of the company’s rehabilitation
proceedings, saying that the Court's ruling is a "clear
abdication" of its duty to settle controversies, Business World
reports.

"The parties may not agree on many things, but it is undisputed
that it is proper and in everyone’s interest to rehabilitate
Steel Corp.  All parties agree that Steel Corp. can be
rehabilitated.  The only question, therefore, is how," Steel
Corp. was quoted by Business World as saying..

According to the report, the company said that terminating the
rehabilitation proceedings is like killing its operations.

As reported by the Troubled Company Reporter-Asia Pacific on
July 15, 2008, Associate Justice Juan Q. Enriquez, Jr. said that
the rehabilitation plan approved by a Batangas trial court seems
to have failed to resolve the quarrel.

"The rehabilitation suit having been unduly prolonged and the
plan not having been implemented at all, the question arises
whether such plan still remains feasible and whether adjustment
or modification can be made by the [trial court]," the order
said as quoted by Business World.

The TCRAP also reported on May 27, 2008, that the company's
financial trouble started in 1996 when it obtained Php3.1
billion in both foreign and local loans for the construction of
a plant in Balayan, Batangas.

Payment on the loan was stalled by several factors particularly
the Asian financial crisis.  In 2001, the company asked
creditors for an extension.

Accordingly, creditor bank, Equitable PCI Bank Inc., sought
rehabilitation of the company, which Steel Corp. wanted the
appellate court to deny arguing that the bank wanted to take
over the company's operations.

                     About Steel Corporation

Established in 1996, Steel Corporation of the Philippines
provides coated steel products for use in a diverse range of
applications including automotive, architecture, construction,
furniture and cans.

Steel Corp. is currently the Philippine's sole licensee of
GALVALUME 55(TM), the world's most durable coated steel product
and having the first galvanizing line in the world to achieve
200 meters per minute in 55% aluminum / zinc sheet production.



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

* TAIWAN: Cabinet Welcomes China Investors Into Stock Market
------------------------------------------------------------
Taiwan's cabinet said it would allow China's institutional
investors to buy into the island's stock market, in a sign of
improving business ties on both sides, Rachel Lee of Reuters
reports.

The cabinet, the report relates, said in a statement that
China's qualified domestic institutional investors would be able
to invest up to 3% of their approved funds under management.

According to the report, the cabinet set a cap of US$1.125
billion for all the combined investments by Chinese
institutional investors.



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

* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                                      Total
                                           Total   Shareholders
                                          Assets      Equity
  Company                       Ticker    (US$MM)    (US$MM)
  -------                       ------     ------   ------------

AUSTRALIA

ADVANCE HEALTHCA                  AHG      15.65       -6.78
ALLSTATE EXPLORA                  ALX      18.20      -42.78
AUSTINDO RES                      ARX      62.77      -15.88
AUSTAR UNITED                     AUN     525.67     -234.87
ANTARES ENERGY L                  AZZ      16.20       -4.36
BIRON APPAREL LT                  BIC      19.71       -2.22
CROESUS MINING                    CRS      16.00      -13.81
ETW CORP LTD                      ETW     103.76      -50.22
INTELLECT HLDGS                   IHG      15.25      -10.88
KH FOODS LTD                      KHF      38.40       -6.79
LAFAYETTE MIN                     LAF     105.24     -190.86
METAL STORM LTD                   MST      16.47       -2.9
RENISON CONSOLID                  RSN      38.83       -3.94
TOOTH & CO LTD                    TTH     120.47      -87.64


CHINA

HISENSE ELEC-H                    921     604.98      -86.30
NINGBO YIDONG-H                  8249      86.83       -0.19
SHENZ SEG DASH-A               000007     101.02       -1.14
SHENZ CHINA BI-A               000017      29.38     -244.53
SHENZHEN SHENXIN               000034      44.99     -113.37
CHINA KEJIAN-A                 000035      65.12     -167.31
SHENZHEN KONDA-A               000048     155.01      -24.45
HUNAN ANPLAS CO                000156      84.00      -81.35
ZHANGJIAJIE TO-A               000430      51.01       -8.25
DANDONG CHEM F-A               000498     115.94      -91.60
SUCCESS INFORMAT               000517      30.12      -14.83
GUANGDONG MEIYA                000529      66.44      -62.41
GUANGXIA YINCH-A               000557      53.46      -61.33
CHANG LING GROUP               000561      49.68     -115.81
QINGHAI SALT L-A               000578     105.64       -4.91
GUANGMING GRP FU               000587      62.37      -12.08
FUJIAN CFC IND-A               000592      24.20      -19.62
YUEYANG HENGLI-A               000622      40.27      -14.34
LAN BAO TECH INF               000631      29.44      -22.70
CHINA LIAONING-A               000638      15.43       -5.70
CHENGDU UNION-A                000693      59.53       -0.19
JIAOZUO XIN'AN-A               000719      50.82      -25.45
FUJIAN SANNONG-A               000732      64.42      -90.24
CHONGWING INTL-A               000736      24.75      -13.38
SICHUAN DIRECT-A               000757     128.55     -102.62
CHINESE.COM LOGI               000805      12.72      -20.57
SHENZHEN DAWNC-A               000863      36.85     -142.58
STELLAR MEGAUNIO               000892      64.93     -162.46
HUNAN AVA HOLDIN               000918     176.94      -11.26
GUANGDONG KEL-A                000921     604.98      -86.30
ANHUI KOYO GROUP               000979      64.28      -30.78
SHENZ CHINA BI-B               200017      29.38      -244.53
AMOI ELECTRONICS               600057     414.93       -30.40
SUNTIME INTERN-A               600084     372.80       -50.59
SHANG WORLDBES-A               600094     327.98      -175.17
MIANYANG GAO-A                 600139      30.66       -12.44
HEBEI BAOSHUO CO               600155     313.38      -212.29
HUATONG TIANXI-A               600225      73.84       -41.14
TAIYUAN TIANLON                600234      12.69       -51.58
TIBET SUMMIT IND               600338      73.50       -16.42
CHONGQING CHANG                600369      98.87        -0.06
QINGHAI SUNSHI-A               600381      47.31       -49.66
WINOWNER GROUP C               600681      21.50       -81.28
HEBEI JINNIU C-A               600722     379.30        -2.89
SUNTEK TECHNOLOG               600728      44.69       -22.95
FUJIAN START-A                 600734     105.66       -14.34
TIANJIN MARINE                 600751      75.44       -26.60
TOPSUN SCIENCE-A               600771     232.68      -131.98
XIAMEN OVERSEAS                600870     433.19       -13.78
HUDA TECHNOLOG-A               600892      18.46        -1.90
TIANJIN MARINE-B               900938      75.44       -26.60
SHANG WORLDBES-B               900940     327.98      -175.17


HONG KONG

CHIA TAI ENTERPR                  121     316.11      -40.95
CHINA BEST GROUP                  370      55.54       -1.84
ASIA TELEMEDIA L                  376      16.97       -7.53
WELLING HOLDING                   382     303.95      -44.65
NEW CITY CHINA                    456     110.83       -6.78
PALADIN LTD                       495     167.43       -6.23
MAXX BIOSCIENCE                   512      25.48       -5.36
CHINA HEALTHCARE                  673      25.44       -3.37
PLUS HOLDINGS LT                 1013      10.40      -10.21
SUNCORP TECH LTD                 1063      31.94      -35.07
FE GOLDEN RES                    1188      52.49       -9.92
WAH SANG GAS                     8035      61.51     -106.48


INDIA

ANDREW YULE & CO                  ANY      81.41      -30.90
ARTSON ENGR                       ART      10.31       -0.71
ASHIMA LTD                        ASHM     96.57      -42.59
BHAGHEERATHA ENG                  BGEL     22.65      -28.20
BALAJI DISTILLER                  BLD      45.66      -74.20
BELLARY STEELS                    BSAL    395.36      -41.25
CFL CAPITAL FIN                   CEATF    24.03      -43.80
CORE HEALTHCARE                   CPAR    185.37     -241.91
DIGJAM LTD                        DGJM     98.77      -14.62
DISH TV INDIA                     DITV    239.48      -12.62
ELQUE POLYESTERS                  ELQP     13.80      -25.63
GANESH BENZOPLST                  GBP      82.16      -38.25
SURAT TEXTILE MI                  GCTY     15.97       -8.85
GUJARAT SIDHEE                    GSCL     59.44       -0.66
GUJARAT STATE FI                  GSF      43.60     -195.24
HIMACHAL FUTURIS                  HMFC    603.36      -13.34
HMT LTD                           HMT     316.41     -175.33
HINDUSTAN PHOTO                   HPHT     95.12     -953.35
IFB INDS LTD                      IFBI     40.50      -70.82
INDIA STEEL WORK                  ISI      56.76       -1.47
JCT ELECTRONICS                   JCTE    117.60      -50.17
JK SYNTHETICS                     JKS      20.21       -2.17
JENSON & NIC LTD                  JN       14.81      -81.79
KALYANPUR CEMENT                  KCEM     38.11      -48.48
LKP MERCHANT FIN                  LKP      29.99       -0.47
LML LTD                           LML      86.80      -27.97
LLOYDS METALS                     LYDM     76.63       -0.41
LLOYDS STEEL IND                  LYDS    392.56     -102.16
MODI RUBBER LTD                   MDR      39.76      -24.30
MAFATLAL INDS                     MFI      95.67      -85.81
MILLENNIUM BEER                   MLB      38.26       -3.52
PAREKH PLATINUM                   PKPL     59.66      -75.55
PANCHMAHAL STEEL                  PMS      51.02       -0.33
PSI DATA SYSTEMS                  PSI      11.68       -2.48
PTL ENTERPRIESES                  PTLE     54.29       -0.40
PANYAM CEMENTS                    PYC      30.24       -9.40
ROLLATAINERS LTD                  RLT      22.97      -22.24
REMI METALS GUJA                  RMM      45.06      -51.10
RPG CABLES LTD                    RPG      51.43      -20.19
SIL BUSINESS ENT                  SILB     12.46      -19.96
SANDUR MANGANESE                  SMIO     32.57       -2.61
SIMPLEX REALTY                    SPLX     16.49       -0.44
SHREE RAMA MULTI                  SRMT     71.22      -29.91
TATA TELESERVICE                  TTLS    657.28      -73.89
TVS ELECTRONICS                   TVSEL    30.73       -1.57
UB ENGINEERING                    UBE      31.43       -2.86
USHA INDIA LTD                    USHA     12.06      -54.51
JOG ENGINEERING                   VMJ      50.08      -10.08
VXL INSTRUMENT                    VXLI     12.20       -0.62
YASHRAJ CONTAINE                  YRCT     17.49       -2.09


INDONESIA

PRIMARINDO ASIA                  BIMA      10.35      -20.51
BUKAKA TEKNIK UT                 BUKK      64.09      -99.37
DAYA SAKTI UNGGU                 DSUC      30.76       -6.51
ERATEX DJAJA                     ERTX      31.06       -2.42
TITAN KIMIA NUST                 FPNI      25.81       -0.72
JAKARTA KYOEI ST                 JKSW      30.89      -41.37
KARWELL INDONESI                 KARW      32.21       -2.26
PANCA WIRATAMA                   PWSI      31.46      -31.94
STEADY SAFE TBK                  SAFE      22.30       -8.31
SURABAYA AGUNG                   SAIP     283.40      -75.78
SEKAR BUMI TBK                   SKBM      19.7 0        0
TEIJIN INDONESIA                 TFCO     266.23      -27.64
UNITEX TBK                       UNTX      16.04      -10.83


JAPAN

HEIWA OKUDA CO L                 1790      82.68       -6.66
LINK ONE                         2403      16.60       -3.12
LINK CONSULTING                  4798      50.71      -10.14
CASIO MICRONICS                  6760     184.29      -31.13
AIREX INC                        6944      44.25       -7.05
SUMIYA CO                        9939      70.82      -10.21


MALAYSIA

CNLT FAR EAST                    CNLT      42.36       -6.34
FOREMOST HLDGS                   FMST      11.04       -0.11
HARVEST COURT                    HAR       10.68       -5.71
LITYAN HLDGS BHD                 LIT       23.33      -26.71
MANGIUM INDUSTRI                 MANG      14.36      -18.65
PUTERA CAP BHD                   PCAP      10.56       -4.70
PANGLOBAL BHD                    PGL      179.11     -170.79
SUNWAY INFRASTRU                 SIB      399.84      -10.80
TECHVENTURE BHD                  TECH      37.23      -11.29
WEMBLEY INDS                     WMY      125.94     -283.62
WONDERFUL WIRE                   WW        22.80       -2.47


PHILIPPINES

APEX MINING-A                     APX      55.27       -1.97
APEX MINING 'B'                   APXB     55.27       -1.97
BENGUET CORP-A                    BC       83.36      -30.59
BENGUET CORP 'B'                  BCB      83.36      -30.59
CENTRAL AZUC TAR                  CAT      35.74       -1.80
CYBER BAY CORP                    CYBR     14.85      -74.30
FIL ESTATE CORP                   FC       43.03      -10.93
"FILSYN CORP ""A"""               FYN      24.84      -11.37
"FILSYN CORP. ""B"""              FYNB     24.84      -11.37
GOTESCO LAND-A                    GO       18.68      -10.86
GOTESCO LAND-B                    GOB      18.68      -10.86
MRC ALLIED                        MRC      14.95       -0.75
PICOP RESOURCES                   PCP     105.66      -23.33
PRIME ORION PHIL                  POPI     99.69      -82.12
EAST ASIA POWER                   PWR      72.74     -136.68
UNIVERSAL RIGHTF                  UP       45.12      -13.48
UNITED PARAGON                    UPM      27.11      -36.05
UNIWIDE HOLDINGS                  UW       65.66      -57.31
VICTORIAS MILL                    VMC     175.01      -38.64


SINGAPORE

ADV SYSTEMS AUTO                  ASA      21.96       -7.54
CHUAN SOON HUAT                   CSH      42.09       -3.64
FALMAC LTD                        FAL      10.57       -4.70
GUL TECHNOLOGIES                  GUL     172.80       -3.04
HL GLOBAL ENTERP                  HLGE    123.41       -7.36
INFORMATICS EDU                   INFO     29.09       -3.48
LINDETEVES-JACOB                  LJ      198.91      -66.97
L&M GROUP INV                     LNM      56.91      -10.59
PACIFIC CENTURY                   PAC      80.01      -10.54


SOUTH KOREA

ORICOM INC                        010470   82.65      -40.04
UNICK CORP                        011320   36.54       -4.45
STARMAX CO LTD                    017050   73.13       -5.54
DAISHIN INFO                      020180  740.5       -158.45
TONG YANG MAGIC                   023020  355.15      -25.77
NANO MINING CO L                  036270   26.64      -29.46
COSMOS PLC                        053170   19.31       -4.95
SEJI CO LTD                       053330   37.25       -0.31
MEDIACORP INC                     053890   53.31      -32.22
DAHUI CO LTD                      055250  186.00       -1.50


TAIWAN

CHIEN TAI CEMENT                 1107     213.25       -8.62
PROTOP TECHNOLOG                 2410      55.69      -13.46
YEU TYAN MACHINE                 8702      39.57     -271.07


THAILAND

BANGKOK RUBBER                    BRC      89.62      -81.26
BANGKOK RUBBER-F                  BRC/F    89.62      -81.26
BANGKOK STEEL IN                  BSI     458.73     -136.44
BANGKOK STEEL-F                   BSI/F   458.73     -136.44
CIRCUIT ELEC PCL                  CIRKIT   24.60      -94.26
CIRCUIT ELEC-FRN                  CIRKIT/F 24.60      -94.26
CENTRAL PAPER IN                  CPICO    13.25     -241.78
CENTRAL PAPER-F                   CPICO/F  13.25     -241.78
THAI-DENMARK PCL                  DMARK    19.57       -3.20
THAI-DENMARK-F                    DMARK/F  19.57       -3.20
DATAMAT PCL                       DTM      17.55       -1.72
DATAMAT PLC-F                     DTM/F    17.55       -1.72
ITV PCL                           ITV      44.70      -73.07
ITV PCL-FOREIGN                   ITV/F    44.70      -73.07
K-TECH CONSTRUCT                  KTECH/F  83.20       -5.69
NEW PLUS KNITT                    NPK      10.08       -2.03
NEW PLUS KNITT-F                  NPK/F    10.08       -2.03
KUANG PEI SAN                     POMPUI   18.78      -14.07
KUANG PEI SAN-F                   POMPUI/F 18.78      -14.07
QUALITY CONSTRUC                  QCON     76.13     -293.83
QUALITY CONSTR-F                  QCON/F   76.13     -293.83
SAFARI WORLD PUB                  SAFARI  128.58      -13.64
SAFARI WORLD-FOR                  SAFARI/F128.58      -13.64
SIAM GEN FACTOR                   SGF      30.18       -6.79
SIAM GEN FACT-F                   SGF/F    30.18       -6.79
SAHAMITR PRESSUR                  SMPC     27.26      -34.59
SAHAMITR PRESS-F                  SMPC/F   27.26      -34.59
SRI THAI FOOD &                   SRI      18.29      -43.37
SRI THAI FOOD -F                  SRI/F    18.29      -43.37
TUNTEX THAILAND                   TUNTEX  252.49      -41.58
TUNTEX THAILAN-F                  TUNTEX/F252.49      -41.58
UNIVERSAL STARCH                  USC     103.61      -48.62
UNIVERSAL STAR-F                  USC/F   103.61      -48.62


                         *********

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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