TCRAP_Public/080804.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Monday, August 4, 2008, Vol. 11, No. 153

                            Headlines

A U S T R A L I A

A.C.N 089 564 483: Joint Meeting Set for August 8
ALLCO FINANCE: Obtains Internal Approval for New Facility
ARGONAUT INTERNATIONAL: Members' Meeting Slated for August 11
DON HOWARD: Final Meeting Set for August 8
CONCORD INVESTMENTS: Final Meeting Set for August 8

MIRVAC AQUA: Freezes AU$243.3M Mortgage Funds
HIH INSURANCE: Former Auditor' Registration Cancelled
NATIONWIDE EMPLOYMENT: Members and Creditors to Meet on August 8
PACIFIC PROPERTY: Commences Liquidation Proceedings
RICHTOY PTY: Members' Meeting Slated for August 12

RIVIERA BUILDING: Joint Meeting Slated for August 11
SPENCO PTY: Members' Meeting Slated for August 8
TEG CORPORATE: Joint Meeting Set for August 8
TENMN ENTERPRISES: Members and Creditors to Meet on August 11
* AUSTRALIA: Manufacturing Slowdown Intensifies


C H I N A

CHINA CONSTRUCTION: Hires EX-VP Xin Shusen as Executive Director
CHINA EASTERN: To Resume Singapore Airlines Talks After Olympics
GREENTOWN CHINA: Wins Bid to Acquire CNY960MM Huangzhou Lot
HOPSON DEV'T: Moody's Alters Ba3 CFR Outlook to Negative


H O N G K O N G

AFFILIATED FREIGHTERS: Commences Liquidation Proceedings
CHINA CASTLE: Members' Final Meeting Set for September 1
CHINTAN INVESTMENT: Inability to Pay Debts Prompts Wind-Up
CURWIN INDUSTRIES: Members' General Meeting Set for Aug. 25
DOUBLE DELIGHT: Final General Meeting Slated for September 8

GLOBAL SILVERHAWK: Commences Liquidation Proceedings
HAN XUAN: Creditors' Meeting Slated for August 8
K.D.S. TECHNOLOGY: Creditors' Proofs of Debt Due on August 27
ROYTEL LIMITED: Requires Creditors to File Claims by August 27
SINOCAN DEVELOPMENT: Liabilities Prompts Wind-Up

* HONG KONG: Posts HK$35 Bil. Investment Loss in First-Half 2008
* HONG KONG: Records HK$16.5 Bil. Deficit in 1Q of FY2008


I N D I A

CONTEC AIRFLOW: CRISIL Rates Proposed Rs. 100 Mil. Loans at 'BB'
INDOCOUNT INDUSTRIES: CARE Cuts Rating on Rs.30 crore NCDs to BB
POSHS METAL: CRISIL Rates Rs. 140 Mil. Facilities at 'BB+'
REAL LINES: RBI Cancels Certificate of Registration
VASU ESTATES: RBI Cancels Certificate of Registration


I N D O N E S I A

PERUSAHAAN LISTRIK: To Receive US$900MM Loan for Power Project
* INDONESIA: Sells IDR7.3 Tril. Worth of Debts


J A P A N

EPCOS AG: TDK Tender Offer Cues S&P to Put BB+ Rating on Watch


K O R E A

MERIDIAN CO: Losses & Negative Working Capital Cue Going Concern
* KOREA: Moody's Says Korean Banks Still Face Tight Liquidity


N E W  Z E A L A N D

AMP CAPITAL: Suspends Activity in Unlisted Property Fund
BLAIRWASH LTD: Proofs of Debt Due on August 8
FAST MEDIAFLEX: Liquidators Set August 15 as Claims Bar Date
HEARTLAND HOSPITALITY: Proofs of Debt Due on August 15
IYOMU LTD: Proofs of Debt Due on August 15

PLANTECH CONSULTING: Liquidator Sets Aug. 1 as Claims Bar Date
PHOENIX JOINERY: Liquidator Sets August 8 as Claims Bar Date
PROTRAC INTERNATIONAL: Wind-Up Petition Hearing Set for August 6
SELDIS LTD: Proofs of Debt Due on August 11
WILD KATIPO: Liquidator Sets August 8 as Claims Bar Date


P H I L I P P I N E S

* PHILIPPINES: M3 Decelerates in April, Expands Anew in May
* PHILIPPINES: Bank Lending Growth Accelerates in May


S I N G A P O R E

FASTECH SYNERGY: Posts US$220,000 Net Loss in Qtr. Ended June 30
JETS TECHNICS: Incurs HK$36.93MM Net Loss in Year Ended May 31


T A I W A N

UNION BANK: Fitch Holds and Withdraws 'D/E' Individual Rating
UNION BILLS: Fitch Holds & Withdraws 'BB-' Long-Term ID Rating


                         - - - - -

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

A.C.N 089 564 483: Joint Meeting Set for August 8
-------------------------------------------------
A.C.N 089 564 483 Pty Ltd  fka Rutland Electrical Services Pty
Ltd will hold a joint meeting for its members and creditors at
11:00 a.m. on Aug. 8, 2008.  During the meeting, the company's
liquidator, Robert Elliott at Hall Chadwick, will provide the
attendees with property disposal and winding-up reports.

The company's liquidator can be reached at:

          Robert Elliott
          Hall Chadwick
          Level 29, 31 Market Street
          Sydney NSW 2000
          Australia


ALLCO FINANCE: Obtains Internal Approval for New Facility
---------------------------------------------------------
Allco Finance Group disclosed that its twelve syndicate banks
have all obtained their required internal approvals for the new
facility.  The facility remains subject to final documentation.

Allco stated that the new senior debt facility will replace the
company's existing senior debt facilities and match the
outstanding drawings at the time of financial close of the new
facility.

Given that final documentation has not been completed, an
extension of the existing senior debt facilities has been agreed
to August 14, 2008.

Allco also confirms that it continues to reduce its borrowings,
with senior debt facilities now at AU$691 million following
further debt repayments in July.  This brings the total
reduction in senior debt and contingent commitments since April
to AU$363.6 million.

                       AU$400 Million New
                      Senior Debt Facility

As reported in the Troubled Company Reporter Asia Pacific on
July 16, 2008, Allco has reached agreement with its banking
syndicate on the terms of the new senior debt facility, subject
to the documentation of those terms and the 12 syndicate banks
obtaining their required internal approvals.

The new agreement runs to September 2009 and does not contain
any market capitalization review clauses.

The key terms of the new senior debt facility are:

   * A maturity of September 30, 2009;

   * an agreed repayment schedule that results in
     senior debt of AU$400 million by June 2009;

   * a margin above the relevant currency borrowing
     reference rate (for AU$: BBR, for Euro: EURIBOR,
     for US$: LIBOR) that reduces as the level of the
     senior debt facility is reduced.

The margin will be:

   Principal                     Margin %p.a. Above relevant
   Outstanding                   borrowing reference rate
   -----------                   ---------------------------

   AU$600 million or greater               3.50%

   Less than AU$600 million but
   equal to or greater than AU$400         3.00%

   Less than AU$400 million                2.75%


                       About Allco Finance

Allco Finance Group Ltd. (ASX: AFG) -- http://www.allco.com.au/
-- is an integrated global financial services business,
specializing in asset origination, funds creation and funds
management.  The company is a fund manager of alternative assets
in its core asset classes, which include aviation, rail,
shipping, infrastructure, property, private equity and financial
assets.  Its primary focus is on commercial property,
predominately completed office buildings and select development
opportunities.  It also purchases new and existing commercial
passenger and cargo aircraft for lease to commercial airlines.
In March 2007, Allco HIT Limited acquired Momentum Investment
Finance Pty Limited, Allco Financial Services and International
Mezzanine Funds Management (Australia) Limited.  The company is
a vendor of Momentum Investment Finance Pty Limited and Allco
Financial Services.  In July 2007, it acquired Allco Equity
Partners Ltd.  In December 2007, it completed the acquisition of
the remaining 79.6% stake of Rubicon Holdings(Aust) Limited.


                          *     *     *

Published reports said that Allco is in the brink of insolvency
and is currently negotiating a new business plan that will avoid
putting its operations in the hands of administrators.

As reported in the Troubled Company Reporter-Asia Pacific, Allco
Finance Group has until July 31, 2008, to pay its AU$250 million
bridge facility.

Allco's managed vehicle, Rubicon American Trust, anticipated
breach of financial covenants as a consequence of its asset
revaluations.  The Trust, citing continued dislocation of global
credit markets and the consequential negative impact on asset
valuations, reduced the value of its real estate portfolio as of
June 30, 2008, by approximately US$97.5 million (or 7%).

As reported in the Troubled Company Reporter-Asia Pacific on
July 18, 2008, Rubicon agreed to sell its GSA I portfolio, a 14
property portfolio covering 3.1 million square feet, to Urban
America for US$515.0 million.  The sale is projected to close on
September 15, 2008.  It is anticipated that the net proceeds,
after providing for taxes payable, will be applied to reduce
Rubicon's overall borrowing.


ARGONAUT INTERNATIONAL: Members' Meeting Slated for August 11
-------------------------------------------------------------
G. J. Parker, Argonaut International Pty Ltd's state liquidator,
will meet with the company's members at 11:0 a.m. on Aug. 11,
2008, to provide them with property disposal and winding-up
reports.

The liquidator can be reached at:

          G. J. Parker
          Parker Insolvency
          Level 5
          49 Market Street
          Sydney NSW 2000
          Australia


DON HOWARD: Final Meeting Set for August 8
------------------------------------------
Brendan Jones, Don Howard Pty Ltd's state liquidator, will meet
with the company's members at 9:00 a.m. on Aug. 8, 2008, to
provide them with property disposal and winding-up reports.  The
meeting will be held at Level 22, MLC Centre, 19 Martin Place,
in Sydney.


CONCORD INVESTMENTS: Final Meeting Set for August 8
---------------------------------------------------
Brendan Jones, Concord Investments Pty Ltd's state liquidator,
will meet with the company's members at 9:00 a.m. on Aug. 8,
2008, to provide them with property disposal and winding-up
reports.  The meeting will be held at Level 22, MLC Centre, 19
Martin Place, in Sydney.


MIRVAC AQUA: Freezes AU$243.3M Mortgage Funds
---------------------------------------------
In a letter to its investor, Mirvac AQUA Pty Limited CEO Stephen
Tunley disclosed that with immediate effect all applications and
redemptions for all Mirvac AQUA Funds are suspended for up to
six months, and that the Mirvac AQUA Income Fund Product
Disclosure Statement has been withdrawn from the market.

                    Current State of Global
                          Credit Markets

The virtual closure of securitisation markets has impacted the
cost of funds to the banking sector and has caused the business
failure of numerous securitised lenders.  The consequences are
far reaching, but include:

   -- the banks are now free to pass on their cost of
      fund increases without effective competition from
      non-bank lenders, which has increased the cost
      of money and effectively decoupled interest
      margins from official interest rates;

   -- the banks concerns over their own capital adequacy
      is beginning to force banks to ration lending;

   -- some mortgage fund lenders have experienced
      significant net outflows and also commenced
      either rationing or stopping lending; and

   -- the ability of borrowers to finance or refinance
      their mortgage loans has become severely
      restricted and considerably more expensive if
      they are successful.

These events have clearly impacted the direct property markets.
There has been much speculation about the direction of property
values in the period ahead although it is widely thought that
the supply and demand fundamentals will substantially mitigate
the extent of any debt-led downturn.  Despite the somewhat
uncertain future of the property markets, the company considers
that the current global debt market has created an extraordinary
period for the fund/pools to lend both at historically high
returns and historically low risk profiles.  Whilst remaining
cognisant of market risk, Mirvac AQUA believes that new lending
is now able to be conducted on terms and returns that are more
favourable to investors than it has seen for nearly 20 years.

                   Impact on Mirvac AQUA Funds

Given the current market conditions, the company said it is
undertaking a "stress testing" of its loan portfolios.  In early
July, Mirvac AQUA appointed a Receiver and Manager to one of
these loans.  As a result of this, the company determined that
several loans contained in the Mezzanine Debt Pool (into which
the High Income Fund and Enhanced Income Fund directly invest)
are impaired.  These impairments may result in losses of
interest and/or principal.  The impaired loans total AU$39
million in value and comprises 20.4% of the total assets (cash
and mortgages) of the High Income Fund and10.5% (cash and
mortgages) of the Enhanced Income Fund.  For the purpose of
clarity the company does not believe that the entire value of
these impaired loans is at risk of principal loss.

The loans are registered second mortgage/mezzanine loans secured
over either completed or largely completed developments.
Ordinarily on loans of this type, interest is capitalised to the
end of the loan term but accrued and distributed monthly.  These
loans have been placed on non-accrual and as such the interest
that might otherwise have been paid to investors will not be
paid.

Consequently, effective from the July distribution, the company
expects the returns from the High Income Fund will decline to
between 5% and 6% per annum, until such time as the loans are
repaid, and/or the interest received from new loans restores the
Fund and Pool returns to higher levels.  The Enhanced Income
Fund will be also be impacted, however, the company does expect
that the returns will decline less, to between 6% pa and 7% per
annum.  The company advises that there is no impact on the
returns to the Income Fund or the value of its unit price.

The Responsible Entity, Mirvac Funds Management Limited (RE),
the company and the Mirvac AQUA credit team are reviewing the
loans in detail to determine the likely impact on returns to the
affected Funds and Pool, the likely timing until the status of
these loans is definitively ascertained, whether there is a need
for any capital provisions and the most appropriate method of
managing these loans in the best interest of unit holders.

It is worth noting that the Mirvac AQUA Funds hold substantial
levels of cash, as noted below as at July 25, 2008.

                               Liquidity(on look
                               through basis),
                               express as a% of
   Mirvac AQUA       Fund      total Funds Under
   Fund              Size      Management (FUM)      Cash
   --------------------------------------------------------
   Income Fund       AU$54m        26.6%           AU$14.4m

   Enhanced Income
   Fund              AU$6.3m       43.7%           AU$ 2.8m


   High Income Fund  AU$183m       51.6%           AU$94.7m
   --------------------------------------------------------

                Withdrawal of PDS and Process
               for Applications and Redemptions

The company said to ensure that all unit holders are treated
equally and fairly given the above circumstances the RE has
determined to withdraw the PDS from the market with immediate
effect from July 30, 2008, and to suspend applications and
redemptions for a period of up to six months in accordance with
the Constitution.  This will enable the company to address both
the loan performance issues and to restore value to the Funds /
Pools investors.

It should be noted that applications and redemptions received on
July 25, 2008, have not been processed.  Application monies will
be returned immediately and the redemptions will be placed on
file for redemption when the Fund/Pool in question re-opens at
the unit price prevailing on that day.  Letters will be written
to these investors, informing them of the actions and allowing
them the opportunity to retain or withdraw their redemptions
request.

The portfolio review will be concluded as quickly as possible
and the company will write to Unit Holders within two months to
discuss the portfolio in more detail and the company's
strategies to both manage and deliver value to unit holders.

Whilst investors in the Mirvac AQUA Income Fund have no exposure
to the impaired loans, the RE is aware that there are a high
proportion of investors with investments in both the Mirvac AQUA
Income Fund and the Mirvac AQUA High Income Fund.  Given this
the RE recommends that it is also in the best interest of all
unit holders to suspend applications and redemptions in all of
the Mirvac AQUA funds for up to six months.

                       About Mirvac AQUA

Mirvac AQUA Pty Limited -- http://www.mirvacaqua.com.au/-- is
an investment management company, which is a partnership between
a member of the Mirvac Group and a member of Balmain NB
Commercial Mortgages Limited.

Mirvac AQUA is an investment manager of mortgage investments and
through its relationship with Mirvac Funds Management Limited,
also a member of the Mirvac Group, is the investment manager for
the Mirvac AQUA Income Fund, Mirvac AQUA Enhanced Income Fund
and Mirvac AQUA High Income Fund.  Mirvac Aqua is responsible
for managing the investments of the Funds in line with their
investment strategies and benchmarks.


HIH INSURANCE: Former Auditor' Registration Cancelled
-----------------------------------------------------
The Australian Securities & Investment Commission has accepted
an enforceable undertaking from the former partner of Arthur
Anderson and auditor of HIH Insurance Ltd, John Buttle.

Mr. Buttle, of Sydney, was the engagement partner for the audit
of HIH's financial report for the year ended June 30, 2000, and
signed an unqualified audit report with an emphasis of matter in
relation to reinsurance.

The Royal Commission was established in 2001 to investigate and
report on the collapse of HIH, and delivered its report -- The
Failure of HIH Insurance -- in April 2003.  While the HIH Royal
Commission found deficiencies in Mr. Anderson's audit work in
relation to the HIH 2000 financial year report, it acknowledged
Mr. Buttle's emphasis of matter in the HIH 2000 audit financial
statements and his insistence that the HIH Board report the
Pacific Eagle transaction to ASIC.

As a result of investigations and the findings of the HIH Royal
Commission, ASIC formed a view that the audit of HIH for 2000
was inadequate in that:

   * Mr. Anderson failed to properly manage the risk
     associated with the HIH audit contrary to auditing
     standards and its own audit procedures manual; and

   * Mr. Anderson's audit working papers did not contain
     sufficient appropriate audit evidence regarding
     future income tax benefits, income tax balances,
     the assessment of the recoverable amount of deferred
     acquisition cost, or to resolve the doubt and
     uncertainty as to the appropriateness of the going
     concern assumption.

The enforceable undertaking was offered after ASIC expressed
concerns that Mr. Buttle may have failed to carry out or perform
adequately and properly the duties of an auditor in relation to
the 2000 audit of HIH.

The enforceable undertaking provides for Mr. Buttle's
registration as an auditor to be cancelled and for him not to
apply for re-registration until after March 1, 2010.  In
agreeing to this enforceable undertaking, ASIC has taken into
account that Mr. Buttle has not signed any audit reports since
2004, is currently not practising as a registered company
auditor, and provided ASIC with statements relevant to criminal
proceedings following its investigations into the collapse of
HIH.

                      About HIH Insurance

HIH Insurance Limited was a publicly listed company in
Australia.  Prior to its collapse in 2001, the HIH Group was the
second largest general insurer in Australia and had operations
in many other countries.

On March 15, 2001, HIH Insurance Limited and a number of its
subsidiaries were placed into provisional liquidation.
Subsequently, on August 27, 2001, the companies that were in
provisional liquidation were placed into liquidation.

Schemes of Arrangement are now in place for eight of those
companies.  The eight licensed insurance companies within the
group were placed into Schemes of Arrangement in Australia  on
May 30, 2006.  Four of these companies were also placed into
Schemes of Arrangement in the UK on June 13, 2006.

The Scheme Administrators have made initial payments to certain
creditors and will make further payments over the coming years,
HIH said on its Web site.


NATIONWIDE EMPLOYMENT: Members and Creditors to Meet on August 8
----------------------------------------------------------------
Nationwide Employment Agencies Pty Ltd  will convene a final
meeting for its members and creditors at 10:00 a.m. on Aug. 8,
2008.  During the meeting, the company's liquidator, Nick
Malanos at Worrells Solvency & Forensic Accountants, will
provide the attendees with property disposal and winding-up
reports.

The company's liquidator can be reached at:

          Nick Malanos
          Worrells Solvency & Forensic Accountants
          Level 3
          333 George Street
          Sydney, NSW
          Australia


PACIFIC PROPERTY: Commences Liquidation Proceedings
---------------------------------------------------
Pacific Property Investments Pty Ltd's members agreed on
June 24, 2008, to voluntarily liquidate the company's business.
S. J. Hundy and E. M. Senatore were appointed to facilitate the
sale of its assets.

The liquidator can be reached at:

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


RICHTOY PTY: Members' Meeting Slated for August 12
--------------------------------------------------
Simon M. Dorahy, Richtoy Pty Ltd's state liquidator, will meet
with the company's members at 10:0 a.m. on Aug. 12, 2008, to
provide them with property disposal and winding-up reports.  The
meeting will be held at Suite 801, Level 8, 140 Arthur Street in
North Sydney.

The liquidator can be reached at:

          Simon M. Dorahy
          Suite 801, Level 8
          140 Arthur Street
          North Sydney NSW 2060


RIVIERA BUILDING: Joint Meeting Slated for August 11
----------------------------------------------------
Riviera Building Services Pty Ltd will hold a final meeting for
its members and creditors at 10:00 a.m. on Aug. 11, 2008.
During the meeting, the company's liquidator, Geoffrey Mcdonald
at Hall Chadwick, will provide the attendees with property
disposal and winding-up reports.

The company's liquidator can be reached at:

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


SPENCO PTY: Members' Meeting Slated for August 8
------------------------------------------------
M. E. Slaven, Spenco Pty Ltd's state liquidator, will meet with
the company's members at 10:0 a.m. on Aug. 8, 2008, to provide
them with property disposal and winding-up reports.

The liquidator can be reached at:

          Kazar Slaven
          Chartered Accountants
          Unit 12, Level 3
          Engineering House, 11 National Circuit
          Barton ACT
          Australia
          Telephone (02) 6285 1310


TEG CORPORATE: Joint Meeting Set for August 8
---------------------------------------------
TEG Corporate Integrity Pty Ltd  will hold a joint meeting for
its members and creditors at 10:00 a.m. on Aug. 8, 2008.  During
the meeting, the company's liquidator, Robert Elliott at Hall
Chadwick, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Robert Elliott
          Hall Chadwick
          Level 29, 31 Market Street
          Sydney NSW 2000
          Australia


TENMN ENTERPRISES: Members and Creditors to Meet on August 11
-------------------------------------------------------------
Tenmn Enterprises Pty Ltd  will convene a final meeting for its
members and creditors at 10:00 a.m. on Aug. 11, 2008.  During
the meeting, the company's liquidator, Blair Pleash at Hall
Chadwick, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Blair Pleash
          Hall Chadwick
          Level 29, 31 Market Street
          Sydney NSW 2000
          Australia


* AUSTRALIA: Manufacturing Slowdown Intensifies
-----------------------------------------------
Manufacturing activity continued to weaken in July, with the
Australian Industry Group - PricewaterhouseCoopers Australian
Performance of Manufacturing Index Australian PMI(R) recording a
reading of 46.9, little changed from the 47.0 points in June.
The index remains below the key 50.0 level separating expansion
from contraction.

Australian Industry Group (Ai Group) Chief Executive, Heather
Ridout, said, "The continuing weakness of manufacturing activity
is not surprising given that the sector, and the economy more
generally, is feeling the ongoing impacts of the Reserve Bank's
tightening of monetary policy as well as market based rate
rises.

"The July outcome reflects a decline in production, employment
and new orders.  Inventories were run down significantly,
suggesting continuing weaker demand and the potential for
further falls in production.  This, together with another fall
in new orders, indicates that activity will continue to be soft
in the near term," Mrs. Ridout said.

PricewaterhouseCoopers Global Leader of Industrial
Manufacturing, Graeme Billings, said, "The decline in the
Australian PMI(R) for July and the factors which are driving it
show that manufacturing profitability is under sustained
pressure.

"The pressures flowing from slower market growth, rising input
costs and the ongoing strength in the Australian dollar are a
mix of both cyclical and long-term factors affecting profit
margins.  Manufacturers need to make a sustained long-term
commitment to managing costs, raising productivity and growing
market share to ensure growth through this tight phase of the
economic cycle and sustained profitability over the long-term,"
Mr. Billings said.



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

CHINA CONSTRUCTION: Hires EX-VP Xin Shusen as Executive Director
----------------------------------------------------------------
China Construction Bank has appointed Ex-Vice President Xin
Shusen as executive director of the firm, Edwin Chan of Reuters
reports.

According to the report, Ms. Shuse, an economist by training who
has served the bank in various capacities, had been a vice
president since July 2005.  She began her new appointment on
July 21.

The China Construction Bank -- http://www.ccb.cn/-- is one of
the "big four" banks in the People's Republic of China.  It was
founded on October 1, 1954, under the name of "People's
Construction Bank of China" and later changed to "China
Construction Bank" on March 26, 1996.

                          *     *     *

As of March 5, 2008, China Construction Bank carries Moody's
"D-" bank financial strength rating.  Moody's Bank Financial
Strength Ratings (BFSRs) represent Moody's opinion of a bank's
intrinsic safety and soundness and, as such, exclude certain
external credit risks and credit support elements that are
addressed by Moody's Bank Deposit Ratings.


CHINA EASTERN: To Resume Singapore Airlines Talks After Olympics
----------------------------------------------------------------
China Eastern Airlines will continue with talks to sell a stake
to Singapore Airlines after the Olympic Games, Reuters reports.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 10, 2008, nearly 78% of China Eastern shareholders rejected
a bid by Singapore Airlines and Temasek Holding Pte Limited to
buy a minority stake in China Eastern after rival Air China and
its parent, China National Aviation Corp., pledged a higher
offer.  However, on Feb. 25, China Eastern rejected Air China's
proposal and pledged to instead continue seeking another
strategic investor.

According to XFN-ASIA, Luo Zhuping, China Eastern board
secretary, said the current agreement to tie up with Singapore
Airlines will expire on August 9, but it can be extended.
"Introducing Singapore Airlines can help us improve our
financial standing and enhance service quality," he said.

Singapore Airlines spokesman Stephen Forshaw, Associated Press
relates, said the two airlines, which have cooperation
agreements as well, were in contact.  "As we have already
outlined, we maintain a dialogue with China Eastern Airlines,"
he said.

According to the Press, like most airlines, China Eastern is
suffering from surging fuel prices at a time of slackening
demand.

Although the airline reported a net profit of US$83.8 million in
2007, its management has been seeking strategic investors after
accumulating huge debts from losses in previous years, AP says.
AP relates that the airline's ratio of liabilities to assets was
a perilous 95%.

"Injecting capital, by a merger or other means, can help us tide
over difficult times,"  XFN-ASIA cited Mr. Zhuping as saying.

                       About China Eastern

Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- principal
activity is operation of domestic and international commercial
air transportation.  The Group also is involved in the common
aircraft industry.  Other activities include general aviation,
air catering, advertisement, import and export, equipment
manufacturing, real estate, hotel business, finance and
training.  The fleet includes more than 60 large and medium size
airplanes, Airbus and Boeing mostly.  Its operation centering
from Shanghai to the whole People's Republic of China and
linking to Asia, Europe, America and Australia.

                          *     *     *

On April 28, 2006, Fitch Ratings downgraded China Eastern's
foreign currency and local currency issuer default ratings to B+
from BB-.  Fitch said the outlook on the IDRs is stable.

On November 16, 2005, Xinhua Far East China Ratings gave the
company a BB+ issuer credit rating with a stable outlook.

All ratings still hold to date.


GREENTOWN CHINA: Wins Bid to Acquire CNY960MM Huangzhou Lot
-----------------------------------------------------------
Greentown China Holdings Limited won the bid for a land lot in
Hangzhou at a cost of CNY960 million, SinoCast News reports.

The company, the report relates, had only one competitor for the
land.  Greentown China acquired it after 12 rounds of bidding,
with a final price of CNY6.2 million higher than the starting
price, the report notes.

According to the report, the floor price of land lot was about
CNY 7,750 per square meter, compared to the company's two land
lots north of this one, which were priced at CNY 10,666 per
square meter in terms of floor area. The floor price of
Greentown China's another land lot east of the newly purchased
one was about CNY 8,260 per square meter, the report says.

SinoCast adds that the decrease in the prices mirrors the
declining Hangzhou real estate market, where a large number of
new homes are to be supplied, but many consumers hold a wait-
and-see attitude for home purchase.

                     About Greentown China

Greentown China Holdings Limited is a residential property
developer in China.  The company has operations in Shanghai,
Beijing and other selected cities across the country, including
Hefei in Anhui Province, Changsha in Hunan Province and Urumqi
in Xinjiang Uygur Autonomous Region.  It develops residential
properties targeting middle- to higher-income residents in
China. The company has three main product series: villas, which
are typically independent houses with one or two storeys; low-
rise apartment buildings, which are typically 3 to 5 storeys,
and high-rise apartment buildings, which are typically higher
than six storeys.  Many of its residential developments are
integrated residential complexes, which typically have a total
site area over 150,000 square meters, and offer a combination of
different product series with ancillary facilities, such as
clubhouses, kindergartens and grocery stores.

                          *     *     *

The TCR-AP reported on May 9, 2008, that Moody's Investors
Service has changed to negative from stable its outlook for
Greentown China Holdings Ltd's (Greentown) Ba3 corporate family
rating and senior unsecured bond rating.

On Dec. 5, 2007, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Greentown China Holdings
Ltd. to 'BB-' from 'BB'.  The outlook is stable.  At the same
time, Standard & Poor's lowered the long-term debt ratings on
the company's US$400 million senior unsecured notes and its
CNY2.31 billion convertible notes to 'BB-' from 'BB'.


HOPSON DEV'T: Moody's Alters Ba3 CFR Outlook to Negative
--------------------------------------------------------
Moody's Investors Service has changed to negative from stable
its outlook for Hopson Development Holdings Ltd's Ba3 corporate
family and senior unsecured bond ratings.

This rating action follows Hopson's announcement that it has
purchased a piece of land of about 1.8 million square meters in
Huizhou, China at a cost of RMB772 million.

"The negative outlook reflects Moody's concern that the
company's land acquisition strategy will pressure its balance
sheet liquidity and will increase its financial leverage," says
Peter Choy, a Moody's Vice President and Senior Credit Officer.

"The additional land premium payment and related development
costs will stress the company's liquidity profile -- at a time
when it already has a significant committed land payments and
operating expenses to serve in the next 12 months," says Choy.

"Hopson has to achieve ambitious pre-sales target to cover its
funding requirement, which remains a challenge in view of the
current tight property market.  In addition, further drawdown of
debts to fund its committed land payments will likely increase
its financial leverage in the near term," adds Choy.

The ratings would be downgraded if Hopson

(1) continues its aggressive land acquisition strategy further
    pressuring its liquidity position;
(2) sees its balance sheet liquidity decline due to slow sales,
    tighter bank credit or higher increased land payments;
    and/or
(3) experiences weakening credit metrics, as measured by
    Adjusted Debt to Capitalization ratio remaining at above 55%
    or EBITDA/interest dropping below 3x.

The rating outlook would return to stable if Hopson

(1) achieves its sales target and improves its balance sheet
    liquidity; and
(2) demonstrates financial discipline in its land acquisition
    strategy, such that its Adjusted Debt to Capitalization
    ratio can be sustained at a level below 45-50%.

                  About Hopson Development

Hopson Development Company Holdings Ltd is one of the largest
property developers in China.  Its principal businesses are
residential developments in 4 major cities -- Guangzhou,
Beijing, Shanghai and Tianjin -- and their surrounding areas.



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

AFFILIATED FREIGHTERS: Commences Liquidation Proceedings
--------------------------------------------------------
At an extraordinary general meeting held on July 25, 2008, the
members of Affiliated Freighters Limited resolved to voluntarily
wind up the company's operations.

Creditors are required to file their proofs of debt by Sept. 3,
2008, to be included in the company's dividend distribution.

The company's liquidator is:

          Yip Pui Yee
          Prosperous Commercial Building, 24th Floor
          54-58 Jardine's Bazaar
          Causeway Bay
          Hong Kong


CHINA CASTLE: Members' Final Meeting Set for September 1
--------------------------------------------------------
A final general meeting will be held for the members of China
Castle Industries Limited on September 1, 2008, at 10:00 a.m.,
at Room 1606, 16th Floor of New Tech Plaza, No. 34 Tai Yau
Street, San Po Kong in Kowloon, Hong Kong.

At the meeting, Tsoi Fung Kei, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.


CHINTAN INVESTMENT: Inability to Pay Debts Prompts Wind-Up
----------------------------------------------------------
At an extraordinary general meeting held on July 18, 2008, the
members of Chintan Investment Limited resolved to voluntarily
liquidate the company's business due to its inability to pay its
debts.

The company's liquidator is:

          Chui Chi Yun, Robert
          China Resources Building, Room 2109
          26 Harbour Road
          Wanchai, Hong Kong


CURWIN INDUSTRIES: Members' General Meeting Set for Aug. 25
-----------------------------------------------------------
The members of Curwin Industries Limited will hold their final
general meeting on August 25, 2008, at 10:00 a.m., to receive
the liquidators' report on the company's wind-up proceedings and
property disposal.

The meeting will be held at Room 904-908 of Kai Tak Commercial
Building, 317-319 Des Voeux Road in Central, Hong Kong.


DOUBLE DELIGHT: Final General Meeting Slated for September 8
------------------------------------------------------------
The members of Double Delight Investment Company Limited will
hold its final general meeting on September 8, 2008, at
10:00 a.m., at Suite 3202, 32nd Floor of Central Plaza, 18
Harbour Road in Wanchai, Hong Kong.

At the meeting, Chung Kwok Keung Peter, the company's
liquidator, will give a report on the company's wind-up
proceedings and property disposal.


GLOBAL SILVERHAWK: Commences Liquidation Proceedings
----------------------------------------------------
The members of Global Silverhawk Limited met on July 31, 2008,
and resolved to voluntarily liquidate the company's business.
Yau Tsz Sang was appointed as liquidator.

The company's Liquidator can be reached at:

          Yau Tsz Sang
          Tai Tung Building
          Room 1204-5, 12th Floor
          No. 8 Fleming Road
          Wanchai, Hong Kong


HAN XUAN: Creditors' Meeting Slated for August 8
-------------------------------------------------
The creditors of Han Xuan International Development Limited will
meet on August 8, 2008, at 3:00 p.m., at Suite 904, 9th Floor of
Kowloon Building, 555 Nathan Road, in Kowloon, Hong Kong.

At the meeting, the creditors will be asked to appoint a
liquidator and consider further matters relevant to the
creditors' voluntary wind-up.


K.D.S. TECHNOLOGY: Creditors' Proofs of Debt Due on August 27
-------------------------------------------------------------
The creditors of K.D.S. Technology Limited are required to file
their proofs of debt by August 27, 2008, to be included in the
company's dividend distribution.

The company's liquidator is:

          Chak Chun Keung, Thomas
          Alliance Building, Room 603
          130-136 Connaught Road Central
          Hong Kong


ROYTEL LIMITED: Requires Creditors to File Claims by August 27
--------------------------------------------------------------
Roytel Limited requires its creditors to file their proofs of
debt by August 27, 2008, to be included in the company's
dividend distribution.

The company's liquidator is:

          Chak Chun Keung, Thomas
          Alliance Building, Room 603
          130-136 Connaught Road Central
          Hong Kong


SINOCAN DEVELOPMENT: Liabilities Prompts Wind-Up
------------------------------------------------
At an extraordinary general meeting held on July 23, 2008, the
members of Sinocan Development Limited agreed to voluntarily
wind up the company's operations.

The company's liquidators are:

          Lai Kar Yan (Derek)
          Yeung Lui Ming (Edmund)
          One Pacific Place, 35th Floor
          88 Queensway
          Hong Kong


* HONG KONG: Posts HK$35 Bil. Investment Loss in First-Half 2008
----------------------------------------------------------------
HONG Kong's Exchange Fund, the US$181 billion pool of assets
that backs the city's currency, recorded an investment loss of
HK$35 billion (US$4.5 billion) in the first half due to declines
in global equities, Sinocast News reports.

Hong Kong Monetary Authority, the report relates, said the funds
used to defend the local currency's peg to the dollar, lost
HK$32.1 billion from investments in Hong Kong equities.


* HONG KONG: Records HK$16.5 Bil. Deficit in 1Q of FY2008
---------------------------------------------------------
The Hong Kong Special Administrative Region government recorded
a deficit of HK$10.8 billion (US$1.38 billion) for June,
resulting in a deficit of HK$16.5 billion for the quarter that
ended on June 30, Xinhua News reports, citing the Census and
Statistics Department.

According to the report, the Financial Services and the Treasury
Bureau said the government collected HK$10.2 billion in revenue
and spent HK$21 billion in June.  The deficit was attributable
to some major revenue items including salaries and profits taxes
were mostly received towards the end of the financial year,
which starts in April, it said.

Spending for the first April-June quarter was HK$59.7 billion
and revenue was HK$43.2 billion HK dollars, the report notes.

Xinhua News adds that fiscal reserves stood at HK$476.4 billion
at the end of June.



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

CONTEC AIRFLOW: CRISIL Rates Proposed Rs. 100 Mil. Loans at 'BB'
----------------------------------------------------------------
CRISIL has assigned its rating of 'BB/Stable/P4' to the various
bank facilities of Contec Airflow Engineers Pvt Ltd (Contec).

  Rs.45.6 Million Proposed Term Loans     BB/Stable(Assigned)
  Rs.50.0 Million Proposed Cash Credit     BB/Stable(Assigned)
  Rs.10.0 Million Proposed Letter of Credit*      P4(Assigned)

* Interchangable with Bank Guarantee

The rating reflects Contec's weak financial flexibility on
account of small size of operations and limited net worth, its
high dependence on the pharmaceutical sector for revenues, and
the expected weakening in its financial risk profile owing to
debt-funded capital expenditure.  These weaknesses are, however,
partly mitigated by the promoters' technical and engineering
expertise in designing projects.

Outlook:

CRISIL believes Contec to maintain its current business risk
profile.  The outlook may be revised to 'Positive' if Contec's
financial profile improves substantially from the current
levels.  Conversely, any significant debt-funded capital
expenditure further deteriorating the financial risk profile
could result in the outlook being revised to 'Negative'.

                          About Contec

Incorporated in 2007 by Mr. C Ramakrishna, Contec is engaged in
the design consulting & commissioning of Heating, Ventilating &
Air-conditioning (HVAC) projects.  Mr. Ramakrishna, an M Tech in
refrigeration engineering, has rich industry experience of more
than 25 years; he has now been joined in business by his two
sons, Mr. Pawan Kumar and Mr. Anil Kumar, both of whom are
engineers.


INDOCOUNT INDUSTRIES: CARE Cuts Rating on Rs.30 crore NCDs to BB
----------------------------------------------------------------
CARE revised the rating assigned to the NCDs (non-convertible
debentures) aggregating to Rs.30 crore of Indo Count Industries
Limited (ICIL), to 'CARE BB' [double B] from 'CARE BBB+' [triple
B plus].

The NCDs would be redeemable in three equal annual instalments
ending March 2012. Further, CARE decided to revise the rating
for long-term bank facilities aggregating to Rs 243 crore, from
'CARE BBB+' [triple B plus] to 'CARE BB' [double B].

The long-term rating is applicable to facilities having a tenure
of over one year.  Facilities with this rating are considered to
offer inadequate safety for timely servicing of debt
obligations.  Such facilities carry high credit risk.

CARE also decided to revise the rating of short-term bank
facilities aggregating to Rs 20 crore from 'PR3+' [PR three
plus] to 'PR4' [PR four].  The short-term rating is applicable
for facilities having tenure up to one year.  Facilities with
this rating would have inadequate capacity for timely payment of
short-term debt obligations and carry very high credit risk.
Such facilities are susceptible to default.

The rating action takes into account deteriorating financial
condition and cash losses for the year ended March 31, 2008
leading to delay in debt servicing obligations.  The ratings
also factor in unfavourable industry scenario resulting from
high cotton (raw material) prices, slowing export markets and
exposure to currency risk on account of high export orientation.
Further, the financial risk profile of the company is highly
geared on account of debt funded expansion undertaken in the
past.

The company was originally incorporated in November 1988, with a
view to set up a 100% export oriented combed cotton yarn
spinning unit.  With a view to diversify its operations, ICIL
ventured into assembly of consumer electronic items from October
2004.

In March 2007, it started commercial production of its home
textiles division, as a step towards forward integration of its
spinning division.  In September 2007, ICIL acquired a sick unit
- M/s Pranavaditya Spinning Mills Ltd. (PSML) by lending
management and financial support.  ICIL invested Rs 15 crore
towards OTS (one time settlement) with bankers of PSML and
PSML's capacities are planned to be augmented so as to make the
operations profitable.

ICIL, enjoying an EOU (export oriented unit) status, has
operations spanning three business segments- spinning (cotton
yarn), electronic manufacturing services (EMS) and home
textiles.  Exports form a major portion of textile sales and can
be a cause for concern in the current scenario of currency
fluctuations and slowing export markets.  ICIL converted its
status partially to domestic tariff area (DTA) in March 2008 and
can sell in the domestic market without paying additional
duties.  The success however will depend on ICIL's ability to
break through already established players in the domestic home
textiles market.  Home textiles division commenced commercial
operations in March 2007 and ICIL may also take some time to
establish itself in the major global home textiles markets.
Sales from the EMS segment reduced from Rs 128 crore (50% of
total sales) in FY07 to Rs 56 crore (19% of total sales) in FY08
as ICIL was in the process of shifting the operations of this
division to gain the 'Mega Projects' status, resulting in
discontinuation of operations.  The company is yet to begin EMS
operations on account of non clarity on mode of availing the
benefits from local authorities.

Net sales of ICIL for FY08 have registered an improvement of
over 15% to Rs 290 crore over FY07, due to rise in sales of the
textile division.  PBILDT however dipped by 21% y-oy in FY08 to
Rs 17 crore mainly on account of higher fuel costs, higher raw
material prices due to steep increase in cotton prices and
increase in employee cost on account of higher provisioning for
retirement benefits.

Insufficient operating margins for Q4 FY08 as well as FY08
resulted in negative interest coverage for the concerned period.
ICIL has delayed its interest and principal payments to its
bankers for the June quarter.  Interest and depreciation costs
have registered a steep rise due to commencement of commercial
production towards the end of FY07 and hardening of interest
rates resulting into net loss of Rs. 18.74 crore for FY08.


POSHS METAL: CRISIL Rates Rs. 140 Mil. Facilities at 'BB+'
----------------------------------------------------------
CRISIL has assigned its bank loan ratings of 'BB+/Stable' to the
various bank facilities of Poshs Metal Industries Pvt Ltd
(PMIPL).

     Rs.10.00 Million Cash Credit facility
        BB+/Stable(Assigned)

     Rs.130.00 Million Term Loan facility
        BB+/Stable(Assigned)

The ratings reflect PMIPL's long-standing and established
relationship with Tata Steel Ltd (TSL), and high operating
efficiency.  These rating strengths are, however, partly
constrained by PMIPL's weak bargaining power with TSL, and weak
financial risk profile.

Outlook: Stable

CRISIL believes that PMIPL will maintain an average business
risk profile, backed by its established relationship with TSL,
and gradually correct its gearing levels over the medium term.
The outlook may be revised to 'Positive' if there is a
significant improvement in PMIPL's credit risk profile by way of
infusion of capital by the promoter.  Conversely, the outlook
may be revised to 'Negative' if there is a more-than-expected
decline in PMIPL's profitability, or weakening in capital
structure on account of additional, debt-funded capital
expenditure.

                           About PMIPL

Incorporated in 1998, the Mumbai-based PMIPL is an external
processing agent (EPA) for TSL.  The company receives cold-
rolled (CR) steel from TSL, and supplies processed CR sheets in
the form of squares and rectangles directly to the customers of
TSL.  The key customers of TSL for these products are Bajaj Auto
and its ancillaries, Tata Motors Limited (TML), and Mahindra &
Mahindra and its ancillaries.  PMIPL acts as a steel-processing
centre for TSL in the western region of India.


REAL LINES: RBI Cancels Certificate of Registration
---------------------------------------------------
The Reserve Bank of India cancelled the certificate of
registration granted to Real Lines Finance and Investments
Limited, fka Real Lines Finance and Investments Private Limited,
for carrying on the business of a non-banking financial
institution as the company has opted to exit from the business
of a non-banking financial institution.

Following cancellation of the registration certificate, Real
Lines Finance and Investments Limited (Formerly Real Lines
Finance and Investments Private Limited), cannot transact the
business of a non-banking financial institution.

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

Real Lines Finance and Investments Limited fka Real Lines
Finance and Investments Private Limited has its registered
office at 307, Liberty Plaza, 3-6-365, Basheerbagh in Hyderabad.


VASU ESTATES: RBI Cancels Certificate of Registration
-----------------------------------------------------
The Reserve Bank of India cancelled the certificate of
registration granted to Vasu Estates and Finance Private
Limited, fka Formerly Vasu Estates and Finance Limited, for
carrying on the business of a non-banking financial institution
as the company has opted to exit from the business of a non-
banking financial institution.

Following cancellation of the registration certificate, Vasu
Estates and Finance Private Limited (Formerly Vasu Estates and
Finance Limited), cannot transact the business of a non-banking
financial institution.

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

Vasu Estates and Finance Private Limited fka Vasu Estates and
Finance Limited has its registered office at 2/1, Enikepadu in
Vijayawada.



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

PERUSAHAAN LISTRIK: To Receive US$900MM Loan for Power Project
--------------------------------------------------------------
PT Perusahaan Listrik Negara (PLN) will soon receive additional
US$900 million from foreign banks to fund power projects,
Jakarta Post reports.

According to the report, PLN vice president Rudiantara said that
the company has signed agreements with the foreign banks, as yet
not specified and will receive the dollar denominated loans
shortly.

The Troubled Company Reporter-Asia Pacific reported on July 30,
2008, that the company secured IDR10 trillion (US$1.1 billion)
loans to fund its power plant projects.

Jakarta Post noted that in order to complete the construction of
the power plants, PLN needed US$4.4 billion of dollar loans and
IDR17.5 trillion (US$1.9 billion) in local currency.

Because the firm already secured US$1.5 billion in dollar loans,
and will soon receive the US$900 million, the lacking US$2
billion will be mobilized from internal funds or other schemes,
the report adds.

                    About Perusahaan Listrik

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

                          *     *     *

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


* INDONESIA: Sells IDR7.3 Tril. Worth of Debts
----------------------------------------------
Indonesia's finance ministry raised a total of IDR7.3 trillion
(US$800 million) in its bond auction, Reuters reports.

According to the report, a statement by the ministry says that
the bond auction raised IDR3.05 trillion from the sale of 1-year
treasury bills.  It also sold IDR4.25 trillion worth of long-
dated debt, consisting of IDR2.25 trillion of 7-year bonds and
IDR2 trillion of 13-year bonds.

Economists say that the results suggested that investors are
confident that inflation had peaked in June-July, reducing the
likelihood of further interest rate increases by the central
bank, Bank Indonesia, Reuters notes.



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

EPCOS AG: TDK Tender Offer Cues S&P to Put BB+ Rating on Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services has placed on CreditWatch
with positive implications its 'BB+' long-term corporate credit
rating on Germany-based passive electronic components
manufacturer EPCOS AG.

The CreditWatch placement reflects the announcement by
Japan-based TDK Corp. (AA-/Watch Neg/A-1+) that it will launch a
public tender offer for all outstanding EPCOS shares at EUR17.85
in cash per share, representing an enterprise value of about
EUR1.4 billion, including pension liabilities.  The offer is
subject to certain conditions, including a 50%-plus-one-share
minimum acceptance threshold on a fully diluted basis, and
regulatory approvals.  TDK expects the offer to close by
October.  Following the successful completion of the offer, TDK
plans to carve out its combined passive components business
(including EPCOS' business) into a new company.

The ratings on TDK have been placed on CreditWatch with negative
implications following the announcement -- indicating that a one
notch rating downgrade is possible -- given the expected
deterioration of its financial position.

"If the tender offer is successful, EPCOS is likely to be
upgraded several notches to an investment-grade rating," said
S&P's credit analyst Matthias Raab.

"A rating equalization with TDK is possible but not certain at
this stage, as it would depend on certain factors such as the
percentage of shares tendered to TDK, the expected long-term
ownership of the newly formed company by TDK, and the level of
financing support from the latter," said Mr. Raab.

S&P expects to resolve the CreditWatch on EPCOS at the same time
as that on TDK, which will likely be after the end of the tender
offer.



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

MERIDIAN CO: Losses & Negative Working Capital Cue Going Concern
----------------------------------------------------------------
Los Angeles-based Choi, Kim & Park LLP raised substantial doubt
about Meridian Co., Ltd.'s ability to continue as a going
concern after auditing the company's financial statements for
the year ended Dec. 31, 2007.  The auditor pointed to the
company's significant operating losses and working capital
deficit.

The company reported a net loss of KRW607,663,000 on total sales
of KRW2,604,541,000 for the year ended Dec. 31, 2007, as
compared with a net loss of KRW324,747,000 on total sales of
KRW1,526,828,000 in the prior year.

The company has experienced losses from continuing operations
during the last three fiscal years and has an accumulated
deficit of KRW16,058,106,000 as of Dec. 31, 2007.  Net cash used
for continuing operations for the year ended Dec. 31, 2007, was
KRW1,949,090,000.  At Dec. 31, 2007, working capital deficit was
KRW2,584,394,000.  As of Dec. 31, 2007, the company's principal
source of liquidity is KRW103,865,000 of cash and
KRW1,195,182,000 of trade and other accounts receivable.  Such
conditions raise substantial doubt that the company will be able
to continue as a going concern.  These operating results
occurred while the company continues to develop and
commercialize new products.  These factors have placed a
significant strain on the financial resources of the company.

The ability of the company to overcome these challenges depends
on its ability to continue to generate higher revenue, and
achieve positive cash flows from continuing operations,
profitability and continued sources of debt and equity
financing.

                           Indebtedness

On Aug. 4, 2003, when Meridian suffered deteriorated liquidity,
bank accounts of Meridian were suspended from the transactions
such as check clearing and direct deposits.  In addition, on
Feb. 27, 2004, Chooncheon District Court in Korea approved the
company's debt restructuring plan (or composition) for the total
debt of KRW4,697,927,000, which constituted around 68% of the
total outstanding borrowings and payables of Meridian at that
time.

In January 2005, creditor Woori Bank exercised its security
right on the apartment owned by Meridian.  The proceeds of
KRW42,837,000 from foreclosure were used to pay debt principal,
interest and other direct expenses related to foreclosure.

Aside from the debt restructuring, Meridian had a borrowing from
Chohung Bank (Chohung Bank has been merged into Shinhan Bank as
of April 1, 2006), which was not included in the original
restructuring plan, as the bank did not agree to the terms.  In
December 2005, Chohung Bank exercised its security right on the
land and building, which had been provided as collateral by
Meridian.  The proceeds of KRW883,308,000 from the foreclosure
was paid as a preemptive to other creditors and Chochung Bank.
Subsequent to the foreclosure, the original debt restructuring
plan was modified to include the outstanding principal of
KRW1,074,455,000 to Chohung Bank.

However, due to the recurring losses from operations, Meridian
was not able to meet the repayment schedule.  As of Dec. 31,
2007, Meridian has not paid KRW650,757,000 of principal and
KRW487,388,000 of accrued interest outstanding to financial
institutions, and KRW940,123,000 of accounts payable to various
vendors.

The status of the restructuring plan is reported to Chooncheon
District Court, Korea, every quarter.  However, under the
restructuring plan (or composition), the Court does not have
authorities to dictate or supervise day-to-day financial
activities, which is typical for court receivership.  Therefore,
any additional debt or equity financing could be made with no
intervention from the Court.

Meridian believes that additional equity financing and continued
increase in sales of the new product line-up, recently launched
in the international markets will provide sufficient cash flow
for it to continue as a going concern.  During 2007, Meridian
was able to attract new investors, increased its overseas
revenue.   Particularly, in 2007, Meridian attained the sales
approvals of Lapex-BCS (LipoLaser) and DPA in EU and Canadian
markets, in addition to Japan market, which will expedite its
revenue growth.

                          Balance Sheet

At Dec. 31, 2007, the company's balance sheet showed
KRW2,055,393,000 in total assets and KRW8,140,731,000 in total
liabilities, resulting in a KRW6,085,338,000 stockholders'
deficit.

The company's consolidated balance sheet at Dec. 31, 2007, also
showed strained liquidity with KRW1,872,738,000 in total current
assets available to pay KRW4,457,132,000 in total current
liabilities.

A full-text copy of the company's 2007 annual report is
available for free at http://ResearchArchives.com/t/s?304a

                        About Meridian Co.

Headquartered at Songpa-gu, in Seoul, Korea, Meridian Co., Ltd.,
is engaged the research, development, manufacturing, and
marketing of integrative medical devices in the healthcare
industry.  Meridian has established subsidiaries in China and
Los Angeles.  In 2004, it signed an exclusive distribution
agreement with a company in Vancouver, B.C., Canada.  Meridian
currently sells four different products to healthcare
practitioners throughout the domestic and overseas market.
These include the LipoLaser, DPA (Digital Pulse Analyzer), the
Lapex-2000, the ABR-2000, and the Meridian II.


* KOREA: Moody's Says Korean Banks Still Face Tight Liquidity
-------------------------------------------------------------
Moody's Investors Service says that Korea's banks continue to
face tight liquidity conditions in both domestic and foreign
currency funding.

"Domestic funding is still available but more costly than a year
ago and, at the same time, cross-border funding conditions
remain challenging as evidenced by the postponement of several
issues and by the ability of the Korean banks to obtain foreign
currency funding only at shorter durations and higher pricing,
and with more required collateral," says Beatrice Woo, a Moody's
VP/Senior Credit Officer.

Woo made her remarks in conjunction with the release of a new
Moody's report -- which she authored -- on the liquidity
situation for Korean banks.

"Contrary to expectations earlier this year, uncertainty in the
global credit markets has not abated, and instead appears to
have deepened," says Woo.  "Based on several key liquidity
ratios, liquidity pressure persists at Korean banks, and our
detailed review of the banks' June 2008 results will focus on
these ratios."

"Furthermore, in the current risk averse climate, Moody's sees
less of a cushion in bank ratings," says Woo, adding,
"Therefore, any further worsening in their already stretched
liquidity ratios may prompt downward adjustments to their bank
financial strength ratings."

"In turn, revisions to the BFSRs are unlikely to result in
changes to credit ratings as Korea falls under the 'High'
country support guideline," says Woo.  The weighted average BFSR
for Korea's 14 rated banks is C-

However, while acknowledging the increasing rating pressures on
the banks, the Moody's report nonetheless contrasts favorably
the system's current credit profile with that which existed
leading into the 1997 Asian financial crisis.

Today, bank liabilities in Korea, including market-based
funding, are primarily in local currency and show medium-term
tenors, the report says.  By contrast, massive foreign currency
short-term borrowings created the problems of a decade ago.

Moreover, the Korean government now has foreign exchange
reserves of US$260 billion, while the domestic banks' short-term
debt totals US$62 billion.  Pre-crisis, in June 1997, the
reserves balance was only USD33 billion against short-term debt
of US$47 billion.

The banks are also rigorously working to develop existing and
new funding sources, the Moody's report says.  They are
exploring other avenues for refinancing, such as
securitizations, covered bonds and alternative currencies such
as Malaysian ringgit and Thai baht.



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

AMP CAPITAL: Suspends Activity in Unlisted Property Fund
--------------------------------------------------------
AMP Capital New Zealand said it will suspend redemptions and
currently accept no new applications into one of its New Zealand
unlisted property funds the AMP Capital NZ Property Fund in
the best long-term interests of investors.

Managing Director of AMP Capital New Zealand, Murray Gribben,
said "We've taken this action as a prudent response to the
current extraordinary market conditions that have resulted in
higher than usual redemptions in the fund, not matched by fresh
investment."

The AMP Capital NZ Property Fund has investments in the AMP
Capital Property Portfolio and some listed property trusts.  The
underlying property assets held in AMP Capital Property continue
to comprise a high quality, nationwide portfolio of assets that
are strongly diversified by location and property type (such as
office, retail and industrial).  The portfolio has 96 per cent
occupancy and includes the government sector as the single
largest tenant on long-term leases.

The Fund is permitted to suspend redemptions for up to one year,
though AMP Capital will lift suspensions as soon as market
conditions improve sufficiently.  After suspension is lifted the
usual redemption provisions which provide for a period of up
to two years apply.

"Because property is a long-term investment and the assets are
not immediately realisable, these types of provisions are common
to these types of funds to ensure that the interests of
investors are protected during periods of market volatility,"
said Mr. Gribben.

"In the current market, where investors are looking to reduce
their exposure to property investments, we believe we are acting
in the best interests of investors by temporarily suspending
activity to preserve the quality of the fund."

AMP Financial Services New Zealand has placed the AMP Capital NZ
Property Fund on hold from its approved product and services
list, effective immediately.  This affects both availability on
the Wrap, as well as the two AMP property funds that invest in
the AMP Capital NZ Property Fund SIP Unit Trust Property Fund
and SIP PRP Property Fund.

AMP Capital said this is an issue that is specific to the AMP
Capital NZ Property Fund and the satellite retail funds invested
in it.  No other AMP investment vehicles are impacted.

                        About AMP Capital

AMP Capital New Zealand -- http://www.ampcapital.co.nz/-- is a
specialist investment manager with over NZ$11 billion at as
December 31, 2007, in funds under management in New Zealand. As
a wholly owned subsidiary of AMP Limited, the company operates
independently, with a pure investment focus.  It employs almost
200 in-house investment professionals throughout Australasia.


BLAIRWASH LTD: Proofs of Debt Due on August 8
----------------------------------------------
In accordance with Section 241 of the Companies Act 1993, the
shareholders of Blairwash Limited have appointed Peri Micaela
Finnigan and Boris van Delden, insolvency practitioners of
Auckland, as liquidators.

The liquidators set Aug. 8, 2008, as the last day for creditors
to file their proofs of debt.

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


FAST MEDIAFLEX: Liquidators Set August 15 as Claims Bar Date
------------------------------------------------------------
The High Court at Auckland has appointed John Trevor Whittfield
and Peri Micaela Finnigan, insolvency practitioners of Auckland,
as liquidators of Fast Mediaflex Limited.

Creditors are required to file their proofs of debt by Aug. 15,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

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


HEARTLAND HOSPITALITY: Proofs of Debt Due on August 15
------------------------------------------------------
In accordance with Section 241 of the Companies Act 1993, the
shareholders of Heartland Hospitality Limited have appointed
Peri Micaela Finnigan and Victoria Toon, chartered accountants
of Auckland, as liquidators.

The liquidators set Aug. 15, 2008, as the last day for creditors
to file their proofs of debt.

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


IYOMU LTD: Proofs of Debt Due on August 15
------------------------------------------
In accordance with Section 241 of the Companies Act 1993, the
shareholders of Iyomu Limited have appointed Peri Micaela
Finnigan and Boris van Delden,  insolvency practitioners of
Auckland, as liquidators.

The liquidators set Aug. 15, 2008, as the last day for creditors
to file their proofs of debt.

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


PLANTECH CONSULTING: Liquidator Sets Aug. 1 as Claims Bar Date
--------------------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Plantech Consulting N.Z Pty Limited resolved
that the company be liquidated and appointed Robert John Willis,
chartered accountant of Auckland, as liquidator.

The liquidator sets Aug. 8, 2008, as the last day for creditors
to file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Steve Young
          CST Nexia Limited
          PO Box 76261
          Manukau 2241
          Telephone: (09) 262 2595
          Facsimile: (09) 262 2606


PHOENIX JOINERY: Liquidator Sets August 8 as Claims Bar Date
------------------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Phoenix Joinery 2005 Limited placed the company
under liquidation and appointed Kim S. Thompson, insolvency
practitioner of Hamilton, as liquidator.

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:

          Kim S. Thompson
          PO Box 1027, Hamilton
          Telephone: (07) 834 6813
          Facsimile: (07) 834 6104
          Email: kim@kstca.co.nz


PROTRAC INTERNATIONAL: Wind-Up Petition Hearing Set for August 6
----------------------------------------------------------------
The High Court at Auckland will hear on Aug. 6, 2008, at
10:00 a.m., to consider putting Protrac International Limited
into liquidation.

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

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          5-7 Byron Avenue (PO Box 33150)
          Takapuna, Auckland
          Telephone: (09) 984 1514
          Facsimile: (09) 984 3116

Michael Kinlim Yan is the plaintiff's solicitor.


SELDIS LTD: Proofs of Debt Due on August 11
-------------------------------------------
In accordance with Section 241 of the Companies Act 1993, the
shareholders of Seldis Limited have appointed Paul Graham
Sargison and Gerald Stanley Rea, chartered accountants of
Auckland, as liquidators.

The liquidators set Aug. 11, 2008, as the last day for creditors
to file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Gerry Rea Partners
          PO Box 3015
          Auckland
          Telephone: (09) 377 3099
          Facsimile: (09) 377 3098


WILD KATIPO: Liquidator Sets August 8 as Claims Bar Date
--------------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Wild Katipo Painting Limited placed the company
under liquidation and appointed Kim S. Thompson, insolvency
practitioner of Hamilton, as liquidator.

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:

          Kim S. Thompson
          PO Box 1027, Hamilton
          Telephone: (07) 834 6813
          Facsimile: (07) 834 6104
          Email: kim@kstca.co.nz



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

* PHILIPPINES: M3 Decelerates in April, Expands Anew in May
-----------------------------------------------------------
Based on the Depository Corporations Survey, the growth of
domestic liquidity or M3 slowed down to 0.8 percent in April
from 2.1 percent (revised) in March but accelerated to 3.7
percent in May, data from Bangko Sentral ng Pilipinas shows.

The data were generated from the new system of bank reports, the
Financial Reporting Package (FRP), which is consistent with the
International Accounting Standards (IAS) and International
Financial Reporting System (IFRS).

The expansion in M3 in May can be traced to the sustained rise
in net foreign assets (NFA) coupled with a slower decline in net
domestic assets (NDA).  NFA posted double-digit growths in April
and May, at 16.5 percent and 20.1 percent, respectively.
Meanwhile, NDA contracted in April as well as in May.  The Net
Other Items account, which includes SDAs and RRPs remained in
negative balance.  Credit extended to the private sector tracked
the trend of domestic liquidity, picking up in May at
8.6 percent, after slowing down in April.  Credit extended to
the public sector continued to slow down to post a 4.9 percent
expansion in May from an 8.7 percent growth in April.  This
resulted from the deceleration in the growth of credit extended
to the National Government (NG) as well as to local governments
and other public entities.

The BSP will continue to closely monitor developments in
domestic liquidity because it is one of the important indicators
of monetary conditions.


* PHILIPPINES: Bank Lending Growth Accelerates in May
-----------------------------------------------------
Based on preliminary data obtained from the new system of bank
reporting under the Financial Reporting Package, outstanding
loans of commercial banks (including reverse repurchase
agreements or RRPs) grew at a faster pace in May at 15.4 percent
year-on-year, higher than the 10.3 percent (revised) and 7.7
percent expansions posted in March and April, respectively, data
from Bangko Sentral ng Pilipinas shows.

Bank lending net of banks' RRP placements with the BSP reflected
the same trend, as it increased by 15.8 percent year-on-year in
May, from 14.6 percent in April.  Revised March data showed bank
lending net of RRPs grew by 16.1 percent.

The Financial Reporting Package (FRP), which replaced the
Consolidated Statement of Condition (CSOC) reports, adopted the
detailed classification of the amended 1994 Philippine Standard
Industrial Classification (PSIC) for international
comparability.  The system classifies lending by production
activities (which covers 16 economic sectors) and by household
consumption purposes (with three economic categories).
Previously, bank reports classified loans into only 9 economic
sectors.

Loans for production activities, which accounted for the bulk of
total outstanding loans, grew by 13.6 percent in May, after
posting expansions for March and April of 14.4 percent (revised)
and 12.9 percent, respectively.  In May, production loans were
driven largely by credit extended to electricity, gas and water
(47.1 percent growth year-on-year); other community, social and
personal services (83.9 percent); real estate, renting, and
business services (14.1 percent); agriculture, hunting, and
forestry (10.3 percent); manufacturing (5.2 percent); and public
administration and defense (44.9 percent).

Consumption loans, which accounted for about 8 percent of total
loans, rose by 21.6 percent in May, higher than the growth of
19.4 percent (revised) in March and 15.0 percent in April.  The
growth in consumption loans was reflected mainly by an expansion
in credit card receivables.

The BSP keeps an eye on bank lending trends to ensure that these
are consistent with the economy's growth and inflation
objectives.



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

FASTECH SYNERGY: Posts US$220,000 Net Loss in Qtr. Ended June 30
----------------------------------------------------------------
Fastech Synergy Limited's net loss of US$219,000 for the current
period was lower by US$935,000 compared with the previous
quarter net loss of US$1.15 million.  This however, includes a
forex gain of US$455,000 compared with a previous quarter forex
gain of only US$90,000 as the Philippine Peso continued to
weaken against the US Dollar during the second quarter 2008.
Net loss for the same period last year was US$1.07 million.

A gross profit of US$45,000 was registered for the current
period, compared with a gross loss of US$386,000 for the first
quarter 2008, and gross profit of US$108,000 for the second
quarter of last year.  The Group started to realize the benefits
of the cost reduction exercise it implemented before the end of
the previous quarter, as it reduced its Cost of Sales (COS) by
US$344,000 to US$3.06M for the current period compared with
the previous quarter COS of US$3.41M.  This was made possible
even with the higher level of revenue for the current period.
Cost of Sales for the same period last year was US$3.65M.
Operating expenses (Opex) also was reduced by US$124,000 to
US$515,000 for the current period compared with the
US$639,000 Opex for the first quarter of 2008.  Opex for the
same period last year was US$682,000.

The Group registered a net sales of US$3.11 million for the
current period, US$88,000 or 2.9% higher compared with the
US$3.02 million net sales for the previous quarter.  Net sales
for the same period last year was US$3.76 million.

As of June 30, 2008, the Group is still in a net current
liability position.  The Group has also incurred continuing net
losses and now has incurred an accumulated deficit of
US$3.90 million.  These may raise a question about the Group's
ability to continue as a going concern.

In this regard, management continues to implement various
measures to address the above, foremost of which is a right-
sizing plan to drastically lower the Group's break-even point.
Together with its financial advisor, the Group is in the process
of formulating a new loan restructuring proposal for
presentation to the Group's creditor banks, with the end-in-view
of improving the Group's financial position.

                      About Fastech Synergy

Fastech Synergy Ltd is a provider of semiconductor assembly and
test services that is listed on the main board of the Stock
Exchange of Singapore.  Fastech provides complete assembly/test
solutions for semiconductor components and module assembly
products used in consumer electronics, personal computers and
peripherals, telecommunication equipment, medical and office
equipment, automotive systems and industrial applications.  It
employs approximately 600 employees.

                         *     *     *

Fastech Synergy Ltd. posted three years of consecutive net
losses: [2007:(US$4.63 million); 2006:(US$5.807-million); and
2005:(PHP7.097-million).


JETS TECHNICS: Incurs HK$36.93MM Net Loss in Year Ended May 31
--------------------------------------------------------------
In a filing with the Singapore Stock Exchange, Jets Technics
International Holdings Limited disclosed that it has incurred a
net loss of HK$36.93 million in the year ended May 31, 2008.
This is the second consecutive year the company incurred a net
loss as it reported HK$24.82 million net loss in the same period
of 2007.

Revenue increased by approximately HK$1.21 million or 1.78%,
from HK$67.98 million in FY2007 to HK$69.19 million in FY2008.
The increase in revenue was mainly attributed to the increase in
sales to local market to HK$61.91 million in FY2008 from
HK$58.38 million in FY2007.  The increase was offset by decrease
in sales to overseas markets.

Cost of sales increased by approximately HK$8.04 million or
13.98% from HK$57.52 million in FY2007 to HK$65.56 million in
FY2008.  The increase was due to higher material costs
especially for metal components and petro-chemical-related raw
materials.  The company also experienced higher operating costs
due to the appreciation of Renminbi.

As a result of a small increase in turnover and higher increase
in cost of sales, gross profit decreased by approximately
HK$6.82 million or 65.20%, from HK$10.46 million in FY2007 to
HK$3.64 million in FY2008 and gross profit margin decreased
by approximately 10.12% from 15.38% in FY2007 to 5.26% in
FY2008.

                 Selling and distribution costs

Selling and distribution costs decreased by approximately
HK$0.69 million or 6.60%, from HK$10.46 million in FY2007 to
HK$9.77 million in FY2008 owing to lower promotional expenses
due to stricter costs control.  The promotional expenses include
advertising, trade shows, overseas traveling, entertainment, and
other incidental expenses relating to promotional activities in
Hong Kong and overseas.

                  Administrative expenses

Administrative expenses increased by approximately
HK$0.51 million or 2.64%, from HK$19.33 million in FY2007 to
HK$19.84 million in FY2008.  The increase was mainly attributed
to increase in legal expenses in respect of:

   -- a lawsuit against a machinery supplier; and

   -- seeking legal and technical advice on the EcoPark issue,

   Other operating expenses

Other operating expenses increased by approximately
HK$4.70 million or 83.33%, from approximately HK$5.64 million in
FY2007 to HK$10.34 million in FY2008.

The increase was mainly attributable to:

   -- rental payment for the EcoPark of HK$2.40 million; and
   -- costs relating to dissolving Guangzhou Jets of
      approximately HK$3.13 million.

The increase was partially offset by severance payments of
HK$0.76 million incurred in FY2007 as part of the Group's
reorganization efforts, while only HK$13,000 incurred in FY2008
and decrease in provision for doubtful debts.

                       Finance costs

Finance costs increased by approximately HK$0.48 million or
97.96%, from HK$0.49 million in FY2007 to HK$0.97 million in
FY2008 due to increase in bank loans and borrowings.

                       Balance Sheet

As at May 31. 2008, non-current assets amounted to approximately
HK$26.34 million, a decrease of HK$5.27 million compared to the
corresponding previous year.  The decrease was primarily due to
depreciation charges, disposal and write-off of property,
plant and equipment and amortization for prepaid land lease
payments.

As at May 31, 2008, current assets amounted to approximately
HK$44.50 million, a decrease of HK$6.27 million compared to the
corresponding previous year.  This was mainly due to a decline
in cash and bank balances, a decrease in accounts receivable,
and prepayments, deposits and other receivables.  The decrease
was partially offset by an increase in inventories of HK$2.20
million.  Cash and bank balances fell by HK$4.14 million due
mainly to operating losses and purchasing of fixed assets and
HK$1.00 million was set aside to pledge a banking facility
granted to the Group.

During the year, the Group purchased plant and machinery of
approximately HK$2.08 million and furniture, equipments and
leasehold improvements of approximately HK$0.31 million.
Accounts receivable decreased by HK$3.14 million due to
improvement in collection.  Prepayments, deposits and other
receivables decreased by HK$2.19 million due mainly to
prepayment of rental for the EcoPark in FY2007 being recognized
in other operating expenses in current year.

As at May 31, 2008, current liabilities amounted to
approximately HK$40.79 million, an increase of HK$17.06 million
compared to the corresponding previous year.  This was due to
increases in trade and bills payable of approximately HK$4.17
million, accrued liabilities and other payables of approximately
HK$4.80 million, deposits received from customers of
approximately HK$5.08 million and the increase in current
portion of interest-bearing loans and borrowings of
approximately HK$3.00 million to finance the working capital.

As at May 31, 2008, non-current liability amounted to
approximately HK$14.25 million, an increase of HK$6.78 million
compared to the corresponding previous year due to increase in
long-term secured bank loans and borrowings.

                     Liquidity and Cash Flow

The Group's cash and bank balances declined by HK$4.14 million
to approximately HK$2.52 million as at May 31, 2008, compared to
HK$6.66 million as at May 31, 2007.  Total group borrowings
increased to HK$22.42 million as at May 31, 2008, (representing
141.93% of shareholders' fund) from HK$12.64 million as at
May 31, 2007 (representing 24.69% of shareholders' fund).

                       About Jets Technics

Jets Technics International Holdings Limited is an investment
holding company.  The company operates through five segments:
the safety surface segment, which is engaged in the
manufacturing and trading of safety surface; the sports surface
segment, which is engaged in the manufacturing and trading of
sports surface; the playground equipment segment, which is
engaged in the manufacturing and trading of playground
equipment; the garden furniture segment, which is engaged in the
manufacturing and trading of garden furniture, and the other
segment, which comprises the company's manufacturing and trading
of other recyclable products and the provision of related
services.  In May 2008, Jets Technics International Holdings Ltd
announced that its wholly owned subsidiary, Guangzhou Jets
Recycled Products Co., Ltd., had ceased operations.



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

UNION BANK: Fitch Holds and Withdraws 'D/E' Individual Rating
-------------------------------------------------------------
Fitch Ratings has affirmed Union Bank of Taiwan Individual
rating at 'D/E' and Support rating at '5', and simultaneously
withdrawn them.  Fitch will no longer provide ratings or
analytical coverage of Union Bank.

Union Bank's Individual rating reflects its small franchise and
weaknesses in asset quality, profitability as well as
capitalization.  The bank has continuously offloaded problematic
assets in its unsecured personal lending portfolio since the
credit debacle erupted in 2005-2006.  As such, it incurred
substantial credit losses during 2005-2007, which severely
dragged down its performance and weakened core earnings.

As with other retail-oriented banks, Union Bank has a large bulk
of unsecured loans under its debt restructuring program.  Based
on the losses experienced by other large leading consumer banks
in Taiwan, Fitch expects Union Bank to also incur additional
losses from DRP.

The bank reported a Tier 1 ratio of 4.7% at end-Q108 and a CAR
of 8.9%.  The ratio would be substantially lower if the
unamortised losses and a higher loan loss reserve for legacy
NPLs (60% of NPLs) were considered.

Union Bank was established in 1992. Union Construction Group, a
property construction company, is the largest shareholder with
an estimated controlling stake of 60%.  At end-April 2008, the
bank had a market share of 1.3% in deposits and operated through
78 domestic branches.


UNION BILLS: Fitch Holds & Withdraws 'BB-' Long-Term ID Rating
--------------------------------------------------------------
Fitch Ratings has affirmed and simultaneously withdrawn Taiwan-
based Union Bills Finance Corporation Long-term Issuer Default
Rating of 'BB-', Short-term IDR of 'B', National Long-term
rating 'BBB(twn)', National Short-term rating 'F3(twn)',
Individual rating 'D', Support rating '5', and Support Rating
Floor 'NF'.  The Outlook is Stable.

Fitch will no longer provide ratings or analytical coverage of
Union Bills.

                         *********

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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