TCRAP_Public/080805.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Tuesday, August 5, 2008, Vol. 11, No. 154

                            Headlines

A U S T R A L I A

A.C.N 103 898 193: To Declare Dividend on August 18
A.C.N. 111 742 744: Members and Creditors to Meet on August 6
A.C.N. 112 549 998 : Joint Meeting Slated for  August 6
ACIMALL AUSTRALIA: To Declare Dividend on August 15
ALL SYSTEMS: Joint Meeting Slated for August 11

ALLCO FINANCE: Deputy Managing Director Stefanovski Resigns
BABCOCK & BROWN: Seeks Investors for Westnet and Powerco Units
COMPUTER NETWORK: Members' Final Meeting Set for August 8
LINEN HOST: Joint Meeting Slated for August 11
LINKNARF HOLDINGS: Members' Final Meeting Set for August 9

TRANS-WORLD PROJECTS: Members and Creditors to Meet on August 6
WINE BANQ: Proofs of Debt Due on August 7
* AUSTRALIA: Job Advertisements Fell Moderately in July


C H I N A

XINHUA FINANCE: XFMedia to Release 2Q Results on August 18
VISTEON CORP: June 30 Balance Sheet Upside-Down by US$207 Mil.


H O N G K O N G

COBALT MANUFACTURING: Annual Meetings Set for August 9
E-FORCE GLOBAL: Liquidators to Give Wind-Up Report
HENU PROPERTIES: Inability to Pay Debts Prompts Wind-Up
HENU REALTY: Inability to Pay Debts Prompts Wind-Up
HKS (GUANGDONG): Members' General Meeting Set for September 3

KAFAT SERVICE: Creditors' Proofs of Debt Due on September 3
LEXWIN DEVELOPMENT: Members to Hear Wind-Up Report on Sept. 5
NM AGENCY: Creditors to Meet on September 5
ONWARD: Contributories and Creditors to Meet on Aug. 22
ROAD KING: S&P Holds Long-Term Corporate Credit Rating at BB

SAM CHEONG: Members' Final General Meeting Set for September 4


I N D I A

CHRYSLER LLC: Surpasses Second Quarter Financial Objectives
CHRYSLER LLC: July 2008 U.S. Sales Down 29% at 98,109 Units
CHRYSLER LLC: Arm Completes Renewal of US$24BB Annual Financing
GENERAL MOTORS: Incurs US$15.5BB 2008 Second Qtr Prelim Net Loss
GEN. MOTORS: Financial Arm Posts US$2.5BB Prelim 2nd Qtr. Loss

RATHI ISPAT: Moves Board Meeting to Aug. 7 Due to Lack of Quorum
* CRISIL: Asset Quality of Retail Loans Has Weakened
* INDIA: Three More Banks Expected to Hike Rates This Week
* MOODY'S: Growing Economic Risks Won't Affect India's Ratings


I N D O N E S I A

ANEKA TAMBANG: Sales Drops by 5% to IDR3.23 Tril. in 2nd Quarter


J A P A N

FORD MOTOR: Terminates Lighting Biz Sale Contract with Meridian
GMAC LLC: JCR Lowers Foreign Currency LT Sen. Debts rating to B-
* S&P Sees Weak 1st Quarter 2008 Results on Japanese Securities


K O R E A

* KOREA: Companies With 5 Straight Annual Losses Face Delisting
* KOREA: Rumor Warns Massive Downfall of Construction Companies


M A L A Y S I A

GOLD BRIDGE: Redesignates Sheikh Fadzir as Executive Director
PECD: Creditors Carries Out Proposed Scheme of Arragement
TENGGARA OIL: Gives Status Update for the Month of July


N E W  Z E A L A N D

649535 LTD: Parsons and Kenealy Appointed as Liquidators
AIR NEW ZEALAND: Moody's Holds Ba1 Sen. Unsecured Issuer Rating
DOMINION FINANCE: Will Finalize Recapitalization Proposal Soon
EASI LAWN: Parsons and Kenealy Appointed as Liquidators
EIGHT WALLACE: Court Appointed Levin and Vance as Liquidators

FAIRWAYS (2006): Liquidators Set August 15 as Claims Bar Date
FEATHERSTON HOTEL: Commences Liquidation Proceedings
FIVE STAR: Investors to Receive 5 Cents Principal Repayment
IDRAULICO LTD: Commences Liquidation Proceedings
JOSEPH PRODUCTIONS: Court Appointed Liquidators

DENNY'S CORP: June 25 Balance Sheet Upside-Down by US$172 Mil.
VERTEX HOLDINGS: Commences Liquidation Proceedings
VIBRA – FITNESS: High Court Appoints Liquidators
ZX CORPORATION: Court Appointed Horton and Price as Liquidators


S I N G A P O R E

HANOVER FINANCE: Fitch Cuts IDR to C; Removes Neg. Watch
QUEENSTOWN CDO: Fitch Chips 'BBB+' US$30MM Notes Rating to 'BB-'
SEA CONTAINERS: Files Joint Ch. 11 Plan and Disclosure Statement
SEA CONTAINERS: Discloses Classification & Treatment of Claims


S R I  L A N K A

* SRI LANKA: RAM Ratings Predicts Moderate Growth


T A I W A N

BENQ INC: First Half Sales in Egypt Grows 300%


X X X X X X X X

* BOND PRICING: For the Week July 28 - August 1, 2008


                         - - - - -


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

A.C.N 103 898 193: To Declare Dividend on August 18
---------------------------------------------------
A.C.N 103 898 193 Pty Ltd fka Queforce Pty Limited will declare
dividend on Aug. 18, 2008.

Only creditors who were able to file their proofs of claim by
July 22, 2008, were included in the company's dividend
distribution.

The company's liquidator is:

          Reil Robert Cussen
          Deloitte Touche Tohmatsu
          Level 3, Grosvenor Place
          225 George Street
          Sydney NSW 2000
          Australia
          Telephone (02) 9322 7000
          Facsimile (02) 9322 7261


A.C.N. 111 742 744: Members and Creditors to Meet on August 6
-------------------------------------------------------------
ACN 111 742 744 Pty Ltd fka 24/7 Safe & Secure Pty Ltd will hold
a joint meeting for its members and creditors at 10:30 a.m. on
Aug. 6, 2008.  During the meeting, the company's liquidators,
Andrew H. J. Wily and David A. Hurst, at Armstrong Wily will
provide the attendees with property disposal and winding-up
reports.

The company's liquidators can be reached at:

          Andrew H. J. Wily
          David A. Hurst
          Armstrong Wily
          Chartered Accountants
          Level 5, 75 Castlereagh Street
          Sydney NSW 2000
          Australia


A.C.N. 112 549 998 : Joint Meeting Slated for  August 6
--------------------------------------------------------
ACN 112 549 998 Pty Ltd fka Professional Edge Services Pty Ltd
will hold a joint meeting for its members and creditors at 9:00
a.m. on Aug. 6, 2008.  During the meeting, the company's
liquidator, Richard Rohrt at Scott Partners Consulting, will
provide the attendees with property disposal and winding-up
reports.

The company's liquidator can be reached at:

          Richard Rohrt
          Scott Partners Consulting
          Level 1, 173 Burke Road
          Glen Iris VIC 3146
          Australia


ACIMALL AUSTRALIA: To Declare Dividend on August 15
---------------------------------------------------
Acimall Australia Pty Ltd will declare dividend on Aug. 15,
2008.

Only creditors who were able to file their proofs of claim by
July 30, 2008, were included in the company's dividend
distribution.

The company's liquidator is:

          Max Donnelly
          Ferrier Hodgson
          GPO Box 4114
          Sydney NSW 2001
          Australia


ALL SYSTEMS: Joint Meeting Slated for August 11
-----------------------------------------------
All Systems Air Conditioning 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 liquidators, P. W. Gidley and
J. A. Shaw, at Ferrier Hodgson, will provide the attendees with
property disposal and winding-up reports.

The company's liquidators can be reached at:

          P. W. Gidley
          J. A. Shaw
          Ferrier Hodgson
          Level 3, 2 Market Street
          Newcastle NSW 2300
          Australia
          Telephone: (02) 4908 4444
          Facsimile: (02) 4908 4499


ALLCO FINANCE: Deputy Managing Director Stefanovski Resigns
-----------------------------------------------------------
Allco Finance Group Limited disclosed that Executive Director
and Deputy Managing Director Michael Stefanovski has resigned
from the board effective August 4, 2008, and will leave Allco
effective September 30, 2008.

Over the course of this year, Allco said, Mr. Stefanovski's role
has been to oversee the implementation of Allco's global
restructuring initiatives and asset sales program.  The timing
of his resignation reflects the significant progress made in
implementing Allco's restructuring plans to a refocused strategy
build around its core capabilities in sourcing and managing
aviation, shipping and rail assets, managing the funds that own
those assets and private equity.

David Clarke, Managing Director and Chief Executive Officer of
Allco, said "as a director and an executive, Michael has made a
valuable contribution to the development of Allco and, more
recently, the rapid implementation of our restructuring and
asset sales initiatives.  We thank him for his efforts and wish
him well in his future endeavours."

The Board of Allco now comprises three Independent Directors and
one Executive Director.  Allco said it will continue to reshape
its corporate governance regime with the planned appointment of
additional independent directors following the significant
restructuring and debt reduction progress and the recent
agreement of the new bank facility.

                    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.


BABCOCK & BROWN: Seeks Investors for Westnet and Powerco Units
--------------------------------------------------------------
Babcock & Brown Infrastructure Group (BBI), a subsidiary of
Babcock & Brown Limited, disclosed that on June 19, 2008, it had
initiated a Capital Management Review.  The review was
established by the BBI Board in order to ensure the maintenance
of a strong balance sheet with the capacity to fund future
attractive organic growth opportunities.

In conjunction with the review, the company said it has
continued to evaluate a range of options to unlock value in its
existing investments and consider initiatives to assist in
closing the gap between the underlying value of the business and
the current market price.

In this context, and following a number of unsolicited
approaches, BBI said it has commenced formal price discovery
processes with respect to identifying partners to co-invest in
up to 50% of two of its core assets: WestNet Rail and Powerco.

BBI said it will apply the proceeds of any completed transaction
to reducing corporate gearing and providing capacity for BBI to
fund future accretive investment opportunities.

                About Babcock & Brown Infrastructure

Babcock & Brown Infrastructure Group (ASX:BBI) --
http://www.bbinfrastructure.com/-- is managed by Babcock &
Brown Infrastructure Management Pty Limited, a subsidiary of
Babcock & Brown Limited (ASX: BNB).  BBI is an Australia-based
specialist infrastructure company, which provides investors
access to a diversified portfolio of quality infrastructure
assets.  BBI's investment focuses on acquiring, managing and
operating quality infrastructure assets in Australia and
internationally.  BBI's portfolio is diversified across two
asset class segments: Energy Transmission and Distribution and
Transport Infrastructure.  The company comprises of Babcock &
Brown Infrastructure Trust (BBIT) and Babcock & Brown
Infrastructure Limited (BBIL).  In July 2007, BBI announced that
it has acquired a majority interest in the Manuport Group, a
specialty bulk port group based in Antwerp, Belgium.  In August
2007, BBI acquired a majority interest in Terminal Rinfuse
Italia S.p.A (TRI), a dry bulk port operator in Italy.  The
transaction involves BBI acquiring an 80% majority stake in
Estate S.p.A, which in turn controls 62.9% of the share capital
in TRI.

                    About Babcock & Brown Ltd

Headquartered in Sydney, Australia, Babcock & Brown Limited
(ASX:BNB) -- http://www.babcockbrown.com/-- is engaged in the
creation, syndication and management of investment products for
itself, as a principal, and its investor clients; management of
specialised listed and unlisted funds, and advising and
arranging leasing, project financing and structured finance
transactions.  It has five segments: real estate, which engages
in principal investment and investment management activities in
the real estate sector; infrastructure, which engages in
financial advisory, principal finance and funds management
activities in the infrastructure and project finance sector;
corporate and structured finance, which is engaged in the
origination, structuring and participation in and management of
equity and debt investments, and operating leasing, which is
engaged in asset acquisition and syndication, and ongoing
management of portfolios of aircraft, railcars and semi-
conductor equipment.  In October 2007, it acquired Bluewater.
In November 2007, it acquired Coinmach Service Corp.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific
on June 16, 2008, Standard & Poor's Ratings Services lowered its
ratings on Babcock & Brown International Pty Ltd. to 'BB+/Watch
Neg/B' from 'BBB/Watch Neg/A-3' following a continued rapid
slide in the share price of its listed parent Babcock & Brown
Ltd.  The ratings remain on CreditWatch with negative
implications, where they were initially placed on June 12, 2008.

Babcock & Brown said the downgrade was not based on any
information provided to S&P by Babcock & Brown or the facility
lenders.  The change in S&P rating, the company says, does not
constitute a review event or event of default, or otherwise
entitle any lender to require a prepayment of any financing
facility with the Babcock & Brown Group.  The downgrade
according to Babcock & Brown was consistent with S&P's move to
downgrade other financial related stocks around the world.


COMPUTER NETWORK: Members' Final Meeting Set for August 8
---------------------------------------------------------
Keiran William Hutchison, Computer Network Technology (Asia
Pacific) Pty Ltd's state liquidator, will meet with the
company's members at 10:00 a.m. on Aug. 8, 2008, to provide them
with property disposal and winding-up reports.

The meeting will be held at the offices of Ernst & Young,
Level 37, 680 George Street, in Sydney.

The company's liquidator can be reached at:

          Keiran William Hutchison
          Ernst & Young
          Level 37, 680 George Street
          Sydney NSW 2000
          Australia
          Telephone (02) 9248 4991


LINEN HOST: Joint Meeting Slated for August 11
----------------------------------------------
Linen Host 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, Martin J. Green, at GHK Ferrier Green
Krejci Silvia, will provide the attendees with property disposal
and winding-up reports.

The company's liquidator can be reached at:

          Martin J. Green
          GHK Ferrier Green Krejci Silvia
          Level 13, 1 Castlereagh Street
          Sydney NSW 2000
          Australia


LINKNARF HOLDINGS: Members' Final Meeting Set for August 9
----------------------------------------------------------
Ronald George Davies, Linknarf Holdings Ltd's state liquidator,
will meet with the company's members at 10:00 a.m. on Aug. 9,
2008, to provide them with property disposal and winding-up
reports.

The meeting will be held at Darling Park Tower 2, 201 Sussex
Street, in Sydney.

The company's liquidator can be reached at:

          Ronald George Davies
          Level 8, Ikon House
          65 York Street
          Sydney NSW 2000
          Australia


TRANS-WORLD PROJECTS: Members and Creditors to Meet on August 6
---------------------------------------------------------------
Trans-World Projects Pty Ltd will hold a joint meeting for its
members and creditors at 10:00 a.m. on Aug. 6, 2008.  During the
meeting, the company's liquidators, Andrew H. J. Wily and David
A. Hurst, at Armstrong Wily will provide the attendees with
property disposal and winding-up reports.

The company's liquidators can be reached at:

          Andrew H. J. Wily
          David A. Hurst
          Armstrong Wily
          Chartered Accountants
          Level 5, 75 Castlereagh Street
          Sydney NSW 2000
          Australia


WINE BANQ: Proofs of Debt Due on August 7
-----------------------------------------
Wine Banq Pty Ltd will declare dividend on Aug. 14, 2008.

Creditors are required to file their proofs of debt by Aug. 7,
2008, to be included in the company's dividend distribution.

The company's liquidator is:

          Scott Pascoe
          SimsPartners
          Chartered Accountants
          Level 5, 55 Hunter Street
          Sydney NSW 2000
          Australia


* AUSTRALIA: Job Advertisements Fell Moderately in July
-------------------------------------------------------
The total number of jobs advertised in major metropolitan
newspapers and on the internet fell by a seasonally adjusted
0.3% in July to a weekly average of per week.  This follows a
3.0% decrease in June, according to the ANZ Economics & Markets
Research.

The total number of advertisements in July was 5.5% higher than
12 months ago.  In trend terms the total number of job
advertisements fell by 0.7% in July.

Looking at the different channels for advertising jobs, the
number of job advertisements in major metropolitan newspapers
decreased by 5.1% in July to an average of per week.  This
followed a 3.5% decrease in June. Newspaper job advertisements
are now 21.7% lower than in July 2007.  In trend terms, the
number of newspaper job advertisements fell by 2.6% to be 19.1%
lower than a year ago.

The fall in newspaper job advertisements in July was driven by
decreases in South Australia (-9.7%), Victoria (-8.6%), Western
Australia (-6.6%), Queensland (-5.2%), New South Wales (-2.0%),
and the Northern Territory (-1.4%).  In contrast, Tasmania
(+1.0%) and the ACT (+4.2%) both had solid gains in newspaper
job advertisements.

The number of Internet job advertisements was stable at an
average of per week in July up slightly from an average of
246,112 in June.  In trend terms, Internet job advertisements
continued to fall by a modest 0.5% in July, although they remain
8.8% higher than a year ago.

ANZ Head of Australian Economics Warren Hogan, said, "Total job
advertisements continued to weaken in July largely because of
5.1% decline in newspaper advertisements.  Internet
advertisements were unchanged in July and are 7.9% above year
ago levels.  The overall trend in job advertisements continues
to weaken, indicative of a softening in hiring intentions across
Australia in 2008.  The level of job advertisements remains at
high levels, particularly Internet ads, and in July the overall
rate of decline has slowed.

However, recent trends in job advertisements suggest that we
will see an easing of employment growth in coming quarters,
consistent with the slowing in domestic economic conditions in
Australia over the first half of 2008.  On this basis we expect
to see a gradual drift up in the unemployment rate over the year
ahead.  ANZ is forecasting unemployment to be around 4.9% by
June 2009.

"In conjunction with other economic data released in recent
months, the job advertisements series provides further evidence
that the current level of interest rates is achieving the RBA's
desired slowing in domestic economic growth.  We expect the RBA
to maintain a steady monetary policy in the short-term,
monitoring the extent of the slowing in economic activity versus
the risks of on-going inflation pressures.  The labour market
remains a bright spot within the Australian economy at present
with steady wage growth and unemployment near 30 year lows."



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

XINHUA FINANCE: XFMedia to Release 2Q Results on August 18
----------------------------------------------------------
XFMedia, a unit of Xinhua Finance Limited, will release its
financial results for the second quarter ending June 30, 2008 on
Monday, August 18, 2008, after the US markets close.  XFMedia's
earnings release and related materials will be available on the
investor relations page of its website at
http://www.xfmedia.cn/earnings.

Following the earnings announcement, XFMedia's senior management
will host a conference call on August 18, 2008 at 8:00 pm (New
York time) (August 19, 2008 at 8:00 am Beijing time) to discuss
the second quarter of 2008 results and recent business
activities.

Interested parties may dial into the conference call at

-- (US) +1 800 510 0178 or
-- +1 617 614 3450/ (UK)
-- +44 207 365 8426 / (Asia Pacific)
-- +852 3002 1672, Passcode: XFML.

A telephone replay will be available two hours after the call
for one week at

-- (US Toll Free) +1 888 286 8010 and
-- (International) +1 617 801 6888
--  Passcode: 51232173.

A real-time webcast and a replay of the webcast will be
available at: http://www.xfmedia.cn/earnings-webcast.

                     About Xinhua Finance Media

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

                 About Xinhua Finance Limited

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

                          *     *     *

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


VISTEON CORP: June 30 Balance Sheet Upside-Down by US$207 Mil.
--------------------------------------------------------------
Visteon Corporation's consolidated balance sheet at June 30,
2008, showed US$7.02 billion in total assets, US$6.93 billion in
total liabilities, and US$295.0 million in minority interests,
resulting in a US$207.0 million stockholders' deficit.

The company reported a net loss of US$42.0 million for the
second quarter ended June 30, 2008.  For second quarter 2007,
Visteon reported a net loss of US$67.0 million.

Results for second quarter 2008 include US$18.0 million of
unreimbursed restructuring and other qualifying costs,
US$11.0 million of asset impairments and US$49.0 million of
income tax expense.  Second quarter 2007 results included
US$11.0 million of asset impairments and US$28.0 million of
income tax expense.

EBIT-R, which represents net (loss) income before net interest
expense and provision for income taxes and excludes asset
impairments, gains and losses on business divestitures and net
unreimbursed restructuring expenses and other reimbursable
costs, was US$78.0 million, an improvement of US$63.0 million
over second quarter 2007.

"Our second quarter and first half results demonstrate Visteon's
geographic diversification, as we improved our financial
performance despite a difficult North American market," said
Donald J. Stebbins, president and chief executive officer.  "We
expanded gross margins by almost 50 percent and increased
operating income nearly five-fold due to steady progress on our
restructuring plan, our focus on reducing overhead costs and our
drive to improve operational efficiency.  We have also addressed
our UK manufacturing losses through divestitures and commercial
arrangements."

Total sales for second quarter 2008 were US$2.91 billion, a
decrease of US$69.0 million from the same period a year ago,
including US$17.0 million of lower services revenue.  Second
quarter 2008 total product sales were US$2.78 billion, a
decrease of US$52.0 million from second quarter 2007.
Divestitures and plant closures decreased product sales by
US$222.0 million, which was partially offset by favorable
currency of US$163.0 million.  Lower production volumes in North
America were offset by increases in Europe and Asia, reflecting
Visteon's geographic diversification.

Product gross margin for second quarter 2008 was US$230.0
million, representing an increase of US$76.0 million from the
same period a year ago.  This increase reflects net cost
performance of US$41.0 million and favorable currency of US$43.0
million, partially offset by the impact of divestitures, plant
closures and other items.

For second quarter 2008, Visteon's operating income of
US$53.0 million was an improvement of US$44.0 million from the
same period in 2007.  This improvement was driven by increased
product gross margin, partially offset by unreimbursed
restructuring and other qualifying costs and implementation
costs associated with the company's overhead cost reduction
initiative.  Unreimbursed restructuring and other qualifying
costs include US$12.0 million related to the sale of the Swansea
operation.

Operating income for second quarter 2008 also included
US$7.0 million of asset impairment related to the Swansea sale.

Cash provided by operating activities for second quarter 2008
was US$133.0 million, US$13.0 million lower than second quarter
2007. Capital expenditures for second quarter 2008 were US$80.0
million, unchanged from the same period a year ago.  Free cash
flow for second quarter 2008 was US$53.0 million, compared with
US$66.0 million in the same period of 2007.  The decrease is
attributable to net restructuring cash use, higher interest
payments and other items, partially offset by improved trade
working capital and changes in receivables sold under the
company's securitization facility.

During second quarter 2008, Visteon issued US$206.0 million in
aggregate principal amount of new 12.25 percent notes due in
2016 and repurchased US$344.0 million of its 8.25 percent notes
due in August 2010.  This reduced the amount outstanding on the
2010 notes to US$206.0 million.

As of June 30, 2008, Visteon's cash balances totaled
US$1.51 billion compared with US$1.76 billion as of Dec. 31,
2007, and total debt was US$2.67 billion, approximately US$180.0
million lower than year-end 2007.

                         First Half 2008

For the first six months of 2008, Visteon narrowed its net loss
by US$73.0 million to US$147.0 million.  Total sales for first
half 2008 of US$5.77 billion were lower by US$97.0 million from
the same period 2007.  Total product sales of US$5.52 billion
were US$71.0 million lower.  First half 2008 results include
US$41.0 million of restructuring expenses and other qualifying
costs in excess of escrow account reimbursement and a US$55.0
million increase in the company's tax provision.

EBIT-R for first half 2008 increased US$160.0 million over the
first six months of 2007 to US$129.0 million.  Cash from
operations was positive US$7.0 million for the first six months
of 2008, slightly below the US$15.0 million reported in the same
period a year ago. Capital expenditures of US$154.0 million were
US$10.0 million higher than the first six months of 2007.  Free
cash flow was a use of US$147.0 million for first half 2008,
compared with US$129.0 million for the same period the previous
year.

                  Restructuring and Divestitures

Visteon continues to make solid progress implementing its three-
year plan.  During the second quarter, Visteon ceased production
at its Bedford, Ind. facility, and closed two fuel tank
facilities in Germany.  Additionally in July, the company
divested its Swansea, UK, facility and ceased production at its
Concordia, Mo. facility.

By completing the sale of its Swansea chassis manufacturing
operation, effective July 7, Visteon divested its largest UK
operation, which generated negative gross margin of
approximately US$40.0 million on sales of approximately US$80.0
million during 2007. The company expects to record losses of
approximately US$47.0 million in connection with the sale, of
which US$32.0 million was recorded during second quarter 2008 -
including US$18.0 million of employee severance and termination
benefits, US$7.0 million of pension curtailment losses and
US$7.0 million of asset impairment. These losses were partially
offset by US$13.0 million of escrow account reimbursement.

Visteon said it continues to address its remaining operations in
the UK and commercial agreements are in place to address the
operating losses at the company's other UK manufacturing
facilities.  To date, 27 of the 30 targeted facility actions —
including nine during 2008 — have been accomplished.

"Last fall we highlighted the significant losses in our UK
operations and indicated it was our top priority to address
these operations during 2008," Stebbins said.  "With the sale of
Swansea and the agreements reached regarding our other UK
facilities, we are delivering on this commitment."

In addition to the actions under the company's three-year plan,
Visteon also announced that it will be closing its interiors
facility in Durant, Miss., and will be consolidating that
production in other facilities.  In January Visteon stated it
expects to generate cumulative savings of approximately
US$215.0 million over three years as part of its overhead cost-
reduction initiative and remains on track to generate the
expected savings.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2008, are available
for free at http://researcharchives.com/t/s?3053

                    About Visteon Corporation

Headquartered in Van Buren Township, Michigan, Visteon
Corporation (NYSE: VC) -- http://www.visteon.com/-- is an
automotive supplier that designs, engineers and manufactures
innovative climate, interior, electronic and lighting products
for vehicle manufacturers, and also provides a range of products
and services to aftermarket customers.  The company also has
corporate offices in Shanghai, China; and Kerpen, Germany; the
company has facilities in 26 countries and employs approximately
38,500 people.

                          *     *     *

Fitch Ratings has affirmed Visteon Corporation's ratings as: (i)
issuer default rating (IDR) at 'CCC'; (ii) senior secured bank
facilities at 'B/RR1'; and (iii) unsecured notes at 'CC/RR6'.
Fitch has also assigned a rating of 'CC/RR6' to Visteon's new
12.25% senior unsecured notes being issued as part of the
company's debt exchange offer. The ratings cover approximately
US$2.8 billion in debt.  The rating outlook is negative.



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

COBALT MANUFACTURING: Annual Meetings Set for August 9
------------------------------------------------------
The members and creditors of Cobalt Manufacturing Limited will
hold their annual meetings on August 9, 2008, at 9:45 a.m. and
10:15 a.m., respectively, at Xihu Hall, Hangzhou Holiday Inn
Hotel, No. 289 North Jianguo Road, in Hangzhou, China.

At the meeting, Lo Wing Hung, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.


E-FORCE GLOBAL: Liquidators to Give Wind-Up Report
--------------------------------------------------
E-Force Global Limited will hold a final meeting for its
creditors on September 3, 2008, at 10:00 a.m., at 3705
Gloucester Tower, The Landmark, in 15 Queen's Road Central,
Hong Kong.

At the meeting, Lim Shyang Guey and Chan Yee Bun, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.


HENU PROPERTIES: Inability to Pay Debts Prompts Wind-Up
-------------------------------------------------------
At an extraordinary general meeting held on July 23, 2008, the
members of Henu Properties Investment Limited resolved to
voluntarily liquidate the company's business.

The company's liquidators are:

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


HENU REALTY: Inability to Pay Debts Prompts Wind-Up
---------------------------------------------------
At an extraordinary general meeting held on July 23, 2008, the
members of of Henu Realty Company Limited resolved to
voluntarily wind up the company's operations due to its
inability to pay its debts.

The company's liquidators are:

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


HKS (GUANGDONG): Members' General Meeting Set for September 3
-------------------------------------------------------------
The members of HKS (Guangdong) Limited will meet on Sept. 3,
2008, at 11:00 a.m., at Room 102, 1st Floor of Oriental Centrem
67-71 Chatham Road, Tsimshatsui, in Kowloon, Hong Kong.

At the meeting, Chan Sun Kwong, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.


KAFAT SERVICE: Creditors' Proofs of Debt Due on September 3
-----------------------------------------------------------
The creditors of Kafat Service Company Limited are required to
file their proofs of debt by September 3, 2008, to be included
in the company's dividend distribution.

The company commenced liquidation proceedings on July 25, 2008.

The company's liquidator is:

          Yip Pui Yee
          Prosperous Comm'l Bldg.
          24th Floor
          54-58 Jardine's Bazaar
          Causeway Bay
          Hong Kong


LEXWIN DEVELOPMENT: Members to Hear Wind-Up Report on Sept. 5
-------------------------------------------------------------
Lexwin Development Limited will hold a final general meeting for
its members on September 5, 2008, at 6:30 p.m., at Room 1303 of
Kowloon Building, 555 Nathan Road, in Mongkok, Kowloon.

At the meeting, Lui Siu Wor, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.


NM AGENCY: Creditors to Meet on September 5
-------------------------------------------
The creditors of NM Agency Leaders Association Limited will meet
on September 5, 2008, at 3:30 p.m. to appoint a liquidator and
to consider further matters relevant to the creditors' voluntary
wind-up.

The meeting will be held at Room 19A of Tung Hip Commercial
Building, 248 Des Voeux Road, in Central, Hong Kong.


ONWARD: Contributories and Creditors to Meet on Aug. 22
-------------------------------------------------------
Onward Electrical & Supplies Company Limited will hold an annual
meeting for its contributories and creditors on August 22, 2008,
at 11:00 a.m. and 11:30 a.m., respectively, at Room 203, 2nd
Floor of Duke of Windsor Social Service Building, 15 Hennessy
Road, in Wanchai, Hong Kong.


ROAD KING: S&P Holds Long-Term Corporate Credit Rating at BB
------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB' long-
term corporate credit rating on Road King Infrastructure Ltd.
(RKI).  The outlook is negative.  At the same time, S&P affirmed
its 'BB' issue rating on the senior unsecured notes guaranteed
by RKI.  Both ratings were removed from CreditWatch, where they
had been placed with negative implications on April 25, 2008
following legal proceedings against the former management of two
subsidiaries in Tianjin to gain control of the companies.

The affirmed rating on RKI reflects the company's high exposure
to China's cyclical and competitive real estate market amid an
evolving regulatory environment, its limited operating track
record in real-estate development, and aggressive financial
profile.  These weaknesses are mitigated by RKI's diverse asset
portfolio in toll-road and real-estate development projects and
access to stable cash flows from its toll-road operations.

"We expect the current court case will likely be prolonged,
which could disrupt the operations of the two Tianjin companies.
This would affect RKI's future cash flows and distract
management from executing its business plan and strategy amid a
weakening real estate market," said S&P's credit analyst
Christopher Lee.

In a worst-case scenario, RKI's financial profile could be
affected and it may take longer than S&P expects for its credit
metrics to improve.  It would also reduce the company's land
bank and cause a loss of HK$593 million from the investment in
its two Tianjin subsidiaries.  Prolonged legal proceedings could
also affect RKI's plan to spin off its real estate business.

On July 30, 2008, RKI announced that it had not yet secured
control of the two Tianjin subsidiaries and that it is still
pursuing legal proceedings against the former management of the
Tianjin companies.  Also, RKI announced that the former major
shareholders of Sunco Property Holdings Co. Ltd., the previous
owner of the two Tianjin companies, had initiated discussions to
settle the legal proceedings in Tianjin and Hong Kong, but no
agreement has been reached.


SAM CHEONG: Members' Final General Meeting Set for September 4
--------------------------------------------------------------
The members of Sam Cheong Company Limited will hold a general
meeting for its members on September 4, 2008, at 12:00 noon to
hear the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Lee Hing Tai, Ronald
          Malaysia Building, Room 1002, 10th Floor
          50 Gloucester Road, Wanchai
          Hong Kong



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

CHRYSLER LLC: Surpasses Second Quarter Financial Objectives
-----------------------------------------------------------
Ron Kolka, executive vice president and chief financial officer
of Chrysler LLC said it is ahead of its operational plan and it
continues to perform ahead of its financial plan for the second
quarter and first half of 2008, in spite of the severe economic
and industry challenges.

In a press statement, the company said that as of June 30, 2008,
it has Cash/Marketable Securities of US$11.7 billion, including
US$2.3 billion in Restricted Cash and excluding US$2.3 billion
in VEBA assets, ahead of its plan and down slightly from year-
end 2007.  As well, for the six months ended June 30, 2008,
Chrysler posted an EBITDA of approximately US$1.1 billion, ahead
of plan.

According to The Wall Street Journal, the public disclosure is a
rarity since Chrysler isn't required to share any financial
data.

WSJ, citing Jim Press, Chrysler president, said the company
wanted to tell the real story amid speculations that circulate
about the company.

Chrysler's holdings, WSJ indicated, included US$2.3 billion in
restricted cash, excluding US$2.3 billion in its retirement fund
assets.

In a statement, Mr. Kolka added that Chrysler's negative product
mix, largely driven by trucks and SUVs, was off-set in the first
half with a positive mix which includes the effects from
substantially reduced fleet sales; the effects of new products
-- the all-new Chrysler and Dodge minivans, Dodge Journey and
Jeep Liberty and the elimination of unprofitable models
(Chrysler PT Cruiser Convertible, Pacifica and Crossfire and the
Dodge Magnum).

                        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 on Aug 1, 2008,
Standard & Poor's Ratings Services lowered the ratings on
General Motors Corp., Ford Motor Co., and Chrysler LLC, all to
'B-' from 'B'.  The ratings on GM and Ford were removed from
CreditWatch with negative implications, where they had been
placed on June 20, 2008.  Chrysler will remain on CreditWatch
pending the renewal of certain bank lines at DaimlerChrysler
Financial Services Americas LLC, which S&P expects to be
completed in the next few days.  If the bank lines are renewed
as expected, S&P would affirms the ratings on Chrysler and DCFS
and remove them from CreditWatch.

On July 31, 2008, TCR said that Fitch Ratings has downgraded the
Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'.  The
Rating Outlook is Negative.  The downgrade reflects Chrysler's
restricted access to economic retail financing for its vehicles,
which is expected to result in a further step-down in retail
volumes.  Lack of competitive financing is also expected to
result in more costly subvention payments and other forms of
sales incentives.  Fitch is also concerned with the state of the
securitization market and the ability of the automakers to
access this market on an economic basis over the near term,
given the steep drop in residual values, higher default rates,
higher loss severity being experienced and jittery capital
markets.


CHRYSLER LLC: July 2008 U.S. Sales Down 29% at 98,109 Units
-----------------------------------------------------------
Chrysler LLC reported total July 2008 U.S. sales of 98,109
units, which is 29% below the same period last year.  Total July
sales reflect a continued contraction of the market of pickup
trucks and SUV sales and reductions in fleet sales.  The
company's recently completed "Let's Refuel America US$2.99 Gas
Guarantee" promotion boosted showroom traffic and helped sales
of Chrysler's newest highly fuel-efficient vehicles throughout
the three-month program period.

"We are writing a new chapter in the auto industry story as
customers, dealers and companies adjust to a changing
environment," Jim Press, Chrysler LLC Vice Chairman and
President, said.  "There are many changes taking place that give
us at the new Chrysler cause for optimism.  In the short term,
our 2009 model year vehicles with value packages will soon be
arriving in dealerships, and our August incentive packages are
the best deals of the year, helping to make owning as affordable
as leasing.

"Within the product lineup, our leadership in minivans is well-
timed as consumers look for fuel-efficient alternatives to
larger SUVs.  Two new fuel-saving hybrid SUVs, the Dodge Durango
and Chrysler Aspen will soon be hitting the streets.  The Dodge
Journey and Jeep(R) Patriot are gaining more customers on the
appeal of fuel efficiency and affordability.  And the success of
cars like the Dodge Avenger, Charger and Challenger shows that
customers still want their cars to stand out from the crowd.
Lastly, this fall we come to market with our best new pickup
truck ever — the 2009 Dodge Ram."

                          July Highlights

The Chrysler Town & Country posted a 24% increase with 8,070
sales versus July 2007 sales of 6,513 units.  With room for
seven passengers, and the industry-exclusive Swivel 'n Go(TM)
seating system, the Chrysler Town & Country could be considered
as a fuel-efficient alternative to a full-sized SUV.  Town &
Country sales in July helped drive total minivan sales up 5%.
Total long-wheel-base minivan retail sales increased 21% in
July.

The Jeep Patriot continues to gain traction in the market,
offering excellent fuel economy, interior flexibility and
utility at a great value.  Total sales of 3,451 were up 4%
versus last year due to consumer interest in the company's most
fuel-efficient vehicles.  Additionally, Jeep Patriot 2008 year-
to-date sales increased 119%, with 40,135 total sales when
compared with July 2007 year-to-date sales of 18,286 units.

Response to sales promotions of the Dodge Ram helped lesson the
impact of slow pickup truck demand.  Dodge Ram pickup sales were
down 27% (21,328 units) versus 2007 sales of 29,312, but sales
increased 32% when compared with June 2008 sales of 16,149
units.

The Dodge Avenger sedan continued with good performance with
4,318 units sold, up 2% when compared with July 2007 sales of
4,213.

The highly anticipated all-new Dodge Challenger SRT8(R) hit the
streets in July with excitement and solid sales results (2,895
units sold).  The return of the iconic Dodge Challenger combines
unmistakable design cues reminiscent of the original Challenger
with world-class performance making it the hottest vehicle on
the streets this summer.  In total, 3,990 Dodge Challengers have
been delivered to customers.

The company finished the month with 409,331 units of inventory,
or a 108-day supply.  As part of a planned reduction in
manufacturing and capacity, inventory is down 12% compared with
July 2007 when it totaled 464,875 units.

                      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 on Aug. 1, 2008,
Standard & Poor's Ratings Services lowered the ratings on
General Motors Corp., Ford Motor Co., and Chrysler LLC, all to
'B-' from 'B'.  The ratings on GM and Ford were removed from
CreditWatch with negative implications, where they had been
placed on June 20, 2008.  Chrysler will remain on CreditWatch
pending the renewal of certain bank lines at DaimlerChrysler
Financial Services Americas LLC, which S&P expects to be
completed in the next few days.  If the bank lines are renewed
as expected, S&P would affirms the ratings on Chrysler and DCFS
and remove them from CreditWatch.

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.

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.


CHRYSLER LLC: Arm Completes Renewal of US$24BB Annual Financing
-------------------------------------------------------------
Chrysler Financial, the subsidiary of Chrysler LLC, has
completed the renewal of its annual credit facilities.  The
US$24 billion credit facilities provide funding for the
company's dealer and consumer financial services products.
Originally, the company was seeking a renewal of its conduit
credit facilities in the amount of US$30 billion.  Chrysler
Financial reduced the amount required due to conditions in the
credit markets and changes in the company's retail strategy.

"We are pleased with the completion of our credit facilities
renewal and the continuing confidence in our company
demonstrated by the banking community," Tom Gilman, executive
vice chairman - Chrysler Financial, said.  "90% of all banks
that were part of the original conduit participated in the
renewal.  The liquidity provided by these facilities will enable
us to support our dealers and their retail customers."

"I would like to thank our investors who have continued to
support us through the renewal,' Mr. Gilman added.  "And, I
would like to acknowledge the skilled leadership of Citi,
JPMorgan and the Royal Bank of Scotland who led the syndication
of the loan facilities and partnered with us to manage such a
large transaction."

"Getting this world-class financing done in this market is a
validation of Chrysler Financial and Chrysler, their management
and their strategic plans," James B. Lee, Jr., vice chairman of
JPMorgan, said.

"The depth and breadth of participation in this transaction was
impressive, particularly in the current market environment,"
said Chad Leat, chairman of Citi's Alternative Asset Group.

             About Chrysler Financial and Chrysler LLC

Chrysler Financial -- http://corp.chryslerfinancial.com/--
offers automotive financial products and services to both
dealers and consumers of Chrysler, Jeep(R) and Dodge vehicles in
the U.S., Canada, Mexico and Venezuela.  In addition it offers
vehicle wholesale and retail financing to more than 3,600
Chrysler, Jeep and Dodge dealers.  Nearly three million drivers
in the United States benefits the financing of Chrysler
Financial.  Chrysler Financial has an employee base of 4,000 and
supports a portfolio of US$70 billion.

Headquartered 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 on Aug 1, 2008,
Standard & Poor's Ratings Services lowered the ratings on
General Motors Corp., Ford Motor Co., and Chrysler LLC, all to
'B-' from 'B'.  The ratings on GM and Ford were removed from
CreditWatch with negative implications, where they had been
placed on June 20, 2008.  Chrysler will remain on CreditWatch
pending the renewal of certain bank lines at DaimlerChrysler
Financial Services Americas LLC, which S&P expects to be
completed in the next few days.  If the bank lines are renewed
as expected, S&P would affirms the ratings on Chrysler and DCFS
and remove them from CreditWatch.

On July 31, 2008, TCR stated that Fitch Ratings has downgraded
the Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'.
The rating outlook is negative.  The downgrade reflects
Chrysler's restricted access to economic retail financing for
its vehicles, which is expected to result in a further step-down
in retail volumes.  Lack of competitive financing is also
expected to result in more costly subvention payments and other
forms of sales incentives.  Fitch is also concerned with the
state of the securitization market and the ability of the
automakers to access this market on an economic basis over the
near term, given the steep drop in residual values, higher
default rates, higher loss severity being experienced and
jittery capital markets.


GENERAL MOTORS: Incurs US$15.5BB 2008 Second Qtr Prelim Net Loss
--------------------------------------------------------------
General Motors Corp. reported its financial results for the
second quarter of 2008, which include significant charges and
special items.  The reported net loss was US$15.5 billion or
US$27.33 per share for the second quarter, including these
charges and special items, compared with net income from
continuing operations of US$784 million or US$1.37 per share in
the second quarter of 2007.  On an adjusted basis, GM posted a
net loss of US$6.3 billion or US$11.21 per share, compared with
net income from continuing operations of US$1.3 billion or
US$2.29 per share in the same period last year.

GM previously disclosed that it anticipated a significant second
quarter loss, driven in large part by costs associated with the
American Axle and Manufacturing Holdings Inc. and local U.S.
strikes, and charges related to the successful U.S. hourly
attrition program, actions to reduce North American truck
capacity, Delphi and other matters.  The operating and liquidity
actions announced on July 15 contemplated weak second quarter
results and a continued unfavorable U.S. environment.  The
company has outlined a strong cadence of product, powertrain,
capacity and liquidity actions over the past 60 days, to realign
the business with current U.S. economic and auto market
conditions, and position the company for profitable global
growth.

Some of those actions include cessation of production at four
truck plants, shift reductions at two truck plants, the addition
of shifts at two car plants, announcement of the new Chevrolet
global small car program and next generation Chevrolet Aveo
compact car, introduction of a high-efficiency 4-cylinder engine
for U.S. application, salaried headcount reductions and
compensation actions, deferral of certain payments to the UAW
VEBA, suspension of the dividend on common stock, reductions in
sales and marketing budgets, the strategic review of the Hummer
brand and production funding approval for the Chevrolet Volt
extended range electric vehicle.

"As our recent product, capacity and liquidity actions clearly
demonstrate, we are reacting rapidly to the challenges facing
the U.S. economy and auto market, and we continue to take the
aggressive steps necessary to transform our U.S. operations,"
said GM Chairman and CEO Rick Wagoner.  "We have the right plan
for GM, driven by great products, building strong brands, fuel-
economy technology leadership and taking full advantage of
global growth opportunities."

GM's second quarter results were primarily driven by several
factors: significant losses in GM North America (GMNA) due to
continuing U.S. industry volume declines and shifts in vehicle
mix, the long strike at American Axle and large lease-related
charges; a number of special charges associated with GM's
ongoing restructuring actions; continued losses at GMAC
Financial Services (GMAC) and updated estimates regarding
recoveries and expectations of assumed benefit obligations in
the Delphi bankruptcy.

GM recorded US$9.1 billion of special items, predominantly non-
cash in nature for the current quarter or near-term periods,
which include:

   * US$3.3 billion relating to the 2008 GMNA hourly
     special attrition program;

   * US$2.8 billion adjustment to the Delphi reserve;

   * US$1.1 billion GMNA restructuring and capacity
     related costs;

   * US$1.3 billion impairment of GM's equity interest
     in GMAC;

   * US$340 million Canadian Auto Workers contract-related
     accounting charges; and

   * US$197 million related to settlement of the strike at
     American Axle.

In addition, the GMNA adjusted net income results reflect a
US$1.6 billion charge related to lower residual values for off-
lease vehicles.  The total impact of declining residual values
in GM's second quarter earnings was US$2.0 billion, including
impairments of lease assets at both GMAC and GM.

Revenue for the second quarter was US$38.2 billion, down from
US$46.7 billion in the year-ago quarter, which is more than
accounted for by the decline in GMNA revenues.  Combined
revenues for the GM Europe (GME), GM Asia Pacific (GMAP) and GM
Latin America, Africa and Middle East (GMLAAM) regions were
US$20.8 billion, up US$1.7 billion over the same period 2007.

GM reports its automotive operations and regional results on an
earnings-before-tax basis, with taxes reported on a total
corporate basis.

                   GM Automotive Operations

The second quarter adjusted automotive loss of US$4.0 billion
(US$9.1 billion reported) reflects the losses in GMNA driven
largely by volume declines including the impact of the American
Axle and local strikes as well as adjustments to lease vehicle
residual reserves.  In addition, GMAP results were negatively
impacted by adjustments relating to hedge accounting.  The
losses were partially offset by exceptionally strong performance
in the GMLAAM region and continued profitability in GME.  The
loss compares with adjusted automotive earnings from continuing
operations of US$1 billion in the second quarter of 2007
(reported earnings of US$803 million).

GM sold 2.29 million vehicles worldwide in the second quarter,
down 5% year over year.  Sales in GMNA were down 20%, or 236,000
units versus the year-ago period, while sales outside of North
America grew by 10% or 116,000 units.  A record 65% of GM unit
sales for the second quarter were outside the United States.
Global market share was 12.3%, down 0.9% due to weakness in
North America.

GMNA revenue for the second quarter was US$19.8 billion, down
from US$29.7 billion in the year-ago period.  The decline was
largely attributable to a markedly weaker U.S. auto market and
lost production due to the work stoppage at American Axle, and
at several GM facilities in May and June.  Although volume
overall was down 20%, some of GM's most recently launched cars
and crossovers continue to sell especially well, including the
Chevrolet Malibu and Cadillac CTS, up 113% and 33%,
respectively, over the year-ago period.

GMNA adjusted results reflect significantly lower volume
resulting from overall industry deterioration, continued dealer
stock reductions, the negative impact of industry segment
shifts, model/option mix and an increase to lease vehicle
residual reserves related to declining residual values.  The
results also reflect favorable structural and net material cost
performance and pension/OPEB/manufacturing savings.

GME achieved record second-quarter sales of 590,000 units,
driven by 48% sales growth in Russia and exceptional performance
of the Chevrolet brand, which saw a 19% increase in sales to
137,000 units and record market share of 2.2% in the second
quarter.  Material and structural cost performance improved
during the quarter.  However, unfavorable exchange rates and an
economic slowdown in key markets including Spain, Italy and the
U.K. had a significant impact on earnings.

Improved mix, net pricing and material cost performance along
with strong sales performance in key markets helped GMLAAM to
improve its year-over-year earnings before tax by over 50%, to
US$445 million.  Volume for the region was up nearly 18% over
2007, and quarterly sales records were set in Brazil, Chile,
Egypt and North Africa.

The second quarter earnings for GMAP reflect a US$285 million
pretax accounting charge related to adjusting prior FAS133 hedge
accounting, partially offset by gains in India and Thailand, and
improved operating performance at Australia's Holden.

                            GMAC

On a standalone basis, GMAC reported a net loss of US$2.5
billion for the second quarter 2008.  Affecting results were
continuing large losses at Residential Capital, LLC related to
asset sales, valuation adjustments and loan loss provisions, as
well as a US$716 million pre-tax impairment of lease assets in
the automotive finance business as a result of lower used
vehicle prices, particularly for SUVs.  These items were
partially offset by profitable results in the insurance and
international auto finance businesses.  GM reported an adjusted
loss of US$1.2 billion for the quarter attributable to GMAC, as
a result of its 49% equity interest.

Following a first quarter impairment against its investment in
GMAC, GM conducted further analysis in the second quarter to
determine if additional impairments were required based on
current fair value estimates.  Factors considered include
continued deterioration in the mortgage and consumer credit
markets and a more challenging North American automotive
financing environment.  As a result, GM recorded impairment
charges totaling US$1.3 billion against its common and preferred
equity interests in GMAC.

                     Cash and Liquidity

Reflecting the non-cash nature of many of the charges recorded
in GM's reported second-quarter results, cash, marketable
securities, and readily-available assets of the Voluntary
Employees' Beneficiary Association trust totaled US$21.0 billion
on June 30, 2008, down from US$23.9 billion on March 31, 2008.
The change in liquidity reflects negative adjusted operating
cash flow of US$3.6 billion in the second quarter 2008, driven
primarily by weaker results in GMNA.  As of June 30, including
undrawn, committed U.S. credit facilities of approximately US$5
billion, GM has access to approximately US$26 billion in
liquidity.  In July, GM provided notice to draw US$1 billion
under its secured revolving loan facility.

As disclosed in the Troubled Company Reporter on July 16, 2008,
GM is taking operating and related actions to improve cash flow
by approximately US$10 billion through the end of 2009.  In
addition, the company has outlined plans to raise approximately
US$5 billion through capital markets activities and asset sales.
GM is confident that these initiatives, along with its current
cash position and US$4-5 billion of committed U.S. credit lines,
will provide the company with ample liquidity to meet its
operational needs through 2009.

The loss is GM's third largest in its 100-year history, various
reports say.  Detroit Free Press' Katie Merx relates that
investors were unfazed by GM's loss and that cuts are under way
soften impact of blow on the automaker's shares.

GM's second-quarter loss pushed the US$8.7-billion second-
quarter loss Ford reported down to fourth place "in the annals
of miserable quarters," according to Ms. Merx.  GM, she says,
now owns the top three spots, including its US$39 billion loss
in the third quarter in 2007 and its US$21 billion loss in the
first quarter in 1992.

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 disclosed in the Troubled Company Reporter on Aug. 1, 2008,
Standard & Poor's Ratings Services lowered the ratings on
General Motors Corp., Ford Motor Co., and Chrysler LLC, all to
'B-' from 'B'.  The ratings on GM and Ford were removed from
CreditWatch with negative implications, where they had been
placed on June 20, 2008.  Chrysler will remain on CreditWatch
pending the renewal of certain bank lines at DaimlerChrysler
Financial Services Americas LLC, which S&P expects to be
completed in the next few days.  If the bank lines are renewed
as expected, S&P would affirms the ratings on Chrysler and DCFS
and remove them from CreditWatch.

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.


GEN. MOTORS: Financial Arm Posts US$2.5BB Prelim 2nd Qtr. Loss
--------------------------------------------------------------
GMAC LLC's wholly owned subsidiary GMAC Financial Services
reported a 2008 second quarter net loss of US$2.5 billion,
compared to net income of US$293 million in the second quarter
of 2007.    Affecting results in the quarter were a US$716
million impairment of vehicle operating lease assets in the
automotive finance business as a result of declining vehicle
sales and lower used vehicle prices for certain segments, as
well as significant losses at Residential Capital, LLC related
to asset sales, valuation adjustments, and loan loss provisions.
These items were partially offset by profitable results in the
insurance and international auto finance businesses.

"A soft economic environment and continued volatility in the
mortgage and credit markets have significantly affected results
for the second quarter," GMAC Chief Executive Officer Alvaro G.
de Molina said.  "While conditions such as higher fuel prices
and weaker consumer credit prove to be headwinds, we continue to
aggressively manage through this economic disruption to position
GMAC for longer-term success.

"Despite the current obstacles, we are encouraged by some key
wins such as successfully completing our global refinancing and
bond exchange, preserving long-term ownership of GMAC Bank, and
de-risking the balance sheet at ResCap.  There is still more to
do and the management team is committed to taking the steps
needed to ensure a solid foundation for the company, including
continued realignment and streamlining of the mortgage business
and better optimization of the risk and reward model in auto
financing."

                Second Quarter Net Income/(Loss)
                           (US$ in millions)

                              Q208     Q207       Change
                              ----     ----       ------
    Global Automotive Finance (US$717) US$395    (US$1,112)
    Insurance                     135     131            4
    ResCap                     (1,860)   (254)      (1,606)
    Other(1)                      (40)     21          (61)
    Net Income/(Loss)       (US$2,482) US$293    (US$2,775)


     (1) Includes Commercial Finance operating segment, 21%
         ownership of former commercial mortgage unit and other
         corporate activities.

                        Liquidity and Capital

GMAC's consolidated cash and cash equivalents were US$14.3
billion as of June 30, 2008, down slightly from the cash balance
of US$14.8 billion at March 31, 2008.  Of these total balances,
ResCap's cash and cash equivalents balance was US$6.6 billion at
quarter-end, up from US$4.2 billion at March 31, 2008.  The
change in consolidated cash is related to repayment of GMAC and
ResCap debt maturities, offset by new secured funding, lower
asset levels and growth in deposits at GMAC Bank.

In June, GMAC and ResCap announced a comprehensive series of
transactions, which included extending key bank facilities,
increasing the amount of available funding and further enhancing
liquidity positions. The transactions included:

   -- GMAC obtaining a new, globally syndicated US$11.4 billion
      secured revolving credit facility with a multi-year
      maturity which steps down to US$7.9 billion after two
      years, and renewing the one-year, syndicated
      commercial paper back-up facility, New Center
      Asset Trust, in the amount of US$10 billion.

   -- ResCap extending for one year the maturity on
      substantially all of its bilateral bank facilities
      totaling approximately US$11.6 billion and obtaining
      a new US$2.5 billion syndicated whole loan repurchase
      facility.

   -- ResCap executing private exchange and cash tender
      offers for U.S. dollar equivalent of US$14.0 billion
      in aggregate principal amount of its outstanding
      debt, thereby reducing debt outstanding by US$2.9 billion
      in principal and extending maturities.

   -- GMAC providing a US$3.5 billion two-year senior secured
      credit facility to ResCap, which includes US$750 million
      of first loss protection from General Motors Corp.
      and Cerberus ResCap Financing LLC, an affiliate of
      FIM Holdings LLC.

   -- Significantly reducing ResCap's tangible net worth
      covenants related to its credit facilities from the
      previous level of US$5.4 billion to US$250 million
     (excluding GMAC Bank) with consolidated liquidity
      of US$750 million.

During the second quarter, GMAC and certain affiliates of
Cerberus disclosed approximately US$2.4 billion of intended
actions to support ResCap's near term liquidity. In addition,
GMAC contributed to ResCap approximately US$250 million
(principal amount) of ResCap debt, which was subsequently
retired.  In exchange for the capital contribution, GMAC
received additional shares of ResCap preferred equity equal to
the market value of the debt as of March 31, 2008.  As of June
30, 2008, ResCap's total equity base was US$4.1 billion.

The Federal Deposit Insurance Corporation granted a 10-year
extension of GMAC Bank's current ownership on July 21, 2008.
This action enables GMAC to strengthen the bank over the long-
term, which is an important source of funding for mortgage and
automotive financing activities.

                    Global Automotive Finance

GMAC's global automotive finance business reported a net loss of
US$717 million in the second quarter of 2008, compared to net
income of US$395 million in the year-ago period.  Weaker
performance was primarily driven by a US$716 million pre-tax
impairment on operating leases in the North American operation,
which more than offset profits in the international business.
In measuring the accounting impairment, the company was able to
consider expected cash flows from various arrangements with
General Motors Corp., including approximately US$750 million
related to the risk-sharing arrangement; approximately US$800
million related to the residual support program; and
approximately US$350 of residual-related settlement payments.
Additional factors affecting results were an increase in the
provision for credit losses due to loss severity and lower gains
on sales.

The North American lease portfolio included approximately
US$30 billion in assets as of June 30, 2008 with approximately
US$12 billion in sport-utility vehicle leases, US$6 billion in
truck leases and US$12 billion in car leases.  The impairment of
operating leases resulted from the sharp decline in demand and
used vehicle sale prices for sport-utility vehicles and trucks
in the U.S. and Canada, which has affected GMAC's remarketing
proceeds for these vehicles.  As a result of these market
trends, GMAC is taking steps to reduce the volume of new lease
originations in the U.S. The company will also discontinue the
SmartBuy balloon contract program, suspend all incentivized
lease programs in Canada and increase pricing and returns on
other lending activities.  GMAC's lease portfolio outside of
North America has not experienced the same decrease in market
value.

New vehicle financing originations for the second quarter of
2008 decreased to US$12.4 billion of retail and lease contracts
from US$14.0 billion in the second quarter of 2007, due to lower
industry sales levels in North America.

Credit losses have increased in the second quarter of 2008 to
1.40% of managed retail assets, versus 0.92% in the second
quarter of 2007.  The sharp increase is related to the current
trends in used vehicle prices, which drove higher loss severity.
While losses trended up, delinquencies decreased in the second
quarter of 2008 to 2.30% of managed retail assets, versus 2.46%
in the prior year period.  The decrease reflects the recent
measures taken to tighten underwriting criteria and increased
customer servicing activities as the U.S. economy remains weak.

                          Insurance

GMAC's insurance business recorded net income of US$135 million,
up slightly from net income of US$131 million in the second
quarter of 2007.  Results primarily reflect a non-recurring tax
benefit, which offset higher weather-related losses.

The insurance investment portfolio was US$7.1 billion at June
30, 2008, compared to US$7.4 billion at June 30, 2007.  The
decrease in the portfolio is due primarily to the repayment of
intercompany loans related to the funding of the Provident
Insurance acquisition.  The majority of the investment portfolio
is in fixed income securities with less than 10 percent invested
in equity securities.

In July, GMAC's plan to dividend 100 percent of the voting
interest in the insurance business to GMAC's shareholders was
completed.  GMAC continues to hold 100 percent of the economic
interest in GMAC Insurance.  This action was taken in the
interest of maintaining the current financial strength rating
and, therefore, preserving the value of the operation.

                     Real Estate Finance

ResCap reported a net loss of US$1.9 billion for the second
quarter of 2008, compared to a net loss of US$254 million in the
year-ago period.  Results are primarily attributable to
significant losses from asset sales as ResCap reduced the size
and risk of its balance sheet and higher loan loss provisions
due to continued deterioration in certain European markets.
Partially offsetting losses was a US$647 million gain recognized
from ResCap's tender offer and the retirement of debt.

ResCap continues to implement an aggressive realignment of its
business amid a vastly changing mortgage market, despite the
negative impact to short-term earnings.  Recent actions include
significantly reducing the size and risk of its balance sheet,
originating only mortgages with market liquidity, winding down
the business lending portfolio, leveraging the world-class
servicing platform, and continuing to rationalize the cost base.

ResCap's U.S. residential finance business is beginning to
stabilize as the company reduces balance sheet risk and
continues to realign operations.  While prime conforming loan
production decreased modestly year-over-year with US$12.2
billion in the second quarter of 2008 versus US$12.7 billion in
the year- ago period, production of higher-margin government
loans increased to US$3.8 billion this quarter compared to
US$800 million in the second quarter of 2007.  In addition,
operating expense targets were achieved.

The international mortgage business experienced a decline in net
income in the second quarter related to illiquidity in the
global capital markets and the continued weakening of consumer
credit in key markets.  This drove significant realized and
unrealized losses on loans held for sale.  As a result of the
market environment, ResCap has currently suspended all
production outside of the U.S. with the exception of Canadian
insured loans.  The business lending operations also experienced
continued pressure in the second quarter related to the decline
in home sales and residential real estate values.

                          Outlook

GMAC continues to manage through a softer economic environment
and a global market disruption with significant actions geared
toward achieving longer-term financial health.  Recent actions
include:

   -- Stabilizing liquidity by refinancing bank lines,
      extending debt maturities, and preserving long-term
      ownership of GMAC Bank;

   -- Significantly reducing ResCap's balance sheet;

   -- Taking steps to increase pricing and improve returns
      for all automotive leasing and lending activities;

   -- Reducing the volume of new lease originations in
      the U.S. and suspending all incentivized lease
      programs in Canada;

   -- Executing a plan to preserve the value of the insurance
      business; and

   -- Leveraging the proven servicing platforms in mortgage and
      auto finance to mitigate frequency and severity of losses.

Looking ahead, the company is focused on executing strategies
that restore profitability and longer-term financial health
including improving funding costs, evaluating opportunities to
shed non-core operations, and taking steps that move GMAC toward
an independent, bank-funded lender and servicer.

                         About GMAC LLC

GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors
Acceptance Corporation, is a global, diversified financial
services company that operates in approximately 40 countries in
automotive finance, real estate finance, insurance and other
commercial businesses.  GMAC was established in 1919 and employs
approximately 26,700 people worldwide.

GMAC Financial Services is in turn wholly owned by GMAC LLC.

Cerberus Capital Management LP led a group of investors that
bought a 51% stake in GMAC LLC from General Motors Corp. in
December 2006 for US$14 billion.

                       About General Motors

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.


RATHI ISPAT: Moves Board Meeting to Aug. 7 Due to Lack of Quorum
----------------------------------------------------------------
A meeting of Rathi Ispat Ltd's Board of Directors held July 31,
2008, was adjourned for August 7, 2008, due to lack of quorum.

At that meeting, Rathi Ispat Ltd's Board is expected to consider
approval of the company's quarterly unaudited financial results
for the quarter ended June 30, 2008.

The Board is also expected to consider resetting the company's
financial year from twelve month to fifteen month.

Last month, Mr. Sanjeev Kumar Aggarwal resigned as director of
the company.  With his resignation, the company reconstituted
its audit committee, share transfer committee and investor
grievance committee in a Board meeting held May 7.

                          Sick Company

Due to its eroded net worth, the company made a reference before
the Board for Industrial & Financial Reconstruction under the
provision of Section 15(1) of the Sick Industrial Companies
(Special Provisions) Act, 1985.

On March 10, 2008, the BIFR directed Punjab National Bank not to
sell or transfer 8.01% equity shares of the company without
prior BIFR order.

Also in March, Rathi Ispat's manufacturing unit in Ispat Nagar,
Ghaziabad stopped production due to labour strike and financial
crisis.

The company has been recording net losses for three consecutive
years.  For the year ended March 31, 2008, the company incurred
a net loss of Rs. 372.31 million compared to net losses of
Rs. 528.64 million and Rs. 74.82 million in the years ended
March 31, 2007 and 2006, respectively.

                    About Rathi Ispat Limited

Based in Ghaziabad, India, Rathi Ispat Limited --
http://www.rathiispat.com/-- manufactures carbon, alloy, and
stainless steel products.  Its products include castings, such
as billets, slabs, and heavy steel castings; and hot rolled
steel products, such as hot rolled flats and wire rods.  The
company also manufactures stainless steel valves, and automobile
and other machinery parts.  The company has a technical
collaboration with TOR ISTEQ-Steel Corporation, Luxemburg.
Rathis Ispat was established by Gordhan Das in 1969.  Rathi
Ispat Limited is a member of Rathi group.


* CRISIL: Asset Quality of Retail Loans Has Weakened
----------------------------------------------------
The asset quality of retail loans, across segments, has weakened
in recent months, validating CRISIL's concerns.  The rising
proportion of unsecured loans, increasing exposure to high-risk
customers, rising interest rates, and decline in credit
standards observed during the strong credit growth period, 2004
to 2007, have all led to this situation.  CRISIL believes that
the asset quality deterioration will not precipitate a crisis,
but some lenders could suffer significant losses in this
episode.

Says Raman Uberoi, Senior Director, CRISIL Ratings, “In January
2008, CRISIL had forecast a weakening in asset quality of retail
portfolio over the near to medium term.  The present rise in
delinquencies, in general, is in line with our expectations.
This situation is expected to continue for the next few months.
In some asset classes, though, the increase in delinquencies has
been faster.”

Unsecured segments such as personal loans and credit card
receivables, as well as two-wheeler commercial vehicle and used-
car loans, will remain the worst affected.  Delinquencies have
increased across the retail portfolios of banks, non-banking
financial companies, and housing finance companies.

The rising portfolio delinquencies are also reflected in the
performance of CRISIL-rated securitized retail asset pools,
backed by personal, car and commercial vehicle loans.  Asset
pools of recent vintage have shown weaker collection
performance.  However, CRISIL, while rating new asset pools, has
proactively factored in the decline in asset quality by
appropriately increasing the credit enhancement.  As a result,
the overall protection against credit losses remains strong.

Tarun Bhatia, Head, Financial Sector Ratings, CRISIL Ratings,
“CRISIL expects the gross non-performing assets in retail loans
to increase to around 4 percent by March 2009, from 2.7 per cent
as on March 31, 2007.  The system as a whole can absorb this,
but lenders who are heavy on unsecured loans and on high-risk
customers will suffer significant losses.”

The asset quality deterioration is unlikely to result in a
system-wide crisis.  There are two reasons for this: first, the
less-risky mortgage and new car loan segments, which continue to
dominate the retail lending portfolio of lenders, at about two-
thirds of total retail loans outstanding, are less affected by
the decline.  Second, rising personal incomes and younger
borrower profiles provide significant cushion in mortgage loans.


* INDIA: Three More Banks Expected to Hike Rates This Week
----------------------------------------------------------
The Economic Times reports that public sector banks Bank of
Baroda, Bank of India and Union Bank are likely to raise their
rates by 0.5-0.75 per cent this week in the face of tight
monetary policy announced by the Reserve Bank of India.

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.

According to the Economic Times, the banks are understood to be
contemplating this week their Asset Liability Committee (ALCO)
meetings, which decide on the rate hikes.

Punjab National Bank, ICICI Bank and HDFC Bank Ltd have already
hiked their interest rates by 75 basis points, a quarter point
more than what the Reserve Bank has signaled, the Times says.

Meanwhile, the Times relates that the finance ministry has asked
all public sector banks and insurance companies to bring down
their operational cost by 10% by reducing expenditure on
programmes that can be avoided.

The Times says the move follows finance ministry’s recent
directive to implement austerity measures by all the government
departments.

“The prudent measures would help banks tackle a scenario where
high interest rates and low margins are impacting profits,” a
finance ministry official told the times.

“The government has asked the institutions to take cost-cutting
measures as their declining profits would lead to reduced
dividend payment to the government, resulting in more pressure
on fiscal situation,” the finance ministry official added.


* MOODY'S: Growing Economic Risks Won't Affect India's Ratings
--------------------------------------------------------------
Moody's Investors Service says that the risks confronting
India's economy have grown, but not yet to the extent that the
government's Baa3 foreign currency and Ba2 local currency
ratings are threatened.

"Higher oil prices and the lack of adequate fiscal policy
reactions amidst high pent-up price pressures are putting the
burden of macro-economic adjustment on the monetary
authorities," says Mr. Aninda Mitra, a VP/Senior Analyst with
Moody's Sovereign Risk Unit.

"As a result, policy as well as market interest rates could
rise, and a sharp deceleration in growth may follow," says
Mitra.

Concurrently, "greater government borrowing needs, while not
leading to a material deterioration of its key credit metrics,
would likely prevent an improvement in the remainder of FY08-09,
contrary to our earlier expectation," adds Mitra.

Mitra made his remarks in conjunction with the release of a new
Moody's report - which he authored - on the outlook for India's
sovereign ratings.

In the report, he examines the economic factors which drive the
ratings as well as the reasons behind the two-notch differential
between its Baa3 foreign currency rating and Ba2 local currency
rating.  He analyzes various scenarios, built around certain oil
price assumptions, which could stress India's credit metrics.

Furthermore, political issues play a role in India's fiscal
problems, the report says.  The government's fiscal difficulties
relate partly to its inability to raise retail fuel prices and
reduce the growing, off-budget fiscal cost of reimbursing
downstream oil companies as part of its subsidies program.

"While Moody's overall assessment is that the current
constellation of risks is captured in the prevailing stable
outlook, downside pressures could emerge," Mitra says, adding,
"The sources would be two fold."

"Firstly, they could involve deteriorations in the government's
general debt metrics and its access to external liquidity, given
intensified commodity price shocks and an inadequate fiscal
response," says Mitra.

"Secondly, such pressures could be due to the rising risk of
fiscal spillovers to India's external accounts; such spillovers,
if large enough, could weaken the case for the two-notch gap
between its foreign currency and local currency ratings," says
Mitra.

Finally, the outlook for reform remains uncertain, even though
the Congress Party-led administration has seen off its leftist
partners and re-shuffled its coalition. The author notes that,
"elections are due in less than a year's time, and it is not
clear whether the new coalition partners would support further
reforms that could alleviate the country's economic stresses."



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

ANEKA TAMBANG: Sales Drops by 5% to IDR3.23 Tril. in 2nd Quarter
----------------------------------------------------------------
In a filing with the Australian Stock Exchange, Aneka Tambang
(Persero) Tbk (PT) disclosed that its second quarter of 2008
sales revenue dropped by 5% to IDR3.23 trillion from IDR3.38
trillion, largely due to lower nickel prices.  Antam's unaudited
preliminary sales revenues in the first half of 2008 amounted to
IDR5.35 trillion, a 10% decrease compared to the same period
last year.

Antam's total nickel ore sales volume was 17% lower at
1,655,563 wmt in the second quater of 2008.  Heavy trading
activities by Logam Mulia unit boosted gold sales by 423% in the
second quarter of 2008 to 1,982 kilogram.

     Production

   * In the second quarter of 2008, Antam produced 4,152 tonnes
     nickel contained in ferronickel, a 6% decrease over the
     same period last year.  Production of ferronickel in the
     first half of 2008 amounted to 8,514 tonned, a 3% decrease
     compared to the same period last year;

   * Nickel ore production decreased 6% to 1,926,171 wet metric
     tonnes in second quarter of 2008;

   * Due to lower grades and lower gold ore production, in
     second quarter of 2008, Antam produced 577 kg. of gold or
     16% decrease over the same period last year.

                       About Aneka Tambang

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

                          *     *     *

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

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



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

FORD MOTOR: Terminates Lighting Biz Sale Contract with Meridian
---------------------------------------------------------------
Meridian Automotive Systems, Inc., said Ford Motor Company and
its affiliate, Automotive Components Holdings, LLC, terminated a
Memorandum of Understanding, pursuant to which Meridian will
purchase ACH's Sandusky, Ohio, automotive lighting facility.

According to Meridian, ACH and Ford said that it will not be
possible to sell the Sandusky lighting business on the terms
under the MOU because of the "significant changes in the overall
business environment, including recent reductions in projected
industry volumes."

"The decision by ACH and Ford to terminate the MOU is
understandable, but is disappointing to all of us," Richard E.
Newsted, Meridian's president and chief executive officer, said.
"We would reconsider this opportunity should business conditions
improve.  Of course, we remain committed to our lighting
customers and will continue to serve them from our world-class
manufacturing facilities located in Grand Rapids, Michigan and
Muzquiz, Coahuila, Mexico."

The deal was contingent on reaching a new and long-term contract
with the United Autoworkers that would reduce operating costs at
the plant.  Kevin Furr, president of UAW Local 1216, related to
the Sandusky Register that Meridian's backing out will have a
positive impact on the Sandusky plant.  "We feel that Meridian
was not a good purchaser for our plant, relative to the
employees and the community," Sandusky Register quoted Mr. Furr
as saying.

Meridian is currently a defendant in a lawsuit filed in the U.S.
District Court for the Southern District of Ohio by the United
Steelworkers on behalf of Meridian's workers at its Jackson,
Ohio facility.  The USW alleged that Meridian violated the
Workers Adjustment and Retraining Notification Act when the
company failed to notify Union-represented employees of its
intent to close the Jackson plant 60 days before the actions
were executed.

Reuters related that the now-terminated sale had been part of a
push by Ford to unload the money-losing assets of its former
Visteon Corp. subsidiary.  In the past 18 months, Ford has
announced a series of deals to sell off plants it took back from
Visteon as part of a bailout that was completed in 2005, Reuters
added.

                About Meridian Automotive Systems

Headquartered in Dearborn, Mich., Meridian Automotive Systems
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.

The Hon. Mary Walrath confirmed Meridian's Revised Fourth
Amended Reorganization Plan on Dec. 6, 2006.  The company
emerged from chapter 11 protection on Dec. 29, 2006. (Meridian
Bankruptcy News, Issue No. 62; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).

                         About Ford Motor

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

The company has operations in Japan in the Asia Pacific region.
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.


GMAC LLC: JCR Lowers Foreign Currency LT Sen. Debts rating to B-
----------------------------------------------------------------
JCR has downgraded GMAC LLC's foreign currency long term senior
debts rating to B/Negative from B+/Negative.  The rating remains
under Credit Monitor (Negative).  The downgrade reflects
increasingly clouded prospect of GMAC's North American auto
finance operation.  The sales of large pickup trucks and SUVs
are becoming sharply lower, and GMAC had to report substantial
losses amid deteriorating prices for used trucks and SUVs.  In
addition, GMAC's mortgage operation continues to be under
pressures because of severely deteriorating housing and mortgage
markets.



1. GMAC's auto finance operation is pressured by increasingly
   harsh conditions of North American auto market.  Demand for
   large pickup trucks and SUVs is becoming sharply lower amid
   higher gas prices.  JCR sees a possibility that economic
   weakness will further aggravate auto market conditions going
   forward.  Slowdown in vehicle sales and deterioration in
   prices for used trucks and SUVs has negatively affected
   GMAC's auto finance operation.  GMAC's operating lease
   portfolio was impaired by US$716 million in the second
   quarter.

2. In addition, Residential Capital, LLC (ResCap), GMAC's
   mortgage operations continues to be under pressures amid
   severely deteriorating housing and mortgage markets.  ResCap
   reported net loss of US$1.9 billion in the second quarter
   because of losses on asset dispositions and valuation
   adjustments.  As a consequence, GMAC's consolidated net loss
   in the quarter reached US$2.5 billion.

3. Continuation of Credit Monitor (Negative) reflects
   possibility of additional downgrades going forward.  If the
   prospect of GMAC's auto finance operation should be further
   deteriorated, or level of liquidity or equity capital of
   ResCap will be substantially weakened, GMAC's rating will be
   further downgraded.


GMAC LLC -- http://www.gmacfs.com/ --  is an independent,
globally diversified financial services Company with operations
in approximately 40 countries.  The company operates in three
primary lines of business: Global Automotive Finance, Mortgage
(Residential Capital, LLC (ResCap)) and Insurance.  The
Automotive Finance operations offer a range of financial
services and products (directly and indirectly) to retail
automotive consumers, automotive dealerships and other
commercial businesses.  Its ResCap operations involve the
origination, purchase, servicing, sale and securitization of
consumer (residential) and mortgage loans, and mortgage-related
products.  The company's Insurance operations offer automobile
service contracts and underwrite personal automobile insurance
coverage (ranging from preferred to non-standard risks) and
selected commercial insurance and reinsurance coverage.


* S&P Sees Weak 1st Quarter 2008 Results on Japanese Securities
---------------------------------------------------------------
The three major Japanese securities groups saw weak overall
results in the first quarter of fiscal 2008 (ended June 30,
2008), reflecting the recent downturn in Japan's securities
market, Standard & Poor's Ratings Services said in a Japanese-
language report.

In the first quarter of fiscal 2008, Nomura Holdings Inc.
(A-/Stable/A-2) posted substantial consolidated net losses.  The
wholesale brokerage units of Daiwa Securities Group Inc.
(BBB+/Stable/A-2) and Nikko Citi Holdings Inc. (A+/Positive/A-1)
also recorded net losses.  Securities firms' revenues tend to
be sensitive to market volatility; this sensitivity has been
incorporated into the credit ratings on each securities firm as
a negative factor.  The three major Japanese securities groups
are likely to absorb these losses, as they maintain strong
capital by international standards, supported by their
relatively strong performance up to fiscal 2006 (ended March 31,
2007).  However, the ratings may face downward pressure if
earnings stay low as a result of a prolonged slump in the
Japanese securities market, and if losses from the companies'
trading positions increase significantly due to further turmoil
in the global financial markets.

The wholesale brokerage units of major Japanese securities
groups were particularly affected by the downturn of the
domestic securities market.  In addition to a seasonal slump in
underwriting business in the first quarter, there were other
challenges.  The equity underwriting business, which is normally
highly profitable, has stagnated since fiscal 2007 due to lower
demand for corporate funding.  Meanwhile, the financial advisory
business remains sluggish, and earnings from the trading
business are low amid a decrease in customer transactions.  In
the merchant banking segment, there were no large profits from
investment exits, and Nomura posted an impairment loss of
JPY39.4 billion from investments in companies whose performance
deteriorated.  In addition, Nomura posted a pretax loss of
JPY63.1 billion owing to weakened monoline insurance protection
amid a deterioration in the creditworthiness of these insurers.
As a result, Nomura saw a bottom line net loss of JPY76.6
billion.  The wholesale brokerage units of Daiwa and Nikko
posted net losses as cost reductions failed to offset revenue
declines.  The performance of the major Japanese brokerages will
likely remain poor if the securities markets remain in a slump.
S&P believes that the companies need to manage risks related to
revenue volatility from an asset risk perspective, as well as an
earnings perspective in light of their expense structures.

The performance of the retail brokerage units of each group is
sluggish, though performance has recovered somewhat from the
fourth quarter of fiscal 2007.  Investment trust commission fees
increased because investment trust sales recovered on a quarter-
on-quarter basis.  Stock brokerage commission fees also
increased in line with a slight recovery in equity trading by
individuals.  At Nikko, sales of samurai bonds issued by
Citigroup Inc. (AA-/Negative/A-1+) contributed to a profit
increase.  In addition, assets under management slightly
increased from the previous quarter.  However, profits at the
retail brokerage units of all three securities groups
significantly decreased on a year-on-year basis.

As of June 30, 2008, Nomura held transactions guaranteed by
monoline insurance companies worth US$3.1 billion on a notional
principal basis.  The underlying assets in these transactions
are commercial mortgage backed securities totaling US$400
million.  In addition, the company has JPY82.8 billion of
commercial mortgage-related exposure, mainly in Japan and the
United States, and JPY119.1 billion worth of leveraged finance
exposure in Europe.  Nomura has recorded impairment losses and
set aside reserve provisions to cover possible exposure losses,
and has also hedged a portion of these exposures.  However,
Nomura may post further losses if there is further deterioration
in the creditworthiness of monoline insurers, the real estate
markets in Japan and the U.S., and the European credit markets.



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

* KOREA: Companies With 5 Straight Annual Losses Face Delisting
---------------------------------------------------------------
Korea's financial regulatory body plans to revise listing rules
in order to oust financially unviable companies from the
nation's junior bourse, The Korea Herald reports.

Officials cited by the Herald said that under the new rules, any
firm that incurs losses for five straight years would be forced
to delist immediately and those that post losses for four
consecutive years would be subject to the regulator's scrutiny.

According to the Herald, the current listing regulations oust
companies only if their ordinary profit losses exceed 50 percent
of equity capital for three straight years.

The Herald relates that the tightened listing requirements are
targeted at tech-heavy Kosdaq-listed companies that have been
able to stay listed mainly by raising capital from stock markets
to sustain their unprofitable businesses.

Meanwhile, the Herald reports that the Financial Supervisory
Service's online disclosure system shows that 98 Kosdaq
companies, with their fiscal year ending in December, had been
in the red for four consecutive years as of 2007.

The report says the figure accounts for almost 10 percent of the
companies traded on the nation's junior bourse, 67 of which have
been unprofitable for five straight years.


* KOREA: Rumor Warns Massive Downfall of Construction Companies
---------------------------------------------------------------
Jane Han of The Korea Times reports that a rumor has recently
been spreading about a massive chain of bankruptcies of local
builders that could hit Korea around September.

According to the report, soaring raw material prices and banks'
stricter lending rules are cornering small- and medium-sized
companies into bankruptcy, which is why industry insiders
speculate that a crisis is inevitable.  They say September is
when builders will face many of their project-financing loan
deadlines.

“The entire industry - big or small - is caught up in fear and
anxiety” an unnamed official of the local builders association
told the Times.

“People don't have money to buy homes; apartments go unsold and
construction companies collapse.  It's a vicious cycle,” she
explained.  “The government must really step in now.”

Data from the Construction Association of Korea, as cited by the
Times, shows that as of the end of May, almost 130,000 homes
nationwide remain unsold, more than during the Asian financial
crisis in 1998.  Unable to pay off loans, a total of 180 local
builders collapsed in the first half of this year, the cited
data said.

The figure, JoongAng Daily relates, is 44 percent higher than
the 125 in the first six months of last year.

The number would reach more than 700 if construction companies
which voluntarily closed their doors are included.



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

GOLD BRIDGE: Redesignates Sheikh Fadzir as Executive Director
-------------------------------------------------------------
Gold Bridge Engineering & Construction Berhad disclosed that
Dato' Abd Aziz Bin Haji Sheikh Fadzir has been redesignated as
the company' managing director.  Previously, Mr. Fadzir holds
the managing director position.

On the other hand, Abdul Malik Bin Abbas has been designated
with an executive position in the company.

Headquartered in Kuala Lumpur, Malaysia, Gold Bridge Engineering
& Construction Berhad develops residential and commercial
properties and provision of civil engineering and general
construction services.  The Company's other activities include
boat building and repairing of ships, manufacturing and
supplying of ready-mixed concrete and provision of related
services, management of golf and beach resort and investment
holding.  Operations are carried out principally in Malaysia.
The Company has incurred losses in the past.  It also defaulted
on several loan facilities, which caused it to fall under Bursa
Malaysia Securities Berhad's Practice Note 1/2001 category.

                         *     *     *

Ernst & Young have expressed a significant doubt about the
group's and the company's abilities to continue as going
concerns after auditing annual consolidated audited accounts for
the year ended June 30, 2007.  The auditor pointed to the group
and the company's net losses attributable to equity holders of
MYR49,234,514 and MYR24,346,767 respectively and net current
liabilities of the group and of the company of MYR115,806,799
and MYR25,919,289 respectively.  Furthermore, the group and the
company have defaulted in the repayment of bank borrowings
totaling to MYR6,311,782 and MYR4,178,366 respectively, while
the group and the company have also not paid their tax
liabilities of MYR73,380,810 and MYR22,951,425 respectively.


PECD: Creditors Carries Out Proposed Scheme of Arragement
---------------------------------------------------------
During a court convened meeting held on August 1, 2008, the
scheme creditors of PECD Berhad carried out the proposed Scheme
of Arrangement (SoA).  However, the proposed SoA that was tabled
to PECD Construction Sdn Bhd's (PCSB) -- company's wholly-owned
subsidiary -- scheme creditors was not carried.

Given that PECD's proposed SoA is conditional upon the approval
of PCSB's proposed SoA, the proposed SoA for PECD will not be
implemented.  Under the court convened meeting, a favourable
vote from majority of creditors present and voting, representing
more than 75% in value is required to carry out the Scheme.

PECD and PCSB with the assistance of its advisers, will
formulate a revised scheme for Scheme Creditors' consideration
over the course of the next few months.

The proposed SoA will form an integral part of the
regularization plan to be submitted to the Securities
Commission.  The company has three months or until October 31,
2008, to submit a regularisation plan to the Securities
Commission and other relevant authorities for approval.

                        About PECD Berhad

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

                          *     *     *

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

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

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


TENGGARA OIL: Gives Status Update for the Month of July
-------------------------------------------------------
Pursuant to the Amended Practice Note No. 1/2001, Tenggara Oil
Berhad (TOB) disclosed that together with its subsidiary,
Tenggara Concrete Sdn. Bhd. (TCSB), still need to settle
MYR21,718,947.08 -- the amount of principal and interest in
respect of its credit
facilities as of July 31, 2008.

  Lender                    Borrower            Amount Due
  ------                    --------         ----------------
  CIMB Bank Bhd              TOB              MYR6,205,359.80
  (Southern Bank Berhad)

  CIMB Bnk Bhd               TOB                  1,290,130.36
  (Bumiputra-Commerce Bank
  Bhd)

  Malayan Banking Bhd        TCSB                14,223,456.92
                                              ----------------
                                              MYR21,718,947.08

On July 13, 2007, TOB made the Requisite Announcement of the
company's regularisation plans to Bursa Malaysia Securities
Berhad.  In the Announcement, TOB proposed to undertake the
Corporate and Debt Restructuring Scheme which comprises of:

   (a) Proposed Incorporation of NewCo;
   (b) Proposed Share Exchange;
   (c) Proposed Disposal of TLSB;
   (d) Proposed Rights Issue;
   (e) Proposed Acquisitions;
   (f) Proposed Exemptions;
   (g) Proposed Debt Settlement;
   (h) Proposed Placement;
   (i) Proposed Liquidation;
   (j) Proposed Transfer of Listing; and
   (k) Proposed Disposal of TOB.

(collectively known as "Proposed Corporate and Debt
Restructuring Scheme").

On July 15, 2008, TOB announced that the Kuala Lumpur High Court
had adjourned TOB and Tenggara Lubricant Sdn. Bhd.'s (TLSB)
petition for court sanction of the scheme of arrangements to
July 24, 2008.  The Court also allowed Malayan Banking Berhad's
application to intervene in the petition by way of summons in
chambers.

Subsequently, on July 24, 2008, TOB diclosed that the petition
for court sanction of the scheme of arrangements had been
adjourned to August 18, 2008.

On July 25, 2008, TOB announced that the case on winding-up
petition presented to the High Court of Malaya at Kuala Lumpur
(Commercial Division) by Malayan Banking Berhad against TOB, has
been adjourned to September 26, 2008.

                        About Tenggara Oil

Tenggara Oil Berhad is undertaking a divestment and
restructuring exercise, which will reposition it as a service-
oriented and trading group from its current resource-based
businesses.  Current businesses include investment holding,
supply of ready mixed concrete, property holding, management and
construction.  As part of a corporate revamp exercise, the
Company has repositioned itself in the oil and gas business,
which will be its core business.  The Company is headquartered
in Kuala Lumpur, Malaysia.

Tenggara is in the process of implementing a debt restructuring
scheme with relevant parties.



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

649535 LTD: Parsons and Kenealy Appointed as Liquidators
--------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Dennis
Clifford Parsons and Katherine Louise Kenealy were appointed as
liquidators of  649535 Limited on June 30, 2008.

The liquidators can be reached at:

          D. C. Parsons
          Indepth Forensic Limited
          PO Box 278
          Hamilton, New Zealand
          Telephone: (07) 957 8674
          Website: www.indepth.co.nz


AIR NEW ZEALAND: Moody's Holds Ba1 Sen. Unsecured Issuer Rating
---------------------------------------------------------------
Moody's Investor's Service has affirmed Air New Zealand
Limited's Ba1 Senior Unsecured Issuer rating.  At the same time,
it has changed the outlook on the rating to stable from
positive.

"The outlook change reflects weakening external conditions for
the industry including protracted high jet fuel prices -- which
show little sign of abating -- as well as slowing economic
growth both internationally and within New Zealand", says
Clement Chong, a Moodys Vice President.

"Cooling demand in New Zealand and elsewhere is likely to reduce
business and leisure travel, reducing top line momentum for an
uncertain period," says Chong.

"While the company has effectively reduced its cost structure
over the past several years, its flexibility at this stage to
either dramatically reduce costs or pass through jet fuel price
increases, without affecting sales and earnings, is
constrained", adds Chong.

"At the same time, Air New Zealand's Ba1 senior unsecured rating
is supported by a dominant position in its core domestic market,
solid liquidity and currently appropriate financial metrics",
says Chong, adding, "The rating also benefits from a degree of
uplift through the implicit support and ownership by the New
Zealand Government."

The rating is unlikely to experience upward rating pressure in
the current high oil price environment.

At the same time, the rating may experience negative pressure if
increased competition, adverse economic conditions in New
Zealand, and/or sustained high oil prices significantly
undermines profit margins, leverage or cash flow.  Given the
implied government support, Air New Zealand's financial
indicators would have to materially deteriorate for a rating
downgrade to occur, as indicated by EBITDA margins trending
towards 15%, Debt/EBITDA at or above 6x and EBIT/Interest
coverage below 2x.

Air New Zealand, based in Auckland, is New Zealand's primary air
carrier, with domestic and international passenger and freight
operations, and an aviation engineering business.


DOMINION FINANCE: Will Finalize Recapitalization Proposal Soon
--------------------------------------------------------------
Dominion Finance Holdings Limited disclosed in a regulatory
filing that following recent constructive meetings, with the
support of trustees and bankers for each member of the group, a
recapitalization proposal has been advanced.  Under this
proposal significant further funds would be injected into the
company.  Details of the proposal are still being developed, so
the proposed recapitalization terms are not yet able to be
released to the market.

Dominion Finance said it is looking to finalize incomplete
details over the coming fortnight.  If these details are
completed to the satisfaction of the trustee a proposal will be
forwarded for presentation to its investors and shareholders by
end of September.  A Roadshow for Investors and shareholders is
proposed prior to the investor/shareholder meetings.

Finalization of remaining elements of the proposed
recapitalization will enable Dominion Finance to confirm the
implications of the proposal on the financial statements of each
member of the group, which will in turn enable the company to
complete its audit processes and lodge its Annual Report with
NZX and the Companies Office.  The company said it is aiming to
complete this as soon as possible during August.

In addition in view of the proposal, Dominion Finance advises
that the Company's Annual Meeting of shareholders originally set
down to be held on Monday, August 11, 2008, has been deferred
and will now be held at a date to be advised.

                  About Dominion Finance

Based in Auckland, New Zealand, Dominion Finance Holdings
Limited (DFH:NZX) -- http://www.dominionfinance.co.nz/--engages
in the provision of financial services through the raising of
debenture stock.  The company operates through its wholly owned
subsidiaries Dominion Finance Group Limited and North South
Finance Limited, and investment vehicle Dominion Investment Fund
Limited.  Both Dominion Finance Group Limited and North South
Finance Limited accept debenture stock investments and apply
them (in conjunction with its own funds) towards the provision
of certain loans and other financial accommodation.

                         *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
June 25, 2008, the company's Board of Directors had become
concerned about the liquidity position of its two subsidiaries
-- Dominion Finance Group Limited and North South Finance
Limited -- and primarily the ability of these companies to meet
their ongoing payment obligations to their respective debenture
holders both in respect of interest and principal.

The company is facing liquidity pressure from the impact of the
international credit crisis on the confidence of Dominion
Finance Group and North South Finance's investor base, and the
inability of the company's borrowing clients to refinance or
repay the debt facilities previously provided to those
borrowers.

The company's Board entered into discussions with bankers,
auditors, and Trustee's of DFG and NSFL respectively, with a
view to exploring the prospect of those two companies entering
into a Moratorium with their respective
debentureholders.

Under the prospective moratorium, DFG and NSFL would seek the
suspension of the obligation to make payments to
debentureholders for a yet to be determined period of time with
a view to enabling those companies the opportunity to
restructure in order to alleviate the liquidity pressures and
ensure the maximum realization of investor's investment in DFG
and NSFL.


EASI LAWN: Parsons and Kenealy Appointed as Liquidators
-------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Dennis
Clifford Parsons and Katherine Louise Kenealy were appointed as
liquidators of  Easi Lawn Limited on June 30, 2008.

The liquidators can be reached at:

          D. C. Parsons
          Indepth Forensic Limited
          PO Box 278
          Hamilton, New Zealand
          Telephone: (07) 957 8674
          Website: www.indepth.co.nz


EIGHT WALLACE: Court Appointed Levin and Vance as Liquidators
-------------------------------------------------------------
The High Court at Auckland has appointed Henry David Levin,
insolvency specialist, and David Stuart Vance, chartered
accountant, as liquidators of Eight Wallace Holdings Limited.

Only creditors who were able to file their proofs of debt by
July 25, 2008, were 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


FAIRWAYS (2006): Liquidators Set August 15 as Claims Bar Date
-------------------------------------------------------------
The High Court at Auckland has appointed Boris van Delden and
John Trevor Whittfield, insolvency practitioners of Auckland, as
liquidators of Fairways (2006) Limited.

Creditors are required to file their proofs of debt by Aug. 15,
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 1141
          Telephone: (09) 303 0506
          Facsimile: (09) 303 0508
          Website: www.mvp.co.nz


FEATHERSTON HOTEL: Commences Liquidation Proceedings
----------------------------------------------------
The High Court at Palmerston North held a hearing on July 21,
2008, to consider an application putting Featherston Hotel Ltd.
into liquidation.

The application was filed on May 26, 2008, by the Commissioner
of Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          7-27 Waterloo Quay (PO Box 1462)
          Wellington
          Telephone: (04) 890 3203
          Facsimile: (04) 890 0009

Amy Jean York is the plaintiff's solicitor.


FIVE STAR: Investors to Receive 5 Cents Principal Repayment
-----------------------------------------------------------
In their latest update to investors, receivers Richard Agnew and
Anthony Boswell, partners at PricewaterhouseCoopers, disclosed a
proposed second distribution to secured debenture investors.
The receivers advises to make a pro rata principal repayment of
5 cents in the dollar, to be paid on or around August 15, 2008.

                  Estimated Recovery Range

As reported in Troubled Company Reporter – Asia Pacific on
June 09, 2008, the receivers revised their estimate of
recoveries to secured debenture investors to a range of 20% to
25%.  Unsecured creditors will not recover any funds from the
receiverships.

In an update, the receivers said that with the proposed
repayment of 5 cents in the dollar, to be paid on or around
August 15, 2008, total repayments will be 22.5 cents in the
dollar which is in excess of the low side recovery range.

The receivers now expect that secured debenture investors could
receive between 22.5% to 25% of their outstanding investment,
excluding recoveries from the legal action discussed below.
However, the receivers said, it is difficult to quantify both
the quantum and timing of any further distributions to secured
debenture investors as they are dependent on the outcome of the
legal action and actions the receivers are currently taking to
recover certain commercial loans.

                       Investigations

According to the receivers, following their investigations into
the affairs of the companies prior to their appointment, they
gave instructions to the company to issue civil proceedings on
July 3, 2008, against the directors and an alleged shadow/de
facto director for breaches of duties owed to the company
(including duties of care).

The receivers said that the defendants in that proceeding are
due to file statements of defence by August 4, 2008.  The claim
was commenced after taking advice from a Queen's Counsel and
after considering various matters including the costs of
litigation and recovery issues.  Those issues will be kept under
review as the proceeding progresses.  At this stage, and while
the matter is before the Court, it is too early to comment
further on the merits and likely outcome of that claim.

As reported by the media, the receivers said, criminal charges
have been laid against the directors of Five Star Finance
Limited (In Receivership and In Liquidation) and Five Star
Debenture Nominee Limited (In Liquidation) by the New Zealand
Companies Office.  These companies, whilst having the same
directors as Five Star Consumer Finance Limited (In
Receivership) do not form part of the Group of which they are
the receivers.

In addition, various Government Authorities have indicated a
strong focus on identifying potential prosecutions involved with
various finance companies including Five Star Consumer Finance
Limited.

The receivers said they have provided assistance and information
to Government Authorities in respect of their investigations and
will continue to co-operate and assist as required.

                       About Five Star Consumer

Incorporated in 1988, Five Star Consumer Finance Limited is a
wholly owned subsidiary of Antares Finance Holdings Ltd., owned
by North Island shareholders.

As reported by the Troubled Company Reporter-Asia Pacific on
Aug. 31, 2007, Covenant Trustee Co. appointed Richard Agnew and
Anthony Boswell, partners at PricewaterhouseCoopers, as
receivers to Five Star and its subsidiaries.

Five Star's board of directors sought the appointment because of
serious concerns as to the state of the debenture market and the
ability of the company to attract new funds and retain existing
investments.  The board, after  consulting with the Five Star's
auditors and advisers concluded that the company was unable to
operate in this market.


IDRAULICO LTD: Commences Liquidation Proceedings
------------------------------------------------
The High Court at Napier convened a hearing on July 24, 2008, to
consider an application putting Idraulico Limited into
liquidation.

The application was filed on April 30, 2008, by the Commissioner
of Inland Revenue.

The plaintiff's address for service is at:

          Elvidge & Partners
          corner of Raffles and Bower Streets
          Napier

R. J. Collins is the plaintiff's solicitor.


JOSEPH PRODUCTIONS: Court Appointed Liquidators
-----------------------------------------------
The High Court at Auckland has appointed Henry David Levin,
insolvency specialist, and David Stuart Vance, chartered
accountant, as liquidators of Joseph Productions No 20 Ltd.

Only creditors who were able to file their proofs of debt by
July 25, 2008, were 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


DENNY'S CORP: June 25 Balance Sheet Upside-Down by US$172 Mil.
--------------------------------------------------------------
Denny's Corporation reported Tuesday results for its second
quarter ended June 25, 2008.

At June 25, 2008, the company's consolidated balance sheet
showed US$354.7 million in total assets and US$526.7 million in
total liabilities, resulting in a US$172.0 million stockholders'
deficit.

The company's consolidated balance sheet at June 25, 2008, also
showed strained liquidity with US$42.1 million in total assets
available to pay US$115.5 million in total current liabilities.

The company said it is able to operate with a substantial
working capital deficit because (1) restaurant operations and
most food service operations are conducted primarily on a cash
(and cash equivalent) basis with a low level of accounts
receivable, (2) rapid turnover allows a limited investment in
inventories, and (3) accounts payable for food, beverages and
supplies usually become due after the receipt of cash from the
related sales.

Net income for the second quarter was US$3.2 million, a decrease
of US$7.4 million compared with prior year net income of US$10.6
million.

Adjusted income before taxes for the second quarter was
US$5.7 million, an increase of US$4.2 million compared with
prior year income of US$1.5 million.  This measure, which is
used as an internal profitability metric, excludes restructuring
charges, exit costs, impairment charges, asset sale gains,
share-based compensation, other nonoperating expenses and income
taxes.

For the second quarter of 2008, Denny's reported total operating
revenue, including company restaurant sales and franchise
revenue, of US$190.3 million compared with US$240.9 million in
the prior year quarter.  Company restaurant sales decreased
US$55.1 million due primarily to 141 fewer equivalent company
restaurants compared with the prior year quarter resulting from
the sale of company restaurants to franchisees under the
Franchise Growth Initiative.  During the second quarter, Denny's
opened two new company restaurants, closed one and sold 20 to
franchisee operators.

Company restaurant operating margin (as a percentage of company
restaurant sales) for the second quarter was 12.5%, an increase
of 0.9 percentage points compared with the same period last
year.  Product costs for the second quarter decreased 1.9
percentage points to 23.9% of sales due primarily to favorable
menu mix and menu price increases.  Payroll and benefit costs
increased 0.2 percentage points to 42.3% of sales as a result of
higher group insurance and management staffing costs partially
offset by improved crew labor efficiency and menu price
increases.  Utility expenses increased 0.3 percentage points to
4.9% of sales due primarily to higher natural gas costs.

Franchise revenue in the second quarter increased US$4.4
million, or 20%, to US$27.0 million due primarily to an increase
of 146 equivalent franchise restaurants compared with the prior
year period.  The growth in franchise revenue included a US$3.0
million increase in occupancy revenue, a US$1.6 million increase
in royalties partially offset by a US$200,000 decrease in
franchise fees.

Franchise operating margin increased by US$2.8 million, or 18%,
to US$18.5 million in the second quarter as higher franchise
revenue offset a US$1.6 million increase in franchise costs,
primarily franchise occupancy costs.  Franchise operating margin
was 68.5% as a percentage of franchise and license revenue.
During the second quarter, Denny’s franchisees opened two new
restaurants, closed eight and purchased 20 company restaurants.

Nelson Marchioli, president and chief executive officer, stated,
"We are pleased to report greater operating margins and strong
core earnings growth despite the difficult consumer and cost
environment.  The strategic actions we have taken to optimize
our business model, increase profitability and reduce debt are
evident in our improving results.  The growing contribution of
our higher margin franchise operations along with margin
improvements in our company restaurants have allowed us to raise
our income guidance for 2008.

"While we expect the challenge of reduced consumer spending to
continue impacting our sales, we are encouraged by the reception
to our new products and promotions.  Our brand and marketing
teams are delivering compelling new menu items along with
aggressive new promotional campaigns to build profitable and
sustainable sales growth.  Through our strategic initiatives and
day-to-day execution in our restaurants, we expect continued
financial performance improvements as well as enhanced
shareholder value over time."

General and administrative expenses for the second quarter
declined US$1.6 million from the same period last year resulting
primarily from reduced staffing and other compensation expenses.

Depreciation and amortization expense for the second quarter
declined by US$2.6 million compared with the prior year period
primarily as a result of the sale of restaurant and real estate
assets over the past year.  Operating gains, losses and other
charges, net, which reflect restructuring charges, exit costs,
impairment charges and gains or losses on the sale of assets,
decreased US$15.1 million in the quarter due primarily to a
US$10.3 million decrease in gains on the sale of restaurants and
a US$4.5 million increase in severance and other restructuring
charges attributable to the redesign of Denny's organizational
structure as it transitions to a franchise-focused business
model.

Operating income for the second quarter decreased US$12.8
million to US$10.5 million due primarily to the decrease in
gains on the sale of restaurants and the increase in
restructuring charges compared with the prior year period.
Excluding gains, losses, and other charges in both periods,
operating income increased US$2.3 million despite a US$50.7
million decrease in total operating revenue due primarily to the
sale of company restaurants.

Interest expense for the second quarter decreased US$2.1
million, or approximately 19%, to US$8.9 million as a result of
a US$97.2 million reduction in debt from the prior year period.

Other nonoperating income increased US$1.4 million in the second
quarter due primarily to changes in the fair value of Denny's
US$100.0 million interest rate swap.

                Franchise Growth Initiative (FGI)

Denny's continues its strategic initiative to increase franchise
restaurant development through the sale of certain company
restaurants.  During the second quarter, the company sold 20
restaurants to seven franchisee operators under FGI, bringing
the number of company restaurants sold year-to-date to 41 and
the number sold since the program began in early 2007 to 171.
Additionally, over the last 18 months Denny's has signed
development agreements for 136 new restaurants, 14 of which have
opened, yielding a current development pipeline of 122 new
restaurants.

Denny's ended the second quarter of 2008 with a system mix of
77% franchised and licensed restaurants and 23% company
restaurants compared with 66% franchised and licensed
restaurants and 34% company restaurants before the FGI program
began in 2007.

The 41 company restaurants sold in 2008 generated net sale
proceeds of US$22.0 million of which US$16.4 million was
received in cash during the first half of the year.  US$3.2
million of the sales proceeds were received in cash subsequent
to the quarter end and were included in accounts receivable on
the second quarter balance sheet.  Additionally, US$2.4 million
of the sale proceeds were received in the form of notes
receivable.  The majority of the cash proceeds were used to
reduce debt by US$15.4 million during the first half of 2008.

                         Business Outlook

Mark Wolfinger, executive vice president, chief administrative
officer and chief financial officer, stated, "While our sales
expectations for the year remain cautious due to the economic
pressures on our customers, we will continue to focus on
profitable sales drivers, lowering our operating costs and
increasing our organizational efficiency.  As a result of higher
earnings the past two quarters and our expectation for continued
income growth through the remainder of the year, we are
increasing our guidance for adjusted income before taxes in 2008
to US$13.0 to US$17 million, an increase of 25% to 60% over the
2007 result."

                 Liquidity and Capital Resources

The comany's credit facility consists of a US$50.0 million
revolving credit facility (including up to US$10 million for a
revolving letter of credit facility), a US$137.0 million term
loan and an additional US$37.0 million letter of credit
facility.  At June 25, 2008, the company had outstanding letters
of credit of US$35.3 million (comprised of US$35.0 million under
the letter of credit facility and US$300,000 under the revolving
facility).  There were no revolving loans outstanding at June
25, 2008.  These balances result in availability of US$2.0
million under the letter of credit facility and US$49.7 million
under the revolving facility.

The revolving facility matures on Dec. 15, 2011.  The term loan
and the US$37 million letter of credit facility mature on March
31, 2012.

The credit facility is guaranteed by Denny's Corporation and its
other subsidiaries and is secured by substantially all of the
assets of Denny's and its subsidiaries.  In addition, the credit
facility is secured by first-priority mortgages on 119 company-
owned real estate assets.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 25, 2008, are available
for free at http://researcharchives.com/t/s?3044

                       About Denny's Corp.

Headquartered in Spartanburg, South Carolina, Denny's
Corporation (Nasdaq: DENN) -- http://www.dennys.com/-- is a
full-service family restaurant chain, consisting of 354 company-
owned units and 1,191 franchised and licensed units, with
operations in the United States, Canada, Costa Rica, Guam,
Mexico, New Zealand and Puerto Rico.


VERTEX HOLDINGS: Commences Liquidation Proceedings
--------------------------------------------------
The High Court at Auckland convened a hearing on July 30, 2008,
to consider an application putting Vertex Holdings Limited into
liquidation.

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

The plaintiff's address for service is at:

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

Sandra Joy North is the plaintiff's solicitor.


VIBRA – FITNESS: High Court Appoints Liquidators
------------------------------------------------
The High Court at Auckland has appointed Henry David Levin and
Vivien Judith Madsen-Ries, insolvency specialists, as
liquidators of Vibra - Fitness Limited.

Only creditors who were able to file their proofs of debt by
July 25, 2008, were included in the company's dividend
distribution.

Creditors and shareholders may direct their inquiries to:

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


ZX CORPORATION: Court Appointed Horton and Price as Liquidators
---------------------------------------------------------------
The High Court at Auckland has appointed Christopher Robert Ross
Horton, chartered accountant, and John Albert Price, insolvency
practitioner, as liquidators of ZX Corporation (2001) Limited.

Only creditors who were able to file their proofs of debt by
Aug. 1, 2008, were included in the company's dividend
distribution.

Creditors and shareholders may direct their inquiries to:

          Horton Price Limited
          PO Box 9125
          Newmarket
          Auckland 1149
          Telephone: (09) 366 3700
          Facsimile: (09) 366 3705



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

HANOVER FINANCE: Fitch Cuts IDR to C; Removes Neg. Watch
--------------------------------------------------------
Fitch Ratings has downgraded New Zealand-based Hanover Finance
Limited's Long-term foreign currency Issuer Default Rating to
'C' from 'BB+', Short-term foreign currency IDR to 'C' from 'B',
Individual rating to 'E' from 'C/D' and simultaneously placed
them on Rating Watch Negative.  At the same time, Fitch has
affirmed HFL's Support rating at '5' and the Support Rating
Floor at 'NF'.

This rating action reflects details of an announcement made by
the company regarding a suspension of interest and principal
repayments, effective immediately.  HFL is primarily funded by
retail debentures and has been adversely affected by a slide in
retail investor confidence in the NZ finance company sector and,
more recently, a decline in property prices.  The company
intends to propose a restructuring plan to its investors to give
itself time to work through its problems "in an orderly way" and
to "realize value from all borrowers", some of whom have been
"trying to take advantage of the uncertainty to delay payments".

A Long-term foreign currency IDR of 'C' indicates that default
is imminent.  While HFL is not technically in default, the RWN
reflects an expectation that default will occur within 7 days,
at which point the RWN will be resolved and the Long-term
foreign currency IDR will be downgraded to 'D'.


QUEENSTOWN CDO: Fitch Chips 'BBB+' US$30MM Notes Rating to 'BB-'
----------------------------------------------------------------
Fitch Ratings has downgraded the notes issued by Queenstown CDO
Limited Series 2007-2 and removed them from Rating Watch
Negative, as:

  -- US$30 million notes due June 2014 (ISIN XS0292116711):
     downgraded to 'BB-' from 'BBB+'; removed from RWN.

The transaction (also known as "Sukhothai CDO1") is a fully
funded managed synthetic corporate CDO referencing a portfolio
of primarily investment grade corporate obligations, managed by
Lion Global Investors Limited.

The key drivers of the transaction's credit risk are:
  -- Portfolio credit risk deteriorating to an average portfolio
     quality of 'BBB+/BBB' from 'A'/'A-' at closing in March
     2007.

  -- 8% of the current portfolio is rated below investment grade
     in the 'BB' category which is a deterioration when compared
     to the closing portfolio that comprised 0% sub-investment
     grade assets in March 2007.

  -- Portfolio migration risk, with 10% of the portfolio
     currently on RWN and 28% of the portfolio with Negative
     Outlook.

  -- Industry concentration of 51% in the three largest
     industries, made up of 32% in Banking and Finance, 11% in
     Telecommunications and 8% in Utilities.

  -- The high country concentration of the portfolio, which has
     61% exposure to the US.

Since closing, 6% of the portfolio has been substituted, and the
current credit enhancement level of the transaction is 2.375%, a
slight decrease from 2.45% at closing.  Given Fitch's view of
concentration and the current credit quality of the portfolio,
the credit enhancement level of 2.375% of the transaction is not
sufficient to justify the current rating of the notes.

At close, proceeds from the issuance of the notes were used to
invest in the charged asset to collateralize CDS between the
issuer and Calyon (the CDS swap counterparty, 'AA'/'F1+').  The
charged asset is a cash deposit with Calyon.

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

Fitch has previously noted that its review will be focused first
on ratings most exposed to risks it has highlighted in its
updated criteria.  As such, the transaction was placed on RWN on
16 June 2008.  As previously indicated, resolution of the Rating
Watch status depends on any plans managers/arrangers may choose
to modify either the structure or the portfolio.  In this case,
the arranger has confirmed that it does not intend to make any
modifications.


SEA CONTAINERS: Files Joint Ch. 11 Plan and Disclosure Statement
----------------------------------------------------------------
Sea Containers Caribbean Inc., Sea Containers Ltd., and Sea
Containers Services Ltd. delivered a joint plan of
reorganization and disclosure statement to the U.S. Bankruptcy
Court for the District of Delaware on July 31, 2008.

The Plan contemplates the transfer of the Debtors' direct and
indirect interests in their marine and land container leasing
business to Newco, the entity to which SCL will transfer its
remaining container interests, and certain additional
consideration, in exchange for Newco (i) equity, and (ii) cash,
which will be funded from an exit facility, that will be used
for, among other things, repayment of the Debtors' DIP Facility.

SCL's Container Interests include equity interests in SPC
Holdings, Ltd., and SCL's indirect ownership of Classes A and B
Quotas in GE SeaCo SRL, the joint-venture entity between SCL and
General Electric Capital Corporation.

The Newco Equity, which value derives in large part from the
value of SCL's interests in GE SeaCo, will be subject to
holdbacks and trusts set aside for certain claims, and will be
distributed on a pro rata basis to holders of allowed claims.
By lending its cash to Reorganized SCL, Newco will receive the
Newco Repatriation Note from Reorganized SCL.  Subject to any
priority claims and the post-emergence costs, the Newco
Repatriation Note will be payable by Reorganized SCL from
proceeds received on account of certain intercompany claims and
interests, and other property of the bankruptcy estates,
including any residual value that reverts to Reorganized SCL
from the trusts and reserves established under the Plan.

Prior to the date of bankruptcy, the Debtors initiated a
restructuring program, and divested themselves of various non-
container-leasing businesses, which included passenger rail
transportation, passenger ferry operation, and hotel operation.
Subsequent to the bankruptcy filing, they continued their
prepetition restructuring initiatives, including selling Non-
Container-Leasing Businesses during the Chapter 11 cases.  While
SCL has completed a significant portion of the divestitures and
asset sales, under the Plan, the Debtors expect to complete the
sale of their remaining Non-Container-Leasing Businesses and
wind-down and liquidate the remaining Non-Debtor Subsidiaries.

The Debtors anticipate that, under the Plan, the assets of Newco
primarily will consist of the Container Interests, causes of
action relating to Container Interests, and a note issued to
Newco for repayment of certain cash lent by Newco enabling the
Reorganized SCL to repay the balance of the DIP Facility, and
fund Reorganized SCL's wind-down costs.

                    Establishment of Reserves

To ensure that directors from Non-Debtor Subsidiary do not seek
to enforce Intercompany Claims, the Plan contemplates the
establishment of a Non-Debtor Subsidiary Reserve, which will be
held by the Non-Debtor Subsidiary Trustees, and will consist of
certain cash and Newco Equity that will be available to fund
payments to certain currently known creditors of the Non-Debtor
Subsidiaries.  The Plan provides that any residual property
other than Newco Equity from the reserve will revert to the
Reorganized SCL, and, after payment of the Post-Emergence Costs,
be used to pay down the Newco Repatriation Note.

The Plan also contemplates the establishment of the Equalization
Claim Reserve, which will be administered by the Equalization
Trustees, to be used to satisfy any valid Equalization Claim and
certain other employee claims related to equalization of the
Pension Schemes.

Any residual property other than Newco Equity from the
Equalization Claim and Non-Debtor Subsidiary Reserves will
revert to Reorganized SCL, and, after payment of the Post-
Emergence Costs, will be applied to pay down the Newco
Repatriation Note.  Any residual Newco Equity contained in the
reserves will be canceled.

After distribution of Newco Equity, the Reorganized SCL will be
wound-down and dissolved in accordance with Bermuda law, where
SCL was incorporated, and the residual cash realizations, if
any, after payment of the Newco Repatriation Note, will be
distributed to the holders of Allowed Claims.

              U.K. and Bermuda Scheme of Arrangements

In light of SCL being incorporated in Bermuda, and SCSL being
registered under the laws of England & Wales, the Debtors
determined that certain arrangements are necessary to ensure
that their joint plan of reorganization can be implemented under
the laws of Bermuda, and England & Wales.

The Debtors note that the effectiveness of the Bermuda Scheme of
Arrangement and the U.K. Scheme of Arrangement is a condition to
consummation of the Plan.

To recall, after commencement of the Chapter 11 cases, the
Debtors filed winding-up proceedings in Bermuda, and the Supreme
Court of Bermuda appointed John C. McKenna and Gareth H. Hughes
to serve as joint provisional liquidators to monitor the general
progress of the cases.

To implement the Plan with respect to SCL, the Debtors will seek
the approval of the Bermuda Scheme of Arrangement from the
Bermuda Court. The arrangement, together with the Disclosure
Statement and other materials, will be circulated to all of
SCL's known unsecured creditors, except for any employees that
have or may assert claims that give rise to equalization-related
employee claims as these claims will not be compromised under
the Bermuda Arrangement.

The UK. Scheme of Arrangement, along with certain other
measures, will ensure that the Pension Settlement and certain
aspects of the Plan are implemented in the U.K.  The U.K.
Arrangement, along with schemes in relation to certain Non-
Debtor Subsidiaries are necessary as a result of English
regulatory requirements.  The U.K. Arrangement, together with a
separate explanatory statement will be submitted to the High
Court of England & Wales for approval, and will be circulated to
creditors, whose claims will be compromised under the U.K.
Arrangement.

Creditors under each of the Bermuda Scheme of Arrangement and
the U.K. Scheme of Arrangement will receive the same treatment
they received under the Plan.  The Bermuda Scheme of Arrangement
and the U.K. Scheme of Arrangement provide for distributions to
Creditors on the same terms as the Plan.

                 Newco Common Stock Certificates

Newco intends to initially issue the Newco Equity in book entry
form only, and will be deposited in the form of common stock
certificates registered in the name of The Depository Trust
Company.  Holders of Allowed Claims may hold their beneficial
interests in the Newco certificates directly through the
Depository, or indirectly through organizations with accounts
with the Depository, a limited-purpose trust company organized
under the laws of the State New York, and a member of the
Federal Reserve System.

         Ongoing Negotiations with Creditors Committees

The Debtors and their two creditors committees -- the Official
Committee of Unsecured Creditors of Sea Containers Ltd., and the
Official Committee of Unsecured Creditors of Sea Containers
Services Ltd. -- continue to discuss certain corporate
governance matters with respect to Newco.  The terms of the
corporate governance will be reflected in the Plan supplement
documents to filed prior to the Plan's confirmation, and certain
additional documents may be prepared to reflect any potential
resolutions.  If confirmation issues are not resolved to the
Creditors Committees' satisfaction, all parties reserve their
rights, including the right to address them at the Confirmation
Hearing.

              Pension Settlement and Implementation

Under the Pension Settlement, which is in full and final
satisfaction of all of the Pension Claims against SCL, SCSL, and
the Non-Debtor Subsidiaries, the 1983 Pension Scheme will
receive a US$153,800,000 allowed unsecured claim against SCL,
and the 1990 Pension Scheme will receive a US$40,200,000 allowed
unsecured claim against SCL, plus the establishment of an
Equalization Claim Reserve on account of a US$69,000,000
Equalization Claim.

The Debtors expect that the Court will issue an opinion
regarding the Pension Settlement shortly.  They disclose that
they have prepared the Plan and the Disclosure Statement
assuming that the Court will approve the settlement.  The
Debtors believe that consummation of the Plan is highly unlikely
absent settlement of the Pension Claims, and that under that
circumstances, projected recoveries and actual distributions
would be materially reduced from those reflected in the
Disclosure Statement.

                       Establishing Newco

Prior to the Plan's effective date, the Debtors will take the
steps necessary to form Newco as a valid and legally existing
Bermudian corporation.  Newco's specific formation documents
will be included in the Plan Supplement.  On the Effective Date,
the
Debtors will transfer and assign all rights, title, and
interests in the Container Interests to Newco, free and clear of
any claims or liens.

After its establishment, Newco will issue all Newco Equity,
certificates and other documents as required by the Plan.  The
Plan Administrator will be authorized to, among other things,
distribute Newco Equity on a pro rata basis to holders of
Allowed SCL Other Unsecured Claims and Holders of Allowed
Pension Schemes Unsecured Claims.

The board of directors of Newco will consist of seven members,
provided that no director may be a person, whose appointment is
prohibited under the terms of the GE SeaCo Framework Agreement.
The Debtors will disclose in the Plan Supplement the identities
and affiliations of any person proposed to serve as a board
member of Newco, and the nature of compensation for any member
of the board, who is an insider.

After the Plan Effective Date, operation, management and control
of Reorganized SCL will be the general responsibility of the
Bermuda Court-appointed joint provisional liquidators, Messrs.
McKenna and Hughes, pursuant to the Bermuda Scheme of
Arrangement and Bermuda law.

Reorganized SCSL will be managed by SCSL liquidators or
administrators, which will take appropriate steps to implement
the U.K. Scheme of Arrangement and liquidate Reorganized SCSL in
accordance with English law.  After the Effective Date,
Reorganized SCC and Non-Debtor Subsidiaries will also be managed
by their liquidators.

                          Exit Facility

On the Effective Date, Newco will enter into an exit facility
(i) to obtain the funds necessary to acquire the Container
Interests from SCL at fair value and to provide a loan to
Reorganized SCL for the satisfaction of the DIP Facility, (ii)
to pay expenses in connection with the Exit Facility, and (c)
for working capital and capital expenditures.

The Debtors note that they have not yet received a commitment
with respect to the Exit Facility but they are engaged in
extensive negotiations with regards the Facility, which terms
remain subject to further negotiation and entry into a binding
term sheet.

Therefore, although they believe that they will be able to
obtain the Exit Facility on acceptable terms, there can be no
assurance that they will ultimately be able to do so, the
Debtors further noted.  The Exit Facility and the supporting
documentation will be executed prior to the Effective Date.

Confirmation of the Plan will be deemed approval of the Exit
Facility, and authorization for Newco to enter into and execute
Exit Facility documents.

If the Debtors cannot secure exit financing, the Plan cannot be
confirmed.

         Dissolution of the Non-Debtor Subsidiary Trust

On the earlier of Dec. 31, 2010, or two days after the date
when each Non-Debtor Subsidiary Trust Claimant has received its
payment, the trust will be dissolved, and all the trust's
remaining assets, excluding Newco Equity, will be transferred to
the Reorganized SCL for payment of the Newco Repatriation Note
and other distribution.  All Newco Equity in the trust will be
canceled.

                    Schedules and Deadlines

The Debtors have notified parties-in-interest that the Court
will convene a hearing on Sept. 4, 2008, at 10:00 a.m., to
consider approval of the Disclosure Statement.  Parties have
until August 28 to file objections to the Disclosure Statement's
approval.

The Debtors further note that the hearing to consider
confirmation of their Plan will be on Nov. 10, 2008, with
objections due on November 1.

A full-text copy of the Debtors' Joint Plan of Reorganization is
available for free at:

               http://researcharchives.com/t/s?305e

A full-text copy of the Debtors' Joint Disclosure Statement is
available for free at:

               http://researcharchives.com/t/s?305f

                       About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.

The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.

In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 46;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SEA CONTAINERS: Discloses Classification & Treatment of Claims
--------------------------------------------------------------
Under the Joint Plan of Reorganization, all claims against the
Sea Containers Ltd. and its debtor-affiliates, other than DIP
Facility Claims, Administrative Claims and Priority Tax Claims,
are classified into five classes:

                            Estimated
Class   Description         Recovery    Plan Treatment
-----   ------------        -------     --------------
    1    Other Secured          100%     Paid in full, in cash
         Claims                          or satisfied in full by
                                         return of collateral

   2A    SCL Other              100%     Paid in full in cash
         Priority Claims

   2B    SCL Other           47%-61%     Pro Rata share of SCL
         Unsecured Claims                unsecured distribution

   2C    SCL Pension         47%-61%     Per Pension Settlement,
         Schemes Claims                  pro rata share of SCL
                                         unsecured distribution

   3A    SCSL Other          45%-60%     Pro Rata share of SCL
         Unsecured Claims                unsecured distribution

   3B    SCSL Pension        47%-61%     Per Pension Settlement,
         Schemes Claims                  pro rata share of SCL
                                         unsecured distribution

   4A    SCC Pension         47%-61%     Per Pension Settlement,
         Schemes Claims                  pro rata share of SCL
                                         unsecured distribution

   4B    SCC Interests          100%     Reinstated under the
                                         Plan

    5    SCL Common Stock        N/A     Not entitled to receive
         Interests                       any distribution or
                                         retain any property

The holders of Allowed Claims in Classes 2B, 2C, 3A, 3B and 4A,
which are impaired, are entitled to vote to accept or reject the
Plan.  Holders of Allowed Claims in Classes 1, 2A and 4B, which
are not impaired, are deemed to accept the Plan and, therefore,
are not entitled to vote on the Plan.

Holders of claims in Class 5 will not receive any distribution
under the Plan and are, therefore, deemed to reject the Plan.
They are likewise not entitled to vote to accept of reject the
Plan.

The projected recoveries are based on certain assumptions
contained in the Plan's recovery analysis, including an assumed
value of Newco Equity of US$323,000,000 to US$403,000,000 in
aggregate, based on commonly accepted valuation techniques.

The range of recovery for holder of most Classes of unsecured
claims is based on various assumptions, including total assets
available to pay the holders of approximately US$331,000,000 to
US$431,000,000, and approximately US$705,000,000 of final
unsecured claims against Sea Containers Ltd., including a
US$69,000,000 Equalization Claim.

The Debtors believe that the Plan is in the best interest of all
of their creditors.  The Debtors recommend that all holders of
claims against, and interests in, the Debtors, whose votes are
being solicited submit ballots to accept the Plan.

                       About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.

The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.

In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 46;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)




================
S R I  L A N K A
================

* SRI LANKA: RAM Ratings Predicts Moderate Growth
-------------------------------------------------
RAM Ratings (Lanka) Limited held a media conference in
conjunction with the release of a report entitled "Economic
Outlook on Sri Lanka: Key Economic Challenges and Prospects for
2008 and 2009" by its Malaysian parent, RAM Holdings Berhad.
RAM highlighted that the marked deterioration in global
economic conditions in 1H 2008 had been triggered by the
decelerating American and European economies, affected by the
sub-prime credit meltdown, tightening liquidity and correcting
housing market.  Notably, the effects on developing economies,
including Sri Lanka, have been compounded by unprecedented price
shocks vis-à-vis food, commodities and oil.

Some Asian economies such as India, China, Malaysia and
Indonesia are adjusting to these shocks by slashing fuel
subsidies to reduce fiscal costs.  Sri Lanka, on the other
hand, has been mitigating its hefty subsidy cost through a price
pass-through mechanism since 2005.  Nonetheless, more expensive
fuel and food imports (such as wheat and milk powder) will have
negative effects on the country's balance of payments and
economic growth.

RAM's Group Chief Economist, Dr Yeah Kim Leng, said, "Despite
these adverse developments, Sri Lanka's GDP growth is expected
to only moderate to 5.8% in 2008, thereafter improving slightly
to 6.1% in 2009.  This would be in tandem with the anticipated
easing in world food and energy prices, as supply increases and
demand cools amid skyrocketing prices as well as greater
awareness and coordination among countries in tackling excessive
speculation in the international commodity markets."

The country's Industrial Production Index went up 6.3% in 1Q
2008, about the same rate as for the entire 2007.  This suggests
that domestic and export demand is still resilient.  Key
industries such as food and beverage and textiles and apparel,
however, expanded more slowly - by 0.3 to 1.0 percentage points
- in line with more moderate economic growth in 2008.

Exports of major agricultural and primary commodities remained
strong in 1Q 2008, with double-digit growth underpinned by
resilient demand for resource-based products.  The agricultural
sector is envisaged to expand 3.6% in 2008, and 4.3% in 2009.
This will be supported by buoyant exports of tea, rubber and
other related products, all of which charted fairly robust
growth (40%-55%) in 1Q 2008.

Meanwhile, the construction industry (both residential and
commercial) has been booming, especially amid post-tsunami
rebuilding efforts.  Looking ahead, construction growth should
remain resilient against more costly building materials, driven
by several widely anticipated projects (announced in 2006) under
the government's 10-year plan; these are expected to be funded
by public financing initiatives, which will lend further support
to the construction sector.

The manufacturing sector's pace is projected to ease slightly to
5.7% in 2008 and 5.4% in 2009.  The output of the apparel
industry, i.e. one of the key drivers of Sri Lanka's
manufacturing sector, remained strong in 1Q 2008, with a
moderate rise in exports.  Nonetheless, this high-profile
industry's growth may cool down in the medium term due to
intensifying price competition from countries such as Vietnam
and Bangladesh.  A different strategic approach has been
proposed for this segment, with the incorporation of eco-
friendly production processes to attract increasingly
environmentally conscious European buyers.

Elsewhere, telecommunication is one of the stronger sub-sectors
within the broader services industry, having grown rapidly while
attracting large amounts of foreign direct investment (FDI) over
the years.  On the other hand, the consumer industry may not be
as active as anticipated given tight credit conditions and
expectations of mounting inflation.  In the meantime, Sri Lankan
tourism has also been subdued, with hotels reporting average
occupancy rates of 46.5% for the past 3 years.  This trend is
expected to continue in the short term due to ongoing security
concerns.

In the meantime, RAM's Group Chief Economist expects the Central
Bank to tighten interest rates by up to 75 basis points in 2H
2008, premised on the need to further curb domestic demand and
keep inflation at bay.  He added, "We also expect the Sri Lankan
rupee to continue depreciating by 1%-3% on a trade-weighted
basis this year, albeit at a slower pace compared to 2006 and
2007.  This, together with the Central Bank's current growth
target of 15% for reserves, should sustain economic growth and
stave off a wage-price inflation spiral."

On the whole, the consensus short-term outlook for Sri Lanka is
that growth will slow in the immediate term due to the
persistent structural problems in the economy and the required
tightening of monetary and fiscal policies to manage the world
food and energy price shocks.  The main risk to RAM's  growth
forecast is an escalation in armed conflict, which would not
only drain fiscal resources but also curtail investment and
business activities, particularly FDI inflow.

Promoting private-sector development and projects as well as its
participation in infrastructure financing, together with the
harnessing of foreign capital, is important to Sri Lanka vis-à-
vis overcoming its domestic financing constraints and
accelerating industrial upgrading.  Although civil unrest has
historically been a primary weakness for the development of the
local economy - from supply disruptions to perceived
uncertainties and security concerns by potential investors -
ensuring consistency in economic policies and development is
also important to facilitate private-sector-led growth and
"crowd in" foreign investment.

At the same time, Sri Lanka also needs to increase its export
competitiveness, especially in garments.  While the garment
industry has been the pillar of the country's manufacturing
exports, diversifying growth sources is also vital towards
keeping pace with fast-growing Asian economies, as well as
deriving synergistic benefits from Asia's dynamic overall
economic activities.



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

BENQ INC: First Half Sales in Egypt Grows 300%
----------------------------------------------
BenQ Corp. Inc. has experienced more than 300% sales growth
across its Joybook range of laptop computers, contributing to
the company's overall Egyptian market growth of 55% for the
first half of 2008.

The Joybook sales growth follows the release of the A53, Q41,
S32 and R43 models which are satisfying Egyptian consumer demand
for feature packed and stylish laptop computers.

BenQ also experienced impressive sales results with its LCD TV
and digital projector businesses experiencing 212% growth and
its LCD monitor business growing 50 percent.

"Egypt is a key market for us, and, with the assistance of our
local channel partner IBS, we are planning to continue this
incredible market growth," said Manish Bakshi, General Manager,
BenQ, Middle East and Africa.

"We feel proud to be associated with BenQ for the past 5 years,
which has indeed been fruitful with our revenue target exceeding
35 to 40 per cent, consistently over the years.  BenQ's
continuous support and deep understanding of the local market
combined with our strong infrastructure facilities have worked
wonders for our local retail and channel partners," said Mohamed
Sameh CEO of IBS.

Egypt is in the middle of a major economic makeover and driving
this, although quietly, is the rapid transformation of the
consumer electronics market.  "Our experience thus far in Egypt
has been one of consistent demand across our entire product
range in both the consumer and corporate sectors," said Bakshi.

BenQ's retail sales growth can be attributed in part BenQ Purple
Warriors, exclusive merchandisers spread across various retail
outlets across Egypt including Carrefour, Compume, Hyper One,
Appliance.Raya , Gaballa Group & Radioshack.

BenQ's corporate sales efforts have thus far resulted in several
corporate and educational tenders being secured.  BenQ is
planning to build on its Egypt market success by further
expanding its local sales team.  There are also plans to open a
BenQ Zone in Cairo that will stock the entire BenQ computer and
consumer electronic range.

                   About BenQ Corporation

Headquartered in Taiwan, Republic of China, BenQ Corp. Inc.
-- http://www.benq.com/-- is principally engaged in
manufacturing developing and selling of computer peripherals and
telecommunication products.  It is also a major provider of 3G
handset, camera phones, and other products.

In June 2007 the company announced that it will change its name
to Qisda.

BenQ Mobile GmbH & Co., the company's German-based wholly owned
subsidiary, filed for insolvency in Munich on Sept. 29, 2006,
after BenQ Corp.'s board decided to discontinue capital
injection into the mobile unit in order to stem unsustainable
losses.  The collapse follows a year after Siemens sold the
company to Taiwanese technology group BenQ.

BenQ Mobile has lost market share against giant competitors.  A
Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a
buyer for the company by the Dec. 31, 2006 deadline.

                          *     *     *

BenQ Corp. Inc. continues to carry Taiwan Ratings Corp.'s long-
term twBB+ and short-term twB corporate credit ratings.  The
outlook on the long-term rating is negative.

The company also carries Taiwan Ratings' twBB+ issue rating on
its existing NT$7.05 billion unsecured corporate bonds due 2008,
2009, and 2010.

The ratings reflect BenQ's continuing operating losses from its
handset operations and high leverage, and the competitive nature
and low profitability of the LCD monitor industry.



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

* BOND PRICING: For the Week July 28 - August 1, 2008
-----------------------------------------------------


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

   AUSTRALIA &
   NEW ZEALAND
   -----------
Ainsworth Game Technology Ltd  8.000%  12/31/09     AUD     0.68
A&R Whitcoulls Group           9.500%  12/15/10     NZD    10.95
Allco Hit Ltd                  9.000%  08/17/09     AUD    25.00
Antares Energy                10.000%  10/31/13     AUD     0.57
Babcock & Brown Pty Ltd        9.010%  09/15/16     NZD    29.00
BBI Ntwrks NZ Limited          8.000%  11/30/12     NZD    18.00
Becton Property Group          9.500%  06/30/10     AUD     0.52
Bounty Industries Limited     10.000%  06/30/10     AUD     0.16
Capital Properties NZ Ltd      8.500%  04/15/09     NZD    13.00
Capital Properties NZ Ltd      8.000%  04/15/10     NZD    13.50
Carpal Aluminum               10.000%  03/29/12     AUD    61.00
China Century                 12.000%  09/30/10     AUD     0.75
Cit Group Au Ltd               6.000%  03/03/11     AUD    74.12
Djerriwarrh Investments Ltd    6.500%  09/30/09     AUD     4.01
Fletcher Building Ltd          7.550%  03/15/11     NZD     9.85
Fletcher Building Ltd          7.800%  03/15/09     NZD    11.75
Heemskirk Consolidated
  Limited                      8.000%  04/29/11     AUD     2.84
Hy-Fi Securities Ltd           8.750%  08/15/08     NZD    13.55
Hy-Fi Securities Ltd           7.000%  08/15/08     NZD    15.00
Infrastructure & Utilities     8.500%  09/15/13     NZD    10.00
Jem Warehouse                  3.000%  08/01/14     AUD    73.46
Jpm Au Enf Nom 1               3.500%  06/30/10     AUD    14.00
LongReach Group Limited       10.000%  10/31/08     AUD     0.36
Nylex Ltd.                    10.000%  12/08/09     AUD     1.55
Macquarie Comm                 2.500%  08/23/13     AUD    71.47
Marac Finance                 10.500%  07/15/13     NZD     0.98
Metal Storm Ltd               10.000%  09/01/09     AUD     0.90
Minerals Corp                 10.500%  09/30/08     AUD     0.85
Publ & Broad Fin               6.280%  05/06/11     AUD     8.76
Record Funds Man              11.000%  09/01/10     AUD    42.00
Speirs Group Ltd.             13.160%  06/30/49     NZD    30.00
South Canterbury              10.430%  12/15/12     NZD     0.97
St. Laurence Prop              9.250%  07/15/01     NZD    59.71
Sun Resources NL              12.000%  06/30/11     AUD     0.42
TrustPower Ltd                 8.300%  12/15/08     NZD    10.20
TrustPower Ltd                 8.500%  09/15/12     NZD     8.50
TrustPower Ltd                 8.500%  03/15/14     NZD     8.95

   CHINA
   -----
Baoshan Iron                   8.000%  06/20/14    CNY     74.76
China Govt Bond                4.860%  08/10/14    CNY      0.00

Cosco Shipping                 0.800%  01/28/14    CNY     72.75
GD Power Develop               1.000%  05/07/14    CNY     72.55
Gezhouba                       0.600%  06/26/14    CNY     69.18
Kangmei Pharm                  0.800%  05/08/14    CNY     70.56
Tsingtao Brewery               0.800%  04/02/14    CNY     71.70

   INDIA
   -----

India Gov't                    5.870%  08/28/22    INR     70.63
India Gov't                    6.970%  09/25/25    INR     68.18
India Gov't                    6.010%  03/25/28    INR     66.98
India Gov't                    6.130%  06/04/28    INR     67.93
India Gov't                    6.170%  06/12/23    INR     71.64
India Gov't                    6.300%  04/09/23    INR     72.94

   JAPAN
   -----

Joint Corp                     2.430%  07/27/10     JPY    74.74
Shinsei Bank Ltd.              5.625%  12/29/49     GBP    73.27

   KOREA
   -----
Korea Dev. Bank                7.310%  11/08/21     KRW    43.97
Korea Dev. Bank                7.350%  10/27/21     KRW    44.07
Korea Dev. Bank                7.400%  11/02/21     KRW    44.02
Korea Dev. Bank                7.450%  10/31/21     KRW    44.04
Korea Dev. Bank                8.450%  12/15/26     KRW    69.83

   MALAYSIA
   --------
Advance Synergy Berhad         2.000%  01/26/18     MYR     0.50
Aliran Ihsan Resources Bhd     5.000%  11/29/11     MYR     0.96
Berjaya Land Bhd               5.000%  12/30/09     MYR     4.20
Eastern & Orient               8.000%  07/25/11     MYR     1.08
EG Industries Berhad           5.000%  06/16/10     MYR     0.23
Equine Capital                 3.000%  08/26/08     MYR     1.63
Greatpac Holdings              2.000%  12/11/08     MYR     0.15
Huat Lai Resources Bhd         5.000%  03/28/10     MYR     0.59
Insas Berhad                   8.000%  04/19/09     MYR     0.41
Kamdar Group Bhd               3.000%  11/09/09     MYR     0.21
Kretam Holdings Bhd            1.000%  08/10/10     MYR     1.11
Kumpulan Jetson Berhad         5.000%  11/27/12     MYR     0.56
LBS Bina Group Bhd             4.000%  12/31/08     MYR     0.31
Mithril Bhd                    3.000%  04/05/12     MYR     0.57
Mithril Bhd                    8.000%  04/05/09     MYR     0.11
Nam Fatt Corp                  2.000%  06/24/11     MYR     0.34
Pelikan International          3.000%  04/08/10     MYR     1.31
Pilecon Engineering Bhd        5.000%  12/19/11     MYR     0.10
Plus Spv Bhd                   2.000%  06/27/17     MYR    68.90
Plus Spv Bhd                   2.000%  06/27/18     MYR    66.03
Plus Spv Bhd                   2.000%  06/27/19     MYR    63.27
Puncak Niaga Holdings Bhd      2.500%  11/18/16     MYR     0.79
Rhythm Consolidated Berhad     5.000%  12/17/08     MYR     0.09
Rubberex Corporation Berhad    4.000%  08/14/12     MYR     0.72
Silver Bird Group              1.000%  02/15/09     MYR     0.56
Syabas                         3.000%  05/18/18     MYR    71.97
Syabas                         3.000%  05/17/19     MYR    69.14
Tenaga Nasional Bhd            3.050%  05/10/09     MYR     0.90
Tradewinds Corp.               2.000%  02/08/12     MYR     0.60
Tradewinds Plantation Berhad   3.000%  02/28/16     MYR     1.30
TRC Synergy Berhad             5.000%  01/20/12     MYR     1.21
Wah Seong Corp.                3.000%  05/21/12     MYR     4.16
Wijaya Baru Global Berhad      7.000%  09/17/12     MYR     0.49
YTL Cement Bhd                 4.000%  11/10/15     MYR     1.40

   SINGAPORE
   ---------

Capitaland Ltd.                2.950%  06/20/22     SGD    73.67
Hynix Semi Inc                 7.875%  06/27/17     USD    74.00
Sengkang Mall                  4.880%  11/20/12     SGD     1.55
Sengkang Mall                  8.000%  11/20/12     SGD     1.00

   SRI LANKA
   ---------
Sri Lanka Govt                7.500%  08/15/18     LKR     71.00
Sri Lanka Govt                6.850%  10/15/12     LKR     68.72
Sri Lanka Govt                7.000%  10/15/11     LKR     74.12
Sri Lanka Govt                8.500%  01/15/13     LKR     72.82
Sri Lanka Govt                8.500%  07/15/13     LKR     71.67
Sri Lanka Govt                8.500%  08/15/18     LKR     59.84
Sri Lanka Govt                8.500%  07/15/18     LKR     64.77
Sri Lanka Govt                8.500%  02/01/18     LKR     65.38
Sri Lanka Govt                7.500%  08/01/13     LKR     68.35
Sri Lanka Govt                7.500%  11/01/13     LKR     67.63
Sri Lanka Govt                7.000%  10/01/23     LKR     52.97




                         *********

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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