---

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

                     A S I A   P A C I F I C

            Monday, September 1, 2008, Vol. 11, No. 173

                            Headlines

A U S T R A L I A

ACTIVBUDDY PTY: Joint Meeting Slated for September 5
ARGUS CONSTRUCTIONS: Members and Creditors to Meet on September 5
CENTRO PROPERTIES: Posts AU$2.1 Bil. Net Loss for FY2008
CENTRO NP: Posts US$299.5 Million Net Loss in 2008 Second Quarter
CHACKO & SONS: Liquidator to Give Wind-Up Report on September 8

CHAICA PTY: Liquidator to Present Wind-Up Report on September 5
DARAMFARROW PTY: To Declare Dividend on September 16
FORTESCUE METALS: To Sell Preference Shares to Finance Expansion
NORTHERN BEACHES: Members' Final Meeting Slated for September 9
PONSONBY INVESTMENTS: Members' Final Meeting Set for September 5

PRINT PERFECT: Joint Meeting Slated for September 8
RFA ACOUSTIC: Members' Final Meeting Set for September 8
TNW PTY: Members and Creditors to Meet on September 5


C H I N A

BANK OF CHINA: Posts Lowest 1H Profit Growth Among Peers
CHINA EASTERN: 1H Net Profit Drops 28.5% to CNY41.621 Million
PORTOLA PACKAGING: Files for Bankruptcy, Gets US$79MM DIP Facility
PORTOLA PACKAGING: Case Summary & 20 Largest Unsecured Creditors
SHENZHEN DEVELOPMENT: Moody's Upgrades Bank Fin'l Strength to  D-

XINHUA FINANCE: 1H Net Profit Up 30% to US$142.4 Million


H O N G K O N G

CHINA GLASS: S&P Affirms Corporate Credit Rating at B+/Stable
CWS HONG KONG: Creditors' Proofs of Debt Due on September 22
ELICON FOOTWEAR: Members to Hold General Meeting on September 30
GUANGDONG (H.K): Annual Meetings Slated for September 11
HOME GOURMET: Placed Under Voluntary Liquidation

MEGA SHEEN: Creditors' Proofs of Debt Due on October 10
MICKEY WEATHERWEAR: Members' Final Meeting Set for September 22
ON MEI: To Hold General Meeting on September 22
POLYCROWN (SICHUAN): Placed Under Voluntary Liquidation
STAR MARINE: Members to Hold General Meeting on September 26


I N D I A

AIR INDIA: To Carry Less Necessities to Save on Fuel Costs
ESS ESS LEASING: RBI Cancels Certificate of Registration
GENERAL MOTORS: To Invest US$200 Mil. in India Engine Plant
TATA MOTORS: Nano Project in Singur Risks Delay Due to Protests
TATA STEEL: First Quarter Net Profit Up 60.5% to US$892 Mil.


J A P A N

AOZORA BANK: Shares Fall on Net Loss Forecast
CABS LTD: S&P Removes B Rating on Class A Notes From Neg. Watch
IKON OFFICE: Ricoh Buyout Cues S&P to Put 'BB-' on Watch Pos
IKON OFFICE: Ricoh Buyout Cues S&P to Put 'BB-' on Watch Pos
LEHMAN BROTHERS: To Slash Up to 6% of Workforce

MAZDA MOTOR: Cuts Sales Forecast by Half at One China Venture
* JAPAN: Moody's Confirms Negative Outlook in Airline Industry


K O R E A

HYNIX SEMI: Lowers Share Conversion Price for Planned Bond by 14%
HYNIX: Completes Construction of Fabrication Plant in Cheongju


M A L A Y S I A

BSA INTERNATIONAL: Names Kheh Wee as Chairman of Audit Committee
KIMBLE CORPORATION: Unit Subject to Wind-Up Petition by DNE Total
OCI BERHAD: Incurs MYR1.47 Mil. Net Loss in Qtr. Ended June 30
TIME ENGINEERING: Posts MYR90,000 Net Loss in Qtr. Ended June 30


N E W  Z E A L A N D

AIR NEW ZEALAND: Executives' Salaries Dropped 18%
CHATHAMS DIRECT: Commences Liquidation Proceedings
COSTABELLA LIMITED: Commences Liquidation Proceedings
GROUND CONTROL: Shareholders Appointed Liquidator
INTERCRYLL DESIGN: Shareholders Appoint Chapman as Liquidator

JUNCTION SKI: Liquidators Set September 30 as Claims Bar Date
LANDSCAPE CONCEPTS: Shareholders Appointed Liquidator
QUICKER NET: Commences Liquidation Proceedings
WYNAR LIMITED: Shareholders Opt to Liquidate Business


P H I L I P P I N E S

* PHILIPPINES: Business Outlook is Bearish in 3rd Qtr., BES Says


S I N G A P O R E

ALLCO REIT: S&P Puts BB Long-Term Credit Rating on WatchPositive
STATS CHIPPAC: Enters Manufacturing Agreement With Infineon

T H A I L A N D

FEDERAL-MOGUL: Shows Stability Amid Auto Sales Slump


                         - - - - -


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

ACTIVBUDDY PTY: Joint Meeting Slated for September 5
----------------------------------------------------
Activbuddy Pty Limited will hold a joint meeting for its members
and creditors at 10:00 a.m. on Sept. 5, 2008.  During the meeting,
the company's liquidator, Frank Lo Pilato at RSM Bird Cameron
Partners, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Frank Lo Pilato
          RSM Bird Cameron Partners
          Level 1, 103-105 Northbourne Avenue
          Turner ACT 2612
          Telephone: (02) 6247 5988


ARGUS CONSTRUCTIONS: Members and Creditors to Meet on September 5
-----------------------------------------------------------------
Argus Constructions Pty Limited will hold a joint meeting for its
members and creditors at 10:30 a.m. on Sept. 5, 2008.  During the
meeting, the company's liquidator, Frank Lo Pilato at RSM Bird
Cameron Partners, will provide the attendees with property
disposal and winding-up reports.

The company's liquidator can be reached at:

          Frank Lo Pilato
          RSM Bird Cameron Partners
          Level 1, 103-105 Northbourne Avenue
          Turner ACT 2612
          Telephone: (02) 6247 5988


CENTRO PROPERTIES: Posts AU$2.1 Bil. Net Loss for FY2008
--------------------------------------------------------
Centro Properties Group disclosed an AIFRS loss of AU$2,053
million for the financial year ended June 30, 2008.  These results
and the corresponding financial statements have been prepared on a
fully consolidated basis as a result of moving to more than 50%
ownership of the Centro Direct Property Fund (DPF) and Centro
Direct Property Fund International (DPFI).  As a consequence,
Centro Retail Trust, Centro Australia Wholesale Fund, Centro
America Fund, Super LLC and certain Centro MCS syndicates have
also been consolidated.

After minority interests of AU$2.4 million, the loss attributable
to Centro securityholders of AU$2,055 million includes the
following non-cash and nonrecurring items:

   -- Property revaluations AU$1,195 million

   -- Asset impairment AU$772 million

   -- Unrealised derivative losses AU$181 million

   -- Restructure costs AU$130 million

   -- Other non-cash AIFRS items AU$19 million

Centro CEO Glenn Rufrano said, "Maintaining the underlying value
of the business has been a major focus of the management team.
The headline loss of AU$2,055 million does not reflect the
operating performance of the Group for the past financial year.
After adding back the above items to the headline result the
underlying earnings are AU$242 million."

                    Gearing and Debt Maturity

On a consolidated basis as at June 30, 2008, Centro's gearing and
debt were as as follows:

   * Look through gearing of 73.9%, which takes into account
     all of Centro's look through property investments and
     borrowings; and

   * Total debt of AU$6.56 billion on both a look through and
     a consolidated basis.

                  Managed Property Portfolio
                          Performance

"Although operating conditions in the US and Australia remain
challenging, our portfolio is diversified by tenant, geography and
retail format to provide long term stability.  Our tenants are
heavily weighted toward necessity-orientated retailers such as
supermarkets and discount stores and it is these retailers that
continue to perform solidly when economic conditions start to
slow," said Mr. Rufrano.

Centro's managed property portfolio either met or exceeded
expectations for FY09. Specifically, the portfolios performed as
follows for the year:

   * United States Property Portfolio

    The US portfolio, which accounts for 59% by value of total
    properties under management, has grown significantly and
    produced the following results for the year:

     - Comparable NOI growth - stabilised of 1.9%;

     - Comparable NOI growth – including developments
       of 3.3%

     - 72.5% renewal rate on specialty leases;

     - Rental income growth on new leases of 8.0%; and

     - 91.9% occupancy for the stabilised portfolio.

     The current US$437 million development pipeline represents
     approximately 3% of assets under management and is critical
     to maintaining retailer relationships and the value of the
     centres.

   * Australasian Property Portfolio

     The Australasian portfolio experienced good NOI growth
     throughout the year, underpinned by strong leasing demand
     and near full occupancy with less than one vacancy per
     centre on average.  Details of this performance were:

     - 6.9% comparable sales growth;

     - Comparable NOI growth - stabilised of 3.7%;

     - Comparable NOI growth – including developments
       of 4.6%;

     - 79.8% renewal rate on specialty leases;

     - Rental income growth of 9.7% on new leases; and

     - 99.5% occupancy for the stabilised portfolio.


     Thirteen developments were completed at an average yield
     of 7.4% for FY08.  The level of development activity has
     slowed with the current development program being AU$194
     million.

   * Property Valuations

    Property valuations for the managed portfolio were determined
    using a combination of Directors' and independent valuations
    and reflected the following capitalisation rate movements for
    comparable properties from June 2007 to June 2008:

     - Increase of 38 basis points for the US; and

     - Increase of 18 basis points for Australia.

   * Services Business

    For the year, the services business generated net income of
    AU$210 million based on:

     - AU$138 million (39%) of gross income derived from the
       management, leasing and development of properties in the
       managed portfolio.  This was up significantly from the
       prior period due to the full year impact of growth in the
       size of the managed portfolio; and

     - The remaining AU$221 million (62%) in gross income was
       contributed by funds management, with AU$195 million (88%)
       of this amount arising from recurring responsible entity
       fees, custodian fees and cost recoveries.

                     Group Recapitalisation

Centro will provide a recapitalization update to the market on
Sept. 25, 2008.  This announcement included an update on the
following:

   -- Asset sales;

   -- Proposals received (and rejected) for new equity; and

   -- The Group's objective to obtain longer term debt extensions
      from the lender groups beyond Dec. 15, 2008.

"While there is no disguising the seriousness of the situation for
the Centro group, we are making incremental steps towards
stabilisation in a difficult environment.  Our fundamental task
remains to secure long term debt restructuring and we will
continue to work with our lending groups to achieve this
goal," said Mr. Rufrano.

                    Annual General Meeting

The Annual General Meeting for Centro Properties Group is
scheduled to be held on Nov. 28, 2008.

                       About Centro Properties

Centro Properties Group (ASX:CNP)-- http://www.centro.com.au/--
is a retail investment organization specializing in the
ownership, management and development of retail shopping
centres.  Centro manages both listed and unlisted retail
property and has an extensive portfolio of shopping centres
across Australia, New Zealand and the United States.  Centro has
funds under management of US$24.9 billion.

Centro owes its creditors as much as AU$6.6 billion and its
deadline to repay these debts has been extended four times since
December 2007, when the company's market value plunged.  The
recent deadline extension given to the Group is December 15,
2008.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on Jan. 4,
2008, that Standard & Poor's Ratings Services lowered its issuer
credit, senior-unsecured debt and preferred stock ratings to
'CCC+' with negative implications reflecting the potential of
the group's assets to be sold in softening market conditions,
particularly in the U.S.


CENTRO NP: Posts US$299.5 Million Net Loss in 2008 Second Quarter
-----------------------------------------------------------------
Centro NP LLC reported a net loss of US$299.5 million for the
second quarter ended June 30, 2008, a net loss of US$34.7 million
for the period from April 1, 2007, through April 4,2007, and net
income of US$3.7 million for the period April 5, 2007, through
June 30, 2007.

Rental income was US$76.9 million for the three months ended
June 30, 2008, US$4.5 million for the period from April 1, 2007,
through April 4, 2007, and US$94.2 million for the period April 5,
2007 through June 30, 2007.

These significant factors caused material changes in the rental
income of the company:

  -- 2007 Acquisitions, which increased rental income by
     approximately US$5.6 million

  -- Increased amortization of below market leases, which leases
     were recorded at fair value upon completion of the purchase
     accounting analyses by the company in connection with the
     Merger, which increased rental income by approximately
     US$3.8 million

  -- Net increases in rental rates and straight-line rent
     adjustments, which increased rental income by approximately
     US$2.1 million

  -- The Residual Joint Venture Transactions, which decreased
     rental income by approximately US$33.0 million

Expense reimbursements were US$20.5 million for the three months
ended June 30, 2008, US$2.4 million for the period from April 1,
2007, through April 4, 2007, and US$23.7 million for the period
from April 5, 2007, through June 30, 2007.

Fee income was US$8.4 million for the three months ended June 30,
2008, US$196,000 for the period from April 1, 2007, through
April 4, 2007, and US$6.8 million for the period from April 5,
2007, through June 30, 2007.

The company reported a loss before real estate sales, minority
interest and other income and expenses, of US$248.0 million for
the three months ended June 30, 2008, a loss of US$32.7 million
for the for the period from April 1, 2007, through April 4, 2007,
and income of US$29.8 million for the period from April 5, 2007,
through June 30, 2007.

During three months ended June 30, 2008, the company recorded
impairment charges of US$95.1 million and US$18.1 million over its
real estate assets and real estate held for sale assets,
respectively.  These impairment charges are the result of changes
in the hold period probability weighting applied by management in
relation to the company's real estate assets and real estate
assets held for sale, in accordance with SFAS No. 144.

An impairment charge of US$173.5 million of goodwill and other
intangibles was also recorded by the company during the three
months ended June 30, 2008.  This impairment charge was required
due to the significant reduction in the company and affiliates'
capital streams derived from certain property and funds management
services.

During the three months ended June 30, 2008, the company recorded
an impairment charge of US$6.2 million in relation to its
investment in Centro GA America LLC.  This charge is the result of
an other than temporary loss in value of the company's investment.
The company has identified that the cause for the other than
temporary loss is the decrease in the fair value of the underlying
real estate investments of Centro GA America LLC, due to the
intended sale of these assets during the next six to twelve
months.

                    Short-Term Liquidity Needs

In addition to short-term indebtedness, the company's short-term
liquidity requirements consist primarily of funds necessary to pay
for management fees, operating and other expenses directly
associated with its portfolio of properties, interest expense and
scheduled principal payments on its outstanding debt, capital
expenditures incurred to facilitate the leasing of space (e.g.,
tenant improvements and leasing commissions), and capital
expenditures incurred in the company's development and
redevelopment projects.

The company presently has US$306.8 million of debt under its
Amended July 2007 Revolving Facility scheduled to mature on the
earlier to occur of (i) Sept. 30, 2008, and (ii) the date on which
any trigger event under its Amended July 2007 Revolving Facility
occurs.  The company also has aggregate of US$8.6 million of
mortgage debt scheduled to mature during 2008.  Although the
company has historically met its short-term liquidity requirements
with cash generated from operations and borrowings under credit
facilities, the company is presently unable to make draws on its
Amended July 2007 Revolving Facility.  Due to covenants contained
in certain of its debt agreements, the company is prohibited from
incurring additional indebtedness and are limited to distributions
received from the Residual Joint Venture that are funded with
borrowings from an US$80.0 million revolving credit facility of
BPR Shopping Center, LLC, an unconsolidated subsidiary of the
company.

The company is currently working with the lenders under its
Amended July 2007 Revolving Facility to refinance its short-term
indebtedness and are considering additional plans with respect to
meeting its short-term liquidity requirements.

Additionally, the limited partners of Excel Excel Realty Partners,
L.P., a consolidated entity, have a redemption right for their
Class A Preferred Units exercisable as of April 20, 2008.  The
aggregate redemption amount payable to all limited partners as of
April 1, 2008, was approximately US$83.9 million.  The DownREIT
Partnership was required to pay the redemption amount on June 27,
2008, to any redeeming limited partners which it received a notice
of redemption from on or prior to June 13, 2008.  Limited partners
were not entitled to provide notice of redemption prior to April
20, 2008.  Prior to June 27, 2008, twelve limited partners, who
held a total of approximately 1.35 million units, exercised their
redemption right, the aggregate redemption amount payable in
relation to such redemption would have been approximately US$44.9
million.

On June 26, 2008, the DownREIT Partnership entered into agreements
with such twelve limited partners which provided for, among other
things, the DownREIT Partnership to pay the redemption amount for
15% of each limited partner's outstanding Class A Preferred Units
and an extension payment of 1% of the remaining Class A Preferred
Units on June 27, 2008.  The aggregate redemption amount paid on
June 27, 2008, to the 12 redeeming limited partners was
approximately US$6.7 million and the extension payment was
approximately US$380,000.  In addition, the agreements provide
that the DownREIT Partnership is required to redeem the remaining
85% of the twelve limited partners' Class A Preferred Units by a
date no later than Sept. 15, 2008, with any net proceeds of the
company from a sale, mortgage or any other transfer of assets of
the company or its subsidiaries to be used promptly to redeem all
or a portion of the remaining Class A Preferred Units.  The
DownREIT Partnership's redemption obligation is also secured by
certain of its properties.

                          Balance Sheet

At June 30, 2008, the company's consolidated balance sheet showed
US$4.51 billion in total assets, US$2.20 billion in total
liabilities, US$42.0 million in minority interest in consolidated
partnership and joint ventures, and US$2.27 billion in total
member's capital.

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?316a

                       Going Concern Doubt

There is substantial doubt about the company's ability to continue
as a going concern given that the company's liquidity is subject
to, among other things, its ability to negotiate extensions of
credit facilities.  The company's inability to refinance the
credit facilities would have a material adverse effect on the
company's liquidity and financial condition.  In addition,
uncertainty also exists due to the refinancing issues currently
experienced by the company's ultimate parent investors, Centro
Properties Group and Centro Retail Group.  If the outcomes of
these refinancing negotiations are not favorable to Centro
Properties Group and Centro Retail Group, it is uncertain as to
the impact that this will have on the company.

                       About Centro NP LLC

Headquartered in New York, Centro NP LLC (formerly Super
IntermediateCo LLC) was formed in February 2007 to succeed the
operations of New Plan Excel Realty Trust Inc.  The principal
business of the company is the ownership and management of
community and neighborhood shopping centers throughout the United
States.  A substantial portion of its revenue is derived from
tenants under existing leases at its properties.  Prior to the
consummation of the merger, New Plan Excel Realty Trust was
operated as a self-administered, self-managed real estate
investment trust.


CHACKO & SONS: Liquidator to Give Wind-Up Report on September 8
---------------------------------------------------------------
Chacko & Sons will hold a joint meeting for its members and
creditors at 10:00 a.m. on Sept. 8, 2008.  During the meeting, the
company's liquidator, Geoffrey McDonald at Hall Chadwick, will
provide the attendees with property disposal and winding-up
reports.

The company's liquidator can be reached at:

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


CHAICA PTY: Liquidator to Present Wind-Up Report on September 5
---------------------------------------------------------------
Chaica Pty Limited will hold a joint meeting for its members and
creditors at 9:30 a.m. on Sept. 5, 2008.  During the meeting, the
company's liquidator, Frank Lo Pilato at RSM Bird Cameron
Partners, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Frank Lo Pilato
          RSM Bird Cameron Partners
          Level 1, 103-105 Northbourne Avenue
          Turner ACT 2612
          Telephone: (02) 6247 5988


DARAMFARROW PTY: To Declare Dividend on September 16
----------------------------------------------------
Daramfarrow Pty Ltd will declare dividend on Sept. 16, 2008.

Only creditors who were able to file their proofs of debt by Aug.
15, 2008, will be included in the company's dividend distribution.

The company's liquidator is:

          Dean R. McVeigh
          Foremans Business Advisors (Southern) Pty Ltd
          Suite 8, 56-60 Bay Road
          Sandringham VIC 3191


FORTESCUE METALS: To Sell Preference Shares to Finance Expansion
----------------------------------------------------------------
Fortescue Metals Group Ltd said that it has lodged a Notice
of Meeting in relation to a proposed change in Fortescue's
constitution to allow for the issuance of preference shares.  The
meeting is scheduled for Tuesday, Sept. 30, 2008, to be held at
the Hyatt Hotel in Perth at 10:00 a.m.

The company said that as articulated in the Notice of Meeting, its
current constitution does not specifically provide for the issue
of preference shares and therefore the amendments are sought to
facilitate this ability.  Preference shares are a form of funding
that Fortescue intends to use in its broad capital raising program
to finance its expansion plans for the port, rail and mine
project.

As part of this program Fortescue said it is pleased to announce
that it has received a subscription application for preference
shares for an aggregate of AU$140 million.  The subscription
application is conditional on a successful vote at the EGM.  The
key terms of the proposed issue are;

   -- Dividend coupon rate of 9% fixed p.a. payable six monthly
      either in cash, or where cash distributions are not able
      to be made by Fortescue, additional preference shares or
      ordinary shares (calculated on the basis of the volume
      weighted average share price) as elected by Fortescue;
      Term of 8.5 years;

   -- Redeemable by Fortescue at any time subject to minimum
      30 days notice;

   -- Preference shares to rank in priority to Fortescue's
      ordinary shares on a winding up and in relation to the
      payment of distributions; and

   -- Limited voting rights in accordance with the rights
      outlined in the Notice of Meeting.

Other funding options, including further preference share issues,
are being advanced as part of an overall program to facilitate the
expansion of the Project, including by the awarding of critical
path construction contracts and long lead-time equipment
procurement orders.

Fortescue also said it has received product prepayment commitments
for US$275 million from five Chinese steel mills for Fortescue's
expansion production.  These funds will be returned in line with
product deliveries, amortised over a 5 year period from the
scheduled first delivery date.  To date, proceeds of US$68 million
have been received with the balance due progressively over
the next few months.  Proceeds from the prepayments will be used
for general Project liquidity.

                       About Fortescue Metals

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

                          *     *     *

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


NORTHERN BEACHES: Members' Final Meeting Slated for September 9
---------------------------------------------------------------
E. P. Groombridge, Northern Beaches Financial Planning Pty
Limited's appointed estate liquidator, will meet with the
company's members on Sept. 9, 2008, at 11:00 a.m. to provide them
with property disposal and winding-up reports.  The meeting will
be held at the offices of Hudson & Sibbick Pty Ltd, Suite 1, Level
10 South Tower, 1- 5 Railway Street in Chatswood, New South Wales.


PONSONBY INVESTMENTS: Members' Final Meeting Set for September 5
----------------------------------------------------------------
David Ian Stewart, Ponsonby Investments Pty Ltd's appointed estate
liquidator, will meet with the company's members on Sept. 5, 2008,
to provide them with property disposal and winding-up reports.

The liquidator can be reached at:

          David Ian Stewart
          Wynn & Bennett
          Level 10
          5 Elizabeth Street
          Sydney, NSW


PRINT PERFECT: Joint Meeting Slated for September 8
---------------------------------------------------
Print Perfect Pty Limited will hold a joint meeting for its
members and creditors at 10:00 a.m. on Sept. 8, 2008.  During the
meeting, the company's liquidator, G. J. Parker will provide the
attendees with property disposal and winding-up reports.

The company's liquidator can be reached at:

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


RFA ACOUSTIC: Members' Final Meeting Set for September 8
--------------------------------------------------------
Mark W. Willock, RFA Acoustic Design Proprietary Limited's
appointed estate liquidator, will meet with the company's members
on Sept. 8, 2008, at 10:00 a.m. to provide them with property
disposal and winding-up reports.

The liquidator can be reached at:

          Mark W. Willock
          LBW & Partners
          Level 3, 845 Pacific Highway
          Chatswood NSW 2067


TNW PTY: Members and Creditors to Meet on September 5
-----------------------------------------------------
TNW Pty Limited will hold a joint meeting for its members and
creditors at 9:00 a.m. on Sept. 5, 2008.  During the meeting, the
company's liquidator, Frank Lo Pilato at RSM Bird Cameron
Partners, will provide the attendees with property disposal and
winding-up reports.

The company's liquidator can be reached at:

          Frank Lo Pilato
          RSM Bird Cameron Partners
          Level 1, 103-105 Northbourne Avenue
          Turner ACT 2612
          Telephone: (02) 6247 5988



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

BANK OF CHINA: Posts Lowest 1H Profit Growth Among Peers
--------------------------------------------------------
Bank of China reported a first half profit growth of 42.78% to
CNY2.18 billion, the only domestic listed bank reporting a profit
below 50%, due to its substantial exposure to subprime related
assets, China Daily News reports.

The bank's losses on securities tied to subprime mortgages total
US$1.9 billion, up from US$1.5 billion on March 31, the report
says.

According to the report, the bank held US$1.83 billion of
securities tied to so-called Alt-A mortgages and US$5.08 billion
of other home loan investments.

The bank holds a total of US$7.5 billion, and US$5.17 billion of
mortgage-backed securities guaranteed by Fannie Mae and Freddie
Mac, the report notes.

Analysts cited by the news agency said the bank's earnings were
also hurt as a stronger yuan against the greenback eroded the
values of its overseas holdings.

China Daily relates the bank has the highest ratio of overseas
investment among Chinese banks at 44%, and also has the highest
ratio of foreign exchange assets at more than 30%, much higher
than the average 8% of domestic banks.

"The bank's foreign exchange holdings have been and will continue
to have a negative effect on its profit," the Daily cited Yuan
Lin, an analyst from Bank of China International Securities, as
saying.

                  About Bank of China

Headquartered in Beijing, China, the Bank of China
-- http://www.bank-of-china.com/-- provides corporate banking,
retail banking and investment banking.  Other activities include
provision of corporate deposits, corporate loans, foreign
exchange business, savings deposits, consumer credit and
bankcards.  It has 12,967 domestic branches and 559 overseas
branches.  The bank received a US$22.5 billion capital injection
from the Government in 2003 to restructure state-owned banks.
The state-owned lender has been offloading bad loans and
increasing capital since 2003 in preparation for an overseas
share sale, part of government plans to prepare the industry for
increased foreign competition, starting at the end of this year.

                          *     *     *

The bank continues to carry Moody's Investors Service Ratings'
'D' Bank Financial Strength Rating and Fitch Ratings' 'D'
Individual Rating.

CHINA EASTERN: 1H Net Profit Drops 28.5% to CNY41.621 Million
-------------------------------------------------------------
China Eastern Airlines Corp. Limited's first-half net profit
dropped 28.5% to CNY41.621 million, SinoCast News reports.

The airline's turnover, the report relates, grew 6.3% to
CNY20.831 billion with total profit rising 6.54% to CNY89.915
million.  Its basic earnings per share were CNY0.0086 and the net
asset-earning rate was 1.45%.

The company, the report says, ran 398 routes including 293
domestic routes, 16 routes to Hong Kong and 89 international
routes by June 30, 2008.  It operated 5,922 flights each week
serving 138 cities, and it owns and operates 225 aircrafts
including 199 over-100-seat passenger jets, fifteen 50-seat
passenger jets and 11 freight jets, the report notes.

According to SinoCast News, the company's flights accounted for
36.9% of the total of Shanghai Hongqiao International Airport and
36.1% of the total flight of Shanghai Pudong International Airport
in the period.

It also opened two regular international routes, the Sanya-Moscow
route and the Shijiazhuang-Seoul route, optimizing its
international route network, the report adds.

                       About China Eastern

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

                          *     *     *

China Eastern continues to carry Fitch Ratings' B+ foreign
currency and local currency issuer default ratings, and Xinhua
Far East China Ratings' BB+ issuer credit rating with a stable
outlook.


PORTOLA PACKAGING: Files for Bankruptcy, Gets US$79MM DIP Facility
----------------------------------------------------------------
Portola Packaging, Inc. filed a voluntary Chapter 11 petition to
reorganize before the United States Bankruptcy Court for the
District of Delaware.

In connection with the filing, the company confirmed that all of
its secured lenders and holders of approximately 90% in aggregate
principal amount of its 8-1/4% Senior Notes due 2012 agreed to a
voluntary and consensual restructuring of the company pursuant to
the restructuring support agreement dated July 24, 2008. Pursuant
to the proposed plan of reorganization, holders of the Senior
Notes will receive 100% of the common stock of reorganized Portola
in exchange for their claims.

Wayzata Investment Partners LLC is expected to be the company's
controlling shareholder upon its emergence from bankruptcy.  The
company's plan of reorganization will reduce its long term debt
obligations by US$180 million.  The company anticipates completing
its pre-packaged reorganization and emerging from Chapter 11 in
mid-October, 2008.

Under the restructuring plan, all obligations owed to trade
creditors, suppliers, customers and employees in the ordinary
course of business will be unimpaired and unaffected by the
restructuring.

The company reached agreement with its existing secured lenders
to provide the Company with debtor-in-possession financing of
US$79 million to pay off the outstanding indebtedness under the
company's existing secured facilities and to finance its ongoing
operations.

The company said that its president and chief executive officer,
Brian Bauerbach, and its chief financial officer, John LaBahn, and
its general counsel, Kim Wehrenberg, have been appointed as the
sole directors of the company and will oversee the restructuring.

"We are pleased to have achieved such strong support for a
consensual restructuring that dramatically improves our balance
sheet, reduces our annual cash interest obligations by
approximately US$15 million, and enables continued reinvestment in
our products and future growth," Mr. Bauerbach stated.  We are
thrilled to have the continued support of Wayzata and look forward
to its long term commitment to the business."

In conjunction withe Chapter 11 filing, the company is seeking
approval for a variety of first day motions that will allow it to
continue to manage operations in the ordinary course.  The motions
include requests to make wage and salary payments and other
benefits to employees and to pay critical vendors, suppliers,
trade creditors and certain other pre-petition trade claims.

A full-text copy of the company's restructuring term sheet date
July 24, 2008, is available for free at:

               http://ResearchArchives.com/t/s?3168

A full-text copy of the company and lenders' restructuring support
agreement is available for free at:

               http://ResearchArchives.com/t/s?3169

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

                             *   *   *

As reported in the Troubled Company Reporter on July 31, 2008,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Portola Packaging Inc. to 'D' from 'CCC-'.  In addition,
S&P lowered the senior unsecured ratings to 'D' from 'C'.  The
downgrades follow Portola's announcement that it is restructuring
its capital structure through a prepackaged Chapter 11 bankruptcy
filing.  Before the default, the rating on Portola's US$180
million 8.25% senior unsecured notes was two notches below the
corporate credit rating and the recovery rating was '6',
indicating the expectation for negligible (0% to 10%) recovery in
the event of a payment default.


PORTOLA PACKAGING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Portola Packaging, Inc.
        aka Cap Snap
        aka NEPCO
        aka Consumer Cap
        aka Nepco
        aka Allied Tool
        951 Douglas Road
        Bativia, IL 60510

Bankruptcy Case No.: 08-12001

Debtor-affiliates filing separate Chapter 11 petitions:

        Entity                                   Case No.
        ------                                   --------
  Great Lakes Sales Associates, LLC              08-12002
  Northern Engineering and Plastics Corporation
    (Delaware)                                   08-12003
  Northern Engineering Plastics Corporation
    (Puerto Rico)                                08-12004
  Northern Engineering Plastics Corporation -
    Puerto Rico (Pennsylvania)                   08-12005
  Portola Allied Tool, Inc.                      08-12006
  Portola Tech International, Inc.               08-12007

Type of Business: The Debtors designs, manufactures, and markets a
                  full line of tamper-evident plastic closures,
                  bottles, and equipment for the beverage and food
                  industries, as well as plastic closures and
                  containers for the cosmetics industry.
                  See http://www.portpack.com/

Chapter 11 Petition Date: August 27, 2008

Court: District of Delaware (Delaware)

Judge: Christopher S. Sontchi

Debtors' Counsels: Young, Conaway, Stargatt & Taylor
                   Edmon L. Morton, Esq.
                   Robert S. Brady, Esq.
                   Sean T. Greecher, Esq.
                   The Brandywine Building
                   1000 West Street, 17th Floor
                   P.O. Box 391
                   Wilmington, DE 19899
                   Tel: (302) 571-6600
                   Fax: (302) 571-1253
                   Email: bankfilings@ycst.com

Estimated Assets: US$50 million to US$100 million

Estimated Debts:  US$100 million to US$500 million

Debtors' consolidated list of their 20 Largest Unsecured
Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
U.S. Bank National Association   Notes             US$180,000,000
60 Livingston Avenue                               (Aggregate
St. Paul, MN 55107-2292                             principal
                                                    amount)

SACMI IMOLA                      Trade Creditor      US$1,056,895
Via Selice Provencial, 17/A
40026 Imola Bo Italy
Casella Postale 113 Italy

KDV (1006)                       Trade Creditor        US$307,142
431 W. Newhall Avenue
Waukesha, WI 53186

Packaging Corp. of America       Trade Creditor        US$164,097

Hoffer Plastics Corp.            Trade Creditor        US$160,467

Foreco SRL                       Trade Creditor        US$135,766

Unipac Corp.                     Trade Creditor        US$113,831

Rite Systems Inc.                Trade Creditor        US$108,783

City of Batavia                  Utility                US$96,935

Much Shelist                     Trade Creditor         US$96,713

Riverdale Color                  Trade Creditor         US$90,828

Bamberger Polymers, Inc.         Trade Creditor         US$75,041

D&D Custom Machine               Trade Creditor         US$71,874

Whitaker Transportation Co. Inc. Trade Creditor         US$61,473

GE Capital Freight               Trade Creditor         US$57,014

Rite Systems (Chino)             Trade Creditor         US$55,896

RBC Bearings                     Trade Creditor         US$53,525

Federal Mfg. Co.                 Trade Creditor         US$50,809

Rogers Foam Corp.                Trade Creditor         US$50,724

United Health Care Insurance     Insurance              US$44,750


SHENZHEN DEVELOPMENT: Moody's Upgrades Bank Fin'l Strength to  D-
-----------------------------------------------------------------
Moody's Investors Service upgraded Shenzhen Development Bank's
(SZDB) bank financial strength rating (BFSR) from E+ to D-.   At
the same time, the rating agency has upgraded the bank's long-term
foreign currency deposit rating from Ba3 to Ba2; its short-term
foreign currency deposit rating remains unaffected at Not-Prime.
The outlook for all ratings is stable.

This rating action concludes Moody's review of SZDB's ratings for
possible upgrade, as announced on April 2, 2008.

The upgrade comes in recognition of the bank's stronger capital
position following completion of the redemption of a second batch
of equity warrants in June 2008.  Following this exercise combined
with its strong net income during 1H08, the bank's capital levels
now place it closer to its D- rated global peers.

Additionally, the banks' progress in improving its earnings
profile is evident in its growing net interest margins and
profitability, and the rising contribution from fee income.  It
has also steadily reduced the stock of non-performing loans that
pre-date its current management team.

SZDB's stable ratings outlook incorporates Moody's view that its
capital levels should provide it with sufficient cushion to
support it through a more adverse operating environment over the
next 12-18 months.  The bank has already reported mild
deterioration in its asset quality -- as measured by a sharp
increase in its loans between 1 to 90 days past-due -- which
suggests that its asset quality may have peaked.

However, the bank should be able to sustain the expected moderate
decline in its asset quality without downward pressure on its
ratings.

As the bank is still in the process of upgrading its internal
processes and systems, Moody's does not expect that upward
pressure on SZDB's ratings will emerge over the near to medium
term.  Over the longer-term, key factors which could lead to an
upgrade include: 1) further strengthening of its capital levels,
such that its tier 1 capital ratio rises to above 8%; 2) prudent
expansion of its business both in terms of scope and geographical
diversification; and/or 3) further enhancement of its risk
management and internal controls as evidenced by rising risk-
adjusted returns.

Conversely, the rating agency believes that given the bank's still
modest, albeit improving, credit profile places it at greater risk
for a downgrade, especially if its asset quality should
deteriorate faster and more substantially than currently
anticipated.  Key factors that could place downward pressure on
its rating include: 1) significant deterioration in its asset
quality, such that its NPL ratio rises to above 8%; and/or 2)
overly aggressive growth or credit losses lead to its Tier 1
capital ratio falling to below 4%.

Shenzhen Development Bank is a nationally-licensed bank in China.
Its primary activities include deposits and lending, domestic and
international settlements, bills discounting, foreign exchange
dealing, trade financing and fixed-income securities trading.

These products and services are provided through a network of 260
outlets located across 18 cities in China.  As of end-June 2008,
SZDB had total assets of RMB442 billion (US$64 billion).



XINHUA FINANCE: 1H Net Profit Up 30% to US$142.4 Million
--------------------------------------------------------
Xinhua Finance Limited disclosed consolidated revenue for the
first half year ended June 30 2008, under International Financial
Reporting Standards, of US$142.4 million, a 30% increase over the
first half of 2007.

Revenue growth was mainly driven by the China businesses.

Proforma EBITDA, adjusted to exclude non-cash ESOP expenses and
one-time items, increased to US$28.5 million versus
US$20.3 million in the first half of 2007.  During the first half
of 2008, the Company incurred higher non-cash ESOP expenses and
higher corporate costs versus theprior year from its Distribution
subsidiary, XFMedia, due to its status as a public company.

There were also one time provisions for intangible asset
impairments totaling US$38.8 million relating to its subsidiaries
Mergent and Kinetic in advance of the divestitures completed in
July 2008.  Due mainly to the above mentioned charges and higher
taxation within its XFMedia subsidiary, the company generated a
net loss for the first half year of US$48 million.

On a proforma basis, after excluding non-cash and one time items,
proforma net income was US$2.9 million compared to proforma net
income of US$1.2 million for the first half of 2007.  Proforma
results are provided by the company to help investors better
understand underlying operating and financial trends.

During the half year, the company engaged a financial advisor to
conduct a review of its strategic positioning.  The purpose of the
review was to evaluate opportunities to unlock shareholder value
and focus resources on the company's core competency of providing
information on China's financial markets.  Accordingly, the
Company determined that its Mergent and Kinetic subsidiaries no
longer fit within the company's overall strategic focus on the
China markets and sold the two subsidiaries in July, receiving net
cash proceeds of approximately US$84 million.

Subsequent to the sales of Mergent and Kinetic, Xinhua Finance
announced a tender offer on August 5, 2008 to apply US$49 million
of the proceeds from the sale of Mergent and Kinetic to redeem
bonds at par with final payments to be made on September 9, 2008.

"With the cash generated from the sale of Mergent and Kinetic, we
can now buy back almost half of our outstanding bond issue,
reducing our debt and significantly lowering our interest expense
burden", said CFO David Wang.  "We continue to focus on
streamlining our operations and implementing cost cutting measures
to improve profitability and efficiency", added Mr. Wang.

XFL CEO Jae Lie, stated, "We are pleased with the initial steps we
have taken following our strategic review of the business. We
believe that the sale of Mergent and Kinetic and the repayment of
debt will position us for improved financial flexibility and
enable management to concentrate on the China market, our core
competency".

                  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.



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

CHINA GLASS: S&P Affirms Corporate Credit Rating at B+/Stable
-------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'B+' long-term
corporate credit rating on China Glass Holdings Ltd.  The outlook
is stable.  At the same time, S&P affirmed its 'B+' issue rating
on the company's senior unsecured notes.  Both ratings were
removed from CreditWatch, where they had been placed with
developing implications on May 16, 2008 following China Glass'
announcement that a wholly owned subsidiary planned to set up a
new production plant at an estimated cost of about Chinese
renminbi 800 million.

"The ratings are affirmed as the announced project is in line
with China Glass' stated strategy in migrating to higher-margin,
high value-added low-emission glass products.  The project by
Jiangsu Suhuada Co. Ltd. in Dongtai, Jiangsu province, should
improve China Glass' product diversification, competitiveness,
and profitability," said S&P's credit analyst Lawrence Lu.  "The
affirmation also reflects the low likelihood that the project
will be fully equity funded, given the currently weak equity
market conditions.  We expect the project will involve debt
funding and believe leverage is likely to increase in the next
year.  This could add to the pressure on the company's cash flow
protection metrics, particularly if synergies and revenue growth
expectations are not met."

China Glass' credit metrics improved in fiscal 2007, reflecting
the overall recovery of glass prices in China, and the company's
increasing capacity and economies of scale.  However, its
financial matrix could be impaired by production project delays,
cost overruns, and a surge in fuel prices.

The ratings on Hong Kong-listed China Glass reflect the cyclical
and volatile nature of the global flat-glass industry, a
fragmented and competitive domestic environment, as well as the
company's aggressive expansion strategy and product concentration.
These factors are tempered by construction demand in China; the
company's diverse customer base; experienced management team; and
planning, technology, and financial management support from
strategic and financial investors, including Hony International
Ltd., Pilkington PLC, and International Finance Corp. (foreign-
currency rating:
AAA/Stable/A-1+).


CWS HONG KONG: Creditors' Proofs of Debt Due on September 22
------------------------------------------------------------
The creditors of CWS Hong Kong Limited requires its creditors to
file their proofs of debt by September 22, 2008, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on August 8, 2008.

The company's liquidator is:

          Robin Harris
          The Center, 31st Floor
          99 Queen's Road Central
          Hong Kong


ELICON FOOTWEAR: Members to Hold General Meeting on September 30
----------------------------------------------------------------
The members of Elicon Footwear (Hong Kong) Limited will meet on
September 30, 2008, at 10:00 a.m. to hear the liquidator's report
on the company's wind-up proceedings and property disposal.

The meeting will be held at the 38th Floor of Tower One, Lippo
Centre, in 89 Queensway, Hong Kong.


GUANGDONG (H.K): Annual Meetings Slated for September 11
--------------------------------------------------------
The members and creditors of Guangdong (H.K.) Tours Company
Limited will hold their annual meetings on September 11, 2008, at
10:30 a.m. And 11:30 a.m., respectively, at Room 203 of Duke of
Windsor Social Service Building, 15 Hennessy Road in Wanchai, Hong
Kong.

At the meeting, Kennic Lai Hang Lui and Ruby Mun Yee Leung, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


HOME GOURMET: Placed Under Voluntary Liquidation
------------------------------------------------
At an extraordinary general meeting held on August 14, 2008, the
members of Home Gourmet International Limited agreed to
voluntarily wind up the company's operations.

The company's liquidator is:

          Philip Brendan Gilligan
          Alexandra House, 7th Floor
          18 Chater Road
          Central, Hong Kong


MEGA SHEEN: Creditors' Proofs of Debt Due on October 10
-------------------------------------------------------
Mega Sheen Holdings Limited requires its creditors to file their
proofs of debt by October 10, 2008, to be included in the
company's dividend distribution.

The company started to commenced liquidation proceedings on
August 22, 2008.

The company's liquidator is:

          Mo Pui Lam
          Champion Buiding, Flat E, 15th Floor
          287-297 Des Voeux Road
          Central, Hong Kong


MICKEY WEATHERWEAR: Members' Final Meeting Set for September 22
---------------------------------------------------------------
A final meeting will be held for the members of Mickey Weatherwear
Limited on September 22, 2008, at 10:00 a.m., at Room 804 of
Cheong K. Building, 84-86 Des Voeux Road in Central, Hong Kong.

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


ON MEI: To Hold General Meeting on September 22
-----------------------------------------------
The members of On Mei Construction Limited will meet on Sept. 22,
2008, at 10:00 a.m., at Room 810 of Argyle Centre, 688 Nathan Road
in Kowloon, Hong Kong.

At the meeting, Cheng Alexander Chiu Wang, the company's
liquidator, will give a report on the company's wind-up
proceedings and property disposal.


POLYCROWN (SICHUAN): Placed Under Voluntary Liquidation
-------------------------------------------------------
At an extraordinary general meeting held on August 4, 2008, the
members of Polycrown (Sichuan) Environmental Protection Limited
resolved to voluntarily liquidate the company's business.

The company's liquidators are:

          Fok Hei Yu
          Desmond Chung Seng Chiong
          The Hong Kong Club Building, 14th Floor
          3A Chater Road
          Central, Hong Kong


STAR MARINE: Members to Hold General Meeting on September 26
------------------------------------------------------------
The members of Star Marine Limited will meet on September 26,
2008, at 10:00 a.m., to hear the liquidator's report on the
company's wind-up proceedings and property disposal.

The meeting will be held at the 9th Floor of Tung Sun Commercial
Centre, 200 Lockhart Road in Wanchai, Hong Kong.



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

AIR INDIA: To Carry Less Necessities to Save on Fuel Costs
----------------------------------------------------------
Air India will shed weight on its flights by carrying less food,
newspapers and a half-filled water-tank on board in a bid to cut
its over Rs 8,000 crore fuel bill by at least five per cent or Rs
400 crore, Business Standard reports citing a senior official.
Fuel costs account for almost 50 percent of the carrier's total
operating cost.

In an earlier report, Business Standard said Air India has sought
Rs 2,000 crore (US$460 million) of funds from the government after
record-high jet fuel prices pushed it into a loss last year.

The report said as the company is estimated to have had a loss of
about Rs 2,000 crore in the year ended March 31, the National
Aviation Co of India, which operates Air India, wants to raise
funds by selling shares to the government or from loans.

Raghu Menon, CMD of the state-owned carrier, told The Times of
India that the airline is looking at a mix of equity infusion and
soft loans.  "We want to bridge the gap between the paid-up
capital of Rs 145 crore and authorised capital of Rs 1,500 crore
along with some soft loans.  However, this will not be a bailout
package as its being described," he said.

The Financial Express relates that Air India reportedly expects to
save at least Rs 1,000 crore in the year to end-March 2009 by
cutting routes, outsourcing jobs and eliminating perks to senior
executives.

Meanwhile, despite mounting losses, the Business Standard said the
company has 111 planes on order.

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

Air India and Indian Airlines posted a combined net loss of Rs 688
crore for the financial year ended March 2007, The Financial
Express said.


ESS ESS LEASING: RBI Cancels Certificate of Registration
--------------------------------------------------------
The Reserve Bank of India has canceled the certificate of
registration granted to M/s Ess Ess Leasing Pvt. Ltd. for carrying
on the business of a non-banking financial institution.

Following cancellation of the registration certificate, M/s Ess
Ess Leasing Pvt. Ltd., cannot transact the business of a non-
banking financial institution.

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

M/s Ess Ess Leasing Pvt. Ltd. has its registered office at Kapila
Building, Near BMC Chowk, in Jalandhar City.


GENERAL MOTORS: To Invest US$200 Mil. in India Engine Plant
-----------------------------------------------------------
General Motors Corp. will invest US$200 million in India for an
engine plant with an annual capacity of 1.6 lakh engines, The
Times of India reports.  The facility is up for completion in the
first quarter of 2010.

Karl Slym, president and MD of GM India, told The Times the plant
would come up at the company's upcoming car plant at Talegaon in
Maharashtra, where it has already committed US$300 million
investments.

According to the report, the automaker currently imports engines
from South Korea and Australia for its Indian operations, and the
new factory will help it meet demand in India and possibly
overseas.

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.

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.

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.

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.

                          *     *     *

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 reported 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.


TATA MOTORS: Nano Project in Singur Risks Delay Due to Protests
---------------------------------------------------------------
Work at the Tata Motors' small car project site at Singur
continued to be affected for the fifth day on Aug. 28, with the
attendance of contractual workers there falling below the prior
day's level of around 15 per cent, The Hindu Business Line
reports.

On a normal day, the report says, around 3,500-4,000 workers are
engaged at work in the mother plant and at the vendor park.

According to the report, Opposition party Trinamool Congress has
put up a blockade on National Highway No. 2 adjacent to the plant
site in protest against acquisition of land from “unwilling
farmers” for the Tata small car project, demanding return of 400
acres of land.

"I will not relent till the demand is met by the government by
announcing in principle that the 400 acres will be returned to
farmers.  Only then will the Tata Motors plant be allowed to come
up.  Otherwise our movement will be intensified,"
party chief Mamata Banerjee was cited by The Economic Times as
saying.

Information gathered by Hindu Business Line from Singur said
supporters of the Trinamool Congress – and those opposed to the
project – were intimidating workers engaged in the mother plant
and in the vendor park while some were being physically prevented
from entering their designated work areas.

Asked by Hindu Business Line if the disruption in work would force
Tata Motors to push back the deadline fixed for the rollout of the
Nano, an official spokesperson of Tata Motors said from Mumbai:
“We have not issued any official statement to this effect”.

Tata Motors' Nano, dubbed the world's smallest car, was planned to
be rolled out
in October.

                       About Tata Motors

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

Tata Motors has operations in Russia and the United Kingdom.

                          *     *     *

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

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

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


TATA STEEL: First Quarter Net Profit Up 60.5% to US$892 Mil.
------------------------------------------------------------
Tata Steel Limited's consolidated first quarterly net profit rose
over 60 percent, lifted by earnings from its recently acquired
British unit Corus, The Economic Times reports.

The report says for the three months to June consolidated net
profit rose 60.5 percent to Rs. 39 billion (US$892 million) from
Rs. 24.31 billion a year earlier while total income rose more than
39 percent to Rs. 435.6 billion for the quarter.

"The company's performance was the best ever (when we include
Corus)," Tata group chairman Ratan Tata was cited by The Times as
saying.

Tata Steel acquired the Anglo-Dutch steelmaker in October 2006.

According to the report, the figures were calculated on a proforma
basis as the profits of Corus were not included in the company's
consolidated quarterly earnings last year.  Last month, the report
says, Tata Steel's Indian operations announced net profit to June
climbed 21.9 percent to Rs. 14.88 billion.

                     About Tata Steel Limited

Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/--  is a diversified steel producer.
It has operations in 24 countries and commercial presence in
over 50 countries.  Its operations predominantly relate to
manufacture of steel and ferro alloys and minerals business.
Other business segments comprises of tubes and bearings.  Tata
Metaliks Limited, which is engaged in the business of
manufacturing and selling pig iron, became a subsidiary of the
Company with effect from February 1, 2008.

                          *     *     *

Tata Steel Limited continues to carry a "BB" Standard & Poor's
rating on its of US$750 million and US$500 million senior
unsecured bank loans.

The company also carries a "Ba1" corporate family rating from
Moody's.



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

AOZORA BANK: Shares Fall on Net Loss Forecast
---------------------------------------------
Aozora Bank Limited fell to a record low in Tokyo trading after a
report said it may post a loss for the fiscal first half ending
September 30, Finbarr Flynn of Bloomberg News reports.

The bank's shares, the report relates, dropped 4.1% to JPY210, the
lowest since the company listed on the Tokyo Stock Exchange in
November 2006.  The 84-stock Topix index of Japanese banks
advanced 2.7 percent.

According to the report, citing Nikkei English News, Aozora Bank,
which has forecast a JPY15.5 billion (US$142 million) profit for
the six-month period, may post a loss on rising bad-loan costs.

Japan's real-estate industry accounts for 27% of Aozora's
outstanding loans.

"Aozora is among the most vulnerable banks in this real-estate
downturn.  It has high exposure to the real-estate sector," the
report cited Kristine Li, a Tokyo-based analyst at KBC Securities
in Tokyo as saying.

Chief Executive Officer Federico Sacasa reaffirmed the lender's
full-year profit forecast of JPY26.2 billion for the year ending
March 31, the report says.

Bloomberg News recounts that the bank cut its full-year forecast
on Aug. 8 from JPY44 billion and revised its profit for the first
quarter ended June 30 to JPY2.88 billion from JPY9.33 billion to
reflect a US$62 million loss on an investment in GMAC LLC.   The
revised first-quarter figure represents a 92% profit decline from
a year earlier, the report notes.

Aozora plans to take a writedown of JPY17.8 billion this year on
an investment in GMAC after the partly owned finance unit of
General Motors Corp. recorded a US$2.5 billion loss in the second
quarter, the report adds.

                        About Aozora Bank

Aozora Bank (formerly Nippon Credit Bank) --
http://www.aozorabank.co.jp/-- was the second Japanese credit
bank nationalized in the wake of Asia's financial crisis after
the Long-Term Credit Bank of Japan (now Shinsei Bank).  Bad
loans and Japan's "Big Bang" financial deregulation added to the
bank's troubles.  Traditionally a lender to small and midsized
businesses, before the takeover it had started closing overseas
branches and expanding its financial services.  Aozora has a
network of some 20 branches in Japan and four offices overseas.
US investment fund Cerberus now owns 62% of the company after
buying Softbank's stake (49%) in spring of 2003.  Orix Corp and
Millea Holdings each own 15%, and the Japanese government also
owns a stake.

                         *     *     *

The Troubled Company Reporter-Asia Pacific reported on April 2,
2008, that Fitch Ratings affirmed Japan's Aozora Bank's Long-
term foreign and local currency Issuer Default Ratings at 'A-',
Short-term foreign and local currency IDRs at 'F1', Individual
'C', Support '3', Support Rating Floor 'BB+' and senior
unsecured notes 'A-'.  The Outlook remains Stable.


CABS LTD: S&P Removes B Rating on Class A Notes From Neg. Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its ratings on
CABS Ltd. Master Trust Series 2005-1's class A floating rate
notes and class B floating rate notes.  At the same time, S&P
removed its 'B' rating on the class A notes from CreditWatch with
negative implications.

The ratings on the class A and class B notes were initially
placed on CreditWatch with negative implications on June 15,
2007.  S&P subsequently lowered the ratings and kept them on
CreditWatch with negative implications.  On July 28, 2008, the
rating agency again lowered the ratings on the class A and class
B notes.  At the same time, it maintained the rating on the class
A notes on CreditWatch with negative implications and removed the
rating on the class B notes from CreditWatch with negative
implications.  These rating actions in July were due to
uncertainty over the sponsor's policy to enhance the
transaction's performance.  In addition, overcollateralization
for the class B notes had fallen to zero.

On Sept. 14, 2007, originator Credia Co. Ltd. filed for civil
rehabilitation proceedings, which were applied on Sept. 21, 2007.
Credia Co. Ltd. selected Kazaka Finance as a sponsor on April 25,
2008, and submitted a rehabilitation plan on May 21, 2008 (amended
on June 27, 2008).  At a meeting on Aug. 20, 2008, creditors
adopted the rehabilitation plan, which was approved by
the Court on the same day.  On July 28, 2008, S&P kept the rating
on CABS Ltd. Master Trust Series 2005-1's class A floating rate
notes on CreditWatch with negative implications because it was
focused on the meeting of the creditors to confirm the adoption of
the rehabilitation plan, which it considered to be important for
the recovery and stability in the underlying asset pool's future
performance.

On Aug. 20, 2008, creditors adopted the rehabilitation plan,
while the Court gave the plan its approval, which is expected to
be finalized in late September.  S&P considers the Court's
approval of the rehabilitation plan to have reduced the
likelihood of an event negatively affecting the transaction's
performance.  Accordingly, it has removed its rating on the class
A notes from CreditWatch with negative implications and affirmed
its ratings on the class A and class B notes.  Yet, S&P will
continue to scrutinize the transaction's performance, the new
company's management policy, and its servicing framework.

The notes are ultimately secured by a pool of unsecured consumer
loan receivables originated by Credia Co. Ltd.

Rating Affirmed; Off CreditWatch:

CABS Ltd. Master Trust Series 2005-1 Floating rate notes due 2014

Class   To   From          Issue Amount
----------------------------------------
A       B    B/Watch Neg  JPY8.7 billion

Rating Affirmed:

Class   Rating   Issue Amount
------------------------------
B       CCC-    JPY1.3 billion


IKON OFFICE: Ricoh Buyout Cues S&P to Put 'BB-' on Watch Pos
------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings, including
the 'BB-' corporate credit rating, on IKON Office Solutions Inc.
on CreditWatch with positive implications.

"The CreditWatch placement follows the announcement that IKON has
agreed to be acquired by 'A+' rated Ricoh Co. Ltd. for
approximately US$1.6 billion in cash," said Standard & Poor's
credit analyst Martha Toll-Reed.

IKON is the leading independent provider of document management
systems and services, with fiscal 2007 revenues of US$4.2 billion.
Ricoh, headquartered in Japan, is one of the world's leading
manufacturers of high-quality multifunction products, printers,
fax machines, and related supplies.

The transaction, subject to IKON shareholder and certain
regulatory approvals, is expected to close in fourth-quarter 2008.
IKON will become a subsidiary of Ricoh and maintain its
headquarters in Malvern, Penn. If the rated debt on IKON remains
outstanding following the close of the transaction, the ratings
will likely be investment-grade.


IKON OFFICE: Ricoh Buyout Cues S&P to Put 'BB-' on Watch Pos
------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings, including
the 'BB-' corporate credit rating, on IKON Office Solutions Inc.
on CreditWatch with positive implications.

"The CreditWatch placement follows the announcement that IKON has
agreed to be acquired by 'A+' rated Ricoh Co. Ltd. for
approximately US$1.6 billion in cash," said Standard & Poor's
credit
analyst Martha Toll-Reed.

IKON is the leading independent provider of document management
systems and services, with fiscal 2007 revenues of US$4.2 billion.
Ricoh, headquartered in Japan, is one of the world's leading
manufacturers of high-quality multifunction products, printers,
fax machines, and related supplies.

The transaction, subject to IKON shareholder and certain
regulatory approvals, is expected to close in fourth-quarter 2008.
IKON will become a subsidiary of Ricoh and maintain its
headquarters in Malvern, Penn. If the rated debt on IKON remains
outstanding following the close of the transaction, the ratings
will likely be investment-grade.


LEHMAN BROTHERS: To Slash Up to 6% of Workforce
-----------------------------------------------
The Wall Street Journal's Matthias Rieker, citing a report by The
New York Times, says Lehman Brothers Holdings, Inc., is planning
to eliminate 1,000 to 1,500 employees, as much as 6% of the
company.  It remains unclear what parts of the company would be
affected, WSJ says.

The Journal notes that Lehman this year has had at least four
rounds of layoffs and had 26,189 employees at the end of its
fiscal second quarter, ended May 31, down 2,134 from the year-
earlier period.

The Journal further notes that Lehman has been struggling to keep
up with the losses it had to take in marking to market its
mortgage assets, and is in talks centered on selling parts of its
businesses and even a stake in itself to raise capital.

The Journal's Diya Gullapalli says Lehman is looking to sell its
investment-management division, Neuberger Berman.  The report
notes that private-equity firms including Kohlberg Kravis Roberts
& Co., Bain Capital LLC and TPG are considered potential buyers
for at least parts of Lehman's investment-management division,
where Neuberger is the crown jewel.  The report says another
possibility for Lehman is selling a piece of its US$40 billion
commercial-mortgage portfolio.

MarketWatch's Sue Chang says the report of the additional layoffs
comes in the wake of reports that Lehman has failed to secure
investment from Asian entities, including Korea Development Bank
of South Korea.

Mr. Rieker relates that Lehman swung to a US$2.8 billion loss in
the second quarter, from a US$1.3 billion profit a year earlier,
because write-downs of mortgage-related assets and exposure to
hedge
funds.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- an
innovator in global finance, serves the financial needs of
corporations, governments and municipalities, institutional
clients, and high net worth individuals worldwide.  Founded in
1850, Lehman Brothers maintains leadership positions in equity and
fixed income sales, trading and research, investment banking,
private investment management, asset management and private
equity.  The firm is headquartered in New York, with regional
headquarters in London and Tokyo, and operates in a network of
offices around the world.


MAZDA MOTOR: Cuts Sales Forecast by Half at One China Venture
-------------------------------------------------------------
Mazda Motor Corp. halved its sales forecast at one of its two
Chinese joint ventures in one of the first signs that a demand
slowdown in Japan's car market is affecting automakers' plans,
Chang-Ran Kim of Reuters reports.

The company, the report relates, now expects sales at Changan
Mazda, its venture with Chongqing Changan Automobile, to come to
less than 60,000 cars this business year from a previous forecast
of more than 110,000 units.

According to the report, Mazda said a manufacturing venture that
builds the Mazda2/Demio and Mazda3/Axela cars that Changan Mazda
sells was cutting back production by 5,000 cars over two months
this summer to work down bloated inventory.

A Mazda spokeswoman told the news agency that the company was yet
not officially standing down on its plan to sell 180,000 cars in
the business year to March 2009, until it can gauge how much FAW
Mazda Motor Sales Corp can offset the shortfall.

Car sales growth in China slowed to 17% in the first half of this
year after a rise of 20% or more annually since 2005.

Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor
Corporation -- http://www.mazda.co.jp/-- together with its
subsidiaries and associates, is primarily involved in the
manufacture and distribution of automobiles.  The company
manufactures passenger cars and commercial vehicles.  Mazda
Motor distributes its products in both domestic and overseas
markets.  The company has 58 subsidiaries.  It has overseas
operations in the United States, Canada, Mexico, Germany,
Belgium, France, the United Kingdom, Switzerland, Portugal,
Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand,
Indonesia and China.  The Company has a global network.

                          *     *     *

Mazda Motor continues to carry Standard & Poor's "BB" long-term
corporate credit and long-term senior unsecured debt ratings.


* JAPAN: Moody's Confirms Negative Outlook in Airline Industry
--------------------------------------------------------------
Moody's Investors Service says in a new report that the credit
outlook for the Japanese airline industry is negative.

"The recent, drastic hike in the cost of aircraft fuel is casting
a dark shadow over the future of the airline industry," says
Kazusada Hirose, a Moody's VP / Senior Analyst and author of the
report.

"Thanks to conservative price-hedging policies, the higher cost of
aircraft fuel has been fixed and manageable for the airlines rated
by Moody's", says Mr. Hirose.  "However, any further hikes in fuel
prices will gradually raise hedge prices and the negative impact
on profitability will be more significant."

Among Japan's airlines, those other than the two rated by Moody's
are primarily start-up carriers with a minimal market presence.
The duopolistic market structure has given the two major airlines
the edge on price initiatives.  They have implemented
countermeasures to address the hikes in fuel costs, such as
raising fuel surcharges and restructuring route network.  This has
led to their stable profits.

The airlines will continue to take steps to offset the impact of
rising fuel prices on profitability.  However, any further
increases in fuel surcharges may significantly damage passenger
demand.

"The negative effect of the ongoing price hikes in the cost of
aircraft fuel has been greater than was projected at the beginning
of FYE 3/2009", says Mr. Hirose.  Both companies have been forced
to carry out additional cost-cutting.

Moody's rates the two major Japanese airline companies: All Nippon
Airways Co., Ltd. (Baa3, stable) and Japan Airlines International
Co., Ltd. (Ba3, positive).



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

HYNIX SEMI: Lowers Share Conversion Price for Planned Bond by 14%
-----------------------------------------------------------------
Hynix Semiconductor Inc had lowered the share conversion price of
its planned domestic bond by 14%, Reuters reports.

Hynix, the report relates, is issuing KRW500 billion
(US$462.3 million) in convertible bonds on Sept. 5.

According to the report, the price for which the bonds would be
converted into common stocks was set at KRW24,960 per share.  It
had previously set the price at KRW29,120.

Hynix Semiconductor Inc. (HSI) of Icheon, Korea --
http://www.hynix.com/-- is a memory semiconductor supplier
offering Dynamic Random Access Memory chips ("DRAMs") and Flash
memory chips to a wide range of established international
customers.  The company's shares are traded on the Korea Stock
Exchange, and the Global Depository shares are listed on the
Luxemburg Stock Exchange.

                        *     *     *

As reported by the Troubled Company Reporter - Asia pacific on
August 6, 2008, Moody's Investors Service changed to negative from
stable the outlook for both Hynix Semiconductor Inc's Ba2
corporate family rating and senior unsecured bond rating.


HYNIX: Completes Construction of Fabrication Plant in Cheongju
--------------------------------------------------------------
Hynix Semiconductor Inc. completed the construction of the 3rd
Factory of Cheongju located in Cheongju, Korea.

The 3rd Factory of Cheongju has 300mm wafer fabrication facilities
in its two-story structure.  With construction breaking ground in
April 2007, the Factory is built on the total site of 108,697
square meters including 294,637 square meters building and area.

It is located close to where the company currently operates
manufacturing facilities and in this regard, the Factory will have
a great advantage to utilize workforce of other plants in Cheongju
and infrastructure.

The M11 fabrication plantof the 3rd Factory is scheduled to begin
production of approximately 40,000 wafers per month from upcoming
September and it will exclusively fabricate the most advanced
high-density NAND Flash products including 16Gb, 32Gb Flash memory
using 40nm level process technology.  The capacity of the FAB will
be flexibly increased in accordance with the market situation. By
completing the 3rd Factory, roughly up to the capacity of 200,000
wafers per month will be added to the total of the Company's 300mm
capacity.

"Hynix plans to develop Cheongju site as the number one NAND Flash
manufacturing facilities in the world starting from this
completion of the 3rd Factory construction. Though recovery of the
semiconductor industry has been in delay, we will continuously
secure competitiveness and growth engine for sustainable growth
with our leading-edge technologies and active strategic
alliances." said Mr. Jong-kap Kim, Chairman and CEO of Hynix.


Hynix Semiconductor Inc. (HSI) of Icheon, Korea --
http://www.hynix.com/-- is a memory semiconductor supplier
offering Dynamic Random Access Memory chips ("DRAMs") and Flash
memory chips to a wide range of established international
customers.  The company's shares are traded on the Korea Stock
Exchange, and the Global Depository shares are listed on the
Luxemburg Stock Exchange.

                        *     *     *

As reported by the Troubled Company Reporter - Asia pacific on
August 6, 2008, Moody's Investors Service changed to negative from
stable the outlook for both Hynix Semiconductor Inc's Ba2
corporate family rating and senior unsecured bond rating.



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

BSA INTERNATIONAL: Names Kheh Wee as Chairman of Audit Committee
----------------------------------------------------------------
On August 28, 2008, Chu Kheh Wee was appointed as Chairman of BSA
International Berhad's Audit Committee.  Mr. Chu replaced Tan Yew
Kim who retired from the same company post on June 27, 2008.

Mr. Chu is also a non-executive director of the company.

With this changes, the company's Audit Committee now composes of:

   * Chu Kheh Wee (Independent Director);
   * Yeong Buang Leng @ Geoh Buang Leng (Independent Director);
     and
   * Tan Sri Dato' Dr. Soh Thiam Hong (Executive Director).

BSA International Berhad is a Malaysia-based investment holding
company.  The company operates in two business segments:
manufacturing, which is engaged in manufacturing of alloy wheels
and related accessories, and trading, which is engaged in
trading of alloy wheels, tires and related accessories.  Other
business segments include investment holding, provision of
services and promotion of motor sport events.  The company's
subsidiaries include BSA International (Labuan) Plc., CAM
International Limited, BS Automotive (M) Sdn. Bhd., BSA
Motorsports Sdn. Bhd., CAM Automotive Inc., PT CAM Automotive
and BSA Racing Team Sdn. Bhd.

                         *     *     *

The Troubled Company Reporter-Asia Pacific reported on June 12,
2008, that the company was classified as an affected listed
issuer under Practice Note 17 due to its failure to pay the
principal plus interest amount owed to certain facilities,
including:

   -- default in payment of interest in respect of
      MYR150 million Murabahah Commercial Papers/Medium-Term
      Notes Programme (2004/2011);

   -- default in payment of interest in respect of MYR45 million
      loan under Kerisma Berhad's Collateralised Loan
      Obligations;

   -- BSA Manufacturing Sdn. Bhd.'s default in payment of
      principal plus interest to HSBC Bank Malaysia Berhad
      amounting to MYR5,168,515.25; and

   -- CAM Component Alloy Manufacturing Sdn. Bhd.'s default in
      payment of principal plus interest to HSBC Bank amounting
      to MYR5,185,597.35.


KIMBLE CORPORATION: Unit Subject to Wind-Up Petition by DNE Total
-----------------------------------------------------------------
Kimble Furniture Corporation (M) Sdn Bhd (KFCM), a wholly owned
subsidiary of Kimble Corporation Berhad, has received a winding-up
petition from DNE Total Logistics (Melaka) Sdn Bhd.

DNE Total is claiming for an outstanding amount of MYR1,084,206.64
without interest.  KFCM was indebted for logistic services
rendered.  The filing of the winding-up petition arose from the
failure of KFCM to settle the outstanding amount to the
Petitioner.  The amount of indebtedness has been fully provided
for in the accounts.  The expected losses arising from the
winding-up petition would include legal cost and other charges
incidental to the winding-up notice.  The application for petition
to wind up KFCM, if successful, would have material and adverse
impact on the financial and operational status of KFCM and Kimble
Corporation Berhad's Group.

The wind-up petition is fixed for hearing on November 12, 2008.
The company will seek legal advice and enter with appearance
within the prescribed date.

Kimble Corporation Berhad is a Malaysian-based investment
holding company.  The company and its subsidiaries are primarily
engaged in the manufacturing and marketing of wooden furniture.
The company's online product ranges from bedroom, dining,
living, occasional, youth and kitchen furniture.  The company
exports its products to United States, Canada, Chile, Panama,
United Kingdom, Sweden, Norway, Iceland, Denmark, Belgium,
Ireland, Germany, France, Spain, Russia, United Arab Emirates,
Australia and New Zealand.  Its major subsidiaries include
Kimble Furniture Corporation (M) Sdn Bhd, which is engaged in
the manufacture and marketing of wooden furniture, and Kimble
Marketing Sdn Bhd and Ta Wu Wood Enterprise Sdn Bhd, which are
engaged in the trading of wooden furniture.  In August 2007,
Kimble Corporation Berhad acquired Kimble Corporation (HK)
Limited.

                         *     *     *

As reported by the Troubled Company Reporter – Asia Pacific on
Aug. 21, 2008, the company is classified as an affected listed
issuer under Practice Note No. 1/2001 of the Listing
Requirements of Bursa Malaysia Securities Berhad.  The group's
total default reached MYR149,186,852 as of August 15, 2008, in
respect of various banking facilities from a number of financial
institutions.

The group is unable to service and repay its debts to the
lenders as it is experiencing operational difficulties and cash
flow deficiency due to its operational losses.


OCI BERHAD: Incurs MYR1.47 Mil. Net Loss in Qtr. Ended June 30
--------------------------------------------------------------
OCI Berhad disclosed with the Kuala Lumpur Stock Exchange its
financial results for the fourth quarter ended June 30, 2008.  For
the fourth quarter, the company posted MYR1.47 million net loss on
MYR1.79 million of revenues as compared with MYR42.35 million net
loss recorded in the same quarter of 2007.

As of June 30, 2008, the company's balance sheet showed
MYR27.27 million of total assets, MYR65.67 million of total
liabilities, resulting in a shareholders' equity deficit of
MYR38.41 million.

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

                          *     *     *

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


TIME ENGINEERING: Posts MYR90,000 Net Loss in Qtr. Ended June 30
----------------------------------------------------------------
In a disclosure with the Kuala Lumpur Stock Exchange, Time
Engineering Berhad disclosed that the company posted MYR90,000 net
loss in the second quarter ended June 30, 2008, as compared to the
recorded MYR5.09 million net loss in the same quarter of 2007.

The group posted MYR13.57 million net profit in the three months
ended June 30, 2008, as compared to MYR13.67 net loss incurred in
the same quarter of the preceding year.

For the current quarter, the Group recorded lower revenue of
MYR37.0 million compared to MYR203.8 million for the preceding
year's corresponding quarter.  Revenue in the first six months of
2008 was relatively lower as the final progress billing for the
roll out of the Teaching and Learning of Science and Mathematics
in English Programme(PPSMI)  project Phase V was completed in
first quarter of 2008.

Maintenance of the PPSMI project Phase V will be completed in
2010.  The Group registered a profit before taxation of
MYR0.5 million in the current quarter as compared to a profit
before taxation of MYR14.4 million (excluding the share of results
of associate) in the preceding year's corresponding quarter.  In
respect of operations, the Group recorded a lower EBITDA of
MYR10.9 million in the current quarter compared to MYR22.8 million
in the second quarter of 2007 due to the completion of the PPSMI
project.  However, the financing cost for the current quarter was
lower by 42% or MYR5.5million as the company pared down its
borrowings.  In addition, the Group also recorded a loss on
disposal of investments of MYR1.6 million in the current quarter,
compared to a gain of MYR5.5 million in the second quarter 2007.

As of June 30, 2008, the company's balance sheet showed
MYR670.68 million of total assets, MYR486.98 million of total
liabilities, resulting in a shareholders' equity of
MYR183.71 million.

TIME Engineering Berhad is an investment holding company engaged
in information technology, telecommunications and engineering
services.  The company operates through three segments.  The
information communication technology segment is engaged in the
supply, delivery, installation, testing, commissioning and
maintenance of teaching aids equipment; development, management
and provision of business to business e-commerce, and
computerized transaction facilitation services; provision of
media and electronic communications services; provisioning of
managed and Internet-related services, and total systems
integrators and information technology consultancy.  The
telecommunication segment is engaged in the provision of
telecommunications, Internet and multimedia facilities, and
services of an associate.  The others segment is engaged in the
supply, installation and maintenance of engineering and other
equipment for expressways, telecommunications network and other
general engineering works.

                         *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
May 9, 2008, Time Engineering Berhad was considered as an
affected listed issuer of the Practice Note No. 17/2005 of Bursa
Malaysia Securities Berhad as the auditors have expressed a
modified opinion on the company's going concern status and on
its shareholders' equity, which is less than 50% of its total
issued and paid-up share capital.



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

AIR NEW ZEALAND: Executives' Salaries Dropped 18%
-------------------------------------------------
Salaries of Air New Zealand Ltd's executives fell by around
18 percent in the past year, the New Zealand Herald reports,
citing chief executive Rob Fyfe.

Mr. Fyfe said he had taken a cut of more than 20 per cent in the
12 months to June.

According to the accounts cited by the report, figures show the
highest paid, presumably Mr. Fyfe, saw total remuneration earned
fall from between NZ$2.94 million and NZ$2.95 million to between
NZ$2.25 million and NZ$2.26 million.

The Herald relates the pay drop, plus a freeze among the top
executive team announced in July, does send a strong signal to the
market and 11,000 employees.

Around 1500 other salaried staff will get increases only if they
are met by productivity gains, the report says.

                      About Air New Zealand

Based in Auckland, New Zealand, Air New Zealand Ltd is the
country's flag air carrier, with domestic and international
passenger and freight operations, and an aviation engineering
business.  Air New Zealand flies to the United States, United
Kingdom, Canada, Europe and other Asian cities.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
June 20, 2008, Standard & Poor's Ratings Services removed its
unsolicited 'BB/Stable' credit rating and outlook on Air New
Zealand Ltd.

According to S&P, the airline's strategic and commercial
response to the very high fuel prices is an important credit
consideration in the current volatile environment.  Without the
full interaction of the company in the rating process, S&P said
it feels it is no longer able to provide a credit opinion.

On Aug. 5, 2008, Moody's Investor's Service affirmed Air New
Zealand Limited's Ba1 Senior Unsecured Issuer rating.  At the
same time, it changed the outlook on the rating to stable from
positive.


CHATHAMS DIRECT: Commences Liquidation Proceedings
--------------------------------------------------
The High Court at Christchurch held a hearing on Aug. 18, 2008, to
consider an application putting Chathams Direct Limited into
liquidation.

The application was filed on June 17, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          1st Floor Reception, 224 Cashel Street (PO Box 1782)
          Christchurch 8140
          Telephone: (03) 968 0807
          Facsimile: (03) 977 9853

Julie Newton is the plaintiff's solicitor.


COSTABELLA LIMITED: Commences Liquidation Proceedings
-----------------------------------------------------
The High Court at Greymouth convened a hearing on Aug. 19, 2008,
to consider an application putting Costabella Limited into
liquidation.

The application was filed on June 23, 2008, by Westland District
Council.

The plaintiff's address for service is at:

          Whitlock & Co.
          Level 2, Baycorp House
          15 Hopetoun Street
         Auckland

Malcolm David Whitlock is the plaintiff's solicitor.


GROUND CONTROL: Shareholders Appointed Liquidator
-------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
shareholders of Ground Control 2007 Limited appointed  Murray G.
Allott, chartered accountant of Christchurch, as liquidator on
July 30, 2008.

Creditors and shareholders may direct their inquiries to:

          Murray G. Allott
          111 Bealey Avenue
          Christchurch 8013
          Telephone: (03) 365 1028
          Facsimile: (03) 365 6400
          Email: murray@profitco.co.nz


INTERCRYLL DESIGN: Shareholders Appoint Chapman as Liquidator
-------------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
shareholders of Intercryll Design & Fabrication Limited appointed
Gilbert Dale Chapman as liquidator on July 25, 2008.

Creditors and shareholders may direct their inquiries to:

          Business Dissolution and Recovery Service
          2/166 Henderson Valley Road
          Henderson
          Telephone: (09) 836 7714
          Facsimile: (09) 836 9755


JUNCTION SKI: Liquidators Set September 30 as Claims Bar Date
-------------------------------------------------------------
Pursuant to section 241(2)(c) of the Companies Act 1993, the High
Court has appointed Craig Alexander Sanson and Vivian Judith
Fatuaito, insolvency practitioners of Wellington, as liquidators
of Junction Ski Shop (1992) Limited.

The Liquidators set Sept. 30, 2008, as the last day for creditors
to file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Attn: Aaron Gardner
          PricewaterhouseCoopers
          113-119 The Terrace (PO Box 243)
          Wellington
          Telephone: (04) 462 7238
          Facsimile: (04) 462 7492


LANDSCAPE CONCEPTS: Shareholders Appointed Liquidator
-----------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
shareholders of Landscape Concepts Greencare Limited appointed
Murray G. Allott, chartered accountant of Christchurch, as
liquidator on July 30, 2008.

Creditors and shareholders may direct their inquiries to:

          Murray G. Allott
          111 Bealey Avenue
          Christchurch 8013
          Telephone: (03) 365 1028
          Facsimile: (03) 365 6400
          Email: murray@profitco.co.nz


QUICKER NET: Commences Liquidation Proceedings
----------------------------------------------
The High Court at Hamilton convened a hearing on Aug. 25, 2008, to
consider an application putting Quicker Net Limited  into
liquidation.

The application was filed on June 23, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          1 Bryce Street (PO Box 432)
          Hamilton
          Telephone: (07) 959 0373
          Facsimile: (07) 959 7614

Kay S. Morgan is the plaintiff's solicitor.


WYNAR LIMITED: Shareholders Opt to Liquidate Business
-----------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Wynar Limited resolved that the company be
liquidated and appointed Richard Anthony Johnston as liquidator.

Creditors and shareholders may direct their inquiries to:

          Richard a. Johnston
          PO Box 91842
          Victoria Street West
          Auckland 1142
          Facsimile: (09) 361 6702



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

* PHILIPPINES: Business Outlook is Bearish in 3rd Qtr., BES Says
----------------------------------------------------------------
Results of the Business Expectations Survey (BES) indicated that
the business outlook turned bearish in Q3 2008, data from Bangko
Sentral ng Pilipinas shows.  The overall confidence index (CI) was
at -12.9 percent, the first negative reading since Q3 2005.  This
indicated that respondents with a negative outlook outnumbered
those with a positive outlook.  This sentiment is consistent with
the dip in business and consumer morale observed in many developed
economies due to the less favorable global economic and financial
conditions.

BSP Governor Amando M. Tetangco, Jr. said that the business
confidence was weighed down by the following factors:

1) the surging prices of fuel and other raw materials;
2) rising domestic prices of food (especially rice) and services
(transportation and communication);
3) global economic downturn, particularly in the US, the country's
major trading partner;
4) rising wages; and
5) local political noise.

Respondents, however, were broadly optimistic that business
conditions would improve in Q4 2008, as the CI reverted to
16.6 percent.  This quarter-ahead view was similar to the level
posted last quarter.

Sentiment in both the NCR (National Capital Region) and AONCR
(Areas Outside National Capital Region) tracked those in the
national levels, as their CIs were negative in the current quarter
and positive in the next quarter.  Firms located in the major
regions surveyed (Regions I, IV, VII and XI) also have a broadly
negative outlook in Q3 2008 (with the exception of respondents
from Region IV) but were more bullish in Q4 2008.

The weaker confidence in the current quarter was prevalent across
all types of firms (i.e., importers, exporters and those engaged
in dual roles).  The weakest sentiment was posted by importers,
while exporters and those engaged in both importing and exporting
activities were relatively less pessimistic.  Expectations,
however, were more upbeat in Q4 2008 as all types of firms posted
positive indices, following anticipation of easing world oil
prices in the next quarter.

   * Dip in business optimism is evident across all sectors

The economic outlook of all sectors weakened in Q3 2008 as their
CIs dipped to negative values.

The services sector was the least pessimistic in Q3 2008 with a CI
of -2.8 percent.  A positive outlook was noted in most of the
services sub-sectors; however, the overall sentiment of the
services sector was weighed down by the negative sentiment of the
financial intermediation sub-sector with CI of -28.9 percent.
This could be explained in part by concerns over the effects on
the value of firms' financial assets of global financial market
stresses and the possibility of a credit squeeze.

The construction sector posted a negative index of -10.5 percent,
as did the industry and wholesale and retail trade sectors, which
registered indices of -11.9 percent and -23.2 percent,
respectively, in Q3 2008.  Respondents from these two latter
sectors cited the continued rise in input costs (i.e., fuel, raw
materials, and wage rates) and lower consumer demand from abroad
as the reasons behind their less enthusiastic outlook for the
macroeconomy.

By Q4 2008, a turnaround in sentiment across sectors is evident as
the CIs turned positive, in keeping with expectations of brisker
demand during the last quarter of the year.  Nevertheless, the
next quarter outlook were lower relative to the levels recorded a
year ago.

   * Sentiment on business operations is mixed

Firms expressed mixed sentiments on their own business operations
in Q3 2008.  Firms from the construction and services sectors were
more confident about their current business operations compared to
their counterparts from the industry and trade sectors.  This less
enthusiastic sentiment of the industry and trade sectors may be
partly explained by expectations of a decline in consumer demand
due to uptrend in the prices of basic commodities.

Average capacity utilization of the industry sector in Q3 2008 of
77.6 percent was lower from its level in the previous quarter and
relative to its level a year ago.

Credit access and financial conditions are anticipated to be
tighter

The credit access index in Q3 2008 was at -1.6 percent, a reversal
of last quarter's 3.0 percent and last year's 10.4 percent.  The
index—the lowest since Q2 2006 (at -3.5 percent)—indicated tighter
access to credit.

The financial condition index—an indicator of internal liquidity—
further dropped to -29.1 percent in Q3 2008 from -17.8 percent
last quarter and -5.1 percent a year-ago, indicating that firms
were less liquid during the current quarter.  The drop in the
index was attributed to expectations of lower volume of sales due
to the slowdown in domestic economic growth and higher operating
costs brought about by the increase in the minimum wage and
inflation rate.

   * Employment outlook is favorable with more industrial firms
      planning to expand

The employment outlook index in Q4 2008 remained positive at
8.3 percent but lower quarter-on-quarter and year-on-year.  The
positive index reflected the firms' expectations of hiring new and
additional employees in Q4 2008.  In particular, about 25 percent
of respondents from the industry sector indicated expansion plans
in Q4 2008.

   * Business constraints

Competition, weak demand (leading to low sales volume), and high
interest rates were the major constraints cited by firms which
could limit their business opportunities in Q3 2008.

   * Expectations on selected economic indicators

Firms anticipated that the peso would weaken, that the inflation
rate would accelerate, and that interest rates would increase in
Q3 and Q4 2008.

   * Response rate

The Q3 2008 BES was conducted from 4 July to 11 August 2008.  A
total of 1,249 firms nationwide were surveyed.  Respondents were
drawn from the Securities and Exchange Commission 2006 Top 7,000
Corporations as follows: 515 companies in NCR (41.2 percent) and
734 firms in AONCR (58.8 percent), covering all 17 regions
nationwide.  The overall survey response rate for this quarter was
74.3 percent compared to 71.4 percent last quarter.  For NCR, the
response rate was 73.0 percent (73.7 percent last quarter); and
for AONCR, the response rate was 75.2 percent (from 69.8 percent).
A breakdown of responses received by type of business showed that
11.7 percent were importers, 9.5 percent were exporters, and 15.8
percent were both importers and exporters.  About 63 percent of
the respondents were neither importers nor exporters or did not
specify their firm type.



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

ALLCO REIT: S&P Puts BB Long-Term Credit Rating on WatchPositive
----------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB' long-term
corporate credit rating to Allco Commercial Real Estate Investment
Trust (Allco REIT).  At the same time, it placed the rating on
CreditWatch with positive implications.

"The rating on Allco REIT reflects the trust's smaller asset base
compared with its global peers'.  It has nine properties
(excluding units in unlisted property fund Allco Wholesale
Property Fund).  Allco REIT also has high tenant concentration,
with its top two tenants representing about 30% of the gross
revenue of its portfolio," said S&P's credit analyst Wee Khim
Loy.  "In addition, the trust's market and tenant diversity could
decline. Should Allco REIT's manager, Frasers Centrepoint Asset
Management (Commercial) Ltd., continue the previous manager's
strategy to exit the Australian market and focus on properties in
Singapore and Asia, the trust's asset portfolio and cash flow
stability would be negatively affected."

The above weaknesses are partly offset by the quality of Allco
REIT's investment portfolio.  The Asian properties, which require
minimal capital expenditure, are mostly strategically located in
central business districts.  These benefits are complemented by
the stable rental cash flow of Australian properties, which are
backed by longer-term leases.  In addition, the weighted average
lease term of 4.8 years for Allco REIT's combined diversified
portfolio is higher than the average for comparable real estate
investment trusts focusing on Asian office commercial properties.
Allco REIT's nine properties have more than 400 tenants in total,
spanning five markets in three countries.  The diversification
strength of the investment portfolio provides cash flow stability
to the business.

The rating is also supported by the enhanced financial
flexibility of Allco REIT following the change in the ownership
of its manager.  Impending refinancing risk declined after Allco
REIT was 'de-linked' from Allco Finance Group.  Frasers
Centrepoint Ltd. acquired 17.6% of Allco REIT and 100% of its
previous manager, Allco Singapore Ltd., from Allco Finance Group
on Aug. 14, 2008.  Allco REIT will be eventually renamed Frasers
Commercial Trust.  Frasers Centrepoint is the wholly owned
property arm of Fraser and Neave Ltd., a leading consumer group
with a satisfactory credit profile.



STATS CHIPPAC: Enters Manufacturing Agreement With Infineon
-----------------------------------------------------------
STATS ChipPAC Ltd. disclosed with the Singapore Stock Exchange
that it entered into an agreement with Infineon Technologies AG to
provide manufacturing services for products based on Infineon's
first generation embedded Wafer-Level Ball Grid Array (eWLB)
technology.

The relentless market demand for complex and power efficient
semiconductor devices within a continuously shrinking package
footprint is increasingly constrained by the lack of physical pad
connection space.

Infineon, a supplier of semiconductor and system solutions,
successfully alleviated these constraints via the development
and introduction of the eWLB, a fan out wafer level packaging
technology.  Manufacturing services for the eWLB will be located
at STATS ChipPAC's operation in Yishun, Singapore.

"Infineon introduced the first generation of eWLB in 2007 as a
dynamic technology that offered small package dimensions, improved
electrical and thermal performance, and maximum connection density
for wireless applications," said Wah Teng Gan, Vice President of
Assembly and Test at Infineon Asia Pacific.  "Our manufacturing
partnership with STATS ChipPAC ensures we will be able to expand
the number of highly integrated wafer level packages manufactured
with eWLB technology".

"eWLB is an innovative technology that offers a high performance,
power efficient solution for the wireless market.  Our partnership
with Infineon to provide manufacturing services for eWLB
technology aligns with our strong focus on leading edge
integration technology.  With our extensive manufacturing
expertise in advanced integration technology, we are looking
forward to working with Infineon to achieve volume production of
this revolutionary packaging technology," said Dr. Han Byung
Joon, Executive Vice President and Chief Technology Officer of
STATS ChipPAC.

                     About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. is a service provider of semiconductor
packaging design, assembly, test and distribution solutions in
diverse end market applications including communications,
digital consumer and computing.  With global headquarters in
Singapore, STATS ChipPAC has design, research and development,
manufacturing or customer support offices in 10 different
countries.  STATS ChipPAC is listed on the SGX-ST. Further
information is available at http://www.ir.statschippac.com.
                         *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
June 24, 2008, Standard & Poor's Ratings Services assigned its
'BB+' issue rating to the proposed issue of medium-term
benchmark-sized senior unsecured notes by STATS ChipPAC Ltd.
(BB+/Stable/--).



===============
T H A I L A N D
===============

FEDERAL-MOGUL: Shows Stability Amid Auto Sales Slump
----------------------------------------------------
Analyst at rating agency, Standard & Poor's said autoparts
supplier, Federal-Mogul Corp., is unlikely to follow its peers
into bankruptcy, Bloomberg News related.

Recently, autoparts supplier Cadence Innovation LLC and Intermet
Corp. filed for Chapter 11 bankruptcy, joining other auto
suppliers Progressive Molded Products, Inc., Plastech Engineered
Products, Inc., and Blue Water Automotive Systems, Inc., which
filed for bankruptcy earlier this year.  Grant Thornton LLP said
in a report dated August 8, 2008, that as many as a third of
North American autoparts supplier, including closely hedl firms,
are at risk for bankruptcy.  However, Nancy Messer, an analyst at
S&P, told Bloomberg that Federal-Mogul won't be joining them.

Federal-Mogul is one of the few companies in this sector with a
stable outlook, Ms. Messer told Bloomberg.  S&P gives
Federal-Mogul a BB- corporate credit rating.

Fund managers echoes Ms. Messer's confidence in Federal-Mogul.
According to Bloomberg, Federal-Mogul is "well-positioned" given
the fact that the company gets more than a third of its revenues
and most of its profits from selling replacement items like
Champion spark plugs and because 60% of the company's business is
outside the United States, exposing it to faster-growing
economies.

Federal-Mogul's overall business strategy -- from heavily
investing in its aftermarket business, to expanding outside the
auto industry, and improving fuel efficiency for its autoparts
supplies -- contributes to the company's stability amidst the
current automotive sales slump, Bloomberg said.  The news agency
said that Federal-Mogul gets 39% of its 2007 revenue from its
aftermarket business and is in negotiations with a Chines
wind-turbine manufacturer.  The report cited that Federal-Mogul's
competitors in the auto industry are more at risk to bankruptcy
because they have no significant aftermarket business.

The 11% decline in U.S. auto sales this year through July, higher
raw materials costs, and the credit crisis are weighing on
U.S.-based partsmakers, Bloomberg said.  Annual vehicle sales may
fall to 14,200,000 units, the lowest since 1993, according to
J.D. Power & Associates, a Westlake Village, California-based
market research firm, Bloomberg added.

Robert Goodman, an analyst at CRT Capital Group, recommends a buy
for Federal-Mogul's common stock.  George Putnam, publisher of
the Turnaround Letter and fund-manager of New Generation
Advisers, Inc., thinks Federal-Mogul stock "is cheap right now."

As of August 26, 2008, Federal-Mogul's common stock trades at
US$16.53 per share.

Billionaire Carl Icahn owns 74.8% of Federal-Mogul's common
stock.  The stake is valued at approximately US$1,242,000,000.
UBS
bought a 5.7% stake in the three months ended June 30, while
Solus Alternative Asset Management LP bought a 2.6% stake in the
second quarter.  TIAA-CREF, the biggest U.S. pension-fund
manager, owned 2.1% as of June 30.

"Icahn's involvement draws interest," Mr. Putnam told Bloomberg.
Mr. Icahn purchased two-thirds of his holdings, 50,100,000
shares, for US$900,000,000, or US$17.96 each, on Feb. 25, 2008.
Bloomberg said those shares have lost 9.3% of their value,
costing Icahn US$83,700,000 on paper.  The rest of his stake was
acquired in an exchange of debt while the company was in
bankruptcy.

Analysts, according to Bloomberg, said Federal-Mogul's stocks may
recover to US$26 per share at the end of the year.  If that
happens, Mr. Icahn's shares will be valued to US$1,950,000,000.

                      About Federal-Mogul

Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global supplier, serving the world's foremost
original equipment manufacturers of automotive, light commercial,
heavy-duty, agricultural, marine, rail, off-road and industrial
vehicles, as well as the worldwide aftermarket.  Founded in
Detroit in 1899, the company is headquartered in Southfield,
Michigan, and employs 45,000 people in 35 countries.  Aside from
the U.S., Federal-Mogul also has operations in other locations
which includes, among others, Mexico, Malaysia, Australia, China,
India, Japan, Korea, and Thailand.

The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed US$10.15 billion in assets and US$8.86 billion in
liabilities.
Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at
Dudley Hill, Bradford.  Peter D. Wolfson, Esq., at Sonnenschein
Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer,
Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the
Official Committee of Unsecured Creditors.

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003.  They submitted several amendments and on June 6,
2004, the Bankruptcy Court approved the Third Amended Disclosure
Statement for their Third Amended Plan.  On July 28, 2004, the
District Court approved the Disclosure Statement.  The estimation
hearing began on June 14, 2005.  The Debtors submitted a Fourth
Amended Plan and Disclosure Statement on Nov. 21, 2006, and the
Bankruptcy Court approved that Disclosure Statement on Feb. 6,
2007.  The Fourth Amended Plan was confirmed by the Bankruptcy
Court on Nov. 8, 2007, and affirmed by the District Court on
November 14.  Federal-Mogul emerged from chapter 11 on Dec. 27,
2007.

(Federal-Mogul Bankruptcy News; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or
215/945-7000)


                         *********

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.





                 *** End of Transmission ***