TCRAP_Public/080912.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

             Friday, September 12, 2008, Vol. 11, No. 182

                            Headlines

A U S T R A L I A

ACORN SOLUTIONS: Members' Final Meeting Set for September 17
BRENCORP INVESTMENTS: Members' Final Meeting Set for September 30
BRENCORP: Liquidator to Give Wind-Up Report on September 30
CONTINENTAL CONCRETING: Placed Under Voluntary Liquidation
DIXON WILDE: Liquidator to Present Wind-Up Report on September 30

ELDERSLIE FINANCE: Auditors Helped Create Company Structure
ENVIRONINVEST: Administrator Says Unit Traded While Insolvent
EQUITABLE MORTGAGES: S&P Affirms BB+/B Ratings; Outlook Negative
GOODWIN CUSTOM: Placed Under Voluntary Liquidation
HILLS ENGINEERING: Members' Final Meeting Set for September 30

KANGY KRANE: Placed Under Voluntary Liquidation
RAPTIS GROUP: Lender Places Unit in Receivership
RED ASSOCIATES: Liquidator to Give Wind-Up Report on September 15
ROCKHAMPTON WRECKING: Members' Final Meeting Set for September 16
SEIZA AUGUSTUS: S&P Drops Ratings on Class E & F Notes to B/CCC

* AUSTRALIA: ABS Market Resilient Amidst Difficulties, S&P Says


C H I N A

CHINA CONSTRUCTION: Inks Loan Guaranty Pact With Shenzhen Hua
CHINA EASTERN: Maintains Interest in Singapore Airline
CHINA MERCHANTS BANK: Partners With IAM to Meet Credit Card Crunch
CHINA ORIENWISE: Moody's Reviews Ratings for Possible Downgrade
GREENTOWN CHINA: Moody's Downgrades Sr. Unsecured Rating to B1

ZTE CORP: To Invest CNY6 Billion for Xi'an Facility


H O N G K O N G

ART CONCORD: Creditors to Hold Meeting on September 30
CHARGEURS WOOL: Final Meeting Slated for October 10
GOLDEN BRIDGE: Final Meetings Set for October 8
LINUX PROFESSIONAL: Law Yui Lun Steps Down as Liquidator
MASS FUNDS: Members to Hear Wind-Up Report on October 9

ORLIMA INVESTMENTS: Yuen and Robert Quit as Liquidators
PACIFIC ASIA: Final Meeting Slated for October 6
SHUN LOONG: Members to Hear Wind-Up Report on October 8
SUN SHING: Final Meeting Slated for October 8
VISION TECHNOLOGY: Creditors' Meeting Set for September 26


I N D I A

BALLY TECHNOLOGIES: Moody's Assigns Ba3 Corporate Family Rating
MARCK BIOSCIENCES: CRISIL Rates Rs.805 Mil. Facilities at 'B+'
VEDANTA RESOURCES: Moody's Reviews Ratings for Possible Downgrade
* CRISIL: Equity Funds Out-Perform Bellwether Indices in August


I N D O N E S I A

MEDCO ENERGI: Moody's Affirms B1 CFR; Outlook Remains Negative
PT PERTAMINA: To Allocate IDR43.6 Trillion to Increase Production
PT PERTAMINA: Won't Raise Gas Price as Requested by Government


J A P A N

LEHMAN BROTHERS: To Sell 55% Interest, Spin-Off Real Estate Assets
YOKOGAWA ELECTRIC: Inks JPY12BB Supply Deal w/ Rep. of Tatarstan
* JAPAN: Negative Outlook for P&C Insurance Industry, Says Moody's
* JAPAN: Trade Surplus Falls for Fifth Straight Month


K O R E A

AXESSTEL INC: Earns US$1.2 Million in 2008 Second Quarter
CORECRID INC: Signs KRW9.9 Million Deal With a Korean-Based Firm


N E W  Z E A L A N D

AIR NEW ZEALAND: Cuts Fares to Australia by 15%
ALLANBROOKE LIMITED: Commences Liquidation Proceedings
ALWYN INVESTMENT: Undergoes Liquidation Proceedings
ARAKE LIMITED: Liquidators Set September 30 as Claims Bar Date
AUSTRAL PACIFIC: 2nd Quarter Net Loss Narrows to US$2,529,194

DEVERY DRAINAGE: Commences Liquidation Proceedings
FOUR BROTHERS: Commences Liquidation Proceedings
HIGH STREET: Placed Company Under Liquidation
NGAMOTU PROPERTIES: Placed Company Under Liquidation
STRATEGIC FINANCE: Won't Pay Interest Payment on September 15

WAIMEA TYRES: Undergoes Liquidation Proceedings
* NEW ZEALAND: Central Bank Reduces Cash Rate to 7.5%
* NEW ZEALAND: Food Prices Up 2.7% in August, Statistics NZ Says


S I N G A P O R E

BEST MARINE: Court Enters Wind-Up Order
ELTRACO INTERNATIONAL: Court to Hear Wind-Up Petition on Sept. 19
QNITY NETWORKS: Creditors' Proofs of Debt Due on September 19
SURGICAL SYSTEMS: Court Enters Wind-Up Order


T A I W A N

KING'S TOWN: Fitch Puts BB+ Long-Term Issuer Default Rating


X X X X X X X X

* Large Companies with Insolvent Balance Sheets


                         - - - - -


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

ACORN SOLUTIONS: Members' Final Meeting Set for September 17
------------------------------------------------------------
Gary S. Fettes, Acorn Solutions Pty Ltd's appointed estate
liquidator, will meet with the company's members on Sept. 17,
2008, at 10:00 a.m. to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

         Gary S. Fettes
         Scott Partners Consulting
         Level 1, 173 Burke Road
         Glen Iris VIC 3146
         Telephone: (03) 9500 0511


BRENCORP INVESTMENTS: Members' Final Meeting Set for September 30
-----------------------------------------------------------------
Anthony R. Cant, Brencorp Investments No. 2 Pty Ltd's appointed
estate liquidator, will meet with the company's members on
Sept. 30, 2008, at 10:30 a.m. to provide them with property
disposal and winding-up reports.

The liquidator can be reached at:

          Romanis Cant
          Chartered Accountants
          2nd Floor, 106 Hardware Street
          Melbourne VIC 3000


BRENCORP: Liquidator to Give Wind-Up Report on September 30
-----------------------------------------------------------
Anthony R. Cant, Brencorp Investments No. 3 Pty Ltd's  appointed
estate liquidator, will meet with the company's members on Sept.
30, 2008, at 10:45 a.m. to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

          Romanis Cant
          Chartered Accountants
          2nd Floor, 106 Hardware Street
          Melbourne VIC 3000


CONTINENTAL CONCRETING: Placed Under Voluntary Liquidation
----------------------------------------------------------
Continental Concreting Pty Ltd's members agreed on July 23, 2008,
to voluntarily liquidate the company's business.  Brent Kijurina
was  appointed to facilitate the sale of its assets.

The liquidator can be reached at:

          Brent Kijurina
          Hall Chadwick
          Level 29, 31 Market Street
          Sydney NSW 2000


DIXON WILDE: Liquidator to Present Wind-Up Report on September 30
-----------------------------------------------------------------
Anthony R. Cant, Dixon Wilde Pty Ltd's  appointed estate
liquidator, will meet with the company's members on Sept. 30,
2008, at 11:00 a.m. to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

          Romanis Cant
          Chartered Accountants
          2nd Floor, 106 Hardware Street
          Melbourne VIC 3000


ELDERSLIE FINANCE: Auditors Helped Create Company Structure
-----------------------------------------------------------
Anthony Klan of the Australian reports that Trood Pratt & Co,
Elderslie Finance Corporation's auditors from 1997 until its
collapse, helped its owner create a company structure into which
tens of millions of dollars of funds were poured.

The Australian says Trood Pratt & Co signed off on Elderslie's
accounts -- which at June 2007 showed AU$59 million had been lent
by Elderslie to its owner Peter George -- and also assisted Mr.
George in creating that structure.

Four Trood Pratt & Co partners, including Douglas Trood and Ian
Pratt, are the technical owners of Hotel Nominees, controlling all
shares in the company through the accounting firm's nominee
company TPC Nominees, the report relates.

On Aug. 27, 2008, the Troubled Company Reporter-Asia Pacific,
citing the Australian, reported that Elderslie Finance's two
associated companies that owed the group about AU$75 million were
swept into receivership and appointed PricewaterhouseCoopers as
receiver to the companies.

According to that report, Hotel Nominees and TOMR Telematics,
owned by Mr. George, both borrowed funds from Elderslie in the
years preceding their collapse.

That report also said TOMR Telematics, a technology company, owed
Elderslie "about AU$10 million" while Hotel Nominees owed
Elderslie about AU$67 million.

According to the Australian, Elderslie receiver Greg Hall of PwC
said he was investigating those "substantially irrecoverable"
loans from Elderslie to Hotel Nominees.

Meanwhile, the Australian says Mr. George had previously been a
director of EC Consolidated Capital, which was accused of stealing
millions of dollars from investors and was liquidated in 1997.

No action was taken against Mr. George and he was not banned from
taking other directorships, the Australian adds.

                   About Elderslie Finance

Elderslie Finance Corporation -- http://www.efc.com.au/index.php
-- is an independent, Australian-owned structured finance and
investment management group.


                        *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
July 3, 2008,  various report said Elderslie Finance Corporation
has been placed into receivership following a Federal Court order
allowing its trustee, Perpetual Trustees WA Ltd, to appoint a
receiver, after several rescue plans for the ailing company fell
through.

According to the reports, Perpetual appointed Gregory Hall and
Philip Carter of PricewaterhouseCoopers as the receivers for
Elderslie Finance.


ENVIRONINVEST: Administrator Says Unit Traded While Insolvent
-------------------------------------------------------------
Joint company administrator David Coyne of Lowe Lippmann has
raised the possibility that Motorway Tyres, a subsidiary of
Environinvest, was trading while insolvent as long as two years
before its eventual collapse, the Herald Sun reports.

The Herald Sun relates that Motorway Tyres was placed in
administration on Aug. 1, 2008, owing more than AU$8 million to
staff, the Australian Tax Office and other creditors.

Creditors also include its parent company, Environinvest, and
former Motorway director Roger Pescott, who resigned from the
Motorway board on July 22, 2008, the report adds.

The report, citing BusinessDaily, says in a written report to
Motorway creditors, administrator Mr. Coyne disclosed he had
investigated whether credit may have been incurred "where there
were reasonbable grounds for suspecting the company was
insolvent".

According to the Herald Sun, the administrator found that Motorway
Tyres had a working capital deficiency of more than AU$4.7 million
on June 30, 2006, and AU$4.5 million on June 30, 2007, which,
on a working capital analysis, shows that the company may have
become insolvent on or before June 2006.  However, Mr. Coyne noted
that Environinvest had advanced more than AU$5.8 million to
Motorway in the three years leading up to his appointment as joint
administrator, the report relates.

Motorway Tyres manufactures and distributes tyre remoulds,
retreads and pr-cure treads to the taxi, passenger, light and
heavy truck market.

                     About Environinvest Ltd

Headquartered in Melbourne, Victoria in Australia, Environinvest
Limited -- http://www.environinvest.com.au/-- which trades as
Primary Yield, holds a financial services licence to run several
forestry and agricultural investment schemes.  Since its
inception in 1997, the company is currently responsible under
ownership, lease, and agistment for 370,000 acres (148,857
hectares) of agricultural land in Victoria, Tasmania, South
Australia, New South Wales, and Queensland.  The company also
offers Eucalyptus industry investment opportunities, cattle
industry investment opportunities and blue gum investment
information for Australian national markets and international
clients.  As at June 30, 2004,  Environinvest and its
subsidiaries had net assets of approximately AU$36 million.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
July 21, 2008, the Herald Sun said David Nairn of HLB Mann Judd
expressed substantial doubt about Environinvest Limited's ability
to continue as a going concern pointing to the company's program
to sell its forestry assets.

According to the report, the auditor is concerned that "without
such a program current liabilities would exceed current assets."

The auditor's statement was made based on the company's 2007
financial accounts filed with the Australian Securities &
Investments Commission on May 22.


EQUITABLE MORTGAGES: S&P Affirms BB+/B Ratings; Outlook Negative
----------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB+/B'
ratings on Equitable Mortgages Ltd. (EML) and Equitable Life
Insurance Co. Ltd. (ELIC).  At the same time, the outlooks on both
companies were revised to negative, from stable.  EML and ELIC,
along with Equitable Mortgage Income Trust, are the key issuers
and considered core subsidiaries of the New Zealand Equitable
group (Equitable).  The negative outlook implies roughly a one-in-
three chance of a rating downgrade.  In other words, the most
likely scenario (the two-in-three chance) is that S&P's ratings on
EML and ELIC will remain at the 'BB+' level.

"Equitable's non-performing assets have increased to a higher
level than our expectations at the 'BB+' rating," said S&P's
credit analyst Mark Legge.  "While the rise in non-performing
assets has not yet translated to materially increased lending
losses, there is the possibility this could occur and,
consequently, contribute to a ratings downgrade."

S&P notes, however, that Equitable has protection against higher
lending losses from credit insurance provided by sister company
Equitable General Insurance Co. Ltd (EGIC), who is currently able
to absorb up to NZ$10 million of lending losses -- a level well in
excess of those anticipated to materialize in the short term.
Loss absorption via EGIC adds to Equitable's existing capital,
which exceeds NZ$40 million and remains commensurate with the
'BB+' ratings.  While S&P expects Equitable's earnings to soften
in the short term, it is unlikely by itself to put pressure on the
rating.  While Equitable does not benefit from explicit
shareholder support via EGIC in the form of a guarantee, EGIC was
recently subject to a board-approved higher capital commitment
from Equitable's principal shareholder (the Spencer family).

Equitable's 2008 debenture renewal rates have been lower than
2007, although short-term concerns regarding liquidity are
ameliorated because of earlier proactive initiatives by Equitable
management to increase and strengthen banking lines.  Nonetheless,
S&P will continue to monitor investor confidence, as reflected in
Equitable's debenture renewal rates, and the continuing support
and confidence of bankers and other stakeholders, including
Equitable's principal shareholder.  Waning support from key
stakeholders may prove difficult for Equitable to digest at the
'BB+' rating and could contribute to negative ratings movement.

"In an industry characterized by recent failures, we retain our
view that Equitable is one of the more sound finance companies in
New Zealand, even though the group's asset quality has recently
deteriorated outside expectations," said S&P's credit analyst
Gavin Gunning.  "Equitable differs from many other property-
focused companies that have recently experienced a more severe
deterioration in their credit quality or fallen by the wayside
because of its focus on first mortgage, manageable loan-to-
valuation ratio (LVR) lending (compared with second mortgage, high
LVR lending), its early recognition of a need to strengthen
liquidity, and its strongly supportive principal shareholder."


GOODWIN CUSTOM: Placed Under Voluntary Liquidation
--------------------------------------------------
Goodwin Custom Panel Doors Pty Ltd's members agreed on July 29,
2008, to voluntarily liquidate the company's business.
Brent Kijurina was  appointed to facilitate the sale of its
assets.

The liquidator can be reached at:

          Brent Kijurina
          Hall Chadwick
          Level 29, 31 Market Street
          Sydney NSW 2000


HILLS ENGINEERING: Members' Final Meeting Set for September 30
--------------------------------------------------------------
Allan Dodd, Hills Engineering Pty Ltd's appointed estate
liquidator, will meet with the company's members on Sept. 30,
2008, at 10:00 a.m. to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

          Allan Dodd
          Frost Crane & Co Pty Ltd
          372 Pennant Hills Road
          Carlingford NSW 2118

KANGY KRANE: Placed Under Voluntary Liquidation
-----------------------------------------------
Kangy Krane Trucks Pty Limited's members agreed on July 28, 2008,
to voluntarily liquidate the company's business.  Blair Pleash was
appointed to facilitate the sale of its assets.

The liquidator can be reached at:

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


RAPTIS GROUP: Lender Places Unit in Receivership
------------------------------------------------
Raptis Group arm Limdaning was placed in receivership after it
failed to pay subcontractors, the Australian reports.

According to the report, Raptis lender Capital Finance Australia
said it had appointed KordaMentha as receiver to Limdaning, which
was developing the third tower of the group's AU$700 million
Southport Central development on the Gold Coast.

The 39-level third tower of the Southport Central development,
which aims to deliver 258 apartments and more than 14,000sqm of
retail and office space, was "substantially complete", with eight
levels of the project to be finished, the report says citing Mr.
Smith of KordaMentha.

Mr. Smith said "The objective of the receivership is to complete
the project and finalise the substantial pre-sales."

The Australian recounts that this is the second time the Raptis
Group - which is headed by Jim Raptis - suffered severe financial
difficulties, with the group placed in administration in 1993.

Meanwhile, the reports notes, the company had delivered a AU$13.9
million net loss for the full year after accounting for AU$20.5
million of write-downs on the value of property assets in the
period.

At June 30, Raptis had total assets of AU$912 million and total
liabilities of AU$903 million, the report adds.

In a regulatory filing to the Australian Securities Exchange
(ASX), Raptis requested a trading halt on its securities saying
its directors are considering funding alternatives and seeking
advice before taking appropriate action.

According to the Australian, citing sources close to Raptis, the
company faced an uncertain future and directors and advisers would
be scrambling to examine the extent of its financial woes.

                       About Raptis Group

Based in Sydney, Australia, Raptis Group Limited (ASX:RPG) --
http://www.raptis.com/-- engaged in property development,
property investment, residential property management and resort
hotel operations.  Its projects include Platinum on the river
Brisbane, Southport Central Tower 1 Southport Gold Coast and
Southport Central Tower 2 Southport Gold Coast.  In April 2007,
the Gold Coast International Hotel and adjoining 1.1 hectares
development parcel were settled in a 50/50 joint venture with CP 1
Limited.  In June 2007, the refurbishment of the Holiday Inn
Surfers Paradise was completed.  During the fiscal year ended June
30, 2007 (fiscal 2007), it acquired a 100% interest in a number of
companies, including Alexia Investments Pty Limited, Baronvale Pty
Limited, Building Services (QLD) Pty Limited, Civic Glass &
Aluminum Pty Limited and Civic Manufacturing Pty Limited.  During
fiscal 2007, the company’s 100% owned subsidiaries, Amaristine Pty
Limited, Korelli Pty Limited, Waters Edge Management Pty Limited
and Solero Pty Limited were de-registered.


RED ASSOCIATES: Liquidator to Give Wind-Up Report on September 15
-----------------------------------------------------------------
R. D. Grant, Red Associates Pty Ltd's  appointed estate
liquidator, will meet with the company's members on Sept. 15,
2008, at 10:30 a.m. to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

          R. D. Grant
          Dye & Co. Pty Ltd
          Chartered Accountants
          165 Camberwell Road
          Hawthorn East VIC 3123


ROCKHAMPTON WRECKING: Members' Final Meeting Set for September 16
-----------------------------------------------------------------
Mark Swaffield, Rockhampton Wrecking Company Pty Ltd's  appointed
estate liquidator, will meet with the company's members on Sept.
16, 2008, at 10:00 a.m. to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

          Mark Swaffield
          Olive Swaffield & Associates
          27 Bolsover Street
          Rockhampton QLD 4700
          Telephone: (07) 4927 9500
          Facsimile: (07) 4922 3163


SEIZA AUGUSTUS: S&P Drops Ratings on Class E & F Notes to B/CCC
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered the ratings on the
Class E and Class F notes issued by Seiza Augustus Series 2007-1
Trust and affirmed the ratings on the Class A, B, C, and M notes.
The Class D, E, and F notes remain on CreditWatch with negative
implications.

These rating actions are a result of continued deterioration in
the performance of the underlying portfolio.  To date, there has
been a significant charge-off to the unrated class G notes.  This
weakens the credit support available to the rated notes, in
particular the class E and F notes.  Furthermore, a large
proportion of delinquent loans have moved into the more than 90
days in arrears category.

The industry trend indicates that borrowers in severe financial
stress have a decreasing number of options available to them to
improve their positions.  Further charge-offs are expected as a
result of further deterioration of the portfolio.  This will
further weaken the credit support available, particularly to the
junior notes.

The ratings on the Class A, B, C, and M notes have been affirmed.
The Class A, B, and C notes benefit from increased credit
enhancement as a result of the sequential pay structure, which
provides a buffer against future losses.  The interest and
principal payments on the Class M notes are made from the
collection of interest from the loans and their performance is
within expectations at the 'A' rating level.

The CreditWatch actions are expected to be resolved within 90
days.

Ratings Lowered:

Transaction             Class      Rating to       Rating from
---------------------------------------------------------------
Seiza Augustus Series
   2007-1 Trust           E        B/Watch Neg      BB/Watch Neg
Seiza Augustus Series
   2007-1 Trust           F        CCC/Watch Neg    B/Watch Neg

Ratings Affirmed:

Transaction             Class    Rating
---------------------------------------
Seiza Augustus Series
   2007-1 Trust           A        AAA
Seiza Augustus Series
   2007-1 Trust           B        AA
Seiza Augustus Series
   2007-1 Trust           C        A
Seiza Augustus Series
   2007-1 Trust           M        A


* AUSTRALIA: ABS Market Resilient Amidst Difficulties, S&P Says
---------------------------------------------------------------
The market for asset-backed securities (ABS) in Australia has
shown resilience in difficult conditions according to a new report
issued by Standard & Poor's Ratings Services.  The market remains
quiet but for the three months to June 30, 2008 there was
AU$1.828 billion in note issuance, up from AU$1.431 billion for
the corresponding period in 2007.

S&P's credit analyst Vera Chaplin said that margins from recent
ABS issuance in Australia are reflective of the difficult
conditions in securitization markets around the world.  "New
issuance of ABS has been sporadic; just two deals launched in the
second quarter, but there continues to be a number of wide-ranging
enquiries from issuers about ABS transactions," Ms. Chaplin said.
"Although the Australian market remains subdued, we are seeing
some positive signs."

One of the more recent positives was St.George Bank Ltd.'s second
issuance for the year.  This occurred in July under St.George's
Crusade ABS Master Trust program.  "At US$1 billion, this is the
largest ABS transaction to be issued this year," said Ms. Chaplin.

In terms of performance, results in the ABS asset classes have
generally been sound.  The more seasoned transactions have had
significant build-up of credit support to senior classes of notes.
This has been due to their sequential-pay structures and
short-weighted average lives.  For example, the ratings assigned
to the Class B notes issued by CNH Capital Australia
Receivables Trust No. 3 and Medfin Trust Series 2004-2 were
upgraded earlier this month following strong asset performance and
increases in subordination.

"Looking ahead, we expect the slowdown in economic activity and
ongoing inflationary pressures to result in some performance
deterioration," said Ms. Chaplin.  "But we do not expect any
deterioration to be severe enough to result in widespread ratings'
downgrades."

In the third quarter of 2008, two ABS transactions have had
notable ratings' downgrades.  The first involved two subordinated
tranches of Seiza Augustus 2007-1 Trust notes, which were
downgraded on Sept. 10, 2008 after charge-offs to the unrated
notes and resultant weakening of the credit support to the
subordinated notes.  These two classes were kept on CreditWatch
with negative implications following their downgrades.  At the
same time, another tranche was kept on CreditWatch negative and
four senior tranches were affirmed.

The other notable downgrade this quarter occurred in July when the
ratings assigned to Elderslie MTN Trust Series 2006-1 were lowered
and placed on CreditWatch with developing implications.  This
followed the non-remittance of trust collections, which reduced
the amount of receivables that were available to service the
outstanding notes.



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

CHINA CONSTRUCTION: Inks Loan Guaranty Pact With Shenzhen Hua
-------------------------------------------------------------
The China Construction Bank entered into a memo of bank-guaranty
cooperation and a guaranty cooperation agreement with China
Finance Inc.'s subsidiary, Shenzhen Hua Yin Guaranty and
Investment Limited Liability Corporation, on September 1, 2008.

These agreements allow Shenzhen Hua Yin to act as loan guarantor
on loans from China Construction to SMEs on more favorable terms
than many other companies.   China Finance's management believes
that Shenzhen Hua Yin's new relationship with the bank will allow
Shenzhen Hua Yin to expand the geographic region where it provides
its loan guarantee services.  The agreements will permit Shenzhen
Hua Yinto act as a loan guarantor for loans from China
Construction Bank to SMEs while depositing only 20% of the loan
amount with China Construction Bank as a security deposit.

The agreements further allow security deposits to be made using
domestic or foreign currency, which allows Shenzhen Hua Yinto have
more flexibility to react to changing exchange rates.  Shenzhen
Hua Yin's new relationship with China Construction Bank as a
result of the agreements gives it the status as a Cooperative
Guarantee Institution of China Construction Bank, which means that
China Construction Bank will be more likely to make introductions
for Shenzhen Hua Yinto serve as a loan guarantor.  Shenzhen Hua
Yin expects its new relationship with China Construction Bank to
help expand the company's loan guarantee services throughout the
People's Republic of China, beyond the Chu Chiang Delta Area
(including Guangxi, Guangdong, Hainan and Fujian) where the
company's efforts are currently centered.

Shenzhen Hua Yinhas previously benefited from its close
relationship with China Industrial and Commercial Bank and expects
that its new relationship with China Construction Bank will allow
for expansion of the loan guarantee segment of its business.

Ann Yu, CEO of China Finance, Inc. said, "China Construction Bank
will be another important cooperative partner for us, and we
expect this new relationship to help us expand the reach of our
loan guarantee business."

                  About China Construction Bank

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

                          *     *     *

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


CHINA EASTERN: Maintains Interest in Singapore Airline
------------------------------------------------------
China Eastern Airlines Corporation Limited said that Singapore
Airlines Limited remained as its preferred partner despite the
expiration of the stake sale deal between them, Katie Cantle
of ATW Daily News reports, citing CEA Board Secretary Luo Zhuping.

"We really missed a very good opportunity to introduce SIA as our
strategic investor because we could reach three goals that way: To
diversify our stakeholder makeup, enhance our management level and
obtain the cash injection we need.  Our debt-to-asset ratio has
jumped as high as 95% now," Mr. Luo explained, although he
admitted that the industry downturn has made the pursuit of the
SIA investment more difficult, ATW Daily relates.

On August 13, 2008, the Troubled Company Reporter-Asia Pacific,
citing Reuters, reported that China Eastern will continue to
seek a big-name strategic investor following the expiry of an
agreement on a stake sale to Singapore Airlines.

A TCR-AP report on January 10, 2008, said that nearly 78% of
China Eastern shareholders disapproved a bid by Singapore
Airlines and Temasek Holding Pte Limited to buy a minority stake
in China Eastern after rival Air China and its parent, China
National Aviation Corp., pledged a higher offer.  However, on
Feb. 25, China Eastern rejected Air China's proposal and pledged
to instead continue seeking another strategic investor.

Meanwhile, the report relates, Mr. Luo said: "The growing trend of
negative domestic market growth is worrying us most."

According to the Civil Aviation Administration of China, domestic
passenger traffic fell 1.1% year-over-year in May and 3.8% in
June, ATW Daily adds.

                  About China Eastern Airlines

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.


CHINA MERCHANTS BANK: Partners With IAM to Meet Credit Card Crunch
------------------------------------------------------------------
China Merchants Bank's thriving "All-in-One Card" credit card and
rapidly growing online retail banking business is the result of
creative marketing supported by extremely successful technology-
driven development initiatives.

China Merchants Bank, in cooperation with Olympic sponsor Visa, is
launching a credit card with the Chinese character of "He"
highlighting "harmony" (he), the same theme as the spectacular and
globally well-received opening ceremony in Beijing, is just a
recent example of how the bank grew this segment of its consumer
credit business from five million credit cards on issue in 2006 to
over 20 million entering 2008 and today is the largest issuer of
credit cards in China.

Merchants Bank found its CardLinK credit card application was hard
pressed to turn a daily processing cycle on schedule. "Our
business is growing very fast. Business data is growing fast as
well.  So, (naturally) batch jobs, take longer," explains Mr. Tao
Ming Ming, China Merchants Bank (CMB)'s Mainframe Systems Manager.

Looking for new ideas to handle the growing overload of its
CardLinK credit card processing application, China Merchants Bank
found its solution in IAM, a VSAM application performance
enhancement solution, from US-based INNOVATION Data Processing.

"Already providing high performance throughput for customers
around the globe, as a transparent performance accelerator for
VSAM CICS and batch applications under z/OS, INNOVATION is
extremely proud to have China Merchants Bank as an IAM customer in
China," said Thomas J Meehan, INNOVATION Data Processing, Vice-
President Technology Advancement.

With the credit card market one of the fastest-growing segments of
its consumer credit businesses, "Batch jobs couldn't be finished
in the batch window," said Mr. Tao.  "Jobs took too much time
accessing the VSAM files which they were accessing frequently.

"Using IAM we can reduce the executing time, it is easy to use and
we don't need to make a lot of changes to our applications," added
Mr. Tao.

The China Merchants Bank IT department supports the bank's credit
card business with CardLinK running under the z/OS operating
system on an IBM z9 mainframe processor with IBM storage.
CardLinK, from Atos Origin, a leading international IT services
provider, is a modular system that supports all the principal
functions of payment card management - application, issuing,
acquiring, authorisation and collection.  Running on the IBM
mainframe platform CardLinK provides the bank with a high degree
of flexibility, interfacing with Visa, MasterCard and JCB networks
to ensure the bank meets the demanding business requirements of
the payment card industry.

Consulting with application specialists from Atos Origin's Beijing
China Headquarters, China Merchants Bank chose IAM from INNOVATION
as a solution to the undesirable situation they had found
themselves facing, after evaluation tests showed IAM cut CardLink
job run times by an average of 52%, reducing elapsed run times
from between 20% to 80%.  "IAM is a good tool for z/OS. It can
improve the performance of VSAM processing and reduce I/O when a
big job is running. Installation (of IAM) is quite easy.  It is
easy to use and we don't need to make a lot of changes to our
applications.  As the result, (using IAM) we can reduce the
executing time for critical batch jobs," Mr. Tao concluded.

                    About China Merchants Bank

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

                          *     *     *

China Merchants Bank continues to carry Moody's "D+" bank
financial strength rating.  The outlook is stable.

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


CHINA ORIENWISE: Moody's Reviews Ratings for Possible Downgrade
---------------------------------------------------------------
Moody's Investors Service has placed the Ba3 corporate family
rating and senior unsecured bond rating of China Orienwise Ltd
(China Orienwise) on review for possible downgrade.  This rating
action follows the announcement that the Board of Directors of
Credit Orienwise Group Ltd (COGL) -- the parent of China Orienwise
-- has launched an investigation into alleged fraud at COGL and
its subsidiaries, including China Orienwise.  COGL has also
obtained an ex parte mareva injunction against Zhang Kaiyong, the
founder, Chairman and CEO of China Orienwise prohibiting him from
dealing in his assets up to the amount stated in the allegations
and requiring him to inform COGL with details of these assets.

"The rating action reflects Moody's significant concern over any
damage that may have already caused to China Orienwise and the
potentially adverse impact that the outcome of the investigation
could have on the company's business, liquidity and financial
profiles," says Sally Yim, a Moody's AVP/Analyst.

"Moody's believes that the injunction against Mr. Zhang signifies
that the allegations are very serious.  While the investigation is
still in the preliminary stage, it would already have a negative
impact on the company's business franchise due to reputation
risk," adds Ms. Yim.

"Given the highly specialized nature of China Orienwise's business
and the important influence of Mr. Zhang, the investigation
highlights the 'key man risk' present at the company," says
Ms. Yim. "Mr. Zhang effectively owns 53.76% of the company."

Moody's review will focus on the developments and potential
outcome of the investigation on the company's management team,
business franchise, and financial position.  Further, Moody's will
evaluate the company's corporate governance practices.  Any new
materially adverse information emerging from the investigation, or
the departure of Mr. Zhang and/or other senior management, or any
material control weaknesses could lead to a ratings downgrade.

At the same time, given the company's business concentration in
Shenzhen and the deteriorating credit environment in China,
Moody's is cautious of the quality of its guarantee and entrusted
loans granted to small- and medium-sized enterprises (SMEs).
These SMEs are currently subject to higher labor and input costs,
tighter credit terms and the drop in property prices.  Any
significant deterioration in China Orienwise's financial
performance could also lead to a ratings downgrade.

Moody's placed this rating for possible downgrade:

   * China Orienwise Ltd -- corporate family rating and senior
     unsecured bond rating both at Ba3.

China Orienwise Limited, headquartered in Shenzhen, is 100% owned
by its parent, Credit Orienwise Group Limited and is one of the
largest private guarantee companies in China.  As of
December 2007, it had total assets of RMB4.1 billion
(US$586 million).


GREENTOWN CHINA: Moody's Downgrades Sr. Unsecured Rating to B1
--------------------------------------------------------------
Moody's Investors Service has downgraded Greentown China Holdings
Limited's senior unsecured bond rating to B1 from Ba3.  At the
same time, Moody's has affirmed Greentown's Ba3 corporate family
rating.  The ratings outlook remains negative.

"The downgrade reflects increased legal and structural
subordination risks, in view of the higher-than-expected secured
and subsidiary debt-to-total assets ratio of 24% in June 2008,"
says Kaven Tsang, an AVP analyst in Moody's.

"In addition, the likelihood that this ratio will decline is low
in the near term because the company has to predominately rely on
onshore borrowings at the PRC subsidiary/project level to fund its
business and construction, given the tight international credit
market," says Mr. Tsang.

"The Ba3 corporate family rating is affirmed, supported by the
company's solid execution of its sales plan with satisfactory
presales in January-August and the successful achievement of its
business target this year could provide some liquidity support,"
says Mr. Tsang.

"Meanwhile, Greentown's adjusted debt/capitalization ratio had
risen above 60% as of June 2008 and will maintain at such level in
the near-to-medium term, as the company raises more bank debt to
fund its expanding construction work.  This ratio is at the high
end of Moody's expectations," says Mr. Tsang.

"The negative outlook reflects Greentown's weakened financial
profile with increased leverage and uncertainties associated with
the company's ability to maintain balance sheet liquidity, while
pursuing its rapid business growth and servicing its sizable
committed payments," adds Mr. Tsang.

The ratings could undergo a downgrade if: 1) Greentown's liquidity
position deteriorates as evident by weakened balance sheet
liquidity, lower-than-expected property presales, and reduced
access to bank funding; and/or 2) the company continues to execute
aggressive debt-funded land acquisitions, such that adjusted
debt/capitalization consistently stays above 60-65%.

The ratings are unlikely to be upgraded, given the negative
outlook.  However, the outlook could revert to stable if Greentown
successfully achieves its sales plan and demonstrates strong
financial discipline, as reflected by the maintenance of:
1) stable balance sheet liquidity; and 2) its overall credit
profile with adjusted debt/capitalization at around 60%.

Greentown China Holdings Ltd (Greentown) is one of the major
property developers in China with a primary focus in Hangzhou and
Zhejiang Province.  It has a land bank spread over 25 cities and
with an attributable gross floor area (GFA) of 16 million square
meters.


ZTE CORP: To Invest CNY6 Billion for Xi'an Facility
---------------------------------------------------
ZTE Corporation will invest CNY6 billion (US$882 million) over
several years for a facility in Xi'an that manufactures and
research next-generation mobile communications, Zhu Shenshen of
Shanghai Daily News reports.

The company, the report relates, will work on the home-grown TD-
SCDMA (time division-synchronous code division multiple access)
and other 3.5G and 4G (fourth generation) technologies and related
products at the plant.

According to the report, the value of the facility's output is
likely to be CNY18 billion annually, of which CNY2 billion will be
contributed by its software business.

"The 4G is in the schedule but it still takes a long period for
the services to debut in China," the news agency cited Zhu
Pengjun, assistant director of Shanghai Research Center of
Wireless Communication, as saying.

Besides Xi'an facility, ZTE has plants in Tianjin and Shenzhen as
well as several research centers nationwide including Shanghai,
the report adds.

                           About ZTE

ZTE Corporation -- http://www.zte.com.cn --is a leading global
provider of telecommunications equipment and network solutions.
The ZTE product range is the most complete in the world - covering
virtually every sector of the wireline, wireless, service and
terminals markets.  The company delivers innovative, custom-made
products and services to customers in more than 135 countries,
helping them to achieve continued revenue growth and to shape the
future of the world's communications.  ZTE commits around 10% of
annual turnover to research and development and takes a leading
role in a wide range of international bodies developing emerging
telecoms standards.  It is the fastest growing telecoms equipment
company in the world, and is China's only listed telecoms
manufacturer, with shares publicly traded on both the Hong Kong
and Shenzhen Stock Exchanges.

                       *     *     *

The Troubled Company Reporter-Asia Pacific reported on April 24,
2008, that Fitch Ratings affirmed ZTE Corporation's Long-term
foreign currency and local currency Issuer Default Ratings at
'BB+'.  The rating Outlook remains Stable.

In December 2006, Fitch Ratings assigned ZTE Corp. Long-term
foreign and local currency Issuer Default ratings of 'BB+'.  The
rating Outlook is Stable.



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

ART CONCORD: Creditors to Hold Meeting on September 30
------------------------------------------------------
The creditors of Art Concord Limited will meet on September 30,
2008, at 2:30 p.m., for the purposes mentioned in Sections 241,
242, 243 and 244 of the Companies Ordinance.

The meeting will be held at the 18th Floor of So Tao Centre, 11-15
Kwai Sau Road, Kwai Chung, in New Territories, Hong Kong.


CHARGEURS WOOL: Final Meeting Slated for October 10
---------------------------------------------------
A final meeting will be held for the members of Chargeurs Wool
Sales (Hong Kong) Company Limited on October 10, 2008, at
4:30 p.m., at the Level 28 of Three Pacific Place, in 1 Queen's
Road East, Hong Kong.

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


GOLDEN BRIDGE: Final Meetings Set for October 8
-----------------------------------------------
The members and creditors of Golden Bridge International Finance
Limited will hold their final meetings on October 8, 2008, at 3:00
p.m., to receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The meeting will be held at Ferrier Hodgson Limited, 14th Floor of
The Hong Kong Club Building, in 3A Chater Road, Hong Kong.


LINUX PROFESSIONAL: Law Yui Lun Steps Down as Liquidator
--------------------------------------------------------
On August 26, 2008, Law Yui Lun ceased to act as liquidator of
Linux Professional Institute Limited.

The company's former Liquidator can be reached at:

          Law Yui Lun
          Prosperous Building
          Room 502, 5th Floor
          48-52 Des Voeux Road Central
          Central, Hong Kong


MASS FUNDS: Members to Hear Wind-Up Report on October 9
-------------------------------------------------------
The members of Mass Funds Limited will hold their final meeting on
October 9, 2008, at 10:30 a.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The meeting will be held at the 35th Floor of One Pacific Place,
in 88 Queensway, Hong Kong.


ORLIMA INVESTMENTS: Yuen and Robert Quit as Liquidators
-------------------------------------------------------
On August 29, 2008, Tai Hay Yuen and Kong Tak Wing ceased to act
as liquidators of Orlima Investments Limited.

The company's former Liquidators can be reached at:

          Tai Hay Yuen
          Kong Tak Wing
          Tai Kong Corporate Advisory Limited
          Chinachem Tower, 21st Floor
          34-37 Connaught Road Central
          Hong Kong


PACIFIC ASIA: Final Meeting Slated for October 6
------------------------------------------------
The members of Pacific Asia Resources Limited will meet on Oct. 6,
2008, at 11:00 a.m., at the 12th Floor of 3 Lockhart Road, in
Wanchai, Hong Kong.

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


SHUN LOONG: Members to Hear Wind-Up Report on October 8
-------------------------------------------------------
The members of Shun Loong Nominees Limited will meet on October 8,
2008, at 10:00 a.m., at Rooms 2201-2202 of Admiralty Centre,
Tower I, in 18 Harcourt Road, Hong Kong.

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


SUN SHING: Final Meeting Slated for October 8
---------------------------------------------
The members and creditors of Sun Shing Watch Limited will meet on
October 8, 2008, at 2:00 p.m. and 2:30 p.m. respectively, at
Office B, 4th Floor of Kiu Fu Commercial Building, 300 Lockhart
Road in Wan Chai, Hong Kong.

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


VISION TECHNOLOGY: Creditors' Meeting Set for September 26
----------------------------------------------------------
The creditors of Vision Technology Corporate Limited will meet on
September 26, 2008, at 11:00 a.m., to appoint a liquidator and to
consider other matters relevant to the company's wind-up.

The meeting will be held at Room 202, 2nd Floor of Duke of Windsor
Social Service Building, 15 Hennessy Road, in Wanchai, Hong Kong.



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

BALLY TECHNOLOGIES: Moody's Assigns Ba3 Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service assigned a Ba3 Corporate Family rating
and Ba3 Probability of Default rating to Bally Technologies, Inc.
It also assigned a Ba3 rating to both the company's proposed
US$225 million senior secured term loan and US$75 million senior
secured revolving credit facility.  The new facilities will be
used to refinance the company's existing bank facilities.  Moody's
also assigned a Speculative Grade Liquidity rating of SGL-2.  The
ratings are subject to review of final documentation. The ratings
reflect Bally's small scale, technology and game development
risks, the need for continued spending on research and
development, the risk that player acceptance of Bally's games
could wane, and competition with a larger better capitalized
company. Ratings are supported by an improved product line-up,
rising returns and margins, low leverage, and strong interest
coverage.  As of June 30, 2008, Debt/EBITDA is modest at 1.2
times, with interest coverage (as measured by EBITDA-
CAPX/interest) solid for the rating at 5.6 times based upon
Moody's standard analytic adjustments.  Bally's operating
performance has improved over the past few years due to the
conversion to a single operating platform, the roll-out of popular
game titles pursuant to profitable lease arrangements, continued
leadership in gaming systems, and operating leverage from a
growing installed base of gaming units.

The Speculative Grade Liquidity rating of SGL-2 reflects Moody's
expectation that Bally can fund all operating and capital
investment needs internally, that the company can maintain a
reasonable level of availability under the revolving credit
facility, and that it will maintain ample head-room under
financial covenants.

Ratings assigned:

Bally Technologies, Inc.

   -- Corporate family rating of Ba3

   -- Probability of default rating of Ba3

   -- US$75 million senior secured revolving credit facility
      at Ba3 (LGD 4, 51%)

   -- US$225 million senior secured term loan at Ba3 (LGD 4, 51%)

Headquartered in Las Vegas Nevada, Bally Technologies, Inc.
(Bally) is a diversified gaming company that manufactures,
distributes and operates games devices and computerized monitoring
and accounting systems for gaming devices sold to the legalized
gambling industry.  The company also operates the Rainbow Casino
in Vickburg, Mississippi.


MARCK BIOSCIENCES: CRISIL Rates Rs.805 Mil. Facilities at 'B+'
--------------------------------------------------------------
CRISIL has assigned its bank loan ratings of 'B+/Stable/P4' to the
various bank facilities of Marck Biosciences Ltd (Marck
Biosciences).

  Rs.617.50 Million Term Loans          B+/Stable (Assigned)
  Rs.187.50 Million Cash Credit*        B+/Stable (Assigned)
  Rs.72.50 Million Letter of Credit**   P4(Assigned)

* Interchangeable with Working Capital Demand Loan, Foreign Bill
Purchase, Export Packing Credit-Packing Credit in Foreign Currency
and Inland Bill Purchase/Discounting upto specified limits

** Interchangeable with Bank Guarantee upto specified limits

The ratings reflect the diversified geographic and customer
profiles in Marck Biosciences' revenue portfolio; efficient, low-
cost manufacturing capability with form-fill seal (FFS)
technology; and expectation of robust growth in sales in the
international markets.  These rating strengths are, however,
partly offset by Marck Biosciences' recent delays in payments to
lenders, market risks inherent in a competition intense industry
and aggressive expansion plans.

Outlook: Stable

CRISIL expects Marck Biosciences to maintain its business risk
profile over the medium term.  The outlook may, however, be
revised to 'Positive' if Marck Biosciences makes debt repayments
on time in future, and if its capital structure improves
considerably from current levels.  Conversely, the outlook may be
revised to 'Negative' if the company's performance on these
parameters weakens further, and the company continues to make
delayed payments to lenders.

                     About Marck Biosciences

Marck Biosciences began operations as a parenteral manufacturer in
1995, as a closely-held, unlisted company.  In the domestic
market, the company sells fluid therapy products, injectables,
formulations and diluents to hospitals.  In the contract
manufacturing segment, Marck Biosciences manufactures injectables,
formulations, ophthalmic and respiratory solutions, nebulae and
diluents for Indian pharmaceutical companies.  Marck also sells
fluid therapy products in more than 60 countries in Africa, Latin
America, East Europe and South East Asia.  Some products are also
supplied to countries like USA, Australia and Brazil.  The
products are registered in 23 countries, and registration for 48
products is being processed in 16 countries.  The company's
facility, at Kheda, Gujarat, manufactures large-volume parenterals
(LVPs) and small-volume parenterals (SVPs).  The company has
expanded its current line of business, and initiated production of
irrigation solutions, nasal drops, wound care products,
respiratory and ophthalmic solutions, and diluents from January
2008.  For 2007-08, Marck Biosciences reported a profit after tax
(PAT) of Rs.39.5 million on net sales of Rs.463.3 million, as
against a PAT of Rs.24.9 million on net sales of Rs.324.5 million
for 2006-07.


VEDANTA RESOURCES: Moody's Reviews Ratings for Possible Downgrade
-----------------------------------------------------------------
Moody's Investors Service has placed the Baa3 corporate family
rating and the Ba1 long-term senior unsecured rating of Vedanta
Resources plc (Vedanta) on review for possible downgrade.  The
rating action follows the company's announcement that it will more
than double its aluminium capacity to 2.6 mtpa with an overall
cost of US$9.8 billion.

"The rating action reflects Moody's concern that such capital
investment would weaken Vedanta within its ratings depending on
the additional debt to be raised, combined with material project
execution risks" says Ivan Palacios, a Moody's AVP/Analyst.

Moody's also notes Vedanta's additional capital requirement in
relation to the recently-announced acquisition of Asarco, the
planned buy-out of minority stakes in Hindustan Zinc Ltd and
BALCO, and the construction of substantial power generation
capacity.  Accordingly, total capital investment requirement over
the next four years is estimated at around US$18 billion.

"While Vedanta's financial leverage is currently low, the
combination of these substantial initiatives will materially
weaken its credit metrics, which may exceed the tolerance set for
the rating depending on the planned funding structure", says
Mr. Palacios.

Vedanta also announced a plan to simplify its corporate structure
which will see the company increase its direct shareholding in
Sterlite Industries Ltd from 57% to 73%.  Sterlite is a major
subsidiary within the Vedanta group.  Moody's sees the
simplification of the corporate structure as a positive step,
albeit it remains relatively complex, as Vedanta will not fully
own all of its operating subsidiaries.

The review will address: 1) funding strategy for the expansion
plan and consequent impact on financial leverage and debt coverage
metrics; and 2) execution risk related to the announced projects,
including availability of raw material such as bauxite.  The
review will also incorporate Vedanta's expansive growth strategy
and other strategic initiatives that could emerge over the medium
term.

Headquartered in London, Vedanta Resources plc is a metals and
mining company focusing on integrated zinc and alumina/aluminum as
well as copper smelting and refining.  Its operations are
predominantly located in India. It is listed on the London Stock
Exchange and is 54% owned by Volcan Investments Ltd.


* CRISIL: Equity Funds Out-Perform Bellwether Indices in August
---------------------------------------------------------------
Diversified Equity funds, on an average, out-performed the S&P CNX
Nifty and Sensex in the month of August led by the out-performance
of midcap stocks vis-ŕ-vis large caps, CRISIL said in a statement.
As most diversified equity funds have a fair exposure to midcap
stocks, this has helped them boost their returns in August.  In
addition, the out-performance is a result of auto, banking, IT and
FMCG stocks doing well in the month. 237 schemes out of 335
schemes in the equity fund category, outperformed the S&P CNX
Nifty in August.  Top performers in the category belonged to ELSS
schemes as well as general equity schemes.  Franklin India
Taxshield 99, Fidelity India Special Situations Fund and Lotus
India Midcap Fund were the top three gainers.

                 All CRISIL Indices Post Positive Returns

All CRISIL indices posted positive returns in August.  Equity
based indices lead the charts when analyzed for the month as a
whole.  The hybrid CRISIL Fund~bX (which tracks balanced funds)
surged the most during the month by 2.83 per cent, benefiting from
the good showing of both equities and debt.

This was a classic case of benefits being derived from
diversification into debt and equity as for some periods in the
month positive movements on the debt side cushioned negative
movements on the equity side, thus causing balanced funds to
out-perform equity funds on an average for the month taken as a
whole.

The CRISIL Fund~eX (which tracks equity funds) closely followed it
with 2.49 per cent returns while the CRISIL MIPEX, (benchmark for
monthly income plans) which has a lower equity component, posted a
return of 0.79 per cent.

Among pure debt indices, CRISIL Fund~ Gilt Index (benchmark for
Gilt Funds) rose over 1 per cent while CRISIL Fund~dX (which
tracks Long-Term Bond Funds) ended up 0.75 per cent.  The CRISIL
STBEX (benchmark for Short-Term Bond Funds) rose 0.68 per cent and
CRISIL~LX (which tracks liquid funds) gave a monthly return of
0.71 per cent Auto and Banking Sector stocks provide a kicker in
the equity funds category.

According to Mr. Krishnan Sitaraman, Head, CRISIL FundServices,
"Among the key outperforming sectors were interest rate sensitive
sectors such as auto and banking which topped the returns chart on
hopes of softening interest rates as inflation showed signs of
easing."

Availability of stocks at good valuations given the hammering
these sectors have taken in the past also contributed to the
uptick.

Adds Mr. Sitaraman, "Easing of inflation worries also helped the
FMCG stocks do well while the depreciating rupee helped IT stocks
outperform during the month."

JM Auto Sector Fund was the top performer in the equity category
with 9 per cent return. Lotus India Banking Fund followed it with
7 per cent returns over the past month. Franklin Infotech Fund
gained over 6 per cent while UTI-Software Fund returned 5 per cent
during the month.

                 Reliance Industries Continues to
                be the Top Pick Among Equity Funds

Reliance Industries Ltd. continued to be the most popular stock
among fund managers of diversified equity schemes over a 3-month
time frame followed by Bharti Televentures Ltd and Larsen & Toubro
Ltd.  Among industries, the banking sector continued to be the
most sought after industry for yet another month followed by
Computers - Software, Electrical Equipment and Pharmaceuticals.

Mutual funds' average AUMs witness rise after dipping for 2
consecutive months Indian mutual fund industry’s average assets
under management (AUM) rose by nearly 3 per cent in August, to
Rs.5.45 trillion from Rs. 5.31 trillion in July 2008 (including
fund of funds).  The rise in average AUM can be attributed to the
resurgent equity market as well as new fund offerings in Fixed
Maturity Plans (FMPs).  25 out of 34 fund houses witnessed rise in
their average AUM.  Reliance Mutual Fund continued to dominate the
asset charts with an average asset base of Rs 886 bn, up by almost
5 per cent from the previous month.  HDFC Mutual Fund moved up by
one notch to occupy the second spot.  Its average assets under
management rose by 6 per cent to Rs 539 bn.

                       About CRISIL Limited

CRISIL is India's leading Ratings, Research, Risk and Policy
Advisory Company.

                    About CRISIL FundServices

CRISIL FundServices is India’s leading provider of fund evaluation
and risk solutions to the Indian Mutual Fund industry.  Widely
acknowledged as the industry standard, CRISIL FundServices is the
official provider of valuation tools and market benchmarks.
Through its innovative analytics, benchmarks and analytical tools,
CRISIL FundServices has played a significant role in shaping
investor confidence and facilitating the introduction of best
practices in the Mutual Fund industry.



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

MEDCO ENERGI: Moody's Affirms B1 CFR; Outlook Remains Negative
--------------------------------------------------------------
Moody's Investors Service has affirmed the B1 corporate family
rating and B2 senior unsecured rating of P.T. Medco Energi
Internasional Tbk.  Outlook for the ratings remains negative.

"The B1 corporate family rating reflects Medco's ability to
maintain a competitive cost position with extensive experience in
Indonesia's E&P operating environment and benefiting form the
strong oil price environment", says Kathleen Lee, Moody's Vice
President and lead analyst for the company.

"However, the company faces significant reinvestment risk given
its depleting reserves which are undergoing long-term natural
decline", says Ms. Lee, adding "as such, the company will need to
deploy substantial capital to commercialize reserves over time.
Such capital spending will increase the company's leverage and
execution risk, particularly given its growth plans involve
investments in overseas locations where Medco's experience is
still evolving.  Moody's recognizes Medco's ability to monetise
some of its operating assets to meet its growth plans, albeit such
asset rebalancing would raise operating risk for the company.

The B2 senior unsecured rating is notched down from the B1
corporate family rating reflecting material structural and legal
subordination, given the preponderance of secured debt at the
operating company level.

The outlook for the ratings remains negative in view of Medco's
material refinancing risk, with debt totaling US$350 million due
in 2Q/3Q 2009.  Such refinancing, combined with the large capex
requirement in the next 12-18 months, will raise the company's
liquidity challenge, which is further exacerbated by its plan to
materially increase dividend distribution in 2008.

Moody's notes Medco's recent sale of its remaining stake in PT
Apexindo and its short-term plan to monetise some of its E&P
assets in Indonesia.  These steps, to the extent that they
eventuate, will alleviate the liquidity pressures facing Medco,
albeit they will likely reduce ongoing operating flexibility.
These challenges are compounded by uncertainties regarding: 1) its
reserve replacement plans in the overseas markets; and 2) its
strategy to commercialize its gas reserves and expand into LNG
production which would require significant capital over the medium
term.

The ratings could be lowered if: 1) there is evidence of inability
to secure alternative funding in the next four to five months to
meet debt maturities in 2Q/3Q 2009.  The rating could also be
pressured if the planned sale of Apexindo and some of its E&P
assets (Tuban) is not completed in the next three to six months or
if the proceeds are not applied predominantly towards debt
reduction.  A further weakening: 1) in Medco's reinvestment
parameters, as evidenced by 3-year F&D cost rising above
US$16/boe; or 2) in Medco's financial profile - as evidenced by
Adjusted Debt/Proved Developed Reserves rising above US$10.00,
would also pressure the rating.

Medco is predominantly an independent E&P company with additional
operations in methanol production, power generation and oil
service operations.  It has total proven reserves, mainly in
Indonesia, of approximately 148 million of barrels of oil
equivalent (boe) and production of 27 million boe in 2007.


PT PERTAMINA: To Allocate IDR43.6 Trillion to Increase Production
-----------------------------------------------------------------
PT Pertamina plans to allocate around IDR43.6 trillion until 2010
to increase its oil and gas production, Antara News reports citing
a company spokesman.

According to the report, the funds will be allocated for PT
Pertamina EP Cepu, Pertamina's Joint Operation (JOB) and
Production Sharing Contract (PSP) projects and Joint Operations
Board (BOB-BSP).

The report notes that the funds to be allocated to the three
parties will reach IDR16.5 trillion in 2009, IDR15.3 trillion in
2010 and IDR11.8 trillion in 2011.

Pertamina's Upstream Director Karen Agustiawan was cited by Antara
as saying that out of the IDR43.6 trillion budget, IDR12.22
trillion will be used to drill 136 new wells, that will increase
the company's gas and oil production.

                       About PT Pertamina

PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise.  The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company.  In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream.  Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day.  However, these refineries only cover about
three-quarters of domestic oil demand, the rest is supplied by
imports.

                         *     *     *

In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java.  Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.

A report by the Troubled Company Reporter-Asia Pacific on
August 21, 2008, said the company owes more than IDR300 billion
(US$32.72 million) to Indonesian Steel Cylinder Producers
Association (Asitab), and the Indonesian Gas Stove Producers
Association (Apkogi).


PT PERTAMINA: Won't Raise Gas Price as Requested by Government
--------------------------------------------------------------
Antara News reports that PT Pertamina acceded to the Indonesian
government's request to stop raising the price of gas on a monthly
basis for the time being for social and humanitarian reasons.

Pertamina's Marketing and Commercial Affairs Deputy Hanung Budya
was cited by Antara as saying that the company had canceled its
plan to raise the price of liquefied petroleum gas (LPG) in 12-kg
cylinders by IDR500/kg each month.

Earlier, the government banned Pertamina from raising the prices
of liquefied petroleum gas in 12-kg and 50-kg cylinders, saying
that the Indonesian people cannot afford the rise because of their
low purchasing power, a report by the Troubled Company
Reporter-Asia Pacific on September 8 said, citing Antara.

The company also assured that LPG stocks would be enough until the
post-fasting month festivities, the News Agency cited Mr. Budya as
saying.

                       About PT Pertamina

PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise.  The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company.  In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream.  Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day.  However, these refineries only cover about
three-quarters of domestic oil demand, the rest is supplied by
imports.

                         *     *     *

In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java.  Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.

A report by the Troubled Company Reporter-Asia Pacific on
August 21, 2008, said the company owes more than IDR300 billion
(US$32.72 million) to Indonesian Steel Cylinder Producers
Association (Asitab), and the Indonesian Gas Stove Producers
Association (Apkogi).



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

LEHMAN BROTHERS: To Sell 55% Interest, Spin-Off Real Estate Assets
------------------------------------------------------------------
Lehman Brothers Holdings Inc. said that it intends to sell a
majority stake -- estimated to be approximately 55% -- in a subset
of its Investment Management Division.  The subset of businesses
includes the asset management, private equity and wealth
management businesses but excludes its middle market institutional
distribution business and the Firm's minority stakes in external
hedge fund managers.

The sale of a majority stake in the IMD Business will enhance
the Firm's already strong capital base.  Goodwill related to the
Neuberger Berman business will be eliminated, resulting in
significant improvement in the Firm's Tier 1 ratio and an
estimated increase of more than US$3 billion in tangible book
value.

The Firm also expects to maintain the diversification benefits of
retaining the majority of the pre-tax income of the Investment
Management Division.  It also ensures that the IMD Business has
the most attractive structure to continue to best serve the Firm's
clients and maximize growth opportunities.  The IMD Business will
continue to operate under the Lehman Brothers and Neuberger Berman
brands and clients will continue to be able to access all of the
capabilities of the Firm.

The Firm is in advanced discussions with a number of potential
partners for the IMD Business and expects to announce the details
of the transaction in due course.

Chairman and Chief Executive Officer Richard S. Fuld, Jr. said,
"This is an extraordinary time for our industry, and one of the
toughest periods in the Firm's history. The strategic initiatives
we have announced today reflect our determination to fundamentally
reposition Lehman Brothers by dramatically reducing balance sheet
risk, reinforcing our focus on our client-facing businesses and
returning the Firm to profitability."

                       Strategic Initiatives

Significant Reduction in Residential Mortgage and Commercial Real
Estate Lehman Brothers took several steps to significantly reduce
its real estate portfolio in the third quarter.  The Firm reduced
its residential mortgage exposure by 31% to US$17.2 billion.
Further, Lehman Brothers is formally engaged with BlackRock
Financial Management, Inc. to sell approximately US$4.0 billion of
the Firm's UK residential mortgage portfolio and expects to
complete the sale within the next few weeks.  Pro forma for this
transaction, the Firm's residential mortgage exposure is expected
to be reduced by 47% to US$13.2 billion.  Lehman Brothers also
reduced its commercial real estate exposure by 18% in the third
quarter from US$39.8 billion to US$32.6 billion.

            Spin-Off of Commercial Real Estate Assets

The Firm intends to spin off to its shareholders US$25 billion to
US$30 billion of its commercial real estate portfolio into a
separate publicly-traded company, Real Estate Investments Global,
in the first quarter of 2009.  The spin-off of REI Global will
strengthen Lehman
Brothers' balance sheet while preserving the value of the
commercial real estate portfolio for shareholders.

The concentration of positions in commercial real estate-related
assets has become a significant concern for investors and
creditors.  Therefore, Lehman Brothers believes that it is in the
best interests of all its constituents to separate these assets
from the rest of the Firm.  Transferring the vast majority of the
commercial real estate portfolio to REI Global will achieve the
following objectives:

-- REI Global will be appropriately capitalized to hold the CRE
    assets through the current economic cycle;

-- REI Global will be able to account for its assets on a hold-
    to-maturity basis;

-- REI Global is expected to hold its assets to maximize their
    value for shareholders;

-- REI Global will be able to manage the assets without the
    pressure of mark-to-market volatility; and
-- REI Global will not be forced to sell assets below what REI
    Global believes to be their intrinsic value.

At the time of formation, REI Global will be appropriately
capitalized through the transfer of common equity and provision of
debt financing, which the Firm may syndicate as markets
normalize.  REI Global will own a high quality portfolio of
assets, which is diversified by geography, property and lien type.
REI Global's primary focus will be to maximize shareholder returns
by selling assets or holding them to maturity, whichever provides
the greatest return.

REI Global will not make investments in new assets and any excess
cash flow will be returned to shareholders.

Through the creation of REI Global, Lehman Brothers achieves an
enterprise solution that removes the vast majority of commercial
real estate exposure from the Firm's balance sheet and
realizes a true sale of its commercial real estate assets while
maximizing their value.  Further, it enables shareholders to
benefit from the anticipated financial upside of the portfolio of
assets.

           Overview of Preliminary Third Quarter Results

Lehman Brothers reported a preliminary net loss of approximately
(US$3.9) billion, or (US$5.92) per common share (diluted), for the
third quarter ended August 31, 2008, compared to a net loss of
(US$2.  billion, or (US$5.14) per common share (diluted), for the
second quarter of fiscal 2008 and net income of US$887 million, or
US$1.54 per common share (diluted), for the third quarter of
fiscal 2007.

The net loss was driven primarily by gross mark-to-market
adjustments stemming from writedowns on commercial and residential
mortgage and real estate assets.

Net revenues (total revenues less interest expense) for the third
quarter of fiscal 2008 are expected to be negative (US$2.9)
billion, compared to negative (US$0.7) billion for the second
quarter of fiscal 2008 and US$4.3 billion for the third quarter of
fiscal 2007.  Net revenues for the third quarter of fiscal 2008
reflect negative mark-to-market adjustments and principal trading
losses, net of gains on certain risk mitigation strategies and
certain debt liabilities.

During the fiscal third quarter, the Firm is expected to incur
negative gross mark-to-market adjustments on assets of (US$7.
billion, including gross negative mark-to-market adjustments of
(US$5.3) billion on residential mortgage-related positions,
(US$1.7) billion on commercial real estate positions, (US$600)
million on other asset-backed positions and (US$200) million on
acquisition finance positions.

These mark-to-market adjustments were offset by US$800 million of
hedging gains during the quarter and US$1.4 billion of debt
valuation gains.  The Firm is also expected to record losses on
principal investments of approximately US$760 million.

In order to increase operating efficiency, the Firm has eliminated
approximately 1,500 positions since the beginning of the third
quarter in discretionary corporate areas and businesses that are
in secular decline.

The Firm has decided to reduce its annual common dividend to
US$0.05 per common share from US$0.68 per common share, enabling
the Firm to retain US$450 million annually.

                       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.


YOKOGAWA ELECTRIC: Inks JPY12BB Supply Deal w/ Rep. of Tatarstan
----------------------------------------------------------------
Yokogawa Electric Corp. has signed an agreement to supply control
systems for oil and petrochemical plants to be built in the
Russian Republic of Tatarstan, Jiji Press reports.

The company, the report relates, will supply such systems to plant
makers participating in the construction project, to be
implemented by a subsidiary of Russian energy firm Rosneft.

According to the report, Yokogawa Electric expects to receive
orders worth JPY7.5 billion in late 2008 or 2009 in the first
phase of the project.   Its order receipts are estimated to total
some JPY12 billion in all the three phases, the report says.

Yokogawa Electric Corporation -- http://www.yokogawa.co.jp-- is
a manufacturing company mainly engaged in the manufacture and
sale of measurement control equipment and information equipment.
The company manufactures measurement control equipment and
information equipment through its subsidiaries, and sells the
equipment in the country, as well as overseas markets, including
Southeast Asian countries, European countries and the United
States, through its subsidiaries.  Yokogawa Electric also offers
engineering services and post-sale services.  Along with one of
its subsidiaries, the Company also manufactures security-related
equipment.  Its other business activities encompass the real
estate-related business and the provision of recruitment
services.  Headquartered in Tokyo, Yokogawa Electric has 92
subsidiaries and 14 associated companies in Japan, as well as
overseas markets, such as the United States, Singapore, the
Netherlands, Brazil, Korea and China.

                        *     *     *

The company continues to carry Mikuni Credit Ratings' BB Senior
Debt and Mortgage Debt Ratings.


* JAPAN: Negative Outlook for P&C Insurance Industry, Says Moody's
------------------------------------------------------------------
The outlook for the Japanese property and casualty (P&C) insurance
industry is negative, according to a new report from Moody's
Investors Services.  This is attributable mainly to the limited
growth opportunities for auto insurance.  Nevertheless, the
negative business environment is incorporated in current ratings
and not beyond the current rating expectations.  Thus, all the
Japanese P&C insurers' ratings have a stable outlook.

The report, entitled "Industry Outlook: Japanese Property and
Casualty Insurance," comments that the major Japanese P&C
insurers' portfolios are concentrated on domestic auto insurance
products, where growth opportunities seem to be limited.  Given
the stagnating Japanese population, the likelihood that the number
of automobiles owned in Japan will keep increasing is not high.
Indeed, they decreased in FYE3/2008 for the first time since the
World War II (year over year).  Although insurers have enhanced
their profitability by raising premiums, if the number of insured
were to drop significantly -- and continue to decline for any
length of time -- profit growth would be at best difficult to
achieve.

One way to enhance profitability would be to strengthen overseas
P&C insurance businesses.  Indeed, the acquisition of overseas P&C
businesses by the major insurers seems to be gaining some
momentum.  "In the case of insurers who are strengthening their
overseas businesses, the type of risk they take will be monitored.
In view of these risks, the extent to which exposure to
unpredictable insurance risks or long-tail products increases will
be a rating consideration," comments Masahiko Miwa, Moody's AVP-
Analyst and author of the report.

In Moody's view, loss developments were underestimated for
liability coverage products for bodily injury, for example, which
are relatively long-tail businesses in the auto insurance segment
of the major Japanese P&C insurers.  Insurers' earnings are
affected by losses in the year as well as changes in loss
development estimates.  And a deficient loss reserve means
frequent upward revisions of ultimate losses for past accidents.
"Whether the relatively high level of adverse loss reserve
development in FYE3/2008 is one-off or not will be monitored,"
Mr. Miwa writes.

In FYE3/2008, some insurers incurred relatively large investment
losses but typically did not face big drops in earnings from the
previous fiscal year thanks to a limited number of natural
disasters.  That said, insurers can incur losses from investment
portfolios and insurance payments due to natural disasters in any
fiscal year.  At the major Japanese insurers, both catastrophe
risks and large investment risks are regarded as factors that lead
to volatility in earnings and capital.


* JAPAN: Trade Surplus Falls for Fifth Straight Month
-----------------------------------------------------
Japan's current-account surplus shrank further in July as the
nation's import bill hit a record high amid increased prices for
oil and other raw materials, Akane Vallery Uchida of The Wall
Street Journal reports.

The Ministry of Finance, the report relates, said the surplus in
the current account fell for the fifth straight month, contracting
17.3% to JPY1.532 trillion (US$14.3 billion) in July from a year
earlier before seasonal adjustments.

According to the report, analysts said the comparatively sluggish
growth in exports amid high costs is likely to further eat into
corporate profits, weighing on capital expenditure plans and
suggesting little support from the corporate sector for the
overall economy.



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

AXESSTEL INC: Earns US$1.2 Million in 2008 Second Quarter
---------------------------------------------------------
Axesstel Inc. reported net income of US$1.2 million for the second
quarter ended June 29, 2008, compared to a net income of
US$273,000 in the second quarter of 2007.

Revenues for the second quarter of 2008 were US$31.6 million,
including data products revenue of US$23.5 million.  This compares
to revenues ofUS$28.0 million including US$11.9 million from data
products in the second quarter of 2007.  Revenue during the
quarter from data products and from sales in Europe Middle East
and Africa (EMEA) were US$23.5 million and US$10.5 million,
respectively.  Gross margin for the second quarter 2008 was
US$8.0 million, or 25% of revenue, compared to US$6.6 million, or
23% of revenue for the same period last year.

For the six months ended June 29, 2008, the company reported
revenue of US$56.3 million, compared toU S$53.2 million for the
first half of 2007.  Net income for the first half of 2008 was
US$1.5 million, compared to a net loss for the first half of 2007
of US$976,000.

Clark Hickock, chief executive officer of Axesstel, stated, "In
the second quarter, we executed our plan to grow the business
profitably and our success is attributable to our focus on both
top and bottom line results.  Our continued investment in
dedicated regional sales teams serving a diversified and global
customer base in emerging markets delivered revenue of
US$31.6 million.  This level of revenue, when combined with our
operating expense reductions, generated record net income for the
quarter of US$1.2 million with record EPS of US$0.05."

"On the innovation side, the launch of our new CDMA2000 1xEVDO
Rev. A fixed wireless phone began attracting strong interest from
operators, and we already have advanced orders.  As the emerging
markets increase investment in new technology, we have built a
pipeline of exciting new products to meet the demand for high
performance data and phone devices.  We set a 2008 goal to launch
12 products and have introduced seven to date.  We are looking
forward to the second half of 2008 as we are on track to launch
five more new products," Hickock added.

As of June 29, 2008, the company had approximately US$25.0 million
in backlog which is expected to be delivered in the third quarter.

Pat Gray, Axesstel's chief financial officer, stated, "At quarter
end, the company had cash and cash equivalents of US$1.4 million,
an increase of US$800,000 since the beginning of the year.  During
the quarter, we had sales of US$31.6 million, pushing accounts
receivable to US$38.7 million.  We financed US$10.4 million of
working capital against these accounts receivable, the majority of
which came from our Wells Fargo line of credit.  This financing is
a reflection of the quality of the sales we are making and a high
level of confidence in our execution.  We believe our strategic
banking relationships will provide us the necessary working
capital to grow our business."

               Accepts Orders on Open Account Terms

Commencing in 2007, sales shifted from predominantly Asian
countries, where commercial practices use letters of credit, to
Latin American countries, where standard commercial terms are open
accounts.  The company's largest account in 2007 was a customer in
Venezuela, which did not provide letters of credit and for which
the company could not obtain credit insurance or secure accounts
receivable financing.  Accordingly, the company could not borrow
against its accounts receivable from this customer to pay its
contract manufacturer for costs of goods sold.  This problem was
compounded when the Venezuelan government's foreign currency
exchange control arm, CADIVI, substantially delayed payments in
2007.  The delay in payment caused the company to fall behind in
payments to its contract manufacturer, who imposed shipment delays
and stopped ordering long lead time parts in the fourth quarter.
The company has subsequently collected the delayed payments from
2007, made payments to the contract manufacturer, and resumed
normal production levels.

                      Cash, Total Borrowings

At June 29, 2008, the company had cash and cash equivalents of
approximately US$1.4 million, and a negative working capital of
approximately US$557,000.  In addition, at June 29, 2008, accounts
receivables were US$38.7 million.  Currently the company's only
source of borrowing is secured by its accounts receivable.  At
June 29, 2008, these borrowings totaled US$10.4 million.

                          Balance Sheet

At June 29, 2008, the company's consolidated balance sheet showed
US$45.7 million in total assets,US$42.9 million in total
liabilities, and US$2.8 million in total stockholders' equity.

The company's consolidated balance sheet at June 29, 2008, also
showed strained liquidity with US$42.3 million in total current
assets available to pay US$42.9 million in total current
liabilities.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 29, 2008, are available for
free at http://researcharchives.com/t/s?31e5

                       Going Concern Doubt

The company experienced losses from operations from 2004 to 2007.
Because of the company's continuing net losses and negative
working capital position, Gumbiner Savett Inc., the company's
independent auditors, in their report on the company's
consolidated financial statements for the year ended Dec. 31,
2007, expressed substantial doubt about the company's ability to
continue as a going concern.

                          About Axesstel

Headquartered in San Diego, Calif., Axesstel Inc. (AMEX: AFT) --
http://www.axesstel.com/-- designs and develops fixed wireless
voice and broadband data products.  Axesstels product portfolio
includes broadband modems, 3G gateways, voice/data terminals,
fixed wireless desktop phones and public call office phones for
high-speed data and voice calling services.  The company delivers
innovative fixed wireless solutions to leading telecommunications
operators and distributors worldwide.  Axesstel's research and
development center is located in Seoul, South Korea.


CORECRID INC: Signs KRW9.9 Million Deal With a Korean-Based Firm
----------------------------------------------------------------
CoreBrid Inc. has signed a contract with a Korea-based company to
provide cutting, design and processing services for carrier block
back panel, Reuters reports.

According to the report, the contract amount is worth
KRW9,900,000,000.

Seoul-based CoreBrid Inc. previously known as Curon Inc. --
http://www.curon.co.kr-- is engaged in the provision of
diaphragms, vaporizers and Video On Demand servers.  The company
provides three main products: diaphragms and vaporizers, which
are used in gas meters, speakers, automobiles, medical
applications, heavy machinery, industrial valves and pumps; VOD
servers such as StreamXpert, which supply High Definition
Television (HDTV) multimedia content; and Telematics, which are
used in entertainment, games, digital multimedia players,
traffic information, satellites, digital versatile discs, TVs
and radios.

Korea Ratings gave Curon Inc.'s US$10 million convertible bond a
B- rating with a stable outlook on February 22, 2007.



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

AIR NEW ZEALAND: Cuts Fares to Australia by 15%
-----------------------------------------------
Air New Zealand Ltd will cut fares to Australia by an average 15
percent next month to boost passenger numbers amid slowing demand,
Gavin Evans of Bloomberg News reports.

According to the report, the new fares, effective Oct. 14,
coincide with a NZ$60 million ($40 million) investment in new
layouts and entertainment systems on the A320 jetliners and Boeing
Co. 767 aircraft the airline flies to Australia and the Pacific
Islands.

                   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.


ALLANBROOKE LIMITED: Commences Liquidation Proceedings
------------------------------------------------------
The High Court at Auckland held a hearing on Aug. 29, 2008, to
consider an application putting Allanbrooke Limited into
liquidation.

The application was filed on June 25, 2008, by the Registrar of
Companies.

The plaintiff's address for service is at:

          Mark Alexander Woolford
          Meredith Connell
          Level 17
          Forsyth Barr Tower
          55-65 Shortland Street
          Auckland

M. A. Woolford is the plaintiff's solicitor.


ALWYN INVESTMENT: Undergoes Liquidation Proceedings
----------------------------------------------------
The High Court at Auckland convened a hearing on Aug. 29, 2008, to
consider an application putting Alwyn Investments Limited into
liquidation.

The application was filed on June 25, 2008, by the Registrar of
Companies.

The plaintiff's address for service is at:

          Mark Alexander Woolford
          Meredith Connell
          Level 17
          Forsyth Barr Tower
          55-65 Shortland Street
          Auckland

M. A. Woolford is the plaintiff's solicitor.


ARAKE LIMITED: 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
Fatupaito, insolvency practitioners of Wellington and Auckland
respectively, as liquidators of Arake 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: Russell Fildes
          PricewaterhouseCoopers
          113-119 The Terrace (PO Box 243)
          Wellington
          Telephone: (04) 462 7015
          Facsimile: (04) 462 7492


AUSTRAL PACIFIC: 2nd Quarter Net Loss Narrows to US$2,529,194
-------------------------------------------------------------
Austral Pacific Energy Ltd.'s net loss decreased to US$2,529,194
in the quarter ended June 30, 2008, from 3,243,512 in the same
period last year.

Revenue for the current quarter increased to US$2,785,565 from
US$1,707,787 in the three months ended June 30, 2007.

The company's balance sheet as of June 30, 2008, showed  total
assets of US$58,797,370, total debts of US$48,334,265 and total
shareholders' equity of US$10,463,105.

As of June 30, 2008, Austral Pacific reported working capital
deficit with US$16,159,439 in total current assets available to
pay US$31,272,404 in total current liabilities.

Accumulated deficit as of June 30, 2008 stood at US$72,215,990
compared to US$63,118,912 as of December 31, 2007.

The company disclosed that it failed to generate net cash from
operating activities for the past three years.  The company said
its cash balances and working capital are not sufficient to fund
all of its obligations with respect to its on-going work program
requirements related to the exploration permits.

According to the company, it is operating under a waiver in
respect of its breaches of several covenants relating to its
Investec Bank (Australia) Ltd ("Investec") loan facility following
delays in completing the Cheal project in accordance with
established timelines.  The loan facility has been renegotiated,
with the key agreement being the full repayment of the facility
(currently US$25,373,032) on or before December 15, 2008 and hence
has been disclosed as a current liability.

As reported in the Troubled Company Reporter-Asia Pacific on
July 10, 2008, KPMG LLP raised substantial doubt about Austral
Pacific's ability to continue as a going concern after it audited
the company's financial statements for the year ended Dec. 31,
2007.

The auditor reported that the company has suffered recurring
losses from operations, has a working capital deficit and a net
capital deficiency and has also been unable to generate net cash
from operating activities.  In addition, the company is in breach
of several covenants relating to its bank loan facility.

Austral Pacific Energy Ltd. is a limited liability company
incorporated in British Columbia under the Business Corporations
Act (British Columbia).  The Company is domiciled in New Zealand.
The Company is primarily engaged in the acquisition, exploration,
appraisal and development and production from oil and gas
properties in New Zealand (and until the end of May 2008, Papua
New Guinea).


DEVERY DRAINAGE: Commences Liquidation Proceedings
--------------------------------------------------
The High Court at Invercargill held a hearing on Sept. 10, 2008,
to consider an application putting Devery Drainage and Earthworks
Limited into liquidation.

The application was filed on July 30, 2008, by R J Stewart
Limited.

The plaintiff's address for service is at:

          O'Neill Devereux
          248 High Street (PO Box 909)
          Dunedin

J. G. O'Neill is the plaintiff's solicitor.


FOUR BROTHERS: Commences Liquidation Proceedings
------------------------------------------------
The High Court at Auckland held a hearing on Sept. 5, 2008, to
consider an application putting Four Brothers Company Limited into
liquidation.

The application was filed on May 12, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

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

Sandra Joy North is the plaintiff's solicitor.


HIGH STREET: Placed Company Under Liquidation
---------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of High Street Investments Limited resolved that the
company be liquidated and that John Richard Palairet and Graham
Cameron Edwards, chartered accountants of Napier, be appointed as
liquidators.

Creditors and shareholders may direct their inquiries to:

          Sue Boys
          BDO Spicers Hawke's Bay
          86 Station Street (PO Box 944)
          Napier
          Telephone: (06) 835 3364
          Facsimile: (06) 835 3388


NGAMOTU PROPERTIES: Placed Company Under Liquidation
----------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Ngamotu Properties Limited resolved that the
company be liquidated and that Bruce Carlaw Richards, chartered
accountant, be appointed as liquidator.

Creditors and shareholders may direct their inquiries to:

          Bruce Carlaw Richards
          Staples Rodway Taranaki Limited
          109-113 Powderham Street
          New Plymouth
          Telephone: (06) 758 0956
          Facsimile: (06) 757 5081


STRATEGIC FINANCE: Won't Pay Interest Payment on September 15
-------------------------------------------------------------
Strategic Finance Limited disclosed in a regulatory filing that it
is continuing to progress its plan to submit a capital restructure
proposal to securityholders.

To ensure that all securityholders are treated equally pending the
capital restructure, Strategic Finance said that the company will
not be making the interest payment payable on Sept. 15, 2008, in
respect of debenture stock, subordinated notes and deposits.  The
company's board has also resolved that the company will not pay
the next dividend payable on the perpetual preference shares on
Oct. 15, 2008.

Perpetual Trust Limited, the trustee under Strategic Finance
Limited's debenture trust deed, has required that the company take
this action on the grounds that it is fair to all securityholders.

The decision not to pay the forthcoming perpetual preference share
dividend has been made in accordance with the terms of issue of
the perpetual preference shares which allow the board to elect not
to pay a dividend if, before the relevant dividend payment date,
the board of Strategic Finance ceases to be satisfied on
reasonable grounds that the company will, immediately after paying
the dividend, satisfy the solvency test set out in the Companies
Act 1993.

While the terms of the proposed capital restructure have yet to be
finalised, the current intention is that if the proposed capital
restructure is approved and implemented and the proposed sale of
Strategic Finance is completed, then any unpaid dividends on the
perpetual preference shares and unpaid interest on the debenture
stock, subordinated notes and deposits will be paid to
securityholders within a short period after implementation of the
capital restructure and completion of the sale.

                        About Strategic Finance

Headquartered in Wellington, New Zealand, Strategic Finance
Limited (NZE:SFLHA) -- http://www.strategicfinance.co.nz/--
operates as a specialist finance company offering financial
services, primarily to the property sector.  It has four main
business activities: Lending within the property sector; Non-
property lending and investments; Corporate advisory and
management services, and Underwriting services. Lending within
the property sector is its primary activity with a focus on
providing finance for property development and property
investment activities.  It was offering motor vehicle lending
under non-property lending and investments.  The Company, and in
some circumstances through its wholly owned subsidiary Strategic
Advisory Limited, provides specialist advisory and management
services to the property and corporate sectors for which it
receives fee income.  It may provide underwriting services.
These services include the underwriting of property related
share or debt securities offered by a promoter through a
registered prospectus.  It receives fees for such services.

Strategic Finance's parent company, Strategic Investment Group,
is wholly owned by an Australian-based finance company Allco HIT
Limited.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 8, 2008, Strategic Finance suspended redemptions of its
secured debenture stock and subordinated notes.  It also ceased
accepting subscriptions for debenture stock and subordinated notes
under its current prospectus and investment statement.

The TCR-AP reported on Sept. 2, 2008, Strategic Finance said that
Clarence Investments Limited has agreed terms and conditions with
Allco HIT Limited to purchase 100% of the shares in Strategic
Investment Group Limited which is the parent company of Strategic
Finance Limited.

Clarence Investments will be owned by the previous owners and
existing senior management of Strategic Finance(80.01%) and
Uberior Ventures Asia Pty Limited, an investment vehicle of BOS
International (Australia) Limited which is a member of the HBOS
Group, one of the world's largest financial services organisation
providing services to more than 23 million customers.  Uberior
will have the option to increase its shareholding to 49.99% to
reflect its financial contribution to Clarence Investments.


WAIMEA TYRES: Undergoes Liquidation Proceedings
-----------------------------------------------
The High Court at Nelson held a hearing on Sept. 3, 2008, to
consider an application putting Waimea Tyres Limited into
liquidation.

The application was filed on July 23, 2008, by R J Stewart
Limited.

The plaintiff's address for service is at:

          O'Neill Devereux
          248 High Street (PO Box 909)
          Dunedin

J. G. O'Neill is the plaintiff's solicitor.


* NEW ZEALAND: Central Bank Reduces Cash Rate to 7.5%
-----------------------------------------------------
The Reserve Bank of New Zealand today reduced the Official Cash
Rate (OCR) by 50 basis points from 8.0 percent to 7.5 percent.

Reserve Bank Governor Alan Bollard said: "The New Zealand economy
is experiencing a marked slowdown, led primarily by the household
sector.  The outlook for the global economy has deteriorated
further in the wake of continued financial market turmoil. In
addition, the New Zealand business sector is coming under pressure
from both rising costs and falling demand.  While domestic
activity is likely to pick up late this year as a result of
personal tax cuts, increased government spending and rising rural
incomes, we expect a prolonged period of household sector
adjustment and below-average growth.

"The weakness in economic activity is expected to translate into
lower inflation pressures in the medium term. Headline inflation
is expected to peak around 5 percent in the current September
quarter before trending down thereafter.  However, food price
inflation, exchange rate depreciation and higher wage costs will
tend to keep headline inflation at elevated levels through 2009.

"With medium-term inflation pressures expected to ease, it is
appropriate to move towards a less restrictive monetary policy
stance. Compared to the June Monetary Policy Statement, we have
brought forward some of the projected interest rate reduction, but
have not altered the expected overall decline. We believe this
response is warranted in light of the tightness of current credit
conditions and the time it will take to affect the actual interest
rates faced by households and businesses.

"Looking ahead, the scale and timing of further official cash rate
reductions will depend on signs of declining inflation pressures
and on exchange rate adjustments."


* NEW ZEALAND: Food Prices Up 2.7% in August, Statistics NZ Says
----------------------------------------------------------------
Food prices increased 2.7 percent in the August 2008 month,
Statistics New Zealand said.  This is the largest monthly increase
since July 1989, when the rate of GST increased from 10.0 to 12.5
percent.

All five subgroups recorded upward contributions to the latest
Food Price Index (FPI) increase, with the most significant upward
contribution coming from the fruit and vegetables subgroup (up 9.6
percent).  Within this subgroup, the main contribution came from
vegetable prices (up 14.5 percent), driven by higher prices for
lettuce (up 33.6 percent) and tomatoes (up 42.8 percent).  If
vegetable prices had remained constant at July 2008 prices, the
FPI would have risen 1.3 percent.

Vegetable prices have increased by a total of 36.4 percent over
the past four months, with growing conditions hampered by
unusually wet weather.

Other subgroups that made significant upward contributions were
grocery food (up 1.9 percent) and meat, poultry and fish (up 2.6
percent).  The most significant upward contributions to these
subgroups came from, in order of significance, higher prices for
cakes and biscuits (up 8.0 percent), fresh milk (up 4.4 percent),
and lamb (up 16.8 percent). The most significant downward
contribution came from lower prices for yoghurt (down 8.9
percent).

Food prices rose 10.6 percent in the year to August 2008, the
largest annual increase since the year to May 1990.  All five
subgroups recorded upward contributions to the annual increase,
with the most significant being the grocery food subgroup (up 13.1
percent).  Within this subgroup, the main contributions came from
higher prices for cheese (up 43.8 percent), bread (up 17.4
percent), fresh milk (up 12.5 percent), and butter (up 87.6
percent).

The fruit and vegetables subgroup rose 19.1 percent in the year to
August 2008.  The most significant upward contribution came from
higher prices for lettuce (up 145.3 percent).



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

BEST MARINE: Court Enters Wind-Up Order
---------------------------------------
On August 29, 2008, the High Court of Singapore entered an order
to have Best Marine Shipping Management Pte Ltd's operations wound
up.

The company's liquidator is:

          The Official Receiver
          Insolvency & Public Trustee's Office
          The URA Centre (East Wing)
          45 Maxwell Road #06-11
          Singapore 069118


ELTRACO INTERNATIONAL: Court to Hear Wind-Up Petition on Sept. 19
-----------------------------------------------------------------
A petition to have Eltraco International Pte Ltd's operations
wound up will be heard before the High Court of Singapore on
September 19, 2008, at 10:00 a.m.

Pine View Holdings Pte Ltd filed the petition against the company
on August 27, 2008.

Pine View's solicitor is:

          Messrs. Tan Rajah & Cheah
          80 Raffles Place
          #58-01 UOB Plaza 1
          Singapore 048624


QNITY NETWORKS: Creditors' Proofs of Debt Due on September 19
-------------------------------------------------------------
Qnity Networks Pte Ltd, which is in voluntary liquidation,
requires its creditors to file their proofs of debt by Sept. 19,
2008, to be included in the company's dividend distribution.

The company's liquidators are:

          Chee Yoh Chuang
          Lim Lee Meng
          c/o 18 Cross Street
          #08-01 Marsh & McLennan Centre
          Singapore 048423


SURGICAL SYSTEMS: Court Enters Wind-Up Order
--------------------------------------------
On August 29, 2008, the High Court of Singapore entered an order
to have Surgical Systems Singapore Pte Ltd's operations wound up.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          The Official Receiver
          The Insolvency & Public Trustee's Office
          URA Centre (East Wing)
          45 Maxwell Road, #05-11/#06-11
          Singapore 069118



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

KING'S TOWN: Fitch Puts BB+ Long-Term Issuer Default Rating
-----------------------------------------------------------
Fitch Ratings has assigned ratings to Taiwan-based King's Town
Bank (KTB), as follows:

     -- 'BB+' long-term Issuer Default Rating,
     -- 'B' short-term IDR,
     -- 'A-(twn)' national long-term rating,
     -- 'F1(twn)' national short-term rating,
     -- Individual rating 'C/D',
     -- Support '5', and
     -- Support Rating Floor 'NF'.

The outlooks on the IDR and national long-term rating are stable.

"KTB's ratings reflect the bank's reduced credit risk profile,
satisfactory asset quality, and adequate capitalisation and
liquidity; albeit offset by weaknesses including its modest
profitability, relatively small franchise and limited diversity in
terms of geographic coverage and revenue mix," said Jonathan Lee,
Senior Director with Fitch's financial institutions team based in
Taipei.

With regards to KTB's earnings performance, Fitch anticipates a
moderate improvement in the bank's pre-provision operating profit
in 2008, underpinned by improvements in lending spreads, fees on
asset management sales as well as cost reductions; although the
agency expects that KTB's plan to raise its loan loss reserves
further (to above 60%) would offset somewhat its bottom-line
results.

Fitch notes the new management team which has joined KTB --
following the ownership reshuffle in 2005 -- to streamline its
operating costs, manage down its risk exposures and clean up its
asset portfolio.  The bank is working on branch relocation - aimed
at improving franchise productivity -- as well as making
improvements in credit risk management, which continues to be the
management's primary focus as reflected in the bank's sustained
efforts in asset cleaning.

Nevertheless, corporate governance may be a concern owing to the
ownership reshuffle, given the majority shareholding (29.8%) of
the Tsai family and their investment companies (Tsai family
group); who emerged as the largest shareholder after it helped
recapitalise KTB through a TWD3.6 billion rights issue in 2005 and
controls three of the eight board seats.  However, evidences to
date mitigating this concern include the installation of
independent board directors, transparency in financial auditing
and disclosures, and well-controlled related party credit
exposures, which in Fitch's view, indicate satisfactory
performance in this regard.

KTB has satisfactory asset quality; its NPLs were 2.2% of gross
loans at end-H108, with adequate loan loss reserves of 58.5%.
Underlying collateral security of the bank's credit portfolio
appears strong, providing risk mitigating benefits.  Despite its
small deposit-taking franchise, KTB has an acceptable liquidity
position thanks to its steady deposit base and conservative loan
acquisition.  The bank is adequately capitalised, with a Tier 1
ratio of 11.3% and a CAR ratio of 11.7% at end-H108.

KTB was formerly a Tainan-based cooperative savings company
established in 1948.  Its majority shareholder, the Tsai family
group, also owns the publicly listed King's Town Construction
(KTC), a Kaohsiung-based construction company.



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

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

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

AUSTRALIA

ALLSTATE EXPLORA                  ALX      19.47      -55.69
ALLSTATE EXPL-PP                ALXCC      19.47      -55.69
ARC EXPLORATION                   ARX      62.77      -15.88
AUSTAR UNITED                     AUN     525.67     -234.87
ANTARES ENERGY L                  AZZ      16.20       -4.36
BIRON APPAREL LT                  BIC      19.71       -2.22
CROESUS MINING                    CRS      16.00      -13.81
ETW CORP LTD                      ETW     103.76      -50.22
FULCRUM EQUITY L                  FUL      40.08       -8.00
IRONCLAD MINING                   IFE      20.07     -122.33k
INTELLECT HLDGS                   IHG      18.25      -15.49
KH FOODS LTD                      KHF      38.40       -6.79
KH FOODS LTD-PRF                KHFPA      38.40       -6.79
LAFAYETTE MIN                     LAF     105.24     -190.86
METAL STORM LTD                   MST      16.47       -2.90
RESIDUAL ASSC-EE                RAGXF     597.33     -126.96
TOOTH & CO LTD                    TTH     127.93      -90.21
VERTICON GROUP                    VGP      48.49       -2.67


CHINA

SHENZ SEG DASH-A               000007     101.02       -1.14
SHENZ CHINA BI-A               000017      29.38     -244.53
SHENZHEN SHENXIN               000034      44.99     -113.37
CHINA KEJIAN-A                 000035      65.12     -167.31
SHENZHEN KONDA-A               000048     155.01      -24.45
HUNAN ANPLAS CO                000156      84.00      -81.35
ZHANGJIAJIE TO-A               000430      51.01       -8.25
DANDONG CHEM F-A               000498     115.94      -91.60
SUCCESS INFORMAT               000517      30.12      -14.83
GUANGDONG MEIYA                000529      66.44      -62.41
GUANGXIA YINCH-A               000557      53.46      -61.33
CHANG LING GROUP               000561      49.68     -115.81
QINGHAI SALT L-A               000578     105.64       -4.91
GUANGMING GRP FU               000587      62.37      -12.08
FUJIAN CFC IND-A               000592      24.20      -19.62
YUEYANG HENGLI-A               000622      40.27  -14.34
LAN BAO TECH INF               000631      29.44      -22.70
CHINA LIAONING-A               000638      15.43       -5.70
CHENGDU UNION-A                000693      59.53     -188.88k
JIAOZUO XIN'AN-A               000719      50.82      -25.45
FUJIAN SANNONG-A               000732      64.42      -90.24
CHONGWING INTL-A               000736      24.75      -13.38
SICHUAN DIRECT-A               000757     128.55     -102.62
CHINESE.COM LOGI               000805      12.72      -20.57
SHENZHEN DAWNC-A               000863      36.85     -142.58
STELLAR MEGAUNIO               000892      64.93     -162.46
HUNAN AVA HOLDIN               000918     176.94      -11.26
GUANGDONG KEL-A                000921     604.98      -86.30
ANHUI KOYO GROUP               000979      64.28      -30.78
SHENZ CHINA BI-B               200017      29.38     -244.53
AMOI ELECTRONICS               600057     414.93      -30.40
SUNTIME INTERN-A               600084     372.80      -50.59
SHANG WORLDBES-A               600094     327.98     -175.17
MIANYANG GAO-A                 600139      30.66      -12.44
HEBEI BAOSHUO CO               600155     313.38     -212.29
HUATONG TIANXI-A               600225      73.84      -41.14
TAIYUAN TIANLON                600234      12.69      -51.58
TIBET SUMMIT IND               600338      73.50      -16.42
CHONGQING CHANG                600369      98.87      -62.64k
QINGHAI SUNSHI-A               600381      47.31      -49.66
WINOWNER GROUP C               600681      21.50      -81.28
HEBEI JINNIU C-A               600722     379.30       -2.89
SUNTEK TECHNOLOG               600728      44.69      -22.95
FUJIAN START-A                 600734     105.66      -14.34
TIANJIN MARINE                 600751      75.44      -26.60
TOPSUN SCIENCE-A               600771     232.68     -131.98
XIAMEN OVERSEAS                600870     433.19      -13.78
HUDA TECHNOLOG-A               600892      18.46       -1.90
NINGBO YIDONG-H                  8249      86.83     -187.88k
TIANJIN MARINE-B               900938      75.44      -26.60
SHANG WORLDBES-B               900940     327.98     -175.17
HISENSE ELEC-H                    921     604.98      -86.30


HONG KONG

PLUS HOLDINGS LT                 1013      12.38      -14.21
SUNCORP TECH LTD                 1063      31.94      -35.07
FE GOLDEN RES                    1188      52.49       -9.92
CHIA TAI ENTERPR                  121     316.11      -40.95
OCEAN GRAND CHEM                 2882      12.27      -46.25
CHINA BEST GROUP                  370      55.54       -1.84
ASIA TELEMEDIA L                  376      16.97       -7.53
WELLING HOLDING                   382     303.95      -44.65
NEW CITY CHINA                    456     110.83       -6.78
PALADIN LTD                       495     167.43       -6.23
CHINA GRAND PHAR                  512      25.48       -5.36
PALADIN LTD -PRE                  642     167.43       -6.23
CHINA HEALTHCARE                  673      25.24       -5.73
WAH SANG GAS                     8035      61.51     -106.48
TAKSON HLDGS                      918      11.35       -2.11


INDIA

ARTSON ENGR                       ART      10.31     -705.78k
ASHIMA LTD                       ASHM      96.57      -42.59
BHAGHEERATHA ENG                 BGEL      22.65      -28.20
BALAJI DISTILLER                  BLD      59.97      -50.89
BELLARY STEELS                   BSAL     438.80      -67.01
CFL CAPITAL FIN                 CEATF      20.64      -48.88
CORE HEALTHCARE                  CPAR     185.36     -241.91
DUNCANS INDUS                     DAI     213.32     -148.20
DIGJAM LTD                       DGJM      98.77      -14.62
DISH TV INDIA                    DITV     302.06     -112.86
ELQUE POLYESTERS                 ELQP      13.80      -25.63
FACOR ALLOYS LTD                 FACA      17.34       -1.39
GANESH BENZOPLST                  GBP      82.16      -38.25
SURAT TEXTILE MI                 GCTY      15.97       -8.85
GUJARAT SIDHEE                   GSCL      59.44     -660.00k
GUJARAT STATE FI                  GSF      43.60     -195.24
HIMACHAL FUTURIS                 HMFC     603.36      -13.34
HMT LTD                           HMT     316.41     -175.33
HINDUSTAN PHOTO                  HPHT      95.12     -953.35
IFB INDS LTD                     IFBI      50.67      -65.49
INDIA STEEL WORK                  ISI      56.76       -1.47
JCT ELECTRONICS                  JCTE     117.60      -50.17
JK SYNTHETICS                     JKS      20.21       -2.17
JENSON & NIC LTD                   JN      14.81      -81.79
KALYANPUR CEMENT                 KCEM      38.11      -48.48
LML LTD                           LML      86.80      -27.97
LLOYDS METALS                    LYDM      76.63     -409.40k
LLOYDS STEEL IND                 LYDS     392.56     -102.16
MODI RUBBER LTD                   MDR      39.76      -24.30
MAFATLAL INDS                     MFI     123.63      -83.84
MILLENNIUM BEER                   MLB      38.26       -3.52
NATH PULP & PAP                  NPPM      11.60      -34.77
PAREKH PLATINUM                  PKPL      59.66      -75.55
PANCHMAHAL STEEL                  PMS      51.02     -325.12k
PSI DATA SYSTEMS                  PSI      11.68       -2.48
PTL ENTERPRIESES                 PTLE      54.29     -397.48k
PANYAM CEMENTS                    PYC      30.24       -9.40
ROLLATAINERS LTD                  RLT      22.97      -22.24
REMI METALS GUJA                  RMM      45.06      -51.10
RPG CABLES LTD                    RPG      51.43      -20.19
SIL BUSINESS ENT                 SILB      12.46      -19.96
SANDUR MANGANESE                 SMIO      32.57       -2.61
SPICE COMMUNICAT                 SPCM     263.69      -19.68
SHREE RAMA MULTI                 SRMT      71.22      -29.91
TATA TELESERVICE                 TTLS     857.96      -50.01
USHA INDIA LTD                   USHA      12.06      -54.51
JOG ENGINEERING                   VMJ      50.08      -10.08
VXL INSTRUMENT                   VXLI      12.20     -619.30k
WIRE AND WIRELES                  WNW     106.98      -23.62
YASHRAJ CONTAINE                 YRCT      17.49       -2.09


INDONESIA

PRIMARINDO ASIA                  BIMA      12.69      -20.69
BUKAKA TEKNIK UT                 BUKK      64.09      -99.37
DAYA SAKTI UNGGU                 DSUC      30.29       -7.12
ERATEX DJAJA                     ERTX      24.29       -3.18
JAKARTA KYOEI ST                 JKSW      37.34      -40.93
KARWELL INDONESI                 KARW      33.06       -2.06
KERAMIKA INDO AS                 KIAS      87.06     -202.18
MULIA INDUSTRIND                 MLIA     402.10     -443.18
PANCA WIRATAMA                   PWSI      31.98      -33.73
STEADY SAFE TBK                  SAFE      16.61       -3.31
SURABAYA AGUNG                   SAIP     278.88      -78.09
TEXMACO JAYA TBK                 TEJA      41.58     -181.20
TEIJIN INDONESIA                 TFCO     259.68      -37.29
UNITEX TBK                       UNTX      17.01      -11.30


JAPAN

TSUCHIYA TWOBY                   1753      24.22       -2.24
MOC CORP                         2363      52.27      -12.66
LINK ONE                         2403      16.60       -3.12
APRECIO CO LTD                   2460      18.18       -1.87
TASCOSYSTEM CO L                 2709      53.71       -5.20
NEXUS                            2799      25.44      -18.58
L CREATE CO LTD                  3247      42.34       -9.15
NEXTECH CORP                     3767      30.59      -10.12
LINK CONSULTING                  4798      50.71      -10.14
AIREX INC                        6944      44.25       -7.05
SUMIYA CO                        9939      70.82      -10.21
COWBOY CO LTD                    9971      21.32       -5.68


KOREA

FIRST FIRE & MAR               000610       2.04B      -1.78
ORICOM INC                     010470      82.65      -40.04
UNICK CORP                     011320      36.54       -4.45
STARMAX CO LTD                 017050      73.13       -5.54
DAISHIN INFO                   020180     740.50     -158.45
TONG YANG MAGIC                023020     355.15      -25.77
FATOMENT                       025460      28.43      -13.92
NANO MINING CO L               036270      18.22      -32.17
COSMOS PLC                     053170      19.31       -4.95
SEJI CO LTD                    053330      37.25     -311.07k
MEDIACORP INC                  053890      53.31      -32.22
DAHUI CO LTD                   055250     186.00       -1.50
INNO METAL IZIRO               070080       8.56     -330.04k
SINJISOFT CORP                 078700      12.76      -21.01


MALAYSIA

CNLT FAR EAST                    CNLT      44.97       -8.46
FOREMOST HLDGS                   FMST      10.13     -338.79k
HARVEST COURT                     HAR      10.81       -5.62
LITYAN HLDGS BHD                  LIT      21.28      -28.60
NIKKO ELECTRONIC                NIKKO      15.24       -3.15
PECD BHD                         PECD     377.12     -295.36
PANGLOBAL BHD                     PGL     185.95     -185.09
TECHVENTURE BHD                  TECH      37.38      -11.21
WEMBLEY INDS                      WMY     125.94     -283.62
WONDERFUL WIRE                     WW      22.72       -1.94


PHILIPPINES

APEX MINING-A                     APX      55.27       -1.97
APEX MINING 'B'                  APXB      55.27       -1.97
BENGUET CORP-A                     BC      82.27      -32.34
BENGUET CORP 'B'                  BCB      82.27      -32.34
CENTRAL AZUC TAR                  CAT      35.74       -1.80
CYBER BAY CORP                   CYBR      14.85      -74.30
FIL ESTATE CORP                    FC      43.03      -10.93
FILSYN CORP A                     FYN      24.84      -11.37
FILSYN CORP. B                   FYNB      24.84      -11.37
GOTESCO LAND-A                     GO      18.68      -10.86
GOTESCO LAND-B                    GOB      18.68      -10.86
MRC ALLIED                        MRC      14.95     -747.37k
PICOP RESOURCES                   PCP     105.66      -23.33
PRIME ORION PHIL                 POPI      99.69      -82.12
EAST ASIA POWER                   PWR      72.74     -136.68
UNIVERSAL RIGHTF                   UP      45.12      -13.48
UNITED PARAGON                    UPM      26.81      -36.74
UNIWIDE HOLDINGS                   UW      65.66      -57.31
VICTORIAS MILL                    VMC     175.01      -38.64


SINGAPORE

ADV SYSTEMS AUTO                  ASA      20.49      -10.73
CHUAN SOON HUAT                   CSH      42.77       -6.42
FALMAC LTD                        FAL      10.57       -4.70
GUL TECHNOLOGIES                  GUL     172.80       -3.04
HL GLOBAL ENTERP                 HLGE     107.39       -9.85
INFORMATICS EDU                  INFO      29.84       -3.99
LINDETEVES-JACOB                   LJ     217.66       71.35
PACIFIC CENTURY                   PAC      51.84      -20.37


TAIWAN

CHIEN TAI CEMENT                 1107     213.25       -8.62
DAHIN-ENTL CERT                 1320V     276.48     -230.27
PROTOP TECHNOLOG                 2410      36.41      -22.41
HELIX TECHNOL-EC                2479S      29.01      -18.18
HELIX TECH-EC                   2479T      29.01      -18.18
HELIX TECH-EC IS                2479U      29.01      -18.18
CHIEF CONST-ENT                 2522R     215.18      -21.15
CHIEF CONST-ENTL                2522S     215.18      -21.15
CHIEF CONST-ENTL                2522T     215.18      -21.15
OPTODISC TECHNOL                 3142      70.41     -139.97
UNICAP ELECT-EC                 5307R     133.88      -19.06
UNICAP ELECT-EC                 5307S     133.88      -19.06
UNICAP ELECT-ENT                5307T     133.88      -19.06
YEU TYAN MACHINE                 8702      39.57     -271.07


THAILAND

ABICO HOLDINGS                  ABICO      16.69       -9.85
ABICO HOLD-NVDR               ABICO-R      16.69       -9.85
ABICO HLDGS-F                 ABICO/F      16.69       -9.85
BANGKOK RUBBER                    BRC      83.99      -68.07
BANGKOK RUB-NVDR                BRC-R      83.99      -68.07
BANGKOK RUBBER-F                BRC/F      83.99      -68.07
BANGKOK STEEL IN                  BSI     458.73     -136.44
BANGKOK STE-NVDR                BSI-R     458.73     -136.44
BANGKOK STEEL-F                 BSI/F     458.73     -136.44
CIRCUIT ELEC PCL               CIRKIT      61.30      -25.89
CIRCUIT ELE-NVDR           CIRKIT-RTB      61.30      -25.89
CIRCUIT ELEC-FRN             CIRKIT/F      61.30      -25.89
CENTRAL PAPER IN                CPICO      13.25     -241.78
CENTRAL PAPER-NV              CPICO-R      13.25     -241.78
CENTRAL PAPER-F               CPICO/F      13.25     -241.78
DATAMAT PCL                     DTMTB      12.69       -6.13
DATAMAT PCL-NVDR                DTM-R      12.69       -6.13
DATAMAT PLC-F                DTM/F TB      12.69       -6.13
ITV PCL                        ITV TB      37.69      -71.61
ITV PCL-NVDR                    ITV-R      37.69      -71.61
ITV PCL-FOREIGN                 ITV/F      37.69      -71.61
K-TECH CONSTRUCT                KTECH      83.20       -5.69
K-TECH CONTRU-R               KTECH-R      83.20       -5.69
K-TECH CONSTRUCT              KTECH/F      83.20       -5.69
MALEE SAMPRAN                   MALEE      67.13     -865.42k
MALEE SAMPR-NVDR              MALEE-R      67.13     -865.42k
MALEE SAMPRAN-F               MALEE/F      67.13     -865.42k
NEW PLUS KNITT                    NPK      10.08       -2.03
NEW PLUS KN-NVDR                NPK-R      10.08       -2.03
NEW PLUS KNITT-F                NPK/F      10.08       -2.03
PREMIER MARKET                     PM      41.96       -2.35
PREMIER MAR-NVDR                 PM-R      41.96       -2.35
PREMIER MARK-FOR                 PM/F      41.96       -2.35
KUANG PEI SAN                  POMPUI      18.78      -14.07
KUANG PEI-NVDR             POMPUI-RTB      18.78      -14.07
KUANG PEI SAN-F              POMPUI/F      18.78      -14.07
SAFARI WORLD PUB               SAFARI     106.03      -12.70
SAFARI WORL-NVDR           SAFARI-RTB     106.03      -12.70
SAFARI WORLD-FOR             SAFARI/F     106.03      -12.70
SAHAMITR PRESSUR                 SMPC      27.26      -34.59
SAHAMITR PR-NVDR               SMPC-R      27.26      -34.59
SAHAMITR PRESS-F               SMPC/F      27.26      -34.59
TUNTEX THAILAND                TUNTEX     209.87      -59.17
TUNTEX THAI-NVDR           TUNTEX-RTB     209.87      -59.17
TUNTEX THAILAN-F             TUNTEX/F     209.87      -59.17
UNIVERSAL STARCH                  USC     100.96      -33.25
UNIVERSAL S-NVDR                USC-R     100.96      -33.25
UNIVERSAL STAR-F                USC/F     100.96      -33.25




                         *********

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 ***