TCRAP_Public/080918.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

            Thursday, September 18, 2008, Vol. 11, No. 186

                            Headlines

A U S T R A L I A

AIR AMBULANCE: Liquidator to Give Wind-Up Report on September 22
ALLIANCE MANUFACTURING: Joint Meeting Set on September 22
CISCO'S CARTAGE: Members and Creditors to Meet on September 22
ELDERSLIE FINANCE: Another Related Company Placed in Liquidation
FRAME MAKE: Liquidator to Present Wind-Up Report on September 22

MANIROY PTY: Liquidator to Give Wind-Up Report on September 22
OCTAVIAR LIMITED: Administrator to Investigate Group's Insolvency
PEABODY ENERGY: S&P Upgrades Ratings; Removes All from Pos. Watch
PHILIP ROFF: To Declare Dividend on September 30
RANBAXY LABORATORIES: Shares Hit 2-Month Low on U.S. FDA Action

SAPPHIRE: Fitch Takes Rating Actions on 20 Classes of RMBS
SAPPHIRE: Fitch Affirms Ratings on 53 Classes of RMBS
SOUTH-SEA ISLAND: Members and Creditors to Meet on September 22
T.P.M. INVESTMENTS: Joint Meeting Slated for September 22
WILLY'S WHEELS: Members and Creditors to Meet on September 22

ZEPPLIN DISTRIBUTION: Placed Under Voluntary Liquidation
* AUSTRALIA: Industrials Stocks Safer Than Banks, JPMorgan Says


C H I N A

ICBC: To Start New York Branch Operation in October


H O N G K O N G

ASCENT FAME: Court to Hear Wind-Up Petition on October 22
BRILLIANT DAYS: Requires Creditors to File Claims by October 15
MAX EVER: Creditors' Proofs of Debt Due on October 13
ORGANISATION SEARCH: Appoints Stephen and Kenneth as Liquidators
RICH ABLE: Wind-Up Petition Hearing Set for October 22

SUN KEE: Placed Under Voluntary Liquidation
THE INCORPORATED OWNERS: Subject to Sheung Yung's Wind-Up Petition


I N D I A

LEHMAN BROTHERS: Effects of Bankruptcy on India Under RBI's Watch


I N D O N E S I A

BANK TABUNGAN: Govt. Opts to Sell Stake to Buyers Rather than IPO
PT PERTAMINA: Unit Secures US$2.2 Mil. Loan From Naxitis
PERUSAHAAN LISTRIK: To Convert Oil-Based Fuel to Gas in Two Plants
SEMEN KUPANG: Mandiri's Stake in Final Stage of Nava's Purchase


J A P A N

LEHMAN BROTHERS: Barclays to Buy Trading Unit, HQ for US$1.75BB
LEHMAN BROTHERS: Organizational Meeting Tuesday to Form Panel
MITSUBISHI MOTOR: To Increase Vehicle Prices in Japan
PYLOS II: S&P Withdraws BB+ Rating on JPY12.9 Bln Redeemed Notes


K O R E A

LEHMAN BROTHERS: Regulator Bans Korean Operations Until Dec. 15
MAGNACHIP: Moody's Lowers Corporate Family Rating to Caa1


N E W  Z E A L A N D

AIR NEW ZEALAND: Installs Zonal Dryers to Reduce Fuel Consumption
COMPLETE FINANCIAL: Proofs of Debt Due on September 30
DALLENGER DEVELOPMENTS: Commences Liquidation Proceedings
DOLPHIN CONSTRUCTION: Placed Company Under Liquidation
EMPIRE CONSTRUCTION: Shephard and Dunphy Appointed as Liquidators

FP NORTH: Proofs of Debt Due on September 30
PF PLATFORM: Proofs of Debt Due on September 30
MICENTRE LIMITED: Proofs of Debt Due on September 30
SECURAPORT LIMITED: Shephard and Dunphy Appointed as Liquidators
SHELDRAKE LIMITED: Parsons and Kenealy Appointed as Liquidators

ROBERT BROWN: Commences Liquidation Proceedings


P H I L I P P I N E S

NIHAO MINERAL: Unit Inks Operating Agreement With Concorde Nube
* PHILIPPINES: Posts US$187.5MM Inflow of Investments in August


S I N G A P O R E

CULTURE DE LINGERIE: Court Enters Wind-Up Order
LEGION HOLDINGS: Requires Creditors to File Claims by October 13
LOUIS YEAP: Court to Hear Wind-Up Petition on September 26
* SINGAPORE: SGX Suspends Lehman from Taking New Securities


T A I W A N

LEHMAN: Taiwan Unit's Investors May Seek Damages From Parent Firm


X X X X X X X X

* Fitch Reports Prelim. Findings on Exposure to LBHI by AP Banks
* S&P Eyes Neg. Effect on Global CDOs from Lehman Chap. 11 Filing


                         - - - - -


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A U S T R A L I A
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AIR AMBULANCE: Liquidator to Give Wind-Up Report on September 22
----------------------------------------------------------------
Air Ambulance International Pty Ltd will hold a meeting for its
members and creditors at 10:00 a.m. on Sept. 22, 2008.  During the
meeting, the company's liquidator, Joseph Loebenstein, will
provide the attendees with property disposal and winding-up
reports.

The liquidator can be reached at:

          Joseph Loebenstein
          Loebenstein Insolvency Services Pty Ltd
          1/191 Balaclava Road
          North Caulfield VIC 3161


ALLIANCE MANUFACTURING: Joint Meeting Set on September 22
---------------------------------------------------------
Alliance Manufacturing Pty Ltd will hold a meeting for its members
and creditors at 9:30 a.m. on Sept. 22, 2008.  During the meeting,
the company's liquidator, Paul Vartelas, will provide the
attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          Paul Vartelas
          B. K. Taylor & Co.
          Level 9, 608 St. Kilda Road
          Melbourne Vic 3004


CISCO'S CARTAGE: Members and Creditors to Meet on September 22
--------------------------------------------------------------
Cisco's Cartage Pty Ltd will hold a meeting for its members and
creditors at 10:00 a.m. on Sept. 22, 2008.  During the meeting,
the company's liquidator, Paul Vartelas, will provide the
attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          Paul Vartelas
          B. K. Taylor & Co.
          Level 9, 608 St. Kilda Road
          Melbourne Vic 3004


ELDERSLIE FINANCE: Another Related Company Placed in Liquidation
----------------------------------------------------------------
Anthony Klan of The Australian reports that Australian Handsets,
which was founded and solely directed by Peter George, the owner
of Elderslie Finance Corporation, has been swept into liquidation
owing Elderslie about AU$20 million.

According to the report, Australian Handsets liquidator Richard
Rowley of Woodgate & Company said the money, made by way of
unsecured loans, has been injected into the company over several
years to cover trading losses.

Mr. Rowley said the bulk of the loans had been made about seven
years ago via Hotel Nominees.

The Australian notes, citing Mr. Rowley, that the assets of
Australian Handsets had been sold in January to a company called
ABCT Solutions for about AU$2.5 million, however the full payment
for those assets was yet to be received.

Set up by Mr. George in 1991, Australian Handsets was known as
Australian Business Telephone Company until January, the
Australian says.

As reported in the Troubled Company Reporter-Asia Pacific on Aug.
27, 2008, The Australian said 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.

                     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 reports 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.


FRAME MAKE: Liquidator to Present Wind-Up Report on September 22
----------------------------------------------------------------
Frame Make It Franchises Pty Ltd will hold a meeting for its
members and creditors at 9:45 a.m. on Sept. 22, 2008.  During the
meeting, the company's liquidator, Paul Vartelas, will provide the
attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          Paul Vartelas
          B. K. Taylor & Co.
          Level 9, 608 St. Kilda Road
          Melbourne Vic 3004


MANIROY PTY: Liquidator to Give Wind-Up Report on September 22
--------------------------------------------------------------
Maniroy Pty Ltd will hold a meeting for its members and creditors
at 10:30 a.m. on Sept. 22, 2008.  During the meeting, the
company's liquidator, Joseph Loebenstein, will provide the
attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          Joseph Loebenstein
          Loebenstein Insolvency Services Pty Ltd
          1/191 Balaclava Road
          North Caulfield VIC 3161


OCTAVIAR LIMITED: Administrator to Investigate Group's Insolvency
-----------------------------------------------------------------
Octaviar Limited's administrator John Greig, of Deloitte, will
investigate claims that the company was insolvent two years ago
and whether he can claw back payments made during that time, Ben
Butler of the Herald Sun reports.

According to Mr. Greig, it was too early to tell whether he would
ask creditors owed about AU$1 billion to liquidate the company or
approve a deal handing control back to directors of the company,
the Herald Sun says, citing BusinessDaily.

Mr. Greig added in the report that "given the nature and
complexity" of Octaviar, he would ask the court for at least 60
additional days to investigate its failure before reporting to
creditors.

The Herald Sun relates that Mr. Greig would investigate whether
any payments made could be clawed back because they were
preferential.  "What we're looking to do is identify what are
potential preference recoveries, how much they are, to which
parties and I suppose the complexities and likelihood of being
able to make those recoveries," the Herald Sun quotes Mr. Greig as
saying.

Mr. Greig, the report notes, has indirect control of Octaviar's
AU$157 million in cash, which is held by a company in the group
but not under administration.

The report says the administrator expected directors to propose a
deed of company arrangement broadly similar to Octaviar's previous
proposals to creditors.  A first meeting of Octaviar's creditors
is set for 10:30 a.m. , Wednesday, Sept. 24, 2008, at the offices
of Deloitte, 123 Eagle Street, in Brisbane.

                     About Octaviar Limited

Headquartered in Southport, Queensland, Australia, Octaviar
Limited (ASX:OCV) -- http://www.mfsgroup.com.au-- operates as
an Investment Management business with a portfolio of businesses
and assets, including: operating businesses in the leisure and
childcare sectors; real estate portfolio; 35% interest in the
Stella Group; operating businesses which hold AFSL licenses and
act as Responsible Entity for a number of Managed Investment
Schemes.

                        *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 15, 2008, Octaviar Limited appointed Messrs. John Greig and
Nicholas Harwood of Deloitte as Voluntary Administrators.

The directors of three Octaviar subsidiaries, Octaviar Financial
Services Pty Ltd, Octaviar Investment Notes Limited and Octaviar
Investment Bonds Limited, also appointed Messrs. Greig and Harwood
as Voluntary Administrators.

The TCR-AP reported on Sept. 17, 2008, that Fortress Credit
Corporation (Australia) II Pty Ltd., one of Octaviar Limited's
major creditors, appointed Stephen James Parbery and Anthony
Milton Sims of PPB as receivers and managers for Octaviar.

Among Octaviar's largest creditors are:

   -- the Public Trustee of Queensland (PTQ) who is seeking
      winding up orders against Octaviar Limited and three
      subsidiaries in relation to unsecured notes and interest
      totalling approximately AU$351 million.

   -- Octaviar recognized a liability of AU$52.5 million in
      its financial accounts at December 31, 2007, regarding
      income tax for the year ended June 30, 2007.  No
      assessment has been received from the ATO.

   -- In addition to the AU$50 million claimed under the
      Support Mechanism, the Responsible entity for Premium
      Income Fund (PIF) has now claimed damages against
      Octaviar Limited and an Octaviar subsidiary for
      AU$147.5 million in relation to investments made by PIF.

   -- On June 19, 2008, OPI Pacific Limited advised of a
      damages claim for approximately AU$270 million against
      both Octaviar Limited and an Octaviar subsidiary which
      provides managements and other services.

   -- An Octaviar subsidiary issued AU$100 million in unlisted
      bonds originally due to mature in 2011 and the Bondholders
      have commenced legal action in relation to these unlisted
      bonds.  The hearing date was set for July 21, 2008.

   -- The National Australia Bank Limited (NAB) demand for
      AU$40 million from Octaviar Limited pursuant to a
      guarantee regarding the NAB advance to Octaviar's former
      unit, Living and Leisure Australia Group, remains
      unsatisfied.

Octaviar said that the Octaviar Group must reach an accommodation
with its large secured creditors.  To achieve that outcome the
Group had made separate proposals to all of its large creditors.
Some creditors had accepted the offer and others were either in
discussions with the company regarding those proposals or were
considering their position.


PEABODY ENERGY: S&P Upgrades Ratings; Removes All from Pos. Watch
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on St. Louis, Missouri-based Peabody Energy Corp. to 'BB+'
from 'BB' and removed all ratings from CreditWatch, where they had
been placed with positive implications on Aug. 11, 2008.  The
outlook is stable.

At the same time, Standard & Poor's raised its rating on the
company's senior unsecured debt to 'BB+' from 'BB' and kept the
recovery rating at '3', indicating S&P's expectation of meaningful
(50% to 70%) recovery in the event of a payment default.

"The upgrade reflects the company's strengthened credit measures
stemming from marked improvement in the financial performance of
its Australian operations and lower adjusted debt resulting from
the spin off of its central Appalachian coal operations," said
Standard & Poor's credit analyst Marie Shmaruk.

It also reflects S&P's expectation that the company will generate
significant free cash flow in the coming year because of favorable
contract pricing realized in the current high-price environment
and will use a portion of that cash flow to reduce debt, bringing
credit measures in line with the 'BB+' rating.

The ratings on Peabody Energy reflect the company's leading market
position, its substantial and diversified reserve base, and
currently favorable coal industry conditions.  The ratings also
reflect the company's aggressive financial leverage, ongoing cost
pressures, operating and logistical difficulties in its Australian
operations, and challenges posed by the inherent risks of coal
mining.

Peabody is North America's largest coal producer, with diversified
reserves totaling more than 9 billion tons located in the western
U.S., the Illinois basin, and Australia.  In 2007, the company
sold approximately 238 million tons of coal, including 24 million
from its trading and brokerage operations.


PHILIP ROFF: To Declare Dividend on September 30
------------------------------------------------
Philip Roff & Associates Pty Ltd will declare dividend on
Sept. 30, 2008.

Creditors who were unable to prove their debts on Sept. 16, 2008,
are excluded from the dividend distribution.

The company's liquidator is:

          Robyn Erskine
          Brooke Bird
          Insolvency Practitioners
          471 Riversdale Road
          Hawthorn East VIC 3123
          Telephone: (03) 9882 6666
          Facsimile: (03) 9882 8855


RANBAXY LABORATORIES: Shares Hit 2-Month Low on U.S. FDA Action
---------------------------------------------------------------
Ranbaxy Laboratories Ltd's shares fell as much as 10 percent to
362.10 rupees in Mumbai trading, the biggest daily drop in more
than two months, after the U.S. Food and Drug Administration (FDA)
blocked the sale of more than 30 generic medicines made in two
factories by the company because of deficiencies in manufacturing
processes, Bloomberg News reports.  The shares traded at 372.70
rupees at 10:26 a.m., yesterday, Sept. 17, 2008, Bloomberg says.

Bloomberg News relates that the regulator's action puts at risk
Ranbaxy's sales in the U.S., which contributed 24 percent to its
revenue last year.

                       FDA Issues Warning

The U.S. FDA has issued two warning letters to Ranbaxy
Laboratories Ltd. and an import alert for generic drugs produced
by Ranbaxy's Dewas and Paonta Sahib plants in India.

The Warning Letters identify the agency's concerns about
deviations from U.S. current Good Manufacturing Practice (cGMP)
requirements at Ranbaxy's manufacturing facilities in Dewas and
Paonta Sahib (including the Batamandi unit), in India.  Because of
the extent and nature of the violations, FDA issued an Import
Alert, under which U.S. officials may detain at the U.S. border,
any active pharmaceutical ingredients (API) (the primary
therapeutic component of a finished drug product) and both sterile
and non-sterile finished drug products manufactured at these
Ranbaxy facilities and offered for import into the United States.

According to the regulatory agency, the problems at the two
Ranbaxy plants relate to deficiencies in the company's drug
manufacturing process.  The FDA noted that these actions are
proactive measures that the agency is taking in order to assure
that all drugs that reach the American public are manufactured
according to cGMP requirements.  While this action does not
involve removing products from the market, FDA said it has no
evidence to date that Ranbaxy has shipped defective products.  FDA
said it will continue to monitor the situation.

The warning, the FDA said, does not impact products from Ranbaxy's
other plants which are not affected by the actions.  FDA has
inspected those facilities and, to date, they have met U.S. cGMP
requirements for drug manufacturing.

The FDA recommends that consumers continue taking their
medications manufactured by Ranbaxy and not disrupt their drug
therapy, which could jeopardize their health.  Patients who are
concerned about their medications should discuss their concerns
with their health care professional.

Earlier, the FDA informed Ranbaxy that until it resolves the
deficiencies at each of these two facilities and the plants come
into compliance with U.S. cGMP requirements, FDA's drug compliance
office will recommend denial of approval of any New Drug
Applications (NDAs) and Abbreviated New Drug Applications (ANDAs)
that list the Paonta Sahib or Dewas plants respectively as the
manufacturer of APIs or finished drug products

Ranbaxy is one of the largest foreign suppliers of generic drugs
to the United States.  The company makes a number of drug
products.

The FDA Import Alert covers more than 30 different generic drug
products (Drug List) produced in multiple dosage forms and dosage
amounts ( i.e., 25 mg, 50 mg, and 100 mg) at these two locations.
FDA has evaluated whether these actions would create any potential
drug shortages in the United States, and has determined that other
suppliers can meet market demand, with one exception.  Because
Ranbaxy is the sole supplier to the U.S. of one drug product,
Ganciclovir oral capsules (an antiviral drug), to avoid creating a
shortage of the drug, FDA generally will not detain shipments of
this product, and plans to arrange for additional oversight and
controls until the company resolves these manufacturing issues.

"With this action we are sending a clear signal that drug products
intended for use by American consumers must meet our standards of
safety and quality," said Janet Woodcock, M.D., director, FDA's
Center for Drug Evaluation and Research (CDER).  "The FDA has
notified other agencies and health care professionals to make them
aware of [the] actions so that they can take appropriate action
and advise patients as needed."

                Results of FDA Investigations

During FDA's inspection at Ranbaxy's Dewas facility in early 2008,
FDA investigators documented significant cGMP deviations in the
manufacture of sterile and non-sterile finished products and
violations with respect to the manufacture and control of APIs.
Specific areas of concern included these aspects of the firm's
quality control program:

    * The facility's beta-lactam containment program (measures
      taken to control cross-contamination), which appeared
      inadequate to prevent the potential for cross-contamination
      of pharmaceuticals;

    * Inadequate batch production and control records;

    * Inadequate failure investigations; (A failure investigation
      is done to address any manufacturing control or product
      rejection to determine the root cause and prevent
      recurrence); and,

    * Inadequate aseptic (sterile) processing operations.

Also in early 2008, the FDA conducted inspection at Ranbaxy Paonta
Sahib facility's Batamandi unit.  The inspection documented
various cGMP deficiencies, including:

    * The lack of assurance responsible individuals were present
      to determine the firm was taking necessary steps under
      cGMP;

    * Inaccurate written records of the cleaning and use of major
      equipment;

    * Incomplete batch production and control records; and,

    * Inadequate procedures for the review and approval of
      production and control records for drug products.

Following the two inspections, the FDA provided Ranbaxy with a
separate list of inspectional findings for each of the facilities.
In mid-April and May, Ranbaxy responded in writing to these
findings in lengthy submissions to FDA.  The agency then evaluated
its findings, Ranbaxy's responses, and the firm's overall
inspectional history, an evaluation that required substantial time
due to the complex scientific and technical nature of both the
identified deficiencies, particularly at the Dewas site, and the
firm's responses.  Ultimately, FDA concluded that the firm's
responses were not adequate and that the Warning Letters were the
appropriate regulatory response.

"[These] actions are clearly warranted by the serious violations
established by FDA's investigations at these two sites," said
Deborah M. Autor, director, CDER's Office of Compliance, FDA.
"Until the company addresses these deficiencies, APIs and finished
drug products from these plants will remain on the Import Alert,
and we will not approve any Abbreviated New Drug Applications or
New Drug Applications that list either of the two facilities as
the manufacturer of APIs or finished drug products."

This represents the second time in less than three years FDA has
issued a Warning Letter to Ranbaxy.  In 2006, FDA cited Ranbaxy
for violations of U.S. cGMP at its Paonta Sahib facility.

                         Ranbaxy Responds

Ranbaxy expressed in a press release its disappointment on the
U.S. FDA's actions, stating that the company has responded to each
concern FDA has raised during the past two years and had thought
that progress was being made.

Ranbaxy, however, said it is pleased that FDA's testing and review
led the agency to conclude that there is no reason to question the
safety or effectiveness of Ranbaxy's drugs.

The company meanwhile said it has just received the warning
letters that the FDA has issued and has not had the opportunity to
review those concerns that FDA has determined are unresolved.
Once it has had an opportunity to review the issues, the company
looks forward to continuing to cooperate with FDA to resolve the
remaining issues.

According to the FDA announcement, the warning letters and Import
Alert do not apply to Ranbaxy’s other facilities including its
three manufacturing facilities in the U.S., Ohm’s Laboratories
facilities in New Brunswick, NJ, North Brunswick, NJ, and
Gloversville, NY, from which Ranbaxy delivers some 59 drug
products to the U.S. healthcare system, including: Simvastatin,
Acyclovir, Minocycline, Clindamycin, Lorazepam, Loratadine-D,
Cetirizine, Acetaminophen Extended release tablets, Lisinopril and
Zolpidem.

                      Ranbaxy Hires Adviser

Reuters reports that Ranbaxy has hired former New York City Mayor
Rudolph Giuliani and his consulting firm Giuliani Partners for
advice and a review of compliance issues related to the FDA's
action.

                          U.S. DOJ Probe

The Times of India reports that Ranbaxy is also under a separate
criminal probe by the U.S. Justice Department for allegedly
bringing adulterated and misbranded medications into US.

On July 15, 2008, the Troubled Company Reporter-Asia Pacific,
citing The Economic Times, reported that the U.S. DOJ sought court
permission to access privilege records of Ranbaxy's internal
audits and operations citing evidence that suggests the drugmaker
used active pharmaceutical ingredients (API) from unapproved
sources, blended unapproved API with approved API, and used less-
than-approved API at its Paonta Sahib (Himachal Pradesh) plant in
its drugs, resulting in the sale of ‘subpotent, super potent or
adulterated medicines’ in the US market.

Court papers cited by the Times said the DOJ is investigating
Ranbaxy and certain employees concerning violations of federal
laws including the Federal Food, Drug, and Cosmetic Act through
the introduction of adulterated and misbranded products in the
US.

The investigations also involve allegations of conspiracy, false
statements and healthcare frauds, the Times added.

                About Ranbaxy Laboratories Limited

Ranbaxy Laboratories Limited -- http://www.ranbaxy.com/-- along
with its subsidiaries and associates operates as an integrated
international pharmaceutical organization with businesses
encompassing the entire value chain in the production, marketing
and distribution of dosage forms and active pharmaceutical
ingredients. It has manufacturing facilities in 11 countries,
namely Brazil, China, India, Ireland, Japan, Malaysia, Nigeria,
Romania, South Africa, the United States of America and Vietnam.
Its major markets include the United States of America, India,
Europe, Russia / CIS, Brazil and South Africa.  The major
products include, inter alia, Simvastatin, CoAmoxyclav,
Amoxycillin, Ciprofloxacin, Isotretinon and Cephalexin.  Its
research and development activities are principally carried out
at its facilities in Gurgaon, near New Delhi, India.  RLL’s
segments include Pharmaceuticals and Other businesses.  During
the year ended December 31, 2007, RLL acquired 24.91% of Shimal
Reasearch Laboratories Limited.


SAPPHIRE: Fitch Takes Rating Actions on 20 Classes of RMBS
----------------------------------------------------------
Fitch Ratings has taken rating actions on 20 classes of New
Zealand non-conforming RMBS listed below:

Sapphire II NZ Series 2005-1 Trust
  -- Class A affirmed at 'AAA'; assigned a Stable Outlook
  -- Class M affirmed at 'AA-' (AA minus); assigned a Stable
     Outlook
  -- Class BA affirmed at 'BBB+'; assigned a Stable Outlook
  -- Class BZ affirmed at 'BB+'; assigned a Stable Outlook
  -- Class CA affirmed at 'B+'; assigned a Stable Outlook

Sapphire III NZ Series 2006-1 Trust
  -- Class A affirmed at 'AAA'; assigned a Stable Outlook
  -- Class I affirmed at 'AAA'; assigned a Stable Outlook
  -- Class MER affirmed at 'AAA'; assigned a Stable Outlook
  -- Class MA affirmed at 'AA'; assigned a Stable Outlook
  -- Class MZ affirmed at 'A'; assigned a Stable Outlook
  -- Class BA affirmed at 'BBB'; assigned a Stable Outlook
  -- Class BZ affirmed at 'BB'; assigned a Stable Outlook
  -- Class CA downgraded to 'B-' (B minus)/'DR3' from 'B';
     assigned a Negative Outlook

Sapphire IV NZ Series 2007-1 Trust
  -- Class AA affirmed at 'AAA'; assigned a Stable Outlook
  -- Class AZ affirmed at 'AAA'; assigned a Stable Outlook
  -- Class MA affirmed at 'AA'; assigned a Stable Outlook
  -- Class MZ affirmed at 'A'; assigned a Stable Outlook
  -- Class BA affirmed at 'BBB'; assigned a Stable Outlook
  -- Class BZ affirmed at 'BB'; assigned a Negative Outlook
  -- Class CA downgraded to 'B-'/'DR3' from 'B'; assigned a
     Negative Outlook

The Sapphire NZ Series of transactions is backed by pools of New
Zealand originated non-conforming residential mortgages originated
by Bluestone Mortgages NZ Limited, a wholly-owned subsidiary of
Bluestone Group Pty Limited.  The abovementioned rating actions
have been taken following a review of all Sapphire transactions.

Each of the above transactions is suffering from high incidence of
mortgage arrears with Sapphire II, Sapphire III and Sapphire IV
showing 30+ day delinquencies of 20.02%, 19.06% and 22.16%
respectively as of 31 July 2008.  Fitch believes that the Sapphire
transactions are suffering from high arrears levels, as borrowers
who previously may have been able to refinance their way out of
trouble are no longer offered this opportunity due to the more
difficult market conditions caused by the credit crunch.

The affirmation of all tranches of Sapphire II and the senior
tranches of Sapphire III and IV, together with the assignment of
Stable Outlooks to all but the lowest ranking tranches, recognise
the actual and expected build up in credit enhancement as
transactions mature and are repaid.  Sapphire II benefits from the
substantial seasoning - having been originated in 2005 - and as a
result, the transaction has paid down substantially with resulting
increased credit protection from the higher proportion of
subordinated notes.

Fitch believes the current high arrears levels, the soft New
Zealand property market and a lack of refinancing opportunities
for New Zealand non-conforming borrowers can be expected to impact
the transactions negatively in the short to medium term.  As a
result, the lowest tranches of the less-seasoned Sapphire III and
IV have been downgraded to 'B-' from 'B' and assigned Negative
Outlooks.  In addition, Fitch has noted that in recent months
Bluestone did not exercise a call option on a transaction in New
Zealand.

The agency believes the increased cost associated with the step-up
margins due following the non-call of transactions as well as the
increased burden of fixed costs on a smaller portfolio may place
transactions under stress as they become smaller.  Fitch will
continue to monitor this issue.

Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to June
2008.  Unlike a Rating Watch which notifies investors that there
is a reasonable probability of a rating change in the short term
as a result of a specific event, rating outlooks indicate the
likely direction of any rating change over a one- to two-year
period.


SAPPHIRE: Fitch Affirms Ratings on 53 Classes of RMBS
-----------------------------------------------------
Fitch Ratings has taken ratings actions on 58 classes of
Australian non-conforming residential mortgage-backed securities.

  -- 53 affirmations, of which 51 Tranches have been assigned
     Stable Outlooks and 2 have been assigned Negative Outlooks;

  -- 4 one-notch downgrades, all assigned Negative Outlooks; and
  -- 1 two-notch downgrade, assigned a Negative Outlook.

The Sapphire Series of transactions is backed by pools of
Australian non-conforming residential mortgages originated by
Bluestone Mortgages Pty Limited, a wholly-owned subsidiary of
Bluestone Group Pty Limited.  The ratings actions have been taken
following a review of all Sapphire transactions.

Each of the listed transactions is suffering from high incidence
of 30+ day mortgage arrears as of 31 July 2008 as: Sapphire VI
(16.78%), Sapphire VII (18.11%), Sapphire VIII (17.92%), Sapphire
IX (13.88%), Sapphire X (18.45%), and Sapphire XI (21.07%).  The
agency believes the high arrears levels are partly a result of the
current global financial market turmoil which has resulted in an
inability of Australian non-conforming borrowers to refinance due
to the lack of availability of financing for this sector.

In addition, the slowdown in the property markets in the Eastern
States of Australia has meant assets backing defaulted loans are
taking longer to sell, and as a result loans in the 90+ days
arrears portion of the portfolio is increasing.

Downgrades have been limited to the lowest 2 tranches of Sapphire
VIII and the lowest tranches of Sapphire IX and X and reflect the
build up in arrears and expected losses Fitch believes will result
from defaulted loans which are expected to erode credit
enhancement to the lowest notes.  The Negative Outlook placed on
the downgraded notes as well as the Negative Outlook placed on the
BZ tranche of Sapphire X and the lowest Tranche of Sapphire XI
reflect the expectation that ratings may be downgraded further
over the medium term.

The affirmation of the majority of tranches in the transactions
and all the tranches in the Sapphire VI and VII transactions
recognizes that these tranches remain insulated from expected
losses on the underlying assets and continue to perform as
expected.

In addition Fitch has noted that in recent months Bluestone has
not exercised call options on a transaction in New Zealand, and
there is a significant chance the call option for Sapphire VI, due
in January 2009, will not be exercised either.  The agency has
modeled forward this transaction to account for the likely non-
call and increased costs associated with the non-call, but expects
the transaction to be able to withstand this pressure.  This issue
is likely to be one faced by all Bluestone transactions in the
coming year and Fitch will monitor developments in this area
closely.

Rating Actions are:

Sapphire VI Series 2004-2 Trust:
  -- Class AA Affirmed at 'AAA', Assigned Stable Outlook
  -- Class AM Affirmed at 'AAA', Assigned Stable Outlook
  -- Class AZ Affirmed at 'AAA', Assigned Stable Outlook
  -- Class MER Affirmed at 'AAA', Assigned Stable Outlook
  -- Class M Affirmed at 'AA-', Assigned Stable Outlook
  -- Class BA Affirmed at 'A-', Assigned Stable Outlook
  -- Class BZ Affirmed at 'BBB-', Assigned Stable Outlook
  -- Class CA Affirmed at 'B+', Assigned Stable Outlook

Sapphire VII Series 2005-1E Trust:
  -- Class A1 Affirmed at 'AAA', Assigned Stable Outlook
  -- Class A2 Affirmed at 'AAA', Assigned Stable Outlook
  -- Class I Affirmed at 'AAA', Assigned Stable Outlook
  -- Class MER Affirmed at 'AAA', Assigned Stable Outlook
  -- Class MA1 Affirmed at 'AA+', Assigned Stable Outlook
  -- Class MA2 Affirmed at 'AA+', Assigned Stable Outlook
  -- Class MZ1 Affirmed at 'A+', Assigned Stable Outlook
  -- Class MZ2 Affirmed at 'A+', Assigned Stable Outlook
  -- Class BA Affirmed at 'BBB', Assigned Stable Outlook
  -- Class BA2 Affirmed at 'BBB', Assigned Stable Outlook
  -- Class BZ Affirmed at 'BB', Assigned Stable Outlook
  -- Class CA Affirmed at 'B', Assigned Stable Outlook

Sapphire VIII Series 2005-2 Trust:
  -- Class AA Affirmed at 'AAA', Assigned Stable Outlook
  -- Class AM Affirmed at 'AAA', Assigned Stable Outlook
  -- Class AZ Affirmed at 'AAA', Assigned Stable Outlook
  -- Class I Affirmed at 'AAA', Assigned Stable Outlook
  -- Class MER Affirmed at 'AAA', Assigned Stable Outlook
  -- Class MA Affirmed at 'AA', Assigned Stable Outlook
  -- Class MZ Affirmed at 'A', Assigned Stable Outlook
  -- Class BA Affirmed at 'BBB', Assigned Stable Outlook
  -- Class BZ Downgraded to 'BB-' from 'BB', Assigned a Negative
     Outlook

  -- Class CA Downgraded to 'CCC+/DR3' from 'B', Assigned Negative
     Outlook

Sapphire IX Series 2006-1 Trust:
  -- Class AA Affirmed at 'AAA', Assigned Stable Outlook
  -- Class AM Affirmed at 'AAA', Assigned Stable Outlook
  -- Class AZ Affirmed at 'AAA', Assigned Stable Outlook
  -- Class I Affirmed at 'AAA', Assigned Stable Outlook
  -- Class MER Affirmed at 'AAA', Assigned Stable Outlook
  -- Class MA Affirmed at 'AA', Assigned Stable Outlook
  -- Class MZ Affirmed at 'A', Assigned Stable Outlook
  -- Class BA Affirmed at 'BBB', Assigned Stable Outlook
  -- Class BZ Affirmed at 'BB', Assigned Negative Outlook
  -- Class CA Downgraded to 'B-/DR3' from 'B', Assigned Negative
     Outlook

Sapphire X Series 2007-1 Trust:
  -- Class AA Affirmed at 'AAA', Assigned Stable Outlook
  -- Class AM Affirmed at 'AAA', Assigned Stable Outlook
  -- Class AZ Affirmed at 'AAA', Assigned Stable Outlook
  -- Class I Affirmed at 'AAA', Assigned Stable Outlook
  -- Class MER Affirmed at 'AAA', Assigned Stable Outlook
  -- Class MA Affirmed at 'AA', Assigned Stable Outlook
  -- Class MZ Affirmed at 'A', Assigned Stable Outlook
  -- Class BA Affirmed at 'BBB', Assigned Stable Outlook
  -- Class BZ Downgraded to 'BB-' from 'BB', Assigned Negative
     Outlook

  -- Class CA Downgraded to 'B-/DR3' from 'B', Assigned Negative
     Outlook

Sapphire XI Series 2007-2 Trust:
  -- Class AA Affirmed at 'AAA', Assigned Stable Outlook
  -- Class AM Affirmed at 'AAA', Assigned Stable Outlook
  -- Class AZ Affirmed at 'AAA', Assigned Stable Outlook
  -- Class MA Affirmed at 'AA', Assigned Stable Outlook
  -- Class MZ Affirmed at 'A', Assigned Stable Outlook
  -- Class BA Affirmed at 'BBB', Assigned Stable Outlook
  -- Class BZ Affirmed at 'BB', Assigned Stable Outlook
  -- Class CA Affirmed at 'B', Assigned Negative Outlook

Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to June
2008.  Unlike a Rating Watch which notifies investors that there
is a reasonable probability of a rating change in the short term
as a result of a specific event, rating outlooks indicate the
likely direction of any rating change over a one- to two-year
period.


SOUTH-SEA ISLAND: Members and Creditors to Meet on September 22
---------------------------------------------------------------
South-Sea Island Marketing Pty Ltd will hold a meeting for its
members and creditors at 10:15 a.m. on Sept. 22, 2008.  During the
meeting, the company's liquidator, Paul Vartelas, will provide the
attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          Paul Vartelas
          B. K. Taylor & Co.
          Level 9, 608 St. Kilda Road
          Melbourne Vic 3004


T.P.M. INVESTMENTS: Joint Meeting Slated for September 22
---------------------------------------------------------
S. L. Horne, T.P.M. Investments Pty Ltd's appointed estate
liquidator, will meet with the company's members on Sept. 22,
2008, at 10:30 a.m. to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

          S. L. Horne
          Draper Dillon
          Level 13, 440 Collins Street
          Melbourne VIC 3000


WILLY'S WHEELS: Members and Creditors to Meet on September 22
-------------------------------------------------------------
Willy's Wheels Pty Ltd will hold a meeting for its members and
creditors at 10:30 a.m. on Sept. 22, 2008.  During the meeting,
the company's liquidator, Paul Vartelas, will provide the
attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          Paul Vartelas
          B. K. Taylor & Co.
          Level 9, 608 St. Kilda Road
          Melbourne Vic 3004


ZEPPLIN DISTRIBUTION: Placed Under Voluntary Liquidation
--------------------------------------------------------
Zepplin Distribution Pty Limited's members agreed on Aug. 4, 2008,
to voluntarily liquidate the company's business.  Frank Lo Pilato
was appointed to facilitate the sale of its assets.

The liquidator can be reached at:

          Frank Lo Pilato
          RSM Bird Cameron Partners
          Level 1, 103-105 Northbourne Avenue
          Turner ACT 2611
          Telephone: (02) 6247 5988


* AUSTRALIA: Industrials Stocks Safer Than Banks, JPMorgan Says
---------------------------------------------------------------
Australian industrials stocks are a "safe haven" amid a slowing
global economy and are better value than either financial or
resources companies, Shani Raja of Bloomberg News reports, citing
strategists at JPMorgan Chase & Co.

According to the report, Sydney-based strategist Paul Huxford said
industrials are "cheap" relative to resources and bank stocks,
citing possible slowing demand for the nation's resources from
China and softer credit conditions affecting financial companies.

"We advocate investors seek refuge in this section of the market
as a soft landing has already been priced in," Bloomberg quotes
Mr. Huxford as saying.  "The macro outlook for resources stocks
remains bleak as emerging market growth headwinds abound," while
banks face higher borrowing costs and decreased lending volumes.



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

ICBC: To Start New York Branch Operation in October
---------------------------------------------------
The Industrial and Commercial Bank of China Limited's New York
branch will start its operations in October after being granted a
business permit on Tuesday, People Daily Online News reports.

On August 7, 2008, the Troubled Company Reporter - Asia Pacific,
citing Xinhua News, reported that Industrial and Commercial Bank
of China received approval from the Federal Reserve Board to
establish a branch in New York.  The bank applied to open its
first branch in New York as part of a plan to accelerate overseas
expansion and become a global player, the report said.

"It is an exciting moment for our bank, since it marks an
important milestone for our international business development,"
the Daily cited Wu Bin, chief representative of the ICBC New York
Representative Office, as saying.

According to the report, under the license's terms, the branch
will engage in wholesale deposits, loans, trade finance, U.S.
dollar clearing, treasury and other banking businesses.

                            About ICBC

The Industrial and Commercial Bank of China --
http://www.icbc.com.cn/-- is the largest state-owned commercial
bank, and is authorized by the State Council and the People's
Bank of China.  ICBC conducts operations across China as well as
in major international financial centers.

                          *     *     *

ICBC continues to carry Fitch Ratings' Individual D/E rating.

On May 4, 2007, Moody's Investors Service affirmed Industrial &
Commercial Bank of China Ltd's Bank Financial Strength Rating at
D-.  The outlook for BFSR is stable.  The outlook for the long-
term deposit rating is positive.



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

ASCENT FAME: Court to Hear Wind-Up Petition on October 22
---------------------------------------------------------
A petition to have Ascent Fame Development Limited's operations
wound up will be heard before the High Court of Hong Kong on
October 22, 2008, at 9:30 a.m.

Chan Kin Kwan filed the petition against the company on August 25,
2008.


BRILLIANT DAYS: Requires Creditors to File Claims by October 15
---------------------------------------------------------------
The creditors of Brilliant Days Garment Manufacturing Limited are
required to file their proofs of debt by October 15, 2008, to be
included in the company's dividend distribution.

The company's liquidator is:

          Wong Kit Sang
          Tern Centre, 8th Floor, Tower 1
          237 Queen's Road Central
          Hong Kong


MAX EVER: Creditors' Proofs of Debt Due on October 13
-----------------------------------------------------
The creditors of Max Ever Holdings Limited are required to file
their proofs of debt by October 13, 2008, to be included in the
company's dividend distribution.

The company's liquidator is:

          Lee Kwok On, Alexander
          Park-In Commercial Centre, Rooms 1901-2
          56 Dundas Street, Kowloon
          Hong Kong


ORGANISATION SEARCH: Appoints Stephen and Kenneth as Liquidators
----------------------------------------------------------------
On August 26, 2008, Wong Tak Man Stephen and Chen Yung Ngai
Kenneth were appointed liquidators of Organisation Search Limited.

The Liquidators can be reached at:

         Wong Tak Man Stephen
         Chen Yung Ngai Kenneth
         Caroline Centre, 29th Floor
         Lee Gardens Two
         28 Yun Ping Road
         Hong Kong


RICH ABLE: Wind-Up Petition Hearing Set for October 22
------------------------------------------------------
The High Court of Hong Kong will hear on October 22, 2008, at
9:30 a.m., a petition to have Rich Able International Investment
Limited's operations wound up.

The petition was filed by Midland HKP Services (Administration)
Limited on August 20, 2008.

Midland's solicitors are:

          Tony Kan & Co.
          World-Wide House, Suite 1808
          No. 19 Des Voeux Road Central
          Hong Kong


SUN KEE: Placed Under Voluntary Liquidation
-------------------------------------------
At an extraordinary general meeting held on September 1, 2008, the
members of Sun Kee AV Co., Limited agreed to voluntarily wind up
the company's operations due to its inability to pay its debts
when they fall due.

The company's liquidator is:

         Tsang Yih Sun
         Kingsford Industrial Centre
         Unit 2, 8th Floor
         No. 13 Wang Hoi Road
         Kowloon Bay, Kowloon
         Hong Kong


THE INCORPORATED OWNERS: Subject to Sheung Yung's Wind-Up Petition
------------------------------------------------------------------
On July 11, 2008, Chung Sheung Yung filed a petition to have The
Incorporated Owners of Pokfulam Gardens' operations wound up.

The petition will be heard before the High Court of Hong Kong on
September 24, 2008, at 9:30 a.m.



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

LEHMAN BROTHERS: Effects of Bankruptcy on India Under RBI's Watch
-----------------------------------------------------------------
Expecting the effect of Lehman Brothers Holdings Inc.'s (Lehman)
bankruptcy filing on India's economy, the Reserve Bank of India
(RBI) has advised Indian unit, Lehman Brothers Capital Pvt Ltd,
that it would need prior approval of RBI before contracting any
direct/indirect liability from any institution in India or outside
India or making any foreign currency remittance, India Infoline
News Service reports.

According to Infoline News, the RBI is keeping a close watch on
the developments in the wake of Lehman's bankruptcy filing and is
in constant touch with banks and other market participants to
manage any fallout of these developments on the Indian markets in
an orderly manner.

Meanwhile, The Economic Times says Lehman's bankruptcy wiped off
more than Rs 2,000 crore from the market valuation of those Indian
companies in which the U.S. firm has made equity investments.

In addition, recent news reports cited by The Financial Express
says Lehman had asked a section of its BPO staff in India to quit.
In India, Lehman employs a total of 2,500 including those in the
BPO unit.

The Times relates that Lehman has recorded a loss of more than Rs
50 crore on its investments in India, which is nearly 10 per cent
of its current holding worth an estimated over Rs 500 crore.

Late last month, Lehman offloaded around Rs 400 crore of its
equity holding in nearly 10 companies, most of which were
purchased by Deutsche Bank.  Prior to the sell-off, Lehman's
Indian equity portfolio is estimated to have been worth more than
Rs 1,000 crore, which has now nearly halved to about Rs 500 crore,
the Times says.

Lehman also had equity holding in about two dozen firms at the end
of June quarter including Spice Communications, Spice Mobile,
Anant Raj Industries, Edelweiss Cap, IVRCL Infra and Tulip
Telecom, the Times adds.

Separately, the Times reports that Lehman's bankruptcy will impact
India's largest private bank ICICI Bank partly.  ICICI Bank, the
same report says, will have to take a hit of US$28 million on
account of the additional provisioning that ICICI Bank's UK
subsidiary will have to make.

ICICI Bank's UK subsidiary had investments of EUR57 million
(around US$80 million) in senior bonds of Lehman Brothers, the
Times notes.  Broking house Edelweiss foresees the UK subsidiary
would have to book mark-to-market losses of US$200 million.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

As of May 31, 2008, the Company's consolidated assets totaled
approximately US$639 billion, and its consolidated liabilities
totaled US$613 billion.

Lehman's bankruptcy petition listed US$639 billion in assets and
US$613 billion in debts, effectively making the firm's bankruptcy
filing the largest in U.S. history.  The September 15 Chapter 11
filing by Lehman Brothers Holdings Inc. does not include any of
its subsidiaries.



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

BANK TABUNGAN: Govt. Opts to Sell Stake to Buyers Rather than IPO
-----------------------------------------------------------------
The government of Indonesia opted to unload its 35% stake in Bank
Tabungan through selling it to strategic investors rather than
through initial public offering (IPO), Jakarta Post reports.

State Minister for State Enterprises Sofyan A. Djalil was cited by
The Post as saying that selling stakes via IPO was unfavorable as
the country's stock market remained jittery over the prospects for
economic growth.  The government will gain less by selling its
stake on the stock market, Mr. Djalil adds.

According to the report, the government hopes to secure at least
IDR2 trillion (US$214 million) in proceeds, which will be used for
the company's expansion program.

The Post says a number of state-owned banks, including Bank
Mandiri and Bank Negara Indonesia, have reportedly shown interest
in buying the BTN stake.

                     About Bank Tabungan

Headquartered in Jakarta, Indonesia, Bank Tabungan Negara
(Persero) -- http://www.btn.co.id/-- is a state-owned bank
involved in commercial banking.  In 1974, Bank Tabungan was
appointed as the financing institution for low- to medium-income
housing in an effort to support the Government's housing
development program.  Nonetheless, BTN suffered huge losses from
large corporate lending during the 1997 economic crisis.  The
Government then recapitalized the Bank, and still wholly owns
it.

BTN is now the smallest state bank, but retains a dominating 31%
share in housing loans as of end-2004.  In 2002, the Government
directed it to focus on commercial housing loans.  Hence, its
subsidized housing loans dropped to 44% of its portfolio at July
2005 from 75% at end-2002.

                        *     *     *

On Oct. 19, 2007, Moody's Investors Service raised the foreign
currency long-term deposit rating of Bank Tabungan Negara to "B1"
from "B2".  The rating carries a stable outlook.


PT PERTAMINA: Unit Secures US$2.2 Mil. Loan From Naxitis
--------------------------------------------------------
PT Elnusa, a unit of state oil and gas firm PT Pertamina, has
secured loans worth US$2.2 million from France-based bank Naxitis,
Jakarta Post reports.

Elnusa Corporate Secretary Heru Samodra was cited by the Post as
saying that Elnusa will use the money to purchase seismic
equipment from Sercel, a French company.

The report noted that Elnusa also received a loan from Naxitis on
July, amounting to US$4.5 million.

                       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).


PERUSAHAAN LISTRIK: To Convert Oil-Based Fuel to Gas in Two Plants
------------------------------------------------------------------
PT Perusahaan Listrik Negara (PLN) plans to convert its oil-based
fuel consumption to gas at Muara Tawar and Tanjung Priok power
plants in 2009, in a bid to reduce costs by more than
IDR5 trillion (US$531 million), Jakarta Post reports.

According to the report, PLN president Director Fahmi Mochtar
said the company will boost its gas use at the two power plants by
about 65,701 BBtu (billion British thermal units) in 2009.

The company will reduce its oil-based fuel consumption by 955,993
kiloliters at the two plants, reducing the central government's
2009 actual electricity subsidy by IDR5.33 trillion to IDR59.13
trillion, the report cites Mr. Mochtar as saying.

"We can use the funds to achieve a higher electricity penetration
to keep up with economic growth," Mr. Mochtar said.

The report, citing Mr. Mochtar, says the subsidy, combined with
the aggressive gas conversion program, could boost electricity
sales by 6.99 percent, but if without the conversion program,
growth will be closer to 5.63 percent.

                    About Perusahaan Listrik

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

                        *     *     *

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



SEMEN KUPANG: Mandiri's Stake in Final Stage of Nava's Purchase
---------------------------------------------------------------
Indian company Nava Bharat Pte. Ltd. is in the final phase of
negotiating the purchase of Bank Mandiri's 38-percent stake or
IDR50 billion shares in the ailing PT Semen Kupang, Jakarta Post
reports.

A report by the Indonesia Investment Coordinating Board says that
Nava Bharat, which is in discussion with Bank Mandiri since May
2008 with the plan, preferred to buy stake in Semen Kupang due to
the quality of raw materials on the island.

According to The Post, Nava Bharat also planned to inject funds
into Semen Kupang, to enable to meet its goal of controlling a
majority of shares and will raise production from 300,000 tons to
1 million annually in order to meet domestic and export demand.

Semen Kupang's operations were suspended on April 22, 2008, after
it failed to pay its IDR25 billion debt to PT Sewatama Jakarta,
a report by the Indonesia Investment Coordinating Board says.

The Post also noted that the company was forced to lay off nearly
600 workers as a result of the company's financial woes.

A report by Antara relates that the company almost went bankrupt
in 2007 as it was heavily indebted to Bank Mandiri with debts
reaching more than IDR159 billion.

                       About Semen Kupang

Built in 1984, Semen Kupang is the only cement producer in East
Nusa Tenggara.  Aside from Bank Mandiri's 38 percent, the central
government owns 61.5 percent stake in the company, with the
remaining 1.1 percent held by the PD Flobamor provincial company.



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

LEHMAN BROTHERS: Barclays to Buy Trading Unit, HQ for US$1.75BB
---------------------------------------------------------------
Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure.  Barclays, in a news statement, said the
transaction will create a premier integrated global bulge bracket
investment banking company with a leading presence in all major
markets and across all major lines of business including: equity
capital markets, debt capital markets, mergers and acquisitions,
commodities trading and foreign exchange.

Barclays will acquire trading assets with a current estimated
value of GBP40 billion -- US$72 billion -- and trading liabilities
with a current estimated value of GBP38 billion -- US$68 billion
-- for a cash consideration of GBP140 million -- US$250 million.
Barclays will also acquire the New York headquarters of Lehman
Brothers as well as its two data centers at close to their current
market value.

Barclays has also agreed to acquire Lehman Brothers' New York Head
Office at 745 Seventh Avenue and two data centres in New Jersey
for close to their current market value, estimated at GBP800
million -- US$1.5 billion.  The combined consideration totals some
GBP1.0 billion -- US$1.75 billion.

A conference call for analysts and institutional investors will be
hosted today by John Varley, Barclays Group Chief Executive, and
Robert E. Diamond Jr., Barclays President.  The call will commence
at 12.00 p.m. (BST).

Certain Barclays shareholders have expressed support for the
transaction and interest in increasing their shareholdings in
Barclays. The Board of Barclays expects these discussions to lead
to a subscription of at least GBP600 million -- US$1 billion -- of
additional equity. The proposed transaction with Lehman Brothers
and the additional equity would result in an enhancement of
Barclays earnings and capital ratios.

Commenting on this announcement, John Varley, Barclays Group Chief
Executive, said, "The proposed acquisition of Lehman Brothers
North American investment banking and capital market operations
accelerates the execution of our strategy of diversification by
geography and business in pursuit of profitable growth on behalf
of our shareholders, in particular increasing the percentage of
Barclays earnings sourced in North America. This transaction
delivers the strategic benefits of a combination with Lehman
Brothers core franchise, whilst meeting Barclays strict financial
criteria, and strengthening our capital ratios."

Robert E. Diamond Jr., Barclays President, said, "This is a once
in a lifetime opportunity for Barclays. We will now have the best
team and most productive culture across the world's major
financial markets, backed by the resources of an integrated
universal bank. We welcome the opportunity to add Lehman's people
and capabilities to the Barclays team."

Herbert H. McDade III, Lehman Brothers Chief Operating Officer,
said, "Lehman Brothers strength has always been our client
franchise. With this transaction, we have the opportunity to
continue the growth and development of our US investment banking
and capital market franchises with one of the leading financial
institutions in the world. Together with Barclays, these
businesses will be a part of a global financial services
powerhouse delivering a comprehensive suite of products and
services to our clients."

    1. Transaction Structure

The Lehman Brothers operations to be acquired in the transaction
have approximately 10,000 employees, trading assets currently
estimated to have a value of GBP40 billion -- US$72 billion -- and
liabilities currently estimated to have a value of GBP38 billion
-- US$68 billion.  The Lehman Brothers operations include Lehman
Brothers North American fixed income and equities sales, trading
and research and investment banking businesses.

The Acquisition is subject to a number of conditions including the
approval of the United States Bankruptcy Court for the Southern
District of New York. Lehman Brothers is filing an emergency
motion with the Bankruptcy Court to seek a hearing to obtain
approval for the Acquisition.  The Acquisition is also subject to
certain usual conditions including receipt of necessary regulatory
approvals and US antitrust clearances. The agreement for the
Acquisition may be terminated if it is not completed by September
24, 2008.

    2. Transaction Benefits

The Acquisition will combine two strong client franchises and
product offerings, with the potential to create significant value
for Barclays shareholders.  The Lehman Brothers businesses are a
highly complementary fit for Barclays investment banking business,
Barclays Capital. The combined business will be a premier global
investment bank with an increased presence in the US and an
enhanced product offering. Among other benefits, the combination
of the two businesses will:

  -- confirm Barclays Capital as a leading debt capital markets
     house globally;

  -- have a top 3 position in the US capital markets, the largest
     in the world;

  -- extend Barclays Capital's range of investment banking
     products, with the addition of Lehman Brothers strong
     US M&A and equitycapital markets franchises; and

  -- strengthen Barclays Capital's hedge fund franchise through
     the addition of prime brokerage and cash equity capabilities.

The Acquisition will result in the proportion of Barclays revenues
derived from the US rising significantly. Given the strong
cultural fit, Barclays intends to achieve a rapid integration so
as to minimise disruption to employees, clients and
counterparties.

    3. Barclays Current Trading

Barclays has traded satisfactorily in July and August. The monthly
run rate for the Group's profit before tax in these months was
slightly lower than the average for the first half of the year,
reflecting usual seasonality. All businesses were profitable.

    4. Employees and Management

The acquired businesses will be merged into Barclays Capital,
which forms part of Barclays Investment Banking and Investment
Management of which Robert E. Diamond Jr., is Chief Executive.

    5. Share Issue

Further details of the expected issue of new shares in connection
with the Acquisition will be published in due course.

    6. Advisers

Barclays Capital, Credit Suisse Securities (Europe) Limited,
Deutsche Bank AG, London Branch and JPMorgan Cazenove Limited are
acting as financial advisers to Barclays. Credit Suisse Securities
(Europe) Limited and JPMorgan Cazenove Limited are joint corporate
brokers to Barclays. Clifford Chance LLP and Cleary Gottlieb Steen
& Hamilton LLP are acting as legal advisers to Barclays.

    7. Analyst and Investor conference call

To access the live conference call please dial 0845 401 9092 (UK
callers) or +44 20 3023 4419 (all other locations). Access code:
"Barclays Announcement". A live webcast of the conference call
will also be available at www.barclays.com/investorrelations.

A replay of the conference call and webcast will be available
after the event.  Access will be available via the Barclays
investor relations Web site.  For further information please
contact:

    Investor Relations / Media Relations
    Mark Merson / Leigh Bruce
    +44 (0) 20 7116 5752
    +44 (0) 7826 910292 /
    +44 (0) 20 7773 7371

    John McIvor / Simon Eaton
    +44 (0) 20 7116 2929
    +44 (0) 7917 068479 /
    +44 (0)20 3134 2111

    Peter Truell

    +1 212 412 7576 /
    +1 917 826 8636

Barclays Capital is acting for Barclays PLC and Barclays Bank PLC.
Credit Suisse Securities (Europe) Limited, is acting as joint
financial adviser and joint corporate broker to Barclays Bank PLC
and Barclays PLC.  Deutsche Bank AG, London branch, and JPMorgan
Cazenove Limited act as joint financial advisor.  JPMorgan also
serves as joint corporate broker.

                         About Barclays

Barclays is a major global financial services provider engaged in
retail and commercial banking, credit cards, investment banking,
wealth management and investment management services with an
extensive international presence in Europe, the United States,
Africa and Asia.  With more than 300 years of history and
expertise in banking, Barclays operates in more than 50 countries
and employs approximately 147,000 people.  On the Net:
http://www.barclays.com/

The announcement was made two days after abandoning its plan of
acquiring Lehman Brothers Holdings Inc.

"If Barclays can buy these assets with limited liability, that
would make sense.  It would also mean Barclays moves into
equities, which on the plus side diversifies the revenue mix,"
Bloomberg quoted Mamoun Tazi, a London-based analyst at MF Global
Securities Ltd., as saying.

Meanwhile, independent.co.uk reported that the sale talks are
focused on the so-called "clean parts" of Lehman Brothers' U.S.
operations including core investment banking infrastructure and
staff, and none of its mortgage-related assets that ran the
company aground.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
$639 billion in assets and $613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.  Harvey R. Miller,
Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y.
Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal &
Manges, LLP, in New York, represent Lehman.  Epiq Bankruptcy
Solutions serves as claims and noticing agent.

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008. The joint
administrators have been appointed to wind down the business.

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


LEHMAN BROTHERS: Organizational Meeting Tuesday to Form Panel
-------------------------------------------------------------
Diana Adams, United States Trustee for Region 2, called an
organizational meeting in the Chapter 11 case of Lehman Brothers
Holdings Inc., on September 16, 2008, at 6:00 p.m., at The
Helmsley Park Lane Hotel, 36 Central Park South, in New York.  The
purpose of the meeting was to form an official committee or
committees of unsecured creditors in Lehman Brothers' case.

The organizational meeting is not the meeting of creditors
held pursuant to Section 341 of the Bankruptcy Code.  A
representative of Lehman Brothers, however, may attend the
organizational meeting to provide information about the status of
the company's bankruptcy case.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
$639 billion in assets and $613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.  Harvey R. Miller,
Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y.
Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal &
Manges, LLP, in New York, represent Lehman.  Epiq Bankruptcy
Solutions serves as claims and noticing agent.

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008. The joint
administrators have been appointed to wind down the business.

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


MITSUBISHI MOTOR: To Increase Vehicle Prices in Japan
-----------------------------------------------------
Mitsubishi Motors Corporation will increase the prices of some of
its vehicle in Japan due to soaring raw material costs, Jiji Press
reports.

The company, the Wall Street Journal relates, said it will
increase  prices by 2.9%, on average for three commercial vehicles
that Mazda Motor Corp., produces for the company.

According to the Press, Mitsubishi will raise the prices of
Delica Truck, Delica Van and Delica Cargo by a uniform JPY50,000 ,
or 2.9% on average, from Oct. 1.

Japanese car makers, WSJ says, raised prices in some overseas
markets this year as higher prices of steel and other raw
materials needed to build cars are squeezing their profitability.
However, they had been cautious that Japanese customers wouldn't
easily accept price increases as Japanese companies usually raises
domestic prices only when they redesign existing models, the same
report notes.

The auto firm's are also concerned that price increases could
further reduce consumer appetite in the domestic market, where
auto sales will likely fall to the lowest level in decades this
year, WSJ adds.

                     About Mitsubishi Motors

Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation
-- http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.

The company also operates consumer-financing services and
provides this to its customer base.  MMC adopted the Mitsubishi
Motors Revitalization Plan on Jan. 28, 2005, as its three- year
business plan covering fiscal 2005 through 2007, after investor
DaimlerChrysler backed out from the company.  The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."

The company has operations worldwide, covering the United
States, Germany, the United Kingdom, Italy, the Netherlands, the
Philippines, Indonesia, Malaysia, China and Australia.  Its
products are sold in over 170 countries.

                           *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
August 11, 2008, JCR affirmed the BB/Stable, J-3 and BB- ratings
on senior debts, CP program and Euro Medium Term Note Programme of
the issuer, respectively.

On May 29, 2008, Moody's Investors Service upgraded the senior
unsecured ratings of Mitsubishi Motors Corporation (MMC) and its
supported subsidiaries, Mitsubishi Motors Credit of America,
Inc., and MMC International Finance (Netherlands) B.V., to Ba2
from Ba3.  The rating outlook is positive.  The action concludes


PYLOS II: S&P Withdraws BB+ Rating on JPY12.9 Bln Redeemed Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services has withdrawn its rating on
the notes issued under the Pylos II Ltd. transaction issued in
July 31, 2002.  The notes have been fully redeemed after the
transaction received an additional cash injection from the
originator.

On March 15, 2007, S&P placed its rating on the notes on
CreditWatch with negative implications, citing concern over
deterioration in the transaction's performance.  Subsequently,
S&P lowered the rating and kept it on CreditWatch with negative
implications.

The transaction hit various triggers, which were waived based on
an agreement among the relevant parties. In addition, the
relevant parties agreed to amend the redemption schedules in July
2007.  The redemption of principal proceeded based on the amended
schedules.

The notes were ultimately backed by pools of unsecured consumer
loan receivables originated by Sanwa Finance Co. Ltd.

Rating Withdrawn:

Pylos II Ltd. Notes due August 2013

  -- JPY12.9 billion: BB+/Watch Negative



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

LEHMAN BROTHERS: Regulator Bans Korean Operations Until Dec. 15
---------------------------------------------------------------
Korea's financial regulator, the Financial Services Commission,
banned Lehman Brothers Holdings Inc.'s Korean units from selling
and repaying debts until Dec. 15., the day after parent firm filed
for bankruptcy in the U. S., Yonhap News reports.

As reported by the Troubled Company Reporter on September 16,
2008, Lehman Brothers Holdings Inc. filed a petition under Chapter
11 of the U.S. Bankruptcy Code with the United States Bankruptcy
Court for the Southern District of New York early morning on
September 15.  The report said that none of the broker-dealer
subsidiaries or other subsidiaries of the were included in the
Chapter 11 filing and all of the broker-dealers will continue to
operate.

According to Yonhap News, Lehman's Seoul units will also be
prohibited from receiving deposits, trading stocks and
transferring money overseas.

The commission, the same report relates, said the ban was aimed at
"protecting investors at home and preventing potential chaos in
local financial markets."

The Korean Times notes that Seoul's benchmark stock index plunged
6.54% on the news of Lehman's bankruptcy and U.S. insurance giant
American International Group Inc.'s struggle for survival after
being battered by mortgage losses.  Asia Pulse relates that the
Korean won currency also plunged by KRW50.9 to close at 1,160.0
versus the U.S. dollar, marking the biggest one-day loss since
August 1998, as local banks scrambled to buy the U.S. currency.

"The situation in the U.S. financial markets appears to be bad
because Lehman filed for bankruptcy only three days after it
announced a plan to sell its assets," the Pulse cited Shim Jae-
yeop, a senior analyst at Meritz Securities Co. in Seoul, as
saying.  Mr. Shim couldn't rule out the possibility of more
failures in other U.S. financial companies linked to transactions
with Lehman, the same report says.

Government officials, Yonhap News says, tried to calm the market
by assuring the public that Lehman's demise would probably erase
uncertainties in global financial markets in the long term.  "In
the long term, it could contribute to the easing of the credit
crunch by quickly removing market instability," the same report
cited Vice Finance Minister Kim Dong-soo as saying.

               Government to Provide Liquidity

Reports say that Korea's finance ministry and the Bank of Korea
would act "if necessary."  Mr. Kim said that the government will
provide liquidity to stabilize the nation's financial markets in
the wake of Lehman's collapse.  "The government and the Bank of
Korea will take steps against excessive fluctuations in foreign
exchange markets," he said, as cited by Asia Pulse.

The presidential office, Asia Pulse relates, will also hold an
emergency meeting with economy-related ministers to discuss
potential measures to stabilize the markets.

As of the end of July, the Lehman units in Seoul had a total of
KRW1.6 trillion (US$1.44 billion) in assets from investors.

South Korean financial companies held about US$720 million in
securities linked to Lehman.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com -- serves
the financial needs of corporations, governments and
municipalities, institutional clients and high-net-worth
individuals worldwide.  The company provides an array of services
in equity and fixed income sales, trading and research, investment
banking, asset management, private investment management and
private equity.  The company operates three business segments:
Capital Markets, Investment Banking and Investment Management.
Lehman Brothers generates client-flow revenues from institutional,
corporate, government and high-net-worth clients by advising on
and structuring transactions; serving as a market maker and/or
intermediary in the global marketplace, including having
securities and other financial instrument products; originating
loans for distribution to clients in the securitization or
principals market; providing investment management and advisory
services, and acting as an underwriter to clients.


MAGNACHIP: Moody's Lowers Corporate Family Rating to Caa1
---------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of MagnaChip Semiconductor LLC (MagnaChip) to Caa1 from B2.

At the same time, Moody's has downgraded these ratings for debt
issued by MagnaChip Semiconductor Finance Co (US) and MagnaChip
Semiconductor SA:

   * US$100 million 5-year senior secured credit revolver to B3
     from B1;

   * US$500 million aggregate floating- and fixed-rate second-
     priority senior secured notes due 2011 to Caa1 from B2; and

   * US$250 million senior subordinated notes due 2014 to Caa3
     from Caa1

The outlook for the ratings is negative.

"The downgrade has been prompted by MagnaChip's tight liquidity
situation and its weaker than expected operating performance as
reflected in its 1H08 results," says Ken Chan, a Moody's Vice
President, adding, "This is the result of a continual cash burn in
its core business against a challenging operating backdrop.
Moody's does not expect such situation to turnaround in the near
term given that the company has recently revised down its 2H08
revenue guidance."

"A tight liquidity situation over the next few quarters is a major
concern for the company, with cash on hand declines to around
US$25 million," says MR. Chan, also Moody's lead analyst for
MagnaChip, adding, "The company is unlikely to meet the liquidity
requirement under the committed US$100M revolver upon expiry of
the waiver by the year end.  It has to renegotiate with its
creditors for the relaxation of the terms for the next 12 months,
which remains uncertain at this stage."

While Moody's notes that the company is in the process of
arranging a US$50 million first lien financing, it may only
alleviate its tight liquidity position in the next few quarters.

There will be additional refinancing risk for the maturity of the
US$100 million revolver in December 2009.  Without a near-term
meaningful recovery in its operating performance and the securing
of additional funding sources, MagnaChip may have difficulties in
servicing its next few coupon payments.

The negative outlook reflects the company's tight liquidity
situation against a challenging operating backdrop.

The possibility of a rating upgrade is remote, given the current
negative outlook and the tight liquidity profile.

On the other hand, if the company fails to improve its financial
performance, thereby further weakening its balance sheet
liquidity, such that the company is unlikely to meet its upcoming
interest payment, would pressure the ratings.

MagnaChip Semiconductor LLC, headquartered in Korea, designs,
develops and manufactures mixed-signal and digital multimedia
semiconductors.  It also focuses on complementary metal-oxide
semiconductor image sensors and flat panel display drivers. It was
the system integrated circuit division of Hynix before its carve-
out acquisition by financial sponsors, including CVC, Francisco
Partners and CVC Asia Pacific in October 2004.



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

AIR NEW ZEALAND: Installs Zonal Dryers to Reduce Fuel Consumption
-----------------------------------------------------------------
Air New Zealand Ltd will retrofit zonal dryers supplied by CTT
Systems Inc of Sweden across four of its jet fleets to reduce fuel
burn and consequent emissions.

The electrically-powered dryers, mounted in the space above the
ceiling or under the floor, reduce moisture trapped in insulation
between the aircraft outer skin and cabin lining. They typically
remove around 200 kilogrammes of water from each aircraft, which
reduces fuel consumption.

Air New Zealand expects to save 500,000 US gallons of fuel a year
across 42 aircraft, reducing carbon emissions by 4700 tonnes a
year.

General Manager Airline Operations Captain David Morgan says Air
New Zealand was already a world leader in refining flight
operations to reduce its environmental impact and fuel burn long
before rising fuel costs put the focus on fuel efficiency.

Over the four years from 2004 until March 2008, Air New Zealand's
fuel saving initiatives have saved 9.7 million US gallons of fuel
and reduced carbon dioxide emissions by 90,963 tonnes.  The
airline is using 36 million litres less fuel on an annual basis
delivering a saving of approximately $43 million each year.

The zonal dryers are part of a range of modifications to the
current fleet planned through to 2010 that will produce further
fuel and emission savings.

Captain Morgan says CTT's zonal dryer technology delivers other
benefits which strengthened the business case.

"Reducing fuel burn and emissions got our attention, but reducing
moisture also improves the insulation's effectiveness; it results
in a healthier cabin environment and reduces the potential for
corrosion.

"Once we had proved the range of benefits to our satisfaction the
decision was obvious and we moved quickly to capture the benefits
across our four jet aircraft fleets."

Captain Morgan says each passenger exhales round 100 grams of
water an hour and the cold outside temperatures at altitude
generate significant condensation which is retained in the
aircraft insulation.

"Installing these dryers will improve the environment both inside
and outside the aircraft," says Captain Morgan.

Air New Zealand will install CTT dryers throughout its Boeing 777,
767, 737 and Airbus A320 fleets.

                     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.


COMPLETE FINANCIAL: Proofs of Debt Due on September 30
------------------------------------------------------
In accordance with Section 241 of the Companies Act 1993, the
shareholders of Complete Financial Solutions Limited placed the
company under liquidation and appointed Andrew John McKay and John
Joseph Cregten, of Auckland, as liquidators.

Creditors are required to file their proofs of debt by Sept. 30,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

            Sri Maxwell
            Level 15, AMP Centre
            29 Customs Street West (PO Box 532)
            Auckland
            Telephone: (09) 358 1230
            Facsimile: (09) 358 3646


DALLENGER DEVELOPMENTS: Commences Liquidation Proceedings
---------------------------------------------------------
The High Court at Auckland held a hearing on Sept. 11, 2008, to
consider an application putting Dallenger Developments Limited (as
trustees in the Dallenger Development Trust) into liquidation.

The application was filed on May 27, 2008, by Design Network Hutt
Limited

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.


DOLPHIN CONSTRUCTION: Placed Company Under Liquidation
------------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of  Dolphin Construction Limited resolved that the
company be liquidated and that Digby John Noyce and Keith
Mawdsley, chartered accountants of RES Corporate Services Limited,
be appointed as liquidators.

Creditors who were unable to prove their debts on Sept. 8, 2008,
are excluded from the dividend distribution.

The liquidators can be reached at:

          RES Corporate Services Limited
          PO Box 302612
          North Harbour, Auckland
          Telephone: (09) 918 3690
          Facsimile: (09) 918 3691


EMPIRE CONSTRUCTION: Shephard and Dunphy Appointed as Liquidators
-----------------------------------------------------------------
Pursuant to Section 255(2) of the Companies Act 1993, Iain Bruce
Shephard and Christine Margaret Dunphy were appointed as
liquidators of  Empire Construction (NZ) Limited on Aug. 18, 2008.

The liquidators can be reached at:

          Shephard Dunphy Limited
          Level 2, Zephyr House
          82 Willis Street, Wellington
          Telephone: (04) 473 6747
          Facsimile: (04) 473 6748


FP NORTH: Proofs of Debt Due on September 30
--------------------------------------------
In accordance with Section 241 of the Companies Act 1993, the
shareholders of FP North Limited placed the company under
liquidation and appointed Andrew John McKay and John Joseph
Cregten, of Auckland, as liquidators.

Creditors are required to file their proofs of debt by Sept. 30,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

            Sri Maxwell
            Level 15, AMP Centre
            29 Customs Street West (PO Box 532)
            Auckland
            Telephone: (09) 358 1230
            Facsimile: (09) 358 3646


PF PLATFORM: Proofs of Debt Due on September 30
-----------------------------------------------
In accordance with Section 241 of the Companies Act 1993, the
shareholders of FP Platform Limited placed the company under
liquidation and appointed Andrew John McKay and John Joseph
Cregten, of Auckland, as liquidators.

Creditors are required to file their proofs of debt by Sept. 30,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

            Sri Maxwell
            Level 15, AMP Centre
            29 Customs Street West (PO Box 532)
            Auckland
            Telephone: (09) 358 1230
            Facsimile: (09) 358 3646


MICENTRE LIMITED: Proofs of Debt Due on September 30
----------------------------------------------------
In accordance with Section 241 of the Companies Act 1993, the
shareholders of Micentre Limited placed the company under
liquidation and appointed Andrew John McKay and John Joseph
Cregten, of Auckland, as liquidators.

Creditors are required to file their proofs of debt by Sept. 30,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

            Sri Maxwell
            Level 15, AMP Centre
            29 Customs Street West (PO Box 532)
            Auckland
            Telephone: (09) 358 1230
            Facsimile: (09) 358 3646


SECURAPORT LIMITED: Shephard and Dunphy Appointed as Liquidators
-----------------------------------------------------------------
Pursuant to Section 255(2) of the Companies Act 1993, Iain Bruce
Shephard and Christine Margaret Dunphy were appointed as
liquidators of  Securaport Limited on Aug. 18, 2008.

The liquidators can be reached at:

          Shephard Dunphy Limited
          Level 2, Zephyr House
          82 Willis Street, Wellington
          Telephone: (04) 473 6747
          Facsimile: (04) 473 6748


SHELDRAKE LIMITED: Parsons and Kenealy Appointed as Liquidators
---------------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Dennis
Clifford Parsons and Katherine Louise Kenealy were appointed
liquidators of  Sheldrake Limited on Aug. 20, 2008.

The liquidators can be reached at:

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


ROBERT BROWN: Commences Liquidation Proceedings
-----------------------------------------------
The High Court at Christchurch convened a hearing on Sept. 8,
2008, to consider an application putting Robert Brown Developments
Queenstown Limited into liquidation.

The application was filed on July 24, 2008, by Bridgecorp Limited.

The plaintiff's address for service is at:

          Chapman Tripp Sheffield Young
          Level 35, ANZ Centre
          23-29 Albert Street, Auckland

Michael David Arthur is the plaintiff's solicitor.



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

NIHAO MINERAL: Unit Inks Operating Agreement With Concorde Nube
---------------------------------------------------------------
Nihao Mineral Resources International Inc. disclosed with the
Philippine Stock Exchange that an Operating Agreement was executed
between Companhia Nube Minerale, Inc. and Concorde International
Mineral Mining Corp..  Nube Minerale is a corporation controlled
by Nihao Mineral Resources International, Inc. through its wholly-
owned subsidiary Mina Tierra Gracia, Inc.

Under the Operating Agreement, Concorde transferred to Nube
Minerale the physical possession and beneficial use, including the
exclusive right to develop and operate for the extraction or
nickel, the 2,564 hectare area covered by Concorde's Exploration
Permit Application AEP-III-26-07 for a period of five years,
renewable for another five years upon mutual agreement of the
parties.

Nube Minerale agreed to pay Concorde a royalty fee per metric ton
of nickel shipped based on the average LME current nickel price,
with escalation in the event of increase in nickel prices.  Nube
Minerale was further given first priority in the event that
Concorde decides to enter into a joint venture agreement covering
other minerals in the Concorde AEP area.

                       About NiHAO Mineral

Headquartered in Makati City, Philippines, NiHAO Mineral
Resources International Inc. was originally incorporated on July
9, 1975 as Summit Minerals Inc., a company engaged in mining
exploration.  On February 24, 1994, the Securities and Exchange
Commission approved the change in the company's primary purpose
to that of a holding company and the change in its corporate
name to Magnum Holdings Inc.  On June 28, 2007, the SEC approved
another change in the company's primary purpose to that of
exploration, development and operation of mineral properties and
the mining of metallic and non-metallic minerals.  The company
also subsequently changed its corporate name to NiHAO Mineral
Resources International Inc.

The operations of NiHAO have been suspended since August 2000.
The suspension is for the purpose of minimizing the losses
occasioned by unfavorable business conditions.


* PHILIPPINES: Posts US$187.5MM Inflow of Investments in August
---------------------------------------------------------------
Net inflows of foreign portfolio investments in August 2008
amounted to US$187.5 million, substantially higher than the
US$20.2 million level in July, data from Bangko Sentral ng Pilinas
shows.

"The softening of global oil prices was a major contributory
factor to the more favorable investor sentiment during the month.
Strong first-semester earnings results of several corporations
have also positively influenced foreign investors," the Governor
said.

Registration of foreign investments with the Bangko Sentral
entitles the investor to buy foreign exchange from the banking
system for capital repatriation and remittance of
dividends/earnings that accrue on the investments.

On a gross basis, registered foreign portfolio investments
aggregated US$740.5 million, 72 percent of which went to shares
listed in the Philippine Stock Exchange (PSE).  Investments in
peso-denominated government securities and in peso-bank deposits
accounted for 26 percent and 2 percent, respectively.  On the
other hand, capital repatriations totaled US$553.0 million and
were traced to withdrawals of investments in (a) PSE-listed shares
(42 percent); (b) government securities (22 percent); and (c) peso
bank deposits and money market instruments (for a combined 36%).

   January-August 2008 Flows

For the first eight months of the year, transactions resulted in
outflows of US$209.5 million, in contrast to the nearly
US$3.4 billion net inflow for the comparable period in 2007.
Concerns about the state of the global economy, particularly the
U.S., have made investors more risk averse.  By type of
instrument, investments in PSE-listed shares, peso-denominated
government securities, and money market instruments posted net
inflows of over US$1.6 billion, US$72.3 million, and
US$2.6 million, respectively, while placements in peso bank
deposits showed a net outflow of US$1.9 billion.

Gross investment inflows reached close to US$6.6 billion during
the period.  This was 58 percent of the US$11.2 billion recorded
for the same period last year.  Placements in PSE-listed shares of
over US$4.4 billion (47 percent of which went to
telecommunications and property firms) represented only 68 percent
of the total and were less than half the US$9.3 billion posted in
2007.  Investments in peso-denominated government securities of
almost US$1.6 billion (24 percent) were 12 percent lower than last
year's total of US$1.8 billion.  Meanwhile, investments in bank
deposits rose significantly by 294 percent to US$559.2 million to
account for an 8 percent share of total investment flows.
Placements in money market instruments made up less than
1 percent.  The United Kingdom, Singapore and the United States
were the top three investor countries, contributing 68 percent of
investment funds during the period.

Meanwhile, gross capital outflows amounted to US$6.8 billion,
14 percent lower than the 2007 level of nearly US$7.9 billion.
These outflows took the form of withdrawals of investments from
listed shares (41 percent of total), government securities (22
percent), money market instruments, and peso bank deposits (for  a
combined 37 percent).



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

CULTURE DE LINGERIE: Court Enters Wind-Up Order
-----------------------------------------------
On August 29, 2008, the High Court of Singapore entered an order
to have Culture De Lingerie Pte. Ltd.'s operations wound up.

Malayan Banking Berhad filed the petition against the company.

The company's liquidator is:

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


LEGION HOLDINGS: Requires Creditors to File Claims by October 13
----------------------------------------------------------------
Legion Holdings Pte Ltd, which is in voluntary liquidation,
requires its creditors to file their proofs of debt by October 13,
2008, to be include in the company's dividend distribution.

The company's liquidator is:

         Lai Seng Kwoon
         c/o 16 Raffles Quay
         #22-00 Hong Leong Building
         Singapore 048581


LOUIS YEAP: Court to Hear Wind-Up Petition on September 26
----------------------------------------------------------
A petition to have Louis Yeap Realty Pte Ltd's operations wound up
will be heard before the High Court of Singapore on September 26,
2008, at 10:00 a.m.


Asia Premier Property Consultants filed the petition against the
company on September 4, 2008.

Asia Premier's solicitor is:

         Messrs. Assomull & Partners
         111 North Bridge Road
         #22-04/05/06 Peninsula Plaza
         Singapore 179098


* SINGAPORE: SGX Suspends Lehman from Taking New Securities
-----------------------------------------------------------
The Singapore Stock Exchange (SGX) has suspended Lehman Brothers
Pte Ltd (LBPL) from taking on new securities and derivatives
positions.

SGX is facilitating the orderly transfer of customers' derivatives
positions from LBPL to other brokers.  At present, LBPL is meeting
their financial obligations to SGX's securities and derivatives
clearing houses.

SGX will continue to monitor the situation and maintain the
orderly function of the markets.



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

LEHMAN: Taiwan Unit's Investors May Seek Damages From Parent Firm
-----------------------------------------------------------------
The Financial Supervisory Commission, Taiwan's watchdog, said it
would help investors of Lehman Brothers Holdings Inc.'s Taiwan
unit to file for damages against its parent firm if the need
arises, Business News reports.

The commission, the report relates, ordered Lehman's Taiwan office
to suspend operations until the parent company's financial crisis
is over.

As reported by the Troubled Company Reporter on September 16,
2008, Lehman Brothers Holdings Inc. filed a petition under Chapter
11 of the U.S. Bankruptcy Code with the United States Bankruptcy
Court for the Southern District of New York early morning on
September 15.  The report said that none of the broker-dealer
subsidiaries or other subsidiaries of the were included in the
Chapter 11 filing and all of the broker-dealers will continue to
operate.

The local benchmark TAIEX stock index, The China Post relates,
percipitated in a steep and combined loss of 554 points in the
first two days of trading this week, compared with the sharp fall
of 504 points in the Dow Jones industrial average index on Monday.

Taiwan Stock Exchange executives conducted an audit check at the
office of Lehman Brothers in accordance with the enforcement
regulations concerning TSE business operations, but have found no
abnormalities  except it voluntarily ceased in securities trading
on September 16, according to The Post.

The Post says that a large number of financial institutions in
Taiwan have made investments in the bonds and other securities
issued, guaranteed by, or related to the Lehman Brothers Group.

Among the local financial institutions, Hua Nan Commercial Bank
revealed that it still holds about NT$440 million worth of such
bonds, The Post says.  Hua Nan executives said they have taken
necessary actions to secure the NT$1.7 billion loan extended to
the local branch of Lehman Brothers, the same report adds.

In addition to engaging in securities investment, the Taiwan
branch of Lehman Brothers has also been making investment in the
transactions of non-performing loans and delinquent assets on the
Taiwan market.

Taiwan's institutional and retail investors have about NT$80
billion (US$2.5 billion) of exposure in Lehman investments.

Moreover, Business News notes that some Taiwan investors have
asked the commission to freeze the assets of Lehman Brothers'
Taiwan office to cover their potential losses, but the commission
said that if there are losses, the parent company is responsible,
not its unit in Taiwan.  If there is a need, it would help Taiwan
investors seek damages from the parent company, the commission
added.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com -- serves
the financial needs of corporations, governments and
municipalities, institutional clients and high-net-worth
individuals worldwide.  The company provides an array of services
in equity and fixed income sales, trading and research, investment
banking, asset management, private investment management and
private equity.  The company operates three business segments:
Capital Markets, Investment Banking and Investment Management.
Lehman Brothers generates client-flow revenues from institutional,
corporate, government and high-net-worth clients by advising on
and structuring transactions; serving as a market maker and/or
intermediary in the global marketplace, including having
securities and other financial instrument products; originating
loans for distribution to clients in the securitization or
principals market; providing investment management and advisory
services, and acting as an underwriter to clients.



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

* Fitch Reports Prelim. Findings on Exposure to LBHI by AP Banks
----------------------------------------------------------------
Fitch Ratings has announced preliminary findings from its
investigation of exposure to Lehman Brothers held by banks in the
Asia Pacific Region.  These suggest that, for the most part, net
exposures are small and the direct impact on banks will be
limited.  However, the agency will continue to investigate the
full extent of these banks' on-and-off-balance sheet exposures and
take account of potential losses that will add to the existing
burden of writedowns stemming from the credit crisis.

The largest exposures are held by banks in Japan. Lehman's
bankruptcy filing lists Japan's largest unsecured lenders as
including Aozora Bank with US$463 million, Mizuho Corporate Bank
with US$382m, Shinsei Bank, Ltd with US$231 million, Mitsubishi
UFJ Trust and Banking Corp with US$185 million, Sumitomo Mitsui
Banking Corporation with US$177 million and Chuo Mitsui Trust &
Banking Company with US$93 million.

The full picture is more complex than the above unsecured loan
numbers suggest.  Chuo Mitsui has acknowledged total exposure of
JPY15bn (about US$150 million), while SMBC has acknowledged total
gross exposure of US$980 million of which US$880 million is
secured, leaving net exposure of around US$100 million.  Shinsei
has reported total exposure of JPY38 billion.  Aozora Bank's
exposure appears somewhat larger but it had previously taken
action to mitigate the risks with the result that its net exposure
is much lower.  It states that its "hedging instruments" reduce
its exposure by US$255 million and collateral pledged by a further
US$180 million, estimating that its "projected exposure" could be
reduced to less than US$25m.

For all the banks the exposures are small in relation to equity
capital but provisions could adversely affect earnings - this is
at a time when banks are already absorbing other losses arising
from the credit crisis.  Fitch is currently undertaking its annual
ratings review of the major Japanese banks and will incorporate
the impact of such potential losses as well as broader market
developments into its analysis.

Australian banks have not released comprehensive information but
Commonwealth Bank of Australia has stated that its exposure is
less than AU$150 million.  Australia & New Zealand Banking Group
was mentioned in Lehman's bankruptcy filing with US$69 million in
unsecured loans and has stated that its total exposure is US$120
million, of which US$92 million is to subsidiaries of the holding
company.  The filing also shows that both ANZ and National
Australia Bank had small exposures in the form of letters of
credit.  NAB has stated that its total exposure to Lehman is less
than AU$100 million.  Westpac Banking Corporation has indicated
that its exposures are under AU$10 million, while both Macquarie
Bank Ltd. and St.George Bank Limited have said their exposures are
immaterial.

Korea's financial sector regulators have disclosed that the whole
system has exposure of US$720 million.  Only US$28 million is in
the form of loans; a further US$290 million is in securities
including Credit-Linked Notes and US$390 million in equity-related
derivatives where the Korean financial institutions sold equity-
linked investments to clients and did back-to-back hedges with
Lehman.  The direct risk to Korean banks appears small; that of
Korea's securities firms may be more significant and will be
subject to further investigation by Fitch.

Taiwanese banks were also named in Lehman's bankruptcy filing as
significant unsecured lenders: Hua Nan Commercial Bank with
US$59 million, both First Commercial Bank (Taiwan) and Bank of
Taiwan each with US$25 million and Taipei Fubon Bank with US$10
million.  Potential losses may impact earnings but are not very
material - Hua Nan's exposure is about 2.4% of its equity capital.
Preliminary data disclosed by Taiwan Financial Supervisory

Committee indicates that the Taiwanese financial system as a whole
has US$2.5 billion exposures related to Lehman credits, of which
half were held by financial institutions and half by retail
investors through various wealth management vehicles.  The
exposures borne by financial institutions represent about 2% of
the system's capital base.  Fitch is in the process of collecting
further details on Taiwanese banks' exposure to Lehman's fallout
as well as other US market-related exposures that could
potentially cause material losses.

Among Chinese banks, only Bank of China was listed as a
significant unsecured lender with US$50 million but potential
losses are not material for a bank of BOC's size.

Thai banks have generally limited exposure, with Bangkok Bank
Public Company Limited the highest at THB3.5 billion accounting
for only 2% of its equity.  Among Indian banks, ICICI Bank Ltd.
has disclosed exposure of a modest EUR57 million.  The three
Singapore banks have indicated that their direct exposure is not
material.  Data from banks in Hong Kong is not yet complete, but
among the banks that have provided information none so far have
acknowledged a material exposure to Lehman.


* S&P Eyes Neg. Effect on Global CDOs from Lehman Chap. 11 Filing
-----------------------------------------------------------------
Standard & Poor's Ratings Services stated it expects to place its
ratings on a large number of tranches from global synthetic
collateralized debt obligation (CDO) transactions with exposure
to Lehman Bros. and American International Group Inc. on
CreditWatch with negative implications, many of which will likely
lead to downgrade actions.  The forthcoming rating actions on
rated synthetic CDO transactions follow the recent downgrade
actions affecting Lehman Bros. Holdings Inc., its subsidiaries,
and AIG.

Lehman Bros. Holdings Inc. filed for Chapter 11 bankruptcy
protection on Sept. 15, 2008, which triggered a credit event, as
defined by the International Swaps and Derivatives Association
(ISDA). The credit default swaps that underlie synthetic CDO
transactions generally look to the ISDA credit derivative
definitions to determine what constitutes a credit event for a
given reference obligation in a CDO.

A large number of rated synthetic CDO transactions reference
Lehman Bros. and AIG: 1,889 global transactions with 2,634 rated
tranches have exposure to Lehman Bros. and 1,619 global
transactions with 2,323 rated tranches have exposure to AIG.  A
large portion of these transactions, however, have overlapping
exposure to both Lehman Bros. and AIG.  The list below summarizes
the number of transactions and tranches with exposure to Lehman
Bros. and AIG, categorized by region.

Synthetic CDO Exposure to Lehman and AIG:

   Location                       Lehman      AIG
   -----------------------------------------------
   U.S.          No. Of deals      672        546
   U.S.          No. Of tranches   994        861
   Europe        No. Of deals      999        819
   Europe        No. Of tranches   1,364      1,153
   Asia Pacific  No. Of deals      104        124
   Asia Pacific  No. Of tranches   119        142
   Japan         No. Of deals      114        130
   Japan         No. Of tranches   157        167




                         *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Marites M. Claro, Rousel Elaine C. Tumanda,
Valerie C. Udtuhan, Marie Therese V. Profetana, Frauline S.
Abangan, and Peter A. Chapman, Editors.

Copyright 2008.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.





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