TCRAP_Public/080923.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Tuesday, September 23, 2008, Vol. 11, No. 189

                            Headlines

A U S T R A L I A

ACRATAS ELECTRICAL: Placed Under Voluntary Liquidation
AMGH PTY: Members Opt to Liquidate Business
BACTEARTH PTY: Members and Creditors to Meet on September 29
BEMAX RESOURCES: Moody's Downgrades Corporate Family Rating to B2
BOWRA & BOWRA: Joint Meeting Set on September 29

CHAMPAIGN INTERNATIONAL: Joint Meeting Slated on September 29
DR. NGUYEN-PHUOC: Members and Creditors to Meet on September 29
FMG FINANCE: S&P Keeps B+/Neg Rating Despite AU$2.52MM Net Loss
FORTESCUE METALS: Plans to Increase Production to 80mtpa in 2009
GRENFELL MONTAGU: Members' Final Meeting Set for September 29

INAMED PTY: Members Opt to Liquidate Business
NEWLAND HOLDINGS: Liquidator to Give Wind-Up Report on Sept. 29
PAN PHARMA: ASIC Agrees to Discontinue Charges Against Former CEO
ROBEY SMASH: Members and Creditors to Meet on September 29
* AUSTRALIA: Export Earnings to Reach a New Record

* AUSTRALIA: ASIC Bans Naked Short Selling
* S&P Cuts Ratings on Various CDPO Transactions, Retains WatchNeg


C H I N A

CHINA MINSHENG: Gets OK to Sell US$2.2 Billion of Bonds
HOPSON DEVELOPMENT: 1H Turnover Up 149% to HK$3,540 Million
IVANHOE ENERGY: Caisse de depot Discloses 5.02% Equity Stake
SKYFRAME REALTY: Issues US$44-Million Notes to Lehman
XINAO GAS: First-Half Profit Up 63.0% to CNY286 Million


H O N G K O N G

401 CHINA: Members and Creditors to Meet on October 23
ASIA MILLION: Members and Creditors to Meet on October 23
CARKEY LIMITED: Members' Final Meeting Set for October 24
CAVENDISH PROPERTY: Chiu and Diana Quit as Liquidators
CONCORD (HONG KONG): Placed Under Voluntary Liquidation

JTJ INDUSTRIAL: Placed Under Voluntary Liquidation
LEHMAN BROTHERS: HK Investors Accuse Bank of Duping Them on Risks
NM AGENCY: Commences Liquidation Proceedings
STARWAY CORPORATION: Members' to Hear Wind-Up Report on October 24
WATERCOME (HK): Members & Creditor to Meet on September 26

WOODHALL COMPANY: Chiu and Diana Quit as Liquidators


I N D I A

GENERAL MOTORS: To Use Remaining US$3.5 Bln. in Credit Facility
GENERAL MOTORS: Exchanges 28.3MM Shares for Series D Debentures
GENERAL MOTORS: Enters into Amended Settlement with Delphi
KINGFISHER AIRLINES: Sheds 300 Jobs, Returns Surplus Aircraft
MOTIA CONSTRUCTIONS: CRISIL Rates Rs.250 Mil. Term Loan at BB+

VISITOR GARMENTS: CRISIL Rates Rs.19.60 Mil. Facilities at 'BB+'


I N D O N E S I A

* INDONESIA: Weak Financial Market Puts Economy Under Pressure
* INDONESIA: Manufacturing Sector Slows Down in Third Quarter


J A P A N

DELPHI CORP: Reaches Settlement & Restructuring Pacts With GM
LEHMAN BROTHERS: Sells US$1.87BB Long Positions in Nikkei Futures
MITSUBISHI: Aims 10% Share in Korea's Imported Cars Market
NOMURA HOLDINGS: To Sell 71.5% Stake in Tungaloy Corp.


M A L A Y S I A

BSA INTERNATIONAL: Receives Writ of Summons from Kenanga
UBG BERHAD: Discloses Appointments and Resignations of Personnel


N E W  Z E A L A N D

DOGSTAR LTD: Commences Liquidation Proceedings
DORCHESTER PACIFIC: Reschedules Annual Meeting
DREAM HOMES: Proofs of Debt Due on October 17
FEATHERSTON HOTEL: Proofs of Debt Due on October 17
INFOSCREENS LTD: High  Court Appoints Liquidators

LIGHT HOUSE: Commences Liquidation Proceedings
MCCANN & ASSOCIATES: Commences Liquidation Proceedings
PLUSH CLOTHING: Commences Liquidation Proceedings
STRATEGIC FINANCE: Censured for Breaching Market Disclosure Rules
TAMARIKI LIMITED: Appointed Liquidators

TOPP CONSTRUCTION: Commences Liquidation Proceedings
* NEW ZEALAND: Electronic Card Spending Increases 0.8% in August


P H I L I P P I N E S

* PHILIPPINES: NPL Ratio of Banks Continue to Fall
* PHILIPPINES: Banking System Stable Despite Lehman Bankruptcy
* PHILIPPINES: Posts US$221MM BOP Surplus in 2nd Quarter


S I N G A P O R E

MERIDIAN LIFE: Court Enters Wind-Up Order
MOSTRANS PTE: Faces Oversea-Chinese Banking's Wind-Up Petition
PACIFIC SOURCE: Court to Hear Wind-Up Petition on October 3
YANCY HOLDINGS: Court Enters Wind-Up Order


X X X X X X X X

* BOND PRICING: For the Week September 15 - September 19, 2008


                         - - - - -


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A U S T R A L I A
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ACRATAS ELECTRICAL: Placed Under Voluntary Liquidation
------------------------------------------------------
Acratas Electrical Services Pty Limited's members agreed on
Aug. 6, 2008, to voluntarily liquidate the company's business.
Blair Pleash was  appointed to facilitate the sale of its assets.

The liquidator can be reached at:

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


AMGH PTY: Members Opt to Liquidate Business
-------------------------------------------
AMGH Pty Ltd's members agreed on Aug. 11, 2008, to voluntarily
liquidate the company's business.  Grahame Hill was  appointed to
facilitate the sale of its assets.

The liquidator can be reached at:

          Grahame Hill
          Hills Insolvency Services Pty Ltd
          PO Box 915
          Rockdale NSW 2216
          Telephone: (02) 9599 7945
          Facsimile: (02) 9599 7946


BACTEARTH PTY: Members and Creditors to Meet on September 29
------------------------------------------------------------
Bactearth Pty Limited will hold a meeting for its members and
creditors at 10:00 a.m. on Sept. 29, 2008.  During the meeting,
the company's liquidator, Robert Elliott, will provide the
attendees with property disposal and winding-up reports.

The liquidator can be reached at:

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


BEMAX RESOURCES: Moody's Downgrades Corporate Family Rating to B2
-----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family and
senior unsecured ratings of Bemax Resources Limited (Bemax) from
Ba3 to B2.

The rating action concludes a review of the company's rating
commenced in May, following the announcement of a takeover offer
by Cristal Australia Pty Ltd (Cristal; unrated).  The outlook on
the ratings is negative.

"The rating downgrade reflects concerns over the company's ability
to maintain production and revenue levels as previously forecast,
coupled with limited visibility into the company's ongoing
financial and business profile following the recent change in
ownership", says Ian Lewis, Vice President -- Senior Analyst.

Bemax has been impacted by a combination of stronger AUD/USD
exchange rates, reduced production relative to expectation, softer
demand for the company's lower TI02 -titanium dioxide - products
as well as the effects of higher input costs such as fuel.  "These
challenges have reduced the company's earnings and had a material
effect on the level of its cash holdings -- previously earmarked
for the Snapper and MSP expansion projects at Broken Hill, leading
to a marked deterioration in the key financial metrics, says Lewis
who is also lead analyst for the company.

"At the same time, the takeover by Cristal has introduced elements
of uncertainty including the longer term strategy of the group and
its ability and willingness to provide capital in order to
complete its expansion projects which now have no clear committed
funding source" says Mr. Lewis, adding, "As a result Bemax's
future cash flows and key financial metrics could be impacted to
the extent that these projects are not completed as forecast when
the initial rating was assigned".

The negative outlook reflects the challenging environment for the
TI02 and zircon markets which Moody's expects will continue to
impact Bemax's margins over the next 12-24 months, combined with a
challenging liquidity position that is highlighted by diminishing
cash holdings and weakened operating performance.

The rating outlook could be revised to stable if Bemax's
production and financial profile demonstrates consistent
improvement over the next 12 months with greater clarity around
its growth plan and financial strategy.

On the other hand, downward rating pressure is likely to occur
should there be further production or earnings weakness -- on
either an actual or projected basis - or a decrease in
profitability as a result of input cost increases which are unable
to be passed through.

Further deterioration in Bemax's liquidity profile, or
disappointments in relation to its development projects, could
also lead to negative rating pressure.  Moody's would consider the
following indicators as pressuring the rating: Debt/EBITDA
exceeding 6.0x-7.0x, or EBIT/Interest falling below 1.2x.

Bemax Resources Limited (Bemax) is an Australian-based mineral
sands producer, producing zircon and titanium based feedstock
products. Bemax is a wholly owned subsidiary of The National
Titanium Dioxide Company Limited (Cristal Global), which operates
a large, low-cost, TiO2 facility in Yanbu, Saudi Arabia.


BOWRA & BOWRA: Joint Meeting Set on September 29
------------------------------------------------
Bowra & Bowra Pty Limited will hold a meeting for its members and
creditors on Sept. 29, 2008.  During the meeting, the company's
liquidator, Geoffrey Reidy, will provide the attendees with
property disposal and winding-up reports.

The liquidator can be reached at:

          Geoffrey Reidy
          Rodgers Reidy
          Level 8, 333 George Street
          Sydney NSW 2000


CHAMPAIGN INTERNATIONAL: Joint Meeting Slated on September 29
-------------------------------------------------------------
Champaign International Pty Limited will hold a meeting for its
members and creditors at 11:00 a.m. on Sept. 29, 2008.  During the
meeting, the company's liquidator, Christopher J. Palmer, will
provide the attendees with property disposal and winding-up
reports.

The liquidator can be reached at:

          Christopher J. Palmer
          Level 4, 23-25 Hunter Street
          Sydney NSW 2000


DR. NGUYEN-PHUOC: Members and Creditors to Meet on September 29
---------------------------------------------------------------
Dr. Nguyen-Phuoc Pty Limited will hold a meeting for its members
and creditors at 11:00 a.m. on Sept. 29, 2008.  During the
meeting, the company's liquidator, Ozem Kassem, will provide the
attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          Ozem Kassem
          Cor Cordis Chartered Accountants
          Level 10, 76-80 Clarence Street
          Sydney


FMG FINANCE: S&P Keeps B+/Neg Rating Despite AU$2.52MM Net Loss
---------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'B+/Negative'
ratings on the project debt issues of FMG Finance Pty Ltd., the
project financing arm of Fortescue Metals Group Ltd. (not rated),
are unchanged, despite FMG Finance's AU$2.52 billion accounting
net loss for the 2008 financial year.  The issue ratings reflect
the limited recourse financing structure, cash flow, and expansion
plans associated with FMG Finance's ring-fenced project.


FORTESCUE METALS: Plans to Increase Production to 80mtpa in 2009
----------------------------------------------------------------
Fortescue Metals Group said the company plans to increase
production to 80 million tonnes per annum in 2009.

"Funding for expansion to 80mtpa will be sourced from the
company's strong internal cash flows generated from our consistent
production, which is ramping up every day," Fortescue Metals Group
Chief Executive Officer Andrew Forrest said.

Next year's increase to 80mtpa is the first major step in the
company's plans to expand production to 160mtpa from its
Cloudbreak and Christmas Creek operations.

The company's announcement earlier of an increase in its reserves
to 1.625 billion tonnes at Cloudbreak and Christmas Creek will
underpin the 160mtpa production rate.

The company said that the rapid expansion transition from 55mtpa
to 80mtpa will include the construction of an additional train
unloader, ore stacker, reclaimer and shiploader at the port, and
completion of the rail extension from Cloudbreak to Christmas
Creek.

"The expansion from 55mpta to 80mtpa, and then sequentially to
160mtpa, is a sensible and seamless expansion to our current
infrastructure utilising internal funding," Mr. Forrest said

Part of the extra revenue derived from an 80mtpa production rate
would be used to fund steady expansion up to 160mtpa, Mr. Forrest
said.

"Our contractors, who have helped build the 45-55mtpa project, are
not demobilising their construction workforce but are now
beginning work on the next expansion stage as we move confidently
forward expanding from internal cash reserves."

                       About Fortescue Metals

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

                          *     *     *

Fortescue reported consecutive net losses for the past three
fiscal years.  Net loss for the year ended June 30, 2008, was
AU$2.52 billion, while net losses for FY2007 and FY2006 were
AU$192.26 million and AU$2.15 million, respectively.


GRENFELL MONTAGU: Members' Final Meeting Set for September 29
-------------------------------------------------------------
Gavin Thomas, Grenfell Montagu Securities Pty Ltd's appointed
estate liquidator, will meet with the company's members on Sept.
29, 2008, at 10:00 a.m. to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

          Gavin Thomas & Partners
          Level 9, 31 Market Street
          Sydney


INAMED PTY: Members Opt to Liquidate Business
---------------------------------------------
Inamed Pty Limited's members agreed on Aug. 11, 2008, to
voluntarily liquidate the company's business.  Simon J. Cathro and
David J. F. Lombe were  appointed to facilitate the sale of its
assets.

The liquidators can be reached at:

          Deloitte Touche Tohmatsu
          Grosvenor Place
          225 George Street
          Sydney NSW 2000
          Telephone: (02) 9322 7000


NEWLAND HOLDINGS: Liquidator to Give Wind-Up Report on Sept. 29
---------------------------------------------------------------
P. V. Nevell, Newland Holdings Pty Ltd's appointed estate
liquidator, will meet with the company's members on Sept. 29,
2008, at 10:00 a.m. to provide them with property disposal and
winding-up reports.

The liquidator can be reached at:

          P. V. Nevell
          WHK Camerons
          107 West High Street
          Coffs Harbour NSW 2450


PAN PHARMA: ASIC Agrees to Discontinue Charges Against Former CEO
-----------------------------------------------------------------
Australian Securities and Investments Commission (ASIC) notes the
decision of the Commonwealth Director of Public Prosecutions
(CDPP) to discontinue the prosecution of former Chief Executive
Officer and Managing Director of Pan Pharmaceuticals Limited, Mr.
James Selim.

ASIC recounts that Mr. Selim was committed for trial on Dec. 18,
2006, on four criminal charges brought by ASIC following a three
week contested committal hearing.  These charges related to the
provision of information by Mr. Selim to the board of directors of
Pan Pharmaceuticals Limited which, ASIC alleged, was misleading
contrary to s1309(1)(e) of the Corporations Act.  His trial was
scheduled to proceed in the New South Wales Supreme Court on
Oct. 27, 2008.

ASIC states that following the termination of civil proceedings
involving Mr. Selim and the Commonwealth of Australia in August
2008, the CDPP reviewed the matter.  New evidence emerged during
the civil proceedings. T he Director determined that the charges
against Mr. Selim should be discontinued.  ASIC was consulted and
agrees with that decision.

As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 05, 2007, Mr. Selim pleaded not guilty in the Supreme Court
of New South Wales in Sydney in relation to four charges brought
by ASIC.

The case against Mr. Selim follows an investigation by the ASIC
that commenced in April 2003.  Mr. Selim was charged in the
Downing Centre Local Court on Sept. 28, 2004, and he was
committed for trial in the Balmain Local Court on Dec. 18, 2006.

The Australian Securities Exchange Limited assisted in this
matter.

The hearing was set on Oct. 15, 2007, before the Supreme Court
of New South Wales.

The Commonwealth Director of Public Prosecutions is prosecuting
the matter.

                    About Pan Pharmaceuticals

On May 22, 2003, Anthony Gregory McGrath & Christopher John
Honey of McGrathNicol+Partners were appointed as administrators
for Pan Pharmaceuticals Limited and its subsidiaries:

   1. Pan Pharmaceuticals Services Pty Limited;
   2. Pan Pharmaceuticals Exports Pty Limited;
   3. Pan Laboratories (Australia) Pty Limited; and
   4. Pan Pharmaceuticals Technologies Pty Limited

On Sept. 23, 2003, the creditors of Pan rejected a proposal for
a Deed of Company Arrangement submitted by Fred Bart and Jim
Selim.  Subsequently on the same day, the creditors of Pan and
Laboratories resolved that these two companies be wound-up.

On Oct. 21, 2003, the creditors of Services, Exports, and
Technologies resolved to place these three companies into
liquidation.

                        Sale of business

Since their appointment, the Administrators and the Liquidators
have overseen a major upgrade of Pan's facilities, processes,
and documentation.  On Oct. 1, 2003, the Therapeutic Goods
Administration advised that it was satisfied that Pan was
compliant with the Australian Code of GMP for Medicinal Products
with respect to the manufacture of soft gelatine capsules that
are required to be listed in the Australian Register of
Therapeutic Goods, and that reinstatement of the company's soft-
gel license could be recommended.  The TGA issued the soft-gel
license on Nov. 4, 2003.

After the reinstatement of the soft-gel license, the Liquidators
recommenced the sale process for the Pan business.  The
Liquidators offered the assets as a going concern and accepted
an offer of AU$20 million.  Settlement occurred on Dec. 15,
2003.

The business and assets of Pan have been sold to Sphere
Healthcare Pty Ltd.


ROBEY SMASH: Members and Creditors to Meet on September 29
----------------------------------------------------------
Robey Smash Repairs Pty Limited will hold a meeting for its
members and creditors at 11:00 a.m. on Sept. 29, 2008.  During the
meeting, the company's liquidator, Peter W. Marsden, will provide
the attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          Peter W. Marsden
          RSM Bird Cameron Partners
          12th Floor, 60 Castlereagh Street
          Sydney NSW 2000


* AUSTRALIA: Export Earnings to Reach a New Record
--------------------------------------------------
Australia's commodity export earnings are forecast to increase to
a record AU$214 billion in 2008-09, Phillip Glyde, Executive
Director of the Australian Bureau of Agricultural and Resource
Economics said.

"Earnings from both farm and mineral resources exports are
forecast to increase in 2008-09," Mr. Glyde said.

Farm export earnings are forecast to be AU$30 billion in 2008-09,
a 9 per cent increase from AU$27.5 billion in 2007-08.
Agricultural commodities for which export earnings are forecast to
rise in 2008-09 include wheat, barley, canola, pulses, sorghum,
sugar and wine.

Crop export earnings are forecast to increase by 24 per cent, to
AU$16 billion in 2008-09. In contrast, export earnings from
livestock and livestock products are forecast to decline in 2008-
09, by 3 per cent to around AU$14 billion.

Further spring rainfall will be critical to secure forecast
production levels.

If seasonal conditions permit, farmers are expected to reduce
slaughterings as they commence rebuilding herd and flock numbers.
As a result, exports of livestock and livestock products are
forecast to decline.

The value of Australia's minerals and energy exports is forecast
to be around AU$180 billion in 2008-09, a rise of 53 per cent on
the previous year.

"The short-term prospects for energy and mineral commodities
remain positive, supported by continued demand growth and supply-
side constraints," Mr Glyde said.

Earnings from iron ore, coal, oil and LNG are forecast to account
for almost 98 per cent of the growth in total energy and mineral
export earnings.

For energy commodities, export earnings are forecast to increase
by 98 per cent to AU$90 billion in 2008-09. For metals and other
minerals, export earnings are also forecast to be around AU$90
billion, an increase of 25 per cent on the previous year.
The updated forecast of total commodity earnings in 2008-09
represents an upward revision of around AU$1.4 billion from the
June edition of Australian Commodities.


* AUSTRALIA: ASIC Bans Naked Short Selling
------------------------------------------
The Australian Securities and Investments Commission (ASIC) said
that along with other global regulators, the corporate regulator
is concerned that the recent market global conditions, coupled
with extensive short selling of stocks, particularly financial
stocks, may be causing unwarranted price fluctuations.  These
fluctuations if unchecked, threaten the operation of fair and
orderly stock markets.

On Friday, Sept. 19, 2008, ASIC responded to these concerns by
announcing three measures, in consultation with the Australian
Securities Exchange (ASX), to apply from the opening of the market
on Monday, Sept. 22, 2008, to the implementation of the
Government's short selling legislation (the End Date):

   1. to ban or not permit naked short selling;

   2. to clarify and, in doing so, narrow the permitted class
      of covered short sales; and

   3. to introduce a reporting regime for permitted covered
      short sales.

Since that announcement, ASIC said it has continued to assess
moves by other international regulators.  The US and the UK moved
late last week to ban covered short sales in financial stocks.
Countries which have now followed are France, Germany,
Switzerland, Ireland and Canada (Ontario), and other regulators
are assessing their responses.  These developments which, in
effect, restrict short selling activity in these markets,
intensify the risks on the Australian market.  Put simply, because
global funds can move quickly, the risk of unwarranted activity on
the Australian market has intensified.  This intensity has been
assessed by ASIC in the context of the small size, relative to
other markets, of the Australian market and the structure of the
market.

ASIC has made the following decisions to apply from the opening of
the market on Monday, Sept. 22, 2008, until the End Date:

   1. Contrary to ASIC's announcement on Friday, Sept. 19,
      covered short sales for all listed stocks will now not
      be permitted (subject to a limited authorised market-maker
      exception).

   2. ASIC will reassess and advise the market in 30 days,
      whether or not it will at that time, or at a later date,
      reopen covered short sales for non-financial stocks.

Summary of ASIC's new position on short selling until the End
Date:

    -- naked short selling banned

    -- covered short selling banned (subject to limited
       authorised market-maker exemption)

    -- ASIC will reassess and advise the market in 30 days,
       whether or not it will at that time, or at a later date,
       reopen covered short sales for non-financial stocks.

In announcing ASIC's decision, Tony D'Aloisio said "These measures
are necessary to maintain fair and orderly markets in these
exceptional times of global crises of confidence in financial
markets.  Because of the relatively small size and the structure
of the Australian market, it is necessary to extend the
prohibition to all stocks.  To limit the prohibition to financial
stocks, as has been done in the UK, could subject our other stocks
to unwarranted attack given the unknown amount of global money
which may be looking for short sell plays."

ASIC emphasised that it sees a legitimate place for short selling
in markets (eg to assist with price discovery).  Mr. D'Aloisio
went onto say: "However, in the current climate and, in light of
the actions taken by other regulators, we need a circuit breaker
to assist in maintaining and restoring confidence. Our measures do
that as they will operate for a limited time and in the case of
non-financial stocks, will be reviewed in 30 days.  In the case of
financial stocks, the review will be in line with the time limits
imposed by other international regulators such as the US and UK."

ASIC said it will work with industry on transitional issues
affecting bona fide market transactions.

ASIC has given effect to these changes by an instrument of
modification to the Corporations Act.


* S&P Cuts Ratings on Various CDPO Transactions, Retains WatchNeg
-----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its ratings on 21
constant proportion debt obligation (CPDO) transactions.  S&P is
also keeping all these CPDO transactions on CreditWatch with
negative implications.

The recent widening of credit spreads and the level of volatility
in the credit derivatives market have been unprecedented, and this
has resulted in further deterioration in the net asset values
(NAVs) of these CPDO structures.  The rating actions reflect the
increased risk that the NAVs may not be able to build value
sufficiently for the structures to "cash-in", i.e., reach a NAV
where all future interest payments and principal are covered.  In
some transactions, the NAVs are close to trigger levels.  If these
are breached, it would lead to those transactions being unwound.

S&P keeps all CPDO transactions on CreditWatch negative to reflect
the volatility of credit spreads in recent weeks and the
possibility of further market disruption.

Ratings Lowered and Kept on CreditWatch Negative:

Castle Finance I Ltd.

  -- EUR325 Million Surf Constant Proportion Debt Obligation
     Notes Series 7

                     CCC/Watch Neg             BB/Watch Neg

Castle Finance I Ltd.

  -- US$100 Million Surf Constant Proportion Debt Obligation
     Notes Series 8

                       CCC/Watch Neg             BB/Watch Neg

Castle Finance I Ltd.

  -- EUR60 Million Surf Constant Proportion Debt Obligation Notes
     Series 9

                       CCC/Watch Neg             BB/Watch Neg

Chess II Ltd.

  -- US$100 Million Surf Constant Proportion Debt Obligation
     Floating-Rate Notes Series 24

                       B/Watch Neg               BBB-/Watch Neg

Chess II Ltd.

  -- EUR100 Million Surf Constant Proportion Debt Obligation
     Floating-Rate Notes Series 25

                       B/Watch Neg               BB+/Watch Neg

Chess II Ltd.

  -- JPY5 Billion Surf Constant Proportion Debt Obligation
     Floating-Rate Notes Series 26

                       CCC/Watch Neg             BB+/Watch Neg

Chess II Ltd.

  -- EUR250 Million Surf Constant Proportion Debt Obligation
     Floating-Rate Notes Series 28

                       B/Watch Neg               BB+/Watch Neg

Chess II Ltd.

  -- EUR40 Million Surf Constant Proportion Debt Obligation
     Fixed-Rate Notes Series 29

                       BBB/Watch Neg             A/Watch Neg

Chess II Ltd.

  -- US$30 Million Surf Constant Proportion Debt Obligation
     Floating-Rate Notes Series 30

                       CCC/Watch Neg             BB/Watch Neg

Chess II Ltd.

  -- CHF200 Million Surf Constant Proportion Debt Obligation
     Fixed-Rate Notes Series 31

                       CCC/Watch Neg             BB/Watch Neg

Chess II Ltd.

  -- EUR10 Million WGZ INCO 2006 Constant Proportion Debt
     Obligation Notes Series 32

                        CCC/Watch Neg             BB-/Watch Neg

Chess II Ltd.

  -- EUR50 Million Surf Constant Proportion Debt Obligation Notes
     Series 33

                       B/Watch Neg               BBB-/Watch Neg

Chess II Ltd.

  -- EUR50 Million Constant Proportion Debt Obligation Notes
     Series 39

                       BB/Watch Neg              BBB+/Watch Neg

Coriolanus Ltd.

  -- AU$13 Million Floating-Rate Secured Notes Series 43

                       BBB/Watch Neg             A/Watch Neg

Motif Finance (Ireland) PLC

  -- EUR5 Million Adjustable Leverage Debt Obligations Series
     2007-3

                       BBB/Watch Neg             A/Watch Neg

Motif Finance (Ireland) PLC

  -- US$10 Million Adjustable Leverage Debt Obligations Series
     2007-4

                       BBB/Watch Neg             A/Watch Neg

Motif Finance (Ireland) PLC

  -- AU$26 Million Adjustable Leverage Debt Obligations Series
     2007-6

                       BBB/Watch Neg             A/Watch Neg

Rembrandt New Zealand Trust No. 2006-1

  -- NZ$70 Million Floating-Rate Notes

                       CCC/Watch Neg             BBB-/Watch Neg

Rembrandt Australia Trust No. 2006-2

  -- AU$50 Million Floating-Rate Notes

                       CCC/Watch Neg             BB+/Watch Neg

Rembrandt Australia Trust No. 2006-3

  -- AU$40 Million Community Income Constant Proportion Debt
     Obligation Notes

                       CCC/Watch Neg             BB+/Watch Neg

Saphir Finance PLC

  -- EUR77 Million Dynamic Participation Investment Return
     Obligation Notes Series 2006-11 (Antara Capital)

                       BBB/Watch Neg             A/Watch Neg



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CHINA MINSHENG: Gets OK to Sell US$2.2 Billion of Bonds
-------------------------------------------------------
China Minsheng Banking Corp. received regulatory approval to raise
as much as CNY15 billion (US$2.2 billion) selling bonds after
expansion in the U.S. pushed its capital close to the regulatory
minimum, Luo Jun of Bloomberg News reports.

The China Banking Regulatory Commission, the report relates,
approved the sale of 10-year bonds with call warrants to buy
shares.

According to Reuters, the bank said in January that it would issue
the bonds to help supplement its working capital and raise its
capital adequacy ratio.  The bonds would be issued within 12
months of their approval by a shareholders' meeting in February.

Minsheng's capital adequacy ratio fell to 9.21% as of June 30,
down from 10.73% at the end of last year and close to the 8%
minimum set by the regulator, Bloomberg News notes.  The ratio may
face more pressure because Minsheng plans to double its ownership
in UCBH this year and raise its holding to 20% by June 2009, the
report adds.

Meanwhile, Reuters says the bank disclosed it did not have any
debt in failed U.S. investment bank Lehman Brothers.

                      About Minsheng Banking

China Minsheng Banking Corporation Ltd.'s principal activity is
the provision of commercial banking services that include
absorbing public deposits, providing short term, medium term,
and long term loans, making domestic and international
settlement, discounting bills and issuing financial bonds.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported that on
July 13, 2007, Fitch Ratings upgraded China Minsheng Banking
Corp.'s individual rating to "D" from "D/E" while it affirmed
its support rating at "4".


HOPSON DEVELOPMENT: 1H Turnover Up 149% to HK$3,540 Million
-----------------------------------------------------------
Hopson Development Company Holdings Limited's sales for the six
months ended June 30, 2008, were slightly down by 2.8% from
CNY4,283 million (including Group's share of CNY660 million from
Regal Riviera) for the same period last year to CNY4,163 million.

On the other hand, the Group increased its pace of:

(a) the completion and delivery of several new projects namely,
   Hopson International Garden in Beijing and Nanhai Junjing Bay
   in Guangzhou and

(b) the delivery of certain existing projects such as Shanghai
    Hopson Town, Tianjin Jingjin New City and Guangzhou Pleasant
    View Garden.

As a result, turnover comprising mainly sales of properties was up
149% from HK$1,422 million to HK$3,540 million for the first six
months of 2008 as compared to same period last year.

Revenue from sales of properties is recognized upon completion of
agreement, which refers among others to delivery of properties to
buyers.  Revenue received but not yet recognized is accounted for
as "deferred revenue" in the Balance Sheet. The amount of deferred
revenue at the end of June 2008 was HK$5,795 million (as at
December 31, 2007: HK$4,982 million), a substantial portion of
which according to the project development schedule is expected to
be recognized in the second half of 2008.

The Management remains optimistic of attaining a satisfactory out-
turn of turnover for the full year of 2008.

   Gross Profit

The gross profit was up 235% to HK$1,839 million for the first
half of 2008 (2007: HK$549 million) and the gross profit ratio was
52.0% up 13.4% (2007: 38.6%).  The increase in gross profit ratio
was primarily attributable to a significant portion of sales with
high gross profit margin recognized, notably from Beijing Hopson
International Garden, and an increase in the average selling price
recorded.

   Other Gains

Other gains for the six months ended June 30, 2008 amounted to
HK$290 million (2007: HK$165 million) comprising:

(1) a sum of HK$155 million from the recognition of the excess of
    interests acquired by the Group at fair value over the costs
    of acquisition paid for four land sites located in Guangzhou,
    Shanghai and Qinhuangdao;

(2) fair value gains of HK$106 million from revaluation of
    investment properties, and

(3) tax grants of HK$29 million from government authorities in the
    mainland.

   Operating Costs

The net operating costs relating to expenses for selling,
marketing, general and administration increased by 45% to HK$404
million for the first half of 2008 from the corresponding period
in 2007 of HK$279 million.  The increase was mainly due to:

(1) increased expenditure on overhead and business expenses
    incurred by new companies and projects;
(2) more professional fees expended on acquisitions and
    feasibility studies of new projects;
(3) larger amount of land use taxes and property taxes levied by
    Government on new projects, and
(4) depreciation provided for new Tianjin Hyatt Hotel and golf
    course.  The increase was offset by an exchange gain of
    HK$198 million recorded on account of the strengthening of
    Renminbi.

   Finance Costs

Gross interest expenses before capitalisation for the first half
of 2008 increased to HK$554 million (2007: HK$301 million), up
HK$253 million or 84%.  The increase was primarily attributable to
the additional bank borrowings made in the first half of 2008 and
the increased amortization of the interest expense for the
Renminbi denominated United States Dollars settled zero coupon
convertible bonds of CNY1,830 million due in 2010.  The effective
interest rate in respect of the Group's borrowings was
approximately 7.6% per annum (2007: 7.2%).

   Operating Profit

Operating profit in first half 2008 increased by 297% to HK$1,725
million (2007: HK$435 million), up HK$1,290 million.   Share of
loss of a jointly controlled entity following the consolidation of
Guangzhou Zhujiang Qiaodao Real Estate Limited into the Group's
accounts from September 2007, a share of loss from the remaining
jointly controlled entity located in Beijing was HK$0.67 million
for the first half of 2008.

   Taxation

Under the new Corporate Income Tax law, which was effective from
1st January 2008, the applicable enterprise income tax rate was
reduced to 25% from 33%.  The effective tax rate for the 1st half
of 2008 was increased to 44.3% from 1.5% in the corresponding
period of last year.  The increase was mainly attributable to the
reversal of deferred tax liabilities arising from the effect of
change in EIT rate of approximately HK$121 million for the six
months ended June 30, 2007.

Excluding:

(1) non-taxable items comprising excess of acquirer's interests at
    fair value over costs of HK$155 million, government grants of
    HK$29 million and interest income of HK$5.6 million, and

(2) share of loss from a jointly controlled entity and associates
    of HK$1.3 million, the effective tax rate for the first half
    of 2008 would have been 50% (2007: 56%).

The decrease was primarily due to the reduction in the EIT rate
from 33% in 2007 to 25% in 2008.

     Profit attributable to equity holders of the Company

Profit attributable to equity holders was HK$933 million for the
first half of 2008 (2007: HK$419 million), up HK$514 million or
123%. Basic earnings per share increased by 91% to HK$0.63.
Excluding the effect of the gain representing the difference of
fair value of the interests acquired over purchase costs amounting
to HK$155 million and the gain from investment property
revaluation of HK$106 million, underlying profit for the period
under review was HK$672 million, up HK$504 million or 300% as
compared with the corresponding period of the previous year.  The
increase was mainly attributable to the increase of 149% in
turnover recognized in the first half of 2008 when compared to the
corresponding period in 2007.

   Segmental information

Property development remains the Group's core business activity
(93%).  The geographical spread of financial performance among
different regions this period was slightly different to that of
the corresponding period in 2007.  Beijing took its leading
position as top revenue contributor within the Group (55%),
followed by Guangzhou (25%), Tianjin (12%), Shanghai (7%) and
Huizhou (1%).  In line with the Group's strategy of expansion of
market in Northern China, Beijing, Tianjin and Shanghai increased
their revenue contributions to the Group in the 1st half of 2008.

   Financial position

As at June 30, 2008, the Group had total assets of HK$54,621
million and total liabilities of HK$32,627 million, representing
respectively an increase of 14% and 17% from 31st December 2007.

The increase in total assets was mainly attributable to (i) newly
acquired land sites located in Guangzhou, Shanghai and
Qinhuangdao, (ii) increase in prepayment for acquisition of new
projects and (iii) amounts expended on construction work-in-
progress of new development projects.

Aligned with this, total liabilities also increased, mainly on
account of (i) additional bank borrowings obtained to finance
development of projects and (ii) a rise in deferred revenue and
accrued liabilities.

The Group's current ratio as at June 30, 2008 was 3.24, which was
comparable with that of 3.43 as at 31st December 2007.  With the
contribution largely from current period's profit attributable to
equity holders and the currency translation differences, total
equity at June 30, 2008 increased 9.5% to HK$22 billion from 31st
December 2007.

   Liquidity and financial position

As at June 30, 2008, the Group's liability-to-asset ratio (i.e.
the ratio between total liabilities and total assets, excluding
minority interests) was 60% (December 31, 2007: 58%).  The net
debt-to-equity ratio (i.e. total debt less cash and bank deposits
over shareholders' equity) was 61% (31st December 2007:
53%).

As at June 30, 2008, the Group has cash and short-term bank
deposits amounting to HK$1,871 million (December 31,2007: HK$2,262
million) of which approximately HK$91 million (December 31, 2007:
HK$168 million) were charged by certain banks to cover the
processing of mortgage facilities granted by them to the buyers of
the Group's properties.  93% of the cash and bank deposits was
denominated in Renminbi, 4% in Hong Kong dollars and 3% in United
States Dollars.

Total borrowings from banks amounted to HK$10,270 million as at
June 30, 2008 representing an increase of 25% or HK$2,079 million
as compared to those at December 31, 2007.  Gearing, measured
by net bank borrowings, Guaranteed Senior Notes and Convertible
Bonds (i.e. total bank borrowings, Guaranteed Senior Notes and
Convertible Bonds less cash and bank deposits) as a percentage of
shareholders' equity, was 59%, up 7 percentage point from 52% as
at December 31, 2007.  The increase was mainly due to the outflow
of cash paid for the constructions and acquisitions of land sites.

All of the bank borrowings were either secured or covered by
guarantees and were substantially denominated in Renminbi with
fixed interest rates whereas the United States Dollars denominated
Senior Notes due 2012 and the Renminbi denominated United States
Dollars settled Convertible Bonds due 2010 were both jointly and
severally guaranteed by certain subsidiaries with fixed interest
rate, representing approximately 67%, 17% and 13%, respectively of
the Group's total borrowings.  All of the other borrowings were
unsecured, interest-free and substantially denominated in
Renminbi.

As at June 30, 2008, the Group had banking facilities of
approximately HK$23,732 million (December 31, 2007: HK$13,023
million) for short-term and long-term bank loans, of which
HK$13,462 million (December 31, 2007: HK$4,832 million) were
utilized.

   Financial guarantees

As at June 30, 2008, the Group provided guarantees to banks for
mortgage facilities granted to buyers of the Group's properties
which amounted to HK$8,261 million (December 31, 2007: HK$7,793
million).

   Pending litigations

Various Group companies are involved in litigations arising in the
ordinary course of their businesses.

Having reviewed outstanding claims and taking into account legal
advice received, the Directors are of the opinion that adequate
provisions have been made in the financial statements.

   Treasury policies and capital structure

The Group adopts a prudent approach with respect to treasury and
funding policies, with a focus on risk management and transactions
that are directly related to the underlying business of the Group.

   Events After Balance Sheet Date

On September 2, 2008, the Group completed the acquisition of 100%
equity interest in Trisum Investment Limited for a total
consideration of approximately HK$623,557,000 (equivalent to
CNY572,114,000).

   Foreign Exchange Fluctuations

The Group earns revenue and incurs costs and expenses mainly in
Renminbi and is exposed to foreign exchange risk arising from the
exposure of Renminbi against Hong Kong dollars and US dollars.
However, the Group experienced no significant foreign exchange
movement and the Directors do not anticipate any significant
foreign exchange loss as a result of changes in exchange rate
between Hong Kong dollars, US dollars and Renminbi in the
foreseeable future.

   Management Contract

No contract concerning the management and administration of the
whole or any substantial part of the business of the company was
entered into or existed during the period.

   Employees

As at June 30, 2008, the Group, excluding its associate and
jointly controlled entity, employed a total of 7,743 (as at 31st
December 2007: 7,721) staff, the great majority of which were
deployed in mainland China.  Employees' costs (including
Directors' emoluments) amounted to HK$234 million (2007: HK$195
million) for the six months ended June 30, 2008.  The remuneration
policies remained the same as revealed in the Annual Report for
the year ended December 31, 2007.

                    About Hopson Development

Hong Kong-based Hopson Development Company Holdings Limited
(Hopson) is one of the largest property developers in China.
Its principal businesses are residential developments in four
major cities: Guangzhou, Beijing, Shanghai and Tianjin.

                         *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
September 19, 2008, Standard & Poor's Ratings Services placed its
'BB-' long-term corporate credit rating on Hopson Development
Holdings Ltd. and the 'B+' issue ratings on the company's US$350
million senior unsecured notes due 2012 and Chinese renminbi (CNY)
1.83 billion zero-coupon convertible bonds due 2010 on CreditWatch
with negative implications.


IVANHOE ENERGY: Caisse de depot Discloses 5.02% Equity Stake
------------------------------------------------------------
Caisse de depot et placement du Quebec disclosed in a regulatory
filing with the Securities and Exchange Commission that it may be
deemed to beneficially own 12,375,771 shares or 5.02% of Ivanhoe
Energy Inc.'s common stock.

Vancouver, British Columbia, Canada, Ivanhoe Energy Inc. (TSX: IE;
Nasdaq: IVAN) -- http://www.ivanhoe-energy.com/-- is an
independent international heavy oil development and production
company focused on pursuing long-term growth in its reserve base
and production using advanced technologies, including its
proprietary, patented heavy-oil upgrading process (HTL).  Core
operations are in the United States and China, with business
development opportunities worldwide.

Ivanhoe Energy has established a number of geographically focused
entities.  The parent company, Ivanhoe Energy Inc., will pursue
HTL opportunities in the Athabasca oilsands of Western Canada and
will hold and manage the core HTL technology.  Two new
subsidiaries have been established, one for Latin America and one
for the Middle East & North Africa, complementing Sunwing Energy
Ltd., Ivanhoe Energy's existing, wholly-owned company for
China.  Ivanhoe Energy Inc. owns 100% of each of these
subsidiaries, although the percentages are expected to decline as
they develop their respective businesses and raise capital
independently.

At March 31, 2008, the company's consolidated balance sheet showed
US$231.1 million in total assets, US$41.2 million in total
liabilities, and US$189.9 million in total stockholders' equity.

                      Going Concern Doubt

Ivanhoe Energy Inc. believes that existing conditions cast
substantial doubt about its ability to continue as a going
concern.  The company incurred a net loss of US$8.5 million for
the three-month period ended March 31, 2008, and as at March 31,
2008, had an accumulated deficit of US$168.5 million and negative
working capital of US$8.8 million.  In addition, the company
currently anticipates incurring substantial expenditures to
further its capital investment programs and the company's cash
flows from operating activities will not be sufficient to both
satisfy its current obligations and meet the requirements of these
capital investment programs.  Moreover, recovery of capitalized
costs related to potential HTL(TM) and GTL projects is dependent
upon finalizing definitive agreements for, and successful
completion of, the various projects, the outcome of which is
uncertain.


SKYFRAME REALTY: Issues US$44-Million Notes to Lehman
-----------------------------------------------------
Skyfame Realty (Holdings) Limited (HKSE: 00059) confirmed in a
statement posted at the Stock Exchange of Hong Kong, Ltd., that
as of Sept. 18, 2008, Lehman Brothers holds US$44 million in
principal value of certain convertible notes it issued.  The
current aggregate outstanding principal value of the Convertible
Notes is US$192 million, Skyfame relates.

Skyfame Realty issued the disclosure at the request of HKSE,
which sought an explanation of the company's shares decline.


XINAO GAS: First-Half Profit Up 63.0% to CNY286 Million
-------------------------------------------------------
Xinao Gas Holdings Limited disclosed its interim results for the
six months ended June 30, 2008.  During the Period, turnover and
profit attributable to shareholders increased to CNY3,538 million
and CNY286 million respectively, representing an increase of 53.2%
and 63.0% respectively as compared to the corresponding period
last year.

The Group's earnings per share increased by 58.1% to CNY 28.3
cents.  The Board of Directors did not recommend the payment of an
interim dividend.

Wang Yusuo, Chairman of Xinao Gas, said, "The Group has reported
encouraging result in the first half of the year.  Apart from the
continuous enhancement of revenue structure, the increase in net
profit margin has also reflected the Group's effective cost
control.  In particular, the significant increase in revenue from
gas sales, especially the 92.3% increase in the sales volume of
compressed natural gas vehicle refueling stations, has also
revealed the Group's success in realizing the strategy of shifting
from reliance on one-off connection fees to long-term stable gas
sales.

With the significant growth in the Group's gas sales volume,
secured gas supply is of utmost importance.  A number of natural
gas sources projects will start to construct or come into
production in the next few years.  Expected to come into full
operation next year, the liquefied natural gas terminal in Fujian
Province has now begun supplying natural gas in spot market.  As a
result, the gas supply for the Group's seven projects in the
Fujian province, including Quanzhou city, the large industrial
base gas project, will be further secured.  In addition, the
production of the coal conversion project in Erdos, Inner
Mongolia, an upstream project with the Group's participation, will
be commenced next year.  The sufficient gas supply will facilitate
more connections to both residential and commercial / industrial
customers and strengthen the Group with stable and long-term
revenue."

Taking advantage of its industry experience and good management,
the Group achieved sustained growth in the number of new
connections.  The new piped natural gas connections made to
residential households and the designed daily capacity for C/I
customers newly installed during the Period were 285,158
households and 1,136,349m3 respectively, representing an increase
of 26.4% and 40.4% as compared to the corresponding period last
year.  In view of this, the Group is very optimistic that the
annual connections target can be achieved. During the Period, gas
connection fee revenue reached CNY898,314,000, representing an
increase of 15.6% over the corresponding period last year and
accounting for 25.4% of the total revenue.

During the Period, piped gas sales revenue reached
CNY1,476,991,000, representing an increase of 20.7% over the
corresponding period last year and accounting for 41.3% of the
total revenue.  The sales volume of piped gas was also increased
by 21.8%. During the first half of 2008, overall gas sales have
made up 73.5% of the Group's revenue, whilst the share of one-off
connection fee in total revenue has further declined to 25.1% from
33.7% as recorded during the corresponding period last year.

This leads the Group's way to develop into a real utilities
company gradually with good and stable cash flow. With more and
more gas sources completed and coming into production, it is
expected that numerous projects of the Group will be benefited,
leading to more new connections to high usage C/I customers, and a
more considerable growth in gas sales volume can be anticipated.

Currently, the Group has an overall gas penetration rate of 24.6%
only, and from the Group's past experience, the gas penetration
rates can reach as high as 70% to 80%.  In association with the
economic growth in China, the demand for natural gas from C/I
customers are growing continuously.  The Group is still at the
rapid development stage in its connection and gas sales business
to residential and C/I customers, which provides good revenue
protection in the future.

In recent years, the Group reached the critical mass in terms of
the number of gas projects and the connectible population in
China, and this enables the Group to selectively acquire high-
quality new piped gas projects and at the same time, to boost the
gas penetration rates of our existing gas projects, develop the
business of compressed natural gas (as a substitute of gasoline)
refueling stations that can increase long-term natural gas sales,
as well as develop the energy distribution channels in peripheral
towns and cities of our gas projects, so as to achieve sustainable
business expansion.

The number of vehicle refueling stations ("refueling stations")
has further increased from 89 as at the end of 2007 to 98, whilst
the number of refueling stations that have been completed but not
yet come into operation was 11.  As a result, the gas sales to
vehicles during the Period increased by 1.2 times.  Thanks to its
contribution to environmental protection and significant advantage
over prices, natural gas refueling stations which provide clean
energy as a substitute for gasoline is expected to experience
rapid growth continuously.  The Group can take advantage of the
existing gas source in the refueling station business, as well as
increase the economies of scale for the gas projects on hand.  It
is expected that the refueling station business will become one of
the major catalysts for the increase in the Group's gas sales
revenue in the long run.

During the Period, the Group secured three new piped gas projects.
Apart from the Zhaoqing project in Guangdong province acquired
early this year, the Group has also announced the acquisition of
Xintang town in Zengcheng city, Guangdong Province, and Quangang
county in Quanzhou city, Fujian Province.  As a result, the
Group's total number of city gas projects increased to 71, with
the connectable urban population raised to 40,469,000.

Through its 60% owned subsidiary Quanzhou Gas Company Limited, the
Group has established Quanzhou Quangang Xinao Gas Company Limited
which is owned as to 100% by Quanzhou Gas.  The registered capital
of Quangang Xinao is CNY20 million.

Quangang county is located in the south of Meizhouwan, the central
of the Fujian coastal area.  After its commencement of production,
the natural gas terminal in Putian, Fujian will provide stable and
sufficient gas supply for the Quangang project.  In 2006, the GDP
of the Quangang county increased by 17.2% to CNY8.3 billion, and
the connectable urban population reached 120,000.  In addition,
the Group has also established Guangzhou Fucheng Piped Gas Company
Limited through its wholly-owned subsidiary Xinao Gas Development
Company Limited to operate piped gas business in Xintang town of
the city.

The registered capital of Guangzhou Fucheng, which is owned as to
90% by Xinao Development, is CNY2 million.  Xintang town is the
core of business and industrial activities in Zengcheng city, as
well as the centre of Guangdong Province.  It is also the most
prosperous town in Zengcheng, with the connectable urban
population reaching 100,000.  It is expected that the Dapeng LNG
Import Terminal Phase Two in Shenzhen and the Second West-East
Pipeline will become the gas source of the project in the future,
laying a sound foundation for the Group to achieve more new
connections to high-usage C/I customers and proving that the Group
will take gas source as the most important criterion when
selecting new projects to ensure project returns.

After years of excellent operation, the Group has established a
strong brand identity and extensive customer base.  It has also
taken a proactive stance to formulate new business model while
establishing a distribution model which is advantageous in various
aspects through the provision of comprehensive regional clean
energy solution.  As of to-date, the Group has entered into a
cooperation framework agreement in relation to energy saving and
emission reduction with about eight cities including Luoyang,
Zhuzhou and Fuzhou for the purpose of providing comprehensive
clean energy solutions to such cities, parks and enterprises,
promoting the use of clean energy, enhancing the utilization
efficiency of energy and reducing emission.  This enables the
Group to, besides becoming a provider of comprehensive regional
clean energy and energy saving solutions, enhance its earnings and
earnings basis and develop the long-term continuous growing
ability on the basis of the existing sustained growth of natural
gas connections and sales, eventually making significant
contribution to the continuous, healthy development of the society
and economy in respect of energy resources.

Mr. Wang concluded, "As for the macro environment, the Chinese
government has devoted a great deal of effort in promoting the use
of clean energy, substitute energy and renewable energy and
therefore constructing more long distance pipelines. With such
strong support from the government, and complemented by the
Group's vigorous development of upstream and downstream projects,
sound management and effective use of resources, we believe that,
besides making contribution to environmental protection, the
benefits of all shareholders, employees and society will also be
maximized at the same time."

                        Xinao Gas Holdings

Xinao Gas is one of the first privately-owned piped natural gas
operators in the PRC.  The principal business of the Group is the
investment in, and the operation and management of, gas pipeline
infrastructure, vehicle refueling station and the sale and
distribution of piped gas and LPG in the PRC.  Its business
activities also consist of the sale of gas appliances and
equipment, the production of stored-value card gas meters and the
provision of repair, maintenance and other services in connection
with gas supply.

As of the end of September 2008, the Group currently has 71
project cities in 13 provinces, municipalities and autonomous
regions, namely Anhui, Beijing, Fujian, Guangdong, Guangxi, Hebei,
Henan, Hunan, Inner Mongolia, Jiangsu, Liaoning, Shandong and
Zhejiang, covering a total connectable urban population of 40
million.

                          *     *     *

The company continues to carry Moody's Investors Service's Ba1
senior unsecured debt rating.



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

401 CHINA: Members and Creditors to Meet on October 23
------------------------------------------------------
The members and creditors of 401 (China) Limited will meet on
October 23, 2008, at 9:30 a.m. and 9:45 a.m., respectively, at
1401, Level 14, Tower 1 of Admiralty Centre, in 18 Harcourt Road,
Hong Kong.

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


ASIA MILLION: Members and Creditors to Meet on October 23
---------------------------------------------------------
The members and creditors of Asia Million Development Limited will
meet on October 23, 2008, at 10:00 a.m. and 10:15 a.m.,
respectively, at 1401, Level 14, Tower 1 of Admiralty Centre, in
18 Harcourt Road, Hong Kong.

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


CARKEY LIMITED: Members' Final Meeting Set for October 24
---------------------------------------------------------
The members of Carkey Limited will meet on October 24, 2008, at
10:00 a.m., at Rooms 603-4, 6th Floor of Hang Seng Wanchai
Building, 200 Hennessy Road in Wanchai, Hong Kong.

At the meeting, Chiu Wai Hon and Lau Wai Ming, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.


CAVENDISH PROPERTY: Chiu and Diana Quit as Liquidators
------------------------------------------------------
On September 16, 2008, Ying Hing Chiu and Chiu Miu Yin, Diana
ceased to act as liquidators of Cavendish Property Holdings
Limited.

The company's former Liquidators can be reached at:

          Ying Hing Chiu
          Chiu Miu Yin, Diana
          Three Pacific Place, Level 28
          1 Queen's Road East
          Hong Kong


CONCORD (HONG KONG): Placed Under Voluntary Liquidation
-------------------------------------------------------
The sole member of Concord (Hong Kong) Limited resolved to
voluntarily wind up the company's operations.  Shum Lap Chi was
appointed as liquidator.

The Liquidator can be reached at:

          Shum Lap Chi
          Ka Wah Bank Centre
          Unit 1201, 12th Floor
          232 Des Voeux Road Central
          Hong Kong


JTJ INDUSTRIAL: Placed Under Voluntary Liquidation
--------------------------------------------------
At an extraordinary general meeting held on September 8, 2008, the
members of JTJ Industrial Limited resolved to voluntarily wind up
the company's operations.

The company's liquidator is:

          Tang Sau Wah
          Wang Cheong Building
          Block E, 3rd Floor
          251 Reclamation Street
          Kowloon, Hong Kong


LEHMAN BROTHERS: HK Investors Accuse Bank of Duping Them on Risks
-----------------------------------------------------------------
More than a hundred Hong Kong investors, mostly elderly retirees,
are calling to the government for actions after losing money on
structured products linked to failed U.S. investment bank Lehman
Brothers Holdings Inc., David Fox of Reuters reports.

The report relates that the protesters accused the government and
local banks for lack of information and elaboration of the risks
involved.

According to the report, many had purchased so-called "minibond"
products, notes secured by swap obligations guaranteed by Lehman.

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.

"They were misleading investors on the risk.  They said the
minibonds were highly stable," Reuters cited W.H. Chiu, a 66-year-
old retiree, as saying.

According to the report, an advertisement issued by a unit of Sun
Hung Kai & Co Ltd touted the product as "a strong collection
letting you invest with peace of mind," while noting in fine print
that the notes involved "a high degree of risk."

Reuters relates Daniel Chan, who brought HK$500,000 (US$64,300)
worth of minibonds, said "This was not a bond.  It was a
structured note.  The name was misleading.  A lot of old people
believed them."  The Hong Kong government had a moral obligation
to help the small investors burned by the investments because the
advertisements used to sell them had been authorized by the
Securities and Futures Commission, he added.

                   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.


NM AGENCY: Commences Liquidation Proceedings
--------------------------------------------
At an extraordinary general meeting held on September 5, 2008, the
members of NM Agency Leaders Association Limited agreed to
voluntarily wind up the company's operations.

The company's liquidator is:

          Shom Chun Po, CPA
          Tung Hip Commercial Building, Room 19A
          248 Des Vouex Road Central
          Hong Kong


STARWAY CORPORATION: Members' to Hear Wind-Up Report on October 24
------------------------------------------------------------------
The members of Starway Corporation Limited will meet on Oct. 24,
2008, at 10:00 a.m., to hear the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Kenneth Raymond Deayton
          Lippo Centre, Tower One, 38th Floor
          89 Queensway
          Hong Kong


WATERCOME (HK): Members & Creditor to Meet on September 26
----------------------------------------------------------
The members and creditors of Watercome (HK) Company Limited will
meet on September 26, 2008, at 12:30 p.m. and 3:00 p.m.
respectively for the purposes mentioned in Sections 241, 242, 243,
244 and 255A of the Companies Ordinance.

The meeting will be held at Room 1705 of Ginza Plaza, 2A Sai Yeung
Choi Street, Mongkok, in Kowloon, Hong Kong.


WOODHALL COMPANY: Chiu and Diana Quit as Liquidators
----------------------------------------------------
On September 16, 2008, Ying Hing Chiu and Chiu Miu Yin, Diana
ceased to act as liquidators of Woodhall Company Limited.

The company's former Liquidators can be reached at:

          Ying Hing Chiu
          Chiu Miu Yin, Diana
          Three Pacific Place, Level 28
          1 Queen's Road East
          Hong Kong



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

GENERAL MOTORS: To Use Remaining US$3.5 Bln. in Credit Facility
-------------------------------------------------------------
General Motors Corp. will draw down the remaining US$3.5 billion
of its US$4.5 billion secured revolving credit facility to
maintain a high level of financial flexibility for its ongoing
restructuring during these uncertain times in the capital markets.
GM also completed a US$322 million debt to equity exchange.

"Accessing the funds available to us is a prudent liquidity
measure.  Drawing on the revolver now improves our liquidity
position at a time when the capital markets have become more
challenging," said GM Treasurer Walter Borst.

The revolver draw will bolster the company's liquidity position.
The proceeds from the draw would also be available to be used to
retire US$750 million of debt maturities coming due in October,
and to pay Delphi Corporation in excess of
US$1.2 billion as part of its reorganization efforts, assuming
court approval of the revised agreements between GM and Delphi
that were filed with the court on Sept. 12.  The US$4.5 billion
secured revolving credit facility was put in place in July 2006
with a consortium of banks and provides liquidity that GM can draw
on from time to time to fund working capital and other needs.

John D. Stoll at The Wall Street Journal and Kathy Shwiff
at Dow Jones Newswires relate that GM already used about
US$1 billion from the line of credit early this year.

GM's decision, says WSJ, indicates concern about the effect tight
credit markets are having on the firm's cash cushion.  The
company's executives said in June that drawing down the credit
line may send a negative signal to investors, WSJ relates.  In the
past, the company avoided relying heavily on its credit lines, as
it enjoyed a relatively solid liquidity position, WSJ states.
According to WSJ, GM's liquidity has been drained by dropping
sales in the U.S. and restructuring charges recorded in recent
years.

In July, GM disclosed a plan to bolster liquidity through internal
operating actions, asset sales and the capital markets.  The
internal operating elements of the plan remain on track and the
company continues to look to access the capital markets.

As part of its capital market activities, GM has completed a debt
to equity exchange which will improve GM's liquidity by reducing
both its debt and its interest costs.  GM issued
28.3 million new shares of its common stock in exchange for US$322
million principal amount of its 1.5% Series D Senior Convertible
Debentures, which mature in June 2009.

Jeff Green and Alan Ohnsman at Bloomberg News relate that GM has
said it needs to raise US$4 billion to US$7 billion by selling
assets and adding debt to ensure it has enough liquidity to
operate through the end of 2009.

"GM felt it was a very prudent thing to have the cash on hand to
borrow at very attractive rates.  The timing was right, given the
obvious instability in the financial markets," Bloomberg quoted GM
spokesperson Julie Gibson as saying.

                   About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries.  In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

General Motors Corporation offers products under the Chevrolet
brand in India through its wholly owned subsidiary, General Motors
India.  GM India has 95 sales points and over 110 service centers.

General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units.  GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela.  GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.

At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total stockholders' deficit of US$56.9 billion.  For the quarter
ended June 30, 2008, the company reported a net loss of US$15.4
billion over net sales and revenue of US$38.1 billion, compared to
a net income of US$891.0 million over net sales and revenue of
US$46.6 billion for the same period last year.


GENERAL MOTORS: Exchanges 28.3MM Shares for Series D Debentures
--------------------------------------------------------------
General Motors Corporation on Sept. 19, 2008, issued an aggregate
of 28,300,000 shares of its common stock, par value US$1-2/3 per
share in exchange for US$321,981,326 principal amount of its 1.50%
Series D Convertible Senior Debentures due 2009, beneficially
owned by a qualified institutional holder of the Debentures.

The Agreement provided that the amount of Common Stock GM
exchanged for the Debentures was based on the daily volume
weighted average price of the Common Stock on the New York Stock
Exchange during a four day pricing period.

GM did not receive any cash proceeds as a result of the exchange
of its Common Stock for the Debentures, which Debentures have been
retired and canceled.  GM entered into the Agreement to reduce its
debt and interest costs, increase its equity and, thereby, improve
its liquidity.

GM will from time to time consider entering into additional
exchanges on an opportunistic basis.

                  About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM
employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries.  In 2007, nearly 9.37 million GM cars and
trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units.  GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela.  GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.

At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total stockholders' deficit of US$56.9 billion.  For the quarter
ended June 30, 2008, the company reported a net loss of US$15.4
billion over net sales and revenue of US$38.1 billion, compared to
a net income of US$891.0 million over net sales and revenue of
US$46.6 billion for the same period last year.


GENERAL MOTORS: Enters into Amended Settlement with Delphi
----------------------------------------------------------
Delphi Corp., as part of its efforts in completing the successful
restructuring of its U.S. operations, is entering into amended
settlement and restructuring agreements with General Motors Corp.

Delphi will receive support from GM that Delphi estimates to be
valued at approximately US$10.6 billion for its transformation --
increased from approximately US$6.0 billion in the January 2008
settlement.  The agreement will modify the mechanics and expand
the amount of Delphi's net hourly pension liability transfer to GM
pursuant to section 414(l) of the Internal Revenue Code from
US$1.5 billion under the original GSA to approximately US$3.4
billion.

Delphi is taking action to preserve and fund Delphi's hourly and
salaried pension plans and completing the reaffirmation process
for its 2008-2011 business plan in the Revised Plan of
Reorganization (RPOR), a summary of which is included in filings
with the U.S. Bankruptcy Court for the Southern District of New
York.

Delphi will report on material additional progress with respect to
Delphi's transformation plan announced in March 2006.  It will
establish its intent to enter the capital markets with its
reaffirmed business plan, and to file in the Bankruptcy Court
proposed modifications to its previously confirmed First Amended
Joint Plan of Reorganization (POR).

Delphi will file several expedited motions with the Bankruptcy
Court that will be considered by the Court on Sept. 23, 2008,
including:

    -- a motion to implement an amended and restated Global
       Settlement Agreement (Amended GSA) and Master
       Restructuring Agreement (Amended MRA) with GM.  The
       original GSA and MRA were previously approved by the
       Bankruptcy Court on Jan. 25, 2008.  The terms of the
       proposed amendments would authorize the GSA and MRA to
       become effective independent of and in advance of the
       effective date of the company's POR.  The filing states
       that the Amended GSA and Amended MRA reflect GM's
       continuing and immediate support for Delphi's
       reorganization efforts -- including the transfer of
       certain hourly pension obligations -- and will enable
       Delphi to take the next steps in its transformation,
       including the actions that should allow it to emerge
       from chapter 11 as soon as practicable.

    -- a motion to freeze its hourly and salaried defined
       benefit pension plans and provide, as applicable,
       replacement cash balance or defined contribution
       pension benefits, a salaried retirement, and
       equalization savings program, and a supplemental
       executive retirement plan.

Considerations in the Amended GSA and Amended MRA

Implementation of the Amended GSA and Amended MRA at this time is
necessary to preserve the substantial progress Delphi has made,
and to position Delphi to emerge from chapter 11 as soon as
practicable.  Unlike the original GSA and MRA, in which GM
required that its performance under those agreements be tied to
Delphi's emergence from chapter 11, the Amended GSA and Amended
MRA accelerate substantially all of GM's obligations in the
original agreements (estimated by Delphi to be approximately
US$6.0 billion in value to Delphi's transformation), which will be
implemented immediately upon the effective date of the Amended GSA
and Amended MRA.

In addition, a substantial portion of GM's incremental net support
(estimated by Delphi to be approximately US$4.6 billion in value
to Delphi's transformation) also will become immediately and
unconditionally effective.  In exchange for GM's willingness to
undertake these obligations, Delphi has agreed to treatment of
GM's claims in the chapter 11 cases, and to release GM from
certain claims and causes of action upon the effectiveness of the
Amended GSA and the Amended MRA.

Under the Amended GSA, GM would assume responsibility for the
pensions of certain of Delphi's hourly retirement plan
participants.  The liabilities would be transferred in two steps,
pursuant to section 414(l) of the Internal Revenue Code, and would
be increased from US$1.5 billion to approximately
US$3.4 billion.  The liability transfers are subject to GM and
Delphi receiving consent from a sufficient number of unions to
complete the first step of the transfer.  Through the
implementation of the Amended GSA and Amended MRA, GM's financial
support of Delphi -- which previously was to be received upon
Delphi#s emergence from chapter 11 -- is being pulled forward to
the effectiveness of the amendments.  As a result, GM will make
payments to Delphi of approximately US$1.2 billion in connection
with the effectiveness of the Amended GSA and Amended MRA, and
through the remainder of 2008.  The payments by GM combined with
Delphi's existing cash on hand -- which totaled in excess of
US$1 billion at June 30, 2008, and amounts available under
Delphi's DIP revolving credit facility, provide ample liquidity
over the course of 2008.

By immediately implementing the Amended MRA, Delphi will be in a
position to pursue exit financing in the capital markets,
including through an equity-based rights offering, to support what
it believes to be a viable, reaffirmed emergence business plan
that incorporates current market conditions and increased GM
support.

Delphi's Chief Restructuring Officer John Sheehan said that it is
in the best interests of the company to seek approval to implement
the Amended GSA and Amended MRA independent of and in advance of
the effectiveness of the POR.  He said the company has been
advised by the Creditors' Committee that it may no longer support
a settlement with GM and related transactions, if these
transactions are approved in advance of the filing and approval of
potential modifications to Delphi's POR which are acceptable to
the committee.  Absent consensual resolution of the Creditors'
Committee concerns, the Committee may file objections to one or
more of the motions and seek other relief from the Bankruptcy
Court.  Sheehan said Delphi will continue working toward a
consensus among its principal stakeholders, including the
committees, but that the likelihood of achieving consensus is
speculative and not assured.

                   Pension Plan Modifications

The motion to modify the pension plans would authorize a freeze of
the Delphi hourly pension plan following union consent and a
freeze of the U.S. salaried plans.  If approved by the Court,
Delphi would then provide, subject to the union agreement,
replacement cash balance or defined contribution pension benefits
to its hourly employees; and for eligible salaried employees,
Delphi would provide defined contribution pension benefits, a
salaried retirement and equalization savings program, and a
supplemental executive retirement plan.

"We have remained committed to fully funding our pension plans and
to being well-planned, well organized, and well-financed from the
beginning of our chapter 11 cases," said Mr. Sheehan.  "If
approved by the Court, these actions and the additional operating
support provided in the Amended GSA and Amended MRA are
significant milestones in completing the final phases of the
reorganization of our U.S. operations and positioning us to
complete the financing required for our emergence from chapter 11
as soon as practicable."

           Transformed Delphi Poised to Complete Plans

Delphi CEO and President Rodney O'Neal said the company has
achieved remarkable progress in its overall transformation, and
several elements of the transformation are outlined in the motions
being filed today with the Court.

"Despite recent challenges -- including difficult credit markets,
the downturn in the U.S. auto industry, and other cost pressures
-- our operating performance has improved significantly," Mr.
O'Neal said.  "Our team has accomplished this global
transformation in the face of a complete restructuring of a
significant portion of our operations."

Mr. O'Neal said Delphi is on track to complete its transformation
plan by the end of this year.  The key tenets of that plan were
to:

    -- modify U.S. labor agreements to create a competitive
       arena in which to conduct business;

    -- conclude Delphi's negotiations with GM to finalize GM's
       financial support for Delphi's legacy and labor costs
       and confirm GM's business commitment to Delphi;

    -- streamline Delphi's global product portfolio to
       capitalize on its technology and market strengths, and
       align its manufacturing and engineering footprint and
       capabilities with this new focus;

    -- transform Delphi's salaried workforce to ensure that
       the company's organizational and cost structure is
       competitive and aligned with its product portfolio and
       manufacturing footprint; and

    -- devise a workable solution to Delphi's U.S. pension
       situation.

In addition to working to achieve the key tenets of the
transformation plan, Mr. O'Neal said that Delphi has diversified
its customer base by growing its business in Europe, Asia, and
South America.

A summary of Delphi's Reaffirmed 2008-2011 POR Business Plan
(RPOR) is included in the Sept. 20, 2008 Court filings.  When the
closing on Delphi's POR was suspended on April 4, 2008, following
Delphi's plan investors refusal to close on their Investment
Agreement, Delphi undertook a reaffirmation process with respect
to the business plan in the POR as part of Delphi's consideration
of potential modifications to the POR in order to emerge from
chapter 11 as soon as practicable.  The RPOR includes:

    -- revised actual and expected volumes for the North
       American automotive market;

    -- significant increases in certain commodity costs;

    -- changes in the under-funded status of its pension plans
       as a result of negative plan asset returns; and

    -- substantial incremental financial support from GM
       committed to as part of the modified settlement.

Assuming that the Bankruptcy Court approves Delphi's modified
settlement with GM and the pension plan modification motion at a
hearing scheduled to begin on Sept. 23, 2008, Delphi expects to
enter the capital markets later this year with the RPOR and
anticipates filing a motion seeking approval of modifications to
the POR.

"Our progress throughout this transformation has been tremendous
and could not have been achieved without the diligence and
commitment of our employees, suppliers and customers," Mr. O'Neal
said.  "We have maintained uninterrupted supply to our customers,
and have booked record business with many of them.  The approval
of these amended agreements will help us continue our solid march
toward becoming a completely transformed and more competitive
company."

                      About Delphi Corp.

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

                   About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries.  In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units.  GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela.  GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.

At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total stockholders' deficit of US$56.9 billion.  For the quarter
ended June 30, 2008, the company reported a net loss of US$15.4
billion over net sales and revenue of US$38.1 billion, compared to
a net income of US$891.0 million over net sales and revenue of
US$46.6 billion for the same period last year.

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


KINGFISHER AIRLINES: Sheds 300 Jobs, Returns Surplus Aircraft
-------------------------------------------------------------
Kingfisher Airlines is cutting 300 jobs as part of a concerted
company-wide effort aimed at minimizing the impact of the ongoing
turbulence faced by the aviation industry, The Times of India
reports citing a company spokesperson.

The Hindu Business Line relates that the exiting employees include
200 working in the security department and another 50 each in
flight operations, engineering and maintenance, constituting less
than 5 per cent of the airline workforce of about 8,500.

According to The Times, the carrier has, over the last six months,
embarked on a series of restructuring measures designed to achieve
cost savings and rationalization and operational efficiencies.

The carrier, The Times says, is also returning surplus aircraft to
lessors, which are now redundant consequent upon route
rationalization.

Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/ -- serves about 35 domestic
destinations with a fleet of more than 40 aircraft, including
Airbus jets and ATR 72 turboprops.  It maintains bases in major
cities such as Delhi and Mumbai.  Kingfisher Airlines is a unit of
UB Holdings, best known for its United Breweries unit, and the
carrier shares the Kingfisher brand with a popular Indian beer.
UB Holdings also owns a stake in another domestic carrier, Air
Deccan, whose operations it combined with Kingfisher Airlines in
mid-2008.  Kingfisher Airlines began flying in 2005.


MOTIA CONSTRUCTIONS: CRISIL Rates Rs.250 Mil. Term Loan at BB+
--------------------------------------------------------------
CRISIL has assigned its rating of 'BB+/Stable' to the long term
loan facility of Motia Constructions Limited (Motia).

  Rs.250.0 Million Term Loan  BB+/Stable (Assigned)

The rating reflects company's high geographic concentration in the
Zirakpur market, limited experience in real estate development and
limited clarity on future plans. These weaknesses are, however,
mitigated by partial completion of the project which increases the
saleability of the project.

Outlook: Stable

Motia is expected to sustain its credit profile over the medium
term on the back of buoyant real estate demand.  The outlook could
be revised to 'Positive' upon completion of Phase III of the
project with no significant time and cost overrun. Conversely, the
outlook could be revised to 'Negative' if there is an adverse
impact on the saleability of the project of the company or company
aggressively undertakes new projects which may deteriorate its
capital structure and debt protection measures.

                 About Motia Constructions Limited

Motia promoted by Mr. Pawan Bansal, Mr Krishna Kumar Goyal and Mr
Neeraj Kansal is primarily engaged real estate development having
presence mainly in the residential segment. The entire
shareholding of the company is held between the promoters, there
relatives and friends.

                         About the Project

At present Motia is constructing its first residential complex on
the Chandigarh Delhi Highway in Zirakpur. The complex will be
having a covered area of 11, 33,134 Square Feet spread over a
total of 14.50 acres. A total of 860 flats will be constructed
under the complex.


VISITOR GARMENTS: CRISIL Rates Rs.19.60 Mil. Facilities at 'BB+'
----------------------------------------------------------------
CRISIL has assigned its bank loan ratings of 'BB+/Stable/P4' to
the various bank facilities of Visitor Garments (Visitor).

Rs.17.60 Million Long Term Loan       BB+/Stable (Assigned)
Rs. 2.00 Million Cash Credit Limits   BB+/Stable (Assigned)
Rs.48.00 Million Foreign Bill
     Purchase/Discounting              P4 (Assigned)

The ratings reflect the revenue concentration risks faced by the
firm; its below-average financial profile, marked by low net worth
and margins; and lack of integrated facilities, resulting in low
operating margins that are susceptible to fluctuations in cotton
prices and rupee exchange rate.  These rating weaknesses are
mitigated by the fact that Visitor is an established player in
knitwear and is managed by experienced promoters who enjoy good
relationships and credentials with its sole customer Primark
Stores.

Outlook: Stable

CRISIL believes that Visitor will be able to maintain its current
financial profile in the medium term, driven by the long-standing
business relationship with Primark Stores.  The outlook could be
revised to 'Positive' in case of diversification of client
profile, and an improvement in Visitor's financial profile as a
result of equity infusion or higher than expected accruals.
Conversely, it could be revised to 'Negative' if the firm
contracts more-than-expected debt, or in case of deterioration in
family synergies or customer relationship.

                         About the Firm

Visitor is a partnership firm, based in Tirupur.  It manufactures
ladies' knitted nightwear.  It was set up in 1988 by Mr.
M.Muthukrishnan.  The firm exports its entire production to a sole
customer Primark Stores.  For 2007-08 (refers to financial year,
April 1 to March 31), Visitor posted a profit after tax (PAT) of
Rs.13.35 million on net sales of Rs.301.82 million, as against a
PAT of Rs.7.41 million on net sales of Rs.252.50 million in the
previous year.



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

* INDONESIA: Weak Financial Market Puts Economy Under Pressure
--------------------------------------------------------------
Indonesia's economy is now under pressure due to the decline in
the prices of primary products and the weak financial market,
Antara News reports citing Dr. Sri Adiningsih of Gajahmada
Univeristy as saying.

"The economic situation in Indonesia is becoming serious, moreover
after the prices of primary products such as oil and coal in the
world market drop while Indonesia is a producer of primary
products," Dr. Sri Adiningsih was quoted by The Post as saying.

Dr. Sri Adiningsih added that when the prices of several primary
products are rising and though it is not booming, the country's
economic condition could still be saved, but if the prices of
primary goods are down while the financial market continues to
fluctuate marked by the weakening of the rupiah and the drop in
the composite index, the Indonesian economy may be threatened to
decline.

The report says Dr. Sri Adiningsih hoped that the authorities
could conduct stabilization and give confidence to the market
players.

"The loss of the market players' trust will seriously affect the
economy," Dr. Sri Adiningsih was quoted by Antara as saying.


* INDONESIA: Manufacturing Sector Slows Down in Third Quarter
-------------------------------------------------------------
Jakarta Post reports that Indonesia's manufacturing sector only
grew at an estimated 3.85% to 4% for the third quarter of July to
September period, lower than the 4.43% growth recorded in the
second quarter.  Business associations say that this was the
result of higher production costs and the impact of the global
economic slowdown, the report states.

The report cited Indonesian Employers Association (API) Chairman
Sofjan Wanandi as saying that the central bank's increase of key
interest rates is counterproductive and will cause fewer loans to
be channeled to the real sector.  As a result, it is unlikely that
the country could realize its economic growth target of over 6% by
the end of the year, Mr. Wanandi adds.

"Our energy and monetary policies pose negative effects to our
manufacturing sector.  These are classic problems that may bring
down manufacturing sector growth until the end of 2008," Head of
the Fiscal and Monetary Committee at the Indonesian Chambers of
Commerce (Kadin) Bambang Soestyo was quoted by the Post as saying.

Dedi Mulyadi, head of the industrial research and development
agency at the industry ministry, was also cited by The Post as
saying that the manufacturing sector was taking a dip, noting that
the labor-intensive industries that will be most affected by the
weakening global economy includes: textiles, footwear, food,
beverages, tobacco, fertilizer, chemical, rubber-made product
industries and the cement and non-metal mineral industries.



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

DELPHI CORP: Reaches Settlement & Restructuring Pacts With GM
-------------------------------------------------------------
Delphi Corp., as part of its efforts in completing the successful
restructuring of its U.S. operations, is entering into amended
settlement and restructuring agreements with General Motors Corp.

Delphi will receive support from GM that Delphi estimates to be
valued at approximately US$10.6 billion for its transformation --
increased from approximately US$6.0 billion in the January 2008
settlement.  The agreement will modify the mechanics and expand
the amount of Delphi's net hourly pension liability transfer to GM
pursuant to section 414(l) of the Internal Revenue Code from
US$1.5 billion under the original GSA to approximately US$3.4
billion.

Delphi is taking action to preserve and fund Delphi's hourly and
salaried pension plans and completing the reaffirmation process
for its 2008-2011 business plan in the Revised Plan of
Reorganization (RPOR), a summary of which is included in filings
with the U.S. Bankruptcy Court for the Southern District of New
York.

Delphi will report on material additional progress with respect to
Delphi's transformation plan announced in March 2006.  It will
establish its intent to enter the capital markets with its
reaffirmed business plan, and to file in the Bankruptcy Court
proposed modifications to its previously confirmed First Amended
Joint Plan of Reorganization (POR).

Delphi will file several expedited motions with the Bankruptcy
Court that will be considered by the Court on Sept. 23, 2008,
including:

    -- a motion to implement an amended and restated Global
       Settlement Agreement (Amended GSA) and Master
       Restructuring Agreement (Amended MRA) with GM.  The
       original GSA and MRA were previously approved by the
       Bankruptcy Court on Jan. 25, 2008.  The terms of the
       proposed amendments would authorize the GSA and MRA to
       become effective independent of and in advance of the
       effective date of the company's POR.  The filing states
       that the Amended GSA and Amended MRA reflect GM's
       continuing and immediate support for Delphi's
       reorganization efforts -- including the transfer of
       certain hourly pension obligations -- and will enable
       Delphi to take the next steps in its transformation,
       including the actions that should allow it to emerge
       from chapter 11 as soon as practicable.

    -- a motion to freeze its hourly and salaried defined
       benefit pension plans and provide, as applicable,
       replacement cash balance or defined contribution
       pension benefits, a salaried retirement, and
       equalization savings program, and a supplemental
       executive retirement plan.

Considerations in the Amended GSA and Amended MRA

Implementation of the Amended GSA and Amended MRA at this time is
necessary to preserve the substantial progress Delphi has made,
and to position Delphi to emerge from chapter 11 as soon as
practicable.  Unlike the original GSA and MRA, in which GM
required that its performance under those agreements be tied to
Delphi's emergence from chapter 11, the Amended GSA and Amended
MRA accelerate substantially all of GM's obligations in the
original agreements (estimated by Delphi to be approximately
US$6.0 billion in value to Delphi's transformation), which will be
implemented immediately upon the effective date of the Amended GSA
and Amended MRA.

In addition, a substantial portion of GM's incremental net support
(estimated by Delphi to be approximately US$4.6 billion in value
to Delphi's transformation) also will become immediately and
unconditionally effective.  In exchange for GM's willingness to
undertake these obligations, Delphi has agreed to treatment of
GM's claims in the chapter 11 cases, and to release GM from
certain claims and causes of action upon the effectiveness of the
Amended GSA and the Amended MRA.

Under the Amended GSA, GM would assume responsibility for the
pensions of certain of Delphi's hourly retirement plan
participants.  The liabilities would be transferred in two steps,
pursuant to section 414(l) of the Internal Revenue Code, and would
be increased from US$1.5 billion to approximately
US$3.4 billion.  The liability transfers are subject to GM and
Delphi receiving consent from a sufficient number of unions to
complete the first step of the transfer.  Through the
implementation of the Amended GSA and Amended MRA, GM's financial
support of Delphi -- which previously was to be received upon
Delphi#s emergence from chapter 11 -- is being pulled forward to
the effectiveness of the amendments.  As a result, GM will make
payments to Delphi of approximately US$1.2 billion in connection
with the effectiveness of the Amended GSA and Amended MRA, and
through the remainder of 2008.  The payments by GM combined with
Delphi's existing cash on hand -- which totaled in excess of
US$1 billion at June 30, 2008, and amounts available under
Delphi's DIP revolving credit facility, provide ample liquidity
over the course of 2008.

By immediately implementing the Amended MRA, Delphi will be in a
position to pursue exit financing in the capital markets,
including through an equity-based rights offering, to support what
it believes to be a viable, reaffirmed emergence business plan
that incorporates current market conditions and increased GM
support.

Delphi's Chief Restructuring Officer John Sheehan said that it is
in the best interests of the company to seek approval to implement
the Amended GSA and Amended MRA independent of and in advance of
the effectiveness of the POR.  He said the company has been
advised by the Creditors' Committee that it may no longer support
a settlement with GM and related transactions, if these
transactions are approved in advance of the filing and approval of
potential modifications to Delphi's POR which are acceptable to
the committee.  Absent consensual resolution of the Creditors'
Committee concerns, the Committee may file objections to one or
more of the motions and seek other relief from the Bankruptcy
Court.  Sheehan said Delphi will continue working toward a
consensus among its principal stakeholders, including the
committees, but that the likelihood of achieving consensus is
speculative and not assured.

                   Pension Plan Modifications

The motion to modify the pension plans would authorize a freeze of
the Delphi hourly pension plan following union consent and a
freeze of the U.S. salaried plans.  If approved by the Court,
Delphi would then provide, subject to the union agreement,
replacement cash balance or defined contribution pension benefits
to its hourly employees; and for eligible salaried employees,
Delphi would provide defined contribution pension benefits, a
salaried retirement and equalization savings program, and a
supplemental executive retirement plan.

"We have remained committed to fully funding our pension plans and
to being well-planned, well organized, and well-financed from the
beginning of our chapter 11 cases," said Mr. Sheehan.  "If
approved by the Court, these actions and the additional operating
support provided in the Amended GSA and Amended MRA are
significant milestones in completing the final phases of the
reorganization of our U.S. operations and positioning us to
complete the financing required for our emergence from chapter 11
as soon as practicable."

           Transformed Delphi Poised to Complete Plans

Delphi CEO and President Rodney O'Neal said the company has
achieved remarkable progress in its overall transformation, and
several elements of the transformation are outlined in the motions
being filed today with the Court.

"Despite recent challenges -- including difficult credit markets,
the downturn in the U.S. auto industry, and other cost pressures
-- our operating performance has improved significantly," Mr.
O'Neal said.  "Our team has accomplished this global
transformation in the face of a complete restructuring of a
significant portion of our operations."

Mr. O'Neal said Delphi is on track to complete its transformation
plan by the end of this year.  The key tenets of that plan were
to:

    -- modify U.S. labor agreements to create a competitive
       arena in which to conduct business;

    -- conclude Delphi's negotiations with GM to finalize GM's
       financial support for Delphi's legacy and labor costs
       and confirm GM's business commitment to Delphi;

    -- streamline Delphi's global product portfolio to
       capitalize on its technology and market strengths, and
       align its manufacturing and engineering footprint and
       capabilities with this new focus;

    -- transform Delphi's salaried workforce to ensure that
       the company's organizational and cost structure is
       competitive and aligned with its product portfolio and
       manufacturing footprint; and

    -- devise a workable solution to Delphi's U.S. pension
       situation.

In addition to working to achieve the key tenets of the
transformation plan, Mr. O'Neal said that Delphi has diversified
its customer base by growing its business in Europe, Asia, and
South America.

A summary of Delphi's Reaffirmed 2008-2011 POR Business Plan
(RPOR) is included in the Sept. 20, 2008 Court filings.  When the
closing on Delphi's POR was suspended on April 4, 2008, following
Delphi's plan investors refusal to close on their Investment
Agreement, Delphi undertook a reaffirmation process with respect
to the business plan in the POR as part of Delphi's consideration
of potential modifications to the POR in order to emerge from
chapter 11 as soon as practicable.  The RPOR includes:

    -- revised actual and expected volumes for the North
       American automotive market;

    -- significant increases in certain commodity costs;

    -- changes in the under-funded status of its pension plans
       as a result of negative plan asset returns; and

    -- substantial incremental financial support from GM
       committed to as part of the modified settlement.

Assuming that the Bankruptcy Court approves Delphi's modified
settlement with GM and the pension plan modification motion at a
hearing scheduled to begin on Sept. 23, 2008, Delphi expects to
enter the capital markets later this year with the RPOR and
anticipates filing a motion seeking approval of modifications to
the POR.

"Our progress throughout this transformation has been tremendous
and could not have been achieved without the diligence and
commitment of our employees, suppliers and customers," Mr. O'Neal
said.  "We have maintained uninterrupted supply to our customers,
and have booked record business with many of them.  The approval
of these amended agreements will help us continue our solid march
toward becoming a completely transformed and more competitive
company."

                   About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries.  In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

General Motors Corporation offers products under the Chevrolet
brand in India through its wholly owned subsidiary, General Motors
India.  GM India has 95 sales points and over 110 service centers.

General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units.  GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela.  GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.

At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total
stockholders' deficit of US$56.9 billion.  For the quarter ended
June 30, 2008, the company reported a net loss of US$15.4 billion
over net sales and revenue of US$38.1 billion, compared to a net
income of US$891.0 million over net sales and revenue of
US$46.6 billion for the same period last year.

                      About Delphi Corp.

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

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


LEHMAN BROTHERS: Sells US$1.87BB Long Positions in Nikkei Futures
-----------------------------------------------------------------
Lehman Brothers Holdings Inc. has sold nearly all of its US$1.87
billion worth of long positions in Nikkei 225 futures, Taiga
Uranaka of Reuters reports citing the Osaka Securities Exchange.

Some market participants, the report relates, had worried that the
unwinding of those positions Lehman Brothers would depress the
benchmark Nikkei share average .N225, which the futures contract
tracks.

According to the report, the OSE said Lehman sold 15,500 Nikkei
225 December contracts on Sept. 19, when the Tokyo market surged
on investor relief that the U.S. authorities were preparing a more
comprehensive approach to tackle the financial crisis.

According to the report, as of Sept. 12, Lehman had been long by a
net 15,747 contracts on Nikkei 225 December futures and by a net
250 contracts on March futures, which were worth JPY195 billion
and made it the largest holder of long contracts at the time.

These positions included both those held on behalf of clients and
for Lehman's proprietary trading.

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 were included in the Chapter 11
filing and all of the broker-dealers will continue to operate.

Reuters relates that after Lehman's bankruptcy, the Tokyo Stock
Exchange and Osaka bourse have barred Lehman from entering fresh
trades, but it was allowed to close existing derivatives
positions.

                     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.


MITSUBISHI: Aims 10% Share in Korea's Imported Cars Market
----------------------------------------------------------
Mitsubishi Motors Corporation targets a 10% share in Korea's
market for imported cars within five years by gradually
introducing new models, Yonhap News reports.

The company, the report relates, will start selling its Lancer
Evolution sedan and Outlander sport-utility vehicle in Seoul and
other major cities starting next week, through a joint venture
with a local auto distributor Daewoo Motor Sales Corp.

According to the report, South Korea's imported vehicle sales are
likely to rise 20% to more than 60,000 units in 2008, according to
the Korea Automobile Importers & Distributors Association.

                     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


NOMURA HOLDINGS: To Sell 71.5% Stake in Tungaloy Corp.
------------------------------------------------------
Nomura Holdings Inc. agreed to sell its 71.5% stake in Tungaloy
Corp., to a unit of Warren Buffett's Berkshire Hathaway Inc.,
Netherlands-based IMC International Metalworking Co., Takahiko
Hyuga of Bloomberg News reports.

The company did not disclose the price involved in the deal.

The report recounts that Nomura bought the stake in Tungaloy from
Toshiba Corp. in 2003.   Tungaloy posted JPY50 billion (US$468
million) in sales for the year ended March 31, and JPY6.6 billion
of earnings.

Nomura Holdings, Inc. -- http://www.nomura.com/ --  is a
securities and investment banking firm in Japan and has
worldwide operations.  Nomura is a holding company.  The
services it provides include trading, underwriting, and offering
securities, asset management services, and others.  As of
March 31, 2008, it operated offices in about 30 countries and
regions, including Japan, the United States, the United Kingdom,
Singapore and Hong Kong through its subsidiaries.  The company's
customers include individuals, corporations, financial
institutions, governments and governmental agencies.  Nomura
operates in five business divisions: domestic retail, global
markets, global investment banking, global merchant banking and
asset management.   In February, 2007, Nomura acquired Instinet
Incorporated.

                        *     *     *

Nomura Holdings still carries Fitch Ratings' 'C' individual
rating.

On Aug. 1, 2008, the Troubled Company Reporter - Asia pacific ,
citing the Wall Street Journal, reported that Nomura Holdings
posted a JPY76.6 billion (US$712.8 million) net loss for its
fiscal first quarter, from a JPY75.9 billion net profit a year
earlier.  The reported loss, the report said, came after write-
downs of risky debt products, and a Japanese bank's expectation
that difficult market conditions will continue.



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

BSA INTERNATIONAL: Receives Writ of Summons from Kenanga
--------------------------------------------------------
Kenanga Investment Bank Berhad has filed a writ of summon claim
against BSA International Berhad for the Letters of Offers and
Facility Agreement in relation to MYR45 million term loan granted
to the company.  Kenanga demands payment for:

   a) MYR45 million being the Principal Outstanding as at
      July 31, 2008;

   b) MYR696,403.08 being the Overdue Interest as at July 31,
      2008;

   c) MYR176,301.37 being the Accrued Interest from July 10, 2007,
      until July 31, 2008, inclusive;

   d) MYR6,528.91 being the Default Interest as at July 31, 2008;

   e) Interest on MYR45,879,233.36 (inclusive of principal and
      default interest due) thereon at the rate of 3% per annum
      (inclusive of default interest rate of 1% per annum above
      the Bank's Cost of Funds then at 4.5% per annum calculated
      on monthly rests from August 1, 2008, until August 6, 2008;
      and

   f) Interest on MYR45,879,233.36 (inclusive of principal and
      default interest due) at 3.5% per annum above the Bank's
      Cost of Funds calculated on monthly rests from August 7,
      2008, until the date of actual payment.

The writ of summon will be stayed for some time as the company and
its subsidiaries have obtained a Restraining Order in the High
Court of Shah Alam, restraining all proceedings for a period of
90 days from September 15, 2008.

There is no additional financial and operational impact of the
wind-up petition on BSA Group as the company has announced that it
has defaulted in payments under Practice Note No. 1/2001 of the
Listing Requirements of Bursa Malaysia Securities Berhad on
June 2, 2008.  Moreover, it triggered the requirement under
Practice Note No. 17/2005 of the Listing Requirements of Bursa
Malaysia on June 9, 2008, and has until February 8, 2009, to
submit a Regularization Plan to the relevant authorities for
approval.

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


UBG BERHAD: Discloses Appointments and Resignations of Personnel
----------------------------------------------------------------
UBG Berhad disclosed with the Bursa Stock Exchange the appointment
of its personnel, namely:

   * Krishnan A/L C K Menon as the company's Chairman of Audit
     Committee;
   * Low Taek Jho as the company's Director;
   * Tan Vern Tact as an alternate Director;
   * Krishnan a/l C K Menon as the company's Director;
   * H.E. Yousif Mana Saeed Alotaiba as the company's
     Non-Executive Director;
   * Shaher Mohamed Ali Al-Awartani as the company's alternate
     Director;
   * Haji Mahmud Abu Bekir Taib as the company's member of Audit
     Committee; and
   * Dato Sri Liang Kim Bang @ Neo Ah Pang as the company's member
     of Audit Committee.

Moreover, UBG also disclosed the resignation of some of its
personnel, namely:

   * Kevin How Kow as the Non-Executive Director;
   * Datu Michael Ting Kuok Ngie @ Ting Kok Ngie the company's
     Director;
   * Dato' Vaseehar Hassan Bin Abdul Razack as the company's
     Non-Executive Director;
   * Dato' Vaseehar Hassan bin Abdul Razack as the company's
     Member of Audit Committee;
   * Kevin How Kow as the company's Chairman of Audit Committee;
   * Dato' Paduka Nik Hashim Bin Nik Yusoff as the company's
     Non-Executive Director; and
   * Dato' Richard Alexander John Curtis as the company's
     Non-Executive Director.

Formerly known as Utama Banking Group Berhad, UBG Berhad's
principal activities are banking and related financial services.
Other activities include investment holding and provision of
nominees services.  Operations of the Group are carried out in
Malaysia.

                          *     *     *

The company is classified under Amended Practice Note 17 of the
Bursa Malaysia Securities Bhd's Listing Requirements after it
completed the disposal of its entire investment in Rashid
Hussain Berhad, leaving UBG with no significant business
operations.



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

DOGSTAR LTD: Commences Liquidation Proceedings
----------------------------------------------
The High Court at Wellington held a hearing on Sept. 8, 2008, to
consider an application putting Dogstar Limited into liquidation.

The application was filed on June 20, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          7-27 Waterloo Quay
          (PO Box 1462)
          Wellington
           Telephone: (04) 890 1028
           Facsimile: (04) 890 0009

Philip Hugh Brian Latimer is the plaintiff's solicitor.


DORCHESTER PACIFIC: Reschedules Annual Meeting
----------------------------------------------
Dorchester Pacific said it has rescheduled its Annual General
meeting because of the delays in the finalization of Dorchester
Finance' deferred repayment plan.

Dorchester Finance, a wholly owned subsidiary of Dorchester
Pacific, has been revising the proposed plan in consultation with
the trustees and independent advisors.  Dorchester Pacific said
this process should be concluded by next week.

The Board of Dorchester Pacific anticipates that the final plan
will require some further provisions to be made.  The quantum of
these provisions will be able to be determined when the plan is
complete.

The vote by Dorchester Finance's stock and note holders on the
final plan is expected to be held in late October.  Once a date
for this meeting is confirmed, formal notice of Dorchester
Pacific's Annual Meeting will be issued as well as an announcement
regarding the re-opening of director nominations in accordance
with NZX Listing Rule 3.3.2.

Under the company's constitution, Barry Graham retires as a
director by rotation.  The other directors have asked Mr. Graham
to stand for re-election at the Annual Meeting to oversee, as
Chairman of the Board, the implementation of the proposed deferred
repayment plan.  Paul Byrnes will be stepping down and seeking re-
election as a director at the Annual Meeting as a result of his
move to an executive role.

Dorchester said that 6.1% of shareholders have requested an
Extraordinary General Meeting to put the following resolutions
proposed by the New Zealand Shareholders Association:

"That the company appoint a liquidator immediately following the
passing of this resolution."

Alternatively, if that resolution is defeated, to consider the
following resolutions:

"That Barry Graham be removed as a director."

"That Paul Byrnes be removed as a director."

The extraordinary general meeting will be held on the same day as
the annual meeting.

                         Proposed Deferred
                       Repayment Plan Update

In a letter to its investors, Dorchester Finance said it has been
engaged in a review process with its advisers and the Trustees and
they have provided positive and constructive feedback.  Dorchester
Finance said it is revising the plan accordingly.  The revisions
place increased emphasis on achieving full and early repayment of
principal.  In light of this change in emphasis, interest payments
have been suspended from Sept. 17, 2008.

Dorchester Finance said it anticipates that a vote on the plan
will be held around the end of October, with principal repayments
commencing shortly thereafter.

                      About Dorchester Pacific

Headquartered in Auckland, New Zealand, Dorchester Pacific
Limited (NZE:DPC)-- http://www.dorchester.co.nz--is a financial
solutions provider, offering complementary products and services
across finance, insurance, savings and investments.  The Finance
division provides investment opportunities through secured
debenture stock and subordinated unsecured notes, and financing
solutions for the property, business, equipment, motor vehicle
and personal finance sectors.  Its insurance and savings
division provides a range of savings, life insurance, reverse
annuity mortgages, home equity release loans and other financial
products and services.  The Investment Service division includes
equity investment advisers and sharebrokers, MoneyOnline and NZ
Investor Magazine, which provide professional, independent
investment advice, sharebroking and financial planning services.
Dorchester Pacific holds a 25% shareholding in St. Laurence
Limited, the holding company for a property-based investment and
finance group of companies, which manages assets for over 16,000
investors.

                           *     *    *

As reported in the Troubled Company Reporter-Asia Pacific on
June 27, 2008, Dorchester Finance, a subsidiary of Dorchester
Pacific said it will withdraw and not renew its prospectus and
will seek the approval of debenture holders and note holders to a
deferred repayment plan, but with continued interest payments.

Chairman of Dorchester Finance, Mr. Barry Graham said "As a
result of the rapid decline in the property finance market and a
continuing fall in reinvestment rates the Board has formed the
view that there is now a risk of a cash flow shortfall arising
in future months."

Mr. Graham added "The intention of the deferred repayment plan
is to allow us to repay principal owed to investors over a
period of approximately two years.  Although the details are yet
to be formulated and agreed with the Trustees, Dorchester
Finance intends to continue to make interest payments.
Repayments of debenture and subordinated note maturities will be
suspended from June 26, 2008."

As at June 24, 2008, Dorchester Finance had NZ$168 million in
debenture stock secured against total assets of NZ$212 million,
including NZ$18 million in cash.  In addition it had NZ$8 million
in subordinated notes on issue.


DREAM HOMES: Proofs of Debt Due on October 17
---------------------------------------------
Pursuant to section 241(2)(c) of the Companies Act 1993, the High
Court has appointed John Howard Ross Fisk, chartered accountant,
and Craig Alexander Sanson, insolvency practitioner, both of
Wellington, as liquidators of Dream Homes Limited.

Creditors are required to file their proofs of debt by Oct. 17,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

          Attn: Russell D. Fildes
          PricewaterhouseCoopers
          113-119 The Terrace
          PO Box 243
          Wellington
          Telephone: (04) 462 7015
          Facsimile: (04) 462 7492


FEATHERSTON HOTEL: Proofs of Debt Due on October 17
---------------------------------------------------
Pursuant to section 241(2)(c) of the Companies Act 1993, the High
Court has appointed John Howard Ross Fisk, chartered accountant,
and Craig Alexander Sanson, insolvency practitioner, both of
Wellington, as liquidators of  Featherston Hotel Limited.

Creditors are required to file their proofs of debt by Oct. 17,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

          Attn: Russell D. Fildes
          PricewaterhouseCoopers
          113-119 The Terrace
          PO Box 243
          Wellington
          Telephone: (04) 462 7015
          Facsimile: (04) 462 7492


INFOSCREENS LTD: High  Court Appoints Liquidators
--------------------------------------------------
In accordance with section 255(2) of the Companies Act 1993, the
High Court at Auckland has appointed John Trevor Whittfield and
Peri Micaela Finnigan, insolvency practitioners of Auckland, as
liquidators of  Infoscreens Limited.

Creditors who were unable to prove their debts on Sept. 18, 2008,
are excluded from the dividend distribution.

The liquidators can be reached at:

          McDonald Vague
          PO Box 6092
          Wellesley Street, Auckland 1141
          Telephone: (09) 303 0506
          Facsimile: (09) 303 0508
          Website: www.mvp.co.nz


LIGHT HOUSE: Commences Liquidation Proceedings
----------------------------------------------
The High Court at Wellington held a hearing on Sept. 8, 2008, to
consider an application putting Light House Cinema (Upper Hutt)
Limited into liquidation.

The application was filed on July 14, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          7-27 Waterloo Quay
          (PO Box 1462)
          Wellington
          Telephone: (04) 890 1028
          Facsimile: (04) 890 0009

Philip Hugh Brian Latimer is the plaintiff's solicitor.


MCCANN & ASSOCIATES: Commences Liquidation Proceedings
------------------------------------------------------
The High Court at Napier convened a hearing on Sept. 18, 2008, to
consider an application putting McCann & Associates Limited into
liquidation.

The application was filed on July 16, 2008, by  John Francis
Managh, of Napier, as liquidator of Man Joinery Limited (in
liquidation).

The plaintiff's address for service is at:

          Hansen & Bate
          200 Warren Street South
          Hastings 4122

E. M. Bate is the plaintiff's solicitor.


PLUSH CLOTHING: Commences Liquidation Proceedings
-------------------------------------------------
The High Court at Christchurch convened a hearing on Sept. 8,
2008, to consider an application putting Plush Clothing Limited
into liquidation.

The application was filed on July 10, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

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

Julie Newton is the plaintiff's solicitor.


STRATEGIC FINANCE: Censured for Breaching Market Disclosure Rules
-----------------------------------------------------------------
Strategic Finance Limited has been publicly censured by New
Zealand Stock Exchange (NZX) and ordered to pay a NZ$20,000
penalty for breaching market disclosure rules.

According to The National Business Review, Strategic Finance said
it accepted it breached the rules on disclosure, but said it did
so inadvertently while providing explanations to brokers regarding
some capital restructure planning options being explored.

NZX Discipline said in a public announcement released yesterday,
Sept. 22, 2008, Strategic Finance acted in breach of Listing Rule
10.1.1(b) by releasing material information to third parties prior
to providing that material information to NZX.

According to NZX, the material information concerned details of
the proposed sale of its parent Strategic Investment Group
Limited, by Allco HIT Limited.  The breach of Listing Rule
10.1.1(b) first arose on Aug. 7, 2008, when SFL telephoned certain
market participants disclosing material information to them.  At
this point, NZX said, the material information was no longer
confidential and therefore the exception to the requirement to
disclose material information to NZX ceased to apply.

NZX said one of the penalties imposed under the NZXD determination
is public censure of Strategic Finance.

The Business Review relates that the breach was exacerbated on
Aug. 8, 2008, when Strategic Finance distributed an email to a
wider group outlining the proposed terms for a capital restructure
of the company.  Extracts of the email were published in the
media, the report adds.

The breach continued until August 11, when Strategic Finance made
an announcement to the market at 10:07 a.m., the report says.

According to the Business Review, NZX Discipline said mitigating
factors included the fact that Strategic Finance's shares were in
a trading halt for the duration of the breach, aside from seven
minutes during which time no trading took place.  So, no security
holders were harmed by the breach, the Business Review notes.

Also, the Business Review says, communication between NZX and
Strategic Finance on August 8 appeared to have contributed to
Strategic Finance's misunderstanding that it could communicate
with brokers before the release of any announcement to the market,
while the trading halt was in place.

NZX Discipline said that the apparent vagueness of that
communication and the impression it left with Strategic Finance --
that no market disclosure was needed because of the trading halt
-- was a significant factor in determining the penalty.

                     About Strategic Finance

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

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

                          *     *     *

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

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

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


TAMARIKI LIMITED: Appointed Liquidators
---------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Arron
Leslie Heath and Michael Lamacraft, insolvency practitioners, were
appointed as liquidators of Tamariki Limited on Aug. 18, 2008.

Creditors who were unable to prove their debts on Sept. 19, 2008,
are excluded from the dividend distribution.

The liquidators can be reached at:

         Attn: Mike Lamacraft
         Meltzer Mason Heath
         Chartered Accountants
         PO Box 6302
         Wellesley Street, Auckland 1141
         Telephone: (09) 357 6150
         Facsimile: (09) 357 6152


TOPP CONSTRUCTION: Commences Liquidation Proceedings
----------------------------------------------------
The High Court at Wellington held a hearing on Sept. 8, 2008, to
consider an application putting Topp Construction Limited into
liquidation.

The application was filed on July 10, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          7-27 Waterloo Quay
          (PO Box 1462)
          Wellington
           Telephone: (04) 890 1028
           Facsimile: (04) 890 0009

Philip Hugh Brian Latimer is the plaintiff's solicitor.


* NEW ZEALAND: Electronic Card Spending Increases 0.8% in August
----------------------------------------------------------------
After adjusting for seasonal effects, the total Electronic Card
Transaction (ECT) series increased 0.8 percent in August 2008
compared with July 2008, Statistics New Zealand said.  The
consumables and non-retail industries were the main contributors
to this increase, which was partly offset by a decrease in the
fuel retailing industry.

The trend for the total ECT series has been comparatively flat
since February 2008, but has started to rise in recent months.

After adjusting for seasonal effects, the retail ECT series was
1.1 percent higher in August 2008 than in July 2008.  The core
retail ECT series (which excludes the motor vehicle-related
industries) increased 1.7 percent in August following a 1.7
percent increase in July. Both increases were largely due to the
increase in the consumables industry.

There were 85 million electronic transactions in August 2008 with
a value of NZ$4.6 billion.



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

* PHILIPPINES: NPL Ratio of Banks Continue to Fall
--------------------------------------------------
The Bangko Sentral ng Pilipinas (BSP) disclosed that
non-performing loans (NPL) among universal and commercial banks
continued to fall as of end-June 2008.

The BSP said that the ratio of NPLs to the total loan portfolio is
at 3.99%, lower than the 4.17% NPL ratio registered in May and the
5.21% in June of last year.  The latest NPL ratio bodes well for
the industry as it is the lowest since the onset of the 1997 Asian
financial crisis.

Indications of improvement are consistently evident in the
numbers.  Past due loans fell by Php1 billion while those
classified as non-performing declined by Php2.05 billion.  Real
and Other Properties Acquired (ROPA) fell by Php1.36 billion over
the one month period leading to an overall decline in non-
performing assets (NPAs) by Php3.42 billion.

A loan is deemed past due one day after a missed quarterly or
semestral installment payment obligation and is classified as non-
performing if the missed installment payment remains unsettled 30
days after.  ROPA include foreclosed assets and those acquired via
dacion en pago to settle, in part or in full, an outstanding
unpaid obligation.

The BSP highlighted the positive development by noting that
universal and commercial banks are the main providers of credit
facilities in the country both for retail and commercial needs.
As of end-June 2008, universal and commercial banks report an
outstanding loan portfolio of Php2,355.2 billion.

What makes the lower NPL ratio quite meaningful is the fact that
it was not limited to a reduction in accounts experiencing payment
difficulties.  The numbers also show that the decline in the ratio
was augmented by the expansion in the total loan portfolio by
almost Php54 billion and a corresponding Php2.88 billion decline
in restructured loans.  Moving forward, this expansion in the loan
portfolio is just as critical since it makes credit available for
productive economic endeavors.

Loan loss reserves amounted to Php90.79 billion in June while ROPA
reserves stood at Php25.67 billion.  The combined reserve of
Php116.46 billion is slightly lower than the May level but this is
more than offset by the significant decreases in both non-
performing loans and non-performing assets.  As a result, the
coverage ratios for NPLs and NPAs actually increased by 182 basis
points and 64 basis points respectively from their end-May values.


* PHILIPPINES: Banking System Stable Despite Lehman Bankruptcy
--------------------------------------------------------------
The Philippine banking system is sound and stable, has a solid
capital base and has limited exposure to Lehman Brothers in the US
that has declared bankruptcy, data from Bangko Sentral ng Pilinas
(BSP) shows.

In fact, the few banks that have investments in Lehman have
declared that these will have limited impact on their financial
standing on account of their big asset base.

The reforms BSP have instituted in the past years are serving in
good stead in terms of capital buildup, enhanced risk management,
and adherence to good governance.

BSP is confident that the country's banking system can withstand
the fallout from the financial crisis in the United States.


* PHILIPPINES: Posts US$221MM BOP Surplus in 2nd Quarter
--------------------------------------------------------
The balance of payments (BOP) yielded a surplus of US$221 million
in Q2 2008 as both the current and capital and financial accounts
registered net inflows.  This brought the cumulative BOP surplus
to US$1.9 billion in the first half of the year.  The BOP
surpluses for the quarter and for the first semester 2008,
however, were lower relative to the levels in the comparable
period in 2007 by 87.3 percent and 39.3 percent, respectively, due
to the lower current account surplus following the wider deficit
in the trade-in-goods account, data from Bangko Sentral ng
Pilipinas shows.

It was noted that 2007 was an exceptional year capped by ample
foreign exchange liquidity from strong overseas Filipinos'
remittances and foreign investments.  In the first half of 2008,
however, the external environment was characterized by high oil
and food prices in the world commodities market, as reflected in a
higher import bill for the country, resulting in increased trade-
in-goods deficit and a lower current account surplus.  In the
capital market, risk aversion prevailed among investors in view of
the lingering global financial market uncertainties that
manifested in net outflows in portfolio investment.

With the positive external payments position, the country's gross
international reserves (GIR) rose to US$36.7 billion as of end-
June 2008, up by 8.8 percent compared to the end-December 2007
level of US$33.8 billion.  At this level, reserves were equivalent
to 6.0 months' worth of imports of goods and payment of services
and income (import cover).  In terms of short-term external debt
coverage, the reserves level was 5.1 times the amount of the
country's short-term external liabilities based on original
maturity and 2.9 times based on residual maturity.

                  Second Quarter 2008 Developments

Current Account

The current account remained in surplus at US$823 million
(equivalent to 1.9 percent of GDP), supported by increased net
receipts from current transfers, income and services.  However,
the surplus was lower by 50.7 percent compared to the level in the
same quarter in 2007, mainly due to higher trade-in-goods deficit.

a)  Trade-in-Goods Account

The trade-in-goods deficit widened by 76.1 percent to reach
US$3.7 billion from US$2.1 billion a year ago, as the growth in
merchandise imports at 15.5 percent outpaced that of merchandise
exports at 5.2 percent.  Total exports of goods rose to US$12.9
billion from US$12.2 billion a year ago, propelled largely by
higher shipments of: a) manufactured goods (up by US$388 million)
such as electronics, wood manufactures, machinery and transport
equipment, and processed food and beverages; and b) agricultural
products (US$168 million) such as coconut and other agro-based
goods (US$33 million).  Meanwhile, the total import bill reached
US$16.5 billion from the year-ago level of US$14.3 billion,
following higher purchases of goods across all major commodity
groups, notably, mineral fuels and lubricants (up by 43.6 percent)
and consumer goods (62.5 percent), particularly rice.  These
commodities posted increases in both volume and price imports.

b) Services Account

The trade-in-services account posted a surplus of US$183 million
in Q2 2008.  The almost threefold increase from the year-ago
surplus of US$62 million was a result mainly of the combined
effects of: a) higher net receipts from computer and information,
and other business services, particularly, business, professional,
technical and miscellaneous services; and b) lower net outflow in
financial and personal, cultural and recreational services.  These
positive developments more than compensated for the decline in net
inflows from travel, communication and construction services as
well as the increase in net outflows from transportation,
royalties and fees, insurance, and government services

c) Income Account

The income account surplus expanded by 61.7 percent to
US$$414 million.  Underpinning this development were: a) higher
gross earnings of resident overseas Filipino workers (OFWs) which
reached US$1.1 billion, or a year-on-year expansion of 46.8
percent; and b) higher net income receipts from holdings of
foreign debt securities, particularly  by the BSP (amounting to
US$229 million).  The surplus was, however, moderated by interest
payments on private corporate loans.

d)  Current Transfers

Net receipts from current transfers increased by 13.3 percent to
US$3.9 billion from the year-ago level, boosted primarily by the
16.2 percent increase in remittances from non-resident OFs to
US$3.8 billion.  Robust remittance flows were shored up by strong
overseas demand for Filipino workers due to the diversity and
quality of skills they offer.  The level of remittances also drew
strong support from the expanded presence of local banks and non-
bank remittance agents in countries with large concentration of
OFs, as these remittance entities forged stronger partnerships and
ties with foreign counterparts.

Capital and Financial Account

The capital and financial account in Q2 2008 reversed to a net
inflow of US$442 million from a net outflow of US$395 million
posted a year ago.  The significant improvement emanated from the
reversal of the direct investment account to a net inflow, and the
gains in financial derivatives transactions from the losses posted
last year.  These net inflows more than offset the net outflow in
the portfolio investment account.  The net inflow in the other
investment account, meanwhile, slightly increased during the
quarter.

a)  Direct Investments

The direct investment account in Q2 2008 reversed to a net inflow
of US$216 million, recovering from a net outflow of US$2.7 billion
realized in the same period a year ago.  The improvement was
largely on account of lower equity capital placements abroad by
residents (US$77 million) from US$3.3 billion last year.  It may
be noted that in June 2007, a large outflow (US$3.0 billion) was
recorded following a private sector's acquisition of shares of a
foreign power company abroad.  Meanwhile, non-residents'
investments declined to US$293 million from US$545 million in Q2
2007 due mainly to the more than 60 percent contraction in net
equity capital placements (US$334 million).  The investment
environment was weighed down by the generally cautious stance of
foreign investors due to concerns on lingering global financial
market stresses and the downturn in many advanced economies.

b)  Portfolio Investments

Portfolio investments in Q2 2008 reversed to a net outflow of
US$636 million from a net inflow of US$1.7 billion recorded in Q2
2007.  Contributory factors include: a) net withdrawal by non-
residents of their investments in equity securities issued by
private corporations (US$225 million); and b) repayment of bonds
by the National Government (NG) (US$740) million and private
corporations (US$381 million).  These outflows were, however,
mitigated by net inflows of maturing debt securities placements
abroad (US$1.0 billion) by local banks.

c)  Other Investments

The net inflows in other investments increased by 8.8 percent
year-on-year to US$792 million.  Supporting these inflows were the
following: a) inward repatriation of loan placements abroad by
resident offshore banking units (OBUs) (US$202 million); b)
withdrawals of currency and deposits abroad by resident corporates
(US$69 million); c) trade credits extended by non-residents to
private corporations (US$1.1 billion); d) foreign loan availments
by the NG (US$467 million), corporations (US$802 million), and
banks (US$353 million); and e) currency and deposit placements by
non-residents (US$252 million).  Partly offsetting these inflows,
however, were loan repayments of the NG (US$242 million), banks
(US$808 million), and the private sector (US$703 million).

                  January-June 2007 Developments

Current Account

The current account registered a surplus of US$1.7 billion (2.0
percent of GDP), lower by 52.3 percent from the previous year's
surplus of US$3.6 billion.  The decline in the current account
balance reflected mainly the higher deficit in trade-in-goods,
which more than offset the improvements in the current transfers,
services and income accounts.  Net current transfers receipts grew
year-on-year by 9.9 percent, on account of the 12.1 percent rise
in remittances of non-resident OFs, to reach US$7.2 billion in the
first semester of 2008.  The surplus in the services account rose
by more than twofold to US$653 million from US$308 million, due
mainly to higher net receipts from computer and information (from
US$5 million to US$192 million) and other business services (from
US$144 million to US$923 million).  The deficit in the income
account narrowed by 83.3 percent to US$68 million due mainly to
higher gross earnings of resident OFWs, which accelerated by 44.5
percent, to US$2.1 billion.  Meanwhile, the trade-in-goods deficit
widened by more than twofold to reach US$6.4 billion from last
year's deficit of US$3.2 billion.  The higher deficit was due to
the acceleration of import growth to 15.5 percent while exports
growth was more subdued at 4.1 percent.  All major import
commodities grew during the first half of the year, with purchases
of consumer goods and mineral fuels & lubricants posting the
highest growth rates of 58.2 percent and 60.6 percent,
respectively.

Capital and Financial Account

The capital and financial account recorded a sizeable increase in
net inflows, aggregating US$1.2 billion in the first semester of
2008 from US$144 million in the same period in 2007, as net
inflows in both the direct and other investment accounts negated
the net outflows recorded in the portfolio investment account.

a) The direct investment account in the first half of the year
recovered to a US$742 million net inflow, from a US$1.4 billion
net outflow a year ago due mainly to lower residents' equity
capital placements abroad amounting to US$71 million from US$3.3
billion in the comparable semester in 2007.  These were partly
offset by lower net non-resident investment inflows, particularly,
in equity capital (US$487 million).

b) The other investment account recorded a net inflow of US$643
million in the first semester, a turnaround from the net outflow
of US$632 million a year ago.  This resulted from: a) repayment of
loans by non-residents (US$1.5 billion) and withdrawal of currency
and deposit placements (US$266 million) abroad by residents;
b) higher currency and deposit placements of non-residents in
local banks (US$636 million); c) long-term loan availments by
private corporations (US$1.0 billion); and d) loan availments by
local banks (of which US$853 million were of short-term maturity
and US$240 milllion were long-term.  Partly mitigating the impact
of these inflows were the loan repayments made by the NG
(US$571 million), banks (US$808 million)  and private corporations
(US$1.4 billion).

c) The portfolio investment account posted a net outflow of
US$191 million during the semester, a turnaround from the
US$2.3 billion net inflow recorded in the comparable quarter in
2007.  These transactions arose from the a) bond repayments by the
NG (US$740 million) and private sectors (US$660 million) and net
bond repayment by local banks (US$236 million); and b) net
withdrawal by non-residents of equity securities placements with
private companies (US$386 million).  These outflows were cushioned
by maturing debt securities  placements by residents abroad
aggregating US$2.0 billion.



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

MERIDIAN LIFE: Court Enters Wind-Up Order
-----------------------------------------
On September 5, 2008, the High Court of Singapore entered an order
to have Meridian Life International Pte Ltd's operations wound up.

Yin Kum Choy and Mok Wai Seng filed the petition against the
company on September 5, 2008.


MOSTRANS PTE: Faces Oversea-Chinese Banking's Wind-Up Petition
--------------------------------------------------------------
On September 12, 2008, Oversea-Chinese Banking Corporation Limited
filed a petition to have Mostrans Pte Ltd's operations wound up.

The petition will be heard before the High Court of Singapore on
October 10, 2008, at 10:00 a.m.

Mostrans's solicitors are:

          Rajah & Tann LLP
          4 Battery Road
          #26-01 Bank of China Building
          Singapore 049908


PACIFIC SOURCE: Court to Hear Wind-Up Petition on October 3
-----------------------------------------------------------
A petition to have Pacific Source Pte Ltd's operations wound up
will be heard before the High Court of Singapore on October 3,
2008, at 10:00 a.m.

The Petitioner's solicitor is:

          Messrs. Allen & Gledhill LLP
          One Marina Boulevard #28-00
          Singapore 018989


YANCY HOLDINGS: Court Enters Wind-Up Order
------------------------------------------
On September 5, 2008, United Overseas Bank (Malaysia) Bhd filed a
petition to have Yancy Holdings Pte Ltd's operations wound up.

The petition will be heard before the High Court of Singapore on
September 5, 2008.

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



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

* BOND PRICING: For the Week September 15 - September 19, 2008
--------------------------------------------------------------


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

   AUSTRALIA &
   NEW ZEALAND
   -----------
Ainsworth Game Technology Ltd  8.000%  12/31/09     AUD     0.66
A&R Whitcoulls Group           9.500%  12/15/10     NZD    12.00
Allco Hit Ltd                  9.000%  08/17/09     AUD     9.95
Antares Energy                10.000%  10/31/13     AUD     0.76
Babcock & Brown Pty Ltd        8.500%  11/17/09     NZD    43.15
BBI Ntwrks NZ Limited          8.000%  11/30/12     NZD    49.95
Becton Property Group          9.500%  06/30/10     AUD     0.48
Bounty Industries Limited     10.000%  06/30/10     AUD     0.07
Capital Properties NZ Ltd      8.500%  04/15/09     NZD    13.50
Capital Properties NZ Ltd      8.000%  04/15/10     NZD    13.75
Carpal Aluminum               10.000%  03/29/12     AUD    42.00
China Century                 12.000%  09/30/10     AUD     0.90
Cit Group Au Limited           6.000%  03/03/11     NZD    69.60
Djerriwarrh Investments Ltd    6.500%  09/30/09     AUD     4.10
Fletcher Building Ltd          7.550%  03/15/11     NZD     8.90
Fletcher Building Ltd          7.800%  03/15/09     NZD     9.50
GE Cap Australia               6.000%  03/15/09     AUD    67.93
GPT Management                 6.500%  08/22/13     AUD    70.22
Heemskirk Consolidated
  Limited                      8.000%  04/29/11     AUD     2.18
Infrastructure & Utilities     8.500%  09/15/13     NZD    09.90
Jpm Au Enf Nom 1               3.500%  06/30/10     AUD     3.50
Lane Cove Tunnel               6.800%  12/09/15     AUD    60.62
LongReach Group Limited       10.000%  10/31/08     AUD     0.36
Nylex Ltd.                    10.000%  12/08/09     AUD     1.57
Macquarie Bank                 6.500%  05/31/17     AUD    61.14
Marac Finance                 10.500%  07/15/13     NZD     1.00
Metal Storm Ltd               10.000%  09/01/09     AUD     0.11
Minerals Corp                 10.500%  09/30/08     AUD     0.80
Publ & Broad Fin               6.280%  05/06/11     AUD     9.46
Record Funds Management       11.000%  09/01/10     AUD    10.01
Salomon SB Aust                4.250%  02/01/09     AUD     9.24
Speirs Group Ltd.             13.160%  06/30/49     NZD    50.00
South Canterbury              10.430%  12/15/12     NZD     0.99
St. Laurence Prop              9.250%  07/15/01     NZD    63.51
Sun Resources NL              12.000%  06/30/11     AUD     0.50
TrustPower Ltd                 8.300%  12/15/08     NZD     8.50
TrustPower Ltd                 8.500%  09/15/12     NZD     8.80

   CHINA
   -----

China Govt Bond                4.860%  08/10/14    CNY      0.00

   HONG KONG
   ---------

Respacrcs Funding              8.000%  12/29/49    USD     59.00

   INDIA
   -----

Astrazeneca Phar               8.000%  01/11/09    INR     24.11
Hindustan Cons                10.000%  10/25/09    INR     46.68
ICICI Bank                     7.250%  08/29/49    USD     71.68
India Gov't                    6.010%  03/25/28    INR     73.83
India Gov't                    6.130%  06/04/28    INR     74.82
Subex Azure                    2.000%  03/09/12    USD     72.81

   JAPAN
   -----

ES-Con Japan Limited           3.260%  05/10/10     JPY    50.01
Joint Corp                     2.430%  07/27/10     JPY    52.41
Resona Bank                    5.850%  09/29/49     USD    72.69
Shinsei Bank Ltd.              5.625%  12/29/49     GBP    68.07
Sumitomo Mitsui                4.375%  07/29/49     EUR    69.86

   KOREA
   -----
Korea Dev. Bank                7.310%  11/08/21     KRW    44.40
Korea Dev. Bank                7.350%  10/27/21     KRW    44.50
Korea Dev. Bank                7.400%  11/02/21     KRW    44.45
Korea Dev. Bank                7.450%  10/31/21     KRW    44.47
Korea Dev. Bank                8.450%  12/15/26     KRW    70.63
Hynix Semi Inc.                7.875%  06/27/17     USD    70.55
Hynix Semi Inc.                7.875%  06/27/17     USD    58.50
Woori Bank                     6.208%  05/02/37     USD    74.72

   MALAYSIA
   --------
Advance Synergy Berhad         2.000%  01/26/18     MYR     0.04
Aliran Ihsan Resources Bhd     5.000%  11/29/11     MYR     0.90
Berjaya Land Bhd               5.000%  12/30/09     MYR     3.58
Eastern & Orient               8.000%  07/25/11     MYR     0.95
EG Industries                  5.000%  06/16/10     MYR     0.20
Greatpac Holdings              2.000%  12/11/08     MYR     0.15
Huat Lai Resources Bhd         5.000%  03/28/10     MYR     0.32
Insas Berhad                   8.000%  04/19/09     MYR     0.33
Kamdar Group Bhd               3.000%  11/09/09     MYR     0.20
Kretam Holdings Bhd            1.000%  08/10/10     MYR     0.95
Kumpulan Jetson Berhad         5.000%  11/27/12     MYR     0.45
LBS Bina Group Bhd             4.000%  12/31/08     MYR     0.20
Mithril Bhd                    3.000%  04/05/12     MYR     0.54
Mithril Bhd                    8.000%  04/05/09     MYR     0.12
Nam Fatt Corp                  2.000%  06/24/11     MYR     0.24
Pelikan International          3.000%  04/08/10     MYR     1.30
Pilecon Engineering Bhd        5.000%  12/19/11     MYR     0.09
Plus Spv Bhd                   2.000%  06/27/17     MYR    70.13
Plus Spv Bhd                   2.000%  06/27/18     MYR    67.12
Plus Spv Bhd                   2.000%  06/27/19     MYR    63.45
Puncak Niaga Holdings Bhd      2.500%  11/18/16     MYR     0.79
Rhythm Consolidated Berhad     5.000%  12/17/08     MYR     0.06
Rubberex Corporation Berhad    4.000%  08/14/12     MYR     0.60
Syabas                         3.000%  05/18/18     MYR    71.97
Syabas                         3.000%  05/17/19     MYR    69.14
Tenaga Nasional Bhd            3.050%  05/10/09     MYR     0.80
Tradewinds Corp.               2.000%  02/08/12     MYR     0.59
Tradewinds Plantation Berhad   3.000%  02/28/16     MYR     1.20
Wah Seong Corp.                3.000%  05/21/12     MYR     2.21
Wijaya Baru Global Berhad      7.000%  09/17/12     MYR     0.52
YTL Cement Bhd                 4.000%  11/10/15     MYR     1.27

   SINGAPORE
   ---------

Capitaland Ltd.                2.950%  06/20/22     SGD    62.08
Olam International Limited     1.000%  07/03/13     SGD    63.48


   SRI LANKA
   ---------
Sri Lanka Govt                7.500%  08/01/13     LKR     68.86
Sri Lanka Govt                7.500%  11/01/13     LKR     68.12
Sri Lanka Govt                6.850%  04/15/12     LKR     71.83
Sri Lanka Govt                6.850%  10/15/12     LKR     69.50
Sri Lanka Govt                7.000%  10/15/11     LKR     74.84
Sri Lanka Govt                7.000%  10/01/23     LKR     50.78
Sri Lanka Govt                8.500%  07/15/13     LKR     72.11
Sri Lanka Govt                7.500%  08/15/18     LKR     57.87
Sri Lanka Govt                8.500%  02/01/18     LKR     63.20
Sri Lanka Govt                8.500%  07/15/18     LKR     62.68




                         *********

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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