TCRAP_Public/081002.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Thursday, October 2, 2008, Vol. 11, No. 196

                            Headlines

A U S T R A L I A

A.C.N. 091 063 062 PTY: Joint Meeting Set for October 8
APOLLO COMMUNICATIONS: Members and Creditors to Meet on October 9
BETTER LIFE: To Declare Dividend on October 6
BRADLY HOLDINGS: Liquidator to Give Wind-Up Report on October 7
BROWNPORT MANAGEMENT: To Declare Dividend on October 7

E. HALALIKU: To Declare Dividend on October 7
CENTRO NP: Financial Difficulties Cue Moody's to Junk Debt Rating
CITY PACIFIC: Liquidity Prompts Going Concern Doubts
FORTESCUE METALS: Shareholders Approve Capital Raising
NORTH METRO: To Declare Dividend on October 8

NPT CONSTRUCTION: Supreme Court Enters Wind-Up Order
PRO CONTRACTOR: Supreme Court Enters Wind-Up Order
ROHARD HOLDINGS: Members Opt to Liquidate Business
* AUSTRALIA: Contraction Continues in Manufacturing


C H I N A

CHINA LOGISTICS: Skips Losses on US$764,200 Forgiven Debt
FRANKLIN TOWERS: Incurs US$1,593,218 Net Loss in Qtr Ended June 30
HENDRX CORP: Board Appoints Kurt Dalmata as Director
SANLU GROUP: Melamine Suit Seeks CNY150,000 in Damages
WENDY'S INTERNATIONAL: Triarc Merger Cues S&P to Take Rtng Actions


H O N G K O N G

AMERICAN INT'L: Former CEO Seeks to Bid for Firm's Assets
AMERICAN INT'L: To Sell ILFC Unit to Pay Off US$85BB Gov't Loan
COMPACT BUILDING: Court to Hear Wind-Up Petition on October 15
LEHMAN BROTHERS COMM.: Appoints Brough & Middleton as Liquidators
LEHMAN BROTHERS ASIA: Appoints Brough and Middleton as Liquidators

LEHMAN BROTHERS ASIA: Appoints Brough and Middleton as Liquidators
LUEN KEE: Creditors' Proofs of Debt Due on October 13
MATTEL VENDOR: Appoints Philip Brendan Gilligan as Liquidator
PEREGRINE STRATEGIC: Creditors' Proofs of Debt Due on October 17
R & I PROJECT: Appoints Sing and Ming as Liquidators

SENTEX (CHINA): Creditors' Proofs of Debt Due on October 27
SHIMAO PROPERTY: S&P Cuts Corporate Credit Rating to BB From BB+
VENLINT HOLDINGS: Members to Receive Wind-Up Report on October 27


I N D I A

DRISH SHOES: CRISIL Rates Rs. 70 Mil. Facilities at 'BB+'
MEHALA MACHINES: CRISIL Rates Rs. 165 Mil. Facilities at 'BB+'


I N D O N E S I A

BANK MANDIRI: Government Supports Proposal to Acquire Indover
KERTAS KRAFT: To Shut Down if Unable to Secure Raw Materials
MOBILE-8 TELECOM: Moody's Lowers CFR to Caa1; Outlook Negative
PERUM PERUSAHAAN: May Halt Operations Due to Losses
PT SEMEN KUPANG: Likely to Close Down Due to Losses


J A P A N

DELPHI CORP: Says Agreements with Unions Fortifies Bankruptcy Exit
FORD MOTOR: May Repay US$1.5 Billion Debt Due October 1
LEHMAN BROTHERS: European Co-CEO to Leave After Nomura Takeover
NOMURA: To Match Lehman's 2007 Asian Bonus to Retain Employees
NOMURA HOLDINGS: Hires Takumi Shibata to Head Lehman Integration

XERIUM TECHNOLOGIES: S&P Lifts Rating to 'B-'; Outlook Stable
SANYO ELECTRIC: To Close Korean Plant to Help Ailing Business
* JAPAN: REITs Credit Quality Stable Amidst Crunch, S&P Reports
* JAPAN: S&P Updates Review on Cashing and Consumer ABS Loans


M A L A Y S I A

LUSTER INDUSTRIES: Appoints Chim as Chairman of Audit Committee
WELLI MULTI: CCM Approves Application for Time Extension


N E W  Z E A L A N D

AIR NEW ZEALAND: Passengers Number Falls 1.8% in August
BEAUTY ON: J.M. Gilbert Appointed as Liquidator
BOTB SOUTH: Wind-Up Petition Hearing Set for November 21
D'CLADDINGMAN LTD: Liquidators Set November 27 as Claims Bar Date
KWALITY CONSTRUCTION: Proofs of Debt on November 27

LAWN RENOVATORS: Commences Liquidation Proceedings
METROPOLITAN FUNERAL: Proofs of Debt on November 27
MVS LIMOUSINES: Commences Liquidation Proceedings
POLLY PECK: Placed Under Liquidation
SOUTH HEAD: Commences Liquidation Proceedings

TWA LIMITED: Parsons and Kenealy Appointed as Liquidators


P H I L I P P I N E S

* PHILLIPPINES: Foreign Debt Increases to US$54.8BB as of End-June


S I N G A P O R E

UNITED TEST: S&P Places B+/BB- Ratings on CreditWatch Negative


T A I W A N

* TAIWAN: Domestic Economy Remains Sound, Pres. Ma Ying-Jeou Says


X X X X X X X X

* Asian Stocks Drop After Senate Passes US$700BB Bail-Out Plan
* Only China Capable of Supporting Growth In Asia, S&P Reports


                         - - - - -


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

A.C.N. 091 063 062 PTY: Joint Meeting Set for October 8
-------------------------------------------------------
A.C.N. 091 063 062 Pty Limited fka Amalgamated Metropolitan
Security will hold a meeting for its members and creditors at
10:00 a.m. on Oct. 8, 2008.  During the meeting, the company's
liquidator, Hugh Martin, will provide the attendees with property
disposal and winding-up reports.

The liquidator can be reached at:

         Bernardi Martin
         Level 1, 195 Victoria Square
         Adelaide


APOLLO COMMUNICATIONS: Members and Creditors to Meet on October 9
-----------------------------------------------------------------
Apollo Communications Pty Ltd will hold a meeting for its members
and creditors at 9:00 a.m. on Oct. 9, 2008.  During the meeting,
the company's liquidator, Michael Peldan, will provide the
attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          Michael Peldan
          Worrells, 8th Floor
          102 Adelaide Street
          Brisbane Qld 4000
          Website: www.worrells.net.au


BETTER LIFE: To Declare Dividend on October 6
---------------------------------------------
Better Life Sofas Pty Ltd will declare dividend on Oct. 6, 2008.

Creditors who were unable to prove their debts on Sept. 23, 2008,
are excluded from the dividend distribution.

The company's liquidator is:

          Robert Colin Parker
          Freer Parker & Associates
          PO Box 6238, Halifax Street
          Adelaide SA 5000
          Telephone: (08) 8211 7177
          Facsimile: (08) 8212 4677
          Email: insolvency@freerparker.com.au


BRADLY HOLDINGS: Liquidator to Give Wind-Up Report on October 7
---------------------------------------------------------------
Dino Travaglini, Bradly Holdings Pty Ltd's appointed estate
liquidator, will meet with the company's members on
Oct. 7, 2008, at 10:00 a.m. to provide them with property disposal
and winding-up reports.

The liquidator can be reached at:

          Dino Travaglini
          Moore Stephens
          Level 3, 12 St Georges Terrace
          Perth WA 6000
          Telephone: (08) 9225 5355


BROWNPORT MANAGEMENT: To Declare Dividend on October 7
------------------------------------------------------
Brownport Management Limited, which is subject to Deed of Company
Arrangement, will declare dividend on Oct. 7, 2008.

Creditors who were unable to prove their debts on Sept. 23, 2008,
are excluded from the dividend distribution.

The company's deed administrator is:

         Richard L. Cauchi
         CJL Partners
         Level 3, 180 Flinders Lane
         Melbourne VIC 3000
         Telephone: (03) 9639 4779
         Facsimile: (03) 9639 4773


E. HALALIKU: To Declare Dividend on October 7
---------------------------------------------
E. Halaliku Pty Ltd will declare dividend on Oct. 7, 2008.

Creditors who were unable to prove their debts on Sept. 23, 2008,
are excluded from the dividend distribution.

The company's liquidator is:

          G. M. Rambaldi
          Pitcher Partners
          Level 19, 15 William Street
          Melbourne VIC 3000


CENTRO NP: Financial Difficulties Cue Moody's to Junk Debt Rating
-----------------------------------------------------------------
Moody's Investors Service downgraded the senior unsecured debt
ratings of Centro NP LLC (formerly New Plan Excel Realty Trust,
Inc.) to Caa1, from B3.  Although the company announced that its
lenders extended its September 30, 2008 refinancing deadline for
US debt to be coterminous with the Australian deadline of Dec. 15,
the inability to complete portfolio sales and the material decline
in capital market liquidity continues to pressure the rating.  The
ratings are under review for possible downgrade.

These ratings actions reflect the financial difficulties and
uncertainty Centro NP's parent (Super LLC) is facing in
refinancing its own bridge debt in addition to Centro NP's
currently outstanding US$307 million revolving line of credit.
Moody's also expects that Centro NP LLC will have heightened
leverage and secured debt following the take-out of the bridge
financing, significant property sales to fund debt, and a
reduction in transparency due to increased organizational
complexity.

Moody's review will focus on the final capital structure and
strategic profile of the company in light of Centro NP's and
Centro Properties Group's short-term pressure to refinance debt.
Moody's will continue to monitor Centro NP's compliance with its
bond covenants and the quality and composition of its portfolio as
it works though these financings.  The maturity date of both the
bridge facility and the line of credit is December 15, 2008.

Moody's acknowledges that Centro NP has a defensive portfolio that
may afford opportunities for asset sales or financing to pay off
debt.  Since the acquisition, Centro NP's parent's bridge loan has
been reduced to approximately US$1.9 billion due to a US$300
million CMBS issuance and the conversion of US$400 million to a
one-year term loan.  Centro Properties Group is operating its US
community and neighborhood shopping center portfolio from Centro
NP's New York City headquarters, utilizing New Plan's nationwide
operating infrastructure and staff as its base.

A confirmation of the Caa1 rating with a stable outlook would be
contingent upon Centro NP refinancing by the December 15, 2008
deadline without materially pressuring their leverage, secured
debt, and other credit metrics, while complying with bond
covenants.  Moody's stated that the adoption of a viable plan to
refinance/restructure Centro Property Group's debt will be a
positive.  A downgrade would most likely reflect further
extensions for Centro NP to refinance its line or Centro
Properties Group to refinance its debt, no viable plan to
refinance/restructure Centro NP's and Centro Property Group's
debt, noncompliance with bond covenants at the Centro NP level,
acceleration of bond payments, a firesale of assets, or a
bankruptcy filing.

These ratings were lowered to Caa1, and are under review for
possible downgrade:

* Centro NP LLC -- Senior unsecured debt to Caa1, from B3;
   medium-term notes to Caa1, from B3.

Centro NP LLC, headquartered in New York City, owns and operates
community and neighborhood shopping centers.  The company had
assets of US$4.5 billion and equity of US$2.3 billion at June 30,
2008.

Centro Properties Group (AXP: CNP), headquartered in Melbourne,
Victoria, Australia, is an Australian Listed Property Trust that
specializes in the ownership, management and development of retail
shopping centers in Australia, New Zealand and the USA.  The
company has AUS$22.6 billion in assets under management.


CITY PACIFIC: Liquidity Prompts Going Concern Doubts
----------------------------------------------------
City Pacific Limited's auditor, KMPG, has cast significant doubt
about the company's ability to continue as a going concern.

The company has stated in its financial statements that it is
dependent upon realising sufficient cash funding from the sales
and settlement of assets and the repayment of mortgage loans to
repay outstanding finance facilities and to meet other outstanding
payment obligations, or enter into other suitable payment
arrangements with the financier, or obtain suitable funding from
alternative sources, continuing to derive management fees from
operating as a Responsible Entity, and generate sufficient cash
flow from ongoing business operations to meet operating cash flow
requirements.

The auditors stated that the recoverability of the company's
receivables from and investments in CP1 Limited and its controlled
entities is dependent upon CP1 Limited continuing as a going
concern.  To continue as a going concern CP1 Limited and its
controlled entities must come to appropriate arrangements with its
financier and realise sufficient funds from the sale of assets to
meet its debt obligations.

The auditor said the existence of these uncertainties may cast
significant doubt about the recoverability of the company's loans
to, and investments in, CP1 Limited and its controlled entities
which total AU$56.5 million.

                       Board Appointments

City Pacific said that John Michael Ellis and Phillip Graeme
Downie have joined the company's Board.

John Michael Ellis LL.B joins the Board as a Non-Executive
Director.  Mr. Ellis holds a Bachelor of Laws from Queensland
University of Technology.  He has been a practising lawyer for
over 20 years and has been a partner at the leading Gold Coast law
firm, Minter Ellison, since 1998.  Mr Ellis' key areas of practice
are in property and development.  During his time practising in
those areas he has been a legal adviser to City Pacific Ltd and
its related entities.  He is a member of the Executive Committee
of the Urban Development Institute of Australia (Gold Coast)
Branch and is also a long-serving member of the UDIA's
Communications and Legislation Committee.  Mr. Ellis has
represented the development industry at diverse levels, including
appointments to a range of advisory and industry groups providing
input on policy-making and legislation at the Local, State and
Federal Government levels.

Philip Graeme Downie FCA joins the Board as an Independent Non-
Executive Director.  Mr. Downie is a Fellow of the Institute of
Chartered Accountants who maintains an involvement with
professional practice as a specialist consultant in his field of
expertise.  His professional background includes twenty-five years
in practice specializing in the field of business insolvency and
includes twelve years as a partner/consultant to the former
Coopers and Lybrand.  He was Chairman of the Brisbane Lions
Football Club Ltd for six years and served over fifteen years on
the Board of that Club.

The Board said it recognizes the extensive experience and
knowledge that both Messrs. Downie and Ellis bring to the company.
Their appointments will further diversify the skill set of the
Board and their fields of expertise will be of significant benefit
to the operations of City Pacific.

                    About City Pacific

City Pacific Limited (ASX: CIY) -- http://www.citypac.com.au/
-- is a diversified financial services company, providing
finance and investment products.

City Pacific, a non-bank loan provider, has AU$5 billion
in mortgage assets under advice, comprising over AU$1 billion
funds under management in the City Pacific First Mortgage
Fund, City Pacific Income Fund, City Pacific Managed Fund
and City Pacific Private Fund, a residential loan book of
AU$3.3 billion and commercial mortgage assets under
management of approximately AU$800 million.  City Pacific
originates nearly AU$3 billion per annum in loans to fund
residential property, property development, commercial
property investment, plant & equipment and business
finance.

                         *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 18, 2008, City Pacific Limited said it took the necessary
steps to preserve the value of the Fund's assets and protect
unitholders investments in light of the rapidly changing market
conditions.

As a result of the significant market changes City Pacific made
the decision, in March 2008, to defer the payment of redemptions
from the Fund whilst continuing the payment of distributions to
unitholders.

City Pacific said that due to the continued market volatility
and the possible impact it may have on the value of the Fund's
assets, it is anticipated that certain adjustments will be
necessary.  Management's review, in consultation with the Fund's
auditors, indicates that an accounting provision of
approximately 5% of the Fund's mortgage loan portfolio may be
necessary.

City Pacific reported a net loss after tax of AU$139.53 million
for the financial year ended June 30, 2008, compared with a net
profit of AU$73.21 million in the previous year.  The company also
reported an operating profit before impairment and tax of AU$55.5
million down 58.4% from previous year's operating profit of
AU$133.42 million.


FORTESCUE METALS: Shareholders Approve Capital Raising
------------------------------------------------------
Fortescue Metals Group's shareholders voted on the amendment to
the company's constitution during its extraordinary general
meeting held yesterday, Oct. 1, 2008, in Perth, Western Australia.

Following approval, Fortescue said it will proceed with the
processing of the subscription for AU$140 million in preference
shares.

The key terms of these preference shares are:

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

   -- Term of 8.5 years;

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

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

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

                     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.


NORTH METRO: To Declare Dividend on October 8
----------------------------------------------
North Metro Conservation Group Inc. will declare dividend on
Oct. 8, 2008.

Creditors who were unable to prove their debts on Sept. 23, 2008,
are excluded from the dividend distribution.

The company's liquidator is:

          Jack James
          KordaMentha
          Level 11
          37 St George's Terrace


NPT CONSTRUCTION: Supreme Court Enters Wind-Up Order
-----------------------------------------------------
On Aug. 8, 2008, the Supreme Court of New South Wales entered an
order to have NPT Construction Pty Limited's operations wound up.
Frank Lo Pilato was appointed as liquidator.

The liquidator can be reached at:

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


PRO CONTRACTOR: Supreme Court Enters Wind-Up Order
--------------------------------------------------
On Aug. 8, 2008, the Supreme Court of New South Wales entered an
order to have Pro Contractor Group Pty Limited's operations wound
up.  Frank Lo Pilato was appointed as liquidator.

The liquidator can be reached at:

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


ROHARD HOLDINGS: Members Opt to Liquidate Business
--------------------------------------------------
Rohard Holdings Pty Limited's members agreed on Aug. 20, 2008, to
voluntarily liquidate the company's business.  Frank Lo Pilato was
appointed to facilitate the sale of its assets.

The liquidator can be reached at:

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


* AUSTRALIA: Contraction Continues in Manufacturing
---------------------------------------------------
The Australian Industry Group - PricewaterhouseCoopers Australian
Performance of Manufacturing Index (Australian PMI(R)) was
relatively stable in September, up by 0.2 points to 47.2 and
remaining below the key 50.0 level separating expansion from
contraction.

Australian Industry Group Chief Executive, Heather Ridout, said
"The Australian PMI(R) was stagnant in September, reflecting the
softening of consumer demand in Australia and the weakness of the
world economy, particularly in the United States, Europe, and our
largest export market, Japan.  Signs of weaker growth in China are
compounding the deterioration.

"The ongoing decline in new orders reported in the Australian
PMI(R) suggests that the weakness in manufacturing is likely to
persist, particularly with employment growth showing signs of
losing momentum.

"In these conditions a further reduction in official interest
rates would be a welcome move by the Reserve Bank," Mrs. Ridout
said.

PricewaterhouseCoopers Global Leader of Industrial Manufacturing,
Graeme Billings, said manufacturing remains trapped between the
pincers of declining new orders and rising costs.

"Given the continuing uncertainties in the world economic outlook
and its likely flow-on through to manufacturers' international and
domestic markets, these pressures on profitability are unlikely to
ease over the next few quarters, notwithstanding some easing in
the costs of fuel.  In the absence of any short-term improvement
in the economic outlook, businesses need to continue with
stringent cost management and to maintain a focus on building
long-term profitability through broadening of market and product
scope, deepening global supply chains and strengthening their
skills bases," Mr. Billings said.

Australian PMI(R) key findings for September:

    -- Manufacturing activity fell for a fourth successive
       month in September.


   -- Driving this month's result are the lagged effects of
      higher official and commercial interest rates continuing
      to squeeze consumer and housing-related demand. In
      addition, slower trading partner growth has compounded
      the impact of the high exchange rate on demand for
      Australian manufactures in both domestic and overseas
      markets.

   -- Production fell again in September, though at a slightly
      slower rate than in August, in line with continued
      declines in new orders.

   -- Input and wages costs grew strongly again in September,
      while selling price growth eased mildly, with the net
      effect a compression of profit margins.


   -- Employment fell for a seventh consecutive month.

   -- Inventories rose marginally and supplier deliveries
      fell slightly.  Exports rose solidly.

   -- Manufacturers continued to cite positive effects on
      activity from mining related demand. Key negatives
      were: weak domestic demand; global instability; the
      soft housing sector; raw material costs; staff turnover;
      and import competition.

   -- Activity fell in all states except Western Australia.



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

CHINA LOGISTICS: Skips Losses on US$764,200 Forgiven Debt
---------------------------------------------------------
China Logistics Group Inc.'s revenues for the second quarter 2008
totaled approximately US$8,020,000, an 18% increase over the first
quarter of 2008, due in part to an expansion in operations funded
by the company's 2008 Unit Offering completed in April 2008 with
net proceeds of approximately US$3,360,000.

Cost of sales for the three month and six month periods ended
June 30, 2008 totaled approximately US$7,562,001 and approximately
US$14,077,731 respectively, remaining relatively stable between
the periods as a percentage of related revenues.  Gross profits
totaled 5.7% and 4.8% for the quarter and six month ended June 30,
2008.

Operating expenses, consisting primarily of selling, general and
administrative expense and depreciation and amortization expense
totaled approximately US$386,000 and US$989,000 for the three
months and six months periods ended June 30, 2008 compared to
approximately US$267,000 and US$878,000 for the comparable periods
in 2007.

China Logistics reported net income of US$656,805 and US$516,049
for the three months and six months ended June 30, 2008,
respectively.  The company said it would have recognized losses of
approximately US$128,000 and US$650,000 for the three months and
six months ended June 30, 2008, respectively, if not for
approximately US$764,200 in forgiven debts and US$402,000 in
recovery of bad debts.

                    Liquidity and Capital Resources

At June 30, 2008, the company had cash on-hand of approximately
US$3,436,000 and working capital of approximately US$4,167,802 as
compared to cash on hand of US$1,121,605 and a working capital
deficit of US$10,936,577 at December 31, 2007.

This significant increase in working capital was attributable
primarily to:

   (1) the completion of the company's private placement of
       units consisting of common shares and warrants
       completed in April 2008 with net proceeds of
       approximately US$3.3 million; and

   (2) the issuance of 450,000 shares of Series B
       convertible preferred stock having a fair value
       of approximately US$3,780,000, previously reflected
       as a current liability.

                       Going Concern Doubt

Citing a report of its independent auditor Sherb & Co., LLP, in
Boca Raton, Florida, on the company's Dec. 31, 2007 consolidated
financial statements, China Logistics said its recurring losses
from operations, net working capital deficiency and accumulated
deficit raise substantial doubt about its ability to continue as a
going concern.

For the three months ended June 30, 2008, China Logistics reported
an operating income of US$70,870 compared to an operating loss of
US$267,253 for the same period last year.  For the six months
ended June 30, 2008, the company incurred an operating loss of
US$274,306 compared to an operating loss of US$878,446 in the
comparable period last year.

The company's balance sheet as of June 30, 2008, showed total
assets of US$10,754,598, total liabilities of US$4,167,127 and
total stockholders' equity of US$6,587,471.  As of Dec. 31, 2007,
the company had US$7,747,095 in total stockholders' deficit.

Accumulated deficit as of June 30, 2008 stood at US$28,019,562
while accumulated deficit as of Dec. 31, 2007 was US$28,535,611.

                      About China Logistics

China Logistics Group Inc. (OTC BB: CHLO) through its
subsidiary, Shandong Jiajia International Freight & Forwarding
Co. Ltd., operates as a non-asset based international freight
forwarder and logistics management company in the People's
Republic of China.  The company was founded in 1997 and is based
in Fort Lauderdale, Florida.


FRANKLIN TOWERS: Incurs US$1,593,218 Net Loss in Qtr Ended June 30
------------------------------------------------------------------
Franklin Towers Enterprises Inc. incurred a net loss of
US$1,593,218 on net sales of US$1,124,478 for the three months
ended June 30, 2008, compared to a net loss of US$29,247 on US$0
net sales in the same period last year.

For the six months ended June 30, 2008, the company incurred a net
loss of US$3,134,878 on net sales of US$2,450,138 compared to a
net loss of US$76,317 on US$0 net sales in the six months ended
June 30, 2007.

Franklin Towers' balance sheet as of June 30, 2008, showed total
assets of US$4,473,368, total liabilities of US$3,684,219 and
total stockholders' equity of US$789,149.

The company's balance sheet at June 30, 2008, showed working
capital shortage of US$500,450 resulting from US$3,049,116 in
total current assets available to pay US$3,549,566 in total
current liabilities.

                  Liquidity and Capital Resources

Franklin Towers' gross margin rate during the second quarter of
2008 increased to 2.4% from 0.8% during the first quarter of 2008
resulting from the slow recovery of the silk price.  The average
selling price increased 4.75% to 154.70 Yuan per kilogram during
the second quarter, up from 147.68 Yuan per kilogram during the
first quarter of 2008.  As of June 30, 2008, the company had
US$298,702 in cash and cash equivalents.  During the six months
ended June 30, 2008, the company received US$909,256 in cash from
its major shareholder and borrowed US$1,394,960 from third parties
to cover operational needs.

                        Going Concern Doubt

Franklin Towers' management expressed substantial doubt about the
company's ability to continue as going concern citing, among
others:

   -- negative cash flow from operations since
      December 15, 2006 (date of inception) and
      accumulated deficit of US$14,642,974
      at June 30, 2008.

   -- very low gross margin rate (2.4% and 1.5%
      for the three and six months ended
      June 30, 2008, respectively).

                           Loan Default

On June 30, 2008, Professional Offshore Opportunity Fund Ltd.
("POOF") filed a motion for default judgment against the company.
On April 21, 2008, the Plaintiff initiated the action in the
United States District Court Southern District of New York, on a
claim of breach of contract and non payment on a promissory note
dated Sept. 12, 2008, made by the company in favor of POOF, in the
principal amount of US$500,000.  POOF claimed approximately
US$671,000 in total relief, which amount includes a 15% principal
charge of US$75,000, accrued interest of US$48,125, and liquidated
damages of US$37,000.  Franklin Towers said it is in the process
of retaining an attorney to defend this litigation.  The company
meanwhile warned that any adverse outcome of this litigation could
materially harm its financial condition and could cause it to
cease operations.

                       About Franklin Towers

Headquartered in Fulin, Chongqing, China, Franklin Towers
Enterprises Inc. was incorporated on March 23, 2006 under the laws
of the State of Nevada.  Franklin Towers originally intended to
engage in the manufacture, processing and distribution of frozen
Pan Asian food.

Follwing its acquisition of Chongqing Qiluo Textile Co. Ltd. on
June 19, 2007, Franklin Towers diversified into manufacturing and
sale of silk and silk products.  The company started its test
production at the end of June 2007 and commenced operations from
the third quarter of 2007.


HENDRX CORP: Board Appoints Kurt Dalmata as Director
----------------------------------------------------
Effective Sept. 8, 2008, the board of directors of Hendrx Corp.
appointed Kurt Dalmata to the company's board of directors to
serve until the next annual meeting of the Company's shareholders.

Mr. Dalmata has been engaged as an independent consultant for over
ten years, based in Zurich, Switzerland, he specializes in mergers
and acquisitions, corporate finance, private equity, and project
management.  Prior to his current occupation, he was the Executive
VP of Finance of the Siber Hegner Group, an international trading
house with 1,700 employees. Prior to that he was an Associate
Director of what was then UBS (Securities) Ltd., the London-based
investment bank of UBS. He has over thirty years of experience
working in various capacities in the banking and corporate
sectors.

Mr. Dalmata obtained a Doctorate in Law from Vienna University in
1974 and an MBA from INSEAD, Fontainebleau, France, in 1976.

Mr. Dalmata also serves as (i) an officer (September of 2008 to
present) and director (April of 2008 to present) of Newtech
Resources, Inc., an OTC:BB quoted company without operations, (ii)
an officer (September of 2008 to present) and director (April of
2008 to present) of ASP Ventures Corp., an OTC:BB quoted company
without operations, (iii) an officer (September of 2008 to
present) and director (April of 2008 to present) of Enwin
Resources, Inc., an OTC:BB quoted company without operations, and
(iv) an officer and director (September 2008 to present) of High
End Ventures, Inc., an OTC: BB quoted company without operations.

Mr. Dalmata also acts as the managing director of First Capital
Invest Corp., which entity has advanced loans to the Company
within the past two years.

"The appointment of Mr. Dalmata to the Company's board of
directors was not based on any prior understanding or arrangement.
The company has not at this time determined if Mr. Dalmata will
serve on any standing committee," Chief Executive Officer George
Solymar said.

                       About Hendrx Corp.

Headquartered in Vancouver, British Columbia, Hendrx Corp. (OTC
BB: HDRX.OB) through its wholly owned subsidiary, Eastway Global
Investment Limited, manufactures and distribute water dispenser
systems.  On Dec. 16, 2008, the company acquired 100% of the
issued shares of Eastway Global Investment Limited, which included
Eastway's wholly-owned operating subsidiary, Fujian Yuxin
Electronic Equipment Co., Ltd.  Yuxin was incorporated under the
laws of People's Republic of China on Feb. 18, 1993.  The
principal business of Yuxin is to manufacture and distribute water
dispenser systems.

                      Going Concern Doubt

The company has a working capital deficiency of US$2,954,216 at
June 30, 2008, and a net loss of US$1,194,648 for the six months
then ended.  "The company might not have sufficient working
capital for the next twelve months and is dependent on financing
to continue operation.  These factors create substantial doubt as
to the ability of the company to continue as a going concern,"
George Solymar, the company's chief executive officer, chief
financial officer, and principal accounting officer, remarked in
Hendrx's Form 10-Q filed on Aug. 19, 2008.

At June 30, 2008, the company's consolidated balance sheet showed
US$18,389,485 in total assets, US$7,392,124 in total liabilities,
and US$10,997,361 in total stockholders' equity.  The company's
consolidated balance sheet at June 30, 2008, also showed strained
liquidity with US$3,212,588 in total current assets available to
pay US$6,166,804 in total current liabilities.



SANLU GROUP: Melamine Suit Seeks CNY150,000 in Damages
------------------------------------------------------
Sanlu Group Co. is facing a CNY150,000 (US$21,913) lawsuit from
the parents of a one-year-old boy sickened by a melamine-tainted
milk powder, Luo Jun of Bloomberg News reports, citing Beijing
Youth Daily.

On September 25, 2008, the Troubled Company Reporter-Asia Pacific
reported that the number of children in China affected by
melamine-contaminated milk has reached 53,000, with Sanlu's
products found to contain the highest levels of the chemical.
Melamine is used to make plastics and fertilizer, and can cause
kidney stones and lead to kidney failure when consumed.

According to Agence France-Presse, the victim's lawyer Ji Cheng, a
partner from the Deheng Law Office in Beijing, recently filed the
suit against Sanlu Group at the Zhenping County Court in central
China's Henan province.  "We handed over all the documents to the
court, and now we're waiting for a reply," he said.

Bloomberg News relates that the boy was found to have kidney
stones after he drank more than 100 bags of Sanlu's milk powder
since he was born in July 2007 in Henan province.

Mr. Cheng said: "I believe the figure of CNY150,000 is
reasonable," citing the medical costs paid by the parents in the
weeks since their child was admitted to hospital for emergency
treatment, AFP notes.

                        About Sanlu Group

Sanlu Group is a Chinese dairy products company based in
Shijiazhuang, the capital city of Hebei Province.  The state-owned
company is one of the oldest and most popular brands of infant
formula in China.


WENDY'S INTERNATIONAL: Triarc Merger Cues S&P to Take Rtng Actions
------------------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions as
a result of the consummation of the merger between Triarc Cos.
Inc. and Wendy's International Inc.  The new entity will be called
Wendy's/Arby's Restaurant Group Inc.

The rating actions are:

S&P assigned Wendy's/Arby's a 'B+' corporate credit rating.

The outlook is stable.

S&P lowered the corporate credit rating on Wendy's one notch to
'B+' from 'BB-' and removed all ratings on Wendy's from
CreditWatch with negative implications, where they were placed on
April 26, 2007.  The outlook is stable.

S&P assigned a '4' recovery rating to the company's senior
unsecured notes.  The '4' recovery rating indicates its
expectation of average (30%-50%) recovery in the event of default
and also dictates that the senior unsecured issue rating be un-
notched from the corporate credit rating.  Consequently, S&P
lowered the senior unsecured rating and issue-level rating on
those notes to 'B+' from 'BB-'.

S&P removed the ratings on Arby's Restaurant Group Inc., a
subsidiary of Wendy's/Arby's, from CreditWatch with developing
implications, where they were placed on April 22, 2008, and
affirmed the 'B+' corporate credit rating on Arby's.  The outlook
is stable.

S&P revised the recovery rating on Arby's senior secured credit
facility to a '2' from a '1'.  The '2' recovery rating indicates
S&P's expectation of substantial (70%-90%) recovery in the event
of default.  As a result of the revised recovery rating, S&P
lowered the issue-level rating of Arby's senior secured credit
facility one notch to 'BB-' from 'BB'.

"The stable outlook reflects our expectation that Wendy's/Arby's
will maintain appropriate credit metrics for the rating category
and liquidity despite Arby's narrow covenant cushion," said
Standard & Poor's credit analyst Charles Pinson-Rose.



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

AMERICAN INT'L: Former CEO Seeks to Bid for Firm's Assets
---------------------------------------------------------
Liam Pleven at The Wall Street Journal reports that Maurice R.
Greenberg, the former American International Group Inc. CEO, has
asked AIG's current CEO Edward Liddy for a chance to bid on any
assets the company will sell.

AIG plans to sell assets to pay off the up to US$85 billion
government loan.  WSJ relates that Mr. Greenberg sent a letter to
Mr. Liddy saying, "I now understand that the company has begun to
liquidate itself by selling assets in privately negotiated
transactions without transparency and without providing the
opportunity for the participation of alternative purchasers.  I
want to formally request an opportunity to submit an offer on any
assets that the company intends to sell."

"We are open to all reasonable expressions of interest in the
assets we plan to sell," WSJ quoted an AIG spokesperson as saying.

Based in New York City, American International Group Inc. --
http://www.aig.com/-- (NYSE: AIG) is an international insurance
and financial services organization, with operations in more than
130 countries and jurisdictions.  The company is engaged through
subsidiaries in General Insurance, Life Insurance & Retirement
Services, Financial Services and Asset Management.

The company's British headquarters are located on Fenchurch Street
in London, continental Europe operations are based in La Defense,
Paris, and its Asian HQ is in Hong Kong.  AIG owns Ocean Finance,
a United Kingdom based company providing home owner loans,
mortgages and remortgages.  AIG operates in the UK with the brands
AIG UK, AIG Life and AIG Direct.  It has about 3,000 employees,
and sponsors the Manchester United football club.  In response to
redemption demands, AIG Life (UK) suspended redemptions of its AIG
Premier Bond money market fund on Sept. 19, 2008, in order to
provide an orderly withdrawal of assets.

              US$85,000,000,000 Federal Reserve Loan

The Federal Reserve Bank of New York extended to AIG a revolving
credit facility up to US$85 billion.  AIG's borrowings under the
revolving credit facility will bear interest, for each day, at a
rate per annum equal to three-month Libor plus 8.50%.  The
revolving credit facility will have a 24-month term and will be
secured by a pledge of assets of AIG and various subsidiaries.

The Credit Facility provides for a 79.9% equity interest in AIG.
The Credit Facility provides for an initial gross commitment fee
of 2% of the total Credit Facility on the closing date.  AIG, in a
regulatory filing with the Securities and Exchange Commission,
said it will pay a commitment fee on undrawn amounts at the rate
of 8.5% per annum.  Interest and the commitment fees are generally
payable through an increase in the outstanding balance under the
Credit Facility.  Borrowings under the Credit Facility are
conditioned on the NY Fed being reasonably satisfied with, among
other things, AIG's corporate governance.

AIG is required to repay the Credit Facility from, among other
things, the proceeds of certain asset sales and issuances of debt
or equity securities. These mandatory repayments permanently
reduce the amount available to be borrowed under the Credit
Facility.

The Credit Facility contains customary affirmative and negative
covenants, including a requirement to maintain a minimum amount of
liquidity and a requirement to use reasonable efforts to cause the
composition of the Board of Directors of AIG to be satisfactory to
the trust within 10 days after the establishment of the trust.

Under the agreement, AIG will issue a new series of perpetual,
non-redeemable Convertible Participating Serial Preferred Stock to
a trust that will hold the Preferred Stock for the benefit of the
United States Treasury.

The Preferred Stock will, from issuance:

  -- be entitled to participate in any dividends paid on the
     common stock, with the payments attributable to the
     Preferred Stock being approximately, but not in excess
     of, 79.9% of the aggregate dividends paid on AIG's common
     stock, treating the Preferred Stock as if converted; and

  -- vote with AIG's common stock on all matters submitted to
     AIG's shareholders, and will hold approximately, but not
     in excess of, 79.9% of the aggregate voting power of the
     common stock, treating the Preferred Stock as if converted.

The Preferred Stock will remain outstanding even if the Credit
Facility is repaid in full or otherwise terminates.

Pursuant to the Credit Facility, AIG is required to hold a special
shareholders meeting to amend its restated certificate of
incorporation to increase its share capitalization and to lower
the par value of its common stock to permit the conversion of the
Preferred Stock into common stock.  Once this amendment is
effective, the Preferred Stock will be convertible at any
time into 79.9% of the shares of common stock outstanding at the
time of issuance.

AIG is required to enter into a customary registration rights
agreement that will permit the NY Fed to require AIG to register
the Preferred Stock and the underlying common stock under the
Securities Act of 1933.

The Credit Facility will be secured by a pledge of the capital
stock and assets of certain of AIG's subsidiaries, subject to
exclusions for certain property the pledge of which is not
permitted by AIG debt instruments, as well as exclusions of assets
of regulated subsidiaries, assets of foreign subsidiaries and
assets of special purpose vehicles.

Copy of the Credit Agreement is available free of charge at:

              http://researcharchives.com/t/s?331e

Copy of the Pledge Agreement is available free of charge at:

              http://researcharchives.com/t/s?331f

In a statement, the company said "AIG is a solid company with over
US$1 trillion in assets and substantial equity, but it has been
recently experiencing serious liquidity issues."

Standard & Poor's Ratings Services has revised the CreditWatch
status of most of its ratings on the AIG group of companies --
including its 'A-' long-term counterparty credit ratings on
American International Group Inc. and International Lease Finance
Corp. and the 'A+' counterparty credit and financial strength
ratings on most of AIG's insurance operating subsidiaries -- to
CreditWatch developing from CreditWatch negative.

Fitch Ratings revised its Rating Watch on American International
Group, Inc. to Evolving from Negative.  Fitch viewed this
transaction as a favorable development that alleviates significant
near-term liquidity concerns.

The Troubled Company Reporter reported on Sept. 19, 2008 that that
Edward Liddy replaced Robert Willumstad as AIG's CEO.

                    *     *     *

In a U.S. Securities and Exchange Commission filing dated
Aug. 6, 2008, AIG reported a net loss for the second quarter of
2008 of US$5.36 billion compared to 2007 second quarter net income
of US$4.28 billion.  Second quarter 2008 adjusted net loss was
US$1.32 billion, compared to adjusted net income of US$4.63
billion for the second quarter of 2007.  The continuation of the
weak U.S. Housing market and disruption in the credit markets, as
well as global equity market volatility, had a substantial adverse
effect on AIG's results in the second quarter.

Net loss for the first six months of 2008 was US$13.16 billion,
compared to net income of US$8.41 billion in the first six months
of 2007.  Adjusted net loss for the first six months of 2008 was
US$4.88 billion, compared to adjusted net income of
US$9.02 billion in the first six months of 2007.


AMERICAN INT'L: To Sell ILFC Unit to Pay Off US$85BB Gov't Loan
---------------------------------------------------------------
American International Group Inc. is considering selling
International Lease Finance Corp., its aircraft leasing company,
Liam Pleven and J. Lynn Lunsford at The Wall Street Journal
report, citing a person familiar with the matter.

According to WSJ, a source said that AIG's board met Sunday to
discuss what units the company should sell to pay off a
US$85 billion loan from the government to help the company avoid
possible bankruptcy.

The source said that investors from the U.S., Europe, Asia, and
the Middle East have expressed interest in investing in a buyout,
WSJ relates.

ILFC's founder and chairperson Steven Udvar-Hazy sold the company
to AIG in 1990.  ILFC is a standalone business with a yearly
revenue of US$6 billion.  It has more than 1,030 jetliners and is
valued at more than US$50 billion.  AIG's equity interest in the
leasing company is about US$7 billion.

Mr. Udvar-Hazy is leading an effort to purchase ILFC, WSJ states.

Based in New York City, American International Group Inc. --
http://www.aig.com/-- (NYSE: AIG) is an international insurance
and financial services organization, with operations in more than
130 countries and jurisdictions.  The company is engaged through
subsidiaries in General Insurance, Life Insurance & Retirement
Services, Financial Services and Asset Management.

The company's British headquarters are located on Fenchurch Street
in London, continental Europe operations are based in La Defense,
Paris, and its Asian HQ is in Hong Kong.  AIG owns Ocean Finance,
a United Kingdom based company providing home owner loans,
mortgages and remortgages.  AIG operates in the UK with the brands
AIG UK, AIG Life and AIG Direct.  It has about 3,000 employees,
and sponsors the Manchester United football club.  In response to
redemption demands, AIG Life (UK) suspended redemptions of its AIG
Premier Bond money market fund on Sept. 19, 2008, in order to
provide an orderly withdrawal of assets.

The Federal Reserve Bank of New York has extended to AIG a
revolving credit facility up to US$85 billion. AIG's borrowings
under the revolving credit facility will bear interest, for each
day, at a rate per annum equal to three-month Libor plus 8.50%.
The revolving credit facility will have a 24-month term and will
be secured by a pledge of assets of AIG and various subsidiaries.
The revolving credit facility will contain affirmative and
negative covenants, including a covenant to pay down the facility
with the proceeds of asset sales.

The summary of terms also provides for a 79.9% equity interest in
AIG.  The corporate approvals and formalities necessary to create
this equity interest will depend upon its form.

In a statement, the company said "AIG is a solid company with over
US$1 trillion in assets and substantial equity, but it has been
recently experiencing serious liquidity issues."

Standard & Poor's Ratings Services has revised the CreditWatch
status of most of its ratings on the AIG group of companies --
including its 'A-' long-term counterparty credit ratings on
American International Group Inc. and International Lease Finance
Corp. and the 'A+' counterparty credit and financial strength
ratings on most of AIG's insurance operating subsidiaries -- to
CreditWatch developing from CreditWatch negative.

Fitch Ratings revised its Rating Watch on American International
Group, Inc. to Evolving from Negative.  Fitch viewed this
transaction as a favorable development that alleviates significant
near-term liquidity concerns.

The Troubled Company Reporter reported on Sept. 19, 2008, that
that Edward Liddy replaced Robert Willumstad as AIG's CEO.

                       *     *     *

In a U.S. Securities and Exchange Commission filing dated Aug. 6,
2008, AIG reported a net loss for the second quarter of 2008 of
US$5.36 billion compared to 2007 second quarter net income of
US$4.28 billion.  Second quarter 2008 adjusted net loss was
US$1.32 billion, compared to adjusted net income of US$4.63
billion for the second quarter of 2007.  The continuation of the
weak U.S. housing market and disruption in the credit markets, as
well as global equity market volatility, had a substantial adverse
effect on AIG's results in the second quarter.

Net loss for the first six months of 2008 was US$13.16 billion,
compared to net income of US$8.41 billion in the first six months
of 2007.  Adjusted net loss for the first six months of 2008 was
US$4.88 billion, compared to adjusted net income of US$9.02
billion in the first six months of 2007.


COMPACT BUILDING: Court to Hear Wind-Up Petition on October 15
--------------------------------------------------------------
A petition to have Compact Building Materials Company Limited's
operations wound up will be heard before the High Court of
Hong Kong on October 15, 2008, at 9:30 a.m.

Yeung Chi Man filed the petition against the company on August 11,
2008.


LEHMAN BROTHERS COMM.: Appoints Brough & Middleton as Liquidators
-----------------------------------------------------------------
On September 19, 2008, Paul Brough and Edward Middleton were
appointed as liquidators of Lehman Brothers Commercial Corporation
Asia Limited.

The Liquidators can be reached at:

          Paul Brough
          Edward Middleton
          Patrick Cowley
          KPMG
          Prince's Building, 8th Floor
          10 Chater Road
          Central, Hong Kong


LEHMAN BROTHERS ASIA: Appoints Brough and Middleton as Liquidators
------------------------------------------------------------------
On September 19, 2008, Paul Brough and Edward Middleton were
appointed as liquidators of Lehman Brothers Asia Limited.

The Liquidators can be reached at:

          Paul Brough
          Edward Middleton
          Patrick Cowley
          KPMG
          Prince's Building, 8th Floor
          10 Chater Road
          Central, Hong Kong


LEHMAN BROTHERS ASIA: Appoints Brough and Middleton as Liquidators
------------------------------------------------------------------
On September 19, 2008, Paul Brough and Edward Middleton were
appointed as liquidators of Lehman Brothers Asia Holdings Limited.

The Liquidators can be reached at:

          Paul Brough
          Edward Middleton
          Patrick Cowley
          KPMG
          Prince's Building, 8th Floor
          10 Chater Road
          Central, Hong Kong


LUEN KEE: Creditors' Proofs of Debt Due on October 13
-----------------------------------------------------
The creditors of Luen Kee Catering Development Limited are
required to file their proofs of debt by October 13, 2008, to be
included in the company's dividend distribution.

The company's liquidator is:

          Lin Lai Har Wendy
          1301 Eton Tower
          8 Hysan Avenue, Causeway Bay
          Hong Kong


MATTEL VENDOR: Appoints Philip Brendan Gilligan as Liquidator
-------------------------------------------------------------
At an extraordinary general meeting held on September 16, 2008,
the members of Mattel Vendor Operations Asia Limited appointed
Philip Brendan Gilligan as the company's liquidator.

The Liquidator can be reached at:

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


PEREGRINE STRATEGIC: Creditors' Proofs of Debt Due on October 17
----------------------------------------------------------------
The creditors of Peregrine Strategic Investments Limited are
required to file their proofs of debt by October 17, 2008, to be
included in the company's sixth dividend distribution.

The company's liquidator is:

          Joanne Oswin
          c/o PricewaterhouseCoopers
          Prince's Building, 22nd Floor
          10 Chater Road
          Central, Hong Kong
          Telephone: (852) 2289 8888
          Facsimile: (852) 2890 8345


R & I PROJECT: Appoints Sing and Ming as Liquidators
----------------------------------------------------
The creditors of R & I Project Consultant Limited met on Sept. 22,
2008, and appointed Tang Yau Sing and Pang Fung Ming as the
company's liquidators.

The Liquidators can be reached at:

          Tang Yau Sing
          Pang Fung Ming
          GC Alliance Limited
          Man Yee Building
          Suites 2406-7, 24th Floor
          68 Des Voeux Road Central
          Hong Kong


SENTEX (CHINA): Creditors' Proofs of Debt Due on October 27
-----------------------------------------------------------
The creditors of Sentex (China) Limited are required to file their
proofs of debt by October 27, 2008, to be included in the
company's dividend distribution.

The company's liquidator is:

          Li Sze Kuen, Billy
          Lockhart Road, 12th Floor
          Wanchai, Hong Kong


SHIMAO PROPERTY: S&P Cuts Corporate Credit Rating to BB From BB+
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
corporate credit rating on China-based property developer Shimao
Property Holdings Ltd. to 'BB' from 'BB+'.  The outlook is stable.
At the same time, S&P lowered its issue ratings on Shimao's US$350
million 8% notes due 2016 and on its US$250 million floating rate
notes due 2011 to 'BB-' from 'BB+'.

"The rating revision reflects Shimao's weakened cash flow
protection and a challenging sales outlook that is unlikely to
support credit metrics appropriate for a 'BB+' rating over the
next 12 months," said S&P's credit analyst Christopher Lee.

For its interim results for 2008, the company announced a
substantially lower-than-expected sales forecast of RMB14 billion
for 2008 (previous: RMB17.4 billion) and RMB21 billion for 2009
(previous: RMB28.7 billion).  In addition, S&P believes an
increasingly difficult real estate market could make achieving the
revised sales forecast a challenge.  The company has started to
cut prices on selective projects to clear inventory just when
other developers are doing the same.

Although Shimao has started to scale back its expansion, capital
expenditure will likely remain high compared with the past because
the company will continue to pay land premiums for past
acquisitions and to develop new projects within the stipulated
development period. The construction costs associated with an
enlarged land bank will be a material cash burden for Shimao.

Shimao's financial flexibility has been weakened by the tight
liquidity in the offshore market due to the global credit crisis.
The company has repaid a US$300 million bridge loan with its
internal funds.

The revised issue rating reflects S&P's expectation that the
company's ratio of priority debt to total assets is unlikely to
fall below the threshold level of 15% for speculative-grade-rated
credits over the next 12 months.



VENLINT HOLDINGS: Members to Receive Wind-Up Report on October 27
-----------------------------------------------------------------
The members of Venlint Holdings Limited will meet on October 27,
2008, at 10:00 a.m. to hear the liquidators' report on the
company's wind-up proceedings and property disposal.

The company's liquidators are:

          Natalia Seng Sze Ka Mee
          Cynthia Wong Tak Yee
          Three Pacific Place, Level 28
          1 Queen's Road East
          Hong Kong



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

DRISH SHOES: CRISIL Rates Rs. 70 Mil. Facilities at 'BB+'
---------------------------------------------------------
CRISIL has assigned its bank loan ratings of 'BB+/Positive/P4' to
the various bank facilities of Drish Shoes Limited (DSL).

  Rs. 7.5 Million Cash
         Credit Limit      BB+/Positive (Assigned)

  Rs.61.9 Million
         Term Loan      BB+/Positive (Assigned)

  Rs.317.5 Million Export
         Packing Credit     P4 (Assigned)

  Rs.155.0 Million
         Foreign Bill
         Purchase           P4 (Assigned)

  Rs.45 Million Letter
         of Credit*         P4 (Assigned)

*Including Bank Guarantee

The ratings reflect DSL's stretched financial profile due to high
gearing levels and highly working capital intensive nature of
business.  These weaknesses are partially mitigated by improving
business profile post acquisition of established brands and long
standing experience of the promoters of the company.

                       Outlook: Positive

CRISIL's positive outlook on Drish Shoes Limited (DSL) rating
reflects expectation of improvement in the overall business
profile of the company owing to improved cash accruals post
acquisition of established brands in Germany.  However the outlook
maybe revised to 'Stable' or 'Negative' in case of delays in
stabilization of acquired brands or if the company undertakes more
than expected debt funded capex.

                   About Drish Shoes Limited

DSL was incorporated in 1988 for the purpose of manufacturing
leather and value-added leather products.  Drish specializes in
making fine grain Cow Calf, Cow Upper Leathers in grains, suedes
and nubuks.  Its manufacturing facilities are located at Nalagarh,
Jalandhar and Panchkula in Punjab.

DSL reported a profit after tax (PAT) of Rs.13 million on net
sales of Rs.1.1 billion in 2007-08 (refers to financial year,
April 1 to March 31), as against a PAT of Rs.8 million on net
sales of Rs.0.9 billion, the previous year.


MEHALA MACHINES: CRISIL Rates Rs. 165 Mil. Facilities at 'BB+'
--------------------------------------------------------------
CRISIL has assigned its bank loan ratings of 'BB+/Stable/P4' to
the various bank facilities of Mehala Machines India Ltd (MMIL).

   Rs.100 Million Long Term Loan          BB+/Stable (Assigned)
   Rs.65 Million Cash Credit Limits       BB+/Stable (Assigned)
   Rs.10 Million Letter of Credit Limits  P4 (Assigned)
   Rs.60 Million Short Term Bank Facility P4 (Assigned)

The ratings reflect the company's below average financial profile,
and intense competition faced by the company from other textile
machinery dealer-manufacturers. These weaknesses are however
partly offset by MMIL's established market position in the
dealership of textile sewing/finishing machinery, backed by sole
distribution agencies from suppliers.

                         Outlook: Stable

CRISIL expects MMIL to maintain its financial risk profile over
the medium term backed by steady growth in revenues and accruals.
The rating may be revised to 'Positive' in the event of
considerable improvement in MMIL's financial profile, driven by
improvement in margins and gearing levels.  The rating may be
revised to 'Negative' in case of significant debt-funded capital
expenditure, or acquisitions, or support to group companies.

                           About MMIL

Established in 1978 as a proprietary concern by Mr. C Subramaniam,
MMIL was converted into a limited company in 1991.  The company is
the sole selling agent for Siruba sewing machines manufactured by
Kaulin Manufacturing Company Limited, Taiwan (KMCL) in India.  The
company imports and sells textile machinery for the entire garment
manufacturing value chain, comprising sewing machines, embroidery
machines, cutting machines and finishing equipments.  MMIL is
awaiting an order from the Honourable High Court of Madras for
amalgamation of itself with Sanmarco Texmac Pvt. Ltd, a company
engaged in manufacturing of worsted ring frames for spinning and
related components for which the effective date has been fixed as
April 1, 2007.  For 2006-07, (refers to financial year, April 1 to
March 31) MMIL reported a profit after tax (PAT) of Rs.5 million
on net sales of Rs.457 million.



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

BANK MANDIRI: Government Supports Proposal to Acquire Indover
-------------------------------------------------------------
The Jakarta Post reports that the Government of Indonesia gave its
nod for Bank Mandiri to take over Indover Bank from the Bank
Indonesia (BI).

"I think it will be good for Mandiri, as opening branches in
foreign countries is considered to be very difficult nowadays,"
Said Didu, secretary to the State Minister for State Enterprises,
told The Jakarta Post.

The report, citing Mandiri President Director Agus Martowardojo,
said that the bank is currently determining whether the takeover
is feasible.

According to the central bank, Mandiri made an undisclosed bid for
Indover last February, The Post adds.

The report noted that the central bank will sell its stake in
Indover to comply with a 2004 law stating that BI may not own
stakes in companies that do not compliment its efforts as the
country's central bank to control money supply and interest rates
beyond Jan. 15, 2009.

                        About Bank Mandiri

PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is
Indonesia's largest and best capitalized bank in terms of
assets, loans and deposits, and provides comprehensive financial
services to more than six million corporate and individual
consumers, as well as small and medium-sized enterprises in
Indonesia.

                        *     *     *

The Troubled Company Reporter-Asia Pacific reported on Dec. 7,
2007, that Fitch Ratings upgraded the Individual Rating of PT
Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its
National Long-term rating to 'AA+ (idn)' from 'AA (idn)'.  The
outlook on the national rating remains stable.

At the same time, Fitch affirmed the company's Long-term foreign
and local currency Issuer Default ratings at 'BB-' with a
Positive Outlook, Short-term IDR at 'B' and Support Floor at
'B+'.

On Oct. 19, 2007, Moody's Investors Service raised Bank
Mandiri's foreign currency senior/subordinated debt ratings
to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit
rating to B1 from B2.


KERTAS KRAFT: To Shut Down if Unable to Secure Raw Materials
------------------------------------------------------------
Jakarta Post reports that PT Kertas Kraft Aceh (KKA) will be
likely closed down by the Indonesian Government due to the
company's losses and problems in acquiring raw materials after the
Aceh administration turned down the company's request to cut down
pine trees to supply its raw material.

"Unless the local authorities allow KKA to secure its raw material
within a month, the ministry will shut down the company," State
Minister for State Enterprises Sofyan Djalil was quoted by The
Post as saying.

The report, Mr. Sofyan, says there is now a greater chance that
the government would sell off the company.

Between 2005 and 2007, the ministry had injected IDR100 billion
into KKA, The Post noted.

Based in Aceh province, Indonesia PT Kertas Kraft Aceh (Persero)
-- http://www.KKA-lsm.com/-- is a paper manufacturer.  Kraft
Kertas ceased operations in 2003 when its supplier, ExxonMobil,
stopped supplying gas to the Company after it failed to pay an
outstanding gas bill amounting to IDR65 billion.  The company
was unable to secure another gas supplier after that.  The
company stopped paying its 1,035 workers in 2005.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
June 16, 2006, Bank Mandiri asked the company to settle its
non-performing loans, which comprise 26.2% of its total loans,
otherwise it would be forced to seek legal action against them

On Feb. 13, 2006, TCR-AP reported that the Government injected up
to IDR50 billion into ailing Kertas Kraft to enable the company to
resume normal operations.  At that time, Minister of State
Enterprises Sugiharto has said that Kertas Kraft needs up to
IDR200 billion in order to resume its operations.


MOBILE-8 TELECOM: Moody's Lowers CFR to Caa1; Outlook Negative
--------------------------------------------------------------
Moody's Investors Service downgraded to Caa1 from B3 the corporate
family rating of PT Mobile-8 Telecom Tbk and the senior unsecured
rating on the US$100 million 11.25% notes due 2013 issued by
Mobile-8 Telecom Finance Company B.V.  The outlook on the ratings
is negative.

The downgrade reflects Mobile-8's materially weaker than expected
1H 2008 operating performance which has further undermined the
company's liquidity position and thus debt servicing capability.
The rating action also reflects heightened risk of a covenant
breach in the company's IDR675 billion bond with the reporting of
its full year end 2008 results as the company is unlikely to be
able to turn around its performance in the short run.

If a waiver from bondholders is not obtained for the breach of the
financial covenants of its Rupiah bond, it could trigger the cross
default provision in Mobile-8's US$ bond.

"Competition in the Indonesian mobile market remains intense at a
time when Mobile-8's position has weakened as a result of further
delays in the network roll-out," says Ivan Palacios, a Moody's
AVP/Analyst, adding, "Lower net additions than expected, coupled
with weaker revenue growth, higher costs and substantial capital
expenditure plans are leading to a faster-than-anticipated level
of cash burn."

Moody's notes that the weaker-than-expected performance may prompt
a re-evaluation of the company's balance sheet structure.  Any
potential equity injection may alleviate the company's short-term
liquidity pressures.  However, PT Global Mediacom's, Mobile-8's
majority shareholder, recent reduction of its ownership means it
will likely be less supportive of Mobile-8's business and
financial strategy.  Global Mediacom has lowered its shareholding
in Mobile-8 to 51% from 66.8% as it intends to focus more on its
core media and content operations.

The outlook on the ratings is negative.  Further downward pressure
on the ratings could build up if (i) Mobile-8's operating
performance continues to deteriorate further straining its
liquidity profile; (ii) the company breaches the financial
covenants of its Rupiah bonds and is unable to get a waiver from
bondholders; and/or (iii) considers any debt restructuring,
leading to losses for bondholders.

Upward movement in Mobile-8's rating is unlikely at this time
given the negative outlook.  However, the rating outlook could be
stabilized if the company: (i) receives a substantial equity
injection to rebalance its capital structure and alleviate
liquidity pressures; and (ii) achieves its medium-term business
plan, establishes its market position and expands its market
share, thus improving operating cash flow generation such that
Debt/EBITDA falls below 6.5x and FFO Interest Coverage is
maintained at above 2.0x on a sustained basis.

Established in 2002 and commercially launched in 2003, Mobile-8 is
the fourth largest mobile cellular operator in Indonesia,
operating in the 800MHz spectrum on a CDMA2000 1x platform.  As of
March 2008, the company had 3.1 million subscribers, of which
96.9% were pre-paid. Mobile-8 also has a nationwide fixed-wireless
license.


PERUM PERUSAHAAN: May Halt Operations Due to Losses
---------------------------------------------------
Perum Perusahaan Pengangkutan Djakarta (Perum PPD) has been
identified by the Indonesian government as one of the three state-
owned companies suffering hefty losses that is likely not to
operate much longer, Jakarta Post reports.

"Perum PPD is an example how the government has failed to keep a
company solvent after injecting funds in the hope of keeping the
firm going normally," State Minister for State Enterprises Sofyan
Djalil was quoted by The Post as saying.

According to the report, Mr. Sofyan said recently that the
ministry would seek various ways to help the companies stay
solvent, before selling them off to other parties.

However, The Post cited Mr. Sofyan as saying that there is now a
greater chance that the government would sell off the company.

Aside from liquidation and sales of assets, the government would
also allow private investors to buy a stake in the company, The
Post added.

The report noted that between 2005 and 2007, the ministry had
injected IDR40 billion (US$4.3 million) of capital into Perum PPD.

Perum PPD currently operates around 1,187 buses serving routes
around Greater Jakarta.  With an aging bus fleet, the company is
facing stiff challenges from privately owned bus operators.


PT SEMEN KUPANG: Likely to Close Down Due to Losses
---------------------------------------------------
Jakarta Post reports that cement company PT Semen Kupang was
identified by the Indonesian government to be likely closed down
due to the firm's losses.

According to the report, between 2005 and 2007, the government
injected IDR50 billion into the company for it to stay afloat.

However, the company is now facing a bigger possibility of being
sold by the government, State Minister for State Enterprises
Sofyan Djalil was cited by The Post as saying.

Citing The Post, a report by the Troubled Company Reporter-Asia
Pacific on Sept. 18, 2008, stated that Bank Mandiri's 38-percent
stake in Semen Kupang is in the final stage of acquisition by
Nava Bharat Pte. Ltd.

                       About Semen Kupang

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

                          *     *     *

Semen Kupang's operations were suspended on April 22, 2008, after
it failed to pay its IDR25 billion debt to PT Sewatama Jakarta.
The company was forced to lay off nearly 600 workers as a result
of the company's financial woes.

The company almost went bankrupt in 2007 as it was heavily
indebted to Bank Mandiri with debts reaching more than
IDR159 billion.



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

DELPHI CORP: Says Agreements with Unions Fortifies Bankruptcy Exit
------------------------------------------------------------------
Delphi Corp. disclosed the effectiveness of several agreements
with GM and Delphi's U.S. unions.  These agreements further the
significant progress Delphi has achieved in its Chapter 11 cases
and, together with other actions Delphi has taken, keep Delphi on
track to complete the five key tenets of its transformation by
year's end.

On Sept. 26, 2008, the U.S. Bankruptcy Court for the Southern
District of New York authorized Delphi to enter into an Amended
and Restated Global Settlement Agreement and an Amended and
Restated Master Restructuring Agreement with GM, well as an
amendment to an existing Advance Agreement with GM.  In addition,
on Sept. 23, 2008, the Bankruptcy Court authorized Delphi to take
actions with respect to certain of its existing pension plans and
to implement replacement pension plans.

The Amended GSA and Amended MRA reflect the completion of
Delphi's negotiations with GM to finalize its financial support
of Delphi's legacy and labor costs, including by means of GM's
assumption of Delphi's U.S. Hourly post-retirement benefits
obligations and support for certain labor costs, and to document
Delphi's business relationship with GM going forward.  In
addition, these agreements, together with Implementation
Agreements, which have been entered into with each of the
company's six U.S. unions, will allow Delphi to immediately
commence implementation of a workable solution to its pension
obligations through

  -- a transfer of U.S. hourly pension liabilities and assets
     from the Delphi hourly pension plan to the GM hourly
     pension plan in the net amount of approximately US$2.1 to
     2.4 billion, in the first of two anticipated transfers of
     U.S. hourly pension liabilities to the GM hourly pension
     plan; and

  -- the freezing of substantially all of Delphi's existing U.S.
     pension plans and the implementation of replacement plans.

Importantly, the Pension Benefit Guaranty Corporation has stated
that as a result of the transfer of pension liability, the PBGC
will begin withdrawing its previous lien filings of approximately
US$1.2 billion.

The amendment to the Advance Agreement provides for an additional
US$300 million availability to Delphi, which, combined with the
net payments of over US$900 million to be made by GM to Delphi
upon the effectiveness of the Amended GSA and Amended MRA,
provides significant enhancement to Delphi's liquidity position.

These agreements and the actions being taken by Delphi provide
the framework for the company to complete its transformation and
emerge from Chapter 11 as soon as practicable.

                      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.


FORD MOTOR: May Repay US$1.5 Billion Debt Due October 1
-------------------------------------------------------
Ford Motor Co. may repay about US$1.5 billion in debt coming due
on Oct. 1, 2008, without tapping a revolving credit line, Bill
Koenig and Jeff Green at Bloomberg News report, citing analysts.

Bloomberg relates that the debt includes:

    -- US$1 billion in five-year, unsecured bonds at the Ford
       Motor Credit Co. consumer-finance unit, which has a
       coupon interest rate of 5.625%, and was part of a
       September 2003 sale of US$3 billion in 5- and 10-year
       notes; and

    -- US$500 million in 12-year notes at Ford, which was "sold
       in 1996 and has an interest rate of 7.25%."

According to Bloomberg, Ford took a US$23.4 billion loan in 2006
to have enough cash to develop new models while shutting down
plants and laying off workers in North America, its home market
and the main source of US$23.9 billion in losses since 2005.
Bloomberg says that as part of the 2006 restructuring, Ford
secured an US$11.5 billion revolving line of credit that it hasn't
used.  Ford's CEO Alan Mulally is using cash to help pay for a
plan to develop more small cars and lessen the company's reliance
on large pickup trucks and sport-utility vehicles, Bloomberg
relates.

Citing Standard & Poor's credit analyst Robert Schulz, Bloomberg
states that Ford Credit may refinance some of the US$1 billion
coming due, as part of its normal financing activities, while the
US$500 million coming due at Ford Motor would be paid in cash.

"We expect them to use cash out of hand to pay those down.  In the
current environment we simply expect these sorts of debts to be
paid off, not refinanced," Bloomberg quoted Fitch Ratings Co.
credit analyst Mark Oline as saying.  According to Bloomberg, Mr.
Schulz said, "Given their cash levels, we certainly wouldn't
expect them to need to tap their revolver." Ford reported in
August that it had US$30.1 billion in cash and equivalents and
US$12.5 billion in marketable securities as of June 30, 2008.  "If
conditions keep deteriorating, Ford may eventually have to tap its
revolving credit, sooner than expected," the report quoted Mr.
Oline as saying.

                     About Ford Motor Co.

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

The company has operations in Japan in the Asia Pacific region. In
Europe, the company maintains a presence in Sweden, and the United
Kingdom.  The company also distributes its brands in various
Latin-American regions, including Argentina and Brazil.

                         *     *     *

As reported in the Troubled Company Reporter on Aug. 5, 2008,
Fitch Ratings has downgraded the issuer default rating of Ford
Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'.
The Rating Outlook remains Negative.  The downgrade reflects: the
further deterioration in Ford's U.S. sales as a result of economic
conditions, an adverse product mix and the most recent jump in gas
prices; portfolio deterioration at Ford Credit and heightened
concern regarding economic access to capital to support financing
requirements; and escalating commodity costs that will remain a
significant offset to cost reduction efforts.


LEHMAN BROTHERS: European Co-CEO to Leave After Nomura Takeover
---------------------------------------------------------------
Lehman Brothers Holdings Inc.'s European co-chief executive
officer is among at least four top bankers who will leave the firm
after Nomura Holdings Inc.'s purchase, Bloomberg News reports,
citing sources.

On September 25, 2008, the Troubled Company Reporter - Asia
Pacific, citing Bloomberg News, reported that Nomura Holdings
agreed to pay less than a month's revenue for units of bankrupt
Lehman Brothers in Asia and Europe.  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 on September 15.

According to the TCR-AP, Nomura Holdings would also keep most of
Lehman's 2,500 workers in the U.K., Germany, Switzerland, Spain,
the Middle East, Sweden and Russia.

The following Lehman European officials will leave the company
after Nomura takes over parts of the company's operations:

-- Riccardo Banchetti, 42, co-CEO for Lehman in Europe,
-- Alexis de Rosnay, 41, who co-headed investment banking for the
   region,
-- Michael Tory, 47, head of U.K. investment banking, and
-- Xavier Rolet, 48, CEO for France

Meanwhile, Reuters reports that Nomura would also keep Lehman's
Europe last year's bonus pool aimed to prevent Lehman bankers from
leaving.  The exact size of the bonus pool and exactly who is
entitled to it is unclear, with top performers expected to get
first claim, the same report says.

"Whenever there is an acquisition or a merger there is always
between 10 and 15% of people that you want to keep that will
decide to go.  Nomura is probably doing everything they can to
retain people and put on the golden handcuffs," Bloomberg News
cited Scott Moeller, a finance professor at City University's Cass
Business School in London and former banker at Morgan Stanley and
Deutsche Bank AG, as saying.

Moreover, Bloomberg says Lehman will eliminate 750 jobs in its
European fixed-income and personal investment-management units
after talks to find a buyer failed.  The cuts, which will fall
mainly in fixed income, are effective September 30, the same
report notes, citing PricewaterhouseCoopers.

In all, according to Bloomberg News, the bank employed about 4,500
staff in London's Canary Wharf.

                      About Nomura Holdings

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.

                      About Lehman Brothers

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

Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr.
S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on
September 16 (Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

             International Operations Collapse

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

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.


NOMURA: To Match Lehman's 2007 Asian Bonus to Retain Employees
--------------------------------------------------------------
Nomura Holdings Inc. plans to match last year's bonus pool for
bankrupt Lehman Brothers Holdings Inc.'s Asia group, aimed to
prevent Lehman bankers from leaving, Reuters reports, citing
sources.

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 on September 15.

As reported by the Troubled Company Reporter - Asia Pacific on
Sept. 25, citing Bloomberg News, Nomura Holdings agreed to pay
US$225 million to take over Lehman's Asian-Pacific unit.  The Asia
transaction includes 3,000 employees in Tokyo, Seoul, Beijing,
Shanghai, Hong Kong, Taiwan, Thailand, Singapore, Mumbai, Sydney
and Melbourne.  The company would also keep most of Lehman's 2,500
workers in the U.K., Germany, Switzerland, Spain, the Middle East,
Sweden and Russia, the report said.

According to the Reuters, the exact size of the bonus pool and
exactly who is entitled to it is unclear, with top performers
expected to get first claim.  Lehman's Asia-based bankers will be
offered cash for their 2008 bonus, and in some cases, 2009 bonus
money will be guaranteed as well, the report says.

The report relates that media and trader reports indicated that
Nomura would also keep Lehman's Europe and the Middle East 2008
bonus pool the same as 2007.

Meanwhile, Reuters says that contracts have been distributed to
Lehman staff in the last few days, asking them to indicate if they
plan to remain with the combined company.

                       About Nomura Holdings

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, and Support Rating Floor at 'B'.

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.


NOMURA HOLDINGS: Hires Takumi Shibata to Head Lehman Integration
----------------------------------------------------------------
Nomura Holdings Inc. appointed Chief Operating Officer Takumi
Shibata to head the integration of units acquired from bankrupt
Lehman Brothers Holdings Inc., Bloomberg News reports.

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 on September 15.

On September 25, 2008, the Troubled Company Reporter - Asia
Pacific, citing Bloomberg News, reported that Nomura Holdings
agreed to pay less than a month's revenue for units of bankrupt
Lehman Brothers in Asia and Europe.

According to the TCR-AP, the Asia transaction includes 3,000
employees in Tokyo, Seoul, Beijing, Shanghai, Hong Kong, Taiwan,
Thailand, Singapore, Mumbai, Sydney and Melbourne.  The company
would also keep most of Lehman's 2,500 workers in the U.K.,
Germany, Switzerland, Spain, the Middle East, Sweden and Russia,
the report said.

Nomura spokesman Michiyori Fujiwara, Bloomberg News relates, that
Mr. Shibata, 55, will be in charge of integrating Lehman
operations in Asia and Europe.  Shibata's task involves taking
over more than 5,000 employees from Lehman Brothers, the report
says.

                      About Nomura Holdings

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, and Support Rating Floor at 'B'.

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.


XERIUM TECHNOLOGIES: S&P Lifts Rating to 'B-'; Outlook Stable
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on Xerium
Technologies Inc., including raising the long-term corporate
credit rating to 'B-' from 'CCC+'.  The outlook is stable.

"The upgrade is based on the increased likelihood that Xerium will
satisfy its covenants in the fourth quarter and maintain adequate
liquidity in the near term," said Standard & Poor's credit analyst
Sarah Wyeth.

The ratings on Youngsville, North Carolina-based Xerium reflect
the company's highly leveraged balance sheet, its limited
liquidity, its modest size as a supplier to niche markets, and its
dependence on the papermaking industry, all of which limit the
company's organic growth potential.  Partly mitigating these
weaknesses are the company's good operating margins, its
geographic diversity, and the strong competitive position of its
niche product.

Xerium, with revenues of about US$650 million, operates in two
business segments: clothing, in the form of synthetic textile
belts that transport paper through papermaking machines, and roll
covers, which provide covering surface for large steel cylinders
between which paper travels in those machines.  Clothing
represented roughly 65% of revenue in the six months ending
June 30, 2008, and roll covers the remainder.  These consumables
play key roles in the process of converting raw material into
paper, and customers prefer local, reliable, and long-standing
suppliers.

Pricing, while not the key buying decision, has grown increasingly
competitive recently.  However, this has not affected Xerium's
large market shares substantially.

The recent amendment to Xerium's credit agreement has alleviated
short-term liquidity pressures.  S&P could revise the outlook to
positive and potentially raise the ratings if the company can
maintain operating margins of at least 23%, continue to generate
positive free operating cash flow, and be expected to maintain an
EBITDA cushion of 20% in its leverage covenant for the foreseeable
future.

However, Standard & Poor's notes that Xerium's end markets
continue to be challenging and competitive.  If EBITDA declines
more than 5% from its current level and the company does not
reduce debt in excess of mandatory payments, the leverage covenant
could become tight in 2010 and S&P could revise the outlook to
negative or lower the rating.


SANYO ELECTRIC: To Close Korean Plant to Help Ailing Business
-------------------------------------------------------------
Sanyo Electric Co. Ltd.  will close its semiconductor plant in
Masan, South Korea, as early as October to help turn around its
loss-making chip business, Reuters reports, citing Japanese
business daily Nikkei.

The paper, the report relates, said the planned closure was
already factored into the company's earnings outlook.

According to the report, Sanyo's microchip operations have been
floundering since a major earthquake hit one of its factories in
northern Japan in 2004.  The electronics maker spun off the chip-
making business in 2006 in a move widely seen as a prelude to
selling it.  But it gave up on the sale after private equity firm
Advantage Partners LLP last year failed to gather enough funds to
support its bid, the report says.

Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products.  The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.

                          *     *     *

The company continues to carry Standard & Poor's Ratings' 'BB'
long-term corporate credit rating.  The company also carries
Fitch Ratings' BB+ LT Issuer Credit and Unsecured Debt ratings.


* JAPAN: REITs Credit Quality Stable Amidst Crunch, S&P Reports
---------------------------------------------------------------
Standard & Poor's Ratings Services said in a Japanese-language
report that the credit quality among rated Japanese real estate
investment trusts (J-REITs) is currently stable despite
increasingly difficult business conditions.  The rated J-REITs
should, however, still be closely watched for their financial
management capabilities as global debt and capital markets reel
from the impact of Lehman Brothers Holdings Inc.'s recent
collapse, which has increased market instability caused by the
U.S. subprime crisis, and J-REIT investment unit prices continue
to tumble after undergoing a major correction that began in the
second half of 2007.

As of the end of August 2008, J-REIT market capitalization had
fallen to JPY3.7 trillion from a peak of JPY6.8 trillion at the
end of May 2007.  Most J-REIT investment units now trade at a
discount to their net asset values, and no J-REIT has been listed
since the beginning of this year.  Some J-REIT public offerings
have been postponed, while other equity issuances fetched lower-
than-expected proceeds.  Allocations of new units to third parties
at discounted rates have caused substantial equity dilution.
Several J-REITs are finding it increasingly difficult
to secure sufficient liquidity and to refinance debt, and raising
funds through debt has become increasingly difficult.  As
fledgling real estate companies file for bankruptcy in succession,
deteriorating sentiment in the credit market and falling demand
from investors have affected J-REIT bonds, causing spreads to
widen.  As of the end of September 2008, only one J-REIT had
issued (long-term) bonds.  The total issue amount was only JPY3
billion.

Amid volatility in the J-REIT market, S&P will continue to
scrutinize the financial soundness of the 11 J-REITs to which it
has assigned ratings.  Currently, Standard & Poor's is not
concerned about the financing capabilities of the rated J-REITs
and their ability to repay debt.  This is because the rated
J-REITs boast sound financial profiles, backed by solid business
positions and good brand recognition for their sponsors.  The
rated J-REITs have also nurtured good business relationships with
a number of financial institutions that enable them to maintain
ample liquidity and sufficient unencumbered properties.
Nevertheless, as instability buffets global debt and capital
markets, each J-REIT's financial management capability is likely
to be further tested.  S&P will increase its focus on the rated
J-REITs' internal and external growth strategies and their
financial profiles, especially their ability to control leverage
and their financial flexibility.  In the report, S&P details the
current business conditions in which the rated J-REITs operate and
examines the current credit quality of the 11 rated J-REITs.


* JAPAN: S&P Updates Review on Cashing and Consumer ABS Loans
-------------------------------------------------------------
Standard & Poor's Ratings Services has released a Japanese-
language Performance Watch report titled "Cashing And Consumer
Loan ABS Performance Review: Update For September 2008".

On June 27, 2008, S&P released a Japanese-language Performance
Watch report titled "Cashing And Consumer Loan-Backed ABS
Transactions In Japan".  The English translation of that report
was published at a later date.  The June report contains analysis
of the performance of cashing and consumer loan-backed ABS
transactions rated by S&P, based on surveillance data.  The
published report provides an update of the core variables used in
the June report, based on surveillance data for the last three
months.



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

LUSTER INDUSTRIES: Appoints Chim as Chairman of Audit Committee
---------------------------------------------------------------
Luster Industries Bhd. disclosed the appointment of Lau Theng Chim
as the chairman of the company's Audit Committee.  Moreover,
Ng Chin Nam was also named as a member of the Audit Committee.

Composition of Audit Committee:

   * Lau Theng Chim -- Chairman;
   * Chatar Singh A/L Santa Singh -- Member; and
   * Ng Chin Nam -- Member

Moreover, Ng Chin Nam was also appointed as the company's
director.

Luster Industries Berhad is a Malaysia-based investment holding
company that provides management services to its subsidiaries.
The company is principally engaged in the manufacture of
precision plastic parts and components, and sub assembly and
full assembly of plastic parts and products.  During the year
ended December 31, 2005, the company acquired Mctronic Plastic
Sdn. Bhd., Mature Step International Limited and Poly Link
Limited.  On June 29, 2006, the company disposed of its
investment in its joint venture, Luster Nakazawa R&D Sdn Bhd,
representing 51% of Luster Nakazawa R&D Sdn Bhd.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
May 8, 2008, the company was considered as an affected listed
issuer of the Practice Note No. 17/2005 of Bursa Malaysia
Securities Berhad as the external auditors have expressed a
modified opinion on the company's going concern and on its
consolidated shareholders' equity amounting to MYR25,191,597,
which is less than 50% of its total issued and paid-up share
capital of MYR61,183,000.


WELLI MULTI: CCM Approves Application for Time Extension
--------------------------------------------------------
The Companies Commission of Malaysia has granted Welli Multi
Corporation Berhad application for:

   -- further extension of time until October 31, 2008, to hold
      the company's 14th AGM pursuant to Section 143(2) of the
      Act;

   -- further extension of time until October 31, 2008, to present
      the Audited Financial Statements for the period ended
      March 31, 2007, at the 14th AGM pursuant to Section 169(2)
      of the Act; and

   -- extension of time until October 31, 2008, to present the
      Audited Financial Statements for the year ended March 31,
      2008, at the 14th AGM pursuant to Section 169(2) of the Act.

Welli Multi Corporation Berhad (WMCB) is an investment holding
company engaged in the provision of management services.  Its
subsidiaries include: Fourseason Foodstuff Industries (M) Sdn.
Bhd., which is engaged in the manufacture and distribution of all
kinds of foodstuff; Fourseason Trading Sdn. Bhd., which is
involved in the trading and distribution of foodstuff and toys;
Welli Edible Oil Sdn. Bhd., which is engaged in the processing of
copra and palm kernel, and trading of palm kernel oil, coconut
oil, palm kernel cake and copra cake; Welli Business Ventures Sdn.
Bhd., which is engaged in the importing, exporting, distribution
and general trading of flexible packaging, plastic sheet products,
plastic lighting diffuser, consumer products and health-related
food, and Welli Bio-Tech Sdn. Bhd., which is dormant.

                          *     *     *

Moore Stephens Chartered Accountants raised substantial doubt
about the ability of Welli Multi Corporation Berhad to continue as
a going concern after auditing the company's financial statements
for the year ended March 31, 2008.  The auditors cited these
factors:

   a) The plant and machinery of the group with a carrying amount
      of MYR33,001,438 was last revalued in 2004 using the "open
      market value on existing use" basis.  During the financial
      year, all of the group's oil mills discontinued their
      operations.  This is an indication that the plant and
      machinery could have been impaired ad may not realize its
      carrying amount.  In view of the tight cash flow of the
      group, no recent independent valuation of the plant and
      machinery was performed.  The auditors were unable to obtain
      sufficient appropriate  audit evidence to satisfy ourselves
      as to whether an impairment loss need to be made in the
      financial statements of the group.

   b) The group and the company incurred net losses of
      MYR51,386,733 and MYR8,322,366 respectively for the
      financial year ended March 31, 2008.  As at that date, the
      group's and the company's current liabilities exceeded their
      current assets by MYR175,640,659 and MYR8,575,952
      respectively.  The group and the company had a deficit in
      shareholders' equity of MYR99,366,945 and MYR7,673,479,
      respectively.



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

AIR NEW ZEALAND: Passengers Number Falls 1.8% in August
-------------------------------------------------------
Air New Zealand Ltd said that in August, the airline carried
952,000 passengers, down 1.8% on the same month last year.
Overall year-to-date capacity grew by 2.1% on the comparable
period last year.

The company said in the domestic market passenger numbers and load
factors for the month were down on last August.  This was the
result of increased competition and general softening of demand.
On an adjusted year-to-date basis Air New Zealand reduced capacity
by 1.2% in the domestic market.

In the Tasman / Pacific market, passenger numbers and load factors
were down.  This was also attributable to increased competition
and weaker demand.  Capacity increased by 2.4% as frequency and
gauge were adjusted on routes with stronger demand.

In the Long Haul market, passenger load factors remained
relatively high, at 81.9% despite an increase in capacity of 3.6%.
Air New Zealand continues to closely monitor the level of demand
and is proactively making schedule changes where necessary.

  -- Short Haul passenger load factors decreased by 2.7
     percentage points to 72.3%

  -- Domestic passenger load factor was down 1.4 percentage
     points to 70.5%

  -- Tasman / PI passenger load factor decreased by 3.1
     percentage points to 73.3%

  -- Long Haul passenger load factors decreased 0.8 of a
     percentage point to 81.9%

  -- Asia / Japan / UK passenger load factor was down 4.8
     percentage points to 79.6%

  -- North America / UK passenger load factor increased by
     2.3 percentage points to 83.7%

Group-wide yields for the year-to-date were up 7.3% on the
comparable period last financial year.  Short Haul and Long Haul
yields were up by 6.0% and 11.0% respectively. Removing the impact
of foreign exchange, group-wide yields were up 5.5%.

The 2008 financial year-to-date capacity and passenger numbers are
not directly comparable with the previous period.  This is due to
two less days being captured in the July 2008 operating statistics
compared to July 2007.  The company has made adjustments to the
variance calculations to make the figures comparable year on year.

                    Launches Masterton-Auckland
                         New Direct Service

Air New Zealand said it will launch a new direct service between
Masterton and Auckland from Monday, Feb. 16, 2009.

The company said the new route will be operated six days a week by
Eagle Air, a subsidiary of Air New Zealand, utilising a 19-seat
Beech 1900D aircraft.

Eagle Air General Manager Grant Kerr said he was thrilled to
expand the airline's regional operations into Masterton.

Mr. Kerr said he is expecting particularly strong interest for the
new service from business travellers throughout the Wairarapa.

"There are a number of private and public sector businesses in
Masterton that have strong connections in Auckland and elsewhere
on the New Zealand network," Mr. Kerr said.

"The new schedule has been designed primarily to meet the needs of
business customers, with a 7.05am departure from Masterton and an
early evening return service.  We will also be offering a service
departing Masterton on Friday evenings to suit customers looking
to spend the weekend in Auckland."

Mr. Kerr hopes the new service will stimulate tourism into the
Wairarapa - one of New Zealand's leading wine regions - by making
it even more accessible to leisure travellers.

"Wairarapa region is an extremely attractive destination for both
New Zealand and international travellers.  Customers wanting to
spend a weekend in wine country or attend events such as Toast
Martinborough will now have the advantage of being able to fly
into the region directly, rather than having to fly into
Wellington or Palmerston North and then travel by road.

Mr. Kerr said the new service will also benefit international
travellers by making it more convenient for them to connect to
flights from Auckland.

Masterton Mayor Garry Daniell welcomed Air New Zealand's move,
saying the improved links between Wairarapa and Auckland would
boost business and tourism within the region.

"This service is going to be great for Wairarapa, putting us even
more firmly on the map.  There's something for everyone here, be
it a family holiday or a weekend getaway with our award-winning
wines in mind.

"And the business community will certainly benefit from being able
to easily get in and out of Auckland in one day," Mr Daniell said.

Mr Kerr says Air New Zealand has been working very closely and
constructively with the Masterton District Council over the past
year and was appreciative of their strong support for establishing
a commercial air service into the region.

The company said lead-in online fares between Masterton and
Auckland begin from NZ$105 one way per person and will be
available for purchase on www.airnewzealand.co.nz from mid
October.

                       About Air New Zealand

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

                          *     *     *

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

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

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


BEAUTY ON: J.M. Gilbert Appointed as Liquidator
-----------------------------------------------
Pursuant to Section 255(2) of the Companies Act 1993, John Michael
Gilbert was appointed as liquidator of Beauty On Demand
International Limited on Aug. 25, 2008.

The liquidator can be reached at:

         J. M. Gilbert
         C & C Strategic Limited
         Private Bag 47927
         Ponsonby, Auckland
         Telephone: (09) 376 7506
         Facsimile: (09) 376 6441


BOTB SOUTH: Wind-Up Petition Hearing Set for November 21
--------------------------------------------------------
The High Court at Auckland will hold a hearing on Nov. 21, 2008,
at 10:45 a.m., to consider putting BOTB South Island Limited into
liquidation.

The application was filed on July 31, 2008, by Worldwide
Publishers Limited.

The plaintiff's address for service is at:

          Natalie Tabb
          35 Isobel Road
          Greenhithe, Auckland

Natalie Tabb is the plaintiff's solicitor.


D'CLADDINGMAN LTD: Liquidators Set November 27 as Claims Bar Date
-----------------------------------------------------------------
Pursuant to section 241(2)(c) of the Companies Act 1993, the High
Court has appointed Vivian Judith Fatupaito, insolvency
practitioner, and Colin Thomas McCloy, chartered accountant, both
of Auckland,  as liquidators of D'Claddingman Limited.

The liquidators set Nov. 27, 2008, as the last day for creditors
to file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Attn: Jamie Rihia
          PricewaterhouseCoopers,
          188 Quay Street (Private Bag 92162)
          Auckland
          Telephone: (09) 355 8000
          Facsimile: (09) 355 8013


KWALITY CONSTRUCTION: Proofs of Debt on November 27
---------------------------------------------------
Pursuant to section 241(2)(c) of the Companies Act 1993, the High
Court has appointed Vivian Judith Fatupaito, insolvency
practitioner, and Colin Thomas McCloy, chartered accountant, both
of Auckland,  as liquidators of Kwality Construction Limited.

The liquidators set Nov. 27, 2008, as the last day for creditors
to file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Attn: Jamie Rihia
          PricewaterhouseCoopers,
          188 Quay Street (Private Bag 92162)
          Auckland
          Telephone: (09) 355 8000
          Facsimile: (09) 355 8013


LAWN RENOVATORS: Commences Liquidation Proceedings
--------------------------------------------------
The High Court at Auckland convened a hearing on Sept. 24, 2008,
to consider an application putting The Lawn Renovators Limited
into liquidation.

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

The plaintiff's address for service is at:

Inland Revenue Department
          Legal and Technical Services
          5-7 Byron Avenue (PO Box 33150)
          Takapuna, Auckland
          Telephone: (09) 984 1514
          Facsimile: (09) 984 3116

Michael Kinlim Yan is the plaintiff's solicitor.


METROPOLITAN FUNERAL: Proofs of Debt on November 27
---------------------------------------------------
Pursuant to section 241(2)(c) of the Companies Act 1993, the High
Court has appointed Vivian Judith Fatupaito, insolvency
practitioner, and Colin Thomas McCloy, chartered accountant, both
of Auckland, as liquidators of  Metropolitan Funeral Homes
Limited.

The liquidators set Nov. 27, 2008, as the last day for creditors
to file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Attn: Jamie Rihia
          PricewaterhouseCoopers,
          188 Quay Street (Private Bag 92162)
          Auckland
          Telephone: (09) 355 8000
          Facsimile: (09) 355 8013


MVS LIMOUSINES: Commences Liquidation Proceedings
-------------------------------------------------
The High Court at Whangarei held a hearing on Sept. 15, 2008, to
consider an application putting MVS Limousines Limited into
liquidation.

The application was filed on June 16, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          5-7 Byron Avenue (PO Box 33150)
          Takapuna, Auckland
          Telephone: (09) 984 1514
          Facsimile: (09) 984 3116

Michael Kinlim Yan is the plaintiff's solicitor.


POLLY PECK: Placed Under Liquidation
------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Polly Peck Limited placed the company under
liquidation and appointed Roderick Thomas McKenzie and Lyn M.
Carey, of McKenzie & Partners Limited, Chartered Accountants,
Palmerston North, as liquidators.

The liquidators can be reached at:

          Lyn M. Carey
          McKenzie & Partners Limited
          Level 1, 484 Main Street (PO Box 12014)
          Palmerston North
          Telephone: (06) 354 9639
          Facsimile: (06) 356 2028


SOUTH HEAD: Commences Liquidation Proceedings
----------------------------------------------
The High Court at Auckland held a hearing on Sept. 11, 2008, to
consider an application putting South Head Ranch Limited into
liquidation.

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

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          5-7 Byron Avenue (PO Box 33150)
          Takapuna, Auckland
          Telephone: (09) 984 1514
          Facsimile: (09) 984 3116

Michael Kinlim Yan is the plaintiff's solicitor.


TWA LIMITED: Parsons and Kenealy Appointed as Liquidators
----------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Dennis
Clifford Parsons and Katherine Louise Kenealy were appointed
liquidators of TWA Limited on Aug. 27, 2008.

The liquidators can be reached at:

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



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

* PHILLIPPINES: Foreign Debt Increases to US$54.8BB as of End-June
------------------------------------------------------------------
Outstanding Philippine external debt approved and/or registered by
the Bangko Sentral ng Pilipinas stood at US$54.8 billion as of
end-June 2008, higher than the end-March 2008 level of
US$54.6 billion and the US$53.0 billion recorded as of end-June
2007.

Bangko Sentral Governor Tetangco said that, in general, the
country's external debt ratios continued to improve.

The external debt ratio, or total outstanding debt as a percentage
of aggregate output or GNP 1, declined to 30.9 percent, from 35.0
percent in December 2007 and 37.9 percent in June 2007.  In terms
of GDP1, the external debt ratio also improved to 33.8 percent,
from 38.1 percent in December 2007 and 41.2 percent in June 2007.
The declining ratio indicates the country's improving capacity to
service its maturing foreign obligations.

The external debt service ratio (DSR) or the percentage of total
principal and interest payments to total exports of goods and
receipts from services and income (which include remittances of
overseas Filipino workers) was estimated at 10.6 percent during
the second quarter of 2008, down from 10.8 percent during the same
period last year.   The DSR has remained well below the 20 to 25
percent international benchmark, indicating that the country has
sufficient foreign exchange earnings to service maturing principal
and interest payments during the current period.

Gross international reserves (GIR), which continued to reach peak
levels, stood at US$36.7 billion as of end-June 2008.  The amount
is equivalent to 4.2 times (from 4.4 times as of end-June 2007)
the level of short-term debt based on the original maturity
concept and 2.9 times (from 2.6 times) under the remaining
maturity concept.  Short-term accounts under the latter category
include obligations with original maturities of one year or less
plus amortizations on medium and long-term accounts falling due
within the next 12 months, i.e., from July 2008 to June 2009.

   Changes in External Debt Stock

The slight increase in the debt stock during the second quarter
may be attributed to increased holdings of Philippine debt papers
by non-residents (US$46 million) and upward audit adjustments
(US$91 million).  The availment of foreign borrowings
(US$1.2 billion) was almost completely offset by downward foreign
exchange revaluation adjustments (US$1.2 billion) due to the
strengthening of the U.S. dollar against the Japanese Yen.
Prepayments during the period totaled US$513 million, of which
US$509 million pertained to maturities in 2009 and beyond.

Year-on-year, the debt stock rose by an aggregate of US$1.8
billion as a result of: (a) upward foreign exchange revaluation
adjustments (US$2.8 billion); (b) increased holdings of Philippine
debt papers by non-residents (US$385 million); and (c) upward
audit adjustments (US$304 million), negating net principal
repayments of US$1.7 billion.  Prepayments on external debt
accounts during the 12-month period ending June 2008 totaled
US$1.2 billion, of which US$1.1 billion pertained to obligations
maturing beyond the current year.

   External Debt Profile

The maturity profile of the country's external debt remained
predominantly medium to long term, which accounted for 84 percent
of the total.  These loans, with original tenors of more than one
year, had a weighted average maturity of 20.0 years, longer than
the 18.9 years recorded at end-2007.  Public sector borrowings had
an average term of 21.7 years, much longer than the private
sector's 11.8 years.  Short-term external debt represented
16 percent of the total.

Total consolidated public sector external debt declined to
US$38.7 billion from US$40.1 billion last March 2008; its share to
total also dropped to 70.6 percent, from 73.5 percent.

In contrast, private sector external debt increased by more than
US$1.6 billion to US$16.1 billion, from US$14.5 billion in March;
its share to total also increased to 29.4 percent, from 26.5
percent.

Official creditors (consisting of multilateral institutions, such
as the Asian Development Bank and the World Bank, and bilateral
creditors mainly the Japan Bank for International Cooperation)
accounted for 41.6 percent of the country's total external debt,
followed by foreign holders of bonds and notes at 33.0 percent,
and foreign banks and other financial institutions, 16.5 percent.
The rest of the creditors (8.9 percent) were mostly foreign
suppliers.

U.S. dollar-denominated accounts comprised more than half of the
debt stock (53.1 percent) while Japanese yen-denominated accounts
comprised 26.4 percent.  Multi-currency loans from the Asian
Development Bank and the World Bank comprised 9.4 percent, and the
rest (11.1 percent) were in 16 other currencies.



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

UNITED TEST: S&P Places B+/BB- Ratings on CreditWatch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'B+' corporate
credit rating on United Test and Assembly Center Ltd. (UTAC) on
CreditWatch with negative implications.  At the same time, S&P
placed its 'BB-' issue ratings on a US$625 million senior secured
facility and a US$150 million revolving credit facility, both
issued by a special vehicle company Global A&T Electronics Ltd.,
on CreditWatch with negative implications. The recovery rating is
'2'.

"The CreditWatch placements reflect UTAC's weaker-than-expected
financial performance for the six months ended June 2008 and a
challenging short to medium-term outlook for the outsourced
semiconductor assembly and test services and memory segments,"
said S&P's credit analyst Wee Khim Loy.

In the first half of fiscal 2008, UTAC reported gross revenue of
about US$357 million and EBITDA of about US$112 million.  These
had been adversely affected by the weak performance of the memory
segment, offset by some improvement in the mixed-signal business,
slackening demand conditions in the U.S., and exchange-rate
movements.  Based on the company's general guidance, S&P
understands that its performance has modestly improved over the
past three months, but this is unlikely to provide adequate
momentum for UTAC's credit metrics to improve by the end of fiscal
2008.  The softening demand conditions, historical trends of lower
outsourcing activity in weaker industry cycles, and the
significantly weak environment for memory-based applications
support this expectation.



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

* TAIWAN: Domestic Economy Remains Sound, Pres. Ma Ying-Jeou Says
-----------------------------------------------------------------
Taiwan President Ma Ying-jeou said the domestic economy remained
sound, and that Taiwan has the resources to ride out the ongoing
global financial crisis which is rocking stock markets worldwide,
Reuters reports.

"Taiwan's economic fundamentals are still good.  We have the means
to weather this global financial crisis," Reuters cited Mr. Ma as
saying.

According to the report, in anticipation of the sell-off, Taiwan's
top financial regulator said it would place tighter limits on the
short-selling of stocks in its latest effort to bolster the
market.



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

* Asian Stocks Drop After Senate Passes US$700BB Bail-Out Plan
--------------------------------------------------------------
Automakers and Commodity producers led the fall of stocks in the
Asian market Thursday, October 2, following the drop of car sales
and on concern the U.S. Senate's approval of a US$700 billion
rescue package won't avert a recession, Bloomberg News reports.

According to the report, Toyota Motor Corp. and Honda Motor Co.,
slumped more than 4% after monthly U.S. vehicle sales tumbled 30%
on waning demand; BHP Billiton Ltd. fell after Merrill Lynch & Co.
said iron-ore prices will rise less than forecast on faltering
demand for steel; and Mitsubishi UFJ Financial Group Inc. dropped
more than 1%.  The rescue plan now goes to the House of
Representatives, which rejected an earlier version of the measure,
the report says.

"There seems to be a pessimistic view that the passage may not
cure all problems.  Investors are selling stocks on the news,
which is quite typical in a bear market like this" Bloomberg News
cited Cho Min Keon, a fund manager at Kyobo AXA Investment
Managers in Seoul, which manages about US$578 million, as saying.

The MSCI Asia Pacific Index, the report says, dropped 1.4% to
107.49 as of 11:15 a.m. in Tokyo, extending a loss of 0.6%
immediately prior to the Senate vote, while Japan's Nikkei 225
Stock Average declined 1.1% to 11,242.65, and Futures on the
Standard & Poor's 500 Index fell 0.7%.

The S&P 500 dropped 0.5% on October 1 to 1,161.06. U.S. stocks
declined after the Institute for Supply Management's factory index
slid to the lowest level since October 2001, overshadowing Warren
Buffett's US$3 billion investment in General Electric Co.,
Bloomberg News notes.

The report relates that Toyota slid 3.8% to JPY4,290, while Honda
declined 4.5% to JPY3,000, while Nissan Motor Co. dropped 3.9% to
JPY669.

Moreover, the report points out, U.S. car sales for Asia-based
brands fell 30%  in September, led by Toyota's 32% tumble, Honda's
24% drop and a 37% decrease for Nissan.  The decline in auto
markets is accelerating as the global financial crisis weakens
demand, and high steel and energy prices increase costs, Toyota
Executive Vice President Mitsuo Kinoshita said yesterday, the
report adds.


* Only China Capable of Supporting Growth In Asia, S&P Reports
--------------------------------------------------------------
Of the three East Asian major economies -- Japan, South Korea, and
China -- only China has the muscles to push short-term growth
domestically, said Standard & Poor's Ratings Services.  Japan
and South Korea continue to grapple with various difficulties in
trying to rev up their sluggish economic engines into higher gear.

In recent separate reports on the three countries, S&P said China
will steer its economic policy toward supporting growth, despite
some anticipated hurdles, while Japan and South Korea both face
political stalemates, high oil and food prices, decelerating
growth, among other issues.

"China is counting on its strong domestic demand to pull its
economy ahead this year and next," said S&P's credit analyst Kim
Eng Tan, in a report titled "China: Domestic Muscles Push
Short-Term Growth," published Sept. 26, 2008, on RatingsDirect.
"We expect tight labor market conditions, together with the
implementation of the new Labor Contract law this year, to keep
wage growth strong and lower uncertainties faced by employees."

"These factors are expected to offset the impact of still-high
inflation in China, and to keep consumer spending growth strong at
least until early 2009," Mr. Tan said.  On the other hand,
investment growth is expected to slow, and that could spur the
long-planned introduction of a value-added tax change in 2009, he
added.

Japan, caught in its web of political stalemate and sputtering
growth, has little potential for economic improvement in the near
term, said credit analyst Takahira Ogawa, in a recent report
titled "Political Stalemate And Weak Economic Growth Trap Japan In
Stagnancy," published on RatingsDirect.

Mr. Ogawa said Japan, the second-largest economy in the world,
will have weak overall growth prospects in 2008 and 2008.  Japan's
GDP growth for fiscal 2008 ending March 31, 2009, is expected to
be 0.7%, which is lower than S&P's earlier forecast of 1.2%.

Korea's growth is expected to be slower at 4.3% for 2008, from 5%
in 2007, beset by high crude oil and food prices and political
problems.  Mr. Ogawa noted that Korea's political difficulties
were triggered by the public outrage to the decision to resume
importing U.S. beef.

"The government announced a cut in corporate and individual income
taxes for the next five years to stimulate the economy," he said.
"To mitigate the revenue impact from tax cuts, it plans to enforce
a wider range of tax coverage, which is bound to face opposition
from some quarters."


                         *********

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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