TCRAP_Public/081003.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Friday, October 3, 2008, Vol. 11, No. 197

                            Headlines

A U S T R A L I A

A.B.C. LEARNING: Faces Court Action Over Understaffing Issue
ACE COMPUTER: To Declare Dividend on October 7
AEC – SERVICES: Members' Opt to Liquidate Business
ALLCO HIT: Sells Alleasing Business to CHAMP for AU$146 Million
AVONCORE SERVICES: To Declare Dividend on October 8

B T G WORKS: Supreme Court Enters Wind-Up Order
BABCOCK & BROWN: Unit Receives AU$170 Mil. Capital Injection
BABCOCK & BROWN: Confirms Recapitalization of B&B Communities
DAVID EMERSON: Placed Under Voluntary Liquidation
FRL CONTRACTING: To Declare Dividend on October 10

FORTESCUE METALS: JPMorgan Cuts Company's Price Target by 48%
INTERNATIONAL FINANCE: Directors Sentenced Over Debenture Scheme
LINGBAN HOLDINGS: To Declare Dividend on October 19
NARRAMA MULTI: Federal Court Enters Wind-Up Order
TERRITORY RESOURCES: Posts AU$48.5 Mil. Net Loss for FY2008

TRANS NATIONAL: Supreme Court Enters Wind-Up Order
WOODSPOINT PTY: To Declare Dividend on October 23
* AUSTRALIA: S&P Sees Negative Outlook for Materials & Energy Biz


C H I N A

PACIFICNET INC: Case Dismissed After Accord With Bondholders
SHENZHEN DEV'T BANK: Scraps Placement Deal With Baosteel Group
SHIMAO PROPERTY: Cuts Sales Target by 20% on Weak Market Forecast


H O N G K O N G

NEW STEP: Wind-Up Petition Hearing Set for October 22
THE NEW CHINA: Annual Meetings Set for October 10
THE NEW CHINA: Members and Creditors to Meet on October 10
THE NEW CHINA: Annual Meetings Slated for October 10
THE NEW CHINA: Members and Creditors to Meet on October 10


I N D I A

GENERAL MOTORS: Delphi Services & Restructuring Deals Approved
ICICI BANK: To Continue Halt on Retail Loan Business
LEHMAN BROTHERS: Acquired Brokerage Firm Brics Sues Bank
* CRISIL: India Automobile Sector Slowdown to Last Until 2009-10


J A P A N

C.L.E.A.R. PLC: S&P Places 9 Junk Ratings on CreditWatch Negative
DELPHI CORP: Court OKs Services and Restructuring Deals with GM
DELPHI CORP: Gets Court's Nod to Modify Employee and Union Deals
FORD MOTOR: Repays US$1.5BB in Debt, Faces 3 Payment Obligations
NOMURA HOLDINGS: To Establish Stock Broking Company in Malaysia

SANYO ELECTRIC: Ties Up With Nippon Oil to Set Up Solar Cell JV


K O R E A

HYUNDAI MOTOR: Sept. Sales Up 0.6% On High Overseas Demand
SSANGYONG MOTOR: Vehicle Sales Decline 6.5% in September


M A L A Y S I A

* MALAYSIA: Political Crisis Cripples Economy and Investment


N E W  Z E A L A N D

ALCHO HOLDINGS: Shareholders Placed Company Under Liquidation
AMALGAMATED WOOL: Shareholders Appointed Naylor as Liquidator
ARAMIS HOLDINGS: Liquidators Set November 3 as Claims Bar Date
BENJAMIN HOMES: Liquidators Set November 3 as Claims Bar Date
CENTRAL OTAGO: Goes Into Receivership

MCLEAN TOWER: Proofs of Debt Due on November 1
NORTH SHORE: Liquidators Set November 3 as Claims Filing Deadline
OPTIMUM PROPERTY: Commences Liquidation Proceedings
VISUALEYES DIGITAL: Commences Liquidation Proceedings
XELOR & RALLOD: Shareholders Appointed Merlo as Liquidator

ZHAN HOLDINGS: Commences Liquidation Proceedings
* NEW ZEALAND: Insolvencies Increased in Last Five Years


P H I L I P P I N E S

* PHILIPPINES: DBCC Lowers Growth Projection for 2008 and 2009
* PHILIPPINES: Domestic Liquidity Up by 4.1% in July
* PHILIPPINES: Posts 23.9% Growth of Outstanding Loans of Banks
* PHILIPPINES: BSP Releases 2007 Int'l Investment Position


S I N G A P O R E

STAM SHIPPING: Creditors' Proofs of Debt Due on October 28
TRISTON INVESTMENT: Creditors' Proofs of Debt Due on October 28
VANDA PRESS: Court Enters Wind-Up Order
ZIGI ZAGI: Court Enters Wind-Up Order


X X X X X X X X

* Large Companies with Insolvent Balance Sheets


                         - - - - -


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

A.B.C. LEARNING: Faces Court Action Over Understaffing Issue
------------------------------------------------------------
Liquor, Hospitality and Miscellaneous Union NSW is taking
A.B.C. Learning Centres Limited to the Industrial Relations Court
(IRC) over understaffing concerns, ABC News reports.

According to ABC News, workers at ABC childcare centers in
Newcastle and western Sydney say reductions in hours for part-time
staff will affect the quality of childcare.

Ten examples of childcare workers who had hours cut was examined
at a commission hearing in Sydney late yesterday, Oct. 2, 2008,
AAP reports citing Rebecca Reilly, Liquor, Hospitality and
Miscellaneous Union NSW vice president.

"Some have had their hours reduced from 37 and a half hours to 32
hours per week," New.com.au cites Ms. Reilly as saying.

"The issue we have is we don't believe they have justified why
they have reduced staff hours.

"If there is a massive drop in enrollments we would see the
rationale, but if the cuts are having an impact on the quality of
care staff are able to provide to children in ABC centers, there
is a problem."

Ms. Reilly said the union was extremely concerned about the
financial situation of ABC Learning, and the impact this was
having on childcare professionals.

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 3, 2008, ABC requested on Aug. 21, 2008, a trading halt of
its securities from the Australian Stock Exchange to finalize and
provide further guidance relating to its full year results and
prior period adjustments arising out of a re-assessment of
accounting treatments.

The TCR-AP reported on Aug. 1, 2008, that ABC expected a AU$437
million net loss before tax as at July 31, 2008.  ABC also said
that in the current circumstances, the company's Board has
determined not to declare a dividend for the second half of the
2008 financial year.

As reported by the Troubled Company Reporter-Asia Pacific, the
company's Sydney trading on Feb. 26, 2008, plunged 43% after a
slump in earnings raised concerns it may struggle to repay debt.
The drop to AU$2.14 triggered margin calls on stakes held by
some directors.

Since then, the company has been working to sell some its assets
to pay off debts.  The TCR-AP reported on April 23, 2008, that
A.B.C. Learning signed a definitive agreement with Morgan Stanley
Private Equity for the sale of a 60% interest in its US business,
Learning Care Group Inc., in a transaction that values 100% of the
US business at US$700 million.

The transaction was expected to reduce ABC's net debt by AU$485
million, with an additional US$30 million payable shortly after
June 30, 2009 by way of an earn-out.  In addition to the net debt
reduction, ABC will retain US$185 million of ordinary equity and
US$20 million of preferred equity in the US joint venture.  ABC
has a call option to buy back Morgan Stanley Private Equity's
interest three years after closing.

On Sept. 3, 2008, the TCR-AP reported that ABC Learning Centres
completed the sale of Busy Bees Childcare Vouchers Limited, its UK
voucher business, for GBP90 million to Computershare Limited.
Proceeds from the transaction will be used to reduce debt under
the company's syndicated bank facility agreement.

                     About ABC Learning

A.B.C. Learning Centres Limited (ASX: ABS) --
http://www.childcare.com.au/-- provides childcare services and
education.  The company operates in Australia, New Zealand, the
United States and the United Kingdom.  The company's
subsidiaries include A.B.C. Developmental Learning Centres Pty
Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier
Early Learning Centres Pty Ltd, A.B.C.  Developmental Learning
Centres (NZ) Ltd., A.B.C. New Ideas Pty. Ltd., A.B.C. Land
Holdings (NZ) Limited and Child Care Centres Australia Ltd.

On September 25, 2006, the company acquired Hutchison Child Care
Services Ltd.  On September 7, 2006, it acquired The Children's
Courtyard LLP.  On December 18, 2006, it acquired Busy Bees
Group Ltd. On January 26, 2007, it acquired La Petite Holdings
Inc.  On February 2, 2007, it acquired Forward Steps Holdings
Ltd.  On March 23, 2007, it acquired Children's Gardens LLP. In
September 2007, the company purchased the Nursery division
(Leapfrog Nurseries) from Nord Anglia Education PLC.


ACE COMPUTER: To Declare Dividend on October 7
----------------------------------------------
Ace Computer Consulting Pty Ltd will declare dividend on Oct. 7,
2008.

Creditors who were unable to prove their debts on Sept. 7, 2008,
are excluded from the dividend distribution.

The company's liquidator is:

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


AEC – SERVICES: Members' Opt to Liquidate Business
--------------------------------------------------
AEC – Services Pty Limited fka Accounting Express Centre (NSW) Pty
Limited's members agreed on Aug. 19, 2008, to voluntarily
liquidate the company's business.  P. Ngan was appointed to
facilitate the sale of its assets.

The liquidator can be reached at:

          P. Ngan
          Ngan & Co
          Chartered Accountants
          Level 5, 49 Market Street
          Sydney NSW 2000


ALLCO HIT: Sells Alleasing Business to CHAMP for AU$146 Million
---------------------------------------------------------------
Allco HIT Limited's Allco Managed Investment Funds Limited
(AMIFL), the responsible entity of the Allco Hybrid Investment
Trust (HIT) and the Alleasing Trust (Alleasing Trust), has advised
that it has been participating in negotiations regarding the
possible sale of the Alleasing business.

AMIFL as responsible entity of the Alleasing Trust and the CHAMP
II Funds advised by CHAMP Private Equity (CHAMP) have agreed to
the sale and purchase of all the shares in Alleasing Pty Ltd and
the assignment of certain loans for a total consideration of
approximately AU$146 million (Transaction).

The final consideration payable will be subject to certain post
completion adjustments.  These adjustments will be made on the
basis of an agreed target position for net working capital,
indebtedness and the residual value of leased assets of Alleasing
as at completion of the Transaction.  AU$20 million of the
purchase price (Deferred Amount) will be deferred until 18 months
after completion, and payment will be subject to any warranty or
other claims.  The Transaction follows a competitive sale process
that was conducted for the Alleasing business and advised by
Deloitte Corporate Finance.

On completion of the Transaction, and subject to the company's
estimate of both the post completion adjustments and balances
payable at completion, the consideration will be paid (net of the
Deferred Amount and estimated sale costs) as follows:

   -- payment in respect of all amounts owed under
      Alleasing’s Senior Facilities;

   -- AU$49.9 million in respect of the amounts owed under
      Alleasing’s Mezzanine Facilities, by the Alleasing
      Trust in responsible entity fees to AMIFL and to
      repurchase certain lease receivables of the Alleasing
      business co-owned by an associate of Allco Finance
      Group Limited (AFG); and

   -- AU$54.6 million to the Alleasing Trust in relation to
      the purchase of the shares in Alleasing Pty Limited
      and amounts outstanding under intercompany loans.

As disclosed in the HIT Preliminary Final Report for the year
ended June 30, 2008, because of previous undertakings from Allco
Finance Group to provide financial support to Alleasing Trust and
Alleasing, the directors of AMIFL as responsible entity of HIT had
commenced negotiations with Allco Finance Group for the allocation
of an amount from the proceeds of any sale of Alleasing to the
partial repayment of principal amounts on the preference units
issued by the Alleasing Trust to HIT (Preference Units).

The independent directors of AMIFL have considered proposals from
Allco Finance Group, taken independent advice and have reached an
agreement on the allocation of the proceeds of the Transaction to
be recommended to Alleasing Hybrid holders.

The agreed allocation is for the first AU$65 million of proceeds
(after deducting sale costs and the costs and repayments to
external lenders associated with Alleasing’s Senior Facilities) to
be applied to redeem the Alleasing Preference Units held by
HIT. The total estimated payment to Allco Finance Group in
settlement of all exposure to Alleasing is AU$59.4 million,
subject to post completion adjustments and any warranty or other
claim.

The Deferred Amount, less any warranty or other claims deducted,
will then be shared between AMIFL and Allco Finance Group in the
same proportion that the post completion proceeds are allocated
between the parties.

HIT proposes to use those proceeds to redeem and repurchase the
Alleasing Hybrid stapled securities (ASX: AHUG) prior to the
scheduled maturity of those securities of Aug. 17, 2009, for a
total amount of approximately AU$50 per Alleasing Hybrid (received
in two instalments and subject to warranty or other claims).

The redemption and repurchase of the Alleasing Hybrids and
completion of the Transaction is conditional upon Alleasing Hybrid
holder approval.  An Extraordinary General Meeting is intended to
be held in November 2008 and will allow Alleasing Hybrid holders
to consider the early redemption and repurchase of the Alleasing
Hybrids for approximately AU$50 per Alleasing Hybrid (received in
two instalments and subject to warranty or other claims) and the
release of guarantees and security granted by HIT, Alleasing
Trust, Alleasing Pty Limited and certain of its subsidiaries
in respect of the Alleasing Hybrids (AHUG Proposal).

Completion of the Transaction is subject to a number of additional
conditions, some of which are outside of AMIFL’s or CHAMP’s
control (including in relation to financing, regulatory approvals
and consents for change of control).  To the extent that any
condition cannot be satisfied or waived, the transaction may not
complete.

If the Proposal is approved, and provided completion of the
Transaction takes place, Alleasing Hybrid holders will receive
payments in two instalments.  The allocation between these
instalments is subject to the post completion adjustments
and balances payable at completion.  The company estimates that
the two instalments will be:

   -- a first instalment of approximately AU$41.97 per
      Alleasing Hybrid (which is anticipated to be paid within
      2 months of completion of the Transaction); and

   -- a second instalment of approximately $8.03 per
      Alleasing Hybrid after final payment of the Deferred
      Amount subject to any warranty or other claims.

Completion of the Transaction is currently scheduled to occur on
Nov. 30, 2008.

                         About Allco HIT

Allco HIT Limited (ASX:AHI)-- http://www.allcohit.com.au/ -- is
an Australia-based diversified financial services company. Allco
HIT owns and operates a diversified portfolio of lending
businesses that provide asset financing and property related
lending services to small to medium enterprises and high net worth
individuals in Australia and the Asia Pacific region (Target
Sector).  It also operates an investment portfolio of mezzanine
loans specifically in the asset and equipment finance, property
finance and financial asset sectors. On August 20, 2008, the
company completed the disposal of Momentum Investment Finance Pty
Ltd (Momentum), a specialist financier providing loans to
investors with a focus on timber and agricultural based managed
investment schemes.  AHI is managed by Allco Funds Management
Limited, a wholly owned subsidiary of Allco Finance Group Limited
(AFG).

                    About Allco Finance

Allco Finance Group Ltd. (ASX: AFG) -- http://www.allco.com.au/
-- is an integrated global financial services business,
specializing in asset origination, funds creation and funds
management.  The company is a fund manager of alternative assets
in its core asset classes, which include aviation, rail,
shipping, infrastructure, property, private equity and financial
assets.  Its primary focus is on commercial property,
predominately completed office buildings and select development
opportunities.  It also purchases new and existing commercial
passenger and cargo aircraft for lease to commercial airlines.
In March 2007, Allco HIT Limited acquired Momentum Investment
Finance Pty Limited, Allco Financial Services and International
Mezzanine Funds Management (Australia) Limited.  The company is
a vendor of Momentum Investment Finance Pty Limited and Allco
Financial Services.  In July 2007, it acquired Allco Equity
Partners Ltd.  In December 2007, it completed the acquisition of
the remaining 79.6% stake of Rubicon Holdings(Aust) Limited.

                       *     *     *

Published reports said that Allco is in the brink of insolvency
and is currently negotiating a new business plan that will avoid
putting its operations in the hands of administrators.

Allco disclosed a Net Loss After Tax of AU$1,731.6 million for the
12 months to June 30, 2008.  The company said this is consistent
with an Australian Stock Exchange (ASX) announcement made on
May  1, 2008, where Allco advised an anticipated loss of in excess
on AU$1.5 billion.  The result follows a critical review
of asset values across the business and primarily reflects non-
cash changes.

The Group was heavily impacted by the deterioration in the
financial markets and the resultant loss of value in recently
acquired businesses with non-cash impairments for goodwill,
management rights, loans and equity accounted investments.


AVONCORE SERVICES: To Declare Dividend on October 8
---------------------------------------------------
Avoncore Services Pty Ltd 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:

          Nick Combis
          Vincents Chartered Accountants
          Level 27, 239 George Street
          Brisbane QLD 4000
          Telephone: (07) 3854 4555
          Facsimile: (07) 3236 2452


B T G WORKS: Supreme Court Enters Wind-Up Order
-----------------------------------------------
On Aug. 14, 2008, the Supreme Court of Australia entered an order
to have B T G Works 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
          Chartered Accountants
          Level 1, 103-105 Northbourne Avenue
          Canberra ACT 2601
          Telephone: (02) 6247 5988
          Facsimile: (02) 6262 8633


BABCOCK & BROWN: Unit Receives AU$170 Mil. Capital Injection
------------------------------------------------------------
Babcock & Brown Ltd. (B&B)'s Babcock & Brown Communities Group
(BBC) disclosed that it has entered into an Implementation
Agreement with Lend Lease Corporation Limited in relation to a
proposed recapitalisation of BBC.

As a result of the proposal, the company said Lend Lease will
become BBC’s strategic securityholder with an approximate interest
of 41%.  Lend Lease has separately entered into agreements with
Babcock & Brown Ltd to acquire the BBC management rights and B&B’s
interest in BBC.

              Summary of the Lend Lease Proposal

   1. Capital raising: Cash injection of AU$170 million
      through the issue of 250m new stapled securities at
      AU$0.68 per stapled security to Lend Lease.

   2. Agreement with Babcock & Brown: Lend Lease has agreed
      to purchase the BBC management rights from B&B for
      AU$17.5 million and to acquire the 12.5% interest in
      BBC held by B&B.

   3. Acquisition of villages: BBC has agreed in principle
      to acquire seven retirement villages and an aged care
      facility from Lend Lease for circa AU$133.4 million to
      be funded through the issue of AU$120 million 5-year
      redeemable convertible notes and AU$13.4 million cash.

The combined effect of the above new issue of stapled securities
and acquisition will result in Lend Lease holding approximately
41% of the issued securities of BBC.

                    Transaction Rationale

On June 19, 2008, BBC commenced a strategic review designed to
reduce the value gap between the underlying assets of BBC and its
securities’ trading price.  The outcomes of the review identified
the need to reduce debt and implement capital management
initiatives.  The Proposal achieves these outcomes and positions
BBC for future growth in the medium to long term.

The capital injection of AU$170 million will be partially used to
reduce the debt of BBC and the acquisition of the villages will
allow BBC to strengthen its retirement living portfolio and reduce
overall gearing levels.  The Proposal will also enhance BBC’s
ability to execute its development pipeline by having a
financially strong and proven development manager in Lend Lease.
The Proposal provides BBC securityholders with the opportunity to
maintain an investment in a listed vehicle which is well
capitalised, able to recognise value from its development pipeline
and well positioned for further industry consolidation and growth.

The Proposal Key elements:

   1. Capital Raising

      BBC will issue AU$170 million of new equity at AU$0.68
      per security which represents a 66% premium to the
      3 month VWAP.  BBC will also issue $13.4m in convertible
      loan notes to Lend Lease.

      The funding will be provided in two tranches, the first
      tranche of AU$37.8 million is expected to be completed
      by Oct. 10, 2008.  The second tranche consisting of the
      remaining funds of AU$145.6 million will be completed
      following the satisfaction of several conditions detailed
      below.

      Following the issue of new equity and Lend Lease
      acquiring B&B's 12.5% stake, it will hold an approximate
      interest of 41% in BBC.

   2. Agreement with Babcock & Brown

      Lend Lease will acquire the management rights of BBC
      for $17.5 million and replace B&B as the manager of BBC.
      Lend Lease will be responsible for investing and managing
      the portfolio of assets owned by BBC going forward.

      Lend Lease has also agreed to purchase B&B’s 12.5% stake
      in BBC at an average price of $0.58 cents per stapled
      security.  B&B’s stake will be acquired by Lend Lease
      in two equal tranches at $0.61 cents per stapled security
      and AU$0.55 cents per stapled security respectively.

      As part of the Proposal, BBC will change its name
      to reflect that B&B will no longer be involved in the
      management of BBC.

   3. Acquisition of villages

      BBC has agreed in principle with Lend Lease to expand
      its existing retirement portfolio through the potential
      acquisition of seven existing Lend Lease villages across
      metropolitan Sydney and Melbourne representing 1,154
      retirement units and 43 aged care beds.

      Total consideration payable to Lend Lease of circa
      AU$133.4 million will be funded through the issue of
      AU$120.0 million 5-year redeemable convertible notes
      and AU$13.4 million in cash.  The convertible notes will
      have a conversion price of $0.68 per security (if not
      redeemed for cash).

      This acquisition is subject to BBC securityholder
      approval after due diligence by BBC and receipt of an
      Independent Expert’s Report.

                    Independent Directors’
                        Recommendation

The Board of BBC established a committee consisting of the
Independent Directors, Judith Sloan, Andrew Love and Graeme
Martin, ("the Committee") to consider the various proposals
received by BBC through the price discovery process.

The Committee:

   -- considers the Proposal is in the best interests of
      BBC securityholders;


   -- recommends that BBC securityholders approve the
      Proposal, subject to not receiving a superior proposal
      and an Independent Expert confirming that the relevant
      transactions are fair and reasonable to BBC
      securityholders; and

   -- intends to vote any BBC securities they control in favour
      of the Proposal, subject to not receiving a superior
      proposal and an Independent Expert confirming that the
      relevant transactions are fair and reasonable to BBC
      securityholders.

Chairman of the Committee, Andrew Love said, "We are delighted to
welcome Lend Lease as BBC’s new manager and strategic investor.
Lend Lease has an excellent track record in property management
and development including their senior living business, Retirement
by Design.  We look forward to working with the team at Lend Lease
to expand and strengthen our high-quality portfolio and position
in the senior living sector.

In terms of the Proposal, Mr. Love said, "The Committee’s primary
concern has always been to act in the best interests of all BBC
securityholders, with a view to maximising value.  The Committee
has ensured that the price discovery process managed by ABN AMRO
was conducted with integrity at all times and that strict
governance protocols were applied.  Given current market
conditions, the Committee believes that the Proposal is the most
effective way of achieving our primary objective, that is to
reduce the value gap between the underlying assets of BBC and its
recent security price.  The Board is in full support of the
Proposal."

In addition Mr. Love said "We would also like to thank Babcock &
Brown for their co-operation and support in achieving this
outcome."

                          BBC Board

Subject to BBC securityholders approving the relevant
transactions, it is the intention to have a Board comprising two
Lend Lease nominees and three independent directors.

                        Consents and Approvals

Securityholder approval will be sought to the Proposal at a
general meeting to be convened no later than Dec.  12, 2008.
Securityholders will be asked to approve the various resolutions
in connection with the issuance and acquisition of stapled
securities and the acquisition of the villages from Lend Lease.

There are various steps to completion of the Proposal including:

   * obtaining necessary consents required under BBC’s
     finance arrangements;

   * B&B transferring its management rights to Lend Lease
     for AU$17.5 million;

   * Lend Lease acquiring 42.5m BBC stapled securities from
     B&B at $0.61 per stapled security (50% of B&B's stake
     in BBC);

   * termination of the previously announced arrangements
     for the internalisation of BBC's management;

   * BBC securityholder approval for:

     -- Lend Lease acquiring 42.5m BBC stapled securities
        from B&B at $0.55 per stapled security (which
        represents the remainder of B&B's stake in BBC);

     -- the issue of the second tranche of new stapled
        securities to Lend Lease; and

     -- the acquisition of the villages from Lend Lease

   * no material acquisitions, disposal or expenditure and
     no material adverse change to BBC's business occurring
     prior to completion; and

   * Lend Lease obtaining any necessary NZ Overseas Investment
     Office approvals.

The acquisition by BBC of the villages from Lend Lease is for a
purchase price of circa AU$133.4 million (which will be satisfied
by a cash payment of $13.4m and the issue of 5-year redeemable
convertible notes with a total value of AU$120.0m) is subject to:

   -- satisfactory due diligence conducted by BBC;

   -- an Independent Expert report confirming that the
      acquisition is fair and reasonable to BBC securityholders;

   -- BBC securityholders approving the issue of the convertible
      notes to fund the acquisition; and

   -- finalising formal documentation recording the acquisition
      and the convertible note terms.

BBC has engaged Deloitte as Independent Expert in relation to
assessing the acquisition of the villages from Lend Lease and the
issue of new stapled securities to Lend Lease.

                 Prime Trust Proportional Bid

In light of the Proposal, the Committee recommends that
securityholders REJECT the conditional 40% proportional scrip
offer from Prime Trust.  BBC will shortly distribute a Target
Statement in response to Prime Trust’s offer detailing the basis
of this recommendation.

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 9, 2008, B&B Communities said it received an unsolicited
offer from Australian Property Custodian Holdings Limited as
responsible entity for The Prime Retirement and Aged Care Property
Trust (Prime Trust) in relation to a proportional scrip offer for
40% of the securities of BBC.

The TCR-AP reported on Aug. 29, 2008, that BBC disclosed the key
outcomes of the strategic review of its business conducted by
independent financial adviser ABN AMRO to identify options for
reducing the value gap between the company's underlying assets and
current security price.

Recognizing the current composition of the Board and the potential
conflict of interests of those Directors associated with Babcock &
Brown Limited, a committee of Independent Directors (Judith
Sloan, Andrew Love and Graeme Martin) was established and given
the authority to implement these approved initiatives to be run in
parallel with each other:

   -- Price discovery process for the whole of BBC.

   -- Internalization of the management agreement,debt
      reduction program and capital management initiatives.

ABN AMRO has been appointed to advise the Board of BBC on these
processes.

               About Babcock & Brown Communities

Babcock & Brown Communities Limited (ASX:BBC) --
http://www.bbcommunities.com-- is an integrated owner, operator
and developer of senior living communities.  It owns and manages
a portfolio of 56 retirement villages and 29 aged care
facilities across Australia and New Zealand comprising
approximately 10,000 retirement units and 2,200 residential aged
care beds.  Within retirement portfolio, BBC has full exposure
to the deferred management fees of approximately 6,800 units and
receives management fees in relation to the remaining units.

BBC's growth is supported by its development pipeline of
approximately 2,200 retirement units and 344 aged care beds
which is expected to be delivered over the next six years.

                   About Babcock & Brown Ltd

Headquartered in Sydney, Australia, Babcock & Brown Limited
(ASX:BNB) -- http://www.babcockbrown.com/-- creates, syndicates
and manages investment products for itself, as a principal, and
its investor clients; management of specialised listed and
unlisted funds, and advising and arranging leasing, project
financing and structured finance transactions.  It has five
segments: real estate, which engages in principal investment and
investment management activities in the real estate sector;
infrastructure, which engages in financial advisory, principal
finance and funds management activities in the infrastructure and
project finance sector; corporate and structured finance, which is
engaged in the origination, structuring and participation in and
management of equity and debt investments, and operating leasing,
which is engaged in asset acquisition and syndication, and ongoing
management of portfolios of aircraft, railcars and semi-
conductor equipment.  In October 2007, it acquired Bluewater.
In November 2007, it acquired Coinmach Service Corp.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 19, 2008, Standard & Poor's Ratings Services lowered its
long-term issuer credit rating on Australia-based Babcock & Brown
International Pty Ltd. (BBIPL) to 'BB' from 'BB+'.  The rating
outlook is negative.


BABCOCK & BROWN: Confirms Recapitalization of B&B Communities
-------------------------------------------------------------
Babcock & Brown Ltd has confirmed its support for the proposed
recapitalization of Babcock & Brown Communities (BBC) by Lend
Lease Corporation Limited.

Babcock & Brown said that on Aug. 28, 2008, it indicated that
based on the interest expressed by third parties in relation to
the potential acquisition of all of the issued securities in BBC,
and to facilitate the making of offers for the whole of BBC, it
agreed to sell its rights to manage BBC for AU$17.5 million in
cash.

The agreement was designed to facilitate the price discovery
process that BBC announced as part of the strategic review process
being carried out by the Board of Directors of BBC.  As part of
this process, Babcock & Brown has now also committed to sell its
85 million securities in BBC in two tranches to Lend Lease at an
average price of AU$0.58 per security.

Babcock & Brown will receive AU$43.4 million over the next week
and a further AU$23.4 million by mid December if the proposal is
approved by BBC security holders.

Babcock & Brown’s role in facilitating the outcome disclosed BBC
reflects its focus on moving quickly to remove the uncertainty for
BBC investors following Babcock & Brown’s decision to narrow the
focus of its business activities, including its funds management
activities, to areas where it has an established leading franchise
and proven track record.

Michael Larkin, CEO of Babcock & Brown said, "We are extremely
pleased that the Board of BBC has been able to negotiate the
announced restructure with Lend Lease in a relatively short period
of time.  Consistent with our strategy, the sale of our holding
and management rights will tighten the focus of the Group’s
activities.

"Babcock & Brown remains committed to having both listed and
unlisted managed funds in areas of core focus."

The TCR-AP reported on Aug. 29, 2008, that BBC disclosed the key
outcomes of the strategic review of its business conducted by
independent financial adviser ABN AMRO to identify options for
reducing the value gap between the company's underlying assets and
current security price.

Recognizing the current composition of the Board and the potential
conflict of interests of those Directors associated with Babcock &
Brown Limited, a committee of Independent Directors (Judith
Sloan, Andrew Love and Graeme Martin) was established and given
the authority to implement these approved initiatives to be run in
parallel with each other:

   -- Price discovery process for the whole of BBC.

   -- Internalization of the management agreement,debt
      reduction program and capital management initiatives.

ABN AMRO has been appointed to advise the Board of BBC on these
processes.

               About Babcock & Brown Communities

Babcock & Brown Communities Limited (ASX:BBC) --
http://www.bbcommunities.com-- is an integrated owner, operator
and developer of senior living communities.  It owns and manages
a portfolio of 56 retirement villages and 29 aged care
facilities across Australia and New Zealand comprising
approximately 10,000 retirement units and 2,200 residential aged
care beds.  Within retirement portfolio, BBC has full exposure
to the deferred management fees of approximately 6,800 units and
receives management fees in relation to the remaining units.

BBC's growth is supported by its development pipeline of
approximately 2,200 retirement units and 344 aged care beds
which is expected to be delivered over the next six years.

                   About Babcock & Brown Ltd

Headquartered in Sydney, Australia, Babcock & Brown Limited
(ASX:BNB) -- http://www.babcockbrown.com/-- creates, syndicates
and manages investment products for itself, as a principal, and
its investor clients; management of specialised listed and
unlisted funds, and advising and arranging leasing, project
financing and structured finance transactions.  It has five
segments: real estate, which engages in principal investment and
investment management activities in the real estate sector;
infrastructure, which engages in financial advisory, principal
finance and funds management activities in the infrastructure and
project finance sector; corporate and structured finance, which is
engaged in the origination, structuring and participation in and
management of equity and debt investments, and operating leasing,
which is engaged in asset acquisition and syndication, and ongoing
management of portfolios of aircraft, railcars and semi-
conductor equipment.  In October 2007, it acquired Bluewater.
In November 2007, it acquired Coinmach Service Corp.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 19, 2008, Standard & Poor's Ratings Services lowered its
long-term issuer credit rating on Australia-based Babcock & Brown
International Pty Ltd. (BBIPL) to 'BB' from 'BB+'.  The rating
outlook is negative.


DAVID EMERSON: Placed Under Voluntary Liquidation
-------------------------------------------------
David Emerson Architects Pty Le's members agreed on Aug. 18, 2008,
to voluntarily liquidate the company's business.  Gregory J.
Parker was appointed to facilitate the sale of its assets.

The liquidator can be reached at:

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


FRL CONTRACTING: To Declare Dividend on October 10
--------------------------------------------------
FRL Contracting Pty Ltd will declare dividend on Oct. 10, 2008.

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

The company's liquidator is:

          Andrew Birch
          McGrathNicol
          Level 1, 5 Mill Street
          Perth WA 6000
          Website: www.mcgrathnicol.com


FORTESCUE METALS: JPMorgan Cuts Company's Price Target by 48%
-------------------------------------------------------------
Fortescue Metals Group Ltd. had its price target cut by 48 percent
at JPMorgan Chase & Co. on concern it may have difficulty funding
a mine expansion, Jesse Riseborough of Bloomberg News reports.

According to the report, JPMorgan analysts led by David George
said the share price target was cut to AU$5.41 from AU$10.31.  The
analysts said funding to increase company's production capacity to
its goal of 160 million metric tons of iron ore is "very
uncertain."

"We have abandoned the 160 million ton project as the basis for
setting our price target and reverted to the new base case
assumption of 80 million tons, which can clearly be funded,
whereas the funding for the former is very uncertain," JPMorgan
said.

                     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.


INTERNATIONAL FINANCE: Directors Sentenced Over Debenture Scheme
----------------------------------------------------------------
The former directors of International Finance Corporation Pty Ltd
(in liquidation) were sentenced in the South Australian District
Court on 44 charges relating to raising funds from the public in
breach of the Corporations Act, the Australian Securities &
Investments Commission (ASIC) said.

Robin Brian Poumako, 59, of Lewiston, South Australia, was
sentenced to two years and six months imprisonment.  After serving
12 months imprisonment, Mr. Poumako is to be released on a AU$1500
recognisance to be of good behaviour for 18 months.

Ann-Marie Donaldson, 46, of Greenwith, South Australia, was
sentenced to 18 months imprisonment but was released forthwith on
entering into a AU$1500 recognisance to be of good behaviour for
18 months.

Mr. Poumako and Ms. Donaldson were found guilty by a jury on
April 30, 2008, of having aided IFC to make offers of, and to
issue, debentures to investors in breach of the Act.

IFC, through Mr. Poumako and Ms. Donaldson, had raised
approximately AU$3 million in the 12 months prior to Dec. 31,
2003, for real estate developments, including the development of
the former Fernilee Lodge site in Burnside, South Australia.

The offences related to 22 debentures offered and issued to
investors who loaned approximately AU$1.23 million to IFC between
July 14 and Dec. 29, 2003.

According to ASIC, a company issuing debentures to more than 20
investors or for more than AU$2 million in any 12 month period
must comply with the disclosure requirements of the Act so that
investors are provided with all relevant information to enable
them to make a fully informed decision about the investment and
its associated risks.

The Commonwealth Director of Public Prosecutions prosecuted the
matter.

Hillary Orr was appointed liquidator of IFC on July 20, 2004,
following an application by ASIC.  Mr. Poumako was made bankrupt
on June 11, 2008, on the petition of a creditor.  Colin Ambrose of
Ambrose & Associates, Level 2, 99 Frome Street, Adelaide is the
trustee of Mr. Poumako’s bankrupt estate.


LINGBAN HOLDINGS: To Declare Dividend on October 19
---------------------------------------------------
Lingban Holdings Pty Ltd will declare dividend on Oct. 19, 2008.

Creditors who were unable to prove their debts on Sept. 12, 2008,
are excluded from the dividend distribution.

The company's liquidator is:

          Schon G. Condon
          Condon Associates
          Telephone: (02) 9893 9499


NARRAMA MULTI: Federal Court Enters Wind-Up Order
-------------------------------------------------
On Aug. 7, 2008, the Federal Court of Australia entered an order
to have Narrama Multi Services Aboriginal Corporation's operations
wound up.  Frank Lo Pilato was appointed as liquidator.

The liquidator can be reached at:

          Frank Lo Pilato
          RSM Bird Cameron Partners
          Chartered Accountants
          Level 1, 103-105 Northbourne Avenue
          Canberra ACT 2601
          Telephone: (02) 6247 5988
          Facsimile: (02) 6262 8633


TERRITORY RESOURCES: Posts AU$48.5 Mil. Net Loss for FY2008
-----------------------------------------------------------
Territory Resources Limited reported a net loss after tax of
AU$48.5 million for the 12 months to June 30, 2008.

The bottom line result includes a total of AU$43.8 million in
asset impairments and one-off items associated with its external
investments in Monarch Gold Mining Company Limited and Matilda
Minerals Limited.

Commenting on the results, Territory’s Chairman, Andrew Simpson,
said "It is important to note that this underlying loss is not
reflective of our expectations for the financial performance of
the company moving forward.  The Frances Creek mine is now
generating strong cash flows and the company is in a financially
sound position with operating costs continuing to decline and a
fully sold position being maintained.  The average realised cash
operating margin on production was AU$22 per tonne, with average
cash operating costs of AU$66 per tonne for the 12 months to
June 30, 2008."

Before including the provisions, the company posted an underlying
loss of AU$4.5 million (2007: $746,000) which was based on sales
revenue of AU$58.0 million (2007: nil) derived from the first nine
months of production from its 100%-owned Frances Creek Iron Ore
Mine in the Northern Territory.

The one-off items not related to trading include a AU$16.8 million
impairment charge associated with the company’s outstanding
AU$21.5 million loan to Monarch, a AU$1 million impairment of
interest and services costs in regard to Monarch and an AU$18.5
million impairment of Territory’s investment in Monarch, which
comprises 39.9 million shares equating to a 19.9% stake.  Monarch
was placed into voluntary administration on July 10, 2008, due to
poor production performance.

The other one-off items were a AU$4.6 million impairment of
Territory’s investment in the ASX-listed mineral sands company,
Matilda Minerals Ltd and a further AU$2.9 million impairment
charge associated with the monies advanced to Societe Generale in
regard to the assignment of a charge over Monarch’s Davyhurst Gold
Project.

The net loss after tax of AU$48.5 million, which compares with a
net loss of AU$6.9 million for the 2007 financial year, translates
to a loss per share of 20.4 cents.  Total revenue for the year to
June 30, 2008, was AU$60.4 million (2007: AU$746,000), with total
production costs of AU$54.4 million (including depreciation and
amortisation charges of AU$10.2 million) and production costs at
the Frances Creek Mine continue to trend lower and this underlying
loss is not reflective of the anticipated financial performance of
the company moving forward.

The 2008 financial result was based on the shipment of 640,000
tonnes of high-quality Direct Shipping Ore (DSO), comprising
365,000 tonnes of lump ore and 275,000 tonnes of fines from the
Frances Creek Mine.  The average realised cash operating margin on
production was AU$22 per tonne, with average cash operating costs
of AU$66 per tonne for the 12 months to June 30, 2008.

Commenting on the results, Territory’s Chairman, Andrew Simpson,
said: "This financial result is extremely disappointing and
totally unsatisfactory.  It is the result of a divestment strategy
that, for a number of reasons, was not successful and therefore
the company’s strategic stakes have been affected – as have all
other share investors – by a significantly weakened share market
since the beginning of the year.  The investments have suffered
due to the market’s poor performance, and also poor operating
performances in the invested companies, in particular the
investment in Monarch - which was placed into administration in
July 2008."

"At the operating level, we posted an underlying loss of AU$4.5
million for the year, which reflected higher unit cash operating
costs during the first year of operations and the higher level of
capital expenditure required for the production ramp-up.  The
bottom line result included significant asset impairment charges
relating to the Company’s previous broad diversification strategy,
including the investment in Monarch Gold Mining Company," he
continued.

"In summary, the 2008 financial result is disappointing; however,
it should also be seen as marking the beginning of a new chapter
in Territory’s history."

"Following the Board restructure and corporate realignment, I am
now fully confident that we have the people, the assets and the
focus to turn the Company’s financial performance around into the
future," Mr. Simpson continued.

"Territory has a number of important strategic advantages in the
iron ore industry," Mr. Simpson added.

These include access to a railway line and port facilities and the
fact that we have already made the very important transition to
production, meaning that we are able to take advantage of the
current strong iron ore prices.  Our strategy moving forward will
be to focus on these attributes to build a profitable, stable and
successful company into the future."

                  Production Ramp-up Continues

Shipments to date total 906,000 tonnes of high-grade iron ore,
with the company on track to achieve the significant milestone of
shipping its 1 millionth tonne of ore through the Port of Darwin
in early October 2008.

The ramp-up of production at Frances Creek is continuing on
schedule towards achieving the targeted annualised level of
2.0Mtpa by December 2008, with mine scheduling and budgets to
attain this target progressing and expansion plans for rail and
port stockpile facilities well advanced.  A third mining fleet
was deployed during the June Quarter and is now operating at full
capacity.  With continued enhancements to the operation,
Territory’s objective for the 2009 financial year is to drive down
operating costs below AU$60/tonne.

Mr. Simpson said "the company was budgeting to produce 2.0 million
tonnes for the 2009 fiscal year at an average cash operating cost
of AU$60 per tonne."

The company said it has postponed the commissioning of the
previously announced AU$15 million wet processing plant until the
second half of 2009.  The planned wet processing plant would in
any event not have been completed until after the wet season, so
the company has elected to utilise a mobile wet processing plant
in the interim to ensure that it is in place and operating before
the commencement of the northern wet season.

The construction program for the AU$8 million expansion of the
company’s stockpile facilities at East Arm Point in Darwin
continues on schedule, with the applications for the project
lodged with the appropriate authorities.

Exploration is continuing at Frances Creek, focusing initially on
testing targets located close to the existing deposits in order to
increase the Frances Creek resource inventory.

                    About Territory Resources

Territory Resources Limited, formerly Territory Iron Limited
(ASX:TTY)--http://www.territoryiron.com.au/--  is an Australia-
based company whose principal activities consist of exploration
and production of iron ore.  The company controls or has interests
in tenements, which have potential to produce significant amounts
of iron ore for the export market.  The company’s main projects
include the Frances Creek Project, Mt Bundey, Yarram and Warrego.
Mining activity commenced at Frances Creek in April 2007, followed
by commencement of ore crushing and railing to the port in July
2007.

                          *     *     *

The company reported three consecutive net losses of AU$6.88
million, AU$3.22 million and AU$1.09 million for the years ended
June 30, 2007, 2006 and 2005, respectively.


TRANS NATIONAL: Supreme Court Enters Wind-Up Order
--------------------------------------------------
On Aug. 14, 2008, the Supreme Court of Australia entered an order
to have Trans National Commerce 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
          Chartered Accountants
          Level 1, 103-105 Northbourne Avenue
          Canberra ACT 2601
          Telephone: (02) 6247 5988
          Facsimile: (02) 6262 8633


WOODSPOINT PTY: To Declare Dividend on October 23
-------------------------------------------------
Woodspoint Pty Ltd will declare dividend on Oct. 23, 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. Handberg
          Rodgers Reidy
          Chartered Accountants
          Level 10, 200 Queen Street
          Melbourne VIC 3000


* AUSTRALIA: S&P Sees Negative Outlook for Materials & Energy Biz
-----------------------------------------------------------------
Credit quality across Australia's materials and energy sectors is
expected to maintain a negative tone in the near term, even though
many companies continue to benefit from the ongoing resources
boom, Standard & Poor's Ratings Services said in a report.

The report, titled "Credit Outlook Cools For Australia's Materials
And Mining Companies", examines the credit profiles of
companies operating in the following sectors: building products,
construction and engineering, packaging, chemicals, mining and
metals, and oil and gas.

"Rated Australian corporates across the materials and energy
sectors maintained satisfactory credit quality in the past six
months, but the increasingly negative ratings trend is indicative
of the difficulties facing corporates exposed to these
industries,"  S&P's credit analyst May Zhong said.  Interestingly,
for the past 18 months we have not maintained a
positive rating outlook on our rated portfolio of 14 issuers;
what's more, five of the issuer ratings are now on a negative
outlook, underlining our subdued view of the credit quality for
Australia's materials and energy sectors."

This pressure on credit quality is likely to persist in the near
term given the tightening credit markets and the prospect of a
weakening economic environment.  The reduced availability of debt
finance, and its potential flow-on effects to consumer and
business confidence, is likely to remain a key ratings focus for
building products and construction companies.  The mining and
metals sector in Australia is benefiting from record prices for
base metals prices and bulk commodities.  However, supply
constraints and the blow-out in the costs of capital programs has
figured largely in S&P's negative rating actions in the past six
months.  Accordingly, this negative tone to overall credit quality
is likely to linger in the next 12 months.



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

PACIFICNET INC: Case Dismissed After Accord With Bondholders
------------------------------------------------------------
Dawn McCarty of Bloomberg News reports that the United States
Bankruptcy Court for the District of Delaware granted the request
of PacificNet, Inc., and bondholders that filed an involuntary
Chapter 11 bankruptcy case against the Debtor, to dismiss the case
after the parties reached a settlement.

                       About PacificNet

Headquartered in Beijing, China, PacificNet Inc., (NasdaqGM:
PACT) -- http://www.pacificnet.com-- provides gaming and mobile
game technology worldwide.  The company, through its
subsidiaries, offers solutions in casino equipment supply; and
the development, installation, and support of systems and game
content for the casino, lottery, and amusement with prizes (AWP)
markets.  The company was founded in 1987 and has additional
offices in Hong Kong, Shanghai, Shenzhen, Guangzhou, Macau, and
Zhuhai, China; the United States; and the Philippines.  Iroquois
Master Fund Ltd., Whalehaven Capital Fund Ltd. and Alpha Capital
AG filed for involuntary Chapter 11 petition against the Debtor on
March 22, 2008, (Bank. D. Del. Case No. 08-10528.)  Adam Friedman,
Esq. at Olshan Grundman, et al. and Robert S. Brady, Esq. and Ian
S. Fredericks, Esq. at Young Conaway, et al. represent the
petitioners in this case. The company's consolidated balance
sheets' posted total assets of US$23,356,000 and total liabilities
of US$19,527,000, for the quarterly period ended June 30, 2008.



SHENZHEN DEV'T BANK: Scraps Placement Deal With Baosteel Group
--------------------------------------------------------------
Shenzhen Development Bank Company Limited said it had terminated
its private share placement agreement with Baosteel Group, with
the Group's consent.

SinoCast News relates that analysts attributed the cause of
termination on the sliding of the bank's A shares to 56.4%
compared to the agreed share placement price, and the disapproval
of the State-owned Assets Supervision and Administration
Commission of China (SASAC China).

According to the report, SASAC China gave a signal that it does
not expect state-owned enterprises under its direct administration
to invest in non-core business.  It is anticipated that
examination about such investment would get much stricter in the
future, the report says.

The bank, SinoCast News recounts, agreed to place 120 million
shares to Baosteel Group at a price of CNY35.15 per share, 90% of
its daily average price in 20 trading days prior to the
announcement.  The share placement, which will cost Baosteel a
total of CNY4.218 billion, would enable the steelmaker to become
the lender's second largest shareholder, the same report says.

Upon the termination of share placement, the bank's board approved
shareholder proposals for bond issues over the next 3 years.

On September 29, 2008, the Troubled Company Reporter-Asia Pacific,
citing Bloomberg News, reported that Shenzhen Development Bank
plans to sell as much as CNY28 billion (US$4.1 billion) of bonds
to bolster its capital.

The bank plans to sell:

-- CNY10 billion of subordinated debt with five-year to 15-year
   maturities,

-- CNYCNY10 billion of regular bonds maturing between one and 10
   years; and

-- CNY8 billion yuan of hybrid bonds with maturities of at least
   15 years.

               About Shenzhen Development Bank

Headquartered in Shenzhen, Guangdong, People's Republic of
China, Shenzhen Development Bank Company Ltd.'s --
http://www.sdb.com.cn/-- provides local and foreign currency
deposits and loan services.  Other activities include foreign
currencies exchanging, foreign currency deposit and remittances,
acts as an agent for issuing foreign currency value-bearing
securities, management of letters of credit and operation of
both an international and a domestic discounting service.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
September 1, 2008, Moody's Investors Service upgraded Shenzhen
Development Bank's (SZDB) bank financial strength rating (BFSR)
from E+ to D-.  At the same time, the rating agency upgraded the
bank's long-term foreign currency deposit rating from Ba3 to Ba2;
its short-term foreign currency deposit rating remains unaffected
at Not-Prime.  The outlook for all ratings is stable.


SHIMAO PROPERTY: Cuts Sales Target by 20% on Weak Market Forecast
-----------------------------------------------------------------
Shimao Property Holdings Limited plans to cut contracted property
sales target this year by 20% on forecasts that real estate market
will remain weak in the second half, The Australian News reports,
citing Chairman Hui Wing-mau.

According to the report, the company's net profit for the six
months to June 30 was CNY919.1 million (US$167 million), from
CNY2.08 billion in the same period of 2007, while revenue fell 24%
to CNY1.84 billion from CNY2.42 billion.  Revenue from property
sales dropped 42% to CNY1.4 billion.

Mr. Hu, the report relates, said: "The global economy this year is
being dragged by the financial market crisis; it is expected that
many uncertainties remain for the second half (of the) year."  The
company now expected its contracted property sales this year to
reach CNY14 billion, he added.

Shimao's contracted property sales in the first half totaled
CNY4.4 billion.

The Australian notes that Mr. Hu said that the company had slowed
down its pace of land acquisition since the beginning of this
year.  "The domestic real estate market is going through a phase
of consolidation.  It is increasingly obvious that the weak
(developers) are being discarded while the fittest remain," he
added.

Meanwhile, the report adds that China Securities Regulatory
Commission last month approved Shimao's plan to take a 64.2% stake
in Shanghai-listed Shanghai Shimao worth CNY7.59 billion, in
exchange for 11 retail and commercial properties it owned in
mainland China.  Mr. Hu expected Shimao to book a gain of CNY1.17
billion from the deal.

                      About Shimao Property

Shimao Property Holdings Limited -- http://www.shimaogroup.com/
-- is a large-scale developer of real estate projects in China,
specializing in high-end developments in prime locations.  The
company's business portfolio comprises the development of
residential properties, retail properties, offices and hotels.
The company has 15 projects at various stages of development
located in Shanghai, Beijing, Harbin, Wuhan, Nanjing, Fuzhou,
Kunshan, Changshu, Shaoxing and Wuhu.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
July 29, 2008, Moody's Investors Service downgraded to 'Ba1'
from 'Baa3' Shimao Property Holdings Limited's issuer rating and
senior unsecured bond rating.

At the same time, Moody's withdrew the issuer rating and
assigned the company a 'Ba1' corporate family rating.  The
outlook for the unsecured bond rating and corporate family
rating is negative.



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

NEW STEP: Wind-Up Petition Hearing Set for October 22
-----------------------------------------------------
The High Court of Hong Kong will hear on October 22, 2008, at
9:30 a.m. a petition to have New Step Garments Company Limited's
operations wound up.

The petition was filed by Cheng Pik Fong on August 25, 2008.


THE NEW CHINA: Annual Meetings Set for October 10
-------------------------------------------------
The members and creditors of New China Hong Kong Trading (Beijing)
Limited will hold their annual meetings on October 10, 2008, at
10:00 a.m. and 10:30 a.m., respectively at Room 1601-02, 16th
Floor of One Hysan Avenue, in Causeway Bay, Hong Kong.

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


THE NEW CHINA: Members and Creditors to Meet on October 10
----------------------------------------------------------
The members and creditors of The New China Hong Kong Properties
Limited will hold their annual meetings on October 10, 2008, at
2:00 p.m. and 2:30 p.m., respectively at Room 1601-02, 16th Floor
of One Hysan Avenue, in Causeway Bay, Hong Kong.

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


THE NEW CHINA: Annual Meetings Slated for October 10
----------------------------------------------------
The members and creditors of The New China Hong Kong Advertising
Limited will hold their annual meetings on October 10, 2008, at
2:00 p.m. and 2:30 p.m., respectively at Room 1601-02, 16th Floor
of One Hysan Avenue, in Causeway Bay, Hong Kong.

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


THE NEW CHINA: Members and Creditors to Meet on October 10
----------------------------------------------------------
The members and creditors of The New China Hong Kong Advertising
Limited will hold their annual meetings on October 10, 2008, at
3:00 p.m. and 3:30 p.m., respectively at Room 1601-02, 16th Floor
of One Hysan Avenue, in Causeway Bay, Hong Kong.

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



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

GENERAL MOTORS: Delphi Services & Restructuring Deals Approved
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York on
Sept. 26, 2008, entered an order approving the amendments to the
Global Services Agreement and the Master Restructuring Agreement
between General Motors Corp. and Delphi Corporation.

A full-text copy of the Amended GSA and MRA is available for free
at http://ResearchArchives.com/t/s?3330

Delphi obtained approval of their new deals with General Motors
after the Official Committee of Unsecured Creditors agreed to
withdraw its objections.

               PBGC, et al., Support New GM Deal

Various parties-in-interest, including the Fiduciary Counselors,
Inc., and the Pension Benefit Guaranty Corp., have conveyed their
support for the amendments to GSA and MRA.

Fiduciary Counselors, Inc., the appointed fiduciary charged to
assure that the Debtors fulfill their obligations with respect to
required contributions to their Hourly-Rate Pension Plan,
believes that the latest amendments would aid the Debtors' exit
from bankruptcy.  FCI filed a proofs of claim on the HRP's behalf
for legally required contributions owed to the HRP.  The Claim
amount through Dec. 31, 2007, was identified as US$2,600,000,000.
FCI has recently conferred with the HRP's actuaries and confirmed
that the amount required to meet the statutory minimum funding
requirements for the HRP as of Sept. 30, 2008, will be in an
amount ranging from US$2,100,000,000 to US$2,300,000,000.

William H. Schorling, Esq., at Buchanan Ingersoll & Rooney PC, in
New York, noted that GM and Delphi have obtained a private letter
ruling from the U.S. Internal Revenue Service that the proposed
414(l) Transfer pursuant to the Amended GSA and MRA will
eliminate Delphi's obligations for all contributions due on or
before Sept. 30, 2008.  Effectuating the 414(l) Transfer will
substantially satisfy HRP's Claim -- HRP will also still have
claims for any unpaid amounts due in the future -- making the
Debtors' emergence from chapter 11 more viable, Mr. Schorling
stated.  He added that implementing the 414(l) Transfer will
avoid application of the provisions of the Pension Protection Act
to the unfunded HRP obligations, again aiding the Debtors' exit
from bankruptcy.  Finally, the 414(l) Transfer, according to
Mr. Schorling, should mitigate the risk that the PBGC would take
steps to terminate the HRP.

Representing the Pension Benefit Guarantee Corporation, John A.
Menke, Esq., avers that the amended GSA and MRA constitute an
overwhelmingly positive solution to some of the Debtors' major
pension obligations and eliminates what might be insurmountable
obstacles to a successful reorganization.  If the 414(l) transfer
occurs by Sept. 29, 2008, major benefits flow to the Debtors,
certain non-Debtor affiliates and the unsecured creditors.
Approval of the new deal, according to Mr. Menke, will relieve
the Debtors of billions of dollars of current liability for
contributions that would otherwise be due to their Hourly Plan
and that would have to be satisfied, probably in Cash lump sum,
before the Debtors could emerge.  Because Delphi's existing
liability for contributions to the hourly Plan will be erased by
the 414(l) Transfer, as soon ass possible after the first
transfer date, the PBGC said it will relinquish more than
US$1,200,000,000 in liens filed against Delphi's foreign non-
Debtor affiliates.

The Official Committee of Equity Shareholders also said it is not
objecting to the new GM/Delphi deal.  However, it reserved its
right to object to the confirmation of any Chapter 11 plan filed
and any modification in the Debtors' Chapter 11 cases.  It sought
to keep its right to object to confirmation of any chapter 11
plan that does not provide appropriate value to existing equity
in exchange for the releases granted in favor of GM.

     Splinter Unions Wary of Fate of Employees and Retirees

The IUOE, IBEW and IAM -- the Splinter Unions -- informed Judge
Drain that they are fully cognizant of the external constraints
of Delphi, and that they do not object to the conceptual
framework underlying the Motion. However, the Splinter Unions
said they are not yet in a position to assess how the proposed
implementation of the amendments to the GSA and MRA will affect
the employees and retirees represented by the Splinter Unions.

The Splinter Unions say they fully expect the Debtor and GM to
provide the answers they need to be able to negotiate a timely
implementation agreement so that the employees and retirees they
represent are fairly treated.

The Splinter Unions are represented by:

    Barbara S. Mehlsack, Esq.,
    Gorlick Kravitz & Listhaus, P.C.,
    17 State Street
    New York, N.Y. 1004
    bmehlsack@gkllaw.com

                   Parties Object to New Deal

(a) Senior Noteholders

CR Intrinsic Investors, LLC, and Highland Capital Management,
L.P., which collectively hold approximately US$495,000,000 in
principal amount of Delphi senior notes, noted that Debtors are
seeking approval of the "most important and far-reaching
settlement in this case and the fixing of central elements of a
plan of reorganization", on just 10 days' notice, without
providing the most basic information necessary for the Court to
evaluate the claims to be settled, and without any pretense of
adhering to the fundamental protections to which creditors are
entitled in connection with a plan of reorganization.

CR Intrinsic and Highland consequently asked the Court to deny
Delphi the authority to implement the amended GSA and MRA in
order to prevent the Debtors from entering into sweeping and far-
reaching agreements with GM that would irrevocably impact the
outcome of the chapter 11 cases and in effect dictate the terms
of any plan of reorganization.

Isaac M. Pachulski, Esq., at Stutman, Treister & Glatt P.C., in
Los Angeles, California, averred that Delphi is seeking approval
of what amounts to a sub rosa plan of reorganization, without
providing the kind of disclosure and procedural and substantive
protection to which creditors are entitled in connection with the
confirmation of a plan, and without any creditor vote.  According
to Mr. Pachulski, a sampling of just some of the provisions of
the Amended GSA highlights how pervasively these agreements will
dictate the terms of any plan and the ultimate outcome of the
Chapter 11 cases:

  (1) the Amended GSA includes comprehensive provisions for the
      allowance and treatment of GM's claims under any plan of
      reorganization.  Among other things,

       -- GM agrees to assume certain pension liability which
          is primarily rooted in prepetition services of
          employees who worked for GM at the time of the Delphi
          spin-off in exchange for an administrative claim.  Not
          only does an administrative claim entitle GM to
          priority payment but it also handcuffs the Debtors in
          treating this claim under a plan of reorganization.

       -- the Amended GSA also contemplates that GM would be
          entitled to an unsecured claim in the amount of
          US$2,500,000,000.  While GM would not be entitled to any
          recovery on the GM Unsecured Claim until other
          unsecured creditors receive at least a 20% recovery,
          both the GM Unsecured Claim and GM Admin. Claim would
          be entitled to specified, and special, treatment under
          any plan of reorganization pursuant to the Amended
          GSA.

       -- Distributions on account of the GM Claims are to be
          made by issuing preferred stock to GM which is not
          made available to any other constituent body of the
          Debtors, and the value of which remaining unknown.

  (2) The Amended GSA contemplates that the Debtors and
      their affiliates immediately release substantially all of
      their claims against GM and its affiliates on the
      effective date of the Amended GSA and reaffirm this
      release as of the date that the Debtors emerge from
      chapter 11.  The Amended GSA also requires that any
      future plan of reorganization provide that certain third
      parties, including the Creditors Committee, the Equity
      Committee, the DIP Agent, and the DIP Lenders, among
      others, release GM and its affiliates of substantially all
      of their claims against GM and its affiliates as of the
      Emergence Date.

  (3) The Amended GSA and Amended MRA leave little doubt that
      these agreements are to control and dictate the terms of
      any future plan of reorganization.  Specifically, the
      Amended GSA requires that any Delphi Plan contain
      provisions "clarifying that to the extent of any
      inconsistency between the terms of the Delphi Plan and
      [the Amended GSA] (solely as to the subject matters
      addressed in [the Amended GSA]), the terms of [the Amended
      GSA] will govern."

(b) Indenture Trustee to Senior Notes

Wilmington Trust Company, indenture trustee for US$2,000,000,000
in
Delphi senior notes and debentures, asked the Court to deny the
Debtors' motion to implement the amended GSA and MRA.

Edward M. Fox, Esq., at K&L Gates LLP, in New York, said Delphi
is seeking an unauthorized modification of the Debtors' confirmed
Plan of Reorganization, opposing Section 1127 of the Bankruptcy
Code, which not only applies to proposed modifications of actual
plan language, but also to proposed modifications of plan-related
documents, particularly where the documents [were] an integral
part of the reorganization plan and confirmation order.

Pursuant to Section 1127(b), the proponent of a plan or the
reorganized debtor may modify the plan at any time after
confirmation of the plan and before substantial consummation of
the Plan...  The Plan as modified under the this subsection
becomes the Plan only if the circumstances warrant the
modification and the court, after notice and a hearing, confirms
the plan as modified, under Section 1129.

Mr. Fox also related that the GSA and MRA may not be amended
without the approval of the Creditors Committee, as provided for
in Section 12.2 of the Plan.  He added that the Debtors' proposal
to grant a general release to GM at this time is contrary to the
best interests of creditors, particularly since the Debtors may
well need additional assistance and support from GM in order to
consummate a plan of reorganization and emerge from bankruptcy.

(c) Creditors Committee

The Official Committee of Unsecured Creditors also asked the
Court to deny the Motion, citing that the immediate release
granted to GM and the size of the allowed administrative expense
claim to GM violate Section 1127 of the Bankruptcy Code, as the
original GSA and MRA were exhibits to the Debtors' confirmed
Chapter 11 plan.

Robert J. Rosenberg, Esq., at Latham & Watkins LLP, in New York,
said that if the proposed amendments to the GSA and the MRA are
approved, it will provide GM with extra ordinary consideration in
exchange for GM entering into transactions that are tremendously
beneficial to GM on its own.  These agreements represent no less
than the complete abdication by the Debtors of all control over
their destiny, without regard to the consequence to their
unsecured creditors, Mr. Rosenberg explained.

                  Delphi Addresses Objections

John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, noted that although certain
parties allege that the Debtors are requesting relief that is
not in the best interests of the estates and in breach of their
fiduciary duties, only these parties filed objections that remain
unresolved:

   -- the International Union of Electronic, Electrical,
      Salaried, Machine and Furniture Workers-Communication
      Workers of America and the United Steelworkers of America,
      which are continuing to collectively bargain
      implementation agreements with Delphi which would include
      their consent to Amended GSA and MRA

   -- the official committee of unsecured creditors; Wilmington
      Trust Company, a member of the Creditors Committee; and CR
      Intrinsic and Highland, whose interests are represented by
      both the Creditors Committee and WTC.

The Debtors furnished a chart summarizing their responses to
objections, a copy of which is available for free at
http://ResearchArchives.com/t/s?332f

The Debtors pointed out that their largest union, the United Auto
Workers, is not opposing to the Amended GSA and MRA.  They added
that the Equity Committee, Fiduciary Counselors, the PBGC, and
three unions have conveyed support or no objections.

Contrary to the assertions of the Creditors Committee, the
Amended GSA and MRA are the product of months of intense, arm's-
length bargaining between the Debtors and GM during which the
Debtors clearly considered various alternatives and options to
the Amended GSA and the Amended MRA, Mr. Butler clarified.

Mr. Butler recounted that when Appaloosa Management, L.P., and
the other Plan Investors failed to participate in the April 4,
2008 closing, Delphi's Board of Directors convened the first of
nine meetings that would be held between that date and the
Board's ultimate approval of the Amended GSA and MRA on Sept. 12.
The Debtors also met with the Creditors Committee and held
discussions with GM about a modified plan of reorganization
framework involving a stand-alone plan to be funded internally
through adjustments to the recoveries of GM, general unsecured
creditors, and other stakeholders.  Those discussions concluded
on June 25, when GM informed Delphi that it was not willing to
provide the level of incremental financial support that would
have been necessary to make a standalone plan of reorganization
framework possible under the RPOR as it existed at that time.

Promptly after learning of GM's decision, Delphi began a process
of identifying and assessing a range of specific strategic
alternatives that included POR modifications providing for debt
financing and equity financing through a rights offering
backstopped by creditors or other potential investors.  In
addition, in mid-July 2008, Delphi and GM re-engaged in
constructive discussions that addressed, among other things, the
incremental financial support needed to make the revised POR a
realistic business plan that should attract interest in the
capital markets.  These efforts have resulted in a number of
significant developments since April 2008, all of them
accomplished against the backdrop of deteriorating macroeconomic
and automotive industry conditions and turbulence in the capital
markets, Mr. Butler detailed.

Throughout this process, Delphi's senior leadership acted with
diligence and in accordance with its fiduciary duty to maximize
the business enterprise value of Delphi and its affiliates and
thereby maximize the opportunities for recoveries by the Debtors'
stakeholders.  In doing so, Delphi, according to Mr. Butler,
considered the Creditors Committee's demand that the Debtors play
a high-stakes game of "chicken" with GM up through the 414(l)
Transfer deadline of Sept. 29, 2008, in the hopes that GM would
eventually agree to what the Creditors Committee was really
seeking --- a form of guaranteed recovery for general unsecured
creditors from GM.  Delphi ultimately rejected that approach
because it believed that obtaining GM's commitment to take on an
upsized 414(l) Transfer, assume prompt financial responsibility
for other post-employment benefits, and provide what the Debtors
concluded was the additional required support for the RPOR was,
on balance, more beneficial to the Debtors and their stakeholders
than holding out for more at the risk of losing everything.

Although the Creditors' Panel may not agree with their decisions
for failing to initiate litigation or use other "tools" against
GM, the Debtors believe that their decisions since April 4 are
sound.  Mr. Butler avers that both the timeline of events and the
breadth of support GM is providing through the Amended GSA and
the Amended MRA demonstrate that the Debtors did not "surrender"
or abdicate control of these cases to GM.  The Debtors firmly
believe that the Amended GSA and MRA are in the best interests of
the estates, and that entry into the agreements is fundamentally
necessary for any meaningful recovery to stakeholders.

        Creditors Committee Renews Support for GM/Delphi

Delphi creditors have concurred to proposed amendments to
agreements between the auto-parts maker and its former parent
General Motors Corp., removing one hindrance to Delphi's exit
from bankruptcy after almost three years, Bloomberg News reports.

Judge Drain approved the Amended GSA and MRA after Delphi reached
a deal with the Creditors Committee.  Mr. Butler, Delphi's
counsel, told the Court at the Sept. 25 hearing that the
Creditors Committee tentatively agreed to amendments that would
change how creditors are paid in the company's restructuring as
well as the terms of preferred stock GM would receive under an
amended POR.

The hearing was originally scheduled for Sept. 23, but was
adjourned for two days to allow the Debtors and the Creditors
Committee to reach common ground.

The Creditors Committee's counsel, Robert J. Rosenberg, Esq., at
Latham & Watkins LLP, in New York, confirmed the deal.  "All's
well that ends well," Mr. Rosenberg, after retracting the
Committee's objection to the new GM deals, which would allow
Delphi to exit bankruptcy.

"Today was a major milestone in these Chapter 11 cases,"
Mr. Butler said at the Sept. 25 hearing.

Delphi and the Creditors Committee engaged in negotiations
regarding the Amended GSA and MRA.  Possible scenarios, according
to Reuters, included GM accepting preferred Delphi shares, or
splitting administrative proceeds 50-50 with Delphi's unsecured
creditors.  The Debtors and GM reached a first amendment to the
Amended GSA on Sept. 25, 2008, which added these provisions:

   1. "GUC Percentage" shall mean .2 multiplied by the amount of
      allowed general unsecured claims (exclusive for all
      purposes of this section 1.57(a) of holders of TOPrS
      Claims, as defined in the 2007 Plan) divided by the sum of
      US$2.055 billion and the product of .2 and the amount of
      allowed general unsecured claims.

   2. If any condition for the receipt by GM of the preferred
      stock described in Section 4.04(c) of the GSA is not
      satisfied or waived by GM, holders of general
      unsubordinated unsecured claims (exclusive for all
      purposes of this section 4.04(a) of TOPrS Claims, as
      defined in the 2007 Plan) shall receive 50% of all
      distributions that otherwise would be made to GM on
      account of its administrative expense claims allowed
      pursuant to this Section 4.04(a) to the extent necessary
      for such holders to receive an aggregate distribution,
      exclusive of any value received as a result of
      participation by such holders in any rights offering or
      similar undertaking, on account of their allowed general
      unsubordinated unsecured claims equal in value of up to
      US$300 million.

   3. If all conditions for the receipt by GM of the preferred
      stock described in the preceding sentence are satisfied,
      value equal (at Plan value) to an amount of up to the GUC
      Percentage multiplied by the stated value of the preferred
      stock otherwise distributable to GM under the first
      sentence of this Section 4.04(c) shall be distributed to
      holders of general unsubordinated unsecured claims
      (exclusive for all purposes of this section 4.04(c) of
      holders of TOPrS Claims, as defined in the 2007 Plan) to
      the extent necessary to permit the holders of general
      unsubordinated unsecured claims to receive distributions,
      exclusive of any value received as a result of
      participation by such holders in any rights offering or
      similar undertaking, equal to 20% of their allowed general
      unsubordinated unsecured claims.

   4. Any amendments to the Amended GSA or the Amended MRA that
      are materially adverse to the Debtors' estates shall
      require the consent of the Creditors Committee.

A full-text copy of the First Amendment to the Amended GSA is
available for free at http://ResearchArchives.com/t/s?332e

Delphi also posted a summary of indicative terms for the
preferred stock it will issue to GM pursuant to a POR.  The
summary provides that Shares of Series D Convertible Preferred
Stock, par value US$0.01 per share, with an aggregate initial
stated value of US$2,055,000,000 will be issued to GM.  Delphi may
pay cash to GM to reduce the number of shares issued at a price
equal to the Stated Value per share.  A copy of the Summary is
available for free at http://ResearchArchives.com/t/s?332d

                      About Delphi Corp.

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

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

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

(Delphi Bankruptcy News, Issue 146; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                   About General Motors

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

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

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

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


ICICI BANK: To Continue Halt on Retail Loan Business
----------------------------------------------------
After putting off doubts about its financial health, ICICI Bank
Limited said it will continue to put the brakes on its retail loan
business and slow down the pace of its global lending, The
Economic Times reports.

ICICI Bank Chief K V Kamath meanwhile, who had earlier indicated
that he would not continue his executive role after his term comes
to end in April 2009, now says he will certainly consider staying
back if the shareholders and the board of directors decide so, The
Economic Times relates.  A parallel exercise is underway,
involving external assessment, to identify the next leader,
bankers close to the development told The Economic Times.

The Economic Times earlier reported that shares of ICICI Bank fell
to a two-year low on September 29, as the lack of clarity over the
bank's losses on its overseas investments -— mainly in debt paper
issued by global financial giants —- triggered another bout of
selling.  Bloomberg News said the bank's shares dropped 11% to
500.45 rupees as of 3:00 p.m. local time Monday.

According to The Economic Times, analysts and brokers said the
stock was pounded for being on the portfolio of most foreign
investors, who have stepped up selling in Indian equities in
recent weeks.  Foreign ownership in ICICI Bank is close to 70%
hence market perceptions of the bank's riskier asset portfolio has
resulted in several investors shifting to India's largest bank,
SBI, in recent months, the news agency cited analysts as saying.

Early this week, customers withdrew cash at ICICI ATMs in droves
prompting ICICI Bank to issue a press statement to assuage fears.
In its statement, the bank said it is aware that rumors are being
repeatedly circulated in certain centers regarding the financial
strength of the Bank.  The Bank stated that the rumors are
baseless and malicious.

Noting that the rumors could create concern among the Bank's
customers, the Bank reiterated that:

   -- ICICI Bank has a very strong capital position, having
      proactively raised Rs. 20,000 crore (about US$5 billion)
      in June 2007, almost doubling its capital base.  It has
      a networth of over Rs. 47,000 crore (i.e. over
      US$10 billion) and a capital adequacy ratio of 13.4%
      at June 30, 2008, as against the regulatory requirement
      of 9.0%.  This is among the highest levels of capital
      adequacy in large Indian banks.  This reflects the
      healthy capital position and comfortable level of
      leverage.  Its banking and non-banking subsidiaries
      are also well-capitalized.

   -- ICICI Bank has consolidated total assets of over
      Rs. 484,000 crore (over US$105 billion), which is
      diversified across a wide range of asset classes in
      India and overseas.

   -- ICICI Bank is profitable.  It made a profit after
      tax of Rs. 4,158 crore (over US$900 million) in FY2008
      and Rs. 728 crore (over US$155 million) in the first
      quarter of this year.  This was due to the strong core
      performance, which more than offset the impact of
      adverse debt and equity market conditions in India and
      globally since the second half of FY2008.

   -- ICICI Bank's wholly owned subsidiary, ICICI Bank UK PLC
      has, as part of its normal treasury operations, a
      diversified investment portfolio.  ICICI Bank UK PLC
      has zero exposure to US sub-prime credit, and zero
      non-performing loans.  About 98% of its non-India
      investment book of US$3.5 billion is rated investment
      grade and above, with about 89% rated A- and above.  In
      addition, ICICI Bank UK PLC holds cash equivalent
      instruments (inter-bank placements and certificates of
      deposit) of US$1.1 billion.  As on the last balance
      sheet date of June 30, 2008, ICICI Bank UK PLC had a
      capital adequacy ratio of 17.4%.

   -- The absorption of the impact of current market conditions
      on investment portfolio valuation will not pose any
      challenge to ICICI Bank's capital position.

The Reserve Bank of India clarified in a separate statement that
the ICICI Bank including its subsidiary banks have sufficient
liquidity to meet the requirements of its depositors.

The Reserve Bank said it is monitoring the developments and has
arranged to provide adequate cash to ICICI Bank to meet the
demands of its customers.

Separately, RBI is unlikely to ease the requirement for banks to
keep cash with the central bank through a cut in CRR rate in its
mid-term monetary review on October 29 even though the banking
system is facing liquidity problem, The Economic Times cited
Finance Ministry sources as saying.

According to Economic Times' sources, RBI is also unlikely to
change short-term lending and borrowing rates -- repo and reverse
repo -- in the upcoming policy review.  There would be a pause on
the rate tightening cycle, they said.

                     About ICICI Bank Limited

Headquartered in Mumbai, India, ICICI Bank Limited (NYSE:IBN) --
http://www.icicibank.com/-- is a private sector bank with
consolidated total assets of US$121 billion as of March 31,
2008.  ICICI Bank's subsidiaries include India's leading private
sector insurance companies and among its largest securities
brokerage firms, mutual funds and private equity firms.  ICICI
Bank's presence currently spans 19 countries, including India.

                          *     *     *

ICICI Bank Limited continues to carry a "C" Bank Fundamental
Strength Rating placed by Standard & Poor's on July 10, 2005.  The
bank's Proposed Hybrid Tier I notes (US$5 billion MTN program) and
Proposed Lower Tier II sub notes (US$5 billion MTN program) also
carry a "BB" and "BB+" rating respectively.


LEHMAN BROTHERS: Acquired Brokerage Firm Brics Sues Bank
--------------------------------------------------------
Brics Securities sued Lehman Brothers Holdings Inc.-India for not
paying acquisition-related balances at an earlier date, The
Economic Times reports, citing an unnamed company source.  In
2007, the report recounts, Lehman Brothers Indian arm bought out
the institutional brokerage business of Brics Securities for close
to Rs 290 crore.  The sale amount was expected to come in three
tranches with the next installments due in February and August
2009.

According to The Economic Times, Brics asked Lehman to pay the
balance money early, but Lehman's counsel opposed the plea saying
it has not defaulted so far on any of the payments and the
petition is based purely on the speculative premise that it would
default in the future.

The lawsuit, filed with the Bombay High Court this week, seeks to
recover Rs 123 crore as part of the sale arrangement of Brics
institutional equity business to Lehman Brothers, the report says.
Brics also requested the High Court to direct the investment bank
to declare all its assets and appoint a receiver for the Indian
entity.  Hearing on the case is set to resume next week.

Around 40 former Brics employees who moved to Lehman Brothers in
September 2008 post-acquisition were absorbed by Nomura Holdings
Inc. after it agreed to acquire Lehman Brothers' franchise in the
Asia-Pacific region, including Japan and Australia.

                      About Brics Securities

Mumbai, India-based Brics Securities --
http://www.bricssecurities.com/-- offers services including
equity, debt and commodity broking, portfolio management,
distribution of third-party products and depository facilities.
Brics is a financial services arm of the JV Gokal Group.  Brics
was created in October 2003 following the acquisition and
rechristening of Birla Sun Life Securities -- a joint venture
between the Aditya Birla Group and the Sunlife Group of Canada.
Brics' operations are currently spread over a network of 13
offices in 8 cities across India.

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

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.

Dennis F. Dunne, Esq., Luc A. Despins, Esq., and Wilbur F. Foster,
Jr., Esq., at MILBANK, TWEED, HADLEY & McCLOY LLP, in New York,
and Paul Aronzon, Esq., and Gregory A. Bray, Esq., at MILBANK in
Los Angeles, California, represent the official unsecured
creditors committee.

                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 September 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 have 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.


* CRISIL: India Automobile Sector Slowdown to Last Until 2009-10
----------------------------------------------------------------
Difficult financing conditions and rising cost of ownership have
caused a slowdown in automobile sales since April 2008, according
to CRISIL Research.  Sluggish demand has made it necessary for
players to partly absorb input cost increases resulting in lower
margins.  CRISIL Research expects the deceleration to continue
until 2009-10.

Falling demand for Medium and Heavy Commercial Vehicles (MHCV) is
mainly linked to the overall slowdown in industrial production.
Transporters have deferred purchases despite stable freight rates,
with rising cost of ownership impacting their profitability amidst
concerns over freight demand sustainability.  Due to demand-
related concerns, freight rates are expected to decline in the
second half of 2008-09, further affecting transporter
profitability.

CRISIL Research expects MHCV volumes to continue to decline by 5-
10% in 2008-09.  Light Commercial Vehicles (LCVs), which have been
clocking healthy double-digit growth over the last few years, are
expected to register single-digit growth in 2008-09 owing to the
existing high base.

The domestic passenger car industry registered a moderate 6%
growth during April-August 2008, after posting a 16% growth in the
first quarter of 2008-09.  The rapidly changing finance scenario,
increase in vehicle prices and fuel cost have pushed up the cost
of ownership for a typical compact car by 4% to 5%.

CRISIL Research expects the domestic passenger car industry to
register a 6% to 7% growth in 2008-09.  In the two wheeler
segment, despite the existing tight finance scenario, sales growth
recovered during April-August 2008-09, with increase in cash
purchases and rising income levels in rural areas.  CRISIL
Research expects domestic two wheeler sales to grow by 7% to 8% in
2008-09 as against the 9% decline in 2007-08.

The impact of the rise in raw material prices on the cost of sales
of overall automotive chain is expected to be around 7% in 2008-
09.  Margins of leading players are expected to continue to remain
under pressure in 2008-09 despite OEMs absorbing only part of the
surge in cost and passing the balance to the customers.

CRISIL Research expects single digit growth rates to continue for
automobile segments in 2009-10.  Mr. Sachin Mathur, Head, CRISIL
Research elaborated, "A moderate improvement in the outlook for
the automobile sector in 2009-10 hinges on softening of input
costs and fuel prices, financing rates remaining stable and
continuation of the industrial investment cycle."

                     About CRISIL Limited

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

                     About CRISIL Research

CRISIL Research is India's largest independent, integrated
research house.



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

C.L.E.A.R. PLC: S&P Places 9 Junk Ratings on CreditWatch Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered and placed on
CreditWatch with negative implications its credit ratings on nine
synthetic collateralized debt obligation bonds issued by
C.L.E.A.R. PLC.

The rating actions reflect the recent downgrade of the underlying
collateral, which the issuer purchased using note proceeds in
each transaction.  They do not reflect any changes in the
reference portfolio.

The debt issued by Sigma Finance Corp. makes up the collateral in
these transactions.  On Sept. 30, S&P lowered its issuer credit
and senior debt ratings on Sigma to CCC-/Watch Neg from A/Watch
Neg and withdrew its rating on its commercial paper.  For further
information see "Sigma Finance Corp. Issuer Credit And Senior
Debt Ratings Lowered; CP Rating Withdrawn".

Ratings List:

C.L.E.A.R. PLC

  -- JPY3 Billion Limited-Recourse Secured Credit-Linked
     Variable-Rate Notes Series 32 (Aramis)

            CCC-/Watch Neg       CCC+

  -- US$50 Million Limited-Recourse Secured Credit-Linked
     Variable-Rate Notes Series 37 (Aramis)

            CCC-/Watch Neg       CCC

  -- AU$5 Million Limited-Recourse Secured Credit-Linked
     Variable-Rate Notes Series 40 (Aramis)

            CCC-/Watch Neg       CCC+

  -- AU$19.1 Million Limited-Recourse Secured Credit-Linked
     Step-Up Notes Series 56

            CCC-/Watch Neg       BBB-

  -- AU$4 Million Limited-Recourse Secured Credit-Linked Step-Up
     Notes Series 57

            CCC-/Watch Neg       BBB

  -- US$10 Million Limited-Recourse Secured Credit-Linked Notes
     Series 58

            CCC-/Watch Neg       BBB

  -- JPY1 Billion Limited Recourse Secured Credit-Linked
     Floating-Rate Notes Series 63

            CCC-/Watch Neg       BBB/Watch Neg

  -- JPY1 Billion Limited Recourse Secured Credit-Linked
     Floating-Rate Notes Series 64

            CCC-/Watch Neg       BBB

  -- AU$5 Million Limited-Recourse Secured Credit-Linked
     Variable-Rate Notes Series 69 (Aramis)

            CCC-/Watch Neg       A


DELPHI CORP: Court OKs Services and Restructuring Deals with GM
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York on
Sept. 26, 2008, entered an order approving the amendments to the
Global Services Agreement and the Master Restructuring Agreement
between General Motors Corp. and Delphi Corporation.

A full-text copy of the Amended GSA and MRA is available for free
at http://ResearchArchives.com/t/s?3330

Delphi obtained approval of their new deals with General Motors
after the Official Committee of Unsecured Creditors agreed to
withdraw its objections.

               PBGC, et al., Support New GM Deal

Various parties-in-interest, including the Fiduciary Counselors,
Inc., and the Pension Benefit Guaranty Corp., have conveyed their
support for the amendments to GSA and MRA.

Fiduciary Counselors, Inc., the appointed fiduciary charged to
assure that the Debtors fulfill their obligations with respect to
required contributions to their Hourly-Rate Pension Plan,
believes that the latest amendments would aid the Debtors' exit
from bankruptcy.  FCI filed a proofs of claim on the HRP's behalf
for legally required contributions owed to the HRP.  The Claim
amount through Dec. 31, 2007, was identified as US$2,600,000,000.
FCI has recently conferred with the HRP's actuaries and confirmed
that the amount required to meet the statutory minimum funding
requirements for the HRP as of Sept. 30, 2008, will be in an
amount ranging from US$2,100,000,000 to US$2,300,000,000.

William H. Schorling, Esq., at Buchanan Ingersoll & Rooney PC, in
New York, noted that GM and Delphi have obtained a private letter
ruling from the U.S. Internal Revenue Service that the proposed
414(l) Transfer pursuant to the Amended GSA and MRA will
eliminate Delphi's obligations for all contributions due on or
before Sept. 30, 2008.  Effectuating the 414(l) Transfer will
substantially satisfy HRP's Claim -- HRP will also still have
claims for any unpaid amounts due in the future -- making the
Debtors' emergence from chapter 11 more viable, Mr. Schorling
stated.  He added that implementing the 414(l) Transfer will
avoid application of the provisions of the Pension Protection Act
to the unfunded HRP obligations, again aiding the Debtors' exit
from bankruptcy.  Finally, the 414(l) Transfer, according to
Mr. Schorling, should mitigate the risk that the PBGC would take
steps to terminate the HRP.

Representing the Pension Benefit Guarantee Corporation, John A.
Menke, Esq., avers that the amended GSA and MRA constitute an
overwhelmingly positive solution to some of the Debtors' major
pension obligations and eliminates what might be insurmountable
obstacles to a successful reorganization.  If the 414(l) transfer
occurs by Sept. 29, 2008, major benefits flow to the Debtors,
certain non-Debtor affiliates and the unsecured creditors.
Approval of the new deal, according to Mr. Menke, will relieve
the Debtors of billions of dollars of current liability for
contributions that would otherwise be due to their Hourly Plan
and that would have to be satisfied, probably in Cash lump sum,
before the Debtors could emerge.  Because Delphi's existing
liability for contributions to the hourly Plan will be erased by
the 414(l) Transfer, as soon ass possible after the first
transfer date, the PBGC said it will relinquish more than
US$1,200,000,000 in liens filed against Delphi's foreign non-
Debtor affiliates.

The Official Committee of Equity Shareholders also said it is not
objecting to the new GM/Delphi deal.  However, it reserved its
right to object to the confirmation of any Chapter 11 plan filed
and any modification in the Debtors' Chapter 11 cases.  It sought
to keep its right to object to confirmation of any chapter 11
plan that does not provide appropriate value to existing equity
in exchange for the releases granted in favor of GM.

     Splinter Unions Wary of Fate of Employees and Retirees

The IUOE, IBEW and IAM -- the Splinter Unions -- informed Judge
Drain that they are fully cognizant of the external constraints
of Delphi, and that they do not object to the conceptual
framework underlying the Motion. However, the Splinter Unions
said they are not yet in a position to assess how the proposed
implementation of the amendments to the GSA and MRA will affect
the employees and retirees represented by the Splinter Unions.

The Splinter Unions say they fully expect the Debtor and GM to
provide the answers they need to be able to negotiate a timely
implementation agreement so that the employees and retirees they
represent are fairly treated.

The Splinter Unions are represented by:

    Barbara S. Mehlsack, Esq.,
    Gorlick Kravitz & Listhaus, P.C.,
    17 State Street
    New York, N.Y. 1004
    bmehlsack@gkllaw.com

                   Parties Object to New Deal

(a) Senior Noteholders

CR Intrinsic Investors, LLC, and Highland Capital Management,
L.P., which collectively hold approximately US$495,000,000 in
principal amount of Delphi senior notes, noted that Debtors are
seeking approval of the "most important and far-reaching
settlement in this case and the fixing of central elements of a
plan of reorganization", on just 10 days' notice, without
providing the most basic information necessary for the Court to
evaluate the claims to be settled, and without any pretense of
adhering to the fundamental protections to which creditors are
entitled in connection with a plan of reorganization.

CR Intrinsic and Highland consequently asked the Court to deny
Delphi the authority to implement the amended GSA and MRA in
order to prevent the Debtors from entering into sweeping and far-
reaching agreements with GM that would irrevocably impact the
outcome of the chapter 11 cases and in effect dictate the terms
of any plan of reorganization.

Isaac M. Pachulski, Esq., at Stutman, Treister & Glatt P.C., in
Los Angeles, California, averred that Delphi is seeking approval
of what amounts to a sub rosa plan of reorganization, without
providing the kind of disclosure and procedural and substantive
protection to which creditors are entitled in connection with the
confirmation of a plan, and without any creditor vote.  According
to Mr. Pachulski, a sampling of just some of the provisions of
the Amended GSA highlights how pervasively these agreements will
dictate the terms of any plan and the ultimate outcome of the
Chapter 11 cases:

  (1) the Amended GSA includes comprehensive provisions for the
      allowance and treatment of GM's claims under any plan of
      reorganization.  Among other things,

       -- GM agrees to assume certain pension liability which
          is primarily rooted in prepetition services of
          employees who worked for GM at the time of the Delphi
          spin-off in exchange for an administrative claim.  Not
          only does an administrative claim entitle GM to
          priority payment but it also handcuffs the Debtors in
          treating this claim under a plan of reorganization.

       -- the Amended GSA also contemplates that GM would be
          entitled to an unsecured claim in the amount of
          US$2,500,000,000.  While GM would not be entitled to any
          recovery on the GM Unsecured Claim until other
          unsecured creditors receive at least a 20% recovery,
          both the GM Unsecured Claim and GM Admin. Claim would
          be entitled to specified, and special, treatment under
          any plan of reorganization pursuant to the Amended
          GSA.

       -- Distributions on account of the GM Claims are to be
          made by issuing preferred stock to GM which is not
          made available to any other constituent body of the
          Debtors, and the value of which remaining unknown.

  (2) The Amended GSA contemplates that the Debtors and
      their affiliates immediately release substantially all of
      their claims against GM and its affiliates on the
      effective date of the Amended GSA and reaffirm this
      release as of the date that the Debtors emerge from
      chapter 11.  The Amended GSA also requires that any
      future plan of reorganization provide that certain third
      parties, including the Creditors Committee, the Equity
      Committee, the DIP Agent, and the DIP Lenders, among
      others, release GM and its affiliates of substantially all
      of their claims against GM and its affiliates as of the
      Emergence Date.

  (3) The Amended GSA and Amended MRA leave little doubt that
      these agreements are to control and dictate the terms of
      any future plan of reorganization.  Specifically, the
      Amended GSA requires that any Delphi Plan contain
      provisions "clarifying that to the extent of any
      inconsistency between the terms of the Delphi Plan and
      [the Amended GSA] (solely as to the subject matters
      addressed in [the Amended GSA]), the terms of [the Amended
      GSA] will govern."

(b) Indenture Trustee to Senior Notes

Wilmington Trust Company, indenture trustee for US$2,000,000,000
in Delphi senior notes and debentures, asked the Court to deny the
Debtors' motion to implement the amended GSA and MRA.

Edward M. Fox, Esq., at K&L Gates LLP, in New York, said Delphi
is seeking an unauthorized modification of the Debtors' confirmed
Plan of Reorganization, opposing Section 1127 of the Bankruptcy
Code, which not only applies to proposed modifications of actual
plan language, but also to proposed modifications of plan-related
documents, particularly where the documents [were] an integral
part of the reorganization plan and confirmation order.

Pursuant to Section 1127(b), the proponent of a plan or the
reorganized debtor may modify the plan at any time after
confirmation of the plan and before substantial consummation of
the Plan...  The Plan as modified under the this subsection
becomes the Plan only if the circumstances warrant the
modification and the court, after notice and a hearing, confirms
the plan as modified, under Section 1129.

Mr. Fox also related that the GSA and MRA may not be amended
without the approval of the Creditors Committee, as provided for
in Section 12.2 of the Plan.  He added that the Debtors' proposal
to grant a general release to GM at this time is contrary to the
best interests of creditors, particularly since the Debtors may
well need additional assistance and support from GM in order to
consummate a plan of reorganization and emerge from bankruptcy.

(c) Creditors Committee

The Official Committee of Unsecured Creditors also asked the
Court to deny the Motion, citing that the immediate release
granted to GM and the size of the allowed administrative expense
claim to GM violate Section 1127 of the Bankruptcy Code, as the
original GSA and MRA were exhibits to the Debtors' confirmed
Chapter 11 plan.

Robert J. Rosenberg, Esq., at Latham & Watkins LLP, in New York,
said that if the proposed amendments to the GSA and the MRA are
approved, it will provide GM with extra ordinary consideration in
exchange for GM entering into transactions that are tremendously
beneficial to GM on its own.  These agreements represent no less
than the complete abdication by the Debtors of all control over
their destiny, without regard to the consequence to their
unsecured creditors, Mr. Rosenberg explained.

                  Delphi Addresses Objections

John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, noted that although certain
parties allege that the Debtors are requesting relief that is
not in the best interests of the estates and in breach of their
fiduciary duties, only these parties filed objections that remain
unresolved:

   -- the International Union of Electronic, Electrical,
      Salaried, Machine and Furniture Workers-Communication
      Workers of America and the United Steelworkers of America,
      which are continuing to collectively bargain
      implementation agreements with Delphi which would include
      their consent to Amended GSA and MRA

   -- the official committee of unsecured creditors; Wilmington
      Trust Company, a member of the Creditors Committee; and CR
      Intrinsic and Highland, whose interests are represented by
      both the Creditors Committee and WTC.

The Debtors furnished a chart summarizing their responses to
objections, a copy of which is available for free at
http://ResearchArchives.com/t/s?332f

The Debtors pointed out that their largest union, the United Auto
Workers, is not opposing to the Amended GSA and MRA.  They added
that the Equity Committee, Fiduciary Counselors, the PBGC, and
three unions have conveyed support or no objections.

Contrary to the assertions of the Creditors Committee, the
Amended GSA and MRA are the product of months of intense, arm's-
length bargaining between the Debtors and GM during which the
Debtors clearly considered various alternatives and options to
the Amended GSA and the Amended MRA, Mr. Butler clarified.

Mr. Butler recounted that when Appaloosa Management, L.P., and
the other Plan Investors failed to participate in the April 4,
2008 closing, Delphi's Board of Directors convened the first of
nine meetings that would be held between that date and the
Board's ultimate approval of the Amended GSA and MRA on Sept. 12.
The Debtors also met with the Creditors Committee and held
discussions with GM about a modified plan of reorganization
framework involving a stand-alone plan to be funded internally
through adjustments to the recoveries of GM, general unsecured
creditors, and other stakeholders.  Those discussions concluded
on June 25, when GM informed Delphi that it was not willing to
provide the level of incremental financial support that would
have been necessary to make a standalone plan of reorganization
framework possible under the RPOR as it existed at that time.

Promptly after learning of GM's decision, Delphi began a process
of identifying and assessing a range of specific strategic
alternatives that included POR modifications providing for debt
financing and equity financing through a rights offering
backstopped by creditors or other potential investors.  In
addition, in mid-July 2008, Delphi and GM re-engaged in
constructive discussions that addressed, among other things, the
incremental financial support needed to make the revised POR a
realistic business plan that should attract interest in the
capital markets.  These efforts have resulted in a number of
significant developments since April 2008, all of them
accomplished against the backdrop of deteriorating macroeconomic
and automotive industry conditions and turbulence in the capital
markets, Mr. Butler detailed.

Throughout this process, Delphi's senior leadership acted with
diligence and in accordance with its fiduciary duty to maximize
the business enterprise value of Delphi and its affiliates and
thereby maximize the opportunities for recoveries by the Debtors'
stakeholders.  In doing so, Delphi, according to Mr. Butler,
considered the Creditors Committee's demand that the Debtors play
a high-stakes game of "chicken" with GM up through the 414(l)
Transfer deadline of Sept. 29, 2008, in the hopes that GM would
eventually agree to what the Creditors Committee was really
seeking --- a form of guaranteed recovery for general unsecured
creditors from GM.  Delphi ultimately rejected that approach
because it believed that obtaining GM's commitment to take on an
upsized 414(l) Transfer, assume prompt financial responsibility
for other post-employment benefits, and provide what the Debtors
concluded was the additional required support for the RPOR was,
on balance, more beneficial to the Debtors and their stakeholders
than holding out for more at the risk of losing everything.

Although the Creditors' Panel may not agree with their decisions
for failing to initiate litigation or use other "tools" against
GM, the Debtors believe that their decisions since April 4 are
sound.  Mr. Butler avers that both the timeline of events and the
breadth of support GM is providing through the Amended GSA and
the Amended MRA demonstrate that the Debtors did not "surrender"
or abdicate control of these cases to GM.  The Debtors firmly
believe that the Amended GSA and MRA are in the best interests of
the estates, and that entry into the agreements is fundamentally
necessary for any meaningful recovery to stakeholders.

        Creditors Committee Renews Support for GM/Delphi

Delphi creditors have concurred to proposed amendments to
agreements between the auto-parts maker and its former parent
General Motors Corp., removing one hindrance to Delphi's exit
from bankruptcy after almost three years, Bloomberg News reports.

Judge Drain approved the Amended GSA and MRA after Delphi reached
a deal with the Creditors Committee.  Mr. Butler, Delphi's
counsel, told the Court at the Sept. 25 hearing that the
Creditors Committee tentatively agreed to amendments that would
change how creditors are paid in the company's restructuring as
well as the terms of preferred stock GM would receive under an
amended POR.

The hearing was originally scheduled for Sept. 23, but was
adjourned for two days to allow the Debtors and the Creditors
Committee to reach common ground.

The Creditors Committee's counsel, Robert J. Rosenberg, Esq., at
Latham & Watkins LLP, in New York, confirmed the deal.  "All's
well that ends well," Mr. Rosenberg, after retracting the
Committee's objection to the new GM deals, which would allow
Delphi to exit bankruptcy.

"Today was a major milestone in these Chapter 11 cases,"
Mr. Butler said at the Sept. 25 hearing.

Delphi and the Creditors Committee engaged in negotiations
regarding the Amended GSA and MRA.  Possible scenarios, according
to Reuters, included GM accepting preferred Delphi shares, or
splitting administrative proceeds 50-50 with Delphi's unsecured
creditors.  The Debtors and GM reached a first amendment to the
Amended GSA on Sept. 25, 2008, which added these provisions:

   1. "GUC Percentage" shall mean .2 multiplied by the amount of
      allowed general unsecured claims (exclusive for all
      purposes of this section 1.57(a) of holders of TOPrS
      Claims, as defined in the 2007 Plan) divided by the sum of
      US$2.055 billion and the product of .2 and the amount of
      allowed general unsecured claims.

   2. If any condition for the receipt by GM of the preferred
      stock described in Section 4.04(c) of the GSA is not
      satisfied or waived by GM, holders of general
      unsubordinated unsecured claims (exclusive for all
      purposes of this section 4.04(a) of TOPrS Claims, as
      defined in the 2007 Plan) shall receive 50% of all
      distributions that otherwise would be made to GM on
      account of its administrative expense claims allowed
      pursuant to this Section 4.04(a) to the extent necessary
      for such holders to receive an aggregate distribution,
      exclusive of any value received as a result of
      participation by such holders in any rights offering or
      similar undertaking, on account of their allowed general
      unsubordinated unsecured claims equal in value of up to
      US$300 million.

   3. If all conditions for the receipt by GM of the preferred
      stock described in the preceding sentence are satisfied,
      value equal (at Plan value) to an amount of up to the GUC
      Percentage multiplied by the stated value of the preferred
      stock otherwise distributable to GM under the first
      sentence of this Section 4.04(c) shall be distributed to
      holders of general unsubordinated unsecured claims
      (exclusive for all purposes of this section 4.04(c) of
      holders of TOPrS Claims, as defined in the 2007 Plan) to
      the extent necessary to permit the holders of general
      unsubordinated unsecured claims to receive distributions,
      exclusive of any value received as a result of
      participation by such holders in any rights offering or
      similar undertaking, equal to 20% of their allowed general
      unsubordinated unsecured claims.

   4. Any amendments to the Amended GSA or the Amended MRA that
      are materially adverse to the Debtors' estates shall
      require the consent of the Creditors Committee.

A full-text copy of the First Amendment to the Amended GSA is
available for free at http://ResearchArchives.com/t/s?332e

Delphi also posted a summary of indicative terms for the
preferred stock it will issue to GM pursuant to a POR.  The
summary provides that Shares of Series D Convertible Preferred
Stock, par value US$0.01 per share, with an aggregate initial
stated value of US$2,055,000,000 will be issued to GM.  Delphi may
pay cash to GM to reduce the number of shares issued at a price
equal to the Stated Value per share.  A copy of the Summary is
available for free at http://ResearchArchives.com/t/s?332d

                   About General Motors

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

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

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

                      About Delphi Corp.

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

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

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

(Delphi Bankruptcy News, Issue 146; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: Gets Court's Nod to Modify Employee and Union Deals
----------------------------------------------------------------
Judge Robert Drain of the U.S. Bankruptcy Court for the Southern
District of New York overruled all objections and granted the
request of Delphi Corp. to change effective dates of certain
Memorandum of Understanding provisions, and to negotiate the
changes with Delphi's unions.

Delphi may now begin talks with unionized workers on freezing
contributions to existing pension plans.  Judge Drain overruled
an objection by the Official Committee of Unsecured Creditors,
which said turmoil in the auto industry made it a bad time to
create a new benefit plan for senior managers.

The United Steelworkers of America says it is committed to
continued good-faith negotiations to reach a mutually acceptable
implementation agreement in connection with the Delphi's request.

Representing USW, Hanan B. Kolko, Esq., at Meyer, Souzzi, English
& Klein, P.C., informs the Court that the USW is cognizant of the
circumstances giving rise to the Debtors' request.  USW, however,
submitted a limited objection due to the short time which the it
has had to review and evaluate the implementation agreement and
engage in negotiations, and because the negotiations have not yet
resulted in an agreement.

Former Delphi retires who are former General Motors Corp.
executives submitted to the Court their concerns about the impact
the proposed modification of the GSA and MRA would bring to their
retirement and post-retirement benefits.  These retirees are
especially apprehensive that they will be excluded from the
Supplemental Executive Retirement Program, and they ask the Court
for the (i) continuation of their SERP payments or (ii) fairly
determined cash settlement for their benefits.

The Delphi retirees are, among others, David J. Bastin, Allen W.
Besey, Garry J. Brooks, Larry F. Cracaft, Robert L. Fatzinger,
Edward A. Golick, James B. Hegstrom, Weslay Don Helm, Robert P.
Hoffman, John R. Holmes, William M. Jenkins, Michael L. Julius,
Larry D. Kesler, Bruce E. Kirkhan, John F. Lambert, Michael R.
Lippa, Ronald R. Malanga, Terry L. Marquis, Dennis Mead, John R.
Neville, Jacob Pikaart, Jerry Shafer, Francis H. Titzenhaler,
Charles L. Rose, Allan B. Rowley, Patrick J. Straney, Michael K.
Stout, Ronald Turkett, Wyne J. Varady, and Kenneth G. Wingeier.

Dawn M. Eaton, a salaried worker at Delphi, objected to service
costs and aspects of the pension freeze and follow-on plans.  She
pointed out that the (i) service cost for the Motion was
frivolous expense of US$4,000,000, and (ii) the Defined
Contribution Plan should be an administrative expense claim.

         Cred. Committee Supports Pension Plan Freeze

The Debtors noted that they have received only four timely filed
objections out of more than 12,000 parties affected by their
request for authority to modify the hourly and salaried pension
programs.

John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, had informed the Court that while
the Committee objected to the Motion, it actually concedes its
support for the freezing of the Debtors' pension plans and most
aspects of the follow-on plans.  The Creditors Committee, he
points out, also concedes that the relief requested will save the
estates money, with the save and replacement package saving
millions of dollars per quarter.

Mr. Butler added that the International Union of Electronic,
Electrical, Salaried, Machine and furniture Workers-Communication
Workers of America have raised no substantive issue in its
objection, and the Debtors fulfilled the IUE-CSA's discovery
request.  The Debtors believe there's no need for them to address
the IUE-CWA objection; the Debtors instead request the Court to
strike the IUE-CWA objection to the extent that it is not
withdrawn prior to the hearing.

With regards to the objection asserted by Ms. Eaton, the Debtors
noted that the objection was untimely and assert that the Court
should strike or otherwise overrule that objection about the
objectors concern that the service costs exceeded US$4,000,000.
For the sake of clarification, the Debtors declare that the
service costs were approximately US$400,000.

The Debtors pointed out that the cost is justified by the
millions of dollars in savings that would be achieved if the
Court approves the Motion.

According to Bloomberg News, Mr. Butler said, "[i]t would be
patently unreasonable" to create replacement plans for everyone
except 460 top executives."

                      About Delphi Corp.

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

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

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

(Delphi Bankruptcy News, Issue 146; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


FORD MOTOR: Repays US$1.5BB in Debt, Faces 3 Payment Obligations
----------------------------------------------------------------
Jeff Green at Bloomberg News reports that Ford Motor Co. said it
repaid US$1.5 billion in debt that was due Oct. 1, 2008.

As reported in the Troubled Company Reporter on Oct. 1, 2008,
analysts said that Ford Motor might repay the debt without tapping
a US$11.5 billion revolving credit line, which it secured as part
of its 2006 restructuring.  The US$1.5 billion 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%."

Bloomberg News relates that Ford Motor spokesperson Bill Collins
said in an interview that the payments were made in a "routine
transaction."

"It means they paid with cash.  If they had tapped their revolver,
they would have had to file something because it's material, and
we would know if they had come to market for new debt," Bloomberg
quoted Morgan Keegan & Co. fixed-income analyst Pete Hastings as
saying.

Bloomberg News states that Standard & Poor's credit analyst Robert
Schulz said in an interview, "They have sufficient cash and
liquidity for this transaction."

According to data obtained from Bloomberg, Ford Motor faces three
more major payment obligations:

  -- US$4.3 billion due on Jan. 12, 2009;
  -- US$1.5 billion due on May 22, 2009; and
  -- US$5.0 billion due on Oct. 28, 2009

            Government's US$25 Billion Bailout Loans

Heidi M. Moore at The Wall Street Journal relates that President
George W. Bush signed on Sept. 30, 2008, a
US$25 billion in bailout loans to help automakers produce more
fuel-efficient vehicles.  According to Ms. Moore, automakers can
secure the loans at about half the going market rate.  Ford Motor,
along with Chrysler LLC and General Motors won't have to repay the
loans for five years, Ms. Moore states.

According to Mike Ramsey and Alan Ohnsman at Bloomberg News, Ford
Motor's car and truck sales dropped 35% to 120,788 in September
2008, compared to 184,612 in September 2007, as tighter credit
scared off consumers.

Alex Ortolani at Bloomberg News relates that Ford Motor it told
its 2,000 suppliers to understand "what they're doing inside their
operations that could be funded" and figure out what programs
would make them eligible for part of the US$25 billion loans.

According to Bloomberg News, Ford Motor sees the loans as a chance
to strengthen a supply base that has suffered this year due to low
auto sales, high raw-material costs, and a tight credit market.

                     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.




NOMURA HOLDINGS: To Establish Stock Broking Company in Malaysia
---------------------------------------------------------------
Nomura Holdings Inc. has gained approval from the Securities
Commission of Malaysia to establish a new stock broking company in
Malaysia.

Malaysia is becoming an increasingly important financial district
in South East Asia, particularly with the rapid development of
Islamic finance in recent years.  The new stock broking company
will allow Nomura to further support the Malaysian capital markets
by attracting more fund flow from the Middle East and other
foreign markets into Malaysian stocks and Islamic financial
instruments.

"We are delighted that we are now in a position to enhance our
Malaysian operations and build on Nomura's strategy of delivering
Asia to the world," said Satoshi Imai, head of Nomura's Malaysia
office.  "By integrating Malaysia into our global equity broking
operations, more of our clients will be able to benefit from the
suite of Asian products Nomura offers."

Nomura has had a presence in Malaysia since 1993 with a particular
focus on providing corporate advisory services to Malaysian
institutions.  The announcement is a further demonstration of
Nomura's strong commitment to Asia through the expansion and
enhancement of its capabilities.

                      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.


SANYO ELECTRIC: Ties Up With Nippon Oil to Set Up Solar Cell JV
---------------------------------------------------------------
Sanyo Electric Co. Limited and Nippon Oil Corp would start talks
to set up a thin-film solar cell joint venture, Kiyoshi Takenaka
of XFN ASIA reports.

The companies, the report relates, aimed to set up a new company
in April 2009, and to commercialize thin-film solar cells by
2010/11.

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.



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

HYUNDAI MOTOR: Sept. Sales Up 0.6% On High Overseas Demand
----------------------------------------------------------
Hyundai Motor Co.'s September domestic sales plunged 35.3% to
31,449 vehicles, Asia Pulse reports.  Hyundai attributed the sharp
decline in domestic sales to sporadic partial strikes over wage
negotiations and weak demand on higher oil prices, the report
says.

In the first nine months of this year, Asia Pulse says Hyundai's
domestic sales fell 3.5% from a year ago to 440,763 units, while
overseas sales gained 12.3% to 1.61 million units.

September sales meanwhile increased 0.6% from a year ago, helped
by robust overseas demand, Asia Pulse says.  The company, the
report relates, sold 190,227 units in September, from 189,031 a
year ago.  According to the report, the company sold 158,778 units
abroad last month, 13.1% higher than the 140,428 units sold a year
ago.

On Sept. 29, 2008, the Troubled Company Reporter-Asia Pacific,
citing Agence France-Presse, reported that Hyundai reached
agreement with its union to end an employee strike, which costs
the company more than US$600 million dollars in lost production.
That report said some 95% of the 45,000 union members voted on the
deal covering working conditions and wages and endorsed it by a
54-43 margin.

On August 29, 2008, the Troubled Company Reporter-Asia Pacific,
citing Reuters, reported that unionized workers at Hyundai and Kia
Motors Corp launched another round of partial strikes over a wage
deal and working conditions.  Union members then told Reuters they
also planned to stage further partial strikes if they fail to
reach agreements with management.  The same report said Hyundai's
unionized workers started a two-hour walkout on Aug. 27 which was
expected to cost the company 1,998 vehicles in lost production.

"This year's negotiation was tougher than ever as we had some
difficult issues to resolve.   We will continue our efforts to
improve labor-management relations and establish a mature
negotiating culture by further developing a spirit of mutual
understanding and conciliation between the two sides," AFP cited a
Hyundai spokesman as saying.

According to AFP, under the deal, the company will abolish its
all-night shift system in September next year, raise the monthly
base salary by 5.61% and pay a bonus equivalent to three months'
salary, and give a lump-sum payment of KRW3 million (almost
US$2,600).

The company's second-quarter net profit fell 10.6% year-on-year
despite record sales, due to foreign exchange losses on debt
repayments, while  April-June net profit was KRW546.9 billion
(US$475 million), down from KRW611.5 billion a year earlier, AFP
relates.

Headquartered in Seoul, South Korea, Hyundai Motor Company
-- http://www.hyundai-motor.com/-- has been selling cars in the
US since 1986, but it only started selling its heavy trucks
stateside in 1998.  Hyundai produces 14 models of cars, SUVs,
and minivans, as well as trucks, buses, and other commercial
vehicles.  The company reestablished itself as South Korea's
leading carmaker in 1998 by acquiring a 51% stake in Kia Motors
(since reduced to about 43%).  Hyundai's models for the North
American market include the Accent and Sonata; models sold
elsewhere include the GRD and Equus.  The company also
manufactures machine tools for factory automation and material-
handling equipment.

The Troubled Company Reporter-Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the steep drop of the United States dollar, high oil prices and
union demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.

Chairman Chung was indicted early in May 2006 for fraud charges.

Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.

On Feb. 5, 2007, a South Korean court handed down the sentence
to Mr. Chung for illegally raising US$110 million in slush funds
and bribing government officials.  Mr. Chung was released on
bond and continues to run the auto conglomerate.

In May 2008, Yonhap News reported that a group of the company's
shareholders filed a civil case against Mr. Chung to claim
damages for heavy losses allegedly suffered through his
mismanagement and other corporate shenanigans.

According to the report, the shareholders, led by a civic group
called Solidarity for Economic Reform, filed the lawsuit with
the Seoul Central District Court, asking Mr. Chung to pay
KRW563 billion (US$537 million) in damages to Hyundai Motor.

The lawsuit came a day after prosecutors again demanded a six-
year jail term for Mr. Chung for embezzlement and breach of
trust, Yonhap said.


SSANGYONG MOTOR: Vehicle Sales Decline 6.5% in September
--------------------------------------------------------
Ssangyong Motor Co.'s September vehicle sales fell 6.5% from a
year earlier, Yonhap News reports.

According to the report, Ssangyong sold 8,950 vehicles last month.
Domestic sales slid 20.6% to 3,501 units, while exports rose 5.4%
to 5,449 units, the report says.

Yonhap News reported in August that Ssangyong Motor posted a loss
of KRW35.7 billion (US$34.5 million) in the second quarter of
2008 compared with a profit of KRW6.3 billion in the same period
last year due to a drop in sales of its sport-utility vehicles.
The automaker also posted an operating loss of KRW32.4 billion
in the current period, shifting from an operating profit of
KRW12.7 billion, the same report said.

Yonhap News added that Ssangyong Motor's sales fell 19 percent
to KRW651 billion over the second quarter.  Vehicles sales in
the first half fell 26 percent from a year earlier to 49,802
units.  Domestic sales dropped 32.5 percent to 21,047 units in
the first six months,and overseas sales also sank percent to
28,755 units over the cited period.

Separately, a Troubled Company Reporter-Asia Pacific report on
Aug. 7, 2008, citing Yonhap News, said Ssangyong Motor shut down
its sole plant in Korea for 18-days from July 31 until Aug. 17.

The shutdown, Yonhap News said, could cost the company KRW2.2
trillion (US$2.16 billion) in lost production.

According to that report, Ssangyong shut its auto assembly plant
in Pyeongtaek, about 65 kilometers south of Seoul, to adjust
production in reaction to slowing sales.

Yonhap News also reported that the plant shutdown is the first for
Ssangyong since it idled some of its production lines in May
because of sluggish demand.

Analysts told Yonhap News that higher diesel prices in South
Korea and a stagnant economy have led Ssangyong to curtail
production.

In July, Yonhap News said Ssangyong saw its domestic sales plunge
67 percent on-year to 1,902 units, and during the first six months
of this year, the company sold 26 percent fewer vehicles as
consumers shunned its gas-guzzling sport-utility vehicles.

However, Kevin Lee, a Ssangyong spokesman, told Yonhap News that
the shutdown was aimed at retooling its painting equipment at
the plant, rather than cutting production to reduce its
inventory.

"In the first 20 days of July, our sales rose 120 percent from a
year earlier," Mr. Lee said declining to say how many vehicles
the company sold during the period.

Yonhap News noted that Ssangyong was the only automaker among the
country's five players to post a decline in vehicle sales in July,
and, as local brokerage Shinyoung Securities said, would find it
difficult "to recover its sales under current business
conditions."

Meanwhile, Yonhap News said workers at Ssangyong recently voted
to approve a new wage agreement, putting an end to a series of
partial strikes.

According to Yonhap News, 64% of some 5,200 union members
approved a 4.6 percent increase in monthly basic salary and a
bonus payment of KRW2 million (US$2,000) to encourage them to
"overcome a management crisis."

Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co.
Ltd. -- http://www.smotor.com/kr/index.jsp/-- is a manufacturer
of automobiles primarily engaged in production of sports utility
vehicles (SUVs) and recreational vehicles (RVs).  The Company's
production is grouped into four lines: SUVs under brand names
REXTON, KYRON and ACTYON; sports utility trucks (SUTs) under the
brand name ACTYON Sports; passenger cars under brand name
Chairman, and multi-purpose vehicles (MPVs) under the brand name
Rodius.  It also provides automobile parts such as coolers,
engine oil filters, headlamp bulb and others. During the year
ended December 31, 2007, the Company had a production capacity
of 219,220 units of vehicles and its actual production output
was 122,857 units of vehicles.  The Company has two
manufacturing factories in Pyeongtaek and Changwon.



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

* MALAYSIA: Political Crisis Cripples Economy and Investment
------------------------------------------------------------
Antara News reports that the political crisis in Malaysia since
the March elections has stifled the stock market, deterred foreign
investment and crimped growth forecasts.

Citing economic observers, the report said that there is no end to
the uncertainty as Prime Minister Abdullah Ahmad Badawi still
clinging to power despite mounting calls for a speedy departure.

According to the report, the prospect of a messy change of
government -- the first in the history of Malaysia, which has been
ruled by the Barisan Nasional coalition since independence in 1957
-- is making investors very nervous.

The Kuala Lumpur Composite Index, which reached an all-time high
of 1,524 points in January, dived to 1,157 shortly after the March
elections that saw the government lose its two-thirds majority in
parliament for the first time, the report notes.

"Investor sentiment is still weak and foreign funds have been
pulling out of the market.  The political scenario is definitely a
deterrent to foreigners."  Senior Analyst of TA Securities Tephen
Soo was cited quoted by Antara as saying.

Partly due to the domestic political turmoil, the Malaysian
Institute of Economic Research has cut its 2008 growth projection
to 4.6%, down from a 5.7% forecast by Deputy premier Najib Razak,
the report adds.



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

ALCHO HOLDINGS: Shareholders Placed Company Under Liquidation
-------------------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Alcho Holdings Limited resolved that the company
be liquidated and appointed Alison Ann Turner, chartered
accountant of New Plymouth, as liquidator.

The liquidator can be reached at:

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


AMALGAMATED WOOL: Shareholders Appointed Naylor as Liquidator
-------------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
shareholders of Amalgamated Wool Exporters (Hawera) Limited
appointed John David Naylor, chartered accountant of Palmerston
North, as liquidator on Aug. 28,  2008.

Creditors and shareholders may direct their inquiries to:

         A. G. Doig
         Naylor Lawrence & Associates
         4th Floor, Guardian Trust House
         corner of Main Street and The Square
         Palmerston North 4410
         Telephone: (06) 357 0640
         Facsimile: (06) 358 9105


ARAMIS HOLDINGS: Liquidators Set November 3 as Claims Bar Date
--------------------------------------------------------------
Pursuant to section 241(2)(c) of the Companies Act 1993, the High
Court has appointed Vivien Judith Madsen-
Ries, insolvency specialist, and Colin Thomas McCloy, chartered
accountant, as liquidators of  Aramis Holdings Limited fka
Combined Floors (2004) Limited.

The liquidators set Nov. 3, 2008, as the last day for creditors to
file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Attn: Vivian Fatupaito
          PricewaterhouseCoopers
          188 Quay Street (Private Bag 92162)
          Auckland
          Telephone: (09) 355 8000
          Facsimile: (09) 355 8013


BENJAMIN HOMES: Liquidators Set November 3 as Claims Bar Date
-------------------------------------------------------------
Pursuant to section 241(2)(c) of the Companies Act 1993, the High
Court has appointed Vivien Judith Madsen-Ries, insolvency
specialist, and Colin Thomas McCloy, chartered accountant, as
liquidators of  Benjamin Homes Limited.

The liquidators set Nov. 3, 2008, as the last day for creditors to
file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Attn: Vivian Fatupaito
          PricewaterhouseCoopers
          188 Quay Street (Private Bag 92162)
          Auckland
          Telephone: (09) 355 8000
          Facsimile: (09) 355 8013


CENTRAL OTAGO: Goes Into Receivership
-------------------------------------
Central Otago Vintners Ltd has gone into receivership after
defaulting on its loan payments, The Southland Times reports.
Duncan Fea and Alistair King, of WHK Cook Adam Ward Wilson were
appointed as receivers to the company on Sept. 19, 2008.

According to Southland Times, Mr. Fea said the company had
defaulted on its loan payments.  However, Mr. Fea declined to
comment on how much the loan was or why the company had failed to
pay.

Mr. Fea would assess how much the winery, including land and
buildings, was worth and file a report by Nov. 30, 2008, the
report relates.

Southland Times notes that Director Robin Schulz announced the
construction of the new winery in April 2006.  By April 2007 stage
one had been completed.

The Central Otago Vintners is a NZ$10 million winery located at
the former Heartland Prime Meat processing plant on Rippondale Rd.
in Cromwell.  The company  was to have been New Zealand's biggest
pinot noir winery, the report says.


MCLEAN TOWER: Proofs of Debt Due on November 1
----------------------------------------------
Pursuant to section 241(2)(c) of the Companies Act 1993, the High
Court has appointed Vivien Judith Madsen-Ries, insolvency
specialist, and Anthony Boswell, chartered accountant, as
liquidators of McLean Tower Limited.

The liquidators set Nov. 1, 2008, as the last day for creditors to
file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Attn:  Janet Sprosen.
          PricewaterhouseCoopers
          188 Quay Street (Private Bag 92162)
          Auckland
          Telephone: (09) 355 8000
          Facsimile: (09) 355 8013


NORTH SHORE: Liquidators Set November 3 as Claims Filing Deadline
-----------------------------------------------------------------
Pursuant to section 241(2)(c) of the Companies Act 1993, the High
Court has appointed Vivien Judith Madsen-Ries, insolvency
specialist, and Colin Thomas McCloy, chartered accountant, as
liquidators of North Shore Carburettor Specialist (1987) Limited.

The liquidators set Nov. 3, 2008, as the last day for creditors to
file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Attn: Vivian Fatupaito
          PricewaterhouseCoopers
          188 Quay Street (Private Bag 92162)
          Auckland
          Telephone: (09) 355 8000
          Facsimile: (09) 355 8013


OPTIMUM PROPERTY: Commences Liquidation Proceedings
---------------------------------------------------
The High Court at Auckland convened a hearing on Sept. 26, 2008,
to consider an application putting Optimum Property Solutions
Limited into liquidation.

The application was filed on June 13, 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.


VISUALEYES DIGITAL: Commences Liquidation Proceedings
-----------------------------------------------------
The High Court at Auckland convened a hearing on Sept. 24, 2008,
to consider an application putting Visualeyes Digital Signage
Limited into liquidation.

The application was filed on May 27, 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.


XELOR & RALLOD: Shareholders Appointed Merlo as Liquidator
----------------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Xelor & Rallod Limited appointed Robert Laurie
Merlo, insolvency practitioner of Auckland, as liquidator on Aug.
26, 2008.

The liquidator can be reached at:

          R. L. Merlo
          Merlo Burgess & Co. Limited
          PO Box 51486
          Pakuranga, Auckland
          Telephone: (09) 520 7101
          Facsimile: (09) 529 1360
          Email: robmerlo@merloburgess.co.nz


ZHAN HOLDINGS: Commences Liquidation Proceedings
------------------------------------------------
The High Court at Auckland convened a hearing on Sept. 24, 2008,
to consider an application putting Zhan Holdings Limited into
liquidation.

The application was filed on May 27, 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.


* NEW ZEALAND: Insolvencies Increased in Last Five Years
--------------------------------------------------------
Insolvencies in New Zealand have been rising for the last five
years, the National Business Review reports, citing statistics
from the Insolvency and Trustee Service.

However, the report relates, the introduction of new classes of
insolvency has dropped the figure for bankruptcies in the last
year.

According to the report, there were 3,593 bankruptcies in the
2006-2007 financial year, while for the financial year end June
2008 there were 3,806 insolvency procedures including
bankruptcies, no asset procedures and summary installment orders.
There were 2792 bankruptcies in 2003-2004, the report says.

The Business Review notes that liquidations also peaked in the
2006-2007 financial year at 183, stayed about the same last year
at 182, but this year have almost doubled for the months of July
and August from the previous year.



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

* PHILIPPINES: DBCC Lowers Growth Projection for 2008 and 2009
--------------------------------------------------------------
The Development Budget Coordination Committee (DBCC) has again
lowered its growth forecast from 5.5% to 6.4% to 4.4% to 4.9% in
2008 and from 6.1% to 7.1%  to 4.1% to 5.1% in 2009.  The DBCC
noted that the economy would not be spared from the ill-effects of
a possible recession in the United States, Philippine Daily
Inquirer reports citing a senior official.

"The economic managers have accepted my suggestion to revise the
Philippine economic growth projections downwards in the light of
recent global developments," Economic Planning Secretary Ralph
Recto was quoted by the PDI as saying.

According to the report, the US accounts for about 17% of
Philippine exports and hosts a significant number of Filipinos.
Overseas Filipinos' income remittances to their families help
drive the Philippine economy.


* PHILIPPINES: Domestic Liquidity Up by 4.1% in July
----------------------------------------------------
Based on the Depository Corporations Survey (DCS), domestic
liquidity or M3 grew by 4.1 percent year-on-year in July 2008,
slightly lower than the 5.1 percent growth in June.  On a month-
on-month seasonally adjusted basis, M3 remained broadly stable as
it declined marginally by only 0.02 percent in July.  The data
were generated from the Financial Reporting Package (FRP), the new
system of bank reports that is consistent with the International
Accounting Standards (IAS) and International Financial Reporting
System (IFRS).

The expansion in domestic liquidity continued to be driven by net
foreign assets (NFA) which grew by 12.5 percent in July, albeit
lower than the 17.7 percent growth posted in June.  Net domestic
assets (NDA) grew marginally by 0.4 percent in July—a slowdown
from the previous month’s growth of 1.5 percent—as the growth of
net domestic credits (at 5.9 percent) was more than offset by the
decline in the Net Other Items account, which dropped by
22.3 percent.  Net claims on the public sector fell by 6.6 percent
in July despite the increase in lending to local governments and
other public entities, as the increase in credits to the National
Government (NG) was offset by the buildup in NG’s deposits with
banks.  By contrast, credits extended to the private sector
increased by 12.8 percent in July from 11.8 percent in June,
sustained partly by production loans to the agriculture and
utilities sectors.

BSP Governor Amando M. Tetangco, Jr. observed that as a leading
indicator of future economic activity, domestic liquidity provides
insights on depository corporations’ financial intermediation
activities in support of economic growth at the same time that it
is also an important indicator of monetary conditions.


* PHILIPPINES: Posts 23.9% Growth of Outstanding Loans of Banks
---------------------------------------------------------------
Outstanding loans of universal and commercial banks including
reverse repurchase agreements (RRPs) continued to register strong
growth in July at 23.9 percent, a slight deceleration from the
previous month’s growth of 24.2 percent, data from Bangko Sentral
ng Pilipinas shows.  Net of RRPs, loans outstanding continued to
accelerate at 18.5 percent in July from 18.1 percent in June.  BSP
Governor Amando M. Tetangco, Jr. noted that these developments
indicate that liquidity in the financial system remains ample,
providing the financial resources necessary for sustaining
economic growth.

Preliminary data for July was obtained from the new system of bank
reporting under the Financial Reporting Package (FRP) which adopts
the detailed classification of the 1994 Philippine Standard
Industrial Classification (PSIC) for international comparability.
The FRP classified lending by production activities (covering 16
economic sectors) and by household consumption purposes (with
three economic categories).

Lending to production sectors, which has been accelerating since
May, grew by 16.4 percent in July.  All sectors recorded
expansions in lending, with the exception of fishing, mining and
quarrying, and financial intermediation which posted contractions.
The expansion in lending was led by these  sectors:

   * Agriculture (25.8 percent);
   * Electricity, gas, and water (58.9 percent);
   * Wholesale and retail trade (21.7 percent);
   * Transport, communication, and storage (70.1 percent); and
   * Real estate, renting and business services (14.4 percent).

Meanwhile, lending for household consumption decelerated to
18.0 percent from the previous month’s 22.0 percent as auto loans
registered a decline, in contrast to the previous month’s double-
digit growth following the continued rise in fuel prices.  This
was partially offset by the growth in credit card receivables
which continued to grow strongly at 27.9 percent.

BSP Governor Tetangco noted that bank lending is an important
economic indicator because credit conditions reflect confidence in
the economy, which in turn, is a key ingredient for the effective
functioning of the markets.


* PHILIPPINES: BSP Releases 2007 Int'l Investment Position
----------------------------------------------------------
The Bangko Sentral ng Pilipinas (BSP) disclosed the release of the
Report on the 2007 International Investment Position (IIP) of the
Philippines.

The IIP is a companion framework to the Balance of Payments (BOP)
statistics.  While the BOP is a statistical statement that records
the country’s transactions or flows with the rest of the world for
a given period, the IIP summarizes the country’s stock of
financial claims on and financial liabilities to the rest of the
world as of a specific reporting period.  Unlike the BOP, which is
reported quarterly, the IIP is released annually with a lag of
nine months.  Similar to the BOP, however, the assets and
liabilities in the IIP are classified broadly as direct
investments, portfolio investments and other investments.

Preliminary IIP data as of end-December 2007 showed a significant
improvement in the country’s net liability position at
US$27.4 billion compared to US$31.3 billion in end-2006.  This
positive development emerged as total financial assets or claims
of residents from the rest of the world grew by 33.1 percent
compared to the level in 2006 to reach US$67.1 billion, while
total external financial liabilities rose by only 15.5 percent to
US$94.4 billion.  The improvement in the net IIP reflected the
stronger external payments position in 2007, with the BOP posting
a surplus of US$8.6 billion, or US$4.8 billion higher than the
US$3.8 billion surplus registered in 2006.  Higher foreign
exchange receipts allowed residents to build up their financial
assets and repay ahead of their maturities some foreign
obligations of both public and private borrowers.

By sectoral classification, the BSP and Banks as a group recorded
net external asset positions at end-December 2007.  In particular,
the BSP’s net external asset position improved considerably by
48.3 percent as of end-December 2007 to US$33.5 billion, from the
year-ago level of US$22.6 billion.  Ample foreign exchange
liquidity allowed the BSP to accumulate reserve assets and prepay
some of its borrowings.  Banks’ net asset position also
strengthened to US$6.7 billion from the previous year’s level of
US$6.3 billion.  On the other hand, the General Government and
Other Sector continued to be net users of foreign resources, with
net liability positions of US$29.3 billion and US$38.2 billion,
respectively, from US$27.7 billion and US$32.5 billion in 2006.



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

STAM SHIPPING: Creditors' Proofs of Debt Due on October 28
----------------------------------------------------------
The creditors of Stam Shipping Pte. Ltd. are required to file
their proofs of debt by October 28, 2008, to be included in the
company's dividend distribution.

The company's liquidators are:

         Low Sok Lee Mona
         Teo Chai Choo
         c/o Low, Yap & Associates
         4 Shenton Way
         #04-01 SGX Centre 2
         Singapore 068807


TRISTON INVESTMENT: Creditors' Proofs of Debt Due on October 28
---------------------------------------------------------------
Triston Investment Pte Ltd, which is in voluntary liquidation,
requires its creditors to file their proofs of debt by October 28,
2008, to be included in the company's dividend distribution.

The company's liquidators are:

          Low Sok Lee Mona
          Teo Chai Choo
          c/o Low, Yap & Associates
          4 Shenton Way
          #04-01 SGX Centre 2
          Singapore 068807


VANDA PRESS: Court Enters Wind-Up Order
---------------------------------------
On September 19, 2008, the High Court of Singapore entered an
order to have Vanda Press Pte Ltd's operations wound up.

Stamford Press Pte Ltd filed the petition against the company.

The company's liquidator is:

         The Official Receiver of
         45 Maxwell Road #05-11/#06-11
         The URA Centre (East Wing)
         Singapore 069118


ZIGI ZAGI: Court Enters Wind-Up Order
-------------------------------------
On September 19, 2008, the High Court of Singapore entered an
order to have Zigi Zagi Distribution Pte Ltd's operations wound
up.

United Overseas Bank Limited filed the petition against the
company.

Zigi Zagi's liquidator is:

         Official Receiver
         The URA Centre (East Wing)
         45 Maxwell Road #05-11/#06-11
         Singapore 069118



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

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

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

AUSTRALIA

ALLSTATE EXPLORA                  ALX      19.47      -55.69
ALLSTATE EXPL-PP                ALXCC      19.47      -55.69
ARC EXPLORATION                   ARX      62.77      -15.88
AUSTAR UNITED                     AUN     525.67     -234.87
ANTARES ENERGY L                  AZZ      16.20       -4.36
BIRON APPAREL LT                  BIC      19.71       -2.22
CROESUS MINING                    CRS      16.00      -13.81
ETW CORP LTD                      ETW     103.80      -50.23
FULCRUM EQUITY L                  FUL      40.08       -8.00
IRONCLAD MINING                   IFE      20.07     -122.33k
INTELLECT HLDGS                   IHG      18.25      -15.49
KH FOODS LTD                      KHF      38.40       -6.79
KH FOODS LTD-PRF                KHFPA      38.40       -6.79
LAFAYETTE MIN                     LAF     105.24     -190.86
METAL STORM LTD                   MST      14.30       -5.13
RESIDUAL ASSC-EE                RAGXF     597.33     -126.96
TOOTH & CO LTD                    TTH     127.93      -90.21
VERTICON GROUP                    VGP      31.28      -12.39


CHINA

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


HONG KONG

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


INDIA

ARTSON ENGR                       ART      10.31     -705.78k
ASHIMA LTD                       ASHM      96.57      -42.59
BHAGHEERATHA ENG                 BGEL      22.65      -28.20
BALAJI DISTILLER                  BLD      59.97      -50.89
BELLARY STEELS                   BSAL     438.80      -67.01
CFL CAPITAL FIN                 CEATF      20.64      -48.88
CORE HEALTHCARE                  CPAR     185.36     -241.91
DUNCANS INDUS                     DAI     213.32     -148.20
DIGJAM LTD                       DGJM      98.77      -14.62
DISH TV INDIA                    DITV     302.06     -112.86
ELQUE POLYESTERS                 ELQP      13.80      -25.63
FACOR ALLOYS LTD                 FACA      17.34       -1.39
GANESH BENZOPLST                  GBP      82.16      -38.25
GUJARAT SIDHEE                   GSCL      59.44     -660.00k
GUJARAT STATE FI                  GSF      43.60     -195.24
HIMACHAL FUTURIS                 HMFC     633.33     -104.79
HMT LTD                           HMT     316.41     -175.33
HINDUSTAN PHOTO                  HPHT      95.12     -953.35
IFB INDS LTD                     IFBI      50.67      -65.49
INDIA STEEL WORK                  ISI      56.76       -1.47
JCT ELECTRONICS                  JCTE     117.60      -50.17
JK SYNTHETICS                     JKS      20.21       -2.17
JENSON & NIC LTD                   JN      14.81      -81.79
KALYANPUR CEMENT                 KCEM      38.11      -48.48
LML LTD                           LML      86.80      -27.97
LLOYDS METALS                    LYDM      76.63     -409.40k
LLOYDS STEEL IND                 LYDS     392.56     -102.16
MODI RUBBER LTD                   MDR      39.76      -24.30
MAFATLAL INDS                     MFI     123.63      -83.84
MILLENNIUM BEER                   MLB      38.26       -3.52
NATH PULP & PAP                  NPPM      11.60      -34.77
PAREKH PLATINUM                  PKPL      59.66      -75.55
PANCHMAHAL STEEL                  PMS      51.02     -325.12k
PSI DATA SYSTEMS                  PSI      11.68       -2.48
PTL ENTERPRIESES                 PTLE      54.29     -397.48k
PANYAM CEMENTS                    PYC      30.24       -9.40
ROLLATAINERS LTD                  RLT      22.97      -22.24
REMI METALS GUJA                  RMM      45.06      -51.10
RPG CABLES LTD                    RPG      51.43      -20.19
SIL BUSINESS ENT                 SILB      12.46      -19.96
SANDUR MANGANESE                 SMIO      32.57       -2.61
SPICE COMMUNICAT                 SPCM     263.69      -19.68
SHREE RAMA MULTI                 SRMT      71.22      -29.91
TATA TELESERVICE                 TTLS     857.96      -50.01
USHA INDIA LTD                   USHA      12.06      -54.51
JOG ENGINEERING                   VMJ      50.08      -10.08
WIRE AND WIRELES                  WNW     106.98      -23.62
YASHRAJ CONTAINE                 YRCT      17.49       -2.09


INDONESIA

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


JAPAN

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


KOREA

FIRST FIRE & MAR               000610       2.04B      -1.78
ORICOM INC                     010470      82.65      -40.04
UNICK CORP                     011320      36.54       -4.45
STARMAX CO LTD                 017050      73.13       -5.54
DAISHIN INFO                   020180     740.50     -158.45
TONG YANG MAGIC                023020     355.15      -25.77
FATOMENT                       025460      28.43      -13.92
NANO MINING CO L               036270      18.22      -32.17
COSMOS PLC                     053170      19.31       -4.95
SEJI CO LTD                    053330      37.25     -311.07k
MEDIACORP INC                  053890      53.31      -32.22
DAHUI CO LTD                   055250     186.00       -1.50
INNO METAL IZIRO               070080      28.56     -330.04k
SINJISOFT CORP                 078700      12.76      -21.01


MALAYSIA

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


PHILIPPINES

APEX MINING-A                     APX      55.27       -1.97
APEX MINING 'B'                  APXB      55.27       -1.97
BENGUET CORP-A                     BC      76.27      -32.54
BENGUET CORP 'B'                  BCB      76.27      -32.34
CENTRAL AZUC TAR                  CAT      35.74       -1.80
CYBER BAY CORP                   CYBR      14.85      -74.30
FIL ESTATE CORP                    FC      43.03      -10.93
FILSYN CORP A                     FYN      24.84      -11.37
FILSYN CORP. B                   FYNB      24.84      -11.37
GOTESCO LAND-A                     GO      18.68      -10.86
GOTESCO LAND-B                    GOB      18.68      -10.86
MRC ALLIED                        MRC      14.95     -747.37k
PICOP RESOURCES                   PCP     105.66      -23.33
PRIME ORION PHIL                 POPI      99.69      -82.12
EAST ASIA POWER                   PWR      72.74     -136.68
UNIVERSAL RIGHTF                   UP      45.12      -13.48
UNITED PARAGON                    UPM      26.81      -36.74
UNIWIDE HOLDINGS                   UW      65.66      -57.31
VICTORIAS MILL                    VMC     175.01      -38.64


SINGAPORE

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


TAIWAN

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


THAILAND

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




                         *********

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

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

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


                            *********


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

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

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

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

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





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