TCRAP_Public/081015.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

            Wednesday, October 15, 2008, Vol. 11, No. 205

                            Headlines

A U S T R A L I A

ACD ENTERPRISES: To Declare Dividend on October 24
ADKON PTY: Members and Creditors to Meet on October 21
AQUARIUS RESEARCH: Members' Final Meeting Set for October 23
BERGSTEDT & CORTIS: To Declare Dividend on October 30
CENTRO NP: Inks Deal to Extend US$350MM Credit Facility to Dec. 15

CITY PACIFIC: Postpones Plan to List Unit Fund on ASX
COOGEE RESOURCES: Selling Biz After Major Shareholder Pulls Stake
ESTHERMEAD PASTORAL: To Declare Dividend on October 23
FORD MOTOR: Ford Australia to Slash 500 Jobs
KENSIT EVERMORE: Joint Meeting Slated for October 22

LLANDILLO KENSIT: Members and Creditors to Meet on October 22
MAKKEN CLEANING: Liquidator to Give Wind-Up Report on October 28
PMI GROUP: Moody's Reviewing 'Ba1' Jr. Subordinated Debt Rating
ROYSTON FLATS: Joint Meeting Set for October 20
SUNCORP-METWAY: Completes Talks on Banking/Wealth Mgt. Assets Sale

VALAD PROPERTY: Pulls Out Earning Guidance; Cancels Distribution
* AUSTRALIA: Claims Scheme Supports Financial System, S&P Says
* AUSTRALIA: Business Conditions Remain Stable, Survey Says


C H I N A

CHINA EASTERN: Shanghai Government Oks Merger With Shanghai Air
NINE DRAGONS: Fitch Cuts LT Foreign Currency IDR to BB+ from BBB-
SHANGHAI PUDONG: Sees 150% Increase in Nine-Month Profit
* CHINA: Auto Sales Drop for Second Month Amid Slowing Economy


H O N G K O N G

3D-GOLD JEWELLERY: Moody's Lowers Corporate Family Rating to B3
AMERICAN INT'L: Aware of Potential Woes in Valuing Contracts
AMERICAN INTERNATIONAL: Uses Additional US$9BB From Gov't Loan
AMERICAN INTERNATIONAL: Gov't to Name Trustees to Manage Stake
ISMECA ASIA: Placed Under Voluntary Liquidation

KOWLOON-CANTON: Michael and Kei Cease to Act as Liquidators
LEAD DATA: Members' Final Meeting Slated for November 11
LEE GARDENS: Chiu and Chung Step Down as Liquidators
MAXTOR ASIA: Derek and Haughey Quit as Liquidators
NEC TELECOMMUNICATIONS: Creditors' Proofs of Debt Due on Oct. 24

OVERSEAS CHINESE: Placed Under Voluntary Liquidation
SINOPEX ENTERPRISE: Creditors' Proofs of Debt Due on November 10
VISION TECHNOLOGY: Placed Under Voluntary Liquidation
WORLD CLASSIC: Members' Final Meeting Set for November 11
* HONG KONG: Faces Increasing Risk of Recession, Regulator Says


I N D I A

ESKAY DYESTUFFS: CRISIL Rates Rs.79.7 Mil. Loans at 'BB+'
GENERAL MOTORS: In Talks with Cerberus to Acquire Chrysler
GENERAL MOTORS: Analysts Worried Firm May Run Out of Cash
GENERAL MOTORS: Says Bankruptcy Not an Option
GENERAL MOTORS: Market Woes Cue S&P to Put 'B-' Rating on WatchNeg

* CRISIL: India's Banking Sector Challenged by Domestic Factors


I N D O N E S I A

BSP FINANCE: Moody's B2 CFR on Review for Possible Downgrade
* INDONESIA: Cuts 2009 Forecast to Avoid IDR53.9 Trillion Deficit
* INDONESIA: 5 Coal Producers to Pay Disputed Debt to Government


J A P A N

FORD MOTOR: Analysts Worried Firm May Run Out of Cash
FORD MOTOR: CEO Mulally Says Bankruptcy Not an Option
FORD MOTOR: Lewis Booth Will Replace Don Leclair as CFO
FORD MOTOR: S&P Puts 'B-' Long-Term Rating on Negative CreditWatch
YAMATO LIFE: JCR Lowers Rating From B+p to Dp

* S&P Publishes Performance Report on OTB Housing Loan Tranches


K O R E A

HYUNDAI MOTOR: Mulls Small Car Production in the United States
HYUNDAI MOTOR: To Invest US$169 Million in Domestic Plant
MAZDA MOTOR: Ford Eyes Sale of 33% Stake in Japanese Firm


N E W  Z E A L A N D

BURNSLEY HOLDINGS: High Court Enters Wind-Up Order
CVT NEW ZEALAND: Commences Liquidation Proceedings
DORCHESTER: Sells Rentals Part of Loan Book for NZ$12.5 Million
GAS MAIN: Commences Liquidation Proceedings
GROOVE IN: Shareholders Placed Company Under Liquidation

HANS FORKLIFT: Crichton and Horne Appointed as Liquidators
KILIKILI HOLDINGS: Placed Under Liquidation
MJV BUILDING: Commences Liquidation Proceedings
NATIONAL PROPERTY: Explores Merger and Liquidation Options
PINEHURST LIMITED: Commences Liquidation Proceedings

UENUKU CONTRACTING: High Court Enters Wind-Up Order
WAIPARA EARTH: High Court Enters Wind-Up Order


P H I L I P P I N E S

FIRST GEN: May Default on US$442 Million Debt Due November 20
LEAR CORPORATION: Reduces 2008 Sales Outlook by US$1,000,000,000
* PHILIPPINES: FDI Level Reaches US$147 Million in July
* PHILIPPINES: DOLE Secretary Assures No Mass Layoffs of OFWs


S I N G A P O R E

AGRI INTERNATIONAL: Moody's B2 CFR on Review for Downgrade
LEHMAN BROTHERS: Singaporean Investors Express Anguish in Park
* SINGAPORE: Economy Declines for Two Straight Quarters


X X X X X X X X

* S&P Junks Ratings on 2 Asia-Pacific Synthetic CDOs to CCC-pNRi
* S&P Junks Ratings on 17 Asia-Pacific Synthetic CDO Tranches


                         - - - - -


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

ACD ENTERPRISES: To Declare Dividend on October 24
--------------------------------------------------
ACD Enterprises Pty Limited will declare dividend on October 24,
2008.

Creditors who were unable to file their proofs of debt on
October 9, 2008, to be included in the company's dividend
distribution.

The company's deed administrator is:

         P. W. Gidley
         Ferrier Hodgson
         Level 3, 2 Market Street
         Newcastle NSW 2300
         Telephone: (02) 4908 4444
         Facsimile: (02) 4908 4499


ADKON PTY: Members and Creditors to Meet on October 21
------------------------------------------------------
Adkon Pty Ltd will hold a meeting for its members and creditors on
October 21, 2008, at 10:00 a.m.  During the meeting, the company's
liquidator, C. P. White, will provide the attendees with property
disposal and winding-up reports.

The liquidator can be reached at:

          C. P. White
          HLB Mann Judd
          Chartered Accountants
          Level 1, 160 Queen Street
          Melbourne VIC 3000


AQUARIUS RESEARCH: Members' Final Meeting Set for October 23
------------------------------------------------------------
J. D. Brogan, Aquarius Research Pty Limited's appointed estate
liquidator, will meet with the company's members on
October 23, 2008, at 10:00 a.m. to provide them with property
disposal and winding-up reports.

The liquidator can be reached at:

          J. D. Brogan
          Suite 17
          37-43 Alexander Street
          Crows Nest NSW 2065


BERGSTEDT & CORTIS: To Declare Dividend on October 30
-----------------------------------------------------
Bergstedt & Cortis Pty Limited will declare dividend on
October 30, 2008.

Creditors who were unable to file their proofs of debt on
October 7, 2008, to be included in the company's dividend
distribution.

The company's liquidator is:

          John Frederick Lord
          PKF
          Level 10, 1 Margaret Street
          Sydney NSW 2000


CENTRO NP: Inks Deal to Extend US$350MM Credit Facility to Dec. 15
------------------------------------------------------------------
Centro NP LLC disclosed in a Securities and Exchange Commission
filing that on Sept. 26, 2008, it entered into a letter agreement
modifying and waiving provisions of its Revolving Credit Facility
and the Letter Agreement, dated as of Feb. 14, 2008, relating to
its US$350 million unsecured revolving credit facility with Bank
of America N.A., as administrative agent.

The Letter Agreement Amendment provides for, among other things,
an extension of the maturity of indebtedness under the Revolving
Credit Facility from Sept. 30, 2008, to Dec. 15, 2008.

A copy of the Letter Agreement Amendment is available free of
charge at http://researcharchives.com/t/s?33a2

                          Balance Sheet

At June 30, 2008, the company's consolidated balance sheet showed
US$4.51 billion in total assets, US$2.20 billion in total
liabilities, US$42.0 million in minority interest in consolidated
partnership and joint ventures, and US$2.27 billion in total
member's capital.

Centro NP LLC reported a net loss of US$299.5 million for the
second quarter ended June 30, 2008, a net loss of US$34.7 million
for the period from April 1, 2007, through April 4,2007, and net
income of US$3.7 million for the period April 5, 2007, through
June 30, 2007.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2008, are available for
free at http://researcharchives.com/t/s?316a

                       Going Concern Doubt

There is substantial doubt about the company's ability to continue
as a going concern given that the company's liquidity is subject
to, among other things, its ability to negotiate extensions of
credit facilities.  The company's inability to refinance the
credit facilities would have a material adverse effect on the
company's liquidity and financial condition.  In addition,
uncertainty also exists due to the refinancing issues currently
experienced by the company's ultimate parent investors, Centro
Properties Group and Centro Retail Group.  If the outcomes of
these refinancing negotiations are not favorable to Centro
Properties Group and Centro Retail Group, it is uncertain as to
the impact that this will have on the company.

                       About Centro NP LLC

Headquartered in New York, Centro NP LLC (formerly Super
IntermediateCo LLC) was formed in February 2007 to succeed the
operations of New Plan Excel Realty Trust Inc.  The principal
business of the company is the ownership and management of
community and neighborhood shopping centers throughout the United
States.  A substantial portion of its revenue is derived from
tenants under existing leases at its properties.  Prior to the
consummation of the merger, New Plan Excel Realty Trust was
operated as a self-administered, self-managed real estate
investment trust.

                          *     *     *

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


CITY PACIFIC: Postpones Plan to List Unit Fund on ASX
-----------------------------------------------------
City Pacific Limited disclosed that it has postponed a plan to
list its City Pacific First Mortgage Fund (the Fund) on the
Australian Securities Exchange (ASX).

The company said there is too much volatility and uncertainty in
the world markets to proceed with the proposal at this time.
However, the company said it will seek a listing of the Fund when
the markets have stabilized.

City Pacific said that due to the increase in the delays of
repayments by borrowers to the Fund, and City Pacific’s
expectation that this trend will continue as a result of the
current market conditions, it is unlikely that the Fund will be in
a position to commence the payment of redemptions on February 26,
2009.  This factor has caused the Board to consider that the Fund
has become non-liquid and will therefore now operate as a non-
liquid fund.

The Fund will continue to repay its finance facility and meet
funding obligations to existing borrowers to ensure that projects
are completed to allow for the loans to be repaid.  The Fund’s
unitholders will receive distributions subject to available funds
and dependent on interest received on loans.

As a non-liquid fund all existing redemption requests will be
extinguished and the redemption process will operate in accordance
with the Corporations Act.  The Fund will continue to have the
ability to make new loans and will have the ability to raise new
funds through the issue of a new product disclosure statement.

The strategic property fundamentals that have enabled the Fund to
achieve 10 years of solid growth for the benefit of unitholders
still remain in place.  These fundamentals include investing in
projects where the property market is supported by strong
population growth and lending only to professional developers with
a proven track record.

As reported in the September 26, 2008, City Pacific unveiled plans
to list its First Mortgage Fund on the Australian Securities
Exchange (ASX).

The company said it has undertaken a comprehensive review of
liquidity solutions for the Fund with its advisors and a
determination has been made that listing the Fund on the ASX will
satisfy this objective.  Listing the Fund on the ASX allows
unitholders to access liquidity through the sale of their units on
the ASX and provides equity between the unitholders.

                         About City Pacific

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

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

                         *     *     *

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

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

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

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


COOGEE RESOURCES: Selling Biz After Major Shareholder Pulls Stake
-----------------------------------------------------------------
Coogee Resources Limited is putting its business for sale after
Babcock & Brown Limited decided to sell its 35% stake in the
company.

Dow Jones Newswires reports that Babcock wants to divest non-core
assets to bolster its balance sheet after investors lost
confidence in its debt-fueled business model.  According to the
report, the price that Babcock gets for its Coogee stake will be
influenced by the price of oil, which has tumbled from a record
high of about US$147 a barrel in July to around US$83 on global
growth fears.

Coogee Resources' Chairman, Mr. John Akehurst, said the decision
was considered to be in the best interests of all shareholders
given feedback from potential buyers of their desire to secure and
control the entire company, or at least a majority stake.

"Goldman Sachs JBWere has been appointed to conduct the sale
process for 100% of the company and this is expected to be
completed by the end of November 2008 with minimal disruption to
the ongoing business of Coogee Resources," Mr. Akehurst said.

Mr. Gordon Martin, Coogee Resources' CEO, founder and largest
shareholder, said an outright sale process was the most
practicable outcome for all shareholders in the prevailing market
conditions.  He added the development of its Montara project --
which comprises the Montara, Skua and Swift/Swallow oil fields in
the Timor Sea off northern Australian and has 2P reserves of
39.9 million barrels of oil -- remained central to the company's
asset base.

"Notwithstanding the most recent fluctuations in world oil prices
over past days, Montara remains a highly viable, economic and
robust project," Mr. Martin said.

In addition to the Montara project, Coogee Resources operates and
owns a 71% stake in the Jabiru and Challis oil fields, which have
2P reserves of 5.1 million barrels of oil and are also located in
the Timor Sea.

                      About Coogee Resources

Coogee Resources is an Australian oil and gas unlisted public
company, with 2P oil reserves of 45.0 million barrels.  The
company has a portfolio of production, development and exploration
assets all located within the low sovereign risk Australian waters
of the Timor Sea off the north coast of Western Australia.

Coogee Resources' petroleum interests include a 70.94% stake in
the producing Jabiru and Challis oil fields (also operated by the
company) and 100% of the Montara project, which comprises the
Montara, Skua and Swift/Swallow oil fields.  In addition, the
company has an extensive exploration portfolio comprising oil
prospects and leads, all located within tie-back distance to the
Jabiru and Montara fields.

Over the longer term, the company plans to explore the prospect of
a potential floating gas to liquids methanol production facility
for offshore stranded gas to potentially commercialize its 834.4
billion cubic feet of contingent offshore gas resources and other
third-party offshore gas assets.


ESTHERMEAD PASTORAL: To Declare Dividend on October 23
------------------------------------------------------
Esthermead Pastoral Co. Pty Ltd will declare dividend on
October 23, 2008.

Creditors are required to file their proofs of debt by October 22,
2008, to be included in the company's dividend distribution.

The company's liquidator is:

          R. L. Cardwell
          R. L. Cardwell & Associates
          Insolvency Services
          33 Montague Street
          Goulburn NSW 2580
          Telephone: (02) 9894 7326


FORD MOTOR: Ford Australia to Slash 500 Jobs
--------------------------------------------
Ford Australia is preparing to cut up to 500 jobs as sales of its
key Falcon model continue to decline, James Thomson of Smart
Company reports.

Smart Company relates that the economic downturn, high fuel prices
and changing consumer tastes have weighed heavily on Ford
Australia’s sales, with Falcon sales down 15% this year and sales
of Ford’s other locally-produced model, the Territory, down by
about 25%.

Citing Australian newspapers, The New Zealand Herald reports that
both manufacturing and office workers would be laid off in the
latest round of cuts, which would bring to almost 1,500 the number
of workers Ford will shed from its Broadmeadows and Geelong
operations in the next two years.

Ford Australia has not confirmed the job cuts, the Smart Company
says, however, Australian Manufacturing Workers Union chief
Ian Jones met with the company Monday, October 13, and is bracing
for the worst.

"This is the toughest period we’ve seen since the early 1990s.  We
were losing around 1,000 jobs a month in the early 1990s and it’s
not much better than that now," the Smart Company quotes Mr. Jones
as saying.

The Herald recalls that in August, Ford said it would cut 350
manufacturing jobs from next month in a bid to reduce its annual
output by one-quarter, or 18,000 cars.

Last year, the Herald recounts, Ford said it would close its six-
cylinder engine plant at Geelong by the end of 2010, with the loss
of 600 jobs, although it has said it would make small Focus cars
at its Broadmeadows plant from 2011.

Ford employs 4,500 people, with about 2,500 in manufacturing, in
Australia, the Herald says.

                      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.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 13, 2008, Fitch Ratings downgraded the Issuer Default Rating
of Ford Motor Company and Ford Motor Credit Company by one notch
to 'CCC' from 'B-'.


KENSIT EVERMORE: Joint Meeting Slated for October 22
----------------------------------------------------
Kensit Evermore Pty Ltd will hold a meeting for its members and
creditors on October 22, 2008, at 11:00 a.m.  During the meeting,
the company's liquidator, David Scott, will provide the attendees
with property disposal and winding-up reports.

The liquidator can be reached at:

          R. L. Cardwell
          R. L. Cardwell & Associates
          Insolvency Services
          33 Montague Street
          Goulburn NSW 2580
          Telephone: (02) 9894 7326


LLANDILLO KENSIT: Members and Creditors to Meet on October 22
-------------------------------------------------------------
Llandillo Kensit Pty Ltd will hold a meeting for its members and
creditors on October 22, 2008, at 10:00 a.m.  During the meeting,
the company's liquidator, David Scott, will provide the attendees
with property disposal and winding-up reports.

The liquidator can be reached at:

          R. L. Cardwell
          R. L. Cardwell & Associates
          Insolvency Services
          33 Montague Street
          Goulburn NSW 2580
          Telephone: (02) 9894 7326


MAKKEN CLEANING: Liquidator to Give Wind-Up Report on October 28
----------------------------------------------------------------
Makken Cleaning Services Pty Ltd will hold a meeting for its
members and creditors on October 28, 2008, at 10:30 a.m.  During
the meeting, the company's liquidator, B. L. Morgan, will provide
the attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          B. L. Morgan
          Rodgers Reidy
          Chartered Accountants
          Level 10, 200 Queen Street
          Melbourne VIC 3000


PMI GROUP: Moody's Reviewing 'Ba1' Jr. Subordinated Debt Rating
---------------------------------------------------------------
Moody's Investors Service is placing on review for possible
downgrade the A3 insurance financial strength rating of the PMI
Group's US and European mortgage insurance operations.  Moody's
has also placed the Baa3 senior unsecured debt and Ba1 junior
subordinated debt ratings of the holding company, PMI Group, under
review for possible downgrade.  The Aa3 insurance financial
strength rating of PMI Mortgage Insurance Ltd, the Australian
mortgage insurer, remains under review for further downgrade
pending the closing of the announced acquisition of PMI Australia
and PMI Asia by QBE Insurance Group Ltd.

Moody's said that these rating actions primarily reflect the
rating agency's expectation of further stress on the company's
risk-adjusted capital position in light of continued deterioration
in housing fundamentals, as reflected in the upward revisions to
Moody's loss expectations for certain residential mortgage-backed
securities announced in September.

Over the next several weeks, Moody's will update its evaluation of
capital adequacy for the mortgage insurer.  "This analysis will be
based on updated information about the company's underlying
portfolio performance, incorporating revised expectations about
performance across different loan types" said Moody's senior vice
president, Arlene Isaacs-Lowe.  Moody's will consider updated
estimates of capital adequacy in the context of potential capital
strengthening measures or other strategies that may be under
consideration at the company.  The rating review will also
incorporate Moody's consideration of the degree to which various
initiatives being pursued at the US Federal level may serve to
mitigate the rising trend of mortgage loan defaults.

These ratings were placed on review for possible downgrade:

* The PMI Group, Inc. -- senior unsecured debt at Baa3, junior
   subordinated debt at Ba1, provisional rating on senior
   unsecured debt at (P)Baa3, provisional rating on subordinated
   debt at (P)Ba1, and provisional rating on preferred stock at
   (P) Ba2;

* PMI Mortgage Insurance Co. -- insurance financial strength at
   A3;

* PMI Insurance Co. -- insurance financial strength at A3;

* PMI Mortgage Insurance Company Limited -- insurance financial
   strength at A3.

This rating remains under review for possible downgrade:

* PMI Mortgage Insurance Ltd -- insurance financial strength at
   Aa3.

The last rating action on PMI occurred on July 9, 2008 when the
ratings were downgraded with a negative outlook.

The PMI Group, Inc. (NYSE: PMI), headquartered in Walnut Creek,
CA, is the holding company for PMI Mortgage Insurance Co.,
including its wholly owned subsidiaries and affiliated companies
in Australia, Europe and Asia.  The PMI Group, Inc. also owns a
50% interest in CMG Mortgage Insurance Co., a 42% interest in FGIC
Corporation, and a 23.7% interest in RAM Reinsurance Company Ltd.
Through its wholly owned subsidiaries and partial interest in
affiliated companies, PMI offers residential mortgage insurance
and credit enhancement products, financial guaranty insurance, and
financial guaranty reinsurance.  PMI has operations in Asia,
Australia and New Zealand, Europe, and the United States.


ROYSTON FLATS: Joint Meeting Set for October 20
-----------------------------------------------
Royston Flats Pty Ltd will hold a meeting for its members and
creditors on October 20, 2008, at 10:00 a.m.  During the meeting,
the company's liquidator, David Scott, will provide the attendees
with property disposal and winding-up reports.

The liquidator can be reached at:

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


SUNCORP-METWAY: Completes Talks on Banking/Wealth Mgt. Assets Sale
------------------------------------------------------------------
Suncorp-Metway Limited said it had concluded discussions with
parties interested in acquiring its banking and wealth management
assets.

The discussions concluded in light of the changed circumstances
for the Australian financial services sector brought about by
recent international credit and equity market volatility and the
Australian Government’s banking guarantee initiatives announced on
October 12, 2008.

Suncorp chairman John Story said: "The process that was commenced
reflected the Board’s responsibility to ensure the strong
expressions of interest that had been received were given proper
consideration."

"However, given the events of the past week in particular, we have
determined that this process was unlikely to result in offers
reflecting the operational or strategic value of the Suncorp
banking and wealth management businesses."

"We have taken the view that the market needs time to take account
of the initiatives put in place by the Australian Government and
other national governments to rebuild confidence in the global
financial system."

"The Board is willing to re-engage with those parties who have, in
the past, expressed strong strategic interest in these assets and
is open to proposals that are realistic and offer fair value to
our shareholders," Mr. Story said.

Chief executive John Mulcahy said: "Suncorp continues to conduct
its business in a manner that is consistent with the changed
economic circumstances and underlying business performance has
been strong so far this financial year."

                     About SunCorp-Metway

Brisbane, Australia-based Suncorp-Metway Ltd. --
http://www.suncorp-metway.com.au/-- is engaged in retail and
business banking, general insurance, life insurance,
superannuation and funds management with a focus on retail
consumers and small to medium businesses.  Its brand offering
includes Suncorp and GIO, with GIO being the main insurance
brand outside of Queensland.

                          *     *     *

On March 20, 2007, Fitch Ratings gave a 'B' rating on Suncorp's
Individual Rating.

Subsequently, on May 4, 2007, Moody's Investors Service rated
Suncorp-Metway's bank financial strength a 'B-'.


VALAD PROPERTY: Pulls Out Earning Guidance; Cancels Distribution
----------------------------------------------------------------
Valad Property Group said it has withdrawn its earnings guidance
of 7 to 9 cents per stapled security given in August 2008 as a
result of the on-going unprecedented deterioration in financial
and other markets, particularly over the past two weeks.  The
company said it is not comfortable providing a forecast to the
market until there is more stability in the markets within which
it operates.

Additionally, the company said it has decided to cancel the
interim distribution payable in February 2009, and will assess the
payment of a final distribution in August 2009, closer to that
time, taking account of the then prevailing market conditions.

Various reports say that Valad had previously expected fiscal year
2009 net profit between AU$115 million and AU$145 million and
distributions per security between 5.25 to 6.75 cents.

As reported in the Troubled Company Reporter-Asia Pacific on
October 13, 2008, citing various reports, Valad's shares fell 50%
to 12.5 cents on October 9, 2008, after the company revealed a
AU$31.1 million exposure to Brisbane developer Petrac.

Valad said its finance arm, Valad Capital Services, has exposure
to three Petrac projects in receivership.  Two of the projects are
located in Noosa on Queensland's Sunshine Coast, and one is in
Byron Bay on the New South Wales far north coast.

Valad's exposure to these projects is AU$31.1 million by way of
preferred equity which is secured by second mortgages.  Valad had
further undrawn commitments of AU$3.9 million relating to these
projects, however the appointment of receivers has effectively
cancelled this obligation.

In addition to these projects, Valad said it has a total of
AU$44.4 million invested in three other Petrac projects and five
retirement joint venture vehicles with Petrac and Harvest.
Valad's undrawn commitment associated with these projects is
AU$49.8 million.

Valad reported a net loss of AU$249.7 million for the year ended
June 30, 2008, compared with a net income of AU$109.1 million in
the prior year.

                     About Valad Property

Valad Property Group (ASX:VPG) -- http://www.valad.com.au -- is
engaged in passive property ownership, property development and
trading, property funds management and capital services.  The
company operates in four segments.  It owns rental income
producing passive properties throughout Australia, New Zealand and
Europe.  These include long term hold investments producing a
recurring stream of income to the company.  Most of the passive
property ownership interests are held in Valad Property Trust.
The property development and trading segment develops and trades
assets and also creates a pipeline of products for Valad's managed
funds.  The funds management establishes and manages listed and
unlisted property funds.  The Valad capital services segments
provides property structured finance and investment banking
services to external parties, and has invested in a portfolio
across asset classes, including commercial, retail, industrial,
residential and retirement.  In July 2007, it acquired Scarborough
Group and Valad (Hurst) Limited.


* AUSTRALIA: Claims Scheme Supports Financial System, S&P Says
--------------------------------------------------------------
Standard & Poor's Ratings Services said that the Financial Claims
Scheme announced by the Australian government recently is broadly
supportive of the Australian financial system.  S&P also consider
that the scheme is likely to underpin depositors' and wholesale
creditors' confidence in Australian authorized deposit-taking
institutions (ADIs) due to the financial backing of the
Commonwealth of Australia (AAA/Stable/A-1+).

In response to the global financial market dislocation, the Prime
Minister of Australia announced a Financial Claims Scheme
recently, under which the government would guarantee deposits and
wholesale term borrowings of Australian incorporated banks,
building societies, credit unions, and Australian subsidiaries of
foreign-owned banks; collectively called ADIs.

"While a positive initiative, the announced scheme by itself is
not expected to result in any revisions in Standard & Poor's
issuer credit ratings (also called counterparty credit ratings)
on any financial institutions," said S&P's credit analyst Sharad
Jain.

This is because of three reasons:

  -- The scheme does not cover all the obligations of the rated
     financial institutions;

  -- The scheme is not permanent as it will apply over a limited
     life span (three years for deposits and five for wholesale
     term borrowings); and

  -- The scheme's focus is limited to improving access to
     funding, and as such does not address other generic risks
    inherent in financial institutions such as ongoing access to
    capital, global financial market volatility, weakening
    economic conditions, and risks emerging out of changes in
    business models or potential M&A activity.

S&P notes that the Australian banking system remains supported by
the conservative stance of most of the players.  In S&P's view,
the Australian banks benefit from strong asset quality, sound
capital positions, and good earnings profiles, which are partly
due to the country's relatively favorable economic environment.
Moreover, S&P expects the Australian economy to grow further,
albeit at a slower rate.  In addition, Australian ADIs have
limited exposures to U.S. subprime loans and associated complex
structured transactions, and major offshore financial institutions
affected by the loss of global investor confidence.

Mr. Jain added: "We will review the impact of the guarantee on
specific debt ratings. Certain debt ratings could be raised as
they may be equalized with the sovereign rating when more details
are available (specifically, which obligations will benefit from
the guarantee and the specific terms and conditions of the
guarantee)."  ADIs need to nominate specific wholesale term debt
transactions for which the government support will apply in return
for a fee payable by the ADIs.  Currently, it remains
unclear whether the ADIs will elect to seek a guarantee only for
new debt raisings or if they would also include their outstanding
debt.

Specific issue credit ratings may be equalized with the ratings
on the sovereign depending on whether the government will become
liable for a payout immediately (or within a reasonable grace
period), when called upon by a depositor or a creditor because an
ADI has failed to pay on time.  Therefore, S&P needs to understand
the guarantee scheme's key terms such as the duration
of the guarantee, the debt instruments covered under the scheme,
timeliness of payout under the guarantee, and the ability of the
government to revoke the guarantee or apply conditions to a
payout.


* AUSTRALIA: Business Conditions Remain Stable, Survey Says
-----------------------------------------------------------
Australia's business conditions and confidence remain relatively
stable despite financial turmoil, according to recently released
National Australia Bank monthly business survey.

The NAB survey measures business conditions rose 2 points to an
index of -1 in September – but is still 21 points lower than its
recent peak in October 2007.  Business confidence fell 1 point to
-8 points in September.  But in trend term both series were
unchanged (at -8 and zero points respectively).

The Herald Sun reports that the survey of 400 firms across the
non-farm business sector was conducted between September 23 and
30, a period when the US government's US$700 billion (AU$1.01
trillion) Troubled Assets Relief Program (TARP) was being debated
by the US Congress.

It was also conducted before the Reserve Bank of Australia's
aggressive 100 basis point easing of the cash rate to 6 per cent
and a subsequent coordinated round of interest rate cuts by some
of the world's largest central banks, The Herald Sun says.

NAB Group Chief Economist Alan Oster was quoted by The Herald Sun
as saying that "In those circumstances it is perhaps remarkable
that business confidence (if not conditions) did not seriously
deteriorate in this survey.  While both confidence and outcomes
have moved down significantly in recent months, in trend terms
both measures were broadly unchanged.  That is a very different
response relative to both equity markets and measures of consumer
sentiment."

According to the survey, mining sector strength the key positive
for business conditions by sector, but confidence in mining
eroding quickly.  Rising retail confidence helped offset that
fall.

The survey implies both demand and non-farm GDP in Q3 have fallen
to round 2% (annualized).  Wages growth a touch lower, but
inflation still high - on the back of higher purchase costs.

Global GDP forecasts for 2009 lowered to 2-1/4% in 2009 (with USA
now at zero).  Local GDP cut significantly (to 1-1/4%% in 2009) in
light of equity & commodity price falls and lower global growth.
Despite more aggressive (fiscal) policy responses downside risk
remain.



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

CHINA EASTERN: Shanghai Government Oks Merger With Shanghai Air
---------------------------------------------------------------
The Shanghai government has approved in principle a proposed
merger between China Eastern Airlines and its smaller rival
Shanghai Airlines, Reuters reports, citing China Business News.

The proposal, the report relates, calls for China Eastern to take
a 60% stake in Shanghai Air.

On Sept. 8, 2008, the Troubled Company Reporter-Asia Pacific,
citing the Financial Times, reported that China Eastern Airlines
admitted that a merger with Shanghai Airlines, is being actively
considered.

According to the TCR-AP, the government plans to first inject
capital into China Eastern and then merge it with Shanghai
Airlines, then the combined company would then consider a stake
sale to Singapore Airlines.

Reuters relates that spokesmen for both airlines said the carriers
had not been informed by the government of any merger proposals or
discussed the issue directly between themselves.

According to Reuters, the government was discussing the
possibility of brokering a merger of the two Shanghai-based
airlines to create a dominant player with a 60% share of domestic
flights in China's financial hub.

China Eastern has been seeking a partner as it struggles to cut
its debt ratio and improve its efficiency and level of service,
Reuters says.

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

                       About China Eastern

Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- principal
activity is operation of domestic and international commercial
air transportation.  The Group also is involved in the common
aircraft industry.  Other activities include general aviation,
air catering, advertisement, import and export, equipment
manufacturing, real estate, hotel business, finance and
training.  The fleet includes more than 60 large and medium size
airplanes, Airbus and Boeing mostly.  Its operation centering
from Shanghai to the whole People's Republic of China and
linking to Asia, Europe, America and Australia.

                          *     *     *

China Eastern continues to carry Fitch Ratings' B+ foreign
currency and local currency issuer default ratings, and Xinhua
Far East China Ratings' BB+ issuer credit rating with a stable
outlook.


NINE DRAGONS: Fitch Cuts LT Foreign Currency IDR to BB+ from BBB-
-----------------------------------------------------------------
Fitch Ratings downgraded China-based Nine Dragons Paper (Holdings)
Limited's Long-term foreign currency Issuer Default Rating to
'BB+' from 'BBB-'.  The Outlook for the rating is Negative.  At
the same time, the agency has downgraded the senior unsecured
rating on the US$300m notes due 2013 to 'BB+' from 'BBB-'.

The downgrade of Nine Dragons' IDR is predicated on the higher
than expected leverage levels over the medium term, in line with
its peers in the 'BB' category.  The company reported leverage of
5.2x at end-FY2008, driven by higher than expected capital
expenditure of CNY10.0bn in FY2008, compared to the initial
projection of CNY6.8bn.  As a remedial step to conserve cash and
not leverage further, Nine Dragons has decided to postpone the
capex for Paper Machines 27-30 to 2010/2011.  Whilst Fitch
welcomes the remedial action, it notes that due to the capex
delay, the operating cashflow generation in the near term will be
lower than initially forecast.  That, together with revenue and
margin pressures expected to persist in FY2009, has led Fitch to
expect leverage to remain high at 3x - 5x in FY2009 and FY2010.

Fitch notes that Nine Dragons has achieved good cashflow
generation in FY2008, with EBITDA and Funds From Operations close
to FY2007's levels.  The company's liquidity position also
continues to be strong with short-term debt of only CNY2.3bn, cash
and cash equivalents of CNY1.6bn and undrawn credit facilities of
CNY4.6bn as of 30 June 2008.  The agency expects the company to
maintain its strong market position in China's containerboard
industry despite the price and margin pressures.  The company has
confirmed that it is in compliance with the financial covenants in
its syndicated loan agreements based on its FY2008 results.  While
the financial ratios are expected to improve in FY2009, the
headroom in terms of the financial covenants is likely to be
limited.

The senior unsecured rating on the US$300m notes due 2013 is
maintained at the same level as the IDR, based on Fitch's
expectation that despite the increase in debt at the operating
subsidiaries' level in FY2008, the expected recovery value
attributable to the US$300m noteholders remains satisfactory.
Fitch will review the bond rating if structural subordination
becomes more significant.

Fitch expects that Nine Dragons will demonstrate stronger
financial discipline especially in the management of capital
expenditure, and that it will reduce its leverage to below 5.0x by
end-FY2009.  The expected deterioration in market conditions,
price and margin pressures and limited headroom in terms of the
financial covenants for its syndicated loans have given rise to
the Negative Outlook.

Nine Dragons is China's largest manufacturer of containerboard
products.  In the financial year ended June 2008, Nine Dragons
achieved revenue of CNY14.1bn, EBITDA of CNY2.5bn and net income
of CNY1.9bn.


SHANGHAI PUDONG: Sees 150% Increase in Nine-Month Profit
--------------------------------------------------------
Shanghai Pudong Development Bank Co., Ltd. said its nine-month
profit may surged 150% from the same period last year, as income
from interest and fees increase, Bloomberg News reports,  citing
an unaudited calculation.

The bank, Reuters relates, cited growth in assets, a reduction in
credit risk costs as the quality of assets remained stable,
widening interest margins, a rise in non-interest income and a
lower effective tax rate.

The bank said that net profit in the same period last year was
CNY3.92 billion (US$575 million), or CNY0.90 a share.

On Aug. 26, 2008, the Troubled Company Reporter-Asia Pacific,
citing Xinhua News, reported that Shanghai Pudong's first-half
net profit increased 149.62% to CNY6.38 billion from the same
period a year earlier, on increasing loan, lower corporate income
tax rate, and greater fee income.  During the January to June
period, the report same related, the bank's total business income
hit CNY16.71 billion, representing an increase of 43.86% over the
same period a year earlier.

According to the TCR-AP, the bank's net interests income was
CNY15.52 billion in the first half, an increase of 38.85% from a
year earlier, which accounted for 91.11% of the total business
income, while total assets stood at CNY1 trillion by June,
representing an increase of 9.58% from a year earlier.

Reuters notes that the bank is due to report full third-quarter
earnings late this month.

                      About Shanghai Pudong

Headquartered in Shanghai, China, Shanghai Pudong Development
Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial
bank involved in personal banking, corporate banking, and inter-
bank business.  The bank also offers Internet banking and
telephone banking.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
Aug. 28, 2008, Fitch Ratings affirmed the Individual and Support
ratings of Shanghai Pudong Development Bank as SPDB: Individual
'D' and Support '3'.

The bank continues to carry Moody's Investors Service's "Ba1"
long-term bank deposit rating and "D" bank financial strength
rating.  It also carries Fitch Ratings' "D" individual rating.



* CHINA: Auto Sales Drop for Second Month Amid Slowing Economy
--------------------------------------------------------------
China's auto sales fell for the second month running affected by
the slowing economy, Xinhua News reports, citing figures released
by the China Association of Automobile Manufacturers (CAAM).

September passenger car sales, the report relates, shrank 1.44%
from the same period last year to 552,800 after the August sales
contracted 6.24% from a year earlier.  About 5.1 million passenger
cars were sold in the year to September, a rise of 11.36% from the
first three quarters of 2007, but 12.48 percentage points lower
than the rise last year, the report notes.

Auto industry analyst Jia Xinguang said that the falling sales
were driven by inflation and the tumbling stock market which
drained consumer cash, the report notes.  Government policies to
limit car use, including raising automobile consumption tax and
the traffic restrictions on motorists during the Olympics also
dampened sales, Mr. Xinguang added.

According to the report, Ford Motors' China sales rose 7.13% in
the first three quarters, below the 30-% growth a year earlier,
while Volkswagen AG registered 13.1% rise in China, Hong Kong and
Macao, also down from 30& a year earlier.

Mr. Xinguang, Xinhua adds, predicted the spreading financial
crisis would drag world car sales down by 0.3% from 2007 to
58.1 million, the first fall in eight years, as the financial
crisis began to affect all business sectors, and the credit
squeeze restricted the buyers.



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

3D-GOLD JEWELLERY: Moody's Lowers Corporate Family Rating to B3
---------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family and
senior unsecured ratings of 3D-GOLD Jewellery Holdings Ltd
(previously known as Hang Fung Gold Technology Ltd) to B3 from
Ba3.  At the same time, the ratings remain on review for possible
downgrade.

"The rating action reflects significant uncertainty over the
company's current liquidity position, as information on its cash
sources and payment needs is lacking," says Renee Lam, a Moody's
Vice President.

Moody's noted recent press reports alleging HK$200 million funds
is missing from 3D-GOLD; these reports have been neither confirmed
nor refuted by the company.

"The recent adverse and un-clarified news on funds
misappropriation is likely to restrict and generate uncertainty
over the company's continued access to bank funding, which is
mostly uncommitted and repayable on demand," says Mr. Lam, adding,
"This uncertainty has also materially increased the risk of
triggering the cross-default provision in the company's US$170
million bonds due 2014."

Moody's will continue to closely monitor 3D-GOLD's negotiations
with its bankers, and will seek to understand the company's
liquidity status, including cash position, working capital
requirements, derivative hedging instruments, availability of
borrowing facilities and any other near-term payment needs.

Based in Hong Kong, 3D-GOLD is a vertically-integrated jewellery
manufacturer with operations spanning design and manufacture
through to distribution, wholesale, retail and exports.  The
company is actively planning to expand its jewellery retail
business in China.


AMERICAN INT'L: Aware of Potential Woes in Valuing Contracts
------------------------------------------------------------
Documents from the congressional investigators indicate that top
American International Group Inc. officials were aware of
potential problems in valuing derivative contracts before the
transactions caused the company's shareholders severe pain, Liam
Pleven and Amir Efrati at The Wall Street Journal report.

WSJ relates that the derivative-contract problems would have
driven AIG into bankruptcy.  WSJ states that an investigation
began earlier this year on how candid company officials were with
investors at a December 2007 investor conference and whether
officials at AIG's financial-products unit, which sold the
derivatives contracts, misled AIG's outside auditor.

Joseph St. Denis, a former internal AIG auditor, said in a letter
to the House Committee on Oversight and Government Reform that in
early September 2007, that he learned that AIG's financial-
products unit had been asked for billions of dollars in collateral
related to derivatives it had sold, WSJ states.  According to the
report, Mr. St. Denis said, in a letter disclosed during the
congressional hearing on Tuesday, that he had early on raised
concerns about being excluded from conversations about the
valuation of the derivatives.

WSJ states that the derivatives, or credit-default swaps, protect
buyers against the risk of default on other investments.  WSJ says
that AIG believed that the possibility of making payouts was
remote.

The valuation model of one of AIG's trading partners "apparently
indicated" that the unit "was in a potentially material liability
position," WSJ says, citing Mr. St. Denis, who denied of his
involvement in the valuation of the swaps at AIG.  According to
WSJ, Mr. St. Denis said that in the last week of September 2007,
the unit's chief, Joseph Cassano, said that he had excluded Mr.
St. Denis "because I was concerned that you would pollute the
process."

WSJ reports that Mr. St. Denis said he resigned from AIG on
Oct. 1, 2007, and that he told AIG's chief auditor Michael Roemer
about Mr. Cassano's comment.

A committee chairperson said that Mr. Cassano earned
US$280 million over eight years at AIG, WSJ states.  Mr. Cassano
left AIG in March and was slated to receive $1 million a month
through the end of this year, but the contract was terminated
before the congressional hearing, according to the report.

Determining the values for the swaps in a rapidly changing market
is complex and "it can't be the case that your [trading partner in
swaps transactions] is the definer of what the value is," WSJ
says, citing F. Joseph Warin, the attorney for Mr. Cassano.
According to the report, Mr. Warin said that the supervision of
Mr. Cassano by AIG was transparent and interactive and Mr. Cassano
would continue to be cooperative with the investigation.

In November 2007, AIG said the swaps had dropped by
US$352 million in value, WSJ says.  A Pricewaterhouse official
said at an audit-committee meeting in January that the valuation
process for the swaps "needs improvement from a control
perspective," WSJ reports.

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

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

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

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

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

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

S&P raised its ratings on preferred stock of International Lease
Finance Corp. (ILFC; A-/Watch Dev/A-1) to 'BBB' from 'B', and
revised the CreditWatch implications to developing from negative.
All other ILFC ratings remain on CreditWatch with developing
implications.

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

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

                       *     *     *

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

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


AMERICAN INTERNATIONAL: Uses Additional US$9BB From Gov't Loan
--------------------------------------------------------------
Liam Pleven, Carrick Mollenkamp, and Craig Karmin at The Wall
Street Journal report that American International Group Inc. drew
down another US$9 billion from the federal loan to meet demands
for
cash from its trading partners.  According to WSJ, AIG has now
borrowed US$70.3 billion from the government in three weeks.  WSJ
says that the government raised the loan it is offering to AIG to
US$122.8 billion on Wednesday, due to the threat of losses from
AIG's lending program.

WSJ quoted a person familiar with the matter, "The Fed had no idea
the capital markets would seize up and the stock markets would
keep falling; both put AIG in a severe cash bind."

WSJ relates that much of the Fed's original loan to AIG was used
to:

    -- providing collateral to AIG's trading partners on
       complex derivatives known as credit default swaps, and

    -- covering losses in AIG's securities-lending program.

Citing Texas Department of Insurance's chief financial analyst
Doug Slape, WSJ states that AIG's securities-lender customers
"flooded the program for their collateral, creating a mini-run" on
the company.  Mr. Slape said that AIG started drawing down on the
federal loan commitment to cover the collateral requests,
according to the report.

The insurance department is keeping an eye on three AIG insurance
units due to the securities-lending exposure, WSJ relates, citing
Mr. Slape.  California Department of Insurance spokesperson,
Darrel Ng, said that the state is looking at the securities-
lending practices of insurers in California, WSJ states.
According to the report, the New York Fed and outside experts that
the Fed hired are trying to assess how money is flowing within and
from AIG, and has been sending personnel to AIG divisions to
assess the company's risks and its risk-management procedures.

              About American International Group

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

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

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

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

The Credit Facility provides for a 79.9% equity interest in AIG.
The Credit Facility provides for an initial gross commitment fee
of 2% of the total Credit Facility on the closing date.

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

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

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

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

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

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

                         *     *     *

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

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


AMERICAN INTERNATIONAL: Gov't to Name Trustees to Manage Stake
--------------------------------------------------------------
Sudeep Reddy at The Wall Street Journal reports that the Federal
Reserve will appoint trustees to oversee the U.S. government's
almost 80% stake stake in American International Group, Inc.

According to WSJ, the central bank will select within two weeks
three individuals with business experience to manage the stake and
voting rights in AIG, taking over that role from the Federal
Reserve and Treasury officials.

WSJ states that the trustees would eventually sell the government
shares, and the proceeds would go into federal coffers.  The
report says that the trustees would hire their own advisers.

WSJ relates that as lender, the Federal Reserve is responsible for
ensuring that AIG pays interest on the government loan and repays
the central bank.  According to the report, the government might
want to operate AIG more aggressively to boost the company's
value, to ensure that taxpayers have a better chance of being
rewarded.

AIG, says WSJ, will maintain a board of directors, but the loan
agreement allows the trustees to appoint or replace the directors.
AIG said in a statement that its agreement with the government
requires the company "to use reasonable efforts" to make its board
"satisfactory to the trust" within 10 days of the trust's
creation.

Federal Reserve officials expect to remain involved in discussions
about asset sales as they are critical to the AIG loans being
repaid, WSJ states.

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

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

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

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

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

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

S&P raised its ratings on preferred stock of International Lease
Finance Corp. (ILFC; A-/Watch Dev/A-1) to 'BBB' from 'B', and
revised the CreditWatch implications to developing from negative.
All other ILFC ratings remain on CreditWatch with developing
implications.

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

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

                       *     *     *

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

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


ISMECA ASIA: Placed Under Voluntary Liquidation
-----------------------------------------------
Ismeca Asia, Limited commenced liquidation proceedings on Oct. 2,
2008.

Creditors are required to file their proofs of debt by Nov. 3,
2008, to be included in the company's dividend distribution.

The company's liquidators are:

         Lai Kar Yan (Derek)
         Darach E. Haughey
         One Pacific Place, 35th Floor
         88 Queensway
         Hong Kong


KOWLOON-CANTON: Michael and Kei Cease to Act as Liquidators
-----------------------------------------------------------
On September 26, 2008, Chan Wah Tip, Michael and Ho Man Kei, Keith
ceased to act as liquidators of Kowloon-Canton Railway Corporation
Athletic and Social Club.

The company's former Liquidators can be reached at:

         Chan Wah Tipm Michael
         Ho Man Kei, Keith
         601 Prince's Building
         Chater Road
         Central, Hong Kong


LEAD DATA: Members' Final Meeting Slated for November 11
--------------------------------------------------------
The members of Lead Data (Hong Kong) Limited will hold their final
meeting on November 11, 2008, at 10:00 a.m., at No. 10-7, Wuchuan
7th Road, Wugu Industrial Park, in Taipei Hsein 248, Taiwan.

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


LEE GARDENS: Chiu and Chung Step Down as Liquidators
----------------------------------------------------
On October 6, 2008, Ying Hing Chiu and Chung Miu Yin, Diana ceased
to act as liquidators of:

   * Lee Gardens Company Limited;
   * Lee Gardens Hotel Management (China) Company Limited; and
   * Lee Gardens Hotel Management (Hong Kong) Company Limited.

The company's former Liquidators can be reached at:

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


MAXTOR ASIA: Derek and Haughey Quit as Liquidators
--------------------------------------------------
On September 30, 2008, Lai Kar Yan (Derek) and Darach E. Haughey
stepped down as liquidators of Maxtor Asia Pacific Limited.

The company's former Liquidators can be reached at:

          Lai Kar Yan (Derek)
          Darach E. Haughey
          One Pacific Place, 35th Floor
          88 Queensway
          Hong Kong


NEC TELECOMMUNICATIONS: Creditors' Proofs of Debt Due on Oct. 24
----------------------------------------------------------------
The creditors of NEC Telecommunications (Hong Kong) Limited are
required to file their proofs of debt by October 24, 2008, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on September 29,
2008.

The company's liquidator is:

          Wong Kam Wah
          Gloucester Tower, 5th Floor
          The Landmark
          11 Pedder Street
          Central, Hong Kong


OVERSEAS CHINESE: Placed Under Voluntary Liquidation
----------------------------------------------------
The director Overseas Chinese Finance Limited, on September 26,
2008, passed a resolution winding up the company's operations.

The company's liquidator is:

          Simon Kwok Keung Chung
          1st Floor, No. 41, Lane 50
          Tianmu West Road
          Shihlin District
          Taipei City 111
          Taiwan, China


SINOPEX ENTERPRISE: Creditors' Proofs of Debt Due on November 10
----------------------------------------------------------------
The creditors of Sinopex Enterprise Co. Limited are required to
file their proofs of debt by November 10, 2008, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on October 2, 2008.

The company's liquidator is:

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


VISION TECHNOLOGY: Placed Under Voluntary Liquidation
-----------------------------------------------------
At an extraordinary general meeting held on September 26, 2008,
the members of Vision Technology Corporate Limited resolved to
voluntarily wind up the company's operations.

The company's liquidators are:

          Chong Man Leung
          Fung Tat Man
          Skyline Commercial Centre, 21st Floor
          71-77 Wing Lok Street
          Sheung Wan, Hong Kong


WORLD CLASSIC: Members' Final Meeting Set for November 11
---------------------------------------------------------
The members of World Classic Holdings Limited will hold their
final meeting on November 11, 2008, at the 17th Floor of Hing Yip
Commercial Centre, 272-284 Des Voeux Road, in Central, Hong Kong.

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


* HONG KONG: Faces Increasing Risk of Recession, Regulator Says
---------------------------------------------------------------
Hong Kong Financial Secretary John Tsang said Hong Kong faces an
increased risk of a recession in 2009 because of the global
financial crisis, Bloomberg News reports.

On Oct. 7, 2008, the Troubled Company Reporter-Asia Pacific,
citing Bloomberg News, reported that JPMorgan Chase & Co.
economist Qian Wang said Hong Kong will slide into a "mild
recession" due to  the global financial crisis and China's export
slowdown.  JPMorgan, the same report related, cut its forecasts
for Hong Kong economic growth in 2008 to 3.5% from a previous
estimate of 4%.  The economy may shrink 1% quarter-on-quarter in
the last three months of 2008 and 0.5% in the following three
months, the bank said.

"We forecast the risks of a recession next year are getting
higher.  The effects of the global crisis are moving closer to
Hong Kong," Bloomberg News cited Mr. Tsang as saying.

According to Bloomberg Newst, the city slashed its key interest
rate by 1.5 percentage points last week after economic growth
slowed and the global credit freeze pushed up inter-bank lending
rates.  Hong Kong's economy expanded 4.2% in the second quarter
from a year earlier, the slowest pace in almost five years, as
exports and domestic consumption cooled, the same report adds.



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

ESKAY DYESTUFFS: CRISIL Rates Rs.79.7 Mil. Loans at 'BB+'
---------------------------------------------------------
CRISIL has assigned its bank loan ratings of 'BB+/Stable/P4' to
the bank facilities of Eskay Dyestuffs & Organic Chemicals Pvt
Ltd.

  Rs.29.7 Million Term Loan        BB+/Stable (Assigned)
  Rs.50.0 Million Cash Credit      BB+/Stable (Assigned)
  Rs.7.5 Million Letter of Credit  P4 (Assigned)
  Rs.0.5 Million Bank Guarantee    P4 (Assigned)

The ratings reflect Eskay Dyestuffs' low net worth and small scale
of operations, which limit its financial flexibility, supplier
concentration risks and the highly competitive and commoditized
nature of the industry.  These weaknesses are partially offset by
the company's established presence in the optical brightening
agents business backed by the promoter's long-standing experience,
and its healthy operating efficiency marked by robust operating
margins.

Outlook: Stable

CRISIL believes that Eskay Dyestuffs & Organic Chemicals Pvt Ltd
(Eskay Dyestuffs) will maintain its existing business profile
backed by its healthy operational efficiency and technical
expertise.  The outlook may be revised to 'Positive' if there is a
significant improvement in the company's capital structure and net
worth.  Conversely, the outlook may be revised to 'Negative' in
case of higher-than-expected debt-funded capital expenditure.

                      About Eskay Dyestuffs

Eskay Dyestuffs & Organic Chemicals Pvt Ltd, incorporated in 1982,
manufactures optical brightening agents (OBAs).  The company was
originally set up in the 1960s as a partnership firm, Eskay
Chemical Corporation, by the Bhumgara family and is currently run
by Dr. Shavak Bhumgara who has over 25 years of experience in the
industry.  The company's factories are located at Ghatkopar and
Taloja in Mumbai with total installed capacity of 3000 tonnes per
annum (tpa).  OBAs are additives that are used to enhance the
appearance of colour in fabric and paper, causing a perceived
'whitening' effect.  End-use of optical brighteners includes
whitening for paper, fibre, textiles, and detergents. Eskay
Dyestuffs uses the brand name 'Skaywhit' for its OBAs.  For
2007-08, Eskay Dyestuffs reported a profit after tax (PAT) of
Rs.9.8 million on net sales of Rs.201 million, as against a PAT
of Rs.12.3 million on net sales of Rs.173 million for 2006-07.


GENERAL MOTORS: In Talks with Cerberus to Acquire Chrysler
----------------------------------------------------------
General Motors Corp. has been in talks to acquire Chrysler LLC,
Jeffrey McCracken and John D. Stoll at The Wall Street Journal
reporty, citing people familiar with the matter.

According to WSJ, the sources said that Chrysler owner Cerberus
Capital Management LLC proposed a swap in which GM would acquire
Chrysler's automotive operations, and in turn give Cerberus its
remaining 49% stake in GMAC.  The sources told WSJ that the
problems in the financial markets has halted talks between
Cerberus Capital and GM, but the talks could be renewed once
markets stabilize.  One of the sources said that GM wants to let
go of its 49% stake in GMAC due to the negative impact the once-
profitable finance arm is having on its balance sheet, WSJ
reports.

A source said that GM expects as much as US$10 billion in cost-
cutting if it reaches a deal with Cerberus Capital, WSJ relates.
"Without referencing this specific rumor, as we've often said, GM
officials routinely discuss issues of mutual interest with other
auto makers.  As a policy, we do not confirm or comment publicly
on those private discussions, which in many cases do not lead
anywhere," GM spokesperson quoted Tony Cervone as saying.

Cerberus Capital agreed in 2006 to acquire a majority stake in
GMAC for US$14 billion.  According to WSJ, Cerberus Capital was
hoping to gain from GMAC's then-profitable mortgage arm Rescap;
expand the car-lending business in a global auto industry that was
projected to grow rapidly; and that by de-linking GMAC from GM,
the lending company's credit rating would improve, lowering its
cost of capital.

GMAC's value has declined in recent quarters due to exposure to
subprime home loans, car loans, and leases, WSJ states.  The GMAC
stake is currently valued at US$6 billion to US$7 billion, WSJ
says, citing people familiar with the discussions.  According to
the report, GM is considering various options for GMAC amid
difficulties in raising money for loans and an unwillingness at
GMAC to continue offering dealers and buyers cheap financing.

WSJ reports that if negotiations with GM fail, Cerberus Capital
will continue exploring options for Chrysler.  GM, says WSJ, had
backed off from a potential acquisition of Chrysler when it was
being sold by Daimler.

Sources said that by acquiring Chrysler, GM could lessen costs by
cutting plants, blue-collar jobs and corporate overhead, WSJ
states.  According to WSJ, investors might worry that GM would be
acquiring more troubled operations while it is still trying to fix
its own problems, shedding nameplates and dealers of its own.

WSJ relates that GM's fund-raising drive could benefit from
acquiring Chrysler, which has been able to hoard cash despite
dropping sales and production in its U.S. market, by backing away
from many capital-intensive projects, like constructs new
component plants, over the past 14 months.  GM's fund-raising
drive is slated to raise US$15 billion over the next 15 months
through asset sales, secured financing, and cost cuts, WSJ states.

WSJ reports that a GM-Chrysler deal would involve the
rationalizing of more than 100 automotive plants and 190,000
workers in North America, and would likely force a streamlining of
11 automotive brands -- from Chrysler to Cadillac -- and more than
10,000 auto dealers in the U.S., Mexico, and Canada.

Cerberus Capital appears undaunted by problems with its GMAC
investment, according to WSJ.  The report states that Cerberus
Capital's chief said in a letter to its investors in September,
"This is an historic opportunity in the U.S. residential and
commercial real estate markets.  Both whole loans and mortgage
securities are trading at, in our view, ridiculously low
historically distressed levels, and pressures on financial
institutions globally to relieve their balance sheets of these
assets have created a unique and attractive distressed investing
opportunity....While we have received a lot of press about certain
companies and their problems, not only will these companies not
have a significant effect on our performance, but they all, in our
view, are conservatively valued and some may have real upside from
the mark."

            GM Board May be Skeptic on Chrysler Deal

General Motors Corp.'s board may be skeptic about the firm's
acquisition of Chrysler LLC, John D. Stoll, Matthew Dolan, and
Neal E. Boudette at The Wall Street Journal report.

Citing people familiar with the matter, WSJ relates that the board
gave a "cool reception" to the planned acquisition after GM's
management discussed the matter at a meeting last week.

                      About Chrysler LLC

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K., Argentina,
Brazil, Venezuela, China, Japan and Australia.

                         *     *     *

As reported in the Troubled Company Reporter on Aug. 11, 2008,
Standard & Poor's Ratings Services lowered its ratings on Chrysler
LLC, including the corporate credit rating, to 'CCC+' from 'B-'.

On July 31, 2008, TCR said that Fitch Ratings downgraded the
Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'.  The
Rating Outlook is Negative.  The downgrade reflects Chrysler's
restricted access to economic retail financing for its vehicles,
which is expected to result in a further step-down in retail
volumes.  Lack of competitive financing is also expected to result
in more costly subvention payments and other forms of sales
incentives.  Fitch is also concerned with the state of the
securitization market and the ability of the automakers to access
this market on an economic basis over the near term, given the
steep drop in residual values, higher default rates, higher loss
severity being experienced and jittery capital market.

                    About General Motors

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

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

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


GENERAL MOTORS: Analysts Worried Firm May Run Out of Cash
---------------------------------------------------------
Bill Vlasic at The New York Times reports that with vehicle sales
declining, analysts are concerned about the liquidity of General
Motors Corp. and Ford Motor Co. and their ability to finance
operations as their revenues decline and as they continue to eat
into cash reserves.

Dow Jones Newswires relates that as GM and Ford shares continue to
decline, concerns grew that the auto makers won't be able to turn
their operations around before running dangerously low on cash.
Matthew Dolan and John Stoll at The Wall Street Journal report
that on Thursday, GM closed down 31%, or US$2.15, at US$4.76,
while Ford dropped 22%, or 58 cents, to US$2.08, in New York Stock
Exchange composite trading.  WSJ states that GM ended the day with
a market value of US$3.9 billion, while Ford had a US$6 billion
market value.

According to Dow Jones, decline in the companies' domestic sales
aren't expected to improve in the near term.

Dow Jones states that Gimme Credit high-yield analyst Shelly
Lombard wrote in a Thursday research note that Ford appears to
have enough liquidity between cash on hand and credit lines to
fund operations for nine to 12 quarters.  Dow Jones relates that
Ms. Lombard doubted Ford's long-term viability, saying that the
liquidity could evaporate soon as U.S. vehicle sales continue to
drop.

Dow Jones reports that Ford Chief Executive Alan Mulally said at
the Paris Auto Show that the company has the "appropriate amount"
of liquidity and that he will continue cutting production to meet
declining demand.  Investor Kirk Kerkorian, who owns a 6.5% stake
in Ford, has said he is willing to provide additional capital to
fund the company's restructuring, the report states.

                    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.

                    About General Motors

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

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

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


GENERAL MOTORS: Says Bankruptcy Not an Option
---------------------------------------------
The Wall Street Journal reports that General Motors Corp. has
denied that it is considering filing for bankruptcy.

Frank Ahrens at The Washington Post relates that the plunge in
GM's shares of stock spurred speculation that the company might be
edging towards bankruptcy.  Citing Standard & Poor's lead
automotive credit analyst Robert Schulz, Jeff Green and Greg
Bensinger at Bloomberg News report that GM may be forced into
bankruptcy, as "macro factors could overwhelm them at some point,"
even as the company vows to stick with its turnaround plans.

GM said in a statement on Friday, "Clearly, we face unprecedented
challenges related to uncertainty in the financial markets
globally and weakening economic fundamentals in many key markets.
But bankruptcy protection is not an option GM is considering."

According to Reuters, Barclays Capital also cut its price target
for GM on Friday, saying that GM's cash needs were increasing due
to the risk of weaker global auto sales.  Reuters states that
Barclays analyst Brian Johnson said in a note for clients, "With
auto sales stalled in the (United States) and beginning to
contract in the rest of the world, we believe GM's cash needs are
increasing."

Mr. Johnson said that GM would need to raise US$10.3 billion to
maintain liquidity of US$14 billion through next year, up from his
earlier estimate of US$7.3 billion over the same period, Reuters
states.

WSJ relates that GM is expected to disclose more production
capacity reductions in the coming weeks, likely on closing plants
that stamp auto parts or build engines and transmissions.

                    About General Motors

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

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

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


GENERAL MOTORS: Market Woes Cue S&P to Put 'B-' Rating on WatchNeg
------------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on U.S.
automaker General Motors Corp., including the 'B-' long-term
corporate credit rating, on CreditWatch with negative
implications.

"The CreditWatch placement reflects the rapidly weakening state of
most global automotive markets, along with capital market
conditions that will remain a serious challenge for the
foreseeable future," said Standard & Poor's credit analyst Robert
Schulz.  S&P also placed its ratings on GM's 49%-owned finance
affiliate GMAC LLC, including the 'B-' long-term counterparty
credit rating, on CreditWatch with negative implications.  At this
time, ratings on GMAC unit Residential Capital LLC
(CCC+/Negative/C) are not on CreditWatch.

S&P believes GM currently has adequate liquidity for at least the
rest of 2008 as measured by cash balances and available bank
facilities, but the accelerating deterioration in industry
fundamentals will be a serious challenge to liquidity during 2009.


* CRISIL: India's Banking Sector Challenged by Domestic Factors
---------------------------------------------------------------
CRISIL believes that the Indian banking system is relatively
insulated from the factors leading to the turmoil in the global
banking industry.  Further, the recent tight liquidity in the
Indian market is also qualitatively different from the global
liquidity crunch, which was caused by a crisis of confidence in
banks lending to each other.  Says Roopa Kudva, Managing Director
and Chief Executive Officer, CRISIL, "While the main causes of
global stress are less relevant here, Indian banks do face
increased challenges due to domestic factors.  The banking sector
faces profitability pressures due to higher funding costs, mark-
to-market requirements on investment portfolios, and asset quality
pressures due to a slowing economy."

CRISIL views the strong capitalization of Indian banks as a
positive feature in the current environment.

The rating agency says the problems of global banks arose mainly
due to exposure to sub-prime mortgage lending and investments in
complex collateral debt obligations whose values have seen sharp
erosion.  Globally, banks have also been affected by the freeze in
the inter-bank lending market due to confidence-related issues.
On both counts, Indian banks have limited vulnerability.  Indian
banks’ global exposure is relatively small, with international
assets at about 6 per cent of the total assets.

According to CRISIL, even banks with international operations have
less than 11 per cent of their total assets outside India.

The reported investment exposure of Indian banks to distressed
international financial institutions of about US$1 billion is also
very small.  The mark-to-market losses on this investment
portfolio, will, therefore, have only a limited financial impact.
Indian banks’ dependence on international funding is also low.

The rating agency states that the reasons for tight liquidity
conditions in the Indian market in recent weeks are quite
different from the factors driving the global liquidity crisis.
Some reasons include large selling by Foreign Institutional
Investors (FIIs) and subsequent Reserve Bank of India (RBI)
interventions in the foreign currency market, continuing growth in
advances, and earlier increases in cash reserve ratio (CRR) to
contain inflation.

RBI’s recent initiatives, including the reduction in CRR by 150
basis points from October 11, 2008, cancellation of two auctions
of government securities, and confidence-building communication,
have already begun easing liquidity pressures.

The strong capitalization of Indian banks, with an average Tier I
capital adequacy ratio of above 8 per cent, is a positive feature
in their credit risk profile.  Nevertheless, Indian banks do face
challenges in the current Indian economic environment, marked by a
slower gross domestic product growth, depressed capital market
conditions, and relatively high interest rate regime.



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

BSP FINANCE: Moody's B2 CFR on Review for Possible Downgrade
------------------------------------------------------------
Moody's Investors Service announced that it has put on review for
possible downgrade the B2 corporate family and secured bond rating
of Bakrie Sumatera Plantations Tbk (BSP).

"The rating action is driven by Moody's concerns over recent
events surrounding PT Bakrie and Brothers Tbk's (B&B) financial
position and its related impact on BSP's liquidity position, as
B&B owns 54% of BSP," says Wonnie Chu, lead analyst for BSP.

On October 7, the Indonesia Stock Exchange halted trading in
shares of the six Bakrie companies -- B&B, PT Bumi Resources Tbk,
BSP, PT Bakrieland Development Tbk, PT Bakrie Telecom Tbk, and PT
Energi Mega Persada -- until further notice, pending clarification
from B&B's management.

B&B has announced that it is rationalizing its entire listed
business portfolio which will involve the settlement of
US$1.2 billion of collateralized debt secured by shares of Bakrie
Group companies.  In addition, all Bakrie companies have been
advised to buy back their allowed limit of shares from the market.

Moody's believes B&B's rapidly deteriorating financial profile and
the continuing suspension of stock trading in Bakrie Group
companies have substantially eroded investor and creditor
confidence in the company.  This will inevitably negatively affect
BSP's business operation and liquidity profile.

Moody's rating review will focus on: (1) the potential cash
leakage and upstream by BSP to its parent; (2) possible trigger of
the change of control resulting from the sales of BSP shares -- a
single entity owning more than 50% of voting power in BSP will
trigger an early repayment of its US$160m bonds due 2011; and (3)
the company's level of financial flexibility, including its cash
position and its continuing access to working capital facilities.

Bakrie Sumatera Plantations Tbk (BSP), an Indonesian upstream
plantation company operating in Sumatra, Indonesia, was 54.5%
owned by the conglomerate PT Bakrie & Brothers Group as at 31
December, 2007. BSP was listed in 1990 on both the Jakarta and
Surabaya Stock Exchanges.


* INDONESIA: Cuts 2009 Forecast to Avoid IDR53.9 Trillion Deficit
-----------------------------------------------------------------
Amid the global financial crisis, Finance Minister Sri Mulyani
Indrawati presented Monday a revision to assumptions of the 2009
state budget to the House of Representatives, with lower economic
growth forecasts, The Jakarta Post reports.

"With the current dynamic movement of the world economy, we
consider it necessary to adjust the macroeconomic assumptions of
our 2009 budget to make them more credible and realistic," Sri
Mulyani was quoted by The Post as saying in House's budget
committee.

The revisions include:

   -- economic growth forecast revised from 6.3% down to
      between 5.5% and 6.1%;

   -- rupiah's average exchange rate against the dollar
      adjusted up to IDR9,500 from IDR9,100 per dollar;

   -- year-on-year inflation revised from 6.2% up to
      7%;

   -- forecast for Indonesian crude oil prices down to
      US$85 per barrel from US$95; and

   -- Bank Indonesia's benchmark lending rates from 8% per
      annum up to 8.5% for next year.

According to the report, Mr. Sri Mulyani also said that if the
government and the House did not make adjustments to the
assumptions, the 2009 budget would be in danger of having a
deficit of IDR53.9 trillion (US$5.4 billion).

The Post, citing Mr. Sri Mulyani, adds that the government would
reduce the issuance of government bonds and would seek other
sources of financing to plug the budget deficit, including from
bilateral and multilateral donors.


* INDONESIA: 5 Coal Producers to Pay Disputed Debt to Government
----------------------------------------------------------------
Five coal producers accused of withholding royalties have agreed
to pay the state their entire obligations arising from an ongoing
audit by the State Development Finance Controller (BPKP), Jakarta
Post reports citing Soepomo, a director at the finance ministry.
The five coal producers are:

   -- PT Kideco Jaya Agung;
   -- PT Kaltim Prima Coal;
   -- PT Arutmin Indonesia;
   -- PT Berau Coal; and
   -- PT Adaro Indonesia.

According to the report, the agreement led to the revocation of a
travel ban on 12 executives from these five companies.

The Post added that the five coal producers will pay fines at
least within one month after BPKP announces its audit results,
which is expected to be completed in the middle of November.  To
settle the dispute, the government and the companies have also
agreed to return to a so-called first-generation work contracts,
signed between 1979 and 1980.  Under these contracts, the
companies are to pay 2% on overdue royalty payments every month
until all payments are settled.  The companies are obliged to pay
sales tax from 1983 onward.

The dispute between the coal producers and the government
escalated in early August when the government banned 14 executives
from traveling overseas over allegations the five companies
including PT Kendilo Coal Indonesia -- failed to pay royalties
amounting to IDR7 trillion (US$769 million) between 2001 and 2007,
a report by the Troubled Company Reporter-Asia Pacific said citing
The Post.

The mining companies, however, have denied any wrongdoing, saying
the royalties were withheld to compensate for value-added tax
(VAT) refunds owed to them by the government, the report said, the
report adds.



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

FORD MOTOR: Analysts Worried Firm May Run Out of Cash
-----------------------------------------------------
Bill Vlasic at The New York Times reports that with vehicle sales
declining, analysts are concerned about the liquidity of General
Motors Corp. and Ford Motor Co. and their ability to finance
operations as their revenues decline and as they continue to eat
into cash reserves.

Dow Jones Newswires relates that as GM and Ford shares continue to
decline, concerns grew that the auto makers won't be able to turn
their operations around before running dangerously low on cash.
Matthew Dolan and John Stoll at The Wall Street Journal report
that on Thursday, GM closed down 31%, or US$2.15, at US$4.76,
while Ford dropped 22%, or 58 cents, to US$2.08, in New York Stock
Exchange composite trading.  WSJ states that GM ended the day with
a market value of US$3.9 billion, while Ford had a US$6 billion
market value.

According to Dow Jones, decline in the companies' domestic sales
aren't expected to improve in the near term.

Dow Jones states that Gimme Credit high-yield analyst Shelly
Lombard wrote in a Thursday research note that Ford appears to
have enough liquidity between cash on hand and credit lines to
fund operations for nine to 12 quarters.  Dow Jones relates that
Ms. Lombard doubted Ford's long-term viability, saying that the
liquidity could evaporate soon as U.S. vehicle sales continue to
drop.

Dow Jones reports that Ford Chief Executive Alan Mulally said at
the Paris Auto Show that the company has the "appropriate amount"
of liquidity and that he will continue cutting production to meet
declining demand.  Investor Kirk Kerkorian, who owns a 6.5% stake
in Ford, has said he is willing to provide additional capital to
fund the company's restructuring, the report states.

                    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 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.


FORD MOTOR: CEO Mulally Says Bankruptcy Not an Option
-----------------------------------------------------
Ford Motor Co.'s President and CEO Alan Mulally said in an
interview that despite new questions from analysts and credit-
rating agencies about Ford's current cash-burn rate and future
liquidity position, a bankruptcy filing is not an option for Ford,
The Wall Street Journal reports.

WSJ quoted Mr. Mulally as saying, "It makes absolutely no sense to
us.  Everything we are doing is to manage our cash and right-size
the company appropriately.  It makes no sense."

Citing Standard & Poor's lead automotive credit analyst Robert
Schulz, Jeff Green and Greg Bensinger at Bloomberg News report
that Ford  may be forced into bankruptcy as the global credit
freeze damps U.S. sales, and "macro factors could overwhelm them
at some point," even as Ford vows to stick with its turnaround
plans.

Ford's spokesperson Mark Truby said that the company has a cash
cushion, referring to US$23.4 billion borrowed in 2006 to help pay
for closing down plants and cutting jobs while developing new
models, Bloomberg relates.  Ford is evaluating its liquidity, the
report says, citing Mr. Truby.

Mr. Mulally said Ford will discuss its future production levels
when it releases third-quarter results this month, WSJ relates.
Ford must adjust its production to match softening demand, the
report says, citing Mr. Mulally.

                   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 Oct. 10, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Ford Motor
Company and Ford Motor Credit Company by one notch to 'CCC' from
'B-'.


FORD MOTOR: Lewis Booth Will Replace Don Leclair as CFO
-------------------------------------------------------
Ford Motor Co.'s Chief Financial Officer Don Leclair will retire
on Nov. 1, after an accomplished 32-year career.

Mr. Leclair, 56, was named Executive Vice President and CFO in
August 2003.  He joined Ford in 1976.  "I have appreciated my time
at Ford and now look forward to spending more time with my family
and pursuing other interests," Mr. Leclair said.

Matthew Dolan and Jeff Bennett at The Wall Street Journal report
that Ford's President and CEO Alan Mulally said that Mr. Leclair's
retirement was not linked to differences over the future direction
of the company or prompted by some kind of financial surprise or
accounting change surfacing in Ford's coming quarterly report.

Lewis Booth -- who played a leading role in the successful
transformation of Ford of Europe and Mazda during the past decade
-- will become the company's Executive Vice President and Chief
Financial Officer.

Mr. Mulally said, "Don's expertise and business acumen have been
invaluable to Ford.  Under his leadership, Ford has made
significant progress in lowering costs, improving quality,
improving efficiency, divesting non-core assets, improving our
balance sheet and moving us to our One Ford."

Messrs. Leclair and Booth will work together in the coming weeks
to ensure a smooth transition.

Mr. Mulally said, "Lewis Booth is one of the strongest and most
experienced leaders within Ford and the auto industry.  He was
instrumental in the transformation of Mazda and Ford of Europe to
profitability and growth.  He has built a strong and successful
team in Ford of Europe that is well positioned to continue the
momentum.  And he has put in place new leadership at Volvo to turn
around its results and build the strength of this premium brand."

Mr. Booth comes to the CFO position with broad operational
experience in Europe, Asia, and North America as well as a deep
background in finance and product development.  Mr. Booth, 59, was
named to his present position in 2005 and also formerly was
responsible for the Premier Automotive Group.  He joined Ford of
Europe in 1978 as a financial analyst.  During his career, he has
had a series of senior leadership positions around the world,
including Ford of Europe, Ford Asia Pacific, Ford South Africa,
Mazda and Ford's Finance, Truck Operations, Product Development,
Manufacturing and Sales operations in Europe, Asia and North
America.

Mr. Mulally stated, "Lewis' global experience, track record and
many years of leadership in Ford's finance operations make him the
ideal CFO.  He has proven success integrating Ford of Europe into
a profitable, lean and highly efficient operation.  We now are
turning to Lewis to apply his extensive operational and financial
experience to work even closer with our operating teams around the
world as we accelerate the transition to our One Ford vision and,
in the process, transforming Ford into a lean global enterprise
and returning the company to sustainable profitability."

        New Executive Vice President at Ford Europe

Ford also said that John Fleming is appointed Executive Vice
President and Chairman and CEO, Ford of Europe, succeeding Mr.
Booth.  Mr. Fleming will assume responsibility for Ford of Europe,
Volvo Car Corporation, and Ford's Export Operations & Global
Growth Initiatives.  He will report directly to Mr. Mulally.

Mr. Mulally said, "John is a proven executive who has demonstrated
strong results.  Under John's leadership, Ford of Europe has grown
its sales and profitability.  I have every confidence he will
continue to lead Ford of Europe and now Volvo to even stronger
success in the future."

Mr. Fleming, 57, was named Group Vice President and President and
CEO, Ford of Europe, in 2005.  He joined Ford's manufacturing
operations in the UK in 1967.  During his career, Mr. Fleming has
served in a variety of leadership positions in Ford's global
Manufacturing operations, including managing four automotive
assembly plants and three stamping and component plants.

                   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 Oct. 10, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Ford Motor
Company and Ford Motor Credit Company by one notch to 'CCC' from
'B-'.


FORD MOTOR: S&P Puts 'B-' Long-Term Rating on Negative CreditWatch
------------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B-' long-term
corporate credit and other ratings on U.S. automaker Ford Motor
Co. on CreditWatch with negative implications.

"The CreditWatch placement reflects the rapidly weakening state of
most global automotive markets along with capital market
conditions that will remain a major challenge for the foreseeable
future," said Standard & Poor's credit analyst Robert Schulz.
Included in the CreditWatch placement is Ford's finance unit, Ford
Motor Credit Co. (B-/Watch Neg/--).  S&P believes Ford has
adequate liquidity for at least the rest of 2008 as measured by
cash balances, and available bank facilities, but the accelerating
deteriorating industry fundamentals will be a serious challenge to
liquidity during 2009.


YAMATO LIFE: JCR Lowers Rating From B+p to Dp
---------------------------------------------
JCR has downgraded the rating on ability to pay insurance claims
of Yamato Life Insurance Co. from B+p to Dp and then has withdrawn
the Dp rating.

Yamato Life Insurance reported to Financial Services Agency that
it can no longer stay in business and filed with the Tokyo
District Court for protection under the court-guided
rehabilitation law.  In principle, the policyholders of the
Company will be protected up to 90% of the policy reserves. JCR
determined to downgrade the rating on the Company to "Dp" and then
withdraw it because JCR assesses that the insurance payouts will
not be made according to the initial terms for some of the
policies.


* S&P Publishes Performance Report on OTB Housing Loan Tranches
---------------------------------------------------------------
Standard & Poor's Ratings Services has released a Japanese-
language report titled "Performance Watch: OTB Housing Loan Trust
Certificates No. 1 To No. 5 Transactions, October 2008 Update".
These transactions are backed by residential housing loan
receivables and investment-type condominium loan receivables held
by ORIX Trust & Banking Corp.  The report has been released as
part of S&P's surveillance process.

Throughout a transaction's life, surveillance is based on the
collection and distribution reports, such as servicing reports,
that are submitted regularly by relevant parties.  The performance
of the underlying asset pools, repayment of the rated
certificates or beneficial interests, the enhancement of various
cash reserves concluded in the contract, and the early redemption
triggers are monitored during the surveillance process.  S&P will
periodically release its views on these transactions, along with
summaries of their performance.



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

HYUNDAI MOTOR: Mulls Small Car Production in the United States
--------------------------------------------------------------
Hyundai Motor Co., is considering manufacturing small cars in the
U.S. as the financial crisis lifted demand for such models, Cheon
Jong-woo of Reuters reports.

Company Chairman Chung Mong-koo, Yonhap News relates, called on
dealers worldwide to boost sales of small cars, saying the company
saw a "steep decline" in vehicle sales in major overseas markets
such as the United States and Europe.  "At a time when sales in
major advanced markets are in steep decline, dealers should focus
on increasing sales of small cars in emerging markets," the same
report cited, Mr. Chung as saying.

On Oct. 6, 2008, the Troubled Company Reporter-Asia Pacific,
citing Yonhap News, reported that the company may miss its U.S.
sales target this year after it suffered a sharp decline in its
vehicle sales in the United States last month.  The report said
that that the company sold 24,765 vehicles in September in the
U.S., down 25.4% from a year earlier, marking the third straight
monthly decline.

According to the TCR-AP, in the first nine months of 2008,
Hyundai's sales in the U.S. sank 6% from a year ago to 337,664
units.  Despite the trend, Hyundai reiterated its U.S. sales
target of 515,000 units this year.

Currently, Reuters says, Hyundai Motor and Kia Motors Corp.
produces the Elantra, only in South Korea and Hyundai would need
to talk with its unionised workers to decide to make the car
abroad.

                      About Hyundai Motor

Headquartered in Seoul, South Korea, Hyundai Motor Company
-- http://www.hyundai-motor.com/-- has been selling cars in the
U.S. 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.


HYUNDAI MOTOR: To Invest US$169 Million in Domestic Plant
---------------------------------------------------------
Hyundai Motor Co., plans to invest KRW214 billion
(US$169.2 million) in building an auto transmission factory in
Ulsan south of Seoul, Reuters reports.

According to the report, the factory would be built by December
2009.

Headquartered in Seoul, South Korea, Hyundai Motor Company
-- http://www.hyundai-motor.com/-- has been selling cars in the
U.S. 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.


MAZDA MOTOR: Ford Eyes Sale of 33% Stake in Japanese Firm
---------------------------------------------------------
Ford Motor Co. is planning to sell its 33% stake in Japan's Mazda
Motor Corp., and is holding talks with potential buyers, Jiji
Press reports, citing sources.

The report relates that Ford apparently aims to raise funds from
the sale, amid its severe state due to weak vehicle sales and a
sharp fall in its stock price below US$2 attributed to the credit
crisis.

Chief Executive Officer Alan Mulally, Bloomberg News reports, said
Ford is emphasizing unifying its own regional units as it tries to
end losses.  "It does make sense to sell off Mazda.  Mazda has no
role in Ford's strategic plan," he said.

However, according to Associated Press, Mazda denied that a
decision had been made by Ford Motor to sell its stake but it
didn't rule out a possible deal.  "Nothing has been decided.  Any
important decision will be disclosed," AP cited the company as
saying.

The selling of Mazda's stake could mean the end of Ford's ties
with Mazda.   "Everything needs to be looked at in the current
situation," Bloomberg News cited Dennis Virag, president of
Automotive Consulting Group in Ann Arbor, Michigan, as saying.

On Oct. 14, 2008, the Troubled Company Reporter-Asia Pacific,
citing the Wall Street Journal, reported that Ford Motor's chief
of U.S. operations, Mark Fields, said that reports about the
company selling its controlling stake in Mazda Motor are
speculative.

According to the TCR-US, Mr. Fields said Ford and Mazda have
worked closely over the decades on the basic architecture of
vehicles that each company sells under different model names, but
the companies would be able to function without the other because
their design and manufacturing operations remain wholly
independent.

Based on the October 10 closing share price in Tokyo, Ford's Mazda
holding was valued at US$1.36 billion.  Ford has lost
$23.9 billion since the end of 2005.  Last month's 35% slide in
U.S. sales outpaced the 27% industry drop as the credit crisis
damped auto demand, especially for the pickups and sport- utility
vehicles that provided most of Ford's 1990s profits, Bloomberg
News says.

Bloomberg News notes that Maryann Keller, an independent auto
analyst and consultant in Greenwich, Connecticut, said after Mazda
shares tumbled 48% this year, Ford may want to hold off on a sale
until stock prices improve.  "This isn't the time to sell.  Ford
would not get the fair value for that business," she added.

                        About Mazda Motor

Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor
Corporation -- http://www.mazda.co.jp/-- together with its
subsidiaries and associates, is primarily involved in the
manufacture and distribution of automobiles.  The company
manufactures passenger cars and commercial vehicles.  Mazda
Motor distributes its products in both domestic and overseas
markets.  The company has 58 subsidiaries.  It has overseas
operations in the United States, Canada, Mexico, Germany,
Belgium, France, the United Kingdom, Switzerland, Portugal,
Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand,
Indonesia and China.  The company has a global network.

                          *     *     *

Mazda Motor continues to carry Standard & Poor's "BB" long-term
corporate credit and long-term senior unsecured debt ratings.



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

BURNSLEY HOLDINGS: High Court Enters Wind-Up Order
--------------------------------------------------
On September 8, 2008, the High Court at Christchurch entered an
order to have Burnsley Holdings Limited's operations wound up and
appointed Iain Andrew Nellies and Wayne John Deuchrass as
liquidators.

The liquidators can be reached at:

          Insolvency Management Limited
          Level 1, 148 Victoria Street
          PO Box 13401
          Christchurch


CVT NEW ZEALAND: Commences Liquidation Proceedings
--------------------------------------------------
The High Court at Rotorua  held a hearing on October 6, 2008, to
consider an application putting CVT New Zealand Limited into
liquidation.

The application was filed on August 20, 2008, by the United Parcel
Service - Fliway (NZ) Limited.

The plaintiff's address for service is at:

          Credit Consultants Debt Services NZ Limited
          Level 3, 3-9 Church Street
          PO Box 213 or DX SX 10069
          Wellington
          Telephone: (04) 470 5972

Dianne S. Lester is the plaintiff's solicitor.


DORCHESTER: Sells Rentals Part of Loan Book for NZ$12.5 Million
---------------------------------------------------------------
Dorchester Finance Limited, a subsidiary of Dorchester Pacific
Limited, has agreed to sell the equipment rentals portion of its
loan book for NZ$12.5 million to Rent Plus Limited.

Dorchester Pacific said NZ$8 million of the purchase price is
payable on completion with the balance payable over 2 years under
a vendor loan and retention arrangement.

Chairman of Dorchester Pacific Limited, Barry Graham, said that
this sale of receivables at close to book value followed the
company’s decision to realize assets to enable repayment of
investors.

The transaction for the sale of receivables has the approval of
the trustees for Dorchester Finance.

Subject to approval from Trustees, Dorchester Finance hopes to
present a Deferred Repayment Plan to its investors in late October
or early November.

                   About Dorchester Pacific

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

                           *     *    *

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

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

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

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


GAS MAIN: Commences Liquidation Proceedings
-------------------------------------------
The High Court at Invercargill  held a hearing on October 8, 2008,
to consider an application putting Gas Main Limited into
liquidation.

The application was filed on July 11, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

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

Julie Newton is the plaintiff's solicitor.


GROOVE IN: Shareholders Placed Company Under Liquidation
--------------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Groove in the Park Limited resolved that the
company be liquidated and that Gareth Russel Hoole and Kevin David
Pitfield, be appointed as liquidators.

Creditors and shareholders may direct their inquiries to:

          Staples Rodway Limited
          Chartered Accountants
          PO Box 3899
          Auckland 1140
          Telephone: (09) 309 0463


HANS FORKLIFT: Crichton and Horne Appointed as Liquidators
----------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the High
Court has appointed David Donald Crichton and Keiran Anne Horne,
chartered accountants of HFK Limited, as liquidators of Hans
Forklift Services (1990) Limited.

Creditors and shareholders may direct their inquiries to:

          Marie Inch
          HFK Limited
          567 Wairakei Road
          PO Box 39100
          Christchurch
          Telephone (03) 352 9189


KILIKILI HOLDINGS: Placed Under Liquidation
-------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993, the
shareholders of Kilikili Holdings Limited resolved
that the company be liquidated and appointed Grant Bruce Reynolds,
insolvency practitioner of Auckland, as liquidator.

Creditors and shareholders may direct their inquiries to:

          Grant Bruce Reynolds
          Reynolds and Associates Limited
          PO Box 259059
          Greenmount, Auckland
          Telephone: (09) 526 0743
          Facsimile: (09) 526 0748


MJV BUILDING: Commences Liquidation Proceedings
-----------------------------------------------
The High Court at Christchurch held a hearing on October 6, 2008,
to consider an application putting MJV Building Limited into
liquidation.

The application was filed on August 27, 2008, by Smiths Hardware
Limited.

The plaintiff's address for service is at:

          Cavell Leitch Pringle & Boyle
          Level 15, Clarendon Tower
          Worcester Street
          PO Box 799
          Christchurch
          Telephone: (03) 379 9940
          Facsimile: (03) 379 2408

Owen Godfrey Paulsen is the plaintiff's solicitor.


NATIONAL PROPERTY: Explores Merger and Liquidation Options
----------------------------------------------------------
The National Property Trust Limited (NPTL), the manager of The
National Property Trust (NPT), disclosed that as a result of its
recent strategic review its board is exploring a number of future
strategic options.

The company said one of the options being considered is a possible
merger of property portfolios, and as such it has commenced
discussions with several parties.

Concurrent with these discussions is the engagement of
PricewaterhouseCoopers (PWC) to prepare a report on the value of
the property portfolio in the current market under a liquidation
scenario.  The PWC report has been commissioned as a result of
feedback received at the most recent unit holder meeting.

NPTL chairman, Kevin Podmore, said the intention of the strategic
review is to consider the best option for the Trust and its
investors going forward.

"The board is exploring a number of options ranging from a merger
or capital-raising through to a liquidation of the Trust,"
Mr. Podmore said.

Mr. Podmore said, "Having consideration for the current market
conditions is important, and any initiatives considered will
ensure the Trust's finances and solid portfolio of assets are
maintained."

                        Half-year Valuation

The National Property Trust' disclosed valuation updates for the
half year to September 30, 2008, with a decrease of approximately
4.6% recorded  during the period, taking the portfolio value to
NZ$280.2 million.

General manager of The National Property Trust Limited John Crone
said the  decrease in valuations of approximately NZ$13.5 million
are in line with market  trends and can largely be attributed to
weaker cap rates.  "Although weaker  cap rates have caused a drop
in the portfolio's value, rental income from the  properties
remains firm," Mr. Crone said.

Full details of valuation changes will be included with the
release of NPT's  interim results due in late November 2008.

                     Sale of New Plymouth
                  Gill Street Office Property

The National Property Trust said it has sold its Gill Street
property in New Plymouth.

Mr. Crone said he is pleased with the NZ$7.4 million sale price
which is above the September 30, 2008, valuation of NZ$7.3
million.

The Gill Street property is a modern eight level office building,
centrally located between the main retail and commercial streets
of New Plymouth and the waterfront.  The building is fully
occupied with tenants including IRD, PricewaterhouseCoopers,
Ministry of Education and Lone Star restaurant.

Mr. Crone said the sale is in line with the Trust's strategy to
sell property to reduce bank debt where an appropriate offer is
received.  "With recent tenancies filling all the vacant space in
the building, it was a logical time to test the market.  The
latest sale reflects that there is still reasonable demand for
well-managed quality properties with a good lease profile,"
Mr. Crone said.

                     About National Property

Based in Christchurch, New Zealand, The National Property Trust
(NZE:NAP) -- http://www.npt.co.nz/-- is engaged in investment in
retail and commercial property in New Zealand.  The manager of the
Trust is The National Property Trust Limited.  The Trust has a
portfolio of retail, commercial and industrial properties.  Its
commercial properties include AA Building, Torrens House,
Baldwin’s Building, 186 Willis, Gill and Liardet, Sel Peacock
Drive and Carlton DFK.  The company’s industrial properties
include Heinz Wattie’s and Print Place.  As on March 31, 2008, the
Trust’s retail property included Ocean Boulevard.  In January
2008, NPT sold CSI Logical House in Willis Street, Wellington.


PINEHURST LIMITED: Commences Liquidation Proceedings
----------------------------------------------------
The High Court at Christchurch  held a hearing on October 6, 2008,
to consider an application putting Pinehurst Limited into
liquidation.

The application was filed on August 27, 2008, by Body Corporate
171476.

The plaintiff's address for service is at:

          Attn: N. B. Goodger
          Bell Gully
          Level 22, Vero Centre
          48 Shortland Street
          Auckland

Ralph George Simpson is the plaintiff's solicitor.


UENUKU CONTRACTING: High Court Enters Wind-Up Order
---------------------------------------------------
On September 10, 2008, the High Court at Blenheim entered an order
to have Uenuku Contracting Limited's operations wound up and
appointed Iain Andrew Nellies and Wayne John Deuchrass as
liquidators.

The liquidators can be reached at:

          Insolvency Management Limited
          Level 1, 148 Victoria Street
          PO Box 13401
          Christchurch


WAIPARA EARTH: High Court Enters Wind-Up Order
-----------------------------------------------
On September 8, 2008, the High Court at Christchurch entered an
order to have Waipara Earth & Vine Limited's operations wound up
and appointed Iain Andrew Nellies and Wayne John Deuchrass as
liquidators.

The liquidators can be reached at:

          Insolvency Management Limited
          Level 1, 148 Victoria Street
          PO Box 13401
          Christchurch



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

FIRST GEN: May Default on US$442 Million Debt Due November 20
-------------------------------------------------------------
First Gen Corporation is likely to miss payment on US$442 million
debts due on Nov. 20, 2008, Malaya News reports citing an industry
leader.

"It will be a lot more difficult to raise financing right now...so
they are at risk.  With default and cross defaults their problem
might affect banks", the industry leader was quoted by Malaya as
saying.

Reuters relates that First Gen President and Chief Executive
Officer Federico Lopez told reporters that it may borrow less than
the US$700 million it needs from banks to refinance debt because
of pricing difficulties and could sell some assets.

According to the report, the debt was incurred by First Gen's
US$1.35 billion purchase last year for a majority 60% stake in
geothermal power producer Energy Development Corp (EDC) and also
investment in a 1,000-MW natural gas-fired plant on the main Luzon
island.

Mr. Lopez and other officials said that the company is looking at
selling some of its assets to pay down debt, including a
40% stake in a holding firm that owns the First Gen holding in EDC
and a 112-megawatt hydroelectric power plant, Reuters adds.

In a disclosure with the Philippine Stock Exchange, First Gen said
that it has received proposals from various international and
local entities for the purchase of First Gen Hydro Power
Corporation which operates Pantabangan-Masiway and Red Vulcan.
First Gen is also in discussion with several financial
institutions in connection with refinancing plans involving some
of its operating subsidiaries and holding companies.  But at
present, no definitive financing, sale, purchase or investment
agreements have been executed.

In 2001, a bank came close to declaring First Gen in default at
the height of the Maynilad problem, Malaya notes.  A study done by
the central bank in 2002 showed that the group accounted for 20%
of past due loans in the system, the report adds.

                         About First Gen

First Gen Corporation (FGEN) was incorporated on Dec. 22, 1998, as
an independent power producer in the Philippines.  It listed its
shares at the Philippine Stock Exchange on Feb. 10, 2006.

FGEN is engaged in the business of power generation through
several companies, namely, First Gas Power Corporation, which
operates the 1000 MW Santa Rita power plant; FGP Corporation,
which operates the 500 MW San Lorenzo power plant; Bauang Private
Power Corporation, which operates the 225 MW Bauang power plant;
First Gen Hydro Power Corporation, which operates the 112 MW
Pantabangan-Masiway hydroelectric power plants; and FG Bukidnon
Power Corporation, which operates the 1.6 MW Agusan power plant.

FGEN also intends to expand into businesses that complement its
power generation operations.  In particular, the company expects
to play a major role in the development of downstream natural gas
transmission and distribution facilities, which is among the
flagship projects of the Department of Energy.


LEAR CORPORATION: Reduces 2008 Sales Outlook by US$1,000,000,000
----------------------------------------------------------------
Lear Corp. disclosed that as a result of deteriorating and
volatile industry and general economic conditions, it is reducing
its full-year 2008 sales outlook from US$15 billion to
approximately US$14 billion and now sees income before interest,
other expense, income taxes, restructuring costs and other special
items down about 20% from the previous guidance of US$550 million
to US$600 million provided on July 29, 2008, based on current
production estimates.  Even with the lower sales and earnings
forecast, Lear expects to generate positive free cash flow for the
year.

Rapidly declining North American vehicle sales and production
generally, combined with a major shift in product mix to smaller
passenger vehicles in the U.S., as well as slowing sales and lower
production in Europe are the major factors impacting the company's
financial outlook for the remainder of 2008.

"Lear has been very pro-active in restructuring global operations
and taking steps to maintain a strong liquidity position," said
Bob Rossiter, Lear's chairman, chief executive officer and
president.  "As conditions have deteriorated, we have aggressively
responded by taking actions to reduce our cost structure.  As a
result, we expect to generate positive free cash flow for the
year.  However, like all automotive suppliers, we are being
adversely impacted by lower production volumes."

Based in Southfield, Michigan, Lear Corporation (NYSE: LEA) --
http://www.lear.com/-- supplies automotive seating systems,
electrical distribution systems and electronic products.  Lear's
world-class products are designed, engineered and manufactured by
a diverse team of more than 90,000 employees at 236 facilities in
33 countries.  Lear's headquarters are in Southfield, Michigan.

                         *     *     *

As reported in the Troubled Company Reporter on Sept. 30, 2008,
Standard & Poor's Ratings Services has raised its issue-level
rating on Lear Corp.'s US$1 billion senior secured term loan
facility (US$988 million outstanding) to 'BB' from 'BB-' and
revised the recovery rating to '1' from '2'.  In addition, S&P
lowered its issue-level ratings on Lear's senior unsecured notes
to 'B' from 'B+' and revised the recovery rating to '5' from '4',
indicating the expectation of modest recovery in the event of a
payment default.


* PHILIPPINES: FDI Level Reaches US$147 Million in July
-------------------------------------------------------
Net inflows of foreign direct investments (FDI) continued in July,
amounting to US$147 million, Bangko Sentral ng Plipinas reports
citing Officer-in-Charge Nestor A. Espenilla, Jr.

Net inflows were due largely to higher gross equity capital
placements, which rose by a hefty 92.6 percent to US$235 million
as a result of investments for the rehabilitation of a hydropower
facility in northern Luzon.  Reinvested earnings also rose year-
on-year to US$81 million, almost six times higher than the year-
ago level.  These inflows were, however, mitigated by the
US$163 million net outflow in the other capital account arising
from intercompany loan repayments to foreign direct investors and
trade credit extended to affiliates abroad.

The continuing net inflows of equity capital and reinvested
earnings shored up net FDI inflows during the seven-month period,
which reached US$960 million.  This level was, however, less than
half the level posted a year ago.  The ongoing financial crisis,
particularly in the major advanced economies continued to weigh
down on investor sentiment, OIC Espenilla added.  Gross equity
capital placements amounted to US$904 million and were channeled
mainly to manufacturing (shipbuilding and repair, auto electronics
parts & components, paper products), services
(recreational/cultural), mining, construction (hotel/leisure &
resort/water spa development, power plant facility, hydropower
facility rehabilitation), real estate, and financial institutions.
Investments came primarily from the U.S., Japan, Singapore, South
Korea, Germany, and Malaysia.

Reinvested earnings during the first seven months meanwhile rose
to US$279 million, higher by 38.1 percent compared to the level
recorded in the same period in 2007, as foreign investors opted to
retain their earnings in local firms given the country’s
underlying sound macroeconomic fundamentals.

The other capital account, consisting mainly of intercompany
borrowing/lending between foreign direct investors and their
subsidiaries/affiliates in the Philippines, reversed to a net
outflow of US$35 million, due to intercompany loan repayments and
higher trade credit extended to affiliates abroad.  The higher
unremitted profits of the local branches of foreign banks,
however, mitigated the impact of these outflows.


* PHILIPPINES: DOLE Secretary Assures No Mass Layoffs of OFWs
-------------------------------------------------------------
There will be no mass layoffs of Filipino workers around the world
despite the global financial crisis, Philippine Daily Inquirer
reports, citing Department of Labor and Employment (DOLE)
Secretary Marianito Roque.

According to the PDI, Mr. Roque denied reports that he was quoted
as saying that 50,000 jobs in the United States would be lost due
to the credit crunch there.  Mr. Roque explained that most of the
OFWs in the U.S. were nurses, whose employers -- hospitals -- were
unlikely to close shop, the report relates.  He said that the
meltdown "would not hit [] like a tidal wave, not suddenly."

Atty. Vicente Leogardo of the Employers Confederation of the
Philippines declared that the electronics and semiconductors
industry will be most affected by the financial meltdown in the
US, the PDI relates.

Although there has been a drop in the deployment of nurses to the
U.S. last year, it had nothing to do with the crisis but rather
the Philippines has long used up its annual quota for the number
of visas allocated for a particular country, the PDI cited
Mr. Roque as saying.

Mr. Roque’s undersecretary, Lourdes Trasmonte, said that the
thrust would be to explore other labor markets like Australia, New
Zealand, and Canada -- all of which have sought Philippine
government assistance in facilitating the hiring of OFWs, The
report adds.

Meanwhile, Ambet Yuson, regional representative of the Building
and Wood Workers' International, said that the 10,000 jobs
available for Filipinos in Canada is now in doubt, as the
financial crisis could slow down recruitment, while the jobs of
those who flew there are now at risk, the PDI notes.



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

AGRI INTERNATIONAL: Moody's B2 CFR on Review for Downgrade
----------------------------------------------------------
Moody's Investors Service has put on review for possible downgrade
the B2 corporate family and senior secured bond rating of Agri
International Resources Pte Ltd (AIRPL).

"This rating action follows Moody's placement of Bakrie Sumatera
Plantations Tbk's (BSP) B2 corporate family rating on review for
possible downgrade," says Wonnie Chu, an Analyst at Moody's,
adding, "BSP is the 100% off-taker of AIRPL's crude palm oil and
palm kernel and holds an effective 51% ownership of AIRPL.  As
such, the two ratings are closely linked to each other."

Agri International Resources Pte Ltd (AIRPL) is a private company
which was incorporated in Singapore in May, 2007, with the
objective of acquiring and developing oil palm plantations in
Indonesia.  BSP, an Indonesian crude palm oil and rubber company,
has an effective 51% shareholding of AIRPL.


LEHMAN BROTHERS: Singaporean Investors Express Anguish in Park
--------------------------------------------------------------
Hundreds of distraught Singaporean investors flooded a park known
as Speakers' Corner, the only outdoor space where the government
allows limited protests and public gatherings, to express their
anguish at losses from structured notes issued by Lehman Brothers
Holdings, Inc., The Associated Press reports.  The protesters
alleged they were made to believe the notes were sold to them by
banks as safe investments.

According to the report, among the crowd that gathered Saturday
were retired, middle class and working class investors who told a
similar story.  During the past few years as their other fixed-
income instruments matured local bank officials pushed a five to
seven-year bond that would yield about 5%, higher than the 0.5%
interest rate banks pay on checking or savings account deposits.

"I came down here because I really don't know what to do and I
wanted to talk to other people in my same situation... I invested
SGD70,000 (US$47,265) and now my daughter is asking me if she can
still go to university . . . .  It's terrible", AP quoted a 45-
year-old engineer who would only gave her surname of Lim as
saying.

AP notes that the central bank, known as the Monetary Authority of
Singapore, said that about 8,000 people bought SGD508 million
(US$343 million) of Lehman-linked structured notes from nine banks
and brokerages.

The bank said Friday that the bonds' trustee, HSBC, "has not
received firm proposals from potential new swap counterparties"
and the notes' underlying securities would not be sold for at
least two weeks, the report adds.

                      About Lehman Brothers

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

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

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

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

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 Sept. 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which 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.

                           *     *     *

As reported by the Troubled Company Reporter on Oct. 14, 2008,
Moody's Investors Service has downgraded the Counterparty Ratings
of Lehman Brothers Financial Products Inc. and Lehman Brothers
Derivative Products Inc. from Baa3 with direction uncertain to B1
on review for downgrade.


* SINGAPORE: Economy Declines for Two Straight Quarters
-------------------------------------------------------
Singapore's trade-sensitive economy has declined for a second
straight quarter, the government said Friday, Agence France-Presse
(AFP) reports.  This means the city-state has entered a recession
for the first time in six years.

DBS Group Research said that Singapore is the first Asian economy
to fall into a technical recession, AFP said.

The report notes that Singapore is Southeast Asia's wealthiest
economy in terms of gross domestic product (GDP) per capita.
However, Singapore is heavily dependent on trade, which makes it
sensitive to hiccups in developed economies, particularly key
export markets the United States and Europe.

Thus, the Monetary Authority of Singapore -- its de facto central
bank -- said it was easing monetary policy for the first time in
more than four years in order to confront the downturn, AFP notes.

Analysts said that the key drag on third-quarter growth was
manufacturing, and the surprise was a sharp decline in growth of
what has been a booming construction sector, AFP says.

Manufacturing sector contracted by 11.5% year-on-year in the third
quarter, more than the 4.9% drop in the previous quarter, while
construction growth slowed to 7.8% from 19.8%, and service
industries grew by 6.1%, marginally down from 7.0% in the second
quarter, the report said citing a data from Trade ministry.

Morgan Stanley said things will likely only get worse for
Singapore -- forecasting virtually zero growth of 0.2% year-on-
year for 2009, AFP said.



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

* S&P Junks Ratings on 2 Asia-Pacific Synthetic CDOs to CCC-pNRi
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered the ratings on two
Asia-Pacific synthetic collateralized debt obligations (CDOs).

These rating actions follow the lowering of the rating of Copper
Creek CDO SPC on Oct. 9 2008.  The transactions in the list below
are rating dependent on tranche B-1 of Copper Creek CDO SPC,
which is the authorized investment in the transactions.  The
subscript NRi shows that the interest on the notes is not rated.

The rating actions taken on the affected transactions are:

Name                       Rating To             Rating From
--------------------------------------------------------------
Beryl Finance Ltd.
   Series 2007-17       CCC-pNRi/Watch Neg     AApNRi/Watch Neg
Beryl Finance Ltd.
   Series 2007-18       CCC-pNRi/Watch Neg     AApNRi/Watch Neg


* S&P Junks Ratings on 17 Asia-Pacific Synthetic CDO Tranches
-------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its ratings on 17
tranches relating to 17 Asia Pacific (ex-Japan) synthetic CDO
transactions and kept the ratings on CreditWatch with negative
implications.  In addition, S&P left the ratings on 23 additional
tranches from 22 Asia Pacific (ex-Japan) synthetic CDO
transactions on CreditWatch negative.  These synthetic CDO
transactions involve Lehman Brothers Special Financing Inc. (LBSF)
as a swap counterparty and Lehman Brothers Holdings Inc.
(LBHI) as a swap guarantor.  Both LBSF and LBHI filed for U.S.
bankruptcy protection on Oct. 3, 2008, and Sept. 15, 2008,
respectively.

The rating actions reflect S&P's view on the degree of likelihood
of loss incurred by the relevant synthetic CDO transactions listed
below.

Under the swap documents, S&P understands that the bankruptcy
filings of LBHI and LBSF both constitute an event of default and
termination event in each case.  However, the aforementioned
transactions are not automatically terminated.  Once S&P receives
final payment reports, and if the notes experience a loss, it
will downgrade them to 'D'.  However, if the notes are paid back
in full, S&P will withdraw the ratings.

In addition to the above, the rating on the Series I notes issued
by Mahogany Capital Ltd has been lowered and placed on CreditWatch
negative following the lowering of the rating on
Saphir Finance PLC Series 2004-11.  The Mahogany Capital Ltd.
Series I is a repack of the Saphir Finance PLC Series 2004-11
notes.

The Series II notes issued by Mahogany Capital Ltd. remain at
'BB+pNRi/Watch Neg', in line with the rating on Saphir Finance
PLC Series 2006-5.  The Mahogany Capital Ltd. Series II is a
repack of the Saphir Finance PLC Series 2006-5 notes.


Ratings lowered and kept on CreditWatch Negative:

Transaction                   Rating To           Rating From
Aquamarine Finance PLC
Series 2004-1             CCC-/Watch Neg       AAA/Watch Neg
Beryl Finance Ltd.
Series 2005-2             CCC-/Watch Neg       BB-/Watch Neg
Beryl Finance Ltd.
Series 2007-7             CCC-/Watch Neg       AAA/Watch Neg
Beryl Finance Ltd.
Series 2007-10            CCC-/Watch Neg       AAA/Watch Neg
Beryl Finance Ltd.
Series 2008-5             CCC-/Watch Neg       AAA/Watch Neg
Beryl Finance Ltd.
Series 2008-9             CCC-/Watch Neg       AAA/Watch Neg
Lion City CDO Ltd.
Series 2006-1             CCC-/Watch Neg       AA/Watch Neg
Lion City CDO Ltd.
Series 2006-2             CCC-/Watch Neg       AA/Watch Neg
Lion City CDO Ltd.
Series 2006-3             CCC-/Watch Neg       AA/Watch Neg
Mahogany Capital Ltd.
Series I                  CCC-/Watch Neg       BBB+/Watch Neg
Onyx Funding Ltd.
Series 2005-1             CCC-/Watch Neg       BBB+/Watch Neg
Onyx Funding Ltd.
Series 2006-1             CCC-/Watch Neg       A-/Watch Neg
Saphir Finance PLC
Series 2004-7             CCC-/Watch Neg       AAA/Watch Neg
Saphir Finance PLC
Series 2004-11            CCC-/Watch Neg       BBB+/Watch Neg
Saphir Finance PLC
Series 2008-12            CCC-/Watch Neg       AA/Watch Neg
Zircon Finance Ltd.
Series 2007-8             CCC-/Watch Neg       BBB/Watch Neg
Zircon Finance Ltd.
Series 2007-10            CCC-/Watch Neg       BB/Watch Neg
Zircon Finance Ltd.
Series 2007-14            CCC-pNRi/Watch Neg   BBB+pNRi/WatchNeg

Ratings remaining on CreditWatch Negative:

Transaction                                 Rating
Beryl Finance Ltd. Series 2005-14           BBB-/Watch Neg
Beryl Finance Ltd. Series 2007-13           AApNRi/Watch Neg
Beryl Finance Ltd. Series 2007-16 Class A   A+pNRi/Watch Neg
Beryl Finance Ltd. Series 2007-16 Class B   ApNRi/Watch Neg
Beryl Finance Ltd. Series 2007-17           CCC-pNRi/Watch Neg
Beryl Finance Ltd. Series 2007-18           CCC-pNRi/Watch Neg
Beryl Finance Ltd. Series 2008-4            AAApNRi/Watch Neg
Beryl Finance Ltd, Series 2008-6            A+pNRi/Watch Neg
Beryl Finance Ltd. Series 2008-8            AAA/Watch Neg
Beryl Finance Ltd. Series 2008-10           AAA/Watch Neg
Beryl Finance Ltd. Series 2008-14           AA-pNRi/Watch Neg
Diadem City CDO Ltd. Series 2008-3          AApNRi/Watch Neg
Lion City CDO Ltd. Series 2006-5            AAA/Watch Neg
Mahogany Capital Ltd. Series II             BB+pNRi/Watch Neg
Saphir Finance PLC Series 2004-4            AAA/Watch Neg
Saphir Finance PLC Series 2004-12           AA/Watch Neg
Saphir Finance PLC Series 2006-5            BB+pNRi/Watch Neg
Saphir Finance PLC Series 2008-6            AAA/Watch Neg
Saphir Finance PLC Series 2008-7            AAA/Watch Neg
Saphir Finance PLC Series 2008-8            AA+/Watch Neg
Saphir Finance PLC Series 2008-9            AA/Watch Neg
Saphir Finance PLC Series 2008-10           AA/Watch Neg
Saphir Finance PLC Series 2008-11           AA/Watch Neg
Saphir Finance PLC Series 2008-13           AAA/Watch Neg




                         *********

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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