TCRAP_Public/081023.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Thursday, October 23, 2008, Vol. 11, No. 211

                            Headlines

A U S T R A L I A

ALLSTATE FIRE: To Declare Dividend on October 31
BABCOCK & BROWN: Reviews Offers From Potential Partners
CAPELLE AUSTRALIA: Members' Final Meeting Set for October 31
CAPELLE LICENSING: Members' Final Meeting Set for October 31
CFMGLOBAL RESOURCES: To Declare Dividend on October 28

GLENCROSS HOLDINGS: Members and Creditors to Meet on October 30
MATILDA MINERALS: Placed in Administration
MULLIGAN PLANT: To Declare Dividend on October 28
NRG ENERGY: US$6.2MM Purchase Offer Neg. for Exelon, Moody's Says
NRG ENERGY: Pending Exelon Deal Cues Fitch to Keep Ratings

OPES PRIME: Clients Files AU$150 Million Damages Claim
PRO RETAIL: To Declare Dividend on October 31
REVIEW PTY: Liquidators to Give Wind-Up Report on October 31
ST GEORGE: Lowers Standard Variable Interest Rates by 0.21% p.a.
THE PRESENTATION: Joint Meeting Slated for October 31

WARATAH BOWLING: To Declare Dividend on October 31


C H I N A

CHINA ORIENWISE: Moody's Lowers Corporate Family Ratings to Caa1
CITIC PACIFIC: Moody's Downgrades Corporate Family Ratings to Ba2
XINHUA FINANCE: Unit to Use Extra Fund for Sports & TV Business
* CHINA: Raise Export Textile & Toys Tax to Help Struggling Firms


H O N G K O N G

AMERICAN INTERNATIONAL: To Sell Stake in Asian Life-Insurance Biz
BACCARAT PACIFIC: Placed Under Voluntary Liquidation
CAPITAL W : Requires Creditors to File Claims by November 20
CHRYSLER LLC: Bankruptcy to Resolve Labor Woes, Economist Says
CITIC GROUP: S&P Puts BB+ Counterparty Credit Rating on WatchNeg

CITIC PACIFIC: S&P Cuts Credit Rating to BB Over HK$15.5BB Losses
FORD MOTOR: Tracinda's Stake Sale Casts Doubt on Firm's Health
FOU WAH: Members to Hear Wind-Up Report on November 17
FRANCO-ASIATIC: Members' Meeting Slated for November 18
GENERAL MOTORS: Merger Might Help Ease Union Talks, Analyst Says

GREEN LOVE: Placed Under Voluntary Liquidation
HONG KONG NEW CONCEPT: Placed Under Voluntary Liquidation
ITUNDE LIMITED: Commences Liquidation Proceedings
MINJEW TRADING: Final General Meeting Slated for November 17
SEARCH ASIA: Members' Final Meeting Set for November 21

SUEZ ASIA: Commences Liquidation Proceedings
W EQUITY: Creditors' Proofs of Debt Due on November 20
W INVESTMENTS: Requires Creditors to File Claims by November 20


I N D I A

JET AIRWAYS: AAI Gives Company Until October 24 to Clear its Dues
KINGFISHER AIRLINES: Has Until October 24 to Clear its Dues


I N D O N E S I A

BANK MANDIRI: Considers Acquisitions in 2009
INDOSAT: Lowers Revenue Projection; To Focus on Internet Business
INDOSAT: Posts IDR1.47 Trillion Net Profit in January-September
* INDONESIA: 7 Tin Smelters Halt Production Due to Low Tin Prices


J A P A N

JHF SERIES: S&P Says JHF Postpones Fixed-Rate Notes Issuance
SAPPORO HOLDING: To Buy 49% of Azumino Shokuhin
* S&P Publishes Watch Report on Japanese Fiber-Optic Industry


K O R E A

HYUNDAI MOTOR: Expects "Worst" Quarterly Earnings Report
STANDARD CHARTERED: No Rating Actions for Banks, Says Moody's
* Korea's Banking Measures to Alleviate Pressure, Moody's Says


M A L A Y S I A

HO HUP: Subject to LKT Tracts's Wind-Up Petition
NIKKO ELECTRONICS: Appoints Nik Abdul as Member of Audit Committee
SYARIKAT KAYU: Posts MYR668,000 Net Loss in Third Quarter
WONDERFUL WIRE: Court to Hear MDV's Wind-Up Petition on Feb. 27


N E W  Z E A L A N D

CER GROUP: Won't Pay AU$1 Mil. Deferred Settlement to VRM Group
FEMALE DOCTOR: Liquidator Sets Oct. 31 as Claims Bar Date
GMF CONSTRUCTION: Wind-Up Petition Hearing Set for October 28
INLET REALTY: Proofs of Debt Due on October 31
INTRAC CORPORATION: Wind-Up Petition Hearing Set for November 7

JOHN AH: Proofs of Debt Due on October 31
NIMBUS GROUP: Commences Liquidation Proceedings
OPTIMUM PROPERTY: Liquidator Sets Oct. 31 as Claims Bar Date
PATHWAYS FINANCIAL: Liquidator Sets Oct. 31 as Claims Bar Date
SAMCO CORPORATION: Proofs of Debt Due on November 7

THE LAWN: Proofs of Debt Due on October 29
* NEW ZEALAND: Liquidations Up Almost 28% in September Quarter
* NEW ZEALAND: Central Bank Cuts Interest Rates to 6.5%


P H I L I P P I N E S

* PHILIPPINES: Banks Want Reprieve From Losses on Government Debt


S I N G A P O R E

* SINGAPORE: Economy to be Weak for Several Quarters


T A I W A N

QUANTA COMPUTER: Gets Intel Classmate PC Orders


X X X X X X X X

* S&P Sees Increasing Pressure for Asia Pacific Air/Shipping Biz


                         - - - - -


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

ALLSTATE FIRE: To Declare Dividend on October 31
------------------------------------------------
Allstate Fire Systems Pty Ltd will declare dividend on
October 31, 2008.

Creditors who were unable to file their proofs of debt on
October 16, 2008, will be excluded in the company's dividend
distribution.

The company's liquidator is:

          Adrian Brown
          Ferrier Hodgson
          Level 29, 600 Bourke Street
          Melbourne VIC 3000
          Telephone: (03) 9600 4922
          Facsimile: (03) 9642 5887
          DX Number 125
          Melbourne


BABCOCK & BROWN: Reviews Offers From Potential Partners
-------------------------------------------------------
Babcock & Brown Ltd said it has undertaken a process to review the
expressions of interest it has received from a number of parties
to establish a strategic relationship with the firm.

The company said that the process is at a preliminary stage and
there is no certainty that any agreement will eventuate.

No formal timetable for resolution of any agreement has yet been
determined although Babcock & Brown would expect the process to
continue into the new year, the company said in a statement.

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

                          *     *     *

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


CAPELLE AUSTRALIA: Members' Final Meeting Set for October 31
------------------------------------------------------------
Salvatore Algeri and Simon A. Wallace-Smith, Capelle Australia Pty
Ltd's appointed estate liquidator, will meet with the company's
members on October 31, 2008, at 10:00 a.m. to provide them with
property disposal and winding-up reports.

The liquidators can be reached at:

          Deloitte Touche Tohmatsu
          180 Lonsdale Street
          Melbourne VIC 3000
          Telephone: (03) 9208 7000


CAPELLE LICENSING: Members' Final Meeting Set for October 31
------------------------------------------------------------
Salvatore Algeri and Simon A. Wallace-Smith, Capelle Licensing Pty
Ltd's appointed estate liquidator, will meet with the company's
members on October 31, 2008, at 10:00 a.m. to provide them with
property disposal and winding-up reports.

The liquidators can be reached at:

          Deloitte Touche Tohmatsu
          180 Lonsdale Street
          Melbourne VIC 3000
          Telephone: (03) 9208 7000


CFMGLOBAL RESOURCES: To Declare Dividend on October 28
------------------------------------------------------
Cfmglobal Resources Pty Ltd will declare dividend on October 28,
2008.

Creditors who were unable to file their proofs of debt on
October 14, 2008, will be excluded in the company's dividend
distribution.

The company's liquidator is:

          Neil Cribb
          RSM Bird Cameron
          Chartered Accountants
          8 St Georges Terrace
          Perth WA 6000
          Telephone: (08) 9261 9100
          Facsimile: (08) 9261 9340


GLENCROSS HOLDINGS: Members and Creditors to Meet on October 30
---------------------------------------------------------------
Glencross Holdings Pty Ltd fka Taren Point Tile House will hold a
meeting for its members and creditors on October 30, 2008, at
10:00 a.m.  During the meeting, the company's liquidator, Danny
Vrkic, will provide the attendees with property disposal and
winding-up reports.

The liquidator can be reached at:

          Danny Vrkic
          Jirsch Sutherland & Co - Wollongong
          Level 1, 76 Market Street
          Wollongong NSW 2500
          Telephone: (02) 4225 2545
          Facsimile: (02) 4225 2546


MATILDA MINERALS: Placed in Administration
------------------------------------------
Matilda Minerals Limited has gone into administration after
placing its shares in a trading halt pending a financial review
last week.

The company said it has appointed Martin Jones, Andrew Saker and
Darren Weaver of Ferrier Hodgson as voluntary administrators to
look at options for the restructure of Matilda Minerals Limited
and its financial positions.

Matilda Minerals reported a net loss of AU$17,499,994 on revenues
of AU$2,866,670 for the year ended June 30, 2008, compared with a
net loss of AU$3,888,193 on revenues of AU$2,273,953 in the prior
year.

According to Rebecca Lawson of the WA Business News, the loss
follows Matilda's decision in August to suspend operations at its
Tiwi Islands mine due to rising operations costs and the then
stronger Australian dollar.

Meanwhile, the report says, Matilda's administration is another
blow to Michael Kiernan who had built an empire of Western
Australian mining companies including Territory Resources Ltd and
the now collapsed Monarch Gold Mining Company Ltd.

The report recounts that Mr. Kiernan, who had served as a non-
executive director on the Matilda board, resigned in late June.

Territory has a 27.4 per cent holding in Matilda and had made a
AU$4.6 million impairment for its investment in Matilda in its
2008 full year report, the report notes.

                      About Matilda Minerals

Based in West Pert, Australia, Matilda Minerals Limited (ASX:MAL)
-- http://www.matildaminerals.com-- engages in mineral sands
exploration and mining operations.  During the fiscal year ended
June 30, 2008 (fiscal 2008), the company continued mining
operations at its Andranangoo mineral sands project in the Tiwi
Islands in the Northern Territory, Australia.  Nearly 900,000 tons
of ore were mined from the project and Matilda had a stockpile of
approximately 32,600 tons of concentrate by the end of fiscal
2008.  Matilda is exploring 16 prospects on Melville and Bathurst
Islands and has identified heavy mineral targets at several of
them.  Its Cape York Project comprises 10 Exploration Permit
applications totaling 1560 square kilometers of prospective
coastal sand plains and dunes of Pleistocene and Holocene age.
The Pender Project, situated on the Dampier Peninsula north of
Broome in Western Australia comprises nine exploration licenses,
two of which are ungranted.


MULLIGAN PLANT: To Declare Dividend on October 28
-------------------------------------------------
Mulligan Plant Hire Pty Ltd will declare dividend on October 28,
2008.

Creditors who were unable to file their proofs of debt on
October 14, 2008, will be excluded in the company's dividend
distribution.

The company's deed administrator is:

          Blair Pleash
          Hall Chadwick
          Level 1, 91 Upton Street
          Bundall QLD 4217


NRG ENERGY: US$6.2MM Purchase Offer Neg. for Exelon, Moody's Says
---------------------------------------------------------------
Moody's Investors Service views Exelon Corporation's (Exelon: Baa1
senior unsecured) unsolicited offer to purchase NRG Energy, Inc.
(NRG: Ba3 Corporate Family Rating) in a US$6.2 billion stock-for-
stock transaction as being potentially negative for the credit
quality of Exelon and Exelon Generation Company (ExGen: A3 senior
unsecured).  If the transaction proceeds, the consolidated credit
metrics of Exelon and ExGen would weaken from historical levels
and the business risk for the company, including environmental
risks, would increase.  Conversely, Moody's views the potential
combination as having positive benefits for NRG creditors given
Exelon's stronger balance sheet and the value for a merchant
operation from being a part of a more diverse and larger
organization.

Through the 12 months ended June 30, 2008, Moody's calculates that
Exelon and ExGen generated about US$5.0 billion and US$3.0 billion
of operating cash flow, respectively, while NRG generated more
than US$1.5 billion over the same period.  Assuming that the
merger is completed and all US$8.6 billion of NRG's debt and
preferred is refinanced or assumed at the time of closing, Moody's
calculates that the proforma combined cash flow to adjusted debt
would be approximately 28% at the Exelon level and about 37% at
the ExGen level, and cash flow coverage of interest expense would
been slightly more than 5.0x at Exelon and nearly 6.0x at ExGen.
These financial ratios are lower than the historical level.

The prospects for Exelon's bid are uncertain.  Most importantly,
NRG has not agreed to the transaction.  In addition, the
transaction would entail substantial execution risk on the
regulatory and financing front, particularly given the number of
state approvals needed and the likely requirement to sell about
3,000 MW of assets.

The transaction would result in a change of control event for NRG
bondholders and bank creditors requiring Exelon to raise
approximately US$8.0 billion of bank and bond debt to address this
potential issue.  Exelon has indicated that they are in
discussions with underwriters to address this issue.  However, S&P
believe that in the current credit environment the financing terms
are likely to be more expensive and more stringent than Exelon's
current financing arrangements, which would further weaken
consolidated credit metrics.  However, Moody's also recognizes the
increase in scale, geographic diversity and fuel diversity that
will follow should this transaction move forward, all of which are
important qualitative factors in assessing credit quality for
merchant wholesale generators.

In light of the unsolicited nature of Exelon's offer, the response
by NRG, and the significant contingencies and uncertainties
underlying the offer, Moody's does not expect to not make a
determination on the possible rating impact for either company
until circumstances are better clarified.

Headquartered in Chicago, Exelon is the holding company for non-
regulated subsidiary, ExGen and for regulated subsidiaries,
Commonwealth Edison Company (ComEd; Baa3 senior unsecured, stable
outlook) and PECO Energy Company (PECO; A3 Issuer Rating, stable
outlook).  At December 31, 2007, Exelon had total assets of
US$45.4 billion.

Headquartered in Princeton, NRG owns and operates power generating
facilities, primarily in Texas and the northeast, south central
and western regions of the United States.  NRG also owns
generating facilities in Australia and Germany.


NRG ENERGY: Pending Exelon Deal Cues Fitch to Keep Ratings
----------------------------------------------------------
While an acquisition of NRG Energy Inc. by the higher-rated Exelon
Corp. would be a positive for NRG's credit ratings, alternate
scenarios including other corporate transactions could have
neutral or deleterious credit implications, according to Fitch
Ratings, which is keeping NRG on Rating Watch Evolving to reflect
both the unresolved nature of the offer and, the possible outcomes
should another suitor emerge or NRG proceed with an acquisition of
its own or some other corporate transaction.

Separately, Fitch has placed Exelon Corp. and Exelon Generation on
Rating Watch Negative.

Fitch originally placed NRG on Watch Evolving following its own
unsolicited acquisition offer for competitive generator Calpine
Corp in May 2008.  Evolving signifies that Fitch may upgrade,
downgrade or affirm NRG's ratings, pending the outcome of a
definitive transaction with Exelon or other possible corporate
combinations.

These ratings remain on Rating Watch Evolving by Fitch:

-- Issuer default rating at 'B';
-- Senior secured term loan B at 'BB/RR1';
-- Senior secured revolving credit facility at 'BB/RR1';
-- Senior notes at 'B+/RR3';
-- Convertible preferred stock at 'CCC+/RR6'.

Approximately US$8.1 billion of debt is affected.

Fitch is concerned with the refinancing risk associated with the
change of control provisions on NRG's debt, particularly given
current market conditions.  Fitch expects to update the Rating
Watch status upon the signing of a definitive transaction with
Exelon or upon evaluation of the terms and conditions of another
transaction should another offer emerge.


OPES PRIME: Clients Files AU$150 Million Damages Claim
------------------------------------------------------
Leonie Wood of The Age reports that a big group of Opes Prime
Group Ltd's clients have filed a AU$150 million damages claim
against the company and ANZ Bank on Monday, October 20, 2008, in
the Federal Court in Perth.

According to The Age, the 67 clients in the latest court case have
been corralled by litigation funder IMF.  They accuse Opes of
misleading and deceptive conduct, and they claim ANZ was an
accessory.

Among other things, the report says, the 99-page statement of
claim names four ANZ senior employees who had accounts with Opes
Prime — two of whom received margin calls from Opes — and argues
that because these employees used Opes Prime accounts, the bank
also knew Opes' general methods of dealing with clients.

The Age relates that the clients also contend ANZ broke the law
because it failed to submit substantial shareholding notices in
various companies until more than a week after Opes failed.  They
argue that if they had known that ANZ had a relevant interest in
their shares, they would not have entered into the arrangements
with Opes.

Many Opes clients, the report notes, including the 67 IMF
litigants, claim Opes misled them into believing their shares
always belonged to them.  Opes clients say they vested shares with
the company under what they were wrongly led to believe were
equity-financing arrangements or margin-loan agreements.

However, the report says, the IMF case is not a class action.  The
clients want their shares reinstated, and they want losses and
damages calculated either by estimating the price they might have
received if they sold the stock in the future, or by reference to
the sale prices ANZ achieved provided they were not less than
"true value".

                        About Opes Prime

Opes Prime Group Ltd is an Australian unlisted public company
providing a range of financial services and products for high
net worth individuals, stockbrokers and financial advisors,
asset managers, banks and other firms, both for themselves and
their clients.  The Group conducts business via a number of
operating subsidiaries based in Melbourne, Sydney and Singapore:

   1) Opes Prime Stockbroking Limited is a full Market
      Participant of the Australian Stock Exchange Ltd, and
      holds an Australian Financial Services Licence (#247408)
      which enables it to deal and advise in financial
      services and products to retail and wholesale clients. The
      company was first registered on 10 March 1999, and started
      business with its current shareholders in 2005.  Opes
      Prime Stockbroking is a specialist provider of
      securities lending and equity financing services.  In
      Singapore, the firm operates through Opes Prime Group's
      wholly owned subsidiary, Opes Prime International Pte Ltd.
      In Australia, Opes Prime Stockbroking has granted
      Authorized Representative status to Trader Dealer Pty Ltd,
      an on-line non-advisory trading execution service for the
      semi-professional and professional trader.

   2) Opes Prime Structured Products Pty Ltd develops, manages
      and markets specialized leveraged products for the high
      net worth market, providing outstanding risk protection
      and return potential.

   3) Opes Prime Paradigm Pty Ltd, is a corporate finance and
      advisory firm specializing in small and mid cap stocks.

   4) In Singapore, Opes Prime Asset Management Pte Ltd provides
      specialist hedge fund incubation, advisory and trade
      management services, and Five Pillars Associates Pte Ltd
      provides Islamic finance consultancy.

                        *     *     *

The Troubled Company Reporter-Asia Pacific reported on April 1,
2008, that Opes Prime was placed under receivership after
directors became aware of a number of cash and stock movement
irregularities in relation to a small number of accounts.
Ferrier Hodgson Partners John Lindholm, Peter McCluskey and
Adrian Brown have been appointed Administrators by the directors
of Opes Prime Group Limited and a number of its subsidiaries and
related entities including, Opes Prime Stockbroking Limited.
Initial investigations indicate that the solvency of the
business was under pressure due to a number of major clients not
meeting significant margin calls.  The Administrators are
currently examining the Group's affairs to quantify the likely
liability to OPSL's clients.

At the same time, Sal Algeri and Chris Campbell from the
Deloitte Corporate Reorganisation Group were appointed by a
secured creditor, ANZ Banking Group Ltd., as Receivers and
Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd,
Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd.

The TCR-AP reported on October 17, 2008, that Opes Prime's
creditors voted on Tuesday, October 15, to liquidate the company.

According to the Australian Associated Press, the decision of the
creditors will allow the liquidator to pursue claims against Opes
Prime's secured creditors -- ANZ Bank and Merrill Lynch -- that
were not available to the administrator.

The AAP related that about 1,200 Opes clients lost shares they had
placed with Opes in return for margin loans, when the major
secured creditors of Opes -- ANZ, Merrill Lynch, Dresdner
Kleinwort -- began selling a pool of nearly AU$1.6 billion in
shares soon after the Opes collapse, in a bid to recover money
owed to them by Opes.

Opes Prime owed clients about AU$585 million at the time of the
collapse, but due to fluctuations in the share market that figure
had fallen to about AU$400 million on September 22, the AAP noted
citing Ferrier Hodgson.


PRO RETAIL: To Declare Dividend on October 31
---------------------------------------------
Pro Retail Cleaning Service Pty Ltd will declare dividend on
October 31, 2008.

Creditors who were unable to file their proofs of debt on
October 15, 2008, will be excluded in the company's dividend
distribution.

The company's liquidator is:

          Paul Burness
          Worrells Solvency & Forensic Accountants
          Level 5, 15 Queen Street
          Melbourne VIC 3000
          Telephone: (03) 9613 5511
          Facsimile: (03) 9614 3233
          Website: www.worrells.net.au


REVIEW PTY: Liquidators to Give Wind-Up Report on October 31
------------------------------------------------------------
Salvatore Algeri and Simon A. Wallace-Smith, Review Pty Ltd's
appointed estate liquidator, will meet with the company's members
on October 31, 2008, at 10:00 a.m. to provide them with property
disposal and winding-up reports.

The liquidators can be reached at:

          Deloitte Touche Tohmatsu
          180 Lonsdale Street
          Melbourne VIC 3000
          Telephone: (03) 9208 7000


ST GEORGE: Lowers Standard Variable Interest Rates by 0.21% p.a.
----------------------------------------------------------------
St. George Bank Limited said it is lowering its standard variable
home loan interest rates by 0.21% p.a. to 8.36% p.a., effective
October 31, 2008, for new and existing customers.

Les Matheson, Group Executive Retail Bank, said; "St. George is
pleased to be able to provide customers with a further reduction
in their home loan interest rate."

"This latest reduction, coupled with both the 0.80% p.a. reduction
announced less than two weeks ago and the 0.30% reduction
following the RBA's 0.25% reduction in September, will come as
welcome relief for many Australian families.  We believe this move
reinforces St. George's commitment to remain highly competitive in
the home loan market," Les said.

St. George's 0.21% p.a. rate reduction equates to a saving of
approximately AU$37 per month in repayments on an average size
loan of AU$250,000 over a 30 year loan term.

Recently, St. George cut its fixed interest home loan interest
rates, giving customers the opportunity to lock into some of the
most competitive rates currently in the market.  For example,
eligible Advantage Package customers can take advantage of a
market leading 2 Year Fixed Rate of 6.99% p.a., which is
significantly lower than the standard variable rate.

                    About St George Bank

Headquartered in Kogarah, New South Wales, Australia --
http://www.stgeorge.com.au--  St. George Bank Limited is a
banking company.  The company operates in four business
segments: Retail Bank (RB), Institutional and Business Banking
(IBB), BankSA (BSA) and Wealth Management (WM).  RB is
responsible for residential and consumer lending, provision of
personal financial services including transaction services, call
and term deposits, small business banking and financial
planners.  This division manages retail branches, call centers,
agency networks and electronic channels, such as electronic
funds transfer at point of sale (EFTPOS) terminals, automated
teller machines (ATMs) and Internet banking.

On September 28, 2007, it disposed of its 100% interest in
Scottish Pacific Business Finance Holdings Pty. Limited.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific
on May 13, 2008, Moody's Investors Service reviewed, with
direction uncertain, the ratings of St. George Bank.  It is rated
Aa2 for deposits and senior debt, Prime-1 for short-term
obligations and carries a bank financial strength rating (BFSR)
of B.

In addition, Fitch Ratings placed St. George Bank's 'B' Individual
Rating and 'BB+' Support Rating Floor on Rating Watch Positive.


THE PRESENTATION: Joint Meeting Slated for October 31
-----------------------------------------------------
The Presentation Company Pty Ltd will hold a meeting for its
members and creditors on October 31, 2008, at 10:30 a.m.  During
the meeting, the company's liquidator, Paul Burness, will provide
the attendees with property disposal and winding-up reports.

The liquidator can be reached at:

          Paul Burness
          Worrells Solvency & Forensic Accountants
          Level 5, 15 Queen Street
          Melbourne VIC 3000
          Telephone: (03) 9613 5511
          Facsimile: (03) 9614 3233
          Website: www.worrells.net.au


WARATAH BOWLING: To Declare Dividend on October 31
--------------------------------------------------
Waratah Bowling Club Co-operative Limited will declare dividend on
October 31, 2008.

Creditors who were unable to file their proofs of debt on
October 16, 2008, will be excluded in the company's dividend
distribution.

The company's liquidator is:

          A. E. LEWIS
          Alpha Business Consulting
          Level 3, 2 Market Street
          Newcastle NSW 2300
          Telephone: (02) 4908 4455
          Facsimile: (02) 4908 4499



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C H I N A
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CHINA ORIENWISE: Moody's Lowers Corporate Family Ratings to Caa1
----------------------------------------------------------------
Moody's Investors Service has downgraded China Orienwise Ltd's
(China Orienwise) corporate family and senior unsecured debt
ratings to Caa1 from B3.  The ratings remain on review for
possible further downgrade.

"The downgrade follows the company's announcement on October 16,
2008, regarding the resignation of four of its directors nominated
by foreign shareholders, and is also the result of several events
which have significantly affected the company's operations,
including fraudulent activities, slowdown in new business, delay
in repayments and employee turnover," says Sally Yim, Moody's lead
analyst for the company.

According to the announcement, the Investigation Committee set up
by these four directors has been dissolved while legal proceedings
commenced by the Investigation Committee are ongoing and foreign
shareholders are seeking to intervene in such proceedings.

Further, as stated in the announcement, certain banks have ceased
to accept loan guarantees provided by China Orienwise, while some
employees have left or are planning to leave.  Delay in re-
payments from China Orienwise's obligors has also been occurring
in respect of a significant amount of entrusted loans and
guaranteed transactions, some of which may be intentional.  In
addition, the former general manager of one of China Orienwise's
subsidiaries is suspected to have forged documents, used the
company deal in an unauthorized manner and illegally granted
guarantees to secure certain third-party loans.  The total amount
of these forged guarantees is expected to be significant.

China Orienwise has still not filed its June 30, 2008, financial
statements as required in the bond indenture.  The 30-day grace
period will end by the end of October 2008.  A failure to do so by
the end of the grace period would result in an event of default.

"The emergence of the above series of events at China Orienwise
signifies that there is a significant disruption in its operations
because of the investigation, as confidence from outside parties
has faltered.  Further, its business franchise has been severely
damaged in a very short period of time," says Ms. Yim.

"There is also a high degree of uncertainty regarding the
magnitude of the impact on the company's financial position.
Therefore, if the company is still unable to file its financial
statement by the end of the 30-day grace period, Moody's is
concerned about the company's ability to repurchase its bond with
its current financial and liquidity profile," adds Ms. Yim.

Moody's will keep the ratings on review for possible downgrade.
Moody's review will focus on the developments and potential
outcome of the above events on the company's management team,
business franchise, financial position and liquidity profile.
Moody's will also continue to monitor whether the company is able
to file its financial statements by the end of October and whether
it can make its next interest payment due on November 29, 2008.

Moody's last rating action with respect to China Orienwise
occurred on September 26, 2008, when it downgraded the corporate
family and senior unsecured bond ratings from Ba3 to B3.

China Orienwise Limited, headquartered in Shenzhen, is 100% owned
by its parent, Credit Orienwise Group Limited and is one of the
largest private guarantee companies in China.  As of December
2007, it had total assets of RMB4.1 billion (US$586 million).


CITIC PACIFIC: Moody's Downgrades Corporate Family Ratings to Ba2
-----------------------------------------------------------------
Moody's Investors Service has downgraded the Ba1 corporate family
rating of CITIC Pacific Ltd and the Ba1 rating of CITIC Pacific
Finance (2001) Ltd's US$450m bonds to Ba2.  The ratings continue
to be on review for possible downgrade.

"The rating action follows CITIC Pacific's announcement that it
has incurred sizeable realized and marked-to-market losses
totaling HKD15.5billion from leveraged foreign exchange contracts.
This will result in a material increase in leverage and weaken the
company's liquidity position," says Elizabeth Allen, a Moody's
VP/Senior Credit Officer.

"CITIC Pacific still has material outstanding exposure under these
contracts and it may be required to pay further material sums in
US dollars in return for Australian dollars and/or Euros on a
monthly basis.  The amount and timing of such payments will vary
depending on exchange rate movements.  However, the contracts are
deeply out of money as of today," adds Ms. Allen, also Moody's
lead analyst for the company.

The rating downgrade also reflects Moody's concern over the
company's internal control system.  These contracts are reportedly
unauthorized transactions and management only became aware of the
true exposure in early September.  The company had thought that
these contracts were for the hedging of foreign exchange exposure
of its Australian iron ore mining operation.

Furthermore, these losses and cash flow requirements come at a
time when CITIC Pacific is aggressively expanding its iron ore
mining and Chinese property interests -- both sectors which have
weakened lately.

On the other hand, Moody's draws some comfort from the support of
CITIC Pacific's shareholder, CITIC Group (Baa1), which has
reportedly agreed to arrange a US$1.5bn loan and which is owned by
the Chinese State Council.  In addition, as of September 2008,
CITIC Pacific had cash of about HK$3 billion and committed
facilities of about HK$6 billion at the holding company level.
Meanwhile, CITIC Group had cash of HK$12 billion and committed
facilities of about HK$16 billion.

Moody's rating action is also based on the understanding from
CITIC Pacific that the majority of its bankers have agreed to
maintain their credit facilities at this point.  These agreements
-- together with cash on hand - alleviate the immediate liquidity
challenges facing the company.  However, its overall liquidity
position as well as the impact of these transactions on its loan
financial covenants remains a concern.

In its review, Moody's will focus on evaluating CITIC Pacific's:

   a) total cost of exiting the existing leveraged foreign
      exchange contracts and the likelihood of further losses;
   b) liquidity position and funding arrangements given the
      US$1.5 billion loan is not yet in place;
   c) policy to restore its financial strength;
   d) compliance with terms and conditions of existing
      borrowings; and
   e) internal control system.

CITIC Pacific Ltd, listed in Hong Kong, is a conglomerate 29%
owned by CITIC Group.  It was one of the first Chinese companies
to list and invest outside of China.  It is engaged in a range of
businesses in China and Hong Kong, including special steel
manufacturing, property development and investment, iron ore
mining, power generation, aviation, infrastructure, communications
and distribution.


XINHUA FINANCE: Unit to Use Extra Fund for Sports & TV Business
---------------------------------------------------------------
XFMedia, a unit of Xinhua Finance Limited, has entered into a
secured convertible loan facility for up to US$80 million with
affiliates of Patriarch Partners LLC, currently the second largest
shareholder of XFMedia.

Fredy Bush, CEO and Chairman of XFMedia, said the funds will be
used to finance XFMedia's expansion in its broadcast business,
with a focus on sports.  The money will be drawn down only as
needed, and will be used to pay for the already identified
acquisitions as they are brought in.

"We are very fortunate to be able to secure a facility for up to
US$80 million from our long-term seed investor Patriarch.  This
will allow us to continue pursuing our vision and taking advantage
of the opportunities we are seeing in China," said Ms. Bush.

"The broadcast area in China, and particularly sports, is a high
margin business with significant growth potential.  We are in a
unique position to take advantage of that," Ms. Bush added.  "We
are delighted that Patriarch shares our vision and provides its
continued support.  The increased investment as well as its
higher-than-market conversion price is a vote of confidence in
both the fundamentals and future prospects of our company."

Lynn Tilton, CEO of Patriarch said, "As a major shareholder of
XFMedia, we are impressed with the fundamentals of the company and
the consistent growth in earnings since last year's initial public
offering.  We believe the acquisitions and opportunities that
management has identified will foster continued growth.  We are
especially excited about the new sports based strategy that we
believe creates great synergistic potential for the entire
platform and which we hope will be inelastic to the current
economic turmoil."

The facility is for a term of four years, and is secured by a
pledge of certain television assets of XFMedia.  Amounts
outstanding are convertible into XFMedia shares after one year at
a conversion price of US$2.24 per American Depository Share, which
represents a 100% premium to Monday's closing price of US$1.21 per
ADS.  The conversion price will be increased to US$2.74 per ADS
after the second year, and to US$3.24 per ADS after the third year
that the facility is outstanding.

                    About Xinhua Finance Media

Xinhua Finance Media, a unit of Xinhua Finance Limited, is a
leading media group in China with nationwide access to the
upwardly mobile demographic.  Through its synergistic business
groups, Broadcast, Print and Advertising, XFMedia offers a total
solution empowering clients at every stage of the media process
and connecting them with their target audience.  Its unique
platform covers a wide range of media.

                   About Xinhua Finance Limited

Xinhua Finance Limited – http://www.xinhuafinance.com/-- is
China's premier financial information and media service provider
and is listed on the Mothers Board of the Tokyo Stock Exchange.
Xinhua Finance's proprietary content platform, comprising
Indices, Ratings, Financial News, and Investor Relations, serves
financial institutions, corporations and re-distributors
worldwide.  Through its subsidiary Xinhua Finance Media Limited,
XFL leverages its content across multiple distribution channels
in China including television, radio, newspaper, magazine and
outdoor media.  Founded in November 1999, XFL is headquartered
in Shanghai, with offices and news bureaus spanning 12 countries
worldwide.

                          *     *     *

Xinhua Finance Limited continues to carry Moody's "B2" LT Family
and Senior Unsecured Debt Ratings.  The company also carries
S&P's "B" LT Credit Rating.


* CHINA: Raise Export Textile & Toys Tax to Help Struggling Firms
-----------------------------------------------------------------
China has raised export tax rebates on toys and textiles, a way to
counter slumping sales that are forcing many export factories to
be out of business, International Herald Tribune News reports.

The report relates, citing  Xinhua News, that the export tax
rebate on clothing and textiles will be raised to 14% from the
current 13%, while tax rebate on toys will also be raised to 14%,
from the current 11%.  The changes take effect November 1.

According to the report, the hike was part of the government's
move to help manufacturers weather to survive the global credit
crisis.  Thousands of factories have already closed down, leaving
workers without jobs or paychecks, especially in thin-margin,
labor-intensive industries like toys, clothing and small
appliances, the same report says.

The Tribune notes that the Toy Industry Association toy makers
have been especially hard-hit, with costs rising 60% since 2006
while contract prices rose only by an average of 10%.

Meanwhile, the report recounts that in July, the government raised
rebates of value-added taxes on exports of textiles and clothing
by 2 percentage points to 13%.



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

AMERICAN INTERNATIONAL: To Sell Stake in Asian Life-Insurance Biz
-----------------------------------------------------------------
American International Group, Inc., will auction a major stake in
its American International Assurance Co. unit, Rick Carew at The
Wall Street Journal reports, citing people familiar with the
matter.

According to WSJ, the Asian life-insurance business is valued at
more than US$20 billion.  Sources said that Goldman Sachs Group,
Inc., and Citigroup, Inc., will run the sale, the report states.
The sale process is "ramping up" on its planned asset sales
generally, the report says, citing an AIG spokesperson.

Citing bankers, WSJ states that the price for the stake in
American International Assurance could be big, requiring the
breakup of the business into smaller pieces to get a deal done.
The report says that according to Cazenove Group's calculations,
the combined value of AIG's Asian life-insurance assets outside
Japan is around US$22.5 billion.

WSJ relates that AIG's CEO Edward Liddy wants to attract buyers
for a minority strategic stake and keep a majority stake in the
business.

                 About American International

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.

                       *     *     *

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.


BACCARAT PACIFIC: Placed Under Voluntary Liquidation
----------------------------------------------------
At an extraordinary general meeting held on October 10, 2008, the
members of Baccarat Pacific Limited resolved to voluntarily wind
up the company's operations.

Creditors are required to file their proofs of debt by November 4,
2008, to be included in the company's dividend distribution.

The company's liquidators are:

          Cheng Chung Por Gordon
          Ngan Lin Chun Esther
          1902 MassMutual Tower
          38 Gloucester Road
          Wanchai, Hong Kong


CAPITAL W : Requires Creditors to File Claims by November 20
------------------------------------------------------------
The creditors of Capital W Fund Investments Limited are required
to file their proofs of debt by November 20, 2008, to be included
in the company's dividend distribution.

The company commenced liquidation proceedings on October 6, 2008.

The company's liquidator is:

          Chi Wai Tam
          Ocean Centre, 16th Floor
          Harbour City, Canton Road
          Kowloon, Hong Kong


CHRYSLER LLC: Bankruptcy to Resolve Labor Woes, Economist Says
--------------------------------------------------------------
Tim Higgins and Katie Merx at Free Press (Detroit) report that
Peter Morici, a University of Maryland business professor and
former chief economist at the U.S. International Trade Commission,
said that Chrysler LLC should be allowed to file for bankruptcy.

"The simple fact is that the best solution for Chrysler is Chapter
11 to remove the burdens of the UAW [United Auto Workers] contract
and scale down the company to something one half to two thirds its
current size.  That would serve GM's [General Motors Corp.]
interests, too -- both Ford and GM would benefit from some
capacity and cars going off the market," Free Press quoted Mr.
Morici as saying.

According to court filings by the UAW, a financial analysis made
before the economic crisis indicates an up to 50% chance of a
Chrysler insolvency by 2013.

According to Free Press, Mr. Morici said that if GM acquired
Chrysler's Jeep brand and minivan program, "GM would still have to
pay heavy severance bonuses to workers it laid off streamlining
their operations, similar payments would be required to shutter
much of Chrysler's unattractive truck and car operations, and GM
would still have to fund the union health care fund for retired
Chrysler employees."

     Merger May Help in Contract Renegotiation With Union

A merger between GM and Chrysler would be a high-risk deal, but
may give the new company "high leverage" to renegotiate with the
United Auto Workers, Free Press reports, citing J.P. Morgan
analyst Himanshu Patel.

Free Press quoted Mr. Patel as saying, "GM desperately needs a
reason to renegotiate many parts of its 2007 UAW contract."  GM
must renegotiate the "VEBA funding level" and wages for core
workers, the report states, citing Mr. Patel.

Free Press relates that due to the precarious financial positions
of Ford Motor Corp., GM, and Chrysler, UAW had agreed to a deal
that allows the comanies to pay new hires less money than core
workers and to shift billions of dollars of retiree health care
spending to VEBA, an independent trust fund.  According to the
report, the union had agreed to the deal, saying that it had to
make a sacrifice to help the industry better compete against
foreign automakers that have lower costs from their U.S.
workforces.  The report says that the VEBA was a way to guarantee
retiree health care benefits even if the companies go broke.

Jim Millstein, managing director and co-head of Lazard Freres &
Co.'s restructuring group, said in court documents, "Chrysler's
long-term ability to meet its medical obligations to UAW retirees
has deteriorated."

According to Free Press, UAW President Ron Gettelfinger has said
that he wouldn't agree to further delays in the VEBA payments.
Free Press states that the union already agreed to let GM delay
US$1.7 billion in payments to the VEBA that had been scheduled for
2008 and 2009.  Mr. Gettelfinger said he is against a Chrysler-GM
merger that results in more job losses, the report says.

A Wall Street analyst said that GM could "win enough goodwill to
extract further savings from the UAW," if the company is seen as
saving Chrysler from bankruptcy and preserving jobs and benefits,
Free Press states.

Free Press relates that Harley Shaiken, a union expert from
University of California-Berkeley, said, "After closing X-number
of plants, eliminating say 30,000 to 50,000 jobs, my sense is that
the UAW might not be in the best of moods to give further
concessions."

Free Press quoted Mr. Patel as saying, "By saving Chrysler from a
liquidity event, GM may also be able to get itself much-needed
secured bank financing from the same banks that are currently
holding Chrysler debt."

                   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.

GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in
Miramar, Florida.

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 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.


CITIC GROUP: S&P Puts BB+ Counterparty Credit Rating on WatchNeg
----------------------------------------------------------------
Standard & Poor's Ratings Services has placed on CreditWatch with
negative implications its 'BBB-' long-term foreign currency
counterparty credit ratings and 'A-3' short-term foreign currency
ratings on CITIC Group and CITIC International Financial Holdings
Ltd. (CIFH; unsolicited rating).  At the same time, S&P placed on
CreditWatch negative its 'BB+' long-term counterparty credit
rating on CITIC Resources Ltd. (CRH).  S&P also placed on
CreditWatch negative its ratings on the companies' relevant debts.

The CreditWatch placements follow CITIC Pacific Ltd.'s (BB/Watch
Neg/--) disclosure that it has made a loss of about HK$15.5
billion in some leveraged foreign exchange forward contracts and
that CITIC Group has agreed to arrange a standby loan facility of
US$1.5 billion.  With CITIC Group owning a 29% equity interest,
CITIC Pacific is regarded as a significantly important affiliated
company to the Chinese financial conglomerate.

"The rating action on CITIC Group reflects the fact that the
disclosed loss from CITIC Pacific's derivative transactions and
the potential financial supports needed from CITIC Group are
likely to have a significant negative effect on CITIC Group's
financial leverage and profitability," said credit analyst
Lawrence Lu.

The rating actions on CIFH and CRL follow the rating action on
CITIC Group –- the ratings on the two subsidiaries benefit from
parent support associated with their respective group status
within CITIC Group.  S&P regards CIFH as a core banking subsidiary
of CITIC Group in Hong Kong and CRL as a strategically important
subsidiary of CITIC Group.

S&P will resolve the CreditWatch placements in due course.  S&P
will clarify the nature and terms of the standby loan facility and
discuss with CITIC Group management its commitment to support
CITIC Pacific.


CITIC PACIFIC: S&P Cuts Credit Rating to BB Over HK$15.5BB Losses
-----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its corporate
credit rating on CITIC Pacific Ltd. to 'BB' from 'BB+', and placed
it on CreditWatch with negative implications.  This follows CITIC
Pacific's announcement that it has incurred HK$15.5 billion losses
from various leveraged foreign exchange contracts.

At the same time, S&P lowered its issue rating to 'BB' from 'BB+'
on the senior unsecured notes issued by CITIC Pacific Finance
(2001) Ltd. and guaranteed by CITIC Pacific.

"The rating downgrades reflect the substantially weakened
financial profile of the company, the potential substantial
reduction in the company's financial flexibility, the lack of
proper internal controls over complex transactions, and below-
average disclosures," said credit analyst Lawrence Lu.

S&P also factored into its rating a certain degree of support from
CITIC Group (BBB-/Watch Neg/A-3; foreign currency) -- which is a
substantial shareholder with 29.33% interest -- because CITIC
Pacific is considered as a strategically important affiliate to
the CITIC Group

The rating agency expects to resolve the CreditWatch placement
within three months.  S&P will discuss with the company its plans
to manage the remaining foreign exchange (forex) contracts, its
liquidity position, and its risk management.  In addition, S&P
will also reassess the support from CITIC Group, CITIC Pacific's
future growth strategy, and its plan to restore its financial
flexibility.


FORD MOTOR: Tracinda's Stake Sale Casts Doubt on Firm's Health
--------------------------------------------------------------
Tracinda Corp. has sold 7.3 million shares of the common stock of
Ford Motor Co. in the open market for an average price of US$2.43
per share, before commissions.

Tracinda said that it will further reduce its 6.43% holdings of
Ford Motor common stock, including the possible sale of all of its
remaining 133,500,000 shares -- approximately 6.09% of the
outstanding shares -- depending upon market conditions and
available sales prices, and that it has contacted an investment
banking firm regarding the possible sale of the shares.

Matthew Dolan and Tamara Audi at The Wall Street Journal report
that the sale has raised new concerns about the health of Ford
Motor as well as the casino and hotel holdings of billionaire
investor Kirk Kerkorian, Tracinda's owner.

WSJ relates that Mr. Kerkorian is looking at losing
US$640 million of his original US$980 million investment.  Citing
a person briefed on Mr. Kerkorian's decision, WSJ states that Mr.
Kerkorian concluded that there was little chance of making his
investment pay off due to the auto industry's bleak outlook, and
he was concerned that Ford Motor no longer was giving a target
date for returning to profitability.

Tracinda said in a statement that it will shift its investments to
casinos, hotels, oil, and gas.

WSJ states that Mr. Kerkorian used a US$600 million credit line to
help finance the Ford stake.  Due to the drop in the prices of
Ford Motor shares, Mr. Kerkorian had to pledge 50 million more
shares of MGM Mirage -- which he controls -- as collateral. Mr.
Kerkorian said in a statement that he has put up 100 million of
his 149 million MGM Mirage shares to back the credit facility.
WSJ relates that Ford Motor shares have lost 65% since Mr.
Kerkorian began purchasing them, closing at on Tuesday US$2.17 on
New York Stock Exchange trading.

A Ford Motor spokesperson said that Tracinda is still "confident
in and focused on our plan to transform Ford into a lean global
enterprise delivering profitable growth," WSJ reports.

                   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-'.


FOU WAH: Members to Hear Wind-Up Report on November 17
------------------------------------------------------
The members of Fou Wah Weaving Mill, Limited will meet on Nov. 17,
2008, at 10:00 a.m., to hear the liquidator's report on the
company's wind-up proceedings and property disposal.

The meeting will be held at the 34th Floor of The Lee Gardens, 33
Hysan Avenue, in Causeway Bay, Hong Kong.


FRANCO-ASIATIC: Members' Meeting Slated for November 18
-------------------------------------------------------
A final meeting will be held for the members of Franco-Asiatic
Company Limited on November 18, 2008, at 11:00 a.m., at Rooms
2005-7 of Bank Centre, 636 Nathan Road, in Kowloon, Hong Kong.

At the meeting, Lee Sik Benjamin and Chan Cheung Wah Linus, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


GENERAL MOTORS: Merger Might Help Ease Union Talks, Analyst Says
----------------------------------------------------------------
A merger between General Motors Corp. and Chrysler LLC would be a
high-risk deal, but may give the new company "high leverage" to
renegotiate with the United Auto Workers, Tim Higgins and Katie
Merx at Free Press (Detroit) report, citing J.P. Morgan analyst
Himanshu Patel.

Free Press quoted Mr. Patel as saying, "GM desperately needs a
reason to renegotiate many parts of its 2007 UAW contract."  GM
must renegotiate the "VEBA funding level" and wages for core
workers, the report states, citing Mr. Patel.

Free Press relates that due to the precarious financial positions
of Ford Motor Corp., GM, and Chrysler, UAW had agreed to a deal
that allows the comanies to pay new hires less money than core
workers and to shift billions of dollars of retiree health care
spending to VEBA, an independent trust fund.  According to the
report, the union had agreed to the deal, saying that it had to
make a sacrifice to help the industry better compete against
foreign automakers that have lower costs from their U.S.
workforces.  The report says that the VEBA was a way to guarantee
retiree health care benefits even if the companies go broke.

Jim Millstein, managing director and co-head of Lazard Freres &
Co.'s restructuring group, said in court documents, "Chrysler's
long-term ability to meet its medical obligations to UAW retirees
has deteriorated."

According to Free Press, UAW President Ron Gettelfinger has said
that he wouldn't agree to further delays in the VEBA payments.
Free Press states that the union already agreed to let GM delay
US$1.7 billion in payments to the VEBA that had been scheduled for
2008 and 2009.  Mr. Gettelfinger said he is against a Chrysler-GM
merger that results in more job losses, the report says.

A Wall Street analyst said that GM could "win enough goodwill to
extract further savings from the UAW," if the company is seen as
saving Chrysler from bankruptcy and preserving jobs and benefits,
Free Press states.

Free Press relates that Harley Shaiken, a union expert from
University of California-Berkeley, said, "After closing X-number
of plants, eliminating say 30,000 to 50,000 jobs, my sense is that
the UAW might not be in the best of moods to give further
concessions."

Free Press quoted Mr. Patel as saying, "By saving Chrysler from a
liquidity event, GM may also be able to get itself much-needed
secured bank financing from the same banks that are currently
holding Chrysler debt."

     Bankruptcy May Resolve Contract Problem With Union

Free Press relates that Peter Morici -- a University of Maryland
business professor and former chief economist at the U.S.
International Trade Commission -- said that Chrysler should be
allowed to file for bankruptcy.  According to court filings by the
UAW, a financial analysis made before the economic crisis
indicates an up to 50% chance of a Chrysler insolvency by 2013.

"The simple fact is that the best solution for Chrysler is Chapter
11 to remove the burdens of the UAW contract and scale down the
company to something one half to two thirds its current size.
That would serve GM's interests, too -- both Ford and GM would
benefit from some capacity and cars going off the market," Free
Press quoted Mr. Morici as saying.

According to Free Press, Mr. Morici said that if GM acquired
Chrysler's Jeep brand and minivan program, "GM would still have to
pay heavy severance bonuses to workers it laid off streamlining
their operations, similar payments would be required to shutter
much of Chrysler's unattractive truck and car operations, and GM
would still have to fund the union health care fund for retired
Chrysler employees."

                     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.

GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in
Miramar, Florida.

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.


GREEN LOVE: Placed Under Voluntary Liquidation
----------------------------------------------
The members of Green Love Foundation Limited met on October 9,
2008, and resolved to voluntarily wind up the company's
operations.

The company's liquidator is:

          Cheung Chui Ping Chaplin
          Times Media Centre, 9th Floor
          133 Wanchai Road
          Wanchai, Hong Kong


HONG KONG NEW CONCEPT: Placed Under Voluntary Liquidation
---------------------------------------------------------
At an extraordinary general meeting held on October 8, 2008, the
members of Hong Kong New Concept Company Limited agreed to
voluntarily liquidate the company's business.

The company's liquidator is:

          Lau Siu Hung
          Wing Yee Commercial Building, 2nd Floor
          5 Wing Kut Street
          Central, Hong Kong


ITUNDE LIMITED: Commences Liquidation Proceedings
-------------------------------------------------
At an extraordinary general meeting held on October 8, 2008, the
members of Itunde Limited agreed to voluntarily wind up the
company's operations.

The company's liquidator is:

          Eliza Suk Ying Wu
          Henley Building, 8th Floor
          5 Queen's Road
          Central, Hong Kong


MINJEW TRADING: Final General Meeting Slated for November 17
------------------------------------------------------------
The members of Minjew Trading Company Limited will hold their
final general meeting on November 17, 2008, at 10:00 a.m., to hear
the liquidator's report on the company's wind-up proceedings and
property disposal.

The meeting will be held at the offices of Baker Tilly Hong Kong,
Room 1203-1213, 12th Floor of China Merchants Tower, Shun Tak
Centre, in 168-200 Connaught Road Central, Hong Kong.


SEARCH ASIA: Members' Final Meeting Set for November 21
-------------------------------------------------------
The members of Search Asia Pacific Limited will meet on Nov. 21,
2008, at 10:00 a.m., to receive the liquidator's report on the
company's wind-up proceedings and property disposal.

The meeting will be held at Unit 1601, 16th Floor of Malaysia
Building, 50 Gloucester Road, in Wanchai, Hong Kong.


SUEZ ASIA: Commences Liquidation Proceedings
--------------------------------------------
The shareholders of Suez Asia Holdings (Hong Kong) Limited met on
October 8, 2008, and resolved to voluntarily wind up the company's
operations.

Creditors are required to file their proofs of debt by November 7,
2008, to be included in the company's dividend distribution.

The company's liquidators are:

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


W EQUITY: Creditors' Proofs of Debt Due on November 20
------------------------------------------------------
The creditors of W Equity Limited are required to file their
proofs of debt by November 20, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on October 6, 2008.

The company's liquidator is:

          Chi Wai Tam
          Ocean Centre, 16th Floor
          Harbour City, Canton Road
          Kowloon, Hong Kong


W INVESTMENTS: Requires Creditors to File Claims by November 20
---------------------------------------------------------------
The creditors of W Investments Limited are required to file their
proofs of debt by November 20, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on October 6, 2008.

The company's liquidator is:

          Chi Wai Tam
          Ocean Centre, 16th Floor
          Harbour City, Canton Road
          Kowloon, Hong Kong



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

JET AIRWAYS: AAI Gives Company Until October 24 to Clear its Dues
-----------------------------------------------------------------
The Airports Authority of India (AAI) has asked Jet Airways
(India) Ltd to clear its dues by tomorrow, October 24, The Times
of India reports citing an AAI senior official.

The Times relates that the AAI has also issued notices to some
defaulting airlines to either clear their dues or shift to cash
and carry system.

The aviation ministry, the report says, is likely to ask the AAI
to give some time to airlines to clear their dues.

Meanwhile, the report notes, the ministry is also going to begin a
one-on-one meeting with all airlines to find exact losses; number
of flights reduced and their expectation from the government.

                        Unpaid Fuel Bills

As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 21, 2008, Jet Airways (India) Ltd has outstanding bills to
state-owned oil companies.  According to The Wall Street Journal,
Jet Airways is behind on US$53.2 million in fuel payments.

                   1,900 Employees Reinstated

On Oct. 20, 2008, the Troubled Company Reporter-Asia Pacific
reported Jet Airways Chairman Naresh Goyal reinstated all 1,900
employees who were handed pink slips "to ensure the jobs of
the remaining 11,100" at the airline.  Mr. Goyal disclosed that
although it was his mandate to cut costs, his conscience did not
allow him to do so based solely on economic conditions in the
industry, The Times of India related.  He noted it was his
personal decision and not due to any political pressure.

Jet Airways CEO Wolfgang Prock-Schauer said that the aviation
industry in India, a US$6-billion turnover industry, is expected
to lose US$2 billion in 2008 through 2009 due to record high fuel
prices, the financial market turmoil and downturn in traffic, the
Hindu noted.

Jet Airways earlier said it will halt its Mumbai-Shanghai-San
Francisco route effective Jan. 13, 2009.

                         Kingfisher Deal

The TCR-AP reported that Jet Airways has formed an alliance with
Kingfisher Airlines to reduce costs as the downturn in the world
economy severely impacted the world aviation industry.

For the year ended March 31, 2008, Jet Airways (India) Ltd
incurred a net loss of Rs.2,530.60 million on net sales of
Rs.88,111.00 million compared to a net profit of Rs.279.4 million
on net sales of Rs.70,577.8 million in the year ended March 31,
2007.

The agreement, Jet Airways said, will not involve any mutual
equity investments between the two companies.

According to airline, the scope of the alliance will include these
areas:

    -- Code-shares on both domestic and international flights
       subject to DGCA approval.
    -- Interline/Special Prorate agreements to leverage the
       joint network deploying 189 aircraft offering 927
       domestic and 82 International flights daily.
    -- Joint fuel management to reduce fuel expenses.
    -- Common ground handling of the highest quality.
    -- Cross selling of flight inventories using the common
       Global Distribution system platform.
    -- Joint Network rationalization and synergies.
    -- Cross utilization of crew on similar aircraft types
       and commonality of training as also of the technical
       resources, subject to DGCA approval.
    -- Reciprocity in Jet Privilege and King Club
       frequent flier programs.

                About Jet Airways (India) Ltd

Jet Airways (India) Ltd currently operates a fleet of 84 aircraft,
which includes 10 Boeing 777-300 ER aircraft, 11 Airbus A330-200
aircraft, 52 classic and next generation Boeing 737-
400/700/800/900 aircraft and 11 modern ATR 72-500 turboprop
aircraft.  With an average fleet age of 4.34 years, the airline
has one of the youngest aircraft fleet in the world.  Jet Airways
operates over 395 flights daily.

Flights to 64 destinations span the length and breadth of India
and beyond, including New York (both JFK and Newark), San
Francisco, Toronto, Brussels, London (Heathrow), Hong Kong,
Singapore, Shanghai, Kuala Lumpur, Colombo, Bangkok, Kathmandu,
Dhaka, Kuwait, Bahrain, Muscat, Doha, Abu Dhabi and Dubai.  The
airline plans to extend its international operations to other
cities in North America, Europe, Africa and Asia in phases with
the introduction of additional wide-body aircraft into its fleet.


KINGFISHER AIRLINES: Has Until October 24 to Clear its Dues
-----------------------------------------------------------
The Airports Authority of India (AAI) has asked Kingfisher
Airlines to clear its dues by October 24, The Times of India
reports citing an AAI senior official.

The Times relates that the AAI has also issued notices to some
defaulting airlines to either clear their dues or shift to cash
and carry system.

The aviation ministry, the report says, is likely to ask the AAI
to give some time to airlines to clear their dues.

According to the report, the ministry is also going to begin a
one-on-one meeting with all airlines to find exact losses; number
of flights reduced and their expectation from the government.

Separately, the Troubled Company Reporter-Asia Pacific reported
on Oct. 21, 2008, that Murli Deora, India's petroleum minister,
said Kingfisher should clear its outstanding bills to state-
owned oil companies.  According to The Wall Street Journal,
Kingfisher is behind on US$12.4 million in fuel payments.

Citing local media, WSJ said India's oil ministry has asked the
country's top three airlines to pay a total of at least US$185
million in outstanding fuel charges as soon as possible.  A
portion of the overdue charges is in default as it wasn't paid
within the acceptable grace period, Petroleum Secretary R.S.
Pandey told reporters Thursday, WSJ related.

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



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

BANK MANDIRI: Considers Acquisitions in 2009
--------------------------------------------
Citing Bank Mandiri's President Director Agus Martowardojo, Antara
News reports that the company is still considering a non-organic
growth by acquisition in 2009.

"A non-organic growth will complete an acquisition of Bank Sinar
Harapan Bali and Tunas Finance.  In 2009, we would still study the
possibility of growing in a non-organic manner," Mr. Martowardojo
was quoted by Antara as saying.

According to the report, Bank Mandiri has already completed two
acquisitions -- the first was taking over PT Bank Sinar Harapan
Bali at IDR80 billion and taking over 51% stake in PT Tunas
Financindo Sarana.

Currently, the company is finalizing the opening of more branch
offices for remittances in Dubai and Malaysia, Mr. Martowardojo
was cited by Antara as saying.

The company withdrew its proposal to acquire the majority of
shares in Indonesische Overzeese Bank N.V. (Indover) as the
Netherlands court froze the assets of Indover due to its dwindling
performance and increasing liability, a report by the Troubled
Company Reporter–Asia Pacific on Oct. 10, 2008, stated citing The
Jakarta Post.

                        About Bank Mandiri

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

                        *     *     *

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

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

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


INDOSAT: Lowers Revenue Projection; To Focus on Internet Business
-----------------------------------------------------------------
PT Indosat has revised downward this year's revenue target as the
average revenue per user (ARPU) in its core cell phone business
declined by 25% from last year, Indosat President Director Johnny
Sjam told Jakarta Post in an interview.  Thus, the company is now
focusing more on the development of its Internet business, which
recorded a 35% growth in the first semester of this year.

The Post noted that internet user services make up around 15% of
the firm's total revenue while the cell phone business contributes
75%.

Mr. Sjam told The Post that in line with Indosat's expansion to
internet services, the company will build a new satellite in 2009
to replace the old one and has appointed France-based satellite
operator Thales Alenia Space to carry out the investment amounting
to US$220 million.

Currently, the company is preparing all the infrastructure needed
for future development in its business services, especially in the
Internet sector, setting aside US$1.4 billion in capital
expenditure in the hopes of expanding its network and increasing
their network capacity, The Post added.

                          About Indosat

PT Indosat Tbk -- http://www.indosat.com/-- is a
telecommunication and information service provider in Indonesia
that provides cellular services (Mentari, Matrix and IM3), fixed
telecommunication services or fixed voice (IDD 001, IDD 008 and
FlatCall 01016, fixed wireless service StarOne and I-Phone).
Indosat also provides Multimedia, Internet & Data Communication
Services (MIDI) through its subsidiary company, Indosat
Mega Media (IM2) and Lintasarta.  Indosat also provides 3.5 G
with HSDPA technology.  Indosat's shares are listed in the
Indonesia Stock Exchange (IDX:ISAT) and its American Depository
Shares are listed in the New York Stock Exchange (NYSE:IIT).

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
September 16, 2008, Fitch Ratings has affirmed PT Indosat's Long-
term foreign and local currency Issuer Default Ratings at 'BB-'.
The Outlook on the ratings is Stable.  At the same time, Fitch has
affirmed the 'BB-' ratings on Indosat's senior unsecured notes
program.

The TCR-AP also reported on October 8, 2008, that Moody's
Investors Service has confirmed the Ba1 local currency corporate
family rating of PT Indosat, and the Ba2 foreign currency senior
unsecured bond rating of Indosat Finance Company B.V. and Indosat
International Finance Company B.V.  The outlook on all ratings is
stable.


INDOSAT: Posts IDR1.47 Trillion Net Profit in January-September
---------------------------------------------------------------
For the January-September 2008 period, PT Indosat Tbk posted
IDR1.47 trillion net profit, up by 1.9%, compared with  IDR1.445
trillion net profit recorded in the same period last year, Antara
News reports.

Operating income, which consists of: a) IDR1.026 trillion from
cellular phone services; b) IDR2.12 billion from fixed data income
and c) IDR1.301 billion from fixed telephone services, grew by
14.9% to IDR1.36 trillion from IDR1.188 trillion recorded in
January-September 2007, Antara notes.

Compared to the corresponding period last year, the income from
cellular phone services rose 11.8%, fixed data income
35.3% and fixed telephone services 11.7%, the report says.

The company's statement also revealed that the company's earning
before interest, taxes, depreciation and amortization (EBTIDA) in
the first nine months of 2008 rose 7.4% to IDR6.718 billion from
IDR6.258 billion in the same period last year, Antara adds.

                          About Indosat

PT Indosat Tbk -- http://www.indosat.com/-- is a
telecommunication and information service provider in Indonesia
that provides cellular services (Mentari, Matrix and IM3), fixed
telecommunication services or fixed voice (IDD 001, IDD 008 and
FlatCall 01016, fixed wireless service StarOne and I-Phone).
Indosat also provides Multimedia, Internet & Data Communication
Services (MIDI) through its subsidiary company, Indosat
Mega Media (IM2) and Lintasarta.  Indosat also provides 3.5 G
with HSDPA technology.  Indosat's shares are listed in the
Indonesia Stock Exchange (IDX:ISAT) and its American Depository
Shares are listed in the New York Stock Exchange (NYSE:IIT).

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
Sept. 16, 2008, Fitch Ratings has affirmed PT Indosat's Long-term
foreign and local currency Issuer Default Ratings at 'BB-'.  The
Outlook on the ratings is Stable.  At the same time, Fitch has
affirmed the 'BB-' ratings on Indosat's senior unsecured notes
program.

The TCR-AP also reported on Oct. 8, 2008, that Moody's Investors
Service has confirmed the Ba1 local currency corporate family
rating of PT Indosat, and the Ba2 foreign currency senior
unsecured bond rating of Indosat Finance Company B.V. and Indosat
International Finance Company B.V.  The outlook on all ratings is
stable.


* INDONESIA: 7 Tin Smelters Halt Production Due to Low Tin Prices
-----------------------------------------------------------------
The consortium of seven smelters in Indonesia's main tin producing
region of Bangka Belitung province on Sumatra island has stopped
production because of falling tin prices, Antara News reports
citing Bangka Belitung Timah Sejahtera consortium's Chairman
Patris Lumumba.

According to Antara, many of the miners have been idle since early
October as a result of falling tin prices and rising production
costs (due in part to higher fuel costs).

Citing Mr. Lumumba, Antara said that the halt will likely remain
for the rest of the year, or until tin prices recover to 18,000
dollars a metric ton.  Tin fell to 12,900 dollars a ton Monday,
the report relates.

Indonesia's largest tin companies -- PT Timah and PT Koba Tin --
however, have not cut production despite falling prices, Antara
notes.



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

JHF SERIES: S&P Says JHF Postpones Fixed-Rate Notes Issuance
------------------------------------------------------------
Standard & Poor's Ratings Services has confirmed that Japan
Finance Housing Agency (JHF) has decided to postpone the issuance
of JHF Series S-11 fixed-rate residential mortgage-secured pass-
through notes, scheduled for early November.  JHF made its own
announcement of this decision on Oct. 20.

S&P has released the likely overcollateralization level for the
JHF Series S-11 notes on Oct. 17, 2008, based on the original
schedule.  Following the revised schedule, S&P will conduct its
analysis based on updated information and release the likely
overcollateralization level again.



SAPPORO HOLDING: To Buy 49% of Azumino Shokuhin
------------------------------------------------
Sapporo Holdings Limited will acquire 49% of Marudai Food Co.'s
unit, Azumino Shokuhin Kobo, to pave way for an investment in the
yogurt, desserts and chilled drinks sector, Jiji Press reports.

Marudai and Sapporo, the report relates, will start joint
operations through Matsumoto-based Azumino Shokuhin as early as in
spring next year, allowing Sapporo to make its entry into the
dairy and chilled drink products markets.  Sapporo is hoping to
obtain know-how on chilled food distribution, the same report
says.

According to the report, the two companies will fix details of the
alliance, including the amount of Sapporo's investment, at a joint
committee that they will set up soon.

Through the partnership, Marudai aims to reinforce its dessert and
chilled drink business, which it launched in 1998, by utilizing
Sapporo's marketing expertise and fermentation technologies, the
report notes.

Azumino Shokuhin currently produces dessert and chilled drink
products at three Marudai plants, including one in Matsumoto.
Marudai is considering transferring the ownership of the plants to
Azumino Shokuhin, Jiji Press notes.

Sapporo President Takao Murakami said that the group intends to
actively pursue strategic partnerships and promote business
acquisitions, and spend a total of JPY45 billion on strategic
projects, including mergers and acquisitions, in 2008-2009, the
report adds.


                      About Sapporo Holdings

Sapporo Holdings Limited -- http://www.sapporoholdings.jp/--
formerly known as Sapporo Breweries, brews beer and operates
more than 200 beer halls and restaurants.  Sapporo is one of
Japan's oldest brewers, and is Japan's third largest brewing
company, with brews ranging from its flagship Black Label to the
pricier Yebisu.  Sapporo also makes the low-malt happoshu brew.
The company sells Guinness beer in Japan through its Sapporo
Guinness Company and owns a beverage company that makes canned
coffee, bottled water, and soft drinks.

                           *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
October 21, 2008, Fitch Ratings has affirmed Sapporo Holdings
Limited's Long-term foreign and local currency Issuer Default
ratings as well as the Senior Unsecured debt rating at 'BB' and
its Short-term foreign and local currency IDRs at 'B'.  The
Outlook remains Stable.


* S&P Publishes Watch Report on Japanese Fiber-Optic Industry
-------------------------------------------------------------
Standard & Poor's Ratings Services has released a Japanese-
language Performance Watch report on the Whole Business
Securitization Backed By Fiber-Optic Broadband Revenue that was
rated by S&P in June 2006.

The report forms part of S&P's surveillance of the transaction,
following the initial rating assignment as of June 20, 2006.  The
report features S&P's analysis of industry trends and the business
performance of UCOM Corp., including changes in its number of
Fiber-To-The-Home subscribers since the rating assignment, as well
as a comparison between current transaction performance and the
projected performance as of the initial rating assignment.  The
report also details S&P's views on the rating impact of these
factors.

Further expansion of the whole business securitization segment in
Japan will require a deeper understanding among market
participants of the characteristics and rating methodologies of
these transactions.  S&P believes continuous surveillance of
existing transactions, and the publication of these analytical
findings, is vital, particularly in the whole business
securitization segment.  This is because changes in the business
environment and capabilities of business operators can cause
fluctuations in business cash flows.  S&P will publish its views
on the performance, relevant industry trends, and rating prospects
of rated whole business securitization transactions on a regular
basis.



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

HYUNDAI MOTOR: Expects "Worst" Quarterly Earnings Report
--------------------------------------------------------
Hyundai Motor Company is expected to report its "worst quarterly
earnings" in 10 years this week as derivatives losses ballooned
and the global financial crisis cut into vehicle sales at home and
abroad, Yonhap News reports, citing Kiwoom Securities analyst Kim
Doo-hyun.

"Hyundai Motor will likely post its worst quarterly earnings for
the third-quarter of this year," the report cited Mr. Kim as
saying.  Mr. Kim expected Hyundai's third-quarter revenues to fall
9.9% from a year earlier to KRW6.3 trillion (US$4.79 billion),
while third-quarter operating profit will fall to KRW63.4 billion,
from KRW662.5 billion a quarter ago.

According to the report,  Mr. Kim said that in the three months
ending September 30, Hyundai's vehicle sales in South Korea, will
likely fall 19.9% and its exports may decline 16.3%.

Hyundai reported a net profit of KRW546.9 billion on sales of
KRW9.1 trillion in the second quarter 2008.

Hyundai said it will suspend production at its sole factory in the
U.S. for 11 days as its sales in the world's largest auto market
plunged amid sluggish demand, the report relates.

On October 6, 2008, the Troubled Company Reporter-Asia Pacific,
citing Yonhap News, reported that Hyundai Motor 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 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.

                     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.


STANDARD CHARTERED: No Rating Actions for Banks, Says Moody's
-------------------------------------------------------------
Moody's Investors Service commented on the proposed measures
announced by the Korean government on October 19, 2008, to
stabilize its financial markets.  Noteworthy for the Korean banks
are two of the measures, discussed in greater detail below,
designed to restore confidence in the banking system, as well as
place the banks on equal footing for overseas funding vis-a-vis
other major banking systems that have received government support.
Details of the plan are being finalized by the government.

In the rating agency's view, the measures will help ease pressure
for the domestic banks' foreign currency funding.  Since the
beginning of the year, Moody's had been concerned about the banks'
continued tight liquidity positions, particularly in foreign
currency, against the back-drop of worsening global liquidity
conditions.  Foreign currency funding represents about 12% of
funding for the Korean banks.

However, the adequacy of the US$130 billion package is difficult
to assess given the current state of the financial markets and the
uncertainty of how protracted the weakness becomes.

The rating agency is not changing bank ratings following the
government's announcement.  However, the government's actions
underpin Moody's assessment that systemic support in Korea is very
high.  Moreover, Moody's believes that the government will provide
further support to the banking system, if necessary, and assuming
its resources permit.  Therefore, credit ratings -- foreign
currency senior debt ranging from Aa3 to A2 and foreign currency
long-term/short-term deposit of A2/P-1 - incorporate strong
systemic support and are subject to movements in sovereign
ratings.

Meanwhile, the outlook for the bank financial strength rating
(BFSR) for six out of 14 rated banks remains negative.  The
weighted average BFSR for the sector is C-.

Apart from stresses stemming from the global credit crisis,
Moody's also sees signs of deterioration in the creditworthiness
of the banks due to the weaker domestic economy.  Persistent
negative trends include narrower net interest margins and weaker
asset quality.

Liquidity in the domestic system, although appearing to be
sufficient to meet refinancing demand, remains at substantially
higher cost, thereby negatively impacting profitability.  The 91-
day CD rate has been rising and is now 6.10%.  Moreover, the
outlook for economic growth in Korea continues to weaken.

Higher interest rates coupled with the slower economy will
contribute to an on-going contraction in system net interest
margin and a rise in non-performing loans.  The system net
interest margin has narrowed to 2.57% in 1H08 from 2.73% in 2007.
Meanwhile, the system non-performing loans ratio stood at a
relatively modest 0.71% as of June 2008 but is expected to
increase with rising delinquencies.  These developments do not
bode well for the banks' creditworthiness.

The two measures that are expected to help ease foreign currency
funding for the banks are:

   -- guarantee the banks' external debt raised from Oct. 20,
      2008, to June 30 2009, for three years, subject to the
      approval of the National Assembly.  In the interim, Korea
      Development Bank or Korea Export-Import Bank will provide
      the guarantee.  Total guarantees will be capped at
      US$100 billion versus the banks' external debt of
      US$80 billion maturing by June 2009; and

This measure will be submitted to the National Assembly this week
with approval expected by end October.  Under the guarantee, the
following will be excluded: subordinated debt, collateralized debt
and deposit products such as certificates of deposit.  The
government will disclose the process for the guarantee when
finalized.

   -- Inject US$30 billion liquidity into the banking sector,
      using foreign exchange reserves.  Of this amount,
      US$10 billion will come from the Bank of Korea into
      KRW/USD swap market.  The remaining US$20 billion will be
      channeled through the Export-Import Bank of Korea.


* Korea's Banking Measures to Alleviate Pressure, Moody's Says
--------------------------------------------------------------
The South Korean government's package of measures to help
alleviate pressures affecting South Korean banks will likely be
helpful to address uncertainties in the international financial
system, especially as they are experienced locally, says Moody's
Investors Service in a new report.  The program centers on a
government guarantee on external debt of domestic banks of up to
US$100 billion over a three-year period and the provision of US$30
billion of the BOK's official foreign exchange reserves to
domestic banks to ease the dollar liquidity squeeze.

"While the solvency of the Korean system is not currently in
jeopardy, the unsettled nature of global financial markets and the
unprecedented scope and depth of the global credit crisis make it
difficult to assess whether the program will fully restore
confidence," said Moody's Senior Vice President Tom Byrne, author
of the report.  "This will likely take hold only with a
normalization of global credit markets."

However, even with severe and protracted stress, he said, Korea's
credit fundamentals will most likely not be swamped as they were
in the Asian financial crisis of 1997 and the government's A2
ratings are appropriate, especially as Moody's rating approach is
to "look through" the business cycle, even a financial crisis, to
assess how factors are likely to shake out beyond the immediate
challenge at hand.

While Moody's considers the ability of Korea to face the liquidity
concerns raised by a probably temporary seizing-up of dollar
funding to be sufficient to make preemptive rating changes
unnecessary, an expansion of the government's balance sheet and a
higher direct vulnerability to exchange rate risk would have to be
considered relevant rating factors.

"At this stage, guarantees have not yet migrated into higher
government debt, and even if they were to do so, it would be
necessary to distinguish between gross and net debt," said
Mr. Byrne.  "Even though the current challenges will likely be
more formidable and more difficult to assess than those of 1997,
Korea is in a stronger position to deal with them, having remedied
weaknesses that were revealed by the earlier crisis."

He said Korea's large and liquid official reserves, which will
likely remain above or around US$200 billion in the months ahead,
and the possibility to benefit, in last resort, from regional
monetary solidarity may alleviate liquidity pressures, and brings
Korea closer in line with other countries, notably Australia and
Europe, that have adopted measures which essentially seek to allay
pressures on the ability of banks to fund their dollar positions.

"This will also help reduce investor uncertainty regarding the
policy stance and capabilities of the Korean government," said Mr.
Byrne.



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

HO HUP: Subject to LKT Tracts's Wind-Up Petition
------------------------------------------------
Ho Hup Construction Company Bhd disclosed that it has been served
with a wind-up petition by LKT Tracts & Parts Sdn Bhd.  The High
Court of Kuala Lumpur will hear the petition on January 21, 2008.

Ho Hup is indebted to LKT Tracts for MYR152,817.42, interest at
the rate of 8% per annum on MYR152,817.42 from November 5, 2007,
(date of filing of the action) until full payment thereof and
costs of MYR1,858.00) pursuant to the terms of a Judgement dated
July 10, 2008, obtained under Kuala Lumpur Sessions Court
S5-33931-2007.

The company is taking steps to settle the matter before the
hearing of the petition.  In any event, as the amount is
relatively small, the directors of the Company do not envisage the
impact of settlement on the Group, financially or operationally,
to be very significant.

Ho Hup Construction Company Bhd is engaged in foundation
engineering, civil engineering, building contracting works and
hire of plant and machinery.  The company operates in three
segments: construction, which is engaged in foundation and civil
engineering, building contracting works and engineering,
procurement, construction and commissioning of pipeline system;
property development, which includes the development of
residential and commercial properties, and manufacturing, which
includes manufacturing and distribution of ready-mixed concrete
and concrete spun piles.  The company's subsidiaries include Ho
Hup Construction Company (India) Private Limited, Ho Hup
Construction Company Berhad (Madagascar Branch), Ho Hup
Corporation (Mauritius) Ltd, Ho Hup Corporation (South Africa) Pty
Ltd, Ho Hup Equipment Rental Sdn Bhd, Ho Hup Geotechnics Sdn Bhd,
Ho Hup Jaya Sdn Bhd, Mekarani Heights Sdn Bhd, Intermax Resources
Sdn Bhd and Timeless Element Sdn Bhd.

                         *     *     *

Messrs. Ernst & Young have expressed a disclaimer opinion in the
company's 2007 audited financial statements.  As a result, the
company became an affected listed issuer pursuant to paragraph 2.1
of the PN17/2005.  The auditors cited these factors that indicate
the existence of material uncertainties, which may cast
significant doubt on the ability of the group and the company to
continue as a going concerns:

   * the group and the company reported a net loss of
     MYR46.16 mil. and MYR19.04 mil. respectively during the year
     ended December 31, 2007.  As of that date, the group's
     current liabilities exceeded its current assets by
     MYR83.62 mil.  In addition, the recognition of the liability
     may increase the group's net current liabilities by
     MYR43.9 million;

   * Should the outcome of the arbitration case between the
     company and the Government of Madagascar be unfavorable to
     the company, the liquidity of the group and the company would
     be adversely affected;

   * the Secured Bank Guarantees amounting to MYR43.41 mil. have
     been called upon by the Govt. of Madagascar from the
     Guarantor Bank following the dismissal of the company's
     application for leave to the Federal Courts on July 8, 2008.
     On July 25, 2008, the Guarantor Bank has paid MYR43.41 mil.
     to the  Govt. of Madagascar.  No provision has been made for
     the amounts of bank guarantees demanded by the Govt. of
     Madagascar but the amounts have been disclosed as Contingent
     Liabilities.  The non-recognition of the liability arising
     from the demand of bank guarantees by the Govt. of Madagascar
     is not in accordance with Financial Reporting Standards in
     Malaysia.  The  auditors were unable to perform sufficient
     appropriate audit procedures to ascertain whether the
     corresponding debit represents a recoverable amount or an
     expense in the income statement.


NIKKO ELECTRONICS: Appoints Nik Abdul as Member of Audit Committee
------------------------------------------------------------------
Nik Abdul Hamid Shukri Bin Nik Abdullah was appointed as a member
of Nikko Electronics Bhd.'s Audit Committee.

With his appointment, the company's Audit Committee composes now
of:

   * Gong Wooi Teik – Chairman;
   * Oh Kim Sun – member; and
   * Nik Abdul Hamid Shukri Bin Nik Abdullah - member

Mr. Nik has served in a number of private companies involved in
investment holding, telecommunications, general insurance and
marine-related construction and engineering business.  He
currently holds the position of Executive Director in Arah
Advisory Services Sdn Bhd where his portfolio comprises financial
and corporate planning functions.

                          About Nikko

Nikko Electronics Berhad manufactures sells radio controlled
toys, electronic and toy related products.  The Group operates
in Malaysia, United States of America, France, Japan, United
Kingdom, Netherlands, Italy, Norway, Hong Kong, Denmark,
Austria, Spain, Australia and other countries.

                         *     *     *

On June 30, 2008, Nikko Electronics Bhd. was classified as an
affected listed issuer under Practice Note 1/2001 (PN1/2001) of
the Listing Requirements of Bursa Malaysia Securities Berhad
because it had defaulted on a bankers' acceptance facility due
on June 27, 2008, for an amount of MYR1,457,084 due to Malayan
Banking Berhad.  Nikko is unable to repay the liability to the
bank due to the difficult cash flow position as a result of the
contraction in the remote-control toys industry.

The company had been loss-making and its ventures to manufacture
new products had also failed to make a profitable contribution
to it.  Nikko will also be suspending its business activities to
prevent incurring further losses.


SYARIKAT KAYU: Posts MYR668,000 Net Loss in Third Quarter
---------------------------------------------------------
For the third quarter ended August 31, 2008, Syarikat Kayu Wangi
Berhad recorded a net loss and loss before tax of MYR0.668 million
as compared to a net loss and loss before tax of MYR0.884 million
for the corresponding quarter of previous year.  The Group
recorded a YTD loss of MYR2.795 million as compared to a loss of
MYR3.473 million for the corresponding period of previous year.
The reduction in loss for the current quarter and for the period
was mainly due reduction in administrative expenses, gain from
disposal of excess machinery and better control of production cost
in the sawmills.

The company recorded a turnover of MYR4.96 million in the current
quarter as compared to last year same quarter of MYR5.62 million.
The current year-to-date turnover of MYR15.86 million was recorded
as compared to MYR15.98 million for the corresponding period of
previous year.  The reduction in revenue was mainly due to a drop
in production.  The Group’s turnover was mainly generated from its
timber division involved in timber saw milling, kiln drying and
roof truss fabrication.  The timber division contributed 81% of
the total revenue with the remaining 19% was contributed by the
property division.

As of August 31, 2008, the company's balance sheet showed
MYR89.68 million of total assets, MYR74.34 million of total
liabilities, resulting in a shareholders' equity of
MYR15.34 million.

Headquartered in Johor, Malaysia, Syarikat Kayu Wangi Berhad is
principally involved in the development of residential and
commercial projects.  Its other activities include housing
construction, production of sawn timber, manufacture of
prefabricated timber rooftrusses and timber trading.  The
Company first made a loss in 1999 when it defaulted on its first
bond payment.  The company has failed to turn its finances
around and has been suffering continuous losses since then.

The company was classified as an affected listed issuer of the
Amended PN17/2005 on May 8, 2006, since its latest audited
financial statements for the year ended Nov. 30, 2005, showed
that the company's shareholders' equity is MYR7,189,000, which
is less than 25% of the company's issued and paid up capital.

Syarikat Kayu is currently in the process of preparing its
Regularization Plan.  Once completed, the Requisite Announcement
outlining the Regularization Plan will be made to the Bursa
Securities.


WONDERFUL WIRE: Court to Hear MDV's Wind-Up Petition on Feb. 27
---------------------------------------------------------------
Wonderful Wire & Cable Berhad (WWC) has been served with a wind-up
by Malaysia Debt Ventures Berhad (MDV) filed before the High Court
of Malaya at Kuala Lumpur on September 30, 2008.  The petition
will be heard before the High Court on on Feb. 27, 2009.

The petition is in respect of a judgment in default of appearance
dated August 19, 2008, obtained by MDV against WWC vide High Court
Vivil Suit No. D8-22-984-2008 (D8 civil suit).  The D8 civil suit
is filed by MDV against Transmission Resources Sdn Bhd (TRSB) (in
receivership) as a principal debtor and borrower under a Revolving
Project Loan and against WWC for a corporate guarantee given by
WWC in consideration of the loan being granted to TRSB.  The total
claim by MDV amounts to MYR1,292,216.86 as at September 3, 2008.

WWC have filed an application to set aside the judgment in default
of appearance dated August 19, 2008, and for a stay of execution,
which is presently fixed for hearing on October 28, 2008.

WWC have further filed a counter civil suit against MDV in the
High Court Of Kuala Lumpur vide suit no. D2-22-1829-2008
(D2 civil suit) for:

   a) a declaration that MDV is liable for fraud for mishandling
      the proceeds acquired from a project between TRSB and MITV
      Corporation Sdn Bhd, which were contractually agreed to be
      used to repay the  Revolving Project Loan;
   b) a declaration that MDV had negligently disbursed the
      Revolving Project Loan;
   c) a declaration that a fundamental variation in the granting
      and disbursement of the loan to the borrower have discharged
      WWC from any further obligations under the corporate
      guarantee and the corporate guarantee is deemed null and
      void;
   d) Damages against MDV for fraud and negligence;
   e) Interest; and
   f) Cost

WWC have also under the aforesaid D2 civil suit filed an
application for an injunction to restrain MDV from advertising
and/or publishing the winding up petition which is yet to be
disposed off.

WWC intends to challenge and oppose the winding up petition filed
by MDV including applying to strike out the winding up petition
and stay the winding up proceedings.

There will be a possible financial impact due to the presentation
of the winding up petition on WWC; however, since the judgment in
default dated August 19, 2008, is being challenged by WWC in the
High Court of Kuala Lumpur, the wind-up petition is unlikely to
have an immediate operational impact on the company.

WWC's lawyers have advised that WWC have a strong case to set
aside the judgment in default of appearance dated August 19, 2008
obtained by MDV, against WWC.

                      About Wonderful Wire

Wonderful Wire & Cable Berhad is a Malaysia-based company that
is engaged in the manufacture and trading of all kinds of
electrical wires and cables.  The principal activities of the
company's subsidiaries include the investment holding, provision
for oil, gas and petroleum engineering, and design engineers and
contractors.  Its subsidiaries include Wonderful Industries Sdn.
Bhd., WWC Oil & Gas (Malaysia) Sdn. Bhd., WWC Sealing (Malaysia)
Sdn. Bhd., Transmission Resources Sdn. Bhd., WWC Engineering (M)
Sdn. Bhd. and Wonderful Wire & Cable.  In November 2006, the
company acquired the remaining 40% interest in WWC Sealing
(Malaysia) Sdn Bhd.  The principal activity of WWC Sealing
(Malaysia) Sdn Bhd is to design, manufacture and market
different ranges of industrial seal and gasket.

On December 3, 2007, the company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category as the company's shareholders' equity
on a consolidated basis for the unaudited results is less than
25% of the issued and paid-up capital for the third quarter
ended Sept. 30, 2007.



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

CER GROUP: Won't Pay AU$1 Mil. Deferred Settlement to VRM Group
---------------------------------------------------------------
CER Group Ltd is in dispute with the vendors of VRM Group, an
Australian environment management business it bought in 2007, in
respect of a number of matters, the company said in a statement.
According to the company, it has resolved not to pay to the
vendors of VRM an AU$1 million deferred settlement payment.

CER Group said as previously advised it has been reviewing the
future sustainability of its VRM Group businesses with the vendors
and has taken a full provision in the June 2008 Interim result
against its investment in VRM.

The National Business Review reports that the company valued VRM,
which stands for Vital Resource Management, at AU$4.8 million when
it announced the purchase and said at the time the company would
be earnings per share positive from the first year.

The Business Review relates that since then CER Group has
expressed doubts about the sustainability of the acquisition and
made a provision of NZ$5.8 million to cover it and problems
encountered by the company's Certified Organics operation.

Negotiations in relation to a possible resolution of the dispute
are on foot between the parties, the company said in a statement.

Based in Townsville, Queensland, VRM Group manufactures pro-biotic
formulation-based products used in farming and by cleaning
companies.

                         About CER Group

Auckland, New Zealand-based CER Group Ltd. --
http://www.certified-organics.com/-- formerly Certified
Organics Limited, is engaged in the development, manufacture and
marketing of naturally based biological control, hygiene and
health products for use in agriculture, industry and
domestically, both within New Zealand and for export.  The
company is also involved in the sale of Internet catalogue goods
both within New Zealand and for export.  The company's
subsidiaries include New Zealand Nature Company Limited, Organic
Interceptor Products Limited, Certified Organics (Aust) Pty
Limited and Certified Organics Inc.

                          *     *     *

In a statement to the New Zealand Stock Exchange on Feb. 29,
2008, the Group posted a pre-tax loss of NZ$225,000 as
preliminary results for the 2007 financial year.  This loss was
calculated after charging NZ$30,000 for the time apportioned
imputed cost of untraded share options issued during the year.

Following a further review, the Audit Committee deemed it
appropriate to charge the full imputed, non-cash, cost of these
options to the 2007 trading result, increasing the pre-tax loss
for the year to NZ$903,000.

The Troubled Company Reporter-Asia Pacific, citing a report
from ShareChat News, said on March 5, 2007, that CER Group's
December 2006 full-year loss narrowed to NZ$53,000 from
NZ$327,000 in 2005.


FEMALE DOCTOR: Liquidator Sets Oct. 31 as Claims Bar Date
---------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
shareholders of Female Doctor Online Limited resolved that the
company be liquidated and that Murray G. Allott, chartered
accountant of Christchurch, be appointed as liquidator.

Creditors are required to file their proofs of debt by
October 31, 2008, to be included in the company's dividend
distribution.

Creditors and shareholders may direct their inquiries to:

          Murray G. Allott
          111 Bealey Avenue
          Christchurch 8013
          Telephone: (03) 365 1028
          Facsimile: (03) 365 6400
          Email: murray@profitco.co.nz


GMF CONSTRUCTION: Wind-Up Petition Hearing Set for October 28
-------------------------------------------------------------
The High Court at Wellington will hold a hearing on October 28,
2008, at 10:00 a.m., to consider putting GMF Construction Limited
into liquidation.

The application was filed on September 2, 2008, by Acrow Limited.

The plaintiff's address for service is at:

          Bruce Ronald Young
          Sladden Cochrane & Co.
          Level 7, Hallenstein House
          276 Lambton Quay (PO Box 10909)
          Wellington

B. R. Young is the plaintiff's solicitor.


INLET REALTY: Proofs of Debt Due on October 31
----------------------------------------------
Pursuant to Section 255(2)(b) of the Companies Act 1993, Stephen
Kim Bennett and Timothy John Hoyle, chartered accountants of Steve
Bennett Associates, Whangarei, were appointed liquidators of Inlet
Realty Limited on October 1, 2008.

The liquidators set October 31, 2008, as the last day for
creditors to file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Tim John Hoyle
          3-5 Hunt Street
          Whangarei
          Telephone (09) 438 2312


INTRAC CORPORATION: Wind-Up Petition Hearing Set for November 7
---------------------------------------------------------------
The High Court at Auckland will hold a hearing on November 7,
2008, at 10:00 a.m., to consider putting Intrac Corporation
Limited into liquidation.

The application was filed on June 30, 2008, by the Commissioner of
Inland Revenue.

The plaintiff's address for service is at:

          Inland Revenue Department
          Legal and Technical Services
          17 Putney Way (PO Box 76198)
          Manukau, Auckland 2241
          Telephone: (09) 985 7274
          Facsimile: (09) 985 9473

Sandra Joy North is the plaintiff's solicitor.


JOHN AH: Proofs of Debt Due on October 31
-----------------------------------------
In accordance with section 241 of the Companies Act 1993, the
shareholders of John Ah Kuoi Agencies Limited appointed Paul
Graham Sargison and Gerald Stanley Rea, chartered accountants of
Auckland, as liquidators on September 30, 2008.

Creditors are required to file their proofs of debt by October 31,
2008, to be included in the company's dividend distribution.

Creditors and shareholders may direct their inquiries to:

          G. S. REA
          Gerry Rea Partners
          PO Box 3015
          Auckland
          Telephone: (09) 377 3099
          Facsimile: (09) 377 3098


NIMBUS GROUP: Commences Liquidation Proceedings
----------------------------------------------
The High Court at Christchurch held a hearing on October 20, 2008,
to consider an application putting Nimbus Group Limited into
liquidation.

The application was filed on September 9, 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.


OPTIMUM PROPERTY: Liquidator Sets Oct. 31 as Claims Bar Date
------------------------------------------------------------
The High Court at Auckland has appointed Vivien Judith Madsen-
Ries, insolvency specialist, and David Stuart Vance, chartered
accountant, as liquidators of Optimum Property Solutions Limited .

Creditors are required to file their proofs of debt by
October 31, 2008, to be included in the company's dividend
distribution.

Creditors and shareholders may direct their inquiries to:

          Mayura Sathiyaselvan
          Deloitte
          Level 8, Deloitte House
          8 Nelson Street
          Auckland 1010
          Telephone: (09) 309 4944
          Facsimile: (09) 309 4947


PATHWAYS FINANCIAL: Liquidator Sets Oct. 31 as Claims Bar Date
--------------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
shareholders of Pathways Financial Services Limited resolved that
the company be liquidated and that Murray G. Allott, chartered
accountant of Christchurch, be appointed as liquidator.

Creditors are required to file their proofs of debt by
October 31, 2008, to be included in the company's dividend
distribution.

Creditors and shareholders may direct their inquiries to:

          Murray G. Allott
          111 Bealey Avenue
          Christchurch 8013
          Telephone: (03) 365 1028
          Facsimile: (03) 365 6400
          Email: murray@profitco.co.nz


SAMCO CORPORATION: Proofs of Debt Due on November 7
---------------------------------------------------
In accordance with section 241 of the Companies Act 1993, the
shareholders of Samco Corporation Limited, trading as Sanhovens,
appointed John Trevor Whittfield and Peri Micaela Finnigan,
insolvency practitioners of Auckland, as liquidators on
September 30, 2008.

The liquidators set November 7, 2008, as the last day for
creditors to file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

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


THE LAWN: Proofs of Debt Due on October 29
------------------------------------------
Pursuant to Section 241(2)(c) of the Companies Act 1993, Vivien
Judith Madsen-Ries, insolvency specialist, and David Stuart Vance,
chartered accountant, were appointed liquidators of The Lawn
Renovators Limited on September 24, 2008.

The liquidators set October 29, 2008, as the last day for
creditors to file their proofs of debt.

Creditors and shareholders may direct their inquiries to:

          Monique Nielsen
          Deloitte
          Level 8, Deloitte House
          8 Nelson Street
          Auckland 1010
          Telephone: (09) 309 4944
          Facsimile: (09) 309 4947


* NEW ZEALAND: Liquidations Up Almost 28% in September Quarter
--------------------------------------------------------------
Liquidations rose sharply during the September quarter, The
National Business Review reports citing Ministry of Economic
Development.

According to the report, the ministry recorded 852 liquidations
during the three-month period, up from 667 in the same period last
year.  Figures show a rise of almost 28 percent.

Until the latest quarter, liquidations had remained fairly stable,
with 2,711 in the year to June 2008, and 2,696 the previous year,
the report relates citing The New Zealand Herald.

Building construction and property development companies feature
large on the list as the downturn in the property sector bites,
the Business Review says.


* NEW ZEALAND: Central Bank Cuts Interest Rates to 6.5%
-------------------------------------------------------
The Reserve Bank of New Zealand said today it has reduced the
Official Cash Rate (OCR) from 7.5 percent to 6.5 percent.

Reserve Bank Governor Alan Bollard commented that "ongoing
financial market turmoil and a deteriorating outlook for global
growth have played a large role in shaping today's decision.

"Economic activity in New Zealand will be further constrained,
relative to the outlook presented in our September Monetary Policy
Statement, by these international developments.  New Zealand can
expect to face lower demand for exports and credit is likely to be
less readily available.  In this environment consumers and
businesses are likely to be more cautious and curtail spending.

"The reduction in domestic spending will be partly offset by the
depreciation of the New Zealand dollar over the past few months,
falling oil prices and the recent loosening of fiscal policy.

"With weaker short-term growth and sharply lower oil prices we now
expect that annual CPI inflation will return to the target band of
1 to 3 percent around the middle of 2009.  However, we still have
concerns that domestically generated inflation (particularly in
labor costs, local body rates, electricity prices and construction
costs) is remaining stubbornly high.

"Consistent with the Policy Targets Agreement, the Bank's focus
will remain on medium-term inflation.  Should the outlook for
inflation evolve as projected we would expect to lower the OCR
further.  However, the timing and extent of OCR reductions over
the coming months will depend on evidence of actual reductions in
domestic cost pressures as well as how the global financial
developments play out."



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

* PHILIPPINES: Banks Want Reprieve From Losses on Government Debt
-----------------------------------------------------------------
At least nine Philippine banks have launched a concerted bid to
soften the blow from losses on ROPs -- the market shorthand for
Republic of the Philippine bonds or sovereign papers, which was
affected by global credit crisis, BusinessWorld reports citing
industry officials.  The banks are Banco de Oro Unibank, Inc.
(BDO), Rizal Commercial Banking Corp. (RCBC), Bank of the
Philippine Islands (BPI), Land Bank of the Philippines,
Development Bank of the Philippines, Metropolitan Bank & Trust Co.
(Metrobank), United Coconut Planters Bank (UCPB), and Lucio Tan-
controlled Philippine National Bank and Allied Banking Corp.

According to the report, officials said that easier accounting
rules would be needed to mitigate the impact on banks' balance
sheets.

BusinessWorld, however, notes that the Philippine banking system
is relatively healthy compared with its US and European
counterparts as its exposure to risky credit assets such as
collateralized debt obligations have been kept to a minimum.

Local banks are proposing a formula that allows the ROPs to be
priced based on a certain credit default swap (CDS) spread instead
of bid-offer prices, BusinessWorld adds.

Industry officials began talks with the Bangko Sentral ng
Pilipinas (BSP), which was said to have asked banks to submit
their observations, the report states.

The move comes in time for third-quarter results, raising talk
that the banks want to hide their losses, BusinessWorld notes.



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

* SINGAPORE: Economy to be Weak for Several Quarters
----------------------------------------------------
Singapore's economy, which fell into a recession in the third
quarter, will see growth remaining weak for "several quarters",
Reuters reports, citing Trade Minister Lim Hng Kiang.

"We must be prepared for weaker growth in the next few quarters,
and possibly longer," Reuters quotes Mr. Lim as saying.

The report adds that Mr. Lim said that Singapore's exports and
manufacturing activity have slowed on the back of the financial
crisis, and that employment growth in the country will moderate in
the second half of this year and 2009.



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

QUANTA COMPUTER: Gets Intel Classmate PC Orders
------------------------------------------------
Quanta Computer Inc. has grabbed orders for Intel's next
generation Classmate PC and is expected to start shipping in the
first quarter of 2009, Digitimes News reports.

Shipment volumes of the new Classmate PC in 2009, the report
relates, are expected to be around two million units.  Shipments
were around 100,000 units in 2007 and are estimated to hit 500,000
units in 2008, the report says.

According to the report, Intel said the previous generation
Classmate will continue shipping too with the original OEM
partner, Elitegroup Computer System (ECS), still manufacturing.

Headquartered in Taoyuan, Taiwan, Quanta Computer Inc. --
http://www.quantatw.com/-- is principally engaged in the
manufacture, research, development and sale of laptop computers
and components.  The company offers laptops, cellular
telephones, liquid crystal display televisions, servers, LCD
monitors, computer peripherals, computer components, wireless
local area network (WLAN) bridges and communications products.
It serves overseas markets, predominantly the Americas, Asia and
Europe.

                          *     *     *

The company continues to carry Fitch Ratings' “BB” long-term
foreign currency issuer default rating.



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

* S&P Sees Increasing Pressure for Asia Pacific Air/Shipping Biz
----------------------------------------------------------------
The creditworthiness of transportation companies in the Asia-
Pacific region, particularly airline and shipping firms, is under
increasing downward pressure, Standard & Poor's Ratings Services
said in a published report.

This is largely due to surging fuel prices and weakening transport
demand on the back of the global economic slowdown, the report
says.  Although the Asia-Pacific regional economy has been
relatively steady compared with other parts of the world, there
have been signs of economic deceleration, even in China and India.
This uncertainty has been exacerbated by turmoil in the U.S. and
European economies, and S&P believes economic growth worldwide
will become increasingly constrained as financing conditions
deteriorate.  Consequently, S&P expects the business environment
for regional transportation companies to be more challenging.

The published report provides analysis on how soaring fuel prices
have put acute earnings pressure on airlines in the region, and
how weakening marine transport demand has increased uncertainty
surrounding the performance of shipping companies.



                         *********

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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