TCRAP_Public/081030.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 30, 2008, Vol. 11, No. 216

                            Headlines

A U S T R A L I A

ACN 090 814 289 PTY: Final Meeting Set for Tomorrow
BELLCOM PTY: Final Meeting Set for Tomorrow
FINANCIAL FOUNDATIONS: Final Meeting Set for Tomorrow
GRIFFIN COAL: Moody's Cuts CFR to B1; Outlook Negative
G V INVESTMENTS: Final Meeting Will Be Held Tomorrow

JIESHU PTY LIMITED: Members Appoint Liquidator
KING LION SECURITY: Members Resolve to Wind Up Company
LEMENI PTY: Members to Hold General Meeting Today
MINI CRANE SERVICES: Members Appoint Liquidator
OLIVSAM PTY: Members' General Meeting Is Today

OPES PRIME: Bell Group Decision Good for Liquidators
PROSPECTUS & PROJECT: Final Meeting Set for Tomorrow
S.L. PROPERTIES: Final Dividend Declared
TRADE INVESTMENTS: Members' & Creditors' Final Meeting Held
VERCAT PTY: Members' General Meeting Set of November 10

VIRTUAL ADMINISTRATION: Members Resolve to Wind Up Firm
VPC UNITED: Members Appoint Liquidator
* AUSTRALIA: Utilities Biz Shows Balance Sheet Concerns, S&P Says
* AUSTRALIA: CMBS Markets Still Stable, S&P Reports


C H I N A

ASIA ALUMINUM: Moody's Cuts Sr. Unsecured Bond Rating to B2
CHINA EASTERN: Posts CNY2.33 Billion Loss in the Third Quarter
CHINA EASTERN: Gets Approval to Resume Yunnan Routes
ICBC: Plans to Invest in a Philippine-Based Thrift Bank
XINHUA FINANCE: Net Income Down 66% to US$0.8MM in 2nd Qtr. 2008


H O N G K O N G

BRILLIANT SMART: Court to Hear Wind-Up Petition on November 19
CHINA AMPLE: Court Enters Wind-Up Order
DESU INDUSTRIES: Court to Hear Wind-Up Petition on November 19
GENMAY INDUSTRIES: Court to Hear Wind-Up Petition on November 26
GOLDEN DOME: Court Hears Wind-Up Petition

GOLDNICE TEXTILES: Court Enters Wind-Up Order
GOOD VIEW: Court Enters Wind-Up Order
GRIFFIN INDUSTRIES: Court Enters Wind-Up Order
INFINITE LOGISTICS: Court Enters Wind-Up Order
KANSA GENERAL: Creditors' Proofs of Debt Due on November 14

KING'S STAR: Wind-Up Petition Hearing Set for November 19
LBQ HONG KONG: Appoints Provisional Liquidators
LEHMAN BROTHERS: Appoints Provisional Liquidators
MIND FULL: Court Enters Wind-Up Order
SINCERITY ENGINEERING: Court Enters Wind-Up Order

SONITE LIMITED: Court Enters Wind-Up Order
TIC TAC: Court Enters Wind-Up Order
YAT HING: Court Enters Wind-Up Order


I N D O N E S I A

BAKRIE GROUP: Suspended Major Units Await New Investors


J A P A N

NOMURA HOLDINGS: Shares Fall on Quarterly Loss
* JAPAN: S&P Says Recapitalization Offers Breif Relief to Banks


M A L A Y S I A

NIKKO ELECTRONICS: Avery Technologies Demands US$21,158.60 Payment
OLYMPIA INDUSTRIES: To Hold 27th Annual Meeting on November 21
WELLI MULTI: Subsidiary Faces Wind-Up Petition


N E W  Z E A L A N D

AIR NEW ZEALAND: Charity Group Slams Request for Higher Subsidies
BEST YIELD: High Court to Hear Wind-Up Petition on November 14
CANBRACE LIMITED: Shareholders Appoint Joint Liquidators
CBW LIMITED: Shareholders Appoint Joint Liquidators
CBW MANAGEMENT LIMITED: Shareholders Appoint Joint Liquidators

D.L. STOUT: Creditors Must File Claims by December 12
D.M. BARNES: Faces CIR's Wind-Up Petition
HAMILTON S.A.O.G.: Court to Hear Wind-Up Petition on November 7
HOLE IN THE WALL: Creditors Must File Claims by November 3
MIH LIMITED: High Court Appoints Joint Liquidators

MR Plan Ltd: Shareholders Appoint Joint Liquidators
PETRANZ LTD: Faces CIR's Wind-Up Petition
WHANGARIPO HORTICULTURE: Claims Filing Deadline Is November 17
* NEW ZEALAND: CMBS Markets Still Stable, S&P Reports


P A K I S T A N

* Moody's Cuts Pakistan's Ratings to B3 & Keeps Ratings on Review
MOBILINK COMM: Moody's Puts Low-B Ratings Under Review


P H I L I P P I N E S

SAN MIGUEL: Moody's Sees No Rating Impact on Meralco Acquisition
* PHILIPPINES: Cement Industry Workers in Danger of Losing Jobs


T A I W A N

UMC: Posts NT$1.413-Bil. Net Loss for the September Quarter


                         - - - - -


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

ACN 090 814 289 PTY: Final Meeting Set for Tomorrow
---------------------------------------------------
A Final Meeting of the Members and Creditors of ACN 090 814 289
Pty Limited will be held at Ngan & Co, Level 5, 49 Market Street,
Sydney NSW 2000 on Friday, October 31, 2008, at 10:15 a.m.

AGENDA:

   1. To receive an account made up by the Liquidator showing how
      the winding up has been conducted, the property of the
      Company has been disposed of and to receive any explanation
      required thereof.

   2. To consider any other business brought before the meeting.

P. Ngan is the liquidator.


BELLCOM PTY: Final Meeting Set for Tomorrow
-------------------------------------------
The final meeting of Bellcom Pty Ltd will be held at the offices
of Irish & Saunders, 60 Waters Road, Cremorne at 9:00 a.m. on
October 31, 2008, for the purpose of laying before the meeting the
Liquidator's final account and giving any explanation thereof.

Richard Saunders is the liquidator.


FINANCIAL FOUNDATIONS: Final Meeting Set for Tomorrow
-----------------------------------------------------
A Final Meeting of the Members and Creditors of Financial
Foundations Pty Limited will be held at Ngan & Co, Level 5, 49
Market Street, Sydney NSW 2000 on Friday, October 31, 2008, at
10:45 a.m.

AGENDA:

   1. To receive an account made up by the Liquidator showing how
      the winding up has been conducted, the property of the
      Company has been disposed of and to receive any explanation
      required thereof.

   2. To consider any other business brought before the meeting.

P. Ngan is the liquidator.


GRIFFIN COAL: Moody's Cuts CFR to B1; Outlook Negative
------------------------------------------------------
Moody's Investors Service has downgraded the corporate family and
senior unsecured ratings of The Griffin Coal Mining Company Pty
Ltd (Griffin) from Ba3 to B1. The rating outlook is negative.

"Further production, earnings and cash flow weakness over the 2008
financial year together with delays in the company's key projects
-- particularly its char project -- has lowered Moody's
expectations for the near and medium term, resulting in the
downgrade,” says Ian Lewis, VP/Senior Analyst and lead analyst for
Griffin, adding "The negative outlook captures heightened
execution risk for the company due to its delayed projects."

"Over the past financial year, production has continued to fall
short of Moody's expectations for the previous Ba3 rating,
exacerbated by the adverse weather and higher than projected
operating costs," says Mr. Lewis. "In addition, the coal
carbonization project which was due to be completed this year will
now not come on-line until 2010 at the earliest, though this is
likely to be partly offset by increased export coal sales."

"Accordingly, the company will be exposed to protracted high
gearing and low interest cover providing it with limited ability
to absorb unexpected shocks," says Mr. Lewis.

The negative outlook captures the heightened execution risk faced
by Griffin as it moves through the construction programs for its
major projects.

The rating could be downgraded should Griffin lose a key customer,
experience significant additional delays in the construction of
either power station or the carbonized coal plant, or experience
continued weakness in revenue and earnings which is not able to be
replaced by alternative means. Indicators of such trends would
include Adjusted Debt/EBITDA remaining over 4.7-5.0x and
EBIT/Interest below 1.7-2.0x on a consistent basis. Moody's would
be mindful of any other credit weaknesses when assessing whether
material downward pressure was apparent, including Griffin's
liquidity as it moves through its construction program and funds
are depleted.

On the other hand, the negative outlook could stabilize if the
company is able to successfully complete the Bluewaters I & II
projects and the carbonized coal plant, or should it be successful
in replacing the delay in any of these projects with export coal
under appropriate long term contracts. The successful
construction, commissioning and commencement of these facilities
would ameliorate the associated execution and start-up risks. Once
completed, Moody's would also look for significant de-leveraging,
as reflected by Adjusted Debt/EBITDA below 3.5x and EBIT/Interest
over 2.5x on a consolidated basis.

The Griffin Coal Mining Company, headquartered in Perth, Australia
is involved in coal extraction. It is a wholly owned subsidiary of
Devereaux Holdings Pty Ltd, a private company owned in turn by the
Stowe family.


G V INVESTMENTS: Final Meeting Will Be Held Tomorrow
----------------------------------------------------
The final meeting of G V Investments Pty Ltd will be held at the
offices of Irish & Saunders, 60 Waters Road, Cremorne at 11:00
a.m. on October 31, 2008, for the purpose of laying before the
meeting the Liquidator's final account and giving any explanation
thereof.

Richard Saunders is the liquidator.


JIESHU PTY LIMITED: Members Appoint Liquidator
----------------------------------------------
At a Meeting of Members of Jieshu Pty Limited held on
September 10, 2008, these Special and Ordinary resolutions were
passed:

   -- that the company be wound up voluntarily, and

   -- that Trajan John Kukulovski of Paladin Partners be appointed
      liquidator of the company.

The liquidator can be reached at:

     TRAJAN JOHN KUKULOVSKI
     Liquidator
     Paladin Partners
     120 Sussex Street, Level 3
     Sydney NSW 2000
     Telephone: (02) 9290 5300
     Facsimile: (02) 9290 5399


KING LION SECURITY: Members Resolve to Wind Up Company
------------------------------------------------------
At a Meeting of Members of King Lion Security Pty Limited held on
September 8, 2008, these Special and Ordinary resolutions were
passed:

   -- that the Company be wound up voluntarily, and

   -- that Trajan John Kukulovski and Mitchell Ball of Paladin
      Partners be appointed liquidators of the company.

The liquidators can be reached at:

     MITCHELL BALL
     TRAJAN JOHN KUKULOVSKI
     Liquidators
     Paladin Partners
     120 Sussex Street, Level 3
     Sydney NSW 2000
     Telephone: (02) 9290 5300
     Facsimile: (02) 9290 5399


LEMENI PTY: Members to Hold General Meeting Today
-------------------------------------------------
A general meeting of the members of Lemeni Pty Ltd will be held at
the offices of Hill Rogers, Chartered Accountants, Level 5 No. 1
Chifley Square Sydney NSW on October 30, 2008, at 10:00 a.m. for
the purposes of having an account laid before them showing the
manner in which the winding up has been conducted and the property
of the company disposed of and of hearing any explanation that may
be given by the liquidator.

The liquidator is John Wilcox.


MINI CRANE SERVICES: Members Appoint Liquidator
-----------------------------------------------
At a Meeting of Members of Mini Crane Services Pty Limited held on
September 18, 2008, these Special and Ordinary resolutions were
passed:

   -- that the Company be wound up voluntarily, and

   -- that Mitchell Ball of Paladin Partners be appointed
      liquidator of the company.

The liquidator can be reached at:

     MITCHELL BALL
     Liquidator
     Paladin Partners
     120 Sussex Street, Level 3
     Sydney NSW 2000
     Telephone: (02) 9290 5300
     Facsimile: (02) 9290 5399


OLIVSAM PTY: Members' General Meeting Is Today
----------------------------------------------
A general meeting of the members of Olivsam Pty Ltd will be held
at the offices of Hill Rogers, Chartered Accountants, Level 5
No. 1 Chifley Square Sydney NSW on October 30, 2008, at 10:00 a.m.
for the purposes of having an account laid before them showing the
manner in which the winding up has been conducted and the property
of the company disposed of and of hearing any explanation that may
be given by the liquidator.

The liquidator is John Wilcox.


OPES PRIME: Bell Group Decision Good for Liquidators
----------------------------------------------------
Citing Opes Prime liquidator John Lindholm of Ferrier Hodgson,
Leonie Wood of The Age reported that the West Australian Supreme
Court's decision against bankers of the Bell Group has boosted the
hopes of lawyers managing the numerous Opes Prime cases in courts
across the country.

The Troubled Company Reporter-Asia Pacific reported on Oct. 27,
2008, that the mediation between the liquidators of Opes Prime
Stockbroking Ltd (and related entities), the Australian Securities
and Investments Commission, Merrill Lynch and ANZ Bank has ended
without a settlement being reached.  Now, without a settlement,
litigation between the Liquidators and the banks is unavoidable.

According to Mr. Wood, "the WA court found that, in taking charges
over Bell assets when the group veered close to collapse in early
1990, its bankers received trust property knowing that this
stemmed from breaches of fiduciary duties by Bell directors. Bell
directors breached their duties by refinancing the group because
the deal exposed other Bell companies to potential losses and
bumped aside the claims of non-bank creditors."

The Age related that Mr. Lindholm believes ANZ unfairly changed
the terms of its share-lending contracts with Opes Prime just
before the broker collapsed, bolstering its security when the
company was already insolvent while Merrill Lynch hastily
redrafted its secured charge and registered it the day after the
company collapsed.

                         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.


PROSPECTUS & PROJECT: Final Meeting Set for Tomorrow
----------------------------------------------------
A Final Meeting of the Members and Creditors of Prospectus &
Project Management Services Pty Limited will be held at Ngan & Co,
Level 5, 49 Market Street, Sydney NSW 2000 on Friday, October 31,
2008, at 10:30 a.m.

AGENDA:

   1. To receive an account made up by the Liquidator showing how
      the winding up has been conducted, the property of the
      Company has been disposed of and to receive any explanation
      required thereof.

   2. To consider any other business brought before the meeting.

P. Ngan is the liquidator.


S.L. PROPERTIES: Final Dividend Declared
----------------------------------------
A final dividend was declared on October 17, 2008, for S.L.
Properties Pty Limited.

Creditors who failed to file their proofs of claim by October 15,
2008, were excluded from the benefit of the dividend.

The liquidator is:

     KEN RENNIE
     Official Liquidator
     S.L. Properties Pty Limited (In Liquidation)
     Ernst & Young
     Chartered Accountants
     680 George Street, Level 37
     Sydney NSW 2000
     Telephone: (02) 9248 5862


TRADE INVESTMENTS: Members' & Creditors' Final Meeting Held
-----------------------------------------------------------
Members and creditors of Trade Investments Pty Limited met at the
offices of Liquidation Direct, on October 9, 2008, and provided:

   * the final summary of receipts and payments of the Liquidator.
   * formal notice of the end of the Liquidation.

Steven Kugel was the liquidator.


VERCAT PTY: Members' General Meeting Set of November 10
-------------------------------------------------------
A general meeting of members of Vercat Pty Limited will be held at
the offices of Arnold Stevens Finlay, Chartered Accountants at
Level 3, 46 Market Street, Sydney NSW 2000 on November 10, 2008,
at 9:30 a.m.  The purpose of the meeting is to receive the
liquidators' account, showing the manner in which the winding up
has been conducted and the property of the company disposed of and
for hearing any explanation that may be given by the Liquidator.


VIRTUAL ADMINISTRATION: Members Resolve to Wind Up Firm
-------------------------------------------------------
At a meeting of members of Virtual Administration Pty Limited held
on September 12, 2008, it was resolved that the company be wound
up voluntarily, and David Ian Mansfield of Moore Stephens, Level
6, 460 Church Street, Parramatta NSW 2150, be appointed
Liquidator.


VPC UNITED: Members Appoint Liquidator
--------------------------------------
On September 19, 2008, members of VPC United Pty Limited resolve
to wind up the company and appoint Christopher J. Palmer as
liquidator.

The liquidator can be reached at:

     O'Brien Palmer
     23-25 Hunter Street, Level 4
     Sydney NSW 2000


* AUSTRALIA: Utilities Biz Shows Balance Sheet Concerns, S&P Says
-----------------------------------------------------------------
The credit quality of Australia's rated utilities sector weakened
further over the past six months, reflecting a combination of
concerns regarding balance-sheet management, capital-expenditure
funding, and operational issues, according to a report by Standard
& Poor's Ratings Services, titled "As Risks Heat Up, Can
Australian Utilities Strengthen Their Balance Sheets?".

"The environment for Australian utilities remains challenging,"
Standard & Poor's credit analyst Parvathy Iyer said.  "Key risks
facing the industry including constrained credit markets, higher
debt-funding costs, significant capital-expenditure plans, the
expected introduction of a carbon-pollution-reduction scheme, and
the fallout from any sale of the New South Wales government-owned
energy retailers."

S&P's recent rating actions and distribution of rating outlooks
for the sector support the negative tone: eight of the nine rating
actions in the past six months have been negative, while about
half of the 33 Australian utilities S&P rates have negative
outlooks.


* AUSTRALIA: CMBS Markets Still Stable, S&P Reports
---------------------------------------------------
Australia's AU$10.4 billion commercial mortgage-backed securities
(CMBS) market continues to perform within expectations.  This is a
key finding in the latest issue of Australia & New Zealand CMBS
Performance Watch, published by Standard & Poor's Ratings
Services.

There has been no new issuance in the CMBS market in 2008.  The
existing programs are performing well; all have high occupancy
levels, and, on average, high weighted-average lease durations.

"This indicates that the lease profiles are well managed across
the programs," S&P's credit analyst Alisha Treacy said.

"Although some property values have fallen during the six months
to June 2008, we have not detected any significant changes to
capital values on a total portfolio basis.  This is partly due to
the on-going revaluation of secured properties.  About 55% have
been revalued this year."

Some properties have reported income reductions this year.  On a
portfolio basis, reductions in income have generally been
restricted to those programs that sold assets during the reporting
period and retained cash reserves.

S&P expects the CMBS sector to remain quiet for the remainder of
2008.  With approximately 40% of the total outstanding Australian
CMBS debt due to mature in 2009, new issuance may pick-up next
year.  Nevertheless, events in global capital markets are likely
to determine the form that future financing activity will take.

The report, Australia & New Zealand CMBS Performance Watch – June
2008, provides comprehensive analysis of the performance of CMBS
transactions in Australia and New Zealand, and valuable insight
into the performance of both asset and debt levels.  The report is
produced on a half-yearly basis and provides data that is
comparable among programs.



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

ASIA ALUMINUM: Moody's Cuts Sr. Unsecured Bond Rating to B2
-----------------------------------------------------------
Moody's Investors Service has revised the outlook for Asia
Aluminum Holdings Ltd's B1 corporate family rating to negative
from stable. At the same time, Moody's has downgraded AAH's senior
unsecured bond rating to B2 from B1 with a negative outlook.

"The change in outlook reflects the slower than expected ramp-up
of AAH's flat-roll products facility, and the resulting delayed
improvement to its financial profile," says Wonnie Chu, a Moody's
Analyst, adding, "The company's FY2009 Debt/EBITDA, after
consolidating the parent's debts, is expected to remain high at
around 7-8x before improving to around 5-6x following the full
ramp-up of its FRP facility in FY2010."

"Further delay in ramping up the FRP facility could potentially
affect AAH's ability to service the PIK note coupons of its parent
starting November 2009," says Wonnie Chu, also Moody's lead
analyst for the company.

The negative outlook also reflects the rating agency's concern
about the sustainability of AAH's cost-plus pricing model under
the current economic environment, to the extent that the company
may opt to lower its selling prices in an effort to consolidate
customer relationships. In addition, AAH has yet to demonstrate
its ability to market its new FRP products.

At the same time, the B1 rating is supported by AAH's strong
position in the aluminum extrusion industry in China, benefiting
from economies of scale and value-added product offerings.

"The downgrade of AAH's bond rating mainly reflects structural
subordination risk as both AAH's subsidiary debt to total debt and
total assets have increased in the past few years and were above
44% and 18% respectively as of FY2008. The ratio is expected to
remain high at around 20% in the next two years due to increasing
working capital requirements from its FRP facility," says Wonnie
Chu.

The possibility of a rating upgrade is limited given the negative
outlook. However, the outlook could return to stable if AAH's FRP
facility begins full operations on schedule in 1Q2009, while the
company improves its operating performance such that adjusted
Debt/EBTIDA falls below 6x on a sustained basis.

Conversely, AAH's ratings could be downgraded if the company's 1)
FRP production suffers further delays as it ramps up; and 2)
balance sheet liquidity and financial profile deteriorate further
as a result of slow demand, such that Debt/EBITDA is above 7-8x in
the next 12 to 18 months.

Asia Aluminum Holdings Ltd, founded in 1992, is the largest
manufacturer of aluminum extrusion products in Asia, with 360,000
metric tons annual design capacity. The company also expects to
fully commence its 400,000 MT FRP facility in 1Q 2009.

AAH was privatized in May 2006. The new holding company, Asia
Aluminum Investment, is controlled by Mr. Kwong Wui Chun, the
founder and chairman of AAH.


CHINA EASTERN: Posts CNY2.33 Billion Loss in the Third Quarter
--------------------------------------------------------------
China Eastern Airlines Corporation Limited recorded a
CNY2.33 billion (US$341 million) loss in July-September quarter
from a CNY976 million net profit for the same period last year on
faltering demand and rising costs afflicting the entire industry,
The Associated Press reports.

According to the report, China Eastern reported a CNY212 million
net loss in the first half of the year and a CNY2.3 billion
(US$335 million) loss for January-September.

Various reports say that the airline forecasts a full-year loss.
"As the fourth quarter is the traditional offseason for the
aviation industry and the demands in the aviation markets may not
be revived in the near future, the company expects to record a
loss for the year 2008," the carrier said in a statement to the
Hong Kong Stock Exchange, AP relates.

Irene Shen of Bloomberg News writes that the airline lost money
from hedging after jet-fuel prices plunged about a third in the
quarter, leaving them with contracts to buy fuel for more than
market rates.  China Eastern also flew fewer people because of
travel restrictions imposed for the Beijing Olympics and an
economic slowdown.

On October 10, 2008, the Troubled Company Reporter - Asia Pacific,
citing Biz China News, reported that China Eastern blamed the
Chinese government's strict visa regulations for the 23% drop in
passengers for August.  According to the TCR-AP, International Air
Transport Association (IATA) said that the global financial crisis
is affecting the aviation industry, notably in Asia.  Low summer
demands in China and Japan and huge potential aviation losses in
India are key factors, IATA said.

Meanwhile, Bloomberg News cited Jack Xu, a Shanghai-based Sinopac
Securities Co. analyst. as saying, "Job cuts and cost controls
will continue to damp airlines' ticket sales.  Demand won't
recover before the second half of next year."

Meanwhile, Bloomberg adds that China Southern's shares have
plunged more than 83% in both Shanghai and Hong Kong this year as
part of a wider sell-off of Chinese stocks and because of concerns
about slowing demand.

                     About China Eastern

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

                          *     *     *

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


CHINA EASTERN: Gets Approval to Resume Yunnan Routes
----------------------------------------------------
China, China Eastern Airlines Corporation Limited has received
approval from the country's aviation authority to resume two
routes in Yunnan Province from Sunday, after a half-year
suspension due to a mid-air strike by its pilots, Shanghai Daily
News reports.

On April 29, 2008, the Troubled Company Reporter - Asia Pacific,
citing various reports, said that the Southwest Management Bureau
of the Civil Aviation Administration of China (CAAC) has suspended
China Eastern Airlines Corporation Limited's flights for the
returned flights incident earlier this month.  The TCR-AP
recounted that some pilots of China Eastern Airlines' flights
refused to land at their destinations and instead returned to
their departure point on March 31.

The pilots were reportedly seeking higher wages and freedom to
work for another airline.  About 1,000 passengers were stranded at
Kunming Airport in the southern China.  A total of 21 flights from
southeastern Yunnan province were affected.  Some pilots and the
general manager of China Eastern's Yunnan unit were suspended.

According to the TCR-AP, China Eastern has been fined
CNY1.5 million (US$215,000) for the pilots' strike, and as
punishment CAAC asked the airline to stop the flights between
Kunming and Xishuangbanna, and to Dali, and were suspended from
May 4.  The company's flights between Kunming and Lijiang, and
Kunming and Zhongdian as well as a number of other cities have
also been reduced, the same report related.

The TCR-AP notes that all the suspended flights of China Eastern
will be run by Air China, Shenzhen Airlines, Lucky Air and West
Air, of which, the Yunming airport based Lucky Air will be the
biggest beneficiary.

According to the Daily, the seven flights will now be available in
the two routes, from the Yunnan provincial capital Kunming City to
Dali and Xishuangbanna, and the other six routes in the province,
will also resume normal operation.

Officials with the southwest branch of the Civil Aviation
Administration of China, the Daily notes, said the resumption was
approved after China Eastern improved its operations and it
contributed to rescue efforts after the May 12 earthquake in
Sichuan Province.

The resumption will coincide with the air authority's new
winter/spring flight schedule, which runs from October 26 through
March 28, the Daily says.

The Daily adds that following the resumption, flights by other
carriers including Air China, Shenzhen Airlines, Lucky Air and
China West Air will be reduced or even halted.

                       About China Eastern

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

                          *     *     *

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


ICBC: Plans to Invest in a Philippine-Based Thrift Bank
-------------------------------------------------------
The Industrial and Commercial Bank of China is looking to invest
in a thrift bank owned by a Philippine state pension fund, Reuters
reports.

The report relates that ICBC will make a capital infusion in GSIS
Family Savings Bank as a third party investor.

"Hopefully, there would be an early completion of this discussion
between the Industrial and Commercial Bank of China and local
counterpart here, the GSIS Family Savings Bank.   This will serve
as a magnet for other investors to come in.  Together with this
bank will be its numerous clients who will look seriously into the
Philippines as well," Reuters cited Finance Secretary Margarito
Teves as saying.

ICBC Chairman Jiang Jianqing has already informed Philippine
President Gloria Macapagal-Arroyo of his bank's intention to
invest in the Philippines, the report discloses.

According to Reuters, GSIS said ICBC was seeking a commercial
banking license from the central bank to operate and engage in
expanded foreign currency deposit units, trust and quasi-banking
operations.  ICBC plans to open 20 more branches of GSIS Family
Savings Bank, a wholly owned subsidiary of the pension fund, and
relocate 12 of its existing 22 branches located mostly in the
outskirts of the capital Manila, the report says.

GSIS had said it wants to sell a 42% stake in its banking arm, but
ICBC is seeking the pension fund's decision on whether or not it
was prepared to become a minority shareholder in the bank, the
report notes.

                         About ICBC

The Industrial and Commercial Bank of China --
http://www.icbc.com.cn/-- is the largest state-owned commercial
bank, and is authorized by the State Council and the People's
Bank of China.  ICBC conducts operations across China as well as
in major international financial centers.

                          *     *     *

ICBC continues to carry Fitch Ratings' Individual D/E rating.

On May 4, 2007, Moody's Investors Service affirmed Industrial &
Commercial Bank of China Ltd's Bank Financial Strength Rating at
D-.  The outlook for BFSR is stable.  The outlook for the long-
term deposit rating is positive.

Net income for the second quarter of 2008 was US$0.8 million, down
66%


XINHUA FINANCE: Net Income Down 66% to US$0.8MM in 2nd Qtr. 2008
----------------------------------------------------------------
Xinhua Finance Media, a unit of Xinhua Finance Limited, disclosed
unaudited financial results for the second quarter ended
June 30, 2008.

   Net Revenue

Net revenue for the second quarter of 2008 was US48.9 million, up
69% year-over-year from US$29.0 million in the second quarter of
2007, or up 33% sequentially from US$36.7 million in the first
quarter of 2008.

   Net Revenue by type and business group

The following is a summary of net revenue by business group
reconciled to types of revenue provide

   Advertising Group

Net revenue for the Advertising Group for the second quarter of
2008 was US$29.9 million, up 79% year-over-year from US$16.7
million in the second quarter of 2007, or up 39% sequentially from
US$21.5 million in the first quarter of 2008.

  Broadcast Group

Net revenue for the Broadcast Group for the second quarter of 2008
was US$14.0 million, up 92% year-over-year from US$7.2 million in
the second quarter of 2007 or up 29% sequentially from US$10.8
million in the first quarter of 2008.

   Print Group

Net revenue for the Print Group for the second quarter of 2008 was
US$5.0 million, up 1% year-over-year from the second quarter of
2007, or up 14% sequentially from US$4.4 million in the first
quarter of 2008.  The year-over-year decrease in the magazine
group is mainly due to the regulatory environment which causes
delay in launch of certain marketing events.

  Gross Profit

Gross profit for the second quarter of 2008 was US$21.1 million,
up 80% year-over-year from US$11.8 million in the second quarter
of 2007, or up 61% sequentially from US$13.1 million in the first
quarter of 2008.  Adjusted gross profit (non-GAAP), defined as
gross profit before amortization of intangible assets from
acquisitions, for the second quarter of 2008 was US$22.9 million,
up 77% year-over-year from US$12.9 million in the second quarter
of 2007 or up 51% sequentially from US$15.1 million in the first
quarter of 2008.  We provide adjusted gross profit to break out
the amortization of intangible assets from acquisitions charged
within the cost of revenue. Chart 6 provides a breakdown of
adjusted gross profit by business group.

   Operating Expenses

Operating expenses for the second quarter of 2008 were US$16.9
million, up 87% year-over-year from US$9.0 million in the second
quarter of 2007 or down 13% sequentially from US$19.3 million in
the first quarter of 2008. The year-on-year increase is mainly due
to an increase in selling and marketing expenses in line with
increased revenue, and costs for Sarbanes-Oxley compliance.
Operating expenses were down 13% sequentially because share-based
compensation expenses were mainly accounted for in the first
quarter of 2008.

Total operating expenses were composed of selling and marketing
expenses and general and administrative expenses.  Selling and
marketing expenses for the second quarter of 2008 were US$5.6
million, up 76% year-over-year from US$3.2 million in the second
quarter of 2007, or up 8% sequentially from US$5.1 million in the
first quarter of 2008.

General and administrative expenses for the second quarter of 2008
were US$11.3 million, up 94% year-over-year from US$5.8 million in
the second quarter of 2007, or down 20% sequentially from US$14.1
million in the first quarter of 2008.

   Adjusted EBITDA (non-GAAP)

Adjusted EBITDA (non-GAAP) for the second quarter of 2008 was
US$10.7 million, up 97% year-over-year from US$5.4 million in the
second quarter of 2007, or up 248% sequentially from US$3.1
million in the first quarter of 2008. For a reconciliation to
adjusted EBITDA from income from operations, refer to Chart 8.

   Net Income and Adjusted Net Income (non-GAAP)

Net income for the second quarter of 2008 was US$0.8 million, down
66% year-over-year from US$2.3 million in the second quarter of
2007, or up sequentially from a net loss of US$8.3 million in the
first quarter of 2008.  The primary reasons for the year-on-year
decline are an increase in net interest expenses, costs for
Sarbanes-Oxley compliance, and tax expenses.

Adjusted net income (non-GAAP), defined as net income before one-
time items, amortization of intangible assets from acquisitions,
share-based compensation expenses and imputed interest, for the
second quarter of 2008 was US$7.6 million, up 22% year-over-year
from US$6.3 million in the second quarter of 2007 or up 437%
sequentially from US$1.4 million in the first quarter of 2008.

   Outlook for third quarter and full year of 2008

XFMedia estimates its net revenue for the third quarter of 2008
will range from US$52 million to US$54 million.  Third quarter
adjusted net income per ADS is estimated to range from US$0.11 to
US$0.12 per diluted ADS.

XFMedia is raising its estimate of net revenue for full year 2008
to range from US$198 million to US$208 million, from previously
forecasted range of US$195 million to US$205 million.  Adjusted
net income per ADS for full year 2008 is estimated to range from
US$0.33 to US$0.35 per diluted ADS, from previously forecasted
range o fUS$0.31 to US$0.33 per diluted ADS.

This forecast reflects XFMedia's current and preliminary view,
which is subject to change.

                    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.



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

BRILLIANT SMART: Court to Hear Wind-Up Petition on November 19
--------------------------------------------------------------
A petition to have Brilliant Smart Engineering Limited's
operations wound up will be heard before the High Court of Hong
Kong on November 19, 2008, at 9:30 a.m.

Au-Yeung Chi Keung filed the petition against the company on
September 17, 2008.


CHINA AMPLE: Court Enters Wind-Up Order
---------------------------------------
On October 8, 2008, the High Court of Hong Kong entered an order
to have China Ample Development Limited's operations wound up.


DESU INDUSTRIES: Court to Hear Wind-Up Petition on November 19
--------------------------------------------------------------
A petition to have Desu Industries Development Company Limited's
operations wound up will be heard before the High Court of Hong
Kong on November 19, 2008, at 9:30 a.m.

Chan Lok Man filed the petition against the company on September
17, 2008.


GENMAY INDUSTRIES: Court to Hear Wind-Up Petition on November 26
----------------------------------------------------------------
The High Court of Hong Kong will hear on November 26, 2008, at
9:30 a.m., a petition to have Genmay Industries Limited's
operations wound up.

The Hong Kong and Shanghai Banking Corporation Limited filed the
petition against the company on September 23, 2008.

The Petitioner's solicitors are:

           JSM
           Prince's Building, 18th Floor
           10 Chater Road, Central
           Hong Kong


GOLDEN DOME: Court Hears Wind-Up Petition
-----------------------------------------
A petition to have Golden Dome (H.K.) Cabaret Show International
Co. Limited's operations wound up was heard before the High Court
of Hong Kong on October 29, 2008.

Orient Loyal International Limited filed the petition against the
company.


GOLDNICE TEXTILES: Court Enters Wind-Up Order
---------------------------------------------
On October 8, 2008, the High Court of Hong Kong entered an order
to have Goldnice Textiles Limited's operations wound up.


GOOD VIEW: Court Enters Wind-Up Order
-------------------------------------
On October 8, 2008, the High Court of Hong Kong entered an order
to have Good View Construction Engineering Limited's operations
wound up.


GRIFFIN INDUSTRIES: Court Enters Wind-Up Order
----------------------------------------------
On October 8, 2008, the High Court of Hong Kong entered an order
to have Griffin Industries Limited's operations wound up.


INFINITE LOGISTICS: Court Enters Wind-Up Order
----------------------------------------------
On October 8, 2008, the High Court of Hong Kong entered an order
to have Infinite Logistics Service Limited's operations wound up.


KANSA GENERAL: Creditors' Proofs of Debt Due on November 14
-----------------------------------------------------------
The creditors of Kansa General International Insurance Company
Limited are required to file their proofs of debt by November 14,
2008, to be included in the company's dividend distribution.

The company's liquidator is:

          Nicholas Timothy
          Cornforth Hill
          MassMutual Tower
          Rooms 1101-03, 11th Floor
          38 Gloucester Road
          Wan Chai, Hong Kong


KING'S STAR: Wind-Up Petition Hearing Set for November 19
---------------------------------------------------------
A petition to have King's Star Jewellery Company Limited's
operations wound up will be heard before the High Court of Hong
Kong on November 19, 2008, at 9:30 a.m.

Standard Chartered Bank (Hong Kong) Limited filed the petition
against the company on September 17, 2008.

Standard Chartered Bank's solicitors are:

          Tsang, Chan & Wong
          Wing On House, 16th Floor
          No. 71 Des Voeux Road Central
          Hong Kong


LBQ HONG KONG: Appoints Provisional Liquidators
-----------------------------------------------
On October 9, 2008, Edward Middleton and Patrick Cowley were
appointed as provisional liquidators of LBQ Hong Kong Funding
Limited.

The Liquidators can be reached at:

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


LEHMAN BROTHERS: Appoints Provisional Liquidators
-------------------------------------------------
On October 9, 2008, Edward Middleton and Patrick Cowley were
appointed as provisional liquidators of Lehman Brothers Nominees
(H.K.) Limited.

The Liquidators can be reached at:

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


MIND FULL: Court Enters Wind-Up Order
-------------------------------------
On October 8, 2008, the High Court of Hong Kong entered an order
to have Mind Full Limited's operations wound up.


SINCERITY ENGINEERING: Court Enters Wind-Up Order
-------------------------------------------------
On October 8, 2008, the High Court of Hong Kong entered an order
to have Sincerity Engineering International Limited's operations
wound up.


SONITE LIMITED: Court Enters Wind-Up Order
------------------------------------------
On October 8, 2008, the High Court of Hong Kong entered an order
to have Sonite Limited's operations wound up.


TIC TAC: Court Enters Wind-Up Order
-----------------------------------
On October 3, 2008, the High Court of Hong Kong entered an order
to have Tic Tac Oro Limited's operations wound up.

Chan Kin Hang Danvil and Chan Man Yin are the company's
liquidators.


YAT HING: Court Enters Wind-Up Order
------------------------------------
On October 8, 2008, the High Court of Hong Kong entered an order
to have Yat Hing Poultry Limited's operations wound up.



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

BAKRIE GROUP: Suspended Major Units Await New Investors
-------------------------------------------------------
The Indonesian Stock Exchange (IDX) will continue to suspend
shares of some major firms controlled by the Bakrie family, which
include -- PT Bumi Resources; PT Energy Mega Persada; and and PT
Bakrie & Brothers -- until new investors settle a deal to acquire
stake in the firm's units, The Jakarta Post reports.

"We haven't heard anything from them.  We are still waiting for
the latest developments on their negotiation to sell stake.  The
information is crucial", IDX President Director Erry Firmansyah
was quoted by The Post as saying.

The report, citing Mr. Erry, adds that if the 35 percent stake (in
Bumi) be purchased by other parties, there will be a change in the
management and this would eventually affect the entire market.

However, The Post notes a source familiar with the deal said that
the negotiations to buy the Bumi stake had been complicated as the
Bakries had demanded they retain majority ownership of Bumi by
offering to buy back 20 percent of the shares within three years.

The potential buyers include U.S.-based private equity firm Texas
Pacific Group, India's Tata Group and a consortium of state
companies -- PT Tambang Batubara Bukit Asam, PT Timah and PT Aneka
Tambang, the report relates.

Citing Antara News, the Troubled Company Reporter-Asia Pacific
reported on October 10, that the share trading in six companies
owned by Bakrie Group were suspended on October 7, as its shares
dropped by between a quarter and more than 40%.

The value of the committed shares was initially estimated at
US$6 billion, but plunged to US$1.35 billion on Oct. 6, prompting
creditors to demand Bakrie to inject money back into the units to
ensure their worth as collateral, or risk the assets being seized,
The Post said.



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

NOMURA HOLDINGS: Shares Fall on Quarterly Loss
----------------------------------------------
Nomura Holdings Inc.'s shares fell to the lowest in a decade in
Tokyo trading after posting a wider-than-expected second-quarter
loss, putting it on course for a record full-year deficit,
Takahiko Hyuga of Bloomberg News reports on October 29.

The company, the report relates, dropped as much as 7.8% and
traded down 5.1% at JPY860, the lowest since October 1998, as of
the 11 a.m., October 29, trading break on the Tokyo Stock
Exchange.  The benchmark Topix index rose 5.3%.

On October 29, 2008, the Troubled Company Reporter - Asia Pacific,
citing Bloomberg News, reported that Nomura Holdings incurred a
net loss of JPY72,872 million for the three months ended Sept. 30,
2008, from a net loss of JPY11,707 million in the same period last
year.  Net revenue for the current quarter was JPY128,065 million,
a decrease of 5.2% from JPY176,700 million in the same period last
year, the same report related.

The second-quarter result compares with a median estimate of a
CNY9 billion loss by five analysts surveyed by Bloomberg News and
marks the first time Nomura has posted three consecutive quarterly
deficits.  "The negative earnings were a surprise.  Investors'
anxiety about the financial markets has intensified," Bloomberg
cited Fumiyuki Nakanishi, an equity strategist at Sumitomo Mitsui
Financial Group Inc. in Tokyo as saying.

Moreover, Nomura's first-half loss swelled to CNY149.5 billion,
exceeding its record CNY67.8 billion full-year deficit for fiscal
2007, the report says.  The TCR-AP, citing Reuters, added that
Nomura had said it may have to post losses on a US$425 million
position related to Iceland and further write down its stake in
Fortress Investment Group.

Meanwhile, Bloomber News says that Nomura Holdings also said that
may spend US$2 billion to integrate 8,000 workers acquired from
Lehman Brothers Holdings Inc. in Asia, Europe and the Middle East.

"The earnings contribution of Lehman Brothers remains unclear, and
we think the benefits could be small compared with the risks,"
Makoto Kasai, an analyst at Nikko Citigroup Ltd., was quoted by
Bloomberg News as saying.

Another TCR-AP report on October 2, citing Reuters, related that
Nomura Holdings plans to match last year's bonus pool for bankrupt
Lehman Brothers's Asia group, aimed to prevent Lehman bankers from
leaving.

According to the TCR-AP, the exact size of the bonus pool and
exactly who is entitled to it is unclear, with top performers
expected to get first claim.  Lehman's Asia-based bankers will be
offered cash for their 2008 bonus, and in some cases, 2009 bonus
money will be guaranteed as well, the same report noted.  Media
and trader reports indicated that Nomura would also keep Lehman's
Europe and the Middle East 2008 bonus pool the same as 2007, the
same report added.

Bloomberg News points out that Maki Hanatate, senior credit
officer at Moody's Japan KK, said that, "Nomura's operating
expense burden will temporarily increase as a result of its recent
acquisition of Lehman Brothers' franchise in Asia and segments of
its European and Middle Eastern operations, which will further
pressure its profitability."

                    About Nomura Holdings

Headquartered in Tokyo, Japan, Nomura Holdings Inc. --
http://www.nomura.com/-- is a securities and investment banking
firm in Japan and has worldwide operations.  Nomura is a holding
company.  The services it provides include trading, underwriting,
and offering securities, asset management services, and others. As
of March 31, 2008, it operated offices in about 30 countries and
regions, including Japan, the United States, the United Kingdom,
Singapore and Hong Kong through its subsidiaries.  The Company's
customers include individuals, corporations, financial
institutions, governments and governmental agencies.  Nomura
operates in five business divisions: domestic retail, global
markets, global investment banking, global merchant banking and
asset management.  In February 2007, Nomura acquired Instinet
Incorporated.  Effective Oct. 1, 2008, Nomura Holdings Inc.
acquired Lehman Brothers Holdings Inc.'s European equities and
investment-banking business, and decided not to take on the fixed-
income unit.

                        *     *     *

Nomura Holdings still carries Fitch Ratings' 'C' individual
rating, and Support Rating Floor at 'B'.

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


* JAPAN: S&P Says Recapitalization Offers Breif Relief to Banks
---------------------------------------------------------------
Standard & Poor's Ratings Services said that a proposed bank
recapitalization bill for Japanese small and midsize financial
institutions would temporarily support their capitalization, but
would probably not lead to a fundamental improvement in their
credit quality.  The relevant bill to revive and amend the banking
function enhancement law has been submitted to the Diet.

As the new bank recapitalization bill would cover financial
institutions outside the scope of protection offered by the
current Deposit Insurance Law, it would likely expand and enhance
the safety net for Japan's financial system and have a positive
effect on the overall capitalization of Japanese financial
institutions.  However, the key challenges for Japanese small and
midsize financial institutions stem from their relatively weak
profitability compared to larger counterparts, after incorporating
credit costs.  While the introduction of the new law could
temporarily bolster capitalization at these smaller institutions,
it alone would not lead to a significant improvement in their
creditworthiness unless it is accompanied by their own drastic
efforts to improve profitability, such as improving operational
efficiency or net interest margins.

Within the existing legal framework, Article 102 of the Deposit
Insurance Law allows the government to inject capital into
financial institutions with the use of public funds*.  The law
stipulates that such funds can only be used in the event that
extremely serious impediments are expected at the national or
certain regional level, relating to the possible bankruptcy of
financial institutions.  As such, the existing law would likely
cover only the nation's major banks, regional banks that are
predominant in their respective regions, or regional banks of
equivalent size.  Meanwhile, the banking function enhancement law,
which took effect in August 2004, had allowed small and midsize
institutions to receive public fund infusions until its expiration
in March 2008.  Currently, no scheme exists whereby public funds
maybe injected into small and midsize financial institutions.  The
reintroduced banking function enhancement law would cover all
financial institutions, but it would mainly target small and
midsize financial institutions.  Amid growing uncertainty over the
Japanese economy and securities markets, it is hoped that the
aforementioned capital injection scheme currently before the Diet
would rebuild the safety net for small and midsize financial
institutions, thereby supporting the overall credit quality of
Japan's financial system.

As stated previously, despite the recovery of the Japanese economy
in recent years, small and midsize financial institutions have
weaker profitability than major banks and major regional players
after incorporating credit costs.  In addition, profitability at
smaller institutions has also exhibited a general downtrend.  The
financial standings of small and midsize institutions vary from
bank to bank and it is therefore difficult to generalize, but
smaller institutions such as second-tier regional banks, Shinkin
banks, and credit cooperatives (Shinyo Kumiai) are generally
slower to improve profitability and asset quality than major banks
or tier-one regional banks.

As an example, if S&P compares average loan-to-deposit margins,
after incorporating credit costs and expenses, between second-tier
regional banks and tier-one regional banks or major banks, the
ratio of second tier regional banks was 0.26%, on average, in the
three fiscal years through March 2008, which is lower than that of
tier one regional banks (0.38%) and that of the nation's major
banks (0.50%).  These margins were computed by S&P, based on
publicly available information.  Also, the ratio of credit costs
to loans for fiscal 2007 was 0.44% at second-tier regional banks,
exceeding that at tier-one regional banks (0.33%) and that at the
major banks (0.29%).  Furthermore, the loan-to-deposit margin
before incorporating expenses and credit costs declined for the
fourth consecutive fiscal year in fiscal 2007 at second-tier
regional banks, while the major banks and first tier regional
banks showed improvement in the same fiscal year.  As the economy
seems to be entering a recessionary phase, S&P expects small and
midsize financial institutions to face even tougher conditions in
which to generate profits.

Taking these factors into account, S&P believes the new capital
injection scheme would support the capitalization of small and
midsize institutions temporarily, but would not improve their
creditworthiness over the medium to long term unless accompanied
by reform of their profit-generating structures, such as expanding
net interest margins or improving expense ratios through thorough
restructuring.  The enactment of the new law would not lead to any
rating actions by S&P because the rated major banks, in addition
to Norinchukin Bank (A+/Negative/A-1), Shinkin Central Bank
(A+/Stable/A-1+) and the 26 rated regional banks, including the
second-tier Keiyo Bank Ltd., are relatively large and unlikely to
benefit directly from the scheme.

* The law allows the government to inject capital into financial
institutions when it recognizes the strong likelihood of a
financial crisis, following deliberations at the financial crisis
council.



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

NIKKO ELECTRONICS: Avery Technologies Demands US$21,158.60 Payment
------------------------------------------------------------------
Messrs. Shook Lin & Bok, Advocates & Solicitors acting for Avery
Technologies (S) Pte Ltd (ATPL) has served a notice to Nikko
Electronics Bhd., demanding the payment of US$21,158.60 due to
them as at August 1, 2008.  ATPL is also claiming interest at the
rate of 1.0% per month to be compounded monthly from August 2,
2008, until the date of full settlement.

Nikko is given 21 days from October 28, 2008, to settle the
outstanding amount, failing which, winding up proceedings will be
taken against the company.

Nikko is seeking the necessary legal advice to resolve and defend
against this matter.

                          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.


OLYMPIA INDUSTRIES: To Hold 27th Annual Meeting on November 21
--------------------------------------------------------------
The members of Olympia Industries Berhad will hold their 27th
Annual General Meeting at the Ballroom, Mezzanine Floor, Hotel
Equatorial Kuala Lumpur, in Jalan Sultan Ismail, 50250 Kuala
Lumpur on November 21, 2008 at 9.30 a.m.  At the meeting, the
members will be asked to:

   * receive and adopt the Audited Financial Statements for the
     financial year ended June 30, 2008, together with the
     Reports of the Directors and Auditors;

   * approve the payment of Directors' fees for the financial
     year ended June 30, 2008,

   * re-elect these Directors who retire in accordance with
     Article 80 of the Company’s Articles of Association:

     -- Looi Kheng Hwa; and
     -- Chua Thear Sua

   * re-elect Tuan Haji Hamdan bin Yahya as a Director retiring in
     accordance with Article 87 of the company’s Articles of
     Association; and

   * re-appoint Messrs Ernst & Young as auditors of the company
     and to authorize the Directors to fix their remuneration.

To consider and, if thought fit, pass with or without any
modification, these Ordinary Resolutions:

   * Authority  to  issue  shares pursuant to Section 132D of the
     Companies Act, 1965;

   * Proposed Renewal of Shareholders' Mandate for Recurrent
     Related Party Transactions of a revenue or trading nature and
     Proposed Renewal of General Mandate for Provision of
     Financial Assistance; and

   * Proposed Renewal of Shareholders' Mandate for Recurrent
     Related Party Transactions of a revenue or trading nature and
     Proposed Renewal of General Mandate for Provision of
     Financial Assistance;

                     About Olympia Industries

Headquartered in Kuala Lumpur, Malaysia, Olympia Industries
Berhad -- http://www.oib.com.my-- is an investment holding
company that provides management services to its subsidiaries.
The Company, through its subsidiaries, is engaged in property
development and management; organizing, managing numbers
forecast pools and public lotteries; paint spraying of aluminum,
other metal products and related architectural products; civil,
building construction works, construction of storage tanks and
engineering; stock broking and other financial services; food
and beverage business; maintaining and operating Internet-based
transaction facilities and services; servicing of oil and gas
pipelines, and operation of travel agencies. In October 2006,
the Company increased its interest in Jupiter Securities Sdn Bhd
from 60.06% to 70.57%.

                          *     *     *

The company is currently operating pursuant to a restructuring
scheme.

As reported by the Troubled Company Reporter-Asia Pacific on
August 6, 2008, MARC affirmed its BB- rating of Olympia
Industries Berhad's (OIB) MYR137,124,246 nominal value
Redeemable Unsecured Loan Stocks (RULS).  The rating outlook is
stable.


WELLI MULTI: Subsidiary Faces Wind-Up Petition
----------------------------------------------
Welli Edible Oil Sdn Bhd (WEO), a wholly-owned subsidiary of Welli
Multi Corporation Berhad, has been served with a wind-up petition
for an outstanding balance debt of MYR300,000 with interest rate
of 8% per annum.

Currently, WEO's lawyer is in the process of challenging the
claim.

                        About Welli Multi

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

                          *     *     *

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

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

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



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

AIR NEW ZEALAND: Charity Group Slams Request for Higher Subsidies
-----------------------------------------------------------------
NZPA reported that Oxfam International, a charitable organization,
criticized Air New Zealand's request for higher subsidies from
some small Pacific Island nations for services between them and
the United States.

According to NZPA, "Air New Zealand has told the Samoan, Tongan
and Cook Island governments that the weekly links to Los Angeles
from Auckland via Tonga and Apia, and another via Rarotonga, are
in question."  Specifically, the report noted, "the airline told
the Cook Islands government that the present subsidy of $2 million
for its Los Angeles flights needs to increase to $8 million if
these stopovers are to continue."

NZPA quoted Oxfam's executive director Barry Coates as saying: "It
is unacceptable for Air New Zealand to demand steep increases in
payments from New Zealand's Pacific neighbours at a time of
economic turmoil and uncertainty."

Citing a statement from Air New Zealand, NZPA related that the
airline contends "it has been open and transparent with Pacific
governments about the declining performance of the flights and
discussions were continuing on whether they could be maintained."

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

                          *     *     *

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

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

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


BEST YIELD: High Court to Hear Wind-Up Petition on November 14
--------------------------------------------------------------
On June 26, 2008, an application to put Best Yield Property
Trading Limited into liquidation was filed in the High Court at
Auckland.

The application is to be heard before the High Court at Auckland
on November 14, 2008, at 10:00 a.m.

The plaintiff is the Commissioner of Inland Revenue, whose address
for service is Inland Revenue Department, Legal and Technical
Services, 17 Putney Way (PO Box 76198), Manukau, Auckland 2241.
Telephone: (09) 985 7274. Facsimile: (09) 985 9473.

The plaintiff's solicitor is Sandra Joy North.


CANBRACE LIMITED: Shareholders Appoint Joint Liquidators
--------------------------------------------------------
Iain Bruce Shephard and Christine Margaret Dunphy were appointed
jointly and severally as liquidators of Canbrace Limited pursuant
to a special resolution of shareholders entered on October 7,
2008.

The liquidators can be reached at:

     Shephard Dunphy Limited
     Zephyr House, Level 2
     82 Willis Street
     Wellington
     Telephone: (04) 473 6747
     Facsimile: (04) 473 6748


CBW LIMITED: Shareholders Appoint Joint Liquidators
---------------------------------------------------
Iain Bruce Shephard and Christine Margaret Dunphy were appointed
jointly and severally as liquidators of CBW Limited pursuant to a
special resolution of shareholders entered on October 7, 2008.

The liquidators can be reached at:

     Shephard Dunphy Limited
     Zephyr House, Level 2
     82 Willis Street
     Wellington
     Telephone: (04) 473 6747
     Facsimile: (04) 473 6748


CBW MANAGEMENT LIMITED: Shareholders Appoint Joint Liquidators
--------------------------------------------------------------
Iain Bruce Shephard and Christine Margaret Dunphy were appointed
jointly and severally as liquidators of CBW Management Limited
pursuant to a special resolution of shareholders entered on
October 7, 2008.

The liquidators can be reached at:

     Shephard Dunphy Limited
     Zephyr House, Level 2
     82 Willis Street
     Wellington
     Telephone: (04) 473 6747
     Facsimile: (04) 473 6748


D.L. STOUT: Creditors Must File Claims by December 12
-----------------------------------------------------
John Howard Ross Fisk, chartered accountant, and Craig Alexander
Sanson, insolvency practitioner, both of Wellington, were
appointed joint and several liquidators of D.L. Stout & Sons
Limited on October 13, 2008.

The deadline for creditors to file their proofs of claim is
December 12, 2008.

Claims are to be forwarded and creditors and shareholders may
direct enquiries to:

     PricewaterhouseCoopers
     113-119 The Terrace
     PO Box 243, Wellington
     Telephone: (04) 462 7489
     Facsimile: (04) 462 7492
     Attention: Sandra Pearson


D.M. BARNES: Faces CIR's Wind-Up Petition
-----------------------------------------
On September 9, 2008, an application to put D.M. Barnes Limited
into liquidation was filed in the High Court at Tauranga.  The
application is to be heard before the High Court at Rotorua on
November 17, 2008, at 10:45 a.m.

The plaintiff is the Commissioner of Inland Revenue, whose address
for service is Inland Revenue Department, Ascot House, 72-82 Bank
Street (PO Box 1649), Whangarei.

The plaintiff's solicitor is:

     H. M. BOOTH
     Ronayne Hollister-Jones Lellman
     Monmouth House, 1st Floor
     41 Monmouth Street
     PO Box 13063, Tauranga


HAMILTON S.A.O.G.: Court to Hear Wind-Up Petition on November 7
---------------------------------------------------------------
On June 26, 2008, an application to put Hamilton S.A.O.G.
Contracting Enterprises Limited into liquidation was filed in the
High Court at Auckland.

The application is to be heard before the High Court at Auckland
on November 7, 2008, at 10:00 a.m.

The plaintiff is the Commissioner of Inland Revenue, whose address
for service is Inland Revenue Department, Legal and Technical
Services, 17 Putney Way (PO Box 76198), Manukau, Auckland 2241.
Telephone: (09) 985 7274. Facsimile: (09) 985 9473.

The plaintiff's solicitor is Sandra Joy North.


HOLE IN THE WALL: Creditors Must File Claims by November 3
----------------------------------------------------------
Malcolm Grant Hollis, chartered accountant, and Rhys Cain,
insolvency practitioner, both of Christchurch, were appointed
joint and several liquidators of Hole in the Wall Caterers Limited
by the High Court on October 13, 2008, at 10:08 a.m.

The deadline for creditors to file their proofs of claim is
November 3, 2008.

Claims are to be forwarded and creditors and shareholders may
direct enquiries to:

     Hole in the Wall Caterers Limited (in liquidation)
     c/o PricewaterhouseCoopers
     119 Armagh Street
     PO Box 13244, Christchurch
     Telephone: (03) 374 3000
     Facsimile: (03) 374 3001
     Attention: Rebecca Almond


MIH LIMITED: High Court Appoints Joint Liquidators
--------------------------------------------------
John Howard Ross Fisk, chartered accountant, and Craig Alexander
Sanson, insolvency practitioner, both of Wellington, were
appointed joint and several liquidators of MIH Limited on
October 13, 2008.

The deadline for creditors to file their proofs of claim is
December 12, 2008.

Claims are to be forwarded and creditors and shareholders may
direct enquiries to:

     PricewaterhouseCoopers
     113-119 The Terrace
     PO Box 243, Wellington
     Telephone: (04) 462 7489
     Facsimile: (04) 462 7492
     Attention: Sandra Pearson


MR Plan Ltd: Shareholders Appoint Joint Liquidators
---------------------------------------------------
Iain Bruce Shephard and Christine Margaret Dunphy were appointed
jointly and severally as liquidators of MR Plan Limited pursuant
to a special resolution of shareholders entered on October 7,
2008.

The liquidators can be reached at:

     Shephard Dunphy Limited
     Zephyr House, Level 2
     82 Willis Street
     Wellington
     Telephone: (04) 473 6747
     Facsimile: (04) 473 6748


PETRANZ LTD: Faces CIR's Wind-Up Petition
-----------------------------------------
On July 14, 2008, an application to put Petranz Limited into
liquidation was filed in the High Court at Auckland.

The application is to be heard before the High Court at Auckland
on November 14, 2008, at 10:45 a.m.

The plaintiff is the Commissioner of Inland Revenue, whose address
for service is Inland Revenue Department, Legal and Technical
Services, 17 Putney Way (PO Box 76198), Manukau, Auckland 2241.
Telephone: (09) 985 7274. Facsimile: (09) 985 9473.

The plaintiff's solicitor is Sandra Joy North.


WHANGARIPO HORTICULTURE: Claims Filing Deadline Is November 17
--------------------------------------------------------------
Gregory John Sherriff, insolvency specialist, and David Stuart
Vance, chartered accountant, were appointed liquidators jointly
and severally of Whangaripo Horticulture Limited by the High Court
at Palmerston North on October 13, 2008.

The deadline for creditors to file their proofs of claim is
November 17, 2008.

Enquiries for information relating to the liquidation may be made
to Logan Nicholls at:

     Deloitte
     Deloitte House, Levels 11-16
     10 Brandon Street
     Wellington 6011
     Postal Address: PO Box 1990, Wellington 6140
     Telephone: (04) 472 1677
     Facsimile: (04) 472 8023


* NEW ZEALAND: CMBS Markets Still Stable, S&P Reports
-----------------------------------------------------
Australia's AU$10.4 billion commercial mortgage-backed securities
(CMBS) market continues to perform within expectations.  This is a
key finding in the latest issue of Australia & New Zealand CMBS
Performance Watch, published by Standard & Poor's Ratings
Services.

There has been no new issuance in the CMBS market in 2008.  The
existing programs are performing well; all have high occupancy
levels, and, on average, high weighted-average lease durations.

"This indicates that the lease profiles are well managed across
the programs," S&P's credit analyst Alisha Treacy said.

"Although some property values have fallen during the six months
to June 2008, we have not detected any significant changes to
capital values on a total portfolio basis.  This is partly due to
the on-going revaluation of secured properties.  About 55% have
been revalued this year."

Some properties have reported income reductions this year.  On a
portfolio basis, reductions in income have generally been
restricted to those programs that sold assets during the reporting
period and retained cash reserves.

S&P expects the CMBS sector to remain quiet for the remainder of
2008.  With approximately 40% of the total outstanding Australian
CMBS debt due to mature in 2009, new issuance may pick-up next
year.  Nevertheless, events in global capital markets are likely
to determine the form that future financing activity will take.

The report, Australia & New Zealand CMBS Performance Watch – June
2008, provides comprehensive analysis of the performance of CMBS
transactions in Australia and New Zealand, and valuable insight
into the performance of both asset and debt levels.  The report is
produced on a half-yearly basis and provides data that is
comparable among programs.



===============
P A K I S T A N
===============

* Moody's Cuts Pakistan's Ratings to B3 & Keeps Ratings on Review
-----------------------------------------------------------------
Moody's Investors Service has lowered the Pakistani government's
bond ratings from B2 to B3 and kept the ratings on review for
downgrade. In September 2008, Moody's had moved the outlook from
stable to negative.

"The rating action was prompted by the continuing erosion of the
country's external liquidity position, which has remained
inadequately addressed by policy adjustments and has suffered from
delays in assistance from key bilateral and multilateral
creditors," says Aninda Mitra, Moody's sovereign analyst for
Pakistan.

"The failure to obtain timely assistance from Saudi Arabia, China,
the US and other friends, and delays in disbursements from the
World Bank have eroded investor confidence and resulted in a
substantial drawdown of Pakistan's foreign currency reserves,"
says Mr. Mitra, cautioning that "Ongoing negotiations for an IMF
assistance program represent a last resort, but even this may not
fully assure Pakistan of the ability to remain current over time
on its external obligations, including payment on its global bond
due in February 2009."

"Uncertainty about the size, timeliness and durability of an IMF
program were the main drivers for keeping the ratings on review
for downgrade," explained the analyst.

"Meanwhile, domestic demand management policies have proven
inadequate, and structural reforms to improve tax administration
or generate higher domestic savings would take more time and face
a challenging domestic political environment," notes Mr. Mitra,
adding, "Delays evident in the de-monetization of fiscal deficits,
in particular, reflect insufficient policy adjustments and had
blunted macro-economic stabilization."

"While the continuing strength of remittance inflows, the
reduction in international oil prices, and the recent pick-up in
tax collections would help at the margin, they would not anytime
soon offset the large financing risks posed by Pakistan's twin
deficits," says the analyst.

Medium-term considerations also played a role in Moody's decision
to place Pakistan's sovereign credit ratings on review for
downgrade.

"Even if an IMF assistance package were to avert a near-term
default, Pakistan's intrinsic ability to generate greater access
to foreign exchange has dimmed," says Mr. Mitra. He adds that
"Insufficient macro-economic adjustments, weak prospects for
structural reforms, and a chronic shortage of foreign exchange
were likely to heighten Pakistan's need for medium-term balance-
of-payments support, or raise the risk of a hard economic
landing."

"As a result, Pakistan's external credit metrics and access to
liquidity are now expected to remain more precariously positioned
than at similarly rated countries," says the analyst.

"Additionally, the global credit crisis and a rapidly weakening
world economy may also further limit any export-led or foreign-
investment-driven recovery prospects for the Pakistani economy, or
a replenishment of the country's foreign currency reserves," says
the Singapore-based analyst.

"Although Pakistan's tumultuous political transition had ended,
the apparent lack of a domestic political consensus in effectively
tackling the growing threat of Islamic militancy may worsen the
level of violence," says the analyst, adding, "This situation
could complicate prospects for confidence-sensitive inflows from
official creditors and private investors."

"After placing the government's B3 bond ratings on review for
downgrade, Moody's will closely monitor the timeliness, adequacy,
and prospects for sustainability of the IMF program over the
review period, to make a final ratings assessment," concludes the
analyst.

Concurrent to the rating decision on the Pakistani government's
bond ratings, the foreign currency bond ceiling was lowered from
Ba3 to B1; and the foreign currency deposit ceiling was maintained
at B3. Both ceilings were also put on review for downgrade.
Lastly, the local currency deposit ceiling was lowered from Baa2
to Ba2 to reflect the risk that, in the current circumstances, the
government's ability to support the banks in case of emergency has
diminished.


MOBILINK COMM: Moody's Puts Low-B Ratings Under Review
------------------------------------------------------
Moody's Investors Service has placed Pakistan Mobilink
Communications Limited's B1 local currency corporate family rating
and B3 senior unsecured bond rating under review for possible
downgrade.

"The rating actions reflect Moody's concerns over further
deterioration in Pakistan's political and economic environment as
evidenced by recent sovereign rating actions and the impact that
such continued deterioration may have on Mobilink's operating
profile," says Laura Acres, a Moody's Vice President.

Specifically, Moody's has concerns over the ability of the company
to achieve forecast revenue and EBITDA growth given the worsening
domestic economic situation which, in Moody's view, may well
result in capex being scaled back and/or cause demand for cellular
services to slow.

"Furthermore, Moody's remains concerned about Mobilink's ongoing
liquidity situation given the amount of debt it needs to repay
within the next 12 months (approximately US$115 million), although
Moody's understands from managment that its parent, Orascom
Telecom Holdings, has confirmed its commitment to Mobilink and
will support the company to ensure covenant compliance," adds Ms.
Acres, also Moody's Lead Analyst for Mobilink.

The review will focus on: 1) Mobilink's plans to achieve forecast
revenue and EBITDA growth despite the slowing economy; 2) the
company's access to, and ability to repay, foreign currency debt
given the ongoing tight liquidity situation globally; and 3) an
ongoing assessment of parental support.

Mobilink is the largest mobile operator in Pakistan. It offers
voice and value-add telecommunications services to more than 32.0
million subscribers in over 9,000 cities, towns and villages
throughout the country through more than 7,000 cell sites. As of
June 30, 2008, Mobilink enjoyed a market share of 36.4% (as
calculated by the regulator) and provided network coverage to 75%
of the total population.

Mobilink is indirectly 100%-owned by Orascom Telecom Holdings -
itself rated Ba3/stable.



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

SAN MIGUEL: Moody's Sees No Rating Impact on Meralco Acquisition
----------------------------------------------------------------
Moody's Investors Service sees no immediate impact on the Ba2
corporate family rating of San Miguel Corporation (SMC) following
its announcement that it is to acquire a 27% stake in Manila
Electric Company (Meralco).

"The current Ba2 rating of SMC has factored in the company's
acquisition of assets outside of its traditional food and beverage
business," says Renee Lam, a Moody's Vice President.

"SMC's partial acquisition of Meralco -- with about PHP27 billion
to be paid over three years -- will be fully funded by its
substantial cash-on-hand and will have no impact on its liquidity
position and financial profile," adds Renee Lam, also the lead
analyst for SMC.

SMC also announced that it has been authorized by its board to
initiate discussions with relevant parties over the potential
acquisition of a stake in Petron Corporation, a Philippines-based
oil refinery, as well as participation in the operations of PT
Bumi Resources Tbk, an Indonesian-based natural resources company.

The ultimate results of these discussions, and potential
investment amounts or time lines, are unknown at this point.

Moody's will continue to monitor SMC's progress in these
discussions and any other potential investments, and evaluate any
associated impact on SMC's rating, should the company's
investments in non-traditional assets develop beyond the scale
presently envisaged or are significantly debt-funded.

SMC, based in the Philippines, is one of the largest food and
beverages companies in Southeast Asia. SMC is engaged in the
production, processing and marketing of beverages, food, and
packaging products. It reported revenue of about US$3.6 billion in
2007, excluding revenue from assets disposed during the year.


* PHILIPPINES: Cement Industry Workers in Danger of Losing Jobs
---------------------------------------------------------------
Two of the country’s biggest cement makers are laying off hundreds
of workers because of slackening demand and the government's plan
to slash tariffs to zero on cement imports, Manila Standard
reports.

The report cited President of Cement Manufacturers Association of
the Philippines, Ernesto Ordonez, as saying that Cemex Philippines
will announce the layoff of about 15 percent of the company's
workforce while Lafarge Cement Service (Philippines) Inc. has
already reduced its workforce by less than a hundred and is
currently negotiating with the company union for the possible
reinstatement of some of the displaced workers.

"If we bring down tariffs to zero, about 120,000 people direct and
indirectly employed by the industry are in danger of losing their
jobs," Mr. Ordonez was quoted by Manila Standard as saying.

According to Daily Tribune, the plan to lift the tariff on cement
was recommended by Trade and Industry Secretary Peter Favila after
the failure of the industry to submit the required documents that
would justify their price increases.  Top cement producers had
increased their prices by an average of Php12 per bag allegedly
due to the rising price of coal, which is a major component in
cement production.

The Daily Tribune cited Mr. Ordonez as saying that the government
should not punish the whole industry just because some companies
have been delinquent in submitting what the Department of Trade
and Industry has been requiring on manufacturers.  Mr. Ordonez
added that while other countries are doing everything to protect
their cement business, the government is doing otherwise by
encouraging imports by eliminating the five percent tariff on
cement.



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

UMC: Posts NT$1.413-Bil. Net Loss for the September Quarter
-----------------------------------------------------------
United Microelectronics Corporation booked a net loss of
NT$1.413 billion (US$42.5 million) for the September quarter from
a NT$9.233 billion profit a year ago and the second quarter's
NT$2.397 billion profit, Reuters reports.

The report relates that the company attributed the loss on slower
demand that hurt chip sales and prices.

Analysts, the report notes, had expected UMC to post a
third-quarter net profit of NT$2.035 billion.

According to the report, UMC are expected to see fourth-quarter
sales continue to decline as a slowing global economy hurts
consumer spending on PCs and other consumer gadgets that require
chips.

UMC shares fell by one-third in the three months to Sept. 30,
underperforming a 24% decline in the benchmark TAIEX .TWII share
index, the report adds.

           About United Microelectronics Corporation

United Microelectronics Corporation -- http://www.umc.com-- is an
independent semiconductor manufacturer and is also engaged in
semiconductor manufacturing process technologies.  The company's
primary business is the manufacture, or fabrication, of
semiconductors, sometimes called chips or integrated circuits, for
others.  Using its own processes and techniques, UMC makes chips
to the design specifications of its customers.  The company
maintains a customer base across industries, including
communication, consumer electronics, computer, memory and others,
while focusing on manufacturing for applications, including
networking, telecommunications, Internet, multimedia, personal
computers (PCs) and graphics.  UMC sells and markets mainly
wafers, which in turn are used in a number of different
applications by its customers.



                         *********

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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