TCRAP_Public/081230.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

            Tuesday, December 30, 2008, Vol. 11, No. 257

                            Headlines

A U S T R A L I A

A J STRAKER: Commences Liquidation Proceedings
ALBANIAN SOCIAL: Enters Wind-Up Proceedings
AUSTRALIAN WIDE: Commences Liquidation Proceedings
BARNACLE BUSTERS ET AL: Appoint Bettles and Carter as Liquidators
BENDIGO HOTEL: Placed Under Voluntary Liquidation

BLITZ WHOLESALE: Enters Wind-Up Proceedings
BML GROUP: Enters Wind-Up Proceedings
BREETEX DISTRIBUTORS ET Al: Commence Liquidation Proceedings
D & S ROOFING: Placed Under Voluntary Liquidation
DG & JD: Declares First and Final Dividend

ELTON GOLD: Commences Liquidation Proceedings
ESHADE PTY: Commences Liquidation Proceedings
FITOUT GROUP: Members and Creditors Hear Wind-Up Report
FKP PROPERTY: Court Probe Reveals Biz Has Liquidity Problem
FRESH ON: Enters Liquidation Proceedings

FRUITFIELDS PTY: Commences Liquidation Proceedings
HEAVY HAULAGE: Members Receive Wind-Up Report
ICCC ABBOTSLEIGH: Placed Under Voluntary Liquidation
LAS PALMAS: Members Receive Wind-Up Report
MACQUARIE OFFICE: Talks Continue on US$74.5 Mil. Loan Extension

MANSION KITCHENS: Members and Creditors Hear Wind-Up Report
MCHAESP PTY: Members Receive Wind-Up Report
MONARCH SPAS: Declares First and Final Dividend
PHILIP L CAMERON: Commences Liquidation Proceedings
ROYDONJOY PTY: Members and Creditors Hear Wind-Up Report

URBANITE PTY: Members and Creditors Hear Wind-Up Report


B E N I N

BANK OF AFRICA: Fitch Downgrades Issuer Default Rating to 'B'


C H I N A

CHINA AOXING: Working Capital Deficit Prompts Going Concern Doubt
CHINA EASTERN: Seeks Adjustment to CNY3 Bil. Gov't. Bail Out Plan
HAINAN AIRLINES: To Launch Beijing-Ukraine Route in 2009
NINE DRAGONS: Fitch Downgrades Issuer Default Rating to 'BB-'
NINE DRAGONS: Says Finances are OK, Won't File for Bankruptcy

SICHUAN AOSTAR: Closes All Production on Weak Demand
SINOPEC CORP: Unit May Post Substantial Loss in 2008


I N D I A

ASL INDUSTRIES: CRISIL Rates Rs.140 Mil. Cash Credit at 'BB+'
BHARAT ELECTRICAL: CRISIL Rates Rs.100.0MM Cash Credit at 'BB+'
KSE ELECTRICALS: CRISIL Rates Rs.190 Mil. Cash Credit at 'BB+'
MAHESH TIMBER: CRISIL Rates Rs.250 Mil. Cash Credit at 'BB+'
MODERN STEELS: CRISIL Rates Various Bank Facilities at 'BB'

MYSORE PAPER: CRISIL Rates Rs.450MM Cash Credit Limit at 'BB+'
SASA MUSA: CRISIL Assigns 'C' Ratings on Various Bank Facilities


I N D O N E S I A

ADAM AIR: Unable to Pay IDR98 Bil. Debt to 219 Travel Agencies
INDOVER BANK: BI Officials Under AGO Probe Over Bank's Bankruptcy


J A P A N

DELPHI CORP: Keeps Plan Exclusivity From Committee Until March 31
ELPIDA MEMORY: Shares Hit Seven-Week High on Merger Talks
ELPIDA MEMORY: Merges Divisions and Functions
IR LOAN: Fitch Affirms Special Mortgage Servicer Rating at 'CSS2'
JAPAN AIRLINES: To Hike Fares on International Routes

TAKARA LEBEN: JCR Lowers Senior Debts Rating to 'BB+'
UDMAC-J1 TRUST: Fitch Affirms Ratings on Classes F & G at Low-B


K E N Y A

TRITON PETROLEUM: Placed in Receivership


K O R E A

ABITIBIBOWATER INC: Cuts Production, Expects US$45MM Closure Costs
ABITIBIBOWATER INC: Newfoundland Government Expropriates Assets
ABITIBIBOWATER INC: To Sell Equity Interest in ACH for C$540MM
SSANGYONG MOTOR: Major Shareholder Asks Gov't. to Help Secure Loan
UTSTARCOM INC: To Wind Down Korean Operations & Cut 10% of Jobs

UTSTARCOM INC: Has Liquidity to Fund Biz for the Next 12 Months
* KOREA: Lenders Plan Liquidity Support to Troubled Automakers
* KOREA: Non-Viable Builders and Shipbuilders to be Restructured


K U W A I T

* Fitch Comments on Rating Actions on Kuwait's Global Investments


N E W  Z E A L A N D

BRADLEYS TRANSPORT: Court Hears Wind-Up Petition
BRENDO ENTERPRISES: Appoints Blanchett and Hollis as Liquidators
CORTEQ SOLUTION: Court Hears Wind-Up Petition
FINISHED FLOORS: Court Hears Wind-Up Petition
G & D LOGAN: Appoints Fatupaito and McCloy as Liquidators

GOLDEN FORTUNE: Court to Hear Wind-Up Petition on January 19
GUARDIAN PROPERTY: Creditors' Proofs of Debt Due on Dec. 31
INTERNATIONAL MARINE: Placed Under Voluntary Liquidation
K V C HOLDINGS: Court Hears Wind-Up Petition
KAIAPOI COUNTRY: Appoints Crichton and Horne as Liquidators

KIWI INTERNATIONAL: Court Hears Wind-Up Petition
LEADER DEVELOPMENT: Court Hears Wind-Up Petition
LEWIS WRIGHT: Commences Liquidation Proceedings
MOUNTAIN LAKE: Court Hears Wind-Up Petition
PRIMESIDE LTD: Court Hears Wind-Up Petition

RISING PRODUCTIONS: Court Hears Wind-Up Petition
SPARROW ENTERPRISES: Court to Hear Wind-Up Petition on January 28
TANNADYCE INVESTMENTS: Court Hears Wind-Up Petition


P H I L I P P I N E S

TOLEDO MINING: Cuts Workforce by 90% as Nickel Demand Slows


X X X X X X X X

* FITCH: US$17.4MM Bailout Gives Automakers Temporary Relief
* BOND PRICING: For the Week December 22 to December 26, 2008


                         - - - - -

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


A J STRAKER: Commences Liquidation Proceedings
----------------------------------------------
During a general meeting held on October 8, 2008, the members of
A J Straker Investments Pty Ltd resolved to voluntarily liquidate
the company's business.

The company's liquidator is:

         Morgan Lane
         Worrells Solvency & Forensic Accountants
         102 Adelaide Street, 8th Floor
         Brisbane QLD 4000
         Telephone:(07) 3225 4300
         Facsimile:(07) 3225 4311
         Website: http://www.worrells.net.au


ALBANIAN SOCIAL: Enters Wind-Up Proceedings
-------------------------------------------
The members of Albanian Social Club Pty Ltd met on October 6,
2008, and resolved to voluntarily liquidate the company's
business.

The company's liquidator is:

          Paul Vartelas
          B. K. Taylor & Co.
          608 St. Kilda Road, 8th Floor
          Melbourne


AUSTRALIAN WIDE: Commences Liquidation Proceedings
--------------------------------------------------
During a general meeting held on October 7, 2008, the members of
Australian Wide Shop Fitters Pty Ltd resolved to voluntarily
liquidate the company's business.

The company's liquidator is:

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


BARNACLE BUSTERS ET AL: Appoint Bettles and Carter as Liquidators
-----------------------------------------------------------------
During a general meeting held on October 3, 2008, Jason Bettles
and Susan Carter were appointed as liquidators of:

   -- Barnacle Busters Australia Pty Ltd;
   -- Cyfer Pty Ltd; and
   -- PML Nominees Pty Ltd.

The Liquidators can be reached at:

         Jason Bettles
         Susan Carter
         Worrells Solvency & Forensic Accountants
         Website: http://www.worrells.net.au


BENDIGO HOTEL: Placed Under Voluntary Liquidation
-------------------------------------------------
During a general meeting held on October 1, 2008, the members of
Bendigo Hotel on Johnston Pty Ltd resolved to voluntarily
liquidate the company's business.

The company's liquidator is:

          G. S. Andrews
          G S Andrews & Associates
          22 Drummond Street
          Carlton VIC 3053
          Telephone:(03) 9662 2666
          Facsimile:(03) 9662 9544


BLITZ WHOLESALE: Enters Wind-Up Proceedings
-------------------------------------------
The members of Blitz Wholesale Services Pty. Ltd. met on Oct. 8,
2008, and resolved to voluntarily liquidate the company's
business.

The company's liquidator is:

          Barry Keith Taylor
          B. K. Taylor & Co.
          8/608 St. Kilda Road
          Melbourne VIC 3004


BML GROUP: Enters Wind-Up Proceedings
-------------------------------------
The members of BML Group One Pty. Ltd. met on October 7, 2008, and
resolved to voluntarily liquidate the company's business.

The company's liquidators are:

          Anthony Robert Cant
          Simon Patrick Nelson
          Romanis Cant, Chartered Accountants
          106 Hardware Street
          Melbourne


BREETEX DISTRIBUTORS ET Al: Commence Liquidation Proceedings
------------------------------------------------------------
On October 13, 2008, the creditors resolve to voluntarily wind up
the operations of:

   -- Breetex Distributors Pty Ltd; and
   -- Living Legend Pty Ltd.

The companies' liquidators are:

          Gideon Isaac Rathner
          David John Coyne
          Lowe Lippmann, Chartered Accountants
          5 St Kilda Road, St Kilda
          Vic 3182


D & S ROOFING: Placed Under Voluntary Liquidation
-------------------------------------------------
During a general meeting held on September 29, 2008, the members
of D & S Roofing Pty Ltd resolved to voluntarily liquidate the
company's business.

The company's liquidator is:

          G. S. Andrews
          G S Andrews & Associates
          22 Drummond Street
          Carlton VIC 3053
          Telephone:(03) 9662 2666
          Facsimile:(03) 9662 9544


DG & JD: Declares First and Final Dividend
------------------------------------------
DG & JD Smith Earthmoving (QLD) Pty Ltd, which is in liquidation,
declared the first and final dividend on November 12, 2008.

Only creditors who were able to file their proofs of debt by
Nov. 11, were included in the company's dividend distribution.

The company's liquidator is:

         D. J. Offermans
         c/o Offermans Partners Chartered Accountants
         61-73 Sturt Street, Level 7
         Townsville QLD 4810
         Telephone:(07) 4724 0000
         Facsimile:(07) 4724 0060


ELTON GOLD: Commences Liquidation Proceedings
---------------------------------------------
During a general meeting held on October 8, 2008, the members of
Elton Gold Pty Ltd resolved to voluntarily liquidate the company's
business.

The company's liquidator is:

          Glenn A. Crisp
          c/o RSM Bird Cameron Partners
          525 Collins Street, Level 8
          Melbourne VIC 3000
          Telephone:(03) 9286 1800
          Facsimile:(03) 9286 1899


ESHADE PTY: Commences Liquidation Proceedings
---------------------------------------------
The members of Eshade Pty. Ltd. met on Oct. 9, 2008, and resolved
to voluntarily liquidate the company's business.

The company's liquidator is:

          Leigh Dudman
          B. K. Taylor & Co.
          8/608 St. Kilda Road
          Melbourne VIC 3004


FITOUT GROUP: Members and Creditors Hear Wind-Up Report
-------------------------------------------------------
The members and creditors of Fitout Group Australia Pty Ltd met on
November 24, 2008, and received the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidators are:

          Robyn Erskine
          Peter Goodin
          Brooke Bird Insolvency Practitioners
          471 Riversdale Road
          Hawthorn East VIC 3123
          Telephone:(03) 9882 6666


FKP PROPERTY: Court Probe Reveals Biz Has Liquidity Problem
------------------------------------------------------------
Vanda Carson at the Age reported that the Federal Court has ruled
out that FKP Property Group was having severe cashflow problems by
the end of December 2007.

The Age quoted Justice Michelle Gordon as saying "Put simply, the
undisputed evidence at trial showed that by the end of 2007 FKP
was facing a time of financial hardship."

"Sales of significant assets had fallen through.  It needed a cash
injection and it needed it fast."

"An internal FKP deadline of an injection of $5 million by 31
December, 2007, had passed without being met," Justice Gordon
said.

According to the report, at its half-year results two months
later, FKP managing director Peter Brown boasted about the
company's "strong balance sheet".

The report said details of the company's urgent need for cash were
revealed after Coles supermarkets, now owned by Wesfarmers, sued
it in the Federal Court for breach of contract.

Coles, the report related, sued the FKP after it claimed it was
gazumped as anchor tenant for a new $20 million shopping centre in
Tarneit.  Coles succeeded in its breach of contract claim,
however, the court is yet to decided whether Coles will be awarded
damages or the lease in the centre.

The Age noted that shares in FKP have fallen from AU$6.35 to 45
cents since the start of this year.  On September 30, the company
issued a profit downgrade and warned it was facing liquidity
problems, the report added.

                       About FKP Property

Based in Australia, FKP Property Group engages in property
development and investment activities.  The company operates
through four segments: land subdivision, which is engaged in the
supply of land for development and sale ranging from small infill
projects to master-planned residential communities; property
development, which is engaged in the development and construction
of residential, commercial, retail, retirement villages and
industry property for sale; retirement, which is engaged in
retirement homes and independent living units provided along with
the service of management for a majority of villages, and
investment and funds management, which is engaged in delivery of
risk return profile to investors and management of income-
producing properties.


FRESH ON: Enters Liquidation Proceedings
----------------------------------------
During a general meeting held on October 3, 2008, the members of
Fresh On Melbourne Pty Ltd resolved to voluntarily liquidate the
company's business.

The company's liquidator is:

         I. A. Currie
         Currie Biazos Insolvency Accountants
         99 Creek Street, Level 5
         Brisbane QLD 4000
         Website: http://www.cbia.com.au


FRUITFIELDS PTY: Commences Liquidation Proceedings
--------------------------------------------------
During a general meeting held on October 3, 2008, the members of
Fruitfields Pty Ltd resolved to voluntarily liquidate the
company's business.

The company's liquidator is:

         I. A. Currie
         Currie Biazos Insolvency Accountants
         99 Creek Street, Level 5
         Brisbane QLD 4000
         Website: http://www.cbia.com.au


HEAVY HAULAGE: Members Receive Wind-Up Report
---------------------------------------------
The members of Heavy Haulage Plant Hire Pty Ltd met on Nov. 25,
2008, and received the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

         Morgan Lane
         Worrells Solvency & Forensic Accountants
         102 Adelaide Street, 8th Floor
         Brisbane QLD 4000
         Telephone:(07) 3225 4300
         Facsimile:(07) 3225 4311
         Website: http://www.worrells.net.au


ICCC ABBOTSLEIGH: Placed Under Voluntary Liquidation
----------------------------------------------------
At an extraordinary general meeting held on October 2, 2008, the
members of ICCC Abbotsleigh Pty Ltd resolved to voluntarily
liquidate the company's business.

The company's liquidators are:

         Messrs. Peter Geroff
         Will Colwell
         c/o Ferrier Hodgson (Qld)
         Level 7, 145 Eagle Street
         Brisbane


LAS PALMAS: Members Receive Wind-Up Report
------------------------------------------
The members of Las Palmas Pty Ltd met on Nov. 14, 2008, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         Jason Bettles
         Worrells Solvency & Forensic Accountants
         Website: http://www.worrells.net.au


MACQUARIE OFFICE: Talks Continue on US$74.5 Mil. Loan Extension
---------------------------------------------------------------
Macquarie Office Trust's lenders agreed to extend the company's
US$74.5 million loan for One & Three Christina Center in
Wilmington, Delaware until March 1, 2009.

The Trust is currently under heads of agreement with the new
lender who are undertaking their due diligence on the transaction,
Macquarie Office Trust said in a statement.

Shani Raja of Bloomberg News relates the news sent Macquarie
Office Trust's shares down by 12 percent to 29 Australian cents at
the close of trading yesterday, December 29, on the Australian
stock exchange, extending their loss this year to almost 80
percent.

In a December 12 regulatory filing, Macquarie Office Trust
announced these initiatives to strengthen its balance sheet and
improve liquidity:

   -- sale of the Trust's interest in Wachovia Financial
      Center for US$182.5 million (AU$279 million);

   -- entitlement offer and placement raising up to
      AU$508 million at AU$0.20 per unit, underwritten
      to AU$450 million; and

   -- cash flow retention of AU$82 million including no
      distribution being declared for the December 2008
      quarter (AU$44 million) and a revised payout ration
      in 2009 of approximately 70% of core earnings
      (AU$38 million).

According to Macquarie Office Trust, the capital management
initiatives will be used to refinance or repay AU$1.4 billion of
debt expiring in 2009.  The Trust also agreed the extension of the
syndicate debt facility to September 2011 (from the current
maturity of September 2009).

Post the completion of the capital management initiatives, the
company said:

   -- all calendar year 2009 debt maturities either
      extended or to be repaid with available liquidity
      (next debt expiry in June 2010); and

   -- Macquarie Office Trust will have no head trust
      gearing covenant in the syndicate debt facility.

                 Entitlement Offer and Placement

On December 12, Macquarie Office Trust successfully raised a total
of approximately AU$343 million from institutional investors at an
issue price of AU$0.20 per unit comprising AU$100 million via an
institutional placement and AU$243 million via an institutional
entitlement offer.

Units were issued to institutional investors yesterday, December
29.  The retail entitlement offer is expected to raise up to
approximately AU$165 million with the total offer underwritten to
AU$450 million.

                Sale of Wachovia Financial Center

The Trust has sold its interest in the Wachovia Financial Center
for US$182.5 million (AU$279 million).  Proceeds of US$100 million
have been received with the balance to be received on August 31,
2009.  The sale was made at a 6.9% capitalization rate and
resulted in a 14.6% profit on cost plus capital expenditure since
acquisition.  The transaction represents a 15.1% geared IRR and a
10.9% ungeared IRR to the Trust.

                       Cashflow Retention

The Trust will retain AU$82 million of cash with no distribution
being declared for the December 2008 quarter and a revised payout
ratio of approximately 70% of core earnings in calendar year 2009.

                    Lease Extension at Denver

Macquarie Office Trust disclosed that law firm Homes Robert & Owen
LLP has executed a 12-year extension over approximately 110,000
square feet at Wells Fargo Centre in Denver.  In addition to the
110,000 square feet, the lease extension includes a total of
approximately 13,500 square feet to be relinquished over the next
12 years.  The transaction represents a significant retention of a
key customer for the Trust in challenging market conditions.

                   About Macquarie Office Trust

Macquarie Office Trust (ASX:MOF) is an investment trust primarily
engaged in property investment.  The Trust's activities include
property investment in prime Australian, United States, European
office buildings.  On July 23, 2007, the Trust acquired 59
Goulburn Street, Sydney.  On August 2, 2007, the Trust acquired
the remaining 25% interest in SunTrust Center, Orlando and
Pasadena Towers, Pasadena. On August 24, 2007, the Trust sold its
25% interest in 10 & 30 South Wacker Drive, Chicago.  On March 30,
2008, the Trust sold its interest in The Lang Centre, Parramatta.
On April 30, 2008, the Trust sold its interest in 505 Little
Collins Street, Melbourne.


MANSION KITCHENS: Members and Creditors Hear Wind-Up Report
-----------------------------------------------------------
The members and creditors of Mansion Kitchens (Aust) Pty Ltd met
on November 21, 2008, and received the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

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


MCHAESP PTY: Members Receive Wind-Up Report
--------------------------------------------
The members of Mchaesp Pty Ltd met on Nov. 13, 2008, and received
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         P. A. Lucas
         P. A. Lucas & Co., Chartered Accountants
         100 Edward Street, Level 8
         Brisbane, Queensland


MONARCH SPAS: Declares First and Final Dividend
-----------------------------------------------
Monarch Spas (Australia) Pty Ltd, which is in liquidation,
declared the first and final dividend on December 3, 2008.

Only creditors who were able to file their proofs of debt by
Nov. 11, 2008, were included in the company's dividend
distribution

The company's liquidator is:

          Barry Keith Taylor
          B. K. Taylor & Co
          8/608 St Kilda Road
          Melbourne VIC 3004


PHILIP L CAMERON: Commences Liquidation Proceedings
---------------------------------------------------
During a general meeting held on October 1, 2008, the members of
Philip L Cameron Pty Ltd resolved to voluntarily liquidate the
company's business.

The company's liquidator is:

          G. S. Andrews
          G S Andrews & Associates
          22 Drummond Street
          Carlton VIC 3053
          Telephone:(03) 9662 2666
          Facsimile:(03) 9662 9544


ROYDONJOY PTY: Members and Creditors Hear Wind-Up Report
--------------------------------------------------------
The members and creditors of Roydonjoy Pty Ltd met on Nov. 18,
2008, and heard the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

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


URBANITE PTY: Members and Creditors Hear Wind-Up Report
-------------------------------------------------------
The members and creditors of Urbanite Pty Ltd met on November 24,
2008, and received the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

          Laurence A. Fitzgerald
          BDO Kendalls
          Chartered Accountants
          525 Collins Street, Level 30
          Melbourne VIC 3000


=========
B E N I N
=========


BANK OF AFRICA: Fitch Downgrades Issuer Default Rating to 'B'
-------------------------------------------------------------
Fitch Ratings has upgraded the Bank of Africa Benin and the Bank
of Africa Niger's Support Ratings to '4' from '5'.  At the same
time, the agency has downgraded BoAB's Long-term Issuer Default
Rating to 'B' from 'B+' and affirmed its Short-term IDR at 'B' and
Individual Rating at 'D'.  BoAB's Long-term IDR has a Stable
Outlook. The agency has simultaneously upgraded BoAN's Long-term
IDR to 'B' from 'B-' (B minus) and affirmed its Short-term IDR at
'B' and Individual Rating at 'D/E'.  BoAN's Long-term IDR also has
a Stable Outlook.  BoAB and BoAN's Support Rating Floors of 'No
Floor' have been withdrawn.  BoAB and BoAN are part of the Bank of
Africa group, one of the largest financial services groups in the
eight-member West African Economic and Monetary Union.

The upgrade of BoAB and BoAN's Support Ratings and of BoAN's Long-
term IDR reflect Fitch's view that there is a limited probability
that support would be provided to BoAB or BoAN by Morocco's BMCE
Bank, if needed.  During 2008, BMCE acquired a 42.5% stake in the
Luxembourg-based holding company for BoA's bank and non-bank
subsidiaries, BOA Group, following a strategic agreement between
BMCE and BOA Group in 2007.  BOA Group directly owned 44% and 42%
of BoAB and BoAN respectively at end-Q308.  BMCE is Morocco's
third-largest bank by total assets and is aiming to expand in sub-
Saharan countries by acquiring regional banks or establishing
partnerships with major players.  BMCE's agreement with BOA Group
fits into the Moroccan bank's strategy.

BoAN's Individual Rating reflects its rapid loan growth in a weak
operating environment, concentrated credit exposures and client
deposit base, small equity base and weak capital adequacy.  It
also factors in the bank's consistent profitability and low
impaired loans.

The downgrade of BoAB's Long-term IDR reflects its increased
exposure to the sovereign, the Republic of Benin ('B'/'B'/Outlook
Stable).  BoAB's Long- and Short-term IDRs and Individual Rating
factor in its vulnerable profitability, weak credit risk profile
and tight capital adequacy ratio in a difficult operating
environment.  They also take into account its sound liquidity,
enhanced risk management and prudent strategy.

BoAB's profitability, which is closely linked with its operating
environment, improved in 2008 with its ROE and ROA increasing to
27% and 2.3% respectively in H108.  However, asset quality
indicators remain weak by international standards and
concentration in the loan book is high.  While BoAB has long-
standing lending operations to state-owned companies, the
sovereign risk in its securities portfolio increased significantly
at end-2007 and at end-H108, as BoAB subscribed to sizeable
amounts of the Benin government's most recent issues of bonds and
treasury bills.  BoAB's total exposure to the sovereign increased
to 216% of shareholders' funds at end-H108 compared to 88% at end-
H107. BoAB's Tier 1 ratio stood at 10.1% at end-H108.

BoAN's operating profit increased by 49% year-on-year in H108 and
its ROE reached 32% on the back of rapid loan book growth.
Concentration per obligor was high with the 20 largest exposures
accounting for over half of the loan book at end-H108.  BoAN's
Tier 1 ratio dropped to 8.3% at end-H108 from 10.9% at end-2007.
A share issue of XOF500m is planned in 2009 to comply with
increased regulatory minimum capital requirements.

BoAB is the largest bank of the BoA group.  It is Benin's biggest
commercial bank, with total equity of XOF34.3bn and a market share
of approximately 31% of deposits at end-H108.  BoAN is among the
top-three banks in Niger, with total equity of XOF6.5bn at end-
H108 and a 20% market share of domestic deposits at end-Q108.


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


CHINA AOXING: Working Capital Deficit Prompts Going Concern Doubt
-----------------------------------------------------------------
At September 30, 2008, China Aoxing Pharmaceutical Co., Inc., has
a deficiency in working capital of US$11,615,663.  "The
uncertainties caused by this condition raise substantial doubt as
to the company's ability to continue as a going concern," Juan Yue
Han, chief executive officer, and Hongyue Hao, acting chief
financial officer, disclosed in a regulatory filing with the
Securities and Exchange Commission.

"The company is exploring various alternatives to improve its
financial position and continue to meet its obligations.
Management is focusing on improving its operations and seeking
additional debt and equity financing. There can be no assurance
that any of these efforts will be fruitful."

"Our net income for the three months ended September 30, 2008 was
US$626,119.  This represented a significant reduction from the
US$1,762,161 in net income that we realized during the three
months ended September 30, 2007.  However, the US$1,762,161 in net
income for the three months ended in September 30, 2007 was
significantly attributed to the change in fair value of warrant
and derivative liabilities in the amount of US$2,675,625 during
that period."

As of September 30, 2009, the company's balance sheet showed total
assets of US$55,784,801, total liabilities of US$24,653,537,
convertible debentures of US$889,392, minority interest of
US$79,830, and warrant and derivative liabilities of US$3,848,357,
and total stockholders' equity of US$26,313,685.

A full-text copy of the company's quarterly report is available
for free at http://researcharchives.com/t/s?36ef

Effective on November 10, 2008, Richard Wm. Talley, Joseph J.
Levinson, Jiaqi Wang and Hui Shao resigned from their positions as
members of the company's Board of Directors.  Juan Yue Han, the
remaining member of the Board, then appointed to fill the
vacancies: Jun Min, John O'Shea, Howard David Sterling and Dr.
Guozhu Xu.

On November 10, 2008, Chief Executive Officer Juan Yue Han
resigned from his position as Chief Financial Officer.  The Board
appointed Hao Hongyue to serve as Acting Chief Financial Officer.

Hao Hongyue has been employed since 2000 by the Hebei Aoxing
Pharmaceutical Group Company, which is the operating subsidiary of
China Aoxing Pharmaceutical Company.  Ms. Hao was initially
employed as Controller, and was appointed Vice President - Finance
in 2007.  Prior to joining Hebei Aoxing, Ms. Hao was employed for
four years as Financial Manager of the China Aoxing Food and
Brewery Company, and for three years as an accountant with the
Hebei Brewery Company.  In 2007, Ms. Hao earned a Bachelor's
Degree with a concentration in accounting at the China Science and
Technology Training Institute.  Ms. Hao is 37 years old.  She is
the niece of the spouse of Chairman Juan Yue Han.

The company has an oral employment agreement with Hao Hongyue, its
newly-appointed Acting Chief Financial Officer.  The company will
pay Ms. Hao an annual salary of 200,000 Renminbi (currently
US$29,325).  The company has also agreed to issue 100,000 shares
of its common stock to Ms. Hao in compensation for her services
through December 31, 2009.

                        About China Aoxing

China Aoxing Pharmaceutical Co., Inc., through its subsidiaries,
is a vertically integrated pharmaceutical company specializing in
research, development, manufacturing and marketing of a variety of
narcotics and pain management pharmaceutical products in generic
and innovative formulations.  The company has two operating
subsidiaries: Hebei Aoxing Pharmaceutical Co., Inc., which at
September 30, 2008 is 95% owned by the company, and Shijazhuang
Lerentang Pharmaceutical Company, Ltd., which is 100% owned by
Hebei.  Both subsidiaries were organized under the laws of the
People's Republic of China.  Since 2002, Hebei has been engaged in
developing its analgesic products, building its facilities and
obtaining the requisite licenses from the Chinese Government.  LRT
manufactures a line of pain management drugs in pills, tablets,
capsules, oral solutions and other formulations.


CHINA EASTERN: Seeks Adjustment to CNY3 Bil. Gov't. Bail Out Plan
-----------------------------------------------------------------
China Daily reported that China Eastern Airlines said it would
seek an adjustment to the government's CNY3 billion (US$438
million) capital infusion plan.

Citing a statement to the Hong Kong stock exchange on Dec. 24,
China Daily relates that the parent company, China Eastern Air
Holding Co., intends to make material adjustments to the
subscription plan.

According to the report, the National Business Daily quoted an
unnamed source as saying that China Eastern may seek an additional
cash injection from the government.

Meanwhile, Shanghai Daily says that China Eastern secured a CNY10
billion credit from Bank of Communications to ease working
capital.

"The aviation industry faces unprecedented challenges amid the
financial turmoil, which has also affected our operations.  BoCom
has decided to expand our credit line to ease our financial
pressure," Shanghai Daily cited China Eastern in a statement.

Shanghai Daily relates that the airline's new chairman, Liu
Shaoyong, attended the signing ceremony at which China Eastern's
new general manager Ma Xulun signed the loan agreement with the
bank.

As reported by the Troubled Company Reporter-Asia Pacific on
Dec. 12, 2008, Xinhua News Agency said China Eastern will receive
CNY3 billion (US$441.2 million) state bail-out.

Citing China Eastern's statement filed with the Shanghai Stock
Exchange, Xinhua relates that the airline will issue 652.18
million A shares to the government and its major shareholders at
3.6 yuan per share, and the same amount of H shares on the
Hong Kong stock market at 1 yuan per share.

According to Xinhua, Luo Zhuping, secretary of the CEA board of
directors, said the bail-out will reduce China Eastern's asset:
liability ratio by 3.77 percentage points.  The ratio stood at
98.49 percent on Sept. 30.  It will effectively improve the
carrier's financial condition and free up cash.

                       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.


HAINAN AIRLINES: To Launch Beijing-Ukraine Route in 2009
--------------------------------------------------------
Hainan Airlines Co. Ltd. will launch a new route from Beijing to
Ukraine's capital of Kiev at the beginning of next year, People's
Daily Online reports citing Xinhua News Agency.

According to the report, Zhang Ning, Hainan's representative in
Kiev, told a news briefing that passengers would be able to take a
flight between the two cities on Tuesday and Saturday starting
Feb. 10, 2009.

The airline would use Airbus A330-200 aircraft, which has 222
seats with 36 business-class seats.

Based in Haikou, Hainan Province, the People's Republic of
China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/--
founded in 1993, is the fourth-largest carrier in China and the
largest non-government-owned airline in China.  Hainan Airlines
is known for its award-winning customer service, impeccable
safety record and on-time performance.  Hainan Airlines carries
more than 14 million passengers annually.  Hainan Airlines
currently flies to more than 60 domestic and international
cities, including the capitals of every Chinese province.
Hainan Airlines' international flights include Budapest,
Brussels, Osaka and St. Petersburg.

                         *      *      *

Hainan Air continues to carry Xinhua Far East China
Rating's "CC" issuer credit rating placed on October 31, 2005
with a negative outlook.


NINE DRAGONS: Fitch Downgrades Issuer Default Rating to 'BB-'
-------------------------------------------------------------
Fitch Ratings has downgraded China-based Nine Dragons Paper
Limited Long-term foreign currency Issuer Default Rating to 'BB-'
(BB minus) from 'BB+'.  The Outlook on the IDR is Negative.  At
the same time, the agency has downgraded the senior unsecured
rating on the US$300 million notes due 2013 to 'B+' from 'BB+'.

The downgrade of Nine Dragons' IDR is predicated on the expected
delay in deleveraging to levels appropriate for a 'BB+'-rated
issuer.  The delay in deleveraging is primarily due to the
anticipated significantly sharper decline in exports in 2009, as
well as continued pressure on profit margins.  Fitch recently
revised its estimate for China's 2009 export growth rate to -6%
from +18%.  Any contraction in exports is likely to affect Nine
Dragons, even though 62% of its sales were made to domestic
enterprises versus export-oriented enterprises in FY2008. Thus,
the agency now expects Nine Dragons' leverage (measured by
adjusted debt net of cash to operating EBITDAR) to remain above 5x
in the near term.  Interest coverage (as measured by Funds from
Operation/Gross Interest Expense) is expected to be between 2x -
3x.

Despite the high leverage, Fitch notes that Nine Dragons'
liquidity is still satisfactory.  Aside from the RMB4.3bn of
undrawn, uncommitted facilities as of June 30, 2008, the company
has obtained an additional RMB2bn of credit facilities in
1HFY2009, demonstrating the continued funding support received
from the domestic banks.  The agency expects the company to
maintain its strong market position in China's fragmented
containerboard industry, which helps in its access to domestic
bank financing.  Also, Nine Dragons is likely to benefit from any
industry consolidation, as smaller producers stop their operations
due to the slowdown in demand.

The senior unsecured rating on the US$300 million notes due 2013
is now notched down from the IDR, based on the agency's
expectation that structural subordination will become more
significant with Nine Dragons obtaining any necessary financing
onshore.  Also, the ratio of priority debt at the operating
subsidiaries to EBITDA is expected to be above the threshold of
2.0x for 'BB-' (BB minus)-rated issuers; thus the notching down of
the bond rating.

The Negative Outlook is maintained until such time that there is
better clarity on the company's financing plans going forward
(i.e. continued or increasing reliance on onshore bank financing)
and the company's management of its capex plan for FY2009/2010.
Sustained net adjusted debt/EBITDAR of above 6.5x, sustained
interest coverage below 2.0x or any evidence that the onshore
banks' lending appetite has reduced could result in a negative
rating action.

Nine Dragons is China's largest manufacturer of containerboard
products.  In the financial year ended June 2008, the company
achieved revenue of CNY14.1 billion, EBITDA of CNY2.5 bilion and
net income of CNY1.9 billion.  Leverage, based on Fitch's
calculations, was 5.2x at end-FY2008, driven by higher-than-
expected capex of CNY10.0 billion in FY2008, compared to the
initial projection of CNY6.8 billion.  Interest coverage in FY2008
was 5.3x.


NINE DRAGONS: Says Finances are OK, Won't File for Bankruptcy
-------------------------------------------------------------
Bloomberg News reports Nine Dragons Paper (Holdings) Ltd. denied
media reports that it would declare bankruptcy at year-end, and
said its finances are fine.

According to Bloomberg News, the Guangzhou, China-based Times
Weekly reported on Dec. 25 that an unidentified Web posting dated
Nov. 1 cited an unidentified Nine Dragons official as saying that
the company would declare bankruptcy because it couldn't repay a
CNY500 million (US$73 million) loan.

"Such articles have no basis in fact," Nine Dragons said in a Hong
Kong stock exchange filing obtained by Bloomberg News.  "The
company is not involved in any bankruptcy, liquidation or winding-
up proceedings and the company's financial situation is sound and
stable and its operation is normal."

                         Credit Ratings

Reuters relates Fitch Ratings last week downgraded Nine Dragons
Paper long-term foreign currency Issuer Default Rating (IDR) to
'BB-' from 'BB+' due to an expected delay in deleveraging,
primarily led by an anticipated sharper decline in exports in 2009
and continued pressure on profit margins.

As reported in the Troubled Company Reporter-Asia Pacific on Dec.
19, 2008,
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on Nine Dragons Paper (Holdings) Ltd. to 'BB' from
'BBB-'.  At the same time, Standard & Poor's lowered its issue
rating on the company's US$300 million senior unsecured notes to
'BB-' from 'BBB-'.  Both ratings remain on CreditWatch with
negative implications, where they were placed on Oct. 13, 2008,
following Nine Dragons' weak earnings results for fiscal 2008.

"The downgrades reflect our expectation that Nine Dragons'
financial profile is likely to remain weak in the coming 12 months
as the company's ability to reduce debt and improve profitability
is constrained by current market conditions.  Nine Dragons'
financial profile has materially deteriorated as a result of a
significant increase in total borrowings and weakened
profitability, and no longer supports a high 'BB' rating," said
Standard & Poor's credit analyst Xiaoming Song.

According to S&P, the ratings remain on CreditWatch because
financial covenant
ratios for Nine Dragons' two bank loans were very close to
threshold levels as at June 30, 2008, fueling continued
uncertainty over the company's weakened liquidity position and
financial flexibility.  Despite adequate unused bank facilities,
Nine Dragons' ability to draw from these facilities is constrained
by the covenants, which provide limited headroom for further
borrowing.  The tight covenants also leave little room for any
potential further shortfalls in operating cash flow that might
result from ongoing cyclical downturns, and thus puts added
pressure on liquidity.  The CreditWatch reflects the uncertainty
over whether the company is going to or is able to amend existing
covenants, and if so, the timing and the terms of any amendments.

                     About Nine Dragons Paper

Headquartered in Wanchai, Hong Kong, Nine Dragons Paper (Holdings)
Limited (HKG:2689) -- http://www.ndpaper.com/-- is engaged in the
manufacture and sale of packaging paperboard products and
unbleached kraft pulp in the People's Republic of China.  The
Company's packaging paperboard products include linerboard,
corrugating medium and coated duplex board, as well as unbleached
kraft pulp.  The Company's subsidiaries include Nine Dragons Paper
Group Limited, Zhang's Enterprises Co., Ltd., Nine Dragons Paper
Industries Co., Ltd., Millennium Scope Limited, River Dragon Paper
Industries Co., Ltd., Emperor Dragon Paper Industries Co., Ltd.,
Sky Dragon Paper Industries (HK) Co., Ltd., Sky Dragon Paper
Industries Co., Ltd. and Nine Dragons Finance (Group) Limited.


SICHUAN AOSTAR: Closes All Production on Weak Demand
----------------------------------------------------
Li Xiaowei at Bloomberg News reports that Sichuan Aostar Aluminum
Co. closed all its production as prices slumped on weak demand.

Citing parent Guangdong Golden Horse Tourism Group Stock Co. in a
filing to the Shenzhen stock exchange, Bloomberg relates that the
move was to curb losses.

According to Bloomberg News, the company had previously shuttered
half of its facility in October.

Headquartered in Chengdu, China, Sichuan Aostar Aluminum Co. Ltd
mainly engaged in aluminum ingots, alloy aluminum ingots, anodes,
power producing and supplying, high technology product developing
and applying, other aluminum related to products.


SINOPEC CORP: Unit May Post Substantial Loss in 2008
----------------------------------------------------
Wendy Leung at the Shanghai Daily reports that Sinopec Shanghai
Petrochemical Co, a unit of China Petroleum and Chemical Corp.
("Sinopec"), may post a "substantial loss" this year due to
decreasing prices of its product.

Shanghai Daily relates that in a statement to Hong Kong's stock
exchange, Sinopec Shanghai said its product prices have fallen
more than 60 percent from their highs this year.

According to the report, the statement said fourth-quarter loss is
expected to widen from the previous quarter as the global
financial crisis curbed domestic demand and exports.

Sinopec Shanghai, the report notes, posted a CNY2.31 billion loss
for the third quarter ended October 29, compared with a CNY94.1
million loss in the same period last year.

Sinopec Corp. is the first Chinese company that has been listed
in Hong Kong, New York, London and Shanghai.  The company is an
integrated energy and chemical company with upstream, midstream
and downstream operations.  The principal operations of Sinopec
Corp. and its subsidiaries include: exploring, developing,
producing and trading crude oil and natural gas; processing
crude oil into refined oil products; producing, trading,
transporting, distributing and marketing refined oil products;
and producing and distributing chemical products.

Based on 2007 turnover, Sinopec Corp. is the largest listed
company in China.  The company is one of the largest crude oil
and petrochemical companies in China and Asia.  It is also one
of the largest gasoline, diesel and jet fuel and other major
chemical products producers and distributors in China and Asia.

                          *     *     *

The working capital deficit of China Petroleum & Chemical Corp.
rose by 15%, or CNY10.357 billion, from CNY69.882 billion at
Dec. 31, 2006 to CNY80.239 billion at Dec. 31, 2007.

The company had CNY185.116 billion in current assets and
CNY265.355 billion in current liabilities at Dec. 31, 2007,
compared to CNY146.490 billion in current assets and
CNY216.372 billion in current liabilities at Dec. 31, 2006.


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


ASL INDUSTRIES: CRISIL Rates Rs.140 Mil. Cash Credit at 'BB+'
-------------------------------------------------------------
CRISIL has assigned its rating of 'BB+/Stable/P4' to the bank
facilities of ASL Industries Pvt Ltd (ASL Industries).

   Rs.140 Million Cash Credit *     BB+/Stable (Assigned)

   Rs.155 Million Term Loan @       BB+/Stable (Assigned)

   Rs.5 Million Letter of           P4 (Assigned)
        Credit/Bank Guarantee  

   * includes proposed limit of Rs 100 million.
   @ includes proposed limit of Rs 60.3 million.

The rating reflects ASL Industries' weak financial risk profile
marked by low net worth, and exposure to risks relating to weak
pricing power and volatility in raw material prices.  The impact
of these risks on ASL Industries' credit risk profile is, however,
offset by its established relationship with its largest customer,
Tata Motors Ltd (TML).

Outlook: Stable

CRISIL believes that ASL Industries will maintain a stable credit
risk profile over the medium term, despite the slowdown in the
automotive sector.  The outlook may be revised to 'Positive' if
ASL Industries is able to diversify its customer base, and
increase its profitability.  Conversely, the outlook may be
revised to 'Negative' if the company's profitability, debt
protection measures, and operating margins decline considerably
from current levels.

                     About ASL Industries

ASL Industries is part of the Jamshedpur-based ASL group, which
has interests in iron and steel, sheet metal, and FRP components,
and authorised sales and service dealership for Tata Motors
Limited (TML).  Incorporated as Ajanta Composite Pvt Ltd in 1992,
the ASL Industries has a presence in auto ancillary industry and
it caters to the demand of Tata Motors Limited.  The company is
managed by Mr. Dilip Kumar Goyal and Mr. Vipul Singh.  ASL
Industries reported a profit after tax (PAT) of Rs. 6.9 million on
net sales of Rs. 488 million for 2007-08 (refers to financial
year, April 1 to March 31), as against a PAT of Rs. 3.6 million on
net sales of Rs. 433 million for the previous year.


BHARAT ELECTRICAL: CRISIL Rates Rs.100.0MM Cash Credit at 'BB+'
---------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Positive/P4' to the
various bank facilities of Bharat Electrical Contractors and
Manufacturers Pvt Ltd (BECMPL).

   Rs.100.0 Million Cash Credit        BB+/Positive (Assigned)
   Rs.60.0 Million Letter of Credit    P4(Assigned)
   Rs.200.0 Million Bank Guarantee     P4(Assigned)

The ratings reflect BECMPL's exposure to risks relating to small
scale of operations, its limited financial flexibility, and
revenue volatility inherent to its tender-based contract business.
These weaknesses are, however, partially offset by BECMPL's
financial risk profile that is marked by low gearing and adequate
debt protections measures.

Outlook: Positive

The 'Positive' outlook reflects CRISIL's expectation that BECMPL's
financial risk profile marked by strong debt protection measures
and its project execution abilities in its contract jobs business
could translate into an upward rating revimsion.  The outlook
could be revised to 'Stable' if there are any
penalties/obligations arising out of lapses in execution in
company's power line contracts, particularly in the large Nashik
project or if the company's financial flexibility deteriorates
further.

                        About BECMPL

Incorporated in 2005 by Mr. Shantinath Patil and Ms. Sangeeta
Patil, BECMPL undertakes contracts in erection, installation,
commissioning and maintenance of power lines and also trades in
fabricated electrical components.  BECMPL's business is centred at
Sangli in Maharashtra. The company has undertaken contracts in
Maharashtra, Karnataka and Madhya Pradesh. In 2007, Bharat Metal
Works, a partnership firm owned by the Patil family and operating
in the same business was merged with BECMPL. BECMPL reported a
profit after tax (PAT) of Rs.37.8 million on net revenues of
Rs.389.5 million for 2007-08 (refers to financial year, April 1 to
March 31), as against a PAT of Rs.22.3 million on net revenues of
Rs.228.7 million for 2006-07.


KSE ELECTRICALS: CRISIL Rates Rs.190 Mil. Cash Credit at 'BB+'
--------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4' to the various
bank facilities of KSE Electricals Pvt Ltd (KSE).

   Rs.190 Million Cash Credit @        BB+/Stable (Assigned)

   Rs.5.9 Million Term Loans           BB+/Stable (Assigned)

   Rs.100 Million Letter of Credit     P4   (Assigned)
              and Bank Guarantee #

   @ Includes proposed limit of Rs.70 million.
   # Includes proposed limit of Rs.20 million.

The ratings reflect KSE's weak financial risk profile.  The rating
weakness is mitigated by KSE's established market presence in the
electrical equipment industry.

Outlook: Stable

CRISIL believes that KSE will continue to benefit from its
established market presence in the electrical equipment industry.
The outlook may be revised to 'Positive' in case of more-than-
expected improvement in KSE's profitability and debt protection
measures.  Conversely, the outlook may be revised to 'Negative' in
case of higher-than-expected debt-funded capital expenditure.

                           About KSE

KSE was started as a family business in 1962.  It manufactures
cable terminals, lugs, and connectors, overhead transmission and
distribution line accessories, and earthing and lightening
protection material.  The company has a wide geographical reach;
it derives around 65 per cent of its revenues from exports. For
2007-08 (refers to financial year, April 1 to March 31), KSE
reported a profit after tax (PAT) of Rs.10 million on net sales of
Rs.853 million, as against a PAT of Rs.5 million on net sales of
Rs.360 million in the previous year.


MAHESH TIMBER: CRISIL Rates Rs.250 Mil. Cash Credit at 'BB+'
------------------------------------------------------------
CRISIL has assigned its bank loan ratings of 'BB+/Stable/P4' to
the various bank facilities of Mahesh Timber Private Limited
(Mahesh Timber).

   Rs.250 Million Cash Credit Limit    BB+/Stable (Assigned)
   Rs.450 Million Letter of Credit     P4 (Assigned)

The ratings reflect Mahesh Timber's weak financial risk profile,
due to low profitability and small net worth; and high dependence
on Malaysian timber.  These, weaknesses are, however, partially
offset by the promoters' long-standing experience in the timber
business, and the expected improvement in Mahesh Timber's
operating efficiencies with the setting up of its Singapore
subsidiary.

CRISIL has combined the financials of Mahesh Timber and its
wholly-owned subsidiary, Mahesh Timber Singapore Pte Ltd, due to
common ownership and strong operational linkages between the two
companies.

Outlook: Stable

CRISIL believes that Mahesh Timber will maintain its current
market position in the timber business over the medium term, on
the back of expected improvement in operating efficiencies.
However, the company's financial flexibility will be restricted by
high gearing.  The outlook may be revised to 'Positive' if there
is a significant increase in the company's cash accruals, owing to
improvement in profitability.  Conversely, the outlook may be
revised to 'Negative' if the company undertakes a large debt-
funded capital expenditure, affecting the company's financial risk
profile.

                     About Mahesh Timber

Set up in 1998, by promoters Mr. Ashok Mittal (Managing Director)
and Mr. Shish Pal Mittal (group Chairman and brother of Mr.
Ashok), the Karnal-based company imports hardwood timber from
Malaysia, saws it at its mill in Gandhidham in Gujarat, and sells
it to local wholesalers in Haryana, Delhi, Punjab, and Uttar
Pradesh.  The wood is imported through Kandla Port. Until 2006-07,
the company imported timber through Singapore-based traders.  In
2007-08, Mahesh Timber set up a subsidiary in Singapore, Mahesh
Timber Singapore Pte Ltd, for direct procurement from Malaysian
plantation owners.

On a standalone basis, for 2007-08 the company reported a profit
after tax (PAT) of Rs. 3.5 million on net sales of Rs.684.8
million, as against a PAT of Rs.1.25 million on net sales of
Rs.600.0 million in the previous year.


MODERN STEELS: CRISIL Rates Various Bank Facilities at 'BB'
-----------------------------------------------------------
CRISIL has assigned its ratings of "BB/Stable/P4" to the various
bank facilities of Modern Steels Ltd (Modern Steels).

   Rs.350.0 Million Cash Credit       BB/Stable (Assigned)

   Rs.60.0 Million Standby Line       BB/Stable (Assigned)
            of Credit  

   Rs.150.0 Million Letter of         BB/Stable (Assigned)
            Credit*  

   Rs.317.0 Million Term Loan         BB/Stable (Assigned)

   Rs.28.0 Million Proposed Long      BB/Stable (Assigned)
         Term Bank Loan Facility

   Rs.150.0 Million Letter of Credit  P4 (Assigned)

   Rs.5.0 Million Bank Guarantee      P4 (Assigned)

The ratings reflect Modern Steels' weak financial risk profile
characterized by high gearing and weak debt protection indicators,
vulnerability of its margins to fluctuating raw material prices,
and moderate operating efficiencies due to power shortages.  These
rating weaknesses are partly offset by Modern Steel's established
presence in steel rolled products industry, and improving business
risk profile.

Outlook: Stable

CRISIL expects Modern Steels Ltd's (Modern Steels') financial risk
profile to remain weak over the near to medium term, due to large
capex plans and working capital requirements.  The outlook may be
revised to 'Positive' if Modern Steels' financial risk profile
improves as a result of infusion of substantial equity to fund
capex plans, or significant improvement in operating margins.
Conversely, the outlook may be revised to 'Negative' if the
company's operating margins deteriorate further, leading to
reduced cash accruals.

                     About Modern Steels

Incorporated in 1974, by Mr. Amarjit Goyal, Modern Steels is
listed on Mumbai Stock Exchange, with promoters holding almost 60
per cent of the shares in the company; the company is now headed
by Mr. Krishan Kumar Goyal, son of Mr. Amarjit Goyal. Modern
Steels manufactures low alloy and carbon steel rolled products,
and supplies these mainly to large original equipment
manufacturers such as Tata Motors, Ashok Leyland, Bharat Gears,
Lucas TVS, Mahindra & Mahindra, and Swaraj Mazda.

Modern Steels reported a profit after tax (PAT) of Rs.26 million
on net sales of Rs.2.86 billion in 2007-08, as against a PAT of
Rs.82 million on net sales of Rs.2.72 billion for the previous
year.


MYSORE PAPER: CRISIL Rates Rs.450MM Cash Credit Limit at 'BB+'
--------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Positive/P4' to the bank
facilities of The Mysore Paper Mills Ltd (MPM).

   Rs.450 Million Cash Credit Limit        BB+/Positive(Assigned)
   Rs.550 Million Letter of Credit Limit   P4(Assigned)
   Rs.10 Million Bank Guarantee            P4(Assigned)

The ratings reflect the company's presence in the extremely
competitive and commoditised newsprint (NP), writing and printing
paper (WPP), and sugar sectors, and the susceptibility of these
sectors to inherent cyclicality.  The ratings are also constrained
by MPM's below-average operating efficiency because of its small
WPP and sugar operations, old facilities, and large employee
costs, and the company's weak financial profile, reflected in high
gearing levels and low debt protection ratios.

The ratings are supported by steady demand prospects in the
domestic WPP and NP markets, the company's access to low-cost
captive wood plantations for manufacture of WPP and NP, and the
availability of financial support from the Government of Karnataka
(GoK), the company's largest shareholder.

Outlook: 'Positive'

CRISIL expects MPM's revenues and profitability to benefit from
high NP and WPP prices for most part of 2008-09, enabling a
moderate correction in its presently weak financial profile. Over
the medium term, benefits from the proposed capital expenditure
(capex) of about Rs.1 billion are expected to help partly mitigate
impact of lower end-product prices as the commodity cycle turns,
and support profitability. Besides, CRISIL expects continuing
support from GoK to help the company tide over financial
exigencies during cyclical downturns in the WPP and NP segments.
The rating may be upgraded if the company completes its proposed
large debt-funded capex without significant cost and time
overruns, and in case the correction in end-product prices is less
than expected.  However, the rating outlook may be revised to
'stable' should WPP and NP prices witness sharper than expected
correction over the near to medium term, in case of time or cost
overruns in the proposed capex which may require additional debt,
or in case of delayed support from the GoK during exigencies.

                             About MPM

MPM was founded in May 1936 by the Maharaja of the erstwhile
Mysore State. MPM became a government company in November 1977
when GoK acquired a controlling interest in the company.  As on
September 30, 2008, GoK held a 64.7 per cent stake; the remainder
was held by financial institutions and the general public.

MPM is an ISO-14001 certified company, producing NP, WPP and sugar
at its plant in Bhadravati, Shimoga District, Karnataka.  The
company has an installed capacity of 75000 tonnes per annum (tpa)
of NP, 30000 tpa of WPP, and 2500 tonnes crushed per day (TCD) of
sugar. MPM is the only company in India to have a sugar factory as
an integrated part of a paper mill, wherein bagasse, a sugar by-
product, is used as raw material for WPP.  The company also has a
41-megawatt captive power plant. MPM is proposing to invest about
Rs.1 billion to augment its power plant, modernise boilers and
evaporators, install a rotary lime kiln (environmental
requirement) and to improve energy efficiencies.

For the year ended March 31, 2008, MPM reported a net profit of
Rs. 50.6 million (Rs.6.31 million in 2006-07) on net sales of Rs.
3.74 billion (Rs.3.98 billion).  For the six-month period ended
September 30, 2008, the company reported a net profit of Rs.231.7
million (Rs. 64.0 million in the corresponding period of the
previous year) on net sales of Rs.2.06 billion (Rs. 1.71 billion).


SASA MUSA: CRISIL Assigns 'C' Ratings on Various Bank Facilities
----------------------------------------------------------------
CRISIL has assigned its rating of 'C/P4' to the various bank
facilities of Sasa Musa Sugar Works Ltd (SMSWL).

   Rs.370 Million Cash Credit Limits       C (Assigned)

   Rs.20.0 Million Term Loan               C (Assigned)

   Rs.77.3 Million Proposed Long Term      C (Assigned)
           Bank Loan Facility

   Rs.2.7 Million Bank Guarantee           P4 (Assigned)

The ratings reflect SMSWL's delay in payment of term loan
installment, its high gearing, and exposure to risks relating to
regulations in the sugar industry.  These weaknesses are, however,
partially offset by the vast experience of SMSWL's promoters, and
the company's advantages owing to the presence of its plant in the
sugar cane belt in North Bihar.

                            About SMSWL

Incorporated in March, 1933, SMSWL was promoted and founded by the
late Sheikh Mohammad Ibrahim.  The company's plant is located in
Sasa Musa, in North Bihar.  The company's plant has a capacity of
2450 tonnes crushed per day (TCD).  The plant is situated in the
sugar cane belt of north Bihar, where the concept of command area
ensures that the company has easy access to cane.  It has 412
villages allocated to it as its command area by the cane
commissioner.  It has no sugar mill within a 14 kilometre radius
of its factory.  Also, since there are only eight operational
sugar mills in Bihar, the company is able to sell its entire
produce within Bihar.  For 2007-08 (refers to financial year,
April 1 to March 31), SMSWL reported a profit after tax (PAT) of
Rs.8 million on operating income of Rs.335 million, as against a
PAT of Rs.21 million on operating income of Rs.451 million for
2006-07.


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


ADAM AIR: Unable to Pay IDR98 Bil. Debt to 219 Travel Agencies
--------------------------------------------------------------
Adam Air, incorporated as PT. Adam SkyConnection Airlines, has not
paid its debts of IDR98 billion (US$8.9 million) to 219 travel
agencies, The Jakarta Post reports citing a national travel
assocation.

According to the Post, Chair of the Indonesian Travel Agencies
Association (Asita) Ben Sukma said his association was now at the
stage of calculating Adam Air's remaining assets following the
company's inability to pay its debts.

"Right now we're expecting to get back about 20 to 30 percent of
the deposits since Adam Air doesn't have enough assets to return
the money in full," the report quoted Mr. Sukman telling
kompas.com.

The Post relates that the debts were mainly deposits which had put
down on Adam Air tickets that were never delivered.

Adam Air, (incorporated as PT. Adam SkyConnection Airlines), --
http://www.adamair.co.id/-- is a privately owned airline based
in Jakarta, Indonesia.  It used to operate scheduled domestic
services to over 20 cities and international services to Penang
and Singapore.  Its main base was Soekarno-Hatta International
Airport, Jakarta.  The airline had 21 domestic routes and four
international routes.  The domestic flight frequency reached 490
times per week and international flights reached 42 times per
week.  In 2007, Adam Air carried 5.2 million domestic passengers
and 120,618 passengers abroad.

As reported by the Troubled Company Reporter-Asia Pacific on
March 26, 2008, the Department of Transportation canceled Adam
Air's airline operations starting March 19 due to failure to
comply with the agency's safety standards.  Another TCR-AP
report noted that a leasing firm seized more than half of Adam
Air's fleet when the airline defaulted on payments.


INDOVER BANK: BI Officials Under AGO Probe Over Bank's Bankruptcy
-----------------------------------------------------------------
The Jakarta Post reports that the Attorney General's Office (AGO)
has revived the suspended 2001 investigation into the alleged
lending scandal following a request from Finance Minister Sri
Mulyani Indrawati, as the government seeks a connection to a
recent fiasco that resulted in a Dutch court declaring De
Indonesische Overzeese Bank N.V. (Indover) bankrupt.

The AGO, the Post relates, alleges Indover's recent bankruptcy was
linked to irregularities in several previous loan agreements.  It
cited the case of funds distributed from Indonesia to the
Netherlands that were disbursed back to Indonesian bad debtors.

According the report, assistant attorney general for special
crimes Marwan Effendy said prosecutors had suspected there were
violations in the aid disbursement by Bank Indonesia to Indover.

The Post quoted Mr. Effendy as saying "We acknowledged Indover had
already collapsed by that time, but BI insisted on disbursing the
$1 billion in assistance funds."

Mr. Effendy, according to the Post, added that the AGO would not
let those responsible off the hook.  "We'll go after those
involved in the disbursement, including the ones who approved the
decision."

In its probe in 2001, the Post recalls, the AGO named two suspects
in the case the bank's former president director, Sidharta S.P.
Suryadi, and the former managing director of its Hong Kong unit,
Permadi Gandapraja.

The two were accused of violating the bank's prudential principals
by disbursing loans without properly examining the debtors'
ability to repay, the report adds.

As reported by the Troubled Company Reporter-Asia Pacific on
Dec. 11, 2008, Antara News said that De Indonesische Overzeese
Bank N.V. (Indover), Bank Indonesia (BI)'s subsidiary based in
Netherlands, has been declared bankrupt by a local court.

                      About Bank Indonesia

Bank Sentral Republik Indonesia -- http://www.bi.go.id/-- was
created by a new Central Bank Act, the UU No. 23/1999 on Bank
Indonesia, enacted on May 17, 1999.  The Act confers it the
status and position as an independent state institution and
freedom from interference by the Government or any other
external parties.

                       About Indover Bank

A specialized wholesale bank active in trade finance, Indover Bank
is fully owned by the Indonesian central bank, Bank Indonesia.
Indover Bank is based in Amsterdam, has a branch in Hamburg,
wholly-owned subsidiaries in Hong Kong and Singapore, and a
representative office in Jakarta.

                          *     *     *

As reported by Troubled Company Reporter-Europe on October 13,
2008, Fitch Ratings downgraded Indover Bank's Long-term Issuer
Default Rating to 'D' from 'BB-', Short-term IDR to 'D' from 'B',
Individual rating to 'F' from 'D/E' and Support rating to '5' from
'3'.  These rating actions follow the announcement that Indover
Bank has been placed under administration, which Fitch considers
to be a default.


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


DELPHI CORP: Keeps Plan Exclusivity From Committee Until March 31
-----------------------------------------------------------------
Delphi Corp. has retained its sole right to file a reorganization
plan until March 31, 2008.

The U.S. Bankruptcy Court for the Southern District of New York
allowed Delphi to retain from the official committee of unsecured
creditors its exclusive rights to propose a Chapter 11 plan.
Other creditors are precluded by the confirmed plan from filing a
competing plan of their own, even though Delphi was unable to
implement the plan that the Court confirmed in January 2008,
Bloomberg's Bill Rochelle reports.

As reported by DELPHI BANKRUPTCY NEWS, the hearing to consider
preliminary approval of Delphi's and its affiliates' proposed
modifications to their confirmed First Amended Joint Plan of
Reorganization has been adjourned to 11:00 a.m. on March 24, 2009.

Delphi presented to the Court changes to their confirmed Plan
after Appaloosa Management, L.P., and other investors backed out
from their commitment to provide US$2.550 billion in exit
financing.  The new plan does not require financing from plan
investors, but requires more funding from primary customer General
Motors Corp., which is facing its own liquidity crisis, and
US$3.75 billion from an exit debt financing and a rights offering.

The Preliminary Plan Modification Hearing has been adjourned four
times.  Under the original schedule, the Debtors contemplated an
October 23, 2008 preliminary hearing and emergence from bankruptcy
by Dec. 31, 2008.

Delphi Corp. has signed deals with General Motors Corp. and its
DIP Lenders, led by JPMorgan Chase Bank, N.A., in order to have
access to borrowed cash until mid-2009.  Under its accommodation
agreement with lenders, Delphi has a Feb. 27, 2009 deadline to
file an updated plan of reorganization, and obtain commitments for
its bankruptcy exit loans, otherwise the DIP loans would mature
May 31, 2008.

The Debtors submitted proposed modifications to their confirmed
Plan of Reorganization on Oct. 3, 2008.  Under the modified plan,
the Debtors targeted a Dec. 17 confirmation hearing, and a Chapter
11 exit by year-end.  The modified plan does not require, in
addition to US$4,700,000,000 of debt exit financing, Appaloosa's
US$2,550,000,000 cash-for-equity investment, which was the
highlight of the Court-confirmed, but unconsummated,
Jan. 25, 2008 PoR.  The modified plan requires debt exit financing
of US$2.75 billion plus a US$1,000,000,000 raised through a rights
offering.

Delphi, however, has said that "in the face of the current
unprecedented turbulence in the credit markets and uncertainty in
the automobile industry," it does not anticipate emerging from
chapter 11 prior to December 31, 2008, when its financing deals
mature.

"Despite the efforts of the federal government to provide
stability to the capital markets and banks, the markets have
remained extremely volatile and liquidity in the capital markets
has been nearly frozen, resulting in an unprecedented challenge
for the Debtors to successfully attract emergence capital funding
for their Modified Plan, particularly in light of the current
conditions in the global automotive industry," John Wm. Butler,
Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in
Chicago, Illinois, said, in a court filing.

In its third quarter report on Form 10-Q, General Motors Corp.,
Delphi's primary customer, admitted, "Given the current credit
markets and the challenges facing the automotive industry, there
can be no assurance that Delphi will be successful in obtaining
US$3.8 billion in exit financing to emerge from bankruptcy."

GM has recorded Delphi-related charges US$4.1 billion for nine
months ended Sept. 30, 2008.  GM recorded a net loss of
US$2,542,000,000 on US$37,503,000,000 of revenues for three months
ended Sept. 30, 2008, compared with a net loss of
US$38,963,000,000 on US$43,002,000,000 of sales during the same
period in 2007.

General Motors, along with Ford Motor Company and Chrysler LLC,
has asked Congress to grant the U.S. carmakers access to
US$25 billion of the US$700 billion Troubled Asset Relief Program
approved by Congress to bail out financial institutions.
Congress is expected to tackle on Nov. 18 and 19 the proposed
bailout, which, according to reports, may be necessary to save
the U.S. automakers from collapse or bankruptcy.

A bankruptcy filing for GM could shatter its former unit Delphi's
plans to finally exit bankruptcy this year or early next year,
according to a report by Bloomberg News.  "If GM fails, it's
likely the Delphi reorganization fails, and Delphi converts to a
case under Chapter 7 -- a liquidation," Nancy Rapoport, a law
professor at the University of Nevada-Las Vegas, in an e-mail,
according to Bloomberg News.  "For the creditors of Delphi, this
of course isn't optimal, and the usual issues in Chapter 7,
determining the liquidation value of the company, will apply."

                      About Delphi Corp.

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

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

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

On October 3, 2008, Delphi filed modifications to their Confirmed
Plan.  The new plan does not require financing from the Appaloosa
group, but requires US$3.75 billion from an exit debt financing
and a rights offering, and additional funding from General Motors
Corp.

(Delphi Bankruptcy News, Issue No. 153; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ELPIDA MEMORY: Shares Hit Seven-Week High on Merger Talks
---------------------------------------------------------
Bloomberg News reports Elpida Memory Inc shares climbed 13 percent
to JPY582 as of the 11 a.m. break yesterday, Dec. 29, on the Tokyo
Stock Exchange, the most in more than seven weeks, after the
company said it began merger talks with Taiwanese chipmakers
including Powerchip Semiconductor Corp.

Elpida Chief Executive Officer Yukio Sakamoto told Bloomberg in a
Dec. 26 interview
that the company is talking with Powerchip, Rexchip Electronics
Co. and ProMOS Technologies Inc., but did not elaborate details of
the negotiations.

The company expects to release its third quarter FY 2008 financial
results on January 29, 2009.

Japan-based Elpida Memory Inc. (TYO:6665) --
http://www.elpida.com.-- is a
manufacturer of Dynamic Random Access Memory (DRAM) integrated
circuits.  The company's design, manufacturing and sales
operations are backed by world class technology expertise.  Its
300mm manufacturing facilities, Hiroshima Plant and a
Taiwan-based joint venture Rexchip Electronics, utilize the most
advanced manufacturing technologies available.  Elpida's advanced
portfolio features such characteristics as high-density, high-
speed, low power and small packaging profiles.  The company
provides DRAM solutions across a wide range of applications,
including high-end servers, mobile phone and digital consumer
electronics.

                         *     *     *

On September 16, 2008, the Troubled Company Reporter-Asia Pacific,
reported that Standard & Poor's Ratings Services revised the
outlook on its long-term corporate credit rating on Elpida Memory
Inc. to negative from stable.  According to S&P, the downward
revision is based on the increasing uncertainty over prospects for
a future earnings recovery, as well as the company's ability to
maintain its
financial soundness over the next two to three years, amid further
stagnation in the Dynamic Random Access Memory (DRAM) market.  At
the same time, S&P affirmed its 'BB-' long-term corporate credit
rating and long-term senior unsecured debt ratings on the company.

S&P noted Elpida said it will likely post operating losses for the
second quarter of fiscal 2008 (ending March 31, 2009) which will
equal or even exceed operating losses recorded in the first
quarter of JPY15.6 billion.  This is due to further deterioration
in the DRAM market over the last two to three months against a
backdrop of slackening demand for PCs and sluggish growth in
mobile phone sales.  The company is actively bolstering its market
position and earnings base by refining the circuit line width of
its chips to improve its production efficiency and by expressing
its intention to enter the foundry business in an attempt to
stabilize earnings.  While S&P believes that Elpida's position in
the DRAM market is strengthening, it also believes it will be
difficult for the company to turn around its performance in the
near term given the global economic slowdown, as well as the
severe competition in the DRAM industry.


ELPIDA MEMORY: Merges Divisions and Functions
---------------------------------------------
Elpida Memory Inc said that effective January 1, 2009, it will
merge its mobile and digital consumer divisions to make product
planning & development and resource-use more efficient and support
further expansion of its premier business.

The company will also merge its product quality assurance
functions including product quality assurance, technology for
reliability, factory & process quality assurance and
ISO/environmental monitoring.

Elpida also assigned these individuals to their new positions:

Shuichi Otsuka         Director
                       Chief Operating Officer (COO)
                       Head of DRAM Business Unit

Takao Adachi           Director
                       Chief Technology Officer (CTO)
                       Head of New Business Unit

Oliver Chang           Chief Sales Officer (CSO)
                      - will continue to serve as president
                        and CEO of Elpida Memory (USA) Inc.

Yoshitaka Kinoshita    Executive Officer, Mobile &
                        Digital Consumer Division

Akira Tsujimoto        Chief Quality Assurance Officer (CQO)

Meanwhile, Deputy Chief Sales Officer Tatsuya Iida is due to
resign on December 31, 2008.

Japan-based Elpida Memory Inc. (TYO:6665) --
http://www.elpida.com.-- is a
manufacturer of Dynamic Random Access Memory (DRAM) integrated
circuits.  The company's design, manufacturing and sales
operations are backed by world class technology expertise.  Its
300mm manufacturing facilities, Hiroshima Plant and a
Taiwan-based joint venture Rexchip Electronics, utilize the most
advanced manufacturing technologies available.  Elpida's advanced
portfolio features such characteristics as high-density, high-
speed, low power and small packaging profiles.  The company
provides DRAM solutions across a wide range of applications,
including high-end servers, mobile phone and digital consumer
electronics.

                         *     *     *

On September 16, 2008, the Troubled Company Reporter-Asia Pacific,
reported that Standard & Poor's Ratings Services revised the
outlook on its long-term corporate credit rating on Elpida Memory
Inc. to negative from stable.  According to S&P, the downward
revision is based on the increasing uncertainty over prospects for
a future earnings recovery, as well as the company's ability to
maintain its
financial soundness over the next two to three years, amid further
stagnation in the Dynamic Random Access Memory (DRAM) market.  At
the same time, S&P affirmed its 'BB-' long-term corporate credit
rating and long-term senior unsecured debt ratings on the company.

S&P noted Elpida said it will likely post operating losses for the
second quarter of fiscal 2008 (ending March 31, 2009) which will
equal or even exceed operating losses recorded in the first
quarter of JPY15.6 billion.  This is due to further deterioration
in the DRAM market over the last two to three months against a
backdrop of slackening demand for PCs and sluggish growth in
mobile phone sales.  The company is actively bolstering its market
position and earnings base by refining the circuit line width of
its chips to improve its production efficiency and by expressing
its intention to enter the foundry business in an attempt to
stabilize earnings.  While S&P believes that Elpida's position in
the DRAM market is strengthening, it also believes it will be
difficult for the company to turn around its performance in the
near term given the global economic slowdown, as well as the
severe competition in the DRAM industry.


IR LOAN: Fitch Affirms Special Mortgage Servicer Rating at 'CSS2'
-----------------------------------------------------------------
Fitch Ratings has affirmed IR Loan Servicing, Inc.'s asset-backed
special servicer rating at 'ABSS2(JPN)' and its commercial
mortgage special servicer rating at 'CSS2(JPN)'.  The ratings
reflect IR's strength of continued strong support from its parent,
Acom Co., Ltd. (Acom, 'A'/Stable/'F1'), its stable experienced
management, and well-established internal control and compliance
framework.

In February 2008, IR became 100%-owned subsidiary of Acom; and
Acom is scheduled to be a consolidated subsidiary of Mitsubishi
UFJ Financial Group, Inc.  As a member of a large financial
services group, IR reviewed its operations and servicing portfolio
in order to minimize the effect of the current severe market
conditions and to improve efficiency and profitability.  Based on
its review, IR changed its organizational structure in October
2008, by re-integrating five servicing departments into three
departments, consisting of Retail Servicing, Corporate Servicing
I, and Corporate Servicing II, which specializes in large secured
loans.  The servicer also has upgraded its legal section into the
Legal/Compliance Department to consolidate and strengthen its
compliance management.  Fitch will monitor the development of
these changes and their effect on IR's efficiency and
profitability.

Acom is one of Japan's largest consumer finance companies and has
continued to extend its support in various aspects of the
servicer's operations and management.  IR commenced servicing
operations in June 2001 and by March 2008, had serviced a
portfolio exceeding 793,000 loans with a total cumulative unpaid
principal balance of JPY5.3trn.


JAPAN AIRLINES: To Hike Fares on International Routes
-----------------------------------------------------
Japan Airlines Corp. has filed with the Land, Infrastructure,
Transport and Tourism Ministry a proposal to increase fares on its
key international routes from April 1, Japan Times reports citing
Kyodo News.

According to the report, the proposed fare hike also include a 13
percent rise for weekday flights to destinations in Latin America
and Hawaii, and a 10 percent hike for those to South Korea and
India.

The airline, Japan Times says, will seek approval for the new
Japan-Europe fares in early February.

Tokyo-based Japan Airlines International Company Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage.  Japan Airlines flies to the United States, Brazil and
France.

                          *     *     *

In April 2008, Fitch Ratings revised the Outlook on Japan
Airlines Corporation and its wholly owned operating subsidiary,
JAL International Co. Ltd.'s Long-term Issuer Default ratings
to Stable from Negative.  At the same time, Fitch affirmed both
companies' Long-term IDRs and ratings of outstanding bonds at
'BB-'.  The Outlook revision follows JAL's operational
turnaround and better liquidity.


TAKARA LEBEN: JCR Lowers Senior Debts Rating to 'BB+'
-----------------------------------------------------
Japan Credit Rating Agency, Ltd. (JCR) has downgraded its rating
on Takara Leben's senior debts, shelf registration and CP program
with maximum amount being decreased to JPY2 billion from JPYY10
billion from BBB-/Stable, preliminary BBB- and J-2 to BB+/Stable,
preliminary BB and J-3, respectively.

Senior debts: BB+/Stable
Shelf Registration: preliminary BB
Maximum: JPY30 billion
Valid: two years effective from February 2, 2008
CP: J-3
Maximum: JPY2 billion
Backup Line: 0%

Takara Leben is a condominium developer that was established in
1972.  The main condominium sales have slowed down. The lowered
sales price and escalated construction costs will decrease
profitability of this business. The company plans to ensure the
overall earnings level by offsetting the drop in condominium sales
with other businesses such as newly built detached housing, pre-
existing home sales, resale of pre-owned condominiums and asset
management.

However, the business environment surrounding the entire real
estate business has deteriorated and will remain severe.  The
downward pressure on the earnings of the company, which has a
solid business base in condominium sales, is increasing currently.
Although its pace of improvement in the financial structure has
slowed down in recent years, JCR values that it has changed its
management policy to the one aiming at an improvement of balance
sheet by means of reducing the swollen assets in the face of
deteriorated market condition.  It should be kept in mind that the
risk of deterioration in inventory quality has risen due to the
continuing deterioration in the market condition.

From a viewpoint of its inventory level and capital level, JCR
considers that the company has tolerance against a certain degree
of write-downs.  JCR affirmed the rating on senior debts of the
company on February 4, 2008.  The external business environment
has changed significantly since then and JCR is concerned about
the impact of the deteriorated business conditions on its earnings
and financial performance.  Accordingly, JCR downgraded the rating
on it.  JCR decided to reflect the subordinated feature of the
shelf registration in the rating for it specifically, following
downgrade of the rating on the senior debts.


UDMAC-J1 TRUST: Fitch Affirms Ratings on Classes F & G at Low-B
---------------------------------------------------------------
Fitch Ratings has affirmed all ratings of UDMAC-J1 Trust's trust
beneficiary interests due 2013 June, assigned Negative Outlooks to
Class E, F and G, and Stable Outlooks to all other classes:

  -- JPY25.8 bil. Class A TBIs affirmed at 'AAA'; Outlook Stable;

  -- JPY4.4 bil. Class B TBIs affirmed at 'AA'; Outlook Stable;

  -- JPY4.4 bil. Class C TBIs affirmed at 'A'; Outlook Stable;

  -- JPY4.5 bil. Class D TBIs affirmed at 'BBB'; Outlook Stable;

  -- JPY1.5 bil. Class E TBIs affirmed at 'BBB-' (BBB minus);
     Outlook Negative;

  -- JPY1.4 bil. Class F TBIs affirmed at 'BB+'; Outlook Negative;
     and

  -- JPY0.34 bil. Class G TBIs affirmed at 'BB'; Outlook Negative.

  * as of December 25, 2008

The rating affirmations are based on a periodical review of the
transaction, including analysis of the underlying loans and the
collateral properties.  The performances of the underlying
properties have generally been within Fitch's expectations. The
Negative Outlooks assigned to the Class F, E and G TBIs reflect
the agency's concern over the current condition of the real estate
market and the general financing environment, in light of the
approaching maturities of the underlying loans.  The underlying
loans include those to a Japanese Real Estate Investment Trus.
Fitch will continue to monitor the real estate market and the
financial state of this J-REIT.

This transaction, issued in September 2007, is a securitisation of
17 underlying assets, secured by 40 properties and beneficial
interests in their respective trusts.  No underlying asset has
been fully paid and no collateral property has been disposed of to
date.

Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to June
2008.  Unlike a Rating Watch which notifies investors that there
is a reasonable probability of a rating change in the short term
as a result of a specific event, rating Outlooks indicate the
likely direction of any rating change over a one- to two-year
period.


=========
K E N Y A
=========

TRITON PETROLEUM: Placed in Receivership
----------------------------------------
The Daily Nation reports that Triton Petroleum Company Ltd was put
into receivership on Dec. 19, 2008, under debentures it had
granted to secured lenders.  Abdul Zahir Sheikh and Peter Kahi
were appointed joint receivers and managers for the company.

Triton Petroleum, the report says, owes banks and oil firms,
including Kenya Commercial Bank and Engen Kenya Ltd, who are
seeking Kenyan government's assistance to recover their money.

However, the report relates industry sources said it was difficult
for the ministry to assist Engen recover money from Triton, as
theirs is a commercial dispute, which is not covered by the open
tender system (OTS) rules.

According to the report, Triton won the tender to import diesel on
behalf of other marketers in October under the open tender system
(OTS) for importation of crude oil and refined fuel supervised by
the Ministry of Energy.

Triton was required to import 80,000 metric tonnes of oil but
brought in 56,000MT of which they kept 26,000MT for their own
operations, leaving the balance to be shared by other marketers.

The report notes that industry players attribute the shortage of
fuel partly to Triton's holding of a lot of stocks of fuel at
Kipevu Oil Storage Facility in Mombasa, making it hard for other
firm to use the depot.

Meanwhile, the report says Triton Energy (K) Ltd, a sister firm to
Triton Petroleum, was also put under receivership on December 22,
2008.  Kereto Marima and Ian Small were appointed joint receivers
of Triton Energy's petroleum products pursuant to a debenture
dated July 8, 2008, the firm had granted Fortis Bank of
Netherlands.

Based in Nairobi, Kenya, Triton Petroleum Company Ltd wholesales
petroleum and other petroleum products.


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


ABITIBIBOWATER INC: Cuts Production, Expects US$45MM Closure Costs
------------------------------------------------------------------
AbitibiBowater Inc. disclosed in a regulatory filing with the
Securities and Exchange Commission several actions aimed at
creating a more flexible and responsive operating platform,
addressing ongoing volatility in exchange rates, energy and fiber
pricing, well as structural challenges in the North American
newsprint industry.  The efforts are a continuation of the
company's comprehensive strategic review of its operations and
assets that began immediately after the merger.

Approximately 830,000 metric tons of newsprint, 110,000 metric
tons of specialty grades and 70,000 metric tons of coated grades
will be removed from the marketplace.  Capacity reductions
include:

  -- The permanent closure by the end of the first quarter of
     2009 of the Grand Falls, Newfoundland and Labrador newsprint
     mill, representing 205,000 metric tons;

  -- The permanent closure by the end of 2008 of the Covington,
     Tennessee paper converting facility, representing 70,000
     metric tons of coated grades;

  -- The immediate idling, until further notice, of the Alabama
     River newsprint mill, in Alabama, representing 265,000
     metric tons;

  -- The immediate idling, until further notice, of two paper
     machines (No. 1 and No. 2) in Calhoun, Tennessee,
     representing 230,000 metric tons of capacity, including
     120,000 metric tons of newsprint and 110,000 metric tons of
     specialty grades; and

On a revolving basis, approximately 20,000 metric tons of monthly
newsprint downtime at other facilities across the organization
until market conditions improve.

The company has achieved US$320 million in annualized synergies
through Sept. 30, 2008, and believes it will reach its targeted
run rate of US$375 million of annualized synergies by year-end
2008, one full year ahead of plan.  AbitibiBowater also has
initiated a further 20% reduction in selling, general and
administrative costs in 2009, representing a US$60 million
reduction compared to its fourth quarter 2008 run rate.

"[This] announcement is consistent with previous actions and
demonstrates our ongoing commitment to be a stronger, more
competitive organization," stated president and chief executive
officer David J. Paterson.  "The North American newsprint market
continues to contract and our customers have told us they
anticipate further decline.  International customers have also
indicated that export growth will not be as strong in the coming
year.  We have the resolve to adapt to these realities and to set
the stage for continued quarter-over-quarter improvements."

Despite sustained efforts and discussions with government and
unions, the permanent closure of the Grand Falls facility is a
result of declining newsprint demand and high delivered cost.
Idlings of machines at Calhoun and the Alabama River newsprint
mill reflect softening markets for the products produced at these
facilities and the non-competitive cost structure of southern U.S.
electrical suppliers.

AbitibiBowater estimates it will incur cash closure costs of
approximately US$45 million related to severance and other closure
charges as a result of these actions.  The majority of these
closure costs will be paid during the second quarter of 2009.  A
fourth quarter 2008 non-cash asset impairment charge of
approximately US$180 million will be taken to reflect the
permanent closure of the Grand Falls mill and Covington paper
converting facility.

"We will make every effort to help mitigate the effects of these
capacity reductions, as we are mindful of the impact they will
have on affected employees and communities," added Mr. Paterson.
"Stakeholders made efforts to develop viable solutions to keep
these operations running, however, after careful deliberation,
these decisions were necessary given current market and economic
realities."

A total of approximately 1,100 employees are affected by these
capacity reductions.

The steps disclosed were designed to better position the company
for the future, an objective that is in the long-term interest of
AbitibiBowater stakeholders.  The company remains committed to
customer service and delivery of a high-quality product and will
work closely with customers to ensure a smooth transition.

AbitibiBowater will continue to assess its business, taking
necessary actions to better position the company in the global
marketplace.

                    About AbitibiBowater Inc.

Headquartered in Montreal, Canada, AbitibiBowater Inc. --
http://www.abitibibowater.com/-- produces a wide range of
newsprint, commercial printing papers, market pulp and wood
products.  It is the eighth largest publicly traded pulp and paper
manufacturer in the world.  AbitibiBowater owns or operates 27
pulp and paper facilities and 34 wood products facilities located
in the United States, Canada, the United Kingdom and South Korea.
Marketing its products in more than 90 countries, the company is
also among the world's largest recyclers of old newspapers and
magazines, and has more third-party certified sustainable forest
land than any other company in the world.  AbitibiBowater's shares
trade under the stock symbol ABH on both the New York Stock
Exchange and the Toronto Stock Exchange.

As reported in the Troubled Company Reporter on Nov. 13, 2008,
AbitibiBowater Inc. reported a net loss of US$302 million on sales
of US$1.7 billion for the third quarter 2008.  These results
compare with a net loss of US$142 million on sales of US$815
million for the third quarter of 2007, which consisted only of
Bowater Incorporated.  The company's 2008 third quarter results
reflect the full quarter results for Abitibi-Consolidated Inc. and
Bowater Incorporated as a combined company after their combination
on Oct. 29, 2007.

                          *     *    *

AbitibiBowater Inc. still carries Fitch's 'CCC+' Issuer Default
Rating assigned on April 1, 2008.  Outlook is negative.


ABITIBIBOWATER INC: Newfoundland Government Expropriates Assets
---------------------------------------------------------------
AbitibiBowater Inc. disclosed in a regulatory filing with the
Securities and Exchange Commission that it will consider all
options available to protect the interests of its stakeholders in
the expropriation of its provincial assets and contractual rights
to natural resources by the government of Newfoundland and
Labrador, Canada.

In a statement, Premier Danny Williams said the government would
expropriate provincial assets, excluding the Grand Falls paper
mill, as well as all water and land rights to the public and
private forestlands AbitibiBowater manages in the province.  The
Williams government also indicated the company may be paid for its
hydro assets with the expropriation but no commitment has been
made to ensure AbitibiBowater obtains proceeds representing the
full value of these operations.

"We are surprised by this course of action, especially given that
this unprecedented expropriation of property rights and assets
does not address the announced closure of the Grand Falls mill and
the needs of its 750 employees," stated David J. Paterson,
president and chief executive Officer.  "We have reiterated to the
government of Newfoundland and Labrador our intention to discuss
the disposal of our assets and rights in an orderly manner, while
protecting the best interests of our shareholders, debt holders,
employees and all other company stakeholders."

On Dec. 15, 2008, AbitibiBowater responded to the government
request to surrender company rights and recommended setting up a
joint working group to address issues related to the closure of
the Grand Falls mill and the company's overall presence in the
province.  Given this development, AbitibiBowater will review its
options, including all legal recourses.  The company will also
assess how these measures apply within the framework of U.S.-
Canada trade relations.

                  Lenders Waive Covenant Terms

Subsidiaries Bowater Canadian Forest Products Inc. and Bowater
Incorporated entered into amendments, effective as of Nov. 12,
2008, to Bowater's U.S. and Canadian Credit facilities, which,
among other things:

  1) waive the requirement that Bowater and BCFPI are required to
     comply immediately with the more restrictive borrowing base
     requirements by November 15, 2008 and providing instead for
     phased-in implementation through March 31, 2009, or
     extending to April 29, 2009, under certain circumstances and
     waive compliance with certain financial covenant
     requirements for the third quarter of 2008;

  2) amend certain covenants, including the leverage ratio, for
     the fourth quarter of 2008;

  3) increase the interest rate under each facility by 125 basis
     points;

  4) provide a lien on substantially all Canadian fixed assets
     and the shares of BCFPI's South Korean subsidiary, which
     operates BCFPI's Mokpo mill to Canadian lenders, as security
     for indebtedness in a principal amount not to exceed 10% of
     the shareholders' equity of BCFPI as of Sept. 30, 2008;

  5) add a provision requiring that 75% of the proceeds of asset
     sales by Bowater or its subsidiaries, including BCFPI, be
     used to reduce amounts outstanding under both facilities on
     a pro rata basis;

  6) reduce, pro rata, the aggregate amount of the commitment
     under both facilities by US$10 million; and

  7) require that Bowater and certain of its affiliates,
     including BCFPI, maintain no more than US$70 million of cash
     on hand on a combined consolidated basis, with any excess to
     be used to reduce amounts outstanding under the credit
     facilities.

A full-text copy of the eighth amendment and waiver to the credit
facility with Wachovia Bank, N.A., as administrative agent, is
available for free at http://ResearchArchives.com/t/s?36bb

A full-text copy of the tenth amendment and waiver to the credit
facility with The Bank of Nova Scotia, as administrative agent, is
available for free at http://ResearchArchives.com/t/s?36bc

                      Securities Delisting

AbitibiBowater has received notification from the New York Stock
Exchange that the company has fallen below its continued listing
criteria.  The average closing price of its common stock was less
than US$1.00 over a consecutive 30-day trading period.

The company has a period of six months from the date of
notification, with a possible extension, to bring the average
share price back above US$1.00.  Under NYSE rules,
AbitibiBowater's common stock will continue to be listed on NYSE
during this period, subject to the company's compliance with other
NYSE continued listing requirements.  AbitibiBowater plans to
notify NYSE that it intends to cure the deficiency, although there
can be no assurance that the company will be able to bring its
share price back above US$1.00 or will remain in compliance with
other NYSE continued listing standards.

"Our stock price has been pressured by an unprecedented period of
economic difficulty and market uncertainty that is impacting many
companies and their share price performance in our industry and
others," stated David J. Paterson, president and chief executive
officer of AbitibiBowater.

"We are taking proactive steps to address the matter and are
encouraged by our quarter-over-quarter improvements and the
progress we have made and continue to make in improving our
operating and financial performance.  The company remains
committed to its US$1 billion debt-reduction target and is
exploring several options to address upcoming debt maturities,
inclusive of asset sales," added Mr. Paterson.

AbitibiBowater's common stock remains listed on NYSE under the
symbol "ABH" but will be assigned a ".BC" symbol extension to
signify that the company is not in compliance with NYSE's
continued listing standards.

The company continues to be in compliance with the listing
requirements of the Toronto Stock Exchange.

                    About AbitibiBowater Inc.

Headquartered in Montreal, Canada, AbitibiBowater Inc. --
http://www.abitibibowater.com/-- produces a wide range of
newsprint, commercial printing papers, market pulp and wood
products.  It is the eighth largest publicly traded pulp and paper
manufacturer in the world.  AbitibiBowater owns or operates 27
pulp and paper facilities and 34 wood products facilities located
in the United States, Canada, the United Kingdom and South Korea.
Marketing its products in more than 90 countries, the company is
also among the world's largest recyclers of old newspapers and
magazines, and has more third-party certified sustainable forest
land than any other company in the world.  AbitibiBowater's shares
trade under the stock symbol ABH on both the New York Stock
Exchange and the Toronto Stock Exchange.

As reported in the Troubled Company Reporter on Nov. 13, 2008,
AbitibiBowater Inc. reported a net loss of US$302 million on sales
of US$1.7 billion for the third quarter 2008.  These results
compare with a net loss of US$142 million on sales of US$815
million for the third quarter of 2007, which consisted only of
Bowater Incorporated.  The company's 2008 third quarter results
reflect the full quarter results for Abitibi-Consolidated Inc. and
Bowater Incorporated as a combined company after their combination
on Oct. 29, 2007.

                          *     *    *

AbitibiBowater Inc. still carries Fitch's 'CCC+' Issuer Default
Rating assigned on April 1, 2008.  Outlook is negative.


ABITIBIBOWATER INC: To Sell Equity Interest in ACH for C$540MM
--------------------------------------------------------------
AbitibiBowater Inc. accepted a proposal for the sale of its equity
interest in ACH Limited Partnership to a major industrial energy
producer.  ACH Limited Partnership was established to hold hydro-
electric generating assets in Ontario, Canada, by the company's
Abitibi-Consolidated company of Canada subsidiary in April 2007.
The company owns a 75% equity interest in ACH Limited Partnership.

The proposal values the hydro assets, which have a combined
capacity of 136.8 MW, at C$540 million.  The resulting gross
proceeds for AbitibiBowater would be C$197.5 million.  As part of
the transaction, the buyer would also assume C$250 million of ACH
Limited Partnership's term debt.

"The signing of this proposal marks continued progress with our
de-leveraging initiatives," stated David J. Paterson, president
and chief executive officer of AbitibiBowater.  "We look forward
to continued de-leveraging progress as we implement additional
measures to improve our free cash flow generation."

The non-binding proposal for the sale of the hydro-electric
generating assets in Ontario is subject to due diligence, among
other terms and conditions.  While AbitibiBowater expects that a
definitive agreement will be reached in the first quarter of 2009,
no assurances can be provided as to when or if a definitive
agreement will be executed.

The proposal does not include the sale of the Iroquois Falls or
Fort Frances, Ontario mills.  AbitibiBowater stated that it is
pleased with the efforts both mills have made since the merger in
lowering their costs.  The mills remain competitive and the
company continues to look for investment opportunities to ensure
that they remain competitive.  AbitibiBowater is committed to
keeping workers and local communities informed about the sale of
ACH Limited Partnership as the process advances.

AbitibiBowater owns additional hydro assets, including an
installed share of capacity of 363MW in the Province of Quebec.

                      Q4 2008 Expectations

AbitibiBowater Inc. reaffirmed its guidance of significant
improvement in fourth quarter financial performance.  The company
expects its fourth quarter operating income, excluding gains on
asset sales, impairments and mill closure and other related
charges, to be in the range of US$65 million to US$95 million
compared to a US$9 million loss for the third quarter of 2008.
The company also expects its earnings before interest, taxes,
depreciation and gains on asset sales, impairments and mill
closure and other related charges (Adjusted EBITDA) to be in the
range of US$245 million to US$275 million for the fourth quarter
of 2008.  For the third quarter of 2008, Adjusted EBITDA was
US$175 million.

"This substantial improvement in the company's operating
performance is a result of our employees' efforts to achieve
synergies as well as reductions in input costs," stated
Mr. Paterson.  "Our input costs, particularly energy and fiber,
have declined dramatically this quarter.   We have also benefited
from a weakening Canadian dollar.   Despite lower volumes, as
evidenced by our production curtailments, we expect a substantial
improvement in financial performance in 2009 compared to 2008".

                    About AbitibiBowater Inc.

Headquartered in Montreal, Canada, AbitibiBowater Inc. --
http://www.abitibibowater.com/-- produces a wide range of
newsprint, commercial printing papers, market pulp and wood
products.  It is the eighth largest publicly traded pulp and paper
manufacturer in the world.  AbitibiBowater owns or operates 27
pulp and paper facilities and 34 wood products facilities located
in the United States, Canada, the United Kingdom and South Korea.
Marketing its products in more than 90 countries, the company is
also among the world's largest recyclers of old newspapers and
magazines, and has more third-party certified sustainable forest
land than any other company in the world.  AbitibiBowater's shares
trade under the stock symbol ABH on both the New York Stock
Exchange and the Toronto Stock Exchange.

As reported in the Troubled Company Reporter on Nov. 13, 2008,
AbitibiBowater Inc. reported a net loss of US$302 million on sales
of US$1.7 billion for the third quarter 2008.  These results
compare with a net loss of US$142 million on sales of US$815
million for the third quarter of 2007, which consisted only of
Bowater Incorporated.  The company's 2008 third quarter results
reflect the full quarter results for Abitibi-Consolidated Inc. and
Bowater Incorporated as a combined company after their combination
on Oct. 29, 2007.

                          *     *    *

AbitibiBowater Inc. still carries Fitch's 'CCC+' Issuer Default
Rating assigned on April 1, 2008.  Outlook is negative.


SSANGYONG MOTOR: Major Shareholder Asks Gov't. to Help Secure Loan
------------------------------------------------------------------
The Scotsman reported that Shanghai Automotive Industry
Corporation (SAIC) has asked the South Korean government to help
secure new loans for Ssangyong Motor Co. Ltd., as the company
struggles to stave off a potential liquidity crisis.

SAIC, the report says, seeks government's help to ensure that
Korea Development Bank (KDB), Ssangyong's main creditor, offers
new loans to the firm.

"We will convey the position to KDB if Shanghai Automotive
Industry and Ssangyong's labour union agree on self-rescue
efforts," the Scotsman quoted Lee Dong-geun, deputy minister for
industry at the ministry of knowledge economy as saying.

SAIC holds a majority stake in troubled Ssangyong, the report
notes.

As reported by the Troubled Company Reporter-Asia Pacific on
Dec. 23, 2008, Yonhap News Agency said that Ssangyong Motor cannot
pay its workers' wages for December on time due to prolonged
liquidity crisis.

In a letter to employees obtained by Yonhap News, Ssangyong said
that "payment of salary for December is impossible due to a lack
of funds for operations."

According to Yonhap News, the company said it expects to post a
loss of up to KRW100 billion (US$76.9 million) this year.

                    About Shanghai Automotive

Shanghai Automotive Industry Corporation (SAIC) is a government-
owned company, which has about 50 plants in the Shanghai area.
SAIC makes passenger cars, tractors, motorcycles, trucks, and
buses.  Its joint venture with General Motors, Shanghai General
Motors, makes Buicks and other GM cars for the Chinese market.
Through Shanghai Volkswagen Automotive Company, a JV with
Volkswagen, SAIC also makes the Lavida.  The company's other
operations include car leasing, auto parts wholesale and retail,
and financing.  It has production facilities across China as well
as in the US, Germany, the UK, Hong Kong, Japan and Korea.

                      About Ssangyong Motor

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


UTSTARCOM INC: To Wind Down Korean Operations & Cut 10% of Jobs
---------------------------------------------------------------
The Board of Directors of UTStarcom, Inc., approved December 16,
2008, a restructuring plan designed to reduce the company's
operating expenses.  The Plan includes, among other things,
winding down the company's Korea-based handset manufacturing
business unit and implementing an additional worldwide reduction
in force of roughly 10% of the company's headcount.

                    Winding Down of Korea BU

The principal activity of Korea BU is supplying handsets to
Personal Communications Devices LLC for sale in the United States.
Following the company's strategic plan to sell or wind down non-
core businesses to reduce the company's annual operating expenses,
the company plans to wind down the operations of Korea BU and
complete a reduction in force of all remaining employees in the
unit over an roughly six month period.  In connection with the
Korea BU wind-down, on December 16, 2008, the company furnished
PCD LLC with 180-days' notice of termination of the Supplier
Agreement, dated July 1, 2008, by and between the company and PCD
LLC.  The company currently manufactures and sells handsets to PCD
LLC pursuant to the Supplier Agreement.  Management expects to
complete the wind down of Korea BU by the end of the second
quarter of 2009.  In connection with the wind down, the company
expects to incur a restructuring charge of roughly US$10 million,
comprised largely of write-downs of assets and cash payments
associated with one-time severance benefits, and will record the
charge in the fourth quarter of 2008.

                  Worldwide Reduction in Force

In addition to reductions in force associated with the wind down
of Korea BU and other non-core businesses, the company plans to
further reduce its worldwide headcount by roughly 10%, or roughly
460 employees.  This reduction in force will be based primarily in
the United States and China; other international locations will be
impacted to a lesser degree.  Management expects to complete the
worldwide workforce reduction by the end of the first quarter of
2009.  The company expects to incur a restructuring charge of
roughly US$8 million in connection with the reductions in force
worldwide and in non-core businesses other than Korea BU.  The
charge, which will be comprised largely of cash payments
associated with one-time severance benefits, will be recorded in
the fourth quarter of 2008.

In addition, the non-executive members of the board have agreed to
a reduction in their board retainers for a period of one year.
Furthermore, Peter Blackmore, UTStarcom's CEO and president, and
other executive officers have voluntarily agreed to decline their
cash bonuses for 2008.

The company's Handset segment will continue to supply handsets to
the China market.  Additionally, the company has initiated actions
to disband its Custom Solutions Business Unit by the end of the
first quarter 2009.

Although each geographic region and business will be affected,
management's plan will protect the most strategically important
R&D investments, customer relationships and product areas.

Over the past twelve months the company has implemented a number
of IT systems and operational enhancements.  With the improved
operational capability, the company is now able to eliminate
functional duplication and consolidate a number of back office
functions into our China operations.  This process will start in
the first quarter of 2009 and be executed over the first three
quarters of 2009.

"Over the past twelve months, we have achieved a year-over-year
OPEX reduction of 20% and streamlined our business to improve our
competitive and financial position," said Peter Blackmore,
UTStarcom's CEO and president.  "These additional measures will
reduce our annualized expense base by another 25% or US$100
million.
Importantly, these actions will advance our strategic goals by
increasing our focus on our IP-based portfolio targeting the
developing regions of the world."

The actions represent a continuation of the strategic plan
UTStarcom outlined in September of 2007.  Since the beginning of
this year the company has divested a number of non-core business
units and increased its net cash position by US$150 million.

A full-text copy of UTStarcom, Inc.'s press statement, including a
discussion of Pro Forma Non-GAAP Financial Measures, is available
at no charge at:

             http://ResearchArchives.com/t/s?36dd

Headquartered in Alameda, California, UTStarcom Inc. (Nasdaq:
UTSI) -- http://www.utstar.com/-- provides IP-based, end-to-end
networking solutions and international service and support.  The
company develops, manufactures and markets its broadband,
wireless, and terminal solutions to network operators in both
emerging and established telecommunications markets worldwide.
UTStarcom was founded in 1991 and is headquartered in Alameda,
California.  The company has research and development centers in
the USA, Canada, China, Korea and India.

                      Going Concern Doubt

PricewaterhouseCoopers LLP, in San Jose, California, expressed
substantial doubt about UTStarcom Inc.'s ability to continue as a
going concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007.  The auditing firm
pointed to the company's recurring net losses, negative cash flows
from operations and significant debt obligations.

As of September 30, 2008, the company's consolidated balance
sheets show US$1.44 billion in total assets, and US$901.3 million
in
total liabilities.


UTSTARCOM INC: Has Liquidity to Fund Biz for the Next 12 Months
---------------------------------------------------------------
Management of UTStarcom Inc. said in a regulatory filing with the
Securities and Exchange Commission it believes the company has
sufficient liquidity to finance its anticipated working capital
and capital expenditure requirements for the next twelve months.
Management, however, added that in an effort to further improve
the company's profitability and cash flows, it has intensified its
focus on the company's fixed cost base to better align with
operations, market demand and projected sales levels.

In the company's quarterly report on Form 10-Q for the period
ended September 30, 2008, management cited factors that raise
substantial doubt as to the company's ability to continue as a
going concern:

  -- The company reported net losses of US$195.6 million,
     US$117.3 million and US$532.6 million for the years ended
     December 31, 2007, 2006 and 2005, respectively.

  -- At December 31, 2007, the company's accumulated deficit
     aggregated US$691.2 million.

  -- During the year ended December 31, 2007, the company used
     US$218.2 million of cash in operations.

  -- At December 31, 2007, the company had cash and cash
     equivalents of US$437.4 million of which US$289.5 million was
     used to repay the convertible subordinated notes due on
     March 1, 2008.

  -- The amount included a principal payment of US$274.6 million
     and US$14.9 million in accrued interest.

  -- At December 31, 2007, US$322.4 million of the company's cash
     and cash equivalents was held by its subsidiaries in China
     and China imposes currency exchange controls on transfers
     of funds outside of China.

  -- Additionally, the available lines of credit in China are
     significantly less than what has been available to the
     company historically.

The company had an operating loss of US$96.9 million and a net
loss of US$69.4 million for the nine months ended September 30,
2008.  The company had an operating loss of US$34.9 million and a
net loss of US$55.9 million for the three months ended September
30, 2008.

At September 30, 2008, the company's consolidated balance sheets
show US$1.44 billion in total assets, and US$901.3 million in
total liabilities.  The company had an accumulated deficit of
US$760.5 million.

Cash used in operations was US$31.9 million during the nine months
ended September 30, 2008. In the third quarter of 2008, the
company completed the sale of PCD for a total sale consideration
of approximately US$233.4 million.  At September 30, 2008, the
company had cash and cash equivalents of US$329.0 million in the
aggregate to meet the company's liquidity requirements of which
US$155.4 million was held by its subsidiaries in China and
continues to be subject to currency exchange controls on transfers
of funds from China.

In the regulatory filing, the company said that, going forward,
the amount of cash available for transfer from the China
subsidiaries is limited both by the liquidity needs of the
subsidiaries in China and by Chinese-government mandated
requirements including currency exchange controls on transfers of
funds outside of China.

As reported by the Troubled Company Reporter,
PricewaterhouseCoopers LLP, in San Jose, California, expressed
substantial doubt about UTStarcom's ability to continue as a going
concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007.  The auditing firm
pointed to the company's recurring net losses, negative cash flows
from operations and significant debt obligations.

The company noted that currently, its primary sources of available
credit are a series of credit facilities in China and each
borrowing under the credit facilities is subject to the bank's
then current favorable opinion of the credit worthiness of the
company's China subsidiaries, as well as the bank having funds
available for lending and other Chinese banking regulations.
Management cannot be certain that additional lines of credit will
be available to the company on commercially reasonable terms or at
all.

Accoridng to the company, if projected sales do not materialize,
management may need to further reduce expenses.  In addition, the
company may require additional equity or debt financing.  If
future funds are raised through issuance of stock or debt, these
securities could have rights, privileges or preference senior to
those of the company's common stock and debt covenants could
impose restrictions on the company's operations.  The sale of
additional equity securities or debt financing could result in
additional dilution to the company's current shareholders.  There
can be no assurance that additional financing, if required, will
be available on terms satisfactory to the company or at all.

Headquartered in Alameda, California, UTStarcom Inc. (Nasdaq:
UTSI) -- http://www.utstar.com/-- provides IP-based, end-to-end
networking solutions and international service and support.  The
company develops, manufactures and markets its broadband,
wireless, and terminal solutions to network operators in both
emerging and established telecommunications markets worldwide.
UTStarcom was founded in 1991 and is headquartered in Alameda,
California.  The company has research and development centers in
the USA, Canada, China, Korea and India.


* KOREA: Lenders Plan Liquidity Support to Troubled Automakers
--------------------------------------------------------------
KBS News reports that Korean banks are considering liquidity
support for troubled domestic carmakers amid slumping sales.

The lenders, according to KBS News, said they will provide
liquidity support for automakers making active restructuring
efforts after the Knowledge Economy Ministry announced it will
consider having banks help the manufacturers.

Citing an official at the state-run Korea Development Bank, the
report says, creditors will determine whether to bail out a
carmaker based on its restructuring performance.


* KOREA: Non-Viable Builders and Shipbuilders to be Restructured
----------------------------------------------------------------
At least 40 domestic builders and shipbuilders classified as non-
viable are expected to face restructuring following a government
announcement that unhealthy firms will be revamped starting in
January, Yonhap News reports citing financial sources.

According to Yonhap's sources, given cash flows, operating profits
and the debt ratio, at least 40 construction firms and smaller
shipbuilders could be classified as candidates for the
restructuring.

According to the report, Korea's Financial Supervisory Service
said the government will seek to overhaul the two sectors to
prevent non-viable firms from collapsing, as their insolvency
would weigh heavily on the local economy.


===========
K U W A I T
===========


* Fitch Comments on Rating Actions on Kuwait's Global Investments
-----------------------------------------------------------------
Fitch Ratings has commented further on the rating actions it took
on December 15, 2008 on Kuwait's Global Investment House,
following the announcement that HSBC has been appointed as
Global's international financial advisor.

Fitch understands that the loan obligation due from Global on
December  15, 2008 has still not been repaid in full, although the
lending banks have agreed to form a steering committee to maintain
dialogue with Global.  The agency believes that Global's advisors
will try to arrange a further grace period to allow the
exploration of all options.  In the intervening period Fitch
understands that Global intends to continue to meet interest
payments on all outstanding debt as they become due.  The Long-
term Issuer Default Rating of 'C', Short-term IDR 'C' and
Individual rating 'E' remain on Rating Watch Negative.  Fitch will
maintain regular contact with Global and HSBC, and comment further
when new details emerge from the discussions.

Global's KWD50m local currency bond and its US$2bn EMTN programme
- both rated 'CC'/ 'RR4' - remain on Rating Watch Negative. There
has been no issuance under the EMTN to date.


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


BRADLEYS TRANSPORT: Court Hears Wind-Up Petition
------------------------------------------------
On December 15, 2008, the High Court at Auckland heard a petition
to have Bradleys Transport (1998) Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on October 1, 2008.


BRENDO ENTERPRISES: Appoints Blanchett and Hollis as Liquidators
----------------------------------------------------------------
On November 17, 2008, David Blanchett and Malcolm Hollis were
appointed as liquidators of Brendo Enterprises Ltd.

Only creditors who were able to file their proofs of debt by
Dec. 19, 2008, will be included in the company's dividend
distribution.

The Liquidators can be reached at:

          David Blanchett
          Malcolm Hollis
          c/o PricewaterhouseCoopers
          corner of Bryce and Anglesea Streets
          PO Box 191, Hamilton
          Telephone:(07) 838 3838
          Facsimile:(07) 839 4178


CORTEQ SOLUTION: Court Hears Wind-Up Petition
---------------------------------------------
On December 19, 2008, the High Court of Auckland heard a petition
to have Corteq Solutions Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on October 16, 2008.


FINISHED FLOORS: Court Hears Wind-Up Petition
---------------------------------------------
On December 15, 2008, the High Court at Auckland heard a petition
to have Finished Floors 2005 Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on September 25, 2008.


G & D LOGAN: Appoints Fatupaito and McCloy as Liquidators
---------------------------------------------------------
On November 17, 2008, the members of G & D Logan Ltd. appointed
Vivian Fatupaito and Colin McCloy as the company's liquidators.

Only creditors who were able to file their proofs of debt by
Dec. 19, 2008, will be included in the company's dividend
distribution.

The Liquidators can be reached at:

         Vivian Fatupaito
         c/o David Blanchett
         c/o PricewaterhouseCoopers
         (PO Box 191), Hamilton
         Telephone:(07) 838 3838
         Facsimile:(07) 839 4178


GOLDEN FORTUNE: Court to Hear Wind-Up Petition on January 19
------------------------------------------------------------
A petition to have Golden Fortune Ltd.'s operations wound up will
be heard before the High Court of Christchurch on January 19,
2009, at 10:00 a.m.

David Reid Homes (Canterbury) Limited filed the petition against
the company on November 10 2008.

The Petitioner's solicitor is:

          S. C. Clay
          Lane Neave, Lawyers
          PricewaterhouseCoopers Centre, Level 15
          119 Armagh Street
          PO Box 13149, Christchurch


GUARDIAN PROPERTY: Creditors' Proofs of Debt Due on Dec. 31
-----------------------------------------------------------
The creditors of Guardian Property Management Ltd. are required to
file their proofs of debt by December 31, 2008, to be included in
the company's dividend distribution.

The company's liquidator is:

          Michael Joseph Cooper
          M. J. Cooper
          PO Box 90777, Auckland Mail Service Centre
          Auckland 1142


INTERNATIONAL MARINE: Placed Under Voluntary Liquidation
--------------------------------------------------------
On November 19, 2008, the shareholders of International Marine
Brokers Ltd. resolved to voluntarily liquidate the company's
business.

Only creditors who were able to file their proofs of debt by
Dec. 22, 2008, will be included in the company's dividend
distribution.

The company's liquidators are:

          Stephen Mark Lawrence
          Anthony John McCullagh
          PKF Corporate Recovery & Insolvency (Auckland) Limited
          PO Box 3678, Auckland 1140
          Telephone:(09) 306 7425
          Facsimile:(09) 302 0536


K V C HOLDINGS: Court Hears Wind-Up Petition
--------------------------------------------
On December 12, 2008, the High Court of Auckland heard a petition
to have K V C Holdings Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on August 8, 2008.


KAIAPOI COUNTRY: Appoints Crichton and Horne as Liquidators
-----------------------------------------------------------
On November 17, 2008, the shareholders of Kaiapoi Country Classics
Ltd. appointed David Donald Crichton and Keiran Anne Horne as the
company's liquidators.

Only creditors who were able to file their proofs of debt by
Dec. 17, 2008, will be included in the company's dividend
distribution.

The Liquidators can be reached at:

         David Donald Crichton
         Keiran Anne Horne
         c/o Sue Fletcher
         HFK Limited
         567 Wairakei Road
         PO Box 39100, Christchurch
         Telephone:(03) 352 9189


KIWI INTERNATIONAL: Court Hears Wind-Up Petition
------------------------------------------------
On December 15, 2008, the High Court of Hamilton heard a petition
to have Kiwi International Rowing Skiffs Ltd.'s operations wound
up.

The Commissioner of Inland Revenue filed the petition against the
company on October 8, 2008.


LEADER DEVELOPMENT: Court Hears Wind-Up Petition
------------------------------------------------
On December 15, 2008, the High Court of Auckland heard a petition
to have Leader Development Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on October 8, 2008.


LEWIS WRIGHT: Commences Liquidation Proceedings
-----------------------------------------------
Lewis Wright (2004) Ltd. commenced liquidation proceedings on
November 13, 2008.

The company's liquidator is:

          David Brendon Quinn
          Graham & Dobson Limited
          Chartered Accountants
          PO Box 1247, Gisborne
          Telephone:(06) 869 1234
          Facsimile:(06) 867 8357


MOUNTAIN LAKE: Court Hears Wind-Up Petition
-------------------------------------------
On December 15, 2008, the High Court of Christchurch heard a
petition to have Mountain Lake Holdings Ltd.'s operations wound
up.

Burke Electrical Limited filed the petition against the company on
October 15, 2008.


PRIMESIDE LTD: Court Hears Wind-Up Petition
-------------------------------------------
On December 15, 2008, the High Court at Auckland heard a petition
to have Primeside Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on September 30, 2008.


RISING PRODUCTIONS: Court Hears Wind-Up Petition
------------------------------------------------
On December 19, 2008, the High Court of Auckland heard a petition
to have Rising Productions Ltd.'s operations wound up.

Harrison Grierson Consultants Limited filed the petition against
the company on October 22, 2008.


SPARROW ENTERPRISES: Court to Hear Wind-Up Petition on January 28
-----------------------------------------------------------------
A petition to have Sparrow Enterprises Ltd.'s operations wound up
will be heard before the High Court of Rotorua on January 28,
2009, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition against the
company on October 24, 2008.

The Petitioner's solicitor is:

          A. Murphy
          Inland Revenue Department
          Legal and Technical Services
          1 Bryce Street
          PO Box 432, Hamilton
          Telephone:(07) 959 0491
          Facsimile:(07) 959 7614


TANNADYCE INVESTMENTS: Court Hears Wind-Up Petition
---------------------------------------------------
On December 15, 2008, the High Court at Christchurch heard a
petition to have Tannadyce Investments Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on November 7, 2008.


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


TOLEDO MINING: Cuts Workforce by 90% as Nickel Demand Slows
-----------------------------------------------------------
Toledo Mining Corp. ("TMC") laid off some 600 employees or 90
percent of its total workforce while some directors took pay cuts
amid significant decline in nickel demand, Ronnel Domingo of the
Philippine Daily Inquirer reports.

PDI relates that in an interim report covering six months to
September, company chair Reginald Eccles said the management
resolved "to manage the company's assets on the presumption of an
extended period of poor demand and low nickel prices."

"The remaining staff in the Philippines now comprise a core team
of sufficient skill mix to manage our nickel resources, to
maintain the Berong mine [in Palawan] and plant in good order and,
very importantly, to convert [the company's memorandums of
understanding with Jiangxi Rare Earth and Rare Metals Tungsten
Group Co. Ltd] into legally binding agreements and advance value
added processing trials," Mr. Eccles said in the report obtained
by PDI.

PDI relates Mr. Eccles added TMC's four non-executive directors
have agreed to a 20-percent reduction in fees "as a demonstration
of support for these harsh but essential cost-cutting measure."

According to PDI, TMC has a 56.1-percent stake in the Berong
nickel project, which it shares with partners Atlas Consolidated
Mining and Development Corp. and European Nickel Plc.  The Berong
partners have entered into memorandums of understanding with
China's Jiangxi mainly to finance and build a jointly owned nickel
processing plant.


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


* FITCH: US$17.4MM Bailout Gives Automakers Temporary Relief
------------------------------------------------------------
A rapid or disorderly bankruptcy by one or more of the U.S. auto
manufacturers or their captive finance companies would likely
result in negative rating actions on certain U.S. dealer floorplan
ABS transactions, although the U.S. government's US$17.4 billion
bailout announcement provides at least temporary relief and limits
the likelihood of this event occurring in the near term, according
to Fitch Ratings.

To date the performance of Fitch rated dealer floorplan ABS is
within expectations with few signs of stress from the financial
pressure being experienced at the manufacturer, captive finance
company and dealership levels.

The current precarious financial condition of the US auto
manufacturers, however, have raised questions among investors
regarding the potential impact of a manufacturer bankruptcy on the
performance of U.S. auto ABS transactions in general and dealer
floorplan transactions in particular. When analyzing dealer
floorplan loan securitizations, Fitch has always assumed that the
manufacturer files Chapter 11 and the following occur
simultaneously: auto sales decline; numerous dealers default on
their floorplan loans; and a large number of new and used vehicles
are repossessed and auctioned as a result.

The transaction structure is then stressed to determine if credit
enhancement is sufficient to withstand vehicle value declines
consistent with the proposed rating level.

The orderliness of the bankruptcy is a key assumption in Fitch's
analysis as it limits the likelihood of catastrophic dealer
bankruptcies and highly disorganized collateral liquidations.  The
fact that all three US manufacturers and captive finance companies
are experiencing such significant financial and operational
difficulty could test the validity of this assumption particularly
given the recessionary environment and the inability of dealers to
obtain alternative financing because of credit market pressures.

If the likelihood of a disorderly bankruptcy increases, Fitch
would place the dealer floorplan transactions on Rating Watch
Negative which could be followed in quick succession with
downgrades if there are any early signs that the performance of
the transactions is outside of Fitch's expectations.  The
magnitude of the downgrades will depend on the degree to which
actual performance deviates from Fitch's stress scenarios.
Fitch has had numerous conversations with the US dealer floorplan
ABS issuers over the past two months.

Certain issuers have indicated that they are taking steps to
reduce dealer credit lines and otherwise mitigate the
transactions exposure to higher risk borrowers.  While positive,
it is unclear if these steps will be of sufficient benefit to
offset the increase in bankruptcy risk.

Fitch has requested additional information from the issuers which
it will use to assess stress assumptions related to various
bankruptcy scenarios.  Fitch will review this information to
determine if any rating actions are warranted.

Fitch currently rates approximately US$12 billion in dealer
floorplan ABS related to the US domestic auto manufacturers.
These were issued by each of Ford's, General Motors's and
Chrysler's corresponding captive finance arms through nine
separate issuances and include a combination of fixed and floating
rate securities from seven trusts: Ford's Ford Credit Floorplan
Master Owner Trust (FCFMOT), GMAC's Superior Wholesale Inventory
Finance Trust VIII (SWIFT VIII), Superior Wholesale Inventory
Finance Trust X (SWIFT X), Superior Wholesale Inventory Finance
Trust XI (SWIFT XI), Superior Wholesale Inventory Financing Series
2007-AE-1, and SWIFT Master Auto Receivables Trust (SMART) and
Chrysler's Master Chrysler Financial Owner Trust.


* BOND PRICING: For the Week December 22 to December 26, 2008
-------------------------------------------------------------

   AUSTRALIA                 Coupon     Maturity   Currency  Price
   ---------                 ------     --------   --------  -----

Ainsworth Game                8.000%   12/31/09   AUD       0.65
Aust & NZ Bank                6.540%   06/29/49   GBP      67.98
Allco Hit Ltd                 9.000%   08/17/09   AUD       9.00
Alumina Finance               2.000%   05/16/13   USD      62.01
Antares Energy               10.000%   10/31/13   AUD       0.90
Babcock & Brown Pty           8.500%   11/17/09   NZD      52.36
BBI Ntwrks NZ Ltd             8.000%   11/30/12   NZD      21.78
Becton Property Group         9.500%   06/30/10   AUD       0.11
Bounty Industries Ltd        10.000%   06/30/10   AUD       0.04
Capral Aluminum              10.000%   03/29/12   AUD      60.00
China Century                12.000%   09/30/10   AUD       0.70
Cra Finance Ltd               7.125%   12/01/13   USD      67.89
Djerriwarrh Inv               6.500%   09/30/09   AUD       3.96
GE Cap Australia              6.000%   03/15/19   AUD      68.58
Hanson Australia              5.250%   03/15/13   USD      19.00
Heemskirk Consol              8.000%   04/29/11   AUD       2.20
Insurance Australia           5.625%   12/21/26   GBP      73.39
Jpm Au Enf Nom 1              3.500%   06/30/10   USD       0.52
Macquarie Bank                6.500%   05/31/17   AUD      46.40
Metal Storm                  10.000%   09/01/09   AUD       0.08
Myer Group Fin               10.194%   03/15/13   AUD      65.50
National Cap II               5.486%   12/29/49   USD      62.15
National Wealth               6.750%   06/16/26   AUD      72.85
Nylex Ltd.                   10.000%   12/08/09   AUD       0.91
Orchard Invest                9.000%   12/15/10   AUD      44.00
Paladin Energy                4.500%   12/15/11   USD      58.87
Paladin Energy                5.000%   03/11/13   USD      51.67
Records Funds Man            11.000%   09/01/10   USD      65.00
Rio Tinto Financ              5.875%   07/15/13   USD      67.89
Rio Tinto Financ              6.500%   07/15/18   USD      63.18
Timbercorp Ltd                8.900%   12/01/10   AUD      41.50
Westfield Fin                 3.625%   06/27/12   GBP      73.33
Westfield Fin                 5.500%   06/27/17   GBP      66.06

   CHINA
   -----
China Govt Bond                 4.860%  08/10/14  CNY      0.00
Jiangxi Copper                  1.000%  09/22/16  CNY     71.46

   HONG KONG
   ---------
Respacrcs Funding              8.000%  12/29/49   USD    22.00

   INDIA
   -----
Adani Enterprises              6.000%  01/27/12     USD    72.25
Astrazeneca Phar               8.000%  01/11/09     INR    26.00
Canara Bank                    6.365%  11/28/21     USD    70.72
Gitanjali Gems                 1.000%  11/25/11     USD    63.25
Hindustan Cons                10.000%  10/25/09     INR    33.35
ICICI Bank Ltd                 6.375%  04/30/22     USD    56.96
ICICI Bank Ltd                 7.250%  08/29/49     USD    42.75
Pyramid Saimira                1.750%  07/04/12     USD    26.25
Radico Khaitan                 3.500%  07/27/11     USD    60.00
State Bank India               6.439%  02/28/49     USD    74.02
Tata Motors                    1.000%  04/27/11     USD    63.92
UTI Bank                       7.250%  08/12/21     USD    73.52
Videocon Indus                 5.000%  03/07/11     USD    39.75

   INDONESIA
   ---------
Indonesia (Rep)                6.625%  02/17/37     USD    66.22
Indonesia (Rep)                6.625%  02/17/37     USD    62.50
Indonesia (Rep)                6.875%  01/17/18     USD    74.50
Indonesia (Rep)                7.750%  01/17/38     USD    72.50
Indonesia (Rep)                8.500%  10/12/35     USD    75.00
Indonesia Government           9.750%  05/15/37     IDR    73.68

   JAPAN
   -----
Aiful Corp                     5.000%  08/10/10     USD    73.64
Aiful Corp                     5.000%  08/10/10     USD    73.64
Aiful Corp                     6.000%  12/12/11     USD    65.91
Aozora Bank                    0.560%  02/27/13     JPY    73.99
Aozora Bank                    0.560%  03/12/13     JPY    73.81
Aozora Bank                    0.560%  03/27/13     JPY    73.59
Aozora Bank                    0.560%  04/12/13     JPY    73.35
Aozora Bank                    0.560%  04/27/13     JPY    73.15
Aozora Bank                    0.560%  05/12/13     JPY    72.95
Aozora Bank                    0.560%  05/27/13     JPY    72.71
Aozora Bank                    0.560%  06/12/13     JPY    72.48
Aozora Bank                    0.560%  06/27/13     JPY    72.26
Aozora Bank                    0.560%  07/12/13     JPY    72.05
Aozora Bank                    0.560%  07/27/13     JPY    71.85
Aozora Bank                    0.560%  08/12/13     JPY    71.61
Aozora Bank                    0.560%  08/27/13     JPY    71.40
Aozora Bank                    0.560%  09/12/13     JPY    71.17
Aozora Bank                    0.560%  09/27/13     JPY    70.96
Aozora Bank                    0.560%  10/12/13     JPY    70.76
Aozora Bank                    0.560%  10/25/13     JPY    70.57
Aozora Bank                    0.560%  11/12/13     JPY    70.32
Aozora Bank                    0.560%  11/27/13     JPY    70.11
Aozora Bank                    0.400%  01/12/13     JPY    69.26
Aozora Bank                    0.400%  12/27/13     JPY    69.16
CSK Corporation                0.250%  09/30/13     JPY    63.00
Ebara Corp                     1.300%  09/30/13     JPY    69.81
Fukuoka Prefect                2.100%  08/30/16     JPY     1.21
Hiroshima Bank                 1.720%  05/14/14     JPY    72.89
Hiroshima Bank                 1.890%  09/20/17     JPY    62.05
Hitachi Zosen                  1.500%  09/30/12     JPY    69.33
Kenedix Inc                    2.090%  11/08/10     JPY    59.98
Promise Co Ltd                 5.950%  06/13/12     USD    73.97
Promise Co Ltd                 5.950%  06/13/12     USD    73.97
Resona Bank                    4.125%  09/29/49     EUR    58.44
Resona Bank                    5.850%  09/29/49     USD    49.98
Resona Bank                    5.986%  08/29/49     EUR    64.83
Shinsei Bank                   1.960%  03/25/15     GBP    70.70
Shinsei Bank                   2.010%  10/30/15     JPY    68.83
Shinsei Bank                   3.750%  02/23/16     EUR    37.08
Shinsei Bank                   5.620%  12/29/49     GBP    25.30
Softbank Corp                  7.750%  10/15/13     EUR    70.00
Sumitomo Mitsui                4.375%  07/29/49     EUR    55.85
Sumitomo Mitsui                5.625%  07/29/49     EUR    69.31
Takefuji Corp                  9.200%  04/15/11     USD    66.00
Takefuji Corp                  9.200%  04/15/11     USD    66.00
Takefuji Corp                  8.000%  11/01/17     USD    32.23

   KOREA
   -----
GS Caltex Corp                 5.500%  10/15/15     USD    68.86
GS Caltex Corp                 5.500%  10/15/15     USD    70.42
GS Caltex Corp                 6.000%  08/08/16     USD    70.13
GS Caltex Corp                 5.500%  04/24/17     USD    65.58
GS Caltex Corp                 5.500%  04/24/17     USD    65.58
Hynix Semi Inc.                4.500%  12/14/12     USD    56.92
Hynix Semi Inc.                7.875%  06/27/17     KRW    36.50
Hynix Semi Inc.                7.875%  06/27/17     USD    35.37
Korea Dev Bank                 7.350%  10/27/21     KRW    49.45
Korea Dev Bank                 7.400%  10/27/21     KRW    49.45
Korea Dev Bank                 7.450%  10/31/21     KRW    49.42
Korea Dev Bank                 7.400%  11/02/21     KRW    49.40
Korea Dev Bank                 7.310%  11/08/21     KRW    49.35
Korea Dev Bank                 8.450%  12/15/26     KRW    73.47
KT Corp                        6.500%  09/07/34     USD    72.25
LG-Caltex Oil                  5.500%  08/25/14     USD    74.87
LG-Caltex Oil                  5.500%  08/25/14     USD    74.87
Shinhan Bank                   5.663%  03/02/35     USD    49.00
SK Telecom                     6.625%  07/20/27     USD    73.32
SK Telecom                     6.625%  07/20/27     USD    73.32
Woori Bank                     6.125%  05/03/16     USD    69.78
Woori Bank                     6.208%  05/02/37     USD    41.50

   MALAYSIA
   --------
Advance Synergy Berhad         2.000%  01/26/18     MYR     0.04
Aliran Ihsan Resources Bhd     5.000%  11/29/11     MYR     0.82
Berjaya Land Bhd               5.000%  12/30/09     MYR     3.18
Cagamas Berhad                 3.640%  05/05/09     MYR     4.01
Eastern & Orient               8.000%  07/25/11     MYR     0.82
EG Industries                  5.000%  06/16/10     MYR     0.35
Huat Lai Resources             5.000%  03/28/10     MYR     0.31
Insas Berhad                   8.000%  04/19/09     MYR     0.22
Kamdar Group Bhd               3.000%  11/09/09     MYR     0.14
Kretam Holdings                1.000%  08/10/10     MYR     1.00
Kumpulan Jetson                5.000%  11/27/12     MYR     0.35
LBS Bina Group                 4.000%  12/31/08     MYR     0.21
LBD Bina Group                 4.000%  12/31/09     MYR     0.70
Mithril Bhd                    8.000%  04/05/09     MYR     0.11
Mithril Bhd                    3.000%  04/05/12     MYR     0.55
Nam Fatt Corp                  2.000%  06/24/11     MYR     0.16
Pilecon Engineering Bhd        5.000%  12/19/11     MYR     0.06
Plus Spv Bhd                   2.000%  06/27/19     MYR    68.85
Public Bank Berhad             6.840%  08/22/36     USD    74.42
Puncak Niaga Holdings Bhd      2.500%  11/18/16     MYR     0.71
Rubberex Corporation Berhad    4.000%  08/14/12     MYR     0.55
Silver Bird Grp                1.000%  02/15/09     MYR     0.32
Tenaga Nasional Bhd            3.050%  05/10/09     MYR     0.90
Tradewinds Corp.               2.000%  02/08/12     MYR     0.60
Tradewinds Plant               3.000%  02/28/16     MYR     1.12
Wah Seong Corp.                3.000%  05/21/12     MYR     2.00
Wijaya Baru Global Berhad      7.000%  09/17/12     MYR     0.40

   NEW ZEALAND
   -----------

Capital Prop NZ                8.000%  04/15/10     NZD    13.70
Fletcher Building              7.800%  03/15/09     NZD    10.15
Fletcher Building              7.550%  03/15/11     NZD     9.10
Infrastr & Util                8.500%  09/15/13     NZD     9.40
Infratil Ltd                  10.180%  12/29/49     NZD    60.00
Marac Finance                 10.500%  07/15/13     NZD     1.08
Sky Network TV                 9.370%  10/16/16     NZD    75.00
South Canterbury              10.430%  12/15/12     NZD     1.08
St laurence Prop               9.250%  07/15/10     NZD    74.56
Trustpower Ltd                 8.500%  09/15/12     NZD     8.00
Trustpower Ltd                 8.500%  03/15/14     NZD     8.35

   PHILIPPINES
   -----------
First Gen Corp                 2.500%  02/11/13     USD    39.25
Rizal Comm Bank                9.875%  10/31/49     USD    70.00

   SINGAPORE
   ---------
Avago Tech Fin                11.875%  12/01/15     USD    68.00
Capitaland Ltd.                2.100%  11/15/16     SGD    68.04
Capitaland Treas.              3.500%  07/17/17     SGD    68.29
Capitaland Ltd.                3.125%  03/05/18     SGD    63.84
Capitaland Ltd.                2.950%  06/20/22     SGD    49.73
Chartered Semico               6.375%  08/03/15     USD    65.38
Flextronics International      6.500%  11/15/14     USD    70.75
Flextronics International      6.500%  05/15/13     USD    73.00
Sengkang Mall                  4.800%  11/20/12     SGD     1.00
Empire Cap Res                 9.375   12/15/11     USD    64.87
Olam International Limited     1.000%  07/03/13     USD    62.21

   SRI LANKA
   ---------
Sri Lanka Govt                6.850%  04/15/12     LKR     68.29
Sri Lanka Govt                6.850%  10/15/12     LKR     65.15
Sri Lanka Govt                7.000%  08/01/11     LKR     73.61
Sri Lanka Govt                7.000%  10/15/11     LKR     72.09
Sri Lanka Govt                7.000%  10/01/23     LKR     47.95
Sri Lanka Govt                7.500%  08/01/13     LKR     63.47
Sri Lanka Govt                7.500%  11/01/13     LKR     62.65
Sri Lanka Govt                7.500%  08/15/18     LKR     56.16
Sri Lanka Govt                8.500%  01/15/13     LKR     68.23
Sri Lanka Govt                8.500%  07/15/13     LKR     66.53
Sri Lanka Govt                8.500%  02/01/18     LKR     61.00
Sri Lanka Govt                8.500%  07/15/18     LKR     60.64
Sri Lanka Govt               10.500%  04/01/13     LKR     72.02

  THAILAND
  --------
Italian-Thai Dey              4.500%  06/10/13     USD     44.47
Thoresen Thai AG              2.500%  09/24/12     USD     59.33


                         *********

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.  Pius Xerxes V. Tovilla, Valerie C. Udtuhan,
Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante,
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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