TCRAP_Public/090107.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Wednesday, January 7, 2009, Vol. 12, No. 4

                            Headlines

A U S T R A L I A

3 HORSES: Placed Under Voluntary Liquidation
CONCORD SPORTS: Commences Liquidation Proceedings
DOPCOM PLANT: Inability to Pay Debts Prompts Wind-Up
GELAT PTY: Liquidator Presents Wind-Up Report
HAZELBROOK GARDENS: Members and Creditors Receive Wind-Up Report

KONSEPT CORPORATION: Inability to Pay Debts Prompts Wind-Up
LECANA PTY: Members Receive Wind-Up Report
PELINO PTY: Members Hear Wind-Up Report
PUJEMA PTY ET AL: Members Hold Final Meeting
REALTY MARKETING ET AL: Members Receive Wind-Up Report


C H I N A

CHINA EASTERN: To Receive Additional CNY4 Bil. From Government
KEY PLASTICS: Court Sets Jan. 29 Disclosure Statement Hearing


H O N G  K O N G

ASIAN INFORMATION: Placed Under Voluntary Liquidation
B.V. SABUNANI: Creditors' Proofs of Debt Due on January 12
BUYCOLLECTION.COM: Commences Liquidation Proceedings
FAY TSAI: Enters Liquidation Proceedings
FLYING LEAF: Placed Under Voluntary Liquidation

GOLD-FACE: Appoints Mabel Tsang May Bo as Liquidator
HOLIDAY INNS: Mee and Yuk Step Down as Liquidators
JEWELLIANI LIMITED: Appoints Yeung Chi Wai, Edwin as Liquidator
MEDISON GREATER: Au-Yeung Sin Ming Cindy Steps Down as Liquidator
MYHOME NETWORK: Placed Under Voluntary Liquidation


I N D I A

BMW INDUSTRIES: CRISIL Rates Various Bank Facilities at 'BB+'
PCH RETAIL: CRISIL Assigns 'B' Rating on Rs.750 Mil. Cash Credit
SHRI PK: RBI Cancels License Due to Insolvency


J A P A N

CLOVERIE PLC: Moody's Junks Ratings on Two Classes from 'Baa2'
DAIICHI SANKYO: Estimates JPY354 Bil. Loss on Ranbaxy Deal
ELPIDA MEMORY: US$65 Mil. Worth of Issued Bonds Converted
FORD MOTOR: Auto Sales Drop More Than 30% in December 2008
JAFCO CO: To Record JPY1.32 Bil. Loss on Low Nomura Share Price

NOMURA HOLDINGS: May Book More Than JPY50 Bil. 3Q Valuation Loss
* JAPAN: Auto Sales in 2008 Dip to Lowest Level Since 1974


K O R E A

LEHMAN BROTHERS: Kamco May Purchase Japanese Distressed Assets


M A L A Y S I A

BANK UTAMA: Fitch Affirms and Withdraws 'D' Individual Rating
GOLD BRIDGE: Bourse Extends Plan Filing Period to March 31
CNLT (FAR EAST): Bourse Commences De-listing Process
WONDERFUL WIRE: Total Default Reaches MYR75.89 Mil. as of Dec. 31


N E W  Z E A L A N D

FLOORPRO SOUTH: Court Hears Wind-Up Petition
GLENHAVEN HOME: Court Hears Wind-Up Petition
JIM & JASON: Court Hears Wind-Up Petition
KINNOULL (TAIKO): Commences Liquidation Proceedings
RYAN SECURITY: Court Hears Wind-Up Petition

SIMPLY TWO: Appoints Robert Laurie Merlo as Liquidator
SITE IT: Appoints John Francis Managh as Liquidator
SOUTHGATE PLASTICS ET AL: Commence Liquidation Proceedings
SYDNEY PRODUCTIONS: Court Hears Wind-Up Petition
THE 4 WINDS: Court Hears Wind-Up Petition

* NEW ZEALAND: Exports Rise 9.4% in November 2008 to NZ$3.7 Bil.
* NEW ZEALAND: NZX Discloses 2008 Trading Declined 18%


S I N G A P O R E

AESTHETICS D ORCHARD: Court Enters Wind-Up Order
C&S CONSTRUCTION: Creditors' Proofs of Debt Due on January 19
GUAN LEONG: Creditors' Proofs of Debt Due on January 19
MOUNTAMOUNT (S'PORE): Requires Creditors to File Claims by Jan. 16
TANG'S CONSTRUCTION: Requires Creditors to File Claims by Jan. 16


V I E T N A M

VIETCOMBANK: Submits Application to List Shares in HOSE
* VIETNAM: 9 Small Banks Complete Plans to Raise Capital Charter


X X X X X X X X

* Emerging Economies to See Sharp Slowdown in Growth in 2009
* IATA Predicts Worst Revenue Environment in 50 Years
* Upcoming Meetings, Conferences and Seminars


                         - - - - -

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

3 HORSES: Placed Under Voluntary Liquidation
--------------------------------------------
The members of 3 Horses Pty Limited met on October 14, 2008, and
resolved to voluntarily liquidate the company's business.

The company's liquidator is:

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


CONCORD SPORTS: Commences Liquidation Proceedings
-------------------------------------------------
During a general meeting held on October 10, 2008, the members
resolved to voluntarily wind up the operations of:

   -- Concord Sports Insurance Agencies Pty Limited; and
   -- QBE Reinsurance Administration Pty Limited.

The companies' liquidators are:

          Timothy James Cuming
          David Clement Pratt
          201 Sussex Street, Level 15
          Sydney NSW 1171


DOPCOM PLANT: Inability to Pay Debts Prompts Wind-Up
----------------------------------------------------
The members of Dopcom Plant Hire Pty Limited met on October 15,
2008, and resolved to voluntarily liquidate the company's business
due to its inability to pay debts when it fall due.

The company's liquidator is:

          Steven Gladman
          c/o Hall Chadwick
          31 Market Street, Level 29
          Sydney NSW 2000


GELAT PTY: Liquidator Presents Wind-Up Report
---------------------------------------------
On November 21, 2008, Gregory John Emerson presented the company's
wind-up report and property disposal to the members of Gelat Pty
Limited.


HAZELBROOK GARDENS: Members and Creditors Receive Wind-Up Report
----------------------------------------------------------------
The members and creditors of Hazelbrook Gardens Pty Limited 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:

          Geoffrey Mcdonald
          Hall Chadwick
          31 Market Street, Level 29
          Sydney NSW 2000


KONSEPT CORPORATION: Inability to Pay Debts Prompts Wind-Up
-----------------------------------------------------------
The members of Konsept Corporation Pty Limited met on October 15,
2008, and resolved to voluntarily liquidate the company's business
due to its inability to pay debts when it fall due.

The company's liquidator is:

          Blair Pleash
          c/o Hall Chadwick
          31 Market Street, Level 29
          Sydney NSW 2000


LECANA PTY: Members Receive Wind-Up Report
------------------------------------------
On December 5, 2008, the members of Lecana Pty Limited met and
received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          John C. Simmons
          Simmons Johnson & Co
          44 Market Street, Level 25
          Sydney NSW 2000


PELINO PTY: Members Hear Wind-Up Report
---------------------------------------
On December 5, 2008, the members of Pelino Pty Limited met and
received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          John C. Simmons
          Simmons Johnson & Co
          44 Market Street, Level 25
          Sydney NSW 2000


PUJEMA PTY ET AL: Members Hold Final Meeting
--------------------------------------------
On December 1, 2008, the members of Pujema Pty Ltd and Bioa Pty
Ltd held their final meeting.

The company's liquidator is:

          Steven Nicols
          Nicols + Brien
          Telephone:(02) 9299 2289
          Website: http://www.bankrupt.com.au


REALTY MARKETING ET AL: Members Receive Wind-Up Report
------------------------------------------------------
On November 28, 2008, Rod Hills presented the companies' wind-up
report and property disposal to the members of these companies:

   -- Realty Marketing (Aust) Pty Ltd;
   -- Arrk Investments Pty Ltd; and
   -- A.C.N. 003 113 531 Pty Ltd.

The Liquidator can be reached at:

          Rod Hills
          William Buck, Chartered Accountants
          66 Goulburn Street, Level 29
          Sydney



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

CHINA EASTERN: To Receive Additional CNY4 Bil. From Government
--------------------------------------------------------------
China Eastern Airlines Corporation Limited would receive a capital
injection from the Chinese government totaling CNY7 billion
(US$1.02 billion), more than double its previous plan, Reuters
reports.

As reported in 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.

In exchange for the capital, Reuters notes, China Eastern would
issue 1.44 billion new Shanghai-listed A shares to its state-owned
parent group at CNY3.87 each, as well as 1.44 billion Hong Kong-
listed H shares at CNY1.00 yuan.

The funds, Reuters relates, will be used to improve the airline's
balance sheet and strengthen its ability to continue operations.

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.

Meanwhile, Shanghai Daily says China Eastern's cash losses on
settling jet fuel hedging contracts reached US$420,000 in November
and further losses will happen with the declining oil price in
December last year.

                       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.


KEY PLASTICS: Court Sets Jan. 29 Disclosure Statement Hearing
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware will hold a
hearing on Jan. 29, 2009 at 2:00 p.m. prevailing Eastern time to
consider approval of Key Plastics L.L.C. and Key Plastics Finance
Corp.'s proposed Disclosure Statement explaining their Prepackaged
Plan of Reorganization which was filed with the Court on Dec. 15,
2008.  A hearing to consider confirmation of the Plan and any
objections thereto will commence immediately following the
Disclosure Statement Hearing.

Any objections to the Disclosure Statement or the the Prepackaged
Plan must be filed with the Court together with proof of service,
so as to be received no later than 4:00 p.m prevailing Eastern
time on Jan. 18, 2009.  Objections whould also be served upon
counsel of the Debtors:

         Weil, Gotshal & Manges LLP
         Attn: Stephen A. Youngman, Esq.
         200 Crescent Court
         Suite 300
         Dallas, Texas 76201

         and

         Richards, Layton & Finger, P.A.
         Attn: Mark D. Collins, Esq.
         One Rodney Square
         P.O. Box 551
         Wilmington
         Delaware 19899

As reported in the Troubled Company Reporter on Dec. 16, 2008,
under the plan, each holder of Key Plastics Series A Unit Claims
will be paid cash equal to $474 per Series A Unit held.  At its
option, holders of Senior Notes will be entitled to receive,
either:

  -- pro rata share of 65% of the fully-diluted new common units
     to be issued by Reorganized Key Plastics, which will
     subsequently be contributed to the Reorganized Finance
     Corp. in exchange for an equal percentage of new common
     stock to be issued by Reorganized Finance Corp.; or

  -- cash equal to 16% of the face value of the holder's senior
     notes.

Furthermore, holders of senior notes who elect to receive their
pro rata share of New Key Plastics Equity will be entitled to
participate in a rights offering in which each holder may
subscribe for its pro rata share of no more than 35% of New Key
Plastics Equity, which will also subsequently be contributed to
the reorganized Finance Corp. in exchange for an equal percentage
of New Finance Corp. Equity.

The company related that on Nov. 12, 2008, it solicited votes on
the plan, wherein holders of Senior Notes Claims under Class 1 and
Series A Unit Claims voted to accept the plan.

Headquartered in Northville, Michigan, Key Plastics LLC --
http://www.keyplastics.com/-- supplies plastic components to the
automotive industry.  The company has 24 manufacturing facilities
located in the United States, Canada, Mexico, Germany, Portugal,
Spain, the Czech Republic, France, Slovakia, Italy and China.
According to Bloomberg News, the company filed for bankruptcy in
March 23, 2000, in Detroit and emerged a year later under the
ownership of private-equity firm Carlyle.  The company and Key
Plastics Finance Corp. filed separate petitions for Chapter 11
relief on Dec. 15, 2008 (Bankr. D. Del. Case Lead Case No.
08-13324).  Mark D. Collins, Esq., at Richards Layton & Finger PA;
and Stephen A. Youngman, Esq., and Martin A. Sosland, Esq., at
Weil, Gotschall & Manges LLP, represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
their creditors, they listed assets and debts between
US$100 million and US$500 million each.



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

ASIAN INFORMATION: Placed Under Voluntary Liquidation
-----------------------------------------------------
At an extraordinary general meeting held on December 8, 2008, the
members of Asian Information Investment Consulting Limited resolve
to voluntarily liquidate the company's business.


B.V. SABUNANI: Creditors' Proofs of Debt Due on January 12
----------------------------------------------------------
The creditors of B.V. Sabunani and Sons (Hong Kong) Limited are
required to file their proofs of debt by January 12, 2009, to be
included in the company's dividend distribution.

The company's liquidator is:

          Raymond Tang Wai Man
          C C Wu Building, Rooms 1109-10
          302-8 Hennessy Road
          Wanchai, Hong Kong


BUYCOLLECTION.COM: Commences Liquidation Proceedings
----------------------------------------------------
At an extraordinary general meeting held on December 8, 2008, the
members of Buycollection.com Limited resolved to voluntarily
liquidate the company's business.


FAY TSAI: Enters Liquidation Proceedings
----------------------------------------
Fay Tsai Cheung Poultry Limited commenced liquidation proceedings
on December 12, 2008.

The company's liquidators are:

          Lui Wan Ho
          To Chi Man
          Olympia Plaza, Room 1701
          255 King's Road
          North Point, Hong Kong


FLYING LEAF: Placed Under Voluntary Liquidation
-----------------------------------------------
At an extraordinary general meeting held on December 15, 2008, the
members of Flying Leaf Industries Limited resolved to voluntarily
liquidate the company's business.

The company's liquidator is:

          Lai Ka Cheung
          Hong Kong Trade Centre
          Room 1901-1902, 19th Floor
          161-167 Des Voeux Road Central
          Hong Kong


GOLD-FACE: Appoints Mabel Tsang May Bo as Liquidator
----------------------------------------------------
On December 8, 2008, Mabel Tsang May Bo was appointed as
liquidator of Gold-Face Enterprises Limited.  Ms. Bo replaced Chan
Wai Hing, who resigned from his post on December 8, 2008.

The company's new Liquidator can be reached at:

          Mabel Tsang May Bo
          Two International Finance Centre, 18th Floor
          8 Finance Street
          Central, Hong Kong


HOLIDAY INNS: Mee and Yuk Step Down as Liquidators
--------------------------------------------------
On December 11, 2008, Natalia Seng Sze Ka Mee and Cheng Pik Yuk
stepped down as liquidators of Holiday Inns (Casablanca) Limited.

The company's former Liquidators can be reached at:

          Natalia Seng Sze Ka Mee
          Cheng Pik Yuk
          Three Pacific Place, Level 28
          1 Queen's Road East
          Hong Kong


JEWELLIANI LIMITED: Appoints Yeung Chi Wai, Edwin as Liquidator
---------------------------------------------------------------
On December 12, 2008, Yeung Chi Wai, Edwin was appointed as
liquidator of Jewelliani Limited.

The Liquidator can be reached at:

          Yeung Chi Wai, Edwin
          Lucky Building, 12th Floor
          39 Wellington Street
          Central, Hong Kong


MEDISON GREATER: Au-Yeung Sin Ming Cindy Steps Down as Liquidator
-----------------------------------------------------------------
On December 9, 2008, Au-Yeung Sin Ming Cindy stepped down as
liquidator of Medison Greater China Limited.

The company's former Liquidator can be reached at:

         Au-Yeung Sin Ming Cindy
         Pegasus & Co. Certified Public Accountants
         Kwan Chart Tower, 1301-02, 13th Floor
         6 Tonnochy Road
         Wanchai, Hong Kong


MYHOME NETWORK: Placed Under Voluntary Liquidation
--------------------------------------------------
At an extraordinary general meeting held on December 8, 2008, the
members of Myhome Network Limited resolved to voluntarily
liquidate the company's business.



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

BMW INDUSTRIES: CRISIL Rates Various Bank Facilities at 'BB+'
-------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4' to the various
bank facilities of BMW Industries Ltd (BMWIL).

   Rs.140 Million Working Capital         BB+/Stable (Assigned)
                  Demand Loan    

   Rs.559.9 Million Cash Credit Limits*   BB+/Stable (Assigned)

   Rs.562.1 Million Term Loan             BB+/Stable (Assigned)

   Rs.19 Million Letter of Credit         P4(Assigned)

   Rs.219 Million Bank Guarantee          P4(Assigned)

     *Includes a proposed limit of Rs 84.9 million

The ratings reflect BMWIL's weak debt protection measures, working
capital intensive nature of operations and company's
susceptibility to fluctuations in raw material prices.  These
weaknesses are, however, partially offset by the steady growth in
the company's topline, backed by its diversified product
portfolio.

To arrive at the ratings, CRISIL has combined the financials of
BMW Industries Ltd (BMWIL), Bansal Nepal Pvt Ltd (BNPL) and SAIL-
BANSAL Service Centre Ltd (SBSCL), collectively referred to as the
BMW group.  This is because BNPL and SBSCL are subsidiaries of
BMWIL, and BMWIL provides counter guarantees and corporate
guarantees to them.  Moreover, the three companies have a common
management, and inter-company transactions.

Outlook: Stable

CRISIL believes that BMW group's revenues will continue to post
healthy growth over the medium term on the back of its diversified
product portfolio.  However, BMW group's financial risk profile
may remain leveraged over the medium term owing to debt contracted
to fund large working capital requirements.  The outlook may be
revised to 'Positive' if BMW group's gearing and profitability
improve considerably from current levels.  Conversely, the outlook
may be revised to 'Negative' if the company's margins deteriorate
on account of sub-optimal utilization of installed capacity or if
more debt is raised than anticipated.

                             About BMWIL

BMWIL, the flagship company of the BMW group, was incorporated in
1981 by Mr. R G Bansal.  The company has a presence in three
business verticals steel service centre (SSC) and structured
products, transmission line towers, and infrastructure (road and
real estate).  Currently, the operations of the group are managed
by Mr. Bansal and his sons, Mr. Harsh Bansal and Mr. Vivek Bansal.

BMWIL has three SSC facilities in Jamshedpur and one in West
Bengal.  In 2007-08, the company integrated its facilities to
manufacture structured products.  It entered the infrastructure
projects and transmission towers businesses in 2000 and 2003,
respectively.  In infrastructure projects it undertakes road
construction and maintenance on behalf of West Bengal and
Jharkhand governments. In the transmission towers business, its
assignments relate to fabrication, and its clientele includes the
large telecom giants.

BMW group reported a profit after tax (PAT) of Rs.126 million on
net sales of Rs 1828 million in 2007-08 (refers to financial year,
April 1 to March 31) as against PAT of Rs 58 million on net sales
of Rs.1027 million for the previous year.


PCH RETAIL: CRISIL Assigns 'B' Rating on Rs.750 Mil. Cash Credit
----------------------------------------------------------------
CRISIL has assigned its rating of 'B/Stable/P4' to the various
bank facilities of PCH Retail Ltd (PCHRL).

   Rs.750 Million Cash Credit*      B/Stable (Assigned)
   Rs.950 Million Term Loan#        B/Stable (Assigned)
   Rs.60 Million Letter of Credit   P4(Assigned)

    *Includes Rs. 200 million of proposed limits
    # Includes Rs. 555 million of proposed limits

The rating reflects PCHRL's weak financial risk profile, which is
expected to deteriorate further on account of large debt taken to
fund capital expenditure (capex) and working capital requirements.
These weaknesses are, however, partially offset by the PCHRL's
established market position in Andhra Pradesh and growth potential
of the organised retail industry.

Outlook: Stable

CRISIL expects PCHRL's financial risk profile to remain weak over
the medium term due to its large, planned capex.  The outlook may
be revised to 'Positive' if PCHRL's new stores attain break even
and profitability on time, or if the company infuses a larger-
than-expected equity in the funding mix.  Conversely, the outlook
may be revised to 'Negative' if the new stores take longer than
expected to break even, or the company takes on large debt to fund
capex.

                         About PCHRL

PCHRL was incorporated in January 2007 by Mr. Balvinder Singh and
his wife Mrs. Baljit Kaur. Established as Punjab Crockery House
(PCH) by Mr. Huzur Singh, father of Mr. Balvinder Singh, in 1950,
it initially traded in crockery items.  In 2003, Mr. Balvinder
Singh set up PCH Group, which included partnership firms PCH
Associates, PCH Mobile Zone, and PCH Sales, and a proprietorship
firm, PCH Business.  All four firms have been merged to form
PCHRL, which deals in retail of consumer durables and electronic
goods; it is one of the largest players in the segment in Andhra
Pradesh (AP). As of Sep 30, 2008, PCHRL has 45 show rooms with a
retail space of around 1.67 lakh square feet.

For the year ended March 31, 2008, PCH reported a profit after tax
(PAT) of Rs.66 million on net sales of Rs.2195 million, as against
a PAT of Rs.6 million on net sales of Rs.184 million in 2006-07.


SHRI PK: RBI Cancels License Due to Insolvency
----------------------------------------------
The Reserve Bank of India, on December 29, 2008, ordered the
cancellation of Shri P.K. Anna Patil Janata Sahakari Bank Ltd's
license after examining all options for the bank's revival.

Subsequent to the cancellation of license, RBI ordered the
Registrar of Co-operative Societies, Maharashtra to wind up the
bank and appoint a liquidator.

RBI's decision came after determining that Siddhpur Commercial has
ceased to be solvent and has already caused inconvenience to its
depositors.

According to RBI, the Bank's financial statements as of
March 31, 2005, revealed that the bank's financial position was
impaired.  Supervisory action was initiated against the bank and
it was advised to take steps for improvement in its financial
position.

The Bank's financial accounts as of March 31, 2006 and March 31,
2007, also revealed further deterioration in bank's financial
position.  RBI issued directions under Section 35 A of the Banking
Regulation Act, 1949 (As applicable to Co-operative Societies) on
August 6, 2008 restricting its operations, including placing a
ceiling on withdrawal of deposits at Rs.1000.

RBI had issued a show cause notice to the bank on August 7, 2008
asking it as to why its licence to conduct banking business should
not be cancelled.  As the Bank did not have a viable plan of
action for its revival and the chances of its revival were remote,
RBI cancelled the Bank's license in the interest of its
depositors.

With the cancellation of its licence and commencement of
liquidation proceedings, the process of paying the depositors of
Shri P.K.Anna Patil Janata Sahakari Bank Ltd., District Nandurbar,
Maharashtra will be set in motion subject to the terms and
conditions of the Deposit Insurance Scheme.



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

CLOVERIE PLC: Moody's Junks Ratings on Two Classes from 'Baa2'
--------------------------------------------------------------
Moody's Investors Service announced it has downgraded its ratings
of 2 classes of Jinkoki (ex Brevan Howard CDO I Credit Linked
Notes) Portfolio Credit Linked Notes issued by Cloverie PLC.

According to Moody's, the rating actions are the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to Lehman
Brothers Holdings Inc., which filed for protection under Chapter
11 of the U.S. Bankruptcy Code on September 15, 2008; Washington
Mutual Inc., which was seized by federal regulators on September
25, 2008 and subsequently virtually all of its assets were sold to
JPMorgan Chase; and two Icelandic banks, specifically Kaupthing
Bank hf, and Glitnir Banki hf.  These credit events have had
significant effect on the rating of the trancehs due to the low
subordination.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs as described in Moody's Special
Reports:

  -- Moody's Approach To Rating Synthetic CDOs (July 2003)

  -- Moody's Revisits Its Assumptions Regarding Corporate Default
     (and Asset) Correlations for CDOs (November 2004)

  -- Understanding Collateral Risks of Funded Synthetics in CDOs
     (June 2006)

The rating actions are:

Cloverie PLC:

(1) Series 2007-40 JPY 1,900,000,000 Class D Floating Rate Jinkoki
Portfolio Credit Linked Notes due 2017

  -- Current Rating: Ca
  -- Prior Rating: Baa2
  -- Prior Rating Date: 14 April 2008, downgraded to Baa2 from A3

(2) Series 2007-42 JPY 500,000,000 Class D Fixed Rate Jinkoki
Portfolio Credit Linked Notes due 2017

  -- Current Rating: Ca
  -- Prior Rating: Baa2
  -- Prior Rating Date: 14 April 2008, downgraded to Baa2 from A3

Since the resignation of the previous portfolio manager (Brevan
Howard Asset Management LLP), Deutsche Asset Management
International GmbH and Maples Finance Jersey Limited have been
appointed as a replacement in their capacity to act as portfolio
advisor and service provider respectively, effective since 3 April
2008.


DAIICHI SANKYO: Estimates JPY354 Bil. Loss on Ranbaxy Deal
----------------------------------------------------------
Daiichi Sankyo Company Limited said it plans to record a valuation
loss and one-time write-down of goodwill on its investment in
Group subsidiary Ranbaxy Laboratories Limited for the fiscal
third-quarter ended December 31, 2008.

On a non-consolidated basis, Daiichi Sankyo plans to record a non-
cash valuation loss of 359.5 billion yen on its shares in Ranbaxy
in its fiscal third-quarter to reflect a more than 50% decline in
the market value of these securities versus the purchase price.

On a consolidated basis, Daiichi Sankyo estimates a non-cash loss
of 354.0 billion yen related to the write-down of goodwill
associated with its investment in Ranbaxy in line with the
valuation loss on Ranbaxy shares accounted for on a non-
consolidated basis.

Daiichi Sankyo sees no impact on its forecasts for non-
consolidated net sales, operating income or ordinary income for
the fiscal third-quarter as a result of these anticipated
extraordinary losses.  The Company also sees no impact on cash
flow.  However, the company said these items will have a
significant negative impact on the company's consolidated
financial results forecasts for net income for the nine-month
period ended December 31, 2008 and for fiscal year 2008 ending
March 31, 2009.

Daiichi Sankyo said it has based its estimates for the one-time
write-down of goodwill on its investment in Ranbaxy to fully
reflect the impact of the current unprecedented turmoil in global
equities markets.

In October 2008, Daiichi Sankyo acquired a 52.5% voting rights in
Ranbaxy.

On December 19, 2008, new members of the board of directors for
Ranbaxy were appointed, including Daiichi Sankyo CEO Takashi Shoda
and Senior Executive Officer Tsutomu Une.

Daiichi Sankyo is currently reviewing the impact of the
consolidation of Ranbaxy's financial results (including the
anticipated extraordinary losses) on the Group's financial
forecasts following its change of status to Group subsidiary.

The company plans to report consolidated financial results that
fully reflect Ranbaxy's contribution when it reports results for
the third quarter of fiscal year 2008.

Kanoko Matsuyama at Bloomberg News reports shares of Ranbaxy have
lost 66 percent of their value since Tokyo-based Daiichi Sankyo
paid 737 rupees (US$15.17) a share in October.

According to Bloomberg News, Chief Executive Officer Takashi Shoda
stuck to his offer price for Ranbaxy even after the stock fell
last year, as markets declined worldwide and the company faced a
U.S. import ban.

Bloomberg News recalls the U.S. Food and Drug Administration on
Sept. 16 blocked imports of medicines made in two Indian factories
of Ranbaxy.  The regulator said there was no evidence that
Ranbaxy's drugs were harmful.

The FDA, Bloomberg News adds, also probed whether Ranbaxy, based
in Gurgaon, near New Delhi, destroyed reports it was required to
keep, falsified data and failed to meet quality-control
specifications in manufacturing the generic drugs it sells. The
Indian company has denied the allegations and agreed to produce
all the documents, the report says.

Daiichi Sankyo Company Limited (TYO:4568) --
http://www.daiichisankyo.co.jp/-- is a Japan-based holding
company.  The Company is engaged in the administration and
management of its subsidiaries and associated companies.  Through
its subsidiaries, the Company is mainly engaged in the
pharmaceutical business, which encompasses the manufacture and
sale of pharmaceuticals.  Additionally, the Company is involved in
the manufacture and sale of agrochemicals and fine chemicals, the
real estate leasing business, as well as the insurance agency
business and others.  The Company has various operations in Japan,
the United States, Germany, the United Kingdom, Spain, Italy and
others.


ELPIDA MEMORY: US$65 Mil. Worth of Issued Bonds Converted
---------------------------------------------------------
Reuters reports Elpida Memory Inc said on Monday Nomura Holdings
Inc converted US$65 million worth of its convertible bond, leaving
the PC memory maker to redeem the remaining JPY44 billion.

In a statement, Elpida said the holder of Elpida's Unsecured
Convertible Bond Type Bonds with Stock Acquisition Rights issued
on November 4, 2008 has exercised its conversion rights.

   Name of Stock Acquisition Rights:

      Elpida Memory, Inc. 1st Series Unsecured
      Convertible Bond Type Bonds with Stock
      Acquisition Rights

   Number of Shares Delivered:

      11,787,819 shares

   Total Amount of Convertible Bonds Exercised:

      JPY6,000,000,000

   Outstanding Unexercised Convertible Bonds
   as of end Dec. 2008:

      JPY50,000,000,000

   Outstanding Unexercised Convertible Bonds
   as of January 5, 2009:

      JPY44,000,000,000

Reuters relates Elpida raised JPY50 billion through the bond last
year for investment purposes, however, a plunge in its share price
due to concerns of a massive dilutive effect from the bond forced
Elpida to redeem it under an agreement with Nomura.

Elpida notes that all of the outstanding convertible bonds as of
January 9, 2009 would be redeemed on January 9, 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.


FORD MOTOR: Auto Sales Drop More Than 30% in December 2008
----------------------------------------------------------
Mike Barris at The Wall Street Journal reports that Ford Motor Co.
reported that its sales dropped more than 30% in December 2008.

The first quarter will be "bad, no matter how you look at it" and
the loan from the government will be help auto sale recover in the
second half of 2009, WSJ relates, citing Ford Motor senior
economist Emily Kolinski Morris.

Ford Motor's sales figures in December 2008 reflected the housing
market, the economy and the jobless rate.  Ford Motor sales
analyst George Pipas said that the sales rate in December was
similar to what we saw in October and November.

"During these three months, the total vehicle sales rate including
medium and heavy trucks is about 10.6 or 10.7 million and the
light vehicle sales rate is probably in 10.3 or 10.4 and that is
the lowest sales rate for the fourth quarter since 1981, so that
gives you some indication the kind of conditions we are facing now
as well as probably what we can expect to see as we begin 2009 at
least in the first quarter," said Ford Motor.

According to Bloomberg, U.S. auto sales plunged 36 percent in
December, dragging the industry's annual volume to a 16-year low
as the recession ravaged demand.

             F-Series Brings Ford Higher Market Share

New vehicles, including the all-new F-150 truck, and fuel-
efficient powertrains are winning over customers for Ford Motor,
Lincoln and Mercury, which realized market share increases for a
third consecutive month in December.  Ford Motor estimates its
market share was 14.6% in December, up 0.7 of a point versus a
year ago.  This marks the first time since 1997 Ford Motor has
achieved a market share increase three months in a row.

"This is a strong ending to end a very challenging year," said Jim
Farley, Ford Motor's group vice president, Marketing and
Communications.  "In addition to finishing the year with increased
market share, we received several accolades from third parties
concerning our world-class quality and safety, and we turned some
heads on the fuel economy front with our 41 mpg Fusion Hybrid, the
most fuel-efficient mid-size sedan in America."

The F-Series truck played a key role in Ford Motor's fourth
quarter market share gains.  The all-new F-150 accounted for 8,600
of total F-Series sales in December, an increase of 84% compared
with November 2008.  For the year, F-Series sales totaled 515,513.

"Our thanks go out to our customers, our dealers and, of course,
the Ford employees and supplier partners who design, engineer and
manufacture quality, fuel-efficient trucks delivering unmatched
capability," Mr. Farley said.  "The all-new F-150 affirms what
Ford has known for years -- that listening to customers provides
the best rewards."

The all-new F-150 recently was named 2009 Motor Trend Truck of the
Year, a finalist for the North American Truck of the Year and the
Texas Auto Writers Association's "Truck of Texas."

Ford Flex, the company's newest crossover utility, finished 2008
with its best sales month of the year, netting 2,685 sales.  Flex
has the highest conquest rate of any Ford vehicle and is a
finalist for the North American Car of the Year.

In other car news, Ford Focus posted full-year sales of 195,823,
the small car's highest sales year since 2004 and up 13% versus
full-year 2007.  Focus parlayed SYNC technology and 35 mpg highway
fuel economy, which is 5 mpg better than Toyota's Corolla and 2
mpg better than the smaller Honda Fit, to achieve a market share
increase in the competitive small car segment -- its first share
increase since Focus was introduced during the 2000 model year.

Meanwhile, Ford Fusion posted near-record sales of 147,569 units
in 2008.  Fusion, Mercury Milan and Lincoln MKZ are redesigned for
the 2010 model year and will arrive in dealer showrooms this
spring.  The first-ever Fusion Hybrid will be America's most fuel-
efficient mid-size car with 41 mpg in the city and 36 mpg on
highway -- besting the Toyota Camry hybrid by 8 mpg in the city
and 2 mpg on highway.

Lincoln outpaced the competition as 2008 drew to a close.  Helped
by the all-new Lincoln MKS sedan, Lincoln sales totaled 9,053 in
December, down 10% compared with a year ago.  In the fourth
quarter, however, Lincoln increased its share in the luxury market
as its 16% sales decline was less than half of the average decline
of all other luxury brands.

U.S. Sales

In December, Ford, Lincoln and Mercury sales totaled 134,114, down
32% compared with a year ago.  Retail sales to individual
customers were down 27%, and fleet sales were down 42% (including
a 57% decline in daily rental sales), consistent with Ford Motor's
plans.

For the full year, Ford, Lincoln and Mercury sales totaled
1.9 million, down 20% versus a year ago.  Retail sales were down
22%, and fleet sales were down 17% (including a 22% decline in
daily rental sales), in line with Ford's plans.

U.S. Market Share

In the Fourth Quarter, Ford, Lincoln and Mercury's market share is
estimated at 15.0%, up 0.9 points versus a year ago.  This is the
first time since 2001 that the company's Fourth Quarter market
share was higher than a year ago.

For the full year of 2008, Ford, Lincoln and Mercury's market
share is estimated at 14.2%, down 0.4 points versus a year ago.
This marks the company's smallest decline in market share this
decade.

"This is a strong ending to...a very challenging year," said
marketing chief Jim Farley.

                     About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents.  With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda.  The company provides
financial services through Ford Motor Credit Company.

The company has operations in Japan in the Asia Pacific region. In
Europe, the company maintains a presence in Sweden, and the United
Kingdom.  The company also distributes its brands in various
Latin-American regions, including Argentina and Brazil.

                       *     *     *

As reported in the Troubled Company Reporter on Nov. 11,
2008, Moody's Investors Service lowered the debt ratings of
Ford Motor Company, Corporate Family and Probability of
Default Ratings to Caa1 from B3.  The company's Speculative
Grade Liquidity rating remains at SGL-3 and the rating outlook
is negative.  In a related action Moody's also lowered the
long-term rating of Ford Motor Credit Company to B3 from B2.
The outlook for Ford Credit is negative.

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


JAFCO CO: To Record JPY1.32 Bil. Loss on Low Nomura Share Price
---------------------------------------------------------------
JAFCO Co Ltd said it will post an extraordinary loss during the
third quarter ending December 31, 2008, after the market value of
its holdings in Nomura Holdings Inc. and one other company, which
are classified as "investment securities" on consolidated
financial statements, have fallen sharply below acquisition price.

The JPY1.32 billion impairment loss resulting from the write-down
of these holdings will be recorded as an extraordinary loss in
consolidated accounts, the company said.

JAFCO will announce results for the third quarter ending Dec. 31,
2008 on Jan. 23, 2009.

Takahiko Hyuga at Bloomberg News reports Nomura dropped 45 percent
in Tokyo trading during the quarter.  The report relates the
brokerage underperformed the benchmark Topix index by 28 percent
since Oct. 28, when Nomura posted a wider-than-expected quarterly
loss on tumbling stock markets and flagged US$2 billion in costs
to buy parts of bankrupt Wall Street firm Lehman Brothers Holdings
Inc.

Jafco holds 2 million shares in Nomura, or about 0.1 percent of
the Tokyo-based brokerage, according to data compiled by
Bloomberg.

JAFCO Co. Ltd. (TYO:8595) -- http://www.jafco.co.jp/-- is a
Japan-based company engaged in private equity investment and fund
management businesses.  The Company's principal business areas
include venture capital (VC), as well as the operation and
management of investment funds in Japan, the United States and
Asia.  The Company is also involved in the provision of consulting
services related to business management, as well as support
services to enhance corporation business performance and list on
stock exchange.


NOMURA HOLDINGS: May Book More Than JPY50 Bil. 3Q Valuation Loss
----------------------------------------------------------------
Nomura Holdings Inc is likely to book a third-quarter valuation
loss of more than JPY50 billion (US$535 million) on its stake on
Fortress Investment Group, Reuters reports citing the Nikkei
business daily.  Fortress specializes in alternative investments
as hedge funds and private equity funds.

Reuters relates the Nikkei said the loss, along with those on
investments tied to Bernard Madoff's firm and an Icelandic bank,
would likely result in the fourth consecutive quarterly loss for
Nomura.

According to Reuters, Nomura invested about US$888 million to
acquire 15 percent of Fortress, which shares, offered at US$18.50
in the initial public offering, closed at US$1.27 on Friday,
January 2.

The Troubled Company Reporter-Asia Pacific on Dec. 16, 2008,
citing Channel NewsAsia, reported that Nomura said it had exposure
of JPY27.5 billion (US$302 million) to Mr. Madoff's investment
firm, but reassured investors that there would be no significant
impact on its finances.

Separately, Reuters reports Japan's Elpida Memory Inc said Nomura
had converted US$65 million worth of its convertible bond, leaving
the PC memory maker to redeem the remaining JPY44 billion.

The report recalls Elpida raised JPY50 billion through the bond
last year for investment purposes, however, a plunge in its share
price due to concerns of a massive dilutive effect from the bond
forced Elpida to redeem it under an agreement with Nomura.

Nomura, the report notes, converted JPY6 billion worth of the bond
and will receive nearly 11.8 million shares in Elpida, or 9
percent of the outstanding stock as of the end of last month.

In a TCR-AP report on Dec. 3, 2008, Bloomberg News said Nomura
repeated a target of reaching a JPY500 billion (US$5.3 billion)
pretax profit for the year that
ends in March 2011.

However, Bloomberg News said the plan came as Goldman Sachs Group
Inc. cut a forecast for Nomura's fiscal 2011 pretax profit by 20
percent to JPY250 billion.  Goldman said Nomura's acquisition of
parts of Lehman Brothers may force it to raise more capital.

According to Bloomberg News, Nomura reported three straight
quarterly losses as global markets declined and flagged US$2
billion in costs stemming from the purchase of parts of Lehman
Brothers.  The company had a pretax loss of JPY64.6 billion for
the year ended March 31 while global investment banking profit was
JPY22.8 billion.  Nomura had about JPY430.9 billion of cash as of
Sept. 30.

Bloomberg News said the brokerage posted a wider-than-expected
JPY72.9 billion second-quarter loss, putting it on course for a
record full-year deficit.  The firm's first-half shortfall of
JPY149.5 billion was more than double its record JPY67.8 billion
annual loss last year, prompting Standard & Poor's and Moody's
Investors Service to say they may cut the firm's credit ratings,
Bloomberg News noted.

                      About Nomura Holdings

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


* JAPAN: Auto Sales in 2008 Dip to Lowest Level Since 1974
----------------------------------------------------------
Japan's domestic auto sales fell last year to their lowest level
since the mid-1970s, Kenneth Maxwell at Dow Jones Newswires
reports.

Citing data released by the Japan Automobile Dealers' Association
on Monday, the report relates that sales of new cars, trucks and
buses slid 6.5% to 3.212 million vehicles last year, down from
3.434 million in 2007.

According to the report, officials at the association said latest
figures marked the fifth straight year of declines, taking sales
to their lowest level since 1974's 3.133 million.

In December, sales fell 22.3% to 183,549 vehicles from 236,142 in
the same month a year earlier.



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

LEHMAN BROTHERS: Kamco May Purchase Japanese Distressed Assets
--------------------------------------------------------------
Korea Asset Management Corp. is considering acquiring part of
Lehman Brothers Holdings' JPY500 billion (US$5.5 billion) in
Japanese distressed assets, according to a report by Bloomberg
dated Dec. 12.

"Lehman's Japan assets have high investment value.  The asset
values are expected to rise in the future" Bloomberg quoted Lee
Chol Hwi, Kamco's Chief Executive Officer, as saying.

No official talks have begun with Lehman Brothers Holdings.  Yi
Kyung Ju, Kamco's spokesman told Bloomberg that weaker Korean won
against foreign currencies including the yen serves as a
difficulty in any acquisition.

Mo Jae Sung, who helps manage almost $1 billion at Hanwha
Investment Trust Management Co. in Seoul, commented that Kamco
should have been focusing on the local market right now amid
concerns of growing bad assets.  "Still, it's understandable that
Kamco would want to take advantage of opportunities to buy cheap
overseas assets," Bloomberg quoted him as saying.

Kamco, a specialist buyer of delinquent loans, spent 39.3
trillion won to buy distressed assets with a face value of 111
trillion won in South Korea since the 1997-1998 financial crisis.
It made its first overseas investment in December 2007, leading a
group of South Korean companies in buying 133.4 billion won worth
of bad debts in China.

                      About Lehman Brothers

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

Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
$639 billion in assets and $613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).  Several other affiliates followed
thereafter.

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

On Sept. 19, 2008, the Honorable Gerard E. Lynch, Judge of the
United States District Court for the Southern District of New
York, entered an order commencing liquidation of Lehman Brothers,
Inc., pursuant to the provisions of the Securities Investor
Protection Act in the case captioned Securities Investor
Protection Corporation v. Lehman Brothers Inc., Case No. 08-CIV-
8119 (GEL).  James W. Giddens has been appointed as trustee for
the SIPA liquidation of the business of LBI

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.  Nomura Holdings Inc., the
largest brokerage house in Japan, on Sept. 22 reached an agreement
to purchased Lehman Brothers Holdings, Inc.'s operations in Europe
and the Middle East less than 24 hours after it reached a deal to
buy Lehman's operations in the Asia Pacific for US$225 million.
Nomura paid only $2 dollars for Lehman's investment banking and
equities businesses in Europe, but agreed to retain most of
Lehman's employees.

             International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on Sept. 15, 2008.  The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.  The
two units of Lehman Brothers Holdings, Inc., which has filed for
bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc.
reported about JPY3.4 trillion ($33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News, Issue No. 12; Bankruptcy
Creditors' Service, Inc., <http://bankrupt.com/newsstand/>or
215/945-7000).



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

BANK UTAMA: Fitch Affirms and Withdraws 'D' Individual Rating
-------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn Bank Utama (Malaysia)
Berhad's (Bank Utama) Individual Rating of 'D' and Support Rating
of '4'.

The withdrawal of ratings follows the vesting order on 1 May 2003
to transfer the bank's assets to another Malaysian bank, RHB Bank
('BBB'/Stable) and the surrender of its banking licence on 2 May
2008.  Bank Utama has since been converted into a private company
and renamed Utama Gilang Sdn Bhd.


GOLD BRIDGE: Bourse Extends Plan Filing Period to March 31
----------------------------------------------------------
Bursa Malaysia Securities Berhad has granted Gold Bridge
Engineering & Construction Berhad an extension of time until
March 31, 2009, to submit its regularization plans to the
Securities Commission and other relevant authorities for approval.

In the event:

    a) the company submits its regularization plans to the
       Approving Authorities for approval within the Extended
       Timeframe, Bursa Securities will await the outcome of
       the company's submission; and

    b) the company fails to obtain the Approving Authorities'
       approval and appeals against the decision of the
       Approving Authorities, Bursa Securities will await the
       outcome of the company's appeal to the Approving
       Authorities.

Gold Bridge must proceed to implement its regularization plans
expeditiously within the timeframe or extended timeframe
stipulated by the Approving Authorities to obtain all Approving
Authorities' approval necessary for the implementation of its
regularization plans.

Bursa Securities will commence to de-list the securities of
Lityan in the event:

   a) the company fails to submit the regularization plans
      to the Approving Authorities for approval within the
      Extended Timeframe;

   b) the company fails to obtain the approval from any of
      the Approving Authorities necessary for the implementation
      of its regularization plans and does not appeal to the
      Approving Authorities within the timeframe (or extended
      timeframe, as the case may be) prescribed to lodge an
      appeal;

   c) the company does not succeed in its appeal against the
      decision of the Approving Authorities; or

   d) the company fails to implement its regularization plans
       within the timeframe or extended timeframes stipulated
       by the Approving Authorities.

                        About Gold Bridge

Headquartered in Kuala Lumpur, Malaysia, Gold Bridge Engineering
& Construction Berhad develops residential and commercial
properties and provision of civil engineering and general
construction services.  The Company's other activities include
boat building and repairing of ships, manufacturing and
supplying of ready-mixed concrete and provision of related
services, management of golf and beach resort and investment
holding.  Operations are carried out principally in Malaysia.
The Company has incurred losses in the past.  It also defaulted
on several loan facilities, which caused it to fall under Bursa
Malaysia Securities Berhad's Practice Note 1/2001 category.

                          *     *     *

For the fiscal year ended June 30, 2008, Gold Bridge Engineering
Berhad reported a MYR1.65 million loss after tax, which is
substantially lower than the preceding year's loss of MYR49.73
million.  The reduction was mainly due to the substantial
reduction in impairment losses, provision for doubtful debts and
other operating expenses.

Gold Bridge Engineering Berhad is currently listed as an affected
listed issuer under the an Amended Practice Note No. 17/2005 List
of Companies of the Bursa Malaysia Securities Bhd, and is
therefore required to submit a regularization plan.


CNLT (FAR EAST): Bourse Commences De-listing Process
----------------------------------------------------
Bursa Malaysia Securities Berhad has decided to commence de-
listing procedures against CNLT (Far East) Berhad pursuant to
paragraph 9.26(6) of the Listing Requirements of Bursa Securities.

According to the bourse, CNLT failed to submit its annual report
for the financial year ended December 31, 2007, on or before June
30, 2008, and until to-date.

Bursa Securities has served a notice to show cause to CNLT to make
representations to Bursa Securities within a period of 5 market
days from January 2, 2009, as to why the company's securities
should not be de-listed from the Official List of Bursa
Securities.

CNLT (Far East) Berhad is engaged in the manufacture and sale of
yarn.  Its subsidiary includes Indosen S.A., which is engaged in
the manufacture and sale of textiles and apparel.  The company
operates in Malaysia and Senegal.

                          *     *     *

The company was admitted into the Amended PN17 listing criteria
of the Bursa Malaysia Securities Bhd as it has triggered
Paragraph 2.1(e) of the bourse's listing requirements:

     (i) Based on the unaudited quarterly results of CNLT for
         the first quarter ended March 31, 2007, as announced
         to Bursa Securities, the shareholders' equity on a
         consolidated basis is less than 50% of the issued and
         paid up capital of the company ; and

    (ii) The auditors of CNLT have expressed a modified opinion
         with emphasis on the Company's going concern in its
         latest audited accounts for the financial year ended
         December 31, 2005.


WONDERFUL WIRE: Total Default Reaches MYR75.89 Mil. as of Dec. 31
-----------------------------------------------------------------
Wonderful Wire Berhad disclosed with the Bursa Stock Exchange
that the company's total default reached MYR75,895,614.31 as of
December 31, 2008, which comprises of:

Wonderful Wire's loans:

                                              Principal & Interest
    Lender                    Facility          Outstanding (MYR)
    -------                   --------        --------------------

CIMB Bank Berhad          Short Term Advance     10,227,197.31
                            Overdraft              2,290,230.82
CIMB Factor Lease Berhad  Rental of Machinery     4,307,968.46

Malayan Banking Berhad    Term Loan              32,244,870.84
                            Overdraft              5,540,398.04
RHB Islamic Bank Berhad   Term Financing         19,003,448.26
                            Revolving Credit       2,217,362.21
Orix Rentec (M) Sdn. Bhd. Rental of office
                            equipment                 64,138.38
                                                  --------------
                                          Total:  75,895,614.31

WWC Oil & Gas (Malaysia) Sdn. Bhd.'s loan:

                                              Principal & Interest
    Lender                    Facility          Outstanding (MYR)
    -------                   --------        --------------------
* CIMB Factor Lease Bhd.      Leasing                326,937.20


WWC and its subsidiary are unable to service the loan repayments
to the lending financial institutions as their businesses has
suffering operating losses for the last few years.  The problem
has been compounded by the shortage in working capital and
continuing increase in the prices of copper, the main raw
material for WWC's productions.

                      About Wonderful Wire

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

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



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

FLOORPRO SOUTH: Court Hears Wind-Up Petition
--------------------------------------------
On December 19, 2008, the High Court at Auckland heard a petition
to have Floorpro South Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on Oct. 21, 2008.

The CIR's solicitor is:

           Simon John Eisdell Moore
           c/o Meredith Connell
           Forsyth Barr Tower, Level 17
           55-65 Shortland Street
           PO Box 2213, Auckland
           Telephone:(09) 336 7556)


GLENHAVEN HOME: Court Hears Wind-Up Petition
--------------------------------------------
On December 19, 2008, the High Court at Auckland heard a petition
to have Glenhaven Home for The Elderly Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on October 22, 2008.

The CIR's solicitor is:

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


JIM & JASON: Court Hears Wind-Up Petition
-----------------------------------------
On December 19, 2008, the High Court at Auckland heard a petition
to have Jim & Jason Ltd.'s operations wound up.

New Zealand Breweries Limited filed the petition against the
company on Oct. 16, 2008.

The Petitioner's solicitor is:

          Kevin Patrick Mcdonald
          Kevin McDonald & Associates, Solicitors
          Takapuna Towers, Level 11
          19-21 Como Street
          PO Box 331065, Takapuna
          Auckland
          Telephone:(09) 486 6827
          Facsimile:(09) 486 5082


KINNOULL (TAIKO): Commences Liquidation Proceedings
---------------------------------------------------
On September 30, 2008, Kinnoull (Taiko) Ltd. commenced liquidation
proceedings.

The company's liquidator is:

          Iain Andrew Nellies
          c/o Insolvency Management Limited
          Burns House, Level 3
          10 George Street
          PO Box 1058, Dunedin


RYAN SECURITY: Court Hears Wind-Up Petition
-------------------------------------------
On December 15, 2008, the High Court at Christchurch heard a
petition to have Ryan Security and Consulting Ltd.'s operations
wound up.

The Commissioner of Inland Revenue filed the petition against the
company on Nov. 3, 2008.

The CIR's solicitor is:

          Julie Newton
          Inland Revenue Department
          1st Floor Reception
          224 Cashel Street
          PO Box 1782, Christchurch 8140
          Telephone:(03) 968 0807
          Facsimile:(03) 977 9853


SIMPLY TWO: Appoints Robert Laurie Merlo as Liquidator
------------------------------------------------------
On November 28, 2008, Robert Laurie Merlo was appointed as
liquidator of Simply Two West City Ltd.

Only creditors who were able to file their proofs of debt by
December 29, 2008, will be included in the company's dividend
distribution.

The Liquidator can be reached at:

          Robert Laurie Merlo
          Merlo Burgess & Co Limited
          132 Symonds Street
          Eden Terrace, Auckland 1010
          PO Box 51486, Pakuranga
          Manukau 2140


SITE IT: Appoints John Francis Managh as Liquidator
---------------------------------------------------
On December 1, 2008, the shareholders of Site It Ltd. appointed
John Francis Managh as the company's liquidator.

The Liquidator can be reached at:

          John Francis Managh
          50 Tennyson Street
          PO Box 1022, Napier
          Telephone/Facsimile:(06) 835 6280


SOUTHGATE PLASTICS ET AL: Commence Liquidation Proceedings
----------------------------------------------------------
Southgate Plastics Ltd. and PR Sylvia Limited commenced
liquidation proceedings on November 24, 2008.

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

The companies' liquidator is:

          Bryan Williams
          c/o Bryan Williams & Associates
          Insolvency Practitioners
          131 Taupaki Road, RD 2
          Henderson 0782
          Telephone:(09) 412 9762
          Facsimile:(09) 412 9763


SYDNEY PRODUCTIONS: Court Hears Wind-Up Petition
------------------------------------------------
On December 17, 2008, the High Court at Auckland heard a petition
to have Sydney Productions (No.5) Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on Aug. 11, 2008.

The CIR's solicitor is:

          Michael Kinlim Yan
          Inland Revenue Department
          Legal and Technical Services
          5-7 Byron Avenue
          PO Box 33150, Takapuna
          Auckland
          Telephone:(09) 984 1514
          Facsimile:(09) 984 3116


THE 4 WINDS: Court Hears Wind-Up Petition
-----------------------------------------
On December 19, 2008, the High Court at Auckland heard a petition
to have The 4 Winds Contractors Ltd.'s operations wound up.

The Commissioner of Inland Revenue filed the petition against the
company on Nov. 4, 2008.

The CIR's solicitor is:

           Simon John Eisdell Moore
           c/o Meredith Connell
           Forsyth Barr Tower, Level 17
           55-65 Shortland Street
           PO Box 2213, Auckland
           Telephone:(09) 336 7556)


* NEW ZEALAND: Exports Rise 9.4% in November 2008 to NZ$3.7 Bil.
---------------------------------------------------------------
Compared with November 2007, the value of merchandise exports rose
9.4 percent in November 2008 to reach NZ$3.7 billion, Statistics
New Zealand said today.  The trend for merchandise exports
continues to rise steadily following a period of strong growth in
the second half of 2007.  This growth is associated with high
dairy prices and the commencement of Tui oil exports.

Merchandise imports were up 5.2 percent compared with November
2007, to reach NZ$4.2 billion.  The imports trend has eased in
recent months, coinciding with falling oil prices.

The trade balance for November 2008 was a deficit of NZ$520
million, or 14.1 percent of the value of exports.  As a percentage
of exports, this is the smallest November deficit since 2001.

In November 2008, the increase in exports was led by rises in milk
powder, butter and cheese; and logs, wood and wood articles. Crude
oil exports were down compared with the same month last year.

Salt, earths, stone, lime and cement; and fertilizers were the
main drivers behind this month's increase in merchandise imports.
Vehicles, parts and accessories partly offset the rises in other
commodities, led by a decline in passenger motor cars.

In the year ended November 2008, exports to Australia (New
Zealand's largest export destination) have exceeded NZ$10 billion
for the first time.  Exports to Australia are up NZ$2.2 billion
from the year ended November 2007, due largely to a NZ$1.4 billion
increase in crude oil exports.


* NEW ZEALAND: NZX Discloses 2008 Trading Declined 18%
------------------------------------------------------
NZX disclosed its NZX Operating Metrics for Full Year and December
2008.

Trading

    -- Total number of trades in 2008 was 590,758, a 5%
       decrease on 2007.

    -- Total value traded in 2008 was NZ$28 billion, a 18%
       decrease on 2007.  Average daily value traded in 2008
       was NZ$111 million.

    -- Total number of trades for the NZSX in 2008 was 556,040,
       a 5% decrease on last year.  Total value traded on the
       NZSX was NZ$26 billion, a 20% decrease on last year.

    -- Total number of trades for the NZAX in 2008 was 3,081
       for 2008.  Total value traded on the NZAX was NZ$18
       million.

    -- Total number of trades for the NZDX in 2008 was 31,637
       for 2008.  Total value traded on the NZDX was NZ$1.9
       billion.

Capital Raised

    -- Total capital raised in 2008 was NZ$3.11 billion, with a
       breakdown of NZ$1.03 billion equity and NZ$2.08 million
       in new debt.

Other

    -- The number of NZX Market Data terminals has decreased 6%
       to 10,017, compared with 10,627 at the same period last
       year.

    -- The total number of instalment warrants trades in 2008
       was 8,937, a 29% decrease on last year.  Total value
       traded for installment warrants for 2008 was NZ$44 million.



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

AESTHETICS D ORCHARD: Court Enters Wind-Up Order
------------------------------------------------
On December 12, 2008, the High Court of Singapore entered an order
to have Aesthetics D Orchard Pte Ltd's operations wound up.

Orchard Parade Holdings Limited filed the petition against the
company.

Aesthetics D Orchard's liquidator is:

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


C&S CONSTRUCTION: Creditors' Proofs of Debt Due on January 19
-------------------------------------------------------------
The creditors of C&S Construction Pte Ltd are required to file
their proofs of debt by January 19, 2009, to be included in the
company's dividend distribution.

The company's liquidators are:

          Chee Yoh Chuang
          Lim Lee Meng
          c/o Stone Forest Corporate Advisory Pte Ltd
          8 Wilkie Road
          #03-08 Wilkie Edge
          Singapore 228095


GUAN LEONG: Creditors' Proofs of Debt Due on January 19
-------------------------------------------------------
The creditors of Guan Leong Construction Pte Ltd are required to
file their proofs of debt by January 19, 2009, to be included in
the company's dividend distribution.

The company's liquidators are:

          Chee Yoh Chuang
          Lim Lee Meng
          c/o Stone Forest Corporate Advisory Pte Ltd
          8 Wilkie Road
          #03-08 Wilkie Edge
          Singapore 228095


MOUNTAMOUNT (S'PORE): Requires Creditors to File Claims by Jan. 16
------------------------------------------------------------------
The creditors of Mountamount (S'pore) Pte Ltd. are required to
file their proofs of debt by January 16, 2009, to be included in
the company's dividend distribution.

The company's liquidator is:

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


TANG'S CONSTRUCTION: Requires Creditors to File Claims by Jan. 16
-----------------------------------------------------------------
The creditors of Tang's Construction Pte Ltd. are required to file
their proofs of debt by January 16, 2009, to be included in the
company's dividend distribution.

The company's liquidator is:

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



=============
V I E T N A M
=============

VIETCOMBANK: Submits Application to List Shares in HOSE
-------------------------------------------------------
Vietnam News Agency reports that Vietcombank, or Commercial Bank
for Foreign Trade of Vietnam, submitted on December 31,
application to list shares on the Ho Chi Minh Stock Exchange
(HOSE).

According to Vietnam News Agency, Vietcombank chairman Nguyen Hoa
Binh expected shares to be listed at an initial price on the HCM
Stock Exchange of about VND25,000 per share.

The bank, the news agency says, currently has charter capital of
over VND12 trillion (US$685.71 million) and is asking to list
about 112.3 million shares.  The quantity of shares would
represent 9.28 per cent of equity in the bank.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 23, 2008, Reuters said Vietcombank would delay its domestic
listing by three months to June while it talked to foreign
investors about a stake sale.

Vietcombank, the Reuters recounted, had planned to list on the Ho
Chi Minh City exchange by the end of the first quarter or early
in the second quarter of 2008.

However, Vietnam News Agency discloses the date for the listing
has not yet been set, and listing of the shares has already been
held up since the bank's initial public offering a year ago by the
requirements of Government Decree 14/2007/ND-CP of January 2007,
which provides that an enterprise will be allowed to list shares
only once at least 20 per cent of ownership has been sold to at
least 100 different investors.

A TCR-AP report on Jan. 28, 2008, said Asia Pulse recounted that
before the IPO, Vietcombank had reportedly been negotiating with
three potential foreign investors -- Goldman Sachs, Nomura
Holdings Inc, and General Electric.  However, none of them could
agree on share prices.

Asia Pulse pointed out that the Government directed the bank to
proceed with the IPO, despite not having concluded a deal with a
strategic investor and despite a prior order by the Prime
Minister that state-owned banks undergoing equitization must
have foreign strategic investors on board before their IPOs.

Le Hai Tra, spokesman for the stock exchange, Vietnam News Agency
relates, admitted "The issues surrounding the listing of
Vietcombank are actually rather complicated.  It is a big bank, a
major institution with major capital sources.  Its case may be an
exception."

Mr. Tra told Vietnam News Agency a final decision was still
pending and that Vietcombank still needed to complete various
administrative procedures.

Vietcombank Securities Co., the bank's in-house brokerage, would
serve as listing consultant, the Vietnam News Agency adds.

                        About Vietcombank

Based in Vietnam, Vietcombank or Bank for Foreign Trade of Vietnam
engages in commercial banking business for individual and
corporate clients.  Its main services are lending and borrowing
activities, international clearing and trade financing, cards
issuance, treasury, correspondent banking, securities services,
leasing, asset management, and equity investment. Its major
clients are companies engaged in international trading business.
The Bank has seven subsidiaries engaged in diversified financial
business.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on May 6,
2008, that Standard & Poor's Ratings Services revised on May 2,
2008, the outlook on its counterparty credit rating on Bank for
Foreign Trade of Vietnam (Vietcombank) to negative from stable.
At the same time, Standard & Poor's affirmed the bank's
counterparty credit rating at 'BB/B'.


* VIETNAM: 9 Small Banks Complete Plans to Raise Capital Charter
----------------------------------------------------------------
Nine small banks have completed plans to increase their capital
charter to VND1 trillion (US$57.14 million) each, Vietnam News
Agency reports citing The State Bank of Vietnam.

According to the report, these banks were facing closure because
they had inadequate charter capital:

   1) De Nhat Bank (with VND609 billion ($34.8 million)
      in charter capital previously),

   2) Gia Dinh Bank (VND500 billion)

   3) Pacific Bank (VND566 billion)

   4) My Xuyen Bank (VND500 billion)

   5) PG Bank (VND500 billion)

   6) Kien Long Bank (VND580 billion)

   7) Viet Nam Thuong Tin Bank (VND500 billion)

   8) Dai Tin Bank (VND504 billion)

   9) Dai A Bank (VND500 billion)

Governor Nguyen Van Giau, Vietnam News Agency relates, told
reporters at a banking meeting in Ha Noi early last week that most
of them had finalized plans to increase charter capital and that
some were just waiting to complete administrative procedures.

Under Decree No 141 issued by the central bank in 2006, the report
says, all commercial joint stock banks had to have at least VND1
trillion in charter capital by December 31, 2008, and VND3
trillion (US$171.43 million) by December 31, 2010.

Vietnam News Agency notes that those who do not comply will be
closed.



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

* Emerging Economies to See Sharp Slowdown in Growth in 2009
------------------------------------------------------------
The emerging economies will see a sharp slowdown in growth in
2009, but they could still surpass the advanced economies as early
as 2014 in terms of their share of world GDP, according to
calculations by economists at PricewaterhouseCoopers LLP (PwC).

While all of the major advanced economies are projected to shrink
in 2009 and recover only gradually thereafter, the large emerging
economies (particularly China and India) are expected to
experience only a slowdown not a contraction in 2009 and generally
retain much better medium term prospects than the advanced
economies.

PwC projects that by 2014 the share of emerging economies (based
on the International Monetary Fund (IMF) definition including
developing countries) could rise to just over half (50.5%) of
world GDP in purchasing power parity (PPP) terms, up from 43.7% in
2007.  The PwC figures are based on analysis of IMF data on
current world GDP shares combined with the firm's latest medium-
term growth projections.

John Hawksworth, head of macroeconomics, PricewaterhouseCoopers
LLP, commented: "It is striking that such a significant shift in
world GDP share from advanced economies to emerging economies
could occur within as little as six years, and that by 2014 more
than half of world GDP could be accounted for by these high growth
countries."

Alec Jones, head of emerging markets, PricewaterhouseCoopers LLP,
added: "The analysis provides an interesting insight into how the
opportunities for investors from the UK and other advanced
economies are likely to change as the emerging economies grow
their consumer markets.  Instead of being viewed predominantly as
low cost manufacturing and offshoring centers by businesses in the
advanced economies, the projections indicate they are fast
becoming destination markets in their own right."

Other notable findings from the country level results include
that, by 2014:

    * while the US would remain the largest economy in the
      world, its share of global GDP at PPPs is projected to be
      down from 21.3% in 2007 to 19%;

    * China could overtake the euro area and move into second
      place;

    * India could nudge ahead of Japan; and

    * the UK share of world GDP in PPP terms could fall from
      3.3% in 2007 to 2.9% in 2014.

John Hawksworth, head of macroeconomics at PricewaterhouseCoopers
LLP, said: "We expect some sharp slowdowns in emerging market
growth in 2009, notably in Russia and Brazil.  Growth in China and
India could slow to only around 5-6% in 2009, but this is still a
pretty respectable performance when contrasted with expected
declines in GDP of around 1% or more in the US, Japan and the euro
area.  The UK economy could shrink by close to 2% in 2009, putting
us at the bottom of the G7 league table."

"Of course there are many uncertainties around any such
projections, with short-term risks still weighted to the downside
for all the major economies.  But the conclusion that the emerging
economies are likely to increase their weight in world GDP
significantly over the next five to six years seems relatively
robust, even though they are clearly not immune to the global
downturn."

PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides
industry-focused assurance, tax and advisory services.  It has
more than 16,000 partners and staff in offices around the UK.


* IATA Predicts Worst Revenue Environment in 50 Years
-----------------------------------------------------
The International Air Transport Association (IATA) disclosed its
forecast for 2009 showing an industry loss of US$2.5 billion.  All
regions, except the US, are expected to report larger losses in
2009 than in 2008.

Forecast highlights are:

   * Industry revenues are expected to decline to US$501 billion.
     This a fall of US$35 billion from the US$536 billion in
     revenues forecasted for 2008.  This drop in revenues is the
     first since the two consecutive years of decline in 2001
     and 2002.

   * Yields will decline by 3.0% (5.3% when adjusted for
     exchange rates and inflation).

   * Passenger traffic is expected to decline by 3% following
     growth of 2% in 2008. This is the first decline in
     passenger traffic since the 2.7% drop in 2001.

   * Cargo traffic is expected to decline by 5%, following a
     drop of 1.5% in 2008. Prior to 2008 the last time that
     cargo declined was in 2001 when a 6% drop was recorded.

   * The 2009 oil price is expected to average US$60 per
     barrel (Brent) for a total bill of US$142 billion.  This
     is US$32 billion lower than in 2008 when oil averaged
     US$100 per barrel (Brent).

"The outlook is bleak.  The chronic industry crisis will continue
into 2009 with US$2.5 billion in losses.  We face the worst
revenue environment in 50 years," said Giovanni Bisignani, IATA's
Director General and CEO.

IATA also updated its forecast for 2008 to a loss of US$5.0
billion.  This is slightly improved from the US$5.2 billion loss
projected in the Association's September forecast primarily as a
result of the rapid decline in fuel prices.

The reduction in industry losses from 2008 to 2009 is primarily
due to a shift in the results of North American carriers.
Carriers in this region were hardest hit by high fuel prices with
very limited hedging and are expected to post the largest industry
losses for 2008 at US$3.9 billion.  An early 10% domestic capacity
reduction in response to the fuel crisis has given the region's
carriers a head-start in combating the recession-led fall in
demand.  The lack of hedging is now allowing the region's carriers
to take full advantage of rapidly declining spot fuel prices. As a
result, North American carriers are expected to post a small
profit of US$300 million in 2009.  "North America will be the only
region in the black, but the expected US$300 million profit is
less than 1% of their revenue.  2009 will be another tough year
for everyone," said Mr. Bisignani.

All other regions will show losses:

   -- Asia-Pacific carriers will see losses more than double
      from the US$500 million in 2008 to US$1.1 billion in
      2009.  With 45% of the global cargo market, the region's
      carriers will be disproportionately impacted by the
      expected 5% drop in global cargo markets next year.
      The region's largest market - Japan - is already in
      recession.  And its two main growth markets - China
      and India - are expected to deliver a major shift in
      performance.  Chinese growth will slow as a result of
      the drop-off in exports.  India's carriers, which are
      already struggling with high taxes and insufficient
      infrastructure, can expect a drop in demand following
      on from the tragic terror incidents in November.

   -- Losses for European carriers will increase ten-fold to
      US$1 billion.  Europe's main economies are already in
      recession.  Hedging has locked in high fuel prices for
      many of the region's carriers in US dollar terms, and
      the weakened Euro is exaggerating the impact.

   -- Middle Eastern airlines will see losses double to US$200
      million.  The challenge for the region will be to match
      capacity to demand as fleets expand and traffic slows -
      particularly for long-haul connections.

   -- Latin American carriers will see losses double to US$200
      million.  Strong commodity demand that has driven the
      region's growth has been severely curtailed in the current
      economic crisis. The downturn in the US economy is hitting
      the region hard.

   -- African airlines will see losses of US$300 million continue.
      The region's carriers face strong competition.  Defending
      market-share will be the main challenge.

Mr. Bisignani made special note of the continuing contraction of
air cargo traffic that started in June 2008.  "Air cargo comprises
35% of value of goods traded internationally.  The 7.9% decline in
October is a clear indication that the worst is yet to come - for
airlines and the slowing global economy," said Mr. Bisignani.

"Airlines have done a remarkable job of restructuring themselves
since 2001.  Non-fuel unit costs are down 13%. Fuel efficiency has
improved by 19%.  And sales and marketing unit costs have come
down by 13%. IATA made a significant contribution to this
restructuring.  In 2008 our fuel campaign helped airlines to save
US$5 billion, equal to 14.8 million tonnes of CO2.  And our work
with monopoly suppliers yielded saving of US$2.8 billion.  But the
ferocity of the economic crisis has overshadowed these gains and
airlines are struggling to match capacity with the expected 3%
drop in passenger demand for 2009.  The industry remains sick.
And it will take changes beyond the control of airlines to
navigate back into profitable territory," said Mr. Bisignani.

Mr. Bisignani outlined an industry action plan for 2009 that
reflected the Association's Istanbul Declaration in June of this
year. "Labor must understand that jobs will disappear when costs
don't come down. Industry partners must contribute to efficiency
gains. And governments must stop crazy taxation, fix the
infrastructure, give airlines normal commercial freedoms and
effectively regulate monopoly suppliers," said Mr. Bisignani.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Jan. 21-22, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    Corporate Governance Meetings
       Bellagio, Las Vegas, Nevada
          Contact: www.turnaround.org

Jan. 22-23, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    Distressed Investing Conference
       Bellagio, Las Vegas, Nevada
          Contact: www.turnaround.org

Jan. 22-23, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Rocky Mountain Bankruptcy Conference
       Westin Tabor Center, Denver, Colorado
          Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 5-7, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Caribbean Insolvency Symposium
       Westin Casurina, Grand Cayman Island, AL
          Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 25-27, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Valcon
       Four Seasons, Las Vegas, Nevada
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 13, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Bankruptcy Battleground West
       Beverly Wilshire, Beverly Hills, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 1-4, 2009
AMERICAN BANKRUPTCY INSTITUTE
    27th Annual Spring Meeting
       Gaylord National Resort & Convention Center,
       National Harbor, Md.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 16-19, 2009
COMMERICAL LAW LEAGUE OF AMERICA
    2009 Chicago/Spring Meeting
       Westin Hotel on Michigan Ave., Chicago, Ill.
          Contact: (312) 781-2000; http://www.clla.org/
Apr. 17-18, 2009
NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES
    NABT Spring Seminar
       The Peabody, Orlando, Florida
          Contact: http://www.nabt.com/

Apr. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Consumer Bankruptcy Conference
       John Adams Courthouse, Boston, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 27-28, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    Corporate Governance Meetings
       Intercontinental Hotel, Chicago, Illinois
          Contact: www.turnaround.org

Apr. 28-30, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Spring Conference
       Intercontinental Hotel, Chicago, Illinois
          Contact: www.turnaround.org

May 7-10, 2009
AMERICAN BANKRUPTCY INSTITUTE
    27th Annual Spring Meeting
       Gaylord National Resort & Convention Center
          National Harbor, Maryland
             Contact: http://www.abiworld.org/

May 14-16, 2009
ALI-ABA
    Chapter 11 Business Reorganizations
       Langham Hotel, Boston, Massachusetts
          Contact: http://www.ali-aba.org

June 11-13, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan
             Contact: http://www.abiworld.org/

June 21-24, 2009
INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY &
    BANKRUPTCY PROFESSIONALS
       8th International World Congress
          TBA
             Contact: http://www.insol.org/

July 16-19, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Mt. Washington Inn
          Bretton Woods, New Hampshire
             Contact: http://www.abiworld.org/

Sept. 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
    17th Annual Southwest Bankruptcy Conference
       Hyatt Regency Lake Tahoe, Incline Village, Nevada
          Contact: http://www.abiworld.org/

Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       Marriott Desert Ridge, Phoenix, Arizona
          Contact: 312-578-6900; http://www.turnaround.org/

Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
    21st Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 15-18, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Michigan
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Ocean Edge Resort, Brewster, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
          Contact: http://www.turnaround.org/

Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800; http://www.abiworld.org/

          http://www.beardaudioconferences.com/


                         *********

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 2009.  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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