TCRAP_Public/060519.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  

               Friday, May 19, 2006, Vol. 9, No. 099


                            Headlines

A U S T R A L I A   &   N E W  Z E A L A N D

ABC PLUMBING: Creditors' Proofs of Claim Due on May 29
A&G PROTECTIVE: Final Meeting Fixed for Today
ALERTCARE SYSTEMS: Winds Up Business
API TRAVEL: Creditors Must Prove Debts by June 6
AUR SERVICES: Intends to Declare First and Final Dividend

AWARD TAXIS: Appoints Joint and Several Liquidators
BANSON & HEDGES: Faces Liquidation Proceedings
CISKO PTY: Court Orders Wind-up
COLE BULK: Placed Under Voluntary Liquidation
CONSTRUCTION LABOUR: Inability to Pay Debt Prompts Wind-up

DALLE-NOGRE INVESTMENTS: Prepares to Distribute Assets
DESWOD PTY: Receivers and Managers Step Aside
EQUIPMENTNZ.COM: Liquidation Petition Hearing Fixed on May 29
FOTUAIKA FORESTRY: Court to Hear ACC's Liquidation Bid on June 2
GALEWIN PTY: Liquidator Explains Wind-up to Members

G&D HUTH: Supreme Court Issues Winding Up Order
HOMEZONE GEORGE: Evan Groombridge Appointed as Receiver
J R CIVIL: Murray Named as Official Liquidator
LOCKSHIRE PTY: Members Agree to Shut Down Business
LISTEN 24-7: Enters Winding Up Process

LORINDA INVESTMENTS: Court Orders Wind-up
MAJESTIC FOUNDATION: Court to Hear Liquidation Petition June 15
NEWTON ABRAHAMS: Liquidator to Present Wind-up Report Today
NYLEX LIMITED: Announces Major Business Restructuring
NZBT LIMITED: Court to Hear Liquidation Bid on July 13

POWERSERVE MANAGEMENT: To Distribute Dividend on May 26
QANTAS AIRWAYS: To Cut 1,000 Jobs by Year-end to Pay Fuel Costs
ROMPINE PTY: Enters Voluntary Liquidation
SILVERWATTLE PTY: Decides to Halt Operations
STOCKSDALE INVESTMENTS: Liquidators to Explain Wind-up Process

VERTEX PTY: Creditors Agree on Wind-up
VENTURE 2001: Liquidator Receives Proofs of Debt Until June 10


C H I N A   &   H O N G  K O N G

AXM PHARMA: Files Amended Financials for the Fiscal Year of 2005
BASELLAND LIMITED: Moyes and Yeung Tapped as Liquidators
BEN KING: Names Joint Liquidators
BETAKE MARKETING: Creditors' Proofs of Claim Due on June 12
FAIRVIEW PARK: To Hold Final General Meeting on June 12

FIC GLOBAL: Posts TWD655-Million First Quarter Losses
FOCUS CENTURY: Creditors OK Liquidator's Appointment
FORMES (CAUSEWAY BAY): Placed Into Liquidation
FORMES (HONG KONG): Appoints Chu King Hei as Liquidator
HONGKONG TELECOM: Court Names Official Liquidator

JOY CAPITAL: Creditors' Proofs of Claim Due June 20
MAGAZINE HEIGHTS: Appoints Liquidators to Wind Up Operations
OLD MERCURY: Court Appoints Joint Liquidators
PINEROCK LIMITED: Enters Voluntary Liquidation
QING MIAO: Given Until June 16 to Prove Debts

REGAL SKY: Creditors' Proofs of Claim Due Next Month
SHOWER ASSOCIATION: Creditors Must Prove Debt by June 16
SOUTH REGENT: Chan Chi Shing Ceases to Act as Liquidator
SOUTHERN TRUST: Liquidator Presents Wind-up Report
SUNSWAY LIMITED: Creditors to Prove Debts by June 16

TRENDFORD LIMITED: Members Appoint Liquidators
YING YUE: Creditors to Prove Debts on May 27
ZABOL LIMITED: Names Joint and Several Liquidators
* Fitch Says IPPs' Rising Leverage to Persist as Margins Decline


I N D I A

BARODA MERCANTILE: RBI Cancels License Due to Insolvency
MONTARI INDUSTRIES: ICRA Reaffirms Default Rating
NATIONAL TEXTILE: Revival Scheme Gets Green Light from BIFR
PAAM PHARMACEUTICALS: Confirms LD and MD Rating of NCDs


I N D O N E S I A

PERTAMINA: Migas May Approve Cepu Project by June


J A P A N

HUSER LIMITED: President Arrested for Selling Defective Units
* Corporate Bankruptcy Cases in April Decrease by 14.9%


K O R E A

NOVELIS INC: Lenders Extend Financial Report Filing to Sept. 29
NOVELIS INC: Moody's Reviews Low-B Ratings and May Downgrade


M A L A Y S I A

AKTIF LIFESTYLE: Mahiwara & Citatah Withdraw Restructure Support
AMSTEEL CORPORATION: Ordered to Regularize Financial Condition
AMSTEEL CORPORATION: Subsidiary Undergoes Voluntary Wind-up
ANTAH HOLDINGS: Further Adjourns EGM to June 14
LANKHORST BERHAD: Unit Defaults on Banking Facility Repayments

LANKHORST BERHAD: Court to Hear Default Case on June 7
MALAYSIA AIRLINES: Adds Vietnam to ASEAN Growth Market
METROPLEX BERHAD: Bourse Halts Shares Trading
METROPLEX BERHAD: Final Hearing of Appeal Set for June 16
PARK MAY: Net Loss Jumps to MYR1.3 Million in 1Q/FY06

PAXELENT CORPORATION: CIMB Files for Summary Judgment
PAXELENT CORPORATION: Originating Summons Converted into Writ


P H I L I P P I N E S

DIVERSIFIED FINANCIAL: 2005 Net Loss Down by 5%
MANILA ELECTRIC: Seeks to Expand and Improve Network
NATIONAL POWER: Awaits ERC's Final Say on Settlement Agreement
NATIONAL POWER: Can Provide Power to Iloilo Without Power Barge


S I N G A P O R E

CREATIVE TECHNOLOGY: Shares Gain After Suing Apple
LINDETEVES-JACOBERG: To Undertake Renounceable Rights Issue


T H A I L A N D

CENTRAL PAPER: First Quarter Net Loss Goes Down by 20%
PICNIC CORP: Failed Rights Offering may Led to Bankruptcy

     - - - - - - - -

============================================  
A U S T R A L I A   &   N E W  Z E A L A N D
============================================  

ABC PLUMBING: Creditors' Proofs of Claim Due on May 29
------------------------------------------------------
The joint and several liquidators of ABC Plumbing Drainage & Gas
Ltd, David Stuart Vance and Barry Phillip Jordan, require the
Company's creditors to submit their proofs of claim on or before
May 29, 2006.

Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the Company will make.

Contact: D.S. Vance
         McCallum Petterson
         Level 8, The Todd Bldg
         95 Custom House Quay, Wellington
         New Zealand
         Telephone: (04) 499 7796
         Fax: (04) 499 7784


A&G PROTECTIVE: Final Meeting Fixed for Today
---------------------------------------------
The members and creditors of A&G Protective Services Pty Limited
will hold a final meeting today, May 19, 2006.

At the meeting, the parties will receive Liquidator Michael G.
Jones' final account showing how the Company was wound up and
its property disposed of.

Contact: Michael G. Jones
         Liquidator
         c/o Jones Condon Chartered Accountants
         Level 13, 189 Kent Street
         Sydney, New South Wales
         Australia
         Telephone: (02) 9251 5222


ALERTCARE SYSTEMS: Winds Up Business
------------------------------------
The members of Alertcare Systems Pty Limited convened at a
general meeting on April 3, 2006, and decided to wind up the
Company's operations voluntarily.

Contact: Gavin Thomas & Partners
         Level 9, 31 Market Street
         Sydney, Australia
           

API TRAVEL: Creditors Must Prove Debts by June 6
------------------------------------------------
Joint and Several Liquidators Jeffery Philip Meltzer and Rachel
Mason are receiving proofs of debt from creditors of API Travel
Group Ltd until June 6, 2006.

Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the Company will make.

Contact: R.K. Mason
         Meltzer Mason Heath, Chartered Accountants
         PO Box 6302, Wellesley Street
         Auckland, New Zealand
         Telephone: (09) 357 6150
         Fax: (09) 357 6152


AUR SERVICES: Intends to Declare First and Final Dividend
---------------------------------------------------------
AUR Services Pty Limited will declare a first and final dividend
on May 28, 2006, to the exclusion of creditors who were not able
to prove their claims.

Contact: Mark Pearce
         Liquidator
         c/o Pearce & Heers Insolvency Accountants
         Level 8, 410 Queen Street
         Brisbane, Queensland 4000
         Australia
         Telephone: 07 3221 0055


AWARD TAXIS: Appoints Joint and Several Liquidators
---------------------------------------------------
David Stuart Vance and Barry Phillip Jordan were appointed joint
and several liquidators of Award Taxis (1997) Ltd on April 24,
2006.

Contact: Contact: D.S. Vance
         McCallum Petterson
         Level 8, The Todd Bldg
         95 Custom House Quay, Wellington
         New Zealand
         Telephone: (04) 499 7796
         Fax: (04) 499 7784


BANSON & HEDGES: Faces Liquidation Proceedings
----------------------------------------------
An application to liquidate Banson & Hedges was filed by
Hirepool Limited before the High Court of Auckland on March 17,
2006.

The Court will hear the application on June 1, 2006, at 10:00
a.m.

Contact: Dianne S. Lester
         Credit Consultants Debt Services Ltd
         Level 3, 3-9 Church Street, Wellington
         New Zealand
         Telephone: (04) 470 5972


CISKO PTY: Court Orders Wind-up
-------------------------------
The Supreme Court of New South Wales, on March 31, 2006, issued
a winding up order against Cisko Pty Limited.

The Court also ordered the appointment of R. J. Porter to
oversee the wind-up process.

Contact: R. J. Porter
         Liquidator
         Moore Stephens Chartered Accountants
         Level 6, 460 Church Street
         Parramatta, New South Wales 2150
         Australia


COLE BULK: Placed Under Voluntary Liquidation
---------------------------------------------
The members of Cole Bulk Handling Pty Limited convened on March
31, 2006, and opted to liquidate the Company's operations.

Subsequently, Kim David Holbrook was appointed as liquidator.

Contact: Kim D. Holbrook
         Liquidator
         Holbrook & Associates Chartered Accountants
         Level 2, 19 Pier Street
         Perth 6001, Western Australia
         Australia


CONSTRUCTION LABOUR: Inability to Pay Debt Prompts Wind-up
----------------------------------------------------------
At a meeting of Construction Labour Services (New South Wales)
Pty Limited on April 6, 2006, it was determined that a voluntary
wind-up is in the Company's best interests since it cannot pay
its debts when they fall due.

In this regard, Geoffrey Reidy was appointed as liquidator.

Contact: Geoffrey Reidy
         Liquidator
         c/o Rodgers Reidy
         Level 8, 333 George Street
         Sydney, New South Wales 2000
         Australia


DALLE-NOGRE INVESTMENTS: Prepares to Distribute Assets
------------------------------------------------------
The members of Dalle-Nogre Investments Pty Limited resolved on
March 24, 2006, to close the Company's business operations and
distribute the proceeds of its assets disposal.

Contact: Bruce Elliott Rowntree
         Level 2, 2 Barrack Street
         Sydney, New South Wales 2000
         Australia


DESWOD PTY: Receivers and Managers Step Aside
---------------------------------------------
Clifford Stuart Rocke and Norman Mel Ashton ceased to act as the
receivers and managers of the assets of Deswod Pty Limited on
March 23, 2006.


EQUIPMENTNZ.COM: Liquidation Petition Hearing Fixed on May 29
-------------------------------------------------------------
Lyttelton Port Company filed an application to liquidate
EquipmentNZ.Com Ltd before the High Court of Christchurch on
March 20, 2006.

The High Court will hear the application on May 29, 2006, at
10:00 a.m.

Contact: R.A. Fraser
         Credit Services (NZ) Ltd
         Level 6, 138 Victoria Street
         Christchurch, New Zealand


FOTUAIKA FORESTRY: Court to Hear ACC's Liquidation Bid on June 2
----------------------------------------------------------------
Accident Compensation Corporation, on April 11, 2006, filed
before the High Court of Gisborne an application to liquidate
Fotuaika Forestry Ltd.

The Court will hear the petition on June 2, 2006, at 9:00 a.m.

Parties wishing to appear before the hearing are required to
lodge an appearance not later than May 30, 2006.

Contact: Dianne S. Lester
         Credit Consultants Debt Services Ltd
         Level 3, 3-9 Church Street, Wellington
         New Zealand
         Telephone: (04) 470 5972


GALEWIN PTY: Liquidator Explains Wind-up to Members
---------------------------------------------------
A final meeting of the members of Galewin Pty Limited will be
held today, May 19, 2006.

During the meeting, Liquidator D. F. Hamill will present an
account of the manner of the Company's wind-up and property
disposal.

Contact: D. F. Hamill
         Liquidator
         Woinarski & Co. Chartered Accountants
         Suite 2601, Level 26, 100 Miller Street
         North Sydney, New South Wales 2060
         Australia


G&D HUTH: Supreme Court Issues Winding Up Order
-----------------------------------------------
The Supreme Court of New South Wales had on April 6, 2006,
ordered the wind-up of G&D Huth Pty Limited and the appointment
of Geoffrey McDonald as liquidator.

Contact: Geoffrey McDonald
         Hall Chadwick
         Level 29, 31 Market Street
         Sydney, New South Wales 2000
         Australia
         Telephone: (02) 9263 2600
         Fax: (02) 9263 2800


HOMEZONE GEORGE: Evan Groombridge Appointed as Receiver
-------------------------------------------------------
Evan Philip Groombridge was, on March 22, 2006, appointed as
receiver and manager of the assets and undertaking of Homezone
George Street Pty Limited.

Contact: Evan Philip Groombridge
    Receiver
    Level 10, South Tower, 1 Railway Street,
    Chatswood, New South Wales
    Australia


J R CIVIL: Murray Named as Official Liquidator
----------------------------------------------
James Stewart Murray was appointed liquidator of J R Civil
Developments Ltd on April 29, 2006.

Contact: J.S. Murray
         PO Box 46, Orewa
         Auckland, New Zealand
         Telephone: (09) 426 8488
         Fax: (09) 426 8486


LOCKSHIRE PTY: Members Agree to Shut Down Business
--------------------------------------------------
At a general meeting of Lockshire Pty Limited on March 23, 2006,
members decided to wind up the Company's business operations.

Allan Wayne Cosgrove was appointed as liquidator.

Contact: Allan Wayne Cosgrove
         Liquidator
    Warragul Springs, Sunnymead Road
    Roma, Queensland 4455
    Australia


LISTEN 24-7: Enters Winding Up Process
--------------------------------------
Members of Listen 24-7 Pty Limited decided to close the
Company's operations at a general meeting on March 30, 2006.

Samuel Richwol was consequently appointed as liquidator.

Contact: Samuel Richwol
         Liquidator
    O'Keefe Walton Richwol Chartered Accountants
    Suite 3, 431 Burke Road
    Glen Iris 3146, Australia


LORINDA INVESTMENTS: Court Orders Wind-up
-----------------------------------------
The Federal Court of Australia had on March 31, 2006, ordered
the wind-up of Lorinda Investments Pty Limited.

Steven Nicols was consequently named as liquidator.

Contact: Steven Nicols
         Liquidator
    Level 2, 350 Kent Street
    New South Wales 2000, Australia

    
MAJESTIC FOUNDATION: Court to Hear Liquidation Petition June 15
---------------------------------------------------------------
An application to put Majestic Foundation Co Ltd into
liquidation will be heard before the High Court of Auckland on
June 15, 2006, at 10:45 a.m.

All About Animals Limited filed the application at the High
Court on April 7, 2006.

Contact: Robert Latton
         Lowndes Associates
         Level 5, Lowndes Assoc House
         18 Shortland Street, Auckland
         New Zealand
         Telephone: (09) 373 3331
         Fax: (09) 373 3423


NEWTON ABRAHAMS: Liquidator to Present Wind-up Report Today
-----------------------------------------------------------
A final meeting of members of Newton Abrahams Pty Limited will
be held today, May 19, 2006.

G. A. Marx will present the manner of the Company's wind-up and
property disposal at the meeting.

Contact: G. A. Marx
    Liquidator
    Suite 601, 3 Waverley Street
    Bondi Junction, New South Wales 2022
    Australia


NYLEX LIMITED: Announces Major Business Restructuring
-----------------------------------------------------
Nylex Limited issued a profit warning on May 17, 2006, and
announced a major restructuring of its businesses, The
Australian reports.

According to the Australian Associated Press, Nylex stated that
the underlying earnings of continuing businesses for the current
financial year are now expected to be between AU$1.5 million and
AU$2 million, which falls short of its previous guidance.

The Company also disclosed that it expects to incur or make
provisions for restructuring costs, and assets carrying value
adjustments of AU$18 million.

The AAP notes that the Company blames its earnings shortfall on
the rising cost of raw materials, mostly linked to high oil
prices.  Automotive companies were also producing fewer cars
than expected.  In addition, Nylex had experienced machine
reliability issues at its materials handling business at Seaford
in Victoria, and sales of consumer products, water tanks and
water conservation products had been lower than planned.

As reported by the Troubled Company Reporter - Asia Pacific on
March 16, 2006, Nylex had warned that its annual earnings will
be halved after it posted a half-year net profit of AU$46.9
million, compared to a loss of AU$30.08 million in the same
period in 2004.  The half-year result had included the AU$48.3
million profit on the sale of the Company's AH Plant Hire
division.

Nylex Executive Chairman Peter George said that the performance
of Nylex's businesses in the current half-year had been
disappointing and the board had therefore approved a big cost-
reduction program, which is expected to cost around AU$10
million.  The Company has started talks with potential
financiers and existing and potential senior debt providers.

Moreover, the Company will reorganize its structure of eight
separate business units into three divisions, The Australian
adds.

Nylex said it would not provide any guidance for the forthcoming
financial year.  However, Nylex expressed confidence that the
restructured company would perform significantly better, since
the restructure would better align its operations with the
requirements of customers and reduce duplication.

                          About Nylex

Headquartered in Melbourne, Australia, Nylex Limited --
http://www.nylexlimited.com.au/-- is an Australian marketer,  
manufacturer and service provider of plant hire services,
building products, automotive products, plastic products, and
engineered products.  Nylex owed its bank lenders more than
AU$400 million at the peak and has basically been in a
controlled liquidation of the mish-mash of assets built up in
the 1990s.

Nylex has been in restructuring for 11 years, the past six saw
the Company management balance between keeping creditors happy
and placating shareholders, who over time lost 90% of  
their investments.
  
The Company has sold many businesses to reduce its debt, moved
some production offshore and now has a strong balance sheet and
is looking for acquisitions.  It has also launched a major push
to build on its strong position in garden water control to
become a leader in overall household water conservation.  
  
The Troubled Company Reporter - Asia Pacific reported on Nov.
29, 2005, that Nylex's future earnings are uncertain after
shareholders sold the Company's profitable asset, Lucrative AH
Plant Hire, to a rival controlled by Nylex shareholder and Seven
Network Chairman Kerry Stokes.

Shareholders agreed to sell AH Plant Hire to the Stokes-
controlled National Hire group for AU$111 million, which just
scrapped in at the bottom of the valuation range calculated by
independent expert Ernst & Young Valuation Services.  Nylex
directors decided to sell AH Plant Hire after failing to
complete the sale of the group's automotive business, which had
been expected to bring in AU$40 million.

Nylex is operating under the close supervision of a group of  
banks, which are keen to end the five-year asset sell-off.


NZBT LIMITED: Court to Hear Liquidation Bid on July 13
------------------------------------------------------
An application to put NZBT Limited into liquidation will be
heard before the High Court of Auckland on July 13, 2006, at
10:00 a.m.   

The High Court received the application from the Body Corporate
on April 4, 2006.

Contact: S.N. McKenzie
         Glaistor Ennor, Solicitors
         1/F., Norfolk House
         18 High Street, Auckland
         New Zealand


POWERSERVE MANAGEMENT: To Distribute Dividend on May 26
-------------------------------------------------------
Powerserve Management Pty Ltd will distribute its first and
final dividend on May 26, 2006.

Creditors who were not able to submit their proofs of claim are
excluded from sharing in the dividend distribution.

Contact: Robyn Erskine
    Peter Goodin
    Joint and Several Liquidators
    Brooke Bird & Co. Insolvency Practitioners
         471 Riversdale Road, Hawthorn
         Victoria 3123, Australia
         Telephone: (03) 9882 6666
         Fax: (03) 9882 8855


QANTAS AIRWAYS: To Cut 1,000 Jobs by Year-end to Pay Fuel Costs
---------------------------------------------------------------
Qantas Airways Ltd. will slash 1,000 management, support and
administration jobs by the end of 2006 to counter a looming AU$1
billion surge in its fuel bill, The Age reports.

Bloomberg News notes that Qantas' annual fuel bill has increased
from AU$2 billion in 2004-2005, to AU$3.8 billion, Bloomberg
News notes.

As reported in the Troubled Company Reporter - Asia Pacific on
May 5, 2006, Qantas Airways had indicated that it would have to
revise its five-year program to slash AU$3 billion in annual
costs to buffer itself against the recent surge in fuel prices.  
The airline's so-called five-year Sustainable Future Program,
which was kicked off during the height of the SARS crisis in
mid-2003, aims to save AU$1.58 billion in annual costs by
June 30, 2006.

Qantas Chief Executive Officer had said that the carrier cannot
make up for the fuel cost increase it is facing by raising fuel
surcharges.  "Fuel surcharges can only recover part of this
increase, otherwise we risk both depressing the market and
losing market share," The Age quotes Mr. Dixon as telling his
staff.

Mr. Dixon said that Qantas will continue to explore every avenue
to reduce costs further to ensure its profitability and growth.  
The airline seeking to cut costs by eliminating jobs, reducing
agent commissions, switching to more fuel-efficient planes and
using its budget offshoot Jetstar on low-profit holiday routes.

                Workers' Rage Over Job Cuts Looms

According to The Age, Australian Services Union assistant
national secretary Linda White said that the Qantas workforce
would not take the job cuts lying down.  She said that it was
unlikely the cuts could be achieved through voluntary
redundancies.

Ms. White has expressed concern that the new round of cuts was a
ploy by the Company to move jobs overseas.

However, Mr. Gregg had already said earlier that cuts "should
not be seen as an attack on workers.  This an attack on a cost
base that makes the business inefficient."  He said that
Qantas has to make it efficient if it were to survive.

The May 5 TCR-AP reported stated that Qantas is already pushing
in enterprise bargaining talks to slash the overtime provisions
of 2,500 maintenance workers, a move unions say will result in a
30% cut in take home pay.

                      About Qantas Airways

Headquartered in Sydney, Australia, Qantas Airways --
http://www.qantas.com.au/-- is the world's second oldest  
airline and is also recognized as one of the leading long-
distance airlines, having pioneered services from Australia to
North America and Europe.  The Qantas Group employs
approximately 38,000 staff across a network that spans 145
destinations in Australia, Asia-Pacific, Americas, Europe and
Africa.  The Qantas Group also operates a diverse portfolio of
airline-related businesses, including Engineering Technical
Operations and Maintenance Services, Airports and Catering,
Qantas Freight, Qantas Holidays, Qantas Defence Services and
Qantas Consulting.

Qantas started having problems in 2003 with the ill effects of
the Iraq War and the SARS outbreak, on top of the already
difficult period following the events of the 9/11 terrorist
attacks, the Afghanistan war and the terror threats, which lead
to a downturn in bookings to other Asian countries, and
affecting most of European routes as well.  The adverse effects
also affected other areas of the business including Qantas
Flight Catering, Qantas Holidays and Australian Airlines.  
Qantas started reviewing, and widened, the range of initiatives
it had put in place following the triggering events.  These
initiatives included the reduction of staffing numbers through
the use of accumulated leave to the equivalent of 2,500 full-
time employees by June 2003 and by the equivalent of 1,000
employees between July and September 2003; a restructuring
program involving 1,000 redundancies, 400 permanent positions
eliminated through attrition and 300 permanent positions
converted from full time to part time; a freeze on capital and
discretionary expenditure; expansion of the leave without pay
program; increased use of part time workers; significant
restructuring of work practices and activities; and reduction of
capital expenditure, including retirement of some aircraft and
deferral of delivery of new aircraft.  In December 2003, Qantas
unveiled its new low cost-carrier airline, Jetstar Asia, which
later proved to be a headache after failing to gain access to
crucial markets such as Indonesia and China.  In June 2005,
Qantas admitted it is still struggling to recover its investment
in Jetstar, despite having managed to lease out four of its
unused Airbus 320s.  Qantas went into another round of job cuts
in late June 2005, a move that was punctuated with more than 600
jobs slashed in the first half of its financial year.  The
latest round of job cuts announced in February 2006 came amidst
uncertainty of outsourcing the airline's heavy maintenance works
overseas.


ROMPINE PTY: Enters Voluntary Liquidation
-----------------------------------------
At a meeting on March 31, 2006, the members of Rompine Pty
Limited decided to place the Company into liquidation.

Nick Combis was subsequently appointed as liquidator.

Contact: Nick Combis
         Liquidator
    Vincents Chartered Accountants
    Level 27, 239 George Street
    Brisbane, Australia
    Telephone: (07) 3854 4555
    Fax: (07) 3236 2452
    e-mail: ncombis@vincents.com.au


SILVERWATTLE PTY: Decides to Halt Operations
--------------------------------------------
At a general meeting of Silverwattle Pty Ltd held on April 5,
2006, members agreed to voluntarily wind up the Company's
operations.

They named Frank Lo Pilato to act as liquidator.

Contact: Frank Lo Pilato
         Liquidator
    RSM Bird Cameron Partners Chartered Accountants
    Level 1, 103-105 Northbourne Avenue
    Canberra 2601, Australia
    Telephone: (02) 6247 5988
    Fax: (02) 6262 8633


STOCKSDALE INVESTMENTS: Liquidators to Explain Wind-up Process
--------------------------------------------------------------
Members and creditors of Stocksdale Investments Pty Limited will
hold a final meeting today, May 19, 2006, for them to receive
Liquidator Richard Albarran's account on the manner in which the
Company was wound up and its property was disposed of.

Contact: Richard Albarran
         Liquidator
    Level 29, 31 Market Street
    Sydney, New South Wales 2000
    Australia


VERTEX PTY: Creditors Agree on Wind-up
--------------------------------------
The creditors of Vertex (New South Wales) Pty Limited decided
that it is appropriate and necessary to wind up the Company's
operations at a meeting on February 17, 2006.

David Anthony Hurst and Andrew Hugh Jenner Wily were appointed
as liquidators.

Contact: David A. Hurst
         Andrew H. J. Wily
         Liquidators
    Armstrong Wily Chartered Accountants
    Level 5, 75 Castlereagh Street
    Sydney, New South Wales 2000
    Australia


VENTURE 2001: Liquidator Receives Proofs of Debt Until June 10
--------------------------------------------------------------
Creditors of Venture 2001 Ltd must submit their proofs of claims
to Liquidator Thomas Alan Graham, on or before June 10, 2006.

Contact: T.A. Graham
         PO Box 8304
         Cherrywood, Tauranga
         New Zealand
         Telephone: (07) 576 9040
         Fax: (07) 576 9071


================================
C H I N A   &   H O N G  K O N G
================================

AXM PHARMA: Files Amended Financials for the Fiscal Year of 2005
----------------------------------------------------------------
AXM Pharma, Inc., filed its amended financial statements on Form
10-KSB for the year ended Dec. 31, 2005, with the Securities and
Exchange Commission on May 1, 2006.

The Company reported a $11,088,281 net loss on $2,021,728 of
revenues for the year ended Dec. 31, 2005.

At Dec. 31, 2005, the Company's balance sheet showed $13,729,011
in total assets, $9,639,604 in total liabilities, and $4,089,407
in stockholders' equity.

The Company's Dec. 31 balance sheet also showed strained
liquidity with $4,060,321 in total current assets available to
pay $9,639,604 in total current liabilities coming due within
the next 12 months.

                      Loss of Sunkist License

In 2004, the Company entered into a Trademark Licensing
Agreement with Sunkist Growers Inc. that granted the Company
exclusive rights to manufacture, market and sell certain vitamin
and vitamin supplements under the Sunkist brand name and
trademark until December 2005 in Hong Kong, Taiwan and Macau and
until December 2008 in China.

Sales under these licenses accounted for approximately 60% of
the Company's total sales in 2005.  The agreement also granted a
right of first refusal for any territory in the rest of Asia
where Sunkist does not currently license the product categories
covered by the agreement with the Company.

Under the terms of the agreement, the Company is required to
achieve certain sales targets each year, for each category of
product licensed under the agreement.

In order to support the Sunkist license agreement, the Company
entered into distribution agreements with Zuellig Pharma Ltd.
and Zuellig & Woo (Hong Kong) Co., Ltd., in March 2005 for
distribution of the Sunkist brand products in China, Hong Kong,
Macau and Taiwan.

In addition, the Company entered into agreements with Kerryflex
Supply Chain Solutions Limited and executed a Memorandum of
Understanding with DKSH Taiwan Limited, to distribute the
Sunkist brand products in Hong Kong and Taiwan.  

In October 2005, the Company terminated the distribution
agreement with Zuellig Pharma, Inc., and Zuellig & Woo (Hong
Kong) Co., Ltd.

The Company failed to achieve certain minimum sales targets
during 2004 and 2005 for each category of product and failed to
pay the minimum royalties stipulated under the license
agreement.  

As a result, Sunkist terminated its agreement with the company
for sale of products in China on Feb. 20, 2006.  The separate
license agreement with Sunkist relating to rights to sell
certain products in Hong Kong, Macau and Taiwan expired on its
stated termination date in December 2005 and has not been
renewed.

Sunkist has notified the Company that it is in default with
respect to minimum royalties and has demanded payment of
$368,000.

                         SEC Investigation

The SEC is currently conducting an investigation of the
Company's restatement of its June 30, 2005, financial
statements.  Under prior management, the Company recorded
approximately $2.8 million of revenues related to the sale of
Sunkist-branded products through its distributor, Zuellig.  

These revenues constituted substantially all of the Company's
revenues for the quarter ended June 30, 2005.  

In October 2005, under current management, the Company
determined that those sales were in substance consignment
arrangements.  The Company could not determine if it could
collect past due accounts since collections were not due until
the distributors shipped the products; therefore, the Company
should not have recognized any revenues from those sales.  

The Company reported this matter to the SEC.  The SEC decided to
conduct an investigation to determine if the Company and others
may have violated the reporting, anti-fraud, accounting and
other provisions of the federal securities laws.

The investigation is in a relatively early stage and the Company
cannot predict its outcome.  The Company is fully cooperating
with the SEC in this investigation.

                       Going Concern Doubt

Lopez, Blevins, Bork & Associates, LLP, in Houston, Texas,
raised substantial doubt about AXM Pharma, Inc.'s ability to
continue as a going concern after auditing the Company's
consolidated financial statements for the year ended Dec. 31,
2005.  The auditor pointed to the Company's losses and need for
additional capital.

A full-text copy of the Company's 2005 Annual Report is
available for free http://ResearchArchives.com/t/s?969  

Headquartered in City of Industry, California, AXM Pharma, Inc.
(AMEX: AXJ) -- http://www.axmpharma.com/-- through its wholly  
owned subsidiary, AXM Pharma Shenyang, Inc., is a manufacturer
of proprietary and generic pharmaceutical products, which
include injectables, capsules, tablets, liquids and medicated
skin products for export and domestic Chinese sales.  AXM
Shenyang is located in the City of Shenyang, in the Province of
Liaoning, China.  AXM Shenyang has an operating history of
approximately 10 years.


BASELLAND LIMITED: Moyes and Yeung Tapped as Liquidators
--------------------------------------------------------
On May 2, 2006, Paul David Stuart Moyes and Yeung Betty Yuen
were picked to facilitate the liquidation of Baselland Limited's
assets.

Contact: Paul David Stuart Moyes
         Yeung Betty Yuen
         Joint and Several Liquidators        
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong hereby


BEN KING: Names Joint Liquidators
---------------------------------
Chan Siu Cheung and Hadaway Martina Nicholas were appointed
joint liquidators of Ben King Limited by a special resolution
passed by members on May 2, 2006.

Contact: Chan Siu Cheung
         Liquidator         
         7A, Royal Garden,
         27 Repulse Bay Road

         Hadaway Martin Nicholas
         Liquidator
         House C, 11 Hang Hau Wing Lung Road
         DD238 Lot 653, Sai Kung
         New Territories
         Hong Kong


BETAKE MARKETING: Creditors' Proofs of Claim Due on June 12
-----------------------------------------------------------
The creditors of Betake Marketing Limited are required to submit
thei proofs of debt by June 12, 2006.

Failure to comply with the requirement will exclude creditors
from any distribution the Company will make.

Contact: Lee Kwok On, Alexander
         Liquidator
         Rooms 1901-2
         Park-In Commercial Centre
         56 Dundas Street
         Kowloon


FAIRVIEW PARK: To Hold Final General Meeting on June 12
-------------------------------------------------------
The final general meeting of the members of Fairview Park
International Christian Church Limited will be held on
June 12, 2006, at Room 1303, 13/F., Kowloon Building, 555 Nathan
Road, in Kowloon, Hong Kong.

At the meeting, members will get an account of the manner of the
Company's wind-up and property disposal from Liquidator Alfred
Yau Hong Ho.


FIC GLOBAL: Posts TWD655-Million First Quarter Losses
-----------------------------------------------------
Electronics manufacturer FIC Global Incorporated continues to
record net losses despite undergoing corporate restructuring in
2004, Bloomberg relates.

The Company's financial statement for the first quarter ended
March 31, 2006 showed TWD655-million net loss as compared to a
net loss of TWD778 million in the same quarter of the previous
fiscal year.

FIC Global's financial report reflects these figures:
   
                          1Q/FY2006             1Q/FY2005
Revenue                 TWD$9,913,000         TWD$8,176,000
Pretax Profit       (TWD$655,835,000)     (TWD$776,970,000)
Net Profit          (TWD$655,776,000)     (TWD$778,735,000)
Earnings Per Share
   Basic                      (1.30)               (1.56)
   Diluted                     N/A                  N/A

                          *    *    *

FIC Global Inc. -- www.fic.com.tw -- IS engaged in the
manufacture and sale of personal computer, motherboard, notebook
and computer circuit.  It also provides investment services.  
Products include mobile and bluetooth solutions, graphic cards
and other computer accessories.  Operations are carried out in
Taiwan, Europe and Asia.


FOCUS CENTURY: Creditors OK Liquidator's Appointment
----------------------------------------------------
Creditors of Focus Century Limited convened on April 24, 2006,
and resolved to wind up the Company's operations.

Tang Lai Sheung was appointed as liquidator of the Company at a
creditors' meeting held later that day.

Contact: Tang Lai Sheung
         Liquidator
         Room 1206, 12/F
         New Victory House
         93 Wing Lok Street
         Central, Hong Kong


FORMES (CAUSEWAY BAY): Placed Into Liquidation
----------------------------------------------
Members of Formes (Causeway Bay) Limited, on April 28, 2006,
resolved by a special resolution to have the Company liquidated.

The members also decided to appoint Chu King Hei as liquidator.

Contact: Chu King Hei, Victor
         Rooms 905-909
         Yu To Sang Building,
         37 Queen's Road Central
         Hong Kong


FORMES (HONG KONG): Appoints Chu King Hei as Liquidator
-------------------------------------------------------
Members of Formes (Hong Kong) Limited, on April 28, 2006, passed
a special resolution to appoint Chu King Hei as liquidator for
Formes (Hong Kong) Limited.

Contact: Chu King Hei, Victor
         Rooms 905-909
         Yu To Sang Building
         37 Queen's Road
         Central, Hong Kong


HONGKONG TELECOM: Court Names Official Liquidator
-------------------------------------------------
The High Court of Hong Kong appointed Paul David Stuart Moyes
and Yeung Betty Yuen as joint and several liquidators for
Hongkong Telecom Fund Management Limited on May 2, 2006.

Contact: Paul David Stuart Moyes
         Yeung Betty Yuen
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


JOY CAPITAL: Creditors' Proofs of Claim Due June 20
---------------------------------------------------
The creditors of Joy Capital Trading Limited are required to
submit their proofs of claim by June 20, 2006, or risk being
excluded from sharing in the Company's assets distribution.

Contact: Chan Sek Kwan Rays
         Liquidator
         Unit G, 12/F.
         Seabright Plaza
         9-23 Shell Street
         Hong Kong


MAGAZINE HEIGHTS: Appoints Liquidators to Wind Up Operations
------------------------------------------------------------
Paul David Stuart Moyes and Yeung Betty Yuen were appointed as
joint and several liquidators of Magazine Heights Limited on May
2, 2006.

Contact: Paul David Stuart Moyes
         Yeung Betty Yuen         
         Joint Liquidators
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


OLD MERCURY: Court Appoints Joint Liquidators
---------------------------------------------
The High Court of Hong Kong, on May 2, 2006, appointed Paul
David Stuart Moyes and Yeung Betty Yuen as liquidators to act
jointly and severally for Old Mercury House Limited.

Contact: Paul David Stuart Moyes
         Yeung Betty Yuen
         Joint and Several Liquidators
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


PINEROCK LIMITED: Enters Voluntary Liquidation
----------------------------------------------
On May 2, 2006, members of Pinerock Limited resolved that the
Company be wound up voluntarily.

Moyes Paul David Stuart and Yuen Betty Yuen were subsequently
appointed to liquidate and distribute the Company's assets.

Contact: Moyes Paul David Stuart
         Yuen Betty
         Joint Liquidators
         Level 28, Three Pacific Place
         1 Queen's Road East, Hong Kong


QING MIAO: Given Until June 16 to Prove Debts
---------------------------------------------
Liquidators of Qing Miao Poetry Association Limited will require
the Company's creditors to submit their proofs of claim on or
before June 16, 2006.

Failure to establish proofs of debt on the due date will exclude
creditors from sharing in any distribution the Company will
make.

Contact: Lam Chi Wai
         Liquidator
         Units C & D, 9/F.
         Neich Tower 128 Gloucester Road
         Wanchai, Hong Kong


REGAL SKY: Creditors' Proofs of Claim Due Next Month
----------------------------------------------------
Liquidator Chan Chun Chung is asking creditors of Regal Sky
Knitters Limited to submit their proofs of claim on or before
June 16, 2006.

Failure to comply with the requirement will exclude any creditor
from the benefit of any distribution of the Company will make.

Contact: Chan Chun Chung
         Liquidator
         Units C & D, 9/F., Neich Tower
         128 Gloucester Road
         Wanchai, Hong Kong


SHOWER ASSOCIATION: Creditors Must Prove Debt by June 16
--------------------------------------------------------
Creditors of Shower Association Limited are requested to submit
their proofs of debt on or before June 16, 2006.

The Company's creditors who are unable to prove their claims are
excluded from the benefit of the dividend distribution.

Contact: Ho Kwok Cheong
         Liquidator
         Rooms 1609-12, Nan Fung Tower
         173 Des Voeux Road Central
         Hong Kong


SOUTH REGENT: Chan Chi Shing Ceases to Act as Liquidator
--------------------------------------------------------
Chan Chi Shing ceased to act as liquidator of South Regent
Limited on April 30, 2006.

Contact: Chan Chi Shing
         20th Floor, Greatmany Centre
         111 Queen's Road East, Hong Kong


SOUTHERN TRUST: Liquidator Presents Wind-up Report
--------------------------------------------------
A final meeting of The Southern Trust & Finance Company Limited
will be conducted on June 16, 2006, at 3:00 o'clock in the
afternoon.

At the meeting, Liquidator George Law Kwan Wah will present his
final accounts regarding the Company's wind-up operations.

Contact: George Law Kwan Wah
         Liquidator
         Room 903, 9th Floor
         General Commercial Building
         156-164 Des Voeux Road Central
         Hong Kong


SUNSWAY LIMITED: Creditors to Prove Debts by June 16
----------------------------------------------------
Sunsway Limited will receive proofs of debt from its creditors
until June 16, 2006.

Failure of creditors to establish proofs of debt on the due date
will exclude them from sharing in any distribution the
Company will make.

Contact: Tse Wai Hing
         Liquidator
         Suites 1403-4, 14/F
         Nan Fung Tower
         173 Des Voeux Road
         Central, Hong Kong


TRENDFORD LIMITED: Members Appoint Liquidators
----------------------------------------------
Yeung Chi Wai was appointed as liquidator of Trendford Limited
by virtue of a special resolution passed by the Company's
members on May 6, 2006.

Contact: Yeung Chi Wai
         Liquidator
         Rooms 301-2, Lucky Building
         39 Wellington Street
         Central, Hong Kong


YING YUE: Creditors to Prove Debts on May 27
--------------------------------------------
Ying Yue Garment Factory Limited will be receiving creditors'
proofs of debt on or before May 27, 2006.

Failure to comply with the requirement will exclude any creditor
from the benefit of any distribution the Company will make.

Contact: Wong Ka Sek
         Liquidator
         2/F, Double Building
         22 Stanley Street
         Central, Hong Kong


ZABOL LIMITED: Names Joint and Several Liquidators
--------------------------------------------------
Joint and Several Liquidators Paul David Stuart Moyes and Yeung
Betty Yuen were appointed for Zabol Limited on May 2, 2006.

Contact: Paul David Stuart Moyes
         Yeung Betty Yuen
         Joint and Several Liquidators
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


* Fitch Says IPPs' Rising Leverage to Persist as Margins Decline
----------------------------------------------------------------
http://www.fitchratings.com/corporate/events/press_releases_deta
il.cfm?pr_id=247591
  
Fitch Ratings on May 17, 2006, said that the trend of declining
margins and rising leverage of Chinese Independent Power
Producers is likely to continue in light of sustainable high
fuel prices due to rising competitive demand and potential
supply disruptions.

The financial performance of the sector would be adversely
affected in the absence of commensurate tariff adjustments,
particularly as China's increasingly stringent environmental
laws on rising pollution could cause operating issues and
further increase operating and capital expenditure.

"The IPPs would need to re-examine their capital structure and
possibly add new equity as their financial profiles weaken owing
to the rapid increase in leverage to fund organic growth and
acquisitions," said Shang Ma, associate director in Fitch's
Asia-Pacific Energy and Utilities team, in a special report
titled "Chinese Independent Power Producers - Rising Leverage".

Fitch makes that observation in a study of the five Chinese IPPs
listed in Hong Kong, namely:

     * China Power International Development Limited;
     * China Resources Power Holdings Company Limited;
     * Datang International Power Generation Company Ltd;
     * Huadian Power International Corporation Limited; and
     * Huaneng Power International, Inc. -- rated Long-term
       Issuer Default Rating 'BBB+'/Stable.

Fitch notes that the IPP sector in China is highly fragmented
with the above five IPPs and their parents owning and managing
only about 37% of the total power capacity.

Although restructuring started in 1997, Fitch notes that China's
power industry, and in particular the IPP sector, is still
highly regulated with the government involved in key issues such
as tariff setting, capacity management and resource allocation.
Nevertheless, advances have been made, such as the removal of
the cap on the contract thermal coal price for power generation
and the nationwide implementation of a "fuel-tariff pass-through
mechanism" that provides for a regular review of the on-grid
tariff in relation to fuel costs.

"The government seems committed to progressive reform that will
lead to a more transparent and market-oriented industry
structure, but there are some reservations regarding the pace
and consistency of execution," commented Mr. Ma. Fitch generally
views the transparency and flexibility of the tariff mechanism
as a major foundation of a robust power sector.

Fitch notes that while insufficient capacity amid strong power
demand growth has resulted in power shortages and blackouts in
the past, the aggressive capacity construction in recent years
may lead to excess supply, especially if actual demand growth
were to falter in line with the government's aim of lowering the
amount of power consumed per unit of GDP by 20% in 2010. The
underdeveloped interconnection between the various regional
power grids in China further inhibits the supply and demand
balance, and substantial financial resources and time are
required for its development.

Against the above concerns, Fitch says that a fundamental
strength of the sector is the strong domestic electricity
demand, which is well-supported by the continuation of China's
robust economic expansion.

"Strong growth in manufacturing activities and rising affluence
would lead to higher power consumption in China, which has one
of the lowest levels of per capita installed capacity and
electricity consumption in the world," added Mr. Ma.

Fitch notes that China has sufficient domestic coal resources,
the third-largest in the world, to fuel its predominantly
thermal generation.  Nevertheless, in view of the pollution of
coal generation and increasing environmental awareness, the
government is actively promoting renewable energy sources to
diversify the country's power generation mix and reduce its
reliance on coal. New laws and measures are reportedly being
formulated to pave the way for a more balanced generation mix.


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

BARODA MERCANTILE: RBI Cancels License Due to Insolvency
--------------------------------------------------------
The Reserve Bank of India, on May 16, 2006, ordered the
cancellation of Baroda Mercantile Co-operative 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 to wind up Baroda Mercantile
and appoint a liquidator.

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

According to RBI, Baroda Mercantile's financial statements as of
June 30, 2002, revealed that the bank's financial position was
unsatisfactory.  The Bank's financial accounts as of June 30,
2004, revealed further deterioration in its financial condition.  
Its deposits were eroded as realizable value of paid-up capital
and reserve was in the negative.  

RBI had issued a notice to the bank on January 13, 2005, asking
it to show cause as to why the license granted to it to conduct
banking business should not be cancelled.  As Baroda Mercantile
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 license and commencement of
liquidation proceedings, the process of paying the Baroda
Mercantile depositors was set in motion subject to the terms and
conditions of the Deposit Insurance Scheme.

Contact: Shri S.Rajgopal
         General Manager - Urban Banks Department
         Reserve Bank of India
         La Gajjar Chambers, Ashram Road
         P. B. No. 1, Ahmedabad 380 009,
         India
         Telephone Number: (079) 2658-5184
         Fax Number: (079) 26584853
         e-mail address: ubdahmedabad@rbi.org.in  


MONTARI INDUSTRIES: ICRA Reaffirms Default Rating
-------------------------------------------------
ICRA Limited has re-affirmed the Partly-Convertible Debenture
rating of Montari Industries Limited at LD, indicating default.

Montari Industries recorded heavy losses since 1994-95.  
According to its last balance sheet dated September 30, 1999, it
was defaulting on principal and interest payments on all its
term loans.

The Board for Industrial and Financial Reconstruction has
recommended Montari Industries' winding up in February 2003.  
However, the actual status of the affairs of the Company cannot
be determined.  Thus, in the absence of any additional
information on the Company's operations, ICRA retains default
rating for Montari Industries.

                         About ICRA

ICRA Limited was incorporated in 1991 as an independent and
professional company.  ICRA is leading provider of investment
information and credit rating services in India.  ICRA's major
shareholders include Moody's Investors Service and leading
Indian financial institutions and banks.  With the growth and
globalization of the Indian capital markets leading to an
exponential surge in demand for professional credit risk
analysis, ICRA has been proactive in widening its service
offerings, executing assignments including credit ratings,
equity tradings, specialized performance gradings and mandated
studies spanning diverse industrial sectors.  


NATIONAL TEXTILE: Revival Scheme Gets Green Light from BIFR
-----------------------------------------------------------
The Board for Industrial and Financial Reconstruction has
approved the rescue package for National Textile Corporation,
Bharat Textile News reports.  The scheme will cover all 119
mills owned by National Textile.

The Troubled Company Reporter - Asia Pacific recounts that out
of the 119 mills, 65 unviable ones have been closed and two
located in Pondicherry have been transferred to the State
Government of Pondicherry.  Thus, National Textile presently has
52 potentially viable mills.

While reviewing the implementation of earlier approved Schemes
in respect of the remaining 52 mills, the Government decided to
modernize 22 mills at an estimated cost of INR530 crores.  

The modernization exercise is undertaken by National Textile
itself through sale of surplus assets, the TCR-AP reported.  
Some 29 mills are available for revival through joint venture
with private partnership.

The Government of India told Bharat Textile that National
Textile has already started modernization of mills by placing
orders for machinery.

               About National Textile Corporation

Headquartered in New Delhi, India, National Textile Corporation
Ltd -- http://texmin.nic.in/-- is the single largest textile  
central public sector enterprise under Ministry of Textiles
managing 52 textile mills through its nine subsidiary companies
spread all over India.  The strength of the group is around
22000 employees.  The annual turnover of the Company in the year
2004-05 was approximately INR638 crores.  In 2002, the Board for
Industrial and Financial Reconstruction approved the revival of
53 viable mills and closure of 66 unviable mills.  National
Textile is in the process of a major restructuring.  A new
corporate plan is under formulation for repositioning of the
organization by merging all its nine subsidiaries into one
holding company.


PAAM PHARMACEUTICALS: Confirms LD and MD Rating of NCDs
-------------------------------------------------------
ICRA Limited re-affirms the LD and MD rating assigned to the Non
Convertible Debenture and the Fixed Deposit programmes of Paam
Pharmaceuticals (Delhi) Limited, indicating default.

Paam Pharmaceuticals recorded heavy losses in 1997-98 and
defaulted on all its interest and principal obligations since
1998-99 including INR294 million NCD rated by ICRA.

Subsequently, the Board for Industrial and Financial
Reconstruction gave the Company a notice of winding up in
February 2004.  However, the actual status of the affairs of
Paam Pharmaceuticals cannot be determined.  Thus, in the absence
of any additional information on the Company's operations, ICRA
retains default rating for Paam Pharmaceuticals.

                         About ICRA

ICRA Limited was incorporated in 1991 as an independent and
professional company.  ICRA is leading provider of investment
information and credit rating services in India.  ICRA's major
shareholders include Moody's Investors Service and leading
Indian financial institutions and banks.  With the growth and
globalization of the Indian capital markets leading to an
exponential surge in demand for professional credit risk
analysis, ICRA has been proactive in widening its service
offerings, executing assignments including credit ratings,
equity tradings, specialized performance gradings and mandated
studies spanning diverse industrial sectors.  


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

PERTAMINA: Migas May Approve Cepu Project by June
-------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
April 10, 2006, that Exxon Mobil Corporation and PT Pertamina
have signed a Joint Operating Agreement in March 2006, for the
development of the Cepu oil block located in East and Central
Java.  

The TCR-AP report said that PT Pertamina and Exxon Mobil have
obtained 25 proposals from unnamed investors to finance the Cepu
development project.

In an update, XFN-Asia relates that oil-and-gas upstream
regulator BP Migas is expected to approve the development of the
giant Cepu oil field, citing PT Pertamina EP general manager
Estu Bagyo.  

According to Mr. Bagyo, BP Migas said it would report the
outcome of its evaluation by June 2006.

The TCR-AP recounts that under the Cepu development plan,
contractors will drill 40 wells, comprising 36 development wells
and four exploration wells, at the giant oil block.  Pertamina
is targeting to begin production by end 2008 or early 2009, with
peak output seen at 160,000 barrels per day or nearly 16% of
Indonesia's current nationwide output.

Cepu's five oil fields hold estimated reserves of 600 million
barrels of oil and 1.7 trillion cubic feet of gas.

                       About PT Pertamina

PT Pertamina (Persero) -- http://www.pertamina.com/-- is a  
wholly state-owned enterprise.  The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation No.
31/2003 has changed its legal status from a special state-owned
enterprise into a Limited Liability Company.  In carrying out
its activities, PT Pertamina implements an integrated system
from upstream to downstream.  Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day.  However, these refineries only cover about
three-quarters of domestic oil demand, with the rest being met
by imports.

In 2003, PT Pertamina director of finance Alfred Rohimone
disclosed that the state-owned oil company's financial condition
was in critical condition because its expenditure was surpassing
its income due to its obligation to meet domestic demand with
fuel oil bought at higher prices on he international market.  
Mr. Rohimone stated that with a liquidity position below IDR2
trillion, the Company was already bleeding.

Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.

In August 2005, a debt owed by Pertamina to United States firm
Karaha Bodas Company has risen from IDR2.54 trillion to IDR2.99
trillion.  The debt had increased when, in 2003, a U.S. court
ordered the Company to pay compensation to KBC, relating to an
international arbitration decision, when the Indonesian
Government halted a geothermal project in Karaha Bodas, East
Java.  Since that time, the debt has steadily risen due to the
company's failure to pay the compensation immediately.


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

HUSER LIMITED: President Arrested for Selling Defective Units
-------------------------------------------------------------
Police arrested Huser Limited President Susmu Ojima on May 17,
2006, for selling condominiums despite knowing that the units
were built with fabricated structural data, Crisscross News
reports.

The Japan Times says Mr. Ojima was detained along with other
individuals believed to be involved in a structural data
fabrication scandal, when former architect Hidetsugu Aneha
provided falsified earthquake-resistance data for buildings
under construction.

The Troubled Company Reporter - Asia Pacific stated in a
February 20, 2006 report that Mr. Aneha had falsified earthquake
resistance data for several buildings.  The Times recounts that
property developer Huser built 26 condominium complexes around
Japan, which were designed using the structural data provided by
the now-unlicensed architect.

According to the reports, Mr. Ojima has denied the charges
against him.

Police are expected to file fraud charges against Mr. Ojima.  
Mainichi Daily News relates that, according to investigators,
Mr. Ojima had been informed by a building inspection agency on
October 27, 2005, that some Huser condominiums may have been
built with falsified structural data.  Nonetheless, he sold a
condominium unit at the Kanagawa Prefecture to an individual,
who was asked to remit JPY50 million to a Huser bank account on
October 28, 2005, but was not told that the condo unit was built
with substandard earthquake-resistance data.  

According to TCR-AP, the Tokyo District Court had, on Feb. 16,
2006, initiated bankruptcy proceedings against Huser Limited,
after around 300 owners of nine Huser condominium building units
with substandard earthquake resistance asked the Court to
protect the Company's assets, hoping to get distributions from
such assets.  The court declared that Huser's liabilities exceed
its assets, and named lawyer Hideo Seto as administrator for the
bankruptcy procedures.

Contact: Hideo Seto
         Administrator for Huser Limited
         Telephone: 81 3 5501 4002


* Corporate Bankruptcy Cases in April Decrease by 14.9%
-------------------------------------------------------
Japanese corporate bankruptcies fell 14.9% in April 2006 from a
year earlier to 1,087 cases, according to credit research firm
Tokyo Shoko Research Ltd.

Bloomberg News notes that Tokyo Shoko indicated a 13.4% decrease
in the April bankruptcy cases compared to last month's 1,255.

As of April 2006, the companies undergoing bankruptcies have a
collective debt of JPY427,000,000,000.  This debt amount is
7.61% less than last year's.  In March 2006, total debt under
the bankruptcy cases amounted JPY513,000,000,000.


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

NOVELIS INC: Lenders Extend Financial Report Filing to Sept. 29
---------------------------------------------------------------
As requested, Novelis Inc.'s lenders have agreed to waive the
Company's non-compliance with the provision of its Jan. 7, 2005,
Credit Agreement that requires it to furnish timely consolidated
financial statements in the 2005 Annual Report on Form 10-K and
the Form 10-Qs with the United States Securities and Exchange
Commission for the first, second and third quarters of 2006.  

The waiver extends until Sept. 29, 2006, which is the deadline
for filing the Annual Report for 2005.  The quarterly filings
for the first, second and third quarters of 2006 must be
completed by Oct. 31, Nov. 30, and Dec. 29, 2006, respectively.  
The waiver also extends until June 15, 2006, the deadline for
filing the third quarter of 2005, and the re-stated first and
second quarters of 2005.

On May 5, 2006, the Company applied to the Ontario Superior
Court of Justice for an order extending the time for holding the
annual meeting date to a date not later than Dec. 31, 2006.  
Novelis received the order on May 9, 2006, allowing it to extend
the date.  The Company is currently evaluating the time that
will be required to complete, print and mail its 2005 Annual
Report.  Once the analysis is finalized, the Company will
announce the new date for the annual meeting and record date.

A full-text copy of the Credit Agreement is available at no
charge at http://ResearchArchives.com/t/s?7fc  

Based in Atlanta, Georgia, Novelis Inc. (NYSE: NVL)(TSX: NVL) --
http://www.novelis.com/ -- provides customers with a regional  
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.

Novelis Asia has majority ownership in two separate entities:
Novelis Korea Limited and Aluminium Company of Malaysia.  
Together, they operate three manufacturing facilities in the
Asian region and manufacture a broad range of sheet and light
gauge products.

Since the 1999 inception of its joint venture with Taihan
Electric Wire Company, Novelis Korea Limited has doubled its
production and sales with its two existing rolling facilities to
become the largest rolled products company in Asia.  The company
provides its product throughout the Asia-Pacific region to
construction, industrial and beverage can markets, as well as
being a major supplier of reroll for the light gauge foil
industry.  Novelis Korea also manufactures foundry ingot for the
domestic automotive industry and operates a can scrap recycling
operation, both from its location in Ulsan, Korea.

                          *     *     *

According to the Troubled Company Reporter on April 11, 2006,
Standard & Poor's Ratings Services placed its 'BB-' long-term
corporate credit and bank loan ratings and 'B' senior unsecured
debt rating on Novelis Inc. on CreditWatch with negative
implications.


NOVELIS INC: Moody's Reviews Low-B Ratings and May Downgrade
------------------------------------------------------------
Moody's Investors Service placed the ratings of Novelis Inc.,
and its subsidiary, Novelis Corporation, under review for
possible downgrade.  In a related rating action, Moody's changed
Novelis Inc.'s speculative grade liquidity rating to SGL-3 from
SGL-2.

While Moody's expects the company to file its Form 10Q for the
third quarter 2005 and restated second and first quarter 2005
Form 10Q's within the time frame provided by the fourth waiver,
the review is prompted by the company's further push-out of the
time frame in which the Form 10K for 2005 and the Form 10Q's for
each of the first three quarters of 2006 will be provided.

Under the company's fourth waiver with the lenders in the
revolving credit and the term loan B facilities the deadline for
filing the Form 10Q's for the first three quarters of 2005 is
extended to June 15, 2006, the 2005 K is extended to Sep. 29,
2006, while the filing dates for the first, second and third
quarter 10Q's are extended to October 31, 2006, November 30,
2006, and December 29, 2006, respectively.

While Moody's notes the company disclosed that debt has been
reduced by approximately $380 million since the spin-off,
bringing total debt to approximately $2.5 billion, the lack of
timely audited financials and quarterly Form 10Q's continues to
result in uncertainty over the company's financial performance.

In the event the company is not able to meet the revised filing
dates Moody's would consider withdrawing the company's ratings
at that time.

The change in the speculative grade liquidity rating to SGL-3 is
driven principally by concerns over liquidity available from
external sources.  The continued need to obtain waivers from the
bank group to extend the date required for the delivery of
financial statements makes Novelis vulnerable to the decisions
by the banks on a relatively short time scale.

While the banks have been amenable to date in providing waivers,
there is no assurance that they would do so going forward.  
Given the shorter than twelve month time horizon provided by the
waivers, Moody's methodology for SGL ratings would consider
amounts drawn, either under the revolver or the term loans, to
represent a debt maturity over the next several months.

In addition, given the continued strengthening in aluminum
prices and Moody's expectation that working capital requirements
will increase on the significant price run-up since the
beginning of 2006, continued availability under the revolver
remains a key issue.

Downgrades:

   Issuer: Novelis Inc.

      * Speculative Grade Liquidity Rating, Downgraded to
        SGL-3 from SGL-2

On Review for Possible Downgrade:

   Issuer: Novelis Corporation

      * Senior Secured Bank Credit Facility, Placed on Review
        for Possible Downgrade, currently Ba2

   Issuer: Novelis Inc.

      * Corporate Family Rating, Placed on Review for Possible
        Downgrade, currently Ba3;

      * Senior Secured Bank Credit Facility, Placed on Review
        for Possible Downgrade, currently Ba2;

      * Senior Unsecured Regular Bond/Debenture, Placed on
        Review for Possible Downgrade, currently B1

Outlook Actions:

   Issuer: Novelis Corporation

      * Outlook, Changed To Rating Under Review From Stable

   Issuer: Novelis Inc.

      * Outlook, Changed To Rating Under Review From Stable

Headquartered in Atlanta, Georgia, Novelis Inc. is the worlds
leading aluminum rolled products producer.  Revenues were $7.8
billion in 2004.

Novelis Asia has majority ownership in two separate entities:
Novelis Korea Limited and Aluminium Company of Malaysia.  
Together, they operate three manufacturing facilities in the
Asian region and manufacture a broad range of sheet and light
gauge products.


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

AKTIF LIFESTYLE: Mahiwara & Citatah Withdraw Restructure Support
----------------------------------------------------------------
Mahawira Sdn Bhd and Citatah AMS Marble Sdn Bhd have mutually
decided not to proceed with Aktif Lifestyle Berhad's proposed
restructuring scheme, thus the Company has withdrawn its appeal
with the Securities Commission seeking reconsideration of the
restructuring plan.

The Troubled Company Reporter - Asia Pacific recounts that on
January 27, 2006, Aktif appealed the SC's decision to reject the
Company's Restructuring Scheme.

The Proposed Restructuring Scheme, which seeks to regularize the
financial condition of Aktif and its subsidiaries, provides for:

   -- the acquisition of 100% equity interest in Mahawira Sdn
      Bhd and 54% equity interest in Citatah AMS Marble Sdn Bhd;

   -- an exemption from undertaking a mandatory offer;

   -- the scheme of arrangement with the Aktif shareholders;

   -- a restricted offer for sale;

   -- a private placement;

   -- a private debt securities issuance;

   -- the transfer of listing status; and

   -- the disposal of the Company.

The SC, on December 28, 2005, rejected the Company's Proposed
Restructuring Scheme because:

   * an integral component of the Proposed Restructuring
     Scheme is the proposed acquisition of Mahiwara Sdn Bhd.
     When compared against previous proposals involving the
     acquisition of Mahawira, the SC asserted that the true
     valuation of Mahawira cannot be determined with certainty;
     and

   * of corporate governance issues relating to the previous
     proposed corporate exercises involving Mahawira and
     Mahawira's shareholders.

            About Aktif Lifestyle Corporation Berhad

Headquartered in Kuala Lumpur, Malaysia, Aktif Lifestyle
Corporation Berhad's principal activities is the operation of
specialty retail stores.  Other activity includes investment
holding.  The Company has defaulted on several loan facilities
and incurred continuous losses.  It embarked on various
corporate exercises aimed at regularizing its financial
condition.  Last year, the Company presented a proposed
restructuring scheme, which did not win the Securities
Commission's favor due to uncertainty in assets valuation and
concerns on corporate governance issues. An appeal to SC to
review its decision on the Proposed Restructuring Scheme was
already submitted.  The Proposed Restructuring Scheme, if
successfully implemented will have the new listed Group be
involved in the business of quarrying, manufacturing, trading of
granite products as well as the supply and installation of
marble and granite related products.


AMSTEEL CORPORATION: Ordered to Regularize Financial Condition
--------------------------------------------------------------
Amsteel Corporation Berhad was classified under Bursa Malaysia
Securities Berhad's Amended Practice Note 17 category.

The Company was identified as an affected listed issuer because:

   -- the auditors have expressed a modified opinion with
      emphasis on the Company's going concern in the Company's
      latest audited financial statement for the financial year
      ended June 30, 2005; and

   -- the Company's consolidated shareholders' equity as of
      June 30, 2005, represented 17.3% of the issued and paid-up
      capital of the Company.

In respect of the unaudited interim results of the Company for
the second quarter ended December 31, 2005, Amsteel's
consolidated shareholders' equity represented 16.8% of the
issued and paid-up capital of the Company.

As an affected listed issuer, Amsteel is required:

   * to submit a substantive plan to regularize its financial
     condition within eight months from May 9, 2006;

   * to announce the status of the Plan or its endeavors to
     formulate a plan on a monthly basis;

   * to announce its compliance or failure to comply, with any
     particular obligation imposed by Bursa Securities pursuant
     to the Amended PN 17; and

   * to appoint a merchant banker or a participating
     organization that may act as a principal adviser who will
     make the announcement on the details of the Plan and the
     timeline for the complete implementation of the Plan.

Failure to comply with the obligations imposed by the Amended PN
17 may lead to the suspension or delisting of Amsteel shares
from the Bursa Securities.

The Company is looking into formulating a plan to regularize its
financial condition.

                About Amsteel Corporation Berhad

Headquartered in Kuala Lumpur, Malaysia, Amsteel Corporation
Berhad is involved in the provision of plantation management,
property development, management and contractor; hotel operation
and food court.  The Company is also involved in transportation
and logistic services, department stores, nominee services,
trading securities, manufacture and sale of tools, dies, tyres,
rubber compound, light trucks and buses, financial management;
distributes steel products, develops real estate property;
cultivation of rubber and oil palm, golf and country club, sale
and distribute Suzuki motorcycles, beer brewing and mineral
water bottling.
  
The Company's accumulated losses as of December 31, 2005, have
hit MYR2.13 billion.  As of December 31, 2005, the Company's
balance sheet showed MYR1,042,142,000 in total current assets,
MYR1,754,384,000 in total current liabilities.  The Company has
a deficit of MYR712,242,000.


AMSTEEL CORPORATION: Subsidiary Undergoes Voluntary Wind-up
-----------------------------------------------------------
Infojati Trading Sdn Bhd, a dormant wholly owned subsidiary of
Amsteel Corporation Berhad, on February 16, 2006, filed with the
Companies Commission of Malaysia the relevant statutory forms
together with the Liquidator's Statement of Accounts in relation
to the members' voluntary wind-up.

In accordance with Section 272(5) of the Companies Act, 1965,
Infojati was dissolved on May 16, 2006.

According to Amsteel, the dissolution does not have any material
impact on the earnings and net assets of the group.

                About Amsteel Corporation Berhad

Headquartered in Kuala Lumpur, Malaysia, Amsteel Corporation
Berhad is involved in the provision of plantation management,
property development, management and contractor; hotel operation
and food court.  The Company is also involved in transportation
and logistic services, department stores, nominee services,
trading securities, manufacture and sale of tools, dies, tyres,
rubber compound, light trucks and buses, financial management;
distributes steel products, develops real estate property;
cultivation of rubber and oil palm, golf and country club, sale
and distribute Suzuki motorcycles, beer brewing and mineral
water bottling.
  
The Company's accumulated losses as of December 31, 2005, have
hit MYR2.13 billion.  As of December 31, 2005, the Company's
balance sheet showed MYR1,042,142,000 in total current assets,
MYR1,754,384,000 in total current liabilities.  The Company has
a deficit of MYR712,242,000.


ANTAH HOLDINGS: Further Adjourns EGM to June 14
-----------------------------------------------
Antah Holdings Berhad's Adjourned Extraodinary General Meeting
has been further adjourned to June 14, 2006, at 10:00 a.m., at
Balai Tunku Abdul Rahman, Royal Commonwealth Society, No. 4,
Jalan Birah, Off Jalan Batai, in Damansara Heights, Kuala
Lumpur.

During the meeting, members will be asked to:

   -- receive the Company's Audited Financial Statements for the
      financial year ended June 30, 2005, together with the
      Reports of the Directors and the Auditors;

   -- approve the payment of Directors' Fees for the financial
      year ended June 30, 2005.

The EGM was originally adjourned to May 19, 2006, the Troubled
Company Reporter - Asia Pacific recounts.

Notwithstanding the change in meeting date, the Company
confirmed that all previous forms of proxy, which were deposited
at the Registered Office for the EGM held on April 22, 2006,
would still be entitled to be present and to vote at the
Adjourned EGM on June 14.

                  About Antah Holdings Berhad

Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia,
Antah Holdings Berhad -- http://www.antah.com.my/--  
manufactures and trades pharmaceutical products and fluid
engineering and manufacturing.  The Company's other activities
include retailing of houseware and kitchenware, property
development, insurance broking, provision of management services
and investment holding.  The Group discontinued its beverage and
security services operations.  The Group operates in Malaysia,
Australia, United Kingdom and Singapore.

Aside from reporting consecutive losses, Antah is also unable to
meet its debt obligations and is currently awaiting the approval
of relevant authorities for the implementation of its
restructuring scheme pursuant to a scheme of arrangement under
Section 176 of the Companies Act, 1965.

According to the Troubled Company Reporter - Asia Pacific on
May 11, 2006, financial institutions extended a total loan
facility of MYR281,401,000 to the Company.  To date, Antah paid
MYR48,247,000.  As of April 30, 2006, Antah's total loan default
plus interest has reached MYR286,442,000.


LANKHORST BERHAD: Unit Defaults on Banking Facility Repayments
--------------------------------------------------------------
Lankhorst Berhad's subsidiary, Lankhorst M&E Sdn Bhd, had
defaulted in its banking facility repayments to its lenders, the
Company revealed in a statement to Bursa Malaysia Securities
Berhad.

Affin-ACF Finance Berhad, one of M&E's lenders, has obtained a
hearing date on June 5, 2006, with regard to its MYR136,144
claim, excluding accruing interest.  The claim is in respect of
a hire purchase facility obtained to acquire one motor vehicle
that was subsequently repossessed on September 23, 2005.

M&E is experiencing financial difficulties and the cash flow
from its operations is only sufficient to meet its working
capital requirements.

Lankhorst is in the process of formulating a corporate
restructuring exercise, which includes M&E's debt restructuring.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company is in the process of formulating a restructuring scheme
and its group of companies have been granted a Restraining Order
by the Kuala Lumpur High Court on May 30, 2005, which has been
subsequently extended until September 7, 2006.

                    About Lankhorst Berhad

Headquartered in Selangor, Malaysia, Lankhorst Berhad engages in
civil and geotechnical engineering services, building
construction, trading and application of geosynthetic materials.  
Other activities include property development and investment,
water and wastewater treatment, oil and gas contracting and
supply, quarry operations, railway track construction,
mechanical and electrical construction, soil improvement
services and trading of construction supply.  The Company has
been incurring a string of losses due to high operating costs
and its units are facing winding up actions.  It also defaulted
on several loan facilities.  As of December 31, 2005, the
Company's balance sheet showed MYR167,439,000 in total current
assets, MYR171,454,000 in total current liabilities, and
MYR1,781,000 in total stockholders' equity.  The Company has a
deficit of MYR4,015,000.

On April 24, 2006, Lankhorst was classified as an affected
listed issuer and is required to comply with the provisions of
the Bourse's Practice Note 17/2005 category.  In the event
Lankhorst fails to comply with all the provisions of PN 17/2005,
Bursa Securities may take any action against the Company
including but not limited to delisting proceedings against
Lankhorst.  The Company is currently under the protection of a
Restraining Order pursuant to Section 176 of the Companies Act,
1965 and currently formulating a debt and capital restructuring
scheme to improve the Company's financial position to be
announced in due course.


LANKHORST BERHAD: Court to Hear Default Case on June 7
------------------------------------------------------
The High Court of Kuala Lumpur will hear Bank Simpanan
Nasional's demand suit against Lankhorst Berhad on June 7, 2006,

Bank Simpanan is demanding MYR72,160 plus interest from
Lankhorst as payment for a hire purchase, which Lankhorst
defaulted on.

In order to address the issue, Lankhorst is formulating
corporate exercises, which includes a debt restructuring scheme.

Lankhorst explained that it is unable to settle its debt
obligations since its current cash flow is only enough to meet
working capital requirements.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company is in the process of formulating a restructuring scheme
and its group of companies have been granted a Restraining Order
by the Kuala Lumpur High Court on May 30, 2005, which has been
subsequently extended until September 7, 2006.

                    About Lankhorst Berhad

Headquartered in Selangor, Malaysia, Lankhorst Berhad engages in
civil and geotechnical engineering services, building
construction, trading and application of geosynthetic materials.  
Other activities include property development and investment,
water and wastewater treatment, oil and gas contracting and
supply, quarry operations, railway track construction,
mechanical and electrical construction, soil improvement
services and trading of construction supply.  The Company has
been incurring a string of losses due to high operating costs
and its units are facing winding up actions.  It also defaulted
on several loan facilities.  As of December 31, 2005, the
Company's balance sheet showed MYR167,439,000 in total current
assets, MYR171,454,000 in total current liabilities, and
MYR1,781,000 in total stockholders' equity.  The Company has a
deficit of MYR4,015,000.

On April 24, 2006, Lankhorst was classified as an affected
listed issuer and is required to comply with the provisions of
the Bourse's Practice Note 17/2005 category.  In the event
Lankhorst fails to comply with all the provisions of PN 17/2005,
Bursa Securities may take any action against the Company
including but not limited to delisting proceedings against
Lankhorst.  The Company is currently under the protection of a
Restraining Order pursuant to Section 176 of the Companies Act,
1965 and currently formulating a debt and capital restructuring
scheme to improve the Company's financial position to be
announced in due course.


MALAYSIA AIRLINES: Adds Vietnam to ASEAN Growth Market
------------------------------------------------------
Malaysia Airlines has identified Vietnam as the third ASEAN
growth market next to Indonesia and Thailand, Vietnam Net
reports.

Regional Manager for ASEAN Syed Abdillah Aziz told Vietnam Net
that Malaysia Airlines will see a double digit increase in
passenger transport and cargo transport in the region.

To meet the increasing travel demand, Malaysia Airlines will add
two flights between Hanoi and Kuala Lumpur in August, the report
says.  There are currently 14 weekly flights between Ho Chi Minh
City and Kuala Lumpur, and seven between Hanoi and the Malaysian
capital.

As reported by the Troubled Company Reporter - Asia Pacific on
May 2, 2006, Malaysia Airlines is opening new air routes
connecting Vietnam's Ho Chi Minh City to Cape Town and
Johannesburg in South Africa, Enditem reports.  The carrier will
operate three flights a week from Ho Chi Minh to the two South
African destinations in cooperation with five Vietnamese travel
companies.

The new route is part of the carrier's plan to expand its global
operations, TCR-AP said.

TCR-AP also revealed on April 6, 2006, that Malaysia Airlines
will start flying to Bahrain in July this year.  The route will
be served by a 240-seater Airbus A330 aircraft, which will fly
from Kuala Lumpur and back every Wednesday and Friday.

                     About Malaysia Airlines

Headquartered in Selangor, Malaysia, Malaysia Airlines
-- http://www.malaysiaairlines.com/-- services domestic and  
international flights.  Its global network comprised 32 domestic
and 86 international destinations.  Of the 86 international
destinations, 17 were operated in collaboration with our airline
partners.

The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, and MYR616 million for the nine-month ended Dec. 31,
2005, due to high fuel and operating costs, and unprofitable
routes.  In late February 2006, it unveiled a radical rescue
plan to raise MYR4 billion in order to stay afloat and return to
profitability by 2007.  Under the restructuring plan, the
airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
Whistle-blowing and stop corporate sponsorship.


METROPLEX BERHAD: Bourse Halts Shares Trading
---------------------------------------------
Bursa Malaysia Securities Berhad has suspended trading in
Mertoplex Berhad's shares effective May 16, 2006, until further
notice.

The trading suspension is related to the appointment of a
provisional liquidator for Metroplex's subsidiary, Metroplex
Holdings Berhad, by Morgan Stanley Emerging Markets on May 15,
2006.

As reported by the Troubled Company Reporter - Asia Pacific, a
wind-up petition had been served on Metroplex Berhad on
April 26, 2005, by the solicitors of Morgan Stanley Emerging
Markets Incorporated.  In relation to the petition, Morgan
Stanley had also filed summons for the appointment of a
provisional liquidator for Metroplex.

                   About Metroplex Berhad

Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations.  Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school.  Operations are
carried out in Malaysia, Hong Kong and Philippines.  
On April 28, 2005, Morgan Stanley Emerging Markets Inc. had
filed a winding-up petition on the Company to the Kuala Lumpur
High Court.  Morgan Stanley also filed for a summons to appoint
a provisional liquidator for the wind up.  Until and unless a
provisional liquidator is appointed pursuant to the application
to the Court by the Petitioner to appoint provisional liquidator
for Metroplex, the winding-up petition will not have significant
impact on the Group's operations as MB is currently working out
a debt-restructuring scheme.  In the event the winding-up
petition succeeds, the Company will be put into liquidation.  


METROPLEX BERHAD: Final Hearing of Appeal Set for June 16
---------------------------------------------------------
The Kuala Lumpur High Court has adjourned to June 16, 2006, the
final hearing of Metroplex Berhad's appeal against a summary
judgment handed down by the Court on February 7, 2005.

The judgment refers to Kuala Lumpur High Court ordering
Metroplex Berhad to pay its MYR59,315,450 debt to OCBC Bank
(Malaysia) Berhad.  The debt represents Metroplex's default in
payment of the revolving credit facility and overdraft facility
granted by OCBC to the Company.

The Company has appealed against the Judgment and asked its
solicitors to file for a stay of execution of the Judgment.

The hearing date for the Appeal has already been postponed
several times.  

                   About Metroplex Berhad

Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations.  Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school.  Operations are
carried out in Malaysia, Hong Kong and Philippines.  
On April 28, 2005, Morgan Stanley Emerging Markets Inc. had
filed a winding-up petition on the Company to the Kuala Lumpur
High Court.  Morgan Stanley also filed for a summons to appoint
a provisional liquidator for the wind up.  Until and unless a
provisional liquidator is appointed pursuant to the application
to the Court by the Petitioner to appoint provisional liquidator
for Metroplex, the winding-up petition will not have significant
impact on the Group's operations as MB is currently working out
a debt-restructuring scheme.  In the event the winding-up
petition succeeds, the Company will be put into liquidation.  


PARK MAY: Net Loss Jumps to MYR1.3 Million in 1Q/FY06
-----------------------------------------------------
Park May Berhad has, on May 16, 2006, filed its First Quarter
Results for the period ended March 31, 2006, with Bursa Malaysia
Securities Berhad.

For the quarter under review, the Group recorded a revenue of
MYR8,000,000.  Compared to the previous year's results, the
revenue for the quarter was lower by MYR1 million.  This is due
to lower availability of buses on the road throughout the year
because of the Company's ageing fleet.  However, the
commensurate reduction was not realized due to higher diesel
price which led to higher loss for the quarter.  Lower finance
cost was due to MYR12 million settlement of CP/MTN, made in July
2005.

The Company booked a net loss of MYR1.7 million in the current
quarter compared to MYR1.3 million in the corresponding quarter
last fiscal year.  Its accumulated losses of MYR138,475,000 was
also higher as of March 31, compared to the previous year's
MYR134,944,000.

As of March 31, 2006, the Company's balance sheet showed total
assets of MYR 38.9 million and total liabilities of MYR92.1
million.

Park May's latest balance sheet also showed stained liquidity
with MYR13,973,000 of total current assets available to pay
total current liabilities of MYR87,038,000 in the next 12
months.

The Directors do not recommend dividend on ordinary shares of
MYR1.00 each for the current period.

The Group's future is significantly dependent on the outcome of
the Group's Proposed Restructuring Scheme, as well as continuing
support from shareholders, financial institutions and creditors.  
In the meantime, the Group continues to undertake measures to
enhance its revenue generating capacity and to reduce its costs.

There has been no significant development in respect of the
Scheme to regularize the Park May group of companies' financial
position.  The Company is awaiting the decision of the
Securities Commission on the Company's application, submitted on
November 25, 2005, for an extension of time of 11 months from
July 27, 2005, until June 26, 2006, for the Company to complete
the Scheme.

              Summary of Key Financial Information

        Individual Period              Cumulative Period
    Current Year  Preceding Year  Current Year   Preceding Year
    Quarter       Corresponding   to Date        Corresponding
                  Quarter                        Period
    31-03-2006    31-03-2005      31-03-2006     31-03-2005
    MYR'000       MYR'000         MYR'000        MYR'000

* Revenue

      8,141         9,007           8,141          9,007

* Profit/(loss) before tax  

     -1,766        -1,405          -1,766         -1,405

* Profit/(loss) after tax and minority interest  

     -1,779        -1,390          -1,779         -1,390

* Net profit/(loss) for the period

     -1,788        -1,405          -1,788         -1,405

* Basic earnings/(loss) per shares (sen)  

      -2.40         -1.90           -2.40          -1.90

* Dividend per share (sen)  

       0.00          0.00            0.00           0.00

* As at end of               As at Preceding
Current Quarter            Financial Year End

     -0.7100                      -0.6800

A full-text copy of the Company's First Quarter Report is
available for free at:

   http://bankrupt.com/misc/tcrap_parkmay051806.pdf  

                    About Park May Berhad

Headquartered in Kuala Lumpur, Malaysia, Park May Berhad
-- http://www.parkmayberhad.com/-- provides public bus  
transportation in Peninsular Malaysia, categorized as stage bus
and express bus.  Its other activities include operation and
construction of light rail transit system, trading and property
holding, and investment holding and managing operation.
The Company has defaulted in its payment of monthly interest of
MYR1.1 million on its MYR135.6 million Combined and Converted
Short Term Loan Facility due on April8, 1999.  On December 30,
1999, the Corporate Debt Restructuring Committee successfully
assisted Park May Berhad to finalize a debt restructuring scheme
with its lenders and main suppliers involving debt outstanding
as at even date of MYR146 million.  On April 17, 2000, the
Securities Commission approved Park May's Proposals.  On
February 28, 2003, Park May registered a deficit in
shareholders' equity on a consolidated basis of MYR23.17
million, making it an affected listed issuer under Bursa
Malaysia Securities' Practice Note 4 category.  As an Affected
Listed Issuer, the Company is required to regularize its
financial condition.


PAXELENT CORPORATION: CIMB Files for Summary Judgment
-----------------------------------------------------
Commerce International Merchant Bakers Berhad, on May 16, 2006,
applied for summary judgment against Paxelent Corporation Berhad
for the sum of MYR511,318.13 plus interest at the rate of 1% per
month from June 16, 2005, until the date of judgment, and
further interest at 8% per annum from the date of judgment until
full settlement of costs.

Paxelent has instructed its solicitors to oppose the CIMB's
application.

The Court has not yet fixed a hearing date on the summary
judgment application.

A Writ of Summons dated September 16, 2005, and Statement of
Claim dated August 24, 2005, had been served on Paxelent on
October 20, 2005, by CIMB's solicitors.

CIMB said that it had provided advisory or professional services
to the Company.  CIMB claimed that Pexalent incurred MYR700,000
in total fees in respect of corporate proposals, which include:

   -- a renounceable two call rights issue in Paxelent on the
      basis of one new ordinary share of MYR1.00 each for every
      one existing share held;

   -- the acquisition of 49.00% equity interest in Xiptech
      Holdings Pte Ltd to be satisfied by the issuance of
      Paxelent shares;

   -- the acquisition of 59.78% equity interest in Mass Media
      Interactive Sdn Bhd to be satisfied by the issuance of
      Paxelent shares; and

   -- an employee share option scheme for eligible Paxelent
      employees and its subsidiaries.

                  About Paxelent Corporation

Paxelent Corporation is engaged in investment holding.  The
principal activities of the subsidiaries are property
investment, provision of information technology solutions,
investment holding, marketing and sale of hard disk drive
components.  The Company is a public limited liability company,
incorporated and domiciled in Malaysia, and is listed on the
Second Board of Bursa Malaysia Securities Berhad.

In the fourth quarter of the year ending December 31, 2005, the
Group recorded lower revenue of MYR8.7 million as compared to
MYR12.2 million in the preceding year corresponding period due
to the disposal of its foreign subsidiaries -- Xiptech Holdings
Pte Ltd and Xiptech Corporation Ltd.  Both subsidiaries have
substantial revenue contribution during the preceding year
corresponding period.  With the said disposal, the
materialization of Paxelent's consolidation reserve has resulted
in profit before tax of MYR21.8 million as compared to the loss
before tax of MYR 20.8 million in the preceding quarter.  

However, despite booking in positive earnings, the Company has
not met the scheduled repayment obligations of Settlement
Agreements with several financial institutions arising from the
crystallization of corporate guarantees to the Company's former
subsidiaries, which had been wound up.  The Company's Board is
currently actively pursuing various restructuring schemes to
address the default.  These schemes would involve raising funds
through partial disposal of assets, potential debts waivers and
rescheduling of the debts.  On-going discussions with the
financial institutions have been positive and the directors are
confident that agreements could be reached on debts waivers and
rescheduling of the debts in the near future.  


PAXELENT CORPORATION: Originating Summons Converted into Writ
-------------------------------------------------------------
On June 21, 2004, Paxelent Corporation Berhad was served with an
Originating Summons taken out by SP Techvance Corporation Sdn
Bhd and Seri Platinum (M) Sdn Bhd in the Kuala Lumpur High
Court, with each claiming a sum of MYR1 million, general damages
and special damages to be assessed.

The Company, together with legal firm Messrs. Cheng Kiat & Lim,
do account to the two plaintiffs all profits made from the
disposal of the rights under the provisional allotment of the
5,737,400 Rights Issue Shares.

However, the Company does not admit liability to the claim and
said that it will be vigorously defending itself.

In an update on May 9, 2006, the Court has allowed the
Originating Summons to be converted into a Writ.  In view of the
conversion, the Court has struck out the Plaintiff's application
to cross-examine Cheng Kiat & Lim's witnesses with costs.

The Court has fixed a timeline of 30 days for the Plaintiff to
file its Statement of Claim and, subsequently, 30 days for the
Defendants to file their defense.  The matter has been fixed for
mention on July 24, 2006.

                  About Paxelent Corporation

Paxelent Corporation is engaged in investment holding.  The
principal activities of the subsidiaries are property
investment, provision of information technology solutions,
investment holding, marketing and sale of hard disk drive
components.  The Company is a public limited liability company,
incorporated and domiciled in Malaysia, and is listed on the
Second Board of Bursa Malaysia Securities Berhad.

In the fourth quarter of the year ending December 31, 2005, the
Group recorded lower revenue of MYR8.7 million as compared to
MYR12.2 million in the preceding year corresponding period due
to the disposal of its foreign subsidiaries -- Xiptech Holdings
Pte Ltd and Xiptech Corporation Ltd.  Both subsidiaries have
substantial revenue contribution during the preceding year
corresponding period.  With the said disposal, the
materialization of Paxelent's consolidation reserve has resulted
in profit before tax of MYR21.8 million as compared to the loss
before tax of MYR 20.8 million in the preceding quarter.  

However, despite booking in positive earnings, the Company has
not met the scheduled repayment obligations of Settlement
Agreements with several financial institutions arising from the
crystallization of corporate guarantees to the Company's former
subsidiaries, which had been wound up.  The Company's Board is
currently actively pursuing various restructuring schemes to
address the default.  These schemes would involve raising funds
through partial disposal of assets, potential debts waivers and
rescheduling of the debts.  On-going discussions with the
financial institutions have been positive and the directors are
confident that agreements could be reached on debts waivers and
rescheduling of the debts in the near future.  


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

DIVERSIFIED FINANCIAL: 2005 Net Loss Down by 5%
-----------------------------------------------
Diversified Financial Network, Inc.'s net loss for the year
ended December 31, 2005, dropped 5% to PHP56.59 million, from a
PHP59.62 million in 2004, the Troubled Company Reporter - Asia
Pacific learns from the Company's financial accounts submitted
to the Philippine Stock Exchange.

DFNN's revenue also fell 15% to PHP96.20 million in 2005, from
PHP113.15 million in 2004.  Amidst a significant decrease in
cost, the Company suffered a 23.5% slowdown in service fees due
to longer project completion time and a 20% drop in advertising
revenues.

               Diversified Financial Network, Inc.
              For the year ended December 31, 2005
            In PHP Millions (except Loss Per Share)

                                  2005              2004

       Current Assets            35.95             53.95
       Total Assets              78.08            121.75
       Current Liabilities       81.55             77.22
       Total Liabilities        130.58            120.84
       Capital Deficiency        52.50              0.91
       Revenue                   96.20            113.15
       Net Loss                  56.59             59.62
       Loss Per Share             0.58              0.67

Diversified Financial Network, Inc. -- http://www.dfnn.com/--  
is an I.T. solutions provider and systems integrator.  Backed by
its domain expertise in financial services, the Company has
become a proprietary software technology, wireless and secure
solutions partner of leading corporations.  The DFNN Group of
Companies generates revenue through solutions, custom, tailor-
fit I.T. solutions to retail financial institutions, rental
revenue and wireless and other I.T. products and services.

                          *     *     *

Adding to the Company's insolvent balance sheet, DFNN might have
further liquidity problems.

On April 9, 2003, DFNN signed an equipment lease agreement with
the Philippine Charity Sweepstakes Office to lease necessary
hardware and software for PCSO's wireless and payment solutions.  
The PCSO accepted the system in the first quarter of 2005, but
has yet to launch its Wireless Payment Service.

DFNN, meanwhile, incurred significant costs and invested
substantial funds in the project, as well as in the development
and delivery of work under the PCSO contract.  These costs and
investments created a tight cash flow situation for the Company.

THE PCSO unilaterally suspended the project, despite the fact
that the DFNN had already fulfilled all of its deliverables
under the contract.  

The suspension of the PCSO Project, including the significant
losses and tight cash flow position in 2004 and in prior years,
indicated uncertainty as to the Group's ability to continue
operating in the normal course of business.

DFNN has started working towards the recovery of the costs and
damages against PCSO.  A main legal proceeding is filed with
the Office of the Ombudsman against the PCSO and some of its
officers, as well as the former secretary of Social Welfare.

Moreover, DFNN entered into a long-term information technology
service agreement with a foreign corporation in January 2006,
relating to the systems design and software upgrade of a
wireless gaming application.  The contract resulted to an
initial upfront payment of PHP32.94 million, which DFNN.com
received in March 2006.  Another PHP32.94 million will be
deposited in DFNN.com escrow account in the second quarter of
2006.

                          Risk Factors

DFNN has identified risk factors that could materially affect
its operations:

   1. Project Based Revenue

      Most of the Company's projects have implementation cycles
      from six to 24 months.  The Company does not experience
      any seasonality or cyclicality in its interim operations.
      Revenue comparisons on an annual or quarterly basis may
      not be comparable.  As a result, reliance on historical
      operating results cannot be used to indicate future
      performance.  Management has been tasked to focus on
      generating revenue through recurring income models.

   2. Risk of Delay for Government Projects

      In the normal course of business with any Philippine
      Government entity, approvals from the Office of the     
      Government Corporate Counsel and Commission on Audit are
      normally required.  These approvals may be delayed from
      time to time.  The Company is aware of this risk and is
      mitigating this risk through diligent application to the
      necessary approving authorities, prior to engaging with
      any government entity as a potential client.

   3. High Dependence on a Single Customer for Service Revenue

      A significant portion of the Company's revenue is
      generated from the foreign entities of a Japanese client.
      Although these entities behave as separate customers, a
      Japanese client owns the beneficial ownership of these
      entities.  A loss of or failure by this Japanese client
      could adversely affect the Group's performance.
      Management is aware of this potential risk and is
      currently developing diversification strategies for its
      client base.

   4. Mismatch of Leasing Revenue and Obligations

      The Company is currently on a long-term lease obligation
      for approximately 10 years to 2016 for its leased premises
      at the Bonifacio Technology Center, formerly Hatchasia
      Globalcity Center.  The Company's subtenants have five-
      year lease terms or less.  There is an exposure to
      releasing risk when some of these subtenant leases expire.
      The Company is negotiating with a majority of the
      subtenants to have their leases coterminous with the
      Company's lease obligations.


MANILA ELECTRIC: Seeks to Expand and Improve Network
----------------------------------------------------
The Energy Regulatory Commission granted a long-term Certificate
of Public Convenience & Necessity to Manila Electric Co.,
allowing the Company to improve and widen its distribution
network in Metro Manila, Abs-CBN News says.

The ERC announced its decision on May 9, 2006, to grant a 25-
year certificate to Manila Electric for the construction,
installation, operation and maintenance of an electric service
in these areas:

    * Caloocan,
    * Las Pinas,
    * Malabon,
    * Makati,
    * Mandaluyong,
    * Manila,
    * Navotas,
    * Paranaque,
    * Pasay,
    * Quezon, and
    * San Juan.

Aside from Metro Manila, the Company can also distribute power
to certain areas in Batangas, Bulacan, Cavite, Laguna, Pampanga,
Quezon and Rizal until 2028.

The CPCN would also allow Manila Electric to conduct
improvements on some substation power transformers worth PHP3.27
billion, since the ERC had noted that a customer of the Company
had experienced an average of up to 13 hours of power
interruption in 2002.

According to the Manila Times, Manila Electric plans to develop
these projects:

   -- a substation in Legaspi Village, Makati, worth PHP595.52
      million;

   -- a substation for Terminal 3 of the Ninoy Aquino
      International Airport, worth PHP424.86 million;

   -- a substation for the Central Bank of the Philippines I-A
      worth PHP490.32 million; and

   -- two substations in Tutuban, Divisoria, and South Port,
      totaling PHP327.83 million.

The ERC said that with Manila Electric's financial figures from
2001 to 2003, it is capable of developing these projects.

Headquartered in Ortigas, Pasig City, the Manila Electric
Company -- http://www.meralco.com.ph/-- is the largest utility  
in the Philippines, providing power to 4.1 million customers in
metropolitan Manila and more than 100 surrounding communities.  
As deregulation takes effect, Meralco is reducing its dependence
on state-owned National Power Corp. by increasing the amount of
power it purchases from independent power producers.  Meralco is
also preparing for competition by moving into non-regulated
activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real
estate.

                          *     *     *

A March 31, 2006 report by the Troubled Company Reporter - Asia
Pacific stated that the Company posted a 79.7% decrease in its
2005 net losses to PHP411 million from PHP2.03 billion in 2004,
due to provisions for probable losses while awaiting a Supreme
Court final decision on a pending unbundling rate case, and the
adoption of new accounting standards.

The TCR-AP further stated on April 27, 2006, that the Company
filed a report with the Philippine Stock Exchange, indicating a
66.1% decline in its net loss from January to March 2006 to
PHP748 million, against a PHP2.2 billion loss for the same
period last year.

According to a TCR-AP report on April 24, 2006, Manila Electric
cannot seek a loan to expand its facilities unless it repays
outstanding short-term debts amounting to around PHP4.7 billion.


NATIONAL POWER: Awaits ERC's Final Say on Settlement Agreement
--------------------------------------------------------------
The National Power Corp. and Manila Electric Co. are awaiting a
final decision from the Energy Regulatory Commission on a
revised PHP14.3-billion settlement agreement relating to a
terminated 10-year power supply contract between the two firms,
the Manila Bulletin reports.

A report by the Troubled Company Reporter - Asia Pacific on
April 28, 2006, said that Manila Electric had violated its 10-
year supply contract with National Power when it decided to stop
buying electricity from the Company in order to source it from
Napocor sister firm First Gas Philippine Corp.  The two power
firms had initially agreed to settle the terminated contract for
PHP20 billion, but a later TCR-AP report on May 5, 2006, cited
the Energy Regulatory Commission as showing records that both
firms had later revised the settlement amount to PHP14.3
billion.

According to the Bulletin, ERC chairman Rodolfo B. Albano is
concerned about possible legal roadblocks to the revised
agreement, as the firms had changed the settlement deal after
the public hearings on the issue had already been concluded.  
The Commission is mulling over a cost adjustment clause in the
contract, which read that:

   "Meralco's actual monthly offtake from NPC shall be reckoned
    against baseline quantities [].  In case of Meralco's
    inability to source energy from NPC at the baseline
    quantities other than those set forth in Section 2.2. (i.e.
    force majeure, strikes, etc.), there will be an upward
    adjustment to the settlement amount due for that billing
    period."

The ERC is finalizing a set of new rules of practice and
procedures to hear cases for ERC approval or disposition, in
order to discourage firms with vested interest to turn
opposition cases lodged with the Commission into profession, as
is happening in this case.  

                          *     *     *

Headquartered in Quezon City, Philippines, National Power Corp.
-- http://www.napocor.gov.ph/-- is a state-owned utility that  
builds and operates nuclear, hydroelectric, thermal, and
alternative power generating facilities.  It works with
independent producers under a build-operate-transfer program.  
With a generating capacity of more than 11,500 megawatts,
National Power sells electricity to distributors and industrial
companies.  To comply with the privatization bill approved by
the Philippine Congress, the Company started selling off its
generation assets to help pay for the utility's estimated debt
of PHP600 billion.  It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.

National Power first incurred losses in 1998 after the Asian
financial crisis and expensive contract terms from independent
power producers, and reported a PHP29.9 billion loss in 2004,
after a PHP117-billion net loss in 2003.

The Government absorbed National Power's PHP200 billion debt,
incurred when the government-owned-and-controlled corporation
adopted international accounting standards, forcing the Company
to report its foreign exchange losses.

The Troubled Company Reporter - Asia Pacific reported on
April 5, 2006, that National Power posted a PHP16 million profit
in 2005, the first time in seven years, on the Energy Regulation
Commission's approval of a rate increase, the use of an improved
fuel mix and better fuel prices.


NATIONAL POWER: Can Provide Power to Iloilo Without Power Barge
---------------------------------------------------------------
The National Power Corp. said in a press conference that it can
provide the necessary power to Iloilo City without transferring
the power barge if the city needs only three megawatts, the
Manila Times relates.

As reported by the Troubled Company Reporter - Asia Pacific on
May 17, 2006, National Power would transfer Napocor Power Barge
101 to Iloilo from Cebu by June or July, in order to provide
additional power to Iloilo City.   In an agreement signed on
May 5, 2006, National Power would supply electricity to Panay
Electric Company, which distributes power to 180 local
communities in Western Visayas.  

The Times writes that the Company has sufficient capacity to
cover the deficit of Mirant Corp. to Iloilo power distributor
Panay Electric Co., since it has 22 megawatts of surplus power,
according to Panay diesel power plant operations manager Tito
Cabunagan.  National Power has provided 142 megawatts of
electricity for Panay island, excluding Iloilo City, but the
island consumes about 120 megawatts, leaving more than enough
for Iloilo.  Despite this, however, Napocor Visayas chief
Eduardo Eroy said they must also look at a possible
interconnection between the Company and Panay Electric Company.

                          *     *     *

Headquartered in Quezon City, Philippines, National Power Corp.
-- http://www.napocor.gov.ph/-- is a state-owned utility that  
builds and operates nuclear, hydroelectric, thermal, and
alternative power generating facilities.  It works with
independent producers under a build-operate-transfer program.  
With a generating capacity of more than 11,500 megawatts,
National Power sells electricity to distributors and industrial
companies.  To comply with the privatization bill approved by
the Philippine Congress, the Company started selling off its
generation assets to help pay for the utility's estimated debt
of PHP600 billion.  It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.

National Power first incurred losses in 1998 after the Asian
financial crisis and expensive contract terms from independent
power producers, and later reported a PHP29.9 billion loss in
2004, after a PHP117-billion net loss in 2003.

The Government absorbed National Power's PHP200 billion debt,
incurred when the government-owned-and-controlled corporation
adopted international accounting standards, forcing the Company
to report its foreign exchange losses.

The Troubled Company Reporter - Asia Pacific reported on April
5, 2006, that National Power posted a PHP16 million profit in
2005, the first time in seven years, on the Energy Regulation
Commission's approval of a rate increase, the use of an improved
fuel mix and better fuel prices.


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

CREATIVE TECHNOLOGY: Shares Gain After Suing Apple
--------------------------------------------------
Creative Technology Limited's stock continued to go up on
May 18, 2006, following an infringement suit it filed against
United States electronics giant Apple Computer Incorporated,
Channel News Asia reveals.

The Troubled Company Reporter - Asia Pacific reported that on
May 15, 2006, Creative filed a complaint with the United States
International Trade Commission seeking an investigation on
whether Apple Computer has violated Section 337 of the Tariff
Act of 1930 through its importation and sale after importation
into the United States of iPods and iPod Nanos that infringe
U.S. Patent 6,928,433, which Creative refers to as the "Zen
Patent."

In its complaint, Creative said that the U.S. Patent Office
issued the Zen patent to Creative on August 9, 2005.

According to the TCR-AP, Creative also filed a lawsuit against
Apple Computer with the United States District Court for the
Northern District of California that seeks an injunction and
increased damages for Apple Computer's willful infringement of
the Zen Patent.

Creative shares were up 85 cents to SGD10 per share after
investors snapped up the stock following news of the legal
filings the Company made against its U.S. rival and current
market leader, Channel News Asia says.  Analysts, however,
believe that the share price hike is temporary.

Analysts told Channel News Asia that Creative's stock market
gains are unlikely to be sustained, as the filings would divert
company resources amid sharply falling earnings.

Kim Eng Securities believes that the suit may bring short-term
relief to the Company, but it will distract management attention
and divert company resources when both are needed to turn the
business around.

On the other hand, brokerage house UOB said that it is uncertain
that Creative will win a complicated legal battle such as patent
infringement with Apple, particularly in a U.S. court.

Channel News recounts that Creative chairman and chief executive
officer, Sim Wong Hoo, in 2004, challenged Apple in the portable
music market.  However, Creative has since found it difficult to
compete with the U.S. firm in the global market.  The challenge
has taken its toll on Creative's earnings.

The TCR-AP reported on May 4, 2006, that Creative posted a net
loss of US$114.33 million in the third quarter ended March 31,
2006, which reversed a year-ago profit of US$15.91 million.   
The Company blamed the loss on one-time charges and a drop in
flash memory prices, which led to an inventory writedown.

                  About Creative Technology

Singapore-based Creative Technology Ltd. makes digital
entertainment products, including portable audio players, PC
sound cards, graphics accelerator cards, and digital cameras.  
The Company also makes modems and CD and DVD drives for PCs.  
Subsidiaries include Cambridge Soundworks, Creative Labs, and E-
MU/ENSONIQ.  Tough competition in the electronics market has
hurt Creative, causing it to incur recurring losses.  The
Company reported a net loss of US$114.33 million in the three
months to March 31, 2006, reversing the year-ago profit of
US$15.91 million due to one-time charges and a drop in flash
memory prices, which led to an inventory writedown.  The Company
is also facing ongoing disputes with several companies in the
United States.  Creative also periodically receives licensing
inquiries and threats of potential future patent claims from a
variety of entities, including Lucent Technologies, MPEG LA,
Dyancore Holdings, Advanced Audio Devices and Nichia
Corporation.


LINDETEVES-JACOBERG: To Undertake Renounceable Rights Issue
-----------------------------------------------------------
Lindeteves-Jacoberg Limited is proposing to undertake a
renounceable rights issue of up to 248,056,294 new ordinary
shares in the Company's capital at an issue price of SGD0.12 for
each rights share.

The Proposed Rights Issue is currently not underwritten and the
Company in talks with potential underwriters for this purpose.

Hong Leong Finance Limited has been appointed to manage the
undertaking.

                       Subscription Price

The Rights Shares are proposed to be offered to entitled
shareholders at the subscription price of SD0.12 for each Rights
Share on the basis of one Rights Share for every two shares held
by, or standing to the credit of the securities accounts.

The subscription price represents a discount of approximately
20% to the closing price of SGD0.15 per Share on the Singapore
Stock Exchange on May 17, 2006.

                    Irrevocable Undertaking

ATB Austria Antriebstechnik AG, a controlling shareholder of the
Company, holding interests in 253,017,421 Shares representing
approximately 51% of the issued share capital of the Company,
has irrevocably undertaken to subscribe for all its Rights
Shares entitlements under the Rights Issue.

On March 17 and April 24, 2006, the Company received two loans
of EUR400,000 and EUR1.5 million from ATB as interim funding for
the Group's working capital.  ATB's obligations under the
Undertaking are given on the basis and subject to the condition
that the Loan Amount will be capitalized or set-off in full, in
part-fulfillment of its obligations to pay for the Rights Shares
to be subscribed for by it pursuant to the undertaking.

          Potential Underwriting for the Rights Shares

Lindeteves-Jacoberg is currently in negotiations with potential
financial institutions to underwrite the Rights Shares, which
are not subject to the undertaking.  To date, such discussions
are still at a preliminary stage and the Company has not reached
agreement with any financial institution on the terms of the
proposed underwriting arrangement.  

There is no assurance that the Company will be able to secure
underwriting for the Rights Issue on acceptable terms.  

                   Purpose of the Rights Issue

Based on the audited financial statements of the Company and its
subsidiaries for the year ended December 31, 2005, the Group
incurred a net loss of approximately SGD156.5 million.  Based on
the unaudited financial statements of the Group for the three-
months ended March 31, 2006, the Group incurred a loss of
approximately SGD6.8 million before exceptional income and
before tax.  Given the Group's current weak capital base, high
gearing ratio and negative cashflow position, the Rights Issue
has been proposed with a view to addressing the foregoing to a
certain extent and to improve the Group's working capital
position.

The net proceeds of the Rights Issue are expected to be
approximately SGD29.5 million.  The net proceeds will be
utilized by the Group as general working capital.  

               About Lindeteves-Jacoberg Limited

Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was  
incorporated in Singapore on December 11, 1947 as part of a
Dutch international trading group.  Its principal activities
consist of investment holding, provision of warehousing and
rental services and acting as specialist mechanical and
electrical contractor for environmental engineering projects.
The Company is undergoing a debt restructuring exercise by way
of a Scheme of Arrangement with its creditors.


===============
T H A I L A N D
===============

CENTRAL PAPER: First Quarter Net Loss Goes Down by 20%
------------------------------------------------------
In a financial report submitted to the Stock Exchange of
Thailand, Central Paper Industry Public Company Ltd indicated
that its net loss for the first quarter of 2006 changed by 20%,
compared to its net loss for the same period in 2005.

The Company reported a decrease in net revenues in the quarter
ended March 31, 2006, by THB60.02 million or 29.71% compared to
the same period of 2005.  The cost of goods sales decreased
THB58.04 million or 28.35% compared to the same period last
year.

Moreover, Central Paper said that its interest expense decreased
by THB9.56 million and the selling and administrative expenses
decreased by THB1.44 million.

Central Paper's first quarter financial report reflects these
figures.

                                        In thousand THB

                               At 03/31/2006     At 12/31/2005

Total Current Assets        185,986        184,035
Total Assets                        665,810           681,159
Total Current Liabilities         3,125,075      3,111,094
Total Liabilities                 7,305,927         7,300,573
Capital Deficiency           6,640,117     6,619,414
Total Revenues              142,038           202,062
Net Loss                     20,703        29,716

Central Paper's auditors raised substantial doubt about the
Company's ability to continue as a going concern after auditing
the Company's financial statements for the quarter ended
March 31, 2005.

                          *     *     *

Established in 1973, Central Paper Industry Public Company
Limited -- http://www.centralpaper.thailand.com/-- produces and  
distributes uncoated printing paper including fine printing
paper used in high quality printing tasks, newsprint paper used
in newspaper printing, and kraft paper used for making paper
bags.

The Company is currently classified under Thailand's REHABCO --
Companies Under Rehabilitation -- Sector.

Before the Company entered into business rehabilitation, it:

   * was sued by a financial institution for a default on the
     payment of loan principal and accrued interest totaling
     THB109.3 million;

   * has defaulted on the payment of loan principal and
     accrued interest to a local company totaling THB119.2
     million and, in 2003, the Court directed the Company to
     make the payment of loan principal and accrued interest
     in full, and;

   * was sued by a bank for the default on repayment of loan
     principal and accrued interest totaling THB2.83 billion.

     After that, the bank transferred the right on the debts to
     Thai Asset Management Corporation.  Subsequently on
     September 5, 2002, the Civil Court ordered the Company
     and the guarantor to repay the debt totaling THB2.8 billion
     to Thai Asset Management Corporation, including the
     interest charged at the rate 15% per annum of the loan
     principal of THB1.91 billion until the last settlement date
     and to mortgage the Company's land, construction, and
     machinery and confiscated certain assets of the guarantor.
     The Company did not appeal on the result of the case.

On March 16, 2004, the Company submitted a petition for
rehabilitation to Thailand's Central Bankruptcy Court.  On
February 1, 2005, the Bankruptcy Court approved the Company's
Business Reorganization Plan and appointed the Company as Plan
Administrator.

Currently, the Company is in the process of compliance with the
Business Reorganization Plan.  However, the Company has
sustained operating losses for several years and could not make
a repayment to Creditor Group 1 totaling THB4.7 million as
stated in the Business Reorganization Plan.  Hence, the
repayment of the debts in accordance with the Reorganization
Plan when they become due significantly depends on the Company's
abilities to operate successfully in the future and to generate
sufficient cash flows from operations.  


PICNIC CORP: Failed Rights Offering may Led to Bankruptcy
----------------------------------------------------------
Bottled gas manufacturer Picnic Corp Plc sold 136,585 of a total
of 1.48 billion newly released shares it offered, indicating
that even the Company's major shareholders rejected to fully
exercise their right to take up one new share for every two held
shares at THB1 per new share, the Nation reports.

According to the report, the proceeds of the sale had been
intended to lift the Company from its financial difficulties.

The Nation relates that the share offering is seen as the last
chance for Picnic to raise money to repay its debts.  However,
with the recent sale results, the Company may face bankruptcy if
its creditors would take legal action against it.  

Picnic's shareholders gave the Company an option to sell the
leftover shares through a private placement to specific
investors and if there are shares left over, the Company can
allot them to creditors under a debt-to-equity swap.

The Stock Exchange of Thailand believes that the Company would
find it difficult to raise funds through its share offering
because the price was far above the market price.  The Nation
reveals that the SET already took the unusual step of warning
investors that Picnic was on the verge of bankruptcy.

The Nation says that lawsuits have already been filed against
the Company seeking payment of its THB295 million in aggregate
debts.  Moreover, Picnic still has agreements with other asset
management companies, which hold THB283.8-million worth of bills
of exchange, to hold off legal action until June 30, 2006, in
return for interest payments.

The Nation further reveals that Sumitomo Mitsui Banking
Corporation's local branch has also filed suit against Picnic,
demanding repayment of THB429 million in debt incurred from a
letter of guarantee.  The Company is said to be negotiating with
the Japanese bank for debt repayment based on a debt-to-equity
swap.

                          *     *     *
  
Headquartered in Bangkok, Thailand, Picnic Corporation Public
Company Limited -- http://www.picniccorp.com-- is engaged in  
liquefied petroleum gas trading business under "Picnic Gas"
trademark transferred from Union Gas and Chemicals Company Ltd.  
Picnic's financial troubles began in the middle of last year
when its two major shareholders and former executives, Supaporn
and Theeratchanon Lapvisuthisin, were charged with accounting
fraud and dishonest management.  Troubles add up as it it took
over B Grimm Engineering Plc, a company that had languished in
the Stock Exchange of Thailand's rehabilitation sector since the
financial crisis.




                            *********


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
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