TCRAP_Public/060621.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

            Wednesday, June 21, 2006, Vol. 9, No. 122

                            Headlines

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

A&G SERVICES: Supreme Court Winds Up Firm
ARGLE LIMITED: Liquidation Petition Hearing Set on August 17
BITS LOYALTY: Members Decide to Close Operations
BRIAN ALEXANDER: Members and Creditors Review Wind-up Report
BROCKLISS HOLDINGS: Faces Liquidation Proceedings

DAIS HOLDINGS: Appoints Brown and Rodewald as Liquidators
DUNUM LIMITED: Court to Hear Liquidation Petition on June 29
EASTBEACH BRICKLAYING: Members Resolve to Shut Down Business
EDGE TECHNOLOGY: To Declare Dividend on June 23
EXHIBITIONS S.A.: Enters Voluntary Liquidation

GALAXY QUEST: Final Meeting Set on June 26
HAMPSTER PTY: Receivers Step Down
HOOK LINE: Liquidation Petition Hearing Slated for July 20
IPF AUSTRALIA: Creditors Opt for Liquidation
J&D TOWN: Set to Wind Up Operations

LICENCING SOLUTIONS: Inability to Pay Debt Prompts Wind-up
MASTERLINE DEVELOPMENTS: Appoints Official Receivers
MIRNSKIES PTY: Placed Under Voluntary Liquidation
NEVS AUTO: Liquidation Process Commenced
NORTHLAND TOWN: Court to Hear Liquidation Petition on July 6

NOVUS MANAGEMENT: Winds Up Business
PAINTINGS LIMITED: Shareholders Opt for Voluntary Liquidation
PAUL BRITON: Members Resolve to Wind Up Firm
PREMIER FORGE: To Distribute Dividend on June 26
QANTAS AIRWAYS: AU Transport Minister Supports Code-Share Deal

QHALORA PTY: Court Issues Wind-up Order
RETYL PTY: Decides to Halt Operations
RILEY INTERNATIONAL: Creditors Must Prove Debts by July 6
ROBKAT PTY: Liquidator to Present Wind-up Report
SANTAVAN FARMS: Names Geoffrey Donald Finch as Liquidator

SUNDIN INSURANCES: Creditors' Proofs of Claim Due on July 21
WESTPOINT GROUP: Court Appoints Cinema City Liquidators
WESTPOINT GROUP: Oaks Buys Out Project Operator for AU$9.25-Mil


C H I N A   &   H O N G  K O N G

ANDEL JEWELRY: Liquidator to Present Accounts on Winding-Up
CHAMPION BILLION: Creditors' Proofs of Debt Due on July 17
COMBI-LINE FAR EAST: Members Agree to Liquidate Business
DASIA PROPERTIES: Creditors' Proofs of Claim Due on July 16
EBIS ONE: Shareholders Opt for Voluntary Winding-up

EBIS TWO: Appoints Official Liquidators
GUANGDONG KELON: Yu Shumin Takes Top Seat and Faces Revamp Dare
MO AND COMPANY: Members Name Joint Liquidators
OCEAN PALACE: Members to Receive Liquidators' Wind-up Report
OMRON (CHINA): Members Final Meeting Set on July 19

ON KEE ENVIRONMENTAL: Liquidator Ceases to Act for Company
SENKY DEVELOPMENT: To Receive Proofs of Debt until July 16
SMART HOME: Yin Ceases to Act as Liquidator
TEAMSING ELECTRONIC: Creditors Meeting Set on June 26
YORK ELECTRONICS: Creditors Must Prove Debts by July 17

* Stock Exchange Show Companies with Misappropriated Funds


I N D I A

HINDUSTAN FASHIONS: Workers Seek to Take Over Management
INDIAN OIL: Firm Says Aviation Fuel Business Drives Growth


I N D O N E S I A

GARUDA INDONESIA: Government Puts up Bailout Fund
PERUSAHAAN LISTRIK: Needs IDR71.85 Trillion for Expansion


J A P A N

JAPAN AIRLINES: May Cancel Flights If Unions Go on Strike
LIVEDOOR COMPANY: Auto Unit Severs Ties with Parent
MITSUBISHI MOTORS: Develops New Engine with Mitsubishi Heavy


K O R E A

DONG-AH CONSTRUCTION: Bidders to Conduct Due Diligence
KOREA EXPRESS: Goldman Sachs is Largest Shareholder
KOREA EXPRESS: CJ Corp. Expresses Interest in Buying Firm
KOREA EXPRESS: Posts KRW10.65-Bil. Net Income for 1st Quarter


M A L A Y S I A

ANTAH HOLDINGS: Members Pass EGM Resolutions
AYER MOLEK: Seeks to Strike Out Default Judgment
BIMB HOLDINGS: Shareholders Okay All EGM Resolutions
KIG GLASS: UOB Files Wind-Up Petition Against KIG Unit
MALAYSIA AIRLINES: Union Urges Carrier to Defer A380 Order

MBF HOLDINGS: Court to Hear Pre-trial Case on July 13
MERCES HOLDINGS: Unit Served with Wind-Up Petition
MERCES HOLDINGS: To Hold 40th Annual General Meeting on June 30
METROPLEX BERHAD: High Court Winds Up Subsidiary
PETALING BERHAD: Proposed Acquisition Wins FIC's Favor

SETEGAP BERHAD: Obtains Restraining Order Extension
SUREMAX GROUP: Works to Provide Solvency Declaration
TENAGA NASIONAL: Strikes Off Wholly Owned Subsidiary


P H I L I P P I N E S

HACIENDA LUISITA: DAR Willing to Talk on Land Distribution
LAFAYETTE MINING: Has to Pay PHP10-Million Fine Before Test Run
NEGROS NAVIGATION: Postpones Vessel Sale Due to Low Scrap Value


S I N G A P O R E

APAC TECH: Faces Wind-Up Proceedings
GEOCON PILING: Wind-up Application Hearing Fixed on June 30
LOCKWOOD SINGAPORE: Creditors' Proofs of Claim Due on July 17
MBF PROPERTY: To Declare First and Final Dividend June 23
PACIFIC RECREATION: Court to Hear Wind-Up Petition on July 7


T H A I L A N D

MANAGER MEDIA: Auditor Expresses Concern on Capital Deficit

     - - - - - - - -

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


A&G SERVICES: Supreme Court Winds Up Firm
-----------------------------------------
The Supreme Court issued a winding up order against A&G Services
Pty Limited on May 11, 2006, and appointed Steven Nicols as
liquidator.

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


ARGLE LIMITED: Liquidation Petition Hearing Set on August 17
------------------------------------------------------------
An application to put Argle Limited into liquidation will be
heard before the High Court of Auckland on August 17, 2006, at
10:00 in the morning.    

The High Court received the application from the Commissioner of
Inland Revenue on May 17, 2006.

Contact: David Weaver
         Technical and Legal Support Group
         Auckland North Service Centre
         Inland Revenue Department
         5-7 Byron Avenue, Takapuna
         Auckland, New Zealand
         Telephone: (09) 984 1595
         Facsimile: (09) 984 3116


BITS LOYALTY: Members Decide to Close Operations
------------------------------------------------
The members of Bits Loyalty Plan Pty Limited held a meeting on
May 10, 2006, and agreed to shut down the Company's business
operations.

They also appointed John P. Perkins as liquidator.

Contact: John P. Perkins
         Liquidator
         3/6 Wolseley Street, Drummoyne
         New South Wales 2047, Australia  


BRIAN ALEXANDER: Members and Creditors Review Wind-up Report
------------------------------------------------------------
The members and creditors of Brian Alexander Kiama Realty Pty
Limited will convene on June 27, 2006, at 10:00 a.m.

During the meeting, Liquidator Danny Vrkic will present accounts
of Company's wind-up process and disposal of property.

Contact: Danny Vrkic
         Liquidator
         Jirsch Sutherland & Co.-Wollongong
         Level 3, 6-8 Regent Street
         Wollongong, New South Wales 2500
         Australia
         Telephone:(02) 4225 2545
         Fax: (02) 4225 2546


BROCKLISS HOLDINGS: Faces Liquidation Proceedings
-------------------------------------------------
An application to put Brockliss Holdings Ltd into liquidation
will be heard before the High Court of Auckland on July 27,
2006, at 10:00 in the morning.    

The High Court received the application from the Commissioner of
Inland Revenue on May 15, 2006.

Contact: David Weaver
         Technical and Legal Support Group
         Auckland North Service Centre
         Inland Revenue Department
         5-7 Byron Avenue, Takapuna
         Auckland, New Zealand
         Telephone: (09) 984 1595
         Facsimile: (09) 984 3116


DAIS HOLDINGS: Appoints Brown and Rodewald as Liquidators
---------------------------------------------------------
Kenneth Peter Brown and Thomas Lee Rodewald were appointed joint
and several liquidators of Dais Holdings Ltd on June 3, 2006.

Contact: K. P. Brown
         Rodewald Hart Brown Limited
         127 Durham Street, Tauranga
         New Zealand
         Telephone: (07) 571 6280
         Web site: www.rhb.co.nz  


DUNUM LIMITED: Court to Hear Liquidation Petition on June 29
------------------------------------------------------------
The High Court of Auckland will hear a petition to liquidate
Dunum Ltd on June 29, 2006, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition before the
Court on May 2, 2006.

Contact: Geraldine Ann Ryan
         Auckland Service Centre
         17 Putney Way, Manukau City
         New Zealand
         Telephone: (09) 984 2002


EASTBEACH BRICKLAYING: Members Resolve to Shut Down Business
------------------------------------------------------------
At a meeting on May 11, 2006, the members of Eastbeach
Bricklaying Pty Limited resolved to close the Company's business
operations and distribute the proceeds of its assets.

Murray Godfrey was named as official liquidator.

Contact: Murray Godfrey
         Liquidator
         RMG Partners Chartered Accountants
         Level 12, 88 Pitt Street
         Sydney, New South Wales 2000
         Telephone: 9231 0889


EDGE TECHNOLOGY: To Declare Dividend on June 23
-----------------------------------------------
Edge Technology Pty Limited will declare its first dividend on
June 23, 2006.

Creditors who were not able to prove their claims are excluded
from sharing in the dividend distribution.

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


EXHIBITIONS S.A.: Enters Voluntary Liquidation
----------------------------------------------
At a general meeting held on May 12, 2006, the members of
Exhibitions South Australia Pty Limited agreed that it is in the
Company's best interests to voluntarily wind up its business
operations.

Subsequently, G. N. Huddleston was named as liquidator.

Contact: G. N. Huddleston
         Liquidator
         Grant Thornton
         67 Greenhill Road, Wayville
         South Australia 5034
         Australia


GALAXY QUEST: Final Meeting Set on June 26
------------------------------------------
The members and creditors of Galaxy Quest Pty Limited will hold
a final meeting on June 26, 2006, at 10:00 a.m., to get an
account of the manner of the Company's wind-up and property
disposal from Liquidator Pino Fiorentino.

Contact: Pino Fiorentino
         Liquidator
         c/o Hamiltons Chartered Accountants
         Level 17, 25 Bligh Street
         Sydney, New South Wales 2000
         Australia
         Telephone: (02) 9232 6611
         Fax: (02) 9232 6166


HAMPSTER PTY: Receivers Step Down
---------------------------------
Bruce James Carter and John Ronald Hart of Ferrier Hodgson
ceased to act as receivers and managers of the property of
Hampster Pty Limited and May 26, 2006.


HOOK LINE: Liquidation Petition Hearing Slated for July 20
----------------------------------------------------------
The Commissioner of Inland Revenue on May 8, 2006, filed before
the High Court of Auckland a petition to liquidate The Hook Line
& Sinker Bar & Grill (2000) Ltd.

The High Court will hear the petition on July 20, 2006, at 10:45
in the morning.

Contact: David Weaver
         Technical and Legal Support Group
         Auckland North Service Centre
         Inland Revenue Department
         5-7 Byron Avenue, Takapuna
         Auckland, New Zealand
         Telephone: (09) 984 1595
         Facsimile: (09) 984 3116


IPF AUSTRALIA: Creditors Opt for Liquidation
--------------------------------------------
Members of IPF Australia Pty Limited convened on May 10, 2006,
and agreed to liquidate the Company's operations.

Anthony Stevens Smith was subsequently appointed as liquidator.

Contact: Anthony S. Smith
         Liquidator
         Ernst & Young Chartered Accountants
         Level 21, Santos House
         91 King William Street, Adelaide
         South Australia 5000
         Australia
         Telephone: (08) 8233 7111


J&D TOWN: Set to Wind Up Operations
-----------------------------------
After a general meeting held on May 15, 2006, the members of J&D
Town Pty Limited agreed to voluntarily wind up the Company's
operations and appoint Megan Smith as liquidator.

Contact: Megan Smith
         Liquidator
         Level 2, 175 Scott Street
         Newcastle, New South Wales 2300
         Australia


LICENCING SOLUTIONS: Inability to Pay Debt Prompts Wind-up
----------------------------------------------------------
The members of Licencing Solutions Pty Limited convened on May
19, 2006, and decided to wind up the Company's operations due to
its inability to pay debts when they fall due.

Timothy James Clifton and Mark Christopher Hall were
consequently appointed as joint and several liquidators.

Contact: Timothy J. Clifton
         Mark C. Hall
         Joint Liquidators
         Level 10, 26 Flinders Street
         Adelaide, South Australia
         Australia


MASTERLINE DEVELOPMENTS: Appoints Official Receivers
----------------------------------------------------
Ian Charles Francis and Quentin James Olde were on May 16, 2006,
appointed as receivers and managers of all the interests of
Masterline Developments Pty Limited.

Contact: Ian C. Francis
         Quentin J. Olde
         Receivers and Managers
         c/o Level 16, 55 Hunter Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 9225 2500
         Fax: 9225 2599


MIRNSKIES PTY: Placed Under Voluntary Liquidation
-------------------------------------------------
The creditors of the Mirnskies Pty Limited opted to wind up the
Company's operations on May 16, 2006, pursuant to Subsection
439C(c) of the Companies Act.

Subsequently, R. J. Porter and D. I. Mansfield were named joint
liquidators.

Contact: R. J. Porter
         D. I. Mansfield
         Joint Liquidators
         c/o Moore Stephens Chartered Accountants
         Level 6, 460 Church Street
         Parramatta, New South Wales 2150
         Australia


NEVS AUTO: Liquidation Process Commenced
----------------------------------------
The liquidation of Nevs Auto Centre Ltd commenced on May 22,
2006.

In this regard, Iain Andrew Nellies and Paul William Gerard
Jenkins were appointed liquidators to oversee the proceedings.

Contact: Paul William Gerrard Jenkins
         c/o Insolvency Management Limited
         Level Six, Burns House
         10 George Street (P.O Box 1058)
         Dunedin, New Zealand


NORTHLAND TOWN: Court to Hear Liquidation Petition on July 6
------------------------------------------------------------
The High Court of Auckland on May 8, 2006, received from the
Commissioner of Inland Revenue a petition to liquidate Northland
Town Planners Ltd.

The High Court will hear the petition on July 6, 2006, at 10:45
in the morning.

Contact: David Weaver
         Technical and Legal Support Group
         Auckland North Service Centre
         Inland Revenue Department
         5-7 Byron Avenue, Takapuna
         Auckland, New Zealand
         Telephone: (09) 984 1595
         Facsimile: (09) 984 3116


NOVUS MANAGEMENT: Winds Up Business
-----------------------------------
Members of Novus Management Services Pty Limited convened on
May 10, 2006, and agreed to wind up the Company's operations.

Subsequently, David Clement Pratt and Gregory Winfield Hall were
appointed as liquidators.

Contact: Gregory W. Hall
         David C. Pratt
         Liquidators
         Level 15, 201 Sussex Street
         Sydney, New South Wales 1171
         Australia


PAINTINGS LIMITED: Shareholders Opt for Voluntary Liquidation
-------------------------------------------------------------
Shareholders of Paintings Ltd on May 29, 2006, resolved to
liquidate the Company and appoint Bryan Edward William as
liquidator.

Contact: Bryan Williams
         Bryan Williams & Associates
         131 Taupaki Road, Taupaki
         Auckland, New Zealand
         Telephone: (09) 412 9762
         Facsimile: (09) 412 9763


PAUL BRITON: Members Resolve to Wind Up Firm
--------------------------------------------
The members of Paul Briton Photography Pty Limited met on
May 15, 2006, and agreed to:

  -- voluntarily wind up the Company's business operations; and

  -- appoint Michael John Morris Smith as liquidator to manage
     the Company's wind-up activities.

Contact: Michael J. M. Smith
         Liquidator
         Smith Hancock Chartered Accountants
         Level 4, 88 Phillip Street
         Parramatta, New South Wales 2150
         Australia


PREMIER FORGE: To Distribute Dividend on June 26
------------------------------------------------
Premier Forge Pty Limited will distribute its first and final
dividend on June 26, 2006.

Creditors who were unable to prove their claims are excluded
from sharing in the Company's dividend distribution.

Contact: Russell Peake
         Liquidator
         Jenkins Peake & Co.
         P.O. Box 1570, Geelong 3220
         Australia
         Telephone: (03) 5223 1000
         Fax: (03) 5221 4938


QANTAS AIRWAYS: AU Transport Minister Supports Code-Share Deal
--------------------------------------------------------------
The Australian Minister for Transport and Regional Services,
Warren Truss, expressed support for Qantas Airways Ltd.'s
proposed trans-Tasman code-sharing agreement with Air New
Zealand, the eTravelblackboard reports.

As reported in the Troubled Company Reporter - Asia Pacific on
April 13, 2006, Qantas and Air New Zealand have signed a code-
share agreement for their trans-Tasman routes.  The code-share
deal will allow both airlines to reduce cost by removing some
surplus or duplicated capacity and utilizing aircraft more
efficiently, while increasing the number of flights available to
their customers.

The eTravelblackboard cites Mr. Truss as saying that flights
across the Tasman are enormously competitive, that there is a
lot of capacity on the route and that it is "open skies in
practice."

Mr. Truss says that with Qantas' and Air NZ's market share loss,
he understands the airlines' proposed arrangements for them to
survive on the Tasman route.

The TCR-AP stated that the proposed code-share deal will be
supported by revenue, pricing and scheduling arrangements.  Once
it becomes effective, all revenue earned by Qantas and Air New
Zealand on the Tasman routes will be allocated on an agreed
basis.

According to the eTravelblackboard, Australia's international
air policy review has called for the code-sharing deal to be
balanced so that access was not traded off without benefit to
Australia.

However, the TCR-AP notes, business and political leaders from
both sides have reacted angrily to the code-share proposal,
expressing concerns of a lack of competition, higher prices and
reduced access to Australia.

Qantas' chief executive officer, Geoff Dixon, disputed the
claims that the proposed plan could increase fares, eTravel
says.  He explains that the deal would reduce costs by removing
surplus capacity and ensuring that low fares were sustainable.

The code-share deal still needs to be authorized by the New
Zealand Minister of Transport and the Australian Competition and
Consumer Commission.  

                      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, and yet
another one announced in February 2006 amidst uncertainty of
outsourcing the airline's heavy maintenance works overseas.

The Troubled Company Reporter - Asia Pacific reported on May 19,
2006, that Qantas 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.


QHALORA PTY: Court Issues Wind-up Order
---------------------------------------
The Federal Court of Australia had on May 12, 2006, ordered the
winding up of Qhalora Pty Limited.

The Court subsequently appointed Antony de Vries as liquidator.

Contact: Antony de Vries
         Liquidator
         c/o de Vries Tayeh
         Level 3, 95 Macquarie Street
         Parramatta, New South Wales 2124
         Australia
         Telephone: (02) 9633 3333
         Fax: (02) 9633 3040


RETYL PTY: Decides to Halt Operations
-------------------------------------
Members of Retyl Pty Limited held a meeting on May 17, 2006, and
decided to wind up the Company's business voluntarily.

Stuart Alfred Edwards and Colin John Gair were consequently
appointed as liquidators.

Contact: Stuart A. Edwards
         Colin J. Gair
         Liquidators
         Wheeler Grenfell Pty Limited Chartered Accountants
         Level 2, 77 Pacific Highway
         North Sydney, New South Wales 2060
         Australia


RILEY INTERNATIONAL: Creditors Must Prove Debts by July 6
---------------------------------------------------------
Douglas Kim Fisher was on June 9, 2006, appointed as liquidator
of Riley international Ltd by the Company's shareholders.

Mr. Fisher requires the Company's creditors to submit their
proofs of debt by July 6, 2006, to share in any distribution the
Company will make.

Contact: D. K. Fisher
         Private Bag MBE M215,
         Auckland, New Zealand
         Telephone: (09) 630 0491
         Facsimile: (09) 638 6283


ROBKAT PTY: Liquidator to Present Wind-up Report
------------------------------------------------
The members of Robkat Pty Limited will hold a general meeting on
June 27, 2006, at 10:00 a.m.

At the meeting, Liquidator Arthur Eady will report on the manner
of the Company's wind-up and property disposal.

Contact: Arthur Eady
         Liquidator
         Arthur Eady & Co.
         Level 6, 131 Clarence Street
         Sydney, Australia


SANTAVAN FARMS: Names Geoffrey Donald Finch as Liquidator
---------------------------------------------------------
Liquidator Geoffrey Donald Finch was appointed to oversee the
wind up of Santavan Farms Pty Limited during a members' meeting
held on May 19,2006.

Contact: Geoffrey Donald Finch
         Liquidator
         KPMG
         18 Smith Street, Darwin
         Northern Territory 0800
         Australia


SUNDIN INSURANCES: Creditors' Proofs of Claim Due on July 21
------------------------------------------------------------
Liquidator Mark Van Rossem requires the creditors of Sundin
Insurance Ltd to submit their proofs of claim by July 21, 2006.

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

Contact: Mark Van Rossem
         Taylor van Rossem & Associates
         P.O. Box 8527, Symonds Street
         Auckland, New Zealand
         Telephone: (09) 373 4634
         Facsimile: (09) 368 1600


WESTPOINT GROUP: Court Appoints Cinema City Liquidators
-------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
April 21, 2006, the Australian Securities and Investments
Commission filed an application to wind up Cinema City Mezzanine
Pty. Ltd., which is another Westpoint property financing scheme.

The ASIC says that Cinema City was insolvent.

Accordingly, on May 30, 2006, the Federal Court in Perth ordered
the winding up of Cinema City.  Geoffrey Frank Totterdell and
David Laurence McEvoy from PricewaterhouseCoopers were appointed
as liquidators.

The ASIC relates that Cinema City raised close to AU$2.5 million
in "mezzanine finance" from 34 investors through the issue of
promissory notes.  Those notes remain unpaid despite having
become due for repayment in 2005.  The funds were for a proposed
AU$101 million development of the Cinema City Arcade in Perth.

                     About Westpoint Group

Headquartered in Perth, Western Australia, the Westpoint Group
-- http://westpoint.com.au/-- is engaged in property  
development and owns or manages retail and commercial properties
with a total value of over AU$300 million.  The Group's troubles
began in 2005 when the Australian Securities and Investments
Commission commenced investigations on 160 companies within the
Westpoint Group.  The ASIC's investigation led to ASIC
initiating action in late 2005 in the Federal Court of Australia
against a number of mezzanine companies in the Westpoint Group,
including winding up proceedings.  The ASIC contends that
Westpoint projects are suffering from significant shortfall of
assets over liabilities so that hundreds of investors are at
serious risk of not receiving repayment of their investments.
The ASIC also sought wind-up orders after the Westpoint
companies failed to comply with its requirement to lodge
accounts for certain financial years.  These wind-up actions are
still continuing.

In February 2006, a wind-up order was issued by the Federal
Court in Perth against Westpoint Corporation Pty Ltd.  The ASIC
had applied to wind up the company on grounds of insolvency.  
The ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.  
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.  The
Westpoint Group's collapse is considered by many as the largest
of its type in recent years, with small investors being the
biggest group affected.  Investors are currently joining forces
to commence a class action against Westpoint and its advisors.


WESTPOINT GROUP: Oaks Buys Out Project Operator for AU$9.25-Mil
---------------------------------------------------------------
Oaks Hotels & Resorts Group bought out for AU$9.25 million the
operator of a former Westpoint hotel-apartment development in
Melbourne, the Sydney Morning Herald reports.

The Sydney Herald relates that Pacific Hotels Market Street has
a long-term lease agreement with Westpoint for the 280
apartments in the project in 60 Market Street.

According to The Australian, the 280-apartment property is
currently under the control of receiver and manager, Deloitte.
Oaks will operate the property after Pacific Hotels sold its
management rights.

Sydney Herald cites Deloitte's Sal Algeri as saying that the
deal would provide greater certainty for investors in the
project.

Westpoint developed the complex and sold individual apartments
to investors, The Australian notes.  However, some investors had
been trying to get out of contracts to buy hotel apartments in
Market Street following Westpoint's collapse.

Sydney Herald recounts that Westpoint's AU$300-million collapse
saw Mr. Algeri appointed to the Market Street development in
December 2005.

Mr. Algeri told Sydney Herald that he hoped investors would
finally start getting returns on their investments in the coming
months.  The rental guarantees promise 6% a year indexed to
inflation over 10 years.

Furthermore, Sydney Herald notes that investors who plan to
cancel their contracts are concerned with the change of brand
and will pursue with their legal action.

Mr. Algeri assures that the management change would not affect
contractual documentation in place with apartment purchasers.  
He notes that the lease term and rental returns remained the
same.

Construction for the project is expected to be completed at the
end of July 2006, which is a month ahead of schedule.

Mr. Algeri also said that Deloitte's role as receiver will
conclude at the end of September 2006, when all the apartment
sales were settled.

                     About Westpoint Group

Headquartered in Perth, Western Australia, the Westpoint Group
-- http://westpoint.com.au/-- is engaged in property  
development and owns or manages retail and commercial properties
with a total value of over AU$300 million.  The Group's troubles
began in 2005 when the Australian Securities and Investments
Commission commenced investigations on 160 companies within the
Westpoint Group.  The ASIC's investigation led to ASIC
initiating action in late 2005 in the Federal Court of Australia
against a number of mezzanine companies in the Westpoint Group,
including winding up proceedings.  The ASIC contends that
Westpoint projects are suffering from significant shortfall of
assets over liabilities so that hundreds of investors are at
serious risk of not receiving repayment of their investments.
The ASIC also sought wind-up orders after the Westpoint
companies failed to comply with its requirement to lodge
accounts for certain financial years.  These wind-up actions are
still continuing.

In February 2006, a wind-up order was issued by the Federal
Court in Perth against Westpoint Corporation Pty Ltd.  The ASIC
had applied to wind up the company on grounds of insolvency.  
The ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.  
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.  The
Westpoint Group's collapse is considered by many as the largest
of its type in recent years, with small investors being the
biggest group affected.  Investors are currently joining forces
to commence a class action against Westpoint and its advisors.


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

ANDEL JEWELRY: Liquidator to Present Accounts on Winding-Up
-----------------------------------------------------------
Liquidator Leung Chi Wing will present to members of Andel
Jewelry Limited's members final accounts of the Company's
winding up on July 27, 2006, at 2:00 p.m.

Contact: Leung Chi Wing
         Room B, 4/F., Kiu Fu Commercial Bldg
         300 Lockhart Road, Wanchai
         Hong Kong


CHAMPION BILLION: Creditors' Proofs of Debt Due on July 17
----------------------------------------------------------
Members of Champion Billion Trading Ltd on June 9, 2006, passed
a resolution appointing Lung Chun Tak as liquidator of the
Company.

Mr. Tak requires the Company's creditors to submit their proofs
of claim by July 17, 2006, to share in the any distribution the
Company will make.

Contact: Lung Chun Tak
         Units A & B, 21/F
         World Trust Tower
         50 Stanley Street
         Central, Hong Kong


COMBI-LINE FAR EAST: Members Agree to Liquidate Business
--------------------------------------------------------
Members of Combi-line Far East Ltd on June 2, 2006, passed a
resolution to voluntarily liquidate the Company.

Thomas Andrew Corkhill and Iain Ferguson Bruce were consequently
appointed as joint and several liquidators.

Contact: Thomas Andrew Corkhill
         8/F., Gloucester Tower
         The Landmark, 11 Pedder Street
         Central, Hong Kong


DASIA PROPERTIES: Creditors' Proofs of Claim Due on July 16
-----------------------------------------------------------
Liquidators Chan Kwai Ping and Wong Kwok will be receiving
proofs of claim from Wai Dasia Properties Ltd's creditors by
July 16, 2006.

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

Contact: Wong Kwok Wai
         Suite 2302-7, 308 Des Voeux Road
         Central, Hong Kong


EBIS ONE: Shareholders Opt for Voluntary Winding-up
---------------------------------------------------
Shareholders of Ebis One Enterprises Ltd on June 7, 2006, passed
a resolution to voluntarily wind-up the Company's operation and
appoint Ying Hing Chiu and Chung Miu Yin as joint and several
liquidators.

Contact: Ying Hing Chiu
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


EBIS TWO: Appoints Official Liquidators
---------------------------------------
Shareholders of Ebis Two Enterprises Ltd on June 7, 2006,
appointed Ying Hing Chiu and Chung Miu Yin as liquidators to act
jointly and severally for the Company.

Contact: Ying Hing Chiu
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


GUANGDONG KELON: Yu Shumin Takes Top Seat and Faces Revamp Dare
---------------------------------------------------------------
Guangdong Kelon Electrical Holdings Company Limited has welcomed
a new chairman in the person of its former competitor's
president and chief executive officer, Yu Shumin, China Daily
reports.

The Hisense Group's Ms. Yu has taken the challenge of reviving
Kelon, which has suffered from dwindling sales, corporate
scandals, fraudulent dealings and the arrest of its former
chairman Gu Chujun and four other executives.

The Troubled Company Reporter-Asia Pacific recounts that local
police arrested Mr. Gu and several officials on September last
year for allegedly misusing funds and dressing up the Company's
accounts.  TCR-AP recently reported that four subsidiaries of
Guangdong Kelon filed lawsuits in the Foshan Intermediate
People's Court against Mr. Gu over the same allegations.

Meanwhile, Ms. Yu is expected to take on huge tasks including
the resumption of production, securing new orders, and regaining
investor confidence and distributors' support, The Daily says.  
This will not be easy given the fact that Kelon reported a loss
of CNY1.3 billion or US$161 million during the first three
quarters of 2005.

Hisense is stepping up efforts to rejuvenate Kelon after it
spent CNY900 million, or US$110 million, in September 2005 for a
26.34% interest in Kelon.  According to TCR-AP, the Hisense
Group has agreed to take over Guangdong Greencool Enterprise
Development Co Ltd.  Upon completion of the deal, Hisense will
become the largest shareholder in Kelon.

                          *     *     *
Headquartered in Wanchai, Hong Kong, Guangdong Kelon Elecrical
Holdings Company Limited -- http://www.kelon.com/-- is one of  
the largest cooling domestic appliance manufacturers in China,
mainly engaging in the development and manufacture, as well as
domestic and overseas sales of refrigerators and air-
conditioners.  Before the latest scandal involving it's former
Chairman, the refrigerator maker was saddled with staggering
2004 net losses, after seeing a CNY197.3 million net profit in
2003 and a similar substantial profit in 2002.  With the
outbreak of the scandal, it suspended trading of some of its
shares and had its assets frozen.  The Company was taken over
China's Hisense Group in a CNY900-million acquisition agreement
in September 2005.  


MO AND COMPANY: Members Name Joint Liquidators
----------------------------------------------
Members of Mo and Company (Hong Kong) Ltd on May 15, 2006,
passed a resolution appointing Kennic Lai Hang and Lau Wu Kwai
King as liquidators to act jointly and severally for the
Company.

Contact: Kennic Lai Hang
         Kennic L.H. Lui & Co
         5/F., Ho Lee Commercial Bldg
         38-44 D' Aguilar Street, Central
         Hong Kong


OCEAN PALACE: Members to Receive Liquidators' Wind-up Report
------------------------------------------------------------
Members of Ocean Palace Restaurant & Nightclub Ltd will be
receiving Liquidators Lui Wan Ho and Ha Man Kit's final accounts
of the Company's wind-up operations.

The presentation will be made at the Joint Liquidators' office
on July 21, 2006, at 10:00 a.m.

Contact: Lui Wan Ho
         Room 701, Hong Kong House
         17-19 Wellington Street
         Hong Kong


OMRON (CHINA): Members Final Meeting Set on July 19
---------------------------------------------------
Members of Omron (China) Group Co Ltd will convene for their
final meeting on July 19, 2006, 10:30 a.m. at 35/F., One Pacific
Place, 88 Queensway, Hong Kong.

At the meeting, Liquidators Lai Kar Yan and Darach Haughey will
present final accounts of the Company's wind-up operations.


ON KEE ENVIRONMENTAL: Liquidator Ceases to Act for Company
----------------------------------------------------------
Hue Ho Yin ceased to act as liquidator of Kee Environmental
Solutions on May 10, 2006.


SENKY DEVELOPMENT: To Receive Proofs of Debt until July 16
----------------------------------------------------------
Liquidators Chan Kwai Ping and Wong Kwok will be receiving
proofs of debt from creditors of Wai of Senky Development Ltd
until July 16, 2006.

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

Contact: Chan Kwai Ping
         Suite 2302-7, 308 Des Voeux Road
         Central, Hong Kong


SMART HOME: Yin Ceases to Act as Liquidator
-------------------------------------------
Hue Ho Yin no longer acted as liquidator of Smart Home Trading
Limited since May 10, 2006.


TEAMSING ELECTRONIC: Creditors Meeting Set on June 26
-----------------------------------------------------
Creditors of Teamsing Electronic Co Ltd will hold a meeting on
June 26, 2006, at Room 103, Duke of Windsor Social Service
Building, 15 Hennessy Road, Wanchai, Hong Kong.

During the meeting, creditors will discuss matters regarding the
Company's winding up.


YORK ELECTRONICS: Creditors Must Prove Debts by July 17
-------------------------------------------------------
Joint liquidators Andrew George Hung and Yau Sun Yu require the
creditors of York Electronic Works Ltd to submit their proofs of
debt by July 17, 2006.

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

Contact: Andrew George Hung
         Room 1603, 16/F., Grand Centre
         8 Humphreys Avenue, Tsimshatsui
         Hong Kong


* Stock Exchange Show Companies with Misappropriated Funds
----------------------------------------------------------
Earlier this month, the Shanghai and Shenzhen stock exchanges
published a list of 189 publicly traded companies with a total
of CNY33.6 billion (US$4.2 billion) misappropriated funds by big
shareholders and affiliates, the China Daily reports.

These 189 companies account for 14% of all domestically listed
firms.

According to Li Xiaowei of China Daily, the disclosure, which
was published in the official securities paper -- China
Securities Journal -- is a strong indication of the exchanges'
resolve to shore up corporate governance of listed firms at a
time when the liquidity-driven stock market rally is gathering
momentum.

China Daily recounts that the list came two days after the China
Securities Regulatory Commission issued a notice ordering
misappropriated money at publicly traded firms to be repaid at a
faster pace.

The CSRC Notice, released on May 29, 2006, stipulates that all
companies must have their misappropriated funds repaid by the
end of the year and companies that have misused funds under
CNY10 million must repay by the end of June.

Those companies unable to repay in cash must produce assets or
equity stakes, and those who refuse to pay back debts could be
sued by the boards of listed firms, the notice indicates.

Meanwhile, judicial measures are being considered by the Supreme
Peoples' Court to bring criminal charges against those who
embezzle funds of publicly traded firms.  

The list of 189 companies includes:

   -- Guangdong Kelon Electrical Holdings Co.,
   -- Hunan Jiugui Liquor Co,
   -- Shanghai Electric Power Co, and
   -- Hangzhou Iron & Steel Co.

China Daily said that in the first five months of 2006, 212
mainland-listed companies were repaid misappropriated funds and
77 obtained partial repayments, valued at CNY11.2 billion in all
and accounting for 25% of all misused funds.

However, according to a survey by the China Securities Journal,
most of the funds repaid are small amounts and were repaid in
cash.

The China Daily notes that stock of some poorly performing
companies have seen active trading recently, driven by
speculators who bet on profit-taking opportunities from the
companies' asset restructuring or debt repayment programmes
churned out at a quicker pace to facilitate share reform.


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

HINDUSTAN FASHIONS: Workers Seek to Take Over Management
--------------------------------------------------------
The workers' unions of Hindustan Fashions Limited will present
to the Board for Industrial and Financial Reconstruction a
proposal to take over the management of the closed Company, The
Financial Express reveals.

A group of unions headed by Hindustan Fashions Ltd Employees
Union is forming an internal organization among their group to
handle the operations of the Company, which had been shut down
since 1997.

According to the Financial Express, the former management of
Hindustan Fashions had declared a lockout around nine years ago,
as its financial condition is not anymore sufficient to sustain
operations.  

However, the Employees Union filed a petition before the Labor
Tribunal to declare the lockout illegal.  The Tribunal recently
ruled in favor of the Union, according to The Express.

The Tribunal also ordered the Company to pay around 600
employees INR12.78 crore for entitlements and wage arrears, The
Express adds.


INDIAN OIL: Firm Says Aviation Fuel Business Drives Growth
----------------------------------------------------------
Indian Oil Corporation projects another double-digit growth in
its aviation fuel business despite the entry of rival Oil and
Natural Gas Corporation, Hindu Business Line reports.

According to Business Line, the demand for aviation turbine fuel
has been growing at an annual average rate of 15%.  Indian Oil
expects to continue to grow in double digits during the next two
years.  The Company enjoys a market share of 67% in the aviation
fuel business and has 95 fuel stations across India.

However, Indian Oil Corp admitted that its business will be
adversely affected by the entry of ONGC into the segment,
Business Line says.  ONGC, last week, received approval from the
Central Government to enter aviation refueling business and this
will permit ONGC to market aviation turbine fuel.  The Company
also obtained permission for its plan to set up aviation
refueling stations in airports across the country.

An Indian Oil Corp spokesperson told Business Line that the
Company's aviation fuel division has helped boost the Company's
finances and helped offset the losses it incurred through the
sale of domestic fuel at Government-mandated prices.

The Troubled Company Reporter - Asia Pacific recounts that
despite the profits it booked in the quarter ended March 31,
2006, Indian Oil was still losing nearly INR100 crore per day
for selling petroleum products below cost price.  The state
refiner was losing INR10.55 per liter on sale of petrol and
INR9.88 per liter on diesel due to a freeze on increasing fuel
prices.  It was also losing INR160 per cylinder of cooking gas
and INR16.78 per liter in kerosene.

                   About Indian Oil Corporation

Indian Oil was established as Indian Oil Company Limited in
1959.  Indian Oil Corporation was formed in 1964 with the merger
of Indian Refineries Limited with the Indian Oil Company Ltd.  
Indian Oil's countrywide network of over 22,000 sales points is
backed for supplies by its extensive, well spread out marketing
infrastructure comprising 167 bulk storage terminals,
installations and depots, 94 aviation fuelling stations and 87
LPG bottling plants.  Its subsidiary, IBP Co. Ltd, is a stand-
alone marketing company with a nationwide network of over 3,000
retail sales points.  

In spite of its large production capacity and smooth operations,
Indian Oil incurred huge losses as a result of a Government
mandate, which prohibits public sector oil marketing firms from
raising fuel prices despite skyrocketing global prices.  For
years, Indian Oil has been selling fuel at subsidized prices,
which is way below the costs it pays for importing fuel from
overseas markets.  The Company has not been able to pass on the
high prices leading to large under-recoveries and losses.   
Early this year, the Government has offered a bailout package to
help rescue oil companies, including Indian Oil, from going
bankrupt.  Under the package, the Government issued Indian Oil,
Bharat Petroleum, Hindustan Petroleum and IBP oil bonds worth
INR10,000 crore to INR12,000 crore to compensate them for not
raising LPG and kerosene prices.  The move was expected to
improve their balance sheets.


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

GARUDA INDONESIA: Government Puts up Bailout Fund
-------------------------------------------------
The Office of the Minister of State Enterprises is setting up a
"state-enterprise restructuring fund" to rescue state-owned
airline PT Garuda Indonesia from bankruptcy, the Jakarta Post
reports.

State Enterprises Minister Sugiharto said that the special fund
was put up in order to help financially troubled companies
recover.  Proceeds for the fund would come from the
securitization of certain minority stakes held by the Government
in private and state-owned firms.

The Troubled Company Reporter - Asia Pacific stated on June 8,
2006, that Garuda Indonesia was having trouble making principal
payments on its IDR7.42-trillion debt since 2005, due to fierce
competition from budget airlines, increasing fuel prices, a
weaker rupiah, and sluggish demand after terrorist attacks on
tourists in Bali in October 2005.  According to Garuda CEO
Emirsyah Satar, the Company incurred losses worth
IDR635.78 billion in 2005 alone.

Minister Sugiharto had initially proposed to put up a special-
purpose vehicle to manage Garuda's debts.  He also proposed that
the Government guarantee the Company's debt repayments, so that
it could secure funds needed to maintain daily operations.  
However, Vice President Jusuf Kalla disagreed with the
proposals, seeking instead to sell the Company to investors to
lessen the Government's burden.

According to TCR-AP, Garuda Indonesia is finalizing its
restructuring plan to include a debt repayment agreement it had
worked out with its creditors.  The Company aims to secure
creditor approval for its restructuring plan by December 2006.

                      About Garuda Indonesia

Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--  
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations.  Under its
Citilink brand, it serves another 10 domestic routes.  Garuda
also ships about 200,000 tons of cargo a month and operates a
computerized tracking system.

The carrier has been hit by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005.  It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates.  At present, Garuda is concentrating its efforts on
repaying its debts with foreign creditors under the European
Credit Agency, which were due last December 31, 2005.  Garuda
Indonesia's debt totals IDR7.32 trillion, with IDR4.6 trillion
owed to its ECA creditors.

In March 2006, the Indonesian Government proposed to infuse
IDR2.3 trillion for PT Garuda Indonesia's debt restructuring, or
set up a "special-purpose vehicle" in a bid to pay the airline's
debts.  Sugiharto, the state-owned enterprises minister, said
that if the second option was agreed, the special-purpose
vehicle would repay debt principal and interest of IDR735.7
billion annually within a 10- year period.  Mr. Sugiharto added
that the financial sources would be from the airline's leasing
revenues of IDR275.8 billion a year and from the Government's
fund of IDR459.7 billion a year.  The carrier posted a SGD46.5
billion net loss in January, versus a net loss of IDR56.1
billion in the same period last year.


PERUSAHAAN LISTRIK: Needs IDR71.85 Trillion for Expansion
---------------------------------------------------------
State utility firm PT Perusahaan Listrik Negara needs
IDR71.85 trillion in order to improve and widen its transmission
and distribution networks, the Jakarta Post relates.

Antara News cites PLN transmission and distribution director
Herman Darnel Ibrahim as saying that the Company had to expand
its transmission and distribution networks for the successful
implementation of the Government's plan to put up coal-fired
power plants with a combined capacity of 10,000 megawatts by
2009.  Without the transmission and distribution networks,
consumers would not enjoy the power generated from the new
plants.

The new coal-fired power plants are slated to reduce Indonesia's
dependence on fuel-based power plants on rising fuel prices.  
Construction of the plants is set to begin, though PLN has yet
to secure funds for the network expansion.  According to
Mr. Ibrahim, PLN needs some IDR40.12 trillion to expand its
transmission network, while IDR31.72 trillion is needed for the
distribution network.  

Aside from the network expansion, PLN also needs to build 200
substations to receive electricity from the main power lines,
and reduce its voltage for distribution to customers,
Mr. Ibrahim adds.  Bloomberg News says that PLN currently has
804 substations, most of which are located in Java.

The Company needs around IDR251.93 trillion to construct new
power plants and transmission lines by 2012, in order to keep
with the growing power demand.

                          *     *     *

PT Perusahaan Listrik Negara -- http://www.pln.co.id/--  
transmits and distributes electricity to around 30 million
customers, roughly 60% of Indonesia's population.  The
Indonesian Government decided to end PLN's power supply monopoly
to attract independents to build more capacity for sale directly
to consumers, as many areas of the country are experiencing
power shortages.  PLN posted a IDR4.92-trillion net loss in
2005, against a net loss of IDR2.02 trillion in 2004.

The Company received IDR12.51 trillion in subsidies from the
Government last year, almost four times the IDR3.47 trillion in
2004.

The Troubled Company Reporter - Asia Pacific reported on
April 5, 2006, that Perusahaan Listrik is once again under
investigation by the Indonesian National Police for corruption,
connected to equipment price mark-ups and irregular contract
tendering procedures at a gas-fired power plant in Bekasi.  This
after being subjected to a probe on an alleged price mark-up of
three generators purchased in 2004.  A further report on May 5,
2006, stated that PLN president Eddie Widiono was arrested on
allegations that he had marked up the funds used to buy an
MD2500 generator for an electricity project in Borang regency in
South Sumatra in 2004, which made the state suffer a IDR122-
billion loss.


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

JAPAN AIRLINES: May Cancel Flights If Unions Go on Strike
---------------------------------------------------------
Four labor unions of Japan Airlines may hold a 24-hour strike
today, June 21, 2006, which would force the airline to cancel
24% of its local flights, Airwise News relates, citing Reuters
News.

According to the report, JAL's four unions comprise up to 2,700
cabin, cockpit crew and ground staff, and if these individuals
were to go on strike, the airline would have to cancel 152 of
its 646 domestic flights scheduled today, leading to a loss of
JPY200 million and stranding around 13,000 passengers.

Reuters says that in March 2006, JAL had settled with JALFIO,
the largest of its four unions, on a 10% wage cut, which was
opposed by the other unions.  According to a Company spokesman,
the unions were probably upset about summer bonuses and working
conditions arising from a planned integration of JAL's
international and domestic flights in October this year.  Union
member Fukuko Torikai said they were not satisfied with the wage
cut and current working conditions, and wanted JAL to increase
safety resources.

The Troubled Company Reporter - Asia Pacific stated on
May 12 2006, that JAL posted a consolidated net loss of
JPY47.24 billion for the business year 2005 ended March 31,
2006, due to safety-related incidents in 2005 that caused
passengers to shift to its rival All Nippon Airways, and an
increase in aviation fuel costs.

The Company is open to negotiations with its unions in order to
prevent a strike, Reuters relates.

                          *     *     *

Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger  
of Japan Airlines and Japan Air Systems to boost domestic
coverage.  JAL's international passenger operations incurred
losses in recent years due to negative factors such as the
severe acute respiratory distress syndrome epidemic and
terrorism fears.  Due to a series of safety related incidents,
the JAL Group was subjected to a business improvement order and
administrative warnings relating to assurances on air
transportation safety issued by the Ministry of Land,
Infrastructure and Transport in March 2005.  For the JAL Group,
there was a year-on-year decline in passenger demand on
international routes, due mainly to a delay in the recovery of
demand on routes to China and Southeast Asia.  Domestic
passenger demand also fell below its year-earlier level,
particularly among individual passengers, as a result of factors
such as the series of safety problems that occurred.  Demand for
international cargo services also fell year-on-year, due to weak
demand on routes from Japan to East Asian countries and the
United States.  Rising aviation fuel prices compounded JAL's
situation.

Japan Airlines currently needs to refinance a JPY100-billion
debt in order to graduate from rehabilitation by its March 2007
deadline.


LIVEDOOR COMPANY: Auto Unit Severs Ties with Parent
---------------------------------------------------
Livedoor Co. Ltd said on June 19, 2006, that it has mutually
agreed to cut ties with its car marketing unit, Livedoor Auto
Co., the Japan Times relates.

According to the Times, the recent events following the eruption
of Livedoor's involvement in an accounting scandal in January
after it was discovered that the Company's founder and ex-
directors manipulated its 2004 financial results to cover up
losses tainted its reputation, as well as that of its
subsidiaries.

Livedoor Auto had expressed the desire to be disassociated with
the parent firm after the scandal broke out.  It asked the Tokyo
District Court to nullify its business tie-up with Livedoor Co.
last month.

In a statement, Livedoor Auto had said that its reputation was
tarnished with the arrests and indictment of its parent firm's
president and directors, and led to its weak financial
performance and reduced shareholder value.  

As reported in the Troubled Company Reporter - Asia Pacific on
May 15, 2006, Livedoor Auto became a subsidiary of Livedoor Co.
in 2005, and changed its name from Jac Holdings Company in
January 2006, at the time when prosecutors raided Livedoor Co.'s
offices on suspicion of falsifying financial statements.

Livedoor Auto is the first subsidiary to sue Livedoor after the
accounting scandal.  Livedoor Auto seeks around JPY1.67 billion
in damages from Livedoor founder and president Takafumi Horie
and two former Livedoor directors.

However, the Times notes, the mutual agreement between Livedoor
Co. and Livedoor Auto would enable both firms to settle Livedoor
Auto's damages suit and ensures its cooperation in looking for
buyers of Livedoor Co.'s stake in the car unit.

                          *     *     *

Headquartered in Tokyo, Japan, Livedoor Company, Limited --
http://corp.livedoor.com/en/-- is involved in out portal site
"livedoor," financial business, corporate web solutions, data
center and IP telephony business.

The Troubled Company Reporter - Asia Pacific reported that in
January 2006, Livedoor ex-president and founder Takafumi Horie,
and other Livedoor directors were found to have conspired to
cover up the Company's JPY310 million pre-tax loss for the
business year ended September 2004, by doctoring financial
accounts to instead show an inflated pre-tax profit of JPY5.03
billion.  Moreover, Mr. Horie and the Company executives
allegedly relayed false information on a merger, with the intent
to boost the stock price of Livedoor's subsidiary, Livedoor
Marketing Co.

The TCR-AP recounts that following the accounting scandal,
Livedoor's stock price plunged to JPY94 per share from over
JPY300 per share.  Livedoor was delisted from the Tokyo
Stock Exchange on April 14, 2006.

Four Livedoor ex-directors, two external accountants, and both
Livedoor and subsidiary Livedoor Marketing Limited, have pled
guilty to charges of accounting fraud and violating the
Securities Exchange Law at their trial's first hearing on
May 26, 2006.  This while Mr. Horie denied the charges against
him.  The directors currently stand trial for the fraud charges,
while Mr. Horie is scheduled to stand trial in August 2006.


MITSUBISHI MOTORS: Develops New Engine with Mitsubishi Heavy
------------------------------------------------------------
Mitsubishi Motors Corp. teamed up with Mitsubishi Heavy
Industries to develop a new-generation diesel engine to be used
in cars for export to Europe, Japan Corporate News reports.

The engine will be a two-liter class unit to be used in small to
medium-sized cars designed to meet Europe's strict new emission
standards, as well as to achieve best-in-class emissions
performance and output levels.  Development for the engine is
slated to be completed by mid-2009, with mass production
expected to start in 2010.

JCN states that Mitsubishi Motors is developing the new diesel
engine to meet European market demand for diesel engines with
lower emissions of carbon dioxide.  It will make use of
Mitsubishi Heavy's expert engineers to help with the project, as
well as its technical expertise support for its revitalization
plan.

                   About Mitsubishi Motors

Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
http://www.mitsubishi-motors.co.jp/-- is one of the few  
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.  
The Company also operates consumer-financing services and
provides this to its customer base.  Mitsubishi's problems stem,
in part, from the scandal surrounding years of systematically
covering up auto defects and ill-advised auto lending policies
in the United States.

Mitsubishi Motors appeared to be turning around for a few years
under an alliance with DaimlerChrysler AG, but the German
automaker withdrew additional financing in 2004.  Since then,
Mitsubishi Motors has received massive cash infusions from the
Mitsubishi group of companies, including a bank, machinery maker
and trading company, to support revival efforts.

Mitsubishi adopted the "Mitsubishi Motors Revitalization Plan"
on January 28, 2005, as its three-year business plan covering
fiscal 2005 through 2007.  The main objectives of the plan are
"Regaining Trust" and "Business Revitalization."

                          *     *     *

According to an April 28, 2006 report by the Troubled Company
Reporter - Asia Pacific, Mitsubishi Motors reported an 81% drop
in its net loss for the fiscal year 2005 ended March 31, 2006,
to JPY92.2 billion, from a JPY474.8 billion loss the previous
year.  The report states that the loss was attributed to special
restructuring costs, including a re-evaluation of its property.  

Sales also fell slightly to JPY2.12 trillion in 2005, from
JPY2.122 trillion in 2004.  However, the Company expects to
return to profit in 2006 on an increase in worldwide shipments,
with sales expected to reach JPY2.23 trillion.


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

DONG-AH CONSTRUCTION: Bidders to Conduct Due Diligence
------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
March 8, 2006, that the creditors of Dong-Ah Construction
Industrial Co. are going to auction a controlling stake in the
South Korean construction company.

Korea Asset Management Corp. and Samjong KPMG FAS Inc. are
arranging the sale, the Korea Times says.

Bloomberg News relates that KAMCO, Kookmin Bank and other Dong-
Ah creditors have asked potential bidders to convey letters of
intent by June 19, 2006.

Reuters reports that since the sale announcement until the
June 19 deadline, Dong-Ah has received bids from 14 companies.

According to Bloomberg, bidders will then conduct due diligence
for two weeks starting June 22 and some may be asked to submit
proposals in July.

Korea Times notes that the Dong-Ah creditors will decide later
on how many new shares the Company can sell to the buyer after
the Company cancels its outstanding shares.

KAMCO did not give an estimated value for Dong-Ah's net assets,
Bloomberg says.  Yet, the Korea Economic Daily said in an
article on June 4, 2006, that the Company is valued at more than
KRW400 billion.

Korean Times relates that once a new owner is chosen, the firm
is expected to be put under court receivership and undergo
rigorous restructuring programs.

Triumph Investments Limited, a Goldman Sachs Group Inc. fund
based in Ireland, is the biggest creditor in Dong Ah, with
29.06% of the builder's total debt, Reuters notes.  KAMCO, which
is a state-run corporate restructuring agency, is the Company's
second-largest creditor, with 19.56%.  Both firms put billions
of won in public funds into Dong-Ah to rescue the company.  If
the sale goes smoothly, they will be able to retrieve part of
the bailout funds.

Korea Times recounts that creditors originally planned to
liquidate Dong-Ah, but KAMCO and Goldman Sachs reached an
agreement in late 2005 to revive it, given its potential and
know-how in the engineering field.

According to the report, Dong-Ah's shares have recently soared
amid merger rumors.  Its shares once fell to KRW200 per share,
but are now being traded at some KRW1,000 per share on the over-
the-counter stock market.

                   About Dong-Ah Construction

Dong-Ah Construction Industrial Co., Ltd. --
http://www.dongah.co.kr/-- is a construction firm that focuses  
on fields such as civil engineering, architectural and
electrical works, and plant constructions.  The Company's
projects consist of land developments, bridges, tunnels,
subways, apartment complexes, and commercial buildings.  In
addition, Dong-Ah is building the Great Man-made River in Libya.

After being hit hard by the 1997-98 Asian financial crisis, the
firm underwent debt workout programs, but failed to overcome
financial trouble amid soured investor sentiment for the
construction industry.  It was officially declared bankrupt in
May 2001.  Dong-Ah's stock was suspended from trading on Feb. 7,
2001, after an accounting firm advised a court that closing the
Company would cost less than trying to keep it afloat.  Minority
shareholders owned 88% of the Company's outstanding shares,
according to the Company's financial statements in 1999.

In 2005, Goldman Sachs Group Inc. and Korea Asset Management
Corp., the main creditors of Dong-Ah, asked a Seoul court to
halt bankruptcy filing procedures for the construction company
and place it under court receivership, to be sold later.

Claims by all creditors against the Company were
KRW4.05 trillion, however, industry estimates that the Company
is valued at more than KRW400 billion, including premiums to
business rights.  Of Dong-Ah's assets, only KRW289.7 billion
have not been pledged as security, according to the Company's
financial statement as of March 31, 2006.


KOREA EXPRESS: Goldman Sachs is Largest Shareholder
---------------------------------------------------
Goldman Sachs Group Inc. has become the largest shareholder in
Korea Express Co. Ltd., after three Goldman-controlled funds
acquired a 15% stake by swapping non-performing loans in Dong-ah
Construction Co. Ltd. into an 11.6% stake and buying the rest
from the market, Reuters reports, citing a disclosure by Korea
Express to the Korean Stock Exchange.

According to Reuters, the move was ahead of the sale of Korea
Express as early as this year.

The United States-based investment bank replaces STX Pan Ocean
Co. Ltd. as top shareholder, holding a 14.8% stake.

Korea Express, a former unit of Dong-Ah, is expected to be put
up for sale as early as this year, after it was placed under
court receivership in 2000 due to its debt guarantees for the
Dong-Ah.

Reuters cites a Korea Express spokesman as saying that the firm
planned to sell a 50% plus one share to a third-party investor
by issuing new shares.  However, he clarified that the timing
has yet to be decided.

Kumho Industrial Co. Ltd., which has 13.5% stake in Korea
Express, has expressed interest in acquiring the Company.   
Press reports have also put forward GS Engineering &
Construction Co. Ltd. and CJ Corp. as possible bidders.

Reuters recounts that one of Goldman's funds, Ireland-based
Triumph Investments, bought Dong-Ah's debt in early 2005, eyeing
the right to convert the debt into Korea Express shares.

                       About Korea Express

Headquartered in Seoul, Korea Express Co., Ltd. --
http://www.korex.co.kr/-- provides land and marine  
transportation, and logistics services.  The Company also
operates stevedoring, distribution, and warehousing businesses
that serve domestic and international customer needs.  Korea
Express transports a variety of products, ranging from consumer
goods to machinery and turbines.  Korea Express also operates
Internet home shopping business.

In 2005, Korea Express President Lee Kook-Dong signified that
the Company might be put up for sale after it completes a water
pipeline project in Libya in the first half of 2006.  The
Company agreed in December 2005 with the Libyan Government to
finish the Great Man-Made River project, the largest engineering
project in the world cited by the United Nations, by the end of
June 2006.

Mr. Lee is tasked with reviving the Company, which has been
under court receivership since June 2001 after it could not
service a KRW1.5-trillion debt, including KRW919 billion owed by
then-parent Dong-Ah Construction Industrial Co.  Mr. Lee will
decide with a Seoul court about when to sell the Company, which
has a market value of US$601 million.

In the Company's Web site, Mr. Lee said that the Company will
strive to end court receivership and improve its liquidity,
maximize sales profit through strengthening of cooperation
between management and labor, and seek continuous development


KOREA EXPRESS: CJ Corp. Expresses Interest in Buying Firm
---------------------------------------------------------
CJ Corp., which is reportedly South Korea's largest
foodprocessing company, said that it is interested in acquiring
Korea Express Co. Ltd., Bloomberg News reports.

The CJ Group believes that Korea Express would be a "good fit"
for its Seoul-based unit's focus on logistics.

Korea Express, which is under court receivership since June
2001, may be put up for sale within 2006.

STX Pan Ocean Co., which owns a 21% stake in Korea Express, and
Kumho Industrial Co., with an 18.1% stake, are also potential
bidders.

The CJ Group is South Korea's 15th-largest industrial group with
KRW6.8 trillion in assets.

                       About Korea Express

Headquartered in Seoul, Korea Express Co., Ltd. --
http://www.korex.co.kr/-- provides land and marine  
transportation, and logistics services.  The Company also
operates stevedoring, distribution, and warehousing businesses
that serve domestic and international customer needs.  Korea
Express transports a variety of products, ranging from consumer
goods to machinery and turbines.  Korea Express also operates
Internet home shopping business.

In 2005, Korea Express President Lee Kook-Dong signified that
the Company might be put up for sale after it completes a water
pipeline project in Libya in the first half of 2006.  The
Company agreed in December 2005 with the Libyan Government to
finish the Great Man-Made River project, the largest engineering
project in the world cited by the United Nations, by the end of
June 2006.

Mr. Lee is tasked with reviving the Company, which has been
under court receivership since June 2001 after it could not
service a KRW1.5-trillion debt, including KRW919 billion owed by
then-parent Dong-Ah Construction Industrial Co.  Mr. Lee will
decide with a Seoul court about when to sell the Company, which
has a market value of US$601 million.

In the Company's Web site, Mr. Lee said that the Company will
strive to end court receivership and improve its liquidity,
maximize sales profit through strengthening of cooperation
between management and labor, and seek continuous development


KOREA EXPRESS: Posts KRW10.65-Bil. Net Income for 1st Quarter
-------------------------------------------------------------
Korea Express Co. Ltd. posted a KRW10.65-billion net income for
the first three months ended 31, 2006, a 7.30% decrease from the
KRW11.49-billion net income for the corresponding period in
2005.

Net sales for the Company stood at KRW286.41 billion, 0.15%
higher than the net sales for the first quarter of 2005.

Korea Express posted a 153.53% surge in net income from
KRW18.87 billion in fiscal year 2004 to KRW47.85 billion in
fiscal year 2005.  This, after sales rose 4.41% to
KRW1.208 trillion in 2005.

                       About Korea Express

Headquartered in Seoul, Korea Express Co., Ltd. --
http://www.korex.co.kr/-- provides land and marine  
transportation, and logistics services.  The Company also
operates stevedoring, distribution, and warehousing businesses
that serve domestic and international customer needs.  Korea
Express transports a variety of products, ranging from consumer
goods to machinery and turbines.  Korea Express also operates
Internet home shopping business.

In 2005, Korea Express President Lee Kook-Dong signified that
the Company might be put up for sale after it completes a water
pipeline project in Libya in the first half of 2006.  The
Company agreed in December 2005 with the Libyan Government to
finish the Great Man-Made River project, the largest engineering
project in the world cited by the United Nations, by the end of
June 2006.

Mr. Lee is tasked with reviving the Company, which has been
under court receivership since June 2001 after it could not
service a KRW1.5-trillion debt, including KRW919 billion owed by
then-parent Dong-Ah Construction Industrial Co.  Mr. Lee will
decide with a Seoul court about when to sell the Company, which
has a market value of US$601 million.

In the Company's Web site, Mr. Lee said that the Company will
strive to end court receivership and improve its liquidity,
maximize sales profit through strengthening of cooperation
between management and labor, and seek continuous development


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

ANTAH HOLDINGS: Members Pass EGM Resolutions
--------------------------------------------
Members of Antah Holdings passed two resolutions at the
Company's Adjourned Extraordinary General Meeting on June 14,
2006.

During the meeting, members considered and approved:

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

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

                   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.

In 2003, the Company announced that it was undertaking a debt
restructuring exercise involving its financial institution
lenders and other creditors of the Antah Group.  The Debt
Restructuring Exercise was subsequently approved by the
Company's scheme creditors.  However, due to the adverse
financial position of the Company and changes to certain key
components in the Debt Restructuring Exercise, the Company was
unable to proceed with its implementation.

On February 6 and May 8, 2006, the Company entered into several
agreements with certain parties to undertake a proposed
restructuring scheme with the intention of restoring the Company
onto stronger financial footing via an injection of new viable
businesses.

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.  As of April 30,
2006, Antah's total loan default plus interest has reached
MYR286,442,000.


AYER MOLEK: Seeks to Strike Out Default Judgment
------------------------------------------------
The hearing on Ayer Molek Rubber Company Berhad's application to
set aside a default judgment -- entered against it as requested
by Mirra Sdn Bhd -- has been adjourned by the Kuala Lumpur High
Court to July 14, 2006.

As reported in the Troubled Company Reporter - Asia Pacific, on
April 13, 2006, the Kuala Lumpur High Court heard a winding up
petition filed by Mirra Sdn against Ayer Molek.

Through its Petition, Mirra asserts a MYR3,224,690 claim against
Ayer Molek, as at December 8, 2005.  The claim relates to a
Judgment in Default dated November 22, 2005, obtained by Mirra
in its favor, on account of work done for Ayer Molek.  The
interest under the statement of claim is at 8% per annum on the
judgment sum of MYR2,097,316, from March 24, 1999, up to the
full settlement of the claim.

Since 1999, Ayer Molek was in constant negotiation with Mirra to
pay the amount it allegedly owed, but taking into account the
fact that the development plans by the Company, which involved
the conversion of land, was aborted.  Hence, the Company argued
that Mirra should not claim the contracted sum but rather the
abortive fees.

In August 2005, the parties had reached a settlement amount of
MYR300,000 on account of Mirra's work for Ayer Molek.  Yet, due
to several conditions, which were not fulfilled by Mirra, the
settlement arrangement came to a standstill.  Following the
breakdown of negotiations, the wind-up petition was presented
against Ayer Molek.  

Subsequently, the Court issued a wind-up order against Ayer
Molek.

Ayer Molek's solicitor immediately filed an appeal of the Wind-
Up Order with the Court of Appeals and filed an application for
stay of the execution proceeding.  On May 17, 2006, the Kuala
Lumpur High Court then granted a stay of the Wind-up Order
pending the Ayer Molek's Appeal.

The Company was also ordered to deposit MYR2,097,316 into the
Court pending the Appeal, and to abide with any further
directives.

Meanwhile, the Company has filed an application to set aside the
Default Judgment entered against it.

                 About Ayer Molek Rubber Company

Headquartered in Kuala Lumpur, Malaysia, Ayer Molek Rubber
Company Berhad is principally engaged in the leasing of its
entire plantation land to a third party.  It operates solely in
the domestic market.  Ayer Molek has suffered recurring losses
since the early 90s, which prompted the Company to propose a
rescue and restructuring scheme to fully redeem and settle
outstanding debts.   

For the quarter ended March 31, 2006, the Group booked a net
loss of MYR281,000 and no revenue.  No dividend has been paid or
proposed.  The Company's March 31, 2006, balance sheet showed
tight liquidity with current assets of MYR1,037,000 available to
pay current liabilities of MYR5,503,000 coming due in the next
12 months.


BIMB HOLDINGS: Shareholders Okay All EGM Resolutions
----------------------------------------------------
At an extraordinary general meeting of BIMB Holdings held on
June 14, 2006, the Company's shareholders have duly passed all
the resolutions set out in the Notice of EGM dated May 23, 2006.

Shareholders considered and approved:

   -- the proposed renounceable rights issue of up to
      306,938,750 new ordinary shares of MYR1.00 each in BIMB
      Holdings at an issue price of MYR1.00 per share, on the
      basis of one rights share for every two existing
      ordinary shares of MYR1.00 each held in BIMB Holdings at
      an entitlement date to be determined later;

   -- the proposed exemption under Practice Note 22.9.1 of the
      Malaysian Code on Take-overs and Mergers, 1998, to
      Lembaga Tabung Haji from having to undertake a mandatory
      offer for the remaining BIMB Holdings shares not already
      owned by it upon completion of the Proposed Rights
      Issue;

   -- the proposed acquisition by BIMB Holdings of 49,000,000
      ordinary shares of MYR1.00 each in BIMB Securities Sdn
      Bhd representing 49% of the issued and paid-up share
      capital of BIMB Sec, for a total purchase consideration
      of approximately MYR54.45 million; and

   -- the proposed amendments of the BIMB Holdings' Articles
      of Association.

                   About BIMB Holdings Berhad

Headquartered in Kuala Lumpur, Malaysia, BIMB Holdings Berhad
-- http://www.bankislam.com.my/-- is an investment holding  
company, which operates along Islamic principles.  The Company
was incorporated in Malaysia on March 20, 1997, and was listed
on the Main Board of the Kuala Lumpur Stock Exchange on
September 16 in the same year.  Core subsidiaries of the Group
are involved in various Islamic financial service activities
including banking, stock-broking, leasing and other related
services.  The Firm has incurred substantial losses since 2000
due to huge financing costs and high provisions for loss-making
offshore units.  For the quarter ended March 31, 2006, the Group
incurred a pre-tax loss of MYR67,494,000 on a revenue of
MYR300,103,000, compared with a pre-tax profit of MYR4,566,000
and revenue of MYR235,971,000 for the same quarter in 2005.


KIG GLASS: UOB Files Wind-Up Petition Against KIG Unit
------------------------------------------------------
United Overseas Bank (Malaysia) Berhad, on June 5, 2006, served
a winding-up petition to KIG Glass Industrial Berhad's
subsidiary -- KIG Ceramics Industrial Sdn Bhd.

United Overseas Bank asserts that KIG Ceramics is unable to pay
MYR3,761,911, which comprises of MYR3,022,437 due under an
Overdraft Facility and MYR739,473 due under a Banker's
Acceptance Facility with interest on MYR3,471,911 at the rate of
3.5% per annum above the Base Lending Rate at 6.4% per annum
calculated on a monthly rest basis from January 11, 2002, until
settlement with costs MYR225.

Prior to the Petition filing, United Overseas Bank had commenced
a civil action with the High Court at Johor Bahru against KIG
Ceramics.  On July 5, 2002, judgment in default of appearance
was obtained against the defendant.  Given that the 21-day grace
period to secure or compound the judgment sum to the
satisfaction of the petitioner expired, KIG Ceramics was deemed
to be unable to pay its debts as it fell due.  Hence, the
Wind-Up Petition was filed.

The Wind-Up Petition, which will be heard before the High Court
of Kuching on September 7, 2006, is expected to have financial
and operational impact on KIG Ceramics, but otherwise there will
be no impact both financial and operational on KIG Glass.

                About KIG Glass Industrial Berhad

Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass
Industrial Berhad -- http://www.kedaung.com/-- manufactured and  
sold glassware, glass blocks and carton boxes.  The firm's other
activities included manufacturing of ceramic roof tiles.  Its
operations were carried out in Malaysia and China.  Due its
inability to pay its debts, the Company ceased operation in May
2005.

As of March 31, 2006, the Company's balance sheet showed
strained liquidity with MYR139,222,000 in total current
liabilities exceeding MYR13,987,000 in total current assets,
resulting in a net current deficit of MYR94,699,000.  To this
end, KIG Glass announced its status as an affected listed issuer
pursuant to Practice Note 1/2001 and Practice Note 17/2005 of
the Listing Requirements.


MALAYSIA AIRLINES: Union Urges Carrier to Defer A380 Order
----------------------------------------------------------
The Malaysia Airlines Employees Union advised the airline to put
on hold its purchase of A380 jumbo jets until it completes its
restructuring exercises, Agence France Presse reports.

The Union, which represents almost half of the carrier's 23,000
workforce, is urging Malaysia Airlines to take advantage of the
new delays in the A380 program to postpone the delivery date of
the superjet.

As reported by the Troubled Company Reporter - Asia Pacific,
Airbus disclosed on June 13, 2006, that delivery of the A380
would be delayed by an additional six to seven months due to
production issues.

In response, Malaysia Airlines said that it was reviewing the
terms of the purchase agreement for six A380s, which were
initially scheduled to be delivered next year, the TCR-AP said.

Meanwhile, the Union suggested that Malaysia Airlines should
allow other carriers such as Singapore Airlines to use the A380
first and evaluate its effectiveness, according to AFX News.

Singapore Airlines, which has ordered 10 A380s and has taken
options for 15 more, was due to fly its first A380 on its
"Kangaroo" route from London to Sydney via Singapore in November
2006.  The start of that service will now be delayed until
December.

Analysts agree with the Union, saying Malaysia Airlines must
focus on solving its financial problems first before it takes on
the challenge of operating the A380, AFP says.

The TCR-AP, however, reported that the carrier, which ordered
the aircraft from Airbus three years ago, may insist on pursuing
the order as it is counting on the giant aircraft to help lower
operating cost by flying more people to popular destinations.

                    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.

Malaysia Airlines posted a pre-tax loss of MYR309.118 million
for the first quarter ended March 31, 2006, as against a pre-tax
profit of MYR112.017 million in the same quarter of 2005.  The
Company's balance sheet as of March 31, 2006, showed strained
liquidity with total current assets of MYR3,328,129,000
available to pay MYR4,913,488,000 in total current liabilities
due in the next 12 months.


MBF HOLDINGS: Court to Hear Pre-trial Case on July 13
-----------------------------------------------------
The pre-trial case management of the legal case between MBf
Holdings Berhad Group and MBf Leasing Sdn Bhd in the Kuala
Lumpur High Court, which has been adjourned to June 12, 2006,
has now been fixed for mention on July 13, 2006.

The hearing was postponed pending the decision on the MBf
Holdings group's appeal against the order of the Court striking
out the portion of the claim in a suit.

The Troubled Company Reporter - Asia Pacific earlier reported
that the MBF Holdings group has been granted orders on Oct. 25,
2005, to strike out the position of the claim in the suit that
relates to a settlement agreement between the parties.

The TCR-AP recounts that in October 2004, MBf Holdings, together
with its subsidiaries, lodged with the High Court of Malaya at
Kuala Lumpur, a request for an injunction against MBf Leasing,
restraining it from presenting, advertising or prosecuting a
winding up petition against the MBf Holdings group.

Together with MBf Holdings, the subsidiary-plaintiffs are:
     
     * Alamanda Development Sdn Bhd;
     * MBf Trading Sdn Bhd;
     * MBf Automobile Sdn Bhd; and
     * MBf Printing Industry Sdn Bhd

The injunction application was made following a notice served by
MBf Leasing against MBf Holdings on September 10, 2004, in
respect of a debt owed by Alamanda, MBf Property Services Sdn
Bhd, which was purportedly guaranteed by the Company.  
Subsequently, the MBf Leasing also issued letters of demand to
the Company as principal debtor/guarantor and to its
subsidiaries as principal debtors for facilities granted to its
subsidiaries.  

A MYR18-million settlement sum was agreed to be paid in cash and
assets.  In the midst of identifying the mechanics of the
settlement, the MBf Leasing issued the notice pursuant to  
Section 218 of the Companies Act 1965 on the Company.  
Subsequently, the Defendant also served the letters of demand on
the Company and its subsidiaries as principal debtor/guarantor
and principal debtors respectively of the facilities granted.

Of the total MYR77,568,321 claims asserted by MBf Leasing,
MYR25,688,140 had been accounted for in the books of MBf
Holdings group and MYR51,880,181 had been disclosed as
contingent liabilities.  

                       About MBf Holdings

Headquartered in Selangor Darul Ehsan, Malaysia, MBf Holdings
Berhad is involved in retailing and wholesaling of merchandise,
shipping, automotive and heavy earthmoving equipment and
printing of packaging boxes.  Its other activities include
copra, cocoa, coffee and tea production, issuing of credit
cards, acquiring merchants and other related services, provision
of financial services, provision of property management,
investment in properties, property development including dealing
in land and estate management, club management, development and
sale of membership of a recreational club, education and
investment holding.  The Group's operations are carried out in
Malaysia, other Asean countries including Singapore, Thailand
and Philippines, Hong Kong, South Pacific Islands, Australia and
United States of America.

Over the years of 1997 and 1998, the ravages of the Asian
economic crisis adversely affected the operations of the MBf
Group.  Given the substantial debt and accumulated losses
suffered, MBf Holdings sought protection under Section 176(1) of
the Companies Act 1965.  MBf Holdings obtained court orders to
propose a scheme of arrangement to restructure its borrowings
with its lenders and selected creditors and to restrain its
creditors from commencing recovery action.  The Scheme was
completed on June 30, 2003.  Included in the Scheme was a debt-
restructuring scheme, which excluded the lease, hire-purchase
liabilities, general unsecured liabilities and amounts owing to
subsidiary and associated companies.  The lease, hire-purchase
and general liabilities were to be addressed in the ordinary
course of business.  However, the Scheme made no provision for
the settlement of the Inter-company Loans, which the Group is
now having problems with.


MERCES HOLDINGS: Unit Served with Wind-Up Petition
--------------------------------------------------
A wind-up petition had been issued and served on Merces Holdings
Berhad's subsidiary Merces Builders Sdn Bhd, The Sun reports.

In a statement to Bursa Malaysia Securities Berhad on June 13,
2006, Merces Holdings confirmed that the wind-up petition was
presented by Prime Angle Adn Bhd on March 27, 2006.  However,
Merces said that it does not have a record on the service of the
petition and had instructed its solicitor to conduct a search at
the Court.

According to the petition, Prime Angle is asserting a claim of
MYR114,616 as payment for a judgment sum awarded by Shah Alam
Session Court, and an annual interest of 8% from December 1,
1997, until full and final settlement of the amount claimed.

The claim was in respect of the outstanding charge for labor and
materials supplied under a sub-contract painting works for a
project at Bandar Tasik Selatan, in Kuala Lumpur, Malaysia.

Apart from the amount claimed, the Merces Holdings does not
foresee any further losses except for legal costs.  

Meanwhile, Merces Buildings is taking steps to oppose the
Petition, which will be heard on August 24, 2006.

                  About Merces Holdings Berhad

Merces Holdings Berhad's principal activities are the provision
of property development and building construction works.  The
Company's other activity include investment holding.  Operations
of the Group are predominantly carried out in Malaysia.  Merces
Holdings has defaulted on several loan facilities and had faced
winding-up petitions due to unsettled financial obligations.

As of March 31, 2006, the Company's balance sheet showed
MYR106,755,000 in total assets and MYR81,088,000 in total
liabilities.  The March 31 balance sheet also showed strained
liquidity with MYR79,550,000 in total current assets available
to pay MYR81,088,000 in total current liabilities coming due
within the next 12 months.


MERCES HOLDINGS: To Hold 40th Annual General Meeting on June 30
---------------------------------------------------------------
The 40th Annual General Meeting of Merces Holdings Berhad will
be held on June 30, 2006, at Crystal 1, 1st floor, Crystal Crown
Hotel, Harbour View, 217 Persiaran Raja Muda Musa, in 42000
Pelabuhan Klang, Selangor, at 9:00 a.m.

During the meeting, members will be asked to:

   -- receive and if approved, to adopt the audited Financial
      Statements for the year ended December 31, 2005, together
      with the reports of Directors and Auditors;

   -- re-elect Lee Boon Hong @ Lee Boon Keong and Encik Mohd
      Shafizan Bin Shahbudin as directors;

   -- reappoint TH Kuan & Company as auditors and to authorize
      the Company's directors to fix the auditors'
      remunueration; and

   -- transact any other ordinary business for which due notice
      will have been given.

                  About Merces Holdings Berhad

Merces Holdings Berhad's principal activities are the provision
of property development and building construction works.  The
Company's other activity include investment holding.  Operations
of the Group are predominantly carried out in Malaysia.  Merces
Holdings has defaulted on several loan facilities and had faced
winding-up petitions due to unsettled financial obligations.

As of March 31, 2006, the Company's balance sheet showed
MYR106,755,000 in total assets and MYR81,088,000 in total
liabilities.  The March 31 balance sheet also showed strained
liquidity with MYR79,550,000 in total current assets available
to pay MYR81,088,000 in total current liabilities coming due
within the next 12 months.


METROPLEX BERHAD: High Court Winds Up Subsidiary
------------------------------------------------
The High Court of Hong Kong Special Administrative Region, on
June 9, 2006, issued an order for the winding up of Metroplex
Berhad's 59.99% owned subsidiary, Legend International Resorts
Limited, to be regulated specially by the Hong Kong High Court.

The petition was filed by Morgan Stanley Emerging Markets Inc.

The Hong Kong High Court further appointed Kelvin Edward Flynn
and Cosimo Borrellis of Alvarez & Marsal Asia Linmited as Legend
International's joint and several liquidators.

The events leading to the wind-up started when Societe Generale
Asia (Singapore) Limited and banks and other financial
institutions granted Legend International a credit facility of
US$33 million whose obligations were guaranteed by Metroplex,
pursuant to a facility agreement dated July 22, 1997.

On September 3, 2004, one of the lenders -- Oversea-Chinese
Banking Corporation Limited, Labuan Branch -- had sold and
assigned to the Petitioner the amount of US$3.9 million then due
to OCBC under the Agreement.

On November 3, 2004, Morgan Stanley's solicitors served on
Legend International a wind-up petition asserting US$5,236,020
as of October 29, 2004, due to a default in repayment.  Pursuant
to the wind-up petition, Morgan Stanley had also filed summons
for the appointment of provisional liquidators for Legend
International.

Legend International is a private company limited by shares and
incorporated in Hong Kong on May 25, 1990, under the Companies
Ordinance of Hong Kong.  The authorized share capital of Legend
International is HKD120,000,000 comprising 120,000,000 ordinary
shares of HKD1.00 each of which 115,954,000 ordinary shares of
HKD1.00 each have been issued and fully paid-up.

The shareholders of Legend International are:

   * Metroplex Berhad holding 69,562,400 shares (59.99%);

   * Sinophil Corporation holding 46,381,600 shares (40.00%);
     and

   * Metroplex Administration Sdn Bhd holding 10,000 shares
       (0.01%).

Sinophil is a 21.9% associated company of Metroplex BerhadB
while Metroplex Administration is a wholly owned subsidiary of
Metroplex Berhad.

Legend International is principally an investment holding
company with its registered branch in Philippines, which is
principally involved in resort, hotel and casino operations. The
subsidiaries of Legend International are currently dormant.

There is no operational impact on Metroplex Berhad Group.  As
the financial results of Legend International and its
subsidiaries were deconsolidated from the Group's results
effective December 21, 2004, the appointment of Liquidators will
have no financial impact on Metroplex Berhad Group.

Metroplex is currently seeking legal advice as to the
appropriate action to take in respect of the appointment of
Liquidators for Legend International.

                     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 wind-up petition
succeeds, the Company will be put into liquidation.   


PETALING BERHAD: Proposed Acquisition Wins FIC's Favor
------------------------------------------------------
The Foreign Investment Committee, on June 8, 2006, approved the
proposed acquisition by Petaling Tin Berhad of all of Terus
Idaman  Sdn Bhd's rights, title, interests and obligations for
the remaining term of 87 years of Terus Idaman/s sub-lease for a
parcel of leasehold land for a total cash consideration of MYR38
million.

The FIC stated that it has no objections to the Proposed
Acquisition provided that:

   -- the property acquired will be developed as housing or
      commercial projects, and at least 75% of the total value
      of building materials and fittings used for the
      construction project should be of local materials; and

   -- the Company will submit a certification issued by a
      certified consultant regarding the total value of the
      local building materials and fittings used within six
      months after the commencement of the construction
      project or upon the completion of the project.

                   About Petaling Tin Berhad

Headquartered in Kuala Lumpur, Malaysia, Petaling Tin Berhad
engages in property development, property investment and
investment holding.

The Company has applied to regularize its financial condition
after incurring substantial losses in the past years.  In
September 2005, the Company was released from the Practice Note
17 category after its quarterly report for the period ended July
31, 2005, showed that the Company's business or operations
generated a revenue on a consolidated basis of MYR66.946
million, which represents more than 5% of the issued and paid-up
capital of the Company.  The Company is continuously working on
its recovery.

For the first quarter ended January 31, 2006, Petaling Tin
Berhad has recorded a pre-tax loss of MYR1,884,386, as compared
to pre-tax loss of MYR407,372 for the quarter ended January 31,
2005.  Despite the losses, financial year 2006 is expected to be
positive in view of the Government's recent fiscal measures to
rebuild overall consumer confidence.


SETEGAP BERHAD: Obtains Restraining Order Extension
---------------------------------------------------
The High Court of Malaya, Kuala Lumpur, extended an Interim
Restraining Order to Setegap Berhad until July 25, 2006.

The Troubled Company Reporter - Asia Pacific recounts that in
relation to Setegap Berhad's proposed debt restructuring, the
High Court of Malaya, Kuala Lumpur, on April 27, 2006, granted
an Interim Restraining Order until June 15, 2006, on the
condition that the Company's 19 secured lenders will be
permitted to enforce the assets charged to them.

The Court also appointed Lai Yoke Heong as Setegap's interim
independent director.

As reported by the TCR-AP, Setegap had announced its proposed
restructuring and regularization plan on January 11, 2006.

The Plan consists of:

   -- a proposed debt settlement of all outstanding debt owed
      by the Company to its secured lenders and trade
      creditors for a total of MYR87.6 million;

   -- a proposed exchange of Setegap shareholders' ordinary
      shares of MYR1.00 each with Newco, or new company,
      shares on the basis of one Newco share for every five
      existing Setegap shares.

   -- a proposed transfer of listing status to Newco; and

   -- a proposed disposal by the Newco of the entire issued
      and paid-up capital of Setegap for a nominal
      consideration of MYR1.00.

                      About Setegap Berhad

Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's
principal activities consist of the construction and maintenance
of roads, railways and building, including services rendered on
quarrying.  The Company's other activities include manufacturing
and selling offroad construction equipment, asphalt plants,
mixing plants, asphalt emulsions and premix.  The Group also
provides mechanical and electrical services, leases machinery
and investment holding.  

Setegap's cash flow and profitability were adversely affected by
the Asian financial crisis in 1997/98.  In August 1999, Setegap
had sought the assistance of the Corporate Debt Restructuring
Committee on the restructuring of its MYR95.29-million debt.  
The Company had, in October 2000, entered into a debt
restructuring agreement with its creditors.  But because of the
Company's unsuccessful attempts to raise funds to regularize its
debt problems, the October 2000 debt restructuring agreement was
technically in default in 2003.  

Setegap and its subsidiaries suffered losses for the past four
consecutive financial years since the financial year ended
December 31, 2002, which had led to a negative unaudited
shareholders' fund of MYR98.25 million as of Dec. 31, 2005.  On
November 11, 2005, Bursa Securities had served the Company with
a notice to show cause on the delisting of the securities of the
Company.  Without a scheme to regularize its financial position,
Setegap will risk being delisted.  On February 24, 2006, Bursa
Malaysia required the Company to submit its proposed
regularization plan to relevant authorities to avoid de-listing
procedures.

As of March 31, 2006, the Company's balance sheet showed
MYR71,401,000 in total assets and MYR176,007,000 in total
liabilities, resulting in a stockholders' equity deficit of
MYR104,606,000.  The Company's March 31 balance sheet also
revealed strained liquidity with MYR49,721,000 in total current
assets available to pay MYR171,768,000 in total current
liabilities coming due within the next 12 months.


SUREMAX GROUP: Works to Provide Solvency Declaration
----------------------------------------------------
Suremax Group Berhad's board of directors are of the opinion
that the Company is solvent as it is able to settle its debts in
full within a period not exceeding 12 months from June 12, 2006.

The Company's board now undertakes to provide the Bursa Malaysia
Securities Berhad with a Declaration of Solvency.

As reported by the Troubled Company Reporter - Asia Pacific on
June 5, 2006, Suremax's management has proposed to undertake
certain measures to address its default issues and improve the
Group's financial performance.

According to TCR-AP, the Group plans to form a strategic
alliance with respectable business partners, as well as joint
ventures with local and international contractors to undertake
contract work.  The Group will also restructure its existing
debt on terms acceptable to the Group and its lenders.

With the implementation of these strategies coupled with buoyant
economic environment and barring unforeseen circumstances, the
Group expects to improve its performance in the short and medium
term, the TCR-AP said.

                       About Suremax Group

Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad is
engaged in property development, construction, trading in
construction materials and sub-contracting works.  The firm's
other activities include the provision of property management
services and building construction.  The Group is also involved
in the manufacture and sale of ready mixed concrete.  Suremax
Group has suffered losses since 2004 due to sluggish market
demand.  For the second quarter of the financial year ended
August 31, 2006, Suremax booked a pre-tax loss of MYR1.32
million.  The Company is also trying to avert a series of
winding up actions against its subsidiaries.  On May 9, 2006,
Suremax was identified as a Practice Note 17 company and was
required to regularize its financial condition pursuant to the
Bursa Malaysia Securities Berhad's Listing Requirements.


TENAGA NASIONAL: Strikes Off Wholly Owned Subsidiary
----------------------------------------------------
Tenaga Nasional Berhad's wholly owned subsidiary -- Remaco
Energy Ventures Limited -- has been struck off from the list of
the Registrar of the Companies of the Republic of Mauritius.

As such, Remaco Energy ceased to be a subsidiary of Tenaga
Nasional.

The Troubled Company Reporter - Asia Pacific recounts that
Tenaga's board of directors on June 17, 2005, approved the
proposed voluntary wind-up of all dormant companies within the
Tenaga Nasional Berhad Group.

                      About Tenaga Nasional

Headquartered in Kuala Lumpur, Malaysia, Tenaga Nasional Berhad
-- http://www.tnb.com.my/-- is engaged in the generation,  
transmission, distribution and sale of electricity.  The Company
also manufactures, sells and repairs transformers and
switchgears.  It is also involved in provision of project
management, consultancy, engineering works, contracting,
trading, risk management, risk surveys, insurance, research and
development, property management, energy project development and
investment holding services.  It also undertakes repairs and
maintenance of motor vehicles.  The Group operates in Malaysia
and Mauritius.  The Company is currently undertaking liability
management exercises, which are expected to extend the Company's
debt maturity profile and reduce refinancing risk.  Moody's gave
the Company a 'Ba' rating due to the Company's relatively high
financial leverage and significant PPA obligations, accounting
for approximately 42% of total operating costs in FY2004.


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

HACIENDA LUISITA: DAR Willing to Talk on Land Distribution
----------------------------------------------------------
The Department of Agrarian Reform is willing to sit down to an
explanatory talk with Hacienda Luisita, Inc., on how to
distribute its 6,000-hectare sugar estate to tenant farmers, as
long as the Company would initiate the talks, the Manila Times
says.

DAR undersecretary for field operations Narciso Nieto said that
they would have to wait for the final ruling of the Supreme
Court before they could distribute Hacienda Luisita's land.

The Troubled Company Reporter - Asia Pacific had reported that
on June 16, 2006, the Supreme Court issued a temporary stay
order on the land distribution by DAR, as requested by Hacienda
Luisita on June 8, 2006, as the Department had earlier dismissed
Hacienda Luisita's 1989 stock distribution agreement with its
farmer beneficiaries in lieu of giving them their own property.

The Times adds that the DAR's talks with the Hacienda would be
conducted in compliance with agrarian reform law, and Mr. Nieto
said that they would welcome a "voluntary offer to sell" option
by the Company.

                          *     *     *

Headquartered in Tarlac City, Philippines, Hacienda Luisita
Incorporated is a sprawling farm owned by the family of former
Philippine President Corazon Cojuangco Aquino.  Its woes started
when workers staged protests over the displacement of Hacienda
workers affected by the closure of sugar mill Central Azucarera
de Tarlac.  The decision to shut down Central Azucarera was due
to heavy losses incurred from falling sugar prices both locally
and abroad.  Tension in the sugar estate escalated after a
reported violent dispersal of striking workers at the Hacienda
on November 16, 2004, that resulted to the death of seven
persons.  In an effort to resolve the dispute, Hacienda Luisita
proposed a stock distribution option, which was later junked by
the Government due to violations of the provisions of the
Comprehensive Agrarian Reform Law.  


LAFAYETTE MINING: Has to Pay PHP10-Million Fine Before Test Run
---------------------------------------------------------------
Lafayette Philippines, Inc., still has to pay a fine of
PHP10.4 million before it can conduct a Government-approved test
run to determine if its repairs on its Rapu-Rapu mining plant
comply with environmental standards, the Philippine Star
reports, citing Department of Environment & Natural Resources
Secretary Angelo Reyes.

A report by the Troubled Company Reporter - Asia Pacific on
June 14, 2006, indicated that the Philippine Government had
approved Lafayette's reopening of its Rapu-Rapu mine for 30 days
to conduct a test run, after the Company was forced to suspend
operations following two spill incidents in October 2005, which
had polluted a nearby river.

Mr. Reyes admitted, however, that he has yet to sign a formal
letter of demand to be sent to the Company, which had been
delayed as he was out of town and could not attend to it.

According to the Star, a DENR team will monitor the Company's
operations during the test run, which has three phases.  The
first phase, which lasts five days, entails the DENR's
monitoring of Lafayette's water system to determine if there are
leaks in its pumping system; the second phase, lasting nine
days, will have the DENR team gathering materials from the
Company's open pit and studying the system's electromechanical
adequacy; and the third and final phase entails the gathering of
rock samples for 16 days.

                          *     *     *

Lafayette Mining Philippines, Incorporated, is a subsidiary of
Australian firm Lafayette Mining, Incorporated --
http://www.lafayettemining.com/-- which has been listed on the
Australian Stock Exchange since August 1997.  Lafayette
Philippines is currently developing a polymetallic project
involving copper, gold, zinc and silver on Rapu-Rapu Island,
Albay.

The Department of Environment and Natural Resources' former
secretary, Mike Defensor, ordered the closing of Lafayette
Philippines in 2005 when the Company's mine tailings were
accidentally spilled into the Albay Gulf last October, killing
thousands of fish and destroying the livelihood of fishermen in
the area.  The Company was also fined PHP10.7 million for
violating the Clean Water Act and its environmental compliance
certificate.  The Government then created the Rapu-Rapu Fact
Finding Commission in March 2006 to investigate the spills and
"evaluate all the facts and circumstances surrounding the
alleged threat to people's health and environmental safety" and
to submit a report before the mine could be reopened.

After several delays, the Commission submitted its report last
month, recommending the closure of Lafayette's Rapu-Rapu mining
project since it discovered that the Company "had continued to
dispose of its mine waste into creeks after the spill incidents,
despite the order of the Mine and Geosciences Board to stop the
disposal," the TCR-AP relates, citing a Manila Times report.  
The Commission also sought a moratorium on mining in Rapu-Rapu,
since the mine had violated 11 of the 29 conditions of its
certificate.  However, the Department of Environment & Natural
Resources, on June 13, 2006, allowed the Company to reopen its
mine to conduct a test run after it had made repairs in
accordance with environmental standards, under strict
conditions.


NEGROS NAVIGATION: Postpones Vessel Sale Due to Low Scrap Value
---------------------------------------------------------------
Negros Navigation Co. decided to delay the sale of two shipping
vessels scheduled this month, since the scrap value for the
vessels was too low, the Manila Times writes.

Negros Navigation Chairman Sulpicio Tagud said that they are
observing the market, and aim to sell the vessels, aged 28 to 30
years, within the year.

Negros Navigation plans to offer the Mary Queen of Peace vessel
for PHP224 million, and is seeking PHP112 million for the
Princess of Negros vessel, the Times relates.

The Company also plans to sell two other vessels, the San
Lorenzo Ruiz and the San Sebastian, for PHP112 million and
PHP44.8 million by 2008.

Proceeds from the sales would go toward buying newer and more
efficient ships, Mr. Tagud told the Times.

Negros Navigation Company, Incorporated --
http://www.negrosnavigation.ph/-- is the shipping unit of Metro  
Pacific Incorporated.  It owns, maintains, services and operates
vessels and engages in domestic shipping operations.  Presently,
the Company operates seven passenger and cargo shipping vessels
and two cargo container shipping vessels which service 14 ports.  
Nenaco also provides trucking and forwarding services, and
operates shuttle buses and besta vans within Negros Island and
offers domestic tour and other land transport services, as well
as ticketing services.

In December 2003, the Philippine Securities and Exchange
Commission ordered Negros Navigation to explain five accounting
discrepancies in its 2002 audited financial statement, which may
have bloated its earnings.

In March 2004, Negros Navigation entered into talks with
Tsuneishi Heavy Industries to settle the Company's then
PHP100-million debt.  The TCR-AP reported that as of March 2006,
that Negros Navigation's total debt is projected at
PHP2.4 billion.

Due to its financial condition, Negros Navigation could not pay
its debts as they matured.  Thus, the Company filed for
rehabilitation before the Manila Regional Trial Court on Oct. 6,
2004.  Subsequently, the Court approved the Company's 10-year
restructuring plan recommended by its receiver, Monico Jacob, a
year later.

Under the court-approved rehabilitation plan, Negros Navigation
proposed to settle its financial obligations through cash
settlement, dacion en pago of passage tickets and cargo space,
debt conversion into convertible shares at par value, and the
restructuring of balance into long-term notes or preferred
shares.  The Court allowed the Company to restructure its total
secured debt for 10 years, with a one-year grace period on
interest payments and a three-year grace period on the
principal.   

The TCR-AP reported on June 6, 2006, that Negros Navigation
posted a PHP17-million net profit in fiscal year 2005, against a
net loss of PHP480 million in 2004, thanks to reduced costs and
the implementation of cost-cutting measures, such as employee
downsizing to 411 from 600.  The Company also reported an 18%
rise in passenger volume and a 12% increase in cargo volume.


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

APAC TECH: Faces Wind-Up Proceedings
------------------------------------
Evosys Technology (S) Pte Limited on June 8, 2006, filed before
the High Court of the Republic of Singapore an application to
wind up Apac Tech Systems Pte Limited trading as Harvest Tech &
Distribution.

The High Court will hear the wind-up petition on June 30, 2006,
at 10:00 a.m.

Contact: Ang & Partners
         Solicitors for the Plaintiff
         150 Beach Road #32-00
         The Gateway West
         Singapore 189720


GEOCON PILING: Wind-up Application Hearing Fixed on June 30
-----------------------------------------------------------
The High Court of the Republic of Singapore will hear a winding-
up petition against Geocon Piling & Engineering Pte limited on
June 30, 2006, at 10:00 a.m.

Geocon's creditor -- Resources Piling Pte Limited -- filed the
wind-up application on June 1, 2006.

Contact: Infinitus Law Corporation
         Solicitors for the Plaintiff
         No. 77 Robinson Road
         #16-00 SIA Building
         Singapore
       

LOCKWOOD SINGAPORE: Creditors' Proofs of Claim Due on July 17
-------------------------------------------------------------
Creditors of Lockwood Singapore Pte Limited are required to
submit their proofs of claim to Liquidator Francis Teo Beng Hock
by July 17, 2006.

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

Contact: Francis Teo Beng Hock
         Liquidator
         c/o 152 Ubi Avenue 4 #03-02
         Armorcoat Technologies Building
         Singapore 408826


MBF PROPERTY: To Declare First and Final Dividend June 23
---------------------------------------------------------
MBf Property Services (Singapore) Pte Limited notifies parties-
in-interest of its intention to pay its first and final dividend
of 0.14384% on June 23, 2006.

Contact: Chia Soo Hien
         Ng Geok Mui
         BDO raffles
         Liquidators
         5 Shenton Way
         #07-01 UIC Building
         Singapore 068808


PACIFIC RECREATION: Court to Hear Wind-Up Petition on July 7
------------------------------------------------------------
An application for the winding-up of Pacific Recreation Pte
Limited will be heard before the High Court of the Republic of
Singapore on July 7, 2006, at 10:00 a.m.

The wind-up petition was filed by United States-based S.Y.
Technology Incorporated on June 9, 2006.

Contact: Yeo Wee Kiong Law Corporation
         Solicitors for the Plaintiff
         No. 1 Raffles Places
         #39-02 OUB Centre
         Singapore 048616


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

MANAGER MEDIA: Auditor Expresses Concern on Capital Deficit
-----------------------------------------------------------
Manager Media Public Company Ltd showed a widening capital
deficit with a THB336.88-million a capital deficiency as of
March 31, 2006, compared with the THB333.99 million as of
December 31, 2005.

Manager Media's balance sheet for the quarter ended March 31,
2006 showed THB268.685 million in total assets compared with
THB605.565 million total liabilities resulting to the big
capital deficit.

The Company's balance sheet also showed strained liquidity with
THB175.951 million in total current assets available to pay
THB253.918 million in total current liabilities coming due
within the next 12 months.

The approved rehabilitation plan of the Company and its
subsidiaries require them to complete the rehabilitation within
a fixed timeframe, set by the Court to August 3, 2006.

Prawit Wipusirikup, of RSM Nelson Wheeler Audit Limited, raised
a significant doubt on the Company's and its subsidiaries'
ability to continue as going concerns, after auditing their
financial statements for the quarter ended March 31, 2006.

According to Mr. Wipusirikup, the continuing business operations
of the Group now substantially depends on:

   a. the Group's ability to complete the business
      rehabilitation plan within the timeframe set by the court;
      and

   b. the ability of the Group to operate successfully in the
      future and generate adequate cash flows from operations.

The Company's first quarter 2006 report is available for free
at:

   http://bankrupt.com/misc/Manager_Media.xls

                          *     *     *

Headquartered in Bangkok, Thailand, Manager Media Group Public
Company Limited -- http://www.manager.co.th/-- publishes a  
variety of daily, weekly, and monthly publications.  Periodicals
include Manager monthly magazine, Manager weekly newspaper,
Manager daily newspaper, and Thai Investment weekly magazine.
The Company also partners with the Vietnam News Agency to
publish The Vietnam News, an English-language daily newspaper in
Vietnam.  
  
Manager Media has been operating with a capital deficit for
years, the biggest of which totaled around THB2 billion both in
the years 2001 and 2002.  In the same years, the Company posted
net losses of THB54.05 million and THB24.22 million,
respectively.

The Company is in the process of business rehabilitation.  In
2004, the Civil Court approved by the Company's financial
creditors and Manager Media's amended business rehabilitation
plan.  On May 31, 2004, the Company appointed the Thai Military
Bank Public Company Limited as its financial advisor.   




                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Catherine Gutib, Valerie Udtuhan, Francis
Chicano, Erica Fernando, Catherine Gutib, Reiza Dejito, Freya
Natasha Fernandez, and Peter A. Chapman, Editors.

Copyright 2006.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
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