TCRAP_Public/060622.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

             Thursday, June 22, 2006, Vol. 9, No. 123

                            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
AIR NEW ZEALAND: Accused by Origin Pacific of Predatory Pricing
AIR NEW ZEALAND: Makes Oamaru Its 26th New Zealand Destination
ALLCO STEEL: Opts to Halt Operations
AWB LIMITED: Court Stops Commissioner Cole from Accessing Docs

BS & L PTY: To Declare Dividend on June 26
CENTRAL COAST: Winds Up Business
COLLECTIVE EFFORT: Enters Voluntary Liquidation
CUSTOM ERECT: Members to Receive Wind-up Report Today
ELLINGTON EAST: Creditors' Proofs of Debt Due on July 21

EVANS & TATE: Neqtar Delays Mildura Winery Acquisition
FOREST VIEW: Court to Hear Liquidation Petition on June 26
FRANBEL PTY: Names Peter Ngan as Liquidator
GO SUMMERFIELD: Supreme Court Orders Wind-up
J BOLTON: Liquidator to Explain Wind-up to Members

K.V.M. INVESTMENTS: Prepares to Pay Dividend to Creditors
MANNAWA PTY: Decides to Close Operations
MARNOTTA PTY: Receivers Resign from Post
MICONOH PTY: Final Meeting Scheduled on June 23
MOERLONG PASTORAL: Members Agree on Voluntary Wind-up

NON TRADING: Court to Hear Liquidation Petition on June 26
PB&CS PROPERTIES: Appoints Mountfort as Liquidator
PENN YAN: To Distribute Dividend on June 26
PLYSELL PTY: Inability to Pay Debts Prompts Wind-up
PROVINCIAL FINANCE: Receivers Provide Update on Receivership

QANTAS AIRWAYS: CEO Interested in Extending Term Beyond 2007
QANTAS AIRWAYS: To Restructure Catering Operations
QANTAS: Says Profit For 2005/2006 at Lower End In Forecasts
RILEY INVESTMENTS: Creditors Must Prove Debts by July 6
ROOFING SERVICES: Liquidation Petition Hearing Fixed on June 26

SCOTTISH STONE: Faces Liquidation Proceedings
SN & J NICHOLLS: Creditors Must Prove Debts by June 30
SPIDER EYE: Placed Under Voluntary Liquidation
TELSTRA CORPORATION: Will Eliminate 2,590 Jobs Over Two Years
VOLVO CONSTRUCTION: Liquidator Presents Wind-up Report

WILKY'S BUILDERS: Appoints Joint Liquidators
WILLIS TRUST: Hearing of CIR's Liquidation Bid Set on June 29
WISE IT: Official Receiver Named
WYKTON PTY: Members Resolve to Wind Up Firm


C H I N A   &   H O N G  K O N G

ALL-LINE LIMITED: Faces Wind-up Proceedings
ARCHCORP DEVELOPMENT: Seto Named as Official Liquidator
DELTA ENERGY: Joint Liquidators Step Aside
DIPLOCACUS LIMITED: Members & Creditors Meetings Set July 18
ENRON (H.K.): Creditors Name Replacement for Liquidator Tse

GLOBAL QUALITY: Shareholders Appoint Liquidator
G + H MONTAGE: Liquidator Ceases to Act for Company
HIP HING TIMBER: Wind-up Petition Hearing Set on July 12
HUTCHISON ENTERPRISES: Members Final Meeting Set on July 17
HUTCHISON SIX: Liquidators to Present Wind-up Report

LIGHTAL LIMITED: Faces Winding-up Proceedings
LINKDAY LIMITED: Creditors' Proofs of Debt Due on July 16
LONE STAR: Shareholders Opt for Voluntary Wind-up
MANDRA FORESTRY: S&P Lowers Ratings to B- from B
RITEK CORP: S&P Shaves B+ Rating to B

STARTEC GLOBAL: Members & Creditors Final Meetings Set July 21
STOCKWELL ONLINE: Members to Receive Liquidator's Report
THERMAL INTERNATIONAL: Appoints Official Liquidator
UNITED WORLD: Creditors Must Prove Debts by July 17
* Iron Ore Contract Price Hike to Unite Steel Industry


I N D I A

BHARAT PETROLEUM: Take Up New LPG Delivery Model to Curb Losses
GENERAL MOTORS: S&P Rates Proposed $4.48-Bln Bank Facility at B+
GENERAL MOTORS: Moody's Rates Proposed USD4.5-Bln Facility at B2
HINDUSTAN ANTIBIOTICS: To Receive Rescue Fund in August


I N D O N E S I A

MERPATI NUSANTARA: Seeks to Buy 22 New Aircraft
PERUSAHAAN LISTRIK: Yogyakarta Quake Leads to IDR60-Bln Loss


J A P A N

EBARA CORPORATION: Fitch Assigns BB+ Issuer Default Ratings
HANKYU HOLDINGS: Fitch Affirms BB+ IDR and Debt Rating
JAPAN AIRLINES: Averts Strike With Bonus Agreement


K O R E A

DAEWOO ENGINEERING: Selection of Bidder Postponed
HYNIX SEMICONDUCTOR: Reports 61% Decline in Net Income
HYNIX SEMICONDUCTOR: WTO to Resolve Japan Tariff Disputes
HYNIX SEMICONDUCTOR: Will Sell US$2.7-Bil of Shares and Bonds
* Fitch Affirms Korea's A+ Rating, with Stable Outlook

* State-Run Asset Manager to Increase Sales to KRW1 Trillion


M A L A Y S I A

AKTIF LIFESTYLE: Inks Restructuring Deal to Avert Delisting
ANTAH HOLDINGS: Resumes Shares Trading
CHASE PERDANA: In Talks to Defer Stock Redemption Anniversary
JIN LIN: Restructuring Proposal Wins Shareholders' Approval
MALAYSIA AIRLINES: Unveils Exit Plan on Non-trunk Local Routes

PANGLOBAL BERHAD: Has Until Dec. 2007 to Meet Equity Condition
PROTON HOLDINGS: May Sell Stakes to Expand Overseas
PSC INDUSTRIES: Shareholders Pass All AGM Resolutions
SUREMAX GROUP: Alliance Merchant Asserts MYR2.8-Million Claim
TRU-TECH HOLDINGS: Mahabuilders Wants to Ink Restructuring Deal

TRU-TECH HOLDINGS: Defaults on Monthly Sinking Fund Deposit
UNITED CHEMICAL: Provides Default Update


P H I L I P P I N E S

EAST ASIA POWER: Auditor Raises Going Concern Doubt
STENIEL MANUFACTURING: To Seek Approval of Restructuring Plan


S I N G A P O R E

FHTK HOLDINGS: Lists and Quotes Renounceable Rights Shares
L&M GROUP: Unit Disposes of Property for SGD5.5 Million
LST CONSTRUCTION: Court to Hear Wind-Up Petition on June 30
MEDIASTREAM LIMITED: Creditors Approve Professional Fees
MILLENIUM-WESTMONT: Creditors Must Prove Claims by June 30

X'PRESS LOGISTICS: Court Orders Winding Up

     - - - - - - - -

============================================  
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 of New South Wales on May 11, 2006, ordered
the winding up of A&G Services Pty Limited and appointment of
Steven Nicols as liquidator.

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


AIR NEW ZEALAND: Accused by Origin Pacific of Predatory Pricing
---------------------------------------------------------------
Origin Pacific intends to file a complaint with the Commerce
Commission over what it calls "predatory pricing" by Air New
Zealand, NewsTalkZB reports.

Stuff.co.nz says that the complaint will be Origin Pacific's
second one against Air New Zealand.

Stuff.co recounts that, earlier this year, the Commerce
Commission had dismissed a complaint by the privately owned
Origin Pacific airline about Air New Zealand's tactics.

Origin Pacific's first complaint came after Air New Zealand
launched an identical service to Origin's planned Christchurch-
Hamilton flight on the same days at the same times, but using a
bigger aircraft.  Origin decided it could not compete and
surrendered the route.

However, according to the report, the Commerce Commission
determined that there was no case to answer after more than two
years of investigation.

NewsTalkZB relates that in its second complaint, Origin Pacific
accuses Air New Zealand of price gouging in regions where it has
a monopoly to fund cheaper flights on routes served by Origin.  

Stuff.co cites Origin Pacific as claiming that it was the
subject of Air New Zealand's continuing targeting, aimed at
regaining its monopoly status on domestic routes.

Specifically, Origin Pacific expressed concern about new Air New
Zealand services between Hamilton and Nelson, and Palmerston
North and Nelson, which started in late April 2006.  Origin
Pacific contended that Air New Zealand has also introduced
special fares on Origin's flight routes for Wellington-Blenheim,
Auckland-Nelson, and Nelson-Christchurch.

The report cites Origin Pacific spokesman Brendon Burns as
saying that its second case against the national carrier is
stronger because Air NZ's leasing of aircraft to service the
route added weight to the case.

Mr. Burns asserted that "going out and leasing aircraft is
against the spirit of our competition laws."  He also said that
"it is ironic Air New Zealand has been complaining of unfair
competition on Tasman routes, yet it will lease aircraft to
compete against Origin."

Stuff.co notes, however, that Air New Zealand dismissed Origin's
assertions as "a waste of time."

                   About Air New Zealand  

Based in Auckland, New Zealand, Air New Zealand is the country's
flag air carrier, with domestic and international passenger and
freight operations, and an aviation engineering business.  

As reported in the Troubled Company Reporter - Asia Pacific on
September 2, 2005, Moody's Investors Service affirmed its Ba1
issuer rating on Air New Zealand Limited after the airline
announced its annual results for FY2005.  Air NZ's rating
reflected its dominant position in the New Zealand domestic
market, with around 80% market share, and the profitability of
domestic operations following their restructuring to a low-cost
network model.  Also supporting Air NZ's rating was its solid
liquidity position, with cash balances of NZ$1,071 million held
as at June 30, 2005.  However, while Air NZ has a solid position
in New Zealand and other parts of the international network are
performing well, intense competition on trans-Tasman routes has
resulted in it being unprofitable for Air NZ.  International
competition also limits Air NZ's ability to expand.  Its
management is also aware of the airline's vulnerability to
external shocks and the actions of key competitors.


AIR NEW ZEALAND: Makes Oamaru Its 26th New Zealand Destination  
----------------------------------------------------------------
Air New Zealand will commence regular services between Oamaru
and Christchurch on August 7, 2006, making a total of 26
destinations around New Zealand.

The new service, which will be operated by Air New Zealand link
carrier Eagle Air using a chartered J32 19 seat turbo-prop
aircraft, marks a return to Oamaru for the airline after some 17
years.

Initially, there will be six return flights per week with one
return trip daily Monday-Friday during peak morning and evening
times, and a Friday night departure with return to Oamaru on
Sunday.  Sales of the new service commence today, June 22, 2006.

Air New Zealand Group General Manager Norm Thompson said that
the new service "is a good example of Air New Zealand's
commitment to support the smaller regional communities of New
Zealand by providing direct links to the larger centers."

"To this end, our domestic network is continually under review
and if we do not have the available 19-seat aircraft ourselves,
we will use our support operators, Vincent Aviation or Air
National, as we currently do on a number of other regional
routes," Mr. Thompson added.

"An added advantage is that the use of the chartered aircraft
will free up one of ours and enable Eagle Air to provide extra
Christchurch-Wanaka services during the peak travel ski season,"
he said.

                   About Air New Zealand  

Based in Auckland, New Zealand, Air New Zealand is the country's
flag air carrier, with domestic and international passenger and
freight operations, and an aviation engineering business.  

As reported in the Troubled Company Reporter - Asia Pacific on
September 2, 2005, Moody's Investors Service affirmed its Ba1
issuer rating on Air New Zealand Limited after the airline
announced its annual results for FY2005.  Air NZ's rating
reflected its dominant position in the New Zealand domestic
market, with around 80% market share, and the profitability of
domestic operations following their restructuring to a low-cost
network model.  Also supporting Air NZ's rating was its solid
liquidity position, with cash balances of NZ$1,071 million held
as at June 30, 2005.  However, while Air NZ has a solid position
in New Zealand and other parts of the international network are
performing well, intense competition on trans-Tasman routes has
resulted in it being unprofitable for Air NZ.  International
competition also limits Air NZ's ability to expand.  Its
management is also aware of the airline's vulnerability to
external shocks and the actions of key competitors.


ALLCO STEEL: Opts to Halt Operations
------------------------------------
At a general meeting on May 11,2006, the members of Allco Steel
(Queensland) Pty Limited decided to close the Company's business
operations and appoint M. C. Smith as liquidator.

Contact: M. C. Smith
         Liquidator
         c/o McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia


AWB LIMITED: Court Stops Commissioner Cole from Accessing Docs
--------------------------------------------------------------
On May 30, 2006, AWB Ltd. issued a statement in its Web site
that it will ask the Federal Court to adjudicate on which AWB
documents are protected by legal professional privilege in
proceedings before the Cole Inquiry.

AWB asserts that having the Federal Court decide on this issue
will accelerate the process, provide certainty, and minimize the
costs and duration of the Cole Inquiry.

This statement came after the Federal Court of Australia
rejected AWB's application to prevent a draft letter of apology
pertaining to the Iraqi kickback scam from being released to the
public.

As reported in the Troubled Company Reporter - Asia Pacific on
March 28, 2006, AWB tapped United States-based public relations
and crisis specialist, Peter Sandman, who drafted the letter of
apology in December 2005 to the Australian people in order to
counter any corporate scandal relating to the kickback payments
that AWB allegedly made to Saddam Hussein's regime through the
United Nation's oil-for-food program in Iraq.

However, according to the TCR-AP report, former AWB managing
director Andrew Lindberg and the AWB Board junked the apology
plan and decided to go to the Cole Inquiry instead and profess
ignorance and innocence.  Mr. Lindberg, who has since resigned,
had told the Cole Commission that he had no knowledge of the
Iraqi kickbacks or of the sham Jordanian trucking company, Alia,
which was used to funnel the illegal payments

In a follow-up report, the Sydney Morning Herald relates that
last week, Commissioner Terence Cole, who leads the inquiry into
AWB, has been given wider powers under new laws passed by the
Australian Senate.

According to ABC Rural, recent changes to the Royal Commissions
Act now give Commissioner Cole the power to examine the
documents, and decide if the privilege claim is valid.

However, the Herald Sun relates, AWB obtained on June 20, 2006,
an order from Justice Susan Kenny of the Federal Court in
Melbourne prohibiting Commissioner Cole from accessing the
documents.

At AWB's request, the Federal Court put Commissioner's powers on
hold until the Company's appeal against having to provide the
documents was heard before the court next month.

During the hearing, it was disclosed that Commissioner Cole
accidentally received about 20 documents from AWB, which AWB
insisted are covered by legal professional privilege, the Herald
Sun relates.

ABCnewsonline says that the Federal Court is due to hear AWB's
claim that the papers are all privileged in July 2006.

                          About AWB   

AWB Limited -- http://www.awb.com.au/-- is Australia's leading  
agribusiness and one of the world's largest wheat marketing
companies.  It is also one of Australia's top 100 publicly
listed companies.  The Company is the exclusive manager and
marketer of all Australian bulk wheat exports through what is
known as the Single Desk.  The Company markets wheat, and a
range of other grains, into more than 50 countries, with
Australian wheat exports worth up to $5 billion per year.  AWB's
footprint includes more than 430 outlets through its subsidiary
landmark and has offices across the world.  The company employs
more than 2,700 staff reaching over 100,000 customers.  AWB is
also one of the nation's largest suppliers of rural merchandise,
distributors of fertilizer, marketers of livestock, brokers of
rural real estate and handlers of wool.  

Previously a low profile organization, AWB made headlines in
late 2005 when it was accused of knowingly paying AU$290 million
in kickbacks to the Government of Iraq, under Saddam Hussein's
administration, through the United Nation's oil-for-food
program.  A UN report then found out that AWB paid the kickbacks
to a Jordanian trucking company linked to Hussein's deposed
regime.  The Australian Government then appointed a commission,
headed by retired judge Terence Cole, to investigate into the
Company's role in and the Government's alleged "knowledge" of
the scandal.  The "Cole Inquiry" is currently underway.  The
scandal is anticipated to create great political repercussions
to the Australian Government, given the country's contribution
to military action against President Hussein in the 2003
invasion of Iraq.


BS & L PTY: To Declare Dividend on June 26
------------------------------------------
BS & L Pty Limited will declare its first and final dividend on
June 26, 2006, to the exclusion of creditors who were not able
to prove their claims.

Contact: G. M. Rambaldi
         Liquidator
         Pitcher Partners
         Level 19, 15 William Street
         Melbourne, Victoria 3000
         Australia


CENTRAL COAST: Winds Up Business
--------------------------------
The members of Central Coast Aqua-Blast Pty Limited convened on
May 11, 2006, and agreed that the Company should wind up its
operations voluntarily.

Creditors subsequently appointed P. Ngan as liquidator at
another meeting held that day.

Contact: P. Ngan
         Liquidator
         Ngan & Co. Chartered Accountants
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia


COLLECTIVE EFFORT: Enters Voluntary Liquidation
-----------------------------------------------
The members of Collective Effort Management Services Pty Limited
held a meeting on May 11, 2006.

At the meeting, members agreed to shut down the Company's
business operations and appoint Michael Edward Slaven as
liquidator.

Contact: Michael E. Slaven
         Liquidator
         Rangott Slaven Hundy
         Level 3, Enginerring House
         11 National Circuit, Barton
         Australian Capital Territory 2600
         Australia


CUSTOM ERECT: Members to Receive Wind-up Report Today
-----------------------------------------------------
The final meeting of Custom Erect Pty Limited will be held on
June 23, 2006, at 2:00 p.m., for members to receive Liquidator
Richard Albarran's report of the Company's wind-up.

Contact: Richard Albarran
         Liquidator
         c/o Hall Chadwick
         Level 29, 31 Market Street
         Sydney, New South Wales 2000
         Australia


ELLINGTON EAST: Creditors' Proofs of Debt Due on July 21
--------------------------------------------------------
Joint Liquidators Peter Reginald Jollands and Rory Iain Grieve
require the creditors of Ellington East Ltd to submit their
proofs of debt by July 21, 2006.

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

Contact: Peter Reginald Jollands
         Level 4, 3-13 Shortland Street
         Auckland, New Zealand  
         Telephone: (09) 379 0463
         Facsimile: (09) 379 0465
         e-mail: peter@jollandscallander.co.nz
         Web site: www.jollandscallander.co.nz


EVANS & TATE: Neqtar Delays Mildura Winery Acquisition
------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
March 15, 2006, that Evans & Tate Limited will sell its Mildura
Winery to British beverage group Neqtar Ltd.

Through the Mildura Winery Sale, Evans & Tate will get
AU$22 million, plus the granting of options over 5.9% of the
pre-listing capital of Neqtar.

In an update, WA Business News relates that the Mildura Sale
will be delayed because Neqtar requested to extend the time
within which its Australian subsidiary, SDS Beverages Food and
Wine Pty Ltd., will complete the purchase.  The requested
extension is from June 30 to July 31, 2006.

The Sydney Morning Herald says that the sale delay is connected
with the delays in Neqtar's planned listing on the Alternative
Investment Market of the London Stock Exchange.

As stated in the TCR-AP report, the Mildura Sale is subject  
to conditions that include Neqtar's listing on the London AIM.

Business News cites Neqtar as advising that its request is
"solely due to the current volatile state of the UK equity
markets," and that it is "absolutely committed to complete the
acquisition" of the Mildura Winery.

The Mildura Sale was set to help ease Evans & Tate's AU$160-
million debt and provide much-needed cash flow, The Age notes.

According to Sydney Herald, the delay in the Mildura Sale has
been compounded by the difficulties in the sale of Evans &
Tate's Griffith winery.

Evans & Tate was forced to extend its "working capital facility"
with ANZ by AU$12 million in January 2006 after hold-ups in the
winery sale, Sydney Herald recounts.  More than five months
later, there are signs that the winemaker will struggle getting
even AU$6 million for the Griffith winery.

Evans & Tate will meet with Neqtar to discuss the request for
extension and will immediately advise the Australian Stock
Exchange of its decision, Business News says.

Founded in 1999 with the merger of two distributors, Neqtar
claims to handle about 3% of wine distribution in the United
Kingdom.

                      About Evans & Tate

Headquartered in Wembley, Western Australia, Evans & Tate
Limited -- http://www.etw.com.au/-- is an Australian wine  
company listed on the Australian Stock Exchange.  The primary
businesses of the Evans & Tate Wine Group are the production,
marketing and distribution of a number of branded, exclusive
labeled and unbranded wines; contract winemaking; wine trading;
viticultural services; and wine tourism through its Visitor
Centers.    

In June 2005, rumors began brewing that the wine maker was
carrying total liabilities of AU$127.5 million, of which
AU$102.5 million was interest-bearing debt.  A few days later,
Evans & Tate admitted that it had been coordinating with
insolvency firm KordaMentha on the recommendation of its major
creditor, ANZ Banking Group Limited.  It had appointed
KordaMentha's 333 Performance Management "to improve its
forecasting, planning and business efficiencies."  Evans & Tate
also admitted that it was cash flow negative and had sought an
AU$8.5-million capital injection from ANZ Bank.  The firm
further said that it would cut the value of its wine inventories
by AU$8 million to AU$10 million, offload stock at a discount,
and cut the carrying value of certain wineries.  In July 2005,
Evans & Tate has secured an additional AU$10 million in short-
term working capital from ANZ.  In January 2006, Evans & Tate
announced that it was selling off its Griffith Winery to boost
capital, but not without borrowing another AU$12 million.  The
Company is still seeking for buyers.  In February 2006, Evans &
Tate shed 20 jobs as part of a restructure that it said was
expected to result in cost savings of about AU$2.5 million a
year.


FOREST VIEW: Court to Hear Liquidation Petition on June 26
----------------------------------------------------------
The High Court of Christchurch will hear a liquidation petition
against Forest View Holdings Ltd on June 26, 2006, at 10:00 a.m.

The Commissioner of Inland Revenue filed the petition before the
Court on May 11, 2006.

Contact: Julia Dykema
         Inland Revenue Department
         Technical and Legal Support Group
         South Island Service Centre
         Ground Floor Reception
         518 Colombo Street, Christchurch
         New Zealand
         Telephone: (03) 968 0809
         Facsimile: (03) 977 9853


FRANBEL PTY: Names Peter Ngan as Liquidator
-------------------------------------------
At a general meeting of Franbel Pty Limited held on May 12,
2006, Peter Ngan was appointed as liquidator to oversee the
Company's wind-up activities.

Contact: Peter Ngan
         Liquidator
         Ngan & Co. Chartered Accountants
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia


GO SUMMERFIELD: Supreme Court Orders Wind-up
--------------------------------------------
The Supreme Court of Australia had on May 11, 2006, issued a
winding up order against Go Summerfield Pty Limited.

Subsequently, Steven Nicols was appointment as liquidator.

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


J BOLTON: Liquidator to Explain Wind-up to Members
--------------------------------------------------
The members of J Bolton Nominees 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 M. G. McCann.

Contact: M. G. McCann
         Liquidator
         Grant Thornton Chartered Accountants
         Level 4, 102 Adelaide Street
         Brisbane, Queensland 4000
         Australia


K.V.M. INVESTMENTS: Prepares to Pay Dividend to Creditors
---------------------------------------------------------
K.V.M. Investments will declare a dividend on June 27, 2006, to
the exclusion of creditors who were not able to prove their
claims.

The Company's final meeting is scheduled on July 12, 2006, at
11:00 a.m., where Liquidator Daniel Civil will present accounts
of the Company's wind-up and property disposal.

Contact: Daniel Civil
         Liquidator
         Rodgers Reidy
         Level 8, 333 George Street
         Sydney, New South Wales 2000
         Australia


MANNAWA PTY: Decides to Close Operations
----------------------------------------
The members of Mannawa Pty Limited met on May 10, 2006, and
decided to:

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

  -- appoint D. R. Vasudevan as liquidator to manage the wind-up
     activities.

Contact: D. R. Vasudevan
         Liquidator
         Pitcher Partners
         Level 19, 15 William Street
         Melbourne, Victoria 3000
         Australia


MARNOTTA PTY: Receivers Resign from Post
----------------------------------------
Bruno A. Secatore and Stirling L. Horne advised that they had
ceased to act as receivers and managers of Marnotta Pty Limited
on May 10, 2006.


MICONOH PTY: Final Meeting Scheduled on June 23
-----------------------------------------------
A final meeting of the members of Miconoh Pty Limited will be
conducted on June 23, 2006, at 10:00 a.m.

During the meeting, Liquidator Geoffrey McDonald will present
his final account regarding the Company's wind-up operations.

Contact: Geoffrey McDonald
         Liquidator
         c/o Hall Chadwick
         Level 29, 31 Market Street
         Sydney, New South Wales 2000
         Australia


MOERLONG PASTORAL: Members Agree on Voluntary Wind-up
-----------------------------------------------------
The members of Moerlong Pastoral Company Pty Limited convened on
May 11, 2006, and agreed that a voluntary wind-up of the Company
is appropriate and necessary.

In this regard, Frank Lo Pilato was appointed as liquidator.

Contact: Frank Lo Pilato
         Liquidator
         RSM Bird Cameron Partners
         Level 1, 103-105 Northbourne Avenue
         Turner, Australian Capital Territory 2612
         Australia
         Telephone (02) 6247 5988


NON TRADING: Court to Hear Liquidation Petition on June 26
----------------------------------------------------------
An application to put Non Trading Company No 2 Ltd -- formerly
known as BFL Construction (Kapiti) Ltd -- into liquidation will
be heard before the High Court of Wellington on June 26, 2006,
at 10:00 in the morning.    

The High Court received the application from the Commissioner of
Inland Revenue on May 3, 2006.

Contact: John Frederick Parnell
         Technical and Legal Support Group
         Wellington Service Centre
         1/F., New Zealand Post House
         7-27 Waterloo Quay, Wellington
         New Zealand
         Telephone: (04) 890 4673
         Facsimile: (04) 890 0009


PB&CS PROPERTIES: Appoints Mountfort as Liquidator
--------------------------------------------------
Shareholders of PB&CS Properties Ltd on May 26, 2006, passed a
special resolution appointing Curtis J. Mountfort as liquidator.

Mr. Mountfort requires the creditors of the Company to submit
their proofs of claim by July 14, 2006.

Contact: Curtis J. Mountfort
         Mountfort & Associates
         P.O. Box 82-161, Auckland
         New Zealand
         Telephone: (09) 272 2241
         Facsimile: (09) 272 2251


PENN YAN: To Distribute Dividend on June 26
-------------------------------------------
Penn Yan will distribute its dividend on June 26, 2006.  

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

Contact: Paul Burness
         Liquidator
         Worrells Solvency & Forensic Accountants
         Level 5, 15 Queen Street
         Melbourne, Victoria 3000
         Australia
         Telephone: (03) 9613 5511
         Fax: (03) 9614 3233
         Web site: http://www.worrells.net.au/


PLYSELL PTY: Inability to Pay Debts Prompts Wind-up
---------------------------------------------------
Members of Plysell Pty Limited met on May 10, 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


PROVINCIAL FINANCE: Receivers Provide Update on Receivership
------------------------------------------------------------
The receivers of Provincial Finance Ltd., John Waller and
Maurice Noone, at PricewaterhouseCoopers, provided an update to
debenture holders on the process of determining the Company's
financial position while potential restructuring options are
explored.

An unaudited draft of Provincial's Statement of Financial
Performance for the year ended March 31, 2006, shows a net loss
before taxation of approximately NZ$54 million.

Provincial's unaudited statement of financial performance for
the year ended March 31, 2006, shows these significant figures:

                                    (in NZ thousands)
    Operating revenue                   NZ$78,708
    Total expenses                        133,073
    Net loss before taxation              (54,365)
    Taxation                              (18,058)
    Net loss after taxation               (36,307)

Provincial's unaudited statement of financial position as of
March 31, 2006, shows these significant figures:

                                    (in NZ thousands)
    Total assets                          351,803
    Total liabilities                     330,641
    Net assets                             21,162

                         Recovery Plans

The receivers are in discussions with Provincial's shareholders,
a number of industry participants, and others in relation to a
proposed restructuring plan for the Company.

Mr. Waller said that any plan would take some time to develop.

"We intend to keep all debenture holders fully informed of any
progress in relation to this," Mr. Waller said.  Yet, he added
that it was too early to advise on the potential outcome for
debenture holders.

"There has been some speculation on the likely returns to
debenture holders.  At this stage it is anticipated debenture
holders will recover most, if not all, of their investment over
time.  As the likely level of recovery from the loan book
becomes clearer, so too will the likely returns to debenture
holders," Mr. Waller disclosed.

While further investigation of the loan book is being
undertaken, there will be no repayment of principal or payment
of interest to debenture holders.  However, Mr. Waller revealed
that an interim distribution to debenture holders is being
planned for the end of September 2006, but added that it was too
early to advise the quantum of this distribution.

Provincial Finance Limited --
http://www.provincialfinance.co.nz/-- is a New Zealand finance  
company that provides consumer and commercial finance to
individuals and businesses across New Zealand, and promote a
range of investment opportunities.

As reported in the Troubled Company Reporter - Asia Pacific,
Provincial Finance was put into receivership on June 2, 2006,
due to breach of covenants and ratios in its Trust Deed, as well
as a multi-million write-down for bad debts.  The Company owes
NZ$300 million to 14,000 small investors.


QANTAS AIRWAYS: CEO Interested in Extending Term Beyond 2007
------------------------------------------------------------
In an interview in France earlier this week, Qantas Airways Ltd.
Chief Executive Officer Geoff Dixon said that he would probably
run the airline past the end of his term on July 1, 2007,
Bloomberg News reports.

Mr. Dixon, who has led Qantas since 2001, said that he would
expect to go into a contract that is more year-on-year, rather
than fixed.  However, he clarified that the decision is for
Qantas' chairman to make.

Bloomberg points out that Mr. Dixon met with his fellow CEOs
from the Oneworld airline alliance and attended an International
Air Transport Association meeting in Paris.

According to Bloomberg, Mr. Dixon indicated in February 2006
that his exit will depend on when the board wants him to go.  
After Mr. Dixon changed the board's management structure that
month, Qantas Chief Financial Officer Peter Gregg had expressed
interest in becoming the CEO, stoking speculation that the
carrier is weighing successors.

Moreover, Bloomberg notes that BRW Magazine reported on May 25,
2006, that the airline was seeking to purchase Linfox Group to
expand its freight business as labor and fuel costs hurt
profitability.  Mr. Dixon clarified that Qantas is not in talks
to buy the company.

                      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.


QANTAS AIRWAYS: To Restructure Catering Operations
--------------------------------------------------
Qantas Airways says that it will retain its catering business
and substantially restructure the operation.

Qantas Executive General Manager Associated Businesses, Grant
Fenn, said that the decision to restructure the carrier's
catering business followed a review of operations that had
included major restructuring opportunities and a potential sale
of the business.  He says the prices that were available from
the market did not represent good value when compared with
Qantas' restructure plans.

According to Mr. Fenn, the first stage of the restructure will
provide a 45% increase on current Earnings Before Interest and
Tax forecasts of $34 million.

"Initially, the restructure will focus on our two Sydney
catering facilities -- QFCL Sydney, located on our Sydney
Jetbase, and Caterair Sydney, located nearby at Mascot," Mr.
Fenn disclosed.  He said that the greatest volume of Qantas'
catering work is carried out at the two facilities and each
currently services both Qantas and client airlines.

"Over the next nine months, we will reorganize the work by
concentrating all client airline catering services in one
facility and all the Qantas catering services in the other," Mr.
Fenn explained.  He pointed out that this would enable them to
operate more efficiently by streamlining processes at the
dedicated facilities.

Mr. Fenn noted that some positions would be affected by the
change.  However, he assured that the impact on employees will
be managed through redeployment, attrition, and by reducing
casual hours.  Mr. Fenn stated that as many as 30 redundancies
may be required, but that he expects that these will all be
achieved through expressions of interest.

Mr. Fenn further said that they do not expect the changes to
impact on product and service delivery during the transition
process.

Mr. Fenn also revealed that the restructure of Qantas' five
other flight catering centers in -- Melbourne, Brisbane, Perth,
Adelaide and Cairns -- will also commence immediately.

"This will involve an extensive review of the supply chain --
improving product engineering and demand forecasting, reducing
inventory lines, leveraging our buying power, and improving our
use of food production technologies," Mr. Fenn said.

Qantas Group's Brisbane-based Snap Fresh business will not be
affected by the changes.

                      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.


QANTAS: Says Profit For 2005/2006 at Lower End In Forecasts
-----------------------------------------------------------
Qantas Airways says that its full year profit for 2005/2006 will
be at the lower end of analysts' forecasts.

Qantas' Chief Executive Officer, Geoff Dixon, says that the
current range of analyst forecasts was between AU$670 million
and AU$895 million profit before tax and after restructuring
costs.

Mr. Dixon confirms that, at this stage, after restructuring
costs of approximately AU$153 million, the profit before tax
would be around AU$670 million.

"We have advised the market since reporting a 2004/2005 profit
before tax of AU$914.3 million (adjusted for Australian
equivalents to International Financial Reporting Standards) that
we would not achieve the same level of profitability in
2005/2006," Mr. Dixon says.

Mr. Dixon adds that this position has been reinforced by a
AU$1-billion increase in fuel costs for 2005/2006 after hedging,
a significant amount of which will not be recovered by
surcharges.

Mr. Dixon also discloses that Qantas decided not to sell its
catering operations, the expected proceeds of which had been
included in its 2005/2006 forecast.

                      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.


RILEY INVESTMENTS: Creditors Must Prove Debts by July 6
-------------------------------------------------------
Shareholder of Riley Investments Limited on June 9, 2006,
appointed Douglas Kim Fisher as liquidator for the Company.

Mr. Fisher requires the creditors of the Company to submit their
proofs of debt by July 6, 2006.

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


ROOFING SERVICES: Liquidation Petition Hearing Fixed on June 26
---------------------------------------------------------------
The High Court of Auckland on May 4, 2006, received a petition
to liquidate Roofing Services Ltd from the Commissioner of
Inland Revenue.

The petition will be heard before the High Court on June 26,
2006, at 10:00 in the morning.

Contact: Mary Kate Crimp
         Technical and Legal Support Group
         Wellington Service Centre
         1/F., New Zealand Post House
         7-27 Waterloo Quay, Wellington
         New Zealand
         Telephone: (04) 890 1067
         Facsimile: (04) 890 0009


SCOTTISH STONE: Faces Liquidation Proceedings
---------------------------------------------
An application to put Scottish Stone Ltd into liquidation will
be heard before the High Court of Christchurch on June 26, 2006,
at 10:00 in the morning.    

The High Court received the application from the Commissioner of
Inland Revenue on May 3, 2006.

Contact: Julia Dykema
         Inland Revenue Department
         Technical and Legal Support Group
         South Island Service Centre
         Ground Floor Reception
         518 Colombo Street, Christchurch
         New Zealand
         Telephone: (03) 968 0809
         Facsimile: (03) 977 9853


SN & J NICHOLLS: Creditors Must Prove Debts by June 30
------------------------------------------------------
Joint Liquidators David Murray Blanchett and Peter Ross McLean
will be receiving proofs of claim from creditors of SN & J
Nicholls Ltd until June 30, 2006.

Failure to submit claims by the due date will exclude any
creditor from sharing in any distribution the Company will make.

Contact: David Murray Blanchett
         c/o Daniel Coombe at Beattie Rickman
         Third Floor, Beattie Rickman Centre
         Corner of Bryce and Anglesea Streets
         Hamilton, New Zealand
         Telephone: (07) 838 3838
         Facsimile: (07) 838 4178


SPIDER EYE: Placed Under Voluntary Liquidation
----------------------------------------------
At a general meeting of Spider Eye Studios Pty Limited on
May 11, 2006, members agreed that it is in the Company's best
interests to wind up its operations.

Robyn Erskine and Peter Goodin were named as liquidators to
manage the Company's wind-up activities.

Contact: Robyn Erskine
         Peter Goodin
         Liquidators
         Brooke Bird & Co. Chartered Accountants
         471 Riversdale Road, Hawthorn East 3123
         Australia


TELSTRA CORPORATION: Will Eliminate 2,590 Jobs Over Two Years
-------------------------------------------------------------
Telstra Corporation plans to cut 2,590 jobs over the next two
fiscal years as part of its target to slash its workforce by
more than a fifth by 2010, Bloomberg News reports.

According to an e-mail message from Telstra Chief Financial
Officer John Stanhope to Telstra's staff, which was forwarded to
Bloomberg News by the telco's spokeswoman, Sarah McKinnon, the
positions to be retrenched are:

   -- 1,255 from the operations division;
   -- 1,220 from consumer marketing; and
   -- 115 from finance and administration.

According to the Sydney Morning Herald, details about which
specific positions are to be cut in the two-year program have
not yet been finalized.

Telstra said that many workers would not be let go "for some
time" and that "staff will be informed when those decisions are
made," Telstra spokesman Warwick Ponder said.

The Australian relates that Telstra call center staff at some
locations were told last week to reapply for their own jobs with
no guarantee of success as Telstra brought in teams of
psychologists to counsel workers.

The Australian also reveals that Telstra will close work order
dispatch centers in Parramatta, Perth, Bendigo, and Toowoomba as
it moves away from a state-based system to a national model.

According to the Sydney Herald, Telstra's communications
manager, Phil Burgess, is expected to explain the job cuts to
Telstra's largest shareholder, the Federal Government, in
Canberra, on June 21, 2006.

The Herald Sun says that final details of how many jobs have
gone since the plan to cut jobs was announced in November 2005
will not be given until the telco reports its full-year results.

Mr. Ponder clarifies that the retrenchment were not linked to
the Australian Competition and Consumer Commission's decision to
reject Telstra's proposal to charge its rivals an average
wholesale rate of AU$30 for broadband use of its copper wire
network.

Telstra's next report on workforce figures is due in August, the
Sydney Herald notes.

                        About Telstra

Headquartered at Melbourne, in Victoria, Australia, Telstra
Corporation -- http://www.telstra.com.au/-- is an Australian  
telecommunications and information services company.  Telstra
offers a full range of services and compete in all
telecommunications markets throughout Australia, providing more
than 10.3 million Australian fixed line and more than 6.5
million mobile services.  In September 2005, Telstra suffered an
earnings downgrade and share price fall.  The Company announced
that its earnings before interest and tax in 2005/06 are
expected to decline by 7-10% compared to that of 2004/05 as a
result of accelerating declines in public switched telephone
network revenues and softening growth in the mobiles market due
to aggressive pricing.  Also, the political furor surrounding
Telstra has strengthened the Government's resolve to dispose of
its remaining 51% majority interest in the Company.  The
Australian Securities and Investment Commission then commenced
an investigation into Telstra in connection with the Company's
compliance with its disclosure obligations following the
earnings downgrade.  This led to a number of Telstra
shareholders and class action claimants showing anger and dismay
over the telco's behavior.  In November 2005, after a four-month
review, Telstra Chief Executive Officer Sol Trujillo announced a
major restructure of the Company, one which involves the loss of
thousands of jobs over the next five years and a massive
investment in new networks which will help deliver bigger profit
margins.


VOLVO CONSTRUCTION: Liquidator Presents Wind-up Report
------------------------------------------------------
The members of Volvo Construction Equipment Australia Pty
Limited will hold a final meeting on June 23, 2006, at 10:00
a.m.

During the meeting, members will receive an account of the
manner of the Company's wind-up and property disposal from
Liquidators David Clement Pratt and Timothy James Cuming.

Contact: Timothy J. Cuming
         David C. Pratt
         Liquidators
         PricewaterhouseCoopers
         Level 15, 201 Sussex Street
         Sydney, New South Wales 1171
         Australia


WILKY'S BUILDERS: Appoints Joint Liquidators
--------------------------------------------
Shareholders of Wilky's Builders Ltd, on June 2, 2006, passed a
resolution appointing Iain Bruce Shephard and Christine Margaret
Dunphy as joint and several liquidators.

Contact: Iain Bruce Shephard
         c/o Jessica Redican
         Shephard Dunphy Ltd, Level 2
         Zephyr House, 82 Willis Street
         Wellington, New Zealand
         Telephone: (04) 473 6747
         Facsimile: (04) 473 6748


WILLIS TRUST: Hearing of CIR's Liquidation Bid Set on June 29
-------------------------------------------------------------
The Commissioner of Inland Revenue, on May 2, 2006, filed before
the High Court of Auckland a petition to liquidate Willis Trust
Co Ltd.

The High Court will hear the petition on June 29, 2006, at 10:00
in the morning.

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


WISE IT: Official Receiver Named
--------------------------------
Apple Computer Australia Pty Limited appointed Scott Bradley
Kershaw to act as the receiver and manager of the assets and
undertakings of Wise It Pty Limited.

Contact: Scott B. Kershaw
         Receiver
         McGrathNicol & Partners
         Level 9, 10 Shelley Street
         Sydney, Australia


WYKTON PTY: Members Resolve to Wind Up Firm
-------------------------------------------
The members of Wykton Pty Limited, at a meeting held on May 10,
2006, resolved to wind up the Company's business operations.

Subsequently, Andrew Juzva was appointed as liquidator.

Contact: Andrew Juzva
         Liquidator
         GS Andrews & Associates
         22 Drummond Street, Carlton
         Victoria 3053, Australia
         Telephone: (03) 9662 2666
         Fax: 03) 9662 9544


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

ALL-LINE LIMITED: Faces Wind-up Proceedings
-------------------------------------------
A petition to wind up All-Lined Limited will be heard before the
High Court of Hong Kong on July 12, 2006, at 9:30 a.m.   

The High Court received the application from Lam Pui Ling on
May 12, 2006.

Contact: Betty Chan
         For Director of Legal Aid
         34/F., Hopewell Centre
         183 Queens Road East
         Wanchai, Hong Kong


ARCHCORP DEVELOPMENT: Seto Named as Official Liquidator
-------------------------------------------------------
Members of Archcorp Development Holdings Ltd, on June 8, 2006,
passed a resolution appointing Seto Sau Kuen as liquidator of
the Company.

Contact: Seto Sau Kuen
         Room 1509, CC Wu Bldg
         302-8 Hennessy Road
         Wanchai, Hong Kong


DELTA ENERGY: Joint Liquidators Step Aside
------------------------------------------
Ying Hing Chiu and Chung Miu Yin ceased to act as liquidators of
Delta Energy Systems (Hong Kong) Ltd on June 14, 2006.


DIPLOCACUS LIMITED: Members & Creditors Meetings Set July 18
------------------------------------------------------------
Members and creditors of Diplocacus Ltd will convene for their
final meetings on July 18, 2006, at 10:00 a.m. and 10:30 a.m.
respectively.

During the meeting, Liquidator Jacky Muk will present final
accounts of the Company's wind-up operations.

Contact: Diplocacus Limited
         27th Floor, Alexandra House
         18 Chater Road Central
         Hong Kong


ENRON (H.K.): Creditors Name Replacement for Liquidator Tse
-----------------------------------------------------------
Creditors of Enron (H.K.) Ltd on May 30, 2006, appointed Ng Siu
Ching to replace Tse Tam Kam as the Company's official
liquidator.

Contact: Ng Siu Ching
         17/F., One Hysan Ave
         Causeway Bay
         Hong Kong


GLOBAL QUALITY: Shareholders Appoint Liquidator
-----------------------------------------------
Shareholders of Global Quality Logistics (China) Ltd on June 9,
2006, passed a special resolution appointing Young Wai Ching as
liquidator for the Company.

Contact: Young Wai Ching
         24/F., Prosperous Commercial Bldg
         54-58 Jardine Bazaar, Causeway Bay
         Hong Kong


G + H MONTAGE: Liquidator Ceases to Act for Company
---------------------------------------------------
Desmond Chung Seng Chiong on June 12, 2006, ceased to act as
liquidator of G + H Montage Ltd.


HIP HING TIMBER: Wind-up Petition Hearing Set on July 12
--------------------------------------------------------
The High Court of Hong Kong on May 12, 2006, received a petition
to wind up Hip Hing Timber Company Ltd from Tang Man Kit.

Hearing of the application is fixed on July 12, 2006, at 9:30 in
the morning.

Contact: Christine M. Koo & IP
         Solicitors for the Petitioner
         Room 601, 6/F., Tower 1
         Admiralty Center
         18 Harcourt Road
         Hong Kong


HUTCHISON ENTERPRISES: Members Final Meeting Set on July 17
-----------------------------------------------------------
Members of Hutchison Enterprises Three Ltd will convene for
their final meeting on July 17, 2006, 10:00 a.m.

At the meeting, Liquidators Ying Hing Chiu and Chung Miu Yin
will present final accounts of the Company's wind-up operations.

Contact: Ying Hing Chiu
         Chung Miu Yin
         Liquidators
         Level 28, Three Pacific Place
         1 Queens Road East, Hong Kong


HUTCHISON SIX: Liquidators to Present Wind-up Report
----------------------------------------------------
Liquidators Ying Hing Chiu and Chung Miu Yin will present their
final accounts of Hutchison Enterprises Six Ltd's wind-up
operations on July 17, 2006, at 10:00 a.m.

Contact: Ying Hing Chiu
         Chung Miu Yin
         Liquidators
         Level 28, Three Pacific Place
         1 Queens Road East, Hong Kong


LIGHTAL LIMITED: Faces Winding-up Proceedings
---------------------------------------------
The Bank of China (Hong Kong) Ltd on May 29, 2006, filed before
the High Court of Hong Kong a petition to wind-up Lightal Ltd.

The High Court will hear the petition on August 2, 2006, at 9:30
in the morning.

Contact: Chow, Griffiths & Chan
         Solicitors for the Petitioner
         Rooms 1902-4, 19/F., Hang Seng Bldg
         77 Des Voeux Road Central
         Hong Kong


LINKDAY LIMITED: Creditors' Proofs of Debt Due on July 16
---------------------------------------------------------
Joint Liquidators Chan Kwai Ping and Wong Kwok Wai require the
creditors of Linkday Limited to submit their proofs of debt by
July 16, 2006.

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

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


LONE STAR: Shareholders Opt for Voluntary Wind-up
-------------------------------------------------
Shareholders of Lone Star Investments Ltd on June 9, 2006,
passed a resolution to voluntarily wind up the Company.

In this regard, Poon Wai Hung was appointed as liquidator.

Contact: Poon Wai Hung
         Room 1410
         Harbour Centre
         Hong Kong


MANDRA FORESTRY: S&P Lowers Ratings to B- from B
------------------------------------------------
Standard & Poor's Ratings Services, on June 20, 2006, lowered
its rating on Mandra Forestry Finance Ltd to B- from previous
rating of B.  

Subsequently, the rating agency lowered its issue rating on
Mandra's US$195 million guaranteed senior notes due 2013 to B-
from B.  

S&P handed negative outlooks for both ratings.

Mary Ellen Olson, Standard & Poor's credit analyst said, "the
rating actions reflect uncertainty about Mandra's ability to
meet its targets of acquiring 108,000 hectares and harvesting
495,000 cubic meters before the end of 2006".  

Ms. Olson adds that Mandra needs to successfully execute its own
business plan in order to pay interest expenses on its bonds
from operating cash flows beginning May 2007.

Standard and Poors relates that under the terms of the bond
indenture, the Company must acquire at least 140,000 hectares by
May 15, 2007, or offer to purchase outstanding notes on a pro
rata basis for a principle amount that is equal to the amount
available in its offshore proceeds account and security accounts
on that date at par value.
     


S&P's performance concerns form Mandra include:

     * The Company's ability to harvest 180,000 cubic meters in
       Anhui province, China, by the end of 2006 in the absence
       of a formal written logging quota allocation from the
       government; and

     * the Company's success in its participation in auctions
       and making definitive agreements for the acquisition of
       plantation assets in neighboring cities by early August
       2006, with a target acquisition of 50,000 ha by the end
       of 2006.

Moreover, S&P notes that the Company's track record in provinces
outside Anhui remains unproven.  There is also concern that
acquisition costs and yields may vary from expectations and have
a negative impact on Mandra's operating performance.

Since May 2005, the Company has acquired 56,867 ha, with
preliminary agreements signed to acquire a further 30,134 ha.  
Nearly all of the acquired assets are located in Anqing,
southwest Anhui.  Standard & Poor's continues to monitor the
company's acquisition progress.

S&P relates that Mandra's weak liquidity reflects:

     * the Company's heavy debt burden;
     * lack of positive cash flows or committed bank facilities;
     * heavy capital expenditure plans; and
     * limited access to the financial markets.

                          *     *     *

Mandra Forestry Finance Ltd is a holding company in which Mandra
Capital holds 75%, Sino-Forest 15% and Morgan Stanley 10%.  It
engages in forestry plantation activities in China's Anhui and
surrounding provinces.
                       

RITEK CORP: S&P Shaves B+ Rating to B
-------------------------------------
Standard & Poor's Ratings Services on June 20, 2006, downgraded
its corporate credit and senior unsecured debt ratings on Ritek
Corp of Taiwan to B from its previous rating of B+, with stable
outlook.

Credit analyst Raymond Hsu said, " The rating action reflects
Ritek's weakening free operating cash flow as a result of poor
profitability."

Other contributing factors were financial support to the
Company's ailing 70%-owned organic light emitting diode display
subsidiary, RiTdisplay Corp, as well as its deteriorating
liquidity position, Mr. Hsu added.

According to Standard and Poors, Ritek's profitability has
declined substantially due to:

     -- prolonged industry downturn since 2004; and

     -- rapid capacity expansion and slower-than-expected demand
        growth.

These factors have caused the Company's DVD-R and CD-R prices to
fall about 70% and 40%, respectively, during 2004-2005.

S&P adds that Ritek's diversification into flash memory cards
has hurt its EBITDA margins over the past three quarters because
of sharply lower flash memory prices.  Ritek's EBITDA margin
declined to 15.3% in 2005 from 25.5% in 2004 and further to
11.7% in the first quarter of 2006 due to continuing poor market
conditions.

RiTdisplay represents a growing burden on Ritek's profits and
cash flow because of its deteriorating performance. The
subsidiary, which generated TWD1.4 billion in net losses in
2005, was unable to generate sufficient cash flow to meet debt
repayments and capital spending in that period.  Ritek injected
TWD1 billion in equity into the Company in 2005 and is likely to
inject more in 2006, given RiTdisplay's high debt maturity.
     
S&P relates that Ritek's cash flow measures deteriorated in 2005
because of its low profitability and continued financial support
on RiTdisplay.  The Company generated negative free operating
cash flow of TWD1.3 billion in 2005, down from positive free
operating cash flow of TWD3.7 billion in 2004.  

Even though its free operating cash flow turned negative, Ritek
used the proceeds from the disposal of non-operating assets and
non-core investments to lower its net debt to TWD13.5 billion as
at March 31, 2006 from TWD14.7 billion as at Dec. 31, 2004.

Nevertheless, the rating agency concludes that Ritek remained
highly leveraged with a ratio of total debt to EBITDA of 6.1x in
2005.

                          *     *     *

Based in Taiwan, RITEK Corp makes a wide range of optical disc
storage media such as CDs, DVDs, and minidiscs. The company also
makes display components (glass substrates, organic light-
emitting diodes), photonic components (filters, optical
connectors, transceivers), and electronic storage products
(flash memory, card readers, portable storage devices).

RITEK was founded in 1988 and became the first optical disc
manufacturer to simultaneously mass-produce different recordable
DVDs in 2002.


STARTEC GLOBAL: Members & Creditors Final Meetings Set July 21
--------------------------------------------------------------
Members and creditors of Startec Global Communications (Hong
Kong) Ltd will convene for their final meetings on July 21,
2006, at 10:00 a.m. and 11:00 a.m. respectively.

During the meetings, Liquidator Kwok Lai Ngor will present final
accounts of the Company's wind-up operations.

The meeting will be held at 8/F., Richmond Commercial Bldg, 109
Argyle Street, Kowloon, Hong Kong.


STOCKWELL ONLINE: Members to Receive Liquidator's Report
--------------------------------------------------------
Members of Stockwell Online (Securities) Ltd will be receiving
liquidator Lui Man Sang's final accounts of the Company's
wind-up exercise.

The presentation will be made at the Liquidator's office on
July 17, 2006, at 10:00 a.m.

Contact: Lui Man Sang
         Units 407-410, 4/F
         Tower 2, Silvercord
         No. 30 Canton Road
         Tsimshatsui, Kowloon
         Hong Kong


THERMAL INTERNATIONAL: Appoints Official Liquidator
---------------------------------------------------
Members of Thermal International Ltd, on June 9, 2006, passed a
resolution appointing Heng Poi Cher as liquidator of the
Company.

Contact: Heng Poi Cher
         44/F., China Resources Bldg
         26 Harbour Road, Wanchai
         Hong Kong


UNITED WORLD: Creditors Must Prove Debts by July 17
---------------------------------------------------
Joint Liquidators Lai Kar Yan and Darach Haughey require the
creditors of United World Securities (International) Ltd to
submit their proofs of debt by July 17, 2006.

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

Contact: Lai Kar Yan
         35/F., One Pacific Place
         88 Queensway
         Hong Kong


* Iron Ore Contract Price Hike to Unite Steel Industry
------------------------------------------------------
Fitch Ratings said on June 21, 2006, that the recently agreed
increase in the contract price of iron ore for Chinese steel
manufacturers is likely to accelerate the anticipated
consolidation process in the industry.

According to Fitch, after six rounds of tough negotiations
between the world's three major iron ore suppliers - Rio Tinto,
BHP Billiton Ltd and Companhia Vale do Rio Doce - and China's
representative Baosteel, the benchmark iron ore contract price
for 2006 has been set at a 19% premium to the 2005 level.

The big three iron ore suppliers -- which control over 70% of
global iron ore production -- had targeted a price rise of 24%
to 30%.  But China -- the world's largest importer of iron ore
with 275 million tonnes or 43% of global ore shipments in 2005 -
- took a tough stance to constrain the level of the price hike.

Aside from European, Japanese and South Korean steel makers'
agreement to a 19% hike, a similar proposal led to a showdown
with China.

Danny Chen, associate director of Fitch's Corporate ratings team
in Beijing said that "this hard-fought agreement shows that
China, the market giant, hasn't benefited from increased
bargaining power as it is still undergoing the transformation
from the biggest market player to the strongest one."  

"However, the agreed increase is sufficiently material to exert
further downward pressure on margins and should help to
accelerate the consolidation process among the country's steel
producers," added Mr. Chen.

Chinese steel producers have historically been at a disadvantage
in terms of securing favorable contract prices with global iron
ore suppliers, although Chinese steel makers are currently even
more concerned about spot iron ore prices.  Many small and
medium-sized steel producers are only able to secure their iron
ore requirements by importing at spot prices.  Currently, the
spot price stands at a 30% premium to the contract price, which
leads to speculative trading and supports the negotiated
increase in the contract price.

The Chinese government is taking steps to further reduce the
number of qualified iron ore importers in 2006 in an attempt to
curb irrational levels of imports in the spot market.

Even in light of narrowing profit margins as well as the recent
calls by China Iron and Steel Association for rational capacity
decisions, many major Chinese steel producers are still
expanding their production levels in order to avoid becoming
acquisition targets.

By the end of 2005, there were already eight steelmakers with
over 10 million tonnes of output compared with only two at
FYE04. Fitch expects that China's crude steel output will grow
15% year-on-year to 400 million tonnes in 2006, which implies an
additional 80 million tonnes of demand for iron ore.  Imports of
ore are expected to exceed 300 million tonnes in 2006, in turn
supporting the higher contract price.

Baosteel recently announced that it will raise third quarter
product prices by 6% to 8%, demonstrating that there is still
leeway for Chinese steel makers to transfer some of the
increased cost to downstream sectors.

Nevertheless, last year's 71.5% rise in iron ore prices squeezed
the domestic steel industry's total profits by 30%, and higher
costs and falling steel prices saw 20% of Chinese steelmakers
making losses in November and December of 2005.

Looking ahead, in 2006 the earnings of major Chinese steel
makers will remain under pressure through a combination of over-
capacity and intensified competition, given the still-fragmented
structure of the domestic steel sector, Fitch says.


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

BHARAT PETROLEUM: Take Up New LPG Delivery Model to Curb Losses
---------------------------------------------------------------
Bharat Petroleum Corporation Limited is lining up a direct-to-
home liquefied petroleum gas delivery model, aimed at trimming
losses it incurred on distributing LPG at government-subsidized
prices, The Financial Express says.

The Company is hoping to gain at least INR700 crore in fiscal
2007-08 from its "Beyond LPG" initiative, which is undertaken by
subsidiary Bharat Gas.

The Express reveals that Bharat Petroleum has already tied up
with 36 major consumer goods brands and is in the process of
striking deals with others.

Bharat Petroleum executive director SK Jain told The Express
that the new initiative is part of the Company's efforts to
change its image from Government-controlled pure gas suppliers
to a service-oriented company.  The Company is optimistic that
the image revamp will help rack up sales in the next two years.

According to Mr. Jain, Bharat Petroleum's business strategy is
to increase its turnover and sales of the LPG unit through
allied products without investing significantly.  Once a
consumer brand ties up with Bharat Petroleum, the LPG
distributors can directly place orders through a web-based
interface with Bharat Petroleum as the mediator.

To further slash losses incurred on the LPG business, Bharat
Petroleum also launched a new product -- Bharat Cutting Gas --
which has the potential to replace acetylene used in metal
cutting, heating and brazing operations leads at a cost
reduction of 50% and requires one-third of storage space, The
Express says.  Bharat Petroleum has monopoly over this product.

                     About Bharat Petroleum

Headquartered in Maharashtra, India, Bharat Petroleum
Corporation Limited -- http://www.bharatpetroleum.com/-- is  
engaged in refining and marketing petroleum, liquefied petroleum
gas and petrochemical products including middle distillates,
light distillate, lubricants, benzene and toluene.  During the
year 2002, the Group introduced Petro Card and SmartFleet Card
and had around 700,000 customers enrolled in 28 cities.  There
are 4,711 retail outlets and 1,729 LPG distributors that operate
in the country.  The plants of the Group are located in Mahul
and Mallet Road in Mumbai and in Budge.

Bharat Petroleum is currently working to reverse its losses
resulting from the Government's mandate to sell kerosene,
liquefied petroleum gas, petrol and diesel way below market
rates.

On September 23, 2005, the Company delisted its shares from the
Madras Stock Exchange Ltd, Calcutta Stock Exchange Association
Ltd and Delhi Stock Exchange Association Ltd.  In November 2005,
Bharat Petroleum's November 2004 profits dissipated and the
Company registered a INR203-crore (US$45.7 million) net loss.  
By the end of the third quarter ending December 31, 2005, the
Company posted a US$231-million net loss.

In January 2006, Bharat Petroleum entered into a merger with
Koichi Refineries Ltd, which shareholders for both companies
accepted.  Even with its expansion moves, Bharat Petroleum has
decided to put aside a US$1.4-million expansion project due to
losses brought about by oil subsidies, as the Company -- and the
entire industry -- suffered huge losses and has difficulty
implementing expansion activities due to the Government's
refusal to allow oil companies to raise fuel prices despite
global crude oil price crossing US$70 a barrel.

On February 20, 2006, the Petroleum Ministry proposed an
increase of INR3 per liter each in petrol and diesel prices and
INR20 per cylinder increase in liquefied petroleum gas price to
save the oil companies from going bankrupt.


GENERAL MOTORS: S&P Rates Proposed $4.48-Bln Bank Facility at B+
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' bank loan
rating to General Motors Corp.'s proposed US$4.48 billion senior
bank facility, expiring 2011, with a recovery rating of '1'.

The bank loan is rated one notch higher than the corporate
credit rating.  This and the '1' recovery rating indicate that
lenders can expect full recovery of principal in the event of a
payment default.

At the same time, Standard & Poor's lowered its senior unsecured
debt rating on GM to 'B-' from 'B'.  The downgrade of the
unsecured debt stems from the pending secured bank transaction,
which disadvantages the unsecured debt.  All ratings on GM,
including the 'B+' bank loan rating -- but excluding the '1'
recovery rating -- are on CreditWatch with negative
implications.

The new secured facility provides the company with approximately
the same size bank facility as its existing $5.6 billion
facility, but with more certain access and a longer maturity.  
Unlike the previous unsecured facility, we would expect GM to
borrow from time to time under the new revolving credit facility
for operating needs.  S&P estimates that the absolute recovery
prospects for the unsecured creditors is in the mid-50% area.  
In addition, the disadvantage to the unsecured debtholders is
reflected by priority claims to adjusted assets in the low 20%
area.

S&P expects GM's ratings to remain on CreditWatch for several
more months.  Court hearings on Delphi Corp.'s motion to reject
its labor contracts have now been adjourned until Aug. 11, and
hearings on Delphi's request to reject unprofitable supply
contracts with GM have been postponed also until Aug. 11.

S&P expects negotiations between Delphi, the United Auto
Workers, and GM to continue, however.  Still, S&P could lower
GM's ratings at any time if evolving events at Delphi warrant --
and an interim downgrade is possible prior to resolution of the
CreditWatch.  Although the proposed bank facility is considered
an incremental positive for GM's liquidity, even prior to
establishment of the new bank facility, S&P believes GM's
liquidity should remain adequate to meet near-term funding
requirements.

Ratings List:

* General Motors Corp.
      Corporate credit rating           B/Watch Neg/B-3

   -- Rating Assigned

      US$4.48 billion secured bank loan   B+/Watch Neg
      Recovery rating                     1

   -- Rating Lowered                  To            From
                                      --            ----
      Senior unsecured debt           B-/Watch Neg  B/Watch Neg

   -- Ratings Remaining On CreditWatch With Negative
      Implications

      Corporate credit rating           B/Watch Neg
      Short-term rating                 B-3/Watch Neg

                         About General Motors

General Motors Corp. -- http://www.gm.com/-- the world's  
largest automaker, has been the global industry sales leader for
75 years.  Founded in 1908, GM today employs about 327,000
people around the world.  With global headquarters in Detroit,
GM manufactures its cars and trucks in 33 countries, including
India.  In 2005, 9.17 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.  GM operates one of the world's leading finance
companies, GMAC Financial Services, which offers automotive,
residential and commercial financing and insurance.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

General Motors made losses of around US$7.6 billion in its North
American automotive operations in 2005.  This included the costs
of decision to close down as many as 12 North American plants
and cut 30,000 jobs by the end of 2008.  The losses were also
due to charges related to factory job losses, its finance arm
GMAC and the bankruptcy of former subsidiary Delphi Corp.  GM
had to make these big restructuring announcements to cut costs
and return to profitability as soon as possible.  


GENERAL MOTORS: Moody's Rates Proposed USD4.5-Bln Facility at B2
----------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors Corp.,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  The rating outlook is negative.

The downgrade of the unsecured rating concludes a review that
was initiated on May 5, 2006, when GM announced the possibility
of granting security to its bank lenders.

The ratings of General Motors Acceptance Corporation, and
Residential Capital Corporation are unaffected.

The assignment of a B2 rating to the secured credit facility
reflects Moody's view that the borrowing base provisions of the
proposed facility, in combination with the assets upon which
lenders will have a first priority lien, would afford secured
bank lenders with materially improved asset protection and
recovery prospects relative to unsecured lenders.  Assets
included in the security package include certain US receivables
and inventory, certain Canadian receivables and inventory,
certain Canadian property plant and equipment, and 65% of the
shares of Controladora GM -- the parent company of GM's
profitable Mexican operation General Motors de Mexico.

The downgrade of the unsecured debt reflects the diminution in
the asset coverage that would be available to this class of
creditors as a result of the granting of security to certain
bank lenders.  Moody's notes that under the terms of the
proposed amendment and extension, lenders who vote in favor of
the amendment will receive security in exchange for extending
the maturity of their commitment to 2011, while lenders not
voting in favor of the amendment will retain the original
maturity date of June, 2008 but will remain unsecured.  The
rating agency said that any unsecured tranches of the credit
facility would be rated Caa1, equivalent with the company's
other unsecured debt.

The affirmation of GM's B3 corporate family rating reflects
Moody's view that the granting of security to its bank lenders
does not fundamentally alter the company's overall credit risk
or expected loss profile.  Rather, with expected loss
representing the probability of default times the degree of loss
experienced in the event of default, the granting of security
represents a redistribution of the loss-given-default component
among secured and unsecured lenders.

Moody's plans to supplement its traditional assessment of
expected loss with a proposed Loss-Given-Default Methodology for
which a request for comment was circulated during January 2006.   
Research by Moody's suggests that the realized credit losses on
loans have tended to be lower than losses on similarly rated
bonds.  Moody's research further suggests that the application
of a rigorous estimation model for LGD could support a higher
degree of up-notching for bank facilities than has been the case
with Moody's traditional notching methodology which ascribes
considerable importance to asset coverage.  Upon the
implementation of its LGD methodology, Moody's will adjust the
ratings of GM's secured credit facility accordingly.

GM's negative outlook reflects the considerable near-and-
intermediate-term operating challenges the company continues to
face.  These include achieving a successful reorganization of
Delphi, completing the sale of a majority interest in General
Motors Acceptance Corporation, stemming its share loss in North
America, and achieving a 2007 UAW contract that affords material
relief from its current health care obligations and jobs bank
program.

Ensuring adequate liquidity is a critical element in GM's
strategy for contending with these operational challenges.  The
company's sizable liquidity position of approximately
$22 billion in cash and short-term VEBA could benefit from the
$10 billion in up front proceeds from the GMAC sale and from
establishing an accessible credit facility of up to
$4.5 billion.

"The recent extension of the GM-Delphi buyout program helps to
lessen the likelihood of a strike at Delphi and is a modestly
positive development on the operational side.  Similarly, the
company's ability to put an accessible credit facility in place
would be a modest enhancement of its liquidity profile," said
Bruce Clark, a senior vice president with Moody's.

Despite these potentially positive developments, GM continues to
face formidable intermediate-term challenges.

"GM still has a long road ahead of it and there isn't much
likelihood of positive movement in the rating until the company
can stem its loss in market share, show that it can preserve the
profitability of its new line of large trucks and SUVs, achieve
a viable UAW contract in 2007, and get on track for generating
positive free cash flow for 2007," Mr. Clark said.

                         About General Motors

General Motors Corp. -- http://www.gm.com/-- the world's  
largest automaker, has been the global industry sales leader for
75 years.  Founded in 1908, GM today employs about 327,000
people around the world.  With global headquarters in Detroit,
GM manufactures its cars and trucks in 33 countries, including
India.  In 2005, 9.17 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.  GM operates one of the world's leading finance
companies, GMAC Financial Services, which offers automotive,
residential and commercial financing and insurance.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

General Motors made losses of around US$7.6 billion in its North
American automotive operations in 2005.  This included the costs
of decision to close down as many as 12 North American plants
and cut 30,000 jobs by the end of 2008.  The losses were also
due to charges related to factory job losses, its finance arm
GMAC and the bankruptcy of former subsidiary Delphi Corp.  GM
had to make these big restructuring announcements to cut costs
and return to profitability as soon as possible.  


HINDUSTAN ANTIBIOTICS: To Receive Rescue Fund in August
-------------------------------------------------------
The Union Cabinet is preparing to disburse in August 2006 the
INR136-crore revival package for Hindustan Antibiotics Limited,
Business Standard reports.

The state-owned drug manufacturer is likely to receive the fund
after the Union Cabinet passes a supplementary bill in the
Parliament's monsoon session, Business Standard says.

Under its revival scheme, Hindustan Antibiotics will receive
Government money to fund its voluntary retirement program for
nearly a third of its 1,800 employees and the remainder will be
used as working capital.  

The Troubled Company Reporter - Asia Pacific recounts that the
INR36-crore voluntary retirement scheme will be offered to all
employees who have served the Company for 20 years.  They will
be compensated with 35 days' salary for every year of service
and another 25 days' salary for every remaining year of service.  
This would be extended to the former employees of Hindustan
Antibiotics' joint venture company, Hindustan Max GB, who had
been absorbed into the parent three years after the Company's
Dutch partner, Gist Brocades, severed ties.

As per the current restructuring plan proposed for Hindustan
Antibiotics, the fund will be utilized for employee
rationalization, one-time settlement of bank loans, other
statutory dues and plant upgrade, the Standard relates.
  
The central assistance for the Company's revival plan is a
combination of government grant and a bridge loan, the report
adds.

               About Hindustan Antibiotics Limited

Headquartered in Pimpri, Pune, India, Hindustan Antibiotics
Limited is the first public sector undertaking in the Drugs and
Pharmaceutical Sector.  The plant was commissioned in 1955-56.  
The undertaking is engaged in the manufacture of bulk drugs,
mainly Penicillin, Streptomycin and a number of formulations.  
The firm, which has assets worth around INR1,500 crore, plunged
into sickness due to bureaucratic delays in decision making and
stiff competition from imported penicillin-G.  The Company was
issued a winding-up notice by the Board for Industrial Finance
and Reconstruction in 2003.  But the new administration decided
to revive the state-owned pharmaceutical firm in order to serve
the public.


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

MERPATI NUSANTARA: Seeks to Buy 22 New Aircraft
-----------------------------------------------
State-owned PT Merpati Nusantara Airlines is looking to buy 22
airplanes to replace its current fleet within three to five
years, the Jakarta Post relates.

Corporate secretary Jaka Pujiyono said that the Company will
look for planes with maximum 50-seasting capacity, in order to
cater to pioneering and feeder routes.  Of the 22 aircraft, 15
Xinzhuo-60 model-type planes would come from China's AVIC I
airline firm, he said.

Mr. Pujiyono did not mention, however, how much the purchase of
the new planes would cost.

                          *     *     *

Headquartered in Jakarta, Indonesia, PT Merpati Nusantara
Indonesia -- http://www.merpati.co.id/-- is a state-owned  
carrier that services predominantly international routes.  The  
carrier is facing the threat of being declared bankrupt with
IDR1.6 trillion in accumulated losses.

Merpati has suffered from high fuel prices and hurt by the
weaker rupiah.  The bombings in Bali in October 2005 hit the
airline pretty hard in its revenue flow.  The airline is also
struggling to cope with new competition within Indonesia, both
from domestic airlines and from other airlines coming into
Indonesia internationally.

The Troubled Company Reporter - Asia Pacific reported on July
24, 2004, that the Indonesian Government invited applications
from financial and legal advisers to help devise a privatization
scheme for the ailing carrier.  The Government proposed a
strategic sale of the state's 51% stake in Merpati to help fund
the carrier's struggling operations.  The state was also
considering a IDR220 billion debt-for-equity swap.  

According to a TCR-AP report in January 2006, the Government had
promised to inject up to IDR400 billion into the Company.  
However, since it is also cash-strapped, the Government said it
would disburse the amount in installments, and initially meted
out IDR75 billion for the Company to
continue its business.


PERUSAHAAN LISTRIK: Yogyakarta Quake Leads to IDR60-Bln Loss
------------------------------------------------------------
An earthquake that hit Yogyakarta and part of Central and East
Java in Indonesia on May 27, 2006, led state utility firm PT
Perusahaan Listrik Negara to incur losses of up to IDR60
billion, Antara News reports.

According to press reports, the May 27 earthquake, which
measured 5.9 on the Richter scale, killed some 6,000 people and
injured 40,000.  It also destroyed up to 300,000 homes and 259
elementary and secondary school buildings.

Antara News cites PLN Central Java & Yogyakarta distribution
manager Dadang Kurnia Dipora as saying that the initial IDR60-
billion loss consists of   damage to the Company's electricity
installations and power relay stations.

Mr. Dipora said that Perusahaan Listrik has yet to calculate the
losses in terms of debts owed by customers, since those
customers who were directly affected by the earthquake could not
pay their power bills on time.  The Company states that some 120
households availing of its services were affected by the
earthquake.

Despite the losses, Antara News adds, Perusahaan Listrik offered
assistance to earthquake victims.

                          *     *     *

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
=========

EBARA CORPORATION: Fitch Assigns BB+ Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings Agency, on June 21, 2006, assigned a stable BB+
foreign and local currency Issuer Default Rating and a BB+
senior unsecured local currency debt rating to Ebara Corp.

The ratings indicate the Company's weak earnings and cash flow
generation, along with its high debt leverage.  Ebara Corp.
deals in capital goods, which are easily affected by private
capital investment.  Public investment also affects the
Company's revenues and profits due to its dependence on public
works.  Ebara's earnings have been unstable and weak for the
past five to six years until FY05, due to lower private capital
investment and flat economic conditions.  The fall in demand for
public works due to continuing budget cuts by the national and
local governments have also affected Ebara's revenues from its
environmental engineering and fluid machinery-related works.

However, Ebara's balance sheet, cash flow and earnings began to
improve in FY06, along with better financial leverage at 6.2x in
FYE06 from 8x in FYE05 due to an increase in private capital
investment and strong demand for wafer polishing, cleaning and
plating equipment from the semiconductor industry, which would
ultimately translate into a stronger cash flow in the future.  
The Company is also continuing its three-year restructuring
plan, reducing overall costs and expanding its environmental
engineering business overseas in order to strengthen its credit
profile.

Fitch expects that Ebara's earnings, cash flow and balance sheet
structure would improve over time on an increase in corporate
investments and its continued progress in its restructuring.

Ebara Corp. is Japan's largest manufacturer of pumps, a major
fluid machinery producer and an integrated environmental
engineering service company.  It also has strong technologies
for semiconductor polishing, cleaning and plating.  Sales
reached JPY515 billion in FYE06.


HANKYU HOLDINGS: Fitch Affirms BB+ IDR and Debt Rating
------------------------------------------------------
Fitch Ratings Agency affirmed the BB+ long-term foreign and
local currency Issuer Default Rating of Hankyu Holdings, Inc.,
as well as its BB+ senior guaranteed debt rating, on June 21,
2006.

The completion of Hankyu's acquisition of Hanshin Electric
Railway Co. Ltd., would cause immaterial deterioration to the
Company's post-acquisition financial profile, as predicted by
Fitch Ratings last May 30, 2006.  While the benefits of the
merger have yet to be fully assessed, the increased debt burden
to Hankyu from the acquisition has fallen within the range of
the agency's expectations.

Hankyu Holdings announced on June 20, 2006, that it had acquired
63.71% of Hanshin's shares for JPY249.8 billion.  Pending
shareholder approval of both companies, the remaining Hanshin
shares will be converted to Hankyu shares at the ratio of 1.0 to
1.4, and Hanshin will become a fully owned subsidiary of Hankyu
on Oct. 1, 2006.

Fitch calculates that the extra debt and the consolidation of
Hanshin will increase Hankyu's leverage to 9.7x, as measured by
the pro-forma FYE06 debt/EBITDA ratio, compared to its actual
ratio of 9.3x and 11.1x in FYE06 and FYE05 respectively.  In
FYE07, Hankyu plans to raise additional debt to finance planned
capital spending aside from new debt needed to fund the
takeover, despite expectations of weaker earnings.  However,
considering both companies' earnings forecasts and financial
plans, Fitch estimates that the combined company's FYE07
debt/EBITDA ratio will be 10.4x, which is within the range of
the current ratings of 'BB+'.

Despite closing of the TOB, however, Hankyu has yet to provide
details of its post-acquisition strategy and on the tangible
benefits of the consolidation.  Fitch believes that the
acquisition may positively affect Hankyu in terms of
rationalizing its overhead costs and its maintenance-related
capital expenditure on railway operations and non-railway
businesses.  The merged company may also enjoy the benefits of
jointly developing properties and promoting retail activities,
especially in Osaka's Umeda area.  However, according to Fitch,
these benefits from cost reduction and greater economies of
scale are long-term in nature and may only be realized
gradually.

Fitch notes that both Hankyu and Hanshin have been facing the
challenges created by a weak regional economy and falling
population trends, and a rapid shift of passengers to automotive
modes of transport.  These factors have caused long-term
declines in railway passenger volumes and revenues while causing
the performance of their non-railway operations to lag.  Past
rationalization efforts focused on reducing costs and shedding
of their diversified businesses have resulted in steady earnings
trends at the two companies. Fitch anticipates, however, that
the combined entity will find tackling these issues a greater
challenge, since it will simultaneously be grappling with the
consolidation of the two companies' operations as well as
efforts to realize the aforementioned merger benefits.

The ratings would be pulled down if these challenges lead to a
material weakening of the merged company's operating performance
and financial profile.  A possible rating upgrade would depend
on Hankyu's ability to reap benefits from the consolidation,
leading to a significant improvement in operating performance
and financial profile.


JAPAN AIRLINES: Averts Strike With Bonus Agreement
--------------------------------------------------
A planned 24-hour strike on June 21, 2006, by four labor unions
of Japan Airlines Corp. was averted when the airline's
management reached an agreement with the workers regarding their
summer bonuses, Mainichi Daily News reveals.

As reported by the Troubled Company Reporter - Asia Pacific on
June 21, 2006, Japan Airlines was faced with an impending strike
that same day, which would have forced the carrier to cancel
around 24% of its domestic flights.  Union member Fukuko Torikai
said that the workers were dissatisfied with their summer
bonuses, as well as the current working conditions at the
airline.

The employees reached an agreement with JAL management in the
early hours of June 21, enabling the Company to continue its
flights as scheduled without delays.

                          *     *     *

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.

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.

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


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

DAEWOO ENGINEERING: Selection of Bidder Postponed
-------------------------------------------------
The Finance Ministry's Public Fund Oversight Committee has
postponed the selection of a preferred bidder for Daewoo
Engineering & Construction Co., The Chosun Ilbo reports.

Korea Asset Management Corp., which is the largest stakeholder
in Daewoo Engineering, said that the Public Fund Oversight
Committee requested to be allowed to buy time for careful
deliberation considering the great public interest in the sale.

KAMCO noted that the postponement is not indefinite and the date
for the announcement will be rescheduled soon.

As reported in the Troubled Company Reporter - Asia Pacific on
June 19, 2006, Kumho Asiana Group submitted the highest bid for
Daewoo Engineering, offering KRW6.6 trillion for a 72.1% stake
in the Daewoo builder.  The 72.1% stake represents the entire
stake held by Daewoo Engineering's creditors.

Aside from Kumho, four other groups submitted final bids for
Daewoo Engineering on June 9, 2006:

   * Doosan Group;
   * Eugene Group;
   * Prime Group; and
   * Samwhan Group.

KAMCO had originally planned to select the final two preferred
bidders by June 23, 2006, after reviewing the report by the
Government Committee.  The two will then supposedly make an
official survey in July on the take-over of Daewoo Engineering,
which has been insolvent since the 1997 financial crisis yet has
been stabilized.

Headquartered in Seoul, South Korea, Daewoo Engineering &
Construction Co. -- http://www.daewooenc.com/-- has become a  
world leader in civil engineering, housing construction, power
and industrial plant development, architectural services, and
construction of liquid natural gas facilities.  In addition to
large-scale domestic projects, Daewoo has more recently built
gas plants in Nigeria, a hospital in Libya, and the Trump World
Tower in New York, to name a few.  Daewoo Engineering is one of
several Daewoo units that initially survived the 1999 collapse
of the conglomerate Daewoo Group under US$80 billion of debts in
South Korea's largest corporate bankruptcy.  In early 2004,
Daewoo Engineering's largest shareholder, the Korea Asset
Management Company, announced a proposed auction of the
construction firm.  Daewoo Engineering is the latest part of the
bankrupt Daewoo business empire to be sold.  KAMCO's 46% stake
in the Company had been estimated to fetch about KRW800 billion  
(US$677 million).  The Company has since become a potential
acquisition target in 2006.


HYNIX SEMICONDUCTOR: Reports 61% Decline in Net Income
------------------------------------------------------
Hynix Semiconductor Inc. recorded consolidated revenues of
KRW1.45 trillion for the three months ended March 31, 2006, an
18% decrease compared to the KRW1.76 trillion in revenues posted
for the quarter ended December 31, 2005, but a 14% increase from
the KRW1.27 trillion in the first quarter of 2005.

Hynix discloses that the decline in sales was partly due to the
strong Korean won which had appreciated by 5% against the U.S.
dollar sequentially, amid decline in the average selling price
of the Company's two major products, DRAM and NAND flash, due to
slow seasonality that was not completely offset by the bit
growth.

The Company recorded operating profit of KRW360 billion in the
first quarter of 2006, a 31% decrease from the previous
quarter's KRW522 billion, resulting in the operating margin of
25%.  The reduction in the profit was primarily due to the
worsened profitability of NAND flash due to the severe price
erosion amid strong Korean won against the U.S. dollar.

Net income for the first quarter of 2006 decreased by 61% to
KRW294 billion from KRW764 billion of the previous quarter.  The
cause of the difference in net income is primarily due to the
recognition of deferred tax assets, which has resulted in an
income tax benefit of KRW452 billion in the previous quarter.

As of the end of the first quarter in 2006, cash and short-term
financial instruments decreased slightly to KRW1.26 trillion,
which is a KRW21-billion decrease from the previous quarter's
KRW1.28 trillion.

Debt level also decreased by KRW118 billion from
KRW1.90 trillion at the end of 2005 to KRW1.78 trillion at the
end of the first quarter of 2006.  Consequently, debt to equity
ratio at as of March 31, 2006, has improved slightly to 27% from
30% of last year-end and net debt to equity ratio to 8% from
10%.

                          *     *     *

Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.   
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.

In October 2001, the Company was placed under joint management
by the members of the Creditor Financial Institutions' Council
and since then, the Company has been working towards improving
its financial condition through debt restructuring and execution
of various self-rescue plans such as disposals of business
divisions, business work-out and achievement of a
KRW1.70-trillion net income in 2004.

Hynix was rescued from debt in December 2002 through a
KRW3.25-trillion bailout by bank creditors.

The Creditor Council terminated the joint management earlier
than the original date after the Company raised external funds
in an aggregate amount of US$1.80 billion in July 2005.

In July 2005, Moody's Investor Service affirmed its B1 senior
unsecured rating for Hynix Semiconductor's US$500 million bonds
upon its successful closing.  At the same time, Moody's has
affirmed its Ba3 corporate family rating for Hynix, removing
both ratings from provisional status.

The bond proceeds, together with the newly raised US$750 million
syndicated bank loan, has been utilized to early repay existing
restructured bank debt due in 2006.  This removes the
refinancing risk and allows Hynix to focus on developing its
core competitiveness in dynamic random access memory and NAND
flash businesses.

The Ba3 corporate family rating reflects Hynix's four credit
strengths: (1) position as the world's second largest DRAM
manufacturer; (2) cost competitiveness; (3) position in the fast
growing NAND flash segment; and (4) improving balance sheet and
financial flexibility.  At the same time, the rating reflects
these key challenges: (1) unpredictable cash flow stemming from
highly volatile nature of DRAM pricing and the silicon cycle;
(2) participation in a capital-intensive industry, and which
requires massive capex requirements for technological
migrations; and (3) track record of liquidity crises and
bailouts, partially mitigated by its improved balance sheet
liquidity.


HYNIX SEMICONDUCTOR: WTO to Resolve Japan Tariff Disputes
---------------------------------------------------------
South Korea revealed that the World Trade Organization has set
up an arbitration panel to resolve a trade dispute with Japan
over punitive tariffs levied on imports of computer memory chips
made by Hynix Semiconductor Inc., TMCnet reports, citing Yonhap
News.

The Age relates that South Korea asked for WTO arbitration after
failing to reach a compromise in months of direct negotiations
with Japan over duties on Hynix computer memory chips.

According to the report, during the panel sessions, the South
Korean Government plans to "aggressively claim" the unfairness
of the Japanese Government's measure to impose countervailing
tariffs on Hynix chips.

TMCnet recounts that on January 27, 2006, Japan levied punitive
tariffs of 27.2% on dynamic random access memory chips made by
Hynix, which is known to be the world's second-largest computer
memory chip manufacturer, accusing the chipmaker of violating
WTO rules on government subsidies.

South Korea insisted that the decision breached WTO rules and
accused Japan of levying the retaliation tariffs based on
unilateral claims by Japanese chipmakers.

In December 2002, Hynix was rescued in a multi-billion dollar
bailout by creditor banks.  The Age relates that South Korean
creditors deny that the Government played any role in arranging
the rescue package, insisting it was a commercially-based
decision and involved several independent foreign banks.

The South Korean Government has also denied any WTO violation in
the process of saving Hynix.

Under WTO arbitration rules, it may take six to nine months for
the panel to make a decision from the establishment, the
ministry said.

                          *     *     *

Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.   
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.

In October 2001, the Company was placed under joint management
by the members of the Creditor Financial Institutions' Council
and since then, the Company has been working towards improving
its financial condition through debt restructuring and execution
of various self-rescue plans such as disposals of business
divisions, business work-out and achievement of a
KRW1.70-trillion net income in 2004.

Hynix was rescued from debt in December 2002 through a
KRW3.25-trillion bailout by bank creditors.

The Creditor Council terminated the joint management earlier
than the original date after the Company raised external funds
in an aggregate amount of US$1.80 billion in July 2005.

In July 2005, Moody's Investor Service affirmed its B1 senior
unsecured rating for Hynix Semiconductor's US$500 million bonds
upon its successful closing.  At the same time, Moody's has
affirmed its Ba3 corporate family rating for Hynix, removing
both ratings from provisional status.

The bond proceeds, together with the newly raised US$750 million
syndicated bank loan, has been utilized to early repay existing
restructured bank debt due in 2006.  This removes the
refinancing risk and allows Hynix to focus on developing its
core competitiveness in dynamic random access memory and NAND
flash businesses.

The Ba3 corporate family rating reflects Hynix's four credit
strengths: (1) position as the world's second largest DRAM
manufacturer; (2) cost competitiveness; (3) position in the fast
growing NAND flash segment; and (4) improving balance sheet and
financial flexibility.  At the same time, the rating reflects
these key challenges: (1) unpredictable cash flow stemming from
highly volatile nature of DRAM pricing and the silicon cycle;
(2) participation in a capital-intensive industry, and which
requires massive capex requirements for technological
migrations; and (3) track record of liquidity crises and
bailouts, partially mitigated by its improved balance sheet
liquidity.


HYNIX SEMICONDUCTOR: Will Sell US$2.7-Bil of Shares and Bonds
-------------------------------------------------------------
Hynix Semiconductor Inc. and its creditors will sell as much as
US$2.7 billion of shares and bonds starting June 2006 after a
sevenfold jump in the stock in the past three years, The
Standard reports.

Hynix's lenders will sell between 40 million and 62 million
shares, valued as high as KRW1.9 trillion, at the end of this
month or in July, The Standard says, citing Hynix's lead
creditor, Korea Exchange Bank.

According to the report, Hynix intends to sell new shares and
debt valued at US$700 million.  The sale will provide Hynix
funds for new factories to keep up with rivals and help lenders
recoup the US$4.6 billion spent bailing out the chipmaker in
2002.

Hynix returned to profit in the past two years, boosted by chips
for consumer electronics like iPod music players.

Merrill Lynch is the sole global coordinator for the sale of the
shares and bonds, Korea Exchange spokeswoman, Lee Nahm Yon,
said.

The Hynix creditors also hired Credit Suisse Group and Deutsche
Bank to help with the sale, The Standard adds.  Woori Investment
and Securities is helping with the overseas part while Daewoo,
Good Morning Shinhan and Hyundai Securities will manage the
Korean portion.

                          *     *     *

Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.   
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.

In October 2001, the Company was placed under joint management
by the members of the Creditor Financial Institutions' Council
and since then, the Company has been working towards improving
its financial condition through debt restructuring and execution
of various self-rescue plans such as disposals of business
divisions, business work-out and achievement of a
KRW1.70-trillion net income in 2004.

Hynix was rescued from debt in December 2002 through a
KRW3.25-trillion bailout by bank creditors.

The Creditor Council terminated the joint management earlier
than the original date after the Company raised external funds
in an aggregate amount of US$1.80 billion in July 2005.

In July 2005, Moody's Investor Service affirmed its B1 senior
unsecured rating for Hynix Semiconductor's US$500 million bonds
upon its successful closing.  At the same time, Moody's has
affirmed its Ba3 corporate family rating for Hynix, removing
both ratings from provisional status.

The bond proceeds, together with the newly raised US$750 million
syndicated bank loan, has been utilized to early repay existing
restructured bank debt due in 2006.  This removes the
refinancing risk and allows Hynix to focus on developing its
core competitiveness in dynamic random access memory and NAND
flash businesses.

The Ba3 corporate family rating reflects Hynix's four credit
strengths: (1) position as the world's second largest DRAM
manufacturer; (2) cost competitiveness; (3) position in the fast
growing NAND flash segment; and (4) improving balance sheet and
financial flexibility.  At the same time, the rating reflects
these key challenges: (1) unpredictable cash flow stemming from
highly volatile nature of DRAM pricing and the silicon cycle;
(2) participation in a capital-intensive industry, and which
requires massive capex requirements for technological
migrations; and (3) track record of liquidity crises and
bailouts, partially mitigated by its improved balance sheet
liquidity.

The B1 bond rating further incorporates the risks of legal
subordination given that over 50% of projected total debts are
secured debts.


* Fitch Affirms Korea's A+ Rating, with Stable Outlook
------------------------------------------------------
Fitch Ratings has affirmed Korea's sovereign credit rating at A+
and the outlook as stable.  The positive forecast comes despite
high global oil prices and uncertainties stemming from North
Korea's weapons program, the Digital Chosun Ilbo reports, citing
Arirang News.

Fitch Ratings Asia explained that the country's fiscal
conservatism, high rate of foreign exchange reserves, liquidity
ratio and net external creditor status put it in a good
position.

However, the international credit rating agency, which upgraded
Korea's rating from 'A' in October 2005, also had a word of
caution.  It said the combination of high oil prices, the
national currency's strength against the U.S. dollar and a
gradual slowdown in demand from the country's major trading
partners may hamper its economic recovery.  Fitch also
identified the security risk posed by North Korea as a variable,
noting that Pyongyang has been boycotting the six-party nuclear
disarmament talks since September last year.

The announcement was timed with a positive report by the
nation's central bank.  The Bank of Korea said corporate
bankruptcies reached a record monthly low last month.  The
number of businesses that went bankrupt in May was 189, down 46
from the previous month.  The central bank said that sound
cashflow at companies helped lower the bankruptcy rate.


* State-Run Asset Manager to Increase Sales to KRW1 Trillion
------------------------------------------------------------
State-run asset manager Korea Asset Management Corp. revealed
plans of increasing its sales to KRW1 trillion by 2010 and
transform itself into a global asset manager, the Korean Times
reports.

KAMCO head Kim Woo-suk said that the Company will put up
KRW900 billion through its non-performing loan business and the
remaining would be from management of troubled businesses
entrusted to it by the South Korean Government.

Mr. Kim adds that "KAMCO will turn itself into an expert asset
manager by actively responding to the fast-changing business
environment" by increasing employee productivity, developing
profit models that offer stable profits and investing in new
businesses that promise long-term growth and boosting the asset
manager's competitiveness.


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

AKTIF LIFESTYLE: Inks Restructuring Deal to Avert Delisting
-----------------------------------------------------------
Aktif Lifestyle Berhad, on June 15, 2006, entered into a
restructuring agreement with Strandcom MSC Berhad to avoid being
delisted from the Bursa Malaysia Securities Berhad's Official
List.

The Agreement -- which is aimed at regularizing the Company's
financial condition -- includes:

   * the proposed scheme of arrangement with Aktif's
     shareholders;

   * the proposed acquisition of the Strandcom group of
     companies in order for Aktif's operations to be restored
     to a level that warrants its continued listing on Bursa
     Securities; and

   * the proposed transfer of Aktif's listing status to the
     company to be identified as the listing vehicle.

Details of the finalized Proposals will be disclosed by the end
of June 2006.

Pursuant to the Agreement, the Company is asking Bursa
Securities:

   -- not to commence any delisting procedures on Aktif's
      securities from the Official List of Bursa Securities;

   -- to allow the Company until June 30,2006, to make the full
      requisite announcement on the Proposals; and

   -- top extend the time from June 30, 2006, to September 30,
      2006, for Aktif to make the necessary applications to the
      relevant authorities.

As reported by the Troubled Company Reporter - Asia Pacific,
Bursa Malaysia Securities Berhad, on June 8, 2006, commenced
delisting procedures against Aktif, which is a Practice Note 10
company.  In a statement, Bursa Securities said that Aktif has
failed to ensure that its level of operations is adequate in
accordance to the listing requirements.

                   About Strandcom MSC Berhad

Strandcom was incorporated on March 12, 2004, in Malaysia under
the Companies Act, 1965, under the name of Britland Sdn. Bhd.  
Subsequently, the name was changed to Strandcom MSC Sdn Bhd.  It
was converted into a public company and adopted its present name
on September 30, 2004.  Strandcom's principal activity is
investment holding and development of Managed Electronic
Townships while its subsidiaries are involved in design,
development and provision of the required components for the MeT
projects.

             About Aktif Lifestyle Corporation Berhad

Headquartered in Kuala Lumpur, Malaysia, Aktif Lifestyle
Corporation Berhad's principal activities is the operation of
specialty retail stores.  Other activity includes investment
holding.  The Company has defaulted on several loan facilities
and incurred continuous losses.  It embarked on various
corporate exercises aimed at regularizing its financial
condition.  In 2005, the Company presented a proposed
restructuring scheme, which did not win the Securities
Commission's favor due to uncertainty in assets valuation and
concerns on corporate governance issues.  An appeal to SC to
review its decision on the Proposed Restructuring Scheme was
already submitted.  The Proposed Restructuring Scheme, if
successfully implemented, will have the new listed Group be
involved in the business of quarrying, manufacturing, trading of
granite products as well as the supply and installation of
marble and granite related products.


ANTAH HOLDINGS: Resumes Shares Trading
--------------------------------------
Trading in the shares of Antah Holdings Berhad resumed on
June 16, 2006, as it was able to submit its annual audited
accounts for the financial year ended June 30, 2005.

The Troubled Company Reporter - Asia Pacific recounts that Bursa
Malaysia Securities Berhad, on May 3, 2006, publicly reprimanded
Antah for failing to submit its 2005 Annual Report by the
December 31, 2005 deadline.

The public reprimand and fine were imposed after having
considered all relevant factors including the fact that Antah
had previously breached the Bursa Securities Listing  
Requirements.

                   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 the Company's financial
institution lenders and other creditors of Antah
Group.  The Proposed 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 Proposed Debt
Restructuring Exercise, the Company was unable to proceed with
the implementation of the aforesaid Debt Restructuring Exercise

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.  To date, Antah paid
MYR48,247,000.  As of April 30, 2006, Antah's total loan default
plus interest has reached MYR286,442,000.

The Company's balance sheet as of March 31, 2006, revealed that
it is suffering tight liquidity with current liabilities of
MYR626,846,000 exceeding total current assets of MYR82,422,000.


CHASE PERDANA: In Talks to Defer Stock Redemption Anniversary
-------------------------------------------------------------
Pursuant to Practice Note 1 of the Listing Requirements of Bursa
Malaysia, Chase Perdana Berhad disclosed that it is still in
discussions with the Redeemable Convertible Secured Loan Stock
holders, with regard to the rescheduling of the second
anniversary redemption to RCSLS holders, which was due on
July 18, 2005.

As part of Chase Perdana's restructuring, in 2003, the Company
issued:

   * 3.5% redeemable convertible secured loan stock due
     2003/2008; and

   * 3.5% redeemable convertible unsecured loan stock due
     2003/2008.

Pursuant to the RCSLS Issuing Agreements made between the
Company and the RCSLS and RCULS holders, Chase Perdana is due to
make a 10% redemption amount and a 3.5% coupon payment,
respectively, on the second anniversary of the issuance of
RCSLS, falling on July 18, 2005.

However, the Company proposed the Anniversary be rescheduled
from July 18, 2005, to July 18, 2006.  

Although Chase Perdana has the cash at hand to make the required
payments, the proposed rescheduling is necessary in order to
maintain a higher liquidity position at the working capital
level.  This will enable the Company to meet initial funding
requirements for the implementation of new projects currently
being undertaken and pursued by the Group.  These new projects
to be implemented over the next six years are estimated to be
worth approximately MYR1.0 billion.  If the time for the
scheduled payments can be extended by another year, the Company
would have sufficient cash to service all amount due to the
RCSLS, RCULS and redeemable convertible preference shares
holders.

With the proposed rescheduling, Chase Perdana will be able to
undertake new projects, enhance its growth prospects while also
ensuring that future scheduled payments to the RCSLS, RCULS and
RCPS holders are met.

                   About Chase Perdana Berhad

Headquartered in Kuala Lumpur, Malaysia, Chase Perdana Berhad
-- http://www.chaseperdana.com.my/-- is engaged in  
construction, property management, property development and
investment holding.  Its other activities include oil palm
processing.   Operations are carried out in Malaysia, India and
British Virgin Islands.  In 2000, the Corporate Debt
Restructuring Committee assisted Chase Perdana Berhad and its
subsidiary companies to finalize a debt restructuring agreement
with their lenders involving debt outstanding of
MYR279.91 million.  The exercise was undertaken beginning year
2002.  The Company's proposed debt restructuring of is expected
to address the difficulties experienced by the Chase Perdana
Berhad Group in meeting its immediate debt obligations.  Both
the corporate and debt restructuring would put the Chase Perdana
Group on a stronger financial footing to continue as a going
concern, to return to profitability and to enhance returns to
all the stakeholders.

The Company's balance sheet as of March 31, 2006, showed
strained liquidity since its current assets of MYR208.88 million
are insufficient to pay its current liabilities of
MYR266.97 million within 12 months.


JIN LIN: Restructuring Proposal Wins Shareholders' Approval
-----------------------------------------------------------
Jin Lin Wood Industries Berhad has obtained shareholders'
approval of its proposed restructuring scheme, which involves
the modified proposed scheme of arrangement with creditors.

The shareholders gave their approvals at the Court-convened
meeting of the Scheme Creditors on June 16, 2006.

Meanwhile, Jin Lin's advisers are attending to matters necessary
to implement the Company's Proposed Restructuring Scheme
approved by the Securities Commission.

                  About Jin Lin Wood Industries

Headquartered in Kuala, Lumpur Malaysia, Jin Lin Wood Industries
Berhad is engaged in the manufacture and trade of timber and
related timber products.  The Company is also involved in
warehousing, chemical treatment and investment holding.

Jin Lin was listed in 2000, at the tail end of the timber price
rally.  It went bust two years later, when demand for wood
products and their prices were at their cyclical lows.  
Management blamed the failure to "bad timing" as the Company
came in when the market was going down.  The Company hopes that
its proposed a restructuring scheme, which involves the change
of its core business from timber-based to the manufacturing of
granite and marble products, will be completed as early as this
year.  The restructuring also involves schemes of arrangement
with shareholders and creditors, disposal of Jin Lin and shares
placement.  The Proposed Restructuring Scheme is currently in
the implementation stage and awaits approval of the necessary
authorities.

The Company's balance sheet as of March 31, 2006, revealed
strained liquidity with current assets of MYR3.8 million
available to pay current liabilities of MYR98.9 million.


MALAYSIA AIRLINES: Unveils Exit Plan on Non-trunk Local Routes
--------------------------------------------------------------
The Government of Malaysia on March 16, 2006, decided on a new
domestic aviation policy, which awarded the license to operate
domestic air services exclusively to AirAisia, thus leaving
Malaysia Airlines to concentrate on international operations,
Travel Blackboard reveals.

However, Malaysia Airlines retains the rights to operate to 19
primary domestic trunk routes in order to provide connectivity
for international passengers as part of its commitment to
continuously support inbound tourism and outbound international
traffic.

Consequently, Malaysia Airlines will accept bookings and sales
effective June 21, 2006, on domestic non-trunk routes in
Malaysia, including the Rural Air Services, for travel on and
after August 1, 2006.  Therefore, all forward bookings made to
date for travel on the 99 non-trunk routes on and after August 1
will be cancelled.

Customers who hold tickets issued prior to June 20, 2006, will
be offered options of either complete refunds inclusive of
surcharge and administration fee payments or rerouting within
Malaysia.  All other customers holding bookings and tickets with
confirmed travel on the 99 non-trunk routes by August 1 are
encouraged to plan for alternative travel arrangements.

The Troubled Company Reporter - Asia Pacific recounts that a new
airline is being established in Malaysia to take over smaller
routes dropped by national carrier Malaysia Airlines.

Privately owned AirAsia, which agreed in March to take over most
of Malaysia Airlines' domestic routes, said that it will
subcontract operation of rural air services to a new airline
named Fly Asian Xpress, or FAX, TCR-AP said.  The service will
be subsidized by the Malaysian Government and the new carrier is
due to launch services on August 1, 2006.

                    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.


PANGLOBAL BERHAD: Has Until Dec. 2007 to Meet Equity Condition
--------------------------------------------------------------
The Foreign Investment Committee has ordered PanGlobal Berhad to
increase its Bumiputera equity shareholding to at least 30%, the
Troubled Company Reporter - Asia Pacific recounts.

In this regard, the Securities Commission, on June 13, 2006,
approved a further extension of time up to December 31, 2007,
for PanGlobal to comply with the Equity Condition.  Hence,
PanGlobal is required to submit a plan of action on how it will
fulfill the Condition within six months prior to Dec. 2007.

The TCR-AP reported that the FIC had, on March 31, 2003,
extended the deadline for PanGlobal to meet the Equity Condition
until December 31, 2004.

                     About PanGlobal Berhad

Headquartered in Kuala Lumpur, Malaysia, Panglobal Berhad --
http://home.panglobal.com.my/-- is engaged in underwriting all  
classes of general insurance business, extracting of logs,
sawmilling, manufacturing of veneer and extraction of coal.  
Other activities include property investment and development and
leasing of real estate, investment holding, business management,
building and fitness club management.  PanGlobal is a Practice
Note 4/2001 company.  The Bursa Malaysia Securities has required
the Company to regularize its financial condition, curb huge
losses and settle debts in order to continue operating.  The
Company has already submitted a Proposed Restructuring Scheme to
the Securities Commission on September 9, 2005.  On April 6,
2006, the Securities Commission approved PanGlobal  
Berhad's proposed restructuring scheme.


PROTON HOLDINGS: May Sell Stakes to Expand Overseas
---------------------------------------------------
Proton Holdings is considering selling minority stakes to two
foreign car companies in return for helping it penetrate the
lucrative Indian and Chinese markets, Business Times relates.

Proton has been in talks with China's Jinhua Youngman Automobile
Group Company and Chery Automobile Company, as well as India's
Mahindra & Mahindra Limited, in a bid to expand in the world's
most populous countries, the Troubled Company Reporter - Asia
Pacific recounts.

The Malaysian carmaker has been losing its market share to
stronger rivals like Toyota Motor Corporation, Business Times
says.  In order to keep pace with tough competitors, Proton
needs an overseas partner to provide the technology and access
to overseas market.

According to The Times, Proton lost 9% of its local market share
in the three months ended March 31, 2006, from a year ago, as
more buyers turned to overseas brands after the Government cut
import taxes.

As reported by the TCR-AP, the Government cut import taxes for
vehicles assembled in South-East Asia to 5% from 15% in March,
removing more than two decades of tariff protection for Proton.  
Although Proton was able to drop its prices by 7%, it could not
compete with Toyota's 11% price cut.  Proton's sales in the
three months to March slumped 25%.

                     About Proton Holdings

Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan
Otomobil Nasional Berhad or Proton Holdings Berhad
-- http://www.proton-edar.com.my/-- is engaged in  
manufacturing, assembling, trading and provision of engineering
and other services in respect of motor vehicles and related
products.  Its other activities include property development,
trading of steel and related products, engine and technologies
research, development of automotive related technologies,
investment holding, importation and distribution of motor
vehicles, related spare parts and accessories, holds
intellectual property, provides engineering consultancy,
operates single make race series and carries out specific
engineering contracts.  The Group's operations are carried out
in Malaysia, England, Australia, Socialist Republic of Vietnam
and the United States of America.

Proton was reported to be among Malaysia's worst-performing
companies in 2005, after competition from foreign carmakers and
a lack of new models lost the firm local market share and
subsequently led it into a loss.  It has since brought in a new
chief, sold its loss-making MV Agusta motorbike firm and pledged
to find a new technology partner.  The Company has been under
increasing pressure, with its share of domestic sales falling to
44% from 75% over the past decade.

The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Proton was expected to finalize a recovery plan and
seal an alliance with a strategic partner by the end of this
year.


PSC INDUSTRIES: Shareholders Pass All AGM Resolutions
-----------------------------------------------------
The shareholders of PSC Industries Berhad on June 15, 2006,
approved all resolutions arrived at during the Company's 34th
Annual General Meeting.

At the meeting, members:

   -- received the audited financial statements of the
      Company for the financial year ended December 31, 2005,
      and the Report of the Directors and Auditors;

   -- approved the Directors' fees for the year ended
      December 31, 2005;

   -- re-elected as directors

      * En. Ishak Bin Osman;

      * Y. Bhg. Laksamana Madya (Rtd) Dato' Seri Ahmad Ramli
        Bin Haji Mohd Nor;

      * Y. Bhg. Datuk Azzat Bin Kamaludin; and

      * David William Berry;

   -- appointed Messrs Ernst & Young as auditors of the
      Company and authorized the Directors to determine the
      remuneration;

   -- empowered the Company's directors to issue shares and
      obtain approval from the Bursa Malaysia Securities
      Berhad for the listing and quotation of additional
      shares so issued; and

   -- approved the proposed shareholders' mandate for
      recurrent related party transactions.

                   About PSC Industries Berhad

PSC Industries Berhad's principal activities are shipbuilding
and ship repairing. It is also involved in heavy engineering
construction, provision of shipping management services,
manufacturing of aluminium fast passenger sea ferries, supplies
equipment and machineries, marketing and distributing Exocet
Weapon system, manufacturing of confectioneries, snack food and
related products, general trading, power plant construction and
its support activities, printing, property development, and
property and investment holding.  The Group operates in
Malaysia, Australia and the Republic of Ghana.  The Company is
currently formulating a regularization plan for the Group
pursuant to Practice Note 17/2005 of the Bursa Malaysia
Securities Berhad's Listing Requirements.  The Company is also
looking at various measures to improve its financial solvency.

As of March 31, 2006, the Company's balance sheet showed
MYR212,330,000 in total assets and MYR677,272,000 in total
liabilities, resulting in a MYR464,942,000 stockholders' equity
deficit.  The Company's March 31 balance sheet also revealed
weak liquidity with MYR68,773,000 in total current assets
available to pay MYR673,409,000 in total current liabilities
coming due within the next 12 months.


SUREMAX GROUP: Alliance Merchant Asserts MYR2.8-Million Claim
-------------------------------------------------------------
Suremax Group was served on June 15, 2006, with a Judgment in
Default of Appearance by Alliance Merchant Bank Berhad.

In the Notice, Suremax was instructed to pay Alliance Merchant
MYR2,796,291, which was due as of January 31, 2006, together
with interest calculated from February 1, 2006, in respect of a
Revolving Credit Facility at the rate of 3.0% per annum on
Alliance Merchant's cost of funds on a daily basis and
additional interest payable on any outstanding sums at the rate
of 1.0% per annum on the interest to the date of full
settlement.

In addition, Suremax is also ordered to pay MYR225 in other
costs.

Suremax said that it will attempt to set aside the Judgment in
Default of Appearance.

                       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.


TRU-TECH HOLDINGS: Mahabuilders Wants to Ink Restructuring Deal
---------------------------------------------------------------
On June 15, 2006, Tru-Tech Holdings Berhad received and accepted
a letter of intent from Mahabuilders Sdn Bhd to commence good
faith negotiations and endeavor to reach a definitive agreement
on the terms and conditions of a restructuring proposal for Tru-
Tech.

The Letter is intended solely as a basis for further discussion
and is not intended to be and does not constitute a legally
binding agreement and is subject to the negotiation and
execution of a restructuring agreement within 90 days of the
date of the Letter or any other period as may be mutually agreed
on by both parties.

According to the Letter, Mahabuilders is a property development
and construction company with the necessary profit track record
and other quantitative requirements required to comply with the
Securities Commission Policies and Guidelines on Issue/Offer of
Securities for the purposes of undertaking the takeover of
distressed listed companies.

It is proposed that a restructuring plan will be discussed based
on these parameters:

   * a capital reduction and consolidation of the existing
     share capital of Tru-Tech;

   * an acquisition of the existing share capital of
     Mahabuilders and its related companies based on a
     pro forma net asset valuation;

   * a scheme of arrangement with existing creditors of
     Tru-Tech;

   * a placement of shares offer for sale to public
     shareholders; and

   * a transfer of the listing status of Tru-Tech to a NewCo to
     be set up for the purposes of the restructuring proposal.

The Company will make the necessary announcements upon further
material developments on the matter.

                 About Tru-Tech Holdings Berhad

Headquartered in Ulu Tiram Johor, Malaysia, Tru-Tech Holdings
Berhad's principal activity is the manufacturing of electronic
components and products.  Its other activities include
development and distribution of switch-mode power supplies and
investment holding.  The Group operates in Malaysia, Singapore,
United States and United Kingdom.  On May 27, 2004, Tru-Tech
announced a series of proposed corporate exercises to address
its losses.  These include the incorporation of a new entity as
Tru-Tech's holding company, and the disposal of its existing
contract-assembly business to a third party.  Much of Tru-Tech's
future performance will hinge on its ability to restructure its
debts and resolve its poor liquidity.

Bursa Malaysia Securities Berhad, on May 26, 2006, decided to
suspend trading in the securities of Tru-Tech from June 5, 2006,
as the Company has failed to regularize its financial condition
pursuant to the Bourse's Listing Requirements.


TRU-TECH HOLDINGS: Defaults on Monthly Sinking Fund Deposit
-----------------------------------------------------------
Tru-Tech Holdings Berhad will not be able to make the monthly
deposit of MYR1,500,000 due on June 17, 2006, into the sinking
fund account maintained for the purposes of redemption of the
MYR55,000,000 redeemable unsecured loan stock, due to Tru-Tech's
current tight cash flow position.

Save as disclosed, there has been no material development in
respect of the Company's default pursuant to Practice Note
1/2001.

The principal outstanding of all other credit facilities granted
to Tru-Tech and its subsidiaries as of May 31, 2006, is
MYR61,356,126.

                  About Tru-Tech Holdings Berhad

Headquartered in Ulu Tiram Johor, Malaysia, Tru-Tech Holdings
Berhad's principal activity is the manufacturing of electronic
components and products.  Its other activities include
development and distribution of switch-mode power supplies and
investment holding.  The Group operates in Malaysia, Singapore,
United States and United Kingdom.  On May 27, 2004, Tru-Tech
announced a series of proposed corporate exercises to address
its losses.  These include the incorporation of a new entity as
Tru-Tech's holding company, and the disposal of its existing
contract-assembly business to a third party.  Much of Tru-Tech's
future performance will hinge on its ability to restructure its
debts and resolve its poor liquidity.

Bursa Malaysia Securities Berhad, on May 26, 2006, decided to
suspend trading in the securities of Tru-Tech from June 5, 2006,
as the Company has failed to regularize its financial condition
pursuant to the Bourse's Listing Requirements.


UNITED CHEMICAL: Provides Default Update
----------------------------------------
United Chemical Industries Berhad provided an update of its loan
facilities currently in default.

As of May 31, 2006, United Chemical's outstanding loans
defaulted are:

     -- MYR6,129,176 to RHB Bank Berhad; and

     -- MYR3,676,500 to Bank Industri Malaysia Berhad.

The Company's board of directors further disclosed that there
are no new significant developments in relation to the various
default in payment.

             About United Chemical Industries Berhad

United Chemical Industries Berhad, a company incorporated and
domiciled in Malaysia, is a public company limited by shares,
and is listed on the Second Board of Bursa Malaysia Securities
Berhad.  United Chemical is an investment holding company which
was previously involved in the manufacture and sale of
polypropylene and polyethylene woven bags together with its
allied products.  Its subsidiary company, Geotextiles (M) Sdn
Bhd, was previously involved in the manufacture and sale of
geotextile fabrics together with its allied products.  United
Chemicals and Geotextiles (M) Sdn Bhd ceased manufacturing
operations in April 2003.  The companies plan to dispose of the
entire principal operation assets without intention to resume
business operations.

The Group has ceased its manufacturing operations and under the
proposed corporate restructuring exercise, the listing status
will be assumed by a new company, which will have a core
business of property development and related activities.  The
Securities Commission has given the Company until June 30, 2006,
to complete the implementation of its corporate restructuring
exercise.

The Company's March 31, 2006, balance sheet revealed strained
liquidity with total current assets of MYR5,355,618 available to
pay MYR77,704,705 in total current liabilities due in the next
12 months.


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

EAST ASIA POWER: Auditor Raises Going Concern Doubt
---------------------------------------------------
Sycip, Gorres, Velayo & Co., raised substantial doubt on East
Asia Power Resources Corp.'s going concern after auditing the
Company's financial report for the year ended December 31, 2006.

SGVC draws attention to the Company's consolidated financial
statements, which indicates that it has posted significant
losses and capital deficiencies as of Dec. 31, 2005, and 2004.
  
SGVC notes that the Company and its subsidiaries are
experiencing operational and financial difficulties as shown by
the inability of its remaining operating units, East Asia Diesel
Power Corp. and Duracom Mobile Power Corp., to generate
sufficient cash flows to meet obligations and sustain
operations, and the non-operation of its other subsidiaries
whose future business prospects are uncertain.  

The Group's operational and financial difficulties are indicated
by these events and circumstances:

   -- the remaining operating subsidiaries, East Asia Diesel and
      Duracom Mobile, failed to pay their loan amortizations on
      due dates, prompting the lead bank of the syndicate of
      bank lenders to declare both units in default.  East Asia
      Diesel's and Duracom Mobile's new interim Power Supply
      Agreement is effective until Dec. 25, 2006, or until the
      parties come up with a new PSA, whichever comes first.

   -- East Asia Power's unit, Sunrise Power Company, Inc., is
      not operating and has sold its power plant and related
      equipment.  After the sale, Sunrise Power still has a
      significant residual loan to the syndicate of bank
      lenders, which the lead bank already declared in default
      and due and demandable.  Sunrise Power did not recognize
      the default interest on the remaining loan balance since
      this is subject to or under negotiation.  East Asia Diesel
      guarantees Sunrise Power's loan and is in talks for its
      possible assumption of that loan under the same terms and
      conditions as its unsecured loan.  Since Sunrise Power's
      remaining assets are negligible, it is imminent that East
      Asia Diesel will assume the loan and the related interest.

   -- The board of directors of East Asia Power's units East
      Asia Power Services, Inc., and First Engineering Utilities    
      Services Corp. approved the suspension of these firms'   
      operations to allow their respective managements to
      evaluate the viability of their continued operations.
      Units East Asia Global Management Ltd and East Asia
      Transmission & Distribution Corp. are not operating, and
      their respective managements have been asked to recommend
      dissolution to their board of directors and shareholders.

The Company's consolidated financial statements for the year
ended December 31, 2005, show these key figures:

                 East Asia Power Reosurces Corp.
                     Financial Highlights
                      (in PHP millions)

                               As of             As of
                             12/31/2005        12/31/2004
                             ----------        ----------
     Current Assets      PHP844,765,036  PHP1,254,283,078
     Total Assets         4,912,816,852     5,744,461,964
     Current Liabilities  8,277,458,557     6,579,374,344
     Total Liabilities    8,342,557,402     8,652,701,398
     Capital Deficiency  (3,429,740,550)   (2,908,239,434)

                                     Year Ending
                             12/31/2005        12/31/2004
                             ----------        ----------
     Revenues from
        Energy Fees       3,199,244,548     3,650,226,386
     Costs & Expenses     4,018,975,711     4,102,500,641
     Net Loss               773,099,034       468,726,081

The Company has not declared dividends for the two fiscal years
preceding 2005.  It is restricted in its capacity to declare
dividends since it does not have any unrestricted retained
earnings.

                          *     *     *

East Asia Power Resources Corporation was established in 1975 as
a mining company under the name Olecram Mining Corporation.  It
ceased commercial operations as a mining firm after a decade and
changed its corporate name to Northwest Holdings & Resources
Corporation in 1992.  Consequently, the Company changed its
primary purpose from mining to holdings.  In 1996, the Company's
Board of Directors approved the change of its corporate name to
East Asia Power Resources Corporation.

East Asia Power operates power generation facilities in Metro
Manila, Bataan, Cebu and Mactan Island, and has interests in a
24 MW coal-fired power plant in Jiangsu Province in the People's
Republic of China.  In addition to its power plant operations,
the Company owns 100% of East Asia Power Services, Inc., which
offers planning, construction, operation and maintenance
consultancy services to other prospective and established power
generating facilities.  The Company also ventured into the
transmission and distribution sub-industries of the power sector
through the incorporation of a wholly owned subsidiary, East
Asia Transmission and Distribution Corporation.


STENIEL MANUFACTURING: To Seek Approval of Restructuring Plan
-------------------------------------------------------------
In a disclosure to the Philippine Stock Exchange, Steniel
Manufacturing Corp. will hold a joint special meeting of its
board of directors and stockholders on July 5, 2006, at 2:00
p.m., at the Board Room, Steniel Cavite Packaging Corp., Gateway
Business Park, General Trias, in Barangay Javalera, Cavite.

Stockholders will discuss the approval of the Company's proposed
business restructuring plans at the upcoming meeting.

                  About Steniel Manufacturing

Steniel Manufacturing Corporation -- http://www.steniel.com/--  
was incorporated in 1963 primarily to engage in manufacturing,
processing, and selling all kinds of paper products, paper board
and corrugated carton containers, and all other allied products
and processes.  The Company and its subsidiaries have
established a strong foothold in the packaging industry by
offering a broad line of packaging products from corrugated
carton boxes to paper, plastic containers, and flexible
packaging.  STN stands as the single largest independent
manufacturer of corrugated fibreboard containers in the
Philippines.  About 99% of its revenues come from the corrugated
packaging business while the remaining 1% is from rigid
plastics.

On October 30, 2000, Metro Pacific Corporation and Philippine
International Paper Corporation entered into a Sale and Purchase
Agreement with Steniel (Netherlands) Holdings B.V. whereby all
the 636,193,025 common shares collectively owned by MPC and PIPC
representing approximately 72.6% of the issued and outstanding
capital stock of the company were sold to Steniel (Netherlands)
in accordance with the terms and conditions provided for in the
SPA.

                          *     *     *

Steniel Manufacturing did not meet its maturing obligations due
as of December 31, 2005, to certain lender banks.  Management
has submitted its proposed plans and programs for the repayment
of the loans, which include, among others, the disposal of idle
assets of subsidiary companies, proceeds of which will be used
to pay off the loans, and extension of the repayment term of the
loans.


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

FHTK HOLDINGS: Lists and Quotes Renounceable Rights Shares
----------------------------------------------------------
Some 4,923,852,668 rights shares arising from FHTK Holdings
Limited's renounceable non-underwritten rights issue were listed
and quoted on the Official List of the Singapore Securities
Trading Exchange on June 19, 2006.

The Rights Shares were issued at a price of SGD0.005 for each
Rights Share on the basis of four Rights Shares for very one
existing ordinary share in the Company's capital held by
entitled shareholders.

As reported by the Troubled Company Reporter - Asia Pacific,
FHTK Holdings Limited received valid acceptances and excess
applications for a total of 2,629,092,312 rights shares,
representing approximately 53.4% of the total number of rights
shares offered under the Rights Issue as of the close of the
Issue on June 9, 2006.

The Company has raised net proceeds of SGD12.1 million after
deducting estimated expenses from the Rights Issue, and
discharged debts amounting to SGD11.5 million through the
allotment and issue of Rights Shares not taken up by entitled
shareholders and purchasers pursuant to the Rights Issue in
favor of the investors and creditors.

The Company intends to utilize the net proceeds of the Rights
Issue of SGD12.1 million to repay certain investors, certain
bank loans and for the Group's additional working capital.

                   About FHTK Holdings Limited

FHTK Holdings Limited -- http://www.fhtk.com.sg/-- distributes  
fruits and agricultural products such as apples, banana,
nectarines, pears and peaches through its own SunMoon brand. The
Company's agricultural products division distributes fresh
garlic as well as manufactures dehydrated garlic and onion
products.  The Group currently leases and manages 18 plantations
and totaling 1,630 hectares in the Shandong province in China.

The Company currently owes 11 separate trade creditors in China
a total of SGD2.8 million.  The individual debts range from
SGD85,000 to SGD668,000, and were incurred separately over a
period of time.  The creditors have taken separate legal actions
against the Company.


L&M GROUP: Unit Disposes of Property for SGD5.5 Million
-------------------------------------------------------
L&M Group Investments Limited's subsidiary -- L&M Precast (Tua)
Pte Limited -- on June 19, 2006, entered into a sale and
purchase agreement with Hiap Seng Engineering Ltd.

The Agreement is in respect of the sale by L&M Precast of the
property known as 24, 28 and 30 Tuas Crescent and certain
equipment and machinery for the sum of SGD5,500,000 to Hiap
Seng.

The sale and purchase is conditional upon:

   -- L&M Precast (Tuas) Pte Ltd obtaining approval from Jurong
      Town Corporation for renewal of the lease of two lots
      which form part of the Property to a date not later than
      February 16, 2018, and if the approval is given subject
      to any terms and conditions, the terms and conditions
      being acceptable to L&M Precast (Tuas) Pte Ltd and Hiap
      Seng Engineering Ltd; and

   -- Hiap Seng Engineering Ltd obtaining the approval from
      Jurong Town Corporation and where applicable, the relevant
      authority for the purchase of the Property for use as
      carrying out fabrication, installation, insulation, spray
      painting, welding, testing and other mechanical
      engineering works, general office and storage related to
      the approved industrial activities of Hiap Seng
      Engineering Ltd.

Bob Low Siew Sie, the judicial manager of L&M Group, will make
further announcements on the developments of the sale and
purchase of the Property.

               About L&M Group Investments Limited

Founded in 1971 and listed on the Stock Exchange of Singapore
since 1984, L&M Group Investments Ltd delivers its specialized
engineering and construction services through two divisions --
Geotechnic and Structural Systems.  Geotechnic Division
undertakes the design and construction of geotechnical
engineering and heavy foundation works, the sale of building
products and rental of engineering equipment.  Structural
Systems Division undertakes the design and construction of
structural and civil engineering works. In December 2005, the
Company sought to appoint a judicial manager to revive the
Company's operations.  The High Court of Singapore placed the
Company under judicial management on January 11, 2006, under Bob
Low Sie of Messrs Bob Low Sie & Company.  The Judicial
Management Order will remain in force until January 9, 2007.


LST CONSTRUCTION: Court to Hear Wind-Up Petition on June 30
-----------------------------------------------------------
An application for the wind-up of LST Construction Pte Limited
will be heard before the High Court of the Republic of Singapore
on June 30, 2006, at 10:00 a.m.

The wind-up petition was filed by Lee Construction Pte Limited
on May 26, 2006.

Contact: Messrs KOh Ong & Partners
         Solicitors for the Applicant
         50 Raffles Place #31-03
         Singapore Land Tower
         Singapore 048623


MEDIASTREAM LIMITED: Creditors Approve Professional Fees
--------------------------------------------------------
Creditors of Mediastream Limited, at a creditors meeting on
June 20, 2006, unanimously approved Judicial Managher Tim Reid's
professional fees.

The creditors also endorsed the management proposals presented
by Mr. Reid.

                   About FHTK Holdings Limited

FHTK Holdings Limited -- http://www.fhtk.com.sg/-- distributes  
fruits and agricultural products such as apples, banana,
nectarines, pears and peaches through its own SunMoon brand.  
The Company's agricultural products division distributes fresh
garlic as well as manufactures dehydrated garlic and onion
products.  The Group currently leases and manages 18 plantations
and totaling 1,630 hectares in the Shandong province in China.

The Company currently owes 11 separate trade creditors in China
a total of SGD2.8 million.  The individual debts range from
SGD85,000 to SGD668,000, and were incurred separately over a
period of time.  The creditors have taken separate legal actions
against the Company.


MILLENIUM-WESTMONT: Creditors Must Prove Claims by June 30
----------------------------------------------------------
Millenium-Westmont Pte Limited notifies parties-in-interest of
its intention to declare dividend as ordered by the High Court
of Singapore.

The Company's creditors are advised to submit their proofs of
claim to Liquidator Ong Yew Huat by June 30, 2006, to share in
the dividend distribution.

Contact: Ong Yew Huat
         c/o 10 Collyer Quay
         #21-01 Ocean Building
         Singapore 049315


X'PRESS LOGISTICS: Court Orders Winding Up
------------------------------------------
The High Court of the Republic of Singapore on June 2, 2006,
ordered the winding up of X'Press Logistics (S) Pte Limited.

As reported by the Troubled Company Reporter - Asia Pacific, the
wind-up petition was filed by Geodis Overseas Pte Limited on
May 8, 2006.
         
Contact: The Official Receiver
         Insolvency & Public Trustee's Office
         45 Maxwell Road #05-11/#06-11
         The URA Centre, East Wing
         Singapore 069118



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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
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Maryland, USA.  Valerie Udtuhan, Francis Chicano, Erica
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Fernandez, and Peter A. Chapman, Editors.

Copyright 2006.  All rights reserved.  ISSN: 1520-9482.
   
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