---

        T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

               Friday, June 23, 2006, Vol. 9, No. 124

                            Headlines

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

122-130 ARTHUR: Final Meeting Scheduled for June 26
ALL PROTECTION: Shuts Down Business
ANTAEUS CHARTERS: Liquidation Petition Hearing Set on July 3
BILLABONG SERVICES: Members Agree on Wind-up
BUFFALO FPSO: Placed Under Voluntary Liquidation

CABEL PROPERTIES: Creditors' Proofs of Debt Due on July 14
CUBD PTY: Supreme Court Orders Wind-up
CITILAND LIMITED: Court to Hear Liquidation Bid on July 6
CPC FOODS: To Declare Final Dividend on June 26
E&K TRENCHING: Names Mark Pearce as Liquidator

FRANKLIN PLUMBING: Faces Liquidation Proceedings
GARDNER HOTELS: Names Parsons and Kenealy as Liquidators
GEORGE & KAY: Court Appoints Joint and Several Liquidators
GLOBETROTTERS EDUCATION: Creditors Must Prove Debts by July 3
HIH INSURANCE: Courts Approve English & Australian Schemes

INSULATION SERVICES: Court to Hear Liquidation Bid on June 26
KEYLINK TECHNOLOGY: Inability to Pay Debts Prompts Wind-up
LAFRED PTY: Members and Creditors to Review Wind-up Report
MASSARI SYSTEMS: Official Receivers Appointed
MATES CENTRAL: To Pay Dividend to Creditors

N.Z. PROPERTY TRENDS: Creditors Must Prove Debts July 21
PRIMELIFE CORPORATION: Court Winds Up Managed Investment Scheme
PRIMO DEVELOPMENT: Receivers Step Aside
RETRAC ENGINEERING: Opts to Discontinue Operations
ROMNY GRANGE: To Distribute Final Dividend on June 26

RYEPELL PTY: Liquidator to Present Wind-up Report
SELEVAD INVESTMENTS: Court Set to Hear Liquidation Bid on July 3
SHEBRECO ENTERPRISES: Supreme Court Issues Wind-up Order
SONS OF GWALIA: To Appeal Court's Order on Margaretic Action
TELSTRA CORPORATION: ACCC Says Sale & FTTN Should Not Be Linked

TELSTRA CORPORATION: Renews United Group Contract for AU$90-Mil
TSP FORMWORK: Creditors Appoint Joseph Sleiman as Liquidator
VARGA GROUP: Members' Final Meeting Set on June 26
WRIGHTS JEWELLERY: Members Resolve to Wind Up Firm
WYNDRIDGE SHELFORD: Enters Voluntary Liquidation


C H I N A   &   H O N G  K O N G

ACTION WELL: Liquidator Ceases to Act for Company
CHO YANG: To Pay First and Final Dividend on June 30
CMC MAGNETIC: S&P Trims B+ Rating to B
EDA INVESTMENTS: Prepares to Pay Dividend to Creditors
HANSVENTURE INTL: Members to Receive Liquidator's Report

KOCH ASPHALT: Court Appoints Joint Liquidators
LEADKEEN INDUSTRIAL: Court Favors Wind-up Petition
L.V.O. DEVELOPMENT: Court to Hear Winding-Up Bid on July 26
LONGWELL (HONG KONG): Liquidator to Present Wind-up Report
MAJESTE TRADING: Members Final Meeting Set on July 13

MOULIN GLOBAL: Court Orders Winding-up
MULTI-LUCK DEVELOPMENT: Faces Winding-up Proceedings
TIMDER DEVELOPMENT: Final Meeting of Members Set on July 18
WAI CHUN CONSTRUCTION: Joint Liquidators Step Aside
WINSUN INVESTMENT: Court to Hear Wind-up Bid on July 26

WIN VICTORY: Creditors and Contributories to Meet June 28
* Moody's Says Banks' Tightening Measures Could Spur Downgrades


I N D I A

INDIAN OIL: To Invest INR3,000 Crore in Haldia Refinery
GENERAL MOTOR: US$4.48-Billion Bank Loan Gets BB from Fitch
PARBHANI PEOPLE'S: Reserve Bank Cancels License Over Insolvency


I N D O N E S I A

GAJAH TUNGGAL: Moody's Affirms B2 Corporate Rating
PAITON ENERGY: Moody's Downgrades Senior Secured Rating To B3
PERUSAHAAN LISTRIK: Hopes to Build Plants Without Open Bidding
PERUSAHAAN LISTRIK: Provides Energy-Efficient Lamps to Clients


J A P A N

HANKYU HOLDINGS: S&P Affirms 'BB' Rating Upon Completed Takeover
MITSUI SUMITOMO: FSA Suspends Sales Over Unpaid Insurance Claims
NIPPON SHEET: S&P Affirms BB+ Rating After Pilkington Purchase


K O R E A

DAEWOO ELECTRONICS: Foreign Companies Submit Preliminary Bids
DAEWOO ENGINEERING: KAMCO to Profit Tremendously on Sale
HYNIX SEMICONDUCTOR: Concentrates on Graphic Chips
HYNIX SEMICONDUCTOR: Court Favors Rambus in Patent Case
HYNIX SEMICONDUCTOR: Enters Partnership with FormFactor

KOREA EXCHANGE: Prosecutors Step Up Probe on Lone Star Sale


M A L A Y S I A

ANTAH HOLDINGS: Court Extends Relief Until August 1
AYER HITAM: Total Default Amount Reaches MYR40 Million
CONSOLIDATED FARMS: High Court Orders Wind-up of Unit
JOHAN HOLDINGS: Bourse Denies Account Filing Deadline Extension
KIG GLASS: Obtains 90-day Reprieve from High Court

LITYAN HOLDINGS: Seeks to Avert Delisting
MALAYSIA AIRLINES: Mulls Amendment of Articles of Association
METROPLEX BERHAD: FIC Okays Proposed Property Disposal
OMEGA HOLDINGS: Bourse Removes Shares from Official List
PATIMAS COMUTERS: Taps Partners to Boost Local & Foreign Ops

POLYMATE HOLDINGS: Bumiputra Commerce Files MYR5.8-Million Claim
POLYMATE HOLDINGS: Unit Gets Another Claim Payment Demand
PROTON HOLDINGS: Watchdog Closes MV Agusta Case
SUREMAX GROUP: TT Dotcom Withdraws Claim After MYR2,500 Payment


P H I L I P P I N E S

HACIENDA LUISITA: Farmers May Hold Strike on TRO
LIBERTY TELECOMS: Releases Results of Board Meeting


S I N G A P O R E

CLEANMATIC SERVICES: Intends to Declare Dividend
FORTE AIR CONDITIONING: Creditors Must Prove Debts by June 30
FRONT PAGE DISTRIBUTORS: Creditors' Proofs of Claim Due June 30
ELOGICITY INTERNATIONAL: To Pay Final Dividend to Contributories
ELSNER ASIA: Court Issues Wind-Up Order


T H A I L A N D

iTV PLC: PM's Office Demands THB76-Bil in Concession Payments
THAI PETROCHEMICAL: Board Okay's US$1 Billion Refinancing Plan

* Large Companies With Insolvent Balance Sheets

     - - - - - - - -

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

122-130 ARTHUR: Final Meeting Scheduled for June 26
---------------------------------------------------
A final meeting of the members of 122-130 Arthur Street Property
Pty Limited will be held on June 26, 2006, at 10:00 a.m.

During the meeting, Liquidator M. C. Smith will report about the
Company's wind-up exercise and property disposal.

Contact: M. C. Smith
         Liquidator
         McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia
         Telephone: (02) 9338 2666
         Web site: http://www.mcgrathnicol.com.au/


ALL PROTECTION: Shuts Down Business
-----------------------------------
The members of All Protection Tinting Corporation Pty Limited
held a meeting on May 11, 2006, and agreed to shut down the
Company's business operations.

Creditors 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


ANTAEUS CHARTERS: Liquidation Petition Hearing Set on July 3
------------------------------------------------------------
The Commissioner of Inland Revenue on May 17, 2006, filed before
the High Court of Hamilton a petition to liquidate Antaeus
Charters Ltd.

The High Court will hear the petition on July 3, 2006, at 10:45
in the morning.

Contact: S.J. Eisdell Moore
         c/o R.E. Harvey
         Offices of Meredith Connell
         Level 17, Forsyth Barr Tower
         55-65 Shortland Street, Auckland
         New Zealand
         Telephone: (09) 336 7556


BILLABONG SERVICES: Members Agree on Wind-up
--------------------------------------------
At a general meeting on May 12, 2006, the members of Billabong
Services Pty Limited decided to voluntarily wind up the
Company's operations.

Danny Vrkic was consequently appointed as liquidator to manage
the wind-up activities.

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


BUFFALO FPSO: Placed Under Voluntary Liquidation
------------------------------------------------
The members of Buffalo FPSO Pty Limited convened on May 12,
2006, and agreed that the Company should wind up its operations
voluntarily.

Contact: Timothy James Cuming
         David Clement Pratt
         Liquidators
         Level 15, 201 Sussex Street
         Sydney, New South Wales 1171
         Australia


CABEL PROPERTIES: Creditors' Proofs of Debt Due on July 14
----------------------------------------------------------
Liquidator William John Dent of Cabel Properties Ltd will be
receiving creditors' proofs of debt until July 14, 2006.

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

Contact: William John Dent
         Staples Rodway Hawkes Bay Limited
         Chartered Accountants
         P.O. Box 46, Hastings
         New Zealand
         Telephone: (06) 878 7004


CUBD PTY: Supreme Court Orders Wind-up
--------------------------------------
The Supreme Court of New South Wales issued a winding up order
on CUBD Pty Limited on May 16, 2006.

The Court also ordered the appointment of Steven Nicols as
liquidator.

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


CITILAND LIMITED: Court to Hear Liquidation Bid on July 6
---------------------------------------------------------
An application to put Citiland Ltd into liquidation will be
heard before the High Court of Auckland on July 6, 2006, at
10:00 in the morning.    

The High Court received the petition from the Auckland City
Council on May 3, 2006.

Contact: R. B. Lange
         Simpson Grierson, Solicitors
         Level Twenty Seven
         88 Shortland Street, Auckland
         New Zealand


CPC FOODS: To Declare Final Dividend on June 26
-----------------------------------------------
CPC Foods (Pacific) Pty Limited will declare its first and final
dividend on June 26, 2006.

Creditors who were not able to prove their claims will be
excluded from sharing in any distribution the Company will make.

Contact: C. P. White
         Liquidator
         HLB Mann Judd Chartered Accountants
         Level 1, 160 Queen Street
         Melbourne, Victoria 3000
         Australia


E&K TRENCHING: Names Mark Pearce as Liquidator
----------------------------------------------
At a meeting of E&K Trenching & Boring Pty Limited held on
May 11, 2006, Mark Pearce was appointed as liquidator to oversee
the Company's wind-up activities.

Contact: Mark Pearce
         Pearce & Heers Insolvency Accountants
         Level 8, 410 Queen Street  
         Brisbane, Australia
         Telephone: (07) 3221 0055
         Fax: (07) 3221 8885


FRANKLIN PLUMBING: Faces Liquidation Proceedings
------------------------------------------------
An application to put Franklin Plumbing Services Ltd into
liquidation will be heard before the High Court of Wellington on
June 26, 2006, at 10:00 a.m.   

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


GARDNER HOTELS: Names Parsons and Kenealy as Liquidators
--------------------------------------------------------
Dennis Clifford Parsons and Katherine Louise Kenealy were on
June 8, 2006 appointed as joint and several liquidators of
Gardner Hotels Ltd.

Contact:  D. C. Parsons
          c/o C. Sanderson Indepth Forensic Ltd
          P.O. Box 278, Hamilton
          New Zealand
          Telephone: (07) 957 8674
          Facsimile: (07) 957 8677


GEORGE & KAY: Court Appoints Joint and Several Liquidators
----------------------------------------------------------
The High Court at Blenheim on June 7, 2006, ordered the
appointment of Iain Bruce Shephard and Christine Margaret Dunphy
as joint and several liquidators of George & Kay Contractors
Ltd.

Contact: Christine Dunphy
         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


GLOBETROTTERS EDUCATION: Creditors Must Prove Debts by July 3
-------------------------------------------------------------
Joint Liquidators Arron Leslie Heath and Michael Lamacraft
require the creditors of Globetrotters Education Ltd to submit
their proofs of debt by July 3, 2006.

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

Contact: M. Lamacraft
         Meltzer Mason Heath
         Chartered Accountants
         P.O. Box 6302, Wellesley Street
         Auckland, New Zealand
         Telephone: (09) 357 6150
         Facsimile: (09) 357 6152


HIH INSURANCE: Courts Approve English & Australian Schemes
----------------------------------------------------------------
On March 29, 2006, meetings of the creditors of the eight
companies in the HIH Insurance Group approved Australian Schemes
of Arrangement for those companies.

The eight HIH companies for which the Australian Schemes were
approved are:

   1. HIH Casualty & General Insurance Limited
   2. FAI General Insurance Company Limited
   3. CIC Insurance Limited
   4. FAI Insurances Limited
   5. FAI Reinsurances Pty Limited
   6. FAI Traders Insurance Company Pty Limited
   7. HIH Underwriting & Insurance (Australia) Pty Limited
   8. World Marine & General Insurances Pty Limited

Moreover, separate meetings of creditors of four HIH Insurance
Group companies with branches in the United Kingdom approved
English Schemes for those companies.

The four HIH companies for which the English Schemes were
approved are:

   1. HIH Casualty & General Insurance Limited
   2. FAI General Insurance Company Limited
   3. FAI Insurances Limited
   4. World Marine and General Insurances Pty Limited

Business Credit Management reports that on June 12, 2006,
Justice Richard of the High Court of Justice of England and
Wales approved the English Schemes of Arrangement for the four
HIH companies.

The report says that the Schemes took effect on June 13, 2006,
when the Court Orders were lodged with Companies House.

BCM relates that the Australian Schemes of Arrangement were
sanctioned by the Supreme Court of New South Wales on May 26,
2006, and took effect on May 30.

BCM cites Tom Riddell, partner at KPMG LLP (UK) and joint
provisional liquidator of the HIH companies in England, as
saying that "the English Schemes of Arrangement for the HIH
companies are complementary to the Australian Schemes."

Mr. Riddell says that with the Schemes being approved in both
jurisdictions, it will be possible to commence creditor
distributions.

It is expected that the first distribution for HIH Casualty &
General Insurance Limited, FAI General Insurance Company Limited
and CIC Insurance Limited, at the rate of 5%, will be paid to
creditors in July, Mr. Riddell reveals.

BCM notes that the Schemes of Arrangement are provided for by
Section 425 of the Companies Act 1985 of England and Section 411
of the Corporations Act 2001 of Australia, and set out the rules
by which the ongoing administration and management of a company
are governed.

The Joint Provisional Liquidators of the HIH Group companies in
the U.K. are Tony McMahon, Tom Riddell and John Wardrop,
partners in the Restructuring team of KPMG LLP (UK).

                     About HIH Insurance

HIH Insurance Limited -- the holding company of the HIH Group --
was a publicly listed company in Australia.  Prior to its
collapse, the HIH Group was known as the second largest general
insurer in Australia, and had operations in many other
countries.

On March 15, 2001, the HIH Group failed, with a deficiency now
believed to be between AU$3.6 billion and AU$5.3 billion.  
Provisional liquidators were appointed to HIH Insurance Limited
and many of its subsidiaries.  Other insolvency practitioners
were appointed to various group companies incorporated in other
parts of the world.  In August 2001, the major Australian
companies in the HIH Group were placed into liquidation.

In November 2005, the Australian Liquidators received a court
order granting permission to convene meetings of creditors of
the eight HIH companies that formerly held Australian insurance
licenses to consider and vote on the proposed Schemes of
Arrangement.  On November 25, 2005, the English Provisional
Liquidators received a similar court order from the High Court
in England.  These meetings were held on March 29, 2006.

HIH's collapse is known to be the nation's biggest corporate
failure.


INSULATION SERVICES: Court to Hear Liquidation Bid on June 26
-------------------------------------------------------------
The High Court of Wellington will on June 26, 2006, at 10:00
a.m. hear an application to liquidate Insulation Services
(Wellington) Ltd.

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

Contact: Rachel Laura Roff
         Technical and Legal Support Group
         Wellington Service Centre
         1/F., New Zealand Post House
         7-27 Waterloo Quay, Wellington
         New Zealand
         Telephone: (04) 890 1116
         Facsimile: (04) 890 0009


KEYLINK TECHNOLOGY: Inability to Pay Debts Prompts Wind-up
----------------------------------------------------------
The members and creditors of Keylink Technology Pty Limited met
on May 11, 2006, and decided to wind up the Company's operations
due to its inability to pay debts when they fall due.

Geoffrey McDonald was consequently named liquidator.

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


LAFRED PTY: Members and Creditors to Review Wind-up Report
----------------------------------------------------------
The members and creditors of Lafred Pty Limited will hold a
final meeting on June 26, 2006, at 10:30 a.m.

During the meeting, they will get an account of the manner of
the Company's wind-up and property disposal from Liquidator
Christopher J. Palmer.

Contact: Christopher J. Palmer
         Liquidator
         Level 4, 23-25 Hunter Street
         Sydney, New South Wales 2000
         Australia


MASSARI SYSTEMS: Official Receivers Appointed
---------------------------------------------
The Australia & New Zealand Banking Group on May 12, 2006,
appointed Matthew Campbell Muldoon and Kenneth Stewart Sellers
as receivers and managers of the property and undertakings of
Massari Systems Pty Limited.

Contact: Matthew C. Muldoon
         Kenneth S. Sellers
         Receivers
         SimsPartners
         Level 2, 446 Collins Street
         Melbourne, Victoria 3000
         Australia


MATES CENTRAL: To Pay Dividend to Creditors
-------------------------------------------
Mates Central West Management Pty Limited will declare its first
and final dividend to priority creditors on June 27, 2006, to
the exclusion of creditors who were not able to prove their
claims.

Contact: R. G. Tolcher
         Deed Administrator
         Lawler Partners Chartered Accountants
         763 Hunter Street, Newcastle West
         New South Wales 2302, Australia


N.Z. PROPERTY TRENDS: Creditors Must Prove Debts July 21
--------------------------------------------------------
Shareholders of N.Z. Property Trends Ltd on May 30, 2006, passed
a special resolution appointing Peri Micaela Finnigan and John
Trevor Whitfield as joint liquidators.

The Joint Liquidators require the Company's creditors to submit
their proofs of claim by July 21, 2006.

Contact: Peri Finnigan
         McDonald Vague, P.O. Box 6092
         Wellesley Street Post Office
         Auckland, New Zealand
         Telephone: (09) 303 0506
         Facsimile: (09) 303 0508
         Web site: http://www.mvp.co.nz/


PRIMELIFE CORPORATION: Court Winds Up Managed Investment Scheme
---------------------------------------------------------------
On May 19, 2006, the Federal Court of Australia entered final
orders on the completion of the winding up of an unregistered
managed investment scheme relating to Primelife Corporation
Limited and Camberwell Green Retirement Village, after
proceedings brought by the Australian Securities and Investments
Commission.

After considering the views of all investors and a report from
Andrew McLellan, an independent accountant appointed to
investigate and report into the past affairs of the scheme,
Justice Goldberg of the Federal Court approved one of two
proposals provided by investors.

The approved proposal involves:

   1. a deed of settlement between Primelife and the scheme
      investors under which the Camberwell Green Village was
      returned to Primelife; and

   2. the net proceeds of that sale being returned to investors
      in the scheme.

Before issuing the orders, the Court heard that the settlement
with Primelife was the best proposal available in the
circumstances.  Investors have been given almost one year to
develop alternative proposals for winding up the scheme, rather
than the usual remedy of appointing a liquidator.

Justice Goldberg rejected the other proposal because he believes
that it was neither practical nor within the Court's power to
approve.

With the consent of the defendants, the wind-up orders ensure
that:

   (a) there is a review of the scheme's books and records by
       Mr. McLellan which will identify the assets and identity
       of investors.  Mr. McLellan will provide a report of his
       findings to investors and the Court; and

   (b) all investors have had adequate opportunity to develop
       and consider proposals about how the scheme should be
       wound up.

"ASIC acted to ensure that investors were able to make informed
decisions and maximize their returns from the winding up of this
unregistered scheme," Jan Redfern, ASIC's Executive Director of
Enforcement, said.

Mr. Redfern reports that ASIC has now finalized 10 proceedings
and another 14 have been ordered to be wound up, but are
awaiting final orders as to the manner in which they are to be
wound up.  ASIC will continue to deal with these 14 and 15 other
proceedings as efficiently as possible, Mr. Redfern says.

Mr. Redfern notes that ASIC's proceedings should not cause any
disruption to residents of the retirement villages and aged care
facilities operated by Primelife.

                        About Primelife

Headquartered in Melbourne, Australia, Primelife Corporation --
http://www.primelife.com.au-- develops and manages properties  
catering to a wide range of senior living needs, including
independent retirement living, serviced apartments, aged care or
low care hostels and high care nursing homes, and in-home care.
  
Primelife almost skidded into insolvency when on September 23,
2004, the Australian Securities and Investments Commission filed
37 proceedings in the Federal Court of Australia seeking, among
other things, orders that an investigating accountant be
appointed over managed investment schemes under Primelife to
report to the Federal Court to ascertain the position of each of
the schemes. ASIC also applied for the schemes to be wound up.

ASIC alleged that the schemes are not registered, as required
under the Corporations Act.  ASIC brought the Federal Court
proceedings against Primelife and a number of other defendants
including parties who, ASIC alleges, have been involved in
promoting and managing the schemes to a large number of
investors since 1997.  

The unregistered schemes were completely wound up in October
2005.  The Company had currently resolved most of the legal
issues and was turning the corner after a tough couple of years.


PRIMO DEVELOPMENT: Receivers Step Aside
---------------------------------------
John Ronald Hart and Martin David Lewis had on May 17, 2006,
ceased to act as joint receivers and managers of the assets and
undertakings of Primo Development Group Pty Limited.


RETRAC ENGINEERING: Opts to Discontinue Operations
--------------------------------------------------
The members of Retrac Engineering Pty Limited held a meeting on
May 15, 2006, and agreed to shut down the Company's business
operations.

Subsequently, Roderick Mackay Sutherland was named liquidator.

Contact: Roderick M. Sutherland
         Liquidator
         Jirsch Sutherland Chartered Accountants
         Level 2, 84 Pitt Street
         Sydney, New South Wales 2000
         Australia
         Telephone: (02) 9233 2111
         Fax: (02) 9233 2144


ROMNY GRANGE: To Distribute Final Dividend on June 26
-----------------------------------------------------
Romny Grange Pty Limited will distribute a first and final
dividend on June 26, 2006.

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

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


RYEPELL PTY: Liquidator to Present Wind-up Report
-------------------------------------------------
A final meeting of the members of Ryepell Pty Limited will be
held on June 27, 2006, at 10:30 a.m., for them to receive
Liquidator John D Adams' final account showing how the Company
was wound up and how its property was disposed of.

Contact: John D. Adams
         Liquidator
         Horwath BRI (Victoria) Chartered Accountants
         Level 30, The Rialto
         525 Collins Street, Melbourne
         Victoria 3000, Australia


SELEVAD INVESTMENTS: Court Set to Hear Liquidation Bid on July 3
----------------------------------------------------------------
The High Court of Wellington on May 17, 2006, received from the
Commissioner of Inland Revenue an application to liquidate
Selevad Investments.

The petition will be heard before the High Court on July 3,
2006, at 10:00 in the morning.

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


SHEBRECO ENTERPRISES: Supreme Court Issues Wind-up Order
--------------------------------------------------------
The Supreme Court of Australia ordered the winding up of
Shebreco Enterprises Pty Limited on May 11, 2006.

Steven Nicols was consequently appointed as official liquidator.

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


SONS OF GWALIA: To Appeal Court's Order on Margaretic Action
------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
March 1, 2006, Luka Margaretic bought AU$26,000 worth of shares
in Sons of Gwalia Ltd. in 2004, barely two weeks before its
collapse.  Mr. Margaretic claimed that the Company has breached
continuous disclosure obligations and engaged in misleading and
deceptive conduct.

Mr. Margaretic initiated a legal action against Gwalia.  
Subsequently, Justice Arthur Emmet of the Federal Court ruled in
Mr. Margaretic's favor and directed the Company to consider him
as a creditor.

In an update, ABC News Online says that the High Court, on
June 16, 2006, permitted the Company to file an appeal against
Judge Emmet's decision.

According to the March 1 TCR-AP report, Gwalia's administrators,
Garry Trevor and Darren Weaver, of Ferrier Hodgson, had already
appealed the Federal Court's decision before.  However, on
February 27, 2006, three Federal Court judges have dismissed the
Gwalia Administrators' Appeal.  The full court held unanimously
that Mr. Margaretic would rank alongside unsecured creditors if
he succeeds in proving a misleading and deceptive conduct case
against the failed goldminer.

Gwalia, together with another creditor, ING, applied for a
special leave to challenge the Federal Court's order.

The TCR-AP report noted that although the Court's ruling only
applied to investors who bought their shares on market and can
prove that they were led into believing that Gwalia was worth
investing in, it has sparked fears that other classes of
creditors could have their returns dramatically cut and that the
liquidation process would become much longer and more expensive.  

Gwalia's administrators have already received AU$40 million
worth of claims from more than 1,000 shareholders who will fight
for the AU$400 million allocated to satisfy around
AU$900 million of total creditor claims.

Headquartered in Perth, Western Australia, Sons of Gwalia Ltd --
http://sog.com.au/-- is a mining company listed on the  
Australian Stock Exchange for over 20 years.  The Company had
two operating divisions, Gold and Advanced Minerals.  Sons of
Gwalia is the world's single biggest producer of Tantalum.  In
August 2004, Gwalia announced a strategic review, which included
AU$10 million in cost savings for 2003-04 and the loss of 100
jobs from the gold division and Perth head office, after the
Company failed to meet its hedging commitments due to serious
deterioration of its gold reserves and resources.  The Company
collapsed with AU$862 million in debt, and called in joint and
several administrators Andrew Love, Garry Trevor and Darren
Weaver of Ferrier Hodgson.  The Company was also unable to
obtain agreement of all creditor counterparties to a standstill
agreement.  In February 2006, Gwalia announced that it will
undertake an operational restructure following recent agreements
reached with its two major customers for reduced sales volumes
in return for production and product specification flexibility.  
The operational restructure will maximize tantalum production at
Gwalia's lower cost Wodgina mine.


TELSTRA CORPORATION: ACCC Says Sale & FTTN Should Not Be Linked
---------------------------------------------------------------
The Government's impending sale of its 51% stake in Telstra
Corporation should not be linked to the telco's proposed
AU$3-billion fiber-to-the-node network, The Age reports, citing
the Australian Competition and Consumer Commission.

As reported in the Troubled Company Reporter - Asia Pacific in
May 2006, Telstra is in discussions with the ACCC about how the
high-speed FTTN network will be regulated.  According to press
reports, the outcome of those discussions will affect the
Government's decision on whether or not to sell its remaining
stake in Telstra.

However, according to The Age, Telstra wants to ensure that it
is not disadvantaged by Government red tape, and that it can
recover its costs, before committing to the investment.

The Age says that ACCC chairman Graeme Samuel backed Telstra's
demand for regulatory certainty on and said that this could be
achieved if the telco submitted its proposal and the ACCC ruled
on it.

Mr. Graeme pointed out that linking the FTTN discussions to the
sale only confuses the issue.  Yet, if the sale process
proceeds, it will deal with all the factors, which impact
Telstra's businesses and its future financial forecasts.

                         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.


TELSTRA CORPORATION: Renews United Group Contract for AU$90-Mil
---------------------------------------------------------------
Telstra Corporation has renewed its end-to-end property and
facilities management contract with infrastructure and
industrial services company, United Group Limited, ACN Newswire
says.

The contract, first awarded to United Group in 2001 for a five
year period, has been signed for a further three years and will
continue to be managed by United Group's business process
outsourcing business United Group Services.  The decision to
renew ensures that Telstra can maintain focus on core activities
while United Group Services continues to provide property and
facility management services for Telstra's portfolio of
commercial, industrial and residential properties and special
purpose assets.

United Group Limited Managing Director and Chief Executive
Officer Richard Leupen valued the renewal of the high profile
contract, saying it reflects United Group's increasing
capabilities within the property management sector.

The three-year contract is effective from September 2006, with
its implementation having no impact on Telstra's day-to-day
activities.

Telstra's property and facility management portfolio boasts
around 14,000 Australian sites incorporating 2.46 million square
meters of space, consisting of offices, retail sites, exchanges,
warehouses, call centers, residences.  United Group Services
will also continue to deliver property management services for
Telstra's mobile and network sites.  The contract is valued at
approximately AU$90 million.

The service scope includes both strategic property portfolio
services as well as day-to-day property management services
including real estate transactions, facilities management,
capital works, finance and administration, strategy and
planning, mobile acquisitions, divestments and acquisitions.

                   About United Group Limited

United Group Limited is a diversified electrical and mechanical
engineering, construction and maintenance group servicing
clients in the energy, mining, mineral processing,
petrochemical, refinery, chemical, government utilities and
industrial sectors, operating throughout Australia.

                         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.


TSP FORMWORK: Creditors Appoint Joseph Sleiman as Liquidator
------------------------------------------------------------
At a meeting of the creditors of TSP Formwork Pty Limited on
May 12, 2006, Joseph Sleiman was appointed as liquidator to take
charge of the Company's wind-up activities.

Contact: Joseph Sleiman
         Liquidator         
         Sleiman & Co.
         Level 8, 65 York Street
         Sydney, New South Wales
         Australia


VARGA GROUP: Members' Final Meeting Set on June 26
--------------------------------------------------
Members of Varga Group Investment (No.6) Pty Limited will
convene in a final meeting on June 26, 2006, at 10:00 a.m.

During the meeting, Liquidator M.C. Smith will present accounts
of the Company's wind-up process.

Contact: M. C. Smith
         Liquidator
         McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia
         Telephone: (02) 9338 2666
         Web site: http://www.mcgrathnicol.com.au/


WRIGHTS JEWELLERY: Members Resolve to Wind Up Firm
--------------------------------------------------
At a general meeting of the members of Wrights Jewellery (Gold
Coast) Pty Limited on May 15, 2006, it was agreed that a
voluntary wind-up of the Company's operations is appropriate and
necessary.

In this regard, Kenneth Bruce Butler was appointed as
liquidator.

Contact: Kenneth B. Butler
         Liquidator
         Suite 309, Level 1, 87 Griffith Street
         Coolangatta Queensland 4225
         Australia


WYNDRIDGE SHELFORD: Enters Voluntary Liquidation
------------------------------------------------
The members of Wyndridge Shelford Pty Limited convened on
May 12, 2006, and opted to:

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

  -- appoint Russell Peake as liquidator to manage the wind-up
     activities.

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


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

ACTION WELL: Liquidator Ceases to Act for Company
-------------------------------------------------
The Official Receiver has ceased to act as liquidator of Action
Well Development Ltd on May 26, 2006.


CHO YANG: To Pay First and Final Dividend on June 30
----------------------------------------------------
Cho Yang (Hong Kong) Company Ltd will pay its first and final
dividend on June 30, 2006, to the Company's preferential and
ordinary unsecured creditors.

Preferential creditors will receive 100% payment while unsecured
creditors will only get 7% of the total payment.

Contact: Baker Tilly Hong Kong
         12/F., China Merchants Tower
         Shun Tak Centre
         168-200, Connaught Road Central
         Hong Kong


CMC MAGNETIC: S&P Trims B+ Rating to B
--------------------------------------
Standard & Poor's Ratings Services on June 20, 2006, lowered its
long-term corporate credit rating and senior unsecured issue
rating on CMC Magnetic Corp to B from the previous rating of B+.

The rating agency had removed the Company's ratings from
CreditWatch, where they had been placed with negative
implications since October 12, 2005.

The overall rating's outlook is negative.

Credit analyst Raymond Hsu, said the downgrade reflects the
Company's:

     -- high refinancing risk
    
     -- negative free cash flow; and
    
     -- rising net debt, which is a result of:

These factors are reportedly the results of the Company's
declining profitability and aggressive capital spending.

CMC is the world's largest manufacturer of optical storage media
products, including recordable compact discs and digital
versatile recordable discs.

S&P relates that the optical storage media industry carries high
industry risks because of:

     -- constantly declining product prices

     -- low entry barriers; and

     -- significant threats from competing technology, such as
        flash memory that has caused a decline in demand for
        CDRs.

The industry has plunged into a deep recession since the second
quarter of 2004 because of a capacity glut.  Moreover, high raw
material costs have exacerbated margin pressure.  As a result,
CMC incurred net losses in 2004-2005.

According to S&P, CMC Corp has remained committed to aggressive
capital spending and continued to incur negative free operating
cash flow over the past five quarters, despite severe industry
downturn and heightened refinancing pressures.

As a result, the Company's leverage has deteriorated further.
CMC's net debt rose to TWD26.9 billion as at March 31, 2006 from
TWD22.9 billion at the end of 2004.  This, together with lower
profitability, resulted in an annualized ratio of total debt to
EBITDA of 5.7x in the first quarter of 2006, up from 3.9x in
2004.

Given low profits, free operating cash flow is unlikely to turn
positive over the near term unless CMC significantly reduces its
capital spending.

                          *     *     *
Based in Taiwan, CMC Magnetic Corp - http://www.cmcnet.com.tw/-  
is the world's largest manufacturer of optical storage media
products, including recordable compact discs and digital
versatile recordable discs.


EDA INVESTMENTS: Prepares to Pay Dividend to Creditors
------------------------------------------------------
In preparation for intended payment of dividend, Joint
Liquidators Jan GW Blaauw and Man Kou Tan require the creditors
of Eda Investments Ltd to submit their proofs of claim by June
30, 2006.

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

Contact: Man Kou Tan
         22/F., Prince's Bldg
         Central, Hong Kong


HANSVENTURE INTL: Members to Receive Liquidator's Report
--------------------------------------------------------
Members of Hansventure International Ltd will be receiving
Liquidator Wong Leung Wai's final report regarding the Company's
wind-up operation and how its property was disposed of.  

The report will be presented on July 18, 2006, 11:00 a.m. at 65
Tras Street, Singapore.


KOCH ASPHALT: Court Appoints Joint Liquidators
----------------------------------------------
The High Court of Hong Kong on June 5, 2006, ordered the
appointment of Cosimo Borrelli and Kelvin Edward Flynn as joint
and several liquidators for Koch Asphalt Products (Hong Kong) Co
Ltd.


LEADKEEN INDUSTRIAL: Court Favors Wind-up Petition
--------------------------------------------------
A petition to wind-up Leadkeen Industrial Ltd was filed with the
Court of First Instance of Hong Kong on June 21, 2005.

On June 5, 2006, the Court decided and ordered that the
Company's operations be wound up.


L.V.O. DEVELOPMENT: Court to Hear Winding-Up Bid on July 26
-----------------------------------------------------------
A petition to wind-up L.V.O. Development Ltd will be heard
before the High Court of Hong Kong on July 26, 2006, at 9:30
a.m.   

The High Court received the application from the Bank of China
(Hong Kong) Ltd on May 25, 2006.

Contact: Gallant Y.T. Ho & Co.
         Solicitors for the Petitioner
         5th Floor Jardine House
         No. 1 Connaught Place
         Central, Hong Kong


LONGWELL (HONG KONG): Liquidator to Present Wind-up Report
----------------------------------------------------------
Liquidator Young Wai Ching will present to members of Longwell
(Hong Kong) Ltd accounts of the Company's wind-up.

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


MAJESTE TRADING: Members Final Meeting Set on July 13
-----------------------------------------------------
Members of Majeste Trading Co Ltd will convene for their final
general meeting on July 13, 2006 at 10:00 a.m.

During the meeting, Liquidator Young Wai Ching will present
final accounts of the Company's wind-up operations.

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


MOULIN GLOBAL: Court Orders Winding-up
--------------------------------------
The Court of First Instance of Hong Kong on June 5, 2006,
ordered the winding up of Moulin Global Eyecare Holdings Ltd.

A petition to wind-up the Company's operation was submitted
before the High Court on June 21, 2005.

                          *    *    *

Based in Hong Kong, Moulin Global Eyecare Holdings
--http://www.moulin.com.hk-- was once the world's third-largest  
maker of eyeglasses until it went into liquidation last year.  
The primary activity of the Company was manufacturing and
designing ophthalmic goods, the Company was also engaged in
distribution and retailing of optical frames and sunglasses.  
The Company owes creditors in Hong Kong over HKD2.4 billion.


MULTI-LUCK DEVELOPMENT: Faces Winding-up Proceedings
----------------------------------------------------
Hi-Watt International Enterprises Ltd on May 24, 2006, filed
before the High Court of Hong Kong a petition to wind up
Multi-Luck Development Ltd.

The High Court will hear the petition on July 19, 2006, at 9:30
in the morning.

Contact: Messrs. Wat & Co.
         Solicitors for the Petitioner
         12/F., Chuang's Tower
         30 & 32 Connaught Road, Central
         Hong Kong


TIMDER DEVELOPMENT: Final Meeting of Members Set on July 18
-----------------------------------------------------------
Members of Timder Development Ltd will convene for their final
general meeting at No 116 Mei Kang Road, Mei Kang Tran, Chiang
Hwa Shien, Taiwan on July 18, 2006 at 10:00 a.m.

During the meeting, members will be asked:

     -- to receive the liquidator's report regarding the
        Company's wind-up operation;

     -- to approve the liquidator's statement of accounts; and

     -- to decide whether the Company's books, accounts and
        documents be retained for three months after the
        dissolution of the Company and be destroyed thereafter.


WAI CHUN CONSTRUCTION: Joint Liquidators Step Aside
---------------------------------------------------
David Richard Hague and John Toohey ceased to act as joint and
several liquidators of Wai Chun Construction Company Ltd on
May 2, 2006.


WINSUN INVESTMENT: Court to Hear Wind-up Bid on July 26
-------------------------------------------------------
The Bank of China (Hong Kong) Ltd on May 25, 2006, filed before
the High Court of Hong Kong a petition to wind up Winsun
Investment & Development Ltd.

The High Court will hear the petition on July 26, 2006, at 9:30
in the morning.

Contact: Gallant Y.T. Ho & Co.
         Solicitors for the Petitioner
         5th Floor Jardine House
         No. 1 Connaught Place
         Central, Hong Kong


WIN VICTORY: Creditors and Contributories to Meet June 28
---------------------------------------------------------
Creditors and contributories of Win Victory Holdings Ltd will
convene for their first meetings on June 28, 2006, at 2:00 p.m.
and 2:30 p.m. respectively at the Official Receivers' office.

Contact: E.T. O'Connell
         10th Floor, Queensway
         Government Offices
         66 Queensway
         Hong Kong


* Moody's Says Banks' Tightening Measures Could Spur Downgrades
---------------------------------------------------------------
Moody's Investors Service on June 21, 2006, expressed concern
that China's bank ratings could be downgraded if Beijing takes
drastic measures to cool the economy by choking off credit.

However, the rating agency said Wednesday it views China's
banking sector with a stable to positive outlook.

Deborah Schuler, Moody's vice president, said China may suffer a
setback if it deploys the "heavy handed" measure of halting all
lending as it did in the early 1990s, something that she said
doesn't seem likely in the near term.

"They would only do so if they deem the latest raise in banks'
reserve ratio ineffective in curbing loan growth. And that will
take some time."

Ms. Schuler's comments about a potential downgrade follow
Beijing's decision Friday to raise the deposit-reserve
requirement at mainland commercial banks by 50 basis points to 8
percent in a move aimed at taking liquidity out of the banking
system and discouraging excessive lending by banks.

According to Moody's, China's ratings have improved in recent
years. The rating agency places the country's government bonds
ratings as stable at A2, and its banking sector's financial
strength stable to positive at E+.

Moody's said bank reforms and regulatory initiatives in the past
few years have strengthened operations and lowered systemic
risk.

Still, Moody's relates that it remains concerned about special-
mentioned loans, or loans which could become non-performing
loans.  These loans now stand at between two and four times the
amount of reported non-performing loans.

"In China, there are a lot of special-mentioned loans. If they
migrate to NPL's in a higher percentage than they are at the
moment, and slow down the economy, then NPLs could get very big"
said Ms. Schuler.  She added that such loans are especially
vulnerable to economic changes.

China carved out a big chunk of bad loans at major banks since
1999 by setting up sate-owned asset management corporations to
shore up their loan portfolio, but setting aside the carve-out,
non-performing loans grew by 16.9 percent last year, according
to Moody's.


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

INDIAN OIL: To Invest INR3,000 Crore in Haldia Refinery
-------------------------------------------------------
Indian Oil Corporation would invest INR3,000 crore for the
expansion at its Haldia refinery in West Bengal, TechWhack
reports, citing Petroleum Minister Murli Deora.

The expansion of the Haldia Refinery also includes the setting
up of a paraxylene and propylene recovery plant, Minister Deora
said.

Moreover, the state refinery is studying the possibility of a
further INR1,900-crore investment to produce Euro-III complaint
fuel at Haldia, TechWhack relates.

Indian Oil has started discussions with the Union Fertilizer
Ministry and other authorities for the land, as the refinery
requires around 210 acres for expansion.  

According to the report, the Company is now waiting to get the
approval from relevant authorities.

The expansion is expected to take two years to complete after
the approvals are obtained.

                  About Indian Oil Corporation

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

In spite of its large production capacity and smooth operations,
Indian Oil incurred huge losses as a result of a Government
mandate, which prohibits public sector oil marketing firms from
raising fuel prices despite high global prices.  For years,
Indian Oil has been selling fuel at subsidized prices, which is
way below the costs it pays for importing fuel from overseas
markets.  The Company has not been able to pass on the high
prices leading to large under-recoveries and losses.  In early
2006, the Government has offered a bailout package to help
rescue oil companies, including Indian Oil, from going bankrupt.  
Under the package, the Government issued Indian Oil, Bharat
Petroleum, Hindustan Petroleum and IBP oil bonds worth INR10,000
crore to INR12,000 crore to compensate them for not raising LPG
and kerosene prices.  The move was expected to improve their
balance sheets.


GENERAL MOTOR: US$4.48-Billion Bank Loan Gets BB from Fitch
-----------------------------------------------------------
Fitch Ratings placed a rating of BB and a Recovery Rating of RR1
to General Motor's new US$4.48 billion senior secured bank
facility.  The RR1 is based on the collateral package and other
protections that are expected to provide full recovery in the
event of a bankruptcy filing.  

Although the offering of security to bank lenders moderately
impairs the position of GM's unsecured debtholders, the recovery
rating for unsecured holders still falls within the 30%-50%
range represented by the RR4 designation.  The Issuer Default
Rating is affirmed at B, and remains on Rating Watch Negative.

Fitch's ratings for GMAC remain at BB, Rating Watch Positive,
and are not affected by the new bank financing.

The bank agreement is secured by certain North American
receivables and inventory, a stock pledge of a Mexican
subsidiary, and certain PP&E in Canada.  These assets also act
as collateral for US$1.5 billion in non-loan facilities,
bringing the total amount of facilities secured by these assets
to approximately US$6 billion.  The assets pledged provide
sufficient over-collateralization to support the RR1 rating, and
borrowing base restrictions provide further protection to
secured lenders.

GM's ratings remain on Rating Watch Negative, based on short-
term concerns with the unresolved Delphi situation.  In addition
to the long-term liabilities that GM will absorb under its
guarantee of pension and OPEB obligations to Delphi workers, GM
is expected to provide other forms of near-term financial
assistance in order to prevent any significant work stoppage.
Financial assistance is expected to come in a variety of forms,
including the financing of buyout packages.

High acceptance rates of buyout packages being offered to GM and
Delphi hourly workforces could facilitate the resolution of the
Delphi situation.  However, wage and benefit programs for the
remaining hourly workforce have yet to be resolved, and Delphi
has also not resolved its large underfunded pension position and
faces a pending US$1.1 billion required contribution.

Fitch anticipates that the Rating Watch Negative status will
remain in place until a new labor agreement is reached, and
ratified by Delphi's unions.  A Delphi work stoppage that
results in a material shutdown of GM's North American production
would likely result in a downgrade of the IDR and unsecured
ratings to the CCC category.

A review of the rating could also take place in the event that
GM's agreement to sell a 51% interest in GMAC to a group of
investors does not proceed as planned, or in the event of a
further deterioration in operating results.  

Recent product introductions have supported revenues to date in
2006, providing time for GM to address its fixed cost structure,
although the duration of recent sales performance remains
uncertain given the continuing decline of industry sales in the
large SUV segment. In addition, stresses in the supply base and
high commodity costs will continue to hinder the company's cost
reduction efforts.

                     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.  


PARBHANI PEOPLE'S: Reserve Bank Cancels License Over Insolvency
---------------------------------------------------------------
The Reserve Bank of India has canceled the license of the
Parbhani People's Co-operative Bank Ltd on June 21, 2006, after
all efforts to revive the Bank failed.

The Reserve Bank also stated that PPCB has ceased to be solvent
and that its depositors were being inconvenienced by continued
uncertainty.

The Registrar of Co-operative Societies, Maharastra, has also
been requested to issue an order for the winding up of the Bank
and to appoint a liquidator.  

PPCB's accounts as of June 30, 2002, indicated that the Bank's
financial position was unsatisfactory.  It was given some time
to show improvement.  In March 2005, however, PPCB was affected
by heavy withdrawal of deposits resulting in a severe liquidity
crisis.

Furthermore, the inspection of the Bank with reference to its
financial position as of March 31, 2005, revealed further
deterioration in the realizable value of paid-up capital and
reserve was in the negative.

The Bank was immediately issued a notice, asking it to show
cause as to why the license granted to it to conduct banking
business should not be cancelled.  But as the Bank did not have
a viable plan of action for revival and the chances of its
revival were remote, the Reserve Bank decided to cancel the
Bank's license in the interest of its depositors.

Consequent to the cancellation of its license, PPCB is
prohibited from carrying on "banking business" as defined in
Section 5(b) of the Banking Regulation Act, 1949, including
acceptance and repayment of deposits.

With the cancellation of its license and after commencement of
liquidation proceedings, the process of paying the Bank's
depositors will be set in motion.

Contact: Shri Anand Prakash
         General Manager
         Urban Banks Department
         Reserve Bank of India
         Nagpur Regional Office
         Nagpur-440001, India
         Telephone: (0712) 2538696
         Fax: (0712) 2552896


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

GAJAH TUNGGAL: Moody's Affirms B2 Corporate Rating
--------------------------------------------------
Moody's Investors Service had, on June 21, 2006, confirmed its
B2 corporate family rating for PT Gajah Tunggal Tbk GT and its
B2 senior unsecured rating for GT 2005 Bonds BV's US$325 million
bonds guaranteed by GT, with a negative outlook.  The ratings
outlook is revised to negative.

Lead analyst Angela Choi said that Moody's initiated a review on
the Company on April 4, 2006, on the weaker-than-anticipated
financial results reported by GT for the year ended Dec. 31,
2005, in accordance with Moody's global rating methodology for
auto suppliers.  She added, "The confirmation of the B2 rating
reflects GT's dominant and competitive position in the
Indonesian domestic tire market and its expansion into global
markets, coupled with its low cost structure compared with
global peers."  However, these are offset by the Company's
comparatively small size on a global scale, high financial
leverage and projected negative free cash flow.  

According to Ms. Choi, the B2 rating considers Gajah Tunggal's
weak liquidity profile with a lack of back-up bank facilities,
its history of debt restructuring, as well as its exposure to
exchange rate fluctuations, albeit partially mitigated by its
US$50 million hedging mechanism recently put in place and its
foreign currency revenue.

Gajah Tunggal's rating was given a negative outlook due to its
debts worth US$95 million, which are due before 1998; the
Company's rating could go down if it fails to make an
arrangement to repay its debts.  The Company's rating could be
pulled down if the Company's EBIT margin falls < 5-7% and Adj.
RCF (post WC)/Adj. Net Debt < 8% over the cycle.  This could be
a result of:

   1. industry downturn beyond Moody's expectation;

   2. inability to pass on further increases in material costs,
      and thus a margin squeeze;

   3. material devaluations of the local currency, thus directly
      increasing the company's debt-servicing obligations;

   4. unforeseen increase in product liabilities;

   5. the plant expansion program resulting in cost and time
      over-run; and/or

   6. GT adopting an aggressive dividend payout policy by
      returning funds to shareholders.

The likelihood of a rating upgrade is limited in the near term
given the current negative outlook.  The outlook would revert to
stable if GT put in place an appropriate refinancing
arrangement, such as a medium-term bank loan or new equity to
cover its maturing debts in the next two years while maintaining
its current operating and financial profiles.

P.T. Gajah Tunggal TBK, based near Jakarta, Indonesia, is a
manufacturer of motorcycle and motor vehicle tires for both
domestic and export markets.


PAITON ENERGY: Moody's Downgrades Senior Secured Rating To B3
-------------------------------------------------------------
Moody's Investors Service has downgraded the senior secured
rating of Paiton Energy Funding B.V., guaranteed by PT Paiton
Energy Company, to B3 from B2.  The rating outlook is stable.

"The rating action reflects Moody's concern over Paiton's
consistent weakness in debt servicing capacity, with a debt
service coverage ratio weaker-than-anticipated at below 1.2x
over the past few years.  In Moody's view, further interest rate
hikes and an expected increase in scheduled principal repayments
starting from 2008 will keep Paiton's DSCR at 1.1-1.2x in the
medium term," says lead analyst Kaven Tsang, adding "this level
is weak when compared with other rated project companies in the
region and appropriately positions the company at the B3 rating
level."

At the same time, Moody's recognizes that Paiton has maintained
a stable operational performance since the restructuring of its
power purchase agreement in 2003, with availability factor of
the plant at above 90% over the past three years.  Payments from
the off-taker, PT PLN (Persero), have so far been on time and in
accordance with invoices.

The rating outlook is stable, reflecting Moody's expectation
that the overall operating environment will remain stable and
there will not be material change in the terms of the PPA.

The rating may undergo downward pressure if:

   1. Paiton's operational and financial performances
      deteriorate, or

   2. interest rates further increase and the company does not
      take appropriate actions, like increasing the hedging
      ratio, to lower its exposure such that the DSCR
      consistently falls below 1.0x.

On the other hand, upgrade pressure may emerge if:

   1. Paiton's operational and financial performances improve,
      and

   2. the company takes appropriate actions to lower its
      interest rate exposure such that the DSCR exceeds 1.3x on
      a sustained basis.

PT Paiton Energy Company owns and operates two 615MW coal-fired
power units in East Java, Indonesia.  Paiton Energy Funding B.V.
is a special purpose company created for the bond funding of the
power plants.


PERUSAHAAN LISTRIK: Hopes to Build Plants Without Open Bidding
--------------------------------------------------------------
State utility firm PT Perusahaan Listrik Negara hopes that
President Susilo Bambang Yudhoyono would sign a presidential
regulation this week to allow the Company to award contracts for
the construction of coal-fired plants without an open bidding
process, the Jakarta Post says.

The Government had asked PLN to build more coal-powered
generation plants so as to reduce the dependence on fuel-based
plants, due to the continuing rise of global fuel prices.  
Indonesia has abundant coal resources, which are much cheaper
than diesel fuel, the Post relates.

PLN President Djuanda Nugraha Ibrahim said that the project
would cost US$7.6 billion, and investors need around 33 months
to build the power stations.  Through the project, PLN aims to
generate additional power supply of at least 8,000 megawatts by
2009.

State Enterprises Minister confirmed that the President would
sign the presidential regulation soon, so that PLN could award
the contracts to firms that it had shortlisted in September 2005
for the construction project.

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 in 2005, 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.


PERUSAHAAN LISTRIK: Provides Energy-Efficient Lamps to Clients
--------------------------------------------------------------
PT Perusahaan Listrik Negara is working to distribute up to 18
million energy-efficient lamps for free to household clients
that consume a maximum of 2,200 volts, the Jakarta Post relates.

According to PLN commerce and customer service director Sunggu
Anwar Aritonang, the Company is cooperating with the Asian
Development Bank and power-saving lamp producers to provide the
lamps to replace electric bulbs in households.  ADB will lend
IDR281.19 billion to fund the project, he added.

In distributing the energy-efficient lamps to customers, PLN
hopes to save some 2,000 megawatts of electricity, as well as
savings of IDR2.87 trillion or 574,000 kiloliters of diesel
fuel.  The Company expects a IDR758-billion loss in revenues
from the project and its loan to ADB, but also expects it to
lead to about IDR1.8 trillion in savings.

The Indonesian Government has asked all state firms to reduce
their power consumption by at least 10%, so that PLN could
reduce its fuel consumption by 80,000 kiloliters, leading to
annual savings of IDR150 billion.

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 in 2005, 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
=========

HANKYU HOLDINGS: S&P Affirms 'BB' Rating Upon Completed Takeover
----------------------------------------------------------------
Standard & Poor's Ratings Services, on June 20, 2006, affirmed
its 'BB' long-term corporate credit and 'BB+' senior unsecured
debt ratings on Hankyu Holdings Inc., following completion of
the company's takeover bid for Hanshin Electric Railway Co. Ltd.
and clarification of Hankyu's financial burden from the
takeover.  At the same time, Standard & Poor's removed the
ratings from CreditWatch, where they were placed on May 1,
2006, following Hankyu's official announcement of merger
discussions.  The outlook on the long-term credit rating is
stable.

The debt burden related to the purchase will not impact Hankyu's
financial profile as badly as had been feared in a worst-case
scenario.  Hankyu will acquire 63.7% of Hanshin's outstanding
shares for JPY249.8 billion, and it plans to make Hanshin a
wholly owned subsidiary through a swap of the remaining 36.3%
shares in October 2006.  Maximum takeover costs had been
estimated at up to JPY392.1 billion.

As a result, Standard & Poor's estimates that Hankyu will likely
be able to recover the costs with cash flow within a few years,
and that the impact on the ratings on Hankyu from the purchase
will be limited.  Nevertheless, Hankyu's post-acquisition
financial profile is expected to be slightly weaker than the
current level.  The company's ratio of debt to total capital was
70.9% as of March 31, 2006.

Hankyu and Hanshin have announced they will draw up concrete
measures to build on integration effects in their bus and rail
services, as well as their real estate development operations,
but synergy effects are expected to be limited in the
foreseeable future.  In its railroad business, it is uncertain
what advantage the new Hankyu will have over its major
competitor, West Japan Railway Company (A+/Stable/--), given
that Hankyu and Hanshin's key train lines run parallel in the
same region.  Although the integration may provide Hankyu some
benefits in the Umeda area redevelopment project, it would
require time and considerable investment.

If material synergy effects from the integration lead to
improvements in the company's post-acquisition financial profile
and cash flow generation, the rating or outlook on Hankyu could
be revised upward.  On the other hand, the ratings could face
downward pressure if a delay in the merger or unexpected
integration costs negatively affect the company's
competitiveness or earnings.


MITSUI SUMITOMO: FSA Suspends Sales Over Unpaid Insurance Claims
----------------------------------------------------------------
Japan's Financial Services Agency had, on June 21, 2006,
suspended the sales of new medical insurance products of Mitsui
Sumitomo Insurance Co. for an indefinite time period due to its
non-payment of insurance claims, Crisscross News reports.

In its investigation from November 2005 to February 2006, the
FSA discovered that Mitsui Sumitomo had not paid insurance
claims in at least 30,000 cases, the Japan Times reveals.  The
Company had admitted last October that it had not paid claims in
some 27,000 cases from 2002 to 2005, but the FSA found at least
3,000 cases where claims had not been paid.

Crisscross News states that the suspension order will remain
until the FSA confirms that Mitsui Sumitomo has improved its
internal monitoring system for medical insurance policies,
which, according to the agency, was seriously flawed.

According to the Times, Company President Hiroyuki Umemura was
already scheduled to resign from his post, though he may be
penalized along with Company Chairman Takeo Inokuchi, for
failure to recognize the nonpayment in claims.  Toshiaki
Egashira, who was scheduled to become chairman of the General
Insurance Association of Japan but is now unlikely to do so,
will replace Mr. Umemura.

Tokyo-based Mitsumi Sumitomo Co. Ltd. -- http://www.ms-
ins.com/english/ -- was formed in 2000 as a result of the equal-
partner merger of The Sumitomo Marine & Fire Insurance Co. Ltd.,
and Mitsui Marine & Fire Insurance Co., Ltd.  With a paid-in
capital of JPY139.59 million as of March 31, 2005, the Company
is engaged in the non-life and life insurance business, and also
offers financial and risk-related services.  Mitsumi Sumitomo
has 49 subsidiaries and affiliates and 13 branches outside
Japan.


NIPPON SHEET: S&P Affirms BB+ Rating After Pilkington Purchase
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed on June 20, 2006,
its 'BB+' long-term corporate credit and long-term senior
unsecured debt ratings on Nippon Sheet Glass Co. Ltd., following
the company's successful acquisition of U.K.-based Pilkington
PLC.  At the same time, Standard & Poor's removed the ratings
from CreditWatch, where they were placed on Nov. 1, 2005.

In addition, Standard & Poor's lowered its long-term corporate
credit and senior unsecured debt ratings on Pilkington from
'BBB' to 'BB+, the same rating as that on Nippon Sheet Glass,
and the short-term rating on Pilkington to 'B' from 'A-2'.  The
ratings on Pilkington PLC were also removed from CreditWatch.
The outlooks on the long-term corporate credit ratings on both
companies are stable.

As a result of the acquisition, Nippon Sheet Glass' consolidated
debt burden will significantly increase.  Pilkington's debt
leverage was higher than that of Nippon Sheet Glass, and the
acquisition has been funded through debt financing.  However,
Standard & Poor's affirmed the ratings on the company,
reflecting the following factors:

   -- The company's business franchise is expected to improve
      significantly, based on Pilkington's operational bases in
      the U.S. and Europe;

   -- Part of the acquisition cost has been financed through the
      issuance of JPY110 billion in moving strike convertible
      bonds with variable conversion prices and stock
      acquisition rights.  These bonds are relatively high
      quality capital as they can be converted into common
      shares more easily than typical convertible bonds.

  -- The group's financial profile is expected to improve
     gradually, given its prospects for post-merger cash flow.

Pilkington's financial burden should increase due to the deal's
debt financing, but its franchise should benefit through the
integration with Nippon Sheet Glass.  Although the debt
financing was carried out primarily by Nippon Sheet Glass' newly
established subsidiary in the U. K., Standard & Poor's believes
it is appropriate to assess the credit quality of the two
companies as one entity.  Also, taking into consideration
possible support from Nippon Sheet Glass, Standard & Poor's
equalized the ratings on Pilkington with those on Nippon Sheet
Glass.

The acquisition of Pilkington will enable the Nippon Sheet Glass
group to command a share of the global sheet glass market that
is on par with international market leaders.  The company should
benefit from the operational bases and technological prowess of
Pilkington.  In particular, the establishment of a global
operation should help the company cultivate more demand from
Japanese automakers operating overseas.  However, synergy
effects are expected to be limited in the architectural sheet
glass segment, as that market is more regionally oriented.
Significant overall synergy effects from the merger are also
unlikely over the near term.

The MSCBs should be converted into common shares relatively
soon, as the conversion price will be revised to 91% of the
average market price every two weeks.  In addition, Nippon Sheet
Glass has maintained relatively stable performance in recent
years.  Standard & Poor's took into account these positive
factors in assessing the group's capitalization.  However, even
if all MSCBs are treated as capital, Nippon Sheet Glass'
consolidated capital structure would still significantly
deteriorate because of this deal.

Although Pilkington generates relatively strong cash flow, due
to the debt increase, its ratio of funds from operations to
total debt is projected to remain for some time at about 15%,
nearly equal to the pre-acquisition level.  The ratio of debt to
total capital is expected to deteriorate to about 65% from a
pre-acquisition level of 35%.  Even so, given the nature of the
sheet glass business, the company is likely to maintain
relatively stable cash flow, which should gradually improve its
financial profile.

The MSCBs have a callable feature that enables bondholders to
claim redemption prior to maturity if the stock price drops
below the floor conversion price of JPY336.8 for 10 days in a
row.  But given the stable characteristics of the glass sheet
business, this sort of redemption is unlikely to occur, and the
conversion of the MSCBs should proceed smoothly.

Rating Actions:

                                 To              From
                                 --              ----
Nippon Sheet Glass Co. Ltd.      BB+/Stable/--   BB+/WatchNeg/--
Pilkington PLC                   BB+/Stable/B    BBB/WatchNeg/A-


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

DAEWOO ELECTRONICS: Foreign Companies Submit Preliminary Bids
-------------------------------------------------------------
The takeover bid for Daewoo Electronics Corp. is being led by
foreign companies, Maeil Business reports, citing sources in
financial institutions.

The newspaper states that seven foreign companies and one
domestic firm have submitted sealed proposals after Daewoo
Electronics' creditors had implemented a preliminary bid at the
ABN AMRO Consortium in May 2006.

The current number of bidders is down from the 16 -- 15 foreign
firms and one local -- that had submitted Letters of Intent in
April.

Maeil relates that Daewoo Electronic's takeover candidates are
Whirlpool Cooperation (U.S.), Videocon (India), and other
European and American investors.

The eight participants in the takeover bid, which have completed
the eligibility examination, will be selected as premium bidders
after the main bidding takes place at the end of June.

Currently, creditors from Woori Bank hold a 97.5% stake in
Daewoo Electronics and loaned money worth KRW630 billion, Maeil
says.

Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation
-- http://www.dwe.co.kr/-- is the third largest Korean consumer  
electronics company.  It manufactures and sells a variety of
products including televisions, DVD players, refrigerators, air
conditioners, washing machines, microwaves, vacuum cleaners and
car audio systems in over 105 countries.

The Troubled Company Reporter - Asia Pacific reported on
November 14, 2005, that creditors of Daewoo Electronics have
placed the firm for sale for KRW$1 billion.  ABN Amro,
PricewaterhouseCoopers and Woori Bank were appointed to find a
buyer for the business.

The Korea Asset Management Corporation and Woori Bank are among
the main creditors of Daewoo Electronics, which has undergone a
radical restructuring aimed at returning the Company to profit.  

According to the TCR-AP, Daewoo Electronics has been under a
debt workout program since January 2000, months after its parent
group -- the Daewoo Group -- collapsed under debts of nearly
US$80 billion in 1999.

Daewoo Electronics Corp. posted a KRW94-billion loss in 2005
after sales declined 6.4%.  The net loss compares with the
KRW30-billion profit the company posted in 2004.  Sales fell to
KRW2.2 trillion from KRW2.3 trillion in 2004.


DAEWOO ENGINEERING: KAMCO to Profit Tremendously on Sale
--------------------------------------------------------
Daewoo Engineering & Construction Co.'s leading creditor, Korea
Asset Management Corp. stands to collect over five times the
public funds it spent for the restructuring of the Company, The
Korean Times reports.

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, which holds a 44.4% stake in Daewoo Engineering, had been
slated to announce the preferred bidder this month, but the
Finance Ministry's Public Fund Oversight Committee has
postponed the selection until a yet-to-be-determined date.

In the event that Kumho's offer for a controlling stake in
Daewoo Engineering is accepted, the state-run loan restructuring
company is forecast to collect some KRW4.52 trillion by selling
its entire stake, The Times relates.

According to the report, combining the KRW920 billion in public
funds invested in Daewoo Engineering that KAMCO already recouped
from the constructor, KAMCO's return on investment is projected
to top KRW5.4 trillion.

The Times recounts that KAMCO retrieved a total of
KRW5.9 trillion of the public funds used to resuscitate Daewoo
Heavy Industries and Machinery, which has been acquired by the
Doosan Group and renamed into Doosan Infracore, and Daewoo
Capital so far.

KAMCO is also expected to retrieve funds from the planned sales
of other former Daewoo subsidiaries where it holds a majority
stake -- Daewoo Shipbuilding and Marine Engineering, Daewoo
International and Daewoo Electronics, The Times says.

The estimated sum KAMCO is expected to retrieve from selling its
shares in Daewoo Shipbuilding and Daewoo International, both
scheduled to be put up for tender next year, has expanded
significantly from the end of 2002 to KRW2.26 trillion and
KRW1.64 trillion, respectively.

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, which holds a 44% stake in the Company,
announced a proposed auction of the construction firm.  Daewoo
Engineering is the latest part of the bankrupt Daewoo business
empire to be sold.  The Company has since become a potential
acquisition target in 2006.  Creditors are focused on recovering
the funds they used to bail Daewoo Engineering out of
bankruptcy.


HYNIX SEMICONDUCTOR: Concentrates on Graphic Chips
--------------------------------------------------
Hynix Semiconductor Inc. disclosed that it has formed a task
force to strengthen its position in the graphics memory chip
sector, The Korea Times relates.

According to the report, the launch of the task force comes
after Hynix, lost its dominant market position to Samsung
Electronics Co. last year.  Hynix once held 40% of the South
Korean market for graphics memory chips.

The task force consists of 150 regular and executive employees.  
It will be in charge of designing and producing graphic memory
chips, Hynix officials said.  

The Times explains that graphics chips are installed in desktop
personal computers, notebooks and workstations to allow the
management of huge volumes of video images.

The Times says that Samsung Electronics had long set the
standard for graphics memory chips, being the first in the world
to unveil GDDR1, GDDR2 and GDDR3 memory chips.  However, Hynix's
research and development efforts paid off in 2005 when it
released the latest generation GDDR4 chip, two months ahead of
Samsung.

GDDR refers to graphics double-data-rate memory chips, which
offer significantly enhanced data processing speeds over that of
previous memory products.

                          *     *     *

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.


HYNIX SEMICONDUCTOR: Court Favors Rambus in Patent Case
-------------------------------------------------------
Hynix Semiconductor Inc. is a defendant to certain lawsuits
brought by Rambus Inc., with respect to alleged infringements of
Rambus patents by the Company's manufacture, sale, offer for
sale, use or otherwise disposal of Single Data Rate Synchronous
Dynamic Random Access Memory and Double Data Rate SDRAM
products.  These litigations have been brought in Germany,
France, the United Kingdom and the United States.

Rambus is a developer of high-bandwidth chip connection
technologies.

In 2004, the European Patent Office revoked Rambus' certain key
patent asserted against Hynix in the European territory.  
Accordingly, the litigation in the United Kingdom was dismissed
in 2005.

Also in 2004, Rambus filed a lawsuit against the Company, its
subsidiary in the United States, and other major memory chip
manufacturers, alleging that these companies kept Rambus Dynamic
Random Access Memory products from entering the market.

Moreover, in 2005, Rambus brought another lawsuit against Hynix
and its subsidiary in the United States, alleging that the
Company and its subsidiary's DDR2 and Graphic DDR SDRAM products
have infringed on its patents.

In an update, the Financial Times relates that the Hynix/Rambus
intellectual property disputes reached a "potential turning
point" when a U.S. jury directed the South Korean Company to pay
California-based Rambus US$307 million in damages.

Yet, Hynix indicated that it would continue to push a separate
claim that the patents on which Rambus based its case were anti-
competitive, and so should be ruled unenforceable.

According to the Financial Times, Hynix still expects a final
ruling on the U.S. case in the summer after an additional
hearing on Rambus antitrust activities.  Hynix further said that
it plans to actively respond through necessary legal procedures.

The report says that Hynix has set aside about KRW170 billion
(US$180 million) to cover various patent suits filed against it.  
However, analysts believe that the Company may need an
additional KRW200 billion if the damages are confirmed in the
final ruling.

The report notes that Hynix has said it would appeal any
negative ruling.

                          *     *     *

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.


HYNIX SEMICONDUCTOR: Enters Partnership with FormFactor
-------------------------------------------------------
Hynix Semiconductor Inc. has signed an agreement with
semiconductor testing equipment maker FormFactor Inc.

Forbes relates that under the agreement, FormFactor will provide
Hynix with advanced wafer probe cards for its 300mm dynamic
random access memory manufacturing line.

According to the report, the probe cards use FormFactor's
proprietary test equipment extension technology, known as TRE.

Over the next two years, Hynix will ramp its 300mm DRAM capacity
in both Korea and China.

The Forbes report did not disclose the financial terms of the
Formfactor technology access deal.

                          *     *     *

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.


KOREA EXCHANGE: Prosecutors Step Up Probe on Lone Star Sale
-----------------------------------------------------------
Korea's Supreme Public Prosecutor's Office decided to reinforce
a team investigating irregularities in the sale of Korea
Exchange Bank to the United States-based offshore investment
fund Lone Star Funds, the Chosun Ilbo reports.

Lone Star bought a 50.5% stake in KEB in 2003 for
KRW1.3 trillion.  Early this year, Lone Star signed a
preliminary deal with Kookmin Bank to sell its stake in KEB for
some KRW6.5 trillion.  

According to the report, the number of investigators were
increased to some 70, including eight prosecutors and staff from
Korea's National Tax Service and the Financial Supervisory
Service.

Chosun Ilbo relates that the investigation team will start
summoning key figures for questioning next week to examine
allegations raised by the Board of Audit and Inspection that KEB
was sold to Lone Star at a dumping price.

Prosecutors also revealed that they were reviewing materials
seized in connection with the Lone Star issue to prepare to
question related figures next week.

As reported in the Troubled Company Reporter - Asia Pacific on
April 13, 2006, Chun Yong-jun, a former KEB official who had led  
the bank's sales task force, testified that Lone Star changed  
the buyer of the controlling stake from Lone Star Fund to LSF-
KEB Holdings in Belgium.  Mr. Chun said this was aimed at  
evading taxes on profits acquired from the sale of the bank.  

According to the TCR-AP report, Korea and Belgium have a double  
taxation pact, and under the agreement, Korea cannot slap taxes  
on Belgian firms.  KEB's board of directors is believed to have  
condoned the maneuver in the sale.  

Moreover, an April 12, 2006 report by the TCR-AP stated that
KEB's former president, Lee Kang-won has admitted to the Board
of Audit and Inspection that there was a mistake in calculating
the Bank's capital adequacy ratio before it was sold to Lone
Star.  The state inspection agency cited Mr. Lee as admitting
that the Bank for International Settlements' capital adequacy
ratio of KEB was lowered to 6.16%, which is below the minimum
requirement of 8% for a sound bank.  However, Mr. Lee denied
that the financial data was fabricated.

The BAI is seeking to check whether the data was manipulated for
the benefit of Lone Star.  If prosecutors will find solid
evidence that the data was cooked up, it might lead to the
nullification of the KEB sale to Lone Star and the arrest of
regulators, policymakers and former KEB executives.  

The BAI's probes have uncovered circumstantial evidence
implicating Mr. Lee, Bogo Fund chief executive officer and
former director-general of the Finance Ministry's Financial
Policy Bureau Byeon Yang-ho, and Deputy Finance Minister Kim
Seok-dong.  They and other former and current officials in the
Finance Ministry will be questioned about the allegations that
KEB's BIS capital adequacy ratio was manipulated to justify the
Lone Stare sale and other charges.

The probe could also include former deputy prime minister Lee
Hun-jai, who is under a travel ban over alleged dubious
earnings, with a prosecutor saying Lee was "not a person
unrelated to the Lone Star scandal."

                      About Korea Exchange

Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--  
was established in January 1967 by the Government originally as
a specialist foreign exchange bank.  It retains its strength in
trade finance and foreign exchange.  In terms of assets, it
ranks sixth among Korea's nationwide commercial banks with 7% of
system assets.  It operates a branch network of 317 domestic and
28 overseas offices.  During the economic crisis, significant
exposures to troubled corporate borrowers led to a deterioration
in the bank's financial health.  However, since then, its
operating performance stabilized, and the bank has reported
eight consecutive quarterly profits since the end of 2003.

South Korean politicians -- led by the main opposition Grand
National Party -- have alleged that the Korea Exchange shares
were sold cheap to United States-based Lone Star Funds after the
Bank's financial status was incorrectly reported.  Korea
Exchange denied the allegations in March 2006.


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

ANTAH HOLDINGS: Court Extends Relief Until August 1
---------------------------------------------------
The Kuala Lumpur High Court has decided to extend the Ad-Interim
Injunction it granted to Antah Holdings Berhad's subsidiary
until August 1, 2006.  The Court also fixed a full Inter-Parte
Injunction on the said date.

The Troubled Company Reporter - Asia Pacific reported on
June 16, 2006, that Antah's wholly owned subsidiary -- Kaseh
Lebuhraya Sdn Bhd -- obtained on June 5, 2006, an Ad-Interim
Injunction against ECK Construction Sdn Bhd preventing ECK from
filing a wind-up petition against Kaseh.

ECK is claiming MYR19.8 million from Kaseh as payment for
construction fees.  ECK served the notice on Kaseh on May 16,
2006.

Kaseh, however, disputed ECK's claim as Kaseh's previous sub-
contractor had already settled the full outstanding amount owed
to ECK.  As such, Kaseh insisted that there is no debt to which
it is liable to ECK.  Kaseh asserted that ECK's statutory right
under section 218 of CA 1965 does not arise.

Kaseh has also commenced a legal action against ECK for a court
declaration that it does not owe any amount to ECK.  Kaseh is
asking MYR300,000 from ECK as payment for damages.

                   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 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.


AYER HITAM: Total Default Amount Reaches MYR40 Million
------------------------------------------------------
The total default by Ayer Hitam Tin Dredging Group in principal
sums plus interest as of May 31, 2006, amounted to
MYR40,084,693.

The default in payments owing to the lenders are in respect of
the term loan and the syndicated term loan that the Company
obtained from:

     * Alliance Bank Malaysia Berhad;
     * EON bank Berhad;
     * Kewangan Bersatu Berhad;
     * Malayan Banking Berhad; and
     * Ambank Berhad.

Meanwhile, Alliance Bank Malaysia Berhad, on June 16, 2006,
advised Ayer Hitam that a majority of the syndicated lenders are
conditionally agreeable in principle to support the Company's
proposed restructuring scheme.

                        About Ayer Hitam

Headquartered in Kuala Lumpur, Malaysia, Ayer Hitam Tin Dredging
Malaysia Berhad -- http://www.ahtin.com.my/-- is involved in  
property development and the trading of promotional products and
services in Malaysia.  The Company is also engaged in the
trading of uninterrupted power supply equipment and magnetic
fuel treatment systems and the provision of investment holding,
nominee services, hotel development and management and
renovation services.  The Company has been incurring huge losses
in the past years and has defaulted on several loan facilities.  
As of April 2006, Ayer Hitam's payment defaults have reached
MYR39,945,005.  The Company has presented a restructuring
proposal, which was rejected by the Securities Commission after
determining that the Scheme is not a comprehensive proposal
capable of resolving all the financial issues faced by the
Company.   

The Proposed Restructuring Scheme includes provisions on:

     * capital reduction;
     * amendments to the company's Memorandum of Association;
     * rights issue;
     * private placement;
     * debt settlement; and
     * disposal of Motif Harta Sdn Bhd.


CONSOLIDATED FARMS: High Court Orders Wind-up of Unit
-----------------------------------------------------
The Kuala Lumpur High Court, on June 15, 2006, issued a wind-up
order against Consolidated Farms Berhad's subsidiary --
Consolidated Feedmill Sdn Bhd.

Consolidated Feedmill was named as respondent in a wind-up
petition dated September 6, 2004, filed by BASF (Malaysia) Sdn
Bhd in the High Court of Kuala Lumpur and served on the Company
on September 27, 2004.

The petition is in respect of goods sold and delivered to
Consolidated Feedmill.  BASF had claimed for the amount of
MYR57,975 being the balance of an account for goods sold and
delivered to the defendant due to BASF.

Consolidated Feedmill had appointed lawyers to defend the suit.
The Company also sought the indulgence of the Petitioner to
withhold further legal proceedings while the Confarm Group
proceeds to formulate a restructuring scheme.

                  About Consolidated Farms Berhad

Headquartered in Kuala Lumpur, Malaysia, Consolidated Farms Bhd
-- http://www.confarm.com/-- is engaged in poultry farming  
which includes operating of breeder farm, production and
processing of organic fertilizer, feed milling and manufacturing
and sale of egg trays. Other activities include manufacturing
and processing of eggs into pasteurized eggs and de-shelled
hard-boiled eggs.  The Company is a Practice Note 4 concern
currently undergoing a restructuring exercise to address its
debt problem.  The company had appointed Deloitte KassimChan
Business Services Sdn Bhd as advisor for the restructuring
exercise. Consolidated Farms was mired with MYR122-million debt
on account of its expansion plan, which included the purchase of
equipment and facilities.  As of March 31, 2006, Confarm said
that it will not be able to settle all its debts in full when
they fall due within the next 12 months and hence, the Company
is unable to provide a solvency declaration.


JOHAN HOLDINGS: Bourse Denies Account Filing Deadline Extension
---------------------------------------------------------------
Bursa Malaysia Securities Berhad, on June 8, 2006, rejected
Johan Holdings Berhad's application to extend for another month
the deadline for the Company to submit its Annual Audited
Accounts for the year ended January 31, 2006.

The Company sought approval to submit on June 30, 2006, its
outstanding financial statement, which was due on May 31, 2006.

In a statement to Bursa Securities, Johan Holdings explained
that the submission of its AAA 2006 was delayed due to the
finalization of the audited accounts of its Singapore-listed
subsidiary -- Jacks International Limited.  Finalization of Jack
International's accounts was hampered by the introduction and
adoption of revised accounting standards, which affected the
Johan Group's accounts for the fiscal year ended January 31,
2006.  Jack International also completed the disposal of its
United Kingdom subsidiary -- William Jacks PLC -- a day before
its financial year-end.  The disposal had resulted in immediate
change of ownership and management, as well as external auditors
of William Jacks.  These circumstances caused difficulties and
undue delay in closing the Group's accounts.

The Johan Group has overseas subsidiaries in Singapore, United
Kingdom, The Netherlands, Hong Kong, Australia & New Zealand.  
These overseas subsidiaries are required to adopt the
International Financial Reporting Standard from January 1, 2005.  
In Malaysia, the adoption of Malaysian Financial Reporting
Standard is mandatory only from January 1, 2006, or a year
delay.  This has created a timing and synchronization problem
for the Johan Group accounts for financial year ended January
31, 2006.  There are also inconsistent transitional treatments
between the IFRS and Singapore Financial Reporting Standards.  
The IFRS adopted in The Netherlands and United Kingdom require
retrospective adjustments of comparatives to comply with the new
IFRS whilst the MFRS & SFRS do not require such retrospective
adjustments to the comparatives.  This inconsistency requires
reconciliation of the comparatives among the group subsidiaries
at the consolidation level, which is extremely time consuming,
the Company said.

Johan Holdings further explained that the delay in finalizing
the audited accounts of Jacks International had a chain effect
as it hampered finalization of consolidated financial statements
of the intermediate holding companies upwards such as Abacus
Pacific N.V. of The Netherlands, AIH Holdings Ltd of Hong Kong
and ultimate holding company, Johan Holdings Berhad.

To date, various discussions and meetings between the management
and the auditors of the Company have been held to work towards
early finalization of the AAA 2006.  The indicative deadline
given to the auditors is for the AAA 2006 to be issued by
June 30, 2006.

With the rejection of the deadline extension application, the
Company on June 19, 2006, submitted a further appeal to Bursa
Securities to consider granting the extension of time until June
30, 2006 to furnish the AAA 2006.

Johan Holdings will face delisting if it fails to submit the AAA
2006 on the due date.

                  About Johan Holdings Berhad

Headquartered in Petaling Jaya Selangor, Malaysia, Johan
Holdings Berhad is principally involved in trading of health
foods and supplements, technical and electrical products and
motorcars.  Its other activities include provision of travel and
resort related business, marine and leisure club operations,
secretarial and management services and marketing and trading of
engineering, building, technical and electrical products,
production and distribution of ceramic tiles, provision of
charge card and credit card services, merchandising, car rental,
contract hire, property development, motor car servicing,
investment holding and management and property holding and
investment.  The Group operates in Malaysia, Singapore, Hong
Kong, Australia, the United Kingdom, the Netherlands, Bahamas,
British Virgin Islands Brunei, Liberia and New Zealand.

The Corporate Debt Restructuring Committee in May 2001
successfully assisted Johan Holdings Berhad and two of its
subsidiary companies, Prestige Ceramics Sdn Bhd and Johan
Equities Sdn Bhd, to finalize a debt restructuring agreement
with their lenders to restructure their outstanding debt of
MYR318.3 million.  The Scheme is anticipated to alleviate the
Johan Holdings' financial state and restore the Company to its
original viability.  


KIG GLASS: Obtains 90-day Reprieve from High Court
--------------------------------------------------
On June 19, 2006, the High Court of Malaya at Johor Bahru
granted a 90-day restraining order to KIG Glass Industrial
Berhad.

The Order was obtained to facilitate the implementation of the
Company's proposed restructuring scheme.

As reported by the Troubled Company Reporter - Asia Pacific, KIG
Glass, on May 11, 2006, entered into a restructuring agreement
with Permintex Holdings Sdn Bhd and Permintex Berhad in respect
of the reverse takeover of KIG Glass by Permintex Holdings
through Permintex.

The restructuring agreement will involve:

     * acquisitions;
     * a shareholders' scheme;
     * a debt settlement;
     * a placement of the Company's shares;
     * a transfer of listing status; and
     * disposal of the company.

KIG Glass agreed to the restructuring proposals since it has
been unable to repay its debts due to its "poor financial
position" and "loss-making businesses" since 2002.  In addition,
both the subsidiaries of KIG Glass -- Zibo Jiali Royalex Glass
Co. Ltd and Zibo Jiali Glass Industry Co. Ltd -- have ceased
operations in 2004 and 2005, and are in the process of being
struck off and in voluntary bankruptcy.

To this end, KIG Glass had, on November 2, 2004, and November 8,
2005, announced its status as an affected listed issuer pursuant
to Practice Note 1/2001 and Practice Note 17/2005 of the Listing
Requirements, respectively.  In the absence of a plan to
regularize its financial condition, KIG Glass would likely face
the prospects of delisting.  In this respect, the Board has
decided to embark on the Proposals formulated to provide a
better recovery to the Company's shareholders and creditors.

               About KIG Glass Industrial Berhad

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

As of December 31, 2005, the KIG Group's accumulated losses
stood at almost MYR300 million.  The shareholders' funds of the
KIG Group was in deficit of approximately MYR93 million while
its total borrowings amounted to approximately MYR104 million.  
The Company's board of directors has formed the opinion that the
Group is insolvent as of March 31, 2006.


LITYAN HOLDINGS: Seeks to Avert Delisting
-----------------------------------------
Lityan Holdings Berhad, on June 20, 2006, made written
representations to Bursa Malaysia Securities Berhad on why its
securities should not be removed from the Bourse's Official
List.

The appeal was filed after the Bourse decided on June 13, 2006,
to commence delisting procedures against the Practice Note 17
company, whose restructuring scheme was rejected by the
Securities Commission.

Upon due consideration of the matter and the conclusion of the
relevant due process accorded, Bursa Securities will decide
whether to delist the Company.  

Trading in Lityan's shares was suspended from 9:00 a.m. on
June 16, 2006.

                  About Lityan Holdings Berhad

Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides  
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.  
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding.  The Group carries out its operations in
Malaysia and the Philippines.   

The Company had been classified as an affected listed issuer
pursuant to Practice Note 17 as issued by the Bursa Malaysia
Securities Berhad on May 10, 2005.  On January 16, 2006, the
Company entered into a conditional Restructuring Agreement to
undertake the Proposed Restructuring Scheme with the intention
of restoring the Company onto stronger financial footing via an
injection of new viable businesses.


MALAYSIA AIRLINES: Mulls Amendment of Articles of Association
-------------------------------------------------------------
Malaysia Airlines proposed to amend its Articles of Association
to allow the company to issue Redeemable Preference Shares, to
which certain Articles would have to be added.

The details of the amendments and the draft circular to the
shareholders are currently being worked out by the Company's
solicitors.

                     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.


METROPLEX BERHAD: FIC Okays Proposed Property Disposal
------------------------------------------------------
On June 16, 2006, the Foreign Investment Committee authorized
Lembaga Kumpulan Wand Simpanan Pekerja to acquire a property
owned by Metroplex Berhad for a total cash consideration of
MYR438,330,000.

The Property refers to a shopping complex known as "The Mall"
and an office building together with 1,323 car parking bays
erected on part of the land held under No. Hakmilik 10012, No.
Lot 38, Seksyen 51, Bandar Kuala Lumpur, in Daerah Kuala Lumpur,
Negeri Wilayah Perkekutuan.

The Proposed Disposal is now pending the approvals of the Kuala
Lumpur High Court and Metroplex shareholders.

                     About Metroplex Berhad

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


OMEGA HOLDINGS: Bourse Removes Shares from Official List
--------------------------------------------------------
Omega Holdings Berhad will be delisted and removed from Bursa
Malaysia Securities Berhad's Official List on June 26, 2006,
because the Company's financial condition is not adequate to
warrant continued listing.

The Bourse's decision to delist Omega is based on grounds that
the company failed to obtain any of the authorities' approval
necessary for the implementation of its regularization plan, and
was unable to implement the Plan within the time frame
stipulated by relevant authorities.

The Troubled Company Reporter - Asia Pacific recounts that on
March 27, 2006, the Securities Commission had rejected Omega's
regularization plan.  

In view of the rejection, Omega's "white knights" resolved not
to proceed with the Scheme and terminate the Restructuring
Agreement.  The "white knights" include:

     * Melati Ehsan Holdings Sdn Bhd;
     * Alpine Equity (M) Sdn Bhd; and
     * Dato' Yap Suan Chee.

Moreover, the Omega's Board has resolved not to appeal to the
Securities Commission's decision, TCR-AP said.

In this regard, the Bourse decided to delist the Company on
June 26, 2006.

Upon delisting, Omega will continue to exist but as an unlisted
entity.  The Company is still able to continue its operations
and business and proceed with its corporate restructuring and
its shareholders can still be rewarded by the company's
performance.  However, the shareholders will be holding shares,
which are no longer quoted and traded on Bursa Securities.

                     Omega Holdings Berhad

Headquartered in Selangor Darul Ehsan, Malaysia, Omega Holdings
Berhad is engaged in investment holding and provision of
management services.  Omega has been classified as an affected
listed issuer pursuant to Practice Note 4/2001 of the Listing
Requirements of Bursa Securities since February 26, 2001.  On
December 31, 2002, Omega undertook the previous Omega scheme to
regularize its financial condition, which was approved by the
Securities Commission on August 28, 2003, and was at an advanced
stage of implementation when it was aborted due to the
revocation of SC's approval on August 2, 2004.  In view of this,
Omega intends to undertake the Proposed New Restructuring Scheme
to regularize its financial condition in order to ensure the
interests of its shareholders are protected.  However, the
Securities Commission on May 27, 2006, rejected the Proposed
Scheme.


PATIMAS COMUTERS: Taps Partners to Boost Local & Foreign Ops
------------------------------------------------------------
Patimas Computers Berhad is taking advantage of its tie-ups with
several companies to boost its core business in both domestic
and global markets, The Edge Daily relates.

According to The Star Online, Patimas is working to accelerate
its overseas expansion by tapping on the global customer base of
its strategic partner, Iris Corporation Berhad.

The Company is finalizing details of an agreement with Iris
Corp, which would take the parties' existing memorandum of
understanding to the next level of collaboration, The Edge says.

Iris Corp has proposed to buy a 31.75% stake in Patimas for
MYR72 million, which it will pay by issuing new shares or by
cash.  It is buying the stake from Patimas' three major
shareholders, Forum Pintar Sdn Bhd, Mazlan Muhamed and Datuk Ng
Back Heang, Business Times reveals.

Meanwhile, Patimas told The Star that it would leverage on its
partnership with Hewlett-Packard to enhance its local customer
base.  

The Edge explains that Patimas would venture into new growth
areas like biotechnology and life sciences with Hewlett-Packard,
especially since the government had earmarked MYR100 million to
set up a Life Sciences Capital Fund under the 2006 Budget.

Overseas, Patimas is tendering for jobs worth MYR3.66 million in
Brunei, Sri Lanka, Pakistan, Bangladesh and Cambodia in addition
to its proposed collaboration with Middle Eastern firms.  The
Company plans to expand into Dubai, Qatar and Bahrain when the
opportunity arises, The Star adds.

                 About Patimas Computers Berhad

Headquartered in Kuala Lumpur, Malaysia, Patimas Computers
Berhad is principally engaged in the development and sale of
computer related products and provision of computer related
services that is predominantly carried out in Malaysia.  
Accordingly, information by business and geographical segments
on the Group's operations is not presented.  The Group has
undertaken internal restructuring and other measures to offset
substantial losses and debts it incurred in the past years.  As
a result of its revival efforts, the contingent liabilities
arising from unsecured corporate guarantees given to licensed
banks for bank credit facilities granted to the Company's
subsidiaries decreased from MYR89.9 million as of December 2004
to MYR89.4 million as at December 2005.  For the year ended Dec.
31, 2005, the company posted a net loss of MYR15.2 million on
revenue of MYR324.3 million.

The Group is optimistic of the prospects in the year ahead and
anticipates a financial turnaround in fiscal 2006.  


POLYMATE HOLDINGS: Bumiputra Commerce Files MYR5.8-Million Claim
----------------------------------------------------------------
Polymate Holdings Berhad and its subsidiary, Polymate Packaging
Sdn Bhd, on June 20, 2006, received an amended Writ of Summons
and Statement of Claim from Bumiputra-Commerce Bank Berhad.

Bumiputra-Commerce asserts a MYR5,807,143 claim as of Nov. 30,
2005, together with an 8% annual interest on the sum of
MYR800,000 from December 1, 2005, until the time the full amount
is settled.  An annual interest of 10% on MYR10,509 will also be
collected from Dec. 1, 2005, to the date of full settlement.  In
addition, Bumiputra-Commerce is also claiming a 9% interest on
the outstanding MOL Facility from due dates of Bankers'
Acceptance until the date of full repayment.

Moreover, Bumiputra Commerce is asking payment for solicitor and
client costs, and other relief that the Kuala Lumpur High Court
deems fit.

                 About Polymate Holdings Berhad

Headquartered in Selangor Malaysia, Polymate Holdings Berhad --
http://www.polymate.com.my/Hprofile_html.htm-- is engaged in  
the manufacturing and marketing of lead acid batteries for the
automotive and related industries.  It is also engaged in the
manufacturing and dealing of plastic articles and products,
corrugated carton boxes and related products, manufacturing and
trading of door closers and trading of building materials,
investment holding and provision of corporate and financial
support services.  The Group operates in Malaysia, Australia,
New Zealand and Europe.

Polymate Holdings is in the process of working out possible
plans to regularize its condition.  Operations in its
subsidiaries will be revived when a workable restructuring
scheme is formalized with its lenders and when fresh working
capital can be injected into the operations.  On April 28, 2006,
Bursa Malaysia Securities Berhad publicly reprimanded and
imposed a total fine of MYR84,000 on Polymate Holdings Berhad
for breach of the Bourse's Listing Requirements. This was
followed by another public reprimanded on May 26, 2006.
Meanwhile, Polymate says that it is still negotiating with its
lenders to restructure the Group's credit facilities and is
working on various schemes to regulate its financial position.


POLYMATE HOLDINGS: Unit Gets Another Claim Payment Demand
---------------------------------------------------------
Polymate Holdings Berhad's wholly owned subsidiary -- ABI
Malaysia Sdn Bhd -- on June 19, 2006, received a Summons and
Statement of Claim dated May 24, 2006, and May 19, 2006,
respectively by Lianma Enterprise Sdn Bhd.

In the suit, Lianma is demanding payment of MYR9,778, plus a
1.33% monthly interest on the total amount of every invoice
which should be paid after the lapse of the 90-day credit terms
until the date of full settlement.  Alternatively, an annual
interest rate of 8% on the whole outstanding amount must be
applied from the date of judgment until the debt is fully
settled.

In addition, Lianma also asserts payment for legal costs and
other relief that the Court deems fit.

The matter will be heard before the Kuala Lumpur Magistrates
Court on September 29, 2006, at 9:00 a.m.

The Troubled Company Reporter - Asia Pacific recounts that
Polymate Holdings and ABI Malaysia were served with a Writ of
Summons and Statement of Claim dated May 18, 2006, by Malayan
Banking.  Malayan Banking is pursuing a MYR10,014,145-claim as
of Dec. 31, 2005, and an annual default interest of 10% from
January 1, 2006, to the date of the full settlement of the
claim.

On June 9, 2006, ABI Malaysia was also served with a Summons and
Statement of Claim by CDP Engineering Sdn Bhd.  In the suit, CDP
Engineering is asserting a MYR10,675 claim, and an annual
default interest of 8% on the whole amount from April 14, 2006,
to the date of full settlement, the TCR-AP relates.

                  About Polymate Holdings Berhad

Headquartered in Selangor Malaysia, Polymate Holdings Berhad --
http://www.polymate.com.my/Hprofile_html.htm-- is engaged in  
the manufacturing and marketing of lead acid batteries for the
automotive and related industries.  It is also engaged in the
manufacturing and dealing of plastic articles and products,
corrugated carton boxes and related products, manufacturing and
trading of door closers and trading of building materials,
investment holding and provision of corporate and financial
support services.  The Group operates in Malaysia, Australia,
New Zealand and Europe.

Polymate Holdings is in the process of working out possible
plans to regularize its condition.  Operations in its
subsidiaries will be revived when a workable restructuring
scheme is formalized with its lenders and when fresh working
capital can be injected into the operations.  On April 28, 2006,
Bursa Malaysia Securities Berhad publicly reprimanded and
imposed a total fine of MYR84,000 on Polymate Holdings Berhad
for breach of the Bourse's Listing Requirements. This was
followed by another public reprimanded on May 26, 2006.
Meanwhile, Polymate says that it is still negotiating with its
lenders to restructure the Group's credit facilities and is
working on various schemes to regulate its financial position.


PROTON HOLDINGS: Watchdog Closes MV Agusta Case
-----------------------------------------------
The Minority Shareholder Watchdog Group has put an end to the
issues shrouding Proton Holdings Berhad's disposal of Italian
bike maker MV Agusta, Business Times says.

The watchdog released its decision after Proton has made all the
necessary explanations regarding the sale.  The MSWG confirmed
that the disposal was appropriate as MV Agusta was mired in
losses and debts, The Times relates.

The Troubled Company Reporter - Asia Pacific recounts that
former Proton chief executive officer Tengku Mahaleel Tengku
Ariff criticized Proton Holding's rationale for selling the
firm's stake in MV Agusta for EUR1, or MYR 4.44.

According to the TCR-AP, Mr. Tengku Mahaleel challenged the
Proton board to explain the rationale behind the sale.  He also
questioned the Board's position that it was not fully aware of
MV Agusta's dealings when it invested in the Italian firm and
did not know that some MYR176 million in cash advances was
needed to keep the Company afloat. He rejected the Board's
explanation that it sold its MV Agusta shares for a meager price
because Agusta was losing money and that Proton had spent
MYR500 million on the premium bike maker.  He insisted that
maintaining the stake would have been good for the national
carmaker and agreed an independent inquiry should be established
to settle the matter once-and-for-all.  

Proton's chief executive officer Abdul Wahab Jaafar Sidek said
that the Company's board of directors appears to be responsible,
accountable and transparent to resolve criticisms of its
decision to sell MV Agusta for EUR1.

However, MSWG is of the opinion that the Board has given careful
consideration to what it believes to be the right decision, The
Edge Daily relates.

"(The) MV Agusta disposal is a step in the right direction. It
is also the view of (MSWG) that appropriate disclosure on the
rationale for the disposal has also been made," the watchdog
said.

                      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.


SUREMAX GROUP: TT Dotcom Withdraws Claim After MYR2,500 Payment
---------------------------------------------------------------
TT Dotcom Sdn Bhd has decided not to pursue its legal action in
the Kuala Lumpur Magistrate Court against Suremax Group's
subsidiary -- Suremax Land Sdn Bhd.

TT Dotcom withdrew its claims after Suremax Land fully settled
its MYR2,500 debt to TT Dotcom on June 12, 2006.

Suremax Land was served with a Summons and Statement of Claim by
TT Dotcom on May 24, 2006, The Troubled Company Reporter - Asia
Pacific recounts.

According to the TCR-AP, TT Dotcom claimed payment of MYR3,001,
due as of Nov. 12, 2005, plus an annual interest of 8%
calculated from Nov. 13 until the date of full settlement.  In
addition, TT Dotcom also claimed for other costs and further
relief as the Kuala Lumpur Magistrate Court deems fair and just.

                      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.


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

HACIENDA LUISITA: Farmers May Hold Strike on TRO
------------------------------------------------
Tenant farmers of Hacienda Luisita, Inc., advised that they may
hold another strike in the wake of the Supreme Court's temporary
restraining order granted to halt the proposed distribution of
the Company's 6,000-hectare sugar estate by the Department of
Agrarian Reform, Malay News reports.

The Troubled Company Reporter - Asia Pacific reported on
June 19, 2006, that the Supreme Court issued the stay order on
the land distribution on June 16, in response to the Company's
petition seeking the order against the Presidential Agrarian
Reform Council, the DAR and other concerned government agencies'
decision to scrap its stock-distribution option to farmers in
favor of distributing the property.

United Luisita Worker's Union President Rene Galang said that
the Cojuangco family, which owns HLI, had "swindled" them out of
their right to their own land, and that "the Supreme Court
should not allow itself to be used as an instrument of
repression" by the Cojuangcos in further exploiting them, Malaya
News relates.  Mr. Galang added that if the SC would not
withdraw its order, they would be forced to start another
strike.

Kilusang Magbubukid ng Pilipinas internal deputy secretary Willy
Marbella said they asked the Supreme Court to lift the temporary
restraining order, which, he added, HLI's management was using
to confuse the farmers, the Manila Times says.  He further said
that they hoped the high court would uphold farmers' rights and
the PARC decision to throw out HLI's stock distribution option
in favor of the land distribution.     

                          *     *     *

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


LIBERTY TELECOMS: Releases Results of Board Meeting
---------------------------------------------------
In a letter to the Philippine Stock Exchange, Liberty Telecoms
Holdings, Inc., disclosed the results of the Special Meeting of
its Board of Directors held on June 21, 2006:

   a. Chief Finance Officer Efren P. Lozada was authorized to
      prepare and file a complaint versus Development Bank of
      the Philippines with regards to the Company's loans, which
      includes his signing of pleadings and other documents
      necessary to facilitate the complaint;

   b. The Board of Directors ratified a memorandum of agreement
      it had entered into with Wimax Revolution Ltd. through its
      Chairman Raymond M. Moreno, pursuant to the authority
      given to the latter at the Company's special Board meeting
      held on May 10, 2002;

   c. The Board of Directors confirmed Mr. Moreno's appointment
      of Atty. Efren P. Lozada as the Company's Acting Corporate
      Secretary & Information Officer.

                          *     *     *

Liberty Telecoms Holdings Incorporated was incorporated in  
January 1994 primarily to engage in real and personal property
businesses; to deal in stocks, bonds and other securities or
evidence of indebtedness of any entity; and to acquire all or
any part of the business of any entity.  LIB's business strategy
is to offer products and services to meet the telecommunication
needs of its various customers.

The Company, in its effort to stop continuing losses, decided to
temporarily close down the nationwide telecommunications
business operations of subsidiaries Liberty Broadcasting Network
Inc and Skyphone Logistics Inc sometime in April 2005.  The
decision became inevitable due to the inability of the Company
to meet interest payments and principal repayments on the
financial obligations to creditor banks and private creditors.  

As early as December 2004, LBNI has been receiving default and
acceleration notices and demand for payments from creditors.  On
August 16, 2005, Liberty Telecoms Holdings together with its
subsidiaries, Liberty Broadcasting Network and Skyphone
Logistics filed a Petition for Rehabilitation and Suspension of
Payments with the Regional Trial Court of Makati City in Metro
Manila.


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

CLEANMATIC SERVICES: Intends to Declare Dividend
------------------------------------------------
Cleanmatic Services Pte Limited is preparing to declare
creditors' dividend, pursuant to a wind-up order by the High
court of Singapore.

In this regard, the Official Receiver requires the Company's
creditors to file their proofs of claims by June 30, 2006, to
share in the dividend distribution.

Contact: Moey Weng Foo
         Assistant Official Receiver
         The Official receiver's Office
         The URA Centre (East Wing)
         45 Maxwell Road #06-11
         Singapore 069118


FORTE AIR CONDITIONING: Creditors Must Prove Debts by June 30
-------------------------------------------------------------
Creditors of Forte Air Conditioning Pte Limited are advised to
file their proofs of debt by June 30, 2006, to the Official
Receiver.

Failure to comply with the requirement will exclude a creditor
from sharing the Company's dividend distribution.

Contact: Beverley Wee Ying Ling
         Assistant Official Receiver
         The Official Receivers's Office
         The URA Centre (East Wing)
         45 Maxwell Road #06-11
         Singapore 069118


FRONT PAGE DISTRIBUTORS: Creditors' Proofs of Claim Due June 30
---------------------------------------------------------------
Front Page distributors Pte Limited notifies parties-in-interest
of its intention to pay dividend to preferential creditors.

The Company's creditors are therefore required to submit their
proofs of claim by June 30, 2006, to share in the dividend
distribution.

Contact: Chan Wang Ho
         Assistant Official Receiver
         The URA Centre (East Wing)
         45 Maxwell Road #06-11
         Singapore 069118


ELOGICITY INTERNATIONAL: To Pay Final Dividend to Contributories
----------------------------------------------------------------
Elogicity International Pte Limited notifies parties-in-interest
of its intention to distribute final dividend to the Company's
contributories on June 29, 2006.

As mandated by the High Court of the Republic of Singapore, the
final return will be at SGD0.00107 per share.

Elogicity was wound up on January 18, 2005, according to an
earlier report by the Troubled Company Reporter - Asia Pacific.

The wind-up petition was filed by Australia-based P&O Australia
Ports Pty Ltd on December 15, 2003.

Contact: Chee Yoh Chuang
         Lim Lee Meng
         Liquidators
         RSM Chio Lim
         18 Cross Street
         #08-01 Marsh & McLennan Centre
         Singapore 048423


ELSNER ASIA: Court Issues Wind-Up Order
---------------------------------------
The High Court of the Republic of Singapore, on June 2, 2006,
issued a wind-up order against Elsner Asia Pte Limited.

F.J.Elsner & Co. and Gesellschaft MBH filed the wind-up petition
before the High Court.

Contact: Messrs Robert Yam & Company
         190 Middle Road #16-03
         Fortune Centre
         Singapore 188979


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

iTV PLC: PM's Office Demands THB76-Bil in Concession Payments
-------------------------------------------------------------
The permanent secretary's department in the Prime Minister's
Office, which holds iTV Plc's concession, is demanding that the
television network pay more than THB70 billion in concession
fees and fines to the Government, raising the possibility of
bankruptcy, The Nation reports.

The Nation recounts that in January 2004, iTV won the
Arbitration Court's consent to pay an annual concession fee of
the higher of 6.5% of revenue or THB230 million.  The original
rate was the higher of 44% of revenue or THB1 billion per year.

However on May 9, 2006, the Central Administrative Court ruled
that sharp reductions in iTV's concession fees, decided by an
arbitration committee, were illegal, The Nation relates.  Thus,
the May 9 decision overturned the arbitration committee's 2004
ruling.

Subsequently, iTV filed an appeal with the Supreme
Administrative Court on June 8, 2006, asking it to overrule the
lower court's decision.  The appeal is still pending.   

The Nation notes that based on the lower court's decision, iTV
must resume payments of the annual concession fee rate of 44% of
revenue, or THB1 billion per year, whichever is greater, to its
concession owner.

The Office of the Attorney General said that the Central
Administrative Court's ruling on the concession fee case of iTV
Plc had immediate effect, paving the way for the Prime
Minister's Office to seek payment from iTV immediately.

The PM's Office demands payment of THB76 billion in penalties
and THB1.7 billion in backdated fees.

However, iTV insisted that it would not pay the fees
immediately, pending its court appeal.  According to The Nation,
the TV network cited Article 70 of the law governing the
establishment of the Administrative Court, which states that the
court's ruling would only be enforced when the case is
completely at an end.

Moreover, iTV calculated that the fine should only be
THB100 million per year.

Under the concession, the PM's Office is allowed to fine iTV 10%
of its concession fee of about THB1 billion for each day of the
contract's violation, The Nation says.

Some brokerage houses believe that iTV, which has a cash flow of
THB1 billion, will seek negotiations with the PM's Office to
revise the penalty fee.

                          *     *     *

iTV Plc's principal activity is producing and broadcasting
television programmes and channels, including the promotion of
related rights and assets.  Shin Corp Plc is iTV's major
shareholder, with a 53% stake.  Singapore's state investment arm
Temasek Holdings controls more than 96% of Shin, which was
previously owned by caretaker Prime Minister Thaksin
Shinawatra's family.  Earlier this year, it sold its majority
stake in iTV to Temasek.


THAI PETROCHEMICAL: Board Okay's US$1 Billion Refinancing Plan
--------------------------------------------------------------
The board of directors of Thai Petrochemical Industry Plc has
approved the Company's plans to raise US$1 billion to refinance
its debts, a move that will later save the Company from more
than THB400 million per year in payments of interest, The Nation
reports.

Thai Petrochem's president, Piti Yimprasert, told The Nation
that out of the total amount, US$600 million will be raised
through an unsecured unsubordinated bond issue with a maturity
of less than four years.

The board also approved taking out a US$400 million loan -- 70%
of which will be in U.S. dollars, and the rest in baht.  The
proceeds will be used to refinance current loans.

According to The Nation, both bond and the refinancing loan will
be carried out in September, depending on the approval of
shareholders who will convene on July 20, 2006.

On July 20, the new management team, led by representatives of
majority shareholder PTT Plc will present the three-year
investment plan, which requires an investment of US$1.4 billion,
to shareholders.

"The fund raising will reduce the company's interest expenses by
THB300 million-THBt400 million a year, starting in 2007," Mr.
Yimprasert said.  The Nation relates that at present, the
Company pays an annual interest rate of 5-6% from its debts.

Meanwhile, Mr. Yimprasert also told The Nation that the Stock
Exchange of Thailand would lift the "C" sign from TPI's stock
next month.  The SET's "C" sign is in response to the Company's
action of discharging Prachai Leophairatana, the company's
founder, from the board of directors.

The Nation explains that the "C" sign means that the company
still has to fulfill certain obligations to the Stock Exchange.

Mr. Yimprasert is hopeful that the lifting of the 'C' sign would
have a positive impact on the company's stock price and at the
same time raise the Company's corporate rating.

                          *     *     *

Headquartered in Bangkok, Thailand, Thai Petrochemical Industry
Plc -- http://www.tpigroup.co.th/-- is the leading integrated  
petrochemical company in the country, producing naphtha,
liquefied petroleum gas, and lubricant oils.  The Thai
Government was reorganizing the bankrupt company, which had
defaulted on $2.7 billion in loans, until PTT Plc, Thailand's
largest oil and gas group, and Thailand's biggest company,
purchased a 31.5% stake in Thai Petrochemical late in 2005.  In
December 2005, PTT and three other state agencies completed
payment for a 61.5% stake on in Thai Petrochemical.  The money
was used to pay for a bulk of the Company's defaulted loans. The
Company has since been trying to get out of restructuring.

Troubled Company Reporter-Asia Pacific reported on April 28,
2006, that the Central Bankruptcy Court of Thailand approved
Thai Petrochemical's exit from business rehabilitation.  The
Court ruled that the business rehabilitation plan of Thai
Petrochemical and its six subsidiaries -- Thai ABS Co; TPI
Aromatics Plc; TPI Oil Co; TPI Polyol Co; Thai Polyurethane
Industry Plc; and TPI Energy Co. -- be terminated.


* Large Companies With Insolvent Balance Sheets
-----------------------------------------------

                                                       Total
                                            Total    
Shareholders
                                           Assets      Equity
Company                        Ticker       ($MM)      ($MM)
------                         ------    ------------  ------

AUSTRALIA

Acma Engineering & Const.
   Group Limited                  ACX        21.39      -2.24
Allstate Explorations NL          ALX        12.65     -51.62
Austar United Communications Ltd. AUN       231.54     -52.58
Global Wine Ventures Limited      GWV        22.04      -0.84
Hutchison Telecommunications
   (Aust) Ltd.                    HTA      1696.65    -786.31
Indophil Resources NL             IRN        37.79     -69.96
Intellect Holdings Limited        IHG        23.98     -11.13
Namberry Limited                  NMB        15.12      -4.26
Orbital Corporation Limited       OEC        14.01      -4.86
RMG Limited                       RMG        22.33      -2.16
Stadium Australia Group           SAX       132.81     -45.03
Tooth & Company Limited           TTH        99.25     -77.39
Tourism, Hotels & Leisure Ltd.    TLC        15.76      -0.66

CHINA AND HONG KONG

Artel Solutions Group
  Holdings Limited                931        29.19     -18.65
Asia Telemedia Limited            376        10.89      -5.50
Anhui Feicai Vehicle Co. Ltd.     887       129.80      -7.00
Bestway International             718        25.00      -0.67
Chang Ling Group                  561        77.29     -71.23
Chengdu Book - A               600083        21.50      -3.07
China Liaoning International
  Cooperation Holdings Ltd.       638        25.79     -43.45
China Kejian Co. Ltd.              35        54.71    -179.23
Datasys Technology Holdings      8057        14.10      -2.07
Eforce Holdings Limited           943        10.31      -0.51
Everpride Biopharmaceutical
   Company Limited               8019        10.16      -2.16
Fujian Changyuan Investment
   Holdings Limited               592        61.49     -17.88
Gold-Face Holdings Limited        396       193.41     -28.41
Guangdong Meiya Group
   Company Ltd.                   529       107.16     -49.54
Guangdong Sunrise Group
   Company Ltd-A                   30        35.98    -182.94
Guangdong Sunrise Group
   Co. Ltd-B                   200030        35.98    -182.94
Guangxi Wuzhou Zhongheng
   Group Co Ltd.                  557        62.19    -115.50
Hainan Dadonghai Tourism          613        17.81      -6.63
Hainan Dadongh-B               200613        17.81      -6.63
Hainan Overseas Chinese
   Investment Co. Ltd.         600759        32.70     -15.28
Hans Energy Company Limited       554        94.75     -10.76
Heilong Jiang Long Di Co. Ltd.    832       134.62     -61.22
Heilongjiang Sun & Field
   Science & Tech.                620        29.96     -49.18
Heilongjiang Black Dragon
   Co. Ltd.                    600187       121.30     -74.45
Hualing Holdings Limited          382       242.26     -28.15
Huda Technology & Education
   Development Co. Ltd.        600892        17.29      -0.19
Hunan Anplas Co., Ltd.            156        94.17     -65.04
Innovo Leisure Recreation
   Holdings Ltd.                  703        13.68      -2.01
Jiangsu Chinese.com Co. Ltd.      805        15.86     -34.56
Jiangxi Paper Industry
   Co. Ltd                     600053        19.58     -12.80
Loulan Holdings Limited          8039        13.01      -1.04
Magnum International Holdings
   Limited                        305        10.35      -5.83
Mindong Electric Group Co., Ltd.  536        21.63      -1.50
New City (Beijing) Development
   Limited                        456       151.61     -19.15
New World Mobile Holdings Ltd     862       215.47    -126.57
Plus Holdings Ltd                1013        24.00      -3.15
Prosperity International
   Holdings (HK) Limited         8139        10.73      -2.45
Shandong Jintai Group Co. Ltd.  600385       19.58     -12.18
Shanghai Xingye Housing
   Company Ltd                 600603        14.90     -72.98
Shenz China Bi-A                   17        50.08    -206.09
Shenz China Bi-B               200017        50.08    -206.09
Shenzhen Dawncom Business Tech
   And Service Co., Ltd           863        79.84     -37.30
Shenzhen Shenxin Taifeng Group
   Co. Ltd.                        34        95.27     -44.65
Shenzen Techo Telecom Co., Ltd.   555        13.82      -4.67
Sichuan Changjiang Packaging
   Holding Co. Ltd.            600137        13.11     -72.76
Sichuan Topsoft Investment
   Company Limited                583       113.12    -148.61
SMI Publishing Group Ltd.        8010        10.48      -7.83
Songliao Automobile Co. Ltd.    600715       49.56      -3.76
Sun's Group Manufacturing
   Company Limited                988       103.02     -72.80
Taiyuan Tianlong Group Co.
   Ltd                         600234        55.29     -46.27
Theme International
   Holdings Limited               990        22.46      -0.77
UDL Holdings Limited              620        12.48      -7.15
Wealthmark International
   (Holdings) Limited              39        11.32      -2.43
Winowner Group Co. Ltd.        600681        38.03     -62.88
Xinjiang Hops Co. Ltd          600090       101.34    -135.99
Yantai Hualian Development
   Group Co. Ltd.              600766        59.99      -7.66
Yueyang Hengli Air-Cooling
   Equipment Inc.                 622        49.89     -17.71

INDIA

PT Dharmala Intiland             DILD       197.91      -6.62

INDONESIA

Ades Waters Indonesia Tbk        ADES        21.35      -8.93
Bukaka Teknik Utama Tbk          BUKK        44.45    -107.00
Hotel Sahid Jaya                 SHID        71.05      -4.26
Jakarta Kyoei Ste                JKSW        44.72     -38.57
Mulialand Tbk                    MLND       160.45     -19.82
Multibreeder Adirama Indonesia   MBAI        64.54      -2.31
Pakuwon Jati Tbk                 PWON       188.41     -50.78
Panca Wiratama Sakti Tbk         PWSI        39.72     -18.82
PT Steady Safe                   SAFE        19.65      -2.43
PT Toba Pulp Lestrari Tbk        INRU       403.58    -198.86
PT Unitex Tbk                    UNTX        29.08      -5.87
PT Voksel Electric Tbk           VOKS        44.01     -11.74
PT Wicaksana Overseas
   International Tbk             WICO        84.36     -32.88
Sekar Bumi Tbk                   SKBM        23.07     -41.95
Surya Dumai Industri Tbk         SUDI       105.06     -30.49

JAPAN

Hanaten Co., Ltd.                9870       167.79      -1.63
Mamiya-OP Co., Ltd.              7991       152.37     -67.11
Montecarlo Co. Ltd.              7569        66.29      -3.05
Nihon Seimitsu Sokki Co., Ltd.   7771        24.33      -0.59
Sumiya Co., Ltd.                 9939        89.32     -11.57
Tenryu Lumber Co., Ltd.          7904       187.75     -44.48
Tokai Aluminum Foil Co., Ltd.    5756       106.49     -12.55
Yakinikuya Sakai Co., Ltd.       7622        79.44     -11.14

MALAYSIA

CHG Industries Bhd                CHG        25.95     -41.38
Cygal Bhd                         CYG        57.63     -61.56
Consolidated Farms Berhad       CFARM        38.50     -11.55
Emico Holdings Bhd                EMI        42.56      -1.92
Jin Lin Wood Industries Berhad    JLW        21.68      -1.74
Mentiga Corporation Berhad       MENT        21.59     -13.41
Mycom Bhd                         MYC       227.68    -114.64
Lityan Holdings Bhd               LIT        28.86      -8.43
Olympia Industries Bhd           OLYM       255.84    -227.85
Panglobal Bhd                     PGL       189.92     -50.36
Park May Bhd                      PMY        14.45     -12.26
PSC Industries Bhd                PSC        62.80    -116.18
Setegap Berhad                    STG        34.44     -12.54
Tru-Tech Holdings Berhad          TRU        15.86     -16.71
Wembley Industries Holdings Bhd   WMY       118.32    -176.02

PHILIPPINES

APC Group Inc.                    APC        67.04    -163.14
Atlas Consolidated Mining and
   Development Corp.               AT        32.94     -35.77
East Asia Power Resources Corp.   PWR        92.55     -64.61
Fil-Estate Corporation             FC        33.30      -5.80
Filsyn Corporation                FYN        21.90      -2.91
Filsyn Corporation               FYNB        21.90      -2.91
Global Equities Inc.              GEI        24.18      -1.81
Gotesco Land, Inc.                 GO        17.34      -9.59
Gotesco Land, Inc.                GOB        17.34      -9.59
Prime Media Holdings Inc.        PRIM        11.12     -15.52
Prime Orion Philippines Inc.     POPI       105.76     -83.47
Swift Foods Inc.                  SFI        26.95      -8.23
Unioil Resources & Holdings       UNI        22.71      -2.38
Company Inc.
United Paragon Mining Corp.       UPM        21.19     -21.52
Universal Rightfield Property
   Holdings Inc.                   UP        45.12     -13.48
Uniwide Holdings Inc.              UW        61.45     -30.31
Victorias Milling Company Inc.    VMC       127.83     -32.21
Vitarich Corporation             VITA        75.04      -4.27

SINGAPORE

ADV Systems Auto                  ASA        18.68      -6.50
China Aviation Oil (Singapore)
   Corporation                    CAO       211.96    -390.07
Compact Metal Industries Ltd.     CMI        69.38     -10.18
Falmac Limited                    FAL        10.90      -0.73
Gul Technologies Singapore
   Limited                        GUL       152.80     -27.74
Informatics Holdings Ltd         INFO        27.59      -6.73
L&M Group of Companies            LNM        56.91     -10.59
Liang Huat Aluminium Ltd.         LHA        19.30     -76.43
Lindeteves-Jacoberg Limited        LJ       225.52     -53.23
LKN-Primefield Limited            LKN       150.70     -12.72
Mae Engineering Ltd               MAE        11.42      -7.79
PDC Corporation Limited           PDC        11.63      -7.88
Pacific Century Regional          PAC      1381.26    -107.11
See Hup Seng Ltd.                 SHS        17.36      -0.09

SOUTH KOREA

Cenicone Co. Ltd.               56060        36.82      -1.46
C & C Enterprise Co. Ltd.       38420        28.05     -14.50
Everex Inc.                     47600        23.15      -5.10
EG Greentech Co.                55250       186.00      -1.50
Inno Metal Inc.                 70080        28.56      -0.33
KP&L Company Limited             9810        15.03      -3.81
Radix Co. Ltd.                  16160        53.78     -17.69
Quality & Tech                  15260        32.33      -1.14
Shinil Industrial Co., Ltd.      2700        41.51      -3.44
Tong Yang Major                  1520      2332.81     -86.95

THAILAND

Bangkok Rubber PCL                BRC        70.19     -56.98
Bangkok Rubber PCL              BRC/F        70.19     -56.98
Central Paper Industry PCL      CPICO        40.41     -37.02
Central Paper Industry PCL    CPICO/F        40.41     -37.02
Circuit Electronic
   Industries PCL              CIRKIT        20.37     -64.80
Circuit Electronic
   Industries PCL            CIRKIT/F        20.37     -64.80
Daidomon Group Pcl              DAIDO        12.92      -8.51
Daidomon Group Pcl            DAIDO/F        12.92      -8.51
Datamat PCL                       DTM        17.55      -1.72
Datamat PCL                     DTM/F        17.55      -1.72
Diana Department Store Pcl      DIANA        12.71      -1.71
Diana Department Store Pcl    DIANA/F        12.71      -1.71
Everland Public Company Ltd      EVER        56.71    -311.47
Everland Public Company Ltd    EVER/F        56.71    -311.47
Hantex PCl                        HTX        12.36      -1.83
Hantex PCl                      HTX/F        12.36      -1.83
Kuang Pei San Food Products
   Public Co.                  POMPUI        12.51      -9.87
Sahamitr Pressure Container
   Public Co. Ltd.               SMPC        20.77     -28.13
Sri Thai Food & Beverage Public
   Company Ltd                    SRI        18.29     -43.37
Sri Thai Food -F                SRI/F        18.29     -43.37
Tanayong PCL                    TYONG      1439.26    -694.22
Tanayong PCL -F               TYONG/F      1439.26    -694.22
Thai-Denmark PCL                DMARK        21.37     -18.88
Thai-Denmark -F               DMARK/F        21.37     -18.88
Thai-Wah PCL                      TWC        91.56     -41.24
Thai-Wah PCL -F                 TWC/F        91.56     -41.24




                            *********


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

Copyright 2006.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
   
TCR-AP subscription rate is $575 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are $25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.
   
                 *** End of Transmission ***