TCRAP_Public/060626.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

              Monday, June 26, 2006, Vol. 9, No. 125

                            Headlines

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

ACD ENTERPRISES: To Declare Dividend on June 28
AD INTERIORS:  Enters Voluntary Liquidation
APM BUILDINGS: Creditors' Proofs of Claim Due on July 21
BROGAN BOX: Receivers Resign from Post
C. PULS & CO: Members Agree on Wind-Up

CREATIVE TEXTILES: Court to Hear Liquidation Bid on June 29
DATACODEX PTY: To Pay Dividend to Creditors
D&E ENTERPRISES: Members Appoint Official Liquidator
DELPAC 2000: Creditors Must Prove Debts by June 30
DIRECT EFFECT: Final Meeting Scheduled on June 27

EARLCUE PTY: Court Orders Winding Up
EMERGE GROUP: Shareholders Opt for Voluntary Liquidation
FELTEX CARPETS: In Talks With Potential Investor To Raise Funds
GREENACRE PLUMBING: Undergoes Voluntary Liquidation
HARWOOD PACIFIC: Creditors' Proofs of Claim Due on July 5

HIH INSURANCE: Liquidator Files Suit to Recover AU$500 Million
IDEMITSU OIL: Liquidator Explains Wind-Up to Members
INDUSTRIAL SWEEPING: Faces Liquidation Proceedings
KNOTCO PTY: Murphy and Hambleton Named Joint Liquidators
KYETTA NOMINEES: Initiates Wind-Up Proceedings

MALONEY'S PUB: Hearing of CIR's Liquidation Bid Set on Aug. 3
MELBOURNE INVESTMENT: Bank Appoints Receivers and Managers
MICHAEL COATE: Members and Creditors to Get Wind-Up Report
MRB INVESTMENTS: Opts to Shut Down Business
MQ HOLDINGS: Court Sets Date to Hear Liquidation Petition

PALLARA PTY: Members Decide to Close Operations
PDAX LIMITED: Creditors Must Prove Claims by June 30
PRESTIGE LUMBER: Names Joint Liquidators
QANTAS AIRWAYS: Seeks Compensation From Airbus For Late Delivery
QANTAS AIRWAYS: Urged To Present Cost-Cutting Plans

RIZK AUTOMOTIVE: Court Issues Wind-Up Order
VARDON GOLF: Set to Declare Final Dividend on June 27
WHEEL SOLUTIONS: Liquidator to Present Wind-Up Report
WOLLONGONG ADVANCED: Members Opt for Liquidation


C H I N A   &   H O N G  K O N G

ASIA FOCUS: Court Orders Wind-Up
BIG POWER: Wind-Up Petition Hearing Set for July 26
BONWIN INDUSTRIES: Court Issues Winding-up Order
CITIC GROUP: Unhurt by Pacific Rating Downgrade, Says S&P
EPA LIMITED: Faces Winding-up Proceedings

FORTRESS INTERNATIONAL: Creditors' Proofs of Debt Due on July 24
GOLDCO DEVELOPMENT: Picks Liquidators & Committee of Inspection
HIGH WEALTH: Winding-Up Bid Wins Court's Favor
HONGDA CONTAINERS: Court Approves Winding-up Petition
MAVALE ENTERPRISES: Court Decides to Favor Winding-up Bid

NICE SQUARE: Court to Hear Wind-Up Petition on July 12
SHARP MERIT: Appoints Joint Liquidators
SILKMATE INDUSTRIES: Names Tam and Ng as Joint Liquidators
S.E.A. OVERSEAS: Members' and Creditors' Meetings Set June 27
T. S. PROMOTIONS: Court Orders Winding-up

TOMAX TRADING: Receives Wind-Up Order
WEALTHY SMART: Court to Hear Winding-up Bid on Aug. 9


I N D I A

ANDHRA CEMENTS: Earmarks INR100 Crore for Capacity Expansion
JIK INDUSTRIES: Board Meeting Slated for June 29
SHIVA CEMENT: BIFR Wants Debt Restructuring for Unit Effected


I N D O N E S I A

PERUSAHAAN GAS: Surprised by Government's Planned Privatization
POLYSINDO EKA: Shareholders Okay Debt-to-Equity Swap


J A P A N

MITSUI SUMITOMO: Fitch Maintains AA- Rating Despite Suspension
SANYO ELECTRIC: Scraps Plan to Develop Mobile Phones with Nokia


K O R E A

DONG-AH CONSTRUCTION: Keangnam Expresses Interest to Buy Firm
HYNIX SEMICONDUCTOR: Scales Down US$700-Million Offering
HYNIX SEMICONDUCTOR: Creditors Reorganize Holdings
HYNIX SEMICONDUCTOR: Court Directs Payment to Hyundai Heavy
HYUNDAI ENGINEERING: KEB Sells 5.2% Stake Ahead of Bidding

HYUNDAI MOTOR: Chairmen's Arrest Stalls More Projects
HYUNDAI MOTOR: Slush Fund Probe Leads to Three More Arrests
* Loan Default Ratio Hits 6-Month Low in May
* Korea's 1Q Substandard Loans Totals KRW9.75 Trillion


M A L A Y S I A

ARTWRIGHT HOLDINGS: Changes Name to AHB Holdings Berhad
AYER HITAM: Court Adjourns Hearing to August 8
CYGAL BERHAD: Proposed Revision Wins SC's Favor
FURQAN BUSINESS: Shareholders Pass All AGM Resolutions
MALAYSIA AIRLINES: Airbus Seeks 6-Month Delay in A380 Delivery

MANGIUM INDUSTRIES: Unit Defaults on Debt Repayments
MENTIGA CORPORATION: SC Grants Restructuring Condition Waiver
METROPLEX BERHAD: Court Dismisses Morgan Stanley's Stay Appeal
MULTI-USAGE HOLDINGS: SC Rejects Restructuring Request
PARK MAY: Firms Up Local Footing Before Going Global

POLYMATE HOLDINGS: ABI Malaysia Faces Another Claims Demand


P H I L I P P I N E S

LAFAYETTE MINING: Pays PHP10-Million Fine to Resume Operations
NATIONAL POWER: SC Affirms Ruling to Pay PHP7.1-Million Tax
PETPLANS INC: Seeks to Shift to Financial Services


S I N G A P O R E

COMRICH PETROLEUM: Faces Wind-Up Proceedings
D&T FROZEN: Court Issues Bankruptcy Order
EMTEC MAGNETICS: Creditors' Proofs of Claim Due on July 6
GOOD CHANCE CONTRACTORS: Served with Bankruptcy Order
RUBBER BAND: Distributes First and Final Dividend

WORLD DIGITAL: Contributories to Meet on July 17


T H A I L A N D

* SET to Reclassify 34 Rehabco Firms as of July 3

     - - - - - - - -

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

ACD ENTERPRISES: To Declare Dividend on June 28
-----------------------------------------------
ACD Enterprises Pty Limited will declare its first and final
dividend on June 28, 2006.

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

Contact: P. W. Gidley
         Deed Administrator
         Lawler Partners Chartered Accountants
         763 Hunter Street
         Newcastle West, New South Wales 2302
         Australia
         Telephone: (02) 4962 2294
         Fax: (02) 4962 2290


AD INTERIORS:  Enters Voluntary Liquidation
-------------------------------------------
After an extraordinary general meeting on May 12, 2006, the
members of AD Interiors Pty Limited decided to voluntarily wind
up the Company's operations.

Adrian Lawrence Brown and John Ross Lindholm were subsequently
named as liquidators at a creditors' meeting held that same day.

Contact: Adrian L. Brown
         John R. Lindholm
         Liquidators
         Ferrier Hodgson
         Level 29, 600 Bourke Street
         Melbourne, Victoria
         Australia


APM BUILDINGS: Creditors' Proofs of Claim Due on July 21
--------------------------------------------------------
Liquidator Peri Micaela Whittfield and John Trevor Whittfield
John of APM buildings Construction Ltd require the Company's
creditors to submit their proofs of claim by July 21, 2006.

Failure to prove debts by the due date exclude any creditor from
participating in any distribution the Company will make.

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: www.mvp.co.nz


BROGAN BOX: Receivers Resign from Post
--------------------------------------
Anthony Milton Sims and Neil Geoffrey Singleton inform that they
had ceased to act as the receivers and managers of the property
of Brogan Box Pty Limited.


C. PULS & CO: Members Agree on Wind-Up
--------------------------------------
The members of C. Puls & Co. Pty Limited convened on May 12,
2006, and agreed that the Company should wind up its operations
voluntarily.

Andrew Stewart Reed Hewitt was subsequently appointed as
liquidator.

Contact: Andrew S. R. Hewitt
         Liquidator
         Grant Thornton Recovery (Victoria) Pty Limited
         Rialto Towers, Level 35, South Tower
         525 Collins Street, Melbourne
         Victoria 3000, Australia


CREATIVE TEXTILES: Court to Hear Liquidation Bid on June 29
-----------------------------------------------------------
C & A Chartered Accountants Ltd on May 3, 2006, filed before the
High Court of Auckland a petition to liquidate Creative Textiles
Ltd.

The High Court will hear the petition on June 29, 2006, at 10:45
in the morning.

Contact: R.B. Hucker
         C/O the offices of Hucker & Associates
         Level 7, 55-65 Shortland Street
         Auckland, New Zealand
         Telephone: (09) 368 1810
         Facsimile: (09) 368 1814


DATACODEX PTY: To Pay Dividend to Creditors
-------------------------------------------
Datacodex Pty Limited will declare its first and final priority
employee dividend on June 28, 2006, to the exclusion of
creditors who were unable to prove their claims.

Contact: John Park
         Liquidator
         KordaMentha (Queensland)
         22 Market Street, Brisbane
         Queensland 4000, Australia
         Telephone: (07) 3225 4000
         Fax: (07) 3225 4999


D&E ENTERPRISES: Members Appoint Official Liquidator
----------------------------------------------------
At a meeting on May 18, 2006, the members of D&E Enterprises Pty
Limited agreed that the Company must voluntarily commence a
wind-up of its operations.

Barry Keith Taylor was subsequently appointed as liquidator.

Contact: Barry K. Taylor
         Liquidator
         B. K. Taylor & Co.
         8th Floor, 608 St. Kilda Road
         Melbourne, Victoria 3004
         Australia


DELPAC 2000: Creditors Must Prove Debts by June 30
--------------------------------------------------
Liquidator John Michael Gilbert will be receiving proofs of debt
from creditors of Delpac 2000 Ltd until June 30, 2006.

Failure to prove debts by the due date will exclude any creditor
from participating in any distribution the Company will make.

Contact: J.M. Gilbert
         C/O C & C Strategic Limited
         Private Bag 47-927, Ponsonby
         Auckland, New Zealand
         Telephone: (09) 376 7506
         Facsimile: (09) 376 6441


DIRECT EFFECT: Final Meeting Scheduled on June 27
-------------------------------------------------
A final meeting of the members and creditors of Direct Effect
Services Pty Limited will be held on June 27, 2006.

During the meeting, Liquidator Daniel I. Cvitanovic will report
on the Company's winding-up and property disposal.

Contact: Daniel I. Cvitanovic
         Liquidator
         Shop 5, Old Potato Shed
         74-76 Hoddle Street, Robertson
         New South Wales 2577, Australia
         Telephone: (02) 4885 2500
         Fax: (02) 4885 2995


EARLCUE PTY: Court Orders Winding Up
------------------------------------
The Supreme Court of New South Wales had on May 18, 2006,
ordered the winding up of Earlcue Pty Limited.

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


EMERGE GROUP: Shareholders Opt for Voluntary Liquidation
--------------------------------------------------------
Shareholders of Emerge Group Ltd -- formerly known as Clode
Consulting Ltd -- on June 2, 2006, passed a special resolution
to voluntary liquidate the Company and appoint Carl Michael
McKee as liquidator.

Mr. McKee requires the Company's creditors to submit their
proofs of claim ore June 27, 2006.

Contact: Carl Michael McKee
         P.O. Box 90-777
         Auckland Mail Centre
         Auckland, New Zealand
         Telephone: (021) 121 9105


FELTEX CARPETS: In Talks With Potential Investor To Raise Funds
---------------------------------------------------------------
The trading of Feltex Carpets Limited's shares has been
suspended after announcing that it is in breach of its bank loan
covenants and needs to raise more capital, OneNews reports.

The New Zealand Herald relates that shortly after calling for a
trading halt on June 23, 2006, Feltex said that its board was
evaluating initiatives to raise new equity, and had received a
proposal from a New Zealand company concerning a potential
capital raising.

According to Stuff.co.nz, if this proposal is implemented, the
NZ company could become a cornerstone shareholder.

According to the NZ Herald, the proposal would involve a share
placement made to the investor, which would also underwrite an
issue of new securities to other shareholders.

Stuff.co cites an article in the National Business Review
entitled "Feltex on its knees and seeking fresh equity," saying
that an emergency capital raising would heavily dilute existing
shareholders' stakes and lead to a change of ownership.

Feltex says that the potential investor was undertaking a book-
checking due diligence process.  The Company expects the due
diligence to take up to three weeks.

The NZ Herald notes that if the potential investor is satisfied
with its due diligence, the issue price and terms of the
proposed capital raising, and the shareholding level, the deal
will then be subject to final negotiation between the parties.

The Company is also in talks with the banks, led by ANZ
National, regarding the breaches.

The NZ Herald relates that Feltex also plans assets sales, which
together with the capital raising, would help reduce its debt.
Moreover, Feltex says that it is in the process of appointing an
independent expert to advice them on the merits of any deal.

National Business Review recounts that Feltex was carrying
higher debt than it had stated in a statement this month and its
forecast of normalized earnings of NZ$20 million were not
sustainable.  On April 2005, the Company warned of an NZ$8
million to NZ$9 million shortfall in its previous forecast,
blaming an unexpected slowdown in Australian sales.

Investors were infuriated that warning came less than six weeks
after the half-year profit when the Company said it was on track
to meet forecasts despite encountering challenging market
conditions.

                         About Feltex   

Established over 50 years ago, Feltex Carpets Limited --
http://www.feltex.com/-- has built a reputation for being one  
of the world's leading manufacturers of superior-quality carpet.  
The Feltex operation includes a wool scouring plant, six
spinning mills, three tufted carpet mills, a woven carpet mill
and offices in New Zealand, Australia and the United States.  
The Company also leads the way in exports, with customers
throughout South East Asia, Japan, the United States, the Middle
East and other key world markets.  Feltex listed on the local
stock exchange in mid-2004 in a NZ$254-million initial public
offering -- the year's largest in New Zealand.  However, the
Company fell short of its prospectus earnings projections,
reporting a net profit of NZ$11.8 million in the fiscal year to
June 30, 2005, about half the forecast NZ$23.9 million.  The
Company has struggled with losses and earnings downgrades,
flogging sales, and a dipping share price.  The Company closed
plants and in October 2005, axed 235 jobs, mostly in Australia,
and by 2006, abandoned merger talks with Australian competitor
Godfrey Hirst after it suggested that the apparent "white
knight" investor was more interested in a reverse takeover.  
Godfrey Hirst later sold out its nearly 9% stake in the Company.

In February 2006, Feltex reported a first half after tax loss of
NZ$11.83 million, down almost 200% compared to the net loss in
the previous year.


GREENACRE PLUMBING: Undergoes Voluntary Liquidation
---------------------------------------------------
The members of Greenacre Plumbing Service Pty Limited met on
May 15, 2006, and decided that the Company should wind up its
operations voluntarily.

Raymond J. Kemsley was subsequently appointed as liquidator.

Contact: Raymond J. Kemsley
         Liquidator
         Raymond Kemsley & Co.
         22-26 Fisher Road, Dee Why
         New South Wales 2099, Australia


HARWOOD PACIFIC: Creditors' Proofs of Claim Due on July 5
---------------------------------------------------------
John Michael Gilbert was on June 7, 2006, appointed as official
liquidator to oversee the wind-up of Harwood Pacific Group
Limited.

The Company's creditors are required to submit their proofs of
claim to Mr. Gilbert by July 5, 2006, to share in any
distribution the Company will make.

Contact: J.M. Gilbert
         C/O C & C Strategic Limited
         Private Bag 47-927, Ponsonby
         Auckland, New Zealand
         Telephone: (09) 376 7506
         Facsimile: (09) 376 6441


HIH INSURANCE: Liquidator Files Suit to Recover AU$500 Million
--------------------------------------------------------------
Tony McGrath, of McGrath Nicol & Partners, the appointed
liquidator of HIH Insurance Limited, served writs with the NSW
Supreme Court on four companies and five individuals to recover
compensation for HIH shareholders totaling AU$500 million, The
Age reports.

The Financial Times says that the claim relates to financial
reinsurance contracts issued by General Reinsurance Australia
that, according to a 2003 Royal Commission, helped FAI General
Insurance Co. -- an insurance business taken over by HIH --
overstate its profits.

The overstated profits helped raise the price HIH paid for the
FAI business, the Financial Times explains.

The defendants include:

   * Federal MP Malcolm Turnbull,
   * FAI chief executive Rodney Adler,
   * International reinsurance broker Guy Carpenter and Company,
   * FAI finance director Tim Mainprize,
   * FAI chief operating officer Daniel Wilkie,
   * Goldman Sachs Australia executive Russel Pillemer,
   * Goldman Sachs Berkshire subsidiary Cologne Re, and
   * General Reinsurance Australia

According to the Australian Associated Press, Mr. Adler is
currently in jail on charges arising from his conduct as a
director of the HIH group of companies.

The Age cites a General Re spokesman as saying that the company
would "vigorously defend" the claim, after the failure of a
mediation session in December 2005 with General Re, Goldman
Sachs and Guy Carpenter and Mr. McGrath, to settle the matter.

The Financial Times further reports that Mr. McGrath is also
pursuing several other parties for damages from HIH's collapse,
including a claim related to allegations that the insurer traded
while insolvent.

A Sydney court has given Mr. McGrath a further three months to
lodge these additional claims after requesting a delay in the
hope it could negotiate out-of-court settlements, the Financial
Times relates.

The AAP notes that preliminary directions hearings in the NSW
Supreme Court are expected to take place over the next few
months, but a hearing on the matter is not expected before 2007.

                      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.


IDEMITSU OIL: Liquidator Explains Wind-Up to Members
----------------------------------------------------
The members of Idemitsu Oil Exploration Pty Limited will convene
for a final meeting on June 27, 2006, at 10:30 a.m.

During the meeting, Liquidator G. F. Totterdell willpresent
accounts of the Company's winding-up and property disposal.

Contact: G. F. Totterdell
         c/o PricewaterhouseCoopers
         Level 19, QVI, 250 St. George's Terrace
         Perth, Western Australia
         Australia


INDUSTRIAL SWEEPING: Faces Liquidation Proceedings
--------------------------------------------------
The Commissioner of Inland Revenue on May 18, 2006, filed before
the High Court of Auckland an application to liquidate
Industrial Sweeping Ltd.

The High Court will hear the application on August 24, 2006, at
10:00 a.m.

Contact: P.L Windsor-Knaap
         Inland Revenue Department
         1 Bryce Street, Hamilton
         New Zealand
         Telephone: (07) 959 0432


KNOTCO PTY: Murphy and Hambleton Named Joint Liquidators
--------------------------------------------------------
At a general meeting on May 15, 2006, the members of Knotco Pty
Limited decided to close the Company's business operations and
appoint Robert Eugene Murphy and David James Hambleton as
liquidators.

Contact: David J. Hambleton
         Robert E. Murphy  
         Liquidators         
         R. E. Murphy & Co. Chartered Accountants
         Level 9, 46 Edward Street
         Brisbane, Queensland 4000
         Australia


KYETTA NOMINEES: Initiates Wind-Up Proceedings
----------------------------------------------
The members of Kyetta Nominees Pty Limited met on May 12, 2006,
and opted to:

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

  -- appoint Andrew Stewart Reed Hewitt as liquidator to manage
     the wind-up activities.

Contact: Andrew S. R. Hewitt
         Liquidator
         Grant Thornton Recovery (Victoria) Pty Limited
         Rialto Towers, Level 35, South Tower
         525 Collins Street, Melbourne
         Victoria 3000, Australia


MALONEY'S PUB: Hearing of CIR's Liquidation Bid Set on Aug. 3
-------------------------------------------------------------
An application to liquidate Maloney's Pub Ltd will be heard
before the High Court of New Plymouth on August 3, 2006.

The Commissioner of Inland Revenue filed the petition with the
Court on May 18, 2006.

Any parties wishing to attend the hearing are required to file
appearance not later than August 1, 2006.

Contact: P.L Windsor-Knaap
         Inland Revenue Department
         1 Bryce Street, Hamilton
         New Zealand
         Telephone: (07) 959 0432


MELBOURNE INVESTMENT: Bank Appoints Receivers and Managers
----------------------------------------------------------
The Bank of Western Australia Limited appointed Murray Campbell
Smith and Peter McKenzie Anderson as receivers and managers of
the estate and interest of Melbourne Investment House (Hawthorn)
Pty Limited on May 12, 2006.

Contact: Peter M. Anderson
         Receiver
         McGrathNicol+Partners
         Level 1, 161 Collins Street
         Melbourne, Victoria
         Australia

         Murray C. Smith
         Receiver
         McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales
         Australia


MICHAEL COATE: Members and Creditors to Get Wind-Up Report
----------------------------------------------------------
A final meeting of the members and creditors of Michael Coate &
Associates Pty Limited will be held on June 27, 2006, at 9:30
a.m.

During the meeting, Liquidator Gary Anderson will report on the
Company's wind-up activities and property disposal.

Contact: Gary Anderson
         Liquidator
         P.O. Box 1661, West Perth
         Western Australia 6872
         Australia
         Telephone: (08) 9486 7822
         Fax: (08) 9226 4250
         e-mail: garya@iinet.net.au


MRB INVESTMENTS: Opts to Shut Down Business
-------------------------------------------
The members and creditors of MRB Investments Pty Limited held a
meeting on May 17, 2006, and agreed to shut down the Company's
business operations.

Subsequently, Robert James Harper was appointed as liquidator.

Contact: Robert James Harper
         Liquidator
         2A Hope Street, Pymble, 2073
         Australia


MQ HOLDINGS: Court Sets Date to Hear Liquidation Petition
---------------------------------------------------------  
The High Court of Wellington will hear a liquidation petition
against MQ Holdings Ltd on June 26, 2006, at 10:00 a.m.

Piki Manunui Ltd filed the petition before the Court on May 10,
2006.

Contact: P.J. Drummond
         C/O offices of Wadham Goodman
         192 Broadway Avenue (P.O. Box 345)
         Palmerston North
         New Zealand


PALLARA PTY: Members Decide to Close Operations
-----------------------------------------------
At a general meeting of the members of Pallara Pty Limited held
on May 14, 2006, members decided to close the Company's
operations and appoint Kevin John Craddock as liquidator to
oversee the Company's wind-up.

Contact: Kevin John Craddock
         Liquidator
         Sothertons Chartered Accountants
         PO Box 2193, Adelaide
         South Australia 5001
         Australia


PDAX LIMITED: Creditors Must Prove Claims by June 30
----------------------------------------------------
Creditors of PDAX Limited are requires to submit their proofs of
claim by June 30, 2006, to Liquidator Robert Anthony Elms.

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

The company's liquidation commenced on June 1, 2006.

Contact: Robert Elms
         Third Floor, 85 The Terrace
         Wellington, New Zealand
         Telephone: (04) 472 7919


PRESTIGE LUMBER: Names Joint Liquidators
----------------------------------------
Dennis Clifford Parsons and Katherine Louise Kenealy were on
June 6, 2006, appointed as liquidators to act jointly and
severally for Prestige Lumber Ltd.

Contact: Katherine Kenealy
         Indepth Forensic Limited
         P.O. Box 278, Hamilton
         New Zealand
         Telephone: (07) 957 8674
         Facsimile: (07) 957 8677


QANTAS AIRWAYS: Seeks Compensation From Airbus For Late Delivery
----------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
June 16, 2006, French aircraft maker Airbus SAS said that
delivery of the 12 A380 super-jumbo jets that Qantas Airways Ltd
ordered may be delayed for seven months due to electrical wiring
problems.  The aircraft were supposed to be delivered on October
2006.

In an update, the Sydney Morning Herald relates that Qantas
chief executive Geoff Dixon has confirmed the delay.

The National Business Review cites an Australian newspaper
quoting an inside source as saying that "[the delay] is causing
a crisis within Qantas."  However, Mr. Dixon said that Qantas
does not intend to change its order.

Qantas will instead seek compensation from Airbus for the late
delivery of the A380 super-jumbo jets, Bloomberg News says.

The Sydney Herald notes that Qantas will receive the
compensation from Airbus pursuant to the contracts between the
parties.  However, Mr. Dixon did not disclose the compensation
amount.

"The contract allows for compensation and the contract allows
for canceling at a certain level.  We're not contemplating
canceling the order at this stage," Marketwatch.com cites Qantas
chief financial officer Peter Gregg telling Dow Jones Newswires.

Qantas and Airbus are in talks about temporary replacement
aircraft.

According to the Herald Sun, the replacements may possibly be
twin-engine A330-300 series jets, which have long been in
service with Qantas and are used in its China and India routes.

Bloomberg says that Mr. Dixon may also defer the retirement of
some of Qantas' ageing planes to mitigate the impact of delays
and avoid any disruptions of flights schedule.

                      About Qantas Airways

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

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

The Troubled Company Reporter - Asia Pacific reported on May 19,
2006, that Qantas will slash 1,000 management, support and
administration jobs by the end of 2006 to counter a looming
AU$1-billion surge in its fuel bill.


QANTAS AIRWAYS: Urged To Present Cost-Cutting Plans
---------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
June 22, 2006, that Qantas Airways Ltd.'s full year profit for
2005/2006 will be at the lower end of analysts' forecasts,
reinforced by the AU$1-billion increase in fuel costs.

According to The Australian, the advice has put the airline
under pressure for further cost-cutting measures.

The report cites Qantas executives as saying that a
restructuring beyond the airline's AU$3-billion Sustainable
Futures Program may be necessary if fuel prices stay at current
levels.

Analysts now want to know how Qantas plans to offset the massive
rises in fuel costs, The Australian says.

However, The Age cites ABN-AMRO analyst, Anthony Srom, as saying
that jet fuel prices seemed to have stabilized and Qantas' cost-
cutting program should give the bottom line a boost.

ABN raises its "hold" rating on the airline to a "buy," but Mr.
Srom says he is not sure if he has picked the bottom of the
market.  On a "12-month view" a buying opportunity has emerged,
Mr. Strom relates.  

The news came as Qantas chief Geoff Dixon confirmed that the
airline will receive compensation from Airbus SAS for the delay
of aircraft delivery, The Age says.

However, Shaw Stockbroking analyst Brent Mitchell saw no basis
to change its "sell" rating on Qantas because the future could
see a greater impact from rising fuel and security costs.  Mr.
Mitchell also notes that Qantas' profitability was better than
many other airlines, but it has to work hard to maintain its
performance in a tough industry.

Future cost-cutting measures were likely to include moving some
flight crews overseas, boosting the number of budget airline
Jetstar's services, moving to online seat reservations for
Jetstar, and rationalizing maintenance services for narrow-
bodied aircraft, Mr. Mitchell said.

At an Asia Society lunch, Mr. Dixon refused to be drawn on
whether more job cuts were on the cards, The Australian adds.

                      About Qantas Airways

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

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

The Troubled Company Reporter - Asia Pacific reported on May 19,
2006, that Qantas will slash 1,000 management, support and
administration jobs by the end of 2006 to counter a looming
AU$1-billion surge in its fuel bill.


RIZK AUTOMOTIVE: Court Issues Wind-Up Order
-------------------------------------------
The Federal Court of Australia issued a winding up order on Rizk
Automotive Pty Limited on May 12, 2006.

Antony De Vries was also appointed as official liquidator.

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


VARDON GOLF: Set to Declare Final Dividend on June 27
-----------------------------------------------------
Vardon Golf Company Pty Limited will declare a first and final
dividend on June 27, 2006.

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

Contact: Craig Shepard
         Liquidator
         KordaMentha
         Level 24, 333 Collins Street
         Melbourne, Victoria 3000
         Australia


WHEEL SOLUTIONS: Liquidator to Present Wind-Up Report
-----------------------------------------------------
Members and creditors of Wheel Solutions Pty Limited will hold a
final meeting on June 27, 2006, at 10:30 a.m., for them to
receive Liquidator Paul Burness' final account showing how the
Company was wound up and how its property was disposed of.

Contact: Paul Burness
         Liquidator
         Worrells Solvency & Forensic Accountants
         Level 5, 15 Queen Street
         Melbourne, Victoria 3000
         Australia
         Telephone: (03) 9613 5511
         Fax: (03) 9614 3233


WOLLONGONG ADVANCED: Members Opt for Liquidation
------------------------------------------------
The members of Wollongong Advanced Cleaning Services Pty Limited
met on May 12, 2006, and agreed that a voluntary wind-up of the
Company's operations is appropriate and necessary.

In this regard, Danny Vrkic was appointed as liquidator.

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


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

ASIA FOCUS: Court Orders Wind-Up
--------------------------------
The Court of First Instance of Hong Kong on June 7, 2006,
ordered the winding up of Asia Focus International Holdings Ltd.

The wind-up petition was submitted before the High Court on
April 7, 2006.


BIG POWER: Wind-Up Petition Hearing Set for July 26
---------------------------------------------------
Lee Fung Kuen on May 26, 2006, filed before the High Court of
Hong Kong a petition to wind-up Big Power Industries Ltd.

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

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


BONWIN INDUSTRIES: Court Issues Winding-up Order
------------------------------------------------
The Court of First Instance of Hong Kong on June 5, 2006,
ordered the winding up of Bonwin Industries Ltd.

The wind-up petition was submitted before the High Court on
March 27, 2006.


CITIC GROUP: Unhurt by Pacific Rating Downgrade, Says S&P
---------------------------------------------------------
Standard & Poor's Ratings Services on June 22, 2006, clarified
that its ratings on CITIC Group -- currently at BB+ with a
positive outlook -- is not affected by the rating agency's
earlier decision to lower the ratings of CITIC Pacific Ltd to BB
from BBB-.

CITIC Pacific Ltd is 28.8% owned associate of CITIC Group.

According to Standard and Poor's, CITIC Pacific is a significant
but not substantial part of the group and the deterioration of
its credit profile is unlikely to impede the group's forward
momentum.

The group's forward momentum is currently driven by the
improving profile of its largest and weakest subsidiary, China
CITIC Bank, which accounts for about 70% of its total assets.

S&P adds that they are expecting an improvement from the bank
with regards to its still weak credit profile within the next
two years.

However, despite the improvements at the bank, Standard & Poor's
will continue to carefully monitor developments affecting CITIC
Group's non-financial businesses following media reports that
the company has been engaged in talks to acquire Nations Energy
Co. -- a privately held Canada-based oil firm with major
operations in Kazakhstan.

Meanwhile, CITIC Group has not yet publicly confirmed the
reports, which according to S&P, the transaction could be worth
US$2.2 billion, equivalent to about 40% of the company's owner
equity as at the end of 2005.
     
Standard & Poor's recognizes that the reported transaction would
be in line with the company's stated strategy of investing in
natural resources, but is unable to fully factor it into the
rating until the company confirms the reports and additional
details on the financing and likely returns become available.

                          *     *     *
Based in Beijing, China, state-owned conglomerate CITIC Group
(formerly China International Trust & Investment Corporation)
-- http://www.citicresources.com/-- oversees the Chinese  
government's international investments, as well as some domestic
ones.  Its nearly 40 company holdings on four different
continents include a controlling stake in a Hong Kong bank, as
well as investments in aluminum, timber, communications, and
machinery.


EPA LIMITED: Faces Winding-up Proceedings
-----------------------------------------
A petition to wind-up EPA Ltd will be heard before the High
Court of Hong Kong on August 2, 2006.

Ng Chak Fai filed the petition with the Court on June 3, 2006.

Contact: S. H. Chan & Co
         Solicitors for the Petitioner
         Units C-F, 18th Floor
         China Overseas Bldg
         139 Hennessy Road
         Wanchai, Hong Kong


FORTRESS INTERNATIONAL: Creditors' Proofs of Debt Due on July 24
----------------------------------------------------------------
Liquidator Kwok Yuen Man requires the creditors of Fortress
International Ltd to submit their proofs of debt by July 24,
2006.

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

Contact: Kwok Yuen Man
         34th Floor, The Lee Gardens
         33 Hysan Avenue, Causeway Bay
         Hong Kong


GOLDCO DEVELOPMENT: Picks Liquidators & Committee of Inspection
---------------------------------------------------------------
Goldco Development Ltd on May 22, 2006, appointed Yeo Boon Ann
and Stephen Liu Yiu as joint and several liquidators.

Subsequently, the Company named the members of its Committee of
Inspection composed of Lands Department and Rating Valuation
Department.

Contact: Yeo Boon Ann
         18/F., Two Intl Finance Centre
         8 Finance Street, Central
         Hong Kong


HIGH WEALTH: Winding-Up Bid Wins Court's Favor
----------------------------------------------
The Court of First Instance of Hong Kong ordered the winding up
of Gigh Wealth Engineering Ltd on June 7, 2006.

A petition to wind up the Company's operation was submitted
before the High Court on April 7, 2006.


HONGDA CONTAINERS: Court Approves Winding-up Petition
-----------------------------------------------------
A petition to wind-up Hongda Containers Ltd was filed with the
Court of First Instance of Hong Kong on March 29, 2006.

On June 7, 2006, the Court decided and ordered that the
Company's operations be wound up.


MAVALE ENTERPRISES: Court Decides to Favor Winding-up Bid
---------------------------------------------------------
The Court of First Instance of Hong Kong on June 7, 2006,
favored the winding up petition filed against Mavale Enterprises
Co Ltd.

The petition was filed before the High Court on April 7, 2006.


NICE SQUARE: Court to Hear Wind-Up Petition on July 12
------------------------------------------------------
A petition to wind up Nice Square (Group) Ltd will be heard
before the High Court of Hong Kong on July 12, 2006, at 9:30
a.m.   

The High Court received the application from Chau Sau Lan on
May 17, 2006.

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


SHARP MERIT: Appoints Joint Liquidators
---------------------------------------
Bruno Arboit and Simon Richard Blade were on March 24, 2006,
appointed liquidators to act jointly and severally for Sharp
Merit International Ltd.

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


SILKMATE INDUSTRIES: Names Tam and Ng as Joint Liquidators
----------------------------------------------------------
Kenny King Ching Tam and Mat Ng were on May 17, 2006, appointed
as liquidators to act jointly and severally for Silkmate
Industries Ltd.

Contact: Mat Ng
         17/F., Chun Wo Commercial Centre
         23 Wing Wo Street, Central
         Hong Kong


S.E.A. OVERSEAS: Members' and Creditors' Meetings Set June 27
-------------------------------------------------------------
Members and creditors of South East Asia Overseas Finance Ltd
will convene at 5th Floor, allied Kajima Bldg, 138 Gloucester
Road, Wanchai, Hong Kong on June 27, 2006, at 11:00 a.m. and
11:30 a.m. respectively.

During the meetings, members and creditors will be asked:
   -- to accept the resignation of Fan Wai Kuen as joint
      liquidator; and

   -- to appoint Stephen Briscoe as Mr. Fan's replacement.


T. S. PROMOTIONS: Court Orders Winding-up
-----------------------------------------
On June 7, 2006, the Court of First Instance of Hong Kong
ordered the winding up of T.S. Promotions Ltd.

A petition to wind-up the Company's operation was submitted
before the High Court on March 3, 2006.


TOMAX TRADING: Receives Wind-Up Order
-------------------------------------
The Court of First Instance of Hong Kong on June 7, 2006,
ordered the winding up Tomax Trading Co Ltd.

The wind-up petition was submitted before the High Court on
March 31, 2006.


WEALTHY SMART: Court to Hear Winding-up Bid on Aug. 9
-----------------------------------------------------
Lo Yik Huen on June 12, 2006, filed before the High Court of
Hong Kong a petition to wind-up Wealthy Smart Engineering Ltd.

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

Contact: Peter Mo & Co.
         Solicitors for the Petitioner
         11th Floor, Malahon Centre
         10-12 Stanley Street, Central
         Hong Kong
         Telephone: 2523 9061
         Facsimile: 2845 2060


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

ANDHRA CEMENTS: Earmarks INR100 Crore for Capacity Expansion
------------------------------------------------------------
Andhra Cements is considering increasing its Phase I
manufacturing capacity from the current 1.7 million tonnes to
three million tonnes, MY Iris News reports, citing Business
Standard.

The cost for the expansion is estimated to reach INR100 crore,
which will be financed through debt and internal accrual, The
Standard says.

Andhra Cements Chairman GP Goennka told Moneycontrol News that
the public will not experience any cement price hike until the
end of this year.  Prices of cement will therefore remain at
around INR160-165 per bag.

With the expanded facility, the Company is looking to increase
exports to 40,000 tonnes per month by fiscal 2008, Anhdra Cafe
reports.

The plans for the first phase of expansion would be firmed up
over the next three to four months, Andhra Cafe adds.

                        About Andhra Cements Limited

Cement manufacturer Andhra Cements Limited is part of the
Kolkata-based Duncan Goenka group.  The original promoter of
Andhra Cements handed over the reins to Goenka in 1994 when the
company was under the Board for Industrial and Financial
Reconstruction's purview.  The Company had been operating under
the sanctioned rehabilitation scheme of the BIFR dated June 16,
1994.  The Appellate Authority for Industrial and Financial
Reconstruction has already approved a rehabilitation scheme,
which entailed fund infusion worth around INR80 crore.   

Under the scheme, ICICI Bank has subscribed to 66.18 lakh shares
amounting to INR9.99 crore while promoters and their associates
subscribed to 1.98 crore shares amounting to INR30 crore.  
Furthermore, the bank has infused INR40 crore into the Company
as term debt, thus taking the aggregate fund infusion to around
INR80 crore.   

The Company is expected to turn around by 2006-07.


JIK INDUSTRIES: Board Meeting Slated for June 29
------------------------------------------------
JIK Industries Limited's board of directors is scheduled to meet
on June 29, 2006.

During the meeting, the Board will allot equity shares to the
Company's promoters and associates.

As reported by the Troubled Company Reporter - Asia Pacific on
June 14, 2006, the Company's members accorded authority to the
Board to offer, issue and allot up to 3,00,00,000 or more equity
shares at the price to be determined as per Securities and
Exchange Board of India Guidelines for preferential allotment to
the Company's promoters and associates on such terms and
conditions as may be decided and deemed appropriate by the
Board.

                      About JIK Industries

Headquartered in Mumbai, India, JIK Industries Limited --
http://www.jikindustriesltd.com/-- manufactures handmade non-
lead crystalware segment and is the only organized player in the
country.  JIK has had over seven years of experience in
manufacturing and marketing crystal.  Its products include
crystal glassware such as, glass tumblers, bowls, stemware,
showpieces, vases, etc, manufactured at Balkum, Thane,
Maharashtra.  The company had collapsed following accidents at
its chemical waste recycling plant and at its crystal-making
unit.  The Company, which had diversified interests -- crystal
making, money changing and chemical waste recycling -- was
forced to exit the money changing business after its net worth
was eroded.  Under the Reserve Bank of India stipulations
companies whose net worth was eroded were not allowed to
continue in the money changing business.  
  
On April 17, 2006, the Corporate Debt Restructuring Committee
has approved JIK's debt-restructuring package.  The CDR package
has entitled the Company to a INR105-million debt waiver, in
addition to the reduction in loan interest rate to 9% and FITL
interest rate to 6%.  The package allowed the Company to
complete the major part of its debt and business restructuring.  
So far, the Company's chemical division is shelved closed and
discontinued as whole.  Post restructuring, the Company will
remove and reduce approximately 48% of outstanding debt and
increase Share Capital and Network.


SHIVA CEMENT: BIFR Wants Debt Restructuring for Unit Effected
-------------------------------------------------------------
Shiva Cement Limited acquired a sick unit through a merger in
1997.  The Unit was under the monitoring of the Board for
Industrial Financial Reconstruction, Shiva disclosed in a
statement to the Bombay Stock Exchange.

However, the BSE disclosure did not identify the name of the
Shiva unit.

In the last BIFR hearing held on June 22, 2006, the Unit has
been deregistered from BIFR's purview with a specific direction
to give effect to a debt restructuring plan as approved by the
lenders on December 2004.

Headquartered in Orisa, India, Shiva Cement Limited manufactures
cement for domestic and local supply.  In September 2005, the
Company secured in-principle approval for its debt-restructuring
proposal after its consortium leader IFCI Limited as well its
lenders, including ICICI Bank, Bank of India, Bank of Baroda,
Allahabad Bank have all endorsed the restructuring plan.  


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

PERUSAHAAN GAS: Surprised by Government's Planned Privatization
---------------------------------------------------------------
PT Perusahaan Gas Negara's management said it did not know about
the Indonesian Government's plan to privatize 4% of the
Company's shares in a rights issue until reports came out in the
media, Antara News says.

However, the Company would, in principle, prepare for a planned
privatization on the Government's orders as majority
stakeholder, pending approval of the plan from the Office of the
Minister of State Enterprises.

According to PGN secretary Widyatmiko Bapang, the Government's
right as a majority stakeholder is to decide on selling its
shares without consulting with the Company or other
stakeholders, although the rights issue must be approved at an
extraordinary shareholders' meeting.

PT Perusahaan Gas Negara, headquartered in Jakarta, Indonesia
and 61% owned by the Government of Indonesia, is engaged in the
transmission and distribution of natural gas in the country,
with leading domestic market shares.

The Troubled Company Reporter - Asia Pacific reported on May 23,
2006, that Moody's Investors Service had affirmed PGN's Ba2
corporate family rating, which is expected to remain unchanged.


POLYSINDO EKA: Shareholders Okay Debt-to-Equity Swap
----------------------------------------------------
Stakeholders of PT Polysindo Eka Persada approved on June 21,
2006, the Company's proposal to convert a IDR14.07-trillion debt
into shares, Bloomberg News relates, citing Polysindo spokesman
Tunaryo in Bisnis Indonesia.

According to Bisnis Indonesia, creditors would now own 60% of
Polysindo after the debt-to-equity swap, 30% of which would go
to creditor Damiano Investment BV, which had just injected
IDR375.11 billion into the Company to maintain operations.

At present, the Company uses up to 60% of its machinery, the
paper states.

PT Polysindo Eka Perkasa Terbuka -- http://www.polysindo.com/--  
is engaged in the manufacturing of synthetic fiber and
chemicals, as well weaving, knitting and other textile industry-
related activities.  85% of the Company's revenues in 2000 came
from textiles, while chemicals accounted for 15%.  The Company's
operations are located in Indonesia, Africa, United States of
America, Asia, Europe, Middle East and Australia.


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

MITSUI SUMITOMO: Fitch Maintains AA- Rating Despite Suspension
--------------------------------------------------------------
Fitch Ratings Agency maintained Mitsui Sumitomo's positive 'AA-'
Insurer Financial Strength Rating on June 22, 2006, despite the
partial suspension of its operations by the Financial Services
Agency on non-payment of claims and unlawful sales practices.

The FSA has banned Mitsui Sumitomo from selling insurance
products for two weeks, while the sale of medical and long-term
care products is suspended until the agency sees improvement in
the Company's internal monitoring system.  The Agency will not
approve the sale of any new insurance product by Mitsui
Sumitomo, as well as new business tie-ups with other insurance
firms or banks for one year.  the Company is also prohibited
from setting up office outside Japan for three months.

Fitch believes Mitsui Sumitomo's financial strength will remain
high despite the suspension order, although it will continue
monitoring the Company and place its ratings on negative
CreditWatch if material deterioration occurs.

Tokyo-based Mitsumi Sumitomo Co. Ltd. --
http://www.ms-ins.com/english/index.html-- 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.


SANYO ELECTRIC: Scraps Plan to Develop Mobile Phones with Nokia
---------------------------------------------------------------
Sanyo Electric Co. and global mobile phone maker Nokia said on
June 22, 2006, that their plan to form a new jointly owned code
division multiple access mobile device company will not proceed
and that their
discussions have ended.

Following the initial announcement on February 14, 2006, based
on
joint negotiations and extensive analysis, Nokia and Sanyo
concluded that it is more beneficial to pursue other options
individually for their CDMA handset business.

The two companies had announced their plans to team up and form
a joint venture CDMA firm to boost sales and generate JPY30
billion annual profit, by merging Nokia's (dominance) in low- to
mid-range phones with Sanyo's expertise in developing handsets
with high-speed Internet access to download music and videos,
which is the current fashion in mobile phones.  

Both companies, however, said that they continue to value their
long-standing relationship and will leverage this to meet
customer and market expectations.

                          *     *     *

Headquartered in Osaka, Japan, Sanyo Electric Company Limited --
http://www.sanyo.com/-- is one of the world's leading makers of  
consumer electronics products.

As reported by the Troubled Company Reporter - Asia Pacific on
May 25, 2006, Standard & Poor's affirmed the Company's negative
'BB' long-term corporate credit and 'BB+' senior unsecured debt
ratings, which were removed from CreditWatch.  According to
Standard & Poor's credit analyst Katsuyuki Nakai, Sanyo Electric
made progress in restructuring its underperforming segments, and
its cash flow generation is improving.  But the rating has a
negative outlook on uncertainties in the Company's restructuring
plans, which include business alliances in the white goods
segment, and its ability to recover fully in its financial
performance.  

The Company reported a JPY205.66 billion net loss for the
quarter ended March 31, 2006, as compared with the JPY171.54
billion net loss it posted for the same quarter in 2005.


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

DONG-AH CONSTRUCTION: Keangnam Expresses Interest to Buy Firm
-------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
June 21, 2006, Dong-Ah Construction Industrial Co. has attracted
14 potential bidders since its creditors announced that they are
going to auction a controlling stake in the construction
company.

In an update, Bloomberg News relates that Keangnam Enterprises
Ltd. has expressed interest in acquiring Dong-Ah, joining other
bidders.

According to Bloomberg, other companies reported to be
participating in the bidding are Soosan Heavy Industries Co. and
Samwhan Corp.

As the TCR-AP indicated on June 21, 2006, bidders are expected
to conduct due diligence for two weeks and some may be asked to
submit proposals in July.  Dong-Ah creditors will decide later
on how many new shares the Company can sell to the buyer after
the Company cancels its outstanding shares.

Korea Asset Management Corp. is arranging the Dong-Ah sale along
with Samjong KPMG FAS Inc.

The Company is reportedly valued at more than KRW400 billion.

                   About Dong-Ah Construction

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

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

In 2005, Goldman Sachs Group Inc. and Korea Asset Management
Corp., the main creditors of Dong-Ah, asked a Seoul court to
halt bankruptcy filing procedures for the construction company
and place it under court receivership, to be sold later.  Both
firms put billions of won in public funds into Dong-Ah to rescue
the company.

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


HYNIX SEMICONDUCTOR: Scales Down US$700-Million Offering
--------------------------------------------------------
Hynix Semiconductor Inc. scaled back plans to raise funds
through the sale of stock and convertible bonds after global
stock markets fell, Bloomberg News relates.

The Company, which earlier planned to raise US$700 million
through a mix of stock and bonds, will now sell about
US$300 million of new shares, Bloomberg cites Hynix in a
regulatory disclosure.

Hynix is shelving plans to sell bonds convertible to Hynix stock
because of "current conditions" in the capital markets, company
spokesman Park Hyun said.

According to Bloomberg, Hynix's scaled-down plans underscore the
challenges facing companies seeking to sell shares as concerns
over rising interest rates worldwide saps demand for stocks.  
The world stock markets have lost about US$5 trillion in market
value since their May 9, 2006 peak.

Merrill Lynch is the sole global coordinator for the sale.

                   About Hynix Semiconductor

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.


HYNIX SEMICONDUCTOR: Creditors Reorganize Holdings
--------------------------------------------------
Creditors of Hynix Semiconductor Inc. plan to reorganize their
holdings to facilitate plans to sell their stake in the
chipmaker, Bloomberg News reports, citing Maeil Business
Newspaper.

Creditors, who earlier planned to sell as many as 62 million
shares of Hynix, will now seek to sell 40 million existing
shares.

Citing unidentified people in the financial industry, Maeil
Business said that under the plan, the number of creditors
holding stakes in Hynix will drop from 46 to nine, to avoid
going through a public tender when they sell their
remaining stake in Hynix.

Under South Korean rules, when 10 or more shareholders of a
listed company plan to sell a combined stake of at least 5%,
they must do so through a public tender, allowing minority
shareholders to also sell stock.

Specifics on the deal, which is being coordinated by Merrill
Lynch & Co., will be determined no later than the end of June,
Hynix said.

Bloomberg notes that Hynix intends to sell new shares and debt
valued at US$700 million.  Combined with Hynix's portion of the
sale, the creditors' transaction is valued at US$1.4 billion.

                   About Hynix Semiconductor

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.


HYNIX SEMICONDUCTOR: Court Directs Payment to Hyundai Heavy
-----------------------------------------------------------
The Seoul High Court refused to waive Hynix Semiconductor Inc.'s
debt to Hyundai Heavy Industries Co., Bloomberg News reports,
citing a regulatory filing by the Company.

Hynix, together with other defendants -- Hyundai Securities Co.
Ltd. and the brokerage's former chairman -- was directed to pay
Hyundai Heavy an aggregate of KRW193 billion, including
interest.

Bloomberg notes that a lower court had previously rejected the
defendants' appeal.  The earlier lower court ruling was
subsequently supported by the High Court.

Hynix clarified that the High Court's ruling would not
drastically affect the Company because it has already paid most
of the amount in 2004.

The Company has not indicated whether it will appeal the recent
court decision.

                  The Hynix/Hyundai Litigation

On July 28, 2000, Hyundai Heavy filed a lawsuit against Hynix --
formerly Hyundai Electronics Industries Co. Ltd. -- with the
Seoul District Court in connection with the Company's comfort
letter relating to a put option provided by Hyundai Heavy to the
Canadian Imperial Bank of Commerce.

On July 24, 1997, the Company sold 13 million shares of Hyundai
Investment & Securities Co., Ltd. to CIBC.  In relation to this
transaction, Hyundai Heavy entered into a share option agreement
with CIBC in which Hyundai Heavy was obligated to buy back
the 13 million shares of HIS if CIBC exercised its put option.
In return, the Company and Hyundai Securities provided Hyundai
Heavy with a "comfort letter" stating that Hyundai Heavy would
not suffer any burden as a result of the transaction.  The
Company, in turn, received a similar letter from Hyundai
Securities in which it acknowledged that all of the transactions
were initiated by Hyundai Securities and that Hyundai Securities
guaranteed that the Company would not suffer any legal or
economic losses in connection with the transactions nor would
the Company suffer any burden as a result of any related
sanctions.  When CIBC exercised its option on July 24, 2000,
Hyundai Heavy repurchased the shares and then filed a lawsuit
against Hyundai Securities and the Company, claiming that they
should compensate for the repurchase price of approximately
US$220 million and any related losses suffered by Hyundai Heavy
in connection with the repurchase of the shares.

In 2004, the Company paid Hyundai Heavy a total of
KRW124 billion for the apportionment of the compensation with
Hyundai Securities and related interest incurred in connection
with a ruling of the court against the Company and Hyundai
Securities to pay KRW172 billion as compensation to Hyundai
Heavy.  However, the Company contested the case, entering an
appeal on February 15, 2002.

In addition, Hyundai Heavy initiated a separate lawsuit claiming
in December 2004 that Hyundai Securities and the Company should
compensate for the KRW48.77 billion in taxes and any related
losses incurred by Hyundai Heavy in connection with the
repurchase of the shares.  In this regard, the Company recorded
non-operating expenses of KRW21.122 billion for apportionment of
loss with Hyundai Securities.

                   About Hynix Semiconductor

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.


HYUNDAI ENGINEERING: KEB Sells 5.2% Stake Ahead of Bidding
----------------------------------------------------------
Korea Exchange Bank has sold a 5.2% stake in Hyundai Engineering
& Construction Co. in a block trade on June 20, 2006, Finance
Asia reports.

The June 20 block trade of about 5.7 million shares was done at
a price of KRW42,700 per share, which equaled a 5% discount to
the latest close.  The final price marked the mid-point of the
initial price range of KRW41,850 and KRW43,600, Finance Asia
relates.

The KRW241.9-billion block trade was arranged by Morgan Stanley.  

According to the report, the move precedes the sale of a
majority stake by Hyundai Engineering's creditors.

Finance Asia recounts that Hyundai Engineering's nine creditors,
led by KEB, are looking to sell close to a 51% stake in the
Company through a competitive bidding process.

Citing people familiar with the sale, Finance Asia says that
Hyundai Engineering's creditors are ready to invite bids but are
waiting for the announcement of preferred bidders for fellow
construction firm, Daewoo Engineering & Construction Co.

Finance Asia further relates that that the sale of a controlling
stake in Hyundai Engineering became possible after its major
creditors, which owned 66% of the Company before the recent KEB
sale, decided in April to release Korea's largest construction
company from a five-year debt restructuring program.  Aside from
the decision to offload a controlling stake through an M&A deal,
this also opened the door for some of the creditors to sell an
additional 15% through the capital markets.

KEB was the only creditor to take advantage of that possibility.

                    About Hyundai Engineering  

Headquartered in Seoul, South Korea, Hyundai Engineering &
Construction Company Limited's -- http://www.hdec.co.kr/-- is  
involved in civil engineering, housing development projects and
other contracted construction works in South Korea and
internationally.  Its operations fall into the following key
areas: building, civil works, plant and power works.

Hyundai Engineering ran into a liquidity problem in 2000 after
extending massive subsidies to prop up its weak subsidiaries and
loss-making businesses.  Huge outstanding debts in Iraq further
strained the contractor's finances.

The Company's creditors agreed in March 2001 to bail it out of
bankruptcy by converting their loans into equity.  Since then,
the Company's market value has increased more than 15-fold from
about US$370 million since then.

The Troubled Company Reporter - Asia Pacific reported on
December 17, 2003, that the creditor banks of Hyundai
Engineering agreed to roll over the firm's debts, which amount
to KRW6 trillion, starting 2004.  The debt extension is valid
until 2006 and applies to KRW1.72 trillion in loans that come
due beginning 2004 and about KRW4 trillion in loan guarantees
related to construction activities.

Hyundai Engineering regained management control from creditors
in May 2005, clearing the way for banks to start selling 16% of
their 66% stake in the construction company.


HYUNDAI MOTOR: Chairmen's Arrest Stalls More Projects
-----------------------------------------------------
The arrest of Hyundai Motor Group's chairman, Chung Mong-koo,
has resulted in the group's losing focus on major projects,
Maeil Business says.

According to the report, setbacks are experienced in corporate
plans to create an integrated steel mill, while construction
schedules for automobile production plants in the Czech Republic
and in Georgia, United States, have still not been confirmed.

As reported in the Troubled Company Reporter - Asia Pacific on
May 16, 2006, Hyundai Motor disclosed that it will
"indefinitely" delay the initial construction work on its
planned Czech automotive plant.

Although Hyundai had concluded an investment treaty with the
Czech Minister of Industry & Trade, Milan Urban, on May 18,
2006, to invest EUR1 billion for the construction of a
manufacturing plant to be completed by the later half of 2008,
the construction date has not been set yet.

Moreover, Maeil says, the Company's World Cup involvement has
also suffered.  The World Cup is at its peak in Germany but
Chairman Chung is unable to participate in World Cup business
diplomacy despite having won the status of a World Cup sponsor
through massive investments.

In addition, Chairman Chung had been scheduled to visit Brazil
next month to conclude a long-term supply deal with Brazil's
CVRD, which is the world's biggest supplier of iron ore.  It is
now unclear whether this would push through with the Chairman's
confinement.

Business strategies, such as vertical affiliation,
intensification of overseas production weight, global sports
marketing and reproduction and extension of quality management,
are also facing delays and hitches, Maeil adds.

                      About Hyundai Motor

Headquartered in Seoul, South Korea, Hyundai Motor Company --
http://www.hyundai-motor.com/-- has been selling cars in the   
United States since 1986, but it only started selling its heavy
trucks stateside in 1998.  Hyundai produces 14 models of cars
and minivans, as well as trucks, buses, and other commercial
vehicles.  The Company reestablished itself as Korea's leading
carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since
reduced to about 45%.  The Company also manufactures machine
tools for factory automation and material- handling equipment.

The Troubled Company Reporter - Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.

Chairman Chung has been indicted early in May 2006 for fraud
charges.

Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.

Kia Motor President Chung Eui-sun, the group chairman's son, is
currently under a travel ban.  However, the Troubled Company
Reporter - Asia Pacific reported on June 14, 2006, that South
Korean prosecutors have decided not to indict the younger Chung
over his alleged involvement in the slush fund scandal.


HYUNDAI MOTOR: Slush Fund Probe Leads to Three More Arrests
-----------------------------------------------------------
Three more people were arrested for allegedly taking bribes from
Hyundai Motor Group, Zee News relates, citing South Korean
prosecutors.

According to the Chosun Ilbo, the Supreme Public Prosecutors'
Office has nabbed the former president of the state-run Korea
Asset Management Corporation, Yon Won-young; former chairman of
Korea Federation of Savings Banks, Kim Yoo-sung; and former
KAMCO financial officer, Lee Jeong-hun, for taking bribes from
Hyundai.

According to the reports, prosecutors raided the homes of the
three but will conduct further investigation before deciding
whether to indict them.

Messrs. Yon, Kim and Lee are suspected of taking up to hundreds
of millions of won in return for helping Hyundai Motor
subsidiaries write off an unspecified amount of debts.

Specifically, Chosun Ilbo says, Messrs. Yon, Kim and Lee aided
Kim Dong-hoon -- the jailed former head of Ahnkwon Accounting --
lobby politicians and government officials to write off debts of
ailing firms, including then-Kia affiliate, Wia, when Hyundai
took them over between 2001 and 2002.

Mr. Yon, who served as a member of an FSS standing committee,
was in charge of liquidating the bad debts of the firms in his
capacity as KAMCO president.  Mr. Kim, once a Finance Ministry
director, was working as an auditor at Korea Life, which was a
Wia creditor.

As reported in the Troubled Company Reporter - Asia Pacific on
May 17, 2006, Hyundai Motor Group's chairman, Chung Mong-Koo,
was arrested and indicted on charges of embezzling funds and
breach of trust.  He was suspected of embezzling about US$106
million since 2002 to create a slush fund, as well as of
incurring about US$320 million in damages to the group.

                      About Hyundai Motor

Headquartered in Seoul, South Korea, Hyundai Motor Company --
http://www.hyundai-motor.com/-- has been selling cars in the   
United States since 1986, but it only started selling its heavy
trucks stateside in 1998.  Hyundai produces 14 models of cars
and minivans, as well as trucks, buses, and other commercial
vehicles.  The Company reestablished itself as Korea's leading
carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since
reduced to about 45%.  The Company also manufactures machine
tools for factory automation and material- handling equipment.

The Troubled Company Reporter - Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.

Chairman Chung has been indicted early in May 2006 for fraud
charges.

Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.

Kia Motor President Chung Eui-sun, the group chairman's son, is
currently under a travel ban.  However, the Troubled Company
Reporter - Asia Pacific reported on June 14, 2006, that South
Korean prosecutors have decided not to indict the younger Chung
over his alleged involvement in the slush fund scandal.


* Loan Default Ratio Hits 6-Month Low in May  
--------------------------------------------
The Korean default ratio for May 2006 dipped to a six-month low
to 0.02%, the Maeil Business Newspaper reports, citing the
Central Bank of Korea.

According to the central bank, the number of companies that went
insolvent in May dipped to 189 -- 59 of which are in Seoul --
compared to April's 235.

By sector, manufacturing lost 77 companies in May, down by 11
from a month earlier, and services saw 69 companies going out of
business.

No conglomerates went bankrupt during the month, the BOK added.

BOK attributes the decrease to "abundant cash flows."


* Korea's 1Q Substandard Loans Totals KRW9.75 Trillion
------------------------------------------------------
Korea's Financial Supervisory Commission and Financial
Supervisory Service has released its first quarter 2006 report
on bank loans classified as substandard or below, a press
release from the FSC obtained by the Troubled Company Reporter -
Asia Pacific relates.

The release noted that substandard, doubtful, or presumed loss
at the end of the first three months of 2006 totaled
KRW9.75 trillion, slightly up from the KRW9.72 trillion in the
end of 2005.

For the first quarter, the ratio of SBLs to the total
outstanding loans fell from 1.22% to 1.20%, the lowest level
since the forward-looking criteria were first adopted in 1999.  
A drop in newly distressed loans during the quarter mainly
contributed to the lower SBL ratio.

On the other hand, distressed loans disposed during the quarter
totaled KRW2.9 trillion, down KRW2.2 trillion from the previous
quarter.  It is expected to pick up in the second quarter.

SBL ratios fell for corporate loans and credit card receivables
but rose slightly for household loans.

Kookin, with an SBL ratio of 1.62 (SBL of KRW2.23 trillion
against a KRW137.33 trillion total loans), topped the nationwide
banks with the highest SBL ratio, while SC First Bank comes in a
close second with a SBL ratio of 1.52 (KRW0.55 trillion vs.
KRW36.14 trillion).

Among the regional banks, Jeju had the same SBL ratio as Kookmin
(KRW0.02 trillion vs. KRW1.435).


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

ARTWRIGHT HOLDINGS: Changes Name to AHB Holdings Berhad
-------------------------------------------------------
Artwright Holdings Berhad has received the Certificate of
Incorporation on Change of Name of Company issued by the
Companies Commission of Malaysia on June 20, 2006.

Accordingly, the Company's named has been changed to "AHB
Holdings Berhad" effective June 20, 2006.

The Company's shareholders had approved the Proposed Name Change
at the Company's Extraordinary General Meeting held on June 7,
2006, the Troubled Company Reporter - Asia Pacific recounts.

                 About Artwright Holdings Berhad

Headquartered in Kuala Lumpur, Malaysia, Artwright Holdings
Berhad -- http://www.artwright.com/-- is involved in the  
trading of drafting equipment, office furniture and specialized
computer furniture.  Its other activities include research and
development of office interior markets and products and
investment holding.  The Company floundered after the 1997/98
Asian financial crisis.  Over-gearing and concentration on high-
end products severely affected the company's fortunes as the
high-end furniture business was considered a highly cyclical
industry.  It subsequently became a Practice Note 4 stock under
the Kuala Lumpur Stock Exchange Listing Requirements.  The
Company, though, has since restructured its financial position
and was taken out of PN4 in June 2004.  However, Artwright and
some of its subsidiaries needed to undergo a voluntary debt-
restructuring scheme to all termed-out lender in order to fully
wipe out its debts.  The Company said that it will continue to
work with its financial adviser, KPMG Financial Services Sdn
Bhd, to arrive at a settlement with all termed-out lenders.


AYER HITAM: Court Adjourns Hearing to August 8
----------------------------------------------
The hearing pertaining to KIY Design & Interior (M) Sdn Bhd's
application to intervene in the proceedings against Ayer Hitam
Tin Dredging Malaysia Berhad and to set aside the restraining
order and the Proposed Restructuring Scheme was adjourned to
August 8, 2006.  The matter was fixed for mention on June 20,
2006.

As reported by the Troubled Company Reporter - Asia Pacific on
March 9, 2006, Ayer Hitam intended to apply for an extension of
the restraining order granted by the Kuala Lumpur High Court.  
The Order expired on March 4, 2006.

The Company has applied for the Restraining Order so as to
facilitate its proposed Restructuring Scheme, which was
announced on August 17, 2005.

                        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 May 31, 2006, Ayer Hitam's payment defaults have reached
MYR40 million.  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.


CYGAL BERHAD: Proposed Revision Wins SC's Favor
-----------------------------------------------
Cygal Berhad has submitted an application to the Securities
Commission for approval of its proposed revisions to the terms
of the MYR83,290,604 nominal value of five-year 3% redeemable
convertible secured loan stocks in Sycal Ventures Sdn Bhd.

In its letter dated June 19, 2006, the Securities Commission
said that it will approve the Proposed Revisions provided that:

   -- Cygal Berhad has undertaken the necessary due diligence
      in relation to the Proposal;

   -- solicitor Commerce International Merchant Bankers Berhad
      has ensured that all other regulatory approvals for the
      Revision have been obtained;

   -- CIMB informs all relevant parties in relation to the
      RCSLS and the Proposed Revision, and where applicable,
      obtain their consents;

   -- prior to issuance of the RCSLS, CIMB will furnish a soft
      copy of the complete revised Term Sheet and Principal
      Terms and Conditions of the RCSLS in the prescribed
      format to the Securities Commission; and

   -- CIMB will submit a written confirmation on compliance
      with all the conditions.

The Proposed Revision is part of Cygal Berhad's debt
restructuring program, which includes:

     * a financial institutions scheme;

     * a non-financial institutions scheme;

     * part settlement of amount owed to offshore financial
       institutions;

     * additional issue to Commerce International Merchant
       Bankers Berhad;

     * rights issue of shares together with warrants;

     * acquisition of property development companies; and

     * delisting of Cygal and listing of new investment holding
       firm -- Sycal Ventures.

                       About Cygal Berhad

Headquartered in Kuala Lumpur, Malaysia, Cygal Berhad's
principal activity is civil and building construction works.  
Its other activities include housing development; manufacturing
and trading in ready mix concrete; trading in building
materials; leasing of aircraft parts and equipment; provision of
hotel management services; and investment holding.  The Group's
activities are located in Malaysia and Hong Kong.  On November
19, 2001, Cygal Berhad and its subsidiary companies finalized a
debt restructuring agreement with their lenders on involving
debts outstanding of approximately MYR230 million.


FURQAN BUSINESS: Shareholders Pass All AGM Resolutions
------------------------------------------------------
All resolution tabled at Furqan Business Organization Berhad's
6th Annual General Meeting on June 20, 2006, were duly passed by
the Company's shareholders.

At the meeting, shareholders:

   -- received and adopted the Company's audited financial
      statements for the year ended December 31, 2005, together
      with the Directors' and Auditors' reports;

   -- re-elected Lim Hong Sang, Lim Teik Wee and Chin Yok Koon
      as directors;

   -- approved the payment of Directors' fees of MYR48,000 for
      the year ended December 31, 2005;

   -- considered and approved the re-appointment of Deloitte
      KassimChan as the Company's auditors to hold office until
      the conclusion of the next annual general meeting; and

   -- authorized the directors to issue shares in the Company,
      subject always to the approval of all the relevant
      regulatory bodies being obtained for such allotment and
      issue.

            About Furqan Business Organization Berhad

Headquartered in Kuala Lumpur, Malaysia, Furqan Business
Organization Berhad formerly known as Austral Amalgamated Berhad
is engaged in property development and investment, tour and
travel services, and financial services.  Other activities
include contractor, leasing and hire purchase financing
facilities.  The Group's operations are substantially carried
out in Malaysia.  The Company's operating cash flow has
persistently remained in negative since December 31, 2002.  
Rating Agency Malaysia has downgraded the rating of the
Company's MYR37.66 million Redeemable Convertible Loan Stocks,
from BB3 to B1, with a negative outlook.  At the same time, the
rating agency is maintaining the Rating Watch on the Company,
pending further clarification on its recent corporate exercise
to acquire a 7%-stake in the Cepatwawasan Group.  The downgrade
is premised on the deterioration in Furqan's business profile,
especially in its leasing business, which is currently the main
revenue contributor to the Group.

As of March 31, 2006, the Company's balance sheet showed
MYR291,881,184 in total assets and MYR208,039,568 in total
liabilities.  In addition, the Company's March 31 balance sheet
also showed strained liquidity with MYR204,873,951 in total
current assets available to pay MYR208,039,568 in total current
liabilities coming due within the next 12 months.


MALAYSIA AIRLINES: Airbus Seeks 6-Month Delay in A380 Delivery
--------------------------------------------------------------
Aircraft manufacturer Airbus reportedly asked Malaysia Airlines
to delay its order for six A380 jumbo jets, The Herald Sun
reveals.

According to Bloomberg News, Airbus is trying to get Malaysia
Air to help it overcome the crisis caused by the late delivery
of its aircraft to clients.

Airbus chief commercial officer John Leahy had confirmed that
the airline was asked to delay the delivery of aircraft due in
April 2007, Bloomberg says.

The latest delay, the second announced by Airbus, has put back
the delivery schedules by 12 months, disrupting plans of 16
world airlines to introduce new fleet, Bloomberg adds.

Airbus told Malaysia Airlines that by delaying its order, the
national carrier will preserve cash, The Herald relates.

The Malaysia Airlines Employees Union seems to agree with
Airbus, as it advised the airline to put on hold its purchase of
A380 jumbo jets until it completes its restructuring exercises,
the Troubled Company Reporter - Asia Pacific recounts.  The
Union also suggested that Malaysia Airlines should allow other
carriers such as Singapore Airlines to use the A380 first and
evaluate its effectiveness.

Malaysia Airlines was hoping that the giant aircraft, which it
ordered three years ago, will help lower operating cost and thus
boost its revenues.

                    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.


MANGIUM INDUSTRIES: Unit Defaults on Debt Repayments
----------------------------------------------------
Mangium Industries Berhad's wholly owned subsidiary -- Mangium
Sawmill Sdn Bhd -- has not paid and is deemed to have defaulted
in its repayments on facilities granted by Standard Chartered
Bank Malaysia Berhad and Southern Bank Berhad.  These debts are
unsecured.

Due to the unfavorable timber market and depressed prices for
timber and timber related products throughout Asia since the
financial crisis in 1997, many of the Group's buyers were
adversely affected and are facing financial difficulties leading
to their inability to settle their outstanding balances despite
efforts made by the management to collect these outstanding
debts with the Group.  As a result, the cashflow generated from
operations was not sufficient to service the interest and
principal obligations to the lenders as and when they fell due.

In order to address the default in payments, both Standard
Chartered Bank Malaysia Berhad and Southern Bank Berhad have
agreed to the Proposed Debt Settlement and Restructuring Scheme
announced by Mangium Industries on December 22, 2003.

Mangium Sawmill's estimated total outstanding as of May 31,
2006, amounts to MYR15,402,962.

Since Mangium Industries is the guarantor for these loans, it is
liable for the full amount and any further interest and
financial cost levied there or until the settlement of these
debts.

                 About Mangium Industries Berhad

Headquartered in Kuala Lumpur, Malaysia, Mangium Industries
Berhad -- formerly known as Serisar Industries Berhad --
manufactures and trades timber and timber related products.  The
Company   also provides printing services, publisher, printer
consultants and advertisers, trading of alcoholic beverages,
general trading of office furniture and investment holding.  Due
to the unfavorable timber market and depressed prices for timber
and timber related products throughout Asia since the financial
crisis in the year 1997, many of the MIB Group's buyers were
adversely affected and are facing financial difficulties leading
to their inability to settle their outstanding balances.  As a
result, the cash flow generated from operations was not
sufficient to service the interest and principal obligations to
the lenders as and when they fell due.  

As of March 31, 2006, the Company's balance sheet showed
strained liquidity with MYR37,655,000 in total current assets
available to pay MYR54,003,000 in total current liabilities
coming due within the next 12 months.


MENTIGA CORPORATION: SC Grants Restructuring Condition Waiver
-------------------------------------------------------------
The Securities Commission, on June 16, 2006, approved Mentiga
Corporation Berhad's application for a waiver from a condition
imposed by the Commission in relation to the Company's
implementation of its restructuring exercises.

According to the Troubled Company Reporter - Asia Pacific, the
Condition requires Mentiga to obtain a separate document of
title Hak Guna Usaha for the oil palm plantations measuring
approximately 1,947.12 hectares situation in Indonesia for which
documents of the title have yet to be issued.  This Condition is
expected to be met prior to the implementation of the proposed
disposal by Mentiga's subsdiary Selat Bersatu Sdn Bhd of 18,900
ordinary shares of IDR1,000,000 each in PT Rebinmas Jaya to
Delloyd Plantation Sdn Bhd and Taipan Hectes Sdn Bhd for a cash
consideration of MYR61,200,000.

Meanwhile, the Waiver that the Securities Commission recently
granted to Mentiga is subject to:

   -- Mentiga entering into a supplemental agreement to remove
      the clauses pertaining to the retention of the agreed sum
      of MYR12 million by the vendors as well as any issued
      relating to the ownership of the plantations in the event
      the document of title for the plantations is not
      obtained;

   -- the Company making an announcement to Bursa Malaysia
      Securities Berhad upon execution of the supplemental
      agreement; and

   -- the Company informing the Securities Commission upon
      announcement of the execution of the supplemental
      agreement to Bursa Securities.

                 About Mentiga Corporation Berhad

Headquartered in Pahang Darul Makmur, Malaysia, Mentiga
Corporation Berhad is engaged in the trading of timber products,
construction and property development and management and
advisory services to oil palm plantations.  In 2003, the Company
proposed to undertake a debt-restructuring program to settle its
debt with creditors.  The Company has been suffering losses in
the past years and is currently working to avert a possible
delisting from the Official List of Bursa Malaysia Securities.  
The Group has submitted a revised comprehensive proposal to the
Securities Commission on March 16, 2005, to regularize its
financial condition and to restore the Group's shareholders'
fund from being in a deficit position in order to remove Mentiga
from being classified as a Practice Note 4 company.

As of March 31, 2006, the Company's balance sheet showed poor
liquidity with MYR16,064,000 in total current assets available
to pay MYR142,477,000 in total current liabilities coming due
within the next 12 months.


METROPLEX BERHAD: Court Dismisses Morgan Stanley's Stay Appeal
--------------------------------------------------------------
The Kuala Lumpur High Court, on June 15, 2006, dismissed with
costs Morgan Stanley Emerging Marker's application for stay of
execution against a court order allowing Metroplex's validation
order application.

The Court also fixed Metroplex's application to strike out
Morgan Stanley's winding-up petition for mention on July 27,
2006, with respect to the appointment of a third independent
expert for determination of foreign issues.

Furthermore, the Court set for hearing Morgan Stanley's
application to appoint a provisional liquidator for Metroplex on
June 27, 2006.  The Court will also hear Morgan Stanely's
injunction application restraining Metroplex Berhad and its
wholly owned subsidiary Metroplex Holdings Sdn Bhd from selling
the Putra Place property.

According to The Troubled Company Reporter - Asia Pacific, the
Kuala Lumpur High Court, on June 2, 2006, heard Metroplex
Berhad's application to strike out a wind-up petition filed by
Morgan Stanley Emerging Markets Inc.  Subsequently, the High
Court ruled in favor of Metroplex, and did not issue a wind-up
order against the Company.

The wind-up petition had been served on Metroplex on April 26,
2005, by the solicitors of Morgan Stanley.  Morgan Stanley
asserts payment of its US$7,126,960 claim for the credit
facilities granted by a syndicate of lenders to Legend
International Resorts Limited, whose obligations were guaranteed
by Metroplex.

The TCR-AP reported earlier that the Kuala Lumpur High Court had
issued an order appointing Kuan Mei Ling, of RSM Nelson Wheeler
Teo Corporate Advisory Services Sdn Bhd, as Metroplex's
provisional liquidator.  The appointment, however, is limited to
the extent of Mertoplex's 100% equity interest in Metroplex
Holdings Berhad and the sale of the Putra Place property to
Lembaga Kumpulan Wang Simpanan Pekerja for the purposes of
ascertaining the disposal alternatives of the Property.

The High Court will hear the Provisional Liquidator's Report on
June 27, 2006.

                    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.   


MULTI-USAGE HOLDINGS: SC Rejects Restructuring Request
------------------------------------------------------
The Securities Commission rejected on June 19, 2006, the
application made by Multi-Usage Holdings Berhad in relation to
its restructuring proposals.

The SC's decision was made after determining that the assets to
be injected to the Multi-Usage Group have yet to generate
profitability and do not have good prospects of strong profits
and cash flows which will bring immediate benefits to the Group.

Furthermore, the SC found out that the indicative issue price of
the Rights Shares is higher than the Company's current market
share price.  This may affect the successful implementation of
the Proposed Two-Call Rights Issue With Free Detachable
Warrants.

On September 1, 2005, Multi-Usage proposed to implement:

   -- a capital reduction;
   -- a two-call rights issue with free detachable warrants
   -- acquisition of Team Four property;
   -- acquisition pf Cassio property;
   -- acquisition of Perlis Concrete Products Sdn Bhd; and
   -- bank debt restructuring of the Multi-Usage Group.

The Company submitted the application to the Securities
Commission, Ministry of International Trade and Industry and
Bank Negara Malaysia seeking approval for the Proposals other
than the Proposed Bank Debt Restructuring of the Group.

On January 24, 2006, Bank Negara Malaysia granted its approval
for the issuance of Rights Warrants to the Company's non-
resident shareholders in relation to the Proposed Two-Call
Rights Issue with Free Detachable Warrants.   

In relation to the Proposed Acquisition of PCP, the vendor of
the PCP Shares has filed an application on December 26, 2005, at
the High Court of Malaya at Alor Setar for an extension of the
validity of the restraining order from January 1, 2006, until
December 31, 2006.  The application was approved by the Ministry
of International Trade and Industry on February 21, 2006.

MITI's approval, however, is subject to the Securities
Commission's approval being obtained and compliance with the
guidelines on the acquisition of interests, mergers and take-
overs by local and foreign interest.  But the Securities
Commission rejected the request on June 19, 2006.

Multi-Usage's board of directors will deliberate to determine
the next course of action.

                About Multi-Usage Holdings Berhad

Headquartered in Penang, Malaysia, Multi-Usage Holdings Berhad's
principal activities are development of properties, manufacture
and sale of cement concrete products, cement bricks, hollow
blocks, stones and all kinds of building materials.  The Company
is also engaged in contracting works for construction project,
provision of management services, hiring of mobile crane and
other heavy equipment, trading of furniture and investment
holding.  The Group operates predominantly in Malaysia.

As of March 31, 2006, the Company's balance sheet showed
strained liquidity with MYR42,524,000 in total current assets
available to pay MYR60,784,000 in total current liabilities in
the next 12 months.


PARK MAY: Firms Up Local Footing Before Going Global
----------------------------------------------------
Park May Berhad is preparing to enter the global market once it
establishes a foothold in Malaysia through its restructuring
exercise, The Star Online reports.

The Company plans to expand its transportation business in
countries such as Australia and Indonesia, where regulations
were more open and profit margins better compared to Malaysia's
highly regulated and competitive bus industry, The Star relates.

According to the report, Park May would also look at
opportunities in Sri Lanka, Myanmar and Vietnam and enter these
markets through mergers, acquisitions and joint ventures.

However, Park may chairman and managing director Datuk Mohd
Nadzmi Mohd Salleh stressed that the Company's top priority ist
still the completion of its restructuring and to have Konsortium
Transnasional Berhad take over Park may's listing status, The
Star adds.

As reported by the Troubled company Reporter - Asia Pacific,
Park May has submitted its restructuring proposal to the
Securities Commission in May and hopes to get a response by the
second half of the year.

                     About Park May Berhad

Headquartered in Kuala Lumpur, Malaysia, Park May Berhad --
http://www.parkmayberhad.com/-- provides public bus  
transportation in Peninsular Malaysia, categorized as stage bus
and express bus.  Its other activities include operation and
construction of light rail transit system, trading and property
holding, and investment holding and managing operation.

The Company has defaulted in its payment of monthly interest of
MYR1.1 million on its MYR135.6 million Combined and Converted
Short Term Loan Facility due on April8, 1999.  On December 30,
1999, the Corporate Debt Restructuring Committee successfully
assisted Park May Berhad to finalize a debt restructuring scheme
with its lenders and main suppliers involving debt outstanding
as at even date of MYR146 million.  On April 17, 2000, the
Securities Commission approved Park May's Proposals.  On
February 28, 2003, Park May registered a deficit in
shareholders' equity on a consolidated basis of MYR23.17
million, making it an affected listed issuer under Bursa
Malaysia Securities' Practice Note 4 category.  As an Affected
Listed Issuer, the Company is required to regularize its
financial condition.

As of March 31, 2006, the Company's balance sheet showed total
assets of MYR 38.9 million and total liabilities of MYR92.1
million.  It also showed stained liquidity with MYR13,973,000 of
total current assets available to pay total current liabilities
of MYR87,038,000 in the next 12 months.


POLYMATE HOLDINGS: ABI Malaysia Faces Another Claims Demand
-----------------------------------------------------------
Polymate Holdings Berhad's wholly owned subsidiary ABI Malaysia
Sdn Bhd received on June 19, 2006, a Writ of Summons and
Statement of Claim dated May 25, 2006, from Metal Reclamation
(Industries) Berhad.

In the suit, Metal Reclamation is asserting a MYR857,992 claim,
plus an annual default interest of 8% to be applied from the
date of judgment until the date of full settlement.

In addition, Metal Reclamation is also asking payment for legal
costs and other relief that the Court deems fit.

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.

ABI Malaysia received a Summons and Statement of Claim from
Lianma Enterprise on June 19, 2006.  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.

                  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.


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

LAFAYETTE MINING: Pays PHP10-Million Fine to Resume Operations
--------------------------------------------------------------
Lafayette Philippines, Inc., paid a PHP10.4-million fine to the
Philippine Government for two cyanide spill incidents at its
polymetallic gold, copper and zinc mine in Rapu-Rapu, Albay, in
October 2005, the Manila Bulletin reports.  The cyanide spills
reportedly polluted nearby waters.

The Company paid the fine on June 20, 2006, in an effort to
complete the 15 conditions necessary for it to conduct a 30-day
test run to determine if its mining operations comply with
environmental standards.

The Troubled Company Reporter - Asia Pacific stated on June 14,
2006, that the Government had allowed Lafayette Philippines to
conduct the test run to see if it was ready to resume its Rapu-
Rapu operations after its suspension in October last year,
pending these conditions:

   -- The Company must extend the validity of its surety bond
      and install a storm drainage canal to prevent tailings
      from spilling over the dam in case of heavy rains;

   -- The Company must put up dam monitoring instruments and
      emergency control mechanisms to prevent or lessen damage
      during the test run; and

   -- The test run must be open to the public, and Lafayette
      must commission independent experts to observe the test
      run.

Aside from paying the fine for its violation of the Clean Water
Act and its environmental certificate, Lafayette Philippines was
also tasked to submit a final mine decommissioning and
rehabilitation plan by December 2006, and deposit half of the
budget for the plan within six months of its approval, as well
as to sample the water and its tailings regularly after the test
run, the Bulletin relates.

LPI Vice President Bayani Agabin said that the Company has
completed most of the conditions set by the Department of
Environment & Natural Resources in order to start its test run,
but the Company will await the Government's verification of its
compliance before it proceeds.

A TCR-AP report on June 21, 2006, says that a DENR team will
monitor the Company's operations during the test run, which has
three phases.  The first phase, which lasts five days, entails
the DENR's monitoring of Lafayette's water system to determine
if there are leaks in its pumping system; the second phase,
lasting nine days, will have the DENR team gathering materials
from the Company's open pit and studying the system's
electromechanical adequacy; and the third and final phase
entails the gathering of rock samples for 16 days.

                          *     *     *

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

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

The Commission submitted its report in May, recommending the
closure of Lafayette's Rapu-Rapu mining project since it
discovered that the Company "had continued to dispose of its
mine waste into creeks after the spill incidents, despite the
order of the Mine and Geosciences Board to stop the disposal."
The Commission also sought a moratorium on mining in Rapu-Rapu,
since the mine had violated 11 of the 29 conditions of its
certificate.  However, the DENR, on June 13, 2006, allowed the
Company to reopen its mine to conduct a test run after it had
made repairs in accordance with environmental standards, under
strict conditions.


NATIONAL POWER: SC Affirms Ruling to Pay PHP7.1-Million Tax
-----------------------------------------------------------
The Supreme Court confirmed a Court of Appeals ruling ordering
state-owned National Power Corp. to pay a PHP7.1-million
franchise tax to the Philippine Government, ABS-CBN News
relates.

According to the Manila Times, SC First Division Associate
Justice Romeo Callejo Sr. affirmed the CA decision handed down
on Oct. 21, 2004, which stated that Napocor is not exempt from
paying taxes under the Local Government Code, and ordered the
Company to deposit the PHP7.1 million in escrow with the Land
Bank of the Philippines, pending determination on which province
is entitled to the tax, whether it is Isabela or Ifugao
province.

The Isabela provincial government had filed a case against
Napocor with the Isabela Regional Trial Court Branch 17,
claiming that the Company's Magat River Hydro Electric Plant is
located in Isabela, hence a franchise tax should be imposed on
the Company, ABS-CBN News adds.  The government said that
Napocor had paid PHP9.5 million in franchise taxes for 1992 and
1993, but refused to pay the PHP7.1-million franchise tax for
1994.  Napocor had argued that it was exempt from Section 137,
Republic Act 7160 of the 191 Local Government, which authorizes
provinces to impose a tax on businesses enjoying franchise,
since the Company was characterized as a non-profit organization
as the Government owned its stocks.

The Manila Times stated that in the Court ruling, tax exemptions
should be granted as a clear provision of the law, and cannot be
inferred.  In Napocor's case, it relied on the exemption granted
to it by its charter saying that it was exempt from the tax
despite the enactment of the Code.

As a general rule, local government units cannot impose
franchise tax on businesses.  However, Section 137 is the
exception to that rule, the Court added.

                     About National Power

Headquartered in Quezon City, Philippines, National Power Corp.
-- http://www.napocor.gov.ph/-- is a state-owned utility that  
builds and operates nuclear, hydroelectric, thermal, and
alternative power generating facilities.  It works with
independent producers under a build-operate-transfer program.  
With a generating capacity of more than 11,500 megawatts,
National Power sells electricity to distributors and industrial
companies.

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

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

A subsequent report by the TCR-AP states that in the first
review of National Power's portfolio, it was projected that the
Philippine Government would have to absorb some PHP600 million
worth of debt.  The Government initially absorbed Napocor's
PHP200-billion debt, which was incurred when the state firm
adopted international accounting standards, forcing it to report
its foreign exchange losses.  The Department of Finance is
studying the legality of the Government's absorption of the
debt.

To comply with the privatization bill approved by the Philippine
Congress, the Company started selling off its generation assets
to help pay for the utility's total estimated debt.  It also
separated its transmission operations into a new subsidiary, the
National Transmission Corporation.

Napocor's remaining debt could still be absorbed by the
Government, but the Development Budget Coordinating Committee
wants to see the Company improve operations and sell off non-
profitable assets in order to reduce its debt, instead of
relying on government aid to do so.  


PETPLANS INC: Seeks to Shift to Financial Services
--------------------------------------------------
Pre-need firm PETPlans, Inc., filed for rehabilitation with the
Makati Regional Trial Court, seeking to convert its outstanding
pre-need plans into a professionally managed mutual fund, the
Manila Times reveals.

Manila Standard Today relates that the Company felt the need to
exit from the pre-need industry due to a decline in its market
share on negative publicity and the closure of several large
pre-need firms.  Moreover, the Securities & Exchange
Commission's regulatory framework has remained the same despite
the industry's recent difficulties.

According to ABS-CBN News, PETPlans Inc. President Lorenzo T.
Ocampo said that the Company's proposed rehabilitation is its
"best move to protect the interests of plan holders."  He added
that they would continue to pay education, memorial and pension
benefits to plan holders while awaiting court approval for the
rehabilitation.

PETPlans aims to shift into business hubs offering various
services:

   * Network Hub will sell life, non-life, HMO and memorial
     park lots;

   * Financial Hub will provide loan and credit card facilities;

   * Filipino Workers Overseas Hub will provide money transfer,
     document and parcel delivery services.

PETPlans Inc.'s rehabilitation calls for plan holders exchanging
their pre-need contracts and insurance certificates with a fund
certificate that indicates a value proportionate to their share
in the fund.  Subsequent payments by amortizing plan holders
would be deposited into the fund, and in turn, they would get
additional certificates with the corresponding value.  When the
conversion is completed, holders of fully paid fund certificates
may opt to keep or withdraw their investment.  The pooled fund
would be managed independently and invested in a portfolio by a
major financial institution that would be accessible to all plan
holders.

The Company would then be operating under a new name, PETLink
Financial Corp., the Times says.

The Standard writes that the Company hopes to generate moderate
returns for its plan holders with the conversion of pre-need
plans into the managed fund, as it would no longer be restricted
by the pre-need industry.

Founded in 1988, PETPlans, Inc. -- http://www.petplans.com/--  
is an ISO-certified pre-need firm that offers education,
pension, memorial/life and dollar pension pension plans to
customers, with a PHP2.7-billion trust fund with 44% liquidity
and PHP140 million in corporate funds and real estate property
worth PHP60 million.  According to Manila Standard Today, the
Company decided to voluntarily stop selling new pre-need plans
in March 2006 due to the difficulties facing the pre-need
industry.


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

COMRICH PETROLEUM: Faces Wind-Up Proceedings
--------------------------------------------
On June 9, 2006, China Oil (Hong Kong) Corporation Limited filed
before the High Court of Singapore a wind-up petition against
Comrich Petroleum & Chemicals Pte Limited.

China Oil's application will be heard before the High Court on
July 7, 2006, at 10:00 a.m.

Contact: S.H. Koh & Company
         Solicitors for China Oil (Hong Kong) Cop Ltd
         5 Shenton Way #08-11
         UIC Building, Singapore 068808


D&T FROZEN: Court Issues Bankruptcy Order
-----------------------------------------
Assistant Registrar Dorcas Quek Ern Ling of the High Court of
Singapore issued on June 23, 2006, a bankruptcy order against
D&T Frozen Food.

Abwin Private Limited through solicitors March Han Advocates and
Solicitors filed the petition on June 9, 2006.

Contact: Koh Juat Jong
         Registrar
         Supreme Court of Singapore
         Singapore 178879


EMTEC MAGNETICS: Creditors' Proofs of Claim Due on July 6
---------------------------------------------------------
Emtec Magnetics Singapore Pte Limited notifies parties-in-
interest of its intention to pay dividend to creditors.

In this regard, the Company's creditors are required to file
their proofs of claim by July 6, 2006, to share in the dividend
distribution.

Emtec Magnetics is under voluntary liquidation.

Contact: Ong Yew Huat
         Seshadri Rajagopalan
         Liquidators
         c/o 10 Coller Quay #21-01
         Ocean Building
         Singapore 049315
    

GOOD CHANCE CONTRACTORS: Served with Bankruptcy Order
-----------------------------------------------------
Assistant Registrar Tan Wen Shan of the High Court of the
Republic of Singapore on June 23, 2006, declared Good Chance
Contractors & Trading Pte Limited bankrupt.

The bankruptcy petition was filed by Oversea-Chinese Banking
Corporation Limited through solicitors Yeo-Leong & Peh LLC.

Contact: Contact: Koh Juat Jong
         Registrar
         Supreme Court of Singapore
         Singapore 178879


RUBBER BAND: Distributes First and Final Dividend
-------------------------------------------------
Rubber Band Enterprise Pte Limited has started paying its first
and final dividend to creditors on June 23, 2006.

The Company distributed 100% of all admitted preferential claims
and 1.047% of all admitted ordinary claims.

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


WORLD DIGITAL: Contributories to Meet on July 17
------------------------------------------------
The first meeting of the contributories of World Digital Network
News Pte Limited will be held at 20 Cecil Street #12-02/03,
Singapore, on July 17, 2006, at 11:30 a.m.

During the meeting, members will be asked:

   -- to receive a statement of the affairs of the Company;

   -- to appoint a Committee of Inspection if deemed
      necessary; and

   -- to discuss any other relevant matters.

World Digital Network News was wound up on July 2, 2004, by an
order of the High Court of Singapore.

Contact: Ong Wei Leng
         Liquidator
         c/o Ong Wei Leng & Co.,
         Certified Public Accountants
         10 Ubi Crescent #03-46 Ubi Techpark (Lobby C)
         Singapore 408564
         Telephone: 6745 5433/6746 6022
         Fax: 6746 0688


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

* SET to Reclassify 34 Rehabco Firms as of July 3
-------------------------------------------------
The Stock Exchange of Thailand said that 34 companies in the
Rehabco Sector, or companies under rehabilitation, will have
their securities reclassified effective July 3, 2006, The
Bangkok Post reports.  

With the reclassification, Sino-Thai Resources and Thai
Petrochemical Industry will be returned to their normal groups
after having met rehabilitation requirements, The Post relates.  

According to The Post, another eight companies will also be
returned to their original industry, but would be refrained from
trading.

SET disclosed that these eight companies are:

   1. Abico Holdings,
   2. Asia Hotel,
   3. MDX Plc,
   4. PAE (Thailand),
   5. Premier Enterprise,
   6. Premier Engineering & Technology,
   7. Prasit Patana, and
   8. Siam Agro-Industry Pineapple.

However, the SET explains that if ever one company's
shareholders' equity is negative or if operations post a
quarterly loss, that company could be moved to a new non-
performing group.

Meanwhile, The Post notes that 17 companies will be removed from
the trading board and transferred to a new non-performing group.
These companies are:

   -- Agro Industrial Machinery,
   -- Advance Paint & Chemical (Thailand),
   -- Bangkok Rubber,
   -- Bangkok Steel Industry,
   -- Central Paper Industry,
   -- Datamat,
   -- Manager Media Group,
   -- NFC Fertilizer,
   -- Sahamitr Pressure Container,
   -- Sun Tech Group,
   -- Thai Durable Group,
   -- Thai-German Products,
   -- Tongkah Harbour,
   -- Thai Property,
   -- Tuntex (Thailand),
   -- Thai Wah, and
   -- Tanayong.

The companies under the new non-performing group will retain
their listing status and will be obligated to comply with SET
requirements.  

The Post adds that another seven companies will be transferred
to their original sectors as they have been in the Rehabco
Sector for less than two years.  However, non-compliance -- NC
-- and suspension -- SP -- signs will be posted on their shares
until they meet the rehabilitation requirements.

These seven firms are:

   1. Circuit Electronic Industries,
   2. Daidomon Group,
   3. Thai-Denmark Swine Breeder Agribusiness,
   4. Hantex,
   5. New Plus Knitting,
   6. Kuang Pei San Food Products, and
   7. Srithai Food & Beverage.

The SET requires companies that are exiting rehabilitation to
have positive shareholder equity, net profits from core
operations and at least 75% of their total debts restructured,
The Post says.



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