TCRAP_Public/060629.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

             Thursday, June 29, 2006, Vol. 9, No. 128

                            Headlines

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

ABLEOWL BI: Court to Hear CIR's Liquidation Bid on July 3
ACEDAM PTY: Receivers Step Aside
ADMIRAL HOMES: Decides to Close Business
AIR NEW ZEALAND: To Enter Into Agreement With Air Vanuatu
ALPHA APARTMENTS: To Declare Dividend on June 30

AUSTRALIAN FLORIST: Appoints Official Receiver
BAKERY REPAIRS: Members and Creditors to Receive Wind-Up Report
BELLE ROSE: Court Orders Appointment of Liquidators
BLUEMOON FINANZ: Placed Under Voluntary Liquidation
CMC CONCRETING: Supreme Court Orders Wind-Up

COASTER DEVELOPMENTS: Court to Hear Liquidation Bid on July 3
CONTRACTING PROFESSIONALS: Members Name Official Liquidators
DB CLADDERS: Liquidation Petition Hearing Fixed on July 3
EMU CREDITS: Creditors Agree to Wind Up Firm
FELTEX CARPETS: Shares Down But Employees Receive Pay Increase

HARE & PRESTON: Creditors' Proofs of Debt Due on July 21
INDI PTY: Set to Declare Dividend on July 3
KIAMA DOWNS: Liquidator to Present Wind-Up Report
MRB INVESTMENTS: Names Robert Harper as Liquidator
NATIONAL AUSTRALIA: Elstone Will Leave Board for ASX/SFE

NATIONAL LOGISTIC'S: Begins Wind-Up Proceedings
NOVARA HOLDINGS: Members' Meeting Scheduled for June 30
NYLEX LIMITED: Appoints New Secretary & Announces New Address
NYLEX LIMITED: Proposes AU$40-Million Convertible Note Issue
ONETHREE HOLDINGS: Creditors' Proofs of Claim Due on July 28

ON TRACK PARTITIONING: Receiving Proofs of Claim Until July 28
PRELLINGTON PTY: Members Agree to Wind Up Firm
RUDDENKLAU CONTRACTING: Creditors Must Prove Debts by July 14
SECURITY CONSULTANCY: Faces Liquidation Proceedings
SHERCOOM ESTATE: Enters Voluntary Liquidation

SOAPSTONE ENTERPRISES: Liquidation Bid Hearing Fixed on July 3
SONS OF GWALIA: DOCA Period Extended to August 30, 2006
STUDY VENTURE: Liquidator to Report on Wind-Up
T&C QUALITY: Prepares to Declare Dividend to Creditors
TELSTRA: Implements Operational Separation Plan

WORKING WATER: Court Issues Wind-Up Order
W.PEC & ASSOCIATES: Shuts Down Business Operations
* NZ's Trade Balance Returns to a Deficit
* NZ Consumers Have Lowest Confidence Since September 2000
* NZ's Current Account Deficit High and Unsustainable, S&P Says


C H I N A   &   H O N G  K O N G

ACCESS TREE: To Wind Up Business
ANDI (H.K.) LIMITED: Creditors' Proofs of Debt Due on July 28
AUXMAN INVESTMENT: Creditors Must Prove Claims by July 28
BEST PACIFIC: Faces Wind-Up Proceedings
BESTPLUS INDUSTRIES: Joint Liquidators Cease to Act for Company

BETTERWAY DEVELOPMENT: Faces Wind-Up Order
CHINAPACK GROUP: Court Issues Wind-Up Order
GUANGDONG KELON: Faces Possible Delisting
KAM KIU REAL: Members Final Meeting Set on July 24
LEGEND INTERNATIONAL: Court Favors Wind-Up Petition

LOYAL FAVOUR: Shareholders Opt for Voluntary Wind-Up
MASS GOOD PROPERTY: Joint Liquidators Step Aside
SHEEN BILI: To Receive Creditorss Proofs of Claim Until July 28
* Taiwan's Economy at Risk With Political Unrest, Says Fitch


I N D I A

HIRAKUD INDUSTRIAL: Tripartite Deal Paves Way for Acquisition
HOWRAH MILLS: Bengal Government Ordered to Protect Mill
* Severe Power Cuts Hurt Punjab Industry


J A P A N

AIFUL CORP: President Apologizes for Illegal Practices
LIVEDOOR CO: To Continue Providing Financial Services
SEIBU HOLDINGS: To Sell 34 Losing Facilities in Restructuring
SNOW BRAND: R&I Information Inc. Raises Rating to BB+


K O R E A

DAEWOO ELECTRONICS: Five Bidders Shortlisted
HYUNDAI MOTOR: Strike Projected to Bring KRW36-Billion Loss
KOREA EXCHANGE: Two Banks Sell 14.1% Stake in KEB to Lone Star
SSANGYONG MOTOR: Top Shareholder Allots KRW400-Bil for Firm
VK CORPORATION: Maturing Loans May Lead to Bankruptcy


M A L A Y S I A

FARLIM GROUP: Unveils 24th AGM Results
FARLIM GROUP: Members Approve Debt Settlement Proposals at EGM
INTAN UTILITIES: Units Undertake Partial Default Settlement
KAMDAR GROUP: Members Pass All AGM Resolutions
KRETAM HOLDINGS: Books MYR1.26-Million Net Profit in 1Q/FY2006

KRETAM HOLDINGS: Strikes Off Dormant Unit from Register
KRETAM HOLDINGS: Holds 18th Annual General Meeting
KUMPULAN BELTON: Passes All Ordinary AGM Resolutions
MALAYSIA AIRLINES: To Pay for Redundancy Package Via Gov't Funds
MALAYSIA AIRLINES: Refunds Fares of 5,000 Passengers

PAN MALAYSIAN: Secures MYR5-Mln Unsecured Loan from Metrojaya
PSC INDUSTRIES: Asia Coin Ceases as Subsidiary
SARAWAK ENTERPRISE: Begins Shares Sale Agreement Talks
SETEGAP BERHAD: To Hold 22nd AGM on June 30
TAKASO RESOURCES: Net Loss Swells to MYR1.7 Mln in Third Quarter


P H I L I P P I N E S

GOTESCO LAND: Cannot Explain Decrease in Share Price
* Philippine Government Spends PHP360 Billion to Service Debts


S I N G A P O R E

ASIA PACIFIC LOGISTICS: Prepares to Pay Dividend to Creditors
ASIAVEST PARTNERS: Creditors' Proofs of Debt Due on July 23
DAKA DESIGNS: Welcomes New Secretary and Financial Controller
GOLDEN STAR: Creditors Must Prove Debts by July 24
SAN REMO: Creditors' Proofs of Claim Due on July 24


T H A I L A N D

G STEEL PCL: Moody's B1 Ratings for Possible Downgrade
G STEEL PLC: S&P Places B+ Rating on Creditwatch

     - - - - - - - -

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

ABLEOWL BI: Court to Hear CIR's Liquidation Bid on July 3
---------------------------------------------------------
An application to liquidate Ableowl Bi Ltd -- formerly known as
Ableowl Bl Ltd -- will be heard before the High Court of
Hamilton on July 3, 2006.

The Commissioner of Inland Revenue filed the petition with the
Court on May 19, 2006.

Parties wishing to attend the hearing are required to file an
appearance not later than June 30, 2006.

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


ACEDAM PTY: Receivers Step Aside
--------------------------------
John Patrick Cronin and Joseph David Hynes had ceased to act as
receivers and managers of the property of Acedam Pty Limited on
May 19, 2006.


ADMIRAL HOMES: Decides to Close Business
----------------------------------------
The members and creditors of Admiral Homes Pty Limited held a
meeting on May 17, 2006, and agreed to shut down the Company's
business operations.

Subsequently, Geoffrey Charles Ridgeway and Phillip John
McGibbon were appointed as joint and several liquidators.

Contact: Phillip J. McGibbon
         Geoffrey C. Ridgeway
         Joint & Several Liquidators
         Jenkins Peake & Co.
         PO Box 1570, Geelong 3220
         Australia
         Telephone: (03) 5223 1000
         Fax: (03) 5221 4938


AIR NEW ZEALAND: To Enter Into Agreement With Air Vanuatu
---------------------------------------------------------
Subject to the New Zealand Government's approval, Vanuatu will
become the ninth Pacific Island destination for Air New Zealand
from August 5, 2006, when the airline enters into a bilateral
code-share agreement with Air Vanuatu.

Under the Agreement, Air New Zealand will initially operate its
code on the three services per week currently operated by Air
Vanuatu between Auckland and Port Vila.  Then starting late
October, Air NZ will operate an A320 service once a week and Air
Vanuatu will operate two B737 services per week.  Air NZ will
continue to retain its code on the two Air Vanuatu services.

Air Vanuatu Chief Executive Officer Terry Kerr says that the new
service will create more exposure and interest for Vanuatu as a
growing destination in New Zealand, adding that Air New
Zealand's support and contribution will bring another dimension
to the tourism development for Vanuatu.

                     About Air New Zealand

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

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


ALPHA APARTMENTS: To Declare Dividend on June 30
------------------------------------------------
Alpha Apartments Pty Limited will declare its first dividend on
June 30, 2006.

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

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


AUSTRALIAN FLORIST: Appoints Official Receiver
----------------------------------------------
Gregory J. Parker of Parker Insolvency was appointed as receiver
of Australian Florist Sundries Pty Limited on May 19, 2006.

Contact: Gregory J. Parker
         Receiver
         Parker Insolvency
         Level 5, 49 Market Street
         Sydney, Australia


BAKERY REPAIRS: Members and Creditors to Receive Wind-Up Report
---------------------------------------------------------------
A final meeting of the members and creditors of Bakery Repairs
Pty Limited will be held on July 3, 2006.

During the meeting, Liquidators Robyn Erskine and Peter Goodin
will report on the Company's wind-up activities and property
disposal.

Contact: Robyn Erskine
         Peter Goodin
         Liquidators
         Brooke Bird & Co. Insolvency Practitioners
         471 Riversdale Road, Hawthorn East 3123
         Australia
         Telephone: (03) 9882 6666


BELLE ROSE: Court Orders Appointment of Liquidators
---------------------------------------------------
The High Court of Christchurch ordered the appointment of David
Donald Crichton and Keiran Anne Horne as liquidators to act
jointly and severally for Belle Rose Homes (2003) Ltd.

The Liquidators subsequently advised the Company's the creditors
to submit their proofs of claim by July 13, 2006.

Contact: K.A. Horne
         c/o Marie Inch
         Crichton Horne & Associates Ltd
         Old Library Chambers
         109 Cambridge Terrace, Christchurch
         New Zealand
         Telephone: (03) 379 7929


BLUEMOON FINANZ: Placed Under Voluntary Liquidation
---------------------------------------------------
At a general meeting of the creditors of Bluemoon Finanz Pty
Limited on May 16, 2006, it was agreed that a voluntary wind-up
of the Company's operations is appropriate and necessary.

In this regard, John Frederick Lord was appointed as liquidator.

Contact: John F. Lord
         Liquidator
         PKF Chartered Accountants
         Level 10, 1 Margaret Street
         Sydney, New South Wales 2000
         Telephone: (02) 9240 9702
         Web site: http://www.pkf.com.au/


CMC CONCRETING: Supreme Court Orders Wind-Up
--------------------------------------------
The Supreme Court of New South Wales on May 25, 2006, ordered
that CMC Concreting Pty Limited be wound up.

The Court also ordered that Antony de Vries be named 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


COASTER DEVELOPMENTS: Court to Hear Liquidation Bid on July 3
-------------------------------------------------------------
The Commissioner of Inland Revenue on May 19, 2006, filed before
the High Court of Hamilton an application to liquidate Coaster
Developments Ltd.

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

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


CONTRACTING PROFESSIONALS: Members Name Official Liquidators
------------------------------------------------------------
At an extraordinary general meeting of the members of
Contracting Professionals Australia Pty Limited on May 17, 2006,
David Levi and John Morgan were appointed as liquidators to
oversee the Company's wind-up activities.

Contact: David Levi
         John Morgan
         Liquidators
         PKF Chartered Accountants
         Level 10, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia


DB CLADDERS: Liquidation Petition Hearing Fixed on July 3
---------------------------------------------------------
The High Court of Hamilton will hear a liquidation petition
against DB Cladders Ltd on July 3, 2006, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition before the
Court on May 31, 2006.

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


EMU CREDITS: Creditors Agree to Wind Up Firm
--------------------------------------------
The creditors of EMU Credits Pty Limited held a meeting on
May 15, 2006, and agreed to shut down the Company's business
operations.

Subsequently, Martin John Green and Peter Paul Krecji were
appointed as liquidators.

Contact: Martin J. Green
         Peter P. Krecji
         Liquidator
         GHK Green Krecji
         Level 9, 179 Elizabeth Street
         Sydney, New South Wales 2000
         Australia


FELTEX CARPETS: Shares Down But Employees Receive Pay Increase
----------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
June 26, 2006, the trading of Feltex Carpets Limited's shares
was suspended after announcing that it is in breach of its bank
loan covenants and needs to raise more capital.

Feltex, which called for a trading halt on June 23, had 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.

Shares in the carpet maker resumed trading on June 26.

In an update, The Dominion Post relates that after the trading
halt was lifted, analysts estimate that the Company needs
between NZ$15 million and NZ$60 million from its proposed
capital-raising to pacify its bank, the ANZ.

According to the report, Feltex now has a market capitalisation
of NZ$36.5 million, while its debt, including a trade bill
facility, amounts to NZ$129 million.

                        Job Cuts Feared

Workers at the carpet maker's operations in New Zealand fear
that they would lose their jobs to Australia, where Feltex also
holds business, or to China.

According to stuff.co.nz, Judy Attenberger of the National
Distribution Union, which represents about 700 of Feltex's 890
New Zealand staff, says that "the chances of them staying are
probably 50-50."

According to Ms. Attenberger, the union negotiated a pay rise of
up to 5% for a Feltex staff collective agreement, at the time
when the Company had talks with the potential investor about
raising funds.

Subsequently, The Manatawu Standard says, all 1,000 workers
across the country will receive up to a 5% pay increase
backdated to April 1, 2006.

"We think that if you can't at least give your workers a 5%
increase to meet rises in cost of living, then you don't deserve
to be in business.  Workers are very happy," the Manatawu
Standard cites Dion Martin, who is also with the NDU, as saying.

The report notes that Mr. Martin had a meeting with Feltex in
Dannevirke, which was scheduled as part of six meetings per year
with management.

The Standard also reports that Feltex spokesman John Walsh says
redundancies are not an option for the Company.  He says that
Feltex workers at plants in Feilding, Foxton, Dannevirke, and
Kakariki are considered core to the business.

                         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 fiscal year.


HARE & PRESTON: Creditors' Proofs of Debt Due on July 21
--------------------------------------------------------
Joint Liquidators Gerald Stanley Rea and John Maurice Leonard
require the creditors of Hare & Preston Construction Ltd to file
their proofs of debt by July 21, 2006.

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

Contact: J.M. Leonard
         Gerry Rea Associates
         P.O. Box 3015
         Auckland, New Zealand
         Telephone: (09) 377 3099
         Facsimile: (09) 377 3098


INDI PTY: Set to Declare Dividend on July 3
-------------------------------------------
Indi Pty Limited will declare its final dividend on July 3,
2006, to the exclusion of creditors who were not able to prove
their claims.

Contact: Judith Hunt
         Liquidator
         c/o Thomas Quinlan
         Suite 4, 143 Pacific Highway
         Hornsby, New South Wales 2077
         Australia


KIAMA DOWNS: Liquidator to Present Wind-Up Report
-------------------------------------------------
The members and creditors of Kiama Downs Bricklaying Pty Limited
will convene at a final meeting on July 3, 2006, at 11:30 a.m.,
to get an account of the manner of the Company's wind-up and
property disposal from Liquidator Danny Vrkic.

Contact: Danny Vrkic
         Liquidator
         Jirsch Sutherland & Co.
         PO Box 578, Wollongong
         New South Wales 2500, Australia


MRB INVESTMENTS: Names Robert Harper as Liquidator
--------------------------------------------------
At an extraordinary general meeting of MRB Investments Pty
Limited held on May 7, 2006, Robert James Harper was appointed
as liquidator to oversee the Company's wind-up activities.

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


NATIONAL AUSTRALIA: Elstone Will Leave Board for ASX/SFE
--------------------------------------------------------
The Australian Stock Exchange Limited and Sydney Futures
Exchange Limited revealed that they would appoint Robert Elstone
as chief executive officer to the merged ASX/SFE entity upon
shareholders' approval.  Subsequently, Mr. Elstone advised
National Australia Bank Limited's board of directors that he
will retire from the Board when the merger is approved.

As reported in the Troubled Company Reporter - Asia Pacific on
August 16, 2004, Mr. Elstone was appointed to the National Board
as one of its non-executive directors.

NAB's chairman, Michael Chaney, thanked Mr. Elstone for his
contribution to the Board, particularly as a member, and more
recently, as the Chair of the Board's Risk Committee.

Paul Rizzo will be appointed Chairman of the Board's Risk
Committee after Mr. Elstone's departure.

Mr. Rizzo's extensive experience in banking and finance will
continue the strong leadership of the Committee, Mr. Chaney
says.

                           About NAB

National Australia Bank is undertaking a three-year revival
program after a foreign exchange trading scandal in 2004, which
cost it AU$326 million, and several profit downgrades in 2005
that hammered its share price.  As of February 2006, NAB said
that it was moving ahead and that planning for its post-recovery
phase was under way.


NATIONAL LOGISTIC'S: Begins Wind-Up Proceedings
-----------------------------------------------
At a general meeting on May 19, 2006, the creditors of National
Logistic's Management Pty Limited agreed that the Company must
commence a wind-up of its operations.

Ezio Marco Senatore and Stephen Brennan were appointed as
liquidators to manage the wind-up exercise.

Contact: Stephen Brennan
         Ezio M. Senatore
         Liquidators
         Senatore Brennan Rashid
         Level 7, 28 University Avenue
         Canberra, Australian Capital Territory 2601
         Australia
         Telephone: (02) 6214 6700
         Fax: (02) 6214 6799


NOVARA HOLDINGS: Members' Meeting Scheduled for June 30
-------------------------------------------------------
The members of Novara Holdings Pty Limited will convene on
June 30, 2006, at 10:30 a.m.

During the meeting, Liquidator Laurence A. Fitzgerald will
present final accounts of the Company's wind-up operations and
property disposal.

Contact: Laurence A. Fitzgerald
         Liquidator
         Horwath BRI (Victoria) Pty Limited Chartered
         Accountants
         Level 30, The Rialto
         525 Collins Street, Melbourne
         Victoria 3000, Australia


NYLEX LIMITED: Appoints New Secretary & Announces New Address
-------------------------------------------------------------
Nylex Limited appointed Desmond Kelly as company secretary after
Anthony Serong decided to leave the post.

Nylex also announced its change of Registered Office and
Principal Place of Business to:

   Address        : 50-70 Stanley Drive, Somerton, Victoria 3062
   Postal Address : PO Box 64 Somerton, Victoria 3062
   Telephone      : +61(0) 3-9303-1444
   Facsimile      : +61(0) 3-9303-1481

                         About Nylex

Headquartered in Melbourne, Australia, Nylex Limited --
http://www.nylexlimited.com.au/-- is an Australian marketer,
manufacturer and service provider of plant hire services,
building products, automotive products, plastic products, and
engineered products.

Nylex has been in restructuring for 11 years, the past six saw
the Company management balance between keeping creditors happy
and placating shareholders, who over time lost 90% of their
investments.  Nylex owed its bank lenders more than AU$400
million at the peak and has basically been in a controlled
liquidation of the mish-mash of assets built up in the 1990s.

The Company has sold many businesses to reduce its debt, moved
some production offshore and now has a strong balance sheet and
is looking for acquisitions.  It has also launched a major push
to build on its strong position in garden water control to
become a leader in overall household water conservation.

The Troubled Company Reporter - Asia Pacific reported on
November 29, 2005, that Nylex's future earnings are uncertain
after shareholders sold the Company's profitable asset,
Lucrative AH Plant Hire, to a rival controlled by Nylex
shareholder and Seven Network Chairman Kerry Stokes.

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

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

In May 2006, Nylex announced a big restructure that will cost
about AU$10 million, and has started talks with potential
financiers and existing and potential senior debt providers.

Also in May, the Company announced a profit downgrade, saying
that the underlying earnings of continuing businesses for the
current financial year are expected to be between AU$1.5 million
and AU$2 million, which falls short of its previous guidance.
The Company also disclosed that it expects to incur or make
provisions for restructuring costs, and assets carrying value
adjustments of AU$18 million.


NYLEX LIMITED: Proposes AU$40-Million Convertible Note Issue
------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
May 19, 2006, that Nylex Limited announced a major business
restructuring, which would cost AU$18 million.

After the announcement, the Company disclosed a proposed
AU$40-million convertible note issue.  Nylex also disclosed that
it has received a non-binding indicative term sheet, from
Singapore-based Harmony Capital Partners Pty. Ltd., and Garden
Park Equities Pty. Ltd., in which Harmony and Garden Park would
each consider sub-underwriting AU$20 million of the issue.

Nylex executive chairman, Peter George, says the notes will be
offered to Nylex shareholders under a renounceable rights issue.
Pricing and other terms will be confirmed after a due diligence
process expected to conclude early July.

"[T]he proposed AU$40 million raising will provide much needed
capital to fund our restructuring program and allow the
company's management to implement our strategic plans," Mr.
George explains.

Mr. George also says that the proposed rights issue will allow
all shareholders to take up their entitlements to the
convertible notes.  It is also envisaged that options to
subscribe for shares in Nylex will be attached to the
convertible notes.

                         About Nylex

Headquartered in Melbourne, Australia, Nylex Limited --
http://www.nylexlimited.com.au/-- is an Australian marketer,
manufacturer and service provider of plant hire services,
building products, automotive products, plastic products, and
engineered products.

Nylex has been in restructuring for 11 years, the past six saw
the Company management balance between keeping creditors happy
and placating shareholders, who over time lost 90% of their
investments.  Nylex owed its bank lenders more than AU$400
million at the peak and has basically been in a controlled
liquidation of the mish-mash of assets built up in the 1990s.

The Company has sold many businesses to reduce its debt, moved
some production offshore and now has a strong balance sheet and
is looking for acquisitions.  It has also launched a major push
to build on its strong position in garden water control to
become a leader in overall household water conservation.

The Troubled Company Reporter - Asia Pacific reported on
November 29, 2005, that Nylex's future earnings are uncertain
after shareholders sold the Company's profitable asset,
Lucrative AH Plant Hire, to a rival controlled by Nylex
shareholder and Seven Network Chairman Kerry Stokes.

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

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

In May 2006, Nylex announced a big restructure that will cost
about AU$10 million, and has started talks with potential
financiers and existing and potential senior debt providers.

Also in May, the Company announced a profit downgrade, saying
that the underlying earnings of continuing businesses for the
current financial year are expected to be between AU$1.5 million
and AU$2 million, which falls short of its previous guidance.
The Company also disclosed that it expects to incur or make
provisions for restructuring costs, and assets carrying value
adjustments of AU$18 million.


ONETHREE HOLDINGS: Creditors' Proofs of Claim Due on July 28
------------------------------------------------------------
Joint and Several Liquidators Arron Leslie Heath and Michael
Lamacraft will be receiving proofs of claim from creditors of
Onethree Holdings Ltd until July 28, 2006.

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

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


ON TRACK PARTITIONING: Receiving Proofs of Claim Until July 28
--------------------------------------------------------------
On Track Partitioning Ltd -- through its liquidators Karen Betty
Mason and Michael Lamacraft -- will be receiving creditors'
proofs of claim until July 28, 2006.

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

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


PRELLINGTON PTY: Members Agree to Wind Up Firm
----------------------------------------------
The members of Prellington Pty Limited met on May 18, 2006, and
opted to:

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

  -- appoint Ronald George Davies as liquidator to manage the
     Company's wind-up activities.

Contact: Ronald G. Davies
         Liquidator
         Level 20, Darling Park Tower 2
         201 Sussex Street, GPO Box 5085, DX 77
         Sydney, New South Wales 2001
         Australia


RUDDENKLAU CONTRACTING: Creditors Must Prove Debts by July 14
-------------------------------------------------------------
Joint Liquidators David Donald Crichton and Keiran Ann Horne
require the creditors of Ruddenklau Contracting Ltd to file
their proofs of debt by July 14, 2006.

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

Contact: K.A. Horne
         C/O Marie Inch
         Crichton Horne & Associates Ltd
         Old Library Chambers
         109 Cambridge Terrace, Christchurch
         New Zealand
         Telephone: (03) 379 7929


SECURITY CONSULTANCY: Faces Liquidation Proceedings
---------------------------------------------------
The Commissioner of Inland Revenue on January 24, 2006, filed
before the High Court of Auckland an application to liquidate
Security Consultancy Ltd.

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

Parties interested to attend the hearing are required to submit
an appearance not later than July 4, 2006.

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


SHERCOOM ESTATE: Enters Voluntary Liquidation
---------------------------------------------
The members of Shercoom Estate Pty Limited convened on May 17,
2006, and agreed that the Company should wind up its operations
voluntarily.

David Lindsay Wilson was subsequently appointed as liquidator.

Contact: David L. Wilson
         Liquidator
         Wilson KBS Chartered Accountants & Business Advisors
         103 Albert Road, Moonah
         Tasmania 7009, Australia
         Telephone: (03) 6278 3000
         Fax: (03) 6278 3555


SOAPSTONE ENTERPRISES: Liquidation Bid Hearing Fixed on July 3
--------------------------------------------------------------
An application to liquidate Soapstone Enterprises Ltd will be
heard before the High Court of Wellington on July 3, 2006, at
10:00 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on May 25, 2006.

Parties wishing to attend the hearing are required to file
appearance not later than June 30, 2006.

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


SONS OF GWALIA: DOCA Period Extended to August 30, 2006
-------------------------------------------------------
Sons of Gwalia Limited's Joint and Several Deed Administrators
-- Andrew Love, Garry Trevor, and Darren Weaver -- notify
creditors that in accordance with the Deeds of Company
Arrangement, the DOCA period is extended to August 30, 2006.

The Administrators note that the extension was driven by the
timetable required to effect a proposed restructure of the
Company.  The terms and format of this restructure are currently
being finalized.

The Administrators say that they remain in frequent
communication with the Consultative Creditors Committee with
regard to administration matters.  They hope to provide the full
body of creditors with the proposed restructure materials
for consideration together with details for the next meeting of
creditors.

The Administrators note that the DOCA was executed on August 30,
2005, which was initially for a period of eight months to
April 30, 2006.

                     About Sons of Gwalia

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


STUDY VENTURE: Liquidator to Report on Wind-Up
----------------------------------------------
The members and creditors of Study Venture International Pty
Limited will convene at a final meeting on June 29, 2006, to get
an account of the manner of the Company's wind-up and property
disposal from Liquidator Philip G. Jefferson.

Contact: Philip G. Jefferson
         Liquidator
         c/O Horwath North Queensland
         Corner Aplin & Sheridan Streets
         Cairns Qld 4870
         Australia


T&C QUALITY: Prepares to Declare Dividend to Creditors
------------------------------------------------------
T&C Quality Meats Pty Limited will declare its first and final
dividend on July 4, 2006.

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

Contact: Robert Hutson
         Liquidator
         KordaMentha (Queensland)
         Level 2, Corporate Center One
         2 Corporate Court, Bundall
         Queensland 4217, Australia
         Telephone: (07) 5574 1322
         Fax: (07) 5574 1433


TELSTRA: Implements Operational Separation Plan
-----------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on June
27, 2006, that Communications Minister Helen Coonan approved
Telstra Corporation's plan for the operational separation of its
retail and wholesale divisions.

Following the ministerial approval, Telstra discloses that it
will immediately implement its Operational Separation Plan.

According to the Company, the Plan includes strategies covering:

   -- Equivalence of Service Quality

   -- Information equivalence

   -- Information security, and

   -- Customer responsiveness.

Telstra appointed its Director of Risk Management and Assurance,
Andrew Dix, as Director of Equivalence under the Plan.  Mr. Dix
will oversee the implementation of the Plan and report on
compliance to groups including the Australian Competition and
Consumer Commission and the Department of Communications.

The Plan and its required four strategy documents are now
available at the Company's Web site for free:

Telstra's Operational Separation Plan is available at:

    http://telstrawholesale.com/custsupp/docs/op_sep_plan.pdf

The four required strategy documents are also available at:

   http://telstrawholesale.com/custsupp/docs/op_sep_quality_strategy.pdf

   http://telstrawholesale.com/custsupp/docs/op_sep_equivalence_strategy.pdf

   http://telstrawholesale.com/custsupp/docs/op_sep_information_strategy.pdf


http://telstrawholesale.com/custsupp/docs/op_sep_responsiveness_strategy.pdf

                         About Telstra

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


WORKING WATER: Court Issues Wind-Up Order
-----------------------------------------
The Supreme Court of New South Wales had on May 25, 2006, issued
a wind-up order against Working Water Licenced Plumber Pty
Limited.

Subsequently, Steven Nicols was appointed as liquidator.

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


W.PEC & ASSOCIATES: Shuts Down Business Operations
--------------------------------------------------
The members of W.Pec & Associates Pty Limited convened on
May 19, 2006, and agreed to shut down the Company's business
operations.

James Patrick Downey was subsequently named liquidator.

Contact: James P. Downey
         Liquidator
         Cole Downey & Co. Chartered Accountants
         Level 1, 22 William Street
         Melbourne, Victoria 3000
         Australia


* NZ's Trade Balance Returns to a Deficit
-----------------------------------------
Statistics New Zealand reports that after recording trade
surpluses for the past two months, the balance of overseas
merchandise trade for May 2006 returned to a deficit, which
amounts to NZ$104 million.

According to Brian Pink, a Government Statistician, this is the
largest deficit ever recorded for a May month and only the third
in the last 20 years.  Over the past decade, the average trade
balance for May has been a surplus of NZ$274 million, Mr. Pink
says.

Mr. Pink relates that in May 2006, both imports and exports
showed large increases compared to May 2005.  Large value single
items contributed about a third of the total increase in both
imports and exports.

Imports for May 2006 are valued at NZ$3.75 billion.

Aircraft was also a large contributor to the increase in exports
for May 2006, valued at NZ$3,649 million, the highest on record
for any month, Mr. Pink says.

However, for the third month in a row, the commodity with the
greatest increase was milk powder, butter and cheese, which was
up NZ$213 million from May 2005.

In 2006, monthly trends continue to show increase in imports and
exports, Mr. Pink notes.


* NZ Consumers Have Lowest Confidence Since September 2000
----------------------------------------------------------
The New Zealand Press Association reports that due to high
petrol prices, interest rates, and the lower Kiwi dollar,
consumers are more nervous in the June quarter than they have
been in more than five years.

According to the report, the Westpac McDermott Miller Consumer
Confidence Index fell from 109.3 in the March quarter to 106 --
the lowest level of confidence since September 2000.

The largest factor in the drop was an increase in the number of
people who felt worse off now than they did a year ago because
costs were outstripping any increase in their income, ShareChat
says.

Westpac's chief economist Brendan O'Donovan notes that consumers
are also feeling the weight of a slowing housing market, which
meant homeowners are now more reluctant to extract equity from
their homes.

Consumers are also tightening their belts with regards to
leisure spending and major items, even though the falling
currency meant imports would soon be dearer.

"Many expect prices will be going up but have little money to
spend to take advantage of shop sales in the meantime," Richard
Miller, managing director of McDermott Miller, says.

"Eventually the weaker currency will boost the economy, but that
is unlikely before 2007.  Until then, economic conditions are
expected to further test consumers' willingness to prop up the
economy," the NZPA cites Mr. O'Donovan as saying.


* NZ's Current Account Deficit High and Unsustainable, S&P Says
---------------------------------------------------------------
Standard & Poor's Ratings Services says that New Zealand's
balance of payments data on June 22, 2006, marks a further
deterioration in New Zealand's chronic current account deficit
position.  At 9.3% of GDP, Standard & Poor's regards the current
account deficit as high and unsustainable, placing pressure on
the 'AAA/Stable/A-1+' local currency and 'AA+/Stable/A-1+'
foreign currency credit ratings on New Zealand.

"Importantly, the government has maintained a steady course of
fiscal discipline, which provides a vital buffer needed to
mitigate the effects of the country's high external debt,"
credit analyst Kyran Curry, Sovereign & International Public
Finance Ratings group says.

The high external debt presents ongoing contingent risk to the
government.  This relates to pressure the government may face to
assist borrowers if they suffer financial distress, as well as
any wider impact on the economy from a major downturn in
activity.

"Consequently, maintaining a strong fiscal position remains a
critical factor underpinning the 'AA+' foreign currency rating,"
Mr. Curry said.

Surveys indicate the current account deficit may gradually
narrow as the effects of the weaker New Zealand dollar stimulate
export growth and trim the local appetite for imports. "This
would be a welcome development, but New Zealand has a
significant way to go before its current account deficit and
foreign debt levels recede to more sustainable levels," Mr.
Curry says.


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

ACCESS TREE: To Wind Up Business
--------------------------------
Access Tree Industrial Ltd on June 14, 2006, received an order
from the High Court of First Instance in Hong Kong to wind up
its operation.

The Court issued a wind-up petition against the Company on
November 15, 2005.


ANDI (H.K.) LIMITED: Creditors' Proofs of Debt Due on July 28
-------------------------------------------------------------
Creditors of Andi (H.K.) Ltd are required to submit their proofs
of debt by July 28, 2006.

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

Contact: Ha Yue Fuen
         Room 1010, 10th Floor
         Wing On Centre
         111 Connaught Road Central
         Hong Kong


AUXMAN INVESTMENT: Creditors Must Prove Claims by July 28
---------------------------------------------------------
Liquidator Ha Yue Fuen requires the creditors of Auxman
Investment Ltd to submit their proofs of claim by July 28, 2006.

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

Contact: Ha Yue Fuen
         Room 1010, 10th Floor
         Wing On Centre
         111 Connaught Road Central
         Hong Kong


BEST PACIFIC: Faces Wind-Up Proceedings
---------------------------------------
A petition to wind up Best Pacific Ltd will be heard before the
High Court of Hong Kong on July 19, 2006 at 9:30 a.m.

The wind-up petition was filed with the High Court on May 19,
2006.

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


BESTPLUS INDUSTRIES: Joint Liquidators Cease to Act for Company
---------------------------------------------------------------
Joint and Several Liquidators Lo Yip Tong and Lau Kwai Fun on
May 25, 2006, ceased to act for Bestplus Industries Ltd.


BETTERWAY DEVELOPMENT: Faces Wind-Up Order
------------------------------------------
The Court of First Instance in Hong Kong on June 14, 2006
ordered Betterway Development Ltd to wind up its business.

The Court received the wind-up petition on April 10, 2006.


CHINAPACK GROUP: Court Issues Wind-Up Order
-------------------------------------------
Chinapack Group (H.K.) Ltd on June 14, 2006, received an order
from the High Court of First Instance in Hong Kong to wind up
its operation.

The wind-up petition against the Company was filed before the
Court on April 11, 2006.


GUANGDONG KELON: Faces Possible Delisting
-----------------------------------------
The A shares of Guangdong Kelon Electrical Holdings Co Ltd may
be delisted from various stock exchanges if the Company fails to
submit its Annual and First Quarter Report by June 30, 2006,
Infocast News reports.

However, the Company told Infocast that it will be able to file
the outstanding financial reports before the due, and added that
trading in its A shares will possibly resume on July 3, 2006.

Infocast says that the Company failed to submit for public
release its the annual report for the financial year ended
December 31, 2005, and the quarterly report for the three months
ended March 31, 2006, by the April 30, 2006, deadline pursuant
to Chinese regulations.

In fact, the Shenzhen Stock Exchange suspend trading in the
Company's A shares on May 8, 2006 until the Company releases its
outstanding financial reports, Infocast adds.

The H shares of the Company had been suspended since June 16,
2005, pending the release of an announcement in relation to
price-sensitive information.

Subject to the publication of the annual results of the company
for the financial year ended December 31, 2005, and further
announcements in relation to, amongst others, the financial,
production and trading position of the group, and the
satisfaction by the Stock Exchange of the adequacy of the
internal control measures of the company, trading in the H
shares of the company will remain suspended until
further notice.

                          *     *     *

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


KAM KIU REAL: Members Final Meeting Set on July 24
--------------------------------------------------
Members of Kam Kiu Real Estate (China) Company Ltd will convene
for their final meeting at Flat B, 16/F Kwong On Bank Bldg, 728-
730 Nathan Road, Hong Kong on July 24, 2006, at 10:00 a.m.

At the meeting, members will receive Liquidator Chu Chi Wa's
final account of the Company's wind-up exercise.


LEGEND INTERNATIONAL: Court Favors Wind-Up Petition
---------------------------------------------------
The Court of First Instance in Hong Kong on June 9, 2006,
ordered the wind-up of Legend International Ltd.

The wind-up petition was received by the Court on November 3,
2004.


LOYAL FAVOUR: Shareholders Opt for Voluntary Wind-Up
----------------------------------------------------
Shareholders of Loyal Favour Ltd at their extraordinary general
meeting on June 10, 2006, resolved to voluntarily wind up the
Company.

Consequently, Lam Ying Sui was appointed as official liquidator.

Contact: Lam Ying Sui
         Room 1005, Allied Kajima Bldg
         138 Gloucester Road
         Wanchai, Hong Kong


MASS GOOD PROPERTY: Joint Liquidators Step Aside
------------------------------------------------
Lo Yip Tong and Lau Kwai ceased to act as joint and several
liquidators of Mass Good Property Management Ltd on May 30,
2006.


SHEEN BILI: To Receive Creditorss Proofs of Claim Until July 28
---------------------------------------------------------------
Liquidator Ha Yue Fuen will receive proofs of claim from
creditors of Sheen Bili Ltd until July 28, 2006.

Failure to prove such claims on the due date will exclude any
creditor from sharing in any distribution the Company will make.

Contact: Ha Yue Fuen
         Room 1010, 10th Floor
         Wing On Centre
         111 Connaught Road Central
         Hong Kong


* Taiwan's Economy at Risk With Political Unrest, Says Fitch
------------------------------------------------------------
Fitch Ratings on June 28, 2006, said that Taiwan's economic
growth for this year is expected to remain stagnant.  The agency
forecasts GDP growth of 4% in 2006, virtually unchanged from
2005's figure of 4.1%.

The agency warned that risks to the growth outlook were skewed
to the downside, especially in light of the tumultuous political
backdrop, which is likely to erode consumer and investor
sentiment.

"Recent political events could damage consumer and investor
confidence, at least in the short term. Even with the recall
vote failing, political instability may drag on, since there
could now be a no confidence vote against the cabinet. The
longer the political uncertainty persists, the more pronounced
the economic implications are likely to be," said James
McCormack, senior director and head of the Asia-Pacific
Sovereign team.

Speaking at Fitch's Sovereign and Banking Conference in Taipei
today, Mr. McCormack elaborated that owing in part to the
erratic political environment, an increasing share of business
investment is taking place in China.

Fitch further highlighted that differences between the
legislative and executive branches of government have detracted
from the economic policy environment for several years already.

"With a weakened president whose leadership has suffered another
setback, Fitch is not optimistic about the policy outlook. From
a rating perspective, one of the issues that must be addressed
in Taiwan is the rising government debt burden, and it is
difficult to envisage an aggressive debt reduction programme
during the remainder of President Chen's term," Mr. McCormack
added.

Surveying the Asian banking scene, David Marshall, managing
director and head of the Asia-Pacific banking team noted that
still generally strong economic growth for most of Asia ex-Japan
offered a mostly benign environment for banks' asset quality,
but some countries were seeing strengthening headwinds from
slowing growth and rising interest rates.

"Korean banks are currently performing very well, having learnt
some painful lessons from credit quality problems incurred on
corporate lending during the Asian crisis and subsequently on
consumer and SME lending as they sought to shift their focus
away from large corporates to lend more to small businesses and
consumers" Mr. Marshall said.

Fitch noted some similarities in Taiwan with the rush to
consumer lending leading to some severe bad debt problems.

On the consumer lending crisis in Taiwan, Mr. Marshall said that
the charge-offs are peaking - at a very high level (annualised
charge-offs on credit and cash cards around 30%) - and should
subside in the second half of 2006.

"However, though consumer lending losses have dented the
profitability of Taiwan's banking sector and caused losses at
banks more focused on this business area, they do not pose a
risk to the overall health of the system," said Mr. Marshall.

Taiwanese banks' overall asset quality is reasonably healthy
with NPL ratios at 2.54% compared with nearly 4% a year ago,
thanks to the positive corporate earnings cycle and the recovery
in the property market in Taiwan, according to Fitch.


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

HIRAKUD INDUSTRIAL: Tripartite Deal Paves Way for Acquisition
-------------------------------------------------------------
The Ruia Group, on June 2, 2006, inked a tripartite agreement
with the labor union of Hirakud Industrial Works Limited in
compliance with a pre-condition for acquiring the state firm
from the Industrial Development Corporation of Orissa Limited,
Business Line reports.

According to the report, the deal outlines the compensation
package for an early retirement scheme to be offered to Hirakud
Industrial workers and payment of past dues for existing 410
employees.

Under the agreement, Ruia will pay 20% of the redundancy
package, as well as the entire sum of past entitlements and
arrears.  Hirakud's former promoter -- IDCOL -- will tap
finances from the Department for International Development,
United Kingdom, to finance 80% of the dues.

The Troubled Company Reporter - Asia Pacific recounts that the
Government was seeking fresh bids from investors, although it
was seriously considering an offer from SPS Steel and Power
Limited.

SPS Steel's bid came after the State Government canceled an
earlier tender awarded to Ruia-owned Varsha Fabrics, which
failed to make a committed payment within the stipulated
timeframe.  Hirakud Industrial employees preferred SPS Steel's
offer, as it promised that none of Hirakud's 1,400 workers would
be retrenched and their service conditions would remain
unchanged.

On May 19, 2006, the Orissa High Court put on hold IDCOL's
decision to open new tenders for Hirakud's privatization and
favored a petition from the Ruia Group, Business Line says.
Ruia had complained of injustice in the part of IDCOL when the
latter cancelled Ruia's winning bid of INR5.25 crore after the
bidder failed to complete the share purchase agreement within a
week.  IDCOL then invited fresh bids for Hirakud.

The High Court ruled in favor of Ruia and concluded that IDCOL's
direction to complete the SPA within a short span of time was
"unilateral, impractical and an impossibility".  The Court then
granted Ruia two months from May 19, 2006, to complete its
acquisition of Hirakud.

             About Hirakud Industrial Works Limited

Hirakud Industrial Works is a 34-year-old unit equipped to
manufacture machinery components, aluminium conductors and
transmission line towers.  It is a sick State Government-owned
unit that is being divested as part of the public sector unit's
restructuring program funded by the Department for International
Development of the United Kingdom.


HOWRAH MILLS: Bengal Government Ordered to Protect Mill
-------------------------------------------------------
The Supreme Court has asked the West Bengal government and the
state police to provide protection to Howrah Mills Co Ltd as it
disposes of property under a revival scheme of the Board for
Industrial and Financial Reconstruction, Business Standard says.

The Order was issued following a complaint by Howrah Mills that
efforts were being made to interfere with the possession of the
property and the authorities were not rendering help, the report
says.

According to The Standard, the Calcutta High Court had earlier
granted interim protection but a Division Bench of the High
court had later reversed the order in favor of an appeal by a
few assignees of a minority shareholder.

The Company the appealed to the Supreme Court, which later
allowed the request and decided that the State should be equally
interested in seeing to it that the property is fully protected
until the scheme proposed by BIFR is implemented and the revival
of the industry is ensured, The Standard relates.

The Court added that the State Government should have readily
extended help to the Company at public expense.

Founded in the year 1896, Howrah Mills Co. Limited has been
manufacturing jute and allied products for over 100 years.


* Severe Power Cuts Hurt Punjab Industry
----------------------------------------
Daily power cuts in the Punjab District has caused industries to
lose between 20% and 40% of their production capacities,
Business Standard reports.

With an average of six to eight hours of power interruption, the
factories in Punjab are forced to slash two days from the seven-
day workweek due to the power shortage, The Standard says.

"Production of hand tools has gone down by almost 20%. Exporters
are not able to meet their obligations.  Apart from witnessing
3-4 hours power cuts during peak hours, we are also facing 3-4
hours daily intermittent power supply.  Moreover, from today we
have to shut shop for two days a week which will make things
worse," All India Hand Tools Panel (Engineering Export Promotion
Council) Chairman Sharad Aggarwal said.

To solve the state's power woes, Mr. Aggarwal suggested that the
Government enter power purchase agreements with other states
before the end of summer, besides exploiting hydro electric
generation fully.

In Ludhiana, production of steel plants has been hit by more
than 30-35%.  Sources said monthly production of industries in
Ludhiana was estimated at INR5,000 crore but the unprecedented
power cuts have shaved off one third of the expected production.

The situation is worse in Goraya, which is witnessing voltage
drops.  Industrialist Ashwani Kohl complained that the daily
power cuts and intermittent voltage has already damaged panels
and machinery.

"If things don't improve, we will not able to fulfill our export
obligation.  As it is, we are 10-12 days behind schedule and
importers are imposing penalty on us." Mr. Kohl told The
Standard.

The Standard says that the hike in diesel prices -- which is
used to run diesel generators -- coupled with the increase in
power tariffs, has aggravated the problem.

The power situation is no better in Amritsar where entrepreneurs
are witnessing daily five hours cuts, on top of the three hours'
cut during peak hours, The Standard adds.


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

AIFUL CORP: President Apologizes for Illegal Practices
------------------------------------------------------
At a shareholders' meeting on June 27, 2006, Aiful Corp.
President Yoshikita Fukuda apologized to the Company's investors
for its illegal lending practices Crisscross News relates.

According to a report by the Troubled Company Reporter - Asia
Pacific on April 21, 2006, the Financial Services Agency had
suspended Aiful's operations in March as punishment for
intimidation and illegal collection practices.  As a result of
the business suspension, Aiful expects its group net profit to
fall 20.2% to JPY52.54 billion for 2006.

                          *     *     *

Aiful Corporation -- http://www.ir-aiful.com/english/-- is the
largest Japanese consumer finance company. The Company provides
financial services such as unsecured/non-guaranteed loans and
commerical/real estate collateral loans.  Currently the company
is based in Kyoto and has annual profits of close to JPY100
billion on over JPY2 trillion worth of loans.


LIVEDOOR CO: To Continue Providing Financial Services
-----------------------------------------------------
Livedoor Co. Ltd President Kozo Hiramatsu said that the Company
will retain its financial services operations even after it
disposes of its financial business units, since it is one of the
Company's core businesses, the Japan Times relates.

Mr. Hiramatsu said that they are still unsure about relisting
Livedoor shares in the Tokyo Stock Exchange after being delisted
on April 4, 2006, as a result of an accounting scandal at the
firm.

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

The TCR-AP recounts that following the accounting scandal,
Livedoor's stock price plunged to JPY94 per share from over
JPY300 per share, before being delisted from the TSE.

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

If Livedoor is found guilty of accounting fraud, the Securities
Exchange Law requires that the Company reduce its shareholding
ratio in affiliate Livedoor Securities Co. to less than 20%.

According to Mr. Hiramatsu, their priority right now is to
establish a good relationship with cable broadcaster Usen Corp.,
with which it is planning a capital tie-up.

                          *     *     *

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


SEIBU HOLDINGS: To Sell 34 Losing Facilities in Restructuring
-------------------------------------------------------------
Seibu Holdings, Inc., plans to dispose of 34 loss-making resorts
and facilities in two prefectures as part of its restructuring
efforts, Crisscross News reveals.

In a report by Antara News on June 8, 2006, the transportation
and resort development group wants to complete the sales of its
unprofitable hotels and resort facilities by March 2007.

Company President Takashi Goto said that the facilities may
continue to operate under different owners and retain current
employees.  He added that they would look for buyers who would
respect the Company's policy to keep the facilities operating.

The Troubled Company Reporter - Asia Pacific reported on June 9,
2006, that Seibu's hotel unit, Prince Hotels Inc., posted a
PHP372-billion consolidated net loss for the fiscal year ended
March 31, 2006.  The Company plans to rehabilitate Prince Hotels
for JPY93.5 billion.

Antara relates that Seibu Holdings aims to reduce its interest-
bearing debts from the JPY1.35 trillion as of March 3, 2005, to
less than JPY1 trillion by March 2008.  The Company also plans
to generate JPY33 billion in pre-tax profit next year.


SNOW BRAND: R&I Information Inc. Raises Rating to BB+
-----------------------------------------------------
Rating & Investment Information, Inc., June 23, 2006, upgraded
the rating of Snow Brand Milk Products Co., Ltd., to BB+ from
BB-, while its long-term issue rating has been raised to BB from
B+.

The Company's financial performance, which was affected by a
string of scandals in fiscal 2001 and 2002, has greatly improved
due to a fundamental split and restructuring of its operations
and cost structure reforms.  It was able to complete its
rebuilding plan six months ahead of schedule.

Snow Brand's fiscal composition is also improving with the
elimination of financial aid from its main banks, refinancing
accompanying debt extension, and the issue and retirement of
preferred stock.  Rating & Investment Information, Inc. reviews
the turnaround in profit due to the Company's progress in its
rebuilding plan and its fiscal structure improvements.

The Company's BB+ rating has a positive outlook, while its long-
term issue rating at BB is one notch lower than the Issuer
Rating reflecting the recovery risks entailed by its secured
debts, which continue to be substantial.  However, the operating
environment is severe, with the rise in the price of raw
ingredients, fiercer sales competition, and excessive powdered
skim milk and butter inventories.

Snow Brand needs to pay attention to the progress of its efforts
to improve profitability and cash flow creativity in line with
its new mid-term management plan, and the stabilization of the
fiscal structure.  If the measures aimed at clearing the plan's
targets go well, it is quite possible that the rating could
recover and re-enter the BBB zone.

Snow Brand Milk Products Co., Limited is Japan's leading
manufacturer of cheese, butter and other dairy products.


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

DAEWOO ELECTRONICS: Five Bidders Shortlisted
--------------------------------------------
Daewoo Electronics Corp.'s creditors have short-listed five
unnamed bidders, four of which are foreign firms, to conduct due
diligence on the home appliances and television maker, Reuters
reports.

The Troubled Company Reporter - Asia Pacific reported on
June 23, 2006, that seven foreign companies -- including United
State-based Whirlpool Cooperation and India's Videocon
Industries Ltd -- and one domestic firm have submitted sealed
proposals after Daewoo Electronics' creditors had implemented a
preliminary bid at the ABN AMRO Consortium in May 2006.

According to media reports the sale price for Daewoo Electronics
could be up to US$1 billion.

Creditor banks of the Company will pick preferred bidders as
soon as final bids are received, Reuters relates.  They hope to
wrap up the sale by September.

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

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

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

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

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


HYUNDAI MOTOR: Strike Projected to Bring KRW36-Billion Loss
-----------------------------------------------------------
Workers at Hyundai Motor Co. walked off their jobs on June 26,
2006, as part of a planned four-day partial strike for higher
pay, the Associated Press reports.

According to AP, the workers' plan to lay down tools for 12
hours at three Hyundai factories was expected to result in a
production loss of 2,654 vehicles, worth KRW36 billion.

Earlier press reports stated that 80% of Hyundai Motor workers
voted in favor of the plan to stop work for two to four hours
every day starting June 26.  The workers' union, composed of
43,890 members, is seeking a 9.1% pay and incentives hike, among
other requests.

"The strike is pretty burdensome as it comes at a difficult time
when we're facing an unfavorable foreign currency rate, higher
oil prices and fiercer competition in export markets," Hyundai
spokesman, Jake Jang, told AP.

The strike also comes as a time when Hyundai has been without
its chairman, Chung Mong-koo.

As reported in the Troubled Company Reporter - Asia Pacific on
May 17, 2006, Chairman Chung was arrested and indicted on
charges of embezzlement 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.  Chairman Chung has been in prison since April 28,
2006, after a month-long probe, and has been held in a detention
center near Seoul.

Chron.Com recounts that in 2005, Hyundai workers also staged a
strike, which resulted to the Company and the union agreeing on
a 6.9% increase in basic salary.

                      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.


KOREA EXCHANGE: Two Banks Sell 14.1% Stake in KEB to Lone Star
--------------------------------------------------------------
Germany's Commerzbank AG recently sold its entire 6.48% stake,
or 41.8 million shares, in Korea Exchange Bank to Lone Star
Funds for KRW8,487 per share, MarketWatch.Com reports, citing a
public disclosure from Commerzbank.

The sale was in accord with a call option held by the United
States-based Lone Star, Commerzbank's filing with the Financial
Supervisory Service indicated.

Earlier, Export Import Bank of Korea also disclosed that it sold
a 7.62% stake in KEB to Lone Star under a similar option.
Following the sale, Export Import continues to hold its
remaining 6.25% stake in KEB.

The Troubled Company Reporter - Asia Pacific reported on
March 24, 2006, that Lone Star has agreed to sell its 64.62%
stake in KEB to Kookmin Bank.  Kookmin Bank will have to pay
KRW6.4 trillion for the takeover.

On May 19, 2006, Lone Star and Kookmin Bank signed a final
contract for the deal, which will be the largest acquisition in
South Korean history.

The finalization of the deal is subject to the approval by local
authorities and the completion of an ongoing investigation of
Lone Star by Korean prosecutors over suspected tax and foreign
currency law violations in its purchase of KEB shares in 2003.

                      About Korea Exchange

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

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

The Board of Audit and Inspection and the Supreme Public
Prosecutors' Office initiated separate investigations into the
matter.

On June 20, 2006, the BAI determined that Lone Star's
acquisition of Korea Exchange was led by management with the
approval of the financial supervisory bureau.  BAI found that
KEB exaggerated its insolvency and falsely recorded the Bank for
International Settlements' capital adequacy ratio at 6.16%.

The Supreme Public Prosecutors' Office began its own
investigation of the KEB scandal on June 19, 2006.  Prosecutors
will investigate whether there were any transgressions of law in
the process of selling KEB and whether bribes were given to
officials.  If prosecutors will find solid evidence that the
data was cooked up, it might lead to the nullification of the
KEB sale to Lone Star and the arrest of regulators, policymakers
and former KEB executives.


SSANGYONG MOTOR: Top Shareholder Allots KRW400-Bil for Firm
-----------------------------------------------------------
Ssangyong Motor Co. will get KRW400 billion from its top
shareholder, Shanghai Automotive Industry Corp, for the
development of new cars, Joong Ang Daily reports.

Shanghai Automotive vice-chief executive officer, Jiang Zhiwei
said in a press conference that the investment is part of plans
to boost profits at Shanghai Automotive.  The KRW400-billion
investment is KRW30 billion more than the amount Shanghai
Automotive spared for Ssangyong in 2005.

"We plan to save new car development fees for Ssangyong Motor by
cooperating with research centers in China and Europe," Mr.
Jiang said.

Regarding plans to cut costs, Mr. Jiang stated that Shanghai
Automotive is considering offering early retirement packages to
a number of Ssang-yong employees.

Mr. Jiang, according to Joong Ang Daily, dismissed rumors that
the Chinese firm was planning to sell Ssangyong, which is
Korea's No. 4 carmaker.

                     About Ssangyong Motor

Headquartered in Kyonggi, South Korea, Ssangyong Motor Company
Ltd. -- http://www.smotor.com/-- manufactures and assembles
motor vehicle bodies on purchased basis such as jeep style cars
under the brand names of 'Korando' and 'Musso', minibuses under
the brand name of 'Istana', special purpose cars including
cement mixers, trailers, fire-trucks as well as auto parts.  The
Company implemented a five-year debt workout program in 1999
after Ssangyong was separated from Daewoo Group which was
dissolved under huge debt.

Shanghai Automotive Industry Corp. took over Ssangyong in 2005,
triggering fallen sales and labor unrest.


VK CORPORATION: Maturing Loans May Lead to Bankruptcy
-----------------------------------------------------
Korean phone maker VK Corp. could face insolvency due to its
maturing loans, The Korea Herald reports, citing VK's main
creditor bank, the Industrial Bank of Korea.

As of 5:15 p.m. on June 27, 2006, VK Corp. has maturing loans
worth KRW2.8 billion (US$2.9 million) from the Industrial Bank.

According to the report, if VK fails to repay the outstanding
debt before 4:30 p.m. today, June 29, 2006 -- the deadline for
bill clearance -- the Company will have to go through bankruptcy
proceedings.

Korea Herald notes that the Company was able to repay maturing
debt worth KRW3.5 billion earlier on June 27.

A VK Corp. official clarifies that the Company may be cash-
strapped, but its management is generally in good shape.

The newspaper cites a VK spokesman who refuses to be identified
as saying that while it is facing crisis, the Company has made
efforts in developing super slim phones, streamline production
lines and implement restructuring.

As part of its restructuring efforts, VK Corp. recently cut its
local workforce from 800 to around 700, as well as trimming
staff members in its Chinese operations from 2,000 to 1,000,
Korea Herald says.

The Troubled Company Reporter - Asia Pacific has learned that
the Company's illiquid position became apparent at the end of
2005, where its current liabilities reached KRW174.49 billion as
compared with KRW121.19 billion in current assets.

VK Corp.'s balance sheet accounts for the fiscal years 2005 and
2004, as shown is its Web site, reflects these figures:

                         VK Corporation
                       (in KRW millions)

                                    As of December 31
                                    2005         2004
                                    ----         ----
         Current Assets          121,186      127,798
         Total Assets            223,529      202,657
         Current Liabilities     174,492      100,621
         Long-term Liabilities    10,153       22,630
         Total Liabilities       184,645      123,251
         Retained Earnings       -48,001       16,907
         Shareholders' Equity     38,884       79,405

The Company has an operating loss of KRW5.76 billion, and a net
loss of KRW6.91 billion for the full year 2005.  It also
reported slower sales, which registered at KRW309.72 billion,
down from KRW383.87 billion in 2004.

VK Corporation -- http://www.vkmobile.com/-- specializes in
manufacturing reusable batteries including plastic lithium
polymer batteries used in mobile phones and notebook computers.
The company also produces, sells, and exports mobile handsets
using global system for mobile communication.


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

FARLIM GROUP: Unveils 24th AGM Results
--------------------------------------
Shareholders of Farlim Group (Malaysia) Berhad passed all
resolutions set out in the Notice of AGM dated June 5, 2006, at
the Company's 24th Annual General Meeting on June 27, 2006.

During the meeting, the shareholders:

   -- received and adoptd the Audited Financial Statements for
      the year ended December 31, 2005, and the Directors' and
      Auditors' Reports;

   -- approved the payment of Directors' Fees for the year ended
      December 31, 2005;

   -- re-elected as directors:

      * Dato' Haji Mohd Bin Kuppa Pitchai Rawther;
      * Encik Ahmad Kamarudin Bin Ismail;
      * Dato' Zainol Abidin Bin Dato' Haji Salleh; and
      * Lam Chin Loong;

   -- reappointed Messrs. Monteiro & Heng as auditors and to
      authorize the Board to fix their remuneration; and

   -- authorized the Board to issue shares in the Company
      provided that the aggregate number of shares issued does
      not exceed 10% of the total issued capital of the Company
      and that such approval will continue in force until the
      conclusion of the Company's Annual General Meeting.

              About Farlim Group (Malaysia) Berhad

Headquartered in Penang, Malaysia, Farlim Group (Malaysia) Bhd
-- http://www.farlim.com.my/-- is principally engaged in
property development.  Due to the poor performance of its
Chinese arm, the Company's business operations are dependent on
the Malaysian economy and general market confidence.   The Group
has registered continuous losses and has not declared any
dividend since fiscal 2000.

For the first quarter ended March 31, 2006, the Group booked a
turnover of MYR42.973 million and loss before tax ofMYR4.597
million, compared to the MYR54.455 million turnover and
MYR6.755 million pre-tax loss for the preceding year's
corresponding period.  The losses were mainly attributable to
the operational losses of the Company's foreign operations in
the People's Republic of China.


FARLIM GROUP: Members Approve Debt Settlement Proposals at EGM
--------------------------------------------------------------
Farlim Group Berhad held its Extraordinary General Meeting on
June 27, 2006.

At the meeting, members approved the proposed settlement of the
outstanding debt under the US$20-million Syndicated Revolving
Credit Facility obtained from syndicated lenders:

   * Maybank International (L) Limited, which novated the loan
     to Malayan Banking Berhad;

   * Am International (L) Limited, which novated the loan to
     AmMerchant Bank Berhad; and

   * Aseambankers Malaysia Berhad.

The settlement will be done through the issuance of redeemable
convertible secured bonds by the Company.

Members also approved the proposed settlement of the outstanding
debt under certain bilateral facilities due to bilateral
lenders:

   -- Southern Bank Berhad;
   -- EON Bank Berhad;
   -- Danaharta Managers Sdn Bhd;
   -- Malayan Banking Berhad;
   -- AmBank Berhad;
   -- AmMerchant Bank Berhad; and
   -- Aseambankers Malaysia Berhad.

The debt will be settled through the issuance of redeemable
convertible secured loan stocks by the Company or conversion of
the outstanding debt into new term loans.

Furthermore, members endorsed the proposed issuance of
irredeemable convertible unsecured loan stocks by the Company to
Syndicated Lenders and Bilateral Lenders, as well as the
issuance of up to a nominal value of MYR27,002,560 RCSB,
MYR14,255,383 RCSLS, MYR20,326,100 ICULS and the new shares in
the Company pursuant to the conversion of the RCSB, RCSLS and
ICULS.

Moreover, members passed the proposed increase of the Company's
share capital from MYR300,000,000 consisting of shares of MYR1
each to MYR500,000,000 consisting of shares of MYR1 each.

              About Farlim Group (Malaysia) Berhad

Headquartered in Penang, Malaysia, Farlim Group (Malaysia) Bhd
-- http://www.farlim.com.my/-- is principally engaged in
property development.  Due to the poor performance of its
Chinese arm, the Company's business operations are dependent on
the Malaysian economy and general market confidence.   The Group
has registered continuous losses and has not declared any
dividend since fiscal 2000.

For the first quarter ended March 31, 2006, the Group booked a
turnover of MYR42.973 million and loss before tax ofMYR4.597
million, compared to the MYR54.455 million turnover and
MYR6.755 million pre-tax loss for the preceding year's
corresponding period.  The losses were mainly attributable to
the operational losses of the Company's foreign operations in
the People's Republic of China.


INTAN UTILITIES: Units Undertake Partial Default Settlement
-----------------------------------------------------------
Intan Utilities Berhad's board of directors disclosed that its
wholly owned subsidiaries, IDS Electronics Sdn Bhd and IDS
Technology, have been negotiating with Bank Islam Malaysia
Berhad to restructure a total of MYR10,678,953 in existing loans
from short term to long term.

Since the loans were defaulted, the total repayment that IDSE
made up to May 31, 2006, amounted to approximately MYR3.57
million.  The repayments comprise fixed monthly repayment of
MYR90,000 from February 2004 to July 2005, and thereafter
MYR120,000 per month for August and September 2005.  The
repayment from October to April 2006 amounted to MYR150,000 per
month.  For the month of May 2006, the repayment increased to
MYR180,000.

                  About Intan Utilities Berhad

Headquartered in Kuala Lumpur, Malaysia, Intan Utilities Berhad
-- http://www.intan.com.my/-- engages in manufacturing,
warehousing and trading of all semiconductor components.  Its
other activities include sourcing, treating and supplying of
treated water and investment holding.  Operations are carried
out in Malaysia, the United States of America and Japan.  The
Company has defaulted on several loan facilities due to its
tight cash flow position.  It is currently formulating plans to
address the issue.

As of March 31, 2006, the Company's balance sheet showed
MYR457,961,000 in total assets and MYR267,213,000 in total
liabilities.  However, the Company's March 31 balance sheet also
showed strained liquidity with MYR151,393,000 in total current
assets available to pay MYR243,032,000 in total current
liabilities coming due within the next 12 months.


KAMDAR GROUP: Members Pass All AGM Resolutions
----------------------------------------------
At Kamdar Group Berhad's Fourth Annual General Meeting held on
June 27, 2006, members resolved to empower the Company's board
of directors to issue new shares from time to time provided that
the aggregate number of shares issued does not exceed 10% of the
Company's issued capital.

During the meeting, members also:

   -- received the Company's Audited Financial Statements for
      the financial year ended  December 31, 2005, together with
      the relevant Directors' and Auditors' Reports;

   -- approved the payment of a first and final dividend of 5%
      per ordinary share of MYR1.00 each less 28% Malaysian
      Income Tax for the financial year ended December 31, 2005;

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

  -- reappoint Messrs Shamsir Jasani Grant Thornton as
     auditors of the Company and to authorize the Directors to
     fix the auditors' remuneration; and

   -- re-elected as directors

      * Harsukhlal A/L Maganlal Kamdar;
      * Jayesh R Kamdar A/L Rajnikant;
      * Hamendra A/L B.M. Kamdar; and
      * Dato' Mohamed Nizam Bin Abdul Razak.

              About Kamdar Group (Malaysia) Berhad

Malaysia-based Kamdar Group (Malaysia) Berhad is principally
involved in retailing of textile and textile-based products.
Its other activities include letting out of properties and
investment holding.  The Group has been suffering rating
downgrades due to its declining comparable store sales, less-
than-favorable results, escalated debt level and weaker
prospects for future cashflow.  In 2005, Kamdar barely broke
even at the operating level -- before depreciation, interest and
tax -- as listing expenses and loss on the disposal of a
subsidiary swamped its operating profits.  As such, the Group
suffered a pre-tax loss of about MYR4 million.  The Group's net
gearing ratio tipped over one time following the huge losses and
a heavier debt burden of MYR142.56 million.  Overall, KGMB's
debts are about 30% higher than the expected MYR110 million.
The Group's current debt level is deemed high vis-a-vis its
relatively weak operating performance.


KRETAM HOLDINGS: Books MYR1.26-Million Net Profit in 1Q/FY2006
--------------------------------------------------------------
Kretam Holdings Berhad has filed with Bursa Malaysia Securities
Berhad its unaudited financial report for the first quarter
ended March 31, 2006.

For the quarter under review, the Group posted a net profit of
MYR1.26 million as against a net loss of MYR1.17 million in the
same quarter last fiscal year.

The Group's profit before taxation from continuing operations of
RM0.95 million for the quarter represents an improvement when
compared to the previous quarter's loss before taxation from
continuing operations of MYR0.19 million.

The Group's performance for the period under review was boosted
by firm palm oil prices and improved fresh fruit bunch
production.  However, inherently low yields from newly matured
oil palm areas in the Tawau district led to such areas making
negative contributions - these areas would only improve with
increase in their stage of maturity.

As of March 31, 2006, the Company's balance sheet revealed that
the Company has total assets of MYR161,427,000 and total
liabilities of MYR268,350,000.

There was no dividend declared or recommended in respect of the
period under review.

               Summary of Key Financial Information

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

* Revenue

     15,321        12,346          15,321         12,346

* Profit/(loss) before tax

        951          -572             951           -572

* Profit/(loss) after tax and minority interest

      1,262        -1,173           1,262         -1,173

* Net profit/(loss) for the period

      1,262        -1,173           1,262         -1,173

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

       1.10         -1.00            1.10          -1.00

* Dividend per share (sen)

       0.00          0.00            0.00           0.00

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

     1.2030                       1.1940

The Company's First Quarter Report is available for free at:

   http://bankrupt.com/misc/tcrap_kretamholdings062806.pdf

                  About Kretam Holdings Berhad

Kretam Holdings Berhad is a Malaysian company engaged in the
operation of an oil palm plantation and investment holding.
Through its subsidiaries, it is also involved in the cultivation
of oil palm; the milling and sale of oil palm products;
plantation and palm oil mill management; general contracting for
construction, civil engineering and mechanical works; the
provision of project management, administrative and related
services, and property rental, development and management.  In
addition, Kretam Holdings specializes in the provision of data
processing services; stock and share broking and futures
broking; the provision of services as a nominee and agent; the
provision and maintenance of stock market information
dissemination systems, and the operation of hydroelectric power
stations. The Company has a large number of directly or
indirectly held subsidiaries, as well as an associated company,
Pantai Dalam Development Sdn. Bhd., a 49%-owned property
developer.  The Company had incurred recurring losses in the
past.

As of March 31, 2006, the Company's balance sheet revealed that
the Company has total assets of MYR161,427,000 and total
liabilities of MYR268,350,000.


KRETAM HOLDINGS: Strikes Off Dormant Unit from Register
-------------------------------------------------------
Kretam Holdings Berhad has decided have its subsidiary company
-- Rising Resources (BVI) Limited -- struck off from the British
Virgin Island Registry on May 1, 2006, since it has become
dormant since 1999.

RR (BVI) Ltd is a wholly owned subsidiary of Rising Resources
Sdn Bhd which is in turn a 91.7%-owned subsidiary of KHB Nanyang
(Malaysia) Sdn Bhd.  KHB Nanyang (Malaysia) Sdn Bhd is a wholly
owned subsidiary of Kretam Holdings Berhad.

The striking-off of RR (BVI) Ltd will not have any material
effect on the share capital earnings and net tangible assets of
Kretam Holdings.

                  About Kretam Holdings Berhad

Kretam Holdings Berhad is a Malaysian company engaged in the
operation of an oil palm plantation and investment holding.
Through its subsidiaries, it is also involved in the cultivation
of oil palm; the milling and sale of oil palm products;
plantation and palm oil mill management; general contracting for
construction, civil engineering and mechanical works; the
provision of project management, administrative and related
services, and property rental, development and management.  In
addition, Kretam Holdings specializes in the provision of data
processing services; stock and share broking and futures
broking; the provision of services as a nominee and agent; the
provision and maintenance of stock market information
dissemination systems, and the operation of hydroelectric power
stations. The Company has a large number of directly or
indirectly held subsidiaries, as well as an associated company,
Pantai Dalam Development Sdn. Bhd., a 49%-owned property
developer.  The Company had incurred recurring losses in the
past.

As of March 31, 2006, the Company's balance sheet revealed that
the Company has total assets of MYR161,427,000 and total
liabilities of MYR268,350,000.


KRETAM HOLDINGS: Holds 18th Annual General Meeting
--------------------------------------------------
The 18th Annual General Meeting of Kretam Holdings Berhad was
held on June 27, 2006.

During the meeting, members were asked to:

   -- receive and adopt the Company's Audited Accounts for
      the year ended December 31, 2005 and the Reports of
      Directors and Auditors;

   -- re-elect as directors Y.B. Abd. Aziz Bin Haji Sheikh
      Fadzir and Lee Gokc Leang;

   -- approve Directors' Fees of MYR50,000 for the year ended
      December 31, 2005;

   -- reappoint Messrs Ernst & Young as the Company's
      auditors and to authorize the board of directors to fix
      the Auditors' remuneration;

   -- empower the Board to issue shares in the Company
      provided tat the aggregate number of shares issued does
      not exceed 10% of the issued and paid up capital of the
      Company; and

   -- authorize the Company and its subsidiaries to enter
      into recurrent transactions of a revenue or trading nature
      with related parties which are necessary for the day to
      day operations and not more favorable to the related
      parties than those generally available to the public and
      are not to the detriment of the minority shareholders.

                  About Kretam Holdings Berhad

Kretam Holdings Berhad is a Malaysian company engaged in the
operation of an oil palm plantation and investment holding.
Through its subsidiaries, it is also involved in the cultivation
of oil palm; the milling and sale of oil palm products;
plantation and palm oil mill management; general contracting for
construction, civil engineering and mechanical works; the
provision of project management, administrative and related
services, and property rental, development and management.  In
addition, Kretam Holdings specializes in the provision of data
processing services; stock and share broking and futures
broking; the provision of services as a nominee and agent; the
provision and maintenance of stock market information
dissemination systems, and the operation of hydroelectric power
stations. The Company has a large number of directly or
indirectly held subsidiaries, as well as an associated company,
Pantai Dalam Development Sdn. Bhd., a 49%-owned property
developer.  The Company had incurred recurring losses in the
past.

As of March 31, 2006, the Company's balance sheet revealed that
the Company has total assets of MYR161,427,000 and total
liabilities of MYR268,350,000.


KUMPULAN BELTON: Passes All Ordinary AGM Resolutions
----------------------------------------------------
Kumpulan Belton Berhad held its Annual General Meeting on
June 24, 2006.

All ordinary resolutions stated in the Notice of General
Meeting, which appeared in the Annual Report 2005, were adopted
at the meeting.

                  About Kumpulan Belton Berhad

Headquartered in Perak Darul Ridzuan, Malaysia, Kumpulan Belton
Berhad -- http://www.beltongroup.com/-- manufactures and sells
automotive suspension parts and components.  Other activities
include property development and investment, provision of
machining and heat treatment services and investment holding.
Operations of the Group are carried out in Malaysia and
Australia.  The Company and some of its subsidiaries are
involved in litigations and winding-up petitions.  These legal
actions arose from the Company's inability to meet its payment
obligations.

Kumpulan Belton was identified as an affected listed issuer of
Practice Note 17, as its consolidated shareholders' equity as of
December 31, 2005, was less than 25% of its issued an paid up
capital.

As an affected issuer, the Company is required to submit a
Regularization Plan to the relevant authorities for approval and
implement the Regularization Plan within the timeframe
stipulated by the relevant authorities.


MALAYSIA AIRLINES: To Pay for Redundancy Package Via Gov't Funds
----------------------------------------------------------------
The Government will grant Malaysia Airlines MYR850 million, or
US$231 million, as compensation for giving up the bulk of its
domestic routes, Bloomberg reports.

According to Bloomberg, the carrier said it will utilize MYR650
million of the Government funds to pay for redundancy packages
as it turns over its local routes to low-cost rival AirAsia
Berhad.

Malaysia Airlines will also use the savings gained from the
termination of the agreement with Penerbangan Malaysia Bhd on
its domestic business to fund its retrenchment offer for
employees in addition to the Government funds, The Star Online
says.

As reported by the Troubled Company Reporter - Asia Pacific,
around 4,200 of the airline's 22,835-strong workforce have
applied for the Mutual Separation Scheme, which is part of the
Company's three-year turnaround plan.  The carrier targets to
complete the job cuts by July 31, 2006.

According to Bloomberg, Malaysia Airlines aims to save MYR200
million a year from the job cuts and MYR300 million from the
reconfiguring of routes.

Meanwhile, around MYR200 million of the compensation will be set
aside for any write-off of assets, Bloomberg relates.

The carrier is implementing a series of non-core assets
disposals to boost cashflow, TCR-AP recounts.  CB Richard Ellis
was chosen to assist Malaysia Airlines in a major restructure of
the carrier's property portfolio.

Malaysia Airline's managing director Idris Jala told Bloomberg
that the carrier aims to narrow its losses to MYR620 million
this year, post a net income of MYR50 million by 2007 and a
record MYR500 million profit in 2008.

"The company will meet its 2006 goal helped by about MYR1
billion of proceeds from asset sales, cost-cuts and increased
sales," Mr. Jala added.

                    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.


MALAYSIA AIRLINES: Refunds Fares of 5,000 Passengers
----------------------------------------------------
Malaysia Airlines has reimbursed the fares of 5,000 passengers
who were scheduled to fly to routes that the carrier will hand
over to AirAsia on August 1, 2006, The Star Online reveals.

According to the Star, the carrier had to give up 20,000 ticket
bookings made before the Government launched the rationalization
program for domestic air travel.

As reported by the Troubled Company Reporter - Asia Pacific,
AirAsia will operate 99 non-trunk routes, and together with
Malaysia Airlines, will service 19 trunk routes.

In line with the route rationalization, Malaysia Airlines would
also be removing all its discounted fares, The Star says.  As a
result, the carrier might lose some of the 1.8 million
passengers yearly who traveled under such packages.

Bernama reports that Malaysia Airlines passengers will no longer
enjoy subsidized domestic fares for its 19 trunk routes from
Aug. 1 when the rationalization of the domestic aviation sector
comes into force.  The carrier currently offers various
subsidized fares for senior citizens, students, children under
12 years old and the media.

                    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.


PAN MALAYSIAN: Secures MYR5-Mln Unsecured Loan from Metrojaya
-------------------------------------------------------------
On June 26, 2006, Pan Malaysian Industries Berhad accepted an
unsecured loan worth MYR5 million from Metrojaya Berhad.

The Loan is granted for a period of one year from June 27, 2006,
as the date of draw down, at an annual interest rate of 6%.

Pan Malaysian will utilize the loan to finance its working
capital requirements.

After consideration of all aspects of the Loan, the Company's
board of directors decided that the Loan is fair and reasonable
and is in the interest of the Company.

                  About Pan Malaysia Industries

Headquartered in Kuala Lumpur, Malaysia, Pan Malaysian
Industries Berhad is involved in the operation of departmental
and specialty stores and hypermarket.  Its other activities
include investment and property holding.  The Group's operation
is predominantly in Malaysia, Hong Kong and Singapore.  The
Company has been suffering recurring losses since 1999.  Its
March 31, 2006, balance sheet showed strained liquidity with
MYR141,733,000 in total current assets available to pay
MYR319,327,000 in total current liabilities coming due within
the next 12 months.  The Company has net current liabilities of
MYR177,594,000.


PSC INDUSTRIES: Asia Coin Ceases as Subsidiary
----------------------------------------------
On April 17, 2006, PSC Industries Berhad's wholly owned
subsidiary -- Asia Coin Sdn Bhd -- allotted 998 new ordinary
shares of MYR1 each to PSC-Naval Dockyard Sdn Bhd.  As a result
of this allotment, the percentage of the shareholding interest
of PSC Industries on Asia Coin has been diluted from 100% to
0.2% and thus ceased to be a subsidiary of the Company.

After the allotment, the total issued and paid-up capital of
Asia Coin amounted to MYR1,000 divided into 1,000 ordinary
shares of MYR1 each.

PSC Industries explained that the transaction will not have any
material effect on the assets and earnings of the PSC Industries
group for the financial year ending December 31, 2006.

                    About PSC Industries Berhad

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

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


SARAWAK ENTERPRISE: Begins Shares Sale Agreement Talks
------------------------------------------------------
Sarawak Enterprise Corporation Berhad disclosed that the legal
due diligence work and assets valuation exercises in connection
with a proposed asset disposal are still in progress.  The
Company added it has commenced preliminary talks with KKB
Engineering Berhad on the terms of a share sale agreement.

Sarawak Enterprise Corporation had on February 20, 2006, entered
into a memorandum of understanding with KKB Engineering to
negotiate with the proposed disposal of the entire issued and
paid-up capital of Sarawak Enterprise's wholly owned subsidiary
-- Sarwaja Timur Sdn Bhd.

The MOU is valid for six months from the date it was signed,
unless terminated pursuant to the provisions of the MOU or upon
the entry by the parties into a share sale agreement for the
Proposed Disposal.  During the period, the parties will
negotiate on the terms of the share sale agreement.

           About Sarawak Enterprise Corporation Berhad

Sarawak Enterprise Corporation Berhad is a Malaysia-based
investment holding company. Through its subsidiaries, the
Company is mainly involved in the generation, transmission,
distribution and sale of electricity; property holding and
development, construction and realty; manufacture, fabrication,
galvanizing and sale of steel structures; manufacturing of
transformers and switch gears and contracting electrical works;
provision of management services, operation and maintenance of
power stations and contracting; mechanical, electrical and
electronic engineering and contracting, and power generation.
The Company's associates include Sarawak Electricity Supply
Corporation, Dectra Sdn. Bhd., Encorp Berhad, Gobel Industry
Sdn. Bhd., Integrated Circuit Design Services Sdn. Bhd.,
Universal Cable (Sarawak) Sdn. Bhd., Sejingkat Power Corporation
Sdn. Bhd., Sarwaja Timur Sdn. Bhd. and Sarawak Gas Distribution
Sdn. Bhd.

In April 2005, the Company obtained approval from the Securities
Commission and other relevant authorities on its proposed
restructuring and retionalization exercise.  In the proposed
restructuring scheme, the Company would acquire 51.6 % stake in
its subsidiary Sarawak Electricity Supply Corporation, for
MYR1.03 million, from the State Financial Secretary of Sarawak.
With 45 % of the unit already belonging to SECB, it would now
own 96.6% of SESCo, once the sale is completed.  The Company
would engage in a mandatory general offer to acquire the
remaining 3.4% stake in the unit upon its privatization.  The
Group would then dispose of some of its non-core assets to the
State Financial Secretary of Sarawak.  This is in accordance
with the Malaysian government's efforts to restructure
government-linked corporations for the growth of the country's
corporate sector.


SETEGAP BERHAD: To Hold 22nd AGM on June 30
-------------------------------------------
Setegap Berhad's 22nd Annual General Meeting will be held at
Greens II, Tropicana Golf & Country Resort, Jalan Kelab
Tropicana Utama, Persiaran Tropicana, in 47410 Petaling Jaya,
Selangor Darul Ehsan, on June 30, 2006, at 11:00 a.m.

During the meeting, members will be asked to:

   -- receive the Audited Financial Statements for the year
      ended December 31, 2005, and the Reports of the Directors
      and Auditors;

   -- re-elect Haji Haron Bin Tan Sri Ibrahim and Harith Bin
      Ibrahim as directors;

   -- reappoint Roger Yue, Tan & Associates as Auditors to
      hold office until the next Annual General Meeting and to
      authorize the board of directors to fix the Auditors'
      remuneration;

   -- empower the directors of the Company and its subsidiaries
      to enter into transactions from time to time with the
      Company or its related corporations wherein Directors or
      persons connected with them may acquire from or dispose to
      the Company or its related corporations products, services
      or any other non-cash assets of the Company or its related
      corporations provided that the acquisitions or disposals
      are in the normal course of business of both the Company
      and its related corporations; and

   -- t transact any other business of which due notice which
      have been given.

                      About Setegap Berhad

Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's
principal activities consist of the construction and maintenance
of roads, railways and building, including services rendered on
quarrying.  The Company's other activities include manufacturing
and selling offroad construction equipment, asphalt plants,
mixing plants, asphalt emulsions and premix.  The Group also
provides mechanical and electrical services, leases machinery
and investment holding.  Setegap's cash flow and profitability
were adversely affected by the Asian financial crisis in
1997/98.  In August 1999, Setegap had sought the assistance of
the Corporate Debt Restructuring Committee on the restructuring
of its MYR95.29-million debt.

The Company had, in October 2000, entered into a debt
restructuring agreement with its creditors.  But because of the
Company's unsuccessful attempts to raise funds to regularize its
debt problems, the October 2000 debt restructuring agreement was
technically in default in 2003.

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

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


TAKASO RESOURCES: Net Loss Swells to MYR1.7 Mln in Third Quarter
----------------------------------------------------------------
Takaso Resources Berhad on June 27, 2006, submitted for public
release its unaudited financial report for the third quarter
ended April 30, 2006.

The Group's revenue for the quarter ended April 30, 2006,
amounted to MYR6.8 million, which is lower than the
corresponding period in the previous year by 11.5% and loss
after tax increased to MYR1.7 million from MYR416,000 in the
same quarter of the previous financial year.  The decrease in
revenue for the current quarter was mainly due to the decrease
in sales by an overseas subsidiary company.

The Group reported a net loss of MYR1.8 million for the nine
months ended April 30, 2006, against MYR0.9 million in the
previous comparable period.  Revenue for the nine-month period
had been reduced slightly by approximately MYR0.8 million from
MYR22.3 million to MYR21.5 million.

The Group's loss before tax for the quarter under review
amounted to MYR1.7 million which is significantly higher than
that of the preceding quarter by approximately MYR1.6 million.
This is a result of the erosion in the Group's products profit
margin following the appreciation of Malaysian Ringgit against
the foreign currencies.

The Company's April 30, 2006, balance sheet showed current
assets of MYR35,633,000 available to pay liabilities of
MYR26,016,000 due within the next 12 months.

There was no dividend being declared for the quarter under
review.

               Summary of Key Financial Information

        Individual Period              Cumulative Period
    Current Year  Preceding Year  Current Year   Preceding Year
    Quarter       Corresponding   to Date        Corresponding
                  Quarter                        Period
    30-04-2006    30-04-2005      30-04-2006     30-04-2005
    MYR'000       MYR'000         MYR'000        MYR'000

* Revenue

      6,789         7,672          21,517         22,281

* Profit/(loss) before tax

     -1,703          -416          -1,847           -764

* Profit/(loss) after tax and minority interest

     -1,703          -416          -1,847           -764

* Net profit/(loss) for the period

     -1,703          -416          -1,847           -926

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

      -4.13         -1.01           -4.48          -2.25

* Dividend per share (sen)

       0.00          0.00            0.00           0.00

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

     0.8700                        0.9100

The Company's First Quarter Report is available for free at:

   http://bankrupt.com/misc/tcrap_takasoresources062806.pdf

                  About Takaso Resources Berhad

Headquartered in Johor, Malaysia, Takaso Resources Bhd
manufactures condoms and baby products. Its other activities
include trading and retailing in rubber products, baby apparels,
infant milk formula and toiletries, manufacturing and repairing
of moulds and investment holding. Operations of the Group are
carried out in Malaysia, other Asian countries, Oceania, Europe
countries, African countries and America.  The Company has been
incurring losses in the past due to cutthroat competition in the
industry.  However, the Company is expected to start making
profits this year since it has already focused on developing its
own house brands.


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

GOTESCO LAND: Cannot Explain Decrease in Share Price
----------------------------------------------------
In a letter to the Philippine Stock Exchange, Gotesco Land Inc.
noted that it is unaware of any material information that may
have affected the value of trading of its shares, which had
decreased from PHP0.0850 per share to PHP0.0525 per share on
June 28, 2006.

Gotesco Land is the holding company of the Ever-Gotesco
Group of Companies for its property development projects.
Originally registered with the Securities and Exchange
Commission on August 28, 1935, as Surigao Consolidated Mining
Co. Inc., the Company engaged in the exploration and mining of
gold, silver, copper and iron ores in Surigao del Norte and
Zamboanga del Sur.

In 1992, SEC approved the Company's new name, Suricon Resources
Corporation, which was diversified into non-mining activities
and amended its primary purpose to include property development
with focus on leisure and resort development.  The Ever-Gotesco
group converted SRC into a holding firm for its property
projects to focus on the new property venture, and renamed it
Gotesco Land, Inc., in May 1996.

Since 1997, the Company's operation has been severely affected
by the slump in the local real estate industry as a result of
the Asian financial crisis.  The Company is experiencing cash
flow problems in meeting its obligations.

In 1997, Gotesco Land underwent a corporate restructuring that
led to its acquisition of ownership interest in projects
principally involved in leisure and tourist estate developments
and assets owned by Jose C. Go, Gotesco Properties, Inc. and
Golden Bay Resort, Inc., through certain share-for-swap
arrangements.

Gotesco Land is currently engaged in several legal proceedings
with former employees, the Bureau of Internal Revenue, Siana
Gold Corp., and the Philippine Tourism Authority.

The Company has not declared any dividends for the last three
fiscal years.  In 2005, the Company's debt-to-equity ratio stood
at -280.83%, compared to -448.73% in 2004.

A Gotesco subsidiary -- Nasugbu Resort, Inc. -- obtained loans
from the Land Bank of the Philippines amounting to
PHP200 million.  The loan was secured by a real estate mortgage
on a parcel of land owned by Gulod Resort, Inc., a wholly owned
company of GLI.  The debt agreements contain, among others,
provisions regarding restriction on the declaration or
distribution of cash dividends and extending advances to its
affiliates and stockholders.  The Company defaulted on its loan
agreement.  Consequently, a foreclosure was effected through a
public auction wherein Land Bank of the Philippines, being the
highest bidder, bought the properties mortgaged.  The
certificate of sale provided the Company with a right to redeem
the foreclosed properties owned by Gulod Resort, Inc., within
one year until September 25, 1999.  The redemption period had
lapsed and the Company did not exercise its right to redeem the
foreclosed properties.  Due to non-redemption of the foreclosed
properties, there is a contingent loss of about PHP73 million,
which is the excess of the carrying value of the property over
the public auction bid price.  Should Gotesco Land redeem the
properties, it will have to pay such bid price plus interests
and penalties, subject to negotiation with LBP.

GRI filed a civil case against LBP for the annulment of the
foreclosure sale on grounds of deficiencies in the foreclosure
proceedings.  Accordingly, the Company had not recorded the
foreclosure sale in its books.


* Philippine Government Spends PHP360 Billion to Service Debts
--------------------------------------------------------------
The Philippine Government spent PHP360.56 billion in the first
five months of 2006 in order to repay its foreign and local
debts, as shown in a report by the Bureau of Treasury, Manila
Standard Today says.

The Manila Bulletin relates that the Government's debt service
payments increased by 45% from last year's PHP248.67 billion
despite a drop in the overall share of interest payments, as
interest rates for the five months remained low.

The Government spent PHP44.24 billion on interest payments and
PHP92.69 billion to repay its domestic debts.  PHP26.3 billion
went to principal payments, whereas payments for principal
domestic debt amounted to PHP90.77 billion.

The Government's debt service costs peaked at PHP122.047 billion
in February this year and BT data showed that the May debt
service expenditure was actually the lowest so far this year,
according to the Philippine Star.

The Bulletin reports that the highest payment made, at
PHP22.05 billion, occurred in February, while the lowest payment
made occurred in May, at PHP34.32 billion.

Principal payments are expected to reach PHP381.67 billion this
year from PHP379.4 billion in 2005, while interest payments are
slated to rise 3.4% to PHP339.99 billion from PHP299.81 billion
last year, the Standard adds.

The Star says that, according to National Treasurer Omar Cruz,
they aim to lower the proportion of the Government's debt to the
gross domestic product to 56% by 2008.


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

ASIA PACIFIC LOGISTICS: Prepares to Pay Dividend to Creditors
-------------------------------------------------------------
Asia Pacific Logistics Services Pte Limited intends to
distribute dividend to creditors.

To share in the dividend dirtibution, creditors are required to
prove their claims by July 26, 2006, at the liquidators' place
of business.

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


ASIAVEST PARTNERS: Creditors' Proofs of Debt Due on July 23
-----------------------------------------------------------
Creditors of Asiavest Partners, TCW/YFY Private Ltd are required
to prove their debt by July 23, 2006, for them to share in the
Company's dividend distribution

Contact: Lim Say Wan
         Liquidator
         c/o 6 Shenton Way #32-00
         DBS Building Tower Two
         Singapore 068809


DAKA DESIGNS: Welcomes New Secretary and Financial Controller
-------------------------------------------------------------
Daka Designs Limited on June 26, 2006, named Lee Kee Sing as
joint company secretary in place of Kevin Leung Kwok Wah.

Mr. Lee was also appointed as financial controller to oversee
the finance, accounting and Company secretarial functions of the
Group and ensure compliance with statutory requirements.

He is also responsible for financial and management reporting,
tax, cash management, inventory management, internal and credit
control, company secretarial issues, as well as general
accounting and finance matters.  He will be taking charge of
group re-organization designed to improve the existing systems,
workflows and controls of the Group.

Mr. Lee will report directly to the Chief Executive Officer and
manage a team of accounting staff

                    About Daka Designs Limited

Daka Designs Limited is principally involved in designing,
developing and marketing of innovative products for the consumer
market.  The Group operates in Hong Kong, the United States of
America, Macau, and the United Kingdom.

The Singapore Stock Exchange has decided to suspended the
trading in the shares of Daka Designs after Auditor KPMG
observed certain irregularities in the operations and accounting
records of the Company.  The concerns and irregularities raised
by KPMG in its report may amount to breaches under the
Securities and Futures Act and other laws in Singapore.
Consequently, the SGX has informed the Monetary Authority of
Singapore and lodged a report with the Commercial Affairs
Department to initiate investigations into the matter.


GOLDEN STAR: Creditors Must Prove Debts by July 24
--------------------------------------------------
Liquidators Chee Yoh Chuang and Lim Lee Meng will be receiving
proofs of claim from creditors of Golden Star Nite Club Private
Limited until July 24, 2006.

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

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


SAN REMO: Creditors' Proofs of Claim Due on July 24
---------------------------------------------------
The creditors of San Remo Coffee House Pte Limited are required
to prove their debts before the Company's liquidators by
July 24, 2006.

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

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


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

G STEEL PCL: Moody's B1 Ratings for Possible Downgrade
-------------------------------------------------------
Moody's Investors Service aanounced on June 27, 2006, that it
had placed the B1 corporate family rating and senior unsecured
bond rating of G Steel Public Company Limited on review for
possible downgrade.

This rating action follows G Steel's announcement it will
purchase approximately US$180 million in convertible bonds
issued by Nakornthai Strip Mill PLC.  The bond purchase will
allow G-Steel -- upon conversion -- to acquire around 19% of
NSM's shares within 6 months.

The ratings agency further notes that G Steel may exercise its
right to increase the proportion of debt it would convert into
equity in the next 18 months if it deems such an exercise as
worthwhile.

"Moody's is concerned that this majority debt-funded transaction
could weaken G Steel's credit profile and raise refinancing
risk, given an appropriate long-term funding arrangement has yet
to be put in place," says lead analyst Angela Choi.

Ms. Choi adds, "NSM is also restructuring its debt and may issue
further calls for capital support from its shareholders,
including G Steel."

"In its review, Moody's will evaluate how the purchase of NSM's
convertible bond will be funded and the subsequent impact on G
Steel's financial profile.  Moody's will also assess G Steel's
financial policy and business strategy relative to NSM as well
as its commitment to provide on-going support for NSM's
operations," says Choi.

G Steel Public Company Ltd, headquartered in Bangkok, produces
hot rolled coils (HRC) in different grades and gauges. G Steel
is a stand-alone operating entity with no related group
companies.


G STEEL PLC: S&P Places B+ Rating on Creditwatch
------------------------------------------------
Standard & Poor's Ratings Services on June 27, 2006, placed its
ratings on Thailand's G Steel Public Co. Ltd., including the
'B+' corporate credit rating, on CreditWatch with negative
implications.

"The CreditWatch placement reflects G Steel's higher debt and
potentially weaker financial profile following its decision to
acquire convertible claims in Nakornthai Strip Mill PCL," said
Standard & Poor's credit analyst Cheow Hon Lee.

G Steel is Thailand's second-largest hot-rolled coil producer,
while Nakornthai Strip Mill is Thailand's third-largest HRC
producer.  The acquisition will amount to US$180 million, and
will be primarily funded by debt.  These claims are expected to
be converted to equity in the next 18 months, resulting in G
Steel owning a stake of up to 33% in Nakornthai Strip Mill.

The move may result in an improved competitive position for G
Steel from an increased effective production capacity following
the acquisition.

Nevertheless, Standard & Poor's believes the increased leverage
may significantly weaken G Steel's financial profile. Standard &
Poor's will assess the potential strategic benefit from this
investment along with the possible weakening in financial
profile.

The CreditWatch is expected to be resolved following the
completion of the deal over the course of the next few months,
and when more details of the deal are available.

G Steel Public Company Ltd, headquartered in Bangkok, produces
hot rolled coils (HRC) in different grades and gauges. G Steel
is a stand-alone operating entity with no related group
companies.




                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

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