TCRAP_Public/060706.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, July 6, 2006, Vol. 9, No. 133

                            Headlines

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

ALL SYSTEMS: Creditors and Members Set to Meet on July 7
AUSTFISH INTERNATIONAL: Receiver and Manager Steps Aside
B&S CONTRACTORS: Enters Liquidation Proceedings
BRACTEA HOLDINGS: Creditors Must Prove Debts by July 28
CORK CONSTRUCTION: Liquidation Petition Hearing Fixed on Aug. 24

DURAL INTERIORS: Undergoes Voluntary Liquidation
E&C BUILDERS: Creditors' Proofs of Claim Due on July 10
GOTHIC VIEW: To Declare First and Final Dividend on July 7
GRASSO FAMILY: Members Opt to Close Down Business
H.P. LAUNDER: Members Appoint Official Liquidators

HIH INSURANCE: R.G. Kelly Admits Guilt to Scam
HIGGINS PAINTING: Final General Meeting Set on July 12
HOKONUI MOTOR: Court to Hear Liquidation Petition on July 10
HUON CORPORATION: Continues Business Under Administration
INTEGRATED BUILDING: Names Jamieson Louttit as Liquidator

JACK HONAN: Schedules Members' Meeting for July 13
LITTLE HOUSE: Liquidation Petition Hearing Set on July 20
M.Y.L. HOLDING: Supreme Court Issues Wind-Up Order
MULGAI PTY: Undergoes Voluntary Liquidation
N&J KOUTSOUKOS: Set to Declare Final Dividend on July 13

NATIONAL APPAREL: Inability to Pay Debts Prompts Liquidation
OAKBURN PTY: Members Opt to Shut Down Operations
PENINSULAR BAY: Liquidator to Present Wind-Up Report
PRIMELIFE CORPORATION: Board Chairman R. de Crespigny Resigns
PRIMELIFE CORPORATION: Repurchases Camberwell for AU$400,000

PRIMELIFE CORPORATION: Retains Evelyn Ridge Vil. for AU$7.37 Mil
REALWOOD ARCHITECTURAL: Faces Liquidation Proceedings
RYNES CANDLES: Final Meeting Set on July 11
SARANT CONSTRUCTIONS: Appoints Gregory J. Parker as Liquidator
SOLWAY HOMES: Faces Liquidation Proceedings

STH LIMITED: Shareholders Decide to Liquidate Business
STEWEN PTY: Members Agree to Halt Operations
STURZAKER PTY: Creditors' Proofs of Debt Due by July 13
TE MAIRE RUAPEHU: Court to Hear Liquidation Bid on July 10
TELSTRA CORPORATION: Government Stake Sale Not Yet Finalized

ZEBRA RESOURCES: Appoints Joint and Several Liquidators


C H I N A   &   H O N G  K O N G

BALLY TOTAL: Files 2005 Annual & First Quarter 2006 Fin. Results
BALLY TOTAL: Obtains Waivers from Senior Secured Lenders
BALLY TOTAL: Discloses Inclusion in Russell 3000 Index
BALLY TOTAL: Grants Stock Options to Two New Employees
CMC MAGNETICS: Moody's Downgrades Corporate Family Rating to B1

GRIFIT LIMITED: Liquidator to Present Wind-Up Report on Aug. 2
GOLDENLIO INVESTMENTS: Members to Receive Liquidator's Report
JIANGXI COPPER: Downpour Halts Mining Operations
KORET (H.K.) LIMITED: Creditors' Proofs of Claim Due on July 30
LEBY TECHNOLOGY: Appoints Official Liquidator

LOYAL BUSINESS: Creditors Meeting Set on July 7
LUCKY ASSET: First Creditors' Meeting Set July 13
MAXIPO TECHNOLOGY: Members Agree to Voluntary Wind-Up Firm
MULTI-POINT INVESTMENT: Final Members Meeting Set August 14
P5 LIMITED: Prepares for Payment of Debts and Claims

PONTEL LIMITED: Liquidator to Present Wind-Up Report
ROBHEATH INVESTMENTS: Creditors Must File Claims by July 16
SATAKE CHINA: Members to Receive Wind-Up Report
* Asia's Telecommunication Industry to Face Increasing Risks


I N D I A

PURNA NAGARI: Loses License After Revival Efforts Failed
* Finance Dept. Says Fiscal Deficit Still Within Target


I N D O N E S I A

BANK NIAGA: Moody's May Upgrade E+ Financial Strength Rating
BANK RAKYAT: Moody's Places D- Fin'l Strength Rating On Review
PERUSAHAAN LISTRIK: Names UBS Securities to Underwrite Bond Sale


J A P A N

CHUOAOYAMA PwC: Begins Partial Suspension of Operations
JAPAN AIRLINES: Equity Offering Won't Affect Rating, S&P Says


K O R E A

AMERICAN AXLE: S&P Places BB Rating on US$200M Unsecured Loan
BOWATER INC: Secures New Five-Year Revolving Credit Facility
HYUNDAI MOTOR: Sold Slightly Lesser Cars in June
KOREA EXPRESS: Branches Out to Japan
KRISPY KREME: Files FY2005 10-K & Restates 2003-04 Financials

NCSOFT CORP: Denies Allegations of Negligence in Identity Thefts
SSANGYONG MOTOR: SAIC Plans RMB10 Billion IPO
VK CORPORATION: Motorola Invests in Firm
* Korea To See Strong Demand for CDOs, Fitch Says
* Experts See Weaker Second Quarter Results


M A L A Y S I A

BUKIT KATIL: Shareholders to Consider Estate Disposals at EGM
DENKO INDUSTRIAL: In Talks with Prokhas to Redeem RCSLS
FEDERAL FURNITURE: Shareholders Pass All AGM Resolutions
KL INFRASTRUCTURE: Posts MYR80-Mln Loss on MYR38.6-Mln Revenue
MBF CORPORATION: Leasing Arm Trims Default Amount to MYR15 Mln

POLYMATE HOLDINGS: ABI Gets Another Claims Payment Demand
PRIME UTILITIES: Receives Warning for Breaching Disclosure Rules
PRIME UTILITIES: Loss Jumps to MYR9.4 Million in Fourth Quarter
PSC INDUSTRIES: Affin ACF Assets Over MYR5-Million Claim
ROCON EQUIPMENT: Court Issues Wind-Up Order

TAP RESOURCES: Defaults on RCSLS Balance Redemption
TEXCHEM RESOURCES: Dissolves Another Dormant Unit
UNITED CHEMICAL: Members Adopt 2005 Audited Annual Accounts
WEMBLEY INDUSTRIES: Unveils 13th AGM Results


P H I L I P P I N E S

ATLAS CONSOLIDATED: Postpones ASM to Sept. 6
ATLAS CONSOLIDATED: Enters Into Equipment Deal with Marubeni
PILIPINO TELEPHONE: Plans to Raise Local Wireline Rates
STENIEL MANUFACTURING: To Meet with Creditors on Restructuring


S I N G A P O R E

HONDAI ENGINEERING: Creditors Must Prove Debts by July 14
KEAT HONG: To Hold Members' Final Meeting on July 28
LIM PIN: Members Final General Meeting Set on July 28
LKH PROJECT: Creditors' Proofs of Debt Due on July 31
REFCO INC: Chap. 11 Trustee Taps Skadden Arps as Special Counsel

REFCO INC: Securities Advisory Panel Formed, Trustee Says
* Singapore Bankruptcies Fall 19% in May


* ASPAC Telecom Companies Face Bumpy Road Ahead, S&P Says

     - - - - - - - -

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

ALL SYSTEMS: Creditors and Members Set to Meet on July 7
--------------------------------------------------------
A final meeting of the members and creditors of All Systems
Security Services Pty Limited will be held on July 7, 2006, at
11:00 a.m. for them to receive Liquidator A. H. J. Wily 's final
account showing how the Company was wound up and how its
property was disposed of.

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


AUSTFISH INTERNATIONAL: Receiver and Manager Steps Aside
--------------------------------------------------------
Derrick Craig Vickers and Geoffrey Frank Totterdell of
PricewaterhouseCoopers on June 1, 2006, ceased to act as
receiver and manager for the Austfish International PtL Ltd.

The Troubled Company Reporter - Asia Pacific recounts that Mr.
Vickers and Mr. Totterdell were appointed to receive and manage
Austfish's assets on February 15, 2006.


B&S CONTRACTORS: Enters Liquidation Proceedings
-----------------------------------------------
The liquidation of B&S Contractors Ltd commenced on June 21,
2006.

In this regard, Kenneth Oliver was appointed liquidator to
oversee the liquidation process.

Contact:  K. Oliver
          Contract Management Limited
          46A Tanner Street (P.O. Box 8253)
          Havelock North, New Zealand
          Telephone: (06) 877 7561
          Facsimile: (06) 877 7562


BRACTEA HOLDINGS: Creditors Must Prove Debts by July 28
-------------------------------------------------------
Liquidators Stephen James Higgs and Stephen Alan Dunbar require
the creditors of Bractea Holdings Ltd to submit their proofs of
debt by July 28, 2006.

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

Contact: Stephen James Higgs
         c/o Robyn Patrick
         139 Moray Place Polson Higgs
         P.O. Box 5346, Dunedin
         New Zealand
         Telephone: (03) 477 9923


CORK CONSTRUCTION: Liquidation Petition Hearing Fixed on Aug. 24
----------------------------------------------------------------
An application to liquidate Cork Construction Ltd will be heard
before the High Court of Auckland on August 24, 2006, at 10:45
a.m.  

The Commissioner of Inland Revenue filed the petition with the
Court on June 8, 2006.

Parties wishing to attend the hearing are required to file an
appearance not later than August 22, 2006.

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


DURAL INTERIORS: Undergoes Voluntary Liquidation
------------------------------------------------
On June 2, 2006, creditors and members of Dural Interiors Pty
Limited held separate meetings and decided that the Com[pany's
operations be liquidated.

Subsequently, Ozem Kassem was appointed as liquidator.

Contact: Ozem Kassem
         Liquidator
         Bentleys MRI Sydney
         Business Recovery & Insolvency Partnership
         Level 8, 50 Carrington Street
         Sydney, New South Wales
         Australia
         Telephone:(02) 8221 8477
         e-mail: okassem@sydbri.bentleys.com.au


E&C BUILDERS: Creditors' Proofs of Claim Due on July 10
-------------------------------------------------------
David Vance and Barry Jordan were appointed joint and several
liquidators of E&C Builders Ltd on June 19, 2006.

In this regard, the Liquidators require the Company's  creditors
to submit their proofs of claim by July 10, 2006, for them to
share in any distribution the Company will make.

Contact: David Vance
         c/o Louise Craig, McCallum Petterson
         Level Eight, The Todd Building
         95 Customhouse Quay (P.O. Box 3156)
         Wellington, New Zealand
         Telephone: (04) 499 7796
         Facsimile: (04) 499 7784


GOTHIC VIEW: To Declare First and Final Dividend on July 7
----------------------------------------------------------
Gothic View Pty Limited will declare its first and final
dividend on July 7, 2006 to the exclusion of creditors who were
not able to prove their claims on June 13, 2006.

Contact: Robyn Erskine
         Peter Goodin
         Joint & Several Liquidators
         Brooke Bird & Co Insolvency Practitioners
         471 Riversdale Road
         Hawthorn East Victoria 3123
         Australia
         Telephone:(03) 9882 6666
         Facsimile:(03) 9882 8855


GRASSO FAMILY: Members Opt to Close Down Business
-------------------------------------------------
After an extraordinary general meeting on June 2, 2006, the
members of Grasso Family Pty Limited decided to voluntarily wind
up the Company's operations.

Wayne Benton was subsequently appointed as liquidator at a
creditors' meeting held that same day.

Contact: Wayne Benton  
         Liquidator
         PPB Chartered Accountants
         Level 10, 90 Collins Street
         Melbourne, Victoria
         Australia


H.P. LAUNDER: Members Appoint Official Liquidators
--------------------------------------------------
Members of H.P. Launder Holdings (Australia) Pty Ltd convened on
June 1, 2006, and agreed to voluntarily wind up the Company's
operations.

Consequently, David Clement Pratt and Timothy James Cuming were
appointed as liquidators to oversee the Company's wind-up
proceedings.

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


HIH INSURANCE: R.G. Kelly Admits Guilt to Scam
----------------------------------------------
Robert Kelly, the former assistant company secretary of HIH
Insurance Limited, has told the Downing Centre Local Court in
Sydney that he would plead guilty when arraigned next month to a
charge arising from his role in the HIH Group, a press release
from the Australian Securities and Investments Commission says.

Through his lawyer, Mr. Kelly told the Court that he would plead
guilty to an offense under the Crimes Act NSW.  He said that on
May 26, 2000, with the intention of obtaining a financial
advantage for FAI Insurances Limited, he concurred in the making
of a materially false or misleading statement to Westpac Banking
Corporation officers and admitted that HIH management was not
able to produce consolidated accounts for the FAI Group for the
financial period ended June 30, 1999, when these accounts could
have been produced.

The accounts were required to comply with a covenant under a
AU$150-million Medium Term Note Programme between FAI Insurance
and certain note holders, mainly overseas financial
institutions.  Westpac was the manager of the MTN Programme.  
The MTN Programme also contained a covenant requiring the FAI
Group Shareholders Funds be not less than AU$200 million.

As of June 30, 1999, those funds were AU$80.9 million.  In
concurring in the making of the statement, Mr. Kelly assisted
FAI to avoid the risk of the note holders calling in amounts
owing under FAI Notes.  

The matter was transferred to the Supreme Court for arraignment
on August 4, 2006.  Unconditional bail was granted.

The Commonwealth Director of Public Prosecutions is prosecuting
the matter.

As reported in the Troubled Company Reporter - Asia Pacific on
May 15, 2006, HIH took over FAI Insurance for AU$300 million in
1998.  The takeover has been partly blamed for HIH's collapse in
March 2001.

                      About HIH Insurance

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

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

On March 29, 2006, meetings of the creditors of the eight
companies in the HIH Insurance Group approved the Australian
Schemes of Arrangement for those companies.  Moreover, separate
meetings of creditors of four HIH Insurance Group companies with
branches in the United Kingdom approved English Schemes for
those companies.

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


HIGGINS PAINTING: Final General Meeting Set on July 12
------------------------------------------------------
A final meeting of the members and creditors of Higgins Painting  
& Decorating Pty Limited will be held on July 12, 2006, at 10:00
a.m.

During the meeting, Liquidator Craig Crosbie will report the
activities that took place during the wind-up period as well as
the manner by which the Company's property was disposed of.

Contact: Craig Crosbie
         Liquidator
         PPB Chartered Accountants
         Level 10, 90 Collins Street
         Melbourne, Victoria 3000
         Australia


HOKONUI MOTOR: Court to Hear Liquidation Petition on July 10
------------------------------------------------------------
The High Court of Invercargill will hear the petition to
liquidate Hokonui Motor Company Ltd on July 10, 2006, at 10:00
a.m.

The Commissioner of Inland Revenue filed the petition before the
Court on May 9, 2006.

Contact: S. N. McKenzie
         Preston Russell Law, Solicitors
         92 Spey Street, Invercargill
         New Zealand
         Telephone: (03) 211 0080
         Facsimile: (03) 211 0079


HUON CORPORATION: Continues Business Under Administration
---------------------------------------------------------
Huon Corporation has gone into voluntary administration after
concerns about its financial situation, ABC News Online reports.

ABC News relates that Huon Corp's operations have failed to
perform after the company purchased three factories from Nylex
Ltd. in December 2005.

Rural Press recounts that Huon Corp. bought Empire Rubber, and
Melbourne-based firms FRN and Mills Elastomers.

Huon managing director John Schulz says that the performance
level of the three businesses requires Huon Corp. to implement a
restructuring program.

                   Legal Action Against Nylex

According to Rural Press, Huon is presently pursuing legal
action against Nylex in relation to the sale.

The Australian Associated Press says that in its legal action,
Huon claims that Nylex misrepresented earnings at the time it
purchased the factories.

                   The Administration Process

Tony Sims and Ken Sellars of SimsPartners are appointed to
administer all three car-parts manufacturers.

Mr. Sims explains that their key objective is to maintain
business at existing levels while all options for restructuring
are assessed.  He adds that the Company's priorities are:

   (a) to ensure the continuity of its existing financing
       facilities and that negotiations for new funding
       facilities are well advanced;

   (b) to obtain the support of Huon's customers.  Initial
       feedback from major customers has been positive;

   (c) to obtain the support of Huon's key suppliers to ensure
       continuity of existing operational levels.

Mr. Sims promises to work with senior management, unions and
other stakeholders to investigate future options for the
business, Rural Press states.

Mr. Sellars says that once Huon's objectives are met, the
options will include the sale of some or all of Huon's
operational business units with a view to building a pool of
funds to restructure the remaining business units and fund the
Nylex litigation.

                      Operations Continue

Rural Press cites Mr. Sims as saying that the Company's
operations will continue as usual and all employees at the three
factories should show up for work.

Empire Rubber's 370 workers have been told that all shifts will
continue, ABC Finance reports.

According to ABC News, Mr. Sims relates that making a lot of
redundancies would cost a lot of money and that money simply is
not there, so the best way of looking after the employees is to
ensure that the businesses are maintained.

Rural Press says that Antony Thow of the National Union of
Workers, representing 320 Empire Rubber workers, expects job
losses based on the company's financial position.  Mr. Thow adds
that for those who will lose their jobs, the workers will fight
to get 100 cents in the dollar of their entitlements.

According to ABC News, Doug Cameron, from the Australian
Manufacturing Workers Union, also expects job losses and notes
that they want discussions with the Company and its
administrators.

Mr. Cameron asserts that the State Government and Federal
Government should intervene to ensure that there's a round table
to try and protect as many jobs as possible and to investigate
the Company's capacity to pay workers' entitlements.

ABC News cites Mr. Sellars as saying that it is too early to say
what will happen to the Company.

                 Creditors Meeting on July 7

A creditors meeting is scheduled in Melbourne on July 7, 2006,
with the National Union of Workers planning to represent the
majority of Empire Rubber workers.

Mr. Thow will meet with representatives from each of Empire
Rubber's customers -- Ford, Holden and Toyota -- at a later
date.  He explains that they want the car companies to be
financially involved in the restructure of the Bendigo company.

It is possible the administrators might have formed a plan to
put forward at the meeting, Rural Press cites John Irving, a
partner in SimsPartners, as he spoke to the majority of Empire
Rubber workers at the change of shift on July 4, 2006.  He noted
that the whole process is about keeping creditors informed.

NUW staff will be collecting proxy support of Empire Rubber
workers so the union could represent them at the meeting.

                         *     *     *

Based in Victoria, Australia, Huon Corporation manufactures car
parts.  It has factories that supply parts including air intake
hoses, steering column covers, rubber seals, and fuel filler
shields to major car companies like Toyota, Holden, and Ford.


INTEGRATED BUILDING: Names Jamieson Louttit as Liquidator
---------------------------------------------------------
Members and creditors of Integrated Building Consultancy Pty
Limited convened on June 5, 2006, and appointed Jamieson Louttit
as liquidator to oversee the Company's wind-up activities.

Contact: Jamieson Louttit
         Liquidator
         Jamieson Louttit & Associates
         Level 15, 88 Pitt Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9231 0505
         Facsimile:(02) 9231 0303


JACK HONAN: Schedules Members' Meeting for July 13
--------------------------------------------------
A general meeting of the members of Jack Honan Pty Limited will
be held on July 13, 2006, at 10:00 a.m.

Liquidator J. A. Shaw will present final accounts of the
Company's wind-up operations at that meeting.

Contact: J. A. Shaw
         Liquidator
         Ferrier Hodgson
         Chartered Accountants
         PO Box 840, Newcastle New South Wales 2300
         Australia


LITTLE HOUSE: Liquidation Petition Hearing Set on July 20
---------------------------------------------------------
An application to liquidate The Little House Company Ltd will be
heard before the High Court of Auckland on July 20, 2006 at
10:00 a.m.  

Albany Timber Distributors Ltd filed the petition with the Court
on April 28, 2006.

Contact: G. Brown-Haysom
         Brennan and Brown Haysom, Solicitors
         73 St George Street (P.O. Box 200-025)
         Papatoetoe, Auckland
         New Zealand
         Facsimile: (09) 277 6925


M.Y.L. HOLDING: Supreme Court Issues Wind-Up Order
--------------------------------------------------
The Supreme Court of New South Wales ordered the winding up of
M.Y.L. Holding Pty Limited on June 2, 2006.

The Court also and appointed R. J. Porter as liquidator.

Contact: R. J. Porter
         Official Liquidator
         Moore Stephens Chartered Accountants
         Level 6, 460 Church Street
         Parramatta, New South Wales 2150
         Australia


MULGAI PTY: Undergoes Voluntary Liquidation
-------------------------------------------
The members of Mulgai Pty Limited convened on June 5, 2006, and
decided that the Company should wind up its operations
voluntarily and distribute the Company's assets disposal.

Stephen John Llewellyn was subsequently appointed as liquidator.

Contact: Stephen John Llewellyn
         Liquidator
         Chartered Accountant
         82 Victoria Street
         Grafton, New South Wales 2460
         Australia


N&J KOUTSOUKOS: Set to Declare Final Dividend on July 13
--------------------------------------------------------
Liquidator Oren Zohar is set to declare its second and final
dividend for creditors of N&J Koutsoukos Family Trust
On July 13, 2006.

Creditors who were not able to prove their claims on
June 28, 2006, will be excluded from sharing in the dividend
distribution.

Contact: Oren Zohar
         Liquidator  
         KordaMentha
         Level 11, 37 St Georges Terrace
         Perth, Western Australia 6000
         Australia


NATIONAL APPAREL: Inability to Pay Debts Prompts Liquidation
------------------------------------------------------------
The members of National Apparel Corporation Pty Limited convened
on May 26, 2006, and decided to wind up the Company's operations
due to its inability to pay its debts when they fall due.

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

Contact: Timothy James Clifton
         Mark Christopher Hall
         Chartered Accountants
         Level 10, 26 Flinders Street
         Adelaide, SA
         Australia


OAKBURN PTY: Members Opt to Shut Down Operations
------------------------------------------------
Members of Oakburn Pty Limited convened on June 2, 2006, and
decided to liquidate the Company.

Frank Lo Pilato was subsequently named liquidator.

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


PENINSULAR BAY: Liquidator to Present Wind-Up Report
----------------------------------------------------
The members of Peninsular Bay Pty Limited will hold its final
meeting on July 13, 2006, at 10:00 a.m. to hear accounts of the
Company's wind-up and property disposal from Liquidator K. J.
Perrin.

Contact: K. J. Perrin
         Liquidator
         Prowse, Perrin & Twomey
         20 Lydiard Street South
         Ballarat Victoria 3350
         Australia
         Telephone:(03) 5331 3711


PRIMELIFE CORPORATION: Board Chairman R. de Crespigny Resigns
-------------------------------------------------------------
Primelife Corporation informs the Australian Stock Exchange of
Robert Champion de Crespigny's resignation as Chairman of its
Board of Directors.

The decision is a result of Mr. de Crespigny's recent move to
the United Kingdom, Primelife explains.

The Age relates that with Mr. de Crespigny's resignation,
Primelife has turned over its entire board of directors from
2003 -- something the outgoing chairman is believed to have
thought imperative for the company to move forward.

Mr. de Crespigny made changes to the company's operation,
business model, and did a brilliant job of pulling together a
new board and a new management team to move the company forward,
The Age cites Primelife chief executive Jim Hazel as saying.

The recently appointed Deputy Chairman, Professor Judith Sloan,
has been appointed as Chairman of Primelife's Board.

According to Professor Sloan, Mr. De Crespigny has overseen the
complete restructuring and recapitalizing of the business,
including the implementation of a new business model, which now
focuses on delivering sustainable long-term shareholder growth.

Mr. de Crespigny and fellow investor, Ron Walker will retain
their shares, The Age notes.

                        About Primelife

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

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

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


PRIMELIFE CORPORATION: Repurchases Camberwell for AU$400,000
------------------------------------------------------------
Primelife Corporation notifies the Australian Stock Exchange
that it has agreed to repurchase the Camberwell Green
Retirement Village from an investment syndicate as part of the
Federal Court's order for the final wind-up of the managed
investment scheme relating to Camberwell Green.

Primelife relates that the parties have agreed to terminate the
agreements relating to the original sale, development, and
management of the facility for a net consideration to the
syndicate of AU$400,000.  The settlement occurred on July 4,
2006.

According to the managing director of Primelife, Jim Hazel,
Camberwell Green currently operates as a serviced apartment
facility.  He notes that in Primelife's experience, serviced
apartments have proven to be a difficult product to sell.

Now that the contractual uncertainty relating to the facility is
resolved, Primelife will consider a series of options to improve
the performance of Camberwell Green, including its possible
conversion to an aged care facility, Mr. Hazel says.

Mr. Hazel states that with the settlement of Camberwell Green,
this leaves schemes relating to only six of the 23 facilities or
developments to go through the wind-up process.  He anticipated
that all the remaining schemes will be finalized within 2006.

On June 23, 2006, the Troubled Company Reporter - Asia Pacific
reported that the Court entered final orders on the completion
of the winding up of an unregistered managed investment scheme
relating to Primelife Corporation Limited and Camberwell Green
Retirement Village, after proceedings brought by the Australian
Securities and Investments Commission.

                        About Primelife

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

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

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


PRIMELIFE CORPORATION: Retains Evelyn Ridge Vil. for AU$7.37 Mil
----------------------------------------------------------------
In a statement to the Australian Stock Exchange, Primelife
Corporation reveals that it will retain the new Evelyn Ridge
Retirement Village due to the Federal Court's order for the
final winding up of the managed investment scheme relating to
Evelyn Ridge.

As reported in the Troubled Company Reporter - Asia Pacific on
June 30, 2006, the Court has finalized the winding up of an
unregistered managed investment scheme relating to Primelife
Corporation Limited and the proposed Cresthaven Village in Mt.
Evelyn, Victoria.

In its statement, Primelife has agreed with the manager of the
investment syndicate to terminate the agreements relating to the
original sale, development, and management of the facility for a
consideration to the syndicate of AU$7.368 million.

The settlement occurred on July 3, 2006.

Jim Hazel, managing director of Primelife relates that Evelyn
Ridge is a new 120 villa six-stage development at Mt. Evelyn in
the Yarra Ranges in Victoria.  Construction of stage 1 was
recently completed and as of June 28, 2006, 70% of these villas
have been sold.  Mr. Hazel adds that there is a strong interest
in stage 2 and its construction will commence within this month.

"This means that schemes relating to seven of the 23 facilities
or developments have now been wound up on terms acceptable to
Primelife, with further schemes relating to 10 facilities
currently subject to winding up orders.  It is anticipated that
all the remaining schemes will be finalized in this calendar
year," Mr. Hazel says.

                        About Primelife

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

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

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


REALWOOD ARCHITECTURAL: Faces Liquidation Proceedings
-----------------------------------------------------
The members of Realwood Architectural Panels (Vic) Pty Limited
met on June 2, 2006, and agreed to:

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

  -- appoint Richard John Cauchi and Peter Gountzos as    
     liquidators to manage the wind-up activities.

Contact: Richard John Cauchi
         Peter Gountzos
         Joint and Several Liquidators
         CJL Partners
         Level 3, 180 Flinders Lane
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9639 4779
         Facsimile:(03) 9639 4773


RYNES CANDLES: Final Meeting Set on July 11
-------------------------------------------
A final meeting of the members and creditors of Rynes Candles
Pty Limited will be held on July 11, 2006, at 11:00 a.m.

Liquidator S. Nicols will give final accounts of the Company's
wind-up and property disposal exercises.

Contact: S. Nicols
         Liquidator
         Nicols + Brien
         Level 5, 221-229 Crown Street
         Wollongong, New South Wales 2500
         Australia
         Telephone:(02) 4226 6025
         E-mail: www.bankrupt.com.au


SARANT CONSTRUCTIONS: Appoints Gregory J. Parker as Liquidator
--------------------------------------------------------------
Members of Sarant Constructions Pty Limited on June 5, 2006,
decided to voluntarily wind up the Company's operations.

Gregory J. Parker was subsequently appointed as liquidator at a
creditors' meeting held that same day.

Contact: Gregory J. Parker
         Liquidator
         Parker Insolvency
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia


SOLWAY HOMES: Faces Liquidation Proceedings
-------------------------------------------
An application to liquidate Solway Homes Ltd will be heard
before the High Court of Auckland on August 17, 2006, at 10:45
a.m.  

AML Ltd filed the petition with the Court on May 31, 2006.

Parties wishing to attend the hearing are required to file an
appearance not later than August 15, 2006.

Contact: S. N. McKenzie
         Preston Russell Law, Solicitors
         92 Spey Street, Invercargill
         New Zealand
         Telephone: (03) 211 0080
         Facsimile: (03) 211 0079


STH LIMITED: Shareholders Decide to Liquidate Business
------------------------------------------------------
Shareholders of STH Ltd -- formerly known as Solid Timber Homes
Ltd -- on June 9, 2006, resolved to voluntarily liquidate the
Company and appoint Brent John Whatnall as liquidator.

Contact: Brent John Whatnall
         Horwath Porter Wigglesworth Limited
         P.O. Box 544, Auckland
         New Zealand
         Telephone: (09) 308 1603


STEWEN PTY: Members Agree to Halt Operations
--------------------------------------------
On June 1, 2006, the members of Stewen Pty Ltd passed a special
resolution to wind up the Company's operations.

Mark Pearce was consequently appointed as liquidator.

Contact: Mark Pearce
         Liquidator
         c/o Pearce & Heers Insolvency Accountants
         Level 8, 410 Queen Street
         Brisbane Qld 4000
         Australia


STURZAKER PTY: Creditors' Proofs of Debt Due by July 13
-------------------------------------------------------
Sturzaker Pty Limited will declare its first and final dividend
on July 14, 2006.

Creditors are advised to prove their claims by July 13, 2006, to
share in any distribution the Company will make.

Contact: E. M. Senatore
         S. Brennan
         Joint & Several Liquidators
         Senatore Brennan Rashid
         Level 7, 28 University Avenue
         Canberra ACT 2601
         Australia
         Telephone:(02) 6214 6700
         Facsimile:(02) 6214 6799


TE MAIRE RUAPEHU: Court to Hear Liquidation Bid on July 10
----------------------------------------------------------
The High Court of Rotorua will hear a petition to liquidate Te
Maire Ruapehu Ltd on July 10, 2006, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition before the
Court on May 8, 2006.

Contact: G. N Jansen
         Inland Revenue Department
         1 Bryce Street, Hamilton
         New Zealand
         Telephone: (07) 959 0408


TELSTRA CORPORATION: Government Stake Sale Not Yet Finalized
------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
April 17, 2006, Finance Minister Nick Minchin was expected to
put a final proposal on the sale of the Government's remaining
stake in Telstra Corporation in May 2006.

In an update, Today Online relates that Mr. Minchin told the
Australian Financial Review that if the sale did not proceed
this year, then it could even be ruled out in early 2007 because
it would coincide with a general election.

The Age says that Federal Treasurer Peter Costello, on the other
hand, is sounding more upbeat about the Company's fundamentals
over the longer term, despite the confrontational style of the
present management.  But he and Mr. Minchin have left open the
prospect of parking the Government's stake in the Future Fund,
or pushing ahead with an institutional float, The Age notes.

According to The New Zealand Herald, Prime Minister John Howard
said that the Government is still committed to the full sale of
its 51.8% stake in Telstra.

The Government has a responsibility to taxpayers to make sure it
got a good price for the sale of the shares, The Advertiser
cites Mr. Howard, as saying.

The Government initially estimated it could fetch as much as
AU$5.25 per share for the telco, The Advertiser relates.

The Age states that Mr. Howard did not say when the Government
will move to sell its majority stake.

Agence France Presse says that if the sale goes ahead, it would
be the third tranche of Telstra shares sold by the Government.  
The first two, known as T1 and T2, were carried out in 1997 and
1999.  AFP recounts that the T2 shares were offered at 7.40
dollars each.

                        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.


ZEBRA RESOURCES: Appoints Joint and Several Liquidators
-------------------------------------------------------
Richard Brian Burge and Brian Joseph Walshe were on June 19,
2006, appointed as joint and several liquidators to oversee the
liquidation of Zebra Resources Ltd.  

In this regard, Mr. Burge and Mr. Walshe will receive proofs of
claim from the Company's creditors until July 14, 2006, for the
creditors to share in any distribution the Company will make.

Contact: Richard Burge
         P.O. Box 30-568
         Lower Hutt, New Zealand
         Telephone: (04) 569 9069


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

BALLY TOTAL: Files 2005 Annual & First Quarter 2006 Fin. Results
----------------------------------------------------------------
Bally Total Fitness Holding Corporation reported financial
results for the fourth quarter and year ended December 31, 2005,
as well as for the first quarter ended March 31, 2006.  The
company also filed its 2005 Annual Report on Form 10-K and its
Quarterly Report on Form 10-Q for the first quarter 2006 with
the United States Securities and Exchange Commission ahead of
the July 10, 2006, deadline agreed to by the company's
bondholders and lenders.

Bally Total Fitness Holding Corp.'s turnaround plan drives
improvement revenue per member while reducing operating costs.  
The highlights of results for the year ended Dec. 31, 2005:

   -- posts record revenue of US$1.071 billion, up 2.2% over
      prior year;

   -- operating income of US$75.7 million, almost double
      compared to 2004 amount;

   -- EBITDA Before Non-Cash Impairment Charges of
      US$149.6 million, increases 21.4% over 2004;

   -- net loss of US$9.6 million, improves almost 70% from
      US$30.3 million net loss in 2004;

   -- new joining members increase 3.3% to 1.2 million in 2005,
      tops record of 2004; and

   -- average monthly revenue per member grows 2.8% to US$19.56.

The highlights for Fourth Quarter 2005:

   -- revenue of US$258.3 million, even with prior year; and

   -- operating income of US$9.2 million, up significantly over
      US$1.8 million in Fourth Quarter 2004;

The highlights for First Quarter 2006 (excludes crunch fitness
from operating results):

    -- revenue increases 1% to US$255.2 million, compared to
       First Quarter 2005;

    -- operating income of US$18.3 million, down US$4.8 million
       from First Quarter 2005 on higher general and
       administrative and advertising expenses;

    -- gain on disposition of crunch fitness of US$38.4 million
       drives net income of US$32.7 Million;

    -- new joining members decrease 2.2% from First Quarter
       2005; and

    -- average monthly revenue per member grows 1.8% to
       US$19.34.

Paul Toback, Chairman and Chief Executive Officer, said, "Our
new business model drives growth through stable membership
sales, improved retention, higher average monthly revenue per
member and lower costs. The results released today reflect the
progress we are making in successfully implementing our
turnaround.  Our 'Build Your Own Membership' or BYOM plan
continues to receive a favorable response from new members, and
has allowed us to eliminate, in just about all markets, the
considerably discounted renewal dues historically sold by the
Company.  This will be an important driver of revenue per member
when these members leave their initial term."

Mr. Toback continued, "We are also seeing that members joining
under BYOM stay longer, as short term attrition has already
improved by over 25% from 23% at the beginning of 2005 to 16.9%
today.  This combination of improved retention and built in
price increases will drive future average yield per member. When
combined with the lower costs, higher efficiencies and better
club service experience for our members under our New Club
Model, I am excited about the potential for Bally Total Fitness
over the next few years."

               Full Year 2005 Financial Results

Net revenues for the year ended December 31, 2005 increased to a
record US$1,071.0 million, up 2.2%, from US$1,048.0 million in
2004.  Membership services revenue increased by US$27.9 million,
driven by a 2.8% increase in average monthly revenue recognized
per member to US$19.56 in 2005, and a US$9.2 million, or 7.3%,
growth in personal training revenue. Revenue from retail
products declined US$2.7 million, or 5.0%, for the year, as a
result of the planned conversion of 45 lower performing full-
size in-club retail stores to a more cost-effective, efficient
model integrated into front-desk operations. Miscellaneous
revenue decreased 11.9%, or US$2.2 million, primarily due to
lower sponsorship revenue and franchise fees. Cash collections
of membership services revenue, exclusive of personal training,
in 2005 were $834.0 million, an increase of US$7.9 million, or
1%, compared to 2004. This increase is the result of higher
receipts from paid-in-full membership fees, advance payments of
dues and membership fees, and monthly payments from month-to-
month memberships, partially offset by a decrease in payments
from financed members and renewal term monthly dues.

Operating income for the year increased 98.0% to US$75.7 million
from US$38.2 million in 2004, driven by US$23.0 million in
revenue growth and a US$14.4 million, or 1.4%, reduction in
operating costs and expenses. Cost reductions were driven by a:

    --  US$5.8 million decrease in membership services
        expenses, reflecting the initial impact of the Bally
        Total's New Club operating model and other expense
        management initiatives, offset in part by increases in
        occupancy and insurance costs;

    --  US$2.5 million decrease in retail product expenses,
        consistent with the decrease in retail revenue;

    --  US$6.6 million decrease in advertising expense due
        primarily to a planned reduction in media spending
        and a deferral of production costs;

    --  US$3.8 million reduction in non-cash impairment
        charges; and

    --  US$7.2 million lower depreciation expense, reflecting
        fewer depreciable assets resulting from fixed asset
        impairment charges in 2004 and prior years, and lower
        capital spending.

These cost reductions were partially offset by a:

    --  US$3.0 million increase in information technology
        spending associated with implementing new business
        initiatives, improved controls and compliance and
        security enhancements;

    --  US$8.5 million increase in other general and
        administrative costs, reflecting higher levels of
        spending for professional fees relating to various
        ongoing legal matters and the audit of the company's
        financial statements, a US$4.0 million increase in
        stock-based compensation, and a US$4.6 million
        write-off of equipment discussed below.

For the year 2005, the Bally Total reported a net loss of US$9.6
million, or US$0.28 per share, versus a net loss of US$30.3
million, or US$0.92 per share, in 2004.  The lower net loss
reflects the favorable effects of the higher revenue and lower
expenses discussed previously, partially offset by an
approximate US$18.1 million increase in interest expense in
2005.

Bally Total uses EBITDA (operating income plus depreciation and
amortization) plus non cash impairment charges as a measure of
operating performance.  This performance measurement for 2005
was US$149.6 million, up 21.4%, or US$26.4 million, compared to
US$123.2 million in 2004.

New joining members in 2005 increased to a record 1.203 million,
up 3.3% over a record 2004.  The total number of members at
December 31, 2005, was 3.610 million, slightly down from the
prior year end due in part to increases in attrition prior to
implementing the BYOM program and a growing percentage of month-
to-month members, who have historically higher attrition rates
than value plan members.

On January 20, 2006, Bally Total completed the sale of Crunch
Fitness and certain other fitness centers.  The results of
operations for 2005 include the operations of these clubs, which
will be reported as discontinued operations in the company's
2006 financial statements, beginning with the first quarter
2006, discussed below.

As part of the 2005 closing process, Bally Total restated the
results of each of the first three quarters of 2005,
cumulatively increasing revenue for the nine months ended
September 30, 2005, by US$5.3 million to US$812.7 million,
increasing operating income by US$4.7 million to US$66.4
million, and increasing net income by US$4.2 million to US$6.0
million.  Further, certain errors in the application of
generally accepted accounting principles were identified that
reduced the company's accumulated deficit balance as of December
31, 2002 by approximately US$2.2 million.  The impact of the
identified errors was deemed not material to the company's
consolidated statements of operations for the years 2003 and
2004, and, accordingly, no changes were made to those previously
reported results of operations.

            Fourth Quarter 2005 Financial Results

Fourth quarter net revenue of US$258.3 million was even with the
fourth quarter in 2004.  Membership services revenue was flat
with the fourth quarter of the prior year with a modest increase
in membership revenue, US$1.3 million, offsetting a decline in
personal training revenue.  Cash collections of membership
services revenue in the fourth quarter of US$199.9 million,
exclusive of personal training, were even with the fourth
quarter last year. Operating income for the quarter of US$9.2
million increased fivefold over the fourth quarter of 2004,
reflecting a US$7.8 million reduction in operating costs and
expenses.  Lower fourth quarter non cash impairment charges in
2005, down US$3.8 million compared to the fourth quarter 2004,
were more than offset by a US$4.6 million write-off of equipment
at various clubs.

Bally Total reported a net loss of US$15.6 million, or US$0.45
per share, for the fourth quarter of 2005 versus a net loss of
US$17.0 million, or US$0.52 per share, in 2004.  The effects of
higher revenue and lower operating expenses in the fourth
quarter were partially offset by increased interest expense, up
US$6.3 million, or 35.4%, to US$24.3 million.

           First Quarter 2006 Financial Results

Operating results for the first quarter 2005 have been
reclassified to exclude Crunch Fitness, which is presented as a
discontinued operation. Net revenues for the first quarter ended
March 31, 2006, increased 1% to US$255.2 million from US$253.8
million in first quarter of 2005.  Lower retail and
miscellaneous revenues offset growth in membership revenue,
driven by a 6.3% increase in personal training revenue, or
US$1.8 million.  Cash collections of membership services
revenue, exclusive of personal training, for the first three
months of US$200.6 million declined US$6.4 million, or 3.1%,
from the same period last year.  This decrease is the result of
lower advance payments of dues and membership fees.

Operating income in the first quarter 2006 of US$18.3 million
declined by US$4.8 million, or 20.8%, from the prior year
quarter, reflecting higher expenses mostly associated with audit
fees and litigation expense.  These were included in general and
administrative expenses that increased 18.7%, or US$3.4 million.
In addition, advertising expenses were up 10.4%, or US$1.8
million, to US$18.9 million, reflecting planned spending and the
impact of deferred production costs from the fourth quarter of
2005.

Net income of US$32.7 million increased from US$4.6 million in
the first quarter 2005, reflecting the operating results, a
US$38.4 million gain on the disposition of Crunch Fitness, and
an increase of 27.4%, or US$5.0 million, in interest expense to
US$23.0 million due to higher interest rates and increased
amortization of deferred financing costs related to consent
solicitations.

                     Cash and Liquidity

At December 31, 2005, Bally Total had US$35 million of
borrowings and US$13.6 million in letters of credit outstanding
under its US$100 million revolving credit facility. At May 31,
2006, Bally had US$39.5 million of borrowings and US$14.1
million in letters of credit outstanding under the revolving
credit facility, and the balance on its term loan was US$143.3
million versus US$173.3 million at December 31, 2005, reflecting
a US$30 million mandatory repayment from the proceeds of the
sale of Crunch Fitness.  In June 2006, US$1.8 million of funds
were released from the Crunch Fitness escrow account and applied
as an additional repayment on the term loan.

                   Capital Expenditures

Capital expenditures for the year 2005 of US$37.9 million were
down approximately 24% from 2004.  First quarter 2006 capital
expenditures totaled US$11.6 million, up US$3.2 million, over
the first quarter 2005 as a result of a large, scheduled
replacement of exercise equipment.  Bally Total has focused its
capital spending primarily on maintenance and improvement of
existing clubs and limited new club growth.  New clubs were
opened in Huntington Park, California in early 2005 and in
Carrollton, Texas in April 2006.  Three clubs currently in
development are planned to open in 2006, two of which replace
existing clubs.  The Company expects to continue controlled
capital spending and is currently planning US$35 million to
US$40 million of capital spending in 2006.

               Strategic Alternatives Process

The strategic process, led by outside financial advisors J.P.
Morgan Securities Inc. and The Blackstone Group L.P. under the
direction of the Strategic Alternatives Committee of the Board
of Directors, continues to progress.

                     About Bally Total

Bally Total Fitness -- http://www.ballyfitness.com/-- is the   
largest and only U.S. commercial operator of fitness centers,
with approximately four million members and 390 facilities
located in 29 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Crunch
Fitness(SM),Gorilla Sports(SM), Pinnacle Fitness(R), Bally
Sports Clubs(R) and Sports Clubs of Canada(R) brands.

                        *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.  The CreditWatch update
followed Bally's announcement that it will not meet the March
16, 2006, deadline for filing its annual report on SEC Form 10-K
for the year ending Dec. 31, 2005.


BALLY TOTAL: Obtains Waivers from Senior Secured Lenders
--------------------------------------------------------
In exchange for a US$2,062,500 fee, Bally Total Fitness Holding
Corporation obtained an amendment and waiver from the lenders
under its US$275 million senior secured credit facility that
extends both time for delivering audited financial statements
for the fiscal year ended Dec. 31, 2005, and unaudited financial
statements for the quarters ending March 31 and June 30, 2006,
while also permitting payment of consent fees to the holders of
its 10-1/2% Senior Notes due 2011 and its 9-7/8% Senior
Subordinated Notes due 2007.

On March 27, 2006, the company commenced the necessary consent
solicitation process with respect to its Senior Notes and
Subordinated Notes.  The record date for determining holders
eligible to submit consents is March 20, 2006.  Noteholders who
have already submitted Letters of Consent pursuant to the
consent documents distributed on March 27, 2006, are not
required to take any action to receive payment of the consent
fee in the event the requisite consents are received and the fee
becomes payable in accordance with the terms and conditions set
forth in Bally's Consent Solicitation Statements.  Noteholders
who have not yet delivered consents are asked to submit the
previously distributed Letters of Consent in order to consent
and receive any consent fees that may be paid by the Company.  
The consent date is 5:00 p.m., New York City time, on April 7,
2006. As previously reported in the Troubled Company Reporter on
March 28, 2006, holders of approximately 53% of the Subordinated
Notes have entered into agreements with Bally to consent to the
requested waivers.

Bally has retained MacKenzie Partners, Inc., to serve as the
information agent and tabulation agent for the consent
solicitation.  Questions concerning the consent solicitation or
requests for documents may be directed to:

     MacKenzie Partners, Inc.
     Attention: Jeanne Carr
     Madison Square Station,
     P.O. Box 865
     New York NY 10160- 1051
     Telephone (212) 929-5500 (collect)
     Toll Free (800) 322-2885

                     About Bally Total

Bally Total Fitness -- http://www.ballyfitness.com/-- is the   
largest and only U.S. commercial operator of fitness centers,
with approximately four million members and 390 facilities
located in 29 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Crunch
Fitness(SM),Gorilla Sports(SM), Pinnacle Fitness(R), Bally
Sports Clubs(R) and Sports Clubs of Canada(R) brands.

                        *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.  The CreditWatch update
followed Bally's announcement that it will not meet the March
16, 2006, deadline for filing its annual report on SEC Form 10-K
for the year ending Dec. 31, 2005.


BALLY TOTAL: Discloses Inclusion in Russell 3000 Index
------------------------------------------------------
Bally Total Fitness Holding Corporation (NYSE: BFT) has been
selected to join the Russell 3000 Index when Russell Investment
Group reconstitutes its family of United States indexes on
June 30, 2006, according to a preliminary list of additions
posted on http://www.russell.com/

Membership in the Russell 3000 means automatic inclusion in the
large-cap Russell 1000 Index or small-cap Russell 2000 Index and
the appropriate growth and style indices.  Russell determines
membership by objective measures such as market capitalization
rankings and style attributes.

"Inclusion in the Russell 3000 highlights Bally's unique
position as the leading player in the high-growth fitness,
nutrition and wellness industry in North America," said Paul
Toback, Chairman, President and CEO of Bally Total Fitness.

Russell indexes are widely used by investment managers and
institutional investors for index funds and benchmarks for both
passive and active investment strategies.  $3.8 trillion in
assets are benchmarked to them.  Investment managers purchase
shares of member stocks according to that company's weighting in
the particular index.

Annual reconstitution of Russell indexes captures the 3,000
largest U.S. stocks as of the end of May, ranked by total market
capitalization to create the Russell 3000.  The largest 1,000
companies comprise the Russell 1000 and the remaining 2,000
companies become the widely used Russell 2000.

                         About Russell

Headquartered in Tacoma, Wash., Russell Investment Group ---
http://www.russell.com--- a global leader in multi-manager  
investment services. Provides investment products and services
in 44 countries.  Russell manages more than $167 billion in
assets and advises clients worldwide representing $2.4 trillion.  
Founded in 1936, Russell is a subsidiary of Northwestern Mutual
with additional offices in New York, Toronto, London, Paris,
Singapore, Sydney, Auckland and Tokyo.

                       About Bally Total

Bally Total Fitness --- http://www.Ballyfitness.com--- is the  
largest and only nationwide commercial operator of fitness
centers, with over 400 facilities located in 29 states, Mexico,
Canada, Korea, China and the Caribbean under the Bally Total
Fitness, Bally Sports Clubs and Sports Clubs of Canada brands.
Bally offers a unique platform for distribution of a wide range
of products and services targeted to active, fitness-conscious
adult consumers.


BALLY TOTAL: Grants Stock Options to Two New Employees
------------------------------------------------------
As required by New York Stock Exchange rules, Bally Total
Fitness Holding Corp. reported granting stock options to two new
employees:

  * Gayle Franger, Vice President, Brand Development and

  * Robert Moschorak, Assistant Vice President, Franchising.

Ms. Franger and Mr. Moschorak each received 6,000 stock options.  
These inducement stock options vest in three equal annual
installments on the anniversary of the grant date and are
subject to forfeiture in the event of resignation or termination
for cause prior to vesting.

In accordance with NYSE Rule 303A.08, these inducement stock
option grants require a public announcement of the awards and
written notice to the NYSE.

                      About Bally Total

Bally Total Fitness -- http://www.ballyfitness.com/-- is the  
largest and only U.S. commercial operator of fitness centers,
with approximately four million members and 390 facilities
located in 29 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Crunch Fitness(SM),
Gorilla Sports(SM), Pinnacle Fitness(R), Bally Sports Clubs(R)
and Sports Clubs of Canada(R) brands.

                        *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.  The CreditWatch update
followed Bally's announcement that it will not meet the March
16, 2006, deadline for filing its annual report on SEC Form 10-K
for the year ending Dec. 31, 2005.


CMC MAGNETICS: Moody's Downgrades Corporate Family Rating to B1
---------------------------------------------------------------
Moody's Investors Service on July 4, 2006, downgraded CMC
Magnetics Corporation's corporate family rating to B1 from Ba3,
as well as its national scale issuer rating to Ba2tw from
Baa3tw.  The outlook for the ratings is negative.

"The rating action reflects CMC's weak state of liquidity
profile and balance sheet buffer, both of which are essential in
this cyclical industry," says Ken Chan, a Moody's AVP/Analyst.
"Moreover, it also reflects the company's weaker-than-expected
operating performance. Projected key coverage ratios are lower
than the levels prevailing when Moody's first assigned the
rating, and are more consistent with a B1 rating."

Moody's notes that the rating downgrade will trigger
acceleration of repayment of an outstanding NTD3 billion in
commercial paper, but draws comfort that CMC's current cash on
hand is sufficient to cover such an eventuality.  However, it
would further drain cash reserves and weaken balance sheet
liquidity.

The negative outlook considers CMC's intensifying refinancing
risk, given the high level of debt maturing by the end of the
year -- mainly an outstanding euro-convertible bond of around
US$186 million (NTD6 billion), which has a put option in
November. While CMC is proactively considering various
refinancing options, such actions inevitably lead to execution
risk.

On the other hand, Moody's recognizes that raw material costs,
especially for polycarbonates, fell from their peaks in 2005 due
to a gradual increase in PC production.  So, although product
average selling prices continue to decline, the drops in PC
prices should help CMC recover profitability from the trough it
hit in 2005.

Moreover, CMC is well positioned with its expanded capacity --
and its capability to product high-end DVD products -- to meet
rising demand.  Therefore, Moody's believes the company does not
need to spend a material amount on machinery and consequently
will maintain a low capex plan for this year.

Possibility of a rating upgrade is remote given the current
negative outlook. But, a successful refinancing of maturing debt
- which would improve liquidity for the next 12-18 months and
lengthen its debt maturity profile - could stabilize the rating.

At the same time, an inability to refinance debt maturing in
2006 would trigger a rating downgrade. Deterioration in cash
flow generation, arising from unexpected increases in raw
material costs and weakening DVD demand, or aggressive capex
investments and dividend payments that further weaken liquidity,
would also be negative for the ratings.

CMC Magnetics -- established in 1978 -- is a Taiwanese company
that is engaged in replication technology.  It offers multiple
formats including digital versatile disc (DVD)-5, DVD-9, DVD-10,
DVD-14, DVD-18, mini-DVD, compact disc (CD)-read only memory
(ROM) and mini-ROM.  CMC Magnetics also offers packaging
solutions for all replication formats. In addition, the Company
produces a full range of CD and DVD storage media products,
including CDs-recordable, CDs-rewritable, DVDs-
recordable/rewritable, DVDs-random access memory, floppy disks
and other media packaging solutions.


GRIFIT LIMITED: Liquidator to Present Wind-Up Report on Aug. 2
--------------------------------------------------------------
Liquidator Yip Gin Fai will present to members of Grifit Ltd
accounts of the Company's wind-up on August 2, 2006, 10:00 in
the morning.

Contact: Yip Gin Fai
         Room A, 14/F.
         Gaylord Commercial Building
         114-120 Lockhart Road
        Wwanchai, Hong Kong


GOLDENLIO INVESTMENTS: Members to Receive Liquidator's Report
-------------------------------------------------------------
Members of Goldenlio Investments Ltd will be receiving
Liquidator Leung Hok Lim's wind-up report on July 31, 2006, at
10:00 a.m.

Contact: Leung Hok Lim
         Liquidator
         26th floor, Citicorp Centre
         18 Whitfield Road
         Causeway Bay, Hong Kong


JIANGXI COPPER: Downpour Halts Mining Operations
------------------------------------------------
Heavy rains halted Jiangxi Copper's operation and production at
its second-largest copper mine for two weeks, The Standard
reports.

The Company disclosed in its Web site that one of the connecting
bridges in the Yongping mine's transportation network collapsed
on July 1 because of the downpour.  Production at the mine are
suspended until July 15.

Jianxi's executive director, Wang Chiwei, however told The
Standard that the damage does not have a big impact in the
Company's production.

Sun Hung Kai Investment Services analyst Steven Yuan affirmed
Mr. Chiwei's statement, sayingthe temporary closure will have
limited impact on Jiangxi's total production target.  He expects
the total output of copper will hit 480,000 tonnes this year,
compared with 422,000 tonnes a year earlier.

The Standard relates that the Yongping mine in Jiangxi province
has an annual production capacity of 15,000 tonnes of copper
concentrate and more than 800,000 tonnes of normative pyrite
concentrate.

                          *     *     *

Jiangxi Copper is China's largest copper producer.  Xinhua Far
East China Ratings has commented that the likelihood of downward
surprises on the issuer rating for Jiangxi Copper Co., Ltd. was
increasing and changed the Company's rating outlook to negative
from stable.  Its issuer credit rating remains BB+.


KORET (H.K.) LIMITED: Creditors' Proofs of Claim Due on July 30
---------------------------------------------------------------
Creditors of Koret (H.K.) Ltd are required by joint liquidators
Thomas Andrew Corkhill and Iain Ferguson Bruce to file their
proofs of claim by July 30, 2006.

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

Contact: Thomas Andrew Corkhill
         8th Floor, Gloucester Tower
         The Landmark, 11 Pedder Street
         Central, Hong Kong


LEBY TECHNOLOGY: Appoints Official Liquidator
---------------------------------------------
Chan Yip Man was appointed as liquidator of Zebra Resources Ltd
on June 30, 2006.

Mr. Chan requires the Company's creditors to submit their proofs
of claim by July 31, 2006, for them to share in any distribution
the Company will make.

Contact: Chan Yip Man, Norman
         Units 601-2, 6/F., Wai Fung Plaza
         664 Nathan Road, Mongkok
         Kowloon, Hong Kong


LOYAL BUSINESS: Creditors Meeting Set on July 7
-----------------------------------------------
Creditors of Loyal Business Ltd will convene on July 7, 2006, at
5:30 p.m. to discuss about the Company's wind-up exercises.

The meeting will be held at Unit 301, 3rd Floor Malaysia
Building, 50 Gloucester Road, Wanchai, Hong Kong.


LUCKY ASSET: First Creditors' Meeting Set July 13
-------------------------------------------------
Creditors of Luck Asset Development Ltd will convene for their
first meeting on July 13, 2006, 3:00 p.m.

The meeting will be held at Rooms 501-3, 5th Floor, Hang Seng
Bldg, 77 Des Voeux Road Central, Hong Kong.


MAXIPO TECHNOLOGY: Members Agree to Voluntary Wind-Up Firm
----------------------------------------------------------
Members of Maxipo Technology International Ltd resolved on
June 23, 2006, to wind up the Company voluntarily and appoint
Puen Wing Fai and Lo Yeuk Ki as joint liquidators.

Contact: Puen Wing Fai
         21/F., Kwan Chart Tower
         6 Tonnochy Road, Wnachai
         Hong Kong


MULTI-POINT INVESTMENT: Final Members Meeting Set August 14
-----------------------------------------------------------
Members of Multi-Point Investment Ltd will convene for their
final meeting at 7th Floor, Alexandra House, 18 Chater Road,
Central, Hong Kong on August 14, 2006, at 3:00 p.m.

At the meeting, members will receive liquidator David J.
Lawrence's final account of the Company's wind-up.


P5 LIMITED: Prepares for Payment of Debts and Claims
----------------------------------------------------
Liquidator Veronica Chiao will receive proofs of claim from
creditors of P5 Limited until July 28, 2006.

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

Contact: Veronica Chiao
         Room 1208, Kai Tak Commercial Bldg
         317-319 Des Voeux Road Central
         Hong Kong


PONTEL LIMITED: Liquidator to Present Wind-Up Report
----------------------------------------------------
Liquidator Natalia K. M Seng will present to the members of
Pontel Ltd a final report on the Company's wind up.

The presentation will be made at Ms. Seng's office on July 31,
2006 at 2:30 p.m.

Contact: Natalia K. M. Seng
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


ROBHEATH INVESTMENTS: Creditors Must File Claims by July 16
-----------------------------------------------------------
Liquidator Philip Richard Nichols require the creditors of
Robheath Investments Ltd to file their proofs of claim by
July 16, 2006.

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

Contact: Philip Richard Nichols
         1408 World-wide House
         19 Des Voeux Road, Central
         Hong Kong


SATAKE CHINA: Members to Receive Wind-Up Report
-----------------------------------------------
Members of Satake China Ltd will be receiving Joint Liquidators
Chan Kim Chee and Chiu Fan Wa's report regarding the Company's
wind-up at a meeting on August 1, 2006, at 10:00 a.m.

The meeting will be held at 1001 Admiralty Centre Tower I, 18
Harcourt Road, Hong Kong.


* Asia's Telecommunication Industry to Face Increasing Risks
------------------------------------------------------------
Telecommunications operators in the Asia Pacific will face
increasing risks as their business profiles change, although the
overall outlook for the industry is stable, Standard & Poor's
Ratings Services said in a report published on July 5, 2006.

"Deregulation, pressures on profitability from the change in the
revenue mix to lower margin new services, higher capital-
spending requirements, and declining market share are some
challenges that Asia-Pacific telecom operators will face in the
near to medium term," said Standard & Poor's credit analyst
Yasmin Wirjawan.

"Given their need to deliver shareholder value, these operators'
ability to balance these risks and maintain their strong
financial flexibility will be key to their future credit
quality."

Nevertheless, most telecom operators in the region have
maintained stable credit quality in the past six months,
benefiting from years of solid performance backed by high entry
barriers, dominant market shares, and conservative financial
profiles. These operators also exhibit strong business profiles
and improved financial risk profiles, placing them in a better
position to weather any volatility, according to the report.  

In line with global trends, Asia-Pacific telecom providers have
to deal with declining growth in fixed-line services. Growth in
this segment has stagnated due to substitution by wireless
services and rationalization by increased broadband penetration.
This is, however, partially offset by greater earnings
diversity. Standard & Poor's expects capital spending to
increase in this segment as fixed-line operators replace their
public switched telephone networks with next-generation
networks.

Slowing wireless subscriber growth in the saturated developed
markets is likely to lead to more intense pricing competition in
countries such as Japan, Singapore, and Australia. On the other
hand, emerging Asia-Pacific markets, including India, China, and
Indonesia, will offer greater growth prospects, as their
penetration rates remain relatively low.

The Asia-Pacific telecom industry has witnessed major
consolidation over the past few years. Standard & Poor's expects
M&A activity to remain brisk in the near term, given the
importance of economies of scale, particularly in fragmented
markets, such as wireless operators in India and cable TV
companies in Korea.
     
"Some operators are also seeking opportunities for expansion in
the region, given their significant cash balances and increasing
need to diversify earnings," said Ms. Wirjawan. Such operators
include Singapore Telecommunications Co. Ltd., Telekom Malaysia
Berhad, and SK Telecom Co. Ltd.


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

PURNA NAGARI: Loses License After Revival Efforts Failed
--------------------------------------------------------
On July 1, 2006, Purna Nagari Sahakari Bank Limited surrendered
its license to the Reserve Bank of India after efforts to revive
its operations failed, an RBI press release says.

The Reserve Bank decided to revoke Purna Nagari's license as the
latter had ceased to be solvent and depositors were being
inconvenienced by continued uncertainty.

In this regard, the Reserve Bank has requested the Registrar of
Co-operative Societies, Maharashtra, to issue an order to wind
up Purna Nagari and appoint a liquidator.

According to the Reserve Bank, Purna Nagari's financial accounts
as of September 30, 2004, indicated that its financial position
was unsatisfactory.  A review of the bank's finances as of
June 30, 2005, revealed further deterioration in its financial
condition.  Its deposits were getting eroded as the realizable
value of paid-up capital and reserves hit negative.

As Purna Nagari did not have a viable plan of action for its
revival and the chances of its revival were remote, the Reserve
Bank of India cancelled the bank's license in the interests of
the Bank's depositors.  

With the cancellation of its license and commencement of
liquidation proceedings, Purna Nagari will start paying its
depositors' claims subject to the terms and conditions of the
Deposit Insurance Scheme.

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


* Finance Dept. Says Fiscal Deficit Still Within Target
-------------------------------------------------------
India's fiscal deficit could still be within the budget estimate
of INR1,48,686 crore despite data showing that the shortfall has
already hit 50% of the target as of May 2006, Business Standard
reports, citing Finance Minister P. Chidambaram.

Mr. Chidambaram is confident that the Government will still meet
its budget target for the year even if national spending has
increased, The Standard says.

Data released by the Controller General of Accounts showed that
the rise in expenditure resulted to a 48.5% hike in fiscal
deficit to INR72,088 crore in the April to May period.

According to NDTV Profit.com, the Government expects fiscal
deficit in 2006/07 to be 3.8% of gross domestic product, down
from 4.1% the previous year.  

The CGA figures had shown that the revenue deficit up to May was
INR68,620 crore which is 81% of the budget estimates of
INR84,727 crore, The Financial Express cites.  The revenue
deficit during April-May last year was just INR44,154 crore.

Looking at the CGA data, analysts said ministers would have to
continue efforts to improve public finances.

Financial Express says that international rating agencies and
multilateral institutions cite India's large fiscal deficit as a
barrier to sought after double-digit economic growth.


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

BANK NIAGA: Moody's May Upgrade E+ Financial Strength Rating
------------------------------------------------------------  
Moody's Investors Service has placed Bank Niaga's E+ bank
financial strength rating on review for possible upgrade.  All
other ratings are unaffected.

"The review will consider Bank Niaga's improving, albeit modest,
financial fundamentals under major shareholder, Bumiputra
Commerce-Holdings Berhad of Malaysia.  In particular, the bank
has regained positive economic solvency, when adjusted for the
problem loans on its balance sheet and despite its recent rapid
loan expansion," says Beatrice Woo, a Moody's VP/Senior Analyst.

In addition, Bank Niaga is generating a stronger recurring
earnings stream, including a decreasing reliance on income from
government recapitalization bonds as it builds its share in the
housing loan market.  The bank is now the second largest
mortgage lender in the country.

Bank Niaga, headquartered in Jakarta, is Indonesia's seventh
largest bank by assets.  It has a 3.0% share of the deposit
market and 4.3% of the loan market.  At March 2006, it had
assets of IDR41.1 trillion.  In November 2002, Bumiputra
Commerce-Holdings Berhad of Malaysia acquired 51%.  This stake
has since increased to 66.07% with the public holding the
remaining 33.93%.

This rating was placed on review for possible upgrade:

   -- Bank financial strength rating of E+.

These ratings were unaffected:

   -- Issuer rating of Ba3. Outlook stable;

   -- Subordinated debt rating of Ba3. Outlook stable; and

   -- Long-term/short-term deposit ratings of B2/Not Prime.
      Outlook stable.


BANK RAKYAT: Moody's Places D- Fin'l Strength Rating On Review
--------------------------------------------------------------  
Moody's Investors Service has placed Bank Rakyat Indonesia's  D-
bank financial strength rating on review for possible upgrade.
All other ratings are unaffected.

"The review will consider BRI's improving financial
fundamentals, arising from its focus on its core micro-lending,
SME and consumer businesses," says Beatrice Woo, a Moody's
VP/Senior Analyst, adding, "Specifically, the bank enjoys the
highest net interest margin of its peer group, above-industry
average asset quality, and sufficient capital to absorb the
potential risks evident on its balance sheet."

"In the longer term, BRI faces the challenge of protecting its
market share as other banks attempt to penetrate the micro and
retail segments," says Woo, Moody's lead analyst for BRI.

The bank has upgraded its risk management systems as well as its
internal controls and process to create a platform for growth
and to help maintain its market position.  However, the
enforceability of these measures is particularly difficult,
given the sprawling operating network that it maintains.

Another credit risk is that BRI conceivably remains vulnerable
to political pressures.  The government had been its sole
shareholder until an initial public offering in November 2003,
but still remains today the majority shareholder with a 58.16%
stake.  Thus, it could exert considerable influence on the bank.
Management responded that it observes good corporate governance
principles as a publicly listed entity.  While the government
has the right to select the board of directors, it has not
intervened in the bank's management policy and operation.
Finally, management added that independent regulatory
supervision would prevent government intervention if contrary to
prudent practices.

Founded in 1895, Bank Rakyat Indonesia's primary role is to
promote the country's microfinance and SME sectors.
Headquartered in Jakarta, it is now Indonesia's fourth largest
bank in terms of assets and deposits, controlling about 9% of
system deposits.  It holds approximately 14% of its assets in
government recapitalization bonds, 68% of which are fixed rate.

This rating was placed on review for possible upgrade:

   -- Bank financial strength of D-.

BRI's other ratings which were unaffected are:

   -- Subordinated debt of Ba3; and

   -- Long-term/short-term deposit ratings of B2/Not Prime.
      Outlook stable.


PERUSAHAAN LISTRIK: Names UBS Securities to Underwrite Bond Sale
----------------------------------------------------------------
State utility firm PT Perusahaan Listrik Negara has appointed
UBS Securities LLC to underwrite its planned Islamic bonds sale
worth some IDR89.73 billion, Antara News reports, citing PLN
acting president Djuanda Nugraha Ibrahim.

According to Mr. Ibrahim, proceeds from the bond sale would go
to covering around 20% of its funding needs for an accelerated
or "crash" program to build power plants with a combined
capacity of 10,000 megawatts, in order to keep up with domestic
power demand.

Mr. Ibrahim said that most of the Islamic bonds would be offered
to Middle East investors, adding that PLN aims to complete the
bonds sale before signing a contract to build the power plants
in October 2006.

Antara relates that at present, PLN is conducting environmental,
feasibility and site survey studies and creating tender
documents in preparation for the construction project.

According to the report, the Company had signed a non-binding
memorandum of understanding with Chinese firms including
Chengda, China Huadian, China National Machinery & Equipment
Import Export Corp., China National Technical Import Export
Corp. and Sinomach on the expansion project in April 2006, when
Vice President Jusuf Kalla visited China.  However, there is no
definite agreement yet between the two countries.

                 About Perusahaan Listrik Negara

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

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


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

CHUOAOYAMA PwC: Begins Partial Suspension of Operations
-------------------------------------------------------
Major auditing firm ChuoAoyama PricewaterhouseCoopers started
suspending part of its business operations in Japan on July 1,
2006, on orders from the Financial Services Agency, the Japan
Times reveals.

According to the report, the suspension will be until August 31,
2006.

The Troubled Company Reporter - Asia Pacific reported on May 11,
2006, that the FSA had ordered the suspension when three of the
firm's auditors pleaded guilty to falsifying the financial
statements of its client, Kanebo Ltd.  The Company was also
banned from auditing its current clients or accepting new
clients from July to August or September this year, as it had
not set up an internal monitoring system to prevent similar
incidents.

A further TCR-AP report in June stated that over 70 firms had
decided to leave ChuoAoyama PwC and shift to another auditing
firm.  That number has since increased to over 400 companies,
according to an update from the Asahi Shimbun.

In a survey by Asahi Shimbun, 454 listed ChuoAoyama PwC clients
had decided as of June 30, 2006, to drop the company as their
auditing firm during the suspension period, while 586 clients
have yet to decide on whether to retain the firm or not.  Of the
454 who opted to drop ChuoAoyama, 116 chose to cancel their
contracts with the company.

Company partner PricewaterhouseCoopers has already set up a new
auditing firm, PwC Arata, where some major ChuoAoyama clients,
such as Millea Holdings Inc., Shell Sekiyu, and Toa Oil Co. plan
to transfer.


JAPAN AIRLINES: Equity Offering Won't Affect Rating, S&P Says
-------------------------------------------------------------
Standard & Poor's Ratings Services said that its corporate
credit and issue ratings on Japan Airlines Corp. would not be
immediately impacted by the company's equity issuance
announcement.  On June 30, 2006, JAL announced a plan to raise
additional capital through a public offering.  The company
intends to issue up to 750 million additional shares, equivalent
to about 38% of the current outstanding shares of 1.982 billion.

Given the uncertainty over the amount of equity issuance and the
difficult situation the company faces to improve its
performance, Standard & Poor's has no immediate plans to revise
its outlook on JAL, although the equity financing could have a
positive impact on its eroded capital structure.

Standard & Poor's must receive confirmation on the final issue
amount and terms before evaluating the impact of the capital
increase on JAL's financial profile as the exact amount of the
capital increase depends on the offering price, which is to be
determined based on future movements of the company's stock
price.

Even if JAL's capital structure is strengthened to some extent
as a result of the equity offering, Standard & Poor's would
still remain skeptical about the prospect that the equity
offering alone will enable the company to strengthen its
financial profile sufficiently to ward off risks from
unpredicted events because of these factors:

   -- Continuing downward pressure on performance due to a
      decline in the number of passengers in reaction to
      numerous operational problems, as well as rising jet fuel
      costs;

   -- Ongoing investments required to upgrade aircraft and
      maintain competitiveness; and

   -- Exposure to risk of large losses from events such as the
      September 11 terrorist attacks, the war in Iraq, and
      severe acute respiratory syndrome, each of which caused
      over JPY100 billion in earnings decreases.

Assuming that the new stock is issued at JPY250 per share, which
is about a 10% discount on the closing price of JPY273 in the
morning session of the Tokyo Stock Exchange on July 3, 2006,
JAL's capital would increase by JPY175 billion, pushing its
ratio of debt to total capital -- after adjusting for lease
Financing -- down to about 84% from 91.1% as of March 31, 2006.

Standard & Poor's will examine the impact of the equity offering
on the company's financial profile when the terms and amount of
the capital increase are finalized.  The negative outlook on JAL
could be revised upward if the company's stock price surges,
driving the final amount of the capital increase upwards, but
the likelihood of such a scenario is presently limited.  On the
other hand, downward pressure on JAL's rating will remain if the
positive impact of the equity offering on the company's
financial profile is limited, and the company's future
performance continues to drag, casting a shadow over
its financing activities.  Key challenges for the company
include properly address issues that are negatively impacting
its financial profile, such as the delay in restoring passenger
demand and rising jet fuel prices.


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

AMERICAN AXLE: S&P Places BB Rating on US$200M Unsecured Loan
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' rating to
American Axle & Manufacturing Inc.'s US$200 million senior
unsecured term loan maturing in April 2010.

At the same time, the 'BB' corporate credit ratings on the
Detroit, Mich.-based auto supplier and its on parent company,
American Axle & Manufacturing Holdings Inc. were affirmed.  The
outlook is negative. Total consolidated debt at March 31, 2006,
was about US$575 million.

Proceeds from the term loan will be used to refinance payments,
related to the conversion of Holdings' US$150 million senior
convertible notes due 2024, and for general corporate purposes.
Following completion of this transaction, American Axle will
restore its liquidity.  The company will initially draw down on
its US$600 million senior unsecured revolver to make the
payments.

American Axle & Manufacturig Inc. -- http://www.aam.com/-- is a  
world leader in the manufacture, engineering,  validation and
design of driveline systems, chassis systems and forged products
for trucks, buses, sport utility vehicles, and passenger cars.
In addition to its locations in the United States (in Michigan,
New York and Ohio), American Axle also has offices or facilities
in Brazil, China, England, Germany, India, Japan, Mexico,
Scotland and South Korea.


BOWATER INC: Secures New Five-Year Revolving Credit Facility
------------------------------------------------------------
Bowater Incorporated has established a new five-year revolving
credit facility, which replaces both its current revolving
credit facility and its 364-day accounts receivable
securitization facility.

Bowater accomplished this by entering into:

   a) a Credit Agreement among Bowater as Borrower, several
      lenders, and Wachovia Bank, National Association, as
      Administrative Agent; and

   b) a Credit  Agreement, along with its subsidiary Bowater
      Canadian Forest Products Inc., among BCFPI as Borrower,
      Bowater as parent Guarantor, several lenders, and The Bank
      of Nova Scotia as Administrative Agent.

The US Credit Agreement provides for a US$415 million revolving
credit facility with a scheduled maturity date of May 25, 2011.  
The US Credit Agreement is guaranteed by certain of Bowater's
wholly owned subsidiaries in the United States, and is secured
by:

   -- liens on the inventory, accounts receivable and deposit
      accounts of Bowater and the guarantors;

   -- pledges of the 65% of the stock of certain of Bowater's
      foreign subsidiaries, and

   -- pledges of the stock of Bowater's United States
      subsidiaries that do not own mills or converting
      facilities.

Availability under the US Credit Agreement is limited to 90% of
the net consolidated book value of Bowater's accounts receivable
and inventory, excluding BCFPI and its subsidiaries.  Letters of
credit may be issued under the US Credit Agreement up to an
aggregate of US$100 million.

The Canadian Credit Agreement provides for a US$165 million
revolving credit facility with a maturity date of May 29, 2007,
subject to annual extensions.  The Canadian Credit Agreement is
secured by liens on the inventory, accounts receivable and
deposit accounts of BCFPI.

Availability under the Canadian Credit Agreement is limited to
65% of the net book value of the accounts receivable and
inventory of BCFPI and its subsidiaries.  Letters of credit may
be issued under the Canadian Credit Agreement up to an aggregate
of US$50 million.

Financial covenants under both the US Credit Agreement and
Canadian Credit Agreement are based upon Bowater's Consolidated
Financial Results and consist of these two ratios:

   1) a maximum ratio of senior secured indebtedness (including
      all advances and letters of credit under the US and
      Canadian facilities, and any other indebtedness secured by
      assets of Bowater and its subsidiaries) to EBITDA of 1.25
      to 1; and

   2) a minimum ratio of Adjusted EBITDA (defined as EBITDA,
      plus gains (or minus losses) from asset  dispositions) to
      interest expense of 2.00 to 1.

As of May 31, 2006, Bowater and BFCPI have no debt outstanding
under either the US Credit Agreement or the Canadian Credit
Agreement, but do have outstanding letters of credit totaling
approximately US$98.8 million.  As of May 31, 2006, Bowater has
US$481.2 of availability under the credit agreements on a
consolidated basis.

On May 31, 2006, in connection with the US Credit Agreement and
the Canadian Credit Agreement, Bowater's current revolving
credit facility and 364-day accounts receivable securitization
facility were replaced and these agreements were terminated:

   1) Credit Agreement dated as of April 22, 2004, as amended,
      among Bowater and BCFPI as Borrowers,  the lenders from
      time to time party thereto, JPMorgan Chase Bank as
      Administrative Agent, and The Bank of Nova Scotia as
      Canadian Administrative Agent.  This Credit Agreement
      provided a US$400 million United States revolving credit
      facility and a US$35 million Canadian revolving credit
      facility on an unsecured basis.

   2) The Amended and Restated Receivables Sale Agreement dated
      as of Dec. 1, 2005, as amended, among Bowater and Bowater
      America Inc. as Sellers and Bowater Funding, Inc. as
      Buyer, and the Amended and Restated Loan Agreement dated
      as of Dec. 1, 2005, as amended, among Bowater Funding Inc.
      as Borrower, Bowater as Servicer, the Conduit Lenders,
      Committed Lenders, LC Issuers, and Agents identified
      therein, and SunTrust Capital Markets, Inc., as
      Administrative Agent.  These agreements governed the
      US$200 million accounts receivable securitization program
      of Bowater under which Bowater and Bowater America Inc.
      sold their accounts receivable to Bowater Funding Inc.,
      and Bowater Funding Inc. obtained financing collateralized
      by those accounts receivable.

Headquartered in Greenville, South Carolina, Bowater
Incorporated (TSX: BWX) produces newsprint and coated mechanical
papers.  In addition, the company makes uncoated mechanical
papers, bleached kraft pulp and lumber products.  The company
has 12 pulp and paper mills in the United States, Canada and
South Korea and 12 North American sawmills that produce softwood
lumber.  Bowater also operates two facilities that convert a
mechanical base sheet to coated products.  Bowater's operations
are supported by approximately 1.4 million acres of timberlands
owned or leased in the United States and Canada and 30 million
acres of timber cutting rights in Canada.  Bowater is one of the
world's largest consumers of recycled newspapers and magazines.  
Bowater common stock is listed on the New York Stock Exchange,
the Pacific Exchange and the London Stock Exchange.  A special
class of stock exchangeable into Bowater common stock is listed
on the Toronto Stock Exchange.

                         *     *     *

As reported in the Troubled Company Reporter on June 2, 2006,
Dominion Bond Rating Service downgraded the rating of Bowater
Canadian Forest Products Inc. to BB (low) from BB.  The trend
remains Negative.  The downgrade reflected persistent weakness
in Bowater's credit metrics and the expectation that a
significant improvement will not take place over the near term.  
The Negative trend recognized the considerable headwinds facing
the Company.

Standard & Poor's Ratings Services lowered its ratings on
Bowater and subsidiary Bowater Canadian Forest Products Inc.,
including the corporate credit rating on each entity to 'B+'
from 'BB' in December 2005.  S&P said the outlook is stable.

Moody's Investors Service puts Ba3 senior implied, senior
unsecured and issuer ratings on Bowater.  Moody's says the
outlook is negative.

Fitch Ratings rated Bowater's senior unsecured bonds and bank
debt 'BB-'.  Fitch said the Rating Outlook is Stable.


HYUNDAI MOTOR: Sold Slightly Lesser Cars in June
------------------------------------------------
Hyundai Motor Co.'s June 2006 sales fell 1.6% from a year ago,
hit by partial strikes staged by unionized workers, Reuters
reports.

Hyundai sold 222,926 vehicles in June, slightly down compared
with the 226,630 units sold in the same period in 2005, and down
2.5% from the 228,640 units sold in May 2006.  Of the total
sales in June, 173,060 units were sold abroad, which figure is
1.4% lower than the number of vehicles sold internationally in
June 2005, and 5.8% down from May 2005's recorded exports of
183,640 units.  

Domestic sales declined 2.3% to 49,886 units from June 2005 to
June 2006, but improved 10.8% from May 2006.

Jake Jang, a Hyundai spokesman, said that better sales numbers
are in the offing, due to new models and the summer vacation.

                      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.


KOREA EXPRESS: Branches Out to Japan
------------------------------------
Korea Express Co. Ltd. has set up a Japanese subsidiary to tap
the logistics market in the neighboring country, The Korea
Herald reports.

Korea Express has set up Korex Logistics Japan Co. with a
capitalization of KRW753 million in Tokyo.  Korea Express holds
a 70% stake, while the remaining shares are owned by K.E.C.
International Co., an international cargo services arm of the
Korea Express.

The Herald notes that the Tokyo branch, the first of the planned
offices in Japan, will provide comprehensive logistics services,
including maritime and aviation logistics forwarding, trading
and warehouse management.

According to the report, offices in Fukuoka and Osaka are
expected to be up by the first half of 2008.  The step is seen
to strengthen a new sales model for its operations in Northeast
Asia.

The Herald recounts that Korea Express had set up a Shanghai
subsidiary in April.

The Korea Times relates that the Company also plans to operate
nine offices in the United States, up from the current four, and
add more offices in South America and Europe within 2006.

                       About Korea Express

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

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

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

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


KRISPY KREME: Files FY2005 10-K & Restates 2003-04 Financials
-------------------------------------------------------------
Krispy Kreme Doughnuts, Inc., filed its financial results for
the fiscal year ended Jan. 30, 2005, with the United States
Securities and Exchange Commission on April 28, 2006.

The Company also restated its consolidated balance sheet as of
Feb. 1, 2004 (the last day of fiscal 2004) and its consolidated
statements of operations, of shareholders' equity and of cash
flows for fiscal 2004 and fiscal 2003.  Certain restatement
adjustments affected periods prior to fiscal 2003.

For the fiscal year ended Jan. 30, 2005, the Company reported a
US$198.3 million net loss on US$707.8 million of net revenues,
compared to US$48.6 million of net income on US$649.3 million of
net revenues for the year ended Feb. 1, 2004.

As of Jan. 30, 2005, the Company's balance sheet showed total
assets of US$480.3 million and total debts of US$239.3 million.

As reported in the Troubled Company Reporter on April 19, 2006,
the Company noted that it is unable to timely file its annual
report on Form 10-K for fiscal 2006 because there have been
substantial resources devoted to completing the 10-K for fiscal
2005.  The Company intended to file the fiscal 2006 10-K as soon
as practicable after completing its fiscal 2005 10-K.

A full-text copy of Krispy Kreme's Annual Report is available
for free at http://researcharchives.com/t/s?a59

                      About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) --http://www.krispykreme.com/-- is a leading  
branded specialty retailer of premium quality doughnuts,
including the Company's signature Hot Original Glazed.  There
are currently approximately 320 Krispy Kreme stores and 80
satellites operating systemwide in 43 U.S. states, Australia,
Canada, Mexico, the United Kingdom, and the Republic of South
Korea.

Headquartered in Winston-Salem, North Carolina, Freedom Rings
LLC is a majority-owned subsidiary and franchisee partner of
Krispy Kreme Doughnuts, Inc., in the Philadelphia region.  The
Debtor operates six out of the approximately 360 Krispy Kreme
stores and 50 satellites located worldwide.  The Company filed
for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del. Case
No. 05-14268).  M. Blake Cleary, Esq., Margaret B. Whiteman,
Esq., and Matthew Barry Lunn, Esq., at Young Conaway Stargatt &
Taylor, LLP, represent the Debtor in its restructuring efforts.
When the Debtor filed for protection from its creditors, it
estimated US$10 million to US$50 million in assets and debts.

Headquartered in Oak Brook, Illinois, Glazed Investments, LLC,
is a 97%-owned unit of Krispy Kreme.  Glazed filed for chapter
11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-
00932).  The bankruptcy filing will facilitate the sale of 12
Krispy Kreme stores, as well as the franchise development rights
for Colorado, Minnesota and Wisconsin, for approximately
US$10 million to Westward Dough, the Krispy Kreme area developer
for Nevada, Utah, Idaho, Wyoming and Montana.  Daniel A. Zazove,
Esq., at Perkins Coie LLP represents Glazed in its restructuring
efforts.  When Glazed filed for protection from its creditors,
it estimated assets and debts between US$10 million to
US$50 million.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings.  The Monitor
is attempting to sell the KremeKo business.


NCSOFT CORP: Denies Allegations of Negligence in Identity Thefts
----------------------------------------------------------------
NCsoft Corp. denied allegations that it has been negligent in
dealing with the massive identity thefts that swept its online
game site since February 2006, the Class Action Reporter says,
citing Asia Pulse Businesswire.

The denial comes as police arrested one of the company's top-
ranking executives earlier, who was identified only by his last
name, Kim, on suspicion of being involved in the identify theft
scandal.

                         Identity Theft

NCsoft is facing an identity theft class action.  The CAR stated
on March 30, 2006, that 8,574 people are seeking US$1,026 each
in damages for their stolen identities.
  
The suit arose after it was discovered that some players of
online game "Lineage" were using identities of others that they
obtained from the Internet or through other illegal channels.   
It estimated up to 1.22 million identities theft.  The suit
accused the company of failing to verify the identifications of
members when they registered.  

Lineage is a multi-player online role-playing game in which
gamers can explore a mythical fantasy world and befriend new
people while also engaging in combat.

In a subsequent report on May 4, 2006, the CAR said that the
company plans to appeal a court ruling that ordered it to pay
about US$500 each to five players of its popular online game,
"Lineage II."  According to the CAR report, while the damages
awarded were small, the case is dangerous for NCsoft "because it
could provide fuel for claimants who are demanding  millions of
dollars in another, much larger, identity theft case."

The company, which has strongly denied liability, would
potentially face claims of more than US$1 billion if the class
action were to succeed in its present form.

                          About NCsoft

Headquartered in Seoul, South Korea, NCsoft --
http://www.ncsoft.com/-- is the world's largest independent   
online game company. Established in 1997 as a systems
integration company, NCsoft leapt forward to become the world's
leading online game software company.  In Korea, its blockbuster
hit game "Lineage" commands a 47% market share and attracts the
greatest number of concurrent users in the world.  Currently
there are more than four million active subscribers worldwide
playing Lineage.

NCsoft began to suffer from slow sales since late 2005.  Its
latest game "Auto Assault" did not do as well as expected.  
Another project, "Tabula Rasa," had also been delayed, affecting
the firm's profitability.

In its report to investors last month, NCsoft indicated that it
expected an operating profit of KRW57 billion this year, which
is 25% less than 2005.


SSANGYONG MOTOR: SAIC Plans RMB10 Billion IPO
---------------------------------------------
Ssangyong Motor Co.'s biggest shareholder Shanghai Automotive
Industry Corp. is reportedly making plans to raise up to
RMB10 billion by selling A-shares on a domestic market, most
likely the Shanghai Stock Exchange, China Knowledge reports.

The company, in a statement to the Shanghai Stock Exchange, said
that "SAIC did not yet have a timetable for a listing but held
off denying the reports altogether."  The company was responding
to earlier reports that SAIC is seeking a listing in the second
half of this year.

South China Morning Post adds that the funds raised will be used
to develop its own brands, become a substantial exporter, and
support Ssangyong Motor.

                      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 "Korando" and "Musso," minibuses under the
brand name "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: Motorola Invests in Firm
----------------------------------------
Motorola Inc. is investing in VK Corporation, Telecoms Korea
reports.

According to I4U News, sources close to the deal say that the
deal involves Motorola acquiring convertible bonds in VK Corp
and a large-scale ODM deal.

The Troubled Company Reporter - Asia Pacific reported on
June 29, 2006, that VK Corp could face insolvency due to its
maturing loans.

The TCR-AP stated that the company's illiquid position became
apparent at the end of 2005, where its current liabilities shot
up to KRW174.49 billion from KRW100.62 billion as of Dec. 31,
2004.  

The company's balance sheet as of December 31, 2005, and
December 31, 2004, 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 2004's KRW383.87 billion.

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 (GSM).

                        About Motorola

Originally founded as the Galvin Manufacturing Corporation in
1928, Motorola introduced the battery eliminator its first
product.  More than 75 years later, Motorola has proven itself a
global leader in wireless, broadband and automotive
communications technologies and embedded electronic products.


* Korea To See Strong Demand for CDOs, Fitch Says
-------------------------------------------------
Fitch Ratings today said that there will likely be strong demand
for CDO products in Korea this year.  The agency published these
and other findings about the structured credit market in Korea
in a report titled "CDO Investor Roundup: Korea" today.

In the report, Fitch noted that among current CDO investors in
Korea, more have purchased synthetic deals than cash deals due
to the preference for synthetics among Korean insurance
companies.  "While a number of Korean insurers have purchased
cash deals in the past, the current practice of hedging the
foreign currency risk of all international CDO paper has
required them to focus on synthetic products, which has fixed
maturity dates and is easier to hedge," said Rachel Hardee, Head
of Structured Credit for Asia Pacific.

Fitch said that most investors Fitch visited prefer, and many
have mainly purchased, deals that are managed by professional
CDO asset managers.  "In Fitch's view, the preference for
managed deals in Korea will likely become increasingly
established and institutionalized -- through criteria for
manager reviews as well as through investment guidelines that
require managers for particular deal types," said Ms. Hardee.

"CDO investors in Korea are divided among the few large
institutions that have invested in CDO products and the majority
that have either made a very limited investment or have not
invested at all," said Ms Hardee.

Fitch noted that among investors that have purchased CDOs, the
level of understanding varies widely - from the very rudimentary
to the very sophisticated.  "Some have purchased deals a number
of years ago and have seen them mature, while others have
invested only recently," said Ms. Hardee.

"A number of investors Fitch visited are currently reviewing
transactions and have expressed a strong interest in making
purchases this year," Ms. Hardee added.

Fitch noted that for new investors, internal processes need to
be completed and agreement among key departments needs to be
reached before the first investment could be made.  "While this
process takes time, it lays the foundation for future growth, as
the decision to undertake the first investment tends to lead to
repeat CDO purchases soon thereafter," said Ms. Hardee.

Fitch pointed out that among investors with existing CDO
portfolios, some are re-evaluating their internal guidelines
with respect to CDO products.  "In general, the
institutionalisation of CDOs as an asset class and the
codification of guidelines for CDO investments tend to
facilitate activity over the long run," said Ms. Hardee.  "The
completion of these processes should support demand for CDO
products in Korea in the foreseeable future," Ms. Hardee added.


* Experts See Weaker Second Quarter Results
-------------------------------------------
South Korea's key industries of electronics, oil refining and
petrochemical and cars are likely to post sluggish second-
quarter earnings reports, industry experts forecast ahead of the
April-June earnings season, The Hankyoreh reports.

                    Weaker Korean Economy

The Hankyoreh says that many economic think tanks -- such as the
Samsung Economic Research Institute and the Korea Institute for
Industrial Economics and Trade -- project that the South Korean
economy in general will slow down in the second half of this
year, compared with its progress in the first half, based on
gloomier economic indicators and a rise in inventories.

Economic experts recently released reports predicting that the
economy will decelerate to around a 4% or 4.7% growth rate in
the next six months.  Experts attributed the possible weak
results to high oil prices, the won's gain against the U.S.
dollar and a slump in domestic demand.

The South Korean economy grew 5.7% in the first half of 2006.

                     Economic Indicators

The Hankyoreh says that prediction of economic slowdown is based
on two main factors: bleak economic indicators and ballooning
inventories.

According to the experts, the country's leading economic
indicators, measures of how the economy will fare six months to
come, have fallen for the past four months in a row, according
to official data.

The inventory ratio at the manufacturing sector, which stood at
89.1% in January, rose to 97.2% in May, maintaining its upward
move for the past five months.  A rise in inventories means a
deterioration in consumer sentiment, experts say, as less
products are being bought off the shelves.

The operation ratio, another measure of economic outlook, also
saw a decrease during the first half of the year. In January,
the figure stood at 83.5%, but continued to edge downward to
80.5% in May.

                  Status of Key Industries

According to the report, a plunge in retail prices is expected
to have contributed to the poor performance by the electronics
industry.  Samsung Electronics Co., the world's largest computer
memory chipmaker, is expected to report KRW1.6 trillion in net
profit and KRW1.4 trillion in operating profit in the April-June
period, both down about 15% from the previous quarter, according
to online financial information provider FN Guide.

LG Philips LCD Co. is expected to have incurred more than 100
billion won in operating loss in the quarter, the experts said.

Sales by POSCO, the world's fifth-largest steelmaker, is likely
to reach KRW4.86 trillion in the second quarter, up 4.18% from
three months earlier.  The estimated figure, however, is 9.65%
lower compared to quarterly sales a year earlier.

The petrochemical industry is forecast to see reduced earnings
for the second quarter due to a drop in sales margin, reduced
domestic demand on high prices and a surge in the cost of raw
materials such as naphtha.  SK Corp., the nation's largest oil
refiner, will likely post a 4% drop in operating profit, the
analysts said.

The Hankryoreh adds that car manufacturers are not likely to
achieve their projected earnings as a result of the worse-than-
expected economic environment.  South Korea's largest carmaker,
Hyundai Motor Co., sold 1.1 million units between January and
May, up 11.6% from a year earlier, but short of its sales target
of 2.69 million units.

Meanwhile, the shipbuilding, airline and retail industries are
believed to have remained bullish between April and June due to
a recovery in demand.


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

BUKIT KATIL: Shareholders to Consider Estate Disposals at EGM
-------------------------------------------------------------
Bukit Katil Resources Berhad will hold an Extraordinary General
Meeting on July 21, 2006, at 10:00 a.m., at the Crystal Crown
Hotel, in 46200 Petaling Jaya, Selangor Darul Ehsan.

The main purpose of the meeting is to seek shareholders'
approval for disposal of various estate properties:

   * Ayer Kuning Estate -- Lot Nos. 1199 & 1200 held under Geran
     21180 & 21181, Mukim of Ayer Kuning, District of Tampin,
     Negeri Sembilan Darul Khusus -- to Multihub
     Harvest Sdn Bhd for MYR11,432,000 in accordance with the
     terms and conditions of a Sale and Purchase Agreement
     December 8, 2005;

   * Grisek Estate -- Lot Nos. 8391, 3745, 3746 & 3747 held
     under Geran 28742, Geran Mukim 4487, 4488 & 4489, Mukim of
     Grisek, District of Muar, Johor Darul Takzim -- to Dhirini
     Corporation (M) Sdn Bhd for MYR19,202,640 in accordance
     with the terms and conditions of a Sale and Purchase
     Agreement dated December 1, 2005; and

   * Pagoh Estate -- Lot Nos. 792, 1718, 1867 held under Geran
     96914, 82257 & 82394, Mukim of Pengkalan Bukit and Lot No.
     4265, 5454, 5455, 5456, 5486 & 5487 held under Geran Mukim
     1902, Geran 49927, 49928, 49929, 49951 & 49982, Mukim of
     Jorak, District of Muar, Johor Darul Takzim -- to Ker Chee
     Seng for MYR12,572,000 in accordance with the terms and
     conditions of a Sale and Purchase Agreement dated Dec. 1,
     2005.

                    About Bukit Katil Berhad

Headquartered in Kuala Lumpur, Malaysia, Bukit Katil Resources
Berhad is engaged in money lending and oil palm and rubber
production.  Other activities include investment holding,
software development, property investment and development and
manufacturing of bricks and ceramic products.  Operations are
carried out in Malaysia and India.  The Company has defaulted on
several loan facilities and admits that it does not have
sufficient cash to pay its debts.

As of December 31, 2005, the Company recorded a deficit of
MYR129,981,000.  The Company, on Dec. 16, 2005, presented an
application to regularize its financial condition through debt
restructuring, which was subsequently rejected by the Securities
Commission.


DENKO INDUSTRIAL: In Talks with Prokhas to Redeem RCSLS
-------------------------------------------------------
Denko Industrial Corporation Berhad, on June 27, 2006, wrote to
Prokhas Sdn Bhd -- formerly known as Danaharta Managers Sdn Bhd
-- regarding its intention to redeem MYR5,433,033 nominal amount
of five-year 5% redeemable convertible secured loan stock and
the second anniversary redemption sum of MYR816,185, which was
due on March 15, 2006, to be paid by issuance of shares and
cash.

The Company is further negotiating on the terms and conditions
offered by Prokhas.

On Februarys 9, 2006, Prokhas decided to allow Denko to withdraw
the security for the RCSLS subject to Danaharta's receipt of
MYR4,500,000, and to convert the balance shortfall equivalent to
MYR933,033 RCSLS into new Denko shares as per the existing terms
of the RCSLS.

            About Denko Industrial Corporation Berhad

Headquartered in Kuala Lumpur, Malaysia, Denko Industrial
Corporation Berhad is involved in the manufacture and sale of
plastic raw materials, semi-finished products and chemicals,
plastic pipes and plastic injection molding products, foundation
garments made of cotton, polyester and other types of fabrics,
consumer and industrial products.  Its other activities include
the provision of maintenance services for sewerage systems and
waste water treatment plants, production of packing material and
vacuum foams, property rental, wholesaling and retailing of
foodstuff and investment holding.  The Company was released from
its Practice Note 4 status in March 2004 following the
implementation of the Company's debt-restructuring scheme.  
Bursa Malaysia, however, still monitors the Company's
operations, as it continues to book losses even after its
current financial condition was regularized.


FEDERAL FURNITURE: Shareholders Pass All AGM Resolutions
--------------------------------------------------------
Federal Furniture Holdings (M) Berhad's shareholders unanimously
passed all resolutions tabled at the Company's 23rd Annual
General Meeting held on June 30, 2006.

At the meeting, shareholders:

   -- received the audited financial statements for the
      financial year ended December 31, 2005, together with the
      directors' and the auditors' reports;

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

   -- re-elected as directors Choy Wai Ceong and Haji Md Abdul
      Wahab Bin Md Shahir;

   -- reappointed Messrs Ernst & Young as auditors of the
      Company until the conclusion of the next Annual General
      Meeting and to authorize the Directors to fix the
      auditor's remuneration; and

   -- empowered the Company's directors to issue and allot
      shares in the Company, at any time and upon terms and
      conditions and for such purposes as the directors may, in
      their absolute discretion deem fit, provided that the
      aggregate number of shares issued pursuant to the
      resolution does not exceed 10% of the issued share capital
      of the Company for the time being and that the directors
      be and are also empowered to obtain the approval for the
      listing of and quotation for the additional shares so
      issued on the Bursa Malaysia Securities Berhad.

            About Federal Furniture Holdings Berhad

Headquartered in Selangor Darul Ehsan Malaysia Federal Furniture
Holdings Bhd -- http://www.federal-furniture.com/-- is a listed  
company on the Kuala Lumpur Stock Exchange and is Malaysia's
premier furniture and interior design group.  It consists of
companies in all the main sectors of the furniture-related
industries, from manufacturing, marketing, exporting, contract
furnishing and interior design to retail.

On June 24, 2004, the Board of Directors of Federal Furniture
has proposed a capital reduction, a share premium reduction,
rights issue with warrants and a debt settlement scheme with
some of its financial institution lenders to restructure and
settle a substantial part of its total bank borrowings.  
Furniture Holdings has yet to finalize its Financial
Regularization Plan.


KL INFRASTRUCTURE: Posts MYR80-Mln Loss on MYR38.6-Mln Revenue
--------------------------------------------------------------
KL Infrastructure Group Berhad, on June 30, 2006, submitted for
public release its unaudited financial report for the year ended
April 30, 2006.

For the 12-month period to April 30, 2006, the Group's turnover
was 19% higher at MYR38.6 million as against MYR32.5 million in
the preceding year.  Operating profit before depreciation
climbed 43.9% increase from MYR12.3 million in 2005 to
MYR17.7 million in 2006.

The profit before interest and taxation is MYR5.5 million for
2006 compared to MYR3.5 million in 2005.

The Group however suffered a higher loss after interest and
taxation of MYR80.5 million as against a post-tax and interest
loss of MYR75.9 million last year due to the higher interest
expense incurred on the project loans.

The losses arising in both the current and preceding quarters
were attributable to the financing charges.  Whilst
contributions were higher in the current quarter, this was
largely negated by higher amortization and depreciation charges
and increased financing costs.

As of April 30, 2006, the Company's balance sheet revealed
strained liquidity with current assets of MYR7,537,000 available
to pay current liabilities of MYR34,172,000 coming due in the
next 12 months.

The Company has total assets of MYR1,344,739,000 and total
liabilities of MYR1,285,484,000 resulting to a shareholders'
equity of MYR58,958,000.  

There was no dividend proposed for the fourth quarter ended
April 30, 2006.

The Company's Financial Report and its accompanying notes are
available for free at:

   http://bankrupt.com/misc/tcrap_klinfrastructure070506.xls

  http://bankrupt.com/misc/tcrap_klinfrastructurenotes070506.pdf

                  About KL Infrastructure Group

KL Infrastructure Group is principally engaged in the concession
and operation of an intra-city public transit system called the
KL Monorail.  Its other activities include provision of
advertising space on columns and stations along KL Monorail
project route, property development and investment holding.  The
Group's activities are carried out principally in Malaysia.

The Group has been incurring losses in the past years due to its
high operating expenses and loan-interest payments.  For the
fourth quarter ended April 30, 2006, the Company booked a net
loss of MYR23.27 million.


MBF CORPORATION: Leasing Arm Trims Default Amount to MYR15 Mln
--------------------------------------------------------------
MBf Corporation's wholly owned subsidiary, MBf Leasing Sdn Bhd,
has reduced its total default loan repayment amount to
MYR15,478,317 from MYR16,478,317 after it paid MYR1,000,000 to
its Scheme B creditors.  

However, MYR405,316 was paid to all Scheme Creditors, resulting
in a shortfall of MYR776,856 in interest repayment to all Scheme
Creditors for the month of June 2006.  As of 30 June 2006, the
cumulative interest shortfall amounts to MYR6,253,129.

                  About MBf Corporation Berhad

Headquartered in Kuala Lumpur, Malaysia, MBF Corporation Berhad
is principally involved in promoting and selling property, club
and timeshare memberships; leasing factoring facilities, credit
cards, consumer financing and related products and property
development. Other activity include investment holding.  The
Group operates in three main areas, namely, Malaysia, Indonesia
and Hong Kong and Taiwan collectively.  The Group's principal
activities are mainly operated in Malaysia except for the credit
card business, which is carried out in Indonesia.  The Group has
no significant operations in Hong Kong and Taiwan other than
certain residual assets from a subsidiary that has since been
liquidated in Taiwan.

The Company is classified under Bursa Malaysia Securities
Berhad's Practice Note 17 category and is required to formulate
a plan to raise its shareholders' equity to meet the Bourse's
Listing Requirements.


POLYMATE HOLDINGS: ABI Gets Another Claims Payment Demand
---------------------------------------------------------
Polymate Holdings Berhad's wholly owned subsidiary, ABI Malaysia
Sdn Bhd, received on June 30, 2006, a Summons and Statement
Claim dated April 14, 2006, from Bennova Mechanical Engineering
Sdn Bhd.

Bennova is demanding payment of MYR39,170, plus an annual
default interest rate of 8% to be applied from the date of
summons until the date of full settlement.

The plaintiff also claims payment for legal costs and other
relief that the Kuala Lumpur Sessions Court deems fit.

The Court will hear the suit on July 18, 2006, at 9:00 a.m.

Bennova's claim is the fifth in a series of claims payment
demands suit ABI Malaysia received this year.

The Troubled Company Reporter - Asia Pacific recounts that
Polymate Holdings and ABI Malaysia were served with a Writ of
Summons and Statement of Claim dated May 18, 2006, by Malayan
Banking.  Malayan Banking is pursuing a MYR10,014,145-claim.

On June 9, 2006, ABI Malaysia was also served with a Summons and
Statement of Claim by CDP Engineering Sdn Bhd.  In the suit, CDP
Engineering is asserting a MYR10,675 claim.

ABI Malaysia received a Summons and Statement of Claim from
Lianma Enterprise on June 19, 2006.  Lianma is demanding payment
of MYR9,778.

ABI Malaysia then received a Writ of Summons and Statement of
Claim dated May 25, 2006, from Metal Reclamation (Industries)
Berhad, which asserted a MYR857,992 claim.

                 About Polymate Holdings Berhad

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

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

Meanwhile, Polymate says that it is still negotiating with its
lenders to restructure the Group's credit facilities and is
working on various schemes to regulate its financial position.


PRIME UTILITIES: Receives Warning for Breaching Disclosure Rules
----------------------------------------------------------------
Bursa Malaysia Securities Berhad, on June 30, 2006, publicly
reprimanded Prime Utilities Berhad for breaching Bursa Malaysia
Securities Berhad's disclosure rules.

Under the Listing Requirements, a listed company must
immediately disclose default in payments of either interest or
principal sum or both in respect of a credit facility, which is
5% or more of the net tangible assets of the listed issuer.

However, Prime Utilities failed to make an immediate public
announcement when its subsidiary LBCN Development Sdn Bhd
defaulted in payments on credit facilities granted by Bank Islam
Malaysia Berhad, Malaysan Banking Berhad and Stockware Capital
Sdn Bhd.  The facilities were defaulted in 2003 but the Company
only made the disclosure on April 13, 2006.

Bursa Malaysia imposed the public reprimand after taking into
consideration all the circumstances and the relevant factors of
the case, including the fact that Prime Utilities has previously
breached the Listing Requirements.

The Troubled Company Reporter - Asia Pacific recounts that Prime
Utilities was on September 16, 2005, publicly reprimanded and
fined MYR4,000 by Bursa Securities for failing to submit its
quarterly report for financial period ended April 30, 2005,
within the stipulated time frame.

Further on October 14, 2005, Prime Utilities Berhad was publicly
reprimanded and fined MYR21,000 for failing to submit its Annual
Audited Accounts for the financial year ended April 30, 2005, on
the due date.

                 About Prime Utilities Berhad

Headquartered in Selangor, Malaysia, Prime Utilities Berhad --
http://www.prime.com.my/-- is a property development company  
listed on the Main Board of Bursa Malaysia Securities Berhad.  
The principal activities of the Prime Group of companies is the
development of a 1,373 acres township known as Alam Perdana in
the Mukim of Ijok, District of Kuala Selangor.  The township of
Alam Perdana will comprise of 15,630 units of bungalows, semi-
detached, single and double-storey linked houses, low-cost
flats, medium-cost apartments, condominiums, shop offices and
retail complexes, when fully developed.  After booking losses
since 1999, the Company has continuously taken necessary steps
to improve its financial position.  In 2005, Bursa Malaysia
Securities Berhad has publicly reprimanded and imposed fines
twice on the Company for failing to submit its financial reports
on time.


PRIME UTILITIES: Loss Jumps to MYR9.4 Million in Fourth Quarter
---------------------------------------------------------------
Prime Utilities Berhad on June 30, 2006, filed its financial
report for the fourth quarter ended April 30, 2006, with Bursa
Malaysia Securities Berhad.

For the quarter under review, the Group recorded a pre-tax loss
of MYR9.4 million on revenue of MYR6.7 million, as compared to a
loss before tax of MYR3.9 million and revenue of MYR2.3 million
achieved in the same quarter last year.

The loss before tax is basically due to both losses on project
and interest provision on borrowings and other long-term
liabilities.

For the 12 months ended April 30, 2006, the Company registered a
pre-tax loss of MYR3.2 million on revenue of MYR39.3 million.

As of April 30, 2006, the Company's balance sheet revealed
strained liquidity with current assets of MYR202,965,000
available to pay current liabilities of MYR352,441,000.

As of April 30, 2006, the Company has total assets of
MYR768,138,000 and total liabilities of MYR471,177,000,
resulting to shareholders' equity of MYR296,961,000.  The
Company has a debt-to-equity ratio of 1.6.

The Board of Directors did not recommend any dividend payment
for the financial period under review.

The Group's result in the next financial quarter is not expected
to be materially different from the current quarter.  The
Company is continuously taking necessary steps to improve the
financial position of the Group.

The Company's Financial Report is available for free at:

   http://bankrupt.com/misc/tcrap_primeutilities070506.pdf

                  About Prime Utilities Berhad

Headquartered in Selangor, Malaysia, Prime Utilities Berhad
-- http://www.prime.com.my/-- is a property development company  
listed on the Main Board of Bursa Malaysia Securities Berhad.  
The principal activities of the Prime Group of companies is the
development of a 1,373 acres township known as Alam Perdana in
the Mukim of Ijok, District of Kuala Selangor.  The township of
Alam Perdana will comprise of 15,630 units of bungalows, semi-
detached, single and double-storey linked houses, low-cost
flats, medium-cost apartments, condominiums, shop offices and
retail complexes, when fully developed.  After booking losses
since 1999, the Company has continuously taken necessary steps
to improve its financial position.  In 2005, Bursa Malaysia
Securities Berhad has publicly reprimanded and imposed fines
twice on the Company for failing to submit its financial reports
on time.


PSC INDUSTRIES: Affin ACF Assets Over MYR5-Million Claim
--------------------------------------------------------
Affin ACF finance Berhad on June 29, 2006, obtained summary
judgment against PSC Industries Berhad in respect of a claim of
MYR5,077,756 plus other costs.

The Company said it would appeal against the Deputy Registar's
decision.

Furthermore, the Company disclosed that it is evaluating various
issues formulating a regularization plan for the Group pursuant
to Practice Note 17/2005.  The Company said it is monitoring its
financial and operating performance closely to improve its
financial solvency.

                  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.  


ROCON EQUIPMENT: Court Issues Wind-Up Order
-------------------------------------------
The Shah Alam High Court, on July 4, 2006, issued a wind-up
order against Rocon-Ortego Sdn Bhd and appointed Robert Teo Keng
Tuan of RSM Nelson Wheeler Corporate Advisory Services Sdn Bhd
as liquidator.

The wind-up petition was filed by Rocon Equipment Sdn Bhd on
March 31, 2006.


TAP RESOURCES: Defaults on RCSLS Balance Redemption
---------------------------------------------------
The 35,716,932 three-year nominal value 5% coupon Redeemable
Convertible Secured Loan Stocks totaling MYR35,716,932 issued on
June 30, 2003, to the three RCSLS holders --  AmBank Berhad,
AmMerchant Bank Berhad and Hong Leong Bank Berhad -- in respect
of the various Trust Deeds entered into between TAP Resources
Berhad and AmTrustee Berhad has matured on June 30, 2006.

As of June 30, 2006, a total of MYR3,982,551 RCSLS has been
converted into new ordinary shares of TAP.  The Company has
defaulted in the redemption of the balance of MYR31,734,381
RCSLS.  It has also defaulted in the payment of interests,
default interests and overdue interests totaling approximately
MYR3.1 million.

AmTrustee Berhad may at its discretion and without notice
institute these proceedings as it may think fit against the
Company to enforce repayment of the balance RCSLS and the
performance of any provisions under the Trust Deeds or of the
Security Documents.  The Trustee may also pursue the rights and
remedies available under the general law or under the Trust
Deeds to enforce the rights of the RCSLS Holders against the
Company.

                   About TAP Resources Berhad

TAP Resources Berhad is principally engaged in property
development.  Its other activities include general contracting;
manufacturing and general trading of building materials,
construction chemicals, ready mixed concrete and non-baked
bricks; installing air-conditioners, process control and switch
gear automation; selling of electrical goods; and investment
holding.  The Group operates wholly in Malaysia.    

As of April 30, 2006, the Company registered a net loss of
MYR3.57 million and a net current deficit of MYR48.56 million.


TEXCHEM RESOURCES: Dissolves Another Dormant Unit
-------------------------------------------------
Texchem Resources Berhad on July 1, 2006, dissolved its wholly
owned subsidiary, Texchem-Pack (Penang) Sdn Bhd.

As reported by the Troubled Company Reporter - Asia Pacific,
Texchme Resources, on March 25, 2005, applied to voluntarily
wind up Texchem-Pack.  The Company's members approved the
petition on March 23, 2006.

                 About Texchem Resources Berhad

Headquartered in Penang Malaysia, Texchem Resources Berhad
-- http://www.texchemgroup.com/-- is principally engaged in  
trading in industrial chemicals and other products. Other
activities include manufacturing of family care products and
household insecticides and distribution and marketing of a wide
range of consumer and family care products; manufacturing and
marketing of raw surimi, fishmeal, feedmeal and seafood
products; manufacturing and selling of packaging products forthe
electronics, electrical, semiconductor and disk drive industries
and investment holding.  The Group's operations are located in
Malaysia,Thailand, Singapore, Indonesia, China, Vietnam, Myanmar
and Italy.

Texchem is currently undergoing a financial rationalization and
restructuring program, which involves the disposal of a number
of dormant subsidiaries.


UNITED CHEMICAL: Members Adopt 2005 Audited Annual Accounts
-----------------------------------------------------------
Members of United Chemical Industries Berhad reviewed and
adopted the Company's Audited Statutory Financial Statements for
the year ended December 31, 2005, together with the Directors'
and Auditors' Reports at the 42nd Annual General Meeting held on
June 30, 2006.

Messrs Folk DFK & Company was reappointed as auditors at a fee
to be agreed upon by the board of directors.  The members agreed
that Folk DFK will hold office until the conclusion of the next
annual general meeting.

Moreover, the Company's shareholders re-elected as directors:

   * Wong Lee Peng;
   * Nik Fazila Binti Nik Mohamed Shihabuddin;
   * YBhg Tan Sri Abdul Aziz Abdul Rahman; and
   * YBhg Tan Sri Dato Sri Abg Ahmad Urai Bin Datu Hakim Abg Hj
     Mohideen.

             About United Chemical Industries Berhad

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

The Group has ceased its manufacturing operations and under the
proposed corporate restructuring exercise, the listing status
will be assumed by a new company, which will have a core
business of property development and related activities.


WEMBLEY INDUSTRIES: Unveils 13th AGM Results
--------------------------------------------
Wembley Industries Holdings Berhad's shareholders passed all
resolutions tabled at the Company's 13th Annual General Meeting
on June 30, 2006.

During the meeting, the Company's shareholders:

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

   -- re-elected Dato' Stanley A/L Isaacs who retires in
      accordance with Article 91 of the Company's Articles of
      Association, as Director of the Company;

   -- re-elected Liew Chie Chung who retires in accordance
      with Article 96 of the Company's Articles of Association,
      as Director of the Company; and

   -- reappointed Messrs Ernst & Young as Auditors of the
      Company and to authorize the Directors to fix their
      remuneration.

           About Wembley Industries Holdings Berhad

Headquartered in Sarawak Malaysia, Wembley Industries Holdings
Berhad is a developer of commercial properties and investment
holding.  Its other activities are the development of the inter-
state bus and taxi terminal, the retail podium and the budget
hotel.

The Company has been placed under the Practice Note 4 category
due to its tight cash flow position.  On January 7, 2003,
Malaysia's Foreign Investment Committee approved the Company's
regularization plan.  Subsequently, on April 7, 2003, the FIC
revised its approval to include the possible participation of
Daewoo Corporation, the former turnkey contractor of Plaza
Rakyat Project in the Company's Proposed Debt Restructuring.  
The Company's ability to continue as a going concern hinges on
the successful implementation of the Scheme.

As of March 31, 2006, the Company's balance sheet revealed total
assets of MYR422,729,000 and total liabilities of
MYR1,214,178,000, resulting in a MYR791,749,000 stockholders'
equity deficit. The Company's accumulated losses as of March 31,
2006, have reached MYR1,063,555,000.


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

ATLAS CONSOLIDATED: Postpones ASM to Sept. 6
--------------------------------------------
In a disclosure to the Philippine Stock Exchange, Atlas
Consolidated Mining & Development Corp. informs that it has
postponed its annual stockholders' meeting, which was initially
scheduled on July 31, 2006, to Sept. 6, 2006, at 10:00 a.m., at
the Valle Verde Country Club, Oranbo, Pasig City.

The Company says that the delay is due to its continued
corporate restructuring together with its subsidiaries, which
will be included in the meeting's agenda and need to be acted
upon by shareholders.

The Company has set July 18, 2006, 12:00 p.m. as the record date
when its stock and transfer books will be closed.  Only
stockholders of record as of that date based on the
stockholders' list to be submitted by the Company's stock &
transfer agent, Stock Transfer Service, Inc., will be entitled
to notice of, and to vote at, the meeting.

                          *     *     *

Headquartered in Mandaluyong City, Philippines, Atlas
Consolidated Mining and Development Corporation was established
through the merger of assets and equities of three Soriano-
controlled pre-war mines, the Masbate Consolidated Mining
Company, IXL Mining Company and the Antamok Goldfields Mining
Company.  The Company is engaged in mineral and metallic mining
and exploration that primarily produces copper concentrates and
gold with silver and pyrites as major by-products.  The
Company's copper mining operations are centered in Toledo City,
Cebu, where two open pit mines, two underground mines and
milling complexes (concentrators) are located.  The Cebu copper
mine ceased operations in 1994.  Activities after the shutdown
were limited to safeguarding and maintaining the property, plant
and equipment at the minesite.  The closure has brought huge
losses to the mining firm.

In January 2004, Atlas decided to rehabilitate the company and
its assets since copper and nickel prices have recovered.

Recently, a feasibility study to reopen the Cebu mine was
completed and the Company is presently in negotiations to raise
the necessary finance to commence rehabilitation.  The study
concluded that the reopening of the Toledo mines was viable.
On February 23, 2006, the TCR-AP reported that Atlas signed an
agreement with Crescent Asian Special Opportunities Portfolio,
which would buy part of the Company's debts convertible into
stock, and would invest PHP1.69 billion into Carmen Copper
Corporation in exchange for a 34% stake.

For now, the Company said that it will continue, through its
debts-for-equity swap agreement with Alakor Corporation, to
reduce its liabilities and debts to manageable levels.  It also
intends to rationalize its asset portfolio, including a possible
sale of obsolete and unproductive assets.

According to a TCR-AP report on June 1, 2006, for the year
ending Dec. 31, 2005, the Company reported a capital deficiency
of PHP3.035 billion.  Moreover the Company's auditor, Jaime F.
Del Rosario, of Sycip Gorres Velayo, has raised substantial
doubt on the Company's ability to continue as a going concern.


ATLAS CONSOLIDATED: Enters Into Equipment Deal with Marubeni
------------------------------------------------------------
Atlas Consolidated Mining & Development Corp. informs the
Philippine Stock Exchange that its subsidiary, Carmen Copper
Corp., which operates its Toledo Copper Mines in Cebu, signed a
further supplementary Deferred Payment Sales Agreements with
Japan's Marubeni Corp. to procure additional equipment worth
some PHP263.9 million.

The Company had signed an initial DPSA last month for equipment
worth approximately PHP475.02 million.  The terms of both
agreements provide for a 40% down payment, with the remaining
60% to be remitted on a deferred basis with interest accruing at
the rate of 3 months Libor +2.0%.

Atlas expects to receive the heavy mining equipment in November
this year, in completion of open-pit plant requirements for
excavating and trucking operations during the initial phase of
its mine rehabilitation.

                          *     *     *

Headquartered in Mandaluyong City, Philippines, Atlas
Consolidated Mining and Development Corporation is engaged in
mineral and metallic mining and exploration that primarily
produces copper concentrates and gold with silver and pyrites as
major by-products.  The Company's copper mining operations are
centered in Toledo City, Cebu, where two open pit mines, two
underground mines and milling complexes (concentrators) are
located.  The Cebu copper mine ceased operations in 1994.  

In January 2004, Atlas decided to rehabilitate the company and
its assets since copper and nickel prices have recovered.  A
recent feasibility study to reopen the Cebu mine was completed
and the Company is presently in negotiations to raise the
necessary finance to commence rehabilitation.  The study
concluded that the reopening of the Toledo mines was viable.

On February 23, 2006, the TCR-AP reported that Atlas signed an
agreement with Crescent Asian Special Opportunities Portfolio,
which would buy part of the Company's debts convertible into
stock, and would invest PHP1.69 billion into Carmen Copper
Corporation in exchange for a 34% stake.

According to a TCR-AP report on June 1, 2006, for the year
ending Dec. 31, 2005, the Company reported a capital deficiency
of PHP3.035 billion.  Moreover the Company's auditor, Jaime F.
Del Rosario, of Sycip Gorres Velayo, has raised substantial
doubt on the Company's ability to continue as a going concern.


PILIPINO TELEPHONE: Plans to Raise Local Wireline Rates
-------------------------------------------------------
Pilipino Telephone Corp. plans to increase its rates for local
wireline services after filing an application for a 7% rise in
its currency exchange rate adjustment with the National
Telecommunications Commission, ABS-CBN News reports, citing the
Manila Times.

Due to the currency adjustment, the Company said it may raise or
lower its local service charges by 1% for every PHP0.10 upward
or downward change in current exchange rates.  The U.S. dollar
cost Piltel around PHP52.30 against the 1983 PHP9.471-base rate
as of May 31, 2006, ABS-CBN News relates.

                            About PilTel

Headquartered in Makati City, Philippines, Pilipino Telephone
Corporation provides cellular mobile telephone service provider,
as well as provides fixed line telephone services and paging
services to Filipino customers.  In the past seven years, Piltel
was on the brink of bankruptcy with its seemingly insurmountable
debt, continuous losses, outmoded service and dwindling
subscriber base.

The Troubled Company Reporter - Asia Pacific reported on
February 28, 2006, that PilTel recorded a net income of
PHP13.5 billion for fiscal year 2005, compared to a profit of
PHP9.8 billion in 2004.  PilTel's continued profitability has
allowed it to return to a positive stockholders' equity, after
three years of a negative position.  The capital deficit has
also been substantially reduced to PHP32.3 billion in 2005, from
PHP45.8 billion in 2004.

                          *     *     *

As of March 31, 2006, PilTel acknowledges that it has not
complied with the terms of convertible bonds with a principal
amount of US$0.7 million -- approximately US$0.9 million
redemption price at the option of the holders.  Accordingly, the
amount was presented as part of the current portion of interest-
bearing financial liabilities.

PilTel may not be able to restructure or otherwise pay the
claims of its unrestructured debt.

However, PilTel says that default on and acceleration of its
unrestructured indebtedness does not create a cross-default
under its restructured indebtedness or any indebtedness of PLDT.

As stated in its 2005 annual report, PilTel's non-participating
creditors may take forceful measures to enforce their claims,
and it is possible that the Company would be required to submit
to a court-supervised rehabilitation proceeding or an
involuntary insolvency proceeding seeking liquidation.  All of
PilTel's creditors that participated in the debt restructuring
agreed that they would submit the Company to a rehabilitation
proceeding in those circumstances and petition for the adoption
of a plan of rehabilitation that includes the financial terms of
the debt-restructuring plan.


STENIEL MANUFACTURING: To Meet with Creditors on Restructuring
--------------------------------------------------------------
Steniel Manfuacturing Corp. disclosed to the Philippine Stock
Exchange that the management of Steniel (Netherlands) Holdings
B.V. is currently seeking to meet with the Company's creditor
banks in order to restructure a PHP700-million debt, which now
stands at PHP850 million after accrued interest.  However, no
date for the meeting has been set.  The Company will release
details of its proposed 10-year restructuring plan once it is
approved by creditors.

Steniel Manufacturing seeks to resolve the current impasse with
its creditors, which has affected nationwide operations, in
order to prevent a further decline of the Company's situation.

                   About Steniel Manufacturing

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

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

                          *     *     *

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


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

HONDAI ENGINEERING: Creditors Must Prove Debts by July 14
---------------------------------------------------------
Hondai Engineering Private Limited notifies parties-in-interest
of its intention to declare dividend to creditors.

In this regard, the Company's liquidator will be receiving
proofs of debt from the Company's creditors until July 14, 2006.

Contact: Kamala Ponnampalam
         Assistant Official Receiver
         The URA Centre (east wing)
         45 Maxwell Road #06-11
         Singapore 069118


KEAT HONG: To Hold Members' Final Meeting on July 28
----------------------------------------------------
Keat Hong Holding Pte Limited will hold a final meeting for its
members on July 28, 2006, at 11:00 a.m., at 1 North Bridge Road
#13-03, at High Street Centre, Singapore 079094.

During the meeting, Liquidator Tay Joo Soon will discuss the
manner on the Company's wind-up and how its property was
disposed.

Contact: Tay Joo Soon
         Liquidator
         1 North Bridge Road #13-03
         High Street Centre
         Singapore 079094


LIM PIN: Members Final General Meeting Set on July 28
-----------------------------------------------------
The final meeting of the members of Lim Pin Kong Investment Pte
Limited will be held at 1 North Bridge Road #13-03, High Street
Centre in Singapore on July 28, 2006, at 10:30 a.m.

During the meeting, members will receive the final account on
the Company's wind-up process from Liquidator Tay Joo Soon.

Contact: Tay Joo Soon
         Liquidator
         1 North Bridge Road #13-03
         High Street Centre
         Singapore 079094


LKH PROJECT: Creditors' Proofs of Debt Due on July 31
-----------------------------------------------------
The creditors of LKH Project Management Pte Limited are required
to prove their debts before the Company's liquidators by
July 31, 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


REFCO INC: Chap. 11 Trustee Taps Skadden Arps as Special Counsel
----------------------------------------------------------------
Marc S. Kirschner, the Chapter 11 trustee of the estate of Refco
Capital Markets, Ltd., asks the U.S. Bankruptcy Court for the
Southern District of New York for authority to employ Skadden,
Arps, Slate, Meagher & Flom LLP, as his special counsel.

Mr. Kirschner says that Skadden Arps provides various legal
services to the Debtors, including Refco Capital Markets, Ltd.

In this regard, Mr. Kirschner, wants Skadden to continue
providing some, but not all, of those services to RCM,
including:

   (a) continuing advice with respect to the litigation matters
       that were stayed pursuant to the Court's November 28,
       2005 order and the Refco Securities Lawsuit;

   (b) claims resolution where the claim has been asserted
       against one or more Other Refco Companies as well as RCM
       -- other than claims by other Chapter 11 Debtors against
       RCM;

   (c) matters involving ACM Advanced Currency Markets S.A., and
       RCM's ownership interest in ACM;

   (d) matters involving consolidated tax returns filed or to be
       filed by the Chapter 11 Debtors;

   (e) recoveries against third parties arising under "cross
       margin" agreements, whether or not involving the Other
       Chapter 11 Debtors;

   (f) pending litigation between Cargill, Incorporated and the
       Chapter 11 Debtors;

   (g) in consultation with Bingham McCutchen LLP, the Trustee's
       general bankruptcy counsel, the prospective settlement
       between the Refco Companies and BAWAG P.S.K. Bank fur
       Arbeit und Wirtschaft und Osterreichische Postsparkasse
       Aktiengesellschaft and its affiliates;

   (h) any matters remaining in the preference action -- or
       enforcement of the settlement -- against the SPhinX
       Funds;

   (i) continuing advice with respect to the pending
       investigations by the United States Department of Justice
       and the Securities and Exchange Commission; and

   (j) motions, applications, answers, orders, reports and
       papers necessary to the administration of the RCM estate
       other than in connection with matters with respect to
       which RCM wishes to take a position different than the
       position taken by the Other Chapter 11 Debtors.

Among other things, Skadden will not be rendering services to
RCM with respect to:

   (a) whether and on what terms RCM or its creditors
       participate in a Chapter 11 plan with the Other Chapter
       11 Debtors;

   (b) claims between RCM and the Other Chapter 11 Debtors
       arising out of intercompany transactions; and

   (c) advice with respect to "corporate actions" that may be
       necessary or desirable relating to various securities
       held by RCM.

With respect to intercreditor and intercompany issues in the
Chapter 11 cases, Skadden will:

    -- not, without a waiver from RCM, represent the Other
       Chapter 11 Debtors in litigation against RCM;

    -- continue to provide information and analysis to the
       Chapter 11 Debtors regarding intercompany claims;

    -- continue to represent the Other Chapter 11 Debtors in
       formulating a plan of reorganization; and

    -- continue to investigate intercompany claims as provided
       in the Engagement Letter.

Skadden and the Debtors have previously agreed that the firm's
bundled rate structure will apply to these cases.  Skadden's
hourly rates under the bundled rate structure range from:

       $585 to $830 for partners;
       $560 to $640 for counsel;
       $295 to $540 for associates; and
        $90 to $230 for legal assistants and support staff.

Skadden will allocate its fees and disbursements among the
various Chapter 11 Debtors, including RCM, to charge each estate
appropriately for the services provided on behalf of the estate.  
Skadden, RCM and the Other Refco Debtors have agreed that:

     * 2/3 of the fees and expenses Skadden incurred in
       connection with the "stockbroker" litigation culminating
       in the order appointing the RCM Trustee will be allocated
       to RCM and 1/3 to the Other Refco Debtors; and

     * Skadden's other fees incurred appropriately on behalf of
       all the Refco Companies will be allocated 40% to RCM and
       60% to the Other Refco Debtors.

J. Gregory Milmoe, a member of Skadden, assures the Court that
the firm does not have any connection with the Debtors, their
affiliates, their creditors, any other party-in-interest, their
attorneys and accountants, and the United States Trustee or any
person employed in the Office of the United States Trustee.  
Moreover, Skadden is a disinterested person as defined under
Section 101(14) of the Bankruptcy Code and does not represent
any interest that is adverse to the estates of the Chapter 11
Debtors, including RCM.

                         About Refco Inc.

Based in New York, New York, Refco Inc.
-- http://www.refco.com/-- is a diversified financial services  
organization with operations in 14 countries and an extensive
global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore.  In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global
clearing firms for derivatives.

The Company and 23 of its affiliates filed for Chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  
Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported $16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for Chapter 11 protection on June 6, 2006.


REFCO INC: Securities Advisory Panel Formed, Trustee Says
---------------------------------------------------------
Marc S. Kirschner, the Chapter 11 trustee of the estate of Refco
Capital Markets, Ltd., reports that an RCM Securities Advisory
Committee has been formed pursuant to an order by the United
States Bankruptcy Court for the Southern District of New York
establishing procedures for the sale of a limited amount of
securities.

The members of the RCM Securities Advisory Committee are:

   * Fintech Advisory Inc.;
   * IDC Financial S.A.;
   * RB Securities Limited; and
   * VR Advisory Services, Ltd.

Judge Robert Drain had previously authorized the RCM Trustee to
sell securities considered "volatile" for as much as
US$150,000,000 of the company's assets to prevent further loss
of value.  Judge Drain also permitted the sale of holdings
valued at less than $200,000 without additional court approval.

All four members of the RCM Securities Advisory Committee assert
positions as securities customers, Mark W. Deveno, Esq., at
Bingham McCutchen LLP, in New York, relates.

Pursuant to the Sale Order, the RCM Securities Advisory
Committee was anticipated to include four institutions asserting
positions as securities customers and one institution asserting
positions as a foreign exchange customer.  Mr. Deveno says the
RCM Trustee has contacted RCM's foreign exchange customers that
were actively involved in the negotiation of the Sale Order, but
none of those foreign exchange customers has been willing to
serve on the Advisory Committee.

The RCM Trustee contemplates allowing foreign exchange customers
to designate one party to receive notices of sales and to be
authorized to object to sales as if a member of the Advisory
Committee, Mr. Deveno adds.

                        About Refco Inc.

Based in New York, New York, Refco Inc.
-- http://www.refco.com/-- is a diversified financial services  
organization with operations in 14 countries and an extensive
global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore.  In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global
clearing firms for derivatives.

The Company and 23 of its affiliates filed for Chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  
Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported $16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for Chapter 11 protection on June 6, 2006.


* Singapore Bankruptcies Fall 19% in May
----------------------------------------
Figures from the Ministry of Law revealed that bankruptcy
filings in Singapore dropped 19% in May this year from the same
period last year, Reuters reports.  

However, the number of bankruptcy orders for both corporate and
individual petitions climbed 65% to 280 in May from 170 in
April, the reports says. The total number of undischarged
bankrupts was 23,998.

Although the May figures are well below the six-month high of
381 in March 2006, analysts warned that further rise in
bankruptcy filings and orders will continue to hurt the economy,
Reuters relates.

According to analysts, bankruptcies are a lagging indicator of
economic activity and will fall as employment rises.

The Government hopes that the 45,000 new jobs created in the
first quarter will help curb bankruptcy applications, Reuters
says.


* ASPAC Telecom Companies Face Bumpy Road Ahead, S&P Says
---------------------------------------------------------
Telecommunications operators in the Asia Pacific will face
increasing risks as their business profiles change,
although the overall outlook for the industry is stable,
Standard & Poor's Ratings Services said in a published report
titled "Industry Report Card: Mixed Signals For Asia-Pacific
Telecommunications Companies."

"Deregulation, pressures on profitability from the change in the
revenue mix to lower margin new services, higher capital-
spending requirements, and declining market share are some
challenges that Asia-Pacific telecom operators will face in the
near to medium term," said Standard & Poor's credit analyst
Yasmin Wirjawan.  "Given their need to deliver shareholder
value, these operators' ability to balance these risks and
maintain their strong financial flexibility will be key to their
future credit quality."

Nevertheless, most telecom operators in the region have
maintained stable credit quality in the past six months,
benefiting from years of solid performance backed by high entry
barriers, dominant market shares, and conservative financial
profiles.  These operators also exhibit strong business profiles
and improved financial risk profiles, placing them in a better
position to weather any volatility, according to the report.  

In line with global trends, Asia-Pacific telecom providers have
to deal with declining growth in fixed-line services.  Growth in
this segment has stagnated due to substitution by wireless
services and rationalization by increased broadband penetration.
This is, however, partially offset by greater earnings
diversity.  Standard & Poor's expects capital spending to
increase in this segment as fixed-line operators replace their
public switched telephone networks with next-generation
networks.

Slowing wireless subscriber growth in the saturated developed
markets is likely to lead to more intense pricing competition in
countries such as Japan, Singapore, and Australia.  On the other
hand, emerging Asia-Pacific markets, including India, China, and
Indonesia, will offer greater growth prospects, as their
penetration rates remain relatively low.

The Asia-Pacific telecom industry has witnessed major
consolidation over the past few years.  Standard & Poor's
expects M&A activity to remain brisk in the near term, given the
importance of economies of scale, particularly in fragmented
markets, such as wireless operators in India and cable TV
companies in Korea.

"Some operators are also seeking opportunities for expansion in
the region, given their significant cash balances and increasing
need to diversify earnings," said Ms. Wirjawan.  Such operators
include Singapore Telecommunications Co. Ltd., Telekom Malaysia
Berhad, and SK Telecom Co. Ltd.




                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
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Copyright 2006.  All rights reserved.  ISSN: 1520-9482.
   
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