TCRAP_Public/060710.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

              Monday, July 10, 2006, Vol. 9, No. 135

                            Headlines

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

AA WORLDWIDE: Liquidation Petition Hearing Slated for August 24
ADVANCE INTERIORS: Schedules Final General Meeting on July 12
ANCHETA HOLDINGS: Court to Hear Liquidation Bid on July 20
AUTOCOM PTY: Winds Up Business Operations
C&W PTY: Appoints Official Liquidator

CARPESI PTY: Court Issues Wind-Up Order
COMSTAFF PTY: Liquidator to Give Wind-Up Report on July 12
DEMENER PTY: Undergoes Voluntary Wind-Up
EDDY'S CARPET: Liquidates Company's Business
FAMILY CONTRACTORS: Hearing of CIR's Liquidation Bid Set July 13

FORTESCUE METALS: Trading Suspension Remains as Fund Talks Go On
FOX MANUFACTURING: Court Hears Liquidation Petition Today
GENERAL MORTGAGE: Faces Liquidation Proceedings
HUON CORPORATION: To Sell Empire Rubber, Administrator Says
INCISE TECHNOLOGIES: Court Enters Wind-Up Order

IVYCROSS INVESTMENTS: To Declare Dividend on July 11
JON LIMITED: Liquidation Application Hearing Fixed on July 20
LEGACY HOMES: Liquidation Process Commenced
OLFACTORY SENSATIONS: Appoints Joint Liquidators
PROFESSIONAL KITCHENS: Court to Hear Liquidation Bid on July 20

PROVINCIAL FINANCE: Investors Will Get Money Back in Sept. 2006
QANTAS AIRWAYS: Signs Code-Share Agreement with Mexicana
RAIDA PTY: Liquidator To Give Wind-Up Report on July 11
RSG BEACHMERE: Enters Voluntary Liquidation
SERENE LIFE: Members Opt to Voluntarily Liquidate

SHEMAPEL PTY: Liquidator to Present Wind-Up Report
SMART COMMUNICATIONS: To Declare a Final Dividend
ST. GEORGE GATE: Members to Get Liquidation Report on July 12
T.M. FIFITA: Liquidation Bid Hearing Fixed on July 27
TATAI CONTRACTING: Liquidation Proceedings Begin

TELSTRA CORPORATION: Cuts AU$10K from Workers' Pay, Union Says
TRES CHIC: Undertakes Voluntary Liquidation
WALSH & ASSOCIATES: Creditors Agree to Halt Business Operation
ZEUS IMPORTS: Declares Dividend for Priority Creditors


C H I N A   &   H O N G  K O N G

ASIA ALUMINUM: S&P Cuts BB Long Term Credit Rating to BB-
ASIAN AREA: Intends to Pay Preferential Dividend
ATLANTA SPORTSWEAR: Joint Liquidators Cease to Act for Company
BEAUTY RISE: Creditors' Proofs of Claim Due on July 19
BON HONG SHIPPING: First Creditors' Meeting Slated for July 26

BONRAINBOW LIMITED: Liquidator to Receive Claims Until July 19
COLOUR BRIDGE: Creditors Must Prove Debts by July 19
EXCELORY LIMITED: Court to Hear Wind-Up Petition on August 16
FAR EAST TRANSPORTATION: Faces Wind-Up Proceedings
GUANGDONG KELON: CSRC Bare Fraud, Investors Files Lawsuits

HOPEWELL XINTANG: Creditors Must Prove Debts by August 7
JCPMUSIC.COM: Creditors' & Contributories' Meetings Set July 13
ROBERTSON PRODUCTS: Liquidator to Present Wind-Up Report
SINO UNION: Creditors' Meeting Set on July 26
* China to Auction CNY1.3-Billion Bad Loans


I N D I A

GENERAL MOTORS: Studying US$3-Billion Tie-Up with Renault-Nissan
NATIONAL TEXTILE: Awaits Final Approval of Surplus Land Sale


I N D O N E S I A

DIRGANTARA INDONESIA: Ex-Workers March to Demand Pension Payment


J A P A N

EHOMES INC: President Pleads Guilty to Inflating Capital
LOPRO CORP: Fitch Affirms BB Long-Term Credit Rating
SANYO ELECTRIC: Plans to Close Four Battery Plants by 2007


K O R E A

VK CORP: Declared Bankrupt with KRW1.78-Billion Debt


M A L A Y S I A

CONSOLIDATED FARMS: To Hold 23rd AGM on July 26
CONSOLIDATED FARMS: Default Amount Hits Over MYR147 Million
FCW HOLDINGS: Working Out Financial Revamp Proposal
GEORGE TOWN: Unveils Restructuring Developments
LITYAN HOLDINGS: To Appeal SC's Rejection of Restructuring Plan

MALAYSIA AIRLINES: To Lay Off 6,000 Staff in Two Years
MALAYSIA AIRLINES: Receives More Awards and Accolades
MENTIGA CORPORATION: Implements Restructuring Exercises
METROPLEX BERHAD: In Talks with Lenders on Scheme of Arrangement
MYCOM BERHAD: Inks Additional Restructuring Agreements

PARACORP BERHAD: Reviews Options to Restructure Business
SETEGAP BERHAD: Proposed Land Property Sale Wins SC's Favor
SETRON (MALAYSIA): Adviser Lays Out Terms of Revamp Proposal


P H I L I P P I N E S

ACCESS WORLDWIDE: Posts US$1.2 Million Net Loss in First Quarter
ACCESS WORLDWIDE: Sells Telemanagement Services for US$10.5 Mil
ACCESS WORLDWIDE: Gets Default Confirmation from CapitalSource
ACCESS WORLDWIDE: Issues Promissory Note & Warrants for $2 Mil.
FEDDERS CORPORATION: Posts US$62 Million Net Loss in 2005

PHILCOMSAT HOLDINGS: CA Prohibits SEC from Intervening in Case
VITARICH CORP: Aims to Break Even This Year


S I N G A P O R E

ASIALEC SINGAPORE: Creditors' Proofs of Debt Due on August 7
BAAN ASIA: To Consider Liquidator's Resignation Plan
BAILY CLADDING: Liquidator to Discuss his Resignation on July 21
LINDETEVES-JACOBERG: Chief Executive Officer Steps Down
LINDETEVES-JACOBERG: Welcomes New Chief Operating Officer

RAYNEON INDUSTRIES: Creditors' Proofs of Claim Due on August 5
REFCO INC: Creditors Committee Wants Respondents to Present Docs
REFCO INC: Chap. 11 Trustee Wants Capstone as Financial Advisor
REFCO INC: Court Says SPhinX Need Not Comply with Subpoenas


T H A I L A N D

CENTRAL PAPER: Operations on Hold, Planner Seeks Solutions
TONGKAH HARBOUR: Seeks to List ADRs With U.S. Stock Exchange

     - - - - - - - -

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

AA WORLDWIDE: Liquidation Petition Hearing Slated for August 24
---------------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against AA Worldwide Machinery Spares Ltd on August 24, 2006, at
10:00 a.m.

Skelton Tomkinson Ltd filed the petition before the Court on
May 24, 2006.

Contact: C. J. Lucas
         Offices of Lucas & Mabin, Solicitor
         109 Great South Road, Greenlane
         Auckland, New Zealand


ADVANCE INTERIORS: Schedules Final General Meeting on July 12
-------------------------------------------------------------
Members and creditors of Advance Interiors Pty. Limited will
convene on July 12, 2006, at 12:00 p.m. to hear Liquidator
Daniel Civil as he reports about the Company's wind-up
proceedings and property disposal.

The Troubled Company Reporter - Asia Pacific reported that the
members of Advance Interiors, on April 20, 2006, decided to wind
up the Company's operations, as it is unable to pay its debts
when they fall due.

The liquidator can be reached at:

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


ANCHETA HOLDINGS: Court to Hear Liquidation Bid on July 20
----------------------------------------------------------
Ab application to liquidate Ancheta Holdings Ltd will be heard
before the High Court of Auckland on July 20, 2006 at 10:00 a.m.  

The Commissioner of Inland Revenue filed the petition with the
Court on May 24, 2006.

Contact: Julia Dykema
         Inland Revenue Department
         Technical and Legal Support Group
         South Island Service Centre
         Ground Floor Reception, 518 Colombo Street
         P.O. Box 1782, Christchurch
         New Zealand
         Telephone: (03) 968 0809
         Facsimile: (03) 977 9853


AUTOCOM PTY: Winds Up Business Operations
-----------------------------------------
At an extraordinary general meeting held on June 6, 2006, the
members of Autocom Pty. Ltd. decided to wind up the Company's
business operations and distribute its assets.

Harvey John Gibson was appointed as liquidator.

All creditors who have claims against the Company have been
required to provide the liquidator with details of their claims.

The liquidator can be reached at:

         Harvey John Gibson
         Wise Lord & Ferguson Chartered Accountants
         1st Floor, 160 Collins Street
         Hobart Tasmania 7000
         Australia
         Telephone:(03) 6223 6155


C&W PTY: Appoints Official Liquidator
-------------------------------------
The members of C&W Pty Ltd convened on June 8, 2006, and decided
to voluntarily wind up the Company's business.

Kenneth Cameron McKenzie was appointed as liquidator.

The liquidator can be reached at:

         Kenneth Cameron McKenzie
         2/66 Burke Road
         Malvern East 3145
         Australia
         Telephone: 9563 5590


CARPESI PTY: Court Issues Wind-Up Order
---------------------------------------
The Supreme Court of New South Wales released a wind-up order
for Carpesi Pty Ltd. on June 1, 2006, and appointed
Steven Nicols as liquidator.

The liquidator can be reached at:

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


COMSTAFF PTY: Liquidator to Give Wind-Up Report on July 12
----------------------------------------------------------
A final meeting of the members of Comstaff Pty. Limited will be
held on July 12, 2006, at 10:00 a.m. for them to receive
Liquidator Anthony Stevens Smith's final account showing how the
Company was wound up and how its property was disposed of.

The liquidator can be reached at:

         Anthony Stevens Smith
         Ernst & Young
         Level 21, 91 King William Street
         Adelaide SA 5000
         Australia
         Telephone:(08) 8233 7111


DEMENER PTY: Undergoes Voluntary Wind-Up
----------------------------------------
Members of Demener Pty. Ltd. passed a special resolution to wind
up the Company voluntarily on June 8, 2006.

R. A. Ferguson was appointed as liquidator.

The liquidator can be reached at:

         R. A. Ferguson
         c/o Fergusons Chartered Accountants
         Level 8, 115 Grenfell Street
         Adelaide SA 5000
         Australia


EDDY'S CARPET: Liquidates Company's Business
--------------------------------------------
At a general meeting among the members and creditors of Eddy's
Carpet Services Pty. Limited on June 8, 2006, it was agreed that
a wind-up of the Company is appropriate and necessary.

In that regard, Nicholas Malanos was appointed as liquidator.

The liquidator can be reached at:

         Nicholas Malanos
         c/o Star, Dean-Willcocks
         Level 1, 32 Martin Place
         Sydney, New South Wales 2000
         Australia
         Telephone 9223 2944


FAMILY CONTRACTORS: Hearing of CIR's Liquidation Bid Set July 13
----------------------------------------------------------------
The Commissioner of Inland Revenue on May 24, 2006, filed a
petition to liquidate Family Contractors Ltd.

The application will be heard before the High Court of Napier on
July 13, 2006, at 10:00 a.m.  

Contact: Julia Dykema
         Inland Revenue Department
         Technical and Legal Support Group
         South Island Service Centre
         Ground Floor Reception, 518 Colombo Street
         P.O. Box 1782, Christchurch
         New Zealand
         Telephone: (03) 968 0809
         Facsimile: (03) 977 9853


FORTESCUE METALS: Trading Suspension Remains as Fund Talks Go On
----------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
July 7, 2006, Fortescue Metals Group Limited and Noble Group
Limited are in talks for an off-take and equity deal that would
secure financing for Fortescue's AU$2-billion Pilbara iron ore
project.

The TCR-AP report also noted that while it is in the final
stages of negotiations over a keystone financing deal for its
Pilbara undertaking, Fortescue asked the Australian Stock
Exchange to temporarily suspend trading of its shares.

In an update, Bloomberg News relates that Fortescue asked for
the trading suspension to be extended pending an announcement
early this week.

The West Australian says that Citigroup Australia's managing
director, Peter Bacchus, who is managing Fortescue's funding
drive, would only say that negotiations were continuing.

Market sources confirmed that Noble Group was the "frontrunner
but not the only runner" after edging out rival investment
proposals from a Russian group linked to steel baron Alexey
Mordashov's Severstal Steel and a state-backed Chinese party,
believed to be CITIC Group, the Sydney Morning Herald says.

The West Australian notes that Fortescue has been evaluating a
mix of options to provide up to AU$600 million in equity
funding:

   * the sale of equity in the Chichester Range project,

   * equity in Fortescue, and

   * equity in the proposed port, and rail infrastructure.

The Sydney Herald relates that once the equity component has
been finalized, the Company is expected to proceed with a "jumbo
bond" issue in the United States to provide its remaining
funding needs.  The bond issue may raise US$1 billion to
US$1.5 billion, the Sydney Herald cites market sources as
saying.

According to The West Australian, operations director Graeme
Rowley said that the Company hoped to have most funding in place
by early August as it pushes to meet its 2008 shipping target.

Dredging of Fortescue's facilities at Port Hedland is due to
start before July 2006 ends, the Sydney Herald notes.

                        About Fortescue

Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the  
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.

In 2005, Fortescue's chief executive officer, Andrew Forrest,
admitted to a AU$500-million blowout on the cost of port and
rail infrastructure in the Pilbara Project because
of price hikes for steel, fuel, construction materials and
contract labor.  The Company also disclosed that the hampered
progress of the Pilbara Project brings in the possibility that
the Company may not meet its ore delivery schedule and pushes up
costs at resource developments across Western Australia.  In May
2005, the Australian Stock Exchange pressured Fortescue to
explain matters about the project and to explain how the Company
would be able to dispose of its lower grade order for 95% of the
price obtained by rivals BHP Billiton and Rio Tinto for their
top-quality products.  The ASX then referred the matter to the
Australian Securities and Investments Commission, which
commenced a legal action against the Company.

The ASIC alleges that Fortescue is engaged in misleading and
deceptive conduct and has failed to comply with its continuous
disclosure obligations when it announced various contracts with
Chinese entities on Aug. 23 and November 5, 2004.  In
particular, Fortescue did not disclose that the Chinese parties
had not reached a concluded agreement on fundamental aspects of
the projects and they had merely agreed that they would in the
future jointly develop and agree on the "agreed" matters.  The
ASIC is seeking civil penalties of up to AU$3 million against
Fortescue.

Fortescue is targeting first production in its Pilbara Mine in
the first quarter of 2008.  However, it has not yet struck a
final financing deal with any party regarding the Project.


FOX MANUFACTURING: Court Hears Liquidation Petition Today
---------------------------------------------------------
An application to liquidate Fox Manufacturing Ltd will be heard
before the High Court of Auckland today, July 10, 2006, at 10:00
a.m.  

Mercer Stainless Ltd filed the petition with the Court on
June 6, 2006.

Contact: Kevin McDonald
         11th Floor, Global House  
         19-21 Como Street, Takapuna
         Auckland
         Telephone: (09) 486 6827
         Facsimile: (09) 486 5082


GENERAL MORTGAGE: Faces Liquidation Proceedings
-----------------------------------------------
The High Court of Christchurch hears a liquidation petition
against General Mortgage Nominees Ltd today, July 10, 2006.

The Commissioner of Inland Revenue filed the petition before the
Court on May 24, 2006.

Contact: Julia Dykema
         Inland Revenue Department
         Technical and Legal Support Group
         South Island Service Centre
         Ground Floor Reception, 518 Colombo Street
         P.O. Box 1782, Christchurch
         New Zealand
         Telephone: (03) 968 0809
         Facsimile: (03) 977 9853


HUON CORPORATION: To Sell Empire Rubber, Administrator Says
-----------------------------------------------------------
Huon Corp. will put Empire Rubber on the market and expects to
cut jobs, the Bendigo Advertiser reports.

As reported in the Troubled Company Reporter - Asia Pacific on
July 6, 2006, Huon Corp. has gone into voluntary administration
due to concerns about its financial situation, brought about by
failed operations after the Company purchased three factories
from Nylex Ltd. in December 2005 -- Empire Rubber, FRN and Mills
Elastomers.  The TCR-AP report cited Huon managing director John
Schulz as saying that the performance level of the three
businesses requires Huon Corp. to implement a restructuring
program.

A creditors meeting was held in Melbourne on July 7, 2006.

In an update, the Rural Press reports that the National Union of
Workers state secretary, Antony Thow was elected to a creditors'
committee during the meeting, which was attended by more than
100 Huon Corp. creditors.

The Bendigo Advertiser relates that during the meeting, the
Company's administrator, Tony Sims, revealed that the businesses
would be advertised for sale early this week.

"The strategy is to stabilize the business and put it on sale,"
Mr. Sims said.

According to the Bendigo Advertiser, a number of potential
buyers from Australia and abroad have already expressed interest
in buying the Bendigo-based car components manufacturer, Empire
Rubber, and its sister companies.

Despite confidence that a buyer will be found to bail out Empire
Rubber, Mr. Thow said that it was likely the company would start
offering redundancies, the report says.

John Irving, a partner in Mr. Sims' firm, agreed with respect to
the consideration of job losses, saying that it is on the
agenda.

Mr. Irving explains that "the first week has been about
stabilizing the business. . .in the next week there will be a
deeper review of the business and we will be looking at the
ongoing viability of the businesses."

However, Mr. Thow noted that it was too early to say how many
jobs would be lost or to detail the type of package that would
be offered to redundant workers, the Rural Press relates.

As noted in the TCR-AP report Mr. Thow said that for those who
will lose their jobs, the workers will fight to get 100 cents in
the dollar of their entitlements.

Mr. Thow had proxy votes to represent about 460 Huon workers at
the meeting, and was satisfied with the reports presented by the
administrator, the Bendigo Advertiser relates.

                         *     *     *

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.


INCISE TECHNOLOGIES: Court Enters Wind-Up Order
-----------------------------------------------
On June 8, 2006, the Supreme Court of New South
Wales entered an order appointing Christopher J. Palmer as
liquidator for Incise Technologies Pty. Limited.

The liquidator can be reached at:

         Christopher J. Palmer
         O'Brien Palmer
         Level 4, 23-25 Hunter Street
         Sydney, New South Wales 2000
         Australia


IVYCROSS INVESTMENTS: To Declare Dividend on July 11
----------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
February 17, 2006, members of Ivycross Investments Pty Limited
agreed to close the Company's business and appointed Kimberley
Andrew Strickland and Christopher Michael Williamson, of
SimsPartners, as liquidators.

In an update, Mr. Williamson discloses that the Company will
declare its first and final preferential dividend for its
creditors on July 11, 2006.

Creditors who were not able to prove their claims as of
June 27, 2006, will be excluded from sharing in the Company's
distribution of assets.

The liquidator can be reached at:

         Christopher Michael Williamson
         SimsPartners
         Level 12, Dwyer Durack House
         40 St George's Terrace,
         Perth, Western Australia 6000


JON LIMITED: Liquidation Application Hearing Fixed on July 20
-------------------------------------------------------------
An application to liquidate Jon Limited will be heard before the
High Court of Auckland on July 20, 2006, at 10:00 a.m.  

Accident Compensation Commission filed the petition with the
Court on April 26, 2006.

Contact: Dianne Lester
         Maude & Miller, Second Floor
         McDonald's Building
         Cobham Court, P.O. Box 50-555
         Porirua City, New Zealand


LEGACY HOMES: Liquidation Process Commenced
-------------------------------------------
The High Court of Rotorua will hear a liquidation petition
against Legacy Homes (BOP) Ltd today, July 10, 2006, at 10:45
a.m.

Burnings Ltd -- trading as Benchmark Building Supplies -- filed
the petition before the Court of Taurunga on June 1, 2006.

Contact: M. B. Beech
         Messrs Sharp Tudhope, Solicitors
         35 Grey Street
         Postal Address: P.O. Box 12-020, Tauranga
         New Zealand


OLFACTORY SENSATIONS: Appoints Joint Liquidators
------------------------------------------------
The members of Olfactory Sensations (Aust) Pty. Limited held a
meeting on June 7, 2006, and agreed to shut down the Company's
business operations.

The members appointed Christopher Michael Williamson and
Kimberley Andrew Strickland as liquidators for the Company.

The liquidators can be reached at:

         Christopher Michael Williamson
         Kimberley Andrew Strickland
         SimsPartners
         Level 12, 40 St George's Terrace
         Perth, Western Australia 6000


PROFESSIONAL KITCHENS: Court to Hear Liquidation Bid on July 20
---------------------------------------------------------------
The application to liquidate The Professional Kitchen Ltd will
be heard before the High Court of Auckland on July 20, 2006 at
10:00 a.m.  

The Accident Compensation Commission filed the petition with the
Court on April 26, 2006.

Contact: Dianne Lester
         Maude & Miller, Second Floor
         McDonald's Building
         Cobham Court, P.O. Box 50-555
         Porirua City, New Zealand


PROVINCIAL FINANCE: Investors Will Get Money Back in Sept. 2006
----------------------------------------------------------------
Provincial Finance Limited's investors who were affected by the
Company's collapse will get some of their money back in
September 2006, ShareChat News reports.

According to the New Zealand Press Association, Provincial
Finance's receiver, John Waller, said that there would be some
money going back to debenture-holders towards the end of July
2006, but the amount is uncertain.

"Over time we are hopeful of getting investors back most of, if
not all, of their money but the caveat to that is how good is
the underlying book in terms of what we can recover," ShareChat
News cites Mr. Waller as telling the Southland Times.

Mr. Waller said that an aggressive approach was being taken to
recover loan debts that were in arrears.

As reported in the Troubled Company Reporter - Asia Pacific on
June 5, 2006, Perpetual Trust, as trustee for the Company's
issued debenture stock, recommended placing Provincial Finance
into receivership to protect the interests of the debenture
stock holders who have invested some NZ$300 million with it.

A draft unaudited statement of financial performance shows that
Provincial had a net loss before taxation of about NZ$54 million
for the year to March 2006, NZPA notes.

                   About Provincial Finance

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

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


QANTAS AIRWAYS: Signs Code-Share Agreement with Mexicana
--------------------------------------------------------
Qantas Airways has signed a code-share agreement with Mexicana
Airlines on 237 of the Mexican carrier's weekly services to
Mexico City, Cancun, Guadalajara, and San Jose del Cabo, subject
to government approval, the Australian Associated Press says.

The code-share agreement makes Mexico the 40th country to join
Qantas' international network effective August 1, 2006.

Qantas' group general manager sales and distribution, Rob Gurney
says the agreement is an important relationship for the airline,
expanding its network in the Americas and enabling Qantas to
offer Australian travelers a range of new travel opportunities
in Mexico.

Mr. Gurney further says that reciprocal benefits will include
baggage interlining and frequent flyer point accumulation when
traveling on Mexicana code-share flights with a Qantas flight
number.

We are also looking forward to offering Mexicana customers
access to Australia's biggest domestic network, the Northern
Territory News cites Mr. Gurney as saying.

Under the agreement, Mexicana would code-share on Qantas flights
from Los Angeles to Sydney, Brisbane and Melbourne, as well as
Qantas' new non-stop San Francisco-Sydney services, NT News
says.

                      About Qantas Airways

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

In 2003, Qantas began suffering the effects of the Iraq War and
the SARS outbreak, on top of other events like the 9/11
terrorist attacks, the Afghanistan war and the terror threats,
which lead to a downturn in bookings to other Asian countries,
and affected most of its European routes.  These affected other
areas of Qantas' business including Qantas Flight Catering,
Qantas Holidays and Australian Airlines.  Qantas started
reviewing, and widened, the range of initiatives it had put in
place following the triggering events.  These initiatives
included the reduction of staffing numbers through the use of
accumulated leave to the equivalent of 2,500 full-time employees
by June 2003 and by the equivalent of 1,000 employees between
July and September 2003; a restructuring program involving 1,000
redundancies, 400 permanent positions eliminated through
attrition and 300 permanent positions converted from full time
to part time; a freeze on capital and discretionary expenditure;
expansion of the leave without pay program; increased use of
part time workers; significant restructuring of work practices
and activities; and reduction of capital expenditure, including
retirement of some aircraft and deferral of delivery of new
aircraft.

In December 2003, Qantas unveiled its new low cost-carrier
airline, Jetstar Asia, which later failed to gain access to
crucial markets such as Indonesia and China.  In June 2005,
Qantas admitted it is still struggling to recover its investment
in Jetstar, despite having managed to lease out four of its
unused Airbus 320s.  Qantas went into another round of job cuts
in late June 2005, a move that was punctuated with more than 600
jobs slashed in the first half of its financial year, and yet
another one announced in February 2006 amidst uncertainty of
outsourcing the airline's heavy maintenance works overseas.

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


RAIDA PTY: Liquidator To Give Wind-Up Report on July 11
-------------------------------------------------------
A general meeting among members of Raida Pty. Limited will be
held on July 11, 2006, at 10:00 a.m., for them to hear
Liquidator Anthony M. Long's report regarding the Company's
wind-up activities and property disposal.

The liquidator can be reached at:

         Anthony M. Long
         c/o Boyce Chartered Accountants
         19 Montague Street
         Goulburn, Australia


RSG BEACHMERE: Enters Voluntary Liquidation
-------------------------------------------
On June 8, 2006, the members of RSG Beachmere Pty. Ltd.
passed a special resolution to wind up the Company and appointed
R.A. Ferguson as liquidator.

The liquidator can be reached at:

         R. A. Ferguson
         c/o Fergusons Chartered Accountants
         Level 8, 115 Grenfell Street
         Adelaide, SA 5000
         Australia


SERENE LIFE: Members Opt to Voluntarily Liquidate
-------------------------------------------------
After their extraordinary general meeting on June 7, 2006, the
members of Serene Life Global Pty. Limited decided to
voluntarily wind up the Company's operations.

Creditors nominated Peter Paul Krejci to act as liquidator at a
creditors' meeting held that same day.

The liquidator can be reached at:

         Peter Paul Krejci
         GHK Green Krejci
         Level 9, 179 Elizabeth Street
         Sydney, New South Wales 2000
         Australia


SHEMAPEL PTY: Liquidator to Present Wind-Up Report
--------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
February 2, 2006, that the members of Shemapel Pty Limited
agreed to wind up the Company's operations and distribute  
its assets.  I. C. Francis, of Taylor Woodings Chartered
Accountants, was then appointed as liquidator.

In an update, Shemapel notifies parties-in-interest that a final
meeting of members will be held on July 11, 2006, at 10:00 a.m.,
where the liquidator will present his final report regarding the
Company's wind-up operations.

The liquidator can be reached at:

         I. C. Francis
         Taylor Woodings
         Chartered Accountants
         Level 6, 30 The Esplanade
         Perth Western Australia 6000


SMART COMMUNICATIONS: To Declare a Final Dividend
-------------------------------------------------
M. W. Prentice and M. J. Robinson, as liquidators for Smart
Communications Group Limited, will declare a final dividend on
July 12, 2006, for creditors who have claims against the
Company.  However, creditors who were not able to submit their
proofs of claim, will be excluded from any distribution.

The liquidators can be reached at:

         M. W. Prentice
         M. J. Robinson
         PPB
         Level 15, 25 Bligh Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9233 4955
         Facsimile:(02) 9233 1310


ST. GEORGE GATE: Members to Get Liquidation Report on July 12
-------------------------------------------------------------
The members of St. George Gate & Fence Co. Pty. Limited will
hold a final meeting on July 12, 2006, at 10:00 a.m., to get an
account regarding the Company's wind-up and property disposal
from the Company's liquidator, D. I. Mansfield.

The liquidator can be reached at:

         D. I. Mansfield
         Liquidator
         c/o Moore Stephens
         Chartered Accountants
         Level 6, 460 Church Street
         North Parramatta
         New South Wales 2150
         Australia


T.M. FIFITA: Liquidation Bid Hearing Fixed on July 27
-----------------------------------------------------
The application to liquidate T.M. Fifita & Sons Ltd will be
heard before the High Court of Auckland on July 27, 2006 at
10:45 a.m.  

Commercial Factors Ltd filed the petition with the Court on
June 1, 2006.

Contact: R. L. Brennan
         Blackwells, Barristers & Solicitors
         Level Five, 235 Broadway
         Newmarket, Auckland
         New Zealand


TATAI CONTRACTING: Liquidation Proceedings Begin
------------------------------------------------
An application to liquidate Tatai Contracting Ltd will be heard
before the High Court of Auckland on August 24, 2006, at 10:45
a.m.  

Commercial Factors Ltd filed the petition with the Court on
June 2, 2006.  

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

Contact: R. L. Brennan
         Blackwells, Barristers & Solicitors
         Level Five, 235 Broadway
         Newmarket, Auckland
         New Zealand


TELSTRA CORPORATION: Cuts AU$10K from Workers' Pay, Union Says
--------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
June 22, 2006, Telstra Corporation will close work order
dispatch centers in Parramatta, Perth, Bendigo, and Toowoomba as
it moves away from a state-based system to a national model.

In an update, the Communications Electrical and Plumbing Union
says that more than 130 Parramatta dispatch operators, who
direct technicians to repair work, have been asked to re-apply
for 63 positions in Newcastle on Australian workplace agreements
paying them AU$10,000 a year less, the Australian IT reports.

According to the Sydney Morning Herald, Telstra could not
confirm numbers and denied a union allegation that workers who
applied for transfers to Newcastle would have to accept pay
cuts.  Telstra did confirm that many of the new jobs would be
"single-function rather than multi-function" and would be paid
as such.  

However, Telstra denied that staff would have to sign the
workplace agreements, the Herald says.

ABC News Online reports that Telstra plans to abolish more than
100 positions at the office and create 63 new jobs in Newcastle.

"We are not relocating jobs, we are creating new jobs in
Newcastle and Parramatta staff can choose to apply for those
jobs or other jobs within Telstra.  If not, they will receive a
generous redundancy package, ABC Regional Online News cites
Telstra representative Sarah McKinnon as saying.

Ms. McKinnon further says employees' salaries are evaluated
according to the enterprise agreement with the unions.

McKinnon explains that Telstra was developing a national repair
dispatch network "to reduce duplication."  Yet, she denies the
allegation that the restructuring has something to do with new
industrial laws.

                        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.


TRES CHIC: Undertakes Voluntary Liquidation
-------------------------------------------
Members of Tres Chic Designs Pty. Limited held a meeting on
June 7, 2006, and resolved to wind up the Company's business
operations.

G. A. Marx is the Company's liquidator.

The liquidator can be reached at:

         G. A. Marx
         Suite 601, 3 Waverley Street
         Bondi Junction
         New South Wales 2022
         Australia


WALSH & ASSOCIATES: Creditors Agree to Halt Business Operation
--------------------------------------------------------------
Creditors of Walsh & Associates (NSW) Pty. Ltd. met on
June 5, 2006, and agreed to commence voluntary liquidation for
the Company.  They appointed Roderick Mackay Sutherland as
liquidator.

The liquidator can be reached at:

         Roderick Mackay Sutherland
         Jirsch Sutherland
         Chartered Accountants
         Level 2, 84 Pitt Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9233 2111
         Facsimile:(02) 9233 2144


ZEUS IMPORTS: Declares Dividend for Priority Creditors
------------------------------------------------------
Zeus Imports Pty. Limited will declare its first and final
dividend for priority creditors on July 13, 2006.

Creditors who were not able to prove their claims will be
excluded from any distribution.

The Company's liquidator can be reached at:

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


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

ASIA ALUMINUM: S&P Cuts BB Long Term Credit Rating to BB-
---------------------------------------------------------
Standard & Poor's Ratings Services on July 5, 2006, lowered its
long-term corporate credit rating on Asia Aluminum Holdings Ltd
to BB- from BB.  At the same time, it lowered its issue rating
on US$450 million in senior unsecured notes due 2011 to BB- from
BB.  The ratings were removed from CreditWatch, where they had
been placed with negative implications on Feb. 8, 2006.  Both
rating outlook are negative.

The rating action reflects Asia Aluminum's weakened credit
protection ratios on a pro-forma consolidated basis due to an
LBO of shareholders by AA Investments Co. Ltd, an investment
company of Asia Aluminum's chairman Kwong Wui Chung.  To fund
the transaction, AA Investments has incurred about US$583
million in payable-in-kind subordinated private debt.
     
"Cash flow from the operating subsidiary will now have to cover
interest on the 2011 bonds as well as the new debt at the parent
company level.  As a result, Asia Aluminum's financial
flexibility will weaken substantially," said Standard & Poor's
credit analyst Bei Fu.

These factors are mitigated by the nature of the subordinated
debt, on which interest can be deferred for three years, and the
company's increased access to cash flow from its buy-out of the
40% minority shareholders in China Steel Development Co. Ltd., a
holding company for a new flat-rolled product project.

Asia Aluminum provides aluminum extrusion products, primarily to
the Greater China market.  Following expansion of its extrusion
facilities, annual capacity should have risen to 350,000 metric
tons by the third quarter of 2006 from 150,000 tons previously.  
In addition, the new flat-rolled plant is due to come on stream
by July 2007.  Both projects are more than three months behind
schedule, but this should not significantly affect cash flow.
Execution risk should fall, as they near completion.

In fiscal 2005, the Company's operating performance was in line
with expectations.  In the first half of 2006, due to a large
increase in raw material costs, its EBITDA margin declined to
18.5% from 20.4% in fiscal year 2005.  Capital expenditure in
fiscal 2007 should be substantial, due to ongoing investment
associated with the flat-rolled product project.

                          *     *     *

Headquartered in Kowloon, Hong Kong, Asia Aluminum Holdings
Limited -- http://www.asiaalum.com/-- is the powerhouse of  
aluminum extrusion, offering comprehensive solutions in design
and engineering, extrusion, surface finishes, fabrication and
delivery.  The Company is quoted on the Hong Kong Stock Exchange
and is one of the largest investor-owned aluminum businesses in
Asia, serving the infrastructure, transportation, industrial,
and home improvement sectors.  The Company currently operates
five production facilities in Nanhai in China's Guangdong
Province with an aggregate capacity of 150,000 metric tons, and
is building a new avant-garde platform in the neighboring city
Zhaoqing, to facilitate future progressive business rollouts.  

In February 2006, Standard & Poor's Rating Services "BB" long-
term corporate credit rating on Asia Aluminum Holdings Limited
on CreditWatch with negative implications.  At the same time, it
also placed US$450 million in senior unsecured notes due 2011 on
CreditWatch with negative implications.  In March 2006, Moody's
Investors Service has placed the Ba3 corporate family rating and
senior unsecured bond rating of Asia Aluminum Holdings Limited
on review for possible downgrade.  


ASIAN AREA: Intends to Pay Preferential Dividend
------------------------------------------------
Asian Area Reinsurance Company Limited intends to pay its second
dividend to preferential creditors by July 14, 2006.

The Company declared its first dividend on October 29, 2006, the
Troubled Company Reporter- Asia Pacific recounts.

Contact: Jan G W Blaauw
         Joint and Several Liquidator
         c/o PricewaterhouseCoopers
         22/F., Prince's Building
         10 Chater Road
         Central, Hong Kong
         Telephone: (852) 2289 8888
         Fax: (852) 2890 8345


ATLANTA SPORTSWEAR: Joint Liquidators Cease to Act for Company
--------------------------------------------------------------
Derek Lai and Darach Haughey ceased to act as joint and several
liquidators of Atlanta Sportswear Ltd on June 15, 2006.


BEAUTY RISE: Creditors' Proofs of Claim Due on July 19
------------------------------------------------------
Liquidator Natalia K M Seng requires the creditors of Beauty
Rise International Ltd to submit their proofs of claim by
July 19, 2006.

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

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


BON HONG SHIPPING: First Creditors' Meeting Slated for July 26
--------------------------------------------------------------
Creditors of Bon Hong Shipping Agency Ltd will convene on
July 26, 2006, 10:30 a.m. to discuss about wind-up matters
pursuant to the Companies Ordinance of Hong Kong.

The meeting will be held at Office B, 4/F., Kiu Fu Commercial
Building, 300 Lockhart Road, Wan Chai, Hong Kong.


BONRAINBOW LIMITED: Liquidator to Receive Claims Until July 19
--------------------------------------------------------------
Liquidator Natalia K M Seng will receive proofs of claim from
creditors of Bonrainbow Limited until July 19, 2006.

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

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


COLOUR BRIDGE: Creditors Must Prove Debts by July 19
----------------------------------------------------
Creditors of Colour Bridge Ltd are required to file their proofs
of debt by July 19, 2006.

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

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


EXCELORY LIMITED: Court to Hear Wind-Up Petition on August 16
-------------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Excelory Limited on August 16, 2006, at 9:30 in the morning.

Bank of China (H.K.) Ltd filed the petition with the Court on
June 15, 2006.

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


FAR EAST TRANSPORTATION: Faces Wind-Up Proceedings
--------------------------------------------------
A petition to wind up Far East Transportation (H.K.) Ltd will be
heard by the High Court of Hong Kong on August 30, 2006, at 9:30
in the morning.

Soonest Express (H.K.) Co Ltd filed the petition with the Court
on June 17, 2006.

Contact: T.H. Koo & Associates
         Solicitors for the Petitioner
         Room A2, 15th Floor
         United Centre, No 95
         Queensway, Hong Kong


GUANGDONG KELON: CSRC Bare Fraud, Investors Files Lawsuits
----------------------------------------------------------
Investors of Guangdong Kelon Electric Holdings Company filed
lawsuits against the Company following China Securities
Regulation Commission's discovery of Kelon's falsification of
its 2002 to 2004 annual reports, Infocast News relates.

According to a report released by CSRC on July 5, 2006, Kelon
used false records, overstate revenue and omit substantial
information from the annual reports for 2002, 2003 and 2004.  

As a result, CSRC ordered the Company to pay CNY600,000 fine.  
In addition, CSRC fined former chairman Gu Chujun CNY300,000
while other directors were ordered to pay a total iof CNY1.250
million in fines, Infocast says.

Moreover, the China Daily says that Auditor Deloitte was named
second defendant in the lawsuits for failing to disclose the
internal fraud in its report for fiscal years 2002, 2003 and
2004.

However, several prosecutors believe that that the CSRC was not
tough enough on Kelon, according to China Daily.

Zhong Gaosheng Law Firm's Hu Fengbin told China Daily that the
proper fine for Kelon should at least exceed CNY1 million.  

Xinhaunet recounts Kelon was once one of China's most admired
companies but was thrust into crisis when the CSRC began its
investigation after a CNY60-million deficit in its 2004 annual
report caused widespread suspicion.

                          *     *     *

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

The Troubled Company Reporter - Asia Pacific reported recently
that Guangdong Kelon is facing possible de-listing of its shares
from China's stock exchanges for failing to submit its first
quarter financial report ending March 31, 2006 on an appointed
date.


HOPEWELL XINTANG: Creditors Must Prove Debts by August 7
--------------------------------------------------------
Creditors of Hopewell Xintang Development (H.K.) Ltd are
required to submit their proofs of debt by August 7, 2006, to
Joint Liquidators Natalia Seng Sze Ka Mee and Cynthia Wong Tak
Yee.

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

Contact: Cynthia Wong Tak Yee
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


JCPMUSIC.COM: Creditors' & Contributories' Meetings Set July 13
---------------------------------------------------------------
Creditors and contributories of JCPMUSIC.COM (H.K.) Ltd will
convene on July 13, 2006, at 3:00 p.m. and 3:30 p.m.
respectively.

The meetings will be held at Room 805, 8/F., Capitol Centre, 5-
19 Jardine's Bazaar, Causeway Bay, Hong Kong.


ROBERTSON PRODUCTS: Liquidator to Present Wind-Up Report
--------------------------------------------------------
Liquidator Wong Kwok Man will present to the members and
creditors of Robertson Products Ltd -- formerly known as H.H.
Robertson Hong Kong Ltd -- a final report on the Company's wind
up.

Mr. Wong will present the report at the members' and creditors'
meetings on July 25, 2006, at 2:30 p.m. and 3:00 p.m.
respectively.

The meetings will be held 13/F., Gloucester Tower, The Landmark,
11 Pedder Street, Central, Hong Kong.


SINO UNION: Creditors' Meeting Set on July 26
---------------------------------------------
Creditors of Sino Union Far East Ltd will convene on July 26,
2006, 11:30 in the morning, at Office B, 4/F., Kiu Fu Commercial
Building, 300 Lockhart Road, Wan Chai, Hong Kong.

During the meeting, the creditors will discuss about wind-up
matters.


* China to Auction CNY1.3-Billion Bad Loans
-------------------------------------------
China Orient Asset Management Corp will offer to foreign
investors bad loans of varied industries in China, The South
China Morning Post reports.

According to the report, Orient Asset would auction a pool of
bad loans with outstanding principal of CNY1.3 billion starting
July 7, 2006.

The Post relates that the auction of "doubtful" category loans
-- extended to some 500 borrowers -- will be the first pool of
five scattered across the country that Orient will auction in
coming months with the help of foreign financial advisers.

A total outstanding total of CNY18 billion of bad debts will be
offered in the next few months.

Hedge funds and investment banks are likely to be among the
bidders, although skeptics caution that interest could be more
muted than in 2002 and 2003, when foreigners held out high hopes
for a chunky deal flow that has so far failed to materialize,
the Post says.

Collaterals for the bad loans includes residential properties
and still-operating state or privately run factories scattered
across Yunnan province.

The Post recounts that major buyers of China's auctioned bad
loans includes Deutsche Bank, American International Group,
Morgan Stanley, JP Morgan and Goldman Sachs.


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

GENERAL MOTORS: Studying US$3-Billion Tie-Up with Renault-Nissan
----------------------------------------------------------------
General Motors Corporation is evaluating an offer to ally with
Renault-Nissan -- a French-Japanese company.  

Renault-Nissan is a collaboration between Nissan Motor Co.,
Ltd., and Renault S.A.  Talks of a possible alliance surfaced
amidst GM's troubles as it faces market, production and cost
issues.  GM is currently implementing a turnaround plan that
involves plant closures and job cuts.

The proponent, Kirk Kerkorian -- who owns 9.9% equity stake in
GM through his investment firm Tracinda Corporation -- urged GM
chairman Rick Wagoner to sell a 20% stake in GM to Renault-
Nissan.  Jerome York, a GM director, advised Mr. Kerkorian on
the $3-billion proposed alliance.

Nissan's board of directors has already authorized its president
and chief executive officer, Carlos Ghosn, to pursue discussions
on the deal.  Renault's board has also approved negotiations for
the transaction, The Wall Street Journal reports.  

Renault-Nissan is on the lookout for deals to enter into the
United States market.  According to channel4.com, Renault-Nissan
approached Ford on a deal last year.

                      About General Motors

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

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

On June 30, 2006, Standard & Poor's Ratings Services held all
its ratings on General Motors Corp. -- including the 'B'
corporate credit rating and the 'B+' bank loan rating, but
excluding the '1' recovery rating -- on CreditWatch with
negative implications, where they were placed March 29, 2006.

On June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery
Rating (RR) of 'RR1' to General Motor's (GM) new $4.48 billion
senior secured bank facility.  The 'RR1' (recovery of 90%-100%)
is based on the collateral package and other protections that
are expected to provide full recovery in the event of a
bankruptcy filing.

On June 21, 2006, Moody's Investors Service assigned a B2 rating
to the secured tranches of the amended and extended secured
credit facility of up to $4.5 billion being proposed by General
Motors Corporation, affirmed the company's B3 corporate family
and SGL-3 speculative grade liquidity ratings, and lowered its
senior unsecured rating to Caa1 from B3.  Moody's said the
rating outlook is negative.


NATIONAL TEXTILE: Awaits Final Approval of Surplus Land Sale
------------------------------------------------------------
National Textile Corporation seeks to obtain final approvals
from the state government and the Municipal Corporation of
Greater Mumbai for the proposed sale of its surplus mill land,
Bharat Textile relates.

Disposal of the 93-care property has been stalled pending issues
on who would undertake the infrastructure study and restrictions
set by the Maharashtra Heritage Conservation Committee, the
report says.

Once the proposed disposal is approved, National Textile plans
to complete the tender process by the end of this year.  The
land mills which are up for sale are Podar Process Mill, Bharat
Mills, Kohinoor Mill, part of Tata Mill , part of India United
Mill No 1, part of Finley Mill, Digvijay Mills Jam Manufacturing
Mill, and Sri Madhusudhan Mill, according to Bharat Textile.

National Textile expects to realize INR3,00 crore from the sale
and will use the proceeds to repay the Company's loans to banks.

As reported by the Troubled Company Reporter - Asia Pacific,
National Textile is implementing a turnaround strategy focused
on reviving and modernizing 22 mills and the sale of most other
defunct assets.

                 About National Textile Corporation

Headquartered in New Delhi, India, National Textile Corporation
Ltd -- http://texmin.nic.in/-- is the single largest textile  
central public sector enterprise under Ministry of Textiles
managing 52 textile mills through its nine subsidiary companies
spread all over India.  The strength of the group is around
22000 employees.  The annual turnover of the Company in the year
2004-05 was approximately INR638 crores.  In 2002, the Board for
Industrial and Financial Reconstruction approved the revival of
53 viable mills and closure of 66 unviable mills.  National
Textile is in the process of a major restructuring.  A new
corporate plan is under formulation for repositioning of the
organization by merging all its nine subsidiaries into one
holding company.


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

DIRGANTARA INDONESIA: Ex-Workers March to Demand Pension Payment
----------------------------------------------------------------
Some 52 former employees of state aircraft manufacturer PT
Dirgantara Indonesia marched form Bandung to the Presidential
Palace in Jakarta on July 5, 2006, in order to demand pension
payments promised to them by the Indonesian Government, the
Jakarta Post reveals.

Former PT DI director Edwin Sudarmo had dismissed over 9,600
employees in an industrial dispute in July 2003.  Of the
displaced workers, some 3,200 were rehired, but others wanted
redundancy packages according to labor laws.

The Post relates that, according to group spokesman M. Sidharta,
President Susilo Bambang Yudhoyono had promised to pay part of
their pensions in cash, amounting to IDR40 billion, which had
been raised from an escrow account.  The funds, which were
slated for distribution by June 30, 2006, had yet to be paid
out.

PT Dirgantara Indonesia -- http://www.indonesian-aerospace.com/
-- is one of the indigenous aerospace companies in Asia with
core competence in aircraft design, development and manufacture
of civilian and military regional commuter aircraft.  In its
production line, Dirgantara Indonesia has delivered more than
300 units of aircraft & helicopters, defense system, aircraft
components and other services.  PT DI was not able to fully
recover from the 1998 Asian financial crisis, and has sought
government help to turn its business around.  It has urged the  
Government to support the industry by purchasing aircraft from  
PT DI, and is currently marketing its products to neighboring
countries in the region.


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

EHOMES INC: President Pleads Guilty to Inflating Capital
--------------------------------------------------------
eHomes Inc. President Togo Fujita has pled guilty at his first
hearing at the Tokyo District Court on July 7, 2006, on charges
of falsely inflating the Company's capital, Crisscross News
relates.

According to the Mainichi Daily, Mr. Fujita admitted that in
October 2001, eHomes stated that its capital had increased to
JPY50 million, when in fact it only had JPY23 million.  He said
that the reason for inflating the Company's capital was in order
to secure a license to operate as a building inspection firm
from the Japanese Government, which it obtained in December
2001, after he borrowed a large sum of money from a notary
public to make it seem like it had increased its capital.  After
eHomes secured the inspection license, Mr. Fujita returned the
amount to the notary public.  The Japan Times says that in order
to obtain an inspection license, a firm's capital must be over
JPY50 million, and it needs a specific number of employees.  

Mainichi relates that prosecutors had found out that eHomes did
not have enough personnel to conduct its work properly, and the
Land, Infrastructure and Transport Ministry revoked the
Company's license last May 2006.

The Yomiuri Shimbun reports that, according to Mr. Fujita, the
"building strength data falsification was created by a vicious
architect who performed illegal acts," and that "it would be a
severe abuse of public power if the Government would punish only
eHomes in the scandal where the Company's failure to detect the
flaws was only the tip of the iceberg."

The Troubled Company reporter stated in a report on April 27,
2006, that Mr. Fujita was arrested on April 26, 2006, for his
role in falsifying the Company's financial accounts and his
failure to detect flaws in earthquake-resistance data in several
buildings designed by now disgraced architect Hidetsugu Aneha.  
But Mr. Fujita said that the Company's inflation of its capital
is "completely unrelated" to the scandal, and that it was unjust
for prosecutors to connect the two incidents, Yomiuri reveals.


LOPRO CORP: Fitch Affirms BB Long-Term Credit Rating
----------------------------------------------------
Fitch Ratings has revised the rating outlooks on the Long-term
foreign and local currency Issuer Default Ratings of three
Japanese non-bank finance companies, Acom Co., Ltd., Promise
Co., Ltd., and Sanyo Shinpan Finance Co., Ltd., and affirmed
their existing ratings.  At the same time, the agency also
affirmed the ratings and outlooks of the rest of the Japanese
consumer finance companies it rates.  After the actions, the
companies are rated as follows:

   * Acom: Long-term foreign and local currency IDRs 'A',
     Outlook revised to Stable from Positive; Short-term foreign
     and local currency IDRs 'F1';

   * Promise: Long-term foreign and local currency IDRs 'A',
     Outlook revised to Negative from Stable; Short-term foreign
     and local currency IDRs 'F1';

   * Sanyo Shinpan: Long-term foreign and local currency IDRs
     'BBB+'; Outlook revised to Negative from Stable; Short-term
     foreign and local currency IDRs 'F2'.

   * Aiful: Long-term foreign and local currency IDRs
     'A-'/Negative Outlook; Short-term foreign and local
     currency IDRs 'F2'.

   * Credit Saison Co., Ltd.: Long-term foreign and local
     currency IDRs 'A'/Stable Outlook; Short-term foreign and
     local currency IDRs 'F1'

   * Lopro Corporation: Long-term foreign and local currency
     IDRs 'BB'/Stable Outlook; Short-term foreign and local
     currency IDRs 'B'.

Fitch's rating actions follow the conclusion of the discussions
on Japan's money lending business and the Money Lending Business
Law by the council of the ruling Liberal Democratic Party.  The
MLBL stipulates the lending rate ceiling for non-bank finance
companies.  The current lending rate ceiling allowed for finance
companies (29.2%) is likely to be lowered to the highest level
chargeable under Japan's Interest Rate Restriction Law, which is
set at 15%, 18% or 20%, depending on the size of the
loan.  The Financial Services Agency and other relevant units of
the government are to present a bill proposing the change to the
Diet later this year.

Although still subject to modification at the Diet, the agency
views that such a degree of reduction will substantially lower
the profitability of a large number of finance companies.  Fitch
currently rates six finance companies of which the four consumer
finance companies, Aiful, Acom, Promise and Sanyo Shinpan, would
be hardest hit.  Their average lending rate is currently about
23%. According to the agency's estimations, most of their
pre-tax profit for the year ending March 2008 would be wiped
out, assuming the lowered ceiling rate is effective from the
beginning of FYE08 and their current asset mix remains
unchanged.

The rating Outlook indicates the direction of Fitch's Long-term
IDRs for the next one to two years.  Fitch notes that the new,
lower ceiling will force the consumer finance companies to
urgently overhaul their business models.  Gearing levels may
improve as liabilities shrink in line with the contraction in
their assets, assuming the companies want to minimise their
credit risk to balance the lowered net interest revenue.  While
Fitch believes that the companies' robust capital base and
increasingly abundant cash flow, under this scenario, ensures
the ability to service current debt levels, the agency also
notes that growth prospects would be severely limited as a
result of the lowered ceiling lending rate.  They may also face
defaults and legal challenges as they seek repayment of loans
carrying high interest rates.  Fitch will review and adjust the
ratings on the consumer finance companies, in due course, taking
into account the feasibility of their business plans.

Fitch is not taking a rating action on Aiful as its Outlook was
recently revised to Negative in April 2006, following a
suspension order by the FSA due to a compliance issue.  In the
case of Credit Saison, a credit card company, and Lopro, a
commercial finance company, the estimated effect from the
lowered ceiling rate is smaller and the agency will not be
changing their Outlook at this time.

In addition to the ceiling rate, other measures, such as the
schedule of implementation and the new regulations on money
lenders, will be incorporated into the bill for debate in the
Diet.  Depending on the outcome, Fitch may take further rating
action this year.  Meanwhile, the agency will monitor closely
any developments in the credit market.  At end-March 2006,
there were about 18,000 registered money lenders, such as
consumer and commercial finance companies and credit card
companies, providing credit of nearly JPY50 trillion, compared
with JPY170trn loans extended by banks to SMEs and consumers,
although not all of them are lending at interest rates above the
IRRL ceiling.


SANYO ELECTRIC: Plans to Close Four Battery Plants by 2007
----------------------------------------------------------
Sanyo Electric Co. plans to close one local and three foreign
rechargeable battery plants by March 31, 2007, in order to boost
efficiency of its battery division, Crisscross News relates.

The Company has already shut down its plant in Hyogo Prefecture,
west Japan, and plans to close its factories in China, Czech
Republic and Mexico this year, leaving the Company with 14
factories all over the world to continue battery operations,
Reuters News reports.

Reuters notes that job cuts are expected, but the Company's aim
is to achieve economies of scale and not to downsize, hence some
workers at its plants due to be closed would be transferred to
nearby facilities.

According to Reuters, Sanyo is struggling to maintain its hold
in the battery market from competition such as Matsushita
Electric Industrial Co. and Sony Corp., who plan to penetrate
the lucrative market.

                          *     *     *

Incorporated in Japan in 1947, Sanyo Electric Company, Limited
-- http://www.global-sanyo.com/-- manufactures a broad range of  
electronic products grouped into six categories: video
equipment, audio equipment, home appliances, industrial and
commercial equipment, information systems and electronic
devices, and batteries and other products.

The Troubled Company Reporter - Asia Pacific stated on Feb. 27,
2006, that Sanyo Electric shareholders approved a JPY300-billion
bailout plan that will give banks management control of the
Company to help it recover its losses.

In its business restructuring plan, Sanyo planned to downsize
its global workforce of 96,000 by 15% to 14, 400 over a three-
year period, and to concentrate on developing environment-
friendly products and technologies and sell 20% of a 2-million
square meter property occupied by its factories in Japan.  The
Company states that it had completed its downsizing last March
2006, two years ahead of schedule.

The TCR-AP reported on Mar. 22, 2006, that Standard & Poor's
Ratings Services said that its 'BB' long-term corporate credit
and 'BB+' long-term senior unsecured debt ratings on Sanyo
Electric remain on CreditWatch with negative implications, after
the Company disclosed its plan to form a joint venture with
Taiwan's Quanta Computer, Inc., in the flat panel TV business.  
Sanyo's ratings were first placed on CreditWatch with negative
implications on Sept. 28, 2005, and remain on CreditWatch after
ratings went down twice in November 2005.

According to S&P, Sanyo's TV business suffered from poor
performance due to its inefficient production and marketing
system, as well as weak brand recognition.  Although the details
for the joint venture company have yet to be announced, S&P
believes that the path to stable earnings in Sanyo's TV business
remains uncertain.  While the joint venture focuses solely on
the flat panel business, the Company needs to make drastic
improvements to its production and marketing system, including
its core cathode-ray tube TV business, in order to turn around
the overall TV business.


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

VK CORP: Declared Bankrupt with KRW1.78-Billion Debt
----------------------------------------------------
Creditors of VK Corporation, led by Industrial Bank of Korea,
has declared the mobile phone manufacturer insolvent after
defaulting on KRW1.78 billion worth of maturing promissory
notes, The Hankyoreh says.

According to the report, VK Corp. will be put under creditors'
control, a spokesman for Industrial Bank said.  The Korea Stock
Exchange has banned shares in VK Corp. from being traded until
July 11, 2006, and has announced the company's delisting on July
22.

The Dong-A Ilbo says that investors will be given a last
opportunity to sell off shares in the Company from July 12 to
July 21, and a major price slump is expected during this
transaction period.

The Hankyoreh recounts that, according to Korea Information
Service Inc., a corporate credit information service provider,
VK Corp. has KRW209.4 billion in interest-bearing debt for the
first quarter of 2006.  During the same period, the Company
reported a net loss of KRW16.5 billion on sales of
KRW97.5 billion.

The Troubled Company Reporter - Asia Pacific reported on
June 29, 2006, that the Company was able to repay maturing debt
worth KRW3.5 billion earlier on June 27.

As part of its restructuring efforts, VK Corp. recently cut its
local workforce from 800 to around 700, as well as trimmed down
staff members in its Chinese operations from 2,000 to 1,000.
The TCR-AP noted that the Company's illiquid position became
apparent at the end of 2005, where its current liabilities
reached KRW174.49 billion as compared with KRW121.19 billion in
current assets.

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, according to VK Corp.'s
financial statements.

Dong-A Ilbo adds that due to a direct stumble from a decreasing
won-dollar exchange rate and low-price marketing hits from major
cell phone makers such as Nokia and Motorola, the Company's
management began to rapidly worsen.  Ever since VK's deficit of
KRW64.9 billion last year, cash flow has not been running
smoothly.

According to Dong-A Ilbo, the Company is planning to revive
itself through court receivership, application for composition
and disposal, but its future seems unclear.

                      About VK Corporation

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).


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

CONSOLIDATED FARMS: To Hold 23rd AGM on July 26
-----------------------------------------------
Consolidated Farms Berhad will hold its 23rd Annual General
Meeting on July 26, 2006, at 10.00 a.m., at the Dewan Seroja,
Kelab Golf Perkhidmatan Awam, Bukit Kiara, Off Jalan Damansara,
60000 Kuala Lumpur.

At the meeting, the Company's shareholders will be asked to:

   -- receive the Audited Financial Statements for the
      financial year ended January 31, 2006, together with the
      Reports of the Directors and Auditors;

   -- re-elect director Jimmy Wang Kia Meon, who has offered
      himself for re-election;

   -- reappoint Messrs. KPMG as the Company's auditors to
      hold office until the conclusion of the next Annual
      General Meeting and to authorize the Directors to fix
      The auditors' remuneration;

   -- authorize the Directors to issue shares in the Company
      at any time, provided that the aggregate number of shares
      issued does not exceed 10% of the issued and paid-up share
      capital of the Company; and

   -- transact any other ordinary business of which due notice
      has been given.

                 About Consolidated Farms Berhad

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

The Company's April 30, 2006, balance sheet showed total
liabilities of MYR203,323,000 exceeding total assets of
MYR133,822,000, resulting into a stockholders' equity deficit of
MYR69,501,000.  The Company also recorded a negative cashflow of
MYR10,220,000 in the quarter ended April 30, 2006.


CONSOLIDATED FARMS: Default Amount Hits Over MYR147 Million
-----------------------------------------------------------
The Consolidated Farms Group has been unable to pay the amount
of principal and interest in respect of its credit facilities as
of June 30, 2006.

The Confarm Group owes a total of MYR147,311,000 to:

        Creditor                           Amount Owed
        --------                           -----------
        Bank Pertanian Malaysia          MYR46,903,000
        Bumiputra Commerce Bank Berhad   MYR63,114,900
        Malayan Banking Berhad           MYR23,698,700
        AmMerchant Bank Berhad           MYR12,986,300

There has been no material development in respect of the
Company's plan to regularize its financial position.

                 About Consolidated Farms Berhad

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

The Company's April 30, 2006, balance sheet showed total
liabilities of MYR203,323,000 exceeding total assets of
MYR133,822,000 resulting into a stockholders' equity deficit of
MYR69,501,000.  The Company also recorded a negative cashflow of
MYR10,220,000 in the quarter ended April 30, 2006.


FCW HOLDINGS: Working Out Financial Revamp Proposal
---------------------------------------------------
FCW Holdings Berhad has 27 weeks more to submit its
regularization plan to relevant authorities for approval, the
Company said in a statement to Bursa Malaysia Securities Berhad.

The Company added that it is still exploring a suitable scheme
to address its inadequate financial condition.

The Troubled Company Reporter - Asia Pacific recounts that FCW
Holdings was, on May 5, 2006, classified under Bursa Malaysia
Securities Berhad's Practice Note 17 category since its
shareholders' equity has fallen well below the minimum
requirement of 25%.  As an affected listed issuer, the Company
is required to submit a plan to regularize its financial
condition.  Bursa Malaysia Securities may suspend or delist
FCW's shares should the Company fail to formulate a
regularization plan.

                    About FCW Holdings Berhad

Headquartered in Selangor Darul Ehsan, Malaysia, FCW Holdings
Berhad is principally involved in investment holding, providing
management services and trading of telecommunications equipment.  
Its other activities include renting of communication access,
selling and hiring of telecommunications equipment and
electronic goods, providing paging services and turnkey
contracting.  

FCW is a Practice Note 17 company.  It has been suffering
continuous losses since 1999.  As of March 31, 2006, the
Company's accumulated losses has hit MYR135,469,000 from
MYR134,410,000 accumulated losses in March 31, 2005.  The
Company is also facing possible delisting by Bursa Malaysia
Securities Berhad if its fails to submit a plan to regularize
its financial condition.


GEORGE TOWN: Unveils Restructuring Developments
-----------------------------------------------
George Town Holdings Berhad and its holding firm, Datuk Keramat
Holdings Berhad, are moving forward in their restructuring, with
the Golden Sun Group Co. Limited initiating the due diligence
process in early June 2006 pursuant to a memorandum of
understanding signed on May 11, 2006.

Golden Sun Group has also secured a letter of understanding from
a United Kingdom-based company -- Premises Networks Management
Plc -- to set up a worldwide networking software system for the
wholesale, manufacturing and retail department stores and
outlets in China, Middle East, Dubai and expansion in Malaysia.

The Company will make available to Bursa Malaysia Securities its
plan to regularize its financial condition once finalized.

Being an affected issuer of Bursa Malaysia Securities Berhad's
Practice Note 17, George Town is required to implement exercises
to regularize its financial condition.

               About George Town Holdings Berhad

Headquartered at Petaling Jaya, in Selangor Darul Ehsan,
Malaysia, George Town Holdings Berhad operates supermarkets,
department stores and convenience stores.  Its other activities
include property development, trading in pharmaceutical
products, media design and advertising, management services,
goldsmith and jewelers, management of car parks, bakery, pastry
and fast food center, financial services, hotel management and
investment holding.  The Group operates in Malaysia, Continental
Europe/Offshore Islands and other countries.  The Company has
been suffering losses since 1999 due to stiff competition.  It
has closed over 10 outlets in the past four years.   The Company
expects cutthroat competition among retailers to put continuous
pressure on its margins.  The Company is also facing a possible
delisting from the official list of the Bursa Malaysia
Securities for failing to submit its financial reports on time.  
The Company is classified under the Bursa Malaysia Securities
Berhad's Practice Note 17 category, where it is required to
submit a plan to regularize its financial condition.


LITYAN HOLDINGS: To Appeal SC's Rejection of Restructuring Plan
---------------------------------------------------------------
Lityan Holdings Berhad will seek for a review of the Securities
Commission's decision denying its proposed restructuring scheme.

The Troubled Company Reporter - Asia Pacific recounts that Bursa
Malaysia Securities Berhad, on June 13, 2006, commenced
delisting procedures against the Practice Note 17 firm, Lityan
Holdings, since the Company's proposed restructuring scheme was
rejected by the Securities Commission.

Lityan Holdings Berhad, on June 20, 2006, made written
representations to Bursa Malaysia on why its securities should
not be removed from the Bourse's Official List.

Trading in Lityan's shares have been suspended since June 16,
2006.

                  About Lityan Holdings Berhad

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

The Company had been classified as an affected listed issuer
pursuant to Practice Note 17 as issued by the Bursa Malaysia
Securities Berhad on May 10, 2005.  On January 16, 2006, the
Company entered into a debt restructuring agreement intended to
restore the Company onto stronger financial footing via an
injection of new viable businesses.


MALAYSIA AIRLINES: To Lay Off 6,000 Staff in Two Years
------------------------------------------------------
Malaysia Airlines will slash 6,000 workers from its workforce
over the next two years as part of its restructuring, The Star
Online reports.

Some 3,089 employees will be retrenched between July to December
this year, and another 3,000 will go within two years, The Star
says.  

Around 2,622 of the 3,089 leaving this year will be accounted
for by the Company's mutual separation scheme that closed on
June 7, 2006.  The rest will come from staff reduction exercise
overseas through station and route closures, expiry of short-
term contracts, and retirement.

As reported by the Troubled Company Reporter - Asia Pacific,
Malaysia Airlines aims to save MYR200 million a year from the
redundancy scheme, and about 25% reduction in overall manpower.

Around 4,200 of the airline's 22,835-strong workforce have
applied for the mutual separation scheme, the TCR-AP said.

Based on the number of applications approved, the Scheme will
cost the airline about MYR500 million, The Star adds.

The job cuts will not compromise the safety and security of the
airline's flight operations as well as service delivery, The
Delay Express relates, citing Malaysia Airlines managing
director and chief executive officer Idris Jala.

"Although we will be releasing 3,089 staff this year, we have
exercised care to ensure minimal impact on the quality of our
products and operations," Mr. Jala said.

Mr. Jala added that "[Customers[ will continue to enjoy the
exemplary standards of our service delivery that has won us a
number of global industry awards in the last few months."

                     About Malaysia Airlines

Headquartered in Selangor, Malaysia, Malaysia Airlines
-- http://www.malaysiaairlines.com/-- services domestic and  
international flights.  Its global network comprised 32 domestic
and 86 international destinations.  Of the 86 international
destinations, 17 were operated in collaboration with our airline
partners.

The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes.  In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion in order to stay
afloat and return to profitability by 2007.  Under the
restructuring plan, the airline pledged to cut its budget by 20%
across the board, terminate many unprofitable routes, freeze
recruitment except for front-line staff, crack down on
corruption by encouraging Whistle-blowing and stop corporate
sponsorship.


MALAYSIA AIRLINES: Receives More Awards and Accolades
-----------------------------------------------------
Malaysia Airlines' service has again been acknowledged and
praised by Travel + Leisure magazine, National Geographic's "The
10 Best of Everything: An Ultimate Guide for Travelers" book and
Skytrax Research, an international airline industry research
firm.

The June 2006 issue of Travel + Leisure magazine placed Malaysia
Airlines number five in the "Top Airlines for Service"
international flights category.  This annual World's Best Award
invites magazine readers to rate hotels, cruise lines, and
airline services.  The airline rankings reflect in-flight
experience and customer service.

Malaysia Airlines was named as one of the ten best airlines in
the new book, "The 10 Best of Everything: An Ultimate Guide for
Travelers" from National Geographic.  The authors, veteran
travelers Nathaniel and Andrew Lande, noted that Malaysia
Airlines "continues to set new world standards with their
enhanced in-flight services, reliable ground support. . .and the
warmth and friendliness of its staff."

The "Best Economy Class Onboard Service Award of Excellence'
award went to Malaysia Airlines in Skytrax's annual survey of
frequent long-haul passengers.  The carrier was given the top
award for its customer experience for a long-haul flight, seat
comfort, in-flight entertainment, dining, and the efficiency and
quality of the staff.

                    About Malaysia Airlines

Headquartered in Selangor, Malaysia, Malaysia Airlines
-- http://www.malaysiaairlines.com/-- services domestic and  
international flights.  Its global network comprised 32 domestic
and 86 international destinations.  Of the 86 international
destinations, 17 were operated in collaboration with our airline
partners.

The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes.  In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion in order to stay
afloat and return to profitability by 2007.  Under the
restructuring plan, the airline pledged to cut its budget by 20%
across the board, terminate many unprofitable routes, freeze
recruitment except for front-line staff, crack down on
corruption by encouraging Whistle-blowing and stop corporate
sponsorship.

Malaysia Airlines posted a pre-tax loss of MYR309.118 million
for the first quarter ended March 31, 2006, against a pre-tax
profit of MYR112.017 million in the same quarter of 2005.  As of
March 31, 2006, the Company has accumulated losses of
MYR3,360,728,000.


MENTIGA CORPORATION: Implements Restructuring Exercises
-------------------------------------------------------
Mentiga Corporation Berhad is currently implementing
restructuring exercises involving:

   -- the revaluation of the assets of the Company and its
      subsidiaries;

   -- a debt settlement via the issue of new ordinary shares of
      MYR1 each in Mentiga as settlement of an amount owed by
      the Company to shareholder Amanah Saham Pahang Berhad;

   -- the restricted issue of 20,000,000 redeemable convertible
      preference shares of MYR1 each in Mentiga to Amanah
      Sapang; and

   -- the disposal by Metiga's subsidiary Selat Bersatu Sdn Bhd
      of 18,900 ordinary shares of IDR1,000,000 each in
      PT Rebinmas Jaya, representing its entire 90% equity
      interest in PT Rebinmas to Delloyd Plantation Sdn Bhd and
      Taipan Hectares Sdn Bhd for a cash consideration of
      MYR61,200,000.

Mentiga proceeded with the implementation of its restructuring
scheme after it bypassed the conditions imposed by the
Securities Commission for approval of its waiver application.

The Troubled Company Reporter - Asia Pacific recounts that the
Securities Commission on June 16, 2006, approved Mentiga
Corporation's application for a waiver from a condition imposed
by the Commission in relation to the Company's implementation of
its restructuring exercises.

According to the TCR-AP, the Condition required Mentiga to
obtain a separate document of title Hak Guna Usaha for the oil
palm plantations measuring approximately 1,947.12 hectares
situation in Indonesia for which documents of the title have yet
to be issued.  This Condition was expected to be met prior to
the implementation of the proposed disposal by Mentiga's
subsidiary Selat Bersatu Sdn Bhd of 18,900 ordinary shares of
IDR1,000,000 each in PT Rebinmas Jaya to Delloyd Plantation Sdn
Bhd and Taipan Hectes Sdn Bhd for a cash consideration of
MYR61,200,000.  On June 16, 2006, Mentiga received documents of
title for plantations in Indonesia.  As such, Mentiga has
complied with the condition imposed by the Securities Commission

                 About Mentiga Corporation Berhad

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

As of March 31, 2006, the Company's balance sheet revealed total
assets of MYR86,233,000 and total liabilities of MYR152,048,000,
resulting in a shareholders' equity deficit of MYR65,815,000.


METROPLEX BERHAD: In Talks with Lenders on Scheme of Arrangement
----------------------------------------------------------------
Metroplex Berhad is in negotiations with its lenders based on
the Proposed Composite Scheme of Arrangement to regularize its
financial condition.

The Company has approximately five months to submit its Proposed
Scheme to relevant authorities for approval.

As reported by the Troubled Company Reporter - Asia Pacific,
Metroplex Berhad's unaudited quarterly results for the financial
year ended January 31, 2006, revealed that the Company has a
deficit in the shareholders' equity on a consolidated basis
amounting to MYR196.3 million.  The deficit in the shareholders'
equity is mainly attributable to the Metroplex Group's
accumulated losses exceeding the Group's paid-up share capital
and reserves.  As such, Metroplex is an affected listed issuer
pursuant the Listing Requirements of Bursa Securities.  

As an affected listed issuer, Metroplex is required to submit a
regularization plan to relevant authorities for approval and
implement the Plan within a timeframe stipulated by the
approving parties.

                     About Metroplex Berhad

Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations.  Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school.  Operations are
carried out in Malaysia, Hong Kong and Philippines.

On April 28, 2005, Morgan Stanley Emerging Markets Inc. had
filed a winding-up petition against the Company with the Kuala
Lumpur High Court.  Morgan Stanley also filed for a summons to
appoint a provisional liquidator for the wind up.  Until and
unless a provisional liquidator is appointed pursuant to the
application to the Court by the Petitioner to appoint
provisional liquidator for Metroplex, the winding-up petition
will not have significant impact on the Group's operations as
Metroplex is currently working out a debt-restructuring scheme.  
In the event the wind-up petition succeeds, the Company will be
put into liquidation.

Metroplex Berhad's April 30, 2006, balance sheet revealed total
liabilities of MYR1,417,778,000 exceeding total assets of
MYR1,214,518,000, resulting into a shareholders' equity deficit
of MYR203,260,000.


MYCOM BERHAD: Inks Additional Restructuring Agreements
------------------------------------------------------
Mycom Berhad, on July 3, 2006, entered into several agreements
with relevant parties involving part of the total debts to be
restructured under the Company's restructuring scheme.  

The Company expects to progressively enter into further
agreements for the balance of the outstanding debts with the
lenders and the relevant announcements to be made in due course.

Mycom signed an agreement with RHB Bank Berhad to vary the terms
of a letter of offer dated May 18, 1995, issued by Bank Utama
(Malaysia) Berhad to Mycom granting Mycom a revolving credit
facility of up to the maximum aggregate principal sum of
MYR6 million.  

The Company also inked a supplemental agreement with EON Bank
Berhad to vary the terms of a facility agreement dated May 5,
1995, made between Mycom and EON for a revolving credit facility
of up to the maximum aggregate principal sum of MYR5 million.

A novation agreement between Olympia Industries Berhad, Mycom
and Malaysia International Merchant Bankers Berhad was also
clinched wherein Olympia Industries will novate and transfer all
its rights and obligations under a facility agreement dated
January 15, 1996, made between Malaysian International and
Olympia Industries for a bank guarantee facility of up to the
maximum aggregate principal sum of MYR9 million to Mycom.

The Company also entered into another supplemental deal with
Multi-Purpose Credit Sdn Bhd to vary the terms of a memorandum
of agreement for a loan dated October 29, 1996, made between
Mycom and MPC for a term loan facility of up to the maximum
aggregate principal sum of MYR25 million.

A novation agreement was also entered into between Olympia Land
Berhad, Mycom and RHB wherein Olympia Land will novate and
transfer all its rights and obligations under a letter of offer
dated December 14, 1996, issued by RHB to Olympia Land granting
Olympia Land an overdraft facility of up to the maximum
aggregate principal sum of MYR5 million and the letter of
guarantee facility of up to maximum aggregate principal sum of
MYR1 million to Mycom.

The Company had also signed a novation deal entered into between
Olympia Industries, Mycom and Sabah Development Bank Berhad
wherein Olympia Industries will novate and transfer all its
rights and obligations under a loan agreement dated July 28,
1997, made between Sabah Development and Olympia Industries for
a revolving credit facility of up to the maximum aggregate
principal sum of MYR10 million to Mycom.

Mycom, likewise, signed a supplemental agreement with Danpac
Leasing (Malaysia) Berhad to vary the terms of a facility
agreement dated June 27, 1997, made between Danpac Leasing and
Mycom for a revolving credit facility of up to the maximum
aggregate principal sum of MYR3 million.

Another supplemental agreement was also forged by Mycom and
Danpac Leasing to vary the terms of a facility agreement dated
June 27, 1997, made between Danpac Leasing and Mycom for a
revolving credit facility of up to the maximum aggregate
principal sum of MYR5 million.

Moreover, Mycom entered into a supplemental agreement with RHB
to vary the terms of a facility agreement dated January 11,
1996, made between Mycom and Kewangan Utama Berhad for a
revolving term loan facility of up to the maximum aggregate
principal sum of MYR8 million.

The Company also inked a supplemental deal with Southern
Investment Bank Berhad to vary the terms of a letter of offer
dated May 14, 1996, issued by Southern Investment to Mycom for a
revolving credit facility of up to the maximum aggregate
principal sum of MYR5 million.

In addition, a novation agreement was entered into between
Jupiter Capital Sdn Bhd, Mycom and Southern Bank Berhad wherein
Jupiter Capital shall novate and transfer all its rights and
obligations under a facility agreement dated April 15, 1997,
made between Southern Finance Berhad and Jupiter Capital for a
revolving credit facility of up to the maximum aggregate
principal sum of MYR20 million to Mycom.

Lastly, a novation agreement was clinched by Mycom, Olympia
Industries Berhad and Danaharta Urus Sdn Bhd wherein Mycom shall
novate and transfer all its rights and obligations under a
facility agreement dated October 17, 1995, made between BBMB and
Mycom for a revolving credit facility of up to the maximum
aggregate principal sum of MYR30 million to Olympia Industries.  
Pursuant to a statutory vesting certificate made between BBMB
and Danaharta, all rights, interests and title of BBMB under the
Facility Agreement and pursuant to the facility have been
transferred to Danaharta.

Further details of the supplemental and novation agreements are
available for free at:

   http://bankrupt.com/misc/tcrap_mycombhd070706.doc  

                       About Mycom Berhad

Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad is engaged
in the provisions of granite quarry services, manufactures and
sells latex rubber thread, tape, plywood, laminated board and
sawn timber, cultivates oil palm fruits, and develops property.  
The Company is also involved in hotel operation, provision of
management and financial services and investment holding.  
Operations of the Group are carried out in Malaysia and South
Africa.

Mycom is in the advanced stage of negotiations to settle its
foreign debts.  The proposed capital reduction and consolidation
by Mycom, as well as the proposed share premium account
reduction will reduce the Company's accumulated losses.  As of
March 31, 2006, the Company registered accumulated losses of
MYR1,155,517,000.   The Company's March 31, 2006, balance sheet
showed total assets of MYR841,845,000 and total liabilities of
MYR1,333,871,000 resulting into a shareholders' deficit of
MYR512,631,000.


PARACORP BERHAD: Reviews Options to Restructure Business
--------------------------------------------------------
Paracorp Berhad is currently evaluating various options to
formulate a restructuring plan to regularize its financial
condition for submission to relevant authorities.

According to the Troubled Company Reporter - Asia Pacific, the
Company was, on May 8, 2006, classified under the Amended
Practice Note 17 category of Bursa Malaysia Securities Berhad's
Listing Requirements because:

   * its consolidated shareholders' equity of MYR7.956 million
     as of December 31, 2005, does not meet the Bourse's
     listing requirement; and

   * the Company's auditors have expressed a modified opinion
     with an emphasis on the Company's going concern in the
     Audited Financial Statements as of December 31, 2005.

As an affected listed issuer, the Company is required to submit
a financial regularization plan by January 7, 2007.

                     About Paracorp Berhad

Paracorp Berhad's principal activities are the manufacture and
trading of printed graphic overlay, printed electronic circuits,
electroluminescent display, telemetry monitoring system,
electronic circuit components, corrugated plastic sheets,
corrugated carton boxes and plain boards.  Its other activities
include the provision of management services, investment
holding, property investment, property management, money
lending, technology management and research and development
services.  The Group operates in Malaysia, Oceanic countries,
European countries, American countries and other Asian
countries.

The Company has been incurring losses in the past.  For the
quarter ended March 31, 2006, the Company recorded a net loss of
MYR12.3 million.  As of March 31, 2006, the Company's balance
sheet revealed total assets of MYR106,347,000 and total
liabilities of MYR110,465,000, resulting in a MYR41,180,000
stockholders' equity deficit.  

The Company is also classified under Practice Note 17 of Bursa
Malaysia Securities Berhad's Listing Requirements.  As an
affected listed issuer, the Company is required to submit a
financial regularization plan by January 7, 2007.


SETEGAP BERHAD: Proposed Land Property Sale Wins SC's Favor
-----------------------------------------------------------
The Securities Commission approved on June 29, 2006, Setegap
Berhad's proposed disposal of its landed properties in Damansara
and Serdang.

As reported by the Troubled Company Reporter - Asia Pacific,
Setegap, on January 26, 2006, proposed to dispose of:

   -- the landed property in Damansara, which consists of a
      four-storey intermediate shop office erected on a piece of
      freehold land in Mukim of Sungai Buloh, District of
      Petaling, Selangor, for MYR1.48 million; and

   -- the landed property in Serdang, which comprises two
      contiguous parcels of leasehold and freehold industrial
      lands in Mukim of Kajang, Daerah Ulu Langat, Selangor
      Darul Ehsan, for MYR6.83 million.

In addition to the approval, the Securities Commission ordered
Setegap to:

   * disclose the status of utilization of the proceeds of the
     disposal in the Company's quarterly and annual reports
     until the proceeds are fully utilized; and

   * use the sale proceeds to repay part of loans due to the
     Company's lenders.

Furthermore, the Commission said that it could not consider the
proposed disposal of approximately 62.09% equity interests in
Paving Plant and Processes (M) Sdn Bhd and 100% equity interests
in Asphalt Industries Sdn Bhd for MYR4.3 million and
MYR3.5 million, respectively, until an independent adviser is
appointed to perform a valuation on its cost of investment in
both companies and subsequently the reasonableness of the
proposed disposal consideration.  The Securities Commission
pointed out that it would only consider the proposed stake
disposals after an independent valuation has been conducted and
a report submitted to the Commission.

                      About Setegap Berhad

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

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

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

As of March 31, 2006, the Company's balance sheet showed
MYR71,401,000 in total assets and MYR176,007,000 in total
liabilities, resulting in a stockholders' deficit of
MYR104,606,000.  


SETRON (MALAYSIA): Adviser Lays Out Terms of Revamp Proposal
------------------------------------------------------------
Affin Merchant Bank Berhad, on July 3, 2006, presented the
salient terms of Setron (Malaysia) Berhad's proposed
regularization plans.

Setron Malaysia, on June 1, 2006, appointed Affin Bank to act as
its principal adviser and to propose a regularization plan for
consideration by the Company's board of directors, the Troubled
Company Reporter - Asia Pacific recounts.

The TCR-AP reported on May 11, 2006, that Setron has become an
affected listed issuer pursuant to the Amended Practice Note
17/2005 of the Bursa Malaysia Securities Berhad Listing
Requirements.

Setron fell into the PN17 category as its shareholders' equity
on consolidated basis is less than 25% of its issued and paid-up
share capital and that shareholders' equity is less than the
minimum issued and paid up share capital as required under the
Listing Requirements, the TCR-AP said.

As an affected listed issuer, Setron is required to regularize
its financial condition and submit a restructuring plan to the
Securities Commission and other relevant authorities for
approval of implementation within the timeframe stipulated by
the Bursa Securities.

                 About Setron (Malaysia) Berhad

Headquartered in Kuala Lumpur, Malaysia, Setron (Malaysia)
Berhad is principally involved on the assembly and sale of
television receivers, video and audio products, the distribution
of household electrical appliances and the provision of
investment holding in Malaysia. Setron (Malaysia) Berhad has
become an affected listed issuer pursuant to the Amended
Practice Note 17/2005 of the Bursa Malaysia Securities Berhad
Listing Requirements, as its shareholders' equity on
consolidated basis is less than 25% of its issued and paid-up
share capital and that shareholders' equity is less than the
minimum issued and paid up share capital as required under the
Listing Requirements.  As an affected listed issuer, the Company
is required to regularize its financial condition and submit a
restructuring plan to the Securities Commission and other
relevant authorities for approval.

For the quarter under review, the Company registered a net loss
of MYR0.45 million as against a net loss of MYR0.32 million in
the same quarter last year.  


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

ACCESS WORLDWIDE: Posts US$1.2 Million Net Loss in First Quarter
----------------------------------------------------------------
Access Worldwide Communications, Inc., reported financial
results for the three months ended March 31, 2006.

Access reported a net loss of US$1.2 million for the quarter
ended March 31, 2006, compared to US$600,000 loss for the first
quarter of 2005.  The decline, although offset by the increased
profit in the Company's Business Services Segment, was the
result of the decrease in revenues from the Company's
Pharmaceutical Services Segment along with the increase in
interest expense on its borrowings.  Total weighted average
common shares outstanding for the quarters ended March 31, 2006,
and March 31, 2005, were 16,889,039 and 11,177,052,
respectively.

The Company's revenues decreased US$0.4 million, or 3.8%, to
US$10 million for the three months ended March 31, 2006,
compared to US$10.4 million for the three months ended March 31,
2005.

Revenues for the Pharmaceutical Segment decreased
US$1.9 million, or 27.9%, to US$4.9 million for the three months
ended March 31, 2006, compared to US$6.8 million for the three
months ended March 31, 2005.  The decrease was primarily
attributed to a reduction of revenue of US$1.1 million in the
Company's medical education business.  This reduction was caused
primarily by a decrease in work being performed for three
significant customers at the Company's medical education
division, which accounted for a loss in revenue of approximately
US$978,000 when compared quarter over quarter.  The further
reduction was caused by a decrease in revenue of US$800,000 in
Access' pharmaceutical communication business, which was
primarily the result of a change in programs for two significant
customers.

One of these customers replaced an inbound program, which was in
place in the first quarter of 2005 and ended in August of 2005,
with another similar program that has not had as successful an
enrollment as the program that it replaced, thus causing a
decrease in revenue.

The other customer has two large programs, which previously had
teleservice representatives dedicated to their programs only,
but now utilize the Company's shared pool of representatives
that serve more than one client at a time.  This change was
requested by the customer due to budget cut backs and has
decreased the amount per billable hour that the Company charges
the customer for these programs.

Revenues for the Business Segment, which includes the Company's
multilingual communications business, increased US$1.5 million,
or 41.7%, to US$5.1 million for the three months ended March 31,
2006, compared to US$3.6 million for the three months ended
March 31, 2005.  The increase in revenues was primarily
attributed to the revenue generated in our Philippines
communication center of US$0.8 million that had not yet begun
operations as of the first quarter of 2005.  Additionally, the
Company experienced a 20% increase in revenues domestically due
to the acquisition of a significant new customer and from
increased programs with two existing customers.

Full-text copies of the Company's first quarter financial
statements for the three months ended March 31, 2006, are
available for free at http://ResearchArchives.com/t/s?a2a  

                       Going Concern Doubt

BDO Seidman, LLP, in West Palm Beach, Florida, raised
substantial doubt about Access Worldwide Communications, Inc.'s
ability to continue as a going concern after auditing the
Company's consolidated financial statements for the years ended
Dec. 31, 2005, and 2004.  The auditors pointed to the Company's
recurring losses from operations, negative cash flows, and
accumulated deficit.

Headquartered in Boca Raton, Florida, Access Worldwide
Communications, Inc. (OTCBB: AWWC) -- http://www.accessww.com/
-- is an established marketing company that provides a variety
of sales, communication and medical education services.  Its
spectrum of services includes medical meetings management,
medical publishing, editorial support, clinical trial
recruitment, patient compliance, multilingual teleservices,
product stocking and database management, among others.  Access
Worldwide has about 1,000 employees in offices throughout the
United States and the Philippines.

At March 31, 2006, Access Worldwide Communications, Inc.'s
balance sheet showed a US$6,105,582 stockholders' deficit
compared to a US$5,060,322 deficit at Dec. 31, 2005.


ACCESS WORLDWIDE: Sells Telemanagement Services for US$10.5 Mil
---------------------------------------------------------------
Access Worldwide Communications, Inc. (OTC Bulletin Board: AWWC)
signed an agreement to sell Telemanagement Services, Inc., doing
business as TMS Professional Markets Group, to a limited
liability company owned and controlled by Palm Beach Capital, in
a cash transaction valued at approximately US$10.5 million.

Telemanagement Services provide marketing services to the
Pharmaceutical industry from its 350-seat call center in Boca
Raton, Florida.  Telemanagement Services represented
approximately 38% of the revenues of Access for the five months
ended May 2006.  After the closing of the transaction, Access
will operate approximately 700 communications seats in three
locations in the United States and 350 seats in Manila,
Philippines, with an approximate monthly run rate of
US$2.1 million as of May 2006.

"We expect to close on or before July 31st," Shawkat Raslan,
Chairman and Chief Executive Officer of Access Worldwide,
commented.  "With the sale of Telemanagement Services, Inc., we
can now focus on and allocate more resources to continue to
expand our off shore capability and capacity."

                     About Access Worldwide

Based in Boca Raton, Florida, Access Worldwide Communications,
Inc. -- http://www.accessww.com/-- is an established marketing  
company that provides a variety of sales, communication and
medical education services.  Its spectrum of services includes
medical meetings management, medical publishing, editorial
support, clinical trial recruitment, patient compliance,
multilingual teleservices, product stocking and database
management, among others.  Access Worldwide has about 1,000
employees in offices throughout the United States and the
Philippines.

                      Going Concern Doubt

BDO Seidman, LLP, in West Palm Beach, Florida, raised
substantial doubt about Access Worldwide Communications, Inc.'s
ability to continue as a going concern after auditing the
Company's consolidated financial statements for the years ended
Dec. 31, 2005, and 2004.  The auditors pointed to the Company's
recurring losses from operations, negative cash flows, and
accumulated deficit.

At March 31, 2006, Access Worldwide Communications, Inc.'s
balance sheet showed a stockholders' deficit of US$6,105,582,
compared to a US$5,060,322 deficit at Dec. 31, 2005.


ACCESS WORLDWIDE: Gets Default Confirmation from CapitalSource
--------------------------------------------------------------
In a Form 8-K filing with the United States Securities and
Exchange Commission, Access Worldwide Communications, Inc.,
disclosed that on June 15, 2006, it received confirmation from
CapitalSource Finance, LLC, of a default on a certain Revolving
Credit, Term Loan and Security Agreement dated as of June 10,
2003, as amended.  The default was a result of the Company's
non-compliance with the minimum EBITDA financial covenant, as
defined in the Debt Agreement.

As a result of the Default, the Company says that CapitalSource
may exercise its rights and remedies as set forth in the Debt
Agreement, including, among other things:

    (i) an increase in the applicable rate of interest to the
        default rate in accordance with the Debt Agreement;

   (ii) declare any and all loans or notes, all interest thereon
        and all other obligations to be due and payable
        immediately, the outstanding balance as of May 31, 2006,
        was approximately US$5.5 million;

  (iii) terminate future obligations under the Debt Agreement;
        or

   (iv) exercise any or all of the other rights and remedies
        provided under the Debt Agreement.

The Company reports that it is currently exploring strategic
alternatives which could enable it to restructure its current
financing structure.

Based in Boca Raton, Florida, Access Worldwide Communications,
Inc. -- http://www.accessww.com/-- is an established marketing  
company that provides a variety of sales, communication and
medical education services.  Its spectrum of services includes
medical meetings management, medical publishing, editorial
support, clinical trial recruitment, patient compliance,
multilingual teleservices, product stocking and database
management, among others.  Access Worldwide has about 1,000
employees in offices throughout the United States and the
Philippines.

                      Going Concern Doubt

BDO Seidman, LLP, in West Palm Beach, Florida, raised
substantial doubt about Access Worldwide Communications, Inc.'s
ability to continue as a going concern after auditing the
Company's consolidated financial statements for the years ended
Dec. 31, 2005, and 2004.  The auditors pointed to the Company's
recurring losses from operations, negative cash flows, and
accumulated deficit.

At March 31, 2006, Access Worldwide Communications, Inc.'s
balance sheet showed a stockholders' deficit of US$6,105,582,
compared to a US$5,060,322 deficit at Dec. 31, 2005.


ACCESS WORLDWIDE: Issues Promissory Note & Warrants for $2 Mil.
---------------------------------------------------------------
Access Worldwide Communications, Inc., discloses that on
June 12, 2006, it issued a promissory note to Charles Henri Weil
in exchange for US$2,000,000.  The Note will mature four months
from the Issuance Date.

In addition to the Note, the Company issued 200,000 warrants to
the Holder on the Issuance Date.  The Warrant was fully vested
upon the Issuance Date and has an exercise price equal to
US$0.01 per share.  The Warrant will remain exercisable until
the date that is 10 years from the Issuance Date.

A full-text copy of the promissory note dated June 12, 2006, is
available for free at http://researcharchives.com/t/s?bd5  

A full-text copy of the warrant certificate dated June 12, 2006,
is available for free at http://researcharchives.com/t/s?bd6  

Headquartered in Boca Raton, Florida, Access Worldwide
Communications, Inc. (OTCBB: AWWC) -- http://www.accessww.com/
-- is an established marketing company that provides a variety
of sales, communication and medical education services.  Its
spectrum of services includes medical meetings management,
medical publishing, editorial support, clinical trial
recruitment, patient compliance, multilingual teleservices,
product stocking and database management, among others.  Access
Worldwide has about 1,000 employees in offices throughout the
United States and the Philippines.

                      Going Concern Doubt

BDO Seidman, LLP, in West Palm Beach, Florida, raised
substantial doubt about Access Worldwide Communications, Inc.'s
ability to continue as a going concern after auditing the
Company's consolidated financial statements for the years ended
Dec. 31, 2005, and 2004.  The auditors pointed to the Company's
recurring losses from operations, negative cash flows, and
accumulated deficit.

At March 31, 2006, Access Worldwide Communications, Inc.'s
balance sheet showed a stockholders' deficit of US$6,105,582,
compared to a US$5,060,322 deficit at Dec. 31, 2005.


FEDDERS CORPORATION: Posts US$62 Million Net Loss in 2005
---------------------------------------------------------
Fedders Corporation delivered its annual report for the year
ended Dec. 31, 2005, to the Securities and Exchange Commission
on March 31, 2006.

Fedders posted a US$62 million net loss for the year ended
December 31, 2005, in contrast to a US$26.1 million net loss in
the prior year.

Net sales decreased 25.5% in 2005 to US$297.7 million, compared
to US$399.5 million of net sales for the year ended Dec. 31,
2004.  Net sales in the Heating, Ventilation, Air Conditioning
and Refrigeration Segment of US$267.5 million in 2005 decreased
28.1% from US$372 million in 2004 due primarily to lower sales
of room air conditioners resulting from high inventory levels at
room air conditioner customers in key North American markets,
caused by cooler than normal summer weather in 2004.

The Company's balance sheet at Dec. 31, 2005, showed
US$331,050,000 in total assets and US$331,110,000 in total
liabilities, resulting in a de minimis stockholders' deficit.

A full text-copy of the regulatory filing is available for free
at http://researcharchives.com/t/s?833  

                       Senior Notes Default

In 2004, Fedders North America, Inc., issued Senior Notes
bearing interest at 9-7/8% with an aggregate $155 million
principal amount maturing in 2014.  FNA issued the notes to
refinance US$150 million outstanding of 9-3/8% Senior
Subordinated Notes due in 2007.

FNA defaulted on the terms of the 9-7/8% Senior Notes on
June 24, 2005, after failing to timely file with the SEC its
annual report for the year ended Dec. 31, 2004.

On Sept. 13, 2005, holders of a majority in aggregate principal
amount of the outstanding Senior Notes waived the default and
adopted the First Supplemental Indenture and Waiver.  The waiver
period established under the First Supplemental Indenture ended
on Dec. 31, 2005.  During the Waiver Period an additional 100
basis points of interest accrued on the principal amount of the
Senior Notes.  As of Dec. 31, 2005, US$463,000 was accrued.  The
amount was paid on March 1, 2006.

                          About Fedders

Headquartered in Liberty Corner, New Jersey, Fedders
Corporation, -- http://www.fedders.com/-- is a leading global  
manufacturer and marketer of air treatment products, including
air conditioners, air cleaners, dehumidifiers, and humidifiers.  
The company has production facilities in the United States in
Illinois, North Carolina, New Mexico, and Texas and
international production facilities in China, India and the
Philippines.  All products are manufactured to Fedders' one
worldwide standard of quality.

The Company's balance sheet at Dec. 31, 2005, showed
US$331,050,000 in total assets and US$331,110,000 in total
liabilities, resulting in a de minimis stockholders' deficit.

                          *     *     *

As reported in the Troubled Company Reporter on July 5, 2005,
Standard & Poor's Ratings Services lowered its corporate credit
ratings on air treatment products manufacturer Fedders Corp. and
Fedders North America Inc. to 'CC' from 'CCC'.  At the same
time, Fedders North America's senior unsecured debt rating was
lowered to 'C' from 'CC'.  S&P said the outlook remains
negative.


PHILCOMSAT HOLDINGS: CA Prohibits SEC from Intervening in Case
--------------------------------------------------------------
The Court of Appeals has issued a 60-day restraining order
against the Securities & Exchange Commission, prohibiting it
from requiring Philcomsat Holdings Corp. to create a nominations
and elections committee and to call an annual stockholders'
meeting, the Philippine Star reveals.

The decision is in response to a motion filed by a group of
shareholders led by Manuel Nieto, Jr., seeking to take the
Philcomsat case out of the SEC's jurisdiction, the Star adds.

ABS-CBN News relates that the Court's Special 14th Division
handed down a two-page decision barring the SEC and SEC General
Counsel Vernette G. Umali-Paco from implementing two earlier
decisions involving the Company.  According to the Manila Times,
the Court found that there was "prima facie [at first sight]
doubt over SEC's jurisdiction over issues involving intra-
corporate controversies, which are now within the original
exclusive jurisdiction of the regular courts."
   
The Troubled Company Reporter - Asia Pacific reported on May 10,
2006, that the Company has not held any shareholders' meeting
since 2004, when Mr. Nieto and his nephew, Benito Araneta, were
elected to the board of directors.  Mr. Nieto is the
Company's president and Mr. Araneta is chairman of the board.

A subsequent TCR-AP report on May 31, 2006, stated that the SEC
ordered Philcomsat to hold a stockholders' meeting on April 17,
2006, to allow shareholders to decide whether to let the Nieto
group stay on to manage the Company.  The Nieto group countered
with a proposal to hold the meeting on April 18, 2006, which
excluded the election of the Board and extended their term as
board members.

The SEC rejected the Nieto group's counterproposal and ordered
the Company to hold a shareholders' meeting on May 4, 2006.  Mr.
Nieto filed a petition with the Court of Appeals to seek a
temporary restraining order to halt the May 4 Meeting.  The SEC
had delayed its decision on when the Company should hold its ASM
as the Company has been ordered to submit a report of the
Supreme Court decision on the Company's confiscated shares.

The Court ordered the SEC and SEC General Umali-Paco to comment
on Mr. Nieto's petition within 10 days of receiving the Court
resolution, and also ordered Mr. Nieto to respond within five
days of getting the comments.  All parties were ordered to state
their positions on the plea to remove PHC from SEC jurisdiction,
the Times relates.  A TCR-AP report on May 31, 2006, stated that
PHC's management and shareholders had signed a memorandum of
understanding to settle the dispute, where each of the six
stockholder-families would appoint a representative to the
Company's board of directors.  They also agreed that Mr. Nieto,
one of the incorporators of Philcomsat Holdings' parent firm,
Philippine Overseas Telecommunications Corp., would be the
chairman emeritus of Philcomsat Holdings.

The parties also agreed to withdraw any pending cases between
them or the stockholders, and not to publish any press release
against any Company stockholder.

According to the Star, Mr. Nieto's group sought an independent
audit of the books and records of Philippine Overseas
Telecommunications and Philippine Communication Satellite Corp.,
which is 100%-owned by POTC, in order to resolve the dispute
between Philcomsat group shareholders.  The Presidential
Commission on Good Government, which owns 35% of PHC, said that
the Sandiganbayan is the proper authority to supervise all three
firm's annual elections.

                          *     *     *

Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc.,
-- was incorporated on May 10, 1956.  On January 10, 1997, the
Company approved amendments to its Articles of Incorporation,
changing its primary purpose from embarking in the discovery,
exploitation, development and exploration of mineral oils,
petroleum in its natural state, rock or carbon oils, natural
oils and other volatile mineral substances to a holding company.

According to a Troubled Company Reporter - Asia Pacific report
on May 18, 2006, Philcomsat Holdings has not declared dividends
for the past two fiscal years.

For the year ended Dec. 31, 2005, Philcomsat Holdings generated
PHP62.3 million gross income, against PHP67.31 million in 2004,
whereas its 2005 interest from money market placements amounted
to PHP60.10 million, compared to PHP64.30 million in 2004.  
According to the Company, falling interest rates and its
investment in Telecommunications Center, Inc., contributed to
the decrease in interest income.  It also incurred realized
foreign exchange loss of PHP4.08 million in 2005, against a
PHP0.89 million gain the previous year.

The Company did not pay management fees and amortization of
deferred creditors for the years 2003 to 2005.


VITARICH CORP: Aims to Break Even This Year
-------------------------------------------
Vitarich Corp. disclosed to the Philippine Stock Exchange that
after the Company's annual stockholders' meeting held on
June 30, 2006, Chairman Rogelio M. Sarmentio stated that they
plan to reduce losses by 50% to around PHP125 million this year
by continuously shifting the focus to hog and aqua from chicken
and poultry feeds, in an effort to break even.

Vitarich Corporation was incorporated and organized in the
Philippines.  As at Dec. 31, 2005 and 2004, the Company holds
100% interests in Philippines' Favorite Chicken, Inc., and
Gromax, Inc., both domestic corporations.  The Company is
presently engaged in poultry breeding and in the manufacture and
distribution of various poultry products such as chicken, animal
and aqua feeds, and day-old chicks, among others.

After auditing Vitarich's 2005 annual report, Punongbayan &
Araullo raised substantial doubt the Company's ability to
continue as a going concern, due to significant losses for the
past three years, including net losses worth PHP249.3 million in
2005 and PHP291.2 million in 2004, resulting in significant
deficit amounting to PHP1.8 billion as of Dec. 31, 2005.


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

ASIALEC SINGAPORE: Creditors' Proofs of Debt Due on August 7
------------------------------------------------------------
Asialec Singapore Private Limited notifies parties-in-interest
of its intention to distribute dividend to creditors.

In this regard, the Company's liquidators will be receiving
proofs of debt or claims from creditors until August 7, 2006.

Contact: Neo Ban Chuan
         Yeap Lam Kheng
         c/o 16 Raffles Quay #22-00
         Hong Leong Building
         Singapore 048581


BAAN ASIA: To Consider Liquidator's Resignation Plan
----------------------------------------------------
Contributories and creditors of Baan Asia Pacific Pte Ltd will
convene on August 1, 2006, at 10:00 a.m. and 2:00 p.m.
respectively.

During the meetings, contributories and creditors will be asked
to allow Wee Aik Guan to resign as the Company's liquidator of
the Company.  Upon his resignation, Mr. Wee will be released
from all liability in respect of any act or default made by him
in the affairs of the Company or otherwise in relation to his
conduct as liquidator.

Contact: Tam Chee Chong  
         Wee Aik Guan
         Joint & Several Liquidators
         c/o Deloitte & Touche
         6 Shenton Way #32-00
         DBS Building Tower Two
         Singapore 068809


BAILY CLADDING: Liquidator to Discuss his Resignation on July 21
----------------------------------------------------------------
Wee Aik Guan will discuss his plans to resign as liquidator of
Baily Cladding System Pte Ltd with the Company's contributories
and creditors at separate meetings on July 21, 2006, at 10:00
a.m. and 2:00 p.m. respectively.

Upon his resignation, Mr. Wee will be released from all
liability in respect of any act or default made by him in the
affairs of the Company or otherwise in relation to his conduct
as liquidator.

Contact: Tam Chee Chong  
         Wee Aik Guan
         Joint & Several Liquidators
         c/o Deloitte & Touche
         6 Shenton Way #32-00
         DBS Building Tower Two
         Singapore 068809


LINDETEVES-JACOBERG: Chief Executive Officer Steps Down
-------------------------------------------------------
Heinz Gorssman on July 7, 2006, resigned as as chief executive
officer, director and chairman of the Lindeteves-Jacoberg
Limited.

With immediate effect, Giovanni Bindoni was appointed to take
over the position.  Mr. Bindoni will be assisted by Neil
Stewardson who currently holds the position of Deputy CEO.

               About Lindeteves-Jacoberg Limited

Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was  
incorporated in Singapore on December 11, 1947 as part of a
Dutch international trading group.  Its principal activities
consist of investment holding, provision of warehousing and
rental services and acting as specialist mechanical and
electrical contractor for environmental engineering projects.
The Company is undergoing a debt restructuring exercise by way
of a Scheme of Arrangement with its creditors.


LINDETEVES-JACOBERG: Welcomes New Chief Operating Officer
---------------------------------------------------------   
Lindeteves-Jacoberg Ltd on July 7, 2006, appointed Johann Mandl
as its new chief operating officer.    

Mr. Mandl will oversee the production in all the manufacturing
facilities of the Group.    

In the past, Mr. Mandl joined AT&S Fehring as a Production
Manager in 1990 and was promoted to Location Manager in 1999. On
February 2003, he was appointed as Managing Director of AT&S
Klagenfurt.  Mr. Mandl has more than 20 years of experience in
production and plant maintenance.    

               About Lindeteves-Jacoberg Limited

Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was  
incorporated in Singapore on December 11, 1947 as part of a
Dutch international trading group.  Its principal activities
consist of investment holding, provision of warehousing and
rental services and acting as specialist mechanical and
electrical contractor for environmental engineering projects.
The Company is undergoing a debt restructuring exercise by way
of a Scheme of Arrangement with its creditors.

   
RAYNEON INDUSTRIES: Creditors' Proofs of Claim Due on August 5
--------------------------------------------------------------
Creditors of Rayneon Industries (Singapore) Private Limited are
required to prove their claims not later than August 5, 2006,
for them to share in any distribution the Company will make.

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


REFCO INC: Creditors Committee Wants Respondents to Present Docs
----------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in
Refco, Inc., and its debtor-affiliates cases, asks the United
States Bankruptcy Court for the Southern District of New York to
compel 22 respondents to produce documents on or before the date
that is 30 days after a corresponding subpoena is served.

The Court had previously authorized the Committee to serve
subpoenas calling for production of documents on 16 individuals
and entities regarding Refco, Inc.'s operations.  The Committee
has been pursuing discovery from the subpoena recipients.

Based on the Debtors' public statements, the criminal complaint
for securities fraud filed against Phillip R. Bennett, and the
Committee's preliminary investigation, the Committee has learned
of additional persons and entities who likely have information
relevant to:

    -- the Debtors' property and its location;

    -- the assets, liabilities and financial condition of the
       Debtors;

    -- matters that may affect the administration of the
       Debtors' estates; and

    -- the identification and prosecution of certain potential
       claims against third parties by a representative of the
       Debtors' estates.

The 22 Respondents are:

   * Arthur Anderson, LLP;
   * Delta Flyer Fund, LLC/Eric M. Flanagan;
   * Micky Dhillon & the Jasdeep Dhillon Trustee MSD Family
Trust;
   * Thomas Dittmer;
   * Ernst & Young LLP;
   * Stephen Grady;
   * Thomas Hackl;
   * Ingram Micro Inc.;
   * Mark Kavanagh;
   * Dennis Klejna;
   * Levine Jacobs and Co. LLC;
   * Eric Lipoff;
   * McDermott Will & Emery;
   * Joseph Murphy;
   * Frank Mutterer;
   * Victor Niederhoffer/Niederhoffer Investments Inc.;
   * Sean O'Shea and Edward McElwreath;
   * PricewaterhouseCoopers, LLP;
   * William M. Sexton;
   * Philip Silverman;
   * Chris Sugrue; and
   * David Weaver.

Specifically, the Committee seeks discovery from the Respondents
with respect to, among other things:

   -- a previously undisclosed receivable owed to the Debtors
      by Refco Group Holdings, Inc., for approximately
      $430,000,000;

   -- the Debtors' accounting and regulatory policies;

   -- the financial dealings of the Respondents with the Debtors
      and with Mr. Bennett, RGHI, or any of the Recipients of
      the Initial Rule 2004 Subpoenas;

   -- insider payments received by the Respondents; and

   -- any claims arising out of an internal public offering and
      a Leveraged Recapitalization.

Scott A. Edelman, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
in New York, tells Judge Drain that the requested documents will
provide the Committee with information to properly discharge its
duties to the unsecured creditors under Section 1103(c) of the
Bankruptcy Code.

Mr. Edelman asserts that the requested discovery is narrowly
tailored to the factual matters raised or implicated by various
issues and events that precipitated the Debtors' Chapter 11
cases.  These requests are, however, broad enough to permit the
Committee to perform the investigation it is obligated to
perform.

Mr. Edelman adds that compliance with the Rule 2004 document
requests by the Respondents will not be burdensome and can be
achieved without undue hardship in the time period requested.

A list of the Requested Documents is available at no charge at:

             http://ResearchArchives.com/t/s?ce3

The Committee reserves its right to seek to take depositions of
the Respondents at a future date and to serve supplemental and
additional document requests.

                  Committee and Ingram Stipulate

In a Court-approved stipulation, the Creditors Committee and
Ingram agree that the Committee will limit the scope of its
request for discovery from Ingram to all documents that Ingram
has provided to the Securities and Exchange Commission, any
Committee of Congress, any federal, state or other regulatory
authority or agency, any grand jury, or in any litigation or
arbitration concerning Refco or RGHI, without waiving or
prejudicing the Committee's right to seek the production of any
additional documents from Ingram.

The Committee and Ingram also agree that the production and
disclosure of any documents produced by Ingram will be governed
by the terms of a Protective Order governing the production and
use of confidential material, dated April 26, 2006.

                         About Refco Inc.

Based in 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.

Refco Capital Markets Ltd. is Refco's operating subsidiary based
in Bermuda.

The Company and 23 of its affiliates filed for Chapter 11
protection on Oct. 17, 2005.  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.  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: Chap. 11 Trustee Wants Capstone as Financial Advisor
---------------------------------------------------------------
Marc S. Kirschner, the Chapter 11 Trustee of the estate of Refco
Capital Markets, Ltd., seeks the United States Bankruptcy Court
for the Southern District of New York's authority to employ
Capstone Advisory Group, LLC, as his special financial advisor
with respect to intercreditor and intercompany interests, nunc
pro tunc to June 2, 2006.

There are significant intercreditor and other issues, including
intercompany claims, which are unique to RCM and with respect to
which RCM's interests are, or may be, in direct conflict with
the interests of the other Chapter 11 Debtors' estates and
stakeholders, Timothy B. DeSieno, Esq., at Bingham McCutchen
LLP, in New York, explains.

Capstone will:

   a.  assist the Trustee with analysis of RCM's books and
       records relating to intercompany transactions,
       intercompany accounting and related accounts of
       RCM;

   b.  advise the Trustee regarding any proposed transactions
       affecting the RCM estate or the resolution of the RCM
       case;

   c.  advise the Trustee regarding negotiations with
       stakeholders;

   d.  assist the Trustee and his counsel in negotiating and
       effecting a comprehensive resolution of the RCM
       bankruptcy;

   e.  perform other necessary financial advisory services for
       the Trustee in connection with the Chapter 11 case; and

   f.  provide valuation work and expert testimony as
       determined by the Trustee to be necessary.

Capstone will be paid based on the actual hours worked charged
at its standard hourly rates and reimbursed for its out-of-
pocket expenses.  The firm's current rates are:

     Position              Hourly Rate
     --------              -----------
     Executive Director    $530 - $575
     Staff                 $250 - $450
     Support Staff          $75 - $175

Capstone professionals who will have primary responsibility for
representing the Trustee are:

     Professional          Position at Capstone
     ------------          --------------------
     David Galfus          Member and Executive Director
     Robert Manzo          Executive Director
     Jack Surdoval         Managing Director

Other Capstone professionals may assist in the representation as
needed.

Mr. Galfus attests that Capstone (i) is not a creditor, an
equity security holder or an insider of RCM, or any other
Chapter 11 Debtor; (ii) is not and was not within two years
before the Petition Date, a director, officer or employee of RCM
or any other Chapter 11 Debtor; and (iii) does not hold or
represent any interest that is materially adverse to the
interest of the RCM estate or of any class of creditors or
equity security holders.

Capstone's professionals have played significant roles in many
of the largest and most complex cases under the Bankruptcy Code,
including the chapter 11 cases of Adelphia Communications
Corporation, Ames Department Stores, Inc., Enron Corp., Federal
Mogul, Inc., Mirant Energy, Inc., Owens Corning, Inc., Vencor,
Inc., and W.R. Grace.

                         About Refco Inc.

Based in 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.

Refco Capital Markets Ltd. is Refco's operating subsidiary based
in Bermuda.

The Company and 23 of its affiliates filed for Chapter 11
protection on Oct. 17, 2005.  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.  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: Court Says SPhinX Need Not Comply with Subpoenas
-----------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York denied the request of Merrill Lynch International,
SPhinX Access LLC, SPhinX Access Ltd., Raymond James &
Associates, Raymond James Financial Services, Rydex Capital
Partners LLC and Rydex Capital Partners SPhinX Fund to compel
SPhinX Managed Futures Funds SPC's compliance with subpoenas and
deposition notices, on the grounds that:

   (i) The Subpoenas seeking discovery from SPhinX and its
       board of directors and outside counsel call for
       information irrelevant to the issues on the approval of
       the proposed settlement of an Adversary Proceeding
       between SPhinX and the Official Committee of Unsecured
       Creditors.

  (ii) Compliance with the Subpoenas would be unduly burdensome.

(iii) The Investors lack standing to object to the SPhinX
       Settlement Motion.

                     Investors Request

The Investors had sought information related to an agreement
between SPhinX and the Official Committee of Unsecured Creditors
appointed in Refco Inc., and its debtor-affiliates' cases, to
settle a preferential action the Committee filed against SPhinX.

Pursuant to the settlement, SPhinX agreed to return
US$263,000,000 of the US$312,046,266 it received from Refco
Capital Markets, Ltd., days before the bankruptcy filing, and
waive and release certain claims against the Debtors.

The Investors objected to the settlement, arguing that it was
not fair and equitable, and is not in the public interest.  The
Investors said they stand to lose millions of dollars as a
result of the settlement.

The Investors served a series of discovery requests on persons
and entities with knowledge of the facts pertinent to the
settlement agreement to ascertain the facts that played into
SPhinX's capitulation, and to test the settling parties'
assertions of fairness, equity, lack of collusion and adequate
representation.

The Investors, however, have been stonewalled in their effort.

SPhinX, RAI and Mr. Butt have asked the Court to quash the
Investors' subpoenas because the Investors have no right to be
heard in connection with the proposed settlement, and hence no
right to information about it.  RAI said the Investors are not
creditors or equity holders of the Debtors and, therefore, do
not have standing.

SPhinX has refused to produce its two directors -- the
individuals who approved the settlement on SPhinX's behalf -- in
response to deposition notices.

PlusFunds served the Investors with a one-sentence "objection"
the day before the subpoena's return date and refused to produce
a witness.

Marc T.G. Dworsky, Esq., at Munger, Tolles & Olson LLP, in Los
Angeles, California, asserts that the Investors have a right to
be heard under the "party in interest" provisions in Section
1109(b) of the Bankruptcy Code.  The Investors are the ones
paying the price of the proposed settlement.  Being an
investment vehicle, SPhinX is not parting with a cent of its own
money to fund the settlement.

Mr. Dworsky also tells the Court that, although SPhinX is duty-
bound to represent the Investors' interests, it instead seeks to
sacrifice those interests in the service of the "utterly
illegitimate interests" of the SPhinX board of directors and
their allies at Refco.

After repeatedly reassuring the Investors that it would
vigorously protect their interests in the preference action, Mr.
Dworsky relates that SPhinX unceremoniously ditched all of its
pleaded defenses on the eve of a summary judgment hearing in the
preference action.  Instead of simply conceding defeat in that
action, SPhinX also abandoned its claim under Section 502(h) of
the Bankruptcy Code for about half its value.

The Investors have learned that while SPhinX was run entirely by
PlusFunds, over the course of the preference action, Refco came
to own PlusFunds as a result of Christopher Sugrue's defaulting
on over US$200,000,000 of never disclosed loans to him by Refco
that were secured by all of PlusFunds' stock.  Mr. Sugrue is a
director at SPhinX and chairman and co-founder of PlusFunds.

These developments naturally raised many very red flags, Mr.
Dworsky states.

Various Merrill Lynch entities including:

   * SPhinX Access LLC and SPhinX Access Ltd., two feeder funds
     sponsored by Merrill Lynch Alternative Investments LLC,
     which, through their investments in SPhinX On-Shore
     Investment Fund LLC and SPhinX Ltd., respectively, have
     approximately US$17,000,000 in exposure to SPhinX; and

   * Merrill Lynch International has approximately US$8,000,000
     in exposure to SPhinX, through direct investments in SPhinX
     Ltd.

Customers of Raymond James, through their investments in the
SPhinX Investment Fund, LP, SPhinX, Ltd., and the S&P Managed
Futures Index Fund, LP, have almost US$16,000,000 in exposure to
SPhinX.

The Rydex entities, through their investments, have between
US$18,000,000 to US$22,000,000 in exposure to SPhinX.

Masonic Hall & Asylum Fund supports Merrill Lynch, et al.'s
request.

                  SphinX & RAI Objections

(1) SPhinX

On behalf of SPhinX Managed Futures Fund SPC, David A. Crichlow,
Esq., at Pillsbury Winthrop Shaw Pittman LLP, in New York, tells
the Court that the Investors are trying to pursue a sweeping
fishing expedition to explore each of their theories about how
SPhinX supposedly acted in bad faith in connection with the
settlement.

Mr. Crichlow notes that the Creditors Committee has voluntarily
provided the Investors with all discovery taken in the
preference action, and the Investors already have access to the
court papers on the docket.  He contends that access to the full
litigation record is sufficient for the Investors to evaluate
the proposed settlement -- to the extent they have any standing
to even do so.

The Investors may be displeased with the terms of the
settlement, but their displeasure flows from the perceived
injury to their indirect equity interests in SPhinX flowing
therefrom, according to Mr. Crichlow.  The Investors are not
being forced to "fund" the settlement; rather, they made the
decision long ago to "fund" SPhinX, Mr. Crichlow says.

(2) RAI

Refco Alternative Investments, LLC, and its president, Richard
Butt, insist that the subpoenas should be quashed because the
SPhinX Investors do not have standing.  

Eric M. Davis, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in Wilmington, Delaware, points out that any breach of
fiduciary duty that the Investors may wish to have addressed is
a breach of fiduciary duty by SPhinX, not the Debtors.  Any
remedies for that breach should be sought from SPhinX, not from
the Debtors, and not in the Bankruptcy Court.

                         About Refco Inc.

Based in 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.

Refco Capital Markets Ltd. is Refco's operating subsidiary based
in Bermuda.

The Company and 23 of its affiliates filed for Chapter 11
protection on Oct. 17, 2005.  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.  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.


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

CENTRAL PAPER: Operations on Hold, Planner Seeks Solutions
----------------------------------------------------------
Central Paper Industry Public Co. Ltd informed the Stock
Exchange of Thailand on June 21, 2006, that it would temporarily
cease its production after PTT Public Company Ltd stopped
supplying natural gas to the Company.  Central Paper said that
it had delayed making payments of its natural gas expense
prompting PTT to stop the supply.

Subsequently, the Company's plan administrator, Kriangkrai
Suttiwerawat, proposed to amend Central Paper's Rehabilitation
Plan to solve the dispute with PTT and to eventually enable the
Company to resume its operations.  On July 4, 2006, Mr.
Suttiwerawat sought the Central Bankruptcy Court's approval to
make the amendments.

Central Paper informed the SET that Mr. Suttiwerawat is
negotiating with Thai Assets Management Corporation, the
Company's major creditor, and with a new investor with regard to
the amendments.

The SET disclosure relates that Mr. Suttiwerawat is considering
laying off major Central Paper employees while retaining the
minor employees for the maintenance of machines and factory
buildings.  The Company would also cancel operations at its
branch at BUI Building, Suriwong Road.

The Company still awaits further progress regarding the Plan
Amendment, its negotiations with PTT, and it efforts to find a
new investor.

                          *     *     *

Established in 1973, Central Paper Industry Public Company
Limited -- http://www.centralpaper.thailand.com/-- produces and  
distributes uncoated printing paper including fine printing
paper used in high quality printing tasks, newsprint paper used
in newspaper printing, and kraft paper used for making paper
bags.

On March 16, 2004, the Company filed a petition for
rehabilitation with Thailand's Central Bankruptcy Court.  
Subsequently, on February 1, 2005, the Bankruptcy Court approved
the Company's Business Reorganization Plan.

Currently, the Company is in the process of complying with its
Reorganization Plan.  However, in a disclosure with the Stock
Exchange of Thailand, the Company stated that it sustained
operating losses for several years and could not make a
repayment to one of its creditor group -- to whom it owes a
total of THB4.7 million.  Hence, the Central Paper said that the
repayment of debts in accordance with its Reorganization Plan
when they become due significantly depends on its abilities to
operate successfully in the future and to generate sufficient
cash flows from operations.  


TONGKAH HARBOUR: Seeks to List ADRs With U.S. Stock Exchange
------------------------------------------------------------
Tin and gold mining operator Tongkah Harbour Plc is seeking to
list its American Depository Receipts with the United States
Stock Exchange.

According to the Company's statement to the Securities and
Exchange of Thailand, Deutsche Bank is facilitating the trading
of its shares in the international investment market.

Currently, the ADR status of the Company is pending approval of
the U.S. Securities and Exchange Commission.   Once the ADRs are
approved, Tongkah Harbour will enter into a deposit agreement
with Deutsche Bank and it will be the first Thai company to be
listed in the U.S. market.

Bangkok Post recounts that Shin Corp Plc had previously planned
to seek listing on the Nasdaq exchange but was revoked due to
poor market condition.

                          *     *     *

Headquartered in Bangkok, Thailand, Tongkah Harbour Public
Company Limited -- http://www.tongkahharbour.co-- is primarily  
engaged in mining operations.  The Company is engaged in
offshore tin mining, gold exploration and mining, igneous rock
quarrying, as well as property development and management.

The Company had been listed under the Rehabco sector --
Companies under rehabilitation -- until July 3, 2006, when the
Thailand Stock Exchange reclassified the whole sector.  
Currently, SET categorized the Company under the "non-performing
group."  Companies under the group will retain their listing
status and will be obligated to comply with the SET
requirements.




                            *********


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

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