TCRAP_Public/060714.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  

              Friday, July 14, 2006, Vol. 9, No. 139

                            Headlines

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

A.E. & S.L. KERR: Members to Receive Wind-Up Report on July 17
ASSET TEMPORARY: To Declare First and Final Dividend on July 17
AUSTRALASIAN PROMOTIONAL: Members Decide to Wind Up Operations
BRANDS X: Creditors to Hear Wind-Up Report on July 18
COLUMBARD MANAGEMENT: Creditors Must Prove Debts by July 18

DAVLEN ROOF: Appoints Nicholas Crouch as Liquidator
E.KATZ MANUFACTURING: To Declare First Dividend on July 17
EAST COAST HORT: Court Hears CIR's Liquidation Bid
EDEN ELECTROPLATERS: Liquidation Process Commenced
E&J PACKAGING: Enters Liquidation Proceedings

FORTESCUE METALS: Proposed Woodstock-Abydos Rail Line Approved
H.R. COOK: Placed Under Voluntary Liquidation
HUNTER SUPPORT: Members Opt to Shut Down Firm
JOE THE TAXI: Inability to Pay the Debt Prompts Wind-Up
KENDOW CONSULTING: Appoints Joint Liquidators

MAYLYN PTY: Liquidator to Present Wind-Up Report on July 18
MAYSTRAL PTY: Names James Alexander Shaw as Liquidator
METAL STORM: Receives U.S. Marine Corps US$331,426 Contract
MOTIVATION (2001) LIMITED: Faces Liquidation Proceedings
MUSIC SYSTEMS: Court to Hear Liquidation Petition on July 31

PAREMATA HARBOUR: Creditors' Proofs of Claim Due on July 14
PASDONNAY PTY: To Declare Final Preferential Dividend on July 18
PETJEM INVESTMENTS: Liquidator to Give Final Report on July 18
PROTECTION FACTOR: Intends to Declare Dividend on July 17
QANTAS AIRWAYS: ACCC Accepts Orangestar Coordination Agreement

RMW HOLDINGS: Members to Receive Wind-Up Report
SHELLWAY PTY: Members' Final Meeting Fixed for July 17
SOAP DESIGN: Members and Creditors to Convene on July 17
TELSTRA CORPORATION: Sacks Technicians & Workers at Centers
TREEALLA PTY: Shuts Down Business Operations

WELLINGTON COLLEGE: Appoints Official Liquidators
WERLEMAN BROS.: Members and Creditors to Receive Wind-Up Report
WESTPOINT GROUP: Saville Buys Emu Brewery Site for AU$48.8 Mln
WORLD MANAGEMENT: Appoints Peter Ngan as Liquidator
YOUTH DIRECTIONS: Members Decide to Liquidate Business

ZANWAVE QLD: Final General Meeting Fixed for July 17
* Australian Inflation Expectations High in July, Survey Says


C H I N A   &   H O N G  K O N G

AGAPE UNITED: Court Orders Wind-Up
CHUEN KEE MOTOR: Faces Wind-Up Proceedings
EFFECT LEATHER: Court to Hear Wind-Up Bid on August 2
ETECH CONTROL: Creditors' & Contributories' Meetings Set July 19
H.K. TEAKWOOD: Prepares to Pay Final Dividend to Creditors

H.K. TEMPO: Wind-Up Bid Hearing Slated for August 9
HI-SPEED TRANSPORTATION: Court to Hear Wind-Up Petition August 2
LOLLY QUEEN: Wind-Up Petition Hearing Fixed on August 9
OCEAN GRAND: Alleged Accounting Mishap, Rating on CreditWatch
OCEAN GRAND: Bares Potential Accounting Mishap with Subsidiary

PACPO INVESTMENT: Wind-Up Hearing Scheduled for August 2
POWTEK ELECTRONICS: Court Issues Wind-Up Order
TAI ON ELECTRIC: Court to Hear Wind-Up Application on August 9
* Government's Action to Cool Down Economy Shows Result


I N D I A

LML LIMITED: Allots Equity Shares to Merrill Lynch
* Government Likely to Release Oil Bonds for Oil Retailers


I N D O N E S I A

PERUSAHAAN LISTRIK: Plans to Sue Consumers on Power Theft
PERUSAHAAN LISTRIK: To Sell Shares in Three Units in 2007


J A P A N

LIBERTY GLOBAL: Files Amended 2005 Annual Report with U.S. SEC
LIVEDOOR CO: Ex-CEO Was Actively Involved in Firm Takeovers


K O R E A

HANAROTELECOM: Posts KRW432-Bil Revenue for 1st Quarter 2006
HANAROTELECOM: Buys 1.3 Million New Shares in Affiliate
HANAROTELECOM: To Guarantee Affiliate's Lease for KRW90-Billion
HANAROTELECOM: Board Approves Loan for Affiliate
KANA SOFTWARE: Auditor Burr Pilger Expresses Going Concern Doubt

* Korea Introduces New Financial Regulations Effective July


M A L A Y S I A

CONSOLIDATED FARMS: Appeals Bourse's Decision to Delist Shares
JOHAN CERAMICS: Complies with Public Shareholding Requirement
KRAMAT TIN: June 30 Public Shareholding Spread Pegged at 47.10%
LITYAN HOLDINGS: Public Shareholding Stands at 74.74%
MALAYSIA AIRLINES: Seeks Shareholders' Okay on ADBU Termination

MALAYSIA AIRLINES: Chan Defends Floor Price Lifting
OLYMPIA INDUSTRIES: Enters Into Additional Restructuring Deals
PANGLOBAL BERHAD: Public Shareholding Spread Meets Requirement
PROTON HOLDINGS: Receives Huge Orders for Satria Neo
TANCO HOLDINGS: Awaits Court's Decision on RO Extension Request

TAP RESOURCES: Lists and Quotes Additional Shares


P H I L I P P I N E S

LEPANTO CONSOLIDATED: Mulls Restart of Copper Mining Operations
MANILA ELECTRIC: Vows Not To Compromise Customers
MAYNILAD WATER: France's Suez Mulls Stake Sale
MIRANT CORP: Will Sell Philippine Business
MIRANT CORP: Fitch Places B+ Rating on Watch Negative

MIRANT CORP: S&P Places B+ Corporate Credit Rating on Neg. Watch


S I N G A P O R E

BARING COMMUNICATIONS: Accepting Proofs of Debt Until August 7
FLEXSYS PRIVATE: Creditors Should Prove Debt by August 7
HAGEMEYER ASIA: Creditors' Proofs of Debt Due on August 7
L&M GROUP: May Sell Subsidiaries to CSC Holdings
PERALATAN BIOSAINS: Pays Preferential Dividend to Creditors

SPH MEDIAWORKS: Creditors' Proofs of Claim Due on July 28


T H A I L A N D

GLOBAL WATER: Plans New Marketing Strategy to Address Losses


* Large Companies With Insolvent Balance Sheets

     - - - - - - - -

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

A.E. & S.L. KERR: Members to Receive Wind-Up Report on July 17
--------------------------------------------------------------
Members of A. E. & S. L. Kerr Pty Limited will hold a meeting on
July 17, 2006, at 10:30 a.m., for them to receive Liquidator G.
M. Rambaldi 's final accounts of the Company's wind-up and
property disposal exercises.

The Liquidator can be reached at:

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


ASSET TEMPORARY: To Declare First and Final Dividend on July 17
---------------------------------------------------------------
Asset Temporary Personnel Pty Limited will declare its first and
final dividend for employees on July 17, 2006.

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

According to the Troubled Company Reporter - Asia Pacific, the
Company commenced a wind-up of its operations on October 3,
2005.

The liquidator can be reached at:

         Joseph Loebenstein
         Loebenstein Insolvency Services Pty Ltd
         203 Balaclava Road
         Caulfield, North Victoria 3161
         Australia


AUSTRALASIAN PROMOTIONAL: Members Decide to Wind Up Operations
--------------------------------------------------------------
After an extraordinary general meeting on June 15, 2006, the
members of Australasian Promotional Products Group Pty Limited
decided to voluntarily wind up the Company's operations.

Creditors subsequently appointed Michael John Morris Smith as
liquidator.

The Liquidator can be reached at:

         Michael John Morris Smith
         Smith Hancock Chartered Accountants
         Level 4, 88 Phillip Street
         Parramatta, New South Wales 2150
         Australia


BRANDS X: Creditors to Hear Wind-Up Report on July 18
-----------------------------------------------------
A final meeting of the creditors of Brands X Change Pty Limited
will be held on July 18, 2006, at 11.00 a.m.

During the meeting, Liquidator Joseph Loebenstein will report on
the Company's wind-up and property disposal exercises.

The Liquidator can be reached at:

         Joseph Loebenstein
         Loebenstein Insolvency Services Pty Ltd
         203 Balaclava Road
         Caulfield North, Victoria 3161
         Australia


COLUMBARD MANAGEMENT: Creditors Must Prove Debts by July 18
-----------------------------------------------------------
Liquidator Neil Raymond Donnell requires the creditors of
Columbard Management N.Z. Ltd to submit their proofs of debt by
July 18, 2006.

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

The Liquidator can be reached at:

         Neil Raymond Donnell
         Grant Thornton Auckland Limited
         P.O. Box 1961, Auckland
         New Zealand


DAVLEN ROOF: Appoints Nicholas Crouch as Liquidator
---------------------------------------------------
At general meeting of the members of Davlen Roof Tiling Pty
Limited held on June 15, 2006, Nicholas Crouch was appointed as
liquidator to supervise the Company's wind-up activities.

The Liquidator can be reached at:

         Nicholas Crouch
         Crouch Insolvency Chartered Accountants
         Level 28, 31 Market Street
         Sydney, New South Wales 2000
         Australia


E.KATZ MANUFACTURING: To Declare First Dividend on July 17
----------------------------------------------------------
E.Katz Manufacturing Jewellers (A.C.T.) Pty Limited notifies
parties-in-interest of its intention to declare its first
dividend on July 17, 2006.

Creditors whose proofs of claim have not been admitted on
June 30, 2006, will be excluded from the dividend distribution.

The liquidator can be reached at:

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


EAST COAST HORT: Court Hears CIR's Liquidation Bid
--------------------------------------------------
On July 13, 2006, the High Court of Napier heard a wind-up
petition against East Coat Hort. Contractors Ltd

The Commissioner of Inland Revenue filed the wind-up application
on May 17, 2006.

The plaintiff's solicitor can be reached at:

         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


EDEN ELECTROPLATERS: Liquidation Process Commenced
--------------------------------------------------
Eden Electroplaters Limited commenced liquidation of its
business following the appointment of Vivian Judith Fatupaito
and Richard Dale Agnew as liquidators on June 22, 2006.

In this regard, the Company's creditors are required to file
their proofs of claim by September 22, 2006, for them to share
in any distribution the Company will make.

The Joint Liquidators can be reached at:

         Vivian Fatupaito
         PricewaterhouseCoopers, Level 8
         PricewaterhouseCoopers Tower
         188 Quay Street, (Private Bag 92-162)
         Auckland, New Zealand
         Telephone: (09) 355 8000
         Facsimile: (09) 355 8013


E&J PACKAGING: Enters Liquidation Proceedings
---------------------------------------------
The liquidation of E&J Packaging Limited commenced on June 22,
2006, following the appointment of Vivian Judith Fatupaito and
Richard Dale Agnew as joint liquidators.

In this regard, the Company's creditors required to file their
proofs of claim by September 22, 2006, for them to share in any
distribution the Company will make.

The Joint Liquidators can be reached at:

         Vivian Fatupaito
         PricewaterhouseCoopers, Level 8
         PricewaterhouseCoopers Tower
         188 Quay Street, (Private Bag 92-162)
         Auckland, New Zealand
         Telephone: (09) 355 8000
         Facsimile: (09) 355 8013


FORTESCUE METALS: Proposed Woodstock-Abydos Rail Line Approved
--------------------------------------------------------------
The state government has given Fortescue Metals Group Ltd. the
green light for the construction of a rail line through the
Woodstock-Abydos protected area in the Pilbara region of West
Australia, WA Business News relates.

According to WA Business News, Indigenous Affairs Minister
Sheila McHale said that the decision supporting the development
of a proposed rail line to Port Hedland from the Chichester
Ranges has a certain economic advantage.

Ms. McHale said that the construction of the rail line would
deliver jobs and economic benefits for the indigenous and non-
indigenous Western Australians.

Furthermore, Ms. McHale pointed out that the rock art in the
area would remain totally protected through the proposed
corridor, approximately 200 meters wide and 56 kilometers long.  
She clarified that lifting the protected area status did not
mean that the Aboriginal Heritage Act no longer applied to sites
in the corridor.  She explained that, "[b]efore approval is
granted for the railway, the developer would need to comply with
strict conditions which protect rock art and minimize any other
impact on Aboriginal heritage in the area."

WA Business says that, according to Ms. McHale, the proposed FMG
project has not been opposed by the local Palyku and Kariyarra
Aboriginal groups, with both signing agreements promising
economic benefits if the project went ahead.

"FMG has also been proactive with respect to Aboriginal heritage
management," the Minister said.

WA Business recounts that the rail line is part of a 2004 State
Agreement covering an FMG proposal to mine in the Chichester
ranges, build port facilities in Port Hedland, and construct a
railway linking the two locations.

The final decision over the path of the rail line rests with the
Planning and Infrastructure Minister, WA Business relates.  It
also notes that there is already a BHP Billiton-owned railway
line operating within the protected area.

                      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.


H.R. COOK: Placed Under Voluntary Liquidation
---------------------------------------------
At an extraordinary general meeting on June 9, 2006, the members
of H.R. Cook Investments Pty Limited resolved to close the
Company's business operations and distribute the proceeds of its
assets disposal.

Subsequently, Stuart Ariff was appointed as liquidator.

As reported by Troubled Company Reporter - Asia Pacific, the
Company had declared its first and interim dividend on
July 5, 2006.

The Liquidator can be reached at:

         Stuart Ariff
         Stuart Ariff Insolvency Administrators
         Australia
         Telephone:(02) 4929 7880
         Facsimile:(02) 4929 7882
         e-mail: office@sariff.com.au
         Web site: http://www.sariff.com.au/


HUNTER SUPPORT: Members Opt to Shut Down Firm
---------------------------------------------
At an extraordinary general meeting on June 13, 2006, members of
Hunter Support Services Pty Limited agreed that the Company must
voluntarily commence a wind-up of its operations.

Creditors consequently appointed Raymond George Tolcher as
liquidator.

The Liquidator can be reached at:

         Raymond George Tolcher
         Lawler Partners, Chartered Accountants
         763 Hunter Street
         Newcastle West
         New South Wales 2302
         Australia


JOE THE TAXI: Inability to Pay the Debt Prompts Wind-Up
-------------------------------------------------------
The members and creditors of Joe The Taxi Driver Pty Limited
convened on June 9, 2006, and decided to wind up the Company's
operations due to its inability to pay debts when they fall due.

Geoffrey McDonald was consequently appointed as liquidator.

The Liquidator can be reached at:

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


KENDOW CONSULTING: Appoints Joint Liquidators
---------------------------------------------
Iain Bruce Shephard and Christine Margaret Dunphy were appointed
as joint and several liquidators of Kendow Consulting Ltd on
June 28, 2006.

The Joint Liquidators can be reached at:

         Iain Shephard
         c/o Jessica Redican
         Shephard Dunphy Limited
         Level Two, Zephyr House
         82 Willis Street, Wellington
         New Zealand
         Telephone: (04) 473 6747
         Facsimile: (04) 473 6748


MAYLYN PTY: Liquidator to Present Wind-Up Report on July 18
-----------------------------------------------------------
The members of Maylyn Pty Limited will convene on July 18, 2006,
at 10:00 a.m., to get an account of the manner of the Company's
wind-up and property disposal from Liquidator M. G. Mccann.

The Liquidator can be reached at:

         M. G. Mccann
         Grant Thornton
         Chartered Accountants
         Level 4, 102 Adelaide Street
         Brisbane Qld 4000
         Australia


MAYSTRAL PTY: Names James Alexander Shaw as Liquidator
------------------------------------------------------
At an extraordinary general meeting of the members of Maystral
Pty Limited on June 14, 2006, members agreed to voluntarily wind
up the Company's business operations.

James Alexander Shaw was subsequently named liquidator.

The Liquidator can be reached at:

         James Alexander Shaw
         Ferrier Hodgson, Chartered Accountants
         Level 3, 2 Market Street
         Newcastle, New South Wales 2300
         Australia


METAL STORM: Receives U.S. Marine Corps US$331,426 Contract
-----------------------------------------------------------
The United States Marine Corps Warfighting Lab, Ground Combat
Element Branch, awarded Metal Storm Limited a US$331,426
contract for the design, fabrication, and test of 18mm stacked
round firing systems.

Under the terms of the contract, Metal Storm will explore the
feasibility of employing 18mm fin stabilized high explosive
projectiles from an accessory under-barrel weapon for the M-16A4
service rifle.

The signing of the contract follows previous advice to the
market, on May 10, 2006, that the U.S. Marine Corps Systems
Command had placed a notice on the U.S. Federal Business
Opportunities Web site that it intends to award a Sole Source
Research and Development Contract to Metal Storm.

                          *     *     *

Metal Storm Limited -- http://www.metalstorm.com/-- is  
headquartered in Brisbane, Australia, and incorporated in
Australia, with an office in Arlington, Virginia.  Metal Storm
works with government agencies and departments, as well as
industries, to develop a variety of systems utilizing the Metal
Storm non-mechanical, electronically fired stacked ammunition
system.

Metal Storm reflected a loss of AU$10,914,600 in its Annual
Financial Report for the year ended December 31, 2005, which was
attributable to members of its parent company.  The Directors
noted that they are actively seeking funding to continue the
Company's operations.

After auditing the Company's 2005 Annual Report, Winna Irschitz,
a partner at Ernst & Young, raised significant uncertainty
regarding the Company's and its consolidated entity's ability to
continue as going concerns.

As stated in the 2005 Annual Report, Metal Storm's continuing
viability, and ability to continue as a going concern and to
meet debts and commitments as and when they fall due is
dependent on its ability to secure additional equity funding in
the near future and to continue the development and progress the
commercialization of its electronically initiated "stacked
projectile" weapons systems.


MOTIVATION (2001) LIMITED: Faces Liquidation Proceedings
--------------------------------------------------------
An application to liquidate Motivation (2001) Ltd will be heard
by the High Court of Auckland on July 20, 2006, at 10:00 in the
morning.

The Commissioner of Inland Revenue filed the petition with the
Court on May 3, 2006.

The plaintiff's solicitor can be reached at:

         Geraldine Ann Ryan
         Auckland Service Centre
         17 Putney Way (P.O. Box 76-198)
         Manukau City, New Zealand
         Telephone: (09) 984 2002


MUSIC SYSTEMS: Court to Hear Liquidation Petition on July 31
------------------------------------------------------------
A petition to put Music Systems (Music) Ltd into liquidation
will be heard before the High Court of Wellington on July 31,
2006, at 10:00 p.m.

Phonographic Performances (N.Z.) Ltd filed the petition with the
Court on June 9, 2006.

The solicitor for the plaintiff can be reached at:

         D. J. G. Cox
         Offices of Rennie Cox
         Level Fifteen
         126 Vincent Street, Auckland
         New Zealand


PAREMATA HARBOUR: Creditors' Proofs of Claim Due on July 14
-----------------------------------------------------------
Creditors of Paremata Harbour Centre Ltd are required to submit
their proofs of claim by July 14, 2006.

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

The liquidator can be reached at:

         T.C.W. Bastion
         KBC House, 272 Karori Road
         Karori, Wellington
         New Zealand
         Telephone: (04) 476 5775
         Facsimile: (04) 476 5778


PASDONNAY PTY: To Declare Final Preferential Dividend on July 18
----------------------------------------------------------------
Pasdonnay Pty Ltd will declare a final preferential dividend on
July 18, 2006, to the exclusion of creditors who were not able
to prove their debts by July 4, 2006.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company declared its first preferential dividend on
October 14, 2005.

The Company commenced a wind-up of its operations on August 5,
2006, TCR-AP said.

The Liquidator can be reached at:

         K. A. Strickland
         SimsPartners
         Chartered Accountants and Business Advisors
         Level 12, 40 St George's Terrace
         Perth, Western Australia 6000
         Australia


PETJEM INVESTMENTS: Liquidator to Give Final Report on July 18
--------------------------------------------------------------
Members and creditors of Petjem Investments Pty Ltd will hold a
final meeting on July 18, 2006, at 10:00 a.m.

At the meeting, members will be asked:

   -- to receive the Liquidator Kim David Holbrook 's final
      wind-up report; and

   -- to approve the Liquidator's remuneration.

Mr. Holbrook can be reached at:

         Kim David Holbrook
         Holbrook & Associates Chartered Accountants
         Level 2, 19 Pier Street
         (GPO Box M925)
         Perth, Western Australia 6001
         Australia


PROTECTION FACTOR: Intends to Declare Dividend on July 17
---------------------------------------------------------
Protection Factor Pty Limited will declare a first and final
dividend on July 17, 2006.

Creditors who were not able to file their claims by June 20,
2006, will be excluded from sharing in the dividend
distribution.

The liquidator can be reached at:

         G. T. Hancock
         Horwath Sydney Partnership
         Level 10, 1 Market Street
         Sydney, New South Wales 2000
         Australia


QANTAS AIRWAYS: ACCC Accepts Orangestar Coordination Agreement
--------------------------------------------------------------
A draft determination by the Australian Competition and Consumer
Commission proposes to give Qantas Airways Ltd. the go-ahead to
coordinate flying and other activities with Singapore-based
Orangestar, the holding company of Jetstar Asia and Valuair, The
Australian reports.

As reported in the Troubled Company Reporter - Asia Pacific on
June 1, 2006, Qantas acquired the ACCC's "interim authorization"
to enter a cooperation agreement with Jetstar and Jetstar Asia,
which would result in the airlines being allowed to collaborate
on airfares, schedules, and network routing.

The Australian notes that Qantas owns 44.5% of Orangestar and
wants to link the low-cost Asian carrier with its mainline
operations as well as Jetstar International services as they
come on line from later this year.

According to AFX News Limited, Singapore Airlines-backed Tiger
Airways opposes the agreement, arguing that it is anti-
competitive, and asks the ACCC to either reject it or impose a
number of conditions.

However, the ACCC says that the tie-up would result in a net
benefit to the public, noting that there was limited overlap on
routes operated by Qantas and Orangestar and it did not expect
extensive future competition between the two, The Australian
relates.

AFX News Limited relates that the ACCC is proposing to grant
final authorization of the Orangestar Deal for a five-year term,
on condition that the airlines do not withdraw from overlapping
routes or allocate existing capacity to those routes.  They are
also not allowed to enter into any agreement that prevents
either airline from entering routes to or from Australia, The
Australian adds.

The TCR-AP reported on April 6, 2006, that Jetstar Asia was
seeking a fresh AU$31.2 million capital injection.  The
Australian says that a rocky start for Jetstar Asia saw the low-
cost carrier reduce its fleet of A320s and Orangestar rack up
losses of AU$27.4 million in the six months to December 31,
2005, The Australian relates.

The Singapore investment was improving under new chief executive
Chong Phit Lian, The Australian cites Qantas Chief Financial
Officer Peter Gregg as saying.  "It's going to take a bit of
time but that's what we expected," Mr. Gregg says.

The Australian relates that Qantas has also looked at similar
ventures in Indonesia, the Philippines, and Thailand to build an
Asian network and offset the advantages of mid-point carriers
operating out of Asian hubs.

                      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.


RMW HOLDINGS: Members to Receive Wind-Up Report
-----------------------------------------------
A final meeting of the members of RMW Holdings Pty Limited will
be conducted on July 17, 2006, at 10:00 a.m.

During the meeting, Liquidator S. H. K. Shun will present final
accounts of the Company's wind-up operations.

The Liquidator can be reached at:

         S. H. K. Shun
         c/o Stanley & Williamson
         1st Floor, 34 Burton Street
         Kirribilli, New South Wales 2061
         Australia
         Telephone:(02) 9923 2666


SHELLWAY PTY: Members' Final Meeting Fixed for July 17
------------------------------------------------------
The members of Shellway Pty Limited will hold a final meeting on
July 17, 2006, at 10:00 a.m., to get an account of the manner of
the Company's wind-up and property disposal from Liquidator John
Raymond Gibbons.

The Liquidator can be reached at:

         John Raymond Gibbons
         Ernst & Young
         Level 37, 680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9248 4124


SOAP DESIGN: Members and Creditors to Convene on July 17
--------------------------------------------------------
A joint meeting of the members and creditors of Soap Design Pty.
Limited will be held on July 17, 2006, at 10:30 a.m.

During the meeting, Liquidator J. R. Lindholm will give a final
report of the Company's wind-up and property disposal exercises.

The Liquidator can be reached at:

         J. R. Lindholm
         Ferrier Hodgson
         Level 29, 600 Bourke Street
         Melbourne, Victoria 3000
         Australia


TELSTRA CORPORATION: Sacks Technicians & Workers at Centers
-----------------------------------------------------------
The Communications Electrical Plumbing Union says that Telstra
Corporation has axed 207 regional field technicians across New
South Wales, including the Riverina, Central Coast and
Newcastle, Illawarra and the north coast, the Trading Room
Investor reports.

CEPU postal and telecommunications secretary, Jim Metcher,
criticized Telstra over the job cuts, the report says.

"The loss of these valuable workers with their local knowledge
of phone cable runs and locations of Telstra's infrastructure is
something that cannot be replaced over a short period of time,"
Mr. Metcher contends.

According to CEPU's branch organizer, Steve Dodd, the sackings
are the result of a downgrading in maintenance and repairs to
the network, ABC News Online relates.

Pat Knowlan, the area general manager with Telstra Countrywide,
explains that the redundancies are necessary for the company to
remain competitive, ABC News says.

Mr. Knowlan states that all workers will be offered generous
redundancy packages.

According to the Australian IT, Telstra spokeswoman Sarah
McKinnon said that 97 of the redundancies have been previously
announced and all were part of Telstra's plan to cut up to
12,000 jobs over the next five years, which was announced in
November 2005.

Telstra has been successful in improving its performance and
service levels to country NSW over the past 10 years and would
work to maintain those high levels in the future, Ms. McKinnon
says.

ABC Newcastle relates that, according to CEPU, the Hunter and
central coast regions will be the hardest hit by the
redundancies.  

The job cuts are necessary, ABC Newcastle cites Telstra's
Country Wide general manager for Newcastle and Lake Macquarie,
Chris Cusack, as saying.  Mr. Cusack explains that the
telecommunications environment is very competitive and the
Novacoast region is one of the cost-competitive markets that the
telco operates in, and unfortunately it has to make tough
decisions to remain competitive.

Mr. Cusack says they will be seeking applications for voluntary
redundancies from the employees involved as part of the
selection process.

Telstra also plans to axe more than 200 jobs when it closes four
telephone and broadband dispatch centers in Bendigo, Perth,
Adelaide and Parramatta, the Australian Associated Pres reports.

The Australian notes that hundreds of jobs at the remaining
dispatch centers will be downgraded with staff facing pay cuts
of up to AU$200 a week.

                        Workers Protest

About 100 workers from Telstra and its IT and financial services
arm, KAZ Group, rallied outside the telco's Melbourne head
office protesting against job cuts and owed entitlements, the
AAP relates.

According to the Herald Sun, Mr. Cooper says that the workers
are also considering a strike against KAZ, which Telstra bought
in 2004.

The Australian relates that staff members at KAZ are taking the
telco to court over lost entitlements.

The Herald Sun reports that 60 workers at KAZ's Glen Iris data
processing center claim they are owed AU$220,000 in unpaid
entitlements by the firm.  Subsequently, the center will be
closed next month.

Australian Council of Trade Unions president, Sharan Burrow,
says that Telstra's reputation had diminished from being "one of
the best employers in the country" to a corporate thief.

                        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.


TREEALLA PTY: Shuts Down Business Operations
--------------------------------------------
The members and creditors of Treealla Pty Limited held a meeting
on June 14, 2006.

At the meeting, they agreed to shut down the Company's business
operations and appoint Alfred Mccarthy as liquidator.

The Liquidator can be reached at:

         Alfred McCarthy
         Gregory & McCarthy
         75 Lead Street
         Yass, New South Wales 2582
         Australia


WELLINGTON COLLEGE: Appoints Official Liquidators
-------------------------------------------------
Iain Bruce Shephard and Christine Margaret Dunphy were appointed
joint and several liquidators to oversee the liquidation of
Wellington College of Languages on June 26, 2006.

The Joint Liquidators can be reached at:

         Iain Shephard
         c/o Andrew Croad
         Shephard Dunphy Limited
         Level Two, Zephyr House
         82 Willis Street
         Wellington, New Zealand
         Telephone: (04) 473 6747
         Facsimile: (04) 473 6748.


WERLEMAN BROS.: Members and Creditors to Receive Wind-Up Report
---------------------------------------------------------------
A joint meeting of the members and creditors of Werleman Bros.
Pty Limited will be held on July 18, 2006, at 12:30 p.m.

During the meeting, Liquidator P. W. Gidley will present
accounts of the Company's wind-up operations and property
disposal exercises.

The Liquidator can be reached at:

         P. W. Gidley
         Lawler Partners
         Chartered Accountants
         763 Hunter Street
         Newcastle West, New South Wales 2302
         Australia


WESTPOINT GROUP: Saville Buys Emu Brewery Site for AU$48.8 Mln
--------------------------------------------------------------
Western Australian property developer Saville Australia, in
conjunction with Babcock & Brown, has bought Westpoint Group's
Emu Brewery development site in Perth for AU$48.8 million,
Property Review says.

As reported in the Troubled Company Reporter - Asia Pacific on
March 17, 2006, Westpoint's receiver and manager, KordaMentha,
took steps to sell the Emu development site.

The Emu Brewery site covers about 1.8 hectares on the corner of
Mounts Bay Road and Spring Street at the western end of the
Perth Central Business District.  The TCR-AP report noted that
the property was expected to fetch as much as AU$70 million.  It
was the first of several Westpoint assets to be offered for sale
after the Group's collapse.

Property Review cites KordaMentha's head of real estate, Berrick
Wilson, as saying that the sale is an exceptional outcome.

According to WA Business News, Saville Australia's managing
director, Sam Cheir, said that the site is already approved for
multiple development options, including 1,037 apartments,
commercial and retail development and a six-level car park with
1,460 bays.

ABC Perth says that, according to receiver Mark Korda, the
capital gains made on the property are significant and investors
will see AU$25 million from the sale.  Mr. Korda states that
they will settle the property and then the liquidator of the
mezzanine company will sort out who is entitled to the money.

Meanwhile, KordaMentha has announced that expressions of
interest for Westpoint's Warnbro Fair Shopping Centre option are
welcome at the commencement of the public sale campaign on
July 18, 2006, Property Review notes.

                     About Westpoint Group

Headquartered in Perth, Western Australia, the Westpoint Group -
- http://westpoint.com.au/-- is engaged in property development  
and owns or manages retail and commercial properties
with a total value of over AU$300 million.  The Group's troubles
began in 2005 when the Australian Securities and Investments
Commission commenced investigations on 160 companies within the
Westpoint Group.  The ASIC's investigation led to ASIC
initiating action in late 2005 in the Federal Court of Australia
against a number of mezzanine companies in the Westpoint Group,
including winding up proceedings.  The ASIC contends that
Westpoint projects are suffering from significant shortfall of
assets over liabilities so that hundreds of investors are at
serious risk of not receiving repayment of their investments.  
The ASIC also sought wind-up orders after the Westpoint
companies failed to comply with its requirement to lodge
accounts for certain financial years.  These wind-up actions are
still continuing.

In February 2006, a wind-up order was issued by the Federal
Court in Perth against Westpoint Corporation Pty Ltd.  The ASIC
had applied to wind up the company on grounds of insolvency.  
The ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.  
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.  The
Westpoint Group's collapse is considered by many as the largest
of its type in recent years, with small investors being the
biggest group affected.  Investors are currently joining forces
to commence a class action against Westpoint and its advisors.


WORLD MANAGEMENT: Appoints Peter Ngan as Liquidator
---------------------------------------------------
Members of World Management Consulting Pty Limited convened on
June 13, 2006, and decided to wind up the Company's business
operations.

Peter Ngan was subsequently appointed as liquidator.

The Liquidator can be reached at:

         Peter Ngan
         Ngan & Co. Chartered Accountants
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia


YOUTH DIRECTIONS: Members Decide to Liquidate Business
------------------------------------------------------
On June 13, 2006, members of Youth Directions New South Wales
Pty Limited held a meeting and agreed to liquidate the Company's
business operations.

Subsequently, Raymond George Tolcher was appointed as
liquidator.

The Liquidator can be reached at:

         Raymond George Tolcher
         Lawler Partners, Chartered Accountants
         763 Hunter Street
         Newcastle West, New South Wales 2302
         Australia


ZANWAVE QLD: Final General Meeting Fixed for July 17
----------------------------------------------------
Members and creditors of Zanwave Qld Pty Ltd will hold their
final general meeting on July 17, 2006, at 10:00 a.m., to
receive Liquidator Ray Richards' wind-up report.

The Liquidator can be reached at:

         Ray Richards
         SimsPartners
         Level 11, 145 Eagle Street
         Brisbane, Queensland 4000
         Australia
         Telephone:(07) 3831 2700


* Australian Inflation Expectations High in July, Survey Says
-------------------------------------------------------------
Australian consumer inflation expectations edged up in July,
perhaps reflecting a renewed surge in petrol prices, Reuters
reports, citing a survey from the Melbourne Institute Consumer
Inflationary Expectations.

The Institute noted that the survey was conducted in the week
after news of escalating petrol prices due to rising political
uncertainties in the Middle East and North Korea.

Reuter relates that the Reserve Bank of Australia increased
interest rates to 5.75% in May as a pre-emptive move against
inflation, and financial markets are pricing in a real risk of
another rise before 2006 ends.

Inflationary expectations can themselves lead to higher
inflation as workers demand higher wages in expectation of
rising prices, Reuters says.


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

AGAPE UNITED: Court Orders Wind-Up
----------------------------------
The High Court of Hong Kong ordered the wind-up of Agape United
International on June 28, 2006.

The wind-up petition was filed before the Court on April 8,
2006.


CHUEN KEE MOTOR: Faces Wind-Up Proceedings
------------------------------------------
A petition to wind up the operations of Chuen Kee Motor Co Ltd
will be heard before the High Court of Hong Kong on August 16,
2006, at 9:30 a.m.

The Bank of China (Hong Kong) Ltd filed the petition with the
Court on June 15, 2006.  

The solicitors for the petitioner can be reached at:

         Robertsons
         57th Floor, The Centre
         99 Queen's Road Central
         Hong Kong
         Telephone: 2521 7341
         Facsimile: 2868 5820


EFFECT LEATHER: Court to Hear Wind-Up Bid on August 2
-----------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Effect Leather Shoes Factory Ltd on August 2, 2006, at 9:30 a.m.

Chan Kam Fung filed the petition before the Court on June 7,
2006.

The solicitor for the petitioner can be reached at:
  
         Betty Chan
         For Director of Legal Aid
         34/F., Hopewell Centre
         183 Queen's Road East
         Wanchai, Hong Kong


ETECH CONTROL: Creditors' & Contributories' Meetings Set July 19
----------------------------------------------------------------
The first meetings of creditors and contributories of Etech
Control Co Ltd will be held at Rooms 3-4, 4/F., YMCA of Hong
Kong, Salisbury Road, Tsimshatsui, Hong Kong on July 19, 2006,
at 10:00 a.m. and 11:00 a.m. respectively.

At the meetings, creditors and contributories will be asked to
nominate liquidators and members of the Committee of Inspection
in respect of the Company's wind-up exercise.


H.K. TEAKWOOD: Prepares to Pay Final Dividend to Creditors
----------------------------------------------------------
Hong Kong Teakwood Works Ltd intends to pay its final dividend
to the Company's ordinary unsecured creditors on July 17, 2006.

The payment will be made by Liquidators Baker Tilly Hong Kong
at:

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


H.K. TEMPO: Wind-Up Bid Hearing Slated for August 9
---------------------------------------------------
A wind-up petition against H.K. Tempo Recycling Co Ltd will be
heard before the High Court of Hong Kong on August 9, 2006, at
9:30 a.m.

Woo Sai Lung filed the petition with the Court on June 10, 2006.  

The solicitor for the petitioner can be reached at:
      
         Joseph Lo
         For Director of Legal Aid
         34/F., Hopewell Centre
         183 Queen's Road East
         Wanchai, Hong Kong


HI-SPEED TRANSPORTATION: Court to Hear Wind-Up Petition August 2
----------------------------------------------------------------
A wind-up petition filed against Hi-Speed Transportation Co Ltd
will be heard before the High Court of Hong Kong on August 2,
2006, at 9:30 in the morning.

Lok Yiu Fu filed the petition with the Court on June 7, 2006.

The solicitor for the petitioner can be reached at:
  
         Betty Chan
         For Director of Legal Aid
         34/F., Hopewell Centre
         183 Queen's Road East
         Wanchai, Hong Kong


LOLLY QUEEN: Wind-Up Petition Hearing Fixed on August 9
-------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Lolly Queen Co Ltd on August 9, 2006, at 9:30 in the morning.

Yuen Pui Chung filed the petition with the Court on June 12,
2006.

The solicitor for the petitioner can be reached at:

         Joseph Lo
         For Director of Legal Aid
         34/F., Hopewell Centre
         183 Queen's Road East
         Wanchai, Hong Kong


OCEAN GRAND: Alleged Accounting Mishap, Rating on CreditWatch
-------------------------------------------------------------
Standard & Poor's Ratings Services on July 12, 2006, placed its
BB- long-term corporate credit rating on Ocean Grand Holdings
Ltd on CreditWatch with negative implications.  At the same
time, it also placed US$160 million in senior unsecured notes
due 2010 on CreditWatch with negative implications.  

The rating actions follow an announcement that Ocean Grand has
discovered potential accounting irregularities at its main
aluminum extrusion subsidiary, OG Aluminium Co Ltd.  Ocean Grand
says it has lost contact with the subsidiary's financial
controller.  Ocean Grand has engaged Deloitte Touche Forensic
Services to investigate.  As a result, the company expects its
2005 annual results will not be released at the end of July, as
scheduled.

"To resolve the CreditWatch, we will need to verify the size and
nature of the accounting irregularity and assess the company's
internal control systems," said Standard & Poor's credit analyst
Bei Fu.

OG Foshan contributed about 38% of Ocean Grand's profit from
operations in 2004.  

Ocean Grand's operations are progressing as planned, with new
capacity at its site at Sanshui gradually coming on stream. The
company is considering a potential acquisition, as expected, but
has made no commitment.


OCEAN GRAND: Bares Potential Accounting Mishap with Subsidiary
--------------------------------------------------------------
Hong Kong-based aluminum products maker Ocean Grand Holdings
advised the Hong Kong Stock Exchange of a potential accounting
irregularity involving the group's wholly owned subsidiary, OG
Foshan, and its financial controller, The Standard reports.

The irregularity, which is expected to result to a CNY6-million
loss, was discovered in the course of an audit related to a
supplier that had transacted business with the Company's
subsidiary during the 15 months to March this year.  

The Standard relates that Ocean Grand was unable to contact the
subsidiary's financial controller, thus prompting the Company to
report the matter to the mainland police, who are now looking
into the Company's books and records.

Moreover, Ocean Grand also engaged Deloitte Touche Forensic
Services to investigate business dealings involving OG Foshan,
other subsidiaries, customers, and suppliers as part of its
internal investigation.

OG Foshan -- a wholly owned subsidiary of Ocean Grand --
contributed 38% of the Group's operating profit in the year
ended December 2004, The Standard adds.

                          *     *     *
Ocean Grand Holding's -- http://www.ogholdings.com/-- principal  
activities are the manufacture and sale of aluminum extrusion
products and chemicals for use in electroplating and refining of
gold material produced at facilities located in Nanhai of
Guangdong Province and the Hong Kong Special Administrative
Region of The People's Republic of China.

On July 12, 2006, Standard & Poor's Credit Rating Services
placed Ocean Grand's BB- long-term corporate credit rating and
US$160 million in senior unsecured notes due 2010 on CreditWatch
with negative implications due to the alleged accounting
irregularities the Group recently discovered.


PACPO INVESTMENT: Wind-Up Hearing Scheduled for August 2
--------------------------------------------------------
The hearing of a wind-up petition filed against Pacpo Investment
Ltd is set on August 2, 2006, at 9:30 in the morning.

Cheung Yam Loi filed the petition with the Court on June 2,
2006.

The solicitor for the petitioner can be reached at:
  
         Betty Chan
         For Director of Legal Aid
         34/F., Hopewell Centre
         183 Queen's Road East
         Wanchai, Hong Kong


POWTEK ELECTRONICS: Court Issues Wind-Up Order
----------------------------------------------
A wind-up order was issued by the High Court against Powtek
Electronics Co Ltd on June 28, 2006.

The Troubled Company Reporter - Asia Pacific recounts that
Teamedics Manufacturing Co Ltd filed the wind-up petition on
April 19, 2006.


TAI ON ELECTRIC: Court to Hear Wind-Up Application on August 9
--------------------------------------------------------------
The High Court of Hong Kong will hear a petition to wind up Tai
On Electric Company Limited on August 9, 2006, at 9:30 a.m.

Chow Wai Kit filed the petition with the Court on June 12, 2006.

The solicitor for the plaintiff can be reached at:

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


TEEMVICTORY LIMITED: Court Issues Wind-Up Order
-----------------------------------------------
Teemvictory Limited received a wind-up order from the High court
of Hong Kong on June 28, 2006.

According to the Troubled Company Reporter - Asia Pacific, the
Bank of China (H.K.) Ltd filed the petition with the Court on
April 27, 2006.


* Government's Action to Cool Down Economy Shows Result
-------------------------------------------------------
First seen in recent years, China showed a year-on-year decline
in its excessive lending as reflected on the mainland's new
local currency loan amounting CNY360 billion as of June 2006,
CNY102.7 billion less than in the same 2005 period, a central
bank source told Xinhuanet News.  

Xinhuanet recounts that some economists and officials have
expressed alarm at the country's excessive lending, saying it
could lead to financial problems if investments end up being
unprofitable.  

Heeding the call to discourage excessive lending, The People's
Bank of China, on April 28, 2006, raised the minimum rate
commercial banks charge on one-year loans in local currency, 27
basis points to 5.85%.  

It was the first increase since October 2004, Xinhuanet notes.

Further, nine ministries under the State Council moved to cool
down the heated real estate market by lifting the down payment
requirement for housing purchases, China's latest round of the
macro-control, Xinhuanet relates.  

According to Zhang Liqun, a macro-economics research fellow at
the Development and Research Center of the State Council, the
fast increase of China's money supply was a result of big trade
surpluses and skyrocketing foreign exchange reserves brought by
currency controls.


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

LML LIMITED: Allots Equity Shares to Merrill Lynch
--------------------------------------------------
On July 13, 2006, LML Limited allotted 27,97,427 equity shares
of INR10 each to Merrill Lynch Capital Markets Espana S.A.SV. at
a premium of INR21.10 per share.

The allotment is pursuant to the conversion of 2,000 Foreign
Currency Convertible Bonds-Series B due 2010 of US$1,000 each.

The Troubled Company Reporter - Asia Pacific reported that on
June 14, 2006, LML allotted 67,15,769 equity shares of INR10
each at a premium of INR28.08 per share to Merrill Lynch
Capital.  The allotment was made pursuant to the conversion of
5,879 foreign currency convertible bonds of US$1,000 each for a
total of US$5,879,000 into equity shares.

                       About LML Limited

Headquartered in Uttar Pradesh, India, LML Limited manufactures
two wheeler vehicles particularly scooters and spares and
accessories.  The Group's products include geared scooters,
gearless scooters, motorcycles and mopeds.  The Company has been
incurring consecutive losses since 2004.  As on March 31, 2005,
LML had capacity to manufacture 0.45 million scooters and 0.18
million motorcycles per annum.  During the 18 month period ended
March 2005, LML reported turnover of INR5.97 billion and a net
loss of INR956.06 million.  The Company is currently in a
restructuring mode -- for the second time in less than a year --
and is struggling to overcome working capital problems.  Labor
unrest and a lack of working capital have practically stopped
production and dispatches at its sole Kanpur plant in the past
months.

As reported by the Troubled Company Reporter - Asia Pacific on
June 28, 2006, ICRA has downgraded the rating assigned to the
INR1,250-million preference share capital program of LML Limited
to "LC" from "LBB" following prolonged disruption of
manufacturing operations subsequent to lockout at its Kanpur
factory.


* Government Likely to Release Oil Bonds for Oil Retailers
----------------------------------------------------------
The Government is likely to issue INR28,000 worth of oil bonds
for oil retailers by the end of July, The Financial Express
says, citing Petroleum Secretary MS Srinivasan.

The bonds will be issued to compensate oil firms such Indian Oil
Corporation, Bharat Petroleum Corporation, Hindustan Petroleum
Corporation and IBP Company Limited for selling duel below
costs, The Express relates.

Mr. Srinivasan explained the oil bonds will help oil firms
bridge the gap in retail prices of petrol, diesel, liquefied
petroleum gas and kerosene and cost of production this fiscal.
The bonds are to be released every quarter based on the under-
recovery in revenue in the quarter.

The Government expects to issue INR6,500 to INR7,000 crore worth
of interest-bearing bonds with five to seven-year tenure this
quarter, The Express reveals.

As reported by the Troubled Company Reporter - Asia Pacific on
April 20, 2006, the Government has not raised prices of petrol
and diesel since September last year.  This has negatively
impacted the three state oil marketing companies, which sell
fuel products at subsidized prices as ordered by the Government.

The TCR-AP also reported on that the Government had issued bonds
to oil firms to partly compensate them for their losses, while
consumers saw a fuel price hike of 7% in June 2005, followed by
a similar rise in September.


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

PERUSAHAAN LISTRIK: Plans to Sue Consumers on Power Theft
---------------------------------------------------------
State power firm PT Perusahaan Listrik Negara intends to sue
consumers who are illegally taking supply by tampering with
their supply line or meter using a "power-saving" equipment, The
Jakarta Post reports, citing a PLN official.

According to the report, Murtaqi Syamsuddin, Perusahaan
Listrik's distribution manager for West Java and Banten, relates
that an unidentified company is selling the equipment, which
disrupts the flow of energy to consumers or reduces the speed of
their meters.  This equipment also damages household power
installations, Mr. Murtaqi notes.

Mr. Murtaqi tells The Jakarta Post that the equipment has been
on the market for the past two months, but the name and address
of the distributor is never provided.

PLN's primary concern is power theft by the management of
industrial estates, hotels, and office buildings, Mr. Murtaqi
says, adding that electricity theft is a criminal offense.
  
According to Mr. Murtaqi, about IDR180 billion worth of
electricity is being stolen each month.  He notes that monthly
revenue from the 2,700 major electricity consumers in West Java
and Banten has dropped 20% from the prior months'
IDR900 billion.

Mr. Murtaqi relates that those consumers they have caught
tampering with their home meters have been told to restore them
to their previous condition.

To keep a check on the problem, PLN plans to conduct surprise
checks of homes and businesses for meters and supply lines that
have been tampered with, The Jakarta Post relates.

                          *     *     *

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

As reported in the Troubled Company Reporter - Asia Pacific on
June 30, 2006, the Indonesian Government had offered to settle
PLN's debt to state oil and gas firm PT Pertamina, which
Pertamina claimed has totaled IDR23.9 trillion.  However, PLN
acting president Djuanda Nugraha Ibrahim said that the Company
owes PHP17 trillion to Pertamina.


PERUSAHAAN LISTRIK: To Sell Shares in Three Units in 2007
---------------------------------------------------------
The Indonesian Government hopes to raise IDR5 trillion in
proceeds from the divestment of shares in three PT Perusahaan
Listrik Negara subsidiaries next year, The Jakarta Post says.

Roes Aryawijaya, deputy for the energy sector at the Office of
the State Minister for State Enterprises, said that part of the
proceeds would be used to help finance PLN's coal-fired power
plant projects.

The Post notes that Mr. Aryawijaya did not name which units
would be sold to investors.  However, he said that the targeted
companies would be those which turned a profit in the last three
years.

According to The Post, five of PLN's subsidiaries fit the
requirement:

   1) PT Indonesia Power,
   2) PT PJB,
   3) PT PLN Batam,
   4) PT PLN E, and
   5) PT Indonesia Comnet Plus, which provides    
      telecommunications services.

The Post says that the sixth PLN subsidiary, PT PLN Tarakan, has
only made a profit during the past two years.

Mr. Aryawijaya stated that despite the divestment program, the
Government would still maintain more than a 51% stake in the
companies.  He said that the divestment plan has been agreed
upon during the last PLN shareholders meeting, and he is
confident that the company's management would pursue the plan.

The Post cites the company's acting president director, Djuanda
Ibrahim, as saying that PLN will launch an initial public
offering for Indonesia Power next year to help turn the unit
into a transparently run and major player in the Southeast Asian
region.  He adds that other divestment programs are still being
discussed.

                Coal-fired Power Plant Projects

The Government has asked PLN to develop up to 10,000 MW coal-
fired power plants within the next three years to help avoid a
power crisis in the country and reduce costly fuel consumption
at homes, the Jakarta Post relates.  

The Post notes that the project would require a huge fund
outlay.

According to The Post, Energy and Mineral Resources Minister
Purnomo Yusgiantoro disclosed that PLN will hold an open bidding
to select contractors for the construction of 30 planned coal-
fired power plants with a total capacity of 2,522 MW located
outside Java.  PLN will build another 10 plants within Java.

After a meeting with PLN officials, Mr. Yusgiantoro reveals that
"[t]he 30 power plants outside Java will be put up for tender."

However, the firm may not conduct open bidding for the plants,
if the selected companies can provide some of the financing,
Bloomberg News relates.

The Post notes that a decree issued by President Susilo Bambang
Yudhoyono exempts PLN from a rule requiring open bidding for
state projects to accelerate the awarding of power contracts.

                          *     *     *

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

As reported in the Troubled Company Reporter - Asia Pacific on
June 30, 2006, the Indonesian Government had offered to settle
PLN's debt to state oil and gas firm PT Pertamina, which
Pertamina claimed has totaled IDR23.9 trillion.  However, PLN
acting president Djuanda Nugraha Ibrahim said that the Company
owes PHP17 trillion to Pertamina.


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

LIBERTY GLOBAL: Files Amended 2005 Annual Report with U.S. SEC
--------------------------------------------------------------
Liberty Global Inc. filed, on June 30, 2006, a Form 10-K/A to
amend its annual report for the year ended Dec. 31, 2005, with
the United States Securities and Exchange Commission.

Liberty Global filed this amendment to:

   (a) file under Item 8 -- Financial Statements and
       Supplementary Data -- and Item 15 -- Exhibits and
       Financial Statement Schedules -- the consolidated
       financial statements of its equity investees Telenet
       Group Holding NV and PrimaCom AG, each as required by
       Rule 3-09 of Regulation S-X;

   (b) correct certain historical operating data in the
       business discussion of its networks in France and
       Switzerland in Item I -- Business;

   (c) correct the projected cash interest payments on debt
       and capital lease obligations for fiscal 2006, 2007,
       2008, 2009 and after 2010 in the discussion of financial
       commitments and contingencies in Item 7 -- Management's
       Discussion and Analysis of Financial Condition and
       Results of Operations;

   (d) correct the aggregate fair value of the Registrant's
       equity method and available-for-sale investments that
       were subject to price risk at Dec. 31, 2005, in the
       discussion of market risks related to the Registrant's
       cash and investments in Item 7A -- Quantitative and
       Qualitative Disclosures About Market; and

   (e) correct typographical errors and to make certain
       tabular and clarifying changes in Items 1 -- Business --
       and Item 7 -- Management's Discussion and Analysis of
       Financial Condition and Results of Operations -- and in
       its consolidated financial statements and notes filed
       under Item 8 -- Financial Statements and Supplementary
       Data.

                            Financials

The Company reported an US$80 million net loss on US$5.2 billion
of revenues for the year ended Dec. 31, 2005, compared to a
US$21.4 million net loss on US$2.5 billion of revenues for the
same period in 2004.

At Dec. 31, 2005, Liberty Global's balance sheet showed
US$23.4 billion in total assets, US$13.8 billion in total
liabilities, and US$7.8 billion in stockholders' equity.

The Company's balance sheet showed strained liquidity with
US$2.2 billion in total current assets available to pay
US$2.4 billion in current liabilities due within the year.

A full-text copy of the Company's amended 2005 annual report is
available for free at http://ResearchArchives.com/t/s?d17    

             Going Concern Doubt for Two Subsidiaries

As reported in the Troubled Company Reporter on March 22, 2006,
two auditing firms expressed a going concern opinion on Liberty
Global's two subsidiaries, Torneos y Competencias S.A. and
UnitedGlobalCom, Inc.

Finsterbusch Pickenhayn Sibille, the Argentine member firm of
KPMG International, expressed substantial doubt about Torneos y
Competencias' ability to continue as a going concern after
auditing the Company's financial statements for the years ended
Dec. 31, 2004 and 2003.  The auditing firm pointed to the
Company's default with respect to two bank loans, past due
payments on certain loans and a net working capital deficiency
at Dec. 31, 2004.

Arthur Andersen LLP expressed substantial doubt about
UnitedGlobalCom's ability to continue as a going concern after
auditing the Company's financial statements for the year ended
Dec. 31, 2001.  The auditing firm pointed to the Company's
recurring losses from operations, its default under certain of
its significant bank credit facilities, senior notes and senior
discount note agreements, which resulted in a significant net
working capital deficiency.

                       About Liberty Global

Headquartered in Englewood, Colorado, Liberty Global Inc. --
http://www.www.lgi.com/-- is an international broadband   
communications provider of video, voice and Internet access
services, with consolidated broadband operations in 19
countries, primarily in Europe, Chile and Japan.  Through its
indirect wholly owned subsidiary UGC Europe, Inc., and its
wholly owned subsidiaries UPC Holding B.V. and Liberty Global
Switzerland, Inc., collectively Europe Broadband, Liberty Global
provides video, voice and Internet access services in 13
European countries.  Through Liberty Global's indirect
controlling ownership interest in Jupiter Telecommunications
Co., Ltd., the Company provides video, voice and Internet access
services in Japan.  Through the Company's indirect 80%-owned
subsidiary VTR GlobalCom, S.A., it provides video, voice and
Internet access services in Chile.

                           *     *     *

As reported in the Troubled Company Reporter on Feb 22, 2006,
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to U.S.-listed, international cable
operator Liberty Global Inc.  S&P said the outlook is stable.


LIVEDOOR CO: Ex-CEO Was Actively Involved in Firm Takeovers
-----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
May 30, 2006, Livedoor Co.'s four ex-directors, two external
accountants, and both the Company and its unit, Livedoor
Marketing Co., pled guilty to charges of accounting fraud and
violating the Securities Exchange Law at their trial's first
hearing on May 26, 2006.

In an update Crisscross News relates that, at a hearing in the
Tokyo District Court on July 11, 2006, former Livedoor Chief
Financial Officer Ryoji Miyauchi testified that the Company's
former president, Takafumi Horie, played key parts in the
Company's decision-making process when it decided to take over
other firms.

According to The Japan Times, Mr. Miyauchi told the Court that
Mr. Horie "had a strong desire to make his company No. 1 in
Japan and then in the world in a short span of time."  

"He frequently took advantage of corporate acquisition deals, as
it was hard to post earnings and profits while expanding the
corporate group," Mr. Miyauchi relates.

Mr. Miyauchi told the Court that he was involved in the fraud
but was not second in command, saying that he was in charge of
financial transaction matters and had jurisdiction over
corporate acquisitions and other affairs.

According to The Japan Times, Mr. Miyauchi's testimony could be
used to show that Mr. Horie might have instructed other
executives to engage in illegal activities.  

The Japan Times cites Mr. Miyauchi as telling the Court that
when Livedoor management said it wanted to book the sale of new
shares it was planning to float for the year to September 30,
2004, as genuine proceeds, "our accountants said booking it that
way would be wrong, leading me to begin to think it was a bad
thing to do."

However, he and the other Livedoor managers "could not give up"
following through with the falsification, Mr. Miyauchi told The
Japan Times.

When asked about booking bogus sales to companies Livedoor was
planning to take over as its sales, Mr. Miyauchi said, "We
deviated from the right path."

              Separate Case Against Y. Murakami

The Japan Times relates that Mr. Miyauchi has also reportedly
provided prosecutors with key information to help them build a
separate case against Yoshiaki Murakami, founder of the Murakami
fund.  Mr. Murakami was charged with insider trading in June.

Mr. Miyauchi has told prosecutors that Mr. Murakami encouraged
Livedoor in 2004 to buy up shares of Nippon Broadcasting System
Inc.  Livedoor did decide to acquire a large stake in the radio
broadcaster and told Mr. Murakami before the actual purchase,
The Japan Times relates.

                         *     *     *

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

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

Following the accounting scandal surrounding the Company in
January 2006, Livedoor's stock price plunged to JPY94 per share
from over JPY300 per share.  Livedoor was delisted from the
Tokyo Stock Exchange on April 14, 2006.


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

HANAROTELECOM: Posts KRW432-Bil Revenue for 1st Quarter 2006
------------------------------------------------------------
hanarotelecom Inc. revealed a 17% gain in revenues to
KRW432.3 billion on the back of an increase in broadband
revenues resulting from its merger with Thrunet and a continuous
growth in voice net additions in its first-quarter earnings
release for 2006.

The Company stated that it posted EBITDA of KRW142.8 billion and
an operating profit of KRW16 billion while significantly
reducing its net loss to KRW 6.1 billion.

The Company also said that it attracted 7,300 broadband
subscribers in April 2006, posting a net addition for the first
time this year, and acquired about 15,300 voice subscribers in
April alone, continuing a sustained growth of net addition.  
This shows that hanarotelecom's aggressive marketing activities
have led to a turnaround in operating results.

In particular, the Company expanded optical LAN coverage in the
first quarter of 2006 to 4,500 apartment complexes with
2.6 million households, which accounts for 52% of nationwide
apartment complex coverage.  In the voice business,
hanarotelecom laid the foundation for accelerating subscriber
net additions by adding 10 local call service areas and thus
securing 80% of nationwide coverage areas.

                      About hanarotelecom

hanarotelecom Inc. -- http://www.hanaro.com/-- is the second  
largest player in the Korean local telephone market.  It
provides high-speed Internet services in Korea.  In June 2001,
the company integrated broadband Internet access services which
included ADSL, Hybrid Fiber Coaxial cables (HFC) and Broadband
Wireless Local Loop (BWLL) into a single brand called HanaFOS.  
hanarotelecom offers VoIP services to its broadband business
customers as a bundled service and also as a stand alone
service.  Its VoIP infrastructure consists of an ADSL/VDSL
circuit, a splitter and a modem.  The splitter, which is
connected through a DSL or cable modem line, converts the user's
voice into digital data packets, which are further passed on
through the Internet.  The operator had 1.5 million VoIP
subscribers at the end of July 2005.

On February 22, 2006, hanarotelecom adopted a resolution on a
50% reduction of capital stock without payment to shareholders.  
If the capital reduction is approved at the annual general
meeting of shareholders to be held this year, two registered
common shares will be consolidated into one registered common
share, with the par value remaining at KRW5,000, decreasing the
number of total outstanding shares from 463,353,012 to
231,676,506 and the amount of paid-in capital from
KRW2,316,765,060,000 to KRW1,158,382,530,000.  hanarotelecom
explained that it plans to eliminate the accumulated deficit of
KRW1.07 trillion with about KRW1.16 trillion of gains from the
capital reduction.  Based on the improved financial structure,
it will pursue shareholder-friendly initiatives such as a
dividend payout or purchase of treasury stock.

Moody's Investor Service has given hanarotelecom's long-term
corporate family and its senior unsecured debt a Ba2 rating.  
Standard and Poor's gives both hanarotelecom's long-term foreign
issuer credit and long-term local foreign issuer credit a BB
rating.


HANAROTELECOM: Buys 1.3 Million New Shares in Affiliate
-------------------------------------------------------
hanarotelecom Inc. has bought 1,300,000 shares in affiliate
company hanaromedia Inc.

On June 30, 2006, hanarotelecom paid a total of KRW6.5 trillion
for the shares in the media company, whose main businesses are
video-on-demand and value-added services.

The acquisition put hanarotelecom as a majority shareholder in
hanaromedia, with a 65% stake, holding a total of about
3,380,000 of hanaromedia's 5,200,000 shares.  hanarotelecom's
capitalization in hanaromedia now totals KRW18.5 billion.  The
shares purchase also signifies the start of hanarotelecom's
entry into TV-Portal services.

This is the third time hanarotelecom bought shares from its
affiliate.  The first was on March 8, 2006, involving 780,000
shares for KRW5.5 billion.  Another 1,300,000 shares were
purchased on March 31, 2006, for KRW6.5 billion.

                       About hanaromedia

hanaromedia Inc. -- http://www.hanaromedia.co.kr/-- engages in  
video-on-demand and value-added services.  As of the end of the
first quarter of 2006, hanaromedia had total assets of
KRW18.28 billion, total liabilities of KRW3.67 billion, revenues
of KRW19 million and a net loss of KRW836 million.

                      About hanarotelecom

hanarotelecom Inc. -- http://www.hanaro.com/-- is the second  
largest player in the Korean local telephone market.  It
provides high-speed Internet services in Korea.  In June 2001,
the company integrated broadband Internet access services which
included ADSL, Hybrid Fiber Coaxial cables (HFC) and Broadband
Wireless Local Loop (BWLL) into a single brand called HanaFOS.  
hanarotelecom offers VoIP services to its broadband business
customers as a bundled service and also as a stand alone
service.  Its VoIP infrastructure consists of an ADSL/VDSL
circuit, a splitter and a modem.  The splitter, which is
connected through a DSL or cable modem line, converts the user's
voice into digital data packets, which are further passed on
through the Internet.  The operator had 1.5 million VoIP
subscribers at the end of July 2005.

On February 22, 2006, hanarotelecom adopted a resolution on a
50% reduction of capital stock without payment to shareholders.  
If the capital reduction is approved at the annual general
meeting of shareholders to be held this year, two registered
common shares will be consolidated into one registered common
share, with the par value remaining at KRW5,000, decreasing the
number of total outstanding shares from 463,353,012 to
231,676,506 and the amount of paid-in capital from
KRW2,316,765,060,000 to KRW1,158,382,530,000.  hanarotelecom
explained that it plans to eliminate the accumulated deficit of
KRW1.07 trillion with about KRW1.16 trillion of gains from the
capital reduction.  Based on the improved financial structure,
it will pursue shareholder-friendly initiatives such as a
dividend payout or purchase of treasury stock.

Moody's Investor Service has given hanarotelecom's long-term
corporate family and its senior unsecured debt a Ba2 rating.  
Standard and Poor's gives both hanarotelecom's long-term foreign
issuer credit and long-term local foreign issuer credit a BB
rating.


HANAROTELECOM: To Guarantee Affiliate's Lease for KRW90-Billion
---------------------------------------------------------------
hanarotelecom Inc.'s board of directors has approved a
resolution to provide a KRW90 billion debt guarantee to
hanaromedia Inc., an affiliate company.

If hanaromedia fails to pay lease fees, hanarotelecom will take
over the lease agreement or acquire leased assets.  The debt
guarantee is related to an equipment lease for hanaromedia's
operations, although a lessor has not yet been decided.  The
guarantee will be for a period of up to 48 months.

                       About hanaromedia

hanaromedia Inc. -- http://www.hanaromedia.co.kr/-- engages in  
video-on-demand and value-added services.  As of the end of the
first quarter of 2006, hanaromedia had total assets of
KRW18.28 billion, total liabilities of KRW3.67 billion, revenues
of KRW19 million and a net loss of KRW836 million.

                      About hanarotelecom

hanarotelecom Inc. -- http://www.hanaro.com/-- is the second  
largest player in the Korean local telephone market.  It
provides high-speed Internet services in Korea.  In June 2001,
the company integrated broadband Internet access services which
included ADSL, Hybrid Fiber Coaxial cables (HFC) and Broadband
Wireless Local Loop (BWLL) into a single brand called HanaFOS.  
hanarotelecom offers VoIP services to its broadband business
customers as a bundled service and also as a stand alone
service.  Its VoIP infrastructure consists of an ADSL/VDSL
circuit, a splitter and a modem.  The splitter, which is
connected through a DSL or cable modem line, converts the user's
voice into digital data packets, which are further passed on
through the Internet.  The operator had 1.5 million VoIP
subscribers at the end of July 2005.

On February 22, 2006, hanarotelecom adopted a resolution on a
50% reduction of capital stock without payment to shareholders.  
If the capital reduction is approved at the annual general
meeting of shareholders to be held this year, two registered
common shares will be consolidated into one registered common
share, with the par value remaining at KRW5,000, decreasing the
number of total outstanding shares from 463,353,012 to
231,676,506 and the amount of paid-in capital from
KRW2,316,765,060,000 to KRW1,158,382,530,000.  hanarotelecom
explained that it plans to eliminate the accumulated deficit of
KRW1.07 trillion with about KRW1.16 trillion of gains from the
capital reduction.  Based on the improved financial structure,
it will pursue shareholder-friendly initiatives such as a
dividend payout or purchase of treasury stock.

Moody's Investor Service has given hanarotelecom's long-term
corporate family and its senior unsecured debt a Ba2 rating.  
Standard and Poor's gives both hanarotelecom's long-term foreign
issuer credit and long-term local foreign issuer credit a BB
rating.


HANAROTELECOM: Board Approves Loan for Affiliate
------------------------------------------------
hanarotelecom Inc.'s board of directors has approved a loan of
as much as KRW60 billion for affiliate company hanaromedia Inc.

hanaromedia intends to use the money to secure equipment for the
provision of services and for its own operations.

The resolution was passed on June 22, 2006, with five out of six
outside directors present together with audit committee members.

The loan term is set for three years but repayment terms and
interest rate are yet to be decided by the Representative
Director of hanarotelecom.  

                       About hanaromedia

hanaromedia Inc. -- http://www.hanaromedia.co.kr/-- engages in  
video-on-demand and value-added services.  As of the end of the
first quarter of 2006, hanaromedia had total assets of
KRW18.28 billion, total liabilities of KRW3.67 billion, revenues
of KRW19 million and a net loss of KRW836 million.

                      About hanarotelecom

hanarotelecom Inc. -- http://www.hanaro.com/-- is the second  
largest player in the Korean local telephone market.  It
provides high-speed Internet services in Korea.  In June 2001,
the company integrated broadband Internet access services which
included ADSL, Hybrid Fiber Coaxial cables (HFC) and Broadband
Wireless Local Loop (BWLL) into a single brand called HanaFOS.  
hanarotelecom offers VoIP services to its broadband business
customers as a bundled service and also as a stand alone
service.  Its VoIP infrastructure consists of an ADSL/VDSL
circuit, a splitter and a modem.  The splitter, which is
connected through a DSL or cable modem line, converts the user's
voice into digital data packets, which are further passed on
through the Internet.  The operator had 1.5 million VoIP
subscribers at the end of July 2005.

On February 22, 2006, hanarotelecom adopted a resolution on a
50% reduction of capital stock without payment to shareholders.  
If the capital reduction is approved at the annual general
meeting of shareholders to be held this year, two registered
common shares will be consolidated into one registered common
share, with the par value remaining at KRW5,000, decreasing the
number of total outstanding shares from 463,353,012 to
231,676,506 and the amount of paid-in capital from
KRW2,316,765,060,000 to KRW1,158,382,530,000.  hanarotelecom
explained that it plans to eliminate the accumulated deficit of
KRW1.07 trillion with about KRW1.16 trillion of gains from the
capital reduction.  Based on the improved financial structure,
it will pursue shareholder-friendly initiatives such as a
dividend payout or purchase of treasury stock.

Moody's Investor Service has given hanarotelecom's long-term
corporate family and its senior unsecured debt a Ba2 rating.  
Standard and Poor's gives both hanarotelecom's long-term foreign
issuer credit and long-term local foreign issuer credit a BB
rating.


KANA SOFTWARE: Auditor Burr Pilger Expresses Going Concern Doubt
----------------------------------------------------------------
KANA Software Inc.'s auditor, Burr, Pilger & Mayer LLP,
expressed substantial doubt about the Company's ability to
continue as a going concern after auditing the Company's
financial statement for the year ending Dec. 31, 2005.

Burr Pilger pointed to the Company's recurring losses from
operations, net capital deficiency, negative cash flow from
operations and accumulated deficit.

The Company incurred a US$17.96 million net loss on
US$43.1 million of revenues in 2005.  Total revenues decreased
by 12% from US$48.9 million for the year ended Dec. 31, 2004,
primarily as a result of fewer license transactions in 2005 than
in 2004.

As of Dec. 31, 2005, the Company's balance sheet reported assets
amounting to US$35.71 million and debts totaling
US$45.5 million.  As of Dec. 31, 2005, the Company reported a
US$9.79 million equity deficit from a US$3.16 million positive
equity at Dec. 31, 2004.

In December 2005, the Company consolidated its research and
development operations into one location in Menlo Park,
California to optimize the Company's research and development
processes and decrease overall operating expenses.  As a result,
the Company terminated the employment of 15 employees based in
New Hampshire. As a result of this consolidation, the Company
incurred a restructuring charge of US$282,000 related to
employee termination costs.  Additionally, the Company recorded
a US$186,000 restructuring charge during 2005 related to a
change in evaluation of the real estate conditions in the United
Kingdom, a change in the sublease estimates in the United States
and the consolidation of our research and development operations
in Menlo Park, California.

A full-text copy of the Company's Annual Report in Form 10-K
filed with the United States Securities and Exchange Commission
is available for free at http://ResearchArchives.com/t/s?d7d  

KANA Software Inc. provides multi-channel customer service
software applications.  KANA's integrated solutions allow
companies to deliver service across all channels, including
email, chat, call centers and Web self-service, so customers
have the freedom to choose the service they want, how and when
they want it.  The Company's target market is the Global 2000
with a focus on large enterprises with high volumes of customer
interactions, such as banks, telecommunications companies, high-
tech manufacturers, healthcare organizations and government
agencies.

The Company is headquartered in Menlo Park, California, with
offices throughout the United States and Europe, and in Japan,
Hong Kong, and Korea.


* Korea Introduces New Financial Regulations Effective July
-----------------------------------------------------------
South Korea's Financial Supervisory Service and Financial
Supervisory Commission revealed new financial regulations which
will be promulgated starting July 1, 2006, the Troubled Company
Reporter - Asia Pacific learns from the FSC's Weekly Newsletter.

The new regulations are:

1. Updated Foreign Exchange Monitoring System

   The FSS will step up monitoring of foreign exchange
   transactions by launching the newly upgraded Foreign Exchange
   Monitoring System on July 1. The new monitoring system
   utilizes foreign exchange transactions data reported to Bank
   of Korea and is thus expected to help the FSS significantly
   improve monitoring of irregular foreign exchange transactions
   without data request to financial institutions.

2. Eased Requirements for Credit Rating Business License

   To attract new entrants and increase competition in the
   credit rating industry, requirements for the credit rating
   business license were relaxed, with the required number of
   credit rating specialists lowered from 30 to 20.  For
   companies that specialize in rating corporate bonds and
   commercial papers in 3 or less industries or specialize in
   rating ABS, only 10 specialists will be required.

3. Amended Rules for Management of Institutional Investors of
   MMF Deposits

   Changes were made to the rules on the management of
   institutional investors of deposits intended for purchases of
   money market funds that mandates forward MMF pricing for
   institutional investors.  With forward pricing, an order
   placed for MMF purchase is executed on the following day at
   the closing valuation of the fund on the order date.  The
   change relieves securities companies from the double funding
   required in order to execute an MMF order and helps the Korea
   Securities Finance Corporation manage its deposits more
   efficiently.

4. Major Accounting Firms of Audit Quality Control Subject to
   Review by FSS

   As part of efforts to improve preemptive supervision, the FSS
   will directly review the audit quality control systems of
   major accounting firms.  Specifically, the accounting firms
   that audit one percent or more of all listed companies, audit
   a company with assets of more than KRW1 trillion, employ
   thirty of more certified public accounts, or are selected by
   the Chairman of the Securities and Futures Commission will be
   subject to direct review by the FSS.


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

CONSOLIDATED FARMS: Appeals Bourse's Decision to Delist Shares
--------------------------------------------------------------
On July 12, 2006, Consolidated Farms Berhad submitted an appeal
to Bursa Malaysia Securities Berhad to reconsider its decision
to delist the Company's securities from the Official List.

As reported by the Troubled Company Reporter - Asia Pacific, the
Bourse, on July 5, 2006, decided to delist Confarm's securities
on July 17, as the Company does not have an adequate level of
financial condition to warrant continued listing on the Bourse.

The Bourse suspended Confarm's securities on July 5, until
further notice, as the Company has failed to regularize its
financial condition within the prescribed timeframe stipulated
by Bursa Malaysia Securities Berhad pursuant to the Listing
Requirements.  The Bourse advised that it may commence delisting
procedures against the Company if it fails to meet the
requirement.

                     About Consolidated Farms

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.


JOHAN CERAMICS: Complies with Public Shareholding Requirement
-------------------------------------------------------------
Based on the record of depositors as of June 30, 2006, Johan
Ceramics Berhad confirmed that its public shareholding spread
was 28.14% and were held by 2,191 public shareholders holdings
not less than 100 shares each.

The Bourse requires a listed issuer to have at least 25% of its
listed shares in the hands of a minimum of 1,000 public
shareholders holding not less than 100 shares each.

In this regard, the Company has complied with the public
shareholding spread requirement pursuant to the Listing
Requirements of Bursa Malaysia Securities Berhad.

                  About Johan Ceramics Berhad

Headquartered in Malaysia, Johan Ceramics Berhad principally
engages in the manufacture and sale of glazed ceramic wall and
floor tiles.  The Company's balance sheet as of March 31, 2006,
showed accumulated losses of MYR35.5 million in shareholders
equity.  The Company was classified as an affected listed issuer
under the Amended Practice Note 17 category of Bursa Malaysia
Securities Berhad's Listing Requirements after its auditors
expressed doubt on the Company's ability to continue as a going
concern and after its shareholders' equity plunged below the
listing requirement.  As an affected issuer, the Company is
required to formulate and implement a plan to regularize its
financial condition.


KRAMAT TIN: June 30 Public Shareholding Spread Pegged at 47.10%
---------------------------------------------------------------
Kramat Tin Dredging Berhad said it has complied with Bursa
Malaysia Securities Berhad's public spread rule, which requires
listed issuer to have at least 25% of its listed shares in the
hands of a minimum of 1,000 public shareholders holding not less
than 100 shares each.

The Company's public shareholding spread as of June 30, 2006, is
47.10% and the number of public shareholders with not less than
100 shares is 1,360.

                 About Kramat Tin Dredging Berhad

Headquartered in Kuala Lumpur, Malaysia, Kramat Tin Dredging
Berhad is currently in the process of identifying suitable
business opportunities.   The Company ceased its mining
operations in 1988.  In 2001, Bursa Malaysia Securities Berhad
classified Kramat Tin as a Practice Note 10 company, given its
inadequate level of operations.  To avoid being de-listed,
Kramat Tin, in 2004, entered into an arrangement to restructure
its operational and financial position.  Currently, Kramat Tin
is seeking the approval of the regulatory authorities for its
Proposed Restructuring Scheme.  For the financial year ended
December 31, 2005, with the scheme still pending completion,
Kramat Tin registered a smaller loss of MYR524,000 compared with
the MYR1.3-million net loss in 2004.


LITYAN HOLDINGS: Public Shareholding Stands at 74.74%
-----------------------------------------------------
Lityan Holdings Berhad's public shareholding spread as of
June 30, 2006, is 74.74% comprising 10,303 shareholders holding
not less than 100 shares each.

Consequently, Lityan has complied with the public shareholding
spread requirement of Bursa Malaysia Securities Berhad.

The Bourse requires a listed issuer to have at least 25% of its
listed shares in the hands of a minimum of 1,000 public
shareholders holding not less than 100 shares each.

                 About Lityan Holdings Berhad

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

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

The total amount of debts defaulted by Lityan Holdings Berhad
and its subsidiaries as of June 30, 2006, has reached
MYR12,565,005.


MALAYSIA AIRLINES: Seeks Shareholders' Okay on ADBU Termination
---------------------------------------------------------------
An Extraordinary General Meeting of the shareholders of Malaysia
Airlines System Berhad will be held on July 28, 2006, at 10:00
a.m., at the MAS Academy, No. 2, Jalan SS7/13, Kelana Jaya, in
47301 Petaling Jaya, Selangor Darul Ehsan.

During the meeting, shareholders will consider and, if thought
fit, approve the proposed early termination of the agreement for
domestic business unbundling entered into between Malaysia
Airlines and its parent, Penerbangan Malaysia Berhad.

The shareholders will be asked to allow Malaysia Airlines to
proceed with the Proposed Early Termination upon the terms of
the termination agreement signed by the carrier and its parent
on July 11, 2006.

As reported by the Troubled Company Reporter - Asia Pacific,
Malaysia Airlines and Penerbangan Malaysia, on July 30, 2002,
signed the ADBU in relation to the removal of the domestic
business profit and loss account from the carrier's accounts.

In the July 11, 2006 Bursa Malaysia disclosure, Malaysia
Airlines said that the termination of the agreement was part of
the rationalization of the domestic airline services sector
announced by the Government earlier this year.  

As a result of the proposed termination, all arrangements under
the agreement would cease, including the cash flow arrangements
whereby Penerbangan would reimburse Malaysia Airlines all costs
associated with the domestic business, while the carrier would
pay its parent all the associated revenue that it earns
domestically.

In this regard, Penerbangan will pay the national carrier the
agreed amount of MYR650 million as full and final compensation
for the early termination of the ADBU.

                    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: Chan Defends Floor Price Lifting
---------------------------------------------------
Transport Minister Datuk Seri Chan Kong Choy supports the
Cabinet's decision to lift the floor price of Malaysia Airlines
and allow the carrier to resume three lucrative domestic routes,
The Edge Daily reports.

As reported by the Troubled Company Reporter - Asia Pacific on
July 11, 2006, the Government reversed an earlier decision to
impose a minimum floor price on Malaysia Airlines for its 22
domestic routes from August 1, 2006, as part of the
rationalization of the domestic routes to allow AirAsia to take
over the bulk of the local flights.  The two carriers had on
February 27, 2006, inked an agreement where Malaysia Airlines
was not allowed to sell its tickets below certain prices.  

According to the TCR-AP, AirAsia chief executive officer Datuk
Tony Fernandes had expressed that the lifting of the floor price
caused unfair competition.

However, Mr. Chan insisted that the Cabinet's decision is fair
and did not violate the domestic route rationalization
agreement, as both carriers do not have a floor price, according
to The Edge.  Mr. Chan explained that the Government reversed
its decision so that Malaysia Airlines can offer discounted
rates to the handicapped, retirees and senior citizens.

The decision to remove the floor price was made not just to
benefit the people but also the country and aviation industry,
The Star Online cites Mr. Chan as saying.  Mr. Chan added
AirAsia should not have anything to complain about as the
Government was being fair and transparent.

The Transport Minister also refuted a claim by AirAsia that it
was not formally informed by the Government on the decision, The
Star relates.  He said that AirAsia had been formally informed
of the decision and the ministry was prepared to listen to the
budget airline's complaints any time.

                    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.


OLYMPIA INDUSTRIES: Enters Into Additional Restructuring Deals
--------------------------------------------------------------
Olympia Industries Berhad, on July 12, 2006, inked agreements in
respect of its restructuring scheme.

Olympia's subsidiary Miles & Miles Leisure Sdn Bhd -- formerly
known as Olympia Travels & Tours Sdn Bhd -- has signed a
novation agreement with Mycom Berhad and Alliance Bank Malaysia
Berhad wherein Miles & Miles will novate and transfer all its
rights and obligations under an agreement dated July 7, 1998,
made between Alliance Bank and Miles & Miles for credit
facilities of up to the maximum aggregate principal sum of
MYR4,980,000 to Mycom.

Olympia Industries also entered into a novation agreement with
Mycom and AmBank Berhad wherein Olympia will novate and transfer
all its rights and obligations under a letter dated August 24,
1994, issued by AmBank granting Olympia a revolving credit
facility of up to the maximum aggregate principal sum of
MYR10,000,000 to Mycom.

In addition, Olympia Land Berhad, Mycom and AmBank entered into
an agreement wherein Olympia Land will novate and transfer all
its rights and obligations under a letter of offer dated
March 6, 1997, issued by AmBank granting Olympia Land a
revolving credit facility of up to the maximum aggregate
principal sum pf MYR3,000,000 to Mycom.

Furthermore, a novation agreement was inked by Mascon Sdn Bhd,
Olympia Industries and United Overseas Bank wherein Mascon will
novate and transfer all its rights and obligations under a loan
agreement dated October 23, 1996, made between Mascon, Asian
International Merchant bankers Berhad -- now known as Public
Merchant Bank -- as the manager and agent and the syndicated
lenders for a term loan facility of up to the maximum aggregate
principal sum of MYR230,000,000 to Olympia Industries.

Pursuant to a statutory vesting certificate made between Public
Merchant Bank and Pengurusan Danaharta Nasional Bhd, all rights,
interests and title of Public Merchant Bank under the Loan
Agreement and pursuant to the facility have been transferred to
Pengurusan.  By a deed of assignment dated August 25, 2005, made
between Pengurusan, Danaharta Managers Sdn Bhd and United
Overseas Bank, Pengurusan had assigned all its rights, interest
and title under the Loan Agreement and the facility to United
Overseas Bank.

On even date, Olympia Industries and United Overseas Bank
entered into a supplemental agreement to vary the terms of the
Loan Agreement.  The principal amount together with any interest
payable under the said facility to be restructured is based on
the cut off date as of September 30, 1998, amounted to
MYR125,033,868.

The Troubled Company Reporter - Asia Pacific recounts that
Olympia Industries, on June 28, 2006, entered into 14 novation
and supplemental agreements with relevant parties in respect of
the remaining debts to be restructured under the Company's
revamp scheme.  On July 7, 2006, the Group also entered into
three supplemental and novation agreements in respect of its
restructuring.

According to the TCR-AP, the Company expects to progressively
enter into further agreements to settle the balance of its
outstanding debts.

                 About Olympia Industries Berhad

Headquartered in Kuala Lumpur, Malaysia, Olympia Industries
Berhad organizing and managing numbers forecast pools and public
lotteries, operation of recreation clubs, investment holding and
property development.  Other activities include trading in
securities, paint spraying of aluminium, other metal products
and architectural products, letting of properties, maintaining
and operating internet based transaction facilities and
services, food and beverage business, events organizer and
project management, travel and tours agency, servicing of oil
and gas pipeline, asset management, money lending and
stockbroking.  Operations are carried out in Malaysia, Papua New
Guinea and Singapore.  The Company has incurred continuous
losses in the past and has also been fined many times by Bursa
Malaysia Securities for failing to maintain appropriate
standards of corporate responsibility and accountability to the
investing public.

As of March 31, 2006, the Company's balance sheet showed
MYR991,747,000 in total assets and MYR1,971,727,000 in total
liabilities, resulting in a shareholders' equity deficit of
MYR979,980,000.


PANGLOBAL BERHAD: Public Shareholding Spread Meets Requirement
--------------------------------------------------------------
The public shareholding spread of PanGlobal Berhad as of
June 30, 2006, stands at 62.35% of the total shareholding in the
hands of 12,041 public shareholders.

As such, the Company has complied with the level of public
shareholding spread as prescribed under Bursa Malaysia
Securities Berhad's Listing Requirement.

The Bourse requires a listed issuer to have at least 25% of its
listed shares in the hands of a minimum of 1,000 public
shareholders holding not less than 100 shares each.

                     About PanGlobal Berhad

Headquartered in Kuala Lumpur, Malaysia, Panglobal Berhad
-- http://home.panglobal.com.my/-- is engaged in underwriting  
all classes of general insurance business, extracting of logs,
sawmilling, manufacturing of veneer and extraction of coal.  
Other activities include property investment and development and
leasing of real estate, investment holding, business management,
building and fitness club management.  PanGlobal is a Practice
Note 4/2001 company.  The Bursa Malaysia Securities has required
the Company to regularize its financial condition, curb huge
losses and settle debts in order to continue operating.  The
Company has already submitted a Proposed Restructuring Scheme to
the Securities Commission on September 9, 2005.  On April 6,
2006, the Securities Commission approved PanGlobal  
Berhad's proposed restructuring scheme.

The Company's March 31, 2006, balance sheet revealed total
assets of MYR694,257,000 and total liabilities of
MYR1,033,963,000 resulting into a shareholders' deficit of
MYR339,706,000.


PROTON HOLDINGS: Receives Huge Orders for Satria Neo
----------------------------------------------------
Proton Holdings Berhad's distribution arm, Proton Edar Sdn Bhd,
has already received 2,000 orders for Satria Neo following the
launch of the new model last month, Business Times reports.

Proton chief executive officer Datuk Maruan Mohd, who earlier
handed over the keys of the first 30 Satria Neo owners, welcomes
the overwhelming response from the public.

"Since its launch on June 16, to date we have recorded bookings
of more than 2,000 units and about 200 cars have been registered
on the road," Mr. Mohd told Business Times.

Mr. Mohd is confident that the sporty two-door Satria Neo will
generate a monthly sales volume of up to 2,500 units, The Times
relates.

Proton expects the new model to improve its image and boost the
firm's profitability and market share.

As reported by the Troubled Company Reporter - Asia Pacific, The
Malaysian carmaker has been losing its market share to stronger
rivals like Toyota Motor Corporation and even its local
competitor, Perodua.  Proton lost 9% of its local market share
in the three months ended March 31, 2006, from a year ago, as
more buyers turned to overseas brands after the Government cut
import taxes.

According to the TCR-AP, the Government cut import taxes for
vehicles assembled in South-East Asia to 5% from 15% in March,
removing more than two decades of tariff protection for Proton.  
Although Proton was able to drop its prices by 7%, it could not
compete with Toyota's 11% price cut.  Proton's sales in the
three months to March 2006 slumped 25%.

Meanwhile, Proton aims to introduce its Satria Neos to overseas
markets such as the United Kingdom and Australia by the third
quarter of this year, The Times says.  Regionally, Thailand and
Indonesia will be among the first markets for Satria Neo.

                      About Proton Holdings

Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan
Otomobil Nasional Berhad or Proton Holdings Berhad
-- http://www.proton-edar.com.my/-- is engaged in  
manufacturing, assembling, trading and provision of engineering
and other services in respect of motor vehicles and related
products.  Its other activities include property development,
trading of steel and related products, engine and technologies
research, development of automotive related technologies,
investment holding, importation and distribution of motor
vehicles, related spare parts and accessories, holds
intellectual property, provides engineering consultancy,
operates single make race series and carries out specific
engineering contracts.  The Group's operations are carried out
in Malaysia, England, Australia, Socialist Republic of Vietnam
and the United States of America.

Proton was reported to be among Malaysia's worst-performing
companies in 2005, after competition from foreign carmakers and
a lack of new models lost the firm local market share and
subsequently led it into a loss.  It has since brought in a new
chief, sold its loss-making MV Agusta motorbike firm and pledged
to find a new technology partner.  The Company has been under
increasing pressure, with its share of domestic sales falling to
44% from 75% over the past decade.

The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Proton was expected to finalize a recovery plan and
seal an alliance with a strategic partner by the end of this
year.


TANCO HOLDINGS: Awaits Court's Decision on RO Extension Request
---------------------------------------------------------------
The Kuala Lumpur High Court will, on July 18, 2006, deliver its
decision in respect of Tanco Holdings Berhad's application to
extend by another three months the restraining order granted by
the Court.

According to the Troubled Company Reporter - Asia Pacific, Tanco
Holdings sought extension of the restraining order -- which
expired on June 30, 2006 -- extended to the Company and its
subsidiaries:

     * JKMB Development Sdn Bhd;
     * Palm Springs Development Sdn Bhd;
     * Palm Springs Resort Management Berhad;
     * Popular Elegance (M) Sdn Bhd;
     * Tanco Development Sdn Bhd;
     * Tanco Land Sdn Bhd;  
     * Tanco Properties Sdn Bhd;
     * Tanco Resorts Berhad; and
     * Tanco Club Berhad.

As reported by the TCR-AP on August 18, 2004, the High Court of
Malaya in Kuala Lumpur entered a Restraining Order in favor of
the Tanco Group to allow it time to formalize its Scheme of
Arrangement with its creditors.

                  About Tanco Holdings Berhad

Headquartered in Selangor Darul Ehsan, Malaysia, Tanco Holdings
Berhad -- http://www.tancoresorts.com/-- operates resort, golf  
and marina clubs and provides management services.  Its other
activities include provision of exchange services in relation to
vacation ownership schemes; property holding and development;
provision of consultancy services; money lending business;
travel and tour agent; multimedia related business; and
investment holding.  The Group carries out its operations in
Malaysia, the British Virgin Islands, New Zealand and Mauritius.  
The Company is placed under Bursa Malaysia Securities Practice
Note 17 because of its lackluster financial performance, as well
as mounting debts and defaults.  As an affected listed issuer,
the Company is required to submit and implement a regularization
plan to avoid delisting.


TAP RESOURCES: Lists and Quotes Additional Shares
-------------------------------------------------
TAP Resources Berhad's additional 6,546,160 new ordinary shares
of MYR1 each were granted listing and quotation by Bursa
Malaysia Securities Berhad on July 13, 2006.

The shares were derived from the conversion of 6,546,160
irredeemable convertible unsecured loan stock 2003/2006 into
6,546,160 ordinary shares.

                  About TAP Resources Berhad

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

As of April 30, 2006, the Company registered a net loss of
MYR3.57 million and a net current deficit of MYR48.56 million.  
The Company has defaulted in the redemption of the balance of
MYR31,734,381 redeemable convertible secured loan stocks .  It
has also defaulted in the payment of interests, default
interests and overdue interests totaling approximately MYR3.1
million.


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

LEPANTO CONSOLIDATED: Mulls Restart of Copper Mining Operations
---------------------------------------------------------------
Lepanto Consolidated Mining Co. is keen on reopening its copper
mine in Mankayan, Benguet, after five years of closure, The
Philippine Daily Inquirer reports.

Lepanto Chairman Felipe Yap told The Inquirer that global copper
prices have climbed up to as high as US$3.00 per pound this
year, from a record low of US$0.70 in 2001, a price that had
forced the Company to shut down its Mankayan operations.

In view of rising metal prices, the mining firm said that it
will resume copper production by September 2006 through a new
project, The Inquirer says.

Lepanto has filed with the Board of Investments an application
for the registration of the Victoria copper-gold flotation
project as a new project on a non-pioneer status, The Philippine
Star reveals.

BusinessWorld says that the registration's approval will entitle
Lepanto to a four-year income tax holiday that can be extended
for another three years subject to compliance with certain
conditions, and lower tariff on the acquisition of capital
equipment.

Mr. Yap did not disclose how much the Company is investing in
the revival its copper operations, but said that it is targeting
Chinese smelters and the Philippine Associated Smelting &
Refining Corp. as possible markets, The Star says.

Lepanto expected to earn US$47 million per year from the
Victoria copper-gold flotation project, according to The Star.

Meanwhile, news of Lepanto's plan to resume copper production
buoyed the miner's shares on Thursday, July 13, 2006.  Lepanto A
shares -- restricted to local investors -- were up Php0.01 or
3.57% at Php0.29 on 13.6 million shares.  The B shares --
available to both locals and foreigners -- were up Php0.01 or
3.13% at Php0.33 on 3.78 million shares.

                   About Lepanto Consolidated

Lepanto Consolidated Mining Company --
http://www.lepantomining.com/-- was incorporated primarily to  
be involved in the exploration and mining of gold, silver,
copper, lead, zinc and all kinds of ores, metals, minerals, oil,
gas and coal and their related by-products.  The Company was
incorporated in 1936 and until 1997 was operating an enargite
copper mine.  It shifted to gold bullion production in the same
year through its Victoria Project.  Lepanto operated a copper
flotation plant from August 2000 to December 2001, when copper
operations were suspended due to the presence of excessive
penalty elements in the mill feed and copper concentrate.  
Lepanto sells its gold bullion production to London's Johnson  
Matthey.  Lepanto is now one of the country's top producers of
gold and its by-products, copper and silver.  The Company also
has investments in other areas through its subsidiaries such as
hauling business, diamond drilling business, insurance business,
manufacturing of industrial diamond tools for mining
exploration, marble cutting and the construction industry.      

The Troubled Company Reporter - Asia Pacific reported on
Jan. 27, 2006, that Lepanto Consolidated is working to recover
from a PHP400-billion loss incurred in the past two years due to
labor disputes.


MANILA ELECTRIC: Vows Not To Compromise Customers
-------------------------------------------------
Manila Electric Company assures its customers that it will not
enter into deals that would compromise client interest, ABS-CBN
News reports.

The Lopez-controlled utility firm denied accusations that it has
hiked power rates after an alleged electricity supply contract
with YNN consortium and Ranhill Berhad, the report says.

Customers are wary that Meralco's rates could skyrocket once a
supply deal is reached since Meralco and its supplier will have
to recoup through higher rates the US$561 bid price issued by
the consortium.

The consortium was expected to run the Masinloc plant very soon
until negotiations for the acquisition was delayed due to the
absence of a supply contract, ABS-CBN says.

Meralco vice-president and corporate communication head Elpi
Cuna Jr., however, appeased customers saying that the Company
will not sign contracts that will not benefit the public.  He
added that the Company is aware of the impact of such
transaction in bringing back investors' interest in the power
industry as a whole.

"Any supply agreement that Meralco enters into whether with
First Gas or with our other independent power producers is meant
to bring down the generation component in Meralco's electricity
bill.  We also need to be assured that Meralco will have some
sort of insurance in having additional capacity in the future,
which in turn, assures consumers continuity in electric supply,"
Mr. Cuna said

                           About MERALCO

Headquartered in Ortigas, Pasig City, the Manila Electric
Company -- http://www.meralco.com.ph/-- is the largest utility  
in the Philippines, providing power to 4.1 million customers in
metropolitan Manila and more than 100 surrounding communities.  
As deregulation takes effect, Meralco is reducing its dependence
on state-owned National Power Corp. by increasing the amount of
power it purchases from independent power producers.  Meralco is
also preparing for competition by moving into non-regulated
activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real
estate.

                          *     *     *

A March 31, 2006 report by the Troubled Company Reporter - Asia
Pacific stated that the Company posted a 79.7% decrease in its
2005 net losses to PHP411 million from PHP2.03 billion in 2004,
due to provisions for probable losses while awaiting a Supreme
Court final decision on a pending unbundling rate case, and the
adoption of new accounting standards.

The TCR-AP further stated on April 27, 2006, that the Company
filed a report with the Philippine Stock Exchange, indicating a
66.1% decline in its net loss from January to March 2006 to
PHP748 million, against a PHP2.2 billion loss for the same
period in 2005.

According to a subsequent TCR-AP report on April 24, 2006,
Manila Electric cannot seek a loan to expand its facilities
unless it repays outstanding short-term debts amounting to
around PHP4.7 billion.


MAYNILAD WATER: France's Suez Mulls Stake Sale
----------------------------------------------
French utility firm Suez SA is planning to dispose of its 16%
interest in water concessionaire Maynilad Water Services Inc.
when the Government sells its 84% stake in October this year,
ABS-CBN News reports, citing Reuters.

The Government confirmed that Suez has tag-along options, but
the parties have not yet agreed on how these options will be
exercised, ABS-CBN says.

As reported by the Troubled Company Reporter - Asia Pacific, the
Government will divest its stake in Maynilad under a
reprivatization exercise.  The Government has re-acquired its
Maynilad holding last year from Benpres Holdings Corporation
through a debt-to-equity swap deal.

According to ABS-CBN, the Government has set a minimum bid of
US$56.4 million for its 84% interest in Maynilad, apart from a
US$30 million performance bond.  The minimum bid amount would go
to water regulator Metropolitan Waterworks and Sewerage System,
which lent money to Maynilad to fund its operations after
Benpres entered into a debt restructuring agreement with its
creditors.  The amount in excess of the minimum bid would go to
Maynilad to help fund its capital expenditure needs for the rest
of the water concession period of up to 2022.

Eleven investor groups, including seven foreign firms, have
expressed interest in Maynilad, ABS-CBN reveals.  Prospective
bidders include construction firm DMCI Holdings Inc., Manila
Water Corp., United States-based AMROC Investments Asia Ltd and
two unidentified firms represented only by law firms.

                           *     *     *

Maynilad Water, formerly known as Benpres-Lyonnaise Waterworks,
Inc., was incorporated on January 22, 1997 as a joint venture
between the Parent Company and Suez-Lyonnaise Des Eaux, now
known as Suez Environnement, primarily to bid for the operation
of the privatized system of waterworks and sewerage services of
the Metropolitan Waterworks and Sewerage System for Metropolitan
Manila.

According to a report by the TCR-AP on Nov. 19, 2003, the
Company filed for corporate rehabilitation with the Quezon City
Regional Trial Court, saying it could not pay its debts
following an international arbitration panel's decision
regarding the early termination of Maynilad's water concession
agreement with Metropolitan Waterworks & Sewerage System.

On Aug. 6, 2004, the Rehabilitation Court directed Maynilad
Water to submit a revised rehabilitation plan based on a full
draw of a US$120-million performance bond within a non-
extendable 30-day period or until September 6, 2004.  On
September 9, 2004, Maynilad Water, its shareholders, MWSS, and
the Department of Finance set out their intents in a Memorandum
of Understanding relating to the restructuring of:

   -- the financial obligation of Maynilad Water with various
      banks; and

   -- the unpaid Concession Fees of Maynilad Water under the
      Concession Agreement.

            Debt Capital and Restructuring Agreement

On April 29, 2005, Maynilad Water, its shareholders, bank
creditors, and MWSS executed a debt capital and restructuring
agreement to set out the terms and conditions of their
understanding and to govern their respective rights and
obligations in connection with the restructuring of the debt and
capital of Maynilad Water.  The DCRA provides, among others, the
capital restructuring and restructuring of debt and concession
fees of Maynilad Water, and will take effect upon the
satisfaction of precedent conditions set forth in the DCRA,
including Court approval.  The Rehabilitation Court approved the
DCRA on June 1, 2005, and the DCRA was effected on July 20,
2005.


MIRANT CORP: Will Sell Philippine Business
------------------------------------------
Mirant Corp., which recently dropped an unsolicited bid to buy
rival NRG Energy Inc., revealed plans of selling its
international assets and buy back up to US$1.25 billion of its
stock, Manila Standard Today reports.

As reported in the Troubled Company Reporter - Asia Pacific on
July 13, 2006, Mirant revealed a strategic plan to enhance
shareholder value.  The elements of Mirant's plan are:

   (1) the immediate launch of a modified "Dutch Auction" tender
       offer for up to 43 million shares of Mirant common stock,
       using available cash and cash to be distributed to Mirant
       upon completion of a term loan to be entered into by
       Mirant's Philippines business, and

   (2) the commencement of auction processes to sell Mirant's
       Philippines and Caribbean businesses.  As Mirant
       generates cash through these sales, it plans to continue
       returning cash to its shareholders.

According to press reports, Mirant disclosed that it is starting
auctions to sell its Philippine and Caribbean businesses and
expects the transactions to close by mid-2007.

Mirant hired Credit Suisse as financial advisor for the sale of
its Philippine business, which includes ownership interests in
three generating facilities.  JPMorgan will serve as advisor for
the sale of the Caribbean unit, which includes controlling
stakes in utilities in Jamaica and Grand Bahama and minority
investments in two others.

Standard Today recounts that Mirant had previously said that it
planned to recapitalize its business in the Philippines.  Mirant
had expected to raise around US$1.2 billion in refinancing for
its core Philippine assets, a source close to the plan told
Reuters in March 2006.

Alena Mae Flores of Standard Today notes that the remaining
Mirant businesses will consist of the company's United States
operations, which it expects to generate enough cash to meet all
capital requirements and planned environmental capital
expenditures.

Standard Today further says that among the Philippine assets put
up for sale are three generating facilities -- Sual, Pagbilao
and Ilijan -- with a combined power capacity of 2,203 megawatts.

The TCR stated that the Philippines business contributed
US$370 million in adjusted EBITDA in 2005.  In light of its
decision to sell its Philippines business, Mirant has adjusted
its plan to recapitalize the business.  The recapitalization
will now consist of a US$700 million term loan for which Mirant
has obtained a commitment from Credit Suisse.  The term loan
will be prepayable at par.

Ms. Flores cites an industry source as saying that the sale of
Mirant assets in the Philippines has drawn interest from nine
companies: AIG, One Energy, Mitsubishi, China Light and Power
Holdings, Korea Electric Power Corp., Tokyo Electric Power Co.,
Kyushu Electric Co., Ayala Group, Aboitiz Group and First
Pacific Corp./Metro Pacific Corp. led by businessman Manuel
Pangilinan.

Energy Secretary Raphael Lotilla said Mirant's move "was not
entirely unexpected" given the financial condition of Mirant
Philippines' mother company in the U.S. after emerging from a
bankruptcy protection in January, Standard Today says.

Mr. Lotilla said that Mirant's plants remained profitable.
"Higher expected economic growth supported by rising foreign
direct investments demonstrates that investor confidence remains
intact and will help sustain the profitability of these plants,"
he added.

                        Share Repurchases

Mirant's Board of Directors authorized the repurchase of up to
43 million shares of Mirant common stock for an aggregate
purchase price of up to US$1.25 billion.  The repurchase will be
made through a modified "Dutch Auction" tender offer in which
Mirant's shareholders will be given the opportunity, subject to
certain conditions, to sell all or a portion of their shares of
Mirant common stock to Mirant at a price not less than US$25.75
and not more than US$29.00 per share.  The tender offer will
commence today and will be funded through a combination of cash
on hand and cash distributed to Mirant upon completion of a term
loan to be entered into by Mirant's Philippines business.

                    Estimated Available Cash

The TCR said that proceeds for the tender offer will come from
available cash on hand of US$885 million and cash to be
distributed to Mirant upon completion of the US$700 million term
loan to be entered into by Mirant's Philippines business.  The
remainder of the term loan will be used to pay off existing debt
in the Philippines.

                       About Mirant Corp.

Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that  
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally.  Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590), and emerged under the terms of a
confirmed Second Amended Plan on January 3, 2006.  Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.  When the Debtors filed for
protection from their creditors, they listed US$20,574,000,000
in assets and US$11,401,000,000 in debts.


MIRANT CORP: Fitch Places B+ Rating on Watch Negative
-----------------------------------------------------
Fitch Ratings places the ratings of Mirant Corp. (MIR),
including the Issuer Default Rating of 'B+', and its
subsidiaries on Rating Watch Negative following its announced
plans to buy back stock and sell its Philippine and Caribbean
assets.

The company plans to use available cash on-hand of approximately
US$1.2 billion and repatriated funds of US$376 million from a
refinancing of the Philippine assets to repurchase up to
43 million shares of common stock under an auction process for a
total price of up to US$1.25 billion.  This use of cash along
with the sale of Mirant's higher margined international assets,
which Fitch expected would generate 30% to 40% of consolidated
EBITDA in 2006, will also reduce the company's liquidity
position and thus financial flexibility.

The announcement follows a recent unsolicited offer to purchase
a competitor which has since been terminated, and Fitch believes
further strategic announcements are likely as management has not
yet articulated its plans for the cash generated from the sale
of the international assets.  Redeployment of the sales proceeds
combined with the planned treasury share repurchase and pending
sale of international assets will transform Mirant's business
franchise, risk and financial profile.  Mirant will be
challenged to redeploy the cash generated from the international
asset sales in a manner that maintains leverage and coverage
metrics.  Consequently, in the absence of the use of the
proceeds from the sale of the international assets to pay down
debt in a material way, Fitch expects to downgrade Mirant's
ratings.

Mirant, through its subsidiaries, is engaged in the generation
and sale of electricity in the wholesale power markets in the
United States.  Additionally, Mirant has interests in power
projects and vertically integrated utilities in the Philippines
and the Caribbean.

Ratings affected are:

   * Mirant Corp

     -- Issuer Default Rating (IDR) 'B+'.

   * Mirant Mid-Atlantic LLC

     -- IDR 'B+';
     -- Pass-through certificates 'BB+/Recovery Rating RR1'.

   * Mirant North America, Inc.

     -- IDR 'B+';
     -- Senior secured bank debt 'BB/RR1';
     -- Senior secured term loan 'BB/RR1';
     -- Senior unsecured notes 'BB-/RR1'.

   * Mirant Americas Generation, LLC

     -- IDR 'B+';
     -- Senior unsecured notes 'B/RR5'.

Fitch's Recovery Ratings, introduced in 2005, are a relative
indicator of creditor recovery on a given obligation in the
event of a default.


MIRANT CORP: S&P Places B+ Corporate Credit Rating on Neg. Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services placed the 'B+' corporate
credit ratings on Mirant Corp. and its subsidiaries:

   * Mirant North American LLC,
   * Mirant Americas Generating LLC, and
   * Mirant Mid-Atlantic LLC

on CreditWatch with negative implications.

The CreditWatch listing follows Mirant's announcement that they
will buy back up to 43 million common shares with cash on hand
and cash to be freed up from a near-term recapitalization of its
Philippines business.  Mirant also announced that its
Philippines and Caribbean businesses will be sold through an
auction process.  The use of cash to buy back the company's
common stock will reduce Mirant's liquidity position to levels
below those established, when the company emerged from
bankruptcy in late 2005.

The sale of the international assets will reduce future cash
flow and more importantly, reduces the company's portfolio
diversification.  The share repurchases and divestitures are
both negative for credit quality and could lead to a downgrade
of company ratings.  Mirant's management stated on their analyst
call that as the company generates cash, they plan to return it
to their shareholders, and that at present, there is no
intention to repay any debt at MNA, MAG or MIRMA.

"Standard & Poor's expects to resolve the CreditWatch with
negative implications listing over the near term," said Standard
& Poor's credit analyst Arthur F. Simonson.

After the sale of the international assets, Mirant will largely
be a U.S. merchant power generator.

"We will analyze the company's ability to generate cash flow and
the volatility profile of that cash flow in relation to Mirant's
capital structure, when determining the appropriate rating
levels," he continued.


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

BARING COMMUNICATIONS: Accepting Proofs of Debt Until August 7
--------------------------------------------------------------
Liquidators of Baring Communications Equity (Asia-Pacific)
Limited will be receiving proofs of debt from creditors until
August 7, 2006.

Creditors who will not be able to prove claims on the due date
will be excluded from sharing in any distribution the Company
will make.

The liquidators can be reached at:

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


FLEXSYS PRIVATE: Creditors Should Prove Debt by August 7
--------------------------------------------------------
Flexsys Private Limited notifies parties-in-interest of its
intention to declare dividend to creditors.

In this regard, creditors are required to prove their debt by
August 7, 2006, for them to share in the dividend distribution.

The liquidator can be reached at:

         Tan Siok Kheng
         Low Mei Mei Maureen
         18 Cross Street
         #07-03 Marsh & McLennan Centre
         Singapore 048423


HAGEMEYER ASIA: Creditors' Proofs of Debt Due on August 7
---------------------------------------------------------
Creditors of Hagemeyer Asia Pacific Electronics Private Limited
are required to prove their claims by August 7, 2006.

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

         Bob Yap Cheng Ghee
         Neo Ban Chuan
         c/o 16 Raffles Quay #22-00
         Hong Leong Building
         Singapore 048581


L&M GROUP: May Sell Subsidiaries to CSC Holdings
------------------------------------------------
  
L&M Group Investments Limited may enter into exclusive
negotiations to sell its subsidiaries to CSC Holdings Limited.

The L&M Group units which may be disposed of are:

         * L&M Foundation Specialist Pte Limited; and
         * L&M Geotechnic Pte Limited.

Currently, no agreement has been reached between L&M and CSC
Holdings yet as negotiations are ongoing.

            About L&M Group Investments Limited

Founded in 1971 and listed on the Stock Exchange of Singapore
since 1984, L&M Group Investments Ltd delivers its specialized
engineering and construction services through two divisions --
Geotechnic and Structural Systems.  Geotechnic Division
undertakes the design and construction of geotechnical
engineering and heavy foundation works, the sale of building
products and rental of engineering equipment.  Structural
Systems Division undertakes the design and construction of
structural and civil engineering works. In December 2005, the
Company sought to appoint a judicial manager to revive the
Company's operations.  The High Court of Singapore placed the
Company under judicial management on January 11, 2006, under Bob
Low Sie of Messrs Bob Low Sie & Company.  The Judicial
Management Order will remain in force until January 9, 2007.


PERALATAN BIOSAINS: Pays Preferential Dividend to Creditors
-----------------------------------------------------------
Peralatan Biosains (S) Pte Limited has paid its first and final
dividend to creditors on May 29, 2006.

Creditors received 70.765 % of their admitted preferential
claims.

The Assistant Official Receiver can be reached at:

         Chan Wang Ho
         The URA Centre (East Wing)
         45 Maxwell Road #06-11
         Singapore 069118


SPH MEDIAWORKS: Creditors' Proofs of Claim Due on July 28
---------------------------------------------------------
Creditors of Sph Mediaworks Limited are requested to file their
proofs of claim by July 28, 2006, for them to share in the
Company's dividend distribution.

The liquidator can be reached at:

         Peter Chay Fook Yuen
         c/o KPMG
         16 Raffles Quay #22-00
         Hong Leong Building
         Singapore 048581


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

GLOBAL WATER: Plans New Marketing Strategy to Address Losses
------------------------------------------------------------
To address continued operating losses, Global Water Systems Co.,
a subsidiary of Eastern Water Resources Development and
Management Plc, intends to adopt a new marketing strategy, the
Bangkok Post reports.   

Wanchai Lawatanatrakul, chief executive of East Water, told
Bangkok Post that Global Water is planning to offer franchises
instead of long-term leases to cut maintenance costs.  He said
that to date, the Company has leased out about 3,000 machines.

Bangkok Post relates that under the new franchise system,
investors would have to maintain the machines themselves,
removing the burden from Global Water.

"If the Company received enough revenue through the new system,
it would become profitable in two years", Mr. Lawatanatrakul
told Bangkok Post.

Bangkok Post recounts that Global Water, which supplies
drinking-water vending machines, posted a loss of THB6 million
in the first six months of 2006.  Bangkok Post notes that the
Company has been posting an average of THB10 million in losses
per year over the past three years.

                          *     *     *

Global Water Systems Co is a wholly owned subsidiary of Eastern
Water Resources Development & Management Public Company Limited.  
The principal business of the subsidiary is to supply automated
drinking-water machines.


* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
                                             
                                                       Total
                                            Total   Shareholders
                                           Assets      Equity
Company                        Ticker       ($MM)      ($MM)
------                         ------    ------------  ------

AUSTRALIA

Acma Engineering & Const.
   Group Limited                  ACX        21.39      -2.24
Allstate Explorations NL          ALX        12.65     -51.62
Austar United Communications Ltd. AUN       231.54     -52.58
Global Wine Ventures Limited      GWV        22.04      -0.84
Hutchison Telecommunications
   (Aust) Ltd.                    HTA      1696.65    -786.31
Indophil Resources NL             IRN        37.79     -69.96
Intellect Holdings Limited        IHG        23.98     -11.13
Namberry Limited                  NMB        15.12      -4.26
Orbital Corporation Limited       OEC        14.01      -4.86
RMG Limited                       RMG        22.33      -2.16
Stadium Australia Group           SAX       132.81     -45.03
Tooth & Company Limited           TTH        99.25     -74.39
Tourism, Hotels & Leisure Ltd.    TLC        15.76      -0.66

CHINA AND HONG KONG

Artel Solutions Group
  Holdings Limited                931        29.19     -18.65
Asia Telemedia Limited            376        10.89      -5.50
Anhui Feicai Vehicle Co. Ltd.     887       129.80      -7.00
Bestway International             718        25.00      -0.67
Chang Ling Group                  561        77.48     -76.83
Chengdu Book - A               600083        21.50      -3.07
China Liaoning International
  Cooperation Holdings Ltd.       638        25.79     -43.45
China Kejian Co. Ltd.              35        54.71    -179.23
Datasys Technology Holdings      8057        14.10      -2.07
Eforce Holdings Limited           943        10.31      -0.51
Everpride Biopharmaceutical
   Company Limited               8019        10.16      -2.16
Fujian Changyuan Investment
   Holdings Limited               592        31.36     -54.04
Gold-Face Holdings Limited        396       193.41     -28.41
Guangdong Meiya Group
   Company Ltd.                   529       107.16     -49.54  
Guangdong Sunrise Group
   Company Ltd-A                   30        35.98    -182.94
Guangdong Sunrise Group
   Co. Ltd-B                   200030        35.98    -182.94
Guangxi Wuzhou Zhongheng
   Group Co Ltd.                  557        62.19    -115.50
Hainan Dadonghai Tourism          613        19.74      -5.81
Hainan Dadongh-B               200613        19.74      -5.81
Hainan Overseas Chinese
   Investment Co. Ltd.         600759        32.70     -15.28
Hans Energy Company Limited       554        94.75     -10.76
Heilong Jiang Long Di Co. Ltd.    832       134.62     -61.22
Heilongjiang Sun & Field
   Science & Tech.                620        29.96     -49.18
Heilongjiang Black Dragon
   Co. Ltd.                    600187       121.30     -74.45
Hualing Holdings Limited          382       242.26     -28.15
Huda Technology & Education
   Development Co. Ltd.        600892        17.29      -0.19
Hunan Anplas Co., Ltd.            156        94.17     -65.04
Hunan GuoGuang Ceramic
   Co., Ltd.                   600286        87.44     -68.55
Innovo Leisure Recreation
   Holdings Ltd.                  703        13.68      -2.01
Jiangsu Chinese.com Co. Ltd.      805        15.86     -34.56
Jiangxi Paper Industry
   Co. Ltd                     600053        19.58     -12.80
Loulan Holdings Limited          8039        13.01      -1.04
Magnum International Holdings
   Limited                        305        10.35      -5.83
Mindong Electric Group Co., Ltd.  536        21.63      -1.50
New City (Beijing) Development
   Limited                        456       151.61     -19.15
New World Mobile Holdings Ltd     862       215.47    -126.57
Plus Holdings Ltd                1013        24.00      -3.15
Prosperity International
   Holdings (HK) Limited         8139        10.73      -2.45
Shandong Jintai Group Co. Ltd.  600385       19.58     -12.18
Shanghai Xingye Housing
   Company Ltd                 600603        14.90     -72.98
Shenyang Hejin Holding
   Company Ltd.                   633        83.18     -20.87
Shenz China Bi-A                   17        39.13    -224.64
Shenz China Bi-B               200017        39.13    -224.64
Shenzhen Dawncom Business Tech
   And Service Co., Ltd           863        79.84     -37.30
Shenzhen Shenxin Taifeng Group
   Co. Ltd.                        34        95.27     -44.65
Shenzen Techo Telecom Co., Ltd.   555        14.84      -6.25
Sichuan Changjiang Packaging
   Holding Co. Ltd.            600137        13.11     -72.76
Sichuan Topsoft Investment
   Company Limited                583       113.12    -148.61
SMI Publishing Group Ltd.        8010        10.48      -7.83
Songliao Automobile Co. Ltd.    600715       49.56      -3.76
Sun's Group Manufacturing
   Company Limited                988       103.02     -72.80
Taiyuan Tianlong Group Co.
   Ltd                         600234        13.47     -87.63
Theme International
   Holdings Limited               990        22.46      -0.77
UDL Holdings Limited              620        12.48      -7.15
Wealthmark International
   (Holdings) Limited              39        11.32      -2.43
Winowner Group Co. Ltd.        600681        38.03     -62.88
Xinjiang Hops Co. Ltd          600090       101.34    -135.99
Yantai Hualian Development
   Group Co. Ltd.              600766        59.99      -7.66
Yueyang Hengli Air-Cooling
   Equipment Inc.                 622        49.89     -17.71
Zarva Technology Co. Ltd.         688       101.76    -102.01

INDIA

PT Dharmala Intiland             DILD       197.91      -6.62

INDONESIA

Ades Waters Indonesia Tbk        ADES        21.35      -8.93
Bukaka Teknik Utama Tbk          BUKK        44.45    -107.00
Hotel Sahid Jaya                 SHID        71.05      -4.26
Jakarta Kyoei Ste                JKSW        44.72     -38.57
Mulialand Tbk                    MLND       160.45     -19.82
Multibreeder Adirama Indonesia   MBAI        64.54      -2.31
Pakuwon Jati Tbk                 PWON       188.41     -50.78
Panca Wiratama Sakti Tbk         PWSI        39.72     -18.82
PT Steady Safe                   SAFE        19.65      -2.43
PT Toba Pulp Lestrari Tbk        INRU       403.58    -198.86
PT Unitex Tbk                    UNTX        29.08      -5.87
PT Voksel Electric Tbk           VOKS        44.01     -11.74
PT Wicaksana Overseas
   International Tbk             WICO        84.36     -32.88
Sekar Bumi Tbk                   SKBM        23.07     -41.95
Steady Safe Tbk                  SAFE        19.65      -2.43
Suba Indah Tbk                   SUBA        85.17      -9.18
Surya Dumai Industri Tbk         SUDI       105.06     -30.49
Unitex Tbk                       UNTX        29.08      -5.87

JAPAN

Hanaten Co., Ltd.                9870       167.79      -1.63
Mamiya-OP Co., Ltd.              7991       152.37     -67.11
Montecarlo Co. Ltd.              7569        66.29      -3.05
Nihon Seimitsu Sokki Co., Ltd.   7771        23.82      -1.10
Sumiya Co., Ltd.                 9939        89.32     -11.57
Tenryu Lumber Co., Ltd.          7904       187.75     -44.48
Tokai Aluminum Foil Co., Ltd.    5756       106.49     -12.55
Yakinikuya Sakai Co., Ltd.       7622        79.44     -11.14

MALAYSIA

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

PHILIPPINES

APC Group Inc.                    APC        67.04    -163.14
Atlas Consolidated Mining and
   Development Corp.               AT        32.94     -35.77
Cyber Bay Corporation            CYBR        11.54     -58.06
East Asia Power Resources Corp.   PWR        92.55     -64.61
Fil-Estate Corporation             FC        33.30      -5.80
Filsyn Corporation                FYN        19.20      -8.83
Filsyn Corporation               FYNB        19.20      -8.83
Global Equities Inc.              GEI        24.18      -1.81
Gotesco Land, Inc.                 GO        17.34      -9.59
Gotesco Land, Inc.                GOB        17.34      -9.59
Prime Media Holdings Inc.        PRIM        11.12     -15.52
Prime Orion Philippines Inc.     POPI        98.36     -74.34
Swift Foods Inc.                  SFI        26.95      -8.23
Unioil Resources & Holdings       UNI        
   Company Inc.                              10.64      -9.86
United Paragon Mining Corp.       UPM        21.19     -21.52
Universal Rightfield Property
   Holdings Inc.                   UP        45.12     -13.48
Uniwide Holdings Inc.              UW        61.45     -30.31
Victorias Milling Company Inc.    VMC       127.83     -32.21
Vitarich Corporation             VITA        75.04      -4.27

SINGAPORE

ADV Systems Auto                  ASA        18.68      -6.50
China Aviation Oil (Singapore)
   Corporation                    CAO       211.96    -390.07
Compact Metal Industries Ltd.     CMI        54.36     -25.64
Falmac Limited                    FAL        10.90      -0.73
Gul Technologies Singapore
   Limited                        GUL       152.80     -27.74
Informatics Holdings Ltd         INFO        22.30      -9.14
L&M Group of Companies            LNM        56.91     -10.59
Liang Huat Aluminium Ltd.         LHA        19.30     -76.43
Lindeteves-Jacoberg Limited        LJ       225.52     -53.23
LKN-Primefield Limited            LKN       150.70     -12.72
Mae Engineering Ltd               MAE        11.42      -7.79
PDC Corporation Limited           PDC        11.63      -7.88
Pacific Century Regional          PAC      1381.26    -107.11
See Hup Seng Ltd.                 SHS        17.36      -0.09

SOUTH KOREA

C & C Enterprise Co. Ltd.       38420        28.05     -14.50
Cenicone Co. Ltd.               56060        36.82      -1.46
Everex Inc.                     47600        23.15      -5.10
EG Greentech Co.                55250       186.00      -1.50
EG Semicon Co. Ltd.             38720       166.70     -12.34
Inno Metal Inc.                 70080        28.56      -0.33
KP&L Company Limited             9810        15.03      -3.81
Radix Co. Ltd.                  16160        53.78     -17.69
Quality & Tech                  15260        32.33      -1.14
Shinil Industrial Co., Ltd.      2700        41.51      -3.44
Tong Yang Major                  1520      2332.81     -86.95

THAILAND

Bangkok Rubber PCL                BRC        70.19     -56.98
Bangkok Rubber PCL              BRC/F        70.19     -56.98
Central Paper Industry PCL      CPICO        40.41     -37.02
Central Paper Industry PCL    CPICO/F        40.41     -37.02
Circuit Electronic
   Industries PCL              CIRKIT        20.37     -64.80
Circuit Electronic
   Industries PCL            CIRKIT/F        20.37     -64.80
Daidomon Group Pcl              DAIDO        12.92      -8.51
Daidomon Group Pcl            DAIDO/F        12.92      -8.51
Datamat PCL                       DTM        17.55      -1.72
Datamat PCL                     DTM/F        17.55      -1.72
Diana Department Store Pcl      DIANA        12.71      -1.71
Diana Department Store Pcl    DIANA/F        12.71      -1.71
Everland Public Company Ltd      EVER        56.71    -311.47
Everland Public Company Ltd    EVER/F        39.12     -12.05
Hantex PCl                        HTX         7.51      -7.88
Hantex PCl                      HTX/F         7.51      -7.88
Kuang Pei San Food Products
   Public Co.                  POMPUI        12.51      -9.87
Sahamitr Pressure Container
   Public Co. Ltd.               SMPC        20.77     -28.13
Sri Thai Food & Beverage Public
   Company Ltd                    SRI        18.29     -43.37
Sri Thai Food -F                SRI/F        18.29     -43.37
Tanayong PCL                    TYONG       178.27    -734.30
Tanayong PCL -F               TYONG/F       178.27    -734.30
Thai-Denmark PCL                DMARK        21.37     -18.88
Thai-Denmark -F               DMARK/F        21.37     -18.88
Thai-Wah PCL                      TWC        91.56     -41.24
Thai-Wah PCL -F                 TWC/F        91.56     -41.24



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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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