TCRAP_Public/060719.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  

            Wednesday, July 19, 2006, Vol. 9, No. 142

                            Headlines

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

ALOJLA SERVICES: Members and Creditors to Hear Wind-Up Report
AUSTRALIAN TECHNOLOGY: To Declare Final Dividend on July 25
ENCHANTED HILL: Winds Up Business Operations
FORTESCUE METALS: Pilbara Financing Talks with Noble Fail
HAMILTON FOX: Members to Get Liquidator's Wind-Up Report

JAMES HARDIE: Court Denies Amaca Payment to Asbestos Victim
KEILOR PASTORAL: Appoints Joint and Several Liquidators
KING SOLOMON: Liquidator to Present Wind-Up Report on July 25
MAIDIT INVESTMENTS: Enters Voluntary Liquidation
MEEWEELLA PTY: To Declare Dividend on July 25

NALANG PROPERTIES: Names Official Liquidator
PALON PTY: To Declare First and Final Dividend on July 20
PLEASURABLE PASTIMES: Liquidator to Present Wind-Up Report
PORT DOUGLAS: Members Agree on Voluntary Liquidation
SHAZWAY PTY: Members Opt for Voluntary Liquidation

SOFTCELL ONLINE: Winds Up Business Operations
STREET REMLEY: Members Pass Wind-Up Resolution
TELSTRA CORPORATION: Wants 100% of Government's Broadband Funds
VALLEY PARK: Placed Under Voluntary Liquidation
VITAMINZONE.COM.AU: Liquidator to Present Wind-Up Report

WING HIE & CO: Names Russell Graeme Peake as Liquidator
WOMBAT NEWSAGENCY: Receivers and Managers Step Aside
XCOM CORPORATION: Supreme Court Appoints Provisional Liquidator
XPRESS FORMWORK: Members Decide to Wind Up Business
ZEDSOL PTY: Members Agree on Voluntary Liquidation

* AU Dollar Falls As Mid-East Conflict Affects Metal Industry
* NZ Labor Strikes Hit Nine-year High, Statistics NZ Says


C H I N A   &   H O N G  K O N G

ALEXANDER FORBES: Names Joint and Several Liquidators
AVANEX CORP: Posts US$10.2-Mln Net Loss in Third Quarter 2006
AVANEX CORP: Amends Second Quarter 2006 Net Loss Figure
CENTRILINE ASIA: Creditors' Proofs of Claim Due on July 31
CLASSICS ENTERPRISES: Faces Wind-Up Proceedings

CONSTRUCTION INDUSTRY: Members & Creditors to Get Wind-Up Report
DCG PRODUCTION: Liquidators Cease to Act for Company
DELWIN LIMITED: Liquidator to Present Wind-Up Report
ECHO KNITTERS: Members Final Meeting Slated for August 18
GOLDEN HARVEST: Court to Hear Wind-Up Bid on August 23

HODGSON LIMITED: Members Opt for Voluntary Wind-Up
HONOROLE ENTERPRISES: Names Ng Yuk Pui as Liquidator
HUA CHANG: Joint Liquidators Step Aside
INTERNATIONAL PAPER: Board OKs US$3-Bln Share Repurchase Program
JAMYET LIMITED: Joint Liquidators Step Aside

KOREA INDUSTRIAL: Annual Meetings Set on July 27
KWONG ON JUBILEE: Appoints Joint Liquidators
LOYAL BUSINESS: Creditors Opt for Voluntary Wind-Up
NEW AGE: Members Decide to Voluntary Wind-Up Operations
PEAK ART: Wind-Up Petition Hearing Fixed for August 16

RBC FUTURES: Final Members Meeting Set on August 22
SUNCO MANUFACTURING: Appoints Fung as Liquidator
WANG TAI ENTERPRISE: Court to Hear Wind-Up Bid on September 6
YING FAT: Official Liquidator Named


I N D I A

GENERAL MOTORS: Reviewing Nissan-Renault Deal; Toyota Might Bid
HINDUSTAN PHOTO: Revival Proposal Gets Government's Attention
MYSORE CEMENTS: HeidelbergCement Keen on Taking Majority Stake
* Oil Marketing Firms Brace for INR2,900-Crore Losses


I N D O N E S I A

INDOFOOD SUKSES: Plans to Merge Five Palm Oil Units
INDOFOOD SUKSES: S&P Withdraws 'B' Corporate Credit Rating
TELEKOMUNIKASI INDONESIA: Current Deficit Up 30% to Hit US$326MM


J A P A N

JAPAN AIRLINES: Adopts New Support Program to Enhance Services
MITSUBISHI MOTORS: JCR Raises Senior Debt Rating to BB-


K O R E A

ASAT HOLDINGS: April 30 Stockholders' Deficit Tops AU$53 Million
CENICONE CO: Reports KRW6.92-Billion Net Loss for 2005
HYUNDAI MOTOR: Chairman Chung Returns to Work


M A L A Y S I A

AKTIF LIFESTYLE: Executes Restructuring Deal with Strandcom
ANTAH HOLDINGS: Complies with Public Spread Requirement
AYER HITAM: Unit Inks MYR11-Million SPA with Propel Synergy
COMSA FARMS: Unveils 82.43% Public Shareholding Level
CONSOLIDATED FARMS: Public Shareholding Spread Pegged at 47.10%

FOREMOST HOLDINGS: Public Shareholders Hold 26.55% Shares
KIG GLASS: Public Spread Meets Listing Requirement
MALAYSIA AIRLINES: Travel Blackboard Sees Bright Outlook
MERCES HOLDINGS: Faces Wind-Up Petition by Southern Bank
PAXELENT CORPORATION: Public Shareholding Stands at 80.38%

PROTON HOLDINGS: Public Shareholding Spread Meets Requirement


P H I L I P P I N E S

JG SUMMIT: Posts PHP3.88-Billion Net Income in 1st Quarter 2006
NATIONAL POWER: ERC OKS Rate Adjustments
PACIFIC PLANS: SEC Looks to Approve License to Sell Securities
PHILIPPINE LONG DISTANCE: Posts PHP9-Bil 1st Quarter Net Income
PHILIPPINE LONG DISTANCE: Subsidiary Buys SPi for US$159 Million

PHILIPPINE LONG DISTANCE: Sees Better Earnings in 2nd Quarter
PHILIPPINE LONG DISTANCE: CEO Unveils JV Plans
SAN MIGUEL: Operating Income Up 49% in 1st Quarter 2006
SAN MIGUEL: May Sell 49% of National Foods Unit
SAN MIGUEL: In Talks to Sell Bottling Stakes to Coke


S I N G A P O R E

AUDRICH INTERNATIONAL: Intends to Pay Dividend to Creditors
COMRICH PETROLEUM: Undergoes Wind-Up Proceedings
DIGILAND INTERNATIONAL: Issues New Rights Shares and Warrants
KOREA LEASING: Creditors and Contributories to Hold Meetings
MAE ENGINEERING: Inks Exclusive Agreement with Lereno


T H A I L A N D

* NESDB Cuts '07 Investment Budget for State-Owned Businesses

* Upcoming Meetings, Conferences and Seminars

     - - - - - - - -

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

ALOJLA SERVICES: Members and Creditors to Hear Wind-Up Report
-------------------------------------------------------------
Members and creditors of Alojla Services Pty Limited will hold a
meeting on July 24, 2006, at 10:00 a.m. for them to receive
Liquidator Murray Godfrey's final account showing how the
Company was wound up and how its property was disposed of.

The Liquidator can be reached at:

         Murray Godfrey
         RMG Partners
         Level 12, 88 Pitt Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9231 0889


AUSTRALIAN TECHNOLOGY: To Declare Final Dividend on July 25
-----------------------------------------------------------
Australian Technology Group Limited will declare its final
dividend on July 25, 2006.

Creditors who were not able to prove their claims by
July 11, 2006, will be excluded from sharing in any distribution
the Company will make.

The liquidator can be reached at:

         Frank Lo Pilato
         c/o RSM Bird Cameron Partners
         Chartered Accountants
         GPO Box 200, Canberra
         Australian Capital Territory 2601
         Australia
         Telephone:(02) 6247 5988


ENCHANTED HILL: Winds Up Business Operations
--------------------------------------------
At a general meeting of the members of Enchanted Hill Pty
Limited on June 14, 2006, it was agreed that a voluntary wind-up
of the Company's operations is appropriate and necessary.

In this regard, Raymond Allan Dawson was appointed as
liquidator.

The Company also started distributing its assets on
July 11, 2006, to the exclusion of creditors who were not able
to prove their claims.

The Liquidator can be reached at:

         Raymond Allan Dawson
         R. A. Dawson & Associates
         Chartered Accountants
         GPO Box 443, Canberra
         Australian Capital Territory 2601
         Australia
         Telephone:(02) 6239 6022


FORTESCUE METALS: Pilbara Financing Talks with Noble Fail
---------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on July 7,
2006, that Noble Group Limited and Fortescue Metals Group
Limited were in talks for an off-take and equity deal that would
secure financing for Fortescue's AU$2-billion Pilbara iron ore
project.

According to a subsequent TCR-AP report, Fortescue confirmed the
negotiations and disclosed that Noble Group has made an offer
for an equity placement of 10% of the fully diluted shares in
the Company.  The pricing of the offer was between AU$359.8
million and AU$399.8 million.

However, a follow-up report from The Age reveals that Noble has
terminated the negotiations.

Citing a source close to Fortescue, The Australian relates that
the sticking point may have been a demand by the Hong Kong-based
Noble Group for a 51% stake in FMG's marketing arm.

The TCR-AP reported on July 11, 2006, that the deal with Noble
Group would see the establishment of a joint venture marketing
company, to be owned 51% by Noble Group and 49% by Fortescue,
which would sell Fortescue's iron ore into China.

Noble Group says that it could not agree on the terms of an iron
ore marketing agreement, The Age notes.

According to The Australian, Noble Chief Executive Officer
Richard Elman said that the parties had failed to reach
agreement on "certain elements of various contracts."

The Australian says that Fortescue boss Andrew Forrest was
unlikely to surrender control of any significant part of the
project, which Fortescue hoped would be shipping iron ore by
2008.  There were many alternatives to Noble, the paper cites
Mr. Forrest as saying.

The Age states that Noble Group has left its door open for a
future marketing deal, with Mr. Elman saying, "If at some point
in the future we can reach an understanding with regard to
marketing their iron ore to China, we would be extremely
pleased."

Fortescue shares were halted ahead of Noble's statement, but the
Company has not released any information to the Australian Stock
Exchange as of July 17, 2006, The Age notes.

              Fortescue Expects Alternative Offer

The Age relates that Fortescue operations director Graeme Rowley
was confident that an alternative equity deal would be struck
soon.  

Mr. Rowley disclosed that they are continuing discussions with a
number of people until "a satisfactory financial settlement" is
reached.  However, he did not reveal the prospective partners.

According to The Age, once a cornerstone equity partner is
secured, Fortescue is expected to launch a US$1 billion to
US$1.5 billion "jumbo" bond issue in the United States to
provide the remaining funds needed to develop the Pilbara
venture.

Russian steel baron Alexey Mordashov and Japan's Mitsubishi
Corporation are now Fortescue's most likely saviors, as the
Company races to meet its 2008 production target, The Age says.

The Age cites industry sources as saying that although
Mitsubishi had superior financial clout, its conservative
approach and links to Japanese steel makers made Mr. Mordashov's
Severstal Steel a more likely partner.

The Age notes that Mr. Mordashov is one of the world's richest
man, adding that he is already eyeing a US$15 billion float of
his 89%-owned steel group to give Severstal Steel a global
presence.

                      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.


HAMILTON FOX: Members to Get Liquidator's Wind-Up Report
--------------------------------------------------------
Members of Hamilton Fox Pty Limited will meet on July 26, 2006,
at 10:00 a.m.

During the meeting, Liquidator Andrew H. J. Wily will report on
the Company's wind-up and property disposal exercises.

The Liquidator can be reached at:

         Andrew H. J. Wily
         Armstrong Wily & Co.
         Chartered Accountants
         Level 5, 75 Castlereagh Street
         Sydney, New South Wales 2000
         Australia


JAMES HARDIE: Court Denies Amaca Payment to Asbestos Victim
-----------------------------------------------------------
The Court of Appeal in Australia overturned a NZ$320,000 payout
from Amaca, a subsidiary of James Hardie Industries Ltd, to
former Kiwi Bernard Frost, Stuff.co.nz reports, citing Sunday
Star Times.

According to the report, Mr. Frost was exposed to asbestos
fibers while installing insulation products in Cambridge in
1963-1966 but was diagnosed with asbestos-related lung diseases
in 2000, four years after he moved to Queensland.

Mr. Frost's lawyer, Graeme Little, will seek special leave to
appeal the decision with the High Court in Australia, Stuff.co
says.

Mr. Little argued that "[the court's decision] means James
Hardie could dump deadly blue asbestos in New Zealand tomorrow
without any ramifications and use you as guinea pigs because of
your legislation."

New Zealand's Accident Compensation law clearly stated that New
Zealanders could sue overseas companies in which products were
manufactured, Mr. Little pointed out.

Stuff.co recounts that the Court's decision has forced the widow
of Aucklander Vince Honey, who died of asbestos-related cancer
five years ago, to drop her NZ$1.5 million lawsuit against James
Hardie.

Ms. Honey's lawyer, Bernard McHardy, says both cases highlighted
fundamental problems with New Zealand's no-fault compensation
scheme.

According to the Sunday Star Times, Mr. McHardy asserts that in
Mr. Frost's case, the Court decided that New Zealand law
prevailed because the asbestos was inhaled in the Country
despite being manufactured in Australia.

"Our ACC laws prevent New Zealanders suing for negligence," the
Sunday Star Times cites Mr. McHardy, as saying.

The Sunday Star Times relates that Amaca admitted in Mr. Frost's
case that it breached its duty of care through continued
asbestos use in James Hardie products and failure to replace it
with a non-asbestos material despite the knowledge of its danger
to people's health.

                      Other Court Appeals

Stuff.co relates that John Miller, a lawyer, has taken three
cases to the Court of Appeal to force ACC to pay lump-sum
compensation to asbestos victims.

About 30 people have gained NZ$100,000 payouts before ACC
stopped giving compensation when the high court overturned an
earlier decision allowing payments, Stuff.co notes.

                      About James Hardie

James Hardie Industries Limited -- http://www.jameshardie.com/
-- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives.  On July 2, 1998, the then
public company announced a plan of reorganization and capital
restructuring.  James Hardie N.V. was incorporated in August
1998 as an intermediary holding company, with all of its common
stock owned by indirect subsidiaries of JHIL.  Effective as of
November 1998, JHIL contributed its fibre cement businesses, its
United States gypsum wallboard business, its Australian and New
Zealand building systems businesses and its Australian windows
business to JHNV and its subsidiaries.

On July 24, 2001, JHIL announced a further plan of
reorganization and capital restructuring, which reorganization
was completed on October 19, 2001.  In connection with the 2001
Reorganization, James Hardie Industries N.V., formerly RCI
Netherlands Holdings B.V., issued common shares represented by
CHESS Units of Foreign Securities on a one for one basis to
existing JHIL shareholders in exchange for their shares such
that JHINV became the new ultimate holding company for JHIL and
JHNV.  Following the 2001 Reorganization, JHINV controls the
same assets and liabilities as JHIL controlled immediately prior
to the 2001 Reorganization.

The Company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL.  In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims.  The Foundation has
warned that it could run out of money within five years.  The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund.  James Hardie was later accused of topping
up the dwindling asbestos fund it established.  By 2004, James
Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty
Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around
150 defendants in asbestos litigation, and based on the
Foundation's own figures, they account for US$1,000,000,000 of
the predicted US$6,000,000,000 future asbestos liabilities in
Australia.  Although James Hardie stopped making asbestos
products in 1987, the average 35-year latency of mesothelioma,
an asbestos-related disease, means asbestos compensation funds
will be needed until mid-century.  In a 2005 report by a
company-hired actuary from KPMG, it was predicted that 4,915
Australians would contract mesothelioma from exposure to Hardie
products in the coming decades.  When less serious forms of
asbestos-related disease are included, James Hardie should
expect to compensate 8,725 victims.

On December 1, 2005, the Company announced that the NSW
Government and a wholly owned Australian subsidiary of the
Company -- LGTDD Pty Ltd -- had entered into a conditional
agreement to provide long-term funding to a special purpose fund
that will provide compensation for Australian asbestos-related
personal injury claims against certain former James Hardie
asbestos companies.  The amount of the asbestos provision of
AU$1 billion, at March 31, 2006, is the Company's best estimate
of the probable outcome, which estimate includes an actuarial
calculation prepared by KPMG Actuaries Pty Ltd of the projected
future cash outflows, undiscounted and uninflated, and the
anticipated tax deduction arising from Australian legislation
which came into force on April 6, 2006.


KEILOR PASTORAL: Appoints Joint and Several Liquidators
-------------------------------------------------------
At a general meeting of the members of Keilor Pastoral Co Pty
Limited held on June 19, 2006, Marco Carlei and Daren McDonald
were appointed as liquidators for the Company.

The Liquidators can be reached at:

         Marco Carlei
         Daren McDonald
         Moore Stephens Melbourne
         Chartered Accountant
         14th Floor, 607 Bourke Street
         Melbourne, Victoria 3000
         Australia


KING SOLOMON: Liquidator to Present Wind-Up Report on July 25
-------------------------------------------------------------
The members and creditors of King Solomon Mines Limited will
hold a final meeting on July 25, 2006, at 2:30 a.m., to get an
account of the manner of the Company's wind-up and property
disposal from Liquidator Martin Jones.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company declared its first and final dividend on January 23,
2006.

The Liquidator can be reached at:

         Martin Jones
         Ferrier Hodgson Chartered Accountants
         Level 26, 108 St George's Terrace
         Perth, Western Australia 6000
         Australia


MAIDIT INVESTMENTS: Enters Voluntary Liquidation
------------------------------------------------
At a general meeting on June 9, 2006, the members of Maidit
Investments Pty Limited resolved to shut down the Company's
business operations and distribute the proceeds of its assets
disposal.

Subsequently, James L. Wilson was appointed as liquidator.

The Liquidator can be reached at:

         James L. Wilson
         10 Rosslyn Street
         Mile End South 5031
         Australia


MEEWEELLA PTY: To Declare Dividend on July 25
---------------------------------------------
Meeweella Pty Limited notifies parties-in-interest of its
intention to declare its first and final divided for creditors
on July 25, 2006.

Creditors whose claims were not admitted by July 6, 2006, will
be excluded from the dividend distribution.

The Liquidator can be reached at:

         Barry Keith Taylor
         B. K. Taylor & Co
         8/608 St Kilda Road
         Melbourne, Victoria 3004
         Australia


NALANG PROPERTIES: Names Official Liquidator
--------------------------------------------
The members of Nalang Properties Pty Limited held a meeting on
June 16, 2006, and agreed to shut down the Company's business
operations.

Robert Colin Parker was subsequently appointed as liquidator.

The Liquidator can be reached at:

         Robert Colin Parker
         Freer Parker & Associates
         40 Sturt Street
         Adelaide, South Australia
         Australia


PALON PTY: To Declare First and Final Dividend on July 20
---------------------------------------------------------


Liquidator Robert Eugene Murphy will declare the first and final
dividend for creditors of Palon Pty Limited on July 20, 2006.

Creditors whose debts or claims were not admitted by
June 21, 2006, will be excluded from the dividend distribution.

The Liquidator can be reached at:

         Robert Eugene Murphy
         Level 9, 46 Edward Street
         Brisbane, Queensland 4000
         Australia


PLEASURABLE PASTIMES: Liquidator to Present Wind-Up Report
----------------------------------------------------------
A joint meeting of the members and creditors of Pleasurable
Pastimes Pty Limited will be held on July 20, 2006, at
11:00 a.m.

During the meeting, Liquidators Paul Cook and Terry O'Connor
will present accounts showing how the Company was wound up and
how its property was disposed of.

The Liquidators can be reached at:

         Paul Cook
         Terry O'Connor
         Paul Cook & Associates
         105 Macquarie Street
         Hobart, Tasmania 7000
         Australia
         Telephone:(03) 6223 2555
         Facsimile:(03) 6223 2556
         e-mail: info@pjc.com.au


PORT DOUGLAS: Members Agree on Voluntary Liquidation
----------------------------------------------------
At a general meeting on June 28, 2006, members of Port Douglas
Fishermen's Enterprises Limited agreed that the Company must
voluntarily commence a wind-up of its operations.

Tony Jonsson was consequently appointed as liquidator.

The Liquidator can be reached at:

         Tony Jonsson
         c/o KPMG
         Level 13, Cairns Corporate Tower
         15 Lake Street
         Cairns, Queensland 4870
         Australia


SHAZWAY PTY: Members Opt for Voluntary Liquidation
--------------------------------------------------
On June 13, 2006, members of Shazway Pty Limited
Convened at a general meeting and decided to liquidate the
Company's business operations.

Nicholas David Cooper and Andre Janis Strazdins were appointed
as liquidators.

The Liquidators can be reached at:

         Nicholas D. Cooper
         Andre Janis Strazdins
         SimsPartners
         Level 4, 12 Pirie Street
         Adelaide, South Australia 5000
         Australia


SOFTCELL ONLINE: Winds Up Business Operations
---------------------------------------------
After an extraordinary general meeting on June 15, 2006, the
members of Softcell Online Systems Pty Limited decided to
voluntarily wind up the Company's operations.

Richard Herbert was appointed as liquidator at a creditors'
meeting held that same day.

The Liquidator can be reached at:

         Richard Herbert Judson
         Judson & Co, Chartered Accountants
         Level 1, 10 Park Road
         Cheltenham, Victoria 3192
         Australia
         Telephone: 9585 4155


STREET REMLEY: Members Pass Wind-Up Resolution
----------------------------------------------
On June 9, 2006, members of Street Remley Studios Pty Ltd passed
a special resolution to voluntarily wind up the Company's
operations and distribute the its assets disposal.

The liquidator can be reached at:

         C. S. Reeves
         200 East Terrace
         Adelaide, South Australia 5000
         Australia


TELSTRA CORPORATION: Wants 100% of Government's Broadband Funds
---------------------------------------------------------------
Telstra Corporation will stake its claim for as much as 100% of
the AU$1.1 billion allotted by the Government to fund high-speed
internet networks, as the telecom industry gears up for a
AU$5-billion broadband splurge, Michael Sainsbury of The
Australian says.

According to the report, Telstra will ask the Government to
scrap a cap that limits the amount the Company will be receiving
to no more than 60% of the government broadband funds, and
outline its proposals for how the funds should be allocated.

Telstra's network planning chief, Lawrence Paratz, contends that
"[s]uch a cap may restrict the size and scope of what can be
achieved and reduce the effectiveness of the overall program."

Mr. Paratz asserts that Telstra has strong views on the most
effective way for the funds to be used with benefits to
customers and the national interest, not as commercial free
kicks to telco and telco wannabes.

The Australian recounts that earlier this year, Telstra was
undecided about whether it would seek a slice of the new cash
pool after asking the Government for more than AU$2 billion in
August 2005 to help build a national broadband network.

Telstra also proposed that there should be no new license
conditions attached to the funds and that these should be used
on proven technology, The Australian relates.

The paper cites a spokesperson for Communications Minister Helen
Coonan as saying that whether a cap will apply to the second
phase of Broadband Connect is under consideration.

The Australian further relates that last week, the Government
received a raft of submissions for its AU$1.1 billion Broadband
Connect Fund designed to ensure that rural and regional
Australia did not miss out on vital telecommunications
infrastructure.

According to The Australian, Senator Coonan says that there is
strong support for a more coordinated and strategic approach to
communications infrastructure investment, and that it must be
scalable and foster competition in regional areas.

"That is why the Government is considering ambitious ways to use
a large proportion of the Broadband Connect money to fund
larger-scale infrastructure projects in [non]-commercial areas,"
Senator Coonan explains.

                        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.


VALLEY PARK: Placed Under Voluntary Liquidation
-----------------------------------------------
At a general meeting of the members of Valley Park Investments
Pty Limited on June 9, 2006, it was agreed that a voluntary
wind-up of the Company is appropriate and necessary.

In this regard, James L. Wilson was appointed as liquidator.

The Liquidator can be reached at:

         James L. Wilson
         10 Rosslyn Street
         Mile End South 5031
         Australia


VITAMINZONE.COM.AU: Liquidator to Present Wind-Up Report
--------------------------------------------------------
A final meeting of the members of Vitaminzone.com.au Pty Limited
will be held on July 31, 2006, at 10:00 a.m.

During the meeting, members will receive accounts of the
Company's wind-up and property disposal exercises.

The liquidator can be reached at:

         A. D. Cran
         c/o Inpact McDonald Carter
         Level 6, 31 Queen Street
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 8613 8888
         Facsimile:(03) 8613 8800


WING HIE & CO: Names Russell Graeme Peake as Liquidator
-------------------------------------------------------
The members of Wing Hie & Co. Pty. Limited met on
June 16, 2006, and agreed to:

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

  -- appoint Russell Graeme Peake as liquidator.

The Liquidator can be reached at:

         Russell Peake
         Jenkins Peake & Co.
         Chartered Accountants
         PO Box 1570
         Geelong 3220
         Australia
         Telephone:(03) 5223 1000
         Facsimile:(03) 5221 4938


WOMBAT NEWSAGENCY: Receivers and Managers Step Aside
----------------------------------------------------
On June 15, 2006, Ian Menzies Carson and Craig David Crosbie
cease to act as receivers and managers of the entire property of
Wombat Newsagency Pty Ltd.


XCOM CORPORATION: Supreme Court Appoints Provisional Liquidator
--------------------------------------------------------------
The Supreme Court of New South Wales on June 13, 2006, appointed
Stephen James Parbery as provisional liquidator for Xcom
Corporation Pty Limited.

The Liquidator can be reached at:

         Stephen James Parbery
         c/o PPB Chartered Accountants
         15th Floor, 25 Bligh Street
         Sydney, New South Wales 2000
         Australia


XPRESS FORMWORK: Members Decide to Wind Up Business
---------------------------------------------------
After an extraordinary general meeting on June 27, 2006, the
members of Xpress Formwork Pty Limited decided to voluntarily
wind up the Company's operations.

The Liquidator can be reached at:

         Michael G. Jones
         c/o Jones Condon
         Chartered Accountants
         Telephone: (02) 9251 5222


ZEDSOL PTY: Members Agree on Voluntary Liquidation
--------------------------------------------------
The members of Zedsol Pty Limited held a meeting on
June 13, 2006, and passed a special resolution to shut down the
Company's business operations.

The members also resolved to appoint Nicholas David Cooper and
Andre Janis Strazdins as liquidators.

The Liquidators can be reached at:

         Nicholas David Cooper
         Andre Janis Strazdins
         SimsPartners
         Level 4, 12 Pirie Street
         Adelaide, South Australia 5000
         Australia


* AU Dollar Falls As Mid-East Conflict Affects Metal Industry
-------------------------------------------------------------
The Australian dollar fell for a fourth day on concern that
violence in the Middle East will slow global economic growth and
curb demand for the nation's raw materials exports like copper,
nickel, and zinc, the Bloomberg News relates.

Thus, the currency is typically influenced by metals prices
because raw materials account for about 60% of the nation's
exports and contribute more than 10% to the economy, Bloomberg
notes.

The currency also weakened as the conflict prompted investors to
seek safety by buying United States financial assets,
Bloomberg's Chris Young says.

"With developments in the Middle East remaining a focus, the
risk is we do start to see risk-aversion-type themes weigh on
the Australian dollar," the report cites John Horner, a currency
strategist at Deutsche Bank AG in Sydney, as saying.

The currency will drop to 71 cents by year-end, Bloomberg notes
a forecast by Deutsche Bank, the biggest trader in the AU$1.9
trillion-a-day currency market, in an annual survey by Euromoney
magazine.

According to Bloomberg, the Australian government bonds dropped,
noting that it will sell AU$400 million of 5.25% March 2019
bonds, increasing the total amount issued in the maturity to
AU$3 billion.  The bonds yield 5.91%.


* NZ Labor Strikes Hit Nine-year High, Statistics NZ Says
---------------------------------------------------------
New Zealand had the most labor strikes in nine years in the 12
months ended March 31, 2006, as accelerating inflation and a
near record-low jobless rate prompt workers to seek higher
wages, Tracy Withers of the Bloomberg News reports.

About 50 of the stoppages arose from wage disputes, Ms. Withers
says, citing a report from Statistics New Zealand.

According to Bloomberg, the Council of Trade Unions contends
that companies should be paying higher wages as inflation
accelerates and the low jobless rate creates labor shortages.

Bloomberg relates that in a July 11 statement, the Council's
president, Ross Wilson, asserted that "[i]f we are to solve New
Zealand's problem of low wages then regular increases above the
level of inflation are needed."

As reported in the Troubled Company Reporter - Asia Pacific on
July 18, 2006, Statistics New Zealand said the Country annual
inflation rate rose from 3.3% to an unexpectedly high 4% in the
June quarter, as measured by the Consumer Price Index.

The first-quarter jobless rate rose to 3.9% from a record-low
3.6% in the fourth quarter, Bloomberg notes.


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

ALEXANDER FORBES: Names Joint and Several Liquidators
-----------------------------------------------------
The members of Alexander Forbes Risk & Reinsurance Solutions Ltd
resolved on July 6, 2006, to voluntary wind up the Company's
operations and appoint Chung Miu Yin and Chan Mi Har as joint
and several liquidators.

The Joint Liquidators can be reached at:

         Chan Mi Har
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


AVANEX CORP: Posts US$10.2-Mln Net Loss in Third Quarter 2006
-------------------------------------------------------------
Avanex Corporation generated net revenue of US$40.1 million in
its third fiscal quarter ended March 31, 2006, compared with
US$36.1 million in the prior quarter and US$40.3 million in the
third fiscal quarter of the prior year.

The Company reported a net loss of US$10.2 million in the third
fiscal quarter of 2006, a 45.2% improvement over the net loss of
US$18.5 million in the prior quarter, and a 46.2% improvement
over the net loss of US$18.9 million in the third fiscal quarter
of the prior year.

"I am pleased with the progress the company has made," Jo Major,
president and chief executive officer of Avanex said.  

"We achieved a 45% reduction in net loss from the second fiscal
quarter of this year, and we achieved a similar reduction in net
loss from the third fiscal quarter of last year.  We continued
to meet our restructuring objectives and reached important
milestones, including becoming RoHS compliant and returning to
revenue growth.  As we complete the transition of our
manufacturing operations, we are able to focus more on
generating revenue, increasing our market share, and launching
industry leading new products.

"In addition to the steady progress that we are showing on our
income statement, our balance sheet also substantially improved.  
During the third fiscal quarter, US$21.4 million was converted
from debt into equity and we raised net proceeds of US$44.7
million in an equity stock offering," said Mr. Major.

                Fiscal Third Quarter Highlights

    -- Raised net proceeds of US$44.7 million in an equity stock
       offering and ended the quarter with US$82.1 million in
       cash and short-term investments;

    -- US$21.4 million of long term convertible notes converted
       into equity;

    -- A 45.2% reduction in net loss over the second fiscal
       quarter of 2006;

    -- Launched eight new products including a Xenpak Compatible
       Hot-Pluggable EDFA and an industry leading Optical
       Performance Monitoring solution;

    -- Met RoHS compliance requirements across all product
       lines;

    -- Completed planned manufacturing transfers from Italy and
       France on schedule.

             Fourth Quarter 2006 Fiscal Year Outlook

Revenue is expected to be between US$42 million and $45 million
in the fourth fiscal quarter of 2006.  

Gross margin for the fourth fiscal quarter of 2006 is expected
to increase over the third fiscal quarter of 2006.

                        Going Concern Doubt

Deloitte & Touche LLP expressed substantial doubt about Avanex
Corporation's (Nasdaq: AVNX) ability to continue as a going
concern after it audited the Company's financial statements for
the fiscal year ended June 30, 2005.  

The auditing firm pointed to the Company's recurring losses and
negative cash flows from operations.

                           About Avanex

Avanex Corporation (NASDAQ: AVNX) -- http://www.avanex.com/--
provides Intelligent Photonic Solutions (TM) to meet the needs
of fiber optic communications networks for greater capacity,
longer distance transmissions, improved connectivity, higher
speeds and lower costs.  These solutions enable or enhance
optical wavelength multiplexing, dispersion compensation,
switching and routing, transmission, amplification, and include
network-managed subsystems.  

Avanex was incorporated in 1997 and is headquartered in Fremont,
Calif.  Avanex also maintains facilities in Elmira, N.Y.;
Shanghai, China; Nozay, France; San Donato, Italy; and Bangkok,
Thailand.


AVANEX CORP: Amends Second Quarter 2006 Net Loss Figure
-------------------------------------------------------
Avanex Corp. disclosed that in connection with the filing of its
quarterly report on Feb. 14, 2006, to the United States
Securities and Exchange Commission, the net loss for its second
fiscal quarter has been revised.

The Company finalized the accounting treatment for the
extinguishments of the capital leases at the company's French
subsidiary.  In the previously announced results, the one-time
non-cash gain of US$4.5 million was recognized as other income
in the company's second quarter financial statements.  The final
accounting treatment will spread this gain over the 12-year term
of the remaining lease.

The Company earlier reported a net loss of US$13.4 million.  The
revised net loss included in the Form 10-Q for the second fiscal
quarter is US$18.5 million.  For the second fiscal quarter,
excluding certain items, the company previously reported a non-
GAAP net loss of US$9.3 million.  The revised non-GAAP net loss
for the second fiscal quarter is US$9.1 million.

                      Going Concern Doubt

Deloitte & Touche LLP expressed substantial doubt about Avanex
Corporation's (Nasdaq: AVNX) ability to continue as a going
concern after it audited the Company's financial statements for
the fiscal year ended June 30, 2005.

The auditing firm pointed to the Company's recurring losses and
negative cash flows from operations.

                          About Avanex

Avanex Corp. -- http://www.avanex.com/-- provides Intelligent  
Photonic Solutions(TM) to meet the needs of fiber optic
communications networks for greater capacity, longer distance
transmissions, improved connectivity, higher speeds and lower
costs.  These solutions enable or enhance optical wavelength
multiplexing, dispersion compensation, switching and routing,
transmission, amplification, and include network-managed
subsystems.  

Avanex was incorporated in 1997 and is headquartered in Fremont,
Calif.  Avanex also maintains facilities in Elmira, N.Y.;
Shanghai, China; Nozay, France; San Donato, Italy; and Bangkok,
Thailand.


CENTRILINE ASIA: Creditors' Proofs of Claim Due on July 31
----------------------------------------------------------
Liquidators Stephen Briscoe and David John Kennedy requires the
creditors of Centriline Asia Ltd to submit their proofs of claim
by July 31, 2006.

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

The Joint Liquidators can be reached at:

         David John Kennedy
         5th Floor, Allied Kajima Bldg
         138 Gloucester Road
         Wanchai, Hong Kong


CLASSICS ENTERPRISES: Faces Wind-Up Proceedings
-----------------------------------------------
A petition to wind up Classics Enterprises (Holdings) Ltd will
be heard before the High Court of Hong Kong on July 26, 2006, at
9:30 in the morning.

BII Finance Company Ltd filed the petition with the Court on
April 28, 2006.

The solicitors for the petitioner can be reached at:

         To, Lam & Co
         Units 1503B-1504, 15th Floor
         Wing On House, 71 Des Voeux Road
         Central, Hong Kong


CONSTRUCTION INDUSTRY: Members & Creditors to Get Wind-Up Report
----------------------------------------------------------------
The members and creditors of Construction Industry Training
Authority - Construction Management Graduates Alumni Association
Ltd will convene on August 18, 2006, at 11:00 a.m. and 11:30
a.m. respectively.

During the meetings, Liquidator Ho Man Kit will report on the
Company's wind-up and property disposal exercises.

The meetings will be held at Unit 511, 5th Floor, Tower 1,
Silvercord, No 30 Canton Road, Tsimshatsui, Kowloon, Hong
Kong.


DCG PRODUCTION: Liquidators Cease to Act for Company
----------------------------------------------------
Kenny King Ching Tam and Shum Lap Chi had ceased to act as
liquidators of DCG Production Ltd on July 5, 2006.


DELWIN LIMITED: Liquidator to Present Wind-Up Report
----------------------------------------------------
Members of Delsim Limited will meet on August 25, 2006, at 11:30
a.m. at 17th Floor, Shun Kwong Commercial Bldg, No 8 Des Voeux
Road West, Sheung Wan, Hong Kong.

During the meeting, Liquidator Liu Wing Ting, Stephen will
present accounts of the Company's wind-up proceedings.


ECHO KNITTERS: Members Final Meeting Slated for August 18
---------------------------------------------------------
Members of Echo Knitters Ltd will convene for their final
meeting at Unit C, 7th Floor, Eton Bldg, 288 Des Voeux Road,
Central, Hong Kong on August 18, 2006, at 11:00 a.m.

During the meeting, Liquidator Wong Ming Lai will present
accounts of the Company's wind up and property disposal
exercises.


GOLDEN HARVEST: Court to Hear Wind-Up Bid on August 23
------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Golden Harvest Film Production Ltd on August 23, 2006, at 9:30
in the morning.

United Harvest Asia Ltd filed the petition with the Court on
June 23, 2006.

The solicitors for the petitioner can be reached at:

         Or, Ng & Chan
         15/F., The Bank of East Asia Building
         10 Des Vouex Road Central
         Hong Kong


HODGSON LIMITED: Members Opt for Voluntary Wind-Up
--------------------------------------------------
Members of Hodgson Limited on June 30, 2006, resolved to
voluntary wind up the Company's operations and appoint Natalia
KM Seng and Susan YH Lo as joint and several liquidators.

The Joint Liquidators can be reached at:

         Natalia KM Seng
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


HONOROLE ENTERPRISES: Names Ng Yuk Pui as Liquidator
----------------------------------------------------
Ng Yuk Pui, Kelly was named liquidator of Honorole Enterprises
Ltd on July 3, 2006.

Subsequently, the Liquidator requires the Company's to submit
their proofs of claims by August 14, 2006, for them to share in
any distribution the Company will make.

The Liquidator can be reached at:

         Ng Yuk Pui
         Flat C, 1st Floor
         Winner House, 27-37
         D' Aguilar Street
         Central, Hong Kong


HUA CHANG: Joint Liquidators Step Aside
---------------------------------------
On May 30, 2006, Kenny King Ching Tam and Shum Lap Chi ceased to
act as joint liquidators of Hua Chang Electronics Co Ltd.


INTERNATIONAL PAPER: Board OKs US$3-Bln Share Repurchase Program
----------------------------------------------------------------
International Paper Company's board of directors has authorized
a share repurchase program to acquire up to US$3 billion of the
Company's stock.

The Company said that the US$3 billion share repurchase amounts
to approximately 20% of its outstanding shares.  It plans to
commence the program in the third quarter of 2006 and it intends
to complete the program before the end of 2007.

                  Balance Sheet Strengthening

The Company plans to spend approximately US$6 billion to US$7
billion to strengthen its balance sheet, through debt repayment
and voluntary cash contributions to its United States pension
fund in the range of US$500 million to US$1 billion.  As of the
end of the first quarter of 2006, the Company said it had
reduced its debt by approximately US$600 million to
approximately US$11.5 billion and further expects to reduce its
annual interest expense by about US$350 million.

The Company is exploring to sell its Tres Lagoas forestlands and
mill site in Brazil and build one or two 220,000 ton-per-year
uncoated paper machines on the Tres Lagoas site, at a cost of
less than US$300 million each.  It expects to make a decision on
this opportunity by the end of 2006.

The Company has completed the sale of its majority share of
Carter Holt Harvey Ltd and announced it has entered into sale
agreements for 5.7 million acres of U.S. forestland and its
coated papers and kraft papers businesses, expected to close in
the second half of 2006 with expected proceeds of approximately
US$9.3 billion.

The Company's other business units being evaluated for possible
sale include its beverage packaging, wood products and Arizona
Chemical businesses, as well as its Inpacel assets in Brazil.  
It expects total divestiture proceeds to exceed US$11 billion.

                    About International Paper

Based in Stamford, Connecticut, International Paper Company
(NYSE: IP) -- http://www.internationalpaper.com/-- is in the  
forest products industry for more than 100 years.  The company
is currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the United States, Europe, South America and
Asia.  These businesses are complemented by an extensive North
American merchant distribution system.  International Paper is
committed to environmental, economic and social sustainability,
and has a long- standing policy of using no wood from endangered
forests.

International Paper (Asia) Ltd. is headquartered at Harbour
Road, in Wanchai, Hong Kong.

                           *     *     *

Moody's Investors Service assigned a Ba1 senior subordinate
rating and Ba2 Preferred Stock rating on International Paper
Company in Dec. 5, 2005.


JAMYET LIMITED: Joint Liquidators Step Aside
--------------------------------------------
Chan Shu Kin and Chow Chi Tong ceased to act as joint
liquidators of Jamyet Ltd on July 14, 2006.


KOREA INDUSTRIAL: Annual Meetings Set on July 27
------------------------------------------------
Members and creditors of Korea Industrial Leasing Company (H.K.)
Ltd will convene for their annual meetings on July 27, 2006, at
10:00 a.m. and 2:00 p.m. respectively at 16 Yeoiudo-Dong,
Yeongdeungpo-Gu, Seoul 150-873 Korea.

At the meetings, Liquidator Oh Jae-Hoon, Eugene will present a
report on the Company's wind-up proceedings and property
disposal exercises.


KWONG ON JUBILEE: Appoints Joint Liquidators
--------------------------------------------
Rainier Hok Chung Lam and John James Toohey were appointed as
joint liquidators of Kwong On Jubilee Charity Fund Ltd on
July 3, 2006.

The Joint Liquidators can be reached at:
         
         John James Toohey
         22nd Floor, Prince's Bldg
         Central, Hong Kong


LOYAL BUSINESS: Creditors Opt for Voluntary Wind-Up
---------------------------------------------------
At an extraordinary general meeting of the creditors of Loyal
Business Ltd on July 7, 2006, a special resolution was passed to
voluntarily wind up the Company's operation.

Subsequently, Yuen Sho Tong and Ng Tze Kin were appointed joint
liquidators for the Company.

The Joint Liquidators can be reached at:

         Ng Tze Kin
         Unit 301, 3rd Floor
         Malaysia Bldg, 50 Gloucester Road
         Wanchai, Hong Kong


NEW AGE: Members Decide to Voluntary Wind-Up Operations
-------------------------------------------------------
Members of The New Age Foundation Ltd on July 13, 2006, decided
to voluntary wind up the Company's operations and appoint Lam
Ying Sui as liquidator.

The Liquidator can be reached at:

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


PEAK ART: Wind-Up Petition Hearing Fixed for August 16
------------------------------------------------------
The High Court of Hong Kong is set to hear a wind-up petition
filed against Peak Art Advertising & Design Co Ltd on August 16,
2006, at 9:30 in the morning.

Lim Mou San Lewis filed the petition with the Court on June 14,
2006.

Solicitors for the plaintiff can be reached at:

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


RBC FUTURES: Final Members Meeting Set on August 22
---------------------------------------------------
The final meeting of the members of RBC Futures Services (Asia)
Ltd will be held on August 22, 2006, 11:00 in the morning at
17/F., Cheung Kong Centre, 2 Queen's Road Central, Hong Kong.

At the meeting, Liquidator Loong Ping Kwan will report on the
Company's wind-up and property disposal exercises.


SUNCO MANUFACTURING: Appoints Fung as Liquidator
------------------------------------------------
The members of Sunco Manufacturing Ltd appointed Fung Chi Keung
on July 6, 2006, to manage the Company's liquidation.

Mr. Fung requires the creditors of the Company to submit their
proofs of claim by August 9, 2006, or be excluded from sharing
in any distribution the Company will make.

The Liquidator can be reached at:

         Fung Chi Keung
         Flat F., 28th Floor, Block 3
         Kwai Fong Terrace, No 15
         Kwai Yi Road, Kwai Chung
         New Territories, Hong Kong


WANG TAI ENTERPRISE: Court to Hear Wind-Up Bid on September 6
-------------------------------------------------------------
The wind-up petition filed against Wang Tai Enterprise
(International) Development Ltd will be heard before the High
Court of Hong Kong on September 6, 2006, at 9:30 in the morning.

Bank of China (Hong Kong) filed the petition with the Court on
July 3, 2006.

The solicitor for the plaintiff can be reached at:

        Chow, Griffiths & Chan
        Rooms 1902-4, 19th Floor
        Hang Seng Bldg
        77 Des Voeux Road Central
        Hong Kong


YING FAT: Official Liquidator Named
-----------------------------------
Members of Ying Fat Shoes Manufactory Ltd on July 3, 2006,
passed a resolution, appointing Chi Man Shing as liquidator for
the Company.

In this regard, Mr. Ying requires the Company's creditors to
submit their proofs of claim by August 13, 2006, or be excluded
from any distribution the Company will make.

The Liquidator can be reached at:

         Chi Man Shing
         Flat 1110, 11/F Kowloon Plaza
         485 Castle Peak Road
         Kowloon, Hong Kong


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

GENERAL MOTORS: Reviewing Nissan-Renault Deal; Toyota Might Bid
---------------------------------------------------------------
General Motors Corporation and Nissan-Renault are reviewing a
proposed three-way alliance for 90 days, published reports say.  
Renault-Nissan is a collaboration between Nissan Motor Co., Ltd
and Renault S.A.   

A GM shareholder, Kirk Kerkorian, broached the idea of pulling
in GM into the two-way tie-up.  Mr. Kerkorian owns 9.9% equity
stake in GM through his investment firm Tracinda Corporation.  

Toyota Motor Corporation - United States, however, might throw a
wrench to the possible deal, as it is likely to throw in a bid
to ally with GM, the Business Week reports.  But, as reported in
CNN Money, Toyota was quick to quell rumors that it's interested
in GM.

GM and Toyota jointly operate an assembly plant in Freemont,
Calif.  GM Chairman and CEO G. Richard Wagoner, Jr., said a deal
with another automaker besides Renault-Nissan was possible,
according to Automotive News; a likely possibility since the
US$3-billion proposed alliance is seen as a hostile move by some
of GM's management even after Renault-Nissan's President and CEO
Carlos Ghosn publicly declared that the ball is in GM's hands.  
Though Mr. Ghosn received a go signal from Renault-Nissan's
board to negotiate a deal, Mr. Ghosn said GM has to initiate the
three-way alliance.  Mr. Ghosn also clarified that he's not
after Mr. Wagoner's job.

Talks of a possible alliance surfaced amidst GM's troubles as it
faces market, production and cost issues.  GM is currently
implementing a turnaround plan that involves plant closures and
job cuts.  Analysts opined that all these talks about alliances
are just distracting GM from doing what it should be doing:
create a good product and increase market share.

Though still number one in the world, GM's market share is
continually eroding.  Based on 2005 new vehicles sales, GM sold
14.2% of the total number of vehicles sold.  Toyota has 13%.  
Ford comes in third with 12.4%.  Renault-Nissan has 9.6% of the
pie.

                    About General Motors

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

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

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

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


HINDUSTAN PHOTO: Revival Proposal Gets Government's Attention
------------------------------------------- -----------------
The Central Government has finally heeded Hindustan Photo Film
Mfg. Co. Limited 's call for revival after more than a decade,
Business Standard relates.

The Government reportedly agreed to review and consider the
rehabilitation plan of the Company, which was declared sick in
fiscal year 1992-93, The Standard says.
  
Sources told The Standard that the Centre had agreed to exempt
the Company from its customs duty of 12.5% on the import of
subbed polyster base film, the basic raw material to manufacture
photographic films.  
  
Moreover, the Centre has appointed Ernst & Young to prepare a
feasibility study and submit the Company's revival plan to the
Government as soon as possible.

Hindustan Photo Films Mfg. Co. Limited is a state-owned company
under the administrative jurisdiction of the Department of Heavy
Industry, Ministry of Heavy Industry and Public Enterprises,
Government of India.  The Company is engaged in manufacturing
and marketing of photographic and allied products.  It is
headquartered in Indunagar, Udhagamandalam (Ooty) in the
Nilgiris District of Tamil Nadu.  It also has manufacturing
facilities at Nilgiris, Tamil Nadu and has a conversion and
processing chemicals facility at Ambattur, Chennai, Tamil Nadu.


MYSORE CEMENTS: HeidelbergCement Keen on Taking Majority Stake
--------------------------------------------------------------
German cement giant HeidelbergCement AG is willing to pay around
US$100 million for a 51% stake in Mysore Cements Limited,
Business Standard newspaper reports.

According to The Standard, the Mysore stake will be acquired at
around 15% premium over Tuesday's closing price of INR47.95 per
share.

It is not known, however, whether HeidelbergCement will come out
with an open offer following the acquisition, The Standard adds.

The Mysore Cements board of directors will meet on July 19,
2006, to approve a private placement of preferential shares to
Heidelberg, MyIris News reveals.  The allotment of preferential
shares will be subject to shareholders' approval.  

The Economic Times reported last month that HeidelbergCement was
close to acquiring a 30% stake in Mysore and that the German
firm was likely to pay up to INR2.5 billion for the stake.

Mysore Cement officials, however, declined to divulge further
information to the Economic Times.

                  About Mysore Cements Limited

Mysore Cements Limited, an S K Birla group company, was
incorporated in technical and financial collaboration with
Kaisers of the United States.  Mysore Cements mostly
manufactures ordinary and pozzolona varieties of portland
cement.  The company has plants in Karnataka and Madhya Pradesh
and a grinding unit in Uttar Pradesh.  The Company has been
declared as a sick entity due to the complete erosion of its net
worth.  To date, the Company has an accumulated loss of
INR461 crore.


* Oil Marketing Firms Brace for INR2,900-Crore Losses
-----------------------------------------------------
Oil marketing firms, such as Indian Oil Corporation, Bharat
Petroleum Corporation Limited and Hindustan Petroleum
Corporation Limited, are expected to incur losses of up to
INR2,900 crore in the last two weeks of July on account of
petroleum products being priced below costs, Business Standard
relates.

Moreover, the under-recoveries are expected to balloon since the
Government is unlikely to allow the oil retailers to raise
domestic prices amid the steep rise on international crude
prices until the monsoon session of Parliament ends, The
Standard says.

An Indian Oil executive told The Standard that the Company was
expected to suffer around INR1,450-crore losses, which is likely
to be approximately half the under-recovery of all oil marketing
firms put together.

According to The Standard, thee Indian crude basket was priced
at US$73.96 a barrel on July 14, 2006, significantly higher than
the average US$66.80 in June 2006.  
  
As reported by the Troubled Company Reporter - Asia Pacific, the
Government recently allowed state-run oil marketing companies to
revise retail prices of petrol and diesel on the last day of
each month if the monthly average price of the country's crude
oil basket crossed US$70 a barrel.

The oil ministry has, however, ruled out any price hike until
the end of the monsoon session of Parliament.  The month-long
session is scheduled to begin in the last week of July,
according to The Standard.


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

INDOFOOD SUKSES: Plans to Merge Five Palm Oil Units
---------------------------------------------------
Noodle manufacturer PT Indofood Sukses Makmur Tbk plans to merge
its five palm oil subsidiaries into a sixth unit in order to
increase efficiency, Reuters News reveals.

Antara News relates that the Company will merge PT Bitung Manado
Oil Industri, PT Gentala Artama, PT Inti Boga Sejahtera, PT
Pratiwimba Utama and PT Sawitra Oil Grains with surviving firm
PT Salim Ivomas Pratama, on order to create a more effective,
efficient and productive management, according to Salim Ivomas.  

Bisnis Indonesia says that Indofood plans to float Salim Ivomas
by the end of the year via an initial public offering, in
expectation of increasing demand for edible oils.  The IPO would
create competition in the industry, which is currently dominated
by Astra Agro Lestari, Bakrie Sumatra and London Sumatra, XFN
Asia reports, citing PT Mahakarya Artha Securities analyst Willy
Sanjaya.  Indofood is planning to expand to Malaysia with the
purchase of instant noodle production facility Medan Pulangan
Berhad.

In response to the planned merger, Company shares rose 1.11% at
IDR910 per share.

                       About Indofood Sukses

PT Indofood Sukses Makmur Tbk (Indofood) --
http://www.indofood.co.id/-- is Indonesia's premier processed  
foods company.  Its products, including instant noodles, wheat
flour, branded edible oils and fats, baby foods, snack foods,
food seasoning, lead domestic market shares.  Indofood is
currently the largest instant noodles manufacturer and the
largest flour miller in the world, with installed capacities of
approximately 13 billion packs and 3.6 million tons per annum,
respectively.  Indofood's products are distributed mainly
through its subsidiaries, including Indomarco, independent
distributors, as well as some cooperatives, which bring the
Company's products to more than 150,000 retail outlets in the
country.  Total employees as of December 1999 were 42,172.  A
combination of shrinking profits, escalating costs, losses,
competition and a declining rupiah prompted the Company to cut
around 2,000 or 4.4% of its workforce and slash 40 products from
its range in 2005.

In 2005, Indofood's total outstanding debt fell to
IDR6.8 trillion from IDR7.9 trillion in 2004.  The United States
dollar-denominated debts also fell to US$190.6 million in the
same period from US$317.4 million in 2004.

Indofood has bought back US$166.3 million (IDR1.55 trillion) of
its US$280 million (IDR2.61 trillion) Eurobonds due in 2007.  
The Company also plans to redeem all the outstanding balance of
the Eurobonds this year.


INDOFOOD SUKSES: S&P Withdraws 'B' Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services has withdrawn its 'B'
corporate credit rating on PT Indofood Sukses Makmur Tbk.
(Indofood) at the company's request.

At the same time, Standard & Poor's also withdraws its issue
rating of 'B' on the US$280 million notes issued by Indofood
International Finance Ltd.  The notes, which were guaranteed by
Indofood, have been fully redeemed by the company.


TELEKOMUNIKASI INDONESIA: Current Deficit Up 30% to Hit US$326MM
----------------------------------------------------------------
The working capital deficit of Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk. increased by about 30%, or
IDR735.510 billion, from IDR2.473 trillion at Dec. 31, 2004, to
IDR3.208 trillion (US$326.4 million) at Dec. 31, 2005.

The Company had IDR10.304 trillion (US$1.048 billion) in current
assets and IDR13.513 trillion (US$1.374 billion) in current
liabilities at Dec. 31, 2005, compared with IDR9.203 trillion in
current assets and IDR11.677 trillion in current liabilities at
Dec. 31, 2004.

The decrease in net working capital was principally due to
increases in trade accounts payable, taxes payable, accrued
expenses and unearned income.  These increases were partially
offset by increases in cash and cash equivalent, trade accounts
receivable, prepaid expenses and other current assets, and a
decrease in short-term bank loans.

The 15.7% increase in current liabilities primarily arose from
increases in:

   (a) trade accounts payable;

   (b) taxes payable;

   (c) accrued expenses; and

   (d) unearned income.

About 31.6% of the Company's current liabilities at Dec. 31,
2004, and 31.4% at Dec. 31, 2005, were denominated in foreign
currencies, principally the U.S. Dollar, such that the movement
of Rupiah exchange rate against the U.S. Dollar significantly
affected its current liabilities.

Of total indebtedness at Dec. 31, 2005, IDR2.400 trillion was
scheduled for repayments in 2006, IDR3.407 trillion in 2007 and
IDR7.925 trillion in 2008-2024.

Of these amounts, PT Telekomunikasi Selular was scheduled to
repay:

   -- IDR493.3 billion in 2006;
   -- IDR323.3 billion in 2007; and
   -- IDR180.7 billion in 2008.

Furthermore, IDR14.3 billion was to be repaid by PT Dayamitra
Telekomunikasi in 2006.

PT Infomedia Nusantara was scheduled to repay:

   -- IDR4.7 billion in 2006;
   -- IDR3.4 billion in 2007; and
   -- IDR2.3 billion in 2008.

At Dec. 31, 2005, the Company's outstanding principal
indebtedness under the two-step loans totaled IDR5.329 trillion
(US$542.2 million), of which IDR2.232 trillion (US$227 million)
was denominated in U.S. Dollars and IDR1.302 trillion
(JPY15,527.6 million) was denominated in Japanese Yen.  As of
Dec. 31, 2005, the Company has used all facilities of two-step
loans and the draw period for the two-step loan has expired.

In 2005, the Company was in breach of certain covenants in its
High Performance Backbone debt facilities from Citibank and Bank
Central Asia, and the indenture in connection with its bonds of
IDR1 trillion which require the Company not to make any loans to
or for the benefit of any person, which in the aggregate exceed
a certain amount.

The Company has obtained written waivers from Citibank
International Plc, acting as agent for lenders under the
relevant facility agreements, BCA and PT Bank Rakyat Indonesia
Tbk., acting as trustee of the IDR bonds.

Net cash flows from operating activities totaled
IDR16.051 trillion in 2004 and IDR21.102 trillion
(US$2,146.8 million) in 2005.  The 31.5% increase is primarily
due to an increase of IDR4.327 trillion, or 41.2%, in cash
receipts from cellular business; an increase of
IDR4.327 trillion, or 41.2%, in cash receipts from cellular
business; and an increase of IDR1.978 trillion, or 39.8%, in
cash receipts from data and Internet primarily due to increases
in SMS usage by Telkomsel subscribers and the number of Speedy
subscribers.

Net cash flows used in investing activities totaled IDR9.598
trillion in 2004 and IDR12.212 trillion (US$1,242.4 million) in
2005.  In 2005 compared to 2004, net cash flows used in
investment activities increased by IDR2,614.6 billion, or 27.2%,
primarily due to an increase of IDR3.538 trillion, or 41.3%, in
the acquisition of property, plant and equipment.

Net cash flows used in financing activities totaled IDR6.904
trillion in 2004 and IDR8.339 trillion (US$848.4 million) in
2005.  Net cash flows from financing activities were driven
primarily by repayments of outstanding indebtedness and by
payments of cash dividends.

The Company made net repayments of current indebtedness for
borrowed money of IDR7.601 trillion in 2004 and
IDR4.096 trillion (US$416.8 million) in 2005.

Primary sources of financing available to the Company consist
of:

   1. Cash flow from operating activities;

   2. Financing from bonds issuance;

   3. Financing from banks or export credit agencies (including
      financing procured by vendors); and

   4. Deferred vendor payment arrangements.

The Company manages the liquidity for all of its businesses,
including KSOs controlled by TELKOM, on a total group basis.
However, Telkomsel manages its own liquidity and accesses
capital resources independently.

Kerjasama Operasi or Joint Operating Scheme, is a unique type of
Build, Operate and Transfer arrangement with a consortium of
partners in which the consortium invests and operates Company
facilities in regional divisions.

The Company expects to have substantial liquidity and capital
resources requirements in the short and long term as it
continues to develop and expand its existing businesses,
including entering into new businesses.

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk.
provides local and long-distance telephone service in Indonesia.
Known as Telkom, the Company also offers fixed-wireless service,
leased lines, and data transport through affiliates.  It is
based in Bandung, Indonesia.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2006, Moody's Investors Service given Telekomunikasi
Indonesia a Ba1 local currency corporate family rating.

Standard & Poor's Ratings Services gave the Company foreign and
local currency corporate credit ratings of BB+.


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

JAPAN AIRLINES: Adopts New Support Program to Enhance Services
--------------------------------------------------------------
Japan Airlines has chosen Sabre Airline Solutions' AirFlite
suite of integrated decision support products to optimize its
scheduling development process end to end, from planning to
distribution, Business Wire relates.

With the latest version of AirFlite, the Company will be able to
integrate core functions such as scheduling, profitability
forecasting and analysis, fleet and network optimization and
slot management in order to cut operating costs and increase
revenue.

JAL will also make use of Sabre Airlines Solutions' to ensure
the comprehensive adoption and utilization of this technology
and enable the Company to maximize the AirFlite suite.  Japan
Airlines Chief Information Officer Shunichi Saito said that the
Company aims to create an airline with increased customer appeal
and a strong business model.  JAL is committed to satisfying its
customers' needs and must be able to quickly change schedules
and effectively integrate its network in order to bring
customers to their destinations at their preferred times.

According to JAL corporate planning director Hirofumi Kono,
Sabre AirFlite makes it possible for the Company to decide which
markets to serve and how often, when to fly and what aircraft to
assign to a certain route at any given day, and improve long-
term strategic plans.  The Company started using AirFlite on
July 18, 2006.

JAL also engaged Sabre Airline Solutions consultants to help
address organizational challenges and craft strategic
alternatives to improve operational results; Sabre will provide
business support to ensure faster and greater return on
investment and focus on delivering business value to the
airline.  The implementation of the program is slated to be
completed by the end of the year.

                          *     *     *

Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger  
of Japan Airlines and Japan Air Systems to boost domestic
coverage.  JAL's international passenger operations incurred
losses in recent years due to negative factors such as the
severe acute respiratory distress syndrome epidemic and
terrorism fears.  Due to a series of safety related incidents,
the JAL Group was subjected to a business improvement order and
administrative warnings relating to assurances on air
transportation safety issued by the Ministry of Land,
Infrastructure and Transport in March 2005.  For the JAL Group,
there was a year-on-year decline in passenger demand on
international routes, due mainly to a delay in the recovery of
demand on routes to China and Southeast Asia.  Domestic
passenger demand also fell below its year-earlier level,
particularly among individual passengers, as a result of factors
such as the series of safety problems that occurred.  Demand for
international cargo services also fell year-on-year, due to weak
demand on routes from Japan to East Asian countries and the
United States.  Rising aviation fuel prices compounded JAL's
situation.

As of March 31, 2006, JAL's debt amounted to JPY1.93 trillion,
whereas shareholders' equity stood at JPY148.1 billion.  Fitch
Ratings Tokyo analyst Satoru Aoyama said that the Company's debt
obligations and expenses for new aircraft have placed it in an
unfavorable financial position.  Fitch assigned a BB- rating on
the Company, which is three notches lower than investment grade,
whereas Moody's Investors Service affirmed its Ba3 senior
unsecured and issuer ratings for Japan Airlines International
Co., Ltd., as well as its Ba3 issuer rating for Japan Airlines
Domestic Co., Ltd.  The rating affirmation is in response to the
Japan Airlines group's recent announcement of its planned share
issue.

The Troubled Company Reporter - Asia Pacific stated on May 12,
2006, that JAL posted a consolidated net loss of
JPY47.24 billion for the business year 2005 ended March 31,
2006, due to safety-related incidents in 2005 that caused
passengers to shift to its rival All Nippon Airways, and an
increase in aviation fuel costs.


MITSUBISHI MOTORS: JCR Raises Senior Debt Rating to BB-
-------------------------------------------------------
Japan Credit Rating Agency, Ltd., on July 18, 2006, upgraded the
rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-,
with a stable outlook.  The agency also affirmed the NJ rating
on CP program of the Company, while upgrading its rating on the
Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi
Motors Credit of America, Inc. and MMC International Finance
(Netherlands) B.V. to B+ from CCC.

According to JCR, Mitsubishi Motors Corp.'s restructuring has
been going well as planned, with Mitsubishi group firms
increasing their stakes in MMC to 34.3% as of the end of March
2006, retaining support to it.

MMC turned profitable one year earlier on an operating profit
basis with decline in domestic sales being staved off.  The
sales-finance in the United States reduced its risk by
streamlining assets and operations, and its financial management
has stabilized as shown by the fact that the business segment
got more-than-expected operating cash flow and liquidity on
hand.

On the other hand, automotive sales have weakened in North
America and Australia where burden for fixed expenses has been
reduced thanks to the write-downs.  MMC decided to stop
producing DaimlerChrysler AG's subcompact cars in Europe.  
However, the impact of this stoppage on the earnings will be
small in short run thanks to compensation from DaimlerChrysler.  
MMC aims to further streamline its operations in Europe.

Given the excess production capacity in the U.S., Australia and
Europe, JCR thinks that establishments of appropriate global
production system and of the profitable structure are issues
that the Company needs to address, as well as capital policy
issues such as exit strategy for the preferred shares over the
intermediate to long term.


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

ASAT HOLDINGS: April 30 Stockholders' Deficit Tops AU$53 Million
----------------------------------------------------------------
ASAT Holdings Limited reports its financial results for the
fourth quarter and fiscal year 2006, ended April 30, 2006.

Net revenue in the fourth quarter of fiscal 2006 was
US$49.3 million, an increase of 2% compared with net revenue of
US$48.2 million in the third quarter of fiscal 2006.

Net loss in the fourth quarter of fiscal 2006 was
US$17.1 million.  Fourth quarter net loss includes one-time
related charges of US$3.9 million for the write-off of property,
plant and equipment, US$2.7 million in reorganization charges,
and US$1.0 million in relocation and facilities expenses
associated with the Company's move of its manufacturing
operations to Dongguan, China.
    
Fourth quarter net loss compares with a third quarter net loss
of US$5.9 million.  Third quarter net loss included a
US$2.3 million reversal to other income for the previously
accrued write-off of ASAT S.A., ASAT's business in France that
was closed as part of ASAT's global restructuring in November
2001.

"We have successfully closed our assembly and test operations in
Hong Kong and are completing our move to Dongguan, China,"
Robert J. Gange, president and chief executive officer of ASAT
Holdings Limited said.

"The move was completed ahead of schedule with minimal
disruption to our overall business.  Now that our manufacturing
is in the new low-cost facility, we expect the cost savings by
operating in Dongguan will be reflected in the October quarter
results."

                   Fiscal 2006 Financial Results

Net revenue for fiscal 2006 was US$182.1 million, compared with
net revenue of US$194.4 million in fiscal 2005.  Net loss for
fiscal 2006 was US$42.4 million.  This compares with a net loss
of US$60.4 million in fiscal 2005.

At April 30, 2006, the Company's balance sheet showed
US$181,461,000 in total assets, US$230,575,000 in total
liabilities and US$4,143,000 in total redeemable convertible
preferred shares, resulting in a US$53,257,000 shareholders'
deficit.  The Company also has a US$306,152,000 accumulated
deficit at April 30, 2006.

                      Financing Commitment

The Company is in the process of obtaining external financing to
facilitate its required working capital needs.  While ASAT
believes receipt of the financing is likely, there can be no
assurance that it will be obtained, and if such financing is not
obtained for any reason, unless alternate financing is obtained,
there may be questions regarding the Company's ability to
continue as a going concern.

          First Quarter Fiscal 2007 Outlook and Guidance

"The July quarter will mark the end of our move to China," Mr.
Gange said.  "During the last stage of the move some of our
equipment was not available for production.  Since we were not
able to maximize our full revenue generating potential our July
quarter revenue results will be in line with the April quarter."

For the first quarter of fiscal 2007, ending July 31, 2006, the
Company expects revenue to be approximately flat with the April
quarter.

                       ASAT Holdings Limited

ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/--  
is a global provider of semiconductor package design, assembly
and test services.  With more than 17 years of experience, the
Company offers a definitive selection of semiconductor packages
and world-class manufacturing lines. ASAT's advanced package
portfolio includes standard and high thermal performance ball
grid arrays, leadless plastic chip carriers, thin array plastic
packages, system-in-package and flip chip. ASAT was the first
company to develop moisture sensitive level one capability on
standard leaded products.  The Company has operations in the
United States, Asia and Europe.

One of ASAT's Asian headquarters is in Seoul, Korea.

At April 30, 2006, the Company's shareholders' deficit more than
doubled to US$53,257,000 compared to a US$26,456,000 deficit at
April 30, 2005.

                           *     *     *

As reported in the Troubled Company Reporter on Nov. 10, 2005,
Standard & Poor's Ratings Services has affirmed ASAT Holdings
Ltd.'s 'B-' long-term corporate credit rating and removed the
rating from CreditWatch, where it was placed with negative
implications on Aug. 17, 2005.  S&P said the outlook is
negative.

Moody's also placed a Caa1 rating on ASAT Holdings' senior
unsecured debt on March 26, 2004.


CENICONE CO: Reports KRW6.92-Billion Net Loss for 2005
------------------------------------------------------
Cenicone Co., Ltd., reports a net loss of KRW6.92 billion for
the full year 2005, a 79.67% decrease from the KRW34.06 billion
net loss in 2004, Bloomberg News relates.

The net loss comes from net sales of KRW12.16 billion, a 9.51%
decrease from 2004's recorded net sales of KRW13.44 billion.

Cenicone Co., Ltd. -- http://www.wj-remote.com/-- manufactures  
remote control units.  The Company's customers include AT&T
Corp., Echostar Communications Corp., Sagem SA, and Motorola
Inc.. Cenicone also operates building leasing business.

The Troubled Company Reporter - Asia Pacific reported Cenicone
Co. Ltd. as one of the large Korean companies with insolvent
balance sheets.  As of July 13, 2006, the Company's total
equaled US$36.82 million, while its shareholders' equity deficit
reached US$1.46 million.


HYUNDAI MOTOR: Chairman Chung Returns to Work
---------------------------------------------
Hyundai Motor Co.'s chairman, Chung Mong-koo, returned to work
yesterday after spending more than two months in jail and in the
hospital amid a slush fund scandal that surrounded the Hyundai
Group, the Associated Press says.

The Troubled Company Reporter - Asia Pacific reported on
July 3, 2006, that Chairman Chung was granted a KRW1-billion
bail by the Seoul Central District Court.

An earlier reported by the TCR-AP stated that Chairman Chung was
arrested in April 2006 and indicted on charges of embezzlement
and breach of trust.  He was suspected of embezzling about
US$106 million since 2002 to create a slush fund, as well as of
incurring about US$320 million in damages to the group.

Chairman Chung's legal counsel had requested that Judge Kim
Dong-oh grant bail for the chief executive, citing his age, his
deteriorating health and the disruption in operations at Hyundai
Motor.  On June 12, 2006, at the second hearing of his
embezzlement trial, the 68-year-old Chairman Chung said that he
was suffering from high blood pressure, joint pains and
occasional dizziness.

AP relates that upon Chairman Chung's release, he was
immediately hospitalized.  He was released during the weekend.

According to the TCR-AP report, Hyundai spokesman Jake Jang said
that Chairman Chung's early return to management would mean that
stalled projects, which were delayed due to his arrest, would
push through.

Getting back to work, Chairman Chung met with Alabama Governor
Bob Riley, AP says.

A company statement says that the two "exchanged views on ways
to expand and further develop Hyundai's project in Alabama."  
Hyundai Motor opened a plant in Montgomery in 2005.

                      About Hyundai Motor

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

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

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

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


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

AKTIF LIFESTYLE: Executes Restructuring Deal with Strandcom
-----------------------------------------------------------
On June 15, 2006, Aktif Lifestyle Corporation Berhad and the
promoters of Strandcom MSC Berhad executed a restructuring
agreement that seeks to regularize the financial condition of
Aktif and its subsidiaries.

The restructuring exercise will involve Strandcom, being the
white knight, undertaking:

   -- the proposed capitalization of MYR4 million owed to
      directors through the issuance of 40,000,000 new
      ordinary shares of MYR0.10 each in Strandcom;

   -- the proposed bonus issue of 71,123,472 new ordinary
      shares of MYR0.10 each in Strandcom on the basis of
      three bonus share for every five existing ordinary
      shares of MYR00.10 each held in Strandcom;

   -- the proposed restricted issue of 51,212,408 new
      Strandcom shares to the existing Strandcom shareholders
      at an indicative issue price of MYR0.16 per restricted
      issue share;

   -- the proposed scheme of arrangement to be undertaken
      between Strandcom, Aktif and the shareholders of Aktif
      where the entire issued and paid up share capital of
      Aktif comprising 20,479,000 ordinary shares of MYR1 each
      is proposed to be exchanged with 19,125,000 Strandcom
      Shares at an indicative issue price of MYR0.16 Strandcom
      share, to the existing Aktif shareholders;

   -- the proposed acquisition of the remaining 40% equity
      stake in Infotech Accord Sdn Bhd not already owned by
      Strandcom, comprising 400,000 ordinary shares of MYR1
      each, for a purchase consideration of MYR11,200,000 to
      be satisfied via the issuance of 70,000,000 Strandcom
      shares at an indicative issue price of MYR0.16 per
      Strandcom share;

   -- the proposed private placement of 70,000,000 new
      Strandcom shares to investors to be identified at a
      placement price to be determined later; and

   -- the proposed delisting of Aktif from the Second Board of
      Bursa Malaysia Securities Berhad and the proposed
      admission of Strandcom to the Official List of Bursa
      Securities with the listing and quotation for its entire
      enlarged issued and paid up share capital in place of
      Aktif, on the Bourse's Second Board.

The Proposals are intended to:

   * preserve the value of the listing status of Aktif through
     Strandcom Group, which has a profitable core business
     with profits and growth potential, assuming Aktif's
     listing status upon completion of the Proposals;

   * maximize the recovery of shareholders' value of Aktif's
     shareholders; and

   * enable Aktif's shareholders to participate in the new
     listed entity, or Strandcom, allowing them to participate
     in its future and growth and earnings potential.

The proceeds to be raised from the undertakings are intended to
be used for the redemption of the outstanding convertible notes
previously issued by Strandcom, the expansion of Strandcom's
core business and for the working capital requirements of
Strandcom and its subsidiaries including research and
development expenses.

The amount of proceeds to be raised from the undertakings will
only be determined upon finalization of the issue price of the
restricted issue shares and the placement price of the placement
shares.

Upon completion of the Proposals, the shareholders of Aktif will
be participating in a new core business, such as in the core
business of Strandcom, which operates within the information and
communications technology industry and the security and public
safety industry.

More details regarding the restructuring agreement are available
for free at:

   http://bankrupt.com/misc/tcrap_aktiflifestyle071806.pdf  

                        About Strandcom

Strandcom was incorporated on March 12, 2004, in Malaysia under
the name of Britland Sdn Bhd.  Subsequently, the name was
changed to Strandcom MSC Sdn Bhd on September 8, 2004.  It was
converted into a public company and adopted its present name on
September 30, 2004.  Strandcom has an authorized share capital
of MYR10,000,000 comprising 100,000,000 ordinary shares of
MYR0.10 each, of which 78,539,120 ordinary shares have been
issued and fully paid-up.

Strandcom's principal activities are investment holding and
development of Managed Electronic Townships.

                     About Aktif Lifestyle

Headquartered in Kuala Lumpur, Malaysia, Aktif Lifestyle
Corporation Berhad's principal activities is the operation of
specialty retail stores.  Other activity includes investment
holding.

The Company has defaulted on several loan facilities and
incurred continuous losses.  It embarked on various corporate
exercises aimed at regularizing its financial condition.  In
2005, the Company presented a proposed restructuring scheme,
which did not win the Securities Commission's favor due to
uncertainty in assets valuation and concerns on corporate
governance issues.  An appeal to SC to review its decision on
the Proposed Restructuring Scheme was already submitted.  The
Proposed Restructuring Scheme, if successfully implemented, will
have the new listed Group be involved in the business of
quarrying, manufacturing, trading of granite products as well as
the supply and installation of marble and granite related
products.

As reported by the Troubled Company Reporter - Asia Pacific,
Bursa Malaysia Securities Berhad, on June 8, 2006, commenced
delisting procedures against Aktif, which is a Practice Note 10
company.  In a statement, Bursa Securities said that Aktif has
failed to ensure that its level of operations is adequate in
accordance to the listing requirements.


ANTAH HOLDINGS: Complies with Public Spread Requirement
-------------------------------------------------------
Antah Holdings Berhad has complied with the level of public
shareholding spread as prescribed under the Listing Requirements
of Bursa Malaysia Securities Berhad wherein a listed issuer must
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 public shareholding spread of the Company as of June 30,
2006, stands at 63.19% of the total shareholding in the hands of
17,510 public shareholders.

                   About Antah Holdings Berhad

Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia,
Antah Holdings Berhad -- http://www.antah.com.my/--  
manufactures and trades pharmaceutical products and fluid
engineering and manufacturing.  The Company's other activities
include retailing of houseware and kitchenware, property
development, insurance broking, provision of management services
and investment holding.  The Group discontinued its beverage and
security services operations.  The Group operates in Malaysia,
Australia, United Kingdom and Singapore.

On February 6 and May 8, 2006, the Company entered into several
agreements with certain parties to undertake a proposed
restructuring scheme with the intention of restoring the Company
onto stronger financial footing via an injection of new viable
businesses.

The Company's March 31, 2006, balance sheet showed total assets
of MYR698,224,000 and total liabilities of MYR1,051,307,000
resulting into a shareholders' deficit of MYR353,083,000.  The
Company's default on its credit facilities totaled
MYR286,442,000, as of April 30, 2006.


AYER HITAM: Unit Inks MYR11-Million SPA with Propel Synergy
-----------------------------------------------------------
On July 14, 2006, Ayer Hitam Tin Dredging Malaysia Berhad's
wholly owned subsidiary, Motif Harta Sdn Bhd, entered into a
sale and purchase agreement with Propel Synergy Sdn Bhd for the
disposal of a certain property.

The Proposed Disposal entails the sale of a 7,503-meter piece of
leasehold land together with uncompleted buildings for a cash
consideration of MYR11,000,000.  The Property is located about
one kilometer south-east of Melaka town center, within an
established commercial area known as Taman Melaka Raya, Melaka.  
The Land's leasehold tenure of 99 years will be expiring on
August 19, 2075.

In 1996, Motif Harta has undertaken a hotel construction project
on the Land known as the "Ambassador Hotel," which was partially
financed by a MYR63-million syndicated term loan.  However, due
to the Asian financial crisis and weak property market
conditions, Motif Harta has suspended the construction works of
the hotel project, which is currently approximately 60%
completed.  As a result, Motif Harta has defaulted on its
obligation in relation to the Syndicated TL and on October 14,
2004, the lenders have served a letter of demand on Ayer Hitam
-- being the corporate guarantor -- and Motif Harta for the
principal and interest under the loan and judgment was entered
in favor of the lenders against Ayer Hitam and its subsidiary.

In order to meet its obligations under the Syndicated TL, Motif
Harta has attempted to dispose of the Property since 2001 via
three open tenders conducted.  However, Motif Harta did not
receive any offers pursuant to the tenders.

On August 17, 2005, Ayer Hitam proposed to undertake a
comprehensive restructuring scheme to return the Ayer Hitam
group of companies back onto a stronger financial footing, which
includes a debt settlement scheme with the lenders of the
Syndicated TL.  The Lenders have given their approval-in-
principle for the restructuring scheme subject to inter-alia, a
definitive agreement for the disposal of the Property to be
executed by July 15, 2006.

During the second quarter of 2006, Motif Harta has received an
indication of interest from Propel to purchase the Property,
which led to the execution of the SPA on July 14, 2006, after a
series of negotiations.

City Valuers and Consultants Sdn Bhd, a firm of professional
valuers had vide its letter dated September 19, 2005, indicated
a market value for sale by public auction of the Property of
MYR20 million based on the cost and comparison methods of
valuation.

Notwithstanding the valuation, the Board has agreed to the
disposal consideration of MYR11,000,000 after taking into
account the past unsuccessful tenders conducted and the deadline
imposed by the Lenders as a condition for their support of the
Company's restructuring scheme.

The Land was acquired on September 16, 1996.  Motif Harta's
original cost of investment in the Property and its net book
value based on the audited financial statements for the
financial year ended June 30, 2005, is MYR60.1 million and
MYR20 million, respectively.

Meanwhile, the disposal proceeds of MYR11,000,000 will be
utilized to repay the Syndicated TL in order to obtain a
discharge of the existing charge from the Chargee in respect of
the Property after deducting all lawful outgoings due and
payable to the relevant authorities in respect of the Property,
if necessary.

More details pertaining to the Proposed Property Disposal is
available for free at:

     http://bankrupt.com/misc/tcrap_ayerhitam071806.pdf

                        About Ayer Hitam

Headquartered in Kuala Lumpur, Malaysia, Ayer Hitam Tin Dredging
Malaysia Berhad -- http://www.ahtin.com.my/-- is involved in  
property development and the trading of promotional products and
services in Malaysia.  The Company is also engaged in the
trading of uninterrupted power supply equipment and magnetic
fuel treatment systems and the provision of investment holding,
nominee services, hotel development and management and
renovation services.  The Company has been incurring huge losses
in the past years and has defaulted on several loan facilities.  
As of May 31, 2006, Ayer Hitam's payment defaults have reached
MYR40 million.  The Company has presented a restructuring
proposal, which was rejected by the Securities Commission after
determining that the Scheme is not a comprehensive proposal
capable of resolving all the financial issues faced by the
Company.   

The Proposed Restructuring Scheme includes provisions on:

     * capital reduction;
     * amendments to the company's Memorandum of Association;
     * rights issue;
     * private placement;
     * debt settlement; and
     * disposal of Motif Harta Sdn Bhd.


COMSA FARMS: Unveils 82.43% Public Shareholding Level
-----------------------------------------------------
Comsa Farms Berhad's public shareholding spread as of June 30,
2006 is 82.43% comprising 2,826 public shareholders holding not
less than 100 shares each.

Consequently, the Company complied with the public shareholding
spread requirement pursuant to the Listing Requirements 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 Comsa Farms Berhad

Headquartered in Sabah, Malaysia, Comsa Farms Berhad engages in
the wholesale and retail of fresh and frozen chicken products,
meat and foodstuff.  Its other activities include livestock,
aqua feed milling, poultry feeding, hatchery operations, and
layer farming.

On April 10, 2006, the Company was declared a Practice Note 17
company by Bursa Malaysia due to a stockholders' equity deficit.
As an affected listed issuer, Comsa Farms is required to submit
a plan to regularize its financial condition.

The Company's balance sheet as of March 31, 2006, showed total
assets of MYR200,072,000 and total liabilities of MYR273,643,000
resulting into a stockholders' deficit of MYR73,571,000.


CONSOLIDATED FARMS: Public Shareholding Spread Pegged at 47.10%
---------------------------------------------------------------
The public shareholding spread of Consolidated Farms Berhad as
of June 30, 2006, stands at 45.84% of the total shareholding in
the hands of 1,431 public shareholders.

Hence, the Company has complied with Bursa Malaysia Securities
Berhad's public shareholding rule, which 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 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.


FOREMOST HOLDINGS: Public Shareholders Hold 26.55% Shares
---------------------------------------------------------
Foremost Holdings Berhad has fully complied with Paragraph 8.15
of the Bursa Malaysia Securities Berhad's Listing Requirements
wherein a listed issuer must ensure that at least 25% of the
total listed shares are in the hands of a minimum of 1,000
public shareholders holding not less than 100 shares each.

As of June 30, 2006, 26.55% of Foremost shares were held by
44,836 shareholders holding not less than 100 shares each.

                  About Foremost Holdings Berhad

Foremost Holdings Berhad manufactures and sells automobile
speakers, home audio speakers, general-purpose speakers and
speaker wooden cabinets.  The Company is also engaged in the
trading of auto accessories, investment holdings and the
provision of management services.  Products are distributed in
Malaysia, Singapore, United Kingdom, Italy, Taiwan, the United
States, other Asian countries, other European countries and
other countries.  Foremost was classified as an affected listed
issuer under Bursa Malaysia Securities Berhad's Practice Note 17
because it has "insufficient financial position to warrant
continued listing".  As an affected issuer, the Company and is
required to draft a plan to regularize its finances to avoid
being delisted from the Official List.


KIG GLASS: Public Spread Meets Listing Requirement
--------------------------------------------------
The public shareholding spread of KIG Glass Industrial Berhad as
of June 30, 2006, is 27.18% comprising of 4,430 public
shareholders holding not less than 100 shares each.

Consequently, the Company has complied with the level of public
shareholding spread as prescribed under the Listing Requirements
of Bursa Malaysia Securities Berhad.

                  About KIG Glass Industrial

Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass
Industrial Berhad -- http://www.kedaung.com/-- manufactured and  
sold glassware, glass blocks and carton boxes.  The firm's other
activities included manufacturing of ceramic roof tiles.  Its
operations were carried out in Malaysia and China.  Due its
inability to pay its debts, the Company ceased operation in May
2005.

As of December 31, 2005, the KIG Group's accumulated losses
stood at almost MYR300 million.  The shareholders' funds of the
KIG Group was in deficit of approximately MYR93 million while
its total borrowings amounted to approximately MYR104 million.  
The Company's board of directors has formed the opinion that the
Group is insolvent as of March 31, 2006.


MALAYSIA AIRLINES: Travel Blackboard Sees Bright Outlook
--------------------------------------------------------
Despite the turbulent airline industry, the future for Malaysia
Airlines is looking bright basing on the success of the
carrier's various turnaround initiatives and strategies, global
industry newsletter Travel Blackboard relates.

The airline had been operating under significant losses in the
previous years, Travel Blackboard notes.  In fiscal 2005, rising
oil prices and staff costs contributed to the increase in input
costs, which led to a loss of MYR1.26 million.

Malaysia Airlines managing director Indris Jala, who was
appointed in December 2005, has announced a business turnaround
plan in February this year to take the Company back to
profitability by 2008, according to the report.  Mr. Jala also
vowed to focus on improving yields and managing costs.

The airline implemented new measures such as tighter ticket
inventory control, increase of fuel surcharges and excess
baggage charge collection.  Current employees have also been
affected by the new plans, with a mutual separation scheme being
implemented to reduce the carrier's 23,000-strong workforce by
6,500.  In addition, a total of seven routes have been
terminated after they were deemed unprofitable by the airline,
the Travel Blackboard says.

Furthermore, Malaysia Airlines was accorded a five-star status
in 2005 by Startrax and gained entry into the Sky Team alliance.  
It also ranked among the top three for "Best Cabin Crew" and won
the Economy Class Services Excellence award for 2006, Travel
Blackboard adds.

                     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.


MERCES HOLDINGS: Faces Wind-Up Petition by Southern Bank
--------------------------------------------------------
Merces Holdings is subject to a wind-up petition filed by
Southern Bank Berhad.

The wind-up application, which was presented before the High
Court of Kuala Lumpur on June 21, 2006, is scheduled for hearing
on September 27, 2006.

On June 10, 2005, Southern Bank served Merces Holdings a
Statutory Notice demanding that Merces repay the judgment sum of
MYR9,441,743 arising from the recall of overdraft facilities and
revolving credit facilities granted by Southern Bank to Merces.  
Southern Bank later filed the wind-up petition on grounds that
Merces had failed and neglected to satisfy the claim since the
Statutory Notice was served.

The wind-up petition, if not struck off, will have a material
impact on the financial and operations aspects of Merces
Holdings.

Merces is currently negotiating with Southern Bank to
restructure the debt.  An announcement will be made once the
proposed restructuring of bank borrowing has been finalized.

                     About Merces Holdings

Merces Holdings Berhad's principal activities are the provision
of property development and building construction works.  The
Company's other activity include investment holding.  Operations
of the Group are predominantly carried out in Malaysia.  Merces
Holdings has defaulted on several loan facilities and had faced
winding-up petitions due to unsettled financial obligations.


PAXELENT CORPORATION: Public Shareholding Stands at 80.38%
----------------------------------------------------------
Paxelent Corporation Berhad disclosed its level of public
shareholding spread as of June 30, 2006, was 80.38% of its total
issued and paid-up share capital, of which 6,683 public
shareholders are holding not less than 100 shares.

As such, Paxelent 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 Paxelent Corporation

Paxelent Corporation is engaged in investment holding.  The
principal activities of the subsidiaries are property
investment, provision of information technology solutions,
investment holding, marketing and sale of hard disk drive
components.  The Company is a public limited liability company,
incorporated and domiciled in Malaysia, and is listed on the
Second Board of Bursa Malaysia Securities Berhad.

Despite booking in positive earnings, the Company has not met
the scheduled repayment obligations of Settlement Agreements
with several financial institutions arising from the
crystallization of corporate guarantees to the Company's former
subsidiaries, which had been wound up.  The Company's Board is
currently actively pursuing various restructuring schemes to
address the default.  These schemes would involve raising funds
through partial disposal of assets, potential debts waivers and
rescheduling of the debts.


PROTON HOLDINGS: Public Shareholding Spread Meets Requirement
-------------------------------------------------------------
Based on the record of depositors as of June 30, 2006, Proton
Holdings Berhad confirmed that its public shareholding spread
was 52.82% and were held by 5,283 public shareholders holding
not less than 100 shares each.

Thus, the Company has complied with the public shareholding
spread requirement pursuant to the Listing Requirements 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 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.


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

JG SUMMIT: Posts PHP3.88-Billion Net Income in 1st Quarter 2006
---------------------------------------------------------------
JG Summit Holdings Inc. posted a net income of PHP3.88 billion
in the quarter ended March 31, 2006, showing a 417% increase
from the PHP750.4-million net income in the quarter ended
March 31, 2005.

According to the Company, the significant increase was boosted
by the gain derived from the offering of subsidiary Universal
Robina Corporation's common shares in February 2006.  Excluding
this, net income still increased by 17.7% from PHP573.2 million
in the first quarter of 2005 to PHP674.8 million in the first
quarter this year.

Consolidated revenues were up by 45.9%, from PHP16.13 billion in
the first quarter last year to PHP23.54 billion for the first
quarter this year.  The substantial growth was driven by the
continued improvement in sales and revenues of core businesses
-- foods and real estate development -- and the revenue
contribution of the petrochemical arm.

Gross profit for the first quarter of 2006 amounted to
PHP5.50 billion, higher by 13% from the PHP4.85 billion in the
corresponding quarter last year.  Operating expenses went up
24.5% from PHP3.99 billion in the first quarter of 2005 to
PHP4.97 billion in the current year's first quarter due to
higher costs of operating the mobile phone and air
transportation segments as well as the expansion of the
Company's foods business into regional operations.

Financing costs and other charges incurred for the first quarter
was up by 37.3%, to PHP2.25 billion from PHP1.64 billion last
year.  The increase in level of the Company's financial debt
contributed to higher finance cost this year.

As of March 31, 2006, the company's balance sheet remains solid,
with consolidated assets of PHP213.59 billion from
PHP201.23 billion as of December 31, 2005.  Total liabilities
stood at PHP130.74 billion as of March 31, 2006.

Total current assets stood at PHP86.15 billion as of March 31,
2006, higher than the PHP76.30 billion recorded at the end of
the previous quarter.  Total current liabilities, on the other
hand decreased to PHP52.65 billion as of March 31, 2006.

JG Summit's financial report for the first quarter 2006 is
available for free at:

   http://bankrupt.com/misc/JG_SUMMIT_1Q2006.pdf

                    About JG Summit Holdings

JG Summit Holdings Inc. is engaged in manufacturing and
distributing food and agro-industrial products and commodities;
development, leasing and management of real estate and hotels;
manufacturing and exporting textiles; provision of voice and
data telecommunication services; manufacturing of polypropylene,
polyethylene and other industrial chemicals; operation of thrift
bank and foreign exchange and securities dealing; provision of
air transport services both domestic and international and other
supplementary businesses like manufacturing of printed circuit
boards; air charter services, power generation, printing
services, Internet-related services, packaging materials,
insurance brokering and securities investment.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
April 12, 2006, Standard & Poor's Ratings Services assigned its
B+ corporate credit rating to JG Summit, with a stable outlook.  
At the same time, Standard & Poor's assigned its B+ rating to
the US$300 million 8% unsecured notes due 2013 issued in January
2006 by JGSH Philippines Limited, a special purpose vehicle
wholly owned by JG Summit.  The notes are irrevocably and
unconditionally guaranteed by JG Summit.  


NATIONAL POWER: ERC OKS Rate Adjustments
----------------------------------------
The Energy Regulatory Commission has allowed National Power
Corp. to implement new power rates that reflect the generation
rate adjustment mechanism and incremental currency exchange rate
adjustment for the period from April 2005 to October 2005, the
Philippine Star reveals.

According to ABS-CBN News, the approval will enable Napocor to
recover a deferred adjustment of:

   -- PHP0.4170 per kilowatt-hour for the Luzon power grid, to
      be recovered in nine months;

   -- PHP0.3203 per kWh for the Visayas region recoverable in
      five months; and

   -- PHP0.5048 per kWh for the Mindanao grid recoverable in 16
      months.

For the ICERA, the Manila Times says, Napocor will collect
PHP0.5179 per kWh in Luzon for debt service and operation
expenses, actual payments of capacity and infrastructure fees,
PHP0.1784 per kWh in the Visayas region and negative PHP0.0155
in Mindanao, recoverable within eight to 24 months.  The ERC did
not say why the charge for the Mindanao grid was negative, the
Times says.

Napocor filed the petition for the new rates on April 18, 2006,
and could have automatically implemented them on June 2, 2006,
since the ERC had "failed to act" on the petition within a
required 45-day period, as set by Section 5, paragraph 5 of the
implementing rules of the GRAM and ICERA.

However, the Star says, the ERC had extended the resolution for
45 days since the 45-day deadline set by the implementing rules
did not apply as Section 11 of the implementing rules provides
for a three-month recovery period.  Napocor had applied for a
seven-month recovery period, and the ERC needed more time to
consider the matter.

                   About National Power Corp.

Headquartered in Quezon City, Philippines, National Power
Corporation -- http://www.napocor.gov.ph/-- is a state-owned  
utility that builds and operates nuclear, hydroelectric,
thermal, and alternative power generating facilities.  It works
with independent producers under a build-operate-transfer
program.  With a generating capacity of more than 11,500
megawatts, Napocor sells electricity to distributors and
industrial companies.  To comply with the privatization bill
approved by the Philippine Congress, the Company has begun
selling off its generation assets to help pay for its estimated
debt of PHP600 billion.  It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.

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

The Government absorbed National Power's PHP200 billion debt,
which was incurred when the government-owned-and-controlled
corporation adopted international accounting standards, forcing
the Company to report its foreign exchange losses.

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


PACIFIC PLANS: SEC Looks to Approve License to Sell Securities
--------------------------------------------------------------
The Securities & Exchange Commission is considering the approval
of a license for pre-need firm Pacific Plans, Inc., to sell
securities, pending compliance with all requirements, the
Philippine Inquirer reports.

According to SEC Commission Secretary Gerard Lukban, the Company
still has to finish its actuarial valuation report, which will
show its ability to meet obligations.

A pre-need firm must have adequate capital, high asset quality,
and must be able to meet maturing and future obligations before
it is granted a license to sell securities, the Inquirer says.

The Troubled Company Reporter - Asia Pacific reported that on
June 5, 2006, Pacific Plans had started to release
PHP140 million in tuition fee support for school year 2006-2007,
in compliance with a Makati Regional Trial Court decision
approving its rehabilitation plan.  According to PPI President
Alfredo J. Non, some 12,00 availing plan holders would receive
checks via courier, and all availing plan holders for the school
years 2006-2010 would get back a return on investment from 100%
to 2,000% aside from their original investments.

On May 8, 2006, Pacific Plans drew up the rehabilitation plan
based on this school year's average fees, plus tuition support
upon enrollment until the school year 2009-2010.  The benefits
of the Company's traditional education plans will become fixed-
value benefits as at Dec. 31, 2004, to be termed base year-end
2004 entitlement.  The Makati RTC had approved the Company's
rehabilitation plan in April 2006, ensuring tuition support from
2006-2010.


PHILIPPINE LONG DISTANCE: Posts PHP9-Bil 1st Quarter Net Income
---------------------------------------------------------------
Philippine Long Distance Telephone Co. posted a net income of
PHP8.77 billion in the first quarter of 2006, a 5% decrease from
PHP9.24 billion in the same quarter of 2005, the Troubled
Company Reporter - Asia Pacific learns from the Company's 17Q
filing with the Philippine Stock Exchange.

The company registered total revenues and other income of
PHP30.88 billion in the first quarter of 2006, an increase of
PHP735 million, or 2%, as compared with the PHP30.14 billion in
the same period in 2005, primarily due to an increase in service
revenues of PHP700 million and other income of PHP141 million,
partially offset by a decline in non-service revenues of
PHP106 million.

Expenses increased by PHP2.17 billion, or 12%, to
PHP19.60 billion in the first quarter of 2006 largely due to
increases in depreciation and amortization, and financing costs
partly offset by lower cost of sales.

Revenue from the company's wireless division was pegged at
PHP19.70 billion, increasing from PHP18.62 billion the year
before.  Fixed line and ICT revenues for the first quarter of
2006 also increased to PHP12.27 billion and PHP872 million,
respectively.

PLDT's balance sheet as of March 31, 2006, shows strained
liquidity, with PHP54.19 billion in current assets, compared
with PHP61.83 billion in current liabilities.

The company's March 31 balance sheet also showed total assets
amounting to PHP251.11 billion, and total liabilities equal to
PHP174.36 billion.

PLDT's financial report for the quarter ended March 31, 2006,
filed with the Philippine Stock Exchange, is available for free
at: http://bankrupt.com/misc/PLDT_1Q2006.pdf

          About Philippine Long Distance Telephone Co.

Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading  
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.

                          *     *     *

Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT.  Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.  

Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+.

Fitch Ratings gave PLDT's long term foreign currency issuer
default and senior unsecured debt both a BB rating.


PHILIPPINE LONG DISTANCE: Subsidiary Buys SPi for US$159 Million
----------------------------------------------------------------
Philippine Long Distance Telephone Company's wholly owned
subsidiary, ePLDT Inc., has completed the acquisition of 100% of
SPi Technologies, Inc., and its direct and indirect Philippine
and offshore subsidiaries, in a US$158.8-million deal, PLDT said
in a press release.

ePLDT bought 100% of the shares of SPi Technologies, a
Philippine company, from Spi's sole shareholder, SPi Tech L.P.,
for a total consideration of US$135.34 million cash.  As part of
the transaction, ePLDT also acquired a US$7 million debt owed by
SPi to the Seller at face value.

In addition, ePLDT advanced US$16.43 million to SPi in order for
SPi to fully pay its debt owed to DBS Bank Singapore.  ePLDT
intends to have this debt refinanced by SPi in due course.

ePLDT is the Information and Communications Technology arm of
the PLDT Group.

The acquisition of SPi, together with ePLDT's existing Ventus
call center group, creates the industry's foremost business
process outsourcing services provider with the necessary
operating scale and financial strength to invest consistently
and aggressively in innovation, while continuing to provide
world-class customer service and support to clients.

"We are proud to complete the acquisition of SPi.  SPi's well-
established presence in the U.S. and its domain expertise in a
variety of service verticals will give us a unique opportunity
to increase our participation in the growing base of the global
outsourcing and off-shoring market.  This acquisition also
manifests our commitment to make the Philippines one of the
leading business process outsourcing locations in the world and
our abiding faith in the capabilities of the Filipino workers,"
Ray C. Espinosa, President & Chief Executive Officer of ePLDT,
said.

Ernest L. Cu, President & Chief Executive Officer of SPi said,
"The management team is very supportive of this acquisition and
quite excited about this new phase in SPi's history.  Global
2000 companies now prefer full service companies who can deliver
a broad range of both voice and non-voice services across
multiple countries.  With ePLDT's call center capabilities, IT
infrastructure and financial resources; we will be among a
select few in the world who can execute on these opportunities."

As of May 31, 2006, SPi has 6,500 employees and approximately
4,200 seats worldwide.  Combined with its Ventus call center
group, ePLDT now has over 11,000 employees and about 8,300 seats
in its BPO/call center operations.  The ePLDT Ventus Group
operates seven call center facilities located in Makati, Taguig,
Pasig, Mandaluyong, Quezon City and Iloilo, rendering primarily
voice-based services to large U.S.-based clients and
outsourcers.

                          About SPi

SPi is the 2nd largest pure-play BPO company and the 9th largest
independent BPO service provider worldwide.  It has operations
in 19 locations in North America, Europe and Asia.  Its
customers include Fortune 100 companies, non-profit
organizations and government agencies in the financial services,
healthcare, legal and publishing markets.  SPi services these
customers onsite, and from facilities in the Philippines, India,
United States, China (25% ownership) and Vietnam (outsourced).

          About Philippine Long Distance Telephone Co.

Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading  
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.

                          *     *     *

Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT.  Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.  

Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+.

Fitch Ratings gave PLDT's long term foreign currency issuer
default and senior unsecured debt both a BB rating.


PHILIPPINE LONG DISTANCE: Sees Better Earnings in 2nd Quarter
-------------------------------------------------------------
Philippine Long Distance Telephone Co.'s earnings in the second
quarter to June 2006 exceeded year-ago levels, the Philippine
Daily Inquirer reports, citing PLDT Chairman Manuel Pangilinan.

"The numbers are definitely ahead of last year and ahead of the
first quarter," Mr. Pangilinan said without elaborating.  

According to the PDI, Mr. Pangilinan said that there would be no
exceptional gains this year unlike last year when PLDT booked
close to PHP5 billion in one-time gains.  PLDT's net profit in
the first quarter to March stood at PHP8.6 billion, down 7%
year-on-year, he said.  Core earnings in the second quarter of
2005 amounted PHP8 billion.

          About Philippine Long Distance Telephone Co.

Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph-- is the leading  
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.

                          *     *     *

Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT.  Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.  

Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+.

Fitch Ratings gave PLDT's long term foreign currency issuer
default and senior unsecured debt both a BB rating.


PHILIPPINE LONG DISTANCE: CEO Unveils JV Plans
----------------------------------------------
Philippine Long Distance Telephone Co. plans to enter a joint
venture with EchoStar Communications Corp. and GV Broadcasting
Systems Inc. to offer a direct-to-home satellite pay television
service in the Philippines, the Philippine Daily Inquirer
states.

PLDT Chairman Manuel Pangilinan disclosed that PLDT might spend
around US$68 million for the Joint Venture.

EchoStar is a DTH satellite TV operator in the United States
while GV Broadcasting has a nationwide license to offer
satellite TV services.

          About Philippine Long Distance Telephone Co.

Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph-- is the leading  
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.

                          *     *     *

Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT.  Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.  

Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+.

Fitch Ratings gave PLDT's long term foreign currency issuer
default and senior unsecured debt both a BB rating.


SAN MIGUEL: Operating Income Up 49% in 1st Quarter 2006
-------------------------------------------------------
San Miguel Corp. will focus on delivering growth and
sustainability in revenues, earnings and return on capital for
2006 and in the next few years, according to its Chairman &
Chief Executive Officer Eduardo M. Cojuangco Jr.

Reporting on SMC's 2005 performance, Mr. Cojuangco stressed at
the Company's annual meeting on May 9, 2006, that the Company's
priorities now are to sustain all the gains it has achieved over
the last eight years and build on these successes.  "Our current
results provide us with a solid base for future growth," he
assured the Company's stockholders.

San Miguel's consolidated revenue in 2005 rose to
PHP227 billion, 30% higher than 2004, whereas operating income
was at par from the previous year at PHP17.5 billion, despite
higher overall production costs.

Excluding one-off items related to the purchase of National
Foods Ltd., SMC's net income would have increased by 8% in 2005.  
With net financing charges of PHP6.89 billion and a one-time
expense associated with the National Foods acquisition, San
Miguel's consolidated net income attributable to equity holders
of parent amounted to PHP9.03 billion, an increase of 2%.

"The manner in which we ended 2005 gives us confidence as we
move further into 2006," Mr. Cojuangco said.  "San Miguel is a
more focused, more agile business, more responsive to consumer
needs, with a clear strategy to create value and sustainable
growth."

San Miguel's consolidated net sales revenue for the first three
months of 2006 reached PHP60.8 billion, 29% higher than in 2005.  
This was achieved with the consolidation of National Foods and a
13% volume growth in SMC's food and agribusiness.  Consolidated
operating income reached PHP5.49 billion, 49% higher than last
year, while consolidated first quarter net income was 7% above
last year at PHP2.17 billion.

Mr. Cojuangco was positive about the Company's growth
opportunities, particularly in the food business.  "It's very
solid, a relatively large business and very profitable and
National Foods has opened a whole new set of opportunities for
us, providing scale and huge possibilities for innovation and
category extension," he noted.

Recognizing the tremendous potential in the soft beverage
business particularly in the categories of juice, tea and
functional drinks, Mr. Cojuangco said SMC built up its
capability overseas in this business segment.  "In fact, we have
two plants on stream in Indonesia and Thailand, with two other
plants in South China and Vietnam soon to follow," he disclosed.  
"We've already developed several brands and products to roll-out
which will compete in the iced tea, carbo-natural and carbonated
soft drinks segments and while entering the regional non-
alcoholic beverage market is something new to us, we're
confident these products will take hold among consumers."

To further accelerate gains across the SMC's business, Mr.
Cojuangco also emphasized the Company's continuous focus on cost
efficiency.  "We did our best to manage costs pressures with
solid programs to offset rising costs through productivity and
raw material substitution strategies," he said.

Among these efforts is a domestic raw material sourcing program
expected to save significant amount of foreign exchange when
fully implemented.  Likewise, Mr. Cojuangco said SMC programs
are underway to encourage more efficient supply chain
manufacturing, and trade and media spending.  "The potential
savings from programs such as these would allow us to invest
behind innovation and brand building," he added.

                      About San Miguel Corp.

Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,  
operates food, beverage and packaging businesses.  The Company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products.  San Miguel markets its
products both in the domestic and overseas markets.  The Company
also manufactures glass, metal, plastic, paper and composites
packaging products.

A Troubled Company Reporter - Asia Pacific report on April 20,
2006, stated that Moody's Investors Service put a (P)Ba3  
foreign currency rating on the proposed preferred stock issuance
of San Miguel Corp. subsidiary San Miguel Capital Funding
Limited.  Moody's also placed a Ba1 local currency corporate
family and indicative foreign currency senior unsecured rating
on the Company.  

Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by its
subsidiary San Miguel Capital Funding Limited.


SAN MIGUEL: May Sell 49% of National Foods Unit
-----------------------------------------------
San Miguel Corp. may sell 49% of its Melbourne, Australia-based
unit, National Foods Ltd., Bloomberg News relates.

San Miguel Vice Chairman Ramon Ang said that there are parties
interested in National Foods, and that San Miguel "may consider"
selling 49% of its stake.

Bloomberg recounts that the Company bought National Foods for
PHP73.75 billion in June 2005 as part of a PHP189.64-billion
expansion program, which started in 2000.

Bloomberg explains that acquisitions at home and abroad to cut
San Miguel's reliance on beer and the domestic market have
inflated its debts and raised financing costs.

The Company's expansion binge stalled profit growth in 2005 to
1.9%, its slowest pace in four years, because of higher
financing costs from its acquisitions.  San Miguel Chairman
Eduardo Cojuangco's investments at home and abroad inflated San
Miguel's debt to PHP200 billion at the end of 2005, compared
with PHP76.1 billion in 2000.  About 46% of the debt is due
within a year or less.

Responding to a media report, the Company told the Philippine
Stock Exchange that it is studying offers for shares in the
Australian dairy company and is yet to make a decision.  Morgan
Stanley has been tapped to gauge investor demand for shares in
National Foods, the Bloomberg report added.  The proceeds of the
shares sale may be used for debt servicing.

                      About San Miguel Corp.

Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,  
operates food, beverage and packaging businesses.  The Company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products.  San Miguel markets its
products both in the domestic and overseas markets.  The Company
also manufactures glass, metal, plastic, paper and composites
packaging products.

A Troubled Company Reporter - Asia Pacific report on April 20,
2006, stated that Moody's Investors Service put a (P)Ba3  
foreign currency rating on the proposed preferred stock issuance
of San Miguel Corp. subsidiary San Miguel Capital Funding
Limited.  Moody's also placed a Ba1 local currency corporate
family and indicative foreign currency senior unsecured rating
on the Company.  

Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by its
subsidiary San Miguel Capital Funding Limited.


SAN MIGUEL: In Talks to Sell Bottling Stakes to Coke
----------------------------------------------------
San Miguel Corp. is in talks with Coca-Cola Co. regarding Coca-
Cola's bid to take control of Coca-Cola's bottling operations in
the Philippines, Bloomberg News reports.

San Miguel currently holds 65% of the venture, with the
remaining 35% owned by Coca-Cola.  Coca-Cola aims to gain a
majority stake in, and management and operational control of the
bottling operation.  The Philippine Daily Inquirer, citing
estimates from Macquarie Research Equities, says that San Miguel
stands to gain PHP57.95 billion if it sells its entire stake.

Bloomberg states that San Miguel vice chairman Ramon Ang had
said in April that Coca-Cola Bottlers "is having problems"
partly because Coca-Cola is priced at a fifth more than some
rival drinks.  Coca-Cola's operating income fell 63% last year
as sales of Coca-Cola brand products, as well as juice and
bottled water, dropped 7% to PHP39.8 billion.

On the other hand, San Miguel's debts totaled PHP127 billion,
PHP41 billion of which were current as of March 31, 2006.  Its
interest expenses in the first quarter were up 26% year-on-year
to PHP2.49 billion, the Inquirer report says.

The Bloomberg report adds that the bottling company contributed
some 15% of San Miguel's PHP226.7 billion gross revenue last
year, and accounted for 5% of its operating income.  Coca-Cola
said in February that the Philippine business would "remain
weak" this year.

                      About San Miguel Corp.

Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,  
operates food, beverage and packaging businesses.  The Company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products.  San Miguel markets its
products both in the domestic and overseas markets.  The Company
also manufactures glass, metal, plastic, paper and composites
packaging products.

A Troubled Company Reporter - Asia Pacific report on April 20,
2006, stated that Moody's Investors Service put a (P)Ba3  
foreign currency rating on the proposed preferred stock issuance
of San Miguel Corp. subsidiary San Miguel Capital Funding
Limited.  Moody's also placed a Ba1 local currency corporate
family and indicative foreign currency senior unsecured rating
on the Company.  

Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by its
subsidiary San Miguel Capital Funding Limited.


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

AUDRICH INTERNATIONAL: Intends to Pay Dividend to Creditors
-----------------------------------------------------------
Audrich International (Pte) Ltd notifies parties-of-interest of
its intention to pay dividend as ordered by the High Court of
Singapore.

Creditors are requested to file their proofs of claim by
July 28, 2006, for them to share in the dividend distribution.

The liquidator can be reached at:

         The Official Receiver
         The URA Centre (East Wing)
         45 Maxwell Road #06-11
         Singapore 069118


COMRICH PETROLEUM: Undergoes Wind-Up Proceedings
------------------------------------------------
Chinaoil (Hong Kong) Corporation on July 7, 2006, filed before
the High Court of the Republic of Singapore an application to
wind up Comrich Petroleum & Chemicals Pte Limited.

Creditors are subsequently required to file their proofs of
claim to the liquidator.

The liquidator can be reached at:

         The Official Receiver
         Insolvency & Public Trustee's Office
         45 Maxwell Road #05-11/#06-11
         The URA Centre (East Wing)
         Singapore 069118


DIGILAND INTERNATIONAL: Issues New Rights Shares and Warrants
-------------------------------------------------------------
Digiland International Limited has on July 17, 2006, allotted
and issued 696,296,013 rights shares and 2,785,184,052 warrants
pursuant to its rights issue.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company has received valid acceptances and excess applications
for a total of 1,382,952,319 Rights
Shares with 5,531,809,276 Warrants as of the Book Closure Date
on July 110, 2006.

The Rights Shares and Warrants will be listed and quoted on the
Singapore Securities Trading Limited on July 18, 2006, and
July 19, 2006, respectively.

            About Digiland International Limited

Digiland International Limited -- http://www.digiland.com.sg/--  
is a major distributor of IT products and provider of IT
services in the Asia-Pacific.  The Digiland International group
of Companies was set up initially as the distribution arm of GES
International Limited to handle sales, marketing and
distribution of GES products, specifically the Datamini brand of
Personal Computer, designed and manufactured by GES
International Limited.  It was renamed Digiland International
Private Ltd in 1998 and has since expanded geographically to
cover most countries in Asia-Pacific.  The Company has been
reporting a string of losses in the recent years due to the
negative impact of the highly cyclical nature of the computer
industry.  Sales were adversely affected by the shortening
product cycles of IT products and downward pressure on selling
prices as newer and more technologically advanced products enter
mass production.  Aside from recurring losses, the Company's
subsidiaries have also been bombarded by wind-up petitions filed
by creditors.


KOREA LEASING: Creditors and Contributories to Hold Meetings
------------------------------------------------------------
The creditors and contributories of Korea Leasing (Singapore)
Pte Ltd will hold their meetings on August 4, 2006, at 10:00
a.m. and 2:00 p.m. respectively.

During the meeting, they will be asked to:

   -- accept the resignation of Wee Aik Guan as the Company's
      liquidator and release him from all liability in respect
      of the wind-up;

   -- approve the summary of receipts and payments in the
      winding up in accordance with Form 68 together with Form
      66;

   -- allow the liquidation to continue until December 31,
      2006, while assessing further dividend payments from the
      Company's overseas debtors; and

   -- authorize the liquidators to distribute the fund that is
      currently available, write off the remaining assets and
      proceed to finalize the liquidation of the Company.

The Liquidators can be reached at:

         Chaly Mah Chee Kheong
         Wee Aik Guan
         c/o Deloitte & Touche
         6 Shenton Way #32-00
         DBS Building Tower Two
         Singapore 068809


MAE ENGINEERING: Inks Exclusive Agreement with Lereno
-----------------------------------------------------  
Mae Engineering Limited has signed an exclusive Memorandum of
Understanding with Lereno Sdn Bhd.  

The agreement aims for cooperation to provide management and
technological services for developing and constructing bio-
diesel production plants of up to 150,000 tonnes capacity each
especially for one in Singapore.

The MOU is in response to enquiries received by Lereno recently
and calls for the two companies to start working exclusively
together to build bio-diesel plants.  The bio-diesel from the
Singapore plant will be designated for the markets of Europe,
Japan and Korea.  Such plants will be designed to utilize
Lereno's proprietary "winterization" technology so that the
products will be able to meet the strict European Union
Standards required for those markets.

Furthermore, the MOU is independent of the on-going process of
negotiations and finalization of the formal agreement for the
Company to purchase from Eligro Sdn Bhd a 38%-share in Lereno.

As reported by the Troubled Company Reporter - Asia Pacific, on
July 17, 2006, the purchase agreement between the Company and
Eligro Sdn Bhd is already in the advanced stage.

              About MAE Engineering Limited

Headquartered in Singapore, MAE Engineering Limited is engaged
in the provision of integrated electrical and mechanical
engineering services including designing, planning and
procurement.  These services are categorized into electrical
installations, mechanical installations, electrical power supply
installations, instrumentation and building automation as well
as maintaining electrical and mechanical systems.  The Group
also offers consulting and specialist services to oceanariums
and aquariums.  The Group has disposed off its prawn and fish
farming as well as edutainment businesses, after suffering
accumulated losses of SGD48 million as of September 30, 2005.  
The Company also suffered a liquidity crunch since September 30,
2005, when its total current liabilities of SGD23,695,000
exceeded its total current assets of SGD5,582,000.

As of March 31, 2006, the Company's balance sheet showed
SGD7,404,000 in total assets and SGD27,257,000 in total
liabilities, resulting in a SGD19,853,000 stockholders' equity
deficit.  The Company's March 31 balance sheet also revealed
strained liquidity with SGD6,346,000 in total current assets
available to pay SGD27,200,000 in total current liabilities
coming due within the next 12 months.


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

* NESDB Cuts '07 Investment Budget for State-Owned Businesses
-------------------------------------------------------------
The board of the National Economic and Social Development Board
agreed to trim down the Government's budget allocation for state
enterprises for the fiscal year 2007 to THB338.86 billion from
the proposed THB352.08 billion, The Nation reports.

Ampon Kittiampon, secretary-general of NESDB, said that the
decision was made in order to prioritize spending on projects
that were earlier approved by the Cabinet, including energy
projects.

Moreover, Mr. Kittiampon told The Nation that NESDB would also
be following the performance of each state enterprise, including
profits and losses, to see if any should be shut down or
privatized.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
July 20, 2006
Turnaround Management Association - Australia
Queensland launches TMA Australia in Brisbane Australia
Brisbane Club, Brisbane, Australia
Telephone: 0438-653-179
e-mail: tma_aust@bigpond.net.au

July 26, 2006
Beard Audio Conferences
Distressed Market Opportunities
Audio Conference
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/

July 26, 2006
Insolvency Practitioners Association Of Australia
Afternoon Seminar and Dinner
Perth Convention Centre, The Esplanade,
Perth, Australia
Web site: http://www.ipaa.com.au/

July 27, 2006
Turnaround Management Association - Australia
TMA-ANZ Great Debate Australia
Bondi Room, Sydney,
Australia
Telephone: 0438-653-179
e-mail: tma_aust@bigpond.net.au

August 3, 2006
Beard Audio Conferences
Homestead Exemptions under BAPCPA
Audio Conference
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/

August 9, 2006
Turnaround Management Association
Professional Development Meeting
Sydney, Australia
Telephone: 0438 653 179
Web site: http://www.turnaround.org/

August 9, 2006
Turnaround Management Association - Australia
PD Meeting - Panel - Work Choices Australia
Sydney, Australia
Telephone: 0438-653-179
e-mail: tma_aust@bigpond.net.au

August 17, 2006
Insolvency Practitioners Association Of Australia
Study Group Meetings
Chartered Accountants House, Sydney,
Australia
Telephone: 9416-2395
e-mail: amanda_taylor@aapt.net.au

September 8-9, 2006
American Bankruptcy Institute
International Insolvency Symposium
London, England
Web site: http://www.turnaround.org/

September 13, 2006
Turnaround Management Association - Australia
Networking Function Australia
Parramatta, Australia
Telephone: 0438-653-179
e-mail: tma_aust@bigpond.net.au

September 21, 2006
Insolvency Practitioners Association Of Australia
Study Group Meetings
Chartered Accountants House, Sydney,
Australia
Telephone: 9416-2395
e-mail: amanda_taylor@aapt.net.au

September 26-27, 2006
American Bankruptcy Institute
Airline Restructuring
Helmsley Park Lane Hotel, New York, NY
Telephone: 1-703-739-0800
Web site: http://www.abiworld.org/

October 5, 2006
Turnaround Management Association - Australia
UTS Fundamentals of Turnaround Management Australia
Mecure Hotel - Haymarket
Telephone: 0438-653-179
e-mail: tma_aust@bigpond.net.au

October 11, 2006
INSOL
INSOL Lenders, Australia Technical Day
Brisbane, Australia
Web site: http://www.insol.org/

October 11-14, 2006
Turnaround Management Association - Australia
2006 Annual Convention
JW Marriott Grande Lakes, Orlando, FL
e-mail: livaldi@turnaround.org

October 11, 2006
Turnaround Management Association - Australia
Professional Development Meeting Australia
TBA
Telephone: 0438-653-179
e-mail: tma_aust@bigpond.net.au

October 12, 2006
Insolvency Practitioners Association Of Australia
IPAA National Conference 2006
Stamford Plaza, Brisbane City,
Queensland, Australia
Telephone: 07-3367-0500
e-mail: corinne.templeton@invigorate.com.au

October 12, 2006
Turnaround Management Association - Australia
UTS Fundamentals of Turnaround Managment Australia
Melbourne Australia
Telephone: 0438-653-179
e-mail: tma_aust@bigpond.net.au

October 19, 2006
Insolvency Practitioners Association Of Australia
Study Group Meetings
Chartered Accountants House, Sydney,
Australia
Telephone: 9416-2395
e-mail: amanda_taylor@aapt.net.au

October 31 - November 1, 2006
International Women's Insolvency & Restructuring Confederation
IWIRC Annual Conference
San Francisco, CA
Web site: http://www.iwirc.com/

November 9-10, 2006
Turnaround Management Association - Australia
TMA Australia National Conference Australia
TBA
Telephone: 0438-653-179
e-mail: tma_aust@bigpond.net.au



                            *********


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.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
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Information contained herein is obtained from sources believed
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                 *** End of Transmission ***