TCRAP_Public/060720.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

             Thursday, July 20, 2006, Vol. 9, No. 143

                            Headlines

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

AIR BORN: Members & Creditors to Hear Wind-Up Report on July 24
ALLWOOD BATHROOM: Bank Appoints Receiver and Manager
ANJ HOLDINGS: Liquidator Albarran to Present Wind-Up Report
AUSSIE FIRST AID: To Declare First Dividend on July 31
AWB LIMITED: Court Delays Cole Access to AWB Secret Documents

BALDIVIS ENTERPRISES: Members Agree on Voluntary Wind-Up
BS & L PTY: Intends to Final Dividend on July 26
CAPITAL FOODS: Hugh Martin Named Liquidator
CBW IMPORTS: To Declare Dividend on July 25
CHAMPAIGN INTERNATIONAL: Winds Up Business Operations

CHARM LOGGING: Faces Liquidation Proceedings
D BRADFORD PTY: Members to Hear Wind-Up Details on July 25
D'ANGELO & KEZIC: Creditors to Receive Second and Final Dividend
ELIO INDUSTRIES: Appoints Joint Liquidators
F.J. HORNER: Dividend Declaration Slated for July 25

FORTESCUE METALS: Net Assets Increased for Year Ended June 30
FORTESCUE METALS: Signs US$400 Mln Investment Deal with Leucadia
HYUNDAI AUTO: Federal Court Issues Wind-Up Order
LC TAYLOR: Members to Receive Liquidator's Report on July 24
LEGIT MUSIC: To Declare Dividend for Unsecured Creditors

MARKET LINKED: Undergoes Voluntary Liquidation
P & N BUTTERFIELD: Members Appoint Official Liquidator
RICHARDSON REMOVALS: Creditors to Receive Dividend on July 29
S1 AUSTRALIA: Members to Convene on July 24
SAFE LIFTS: Joint and Several Liquidators Named

SAMDA DEVELOPMENTS: Receivers Cease to Act for Company
TERRITORY CHIEF: Receivers and Managers Step Aside
TOUCH A CLASS: Liquidator Pattison to Present Wind-Up Report
TRACKER MARINE: Enters Wind-Up Proceedings
W A STONEY: Members' Final Meeting Set on July 26

WOLLONGONG FREIGHT: To Declare First and Final Dividend


C H I N A   &   H O N G  K O N G

AXM PHARMA: Acquires 51% Interest in Drug Distributor
CHINA AVIATION: Former Senior Trader Fined HKD194,800
CHINA EASTERN: Mulls Stake Sale to Singapore Airlines
EVERGREEN TECHNOLOGY: Names Mok as Liquidator
ONWARD ELECTRICAL: Members Final Meeting Set August 4

POLYLION LIMITED: Court to Hear Wind-Up Bid on August 16
PROJECT SUPPLIES: Joint Liquidators Step Aside
SAIL VALUE: Final Members' Meeting Slated for August 14
SAMLANE DEVELOPMENT: Wind-Up Petition Hearing Fixed August 9
SWEETMART INTERNATIONAL: Appoints Official Liquidators

WORKPLACE COMPANY: To Pay First Dividend
YAN LUEN: Court to Hear Wind-Up Application on August 16
YINSON KNITTING: Wind-Up Petition Hearing Fixed on August 9
YUE CHEONG: Faces Wind-Up Proceedings


I N D I A

MYSORE CEMENTS: Forges JV Relationship with HeidelbergCement
TRAVANCORE RAYONS: Likely to Commence Revival by October 2006


I N D O N E S I A

PERUSAHAAN GAS: To Provide Gas Supply to Islands
PERUSAHAAN LISTRIK: Promises to Increase Supply to Islands


J A P A N

ALL NIPPON: Sets Up Joint Venture Firm with Rakuten Inc.
JAPAN AIRLINES: Seeks to Offer Cheap Fares for Domestic Flights
* Corporate Bankruptcies Fall 6% in June 2006


K O R E A

KYONGNAM BANK: Posts a KRW133 Billion Net Income for 2005
SK CORP: Discloses Future Business Plans
SK CORP: Enters European Exploration & Development Business
SK CORP: High Oil Prices Fuel Record Sales
SK CORP: Enters Joint Venture Deal with Indonesia's Pertamina

SK CORP: Signs Partnership with ExxonMobil
SK CORP: Opens Fourth BTX Facility
SK CORP: Incheon Oil to Revive Crude Unit
* High Oil Prices Take Toll on Firms


M A L A Y S I A

DATUK KERAMAT: Public Shareholding Level Pegged at 70.60%
FEDERAL FURNITURE: Public Shareholders Hold 59.24% Shares
GEORGE TOWN: Unveils 38.48% Public Shareholding Level
LANKHORST BERHAD: Files Amended First Quarter Report
LANKHORST BERHAD: Provides Default Status Update

MALAYSIA AIRLINES: Flying to Rome Five Times Weekly
MYCOM BERHAD: Public Shareholding Level Meets Requirement
NORTH BORNEO: Complies with Public Spread Requirement
OLYMPIA INDUSTRIES: Public Shareholding Stands at 71.35%
PANGLOBAL BERHAD: Revises Some Terms of Restructuring Scheme

PAXELENT CORPORATION: Unit Files MYR1-Mln Suit Against Dibena
TANCO HOLDINGS: Court Dismisses Stay Order Extension Request
TRU-TECH HOLDINGS: Public Holds 46.77% of Shares


P H I L I P P I N E S

ABS-CBN BROADCASTING: To Switch Off Analog TV For Digital
ABS-CBN BROADCASTING: California-Based Unit Upgrades Services
GLOBE TELECOM: Moody's Affirms Ba2 Foreign Currency Ratings
LEPANTO CONSOLIDATED: Board Okays Stock Rights Offer
NATIONAL POWER: Plans to Retain One-Day Power Sales Program

PHIL. LONG DISTANCE: Moody's Affirms Ba2 Foreign Currency Rating
PHILIPPINE NATIONAL BANK: Posts 35% Rise in Half-Year Profit
VICTORIAS MILLING: Deficit Narrows on PHP430-Million Net Profit


S I N G A P O R E

GEOCON PILING: Creditors Set to Meet on July 31
GULFEAST SHIPPING: Pays Dividend to Creditors
RESPONSIVE LEASING: Accepting Proofs of Debt Until July 28
SAN HOE: Creditors' Proofs of Claim Due on August 14


T H A I L A N D

PICNIC CORP: Posts THB819.8-Million Net Loss in 1st Quarter 2006
* S&P Shows Concern over Thai's Political Uncertainty


* Euler Sees Significant Increase In Global Business Failures

     - - - - - - - -

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

AIR BORN: Members & Creditors to Hear Wind-Up Report on July 24
---------------------------------------------------------------
The members and creditors of Air Born Aluminium Pty Limited will
hold their final meeting on July 24, 2006, at 10:30 a.m.

During the meeting, Liquidator Murray Godfrey will present
accounts of the Company's wind-up and property disposal
exercises.

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


ALLWOOD BATHROOM: Bank Appoints Receiver and Manager
----------------------------------------------------
The National Australia Bank Limited on June 15, 2006, appointed
Christopher Hill and Stephen Parbery as receivers and managers
of the property of Allwood Bathroom Products Pty Limited.

The Receivers and Managers can be reached at:

         Christopher Hill
         Stephen Parbery
         PPB Chartered Accountants
         Sydney, Australia


ANJ HOLDINGS: Liquidator Albarran to Present Wind-Up Report
-----------------------------------------------------------
The members and creditors of ANJ Holdings Pty Limited will
convene at a final meeting on July 27, 2006, at 10:00 a.m., to
get an account of the manner of the Company's wind-up and
property disposal from Liquidator Richard Albarran.

The Liquidator can be reached at:

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


AUSSIE FIRST AID: To Declare First Dividend on July 31
------------------------------------------------------
Aussie First Aid Supplies Pty Limited will declare its first
dividend on July 31, 2006.

Creditors who were not able to prove their claims by
July 6, 2006, will be excluded from sharing in the dividend
distribution.

The liquidator can be reached at:

         Bryan Collis
         O'Brien Palmer
         Level 4, 23 Hunter Street
         Sydney, New South Wales 2000
         Australia


AWB LIMITED: Court Delays Cole Access to AWB Secret Documents
-------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
June 22, 2006, recent changes to the Royal Commissions Act has
given Commissioner Terence Cole the power to examine documents
related to AWB Limited and decide the validity of AWB's claim
asserting legal professional privilege.

According to the report, Commissioner Cole -- who heads the
inquiry into AWB's alleged payment of illegal kickbacks to the
Iraqi Government in breach of United Nations sanctions -- wants
access to documents that are believed to contain evidence
pertaining to the issue.

However, the TCR-AP noted that AWB obtained a Federal Court
order prohibiting Commissioner Cole from accessing the documents
until the wheat exporter's appeal against having to provide them
was heard before the Court.  AWB had asserted that the documents
are protected by legal professional privilege in proceedings
before the Cole Inquiry.

In an update, the Sydney Morning Herald relates that AWB was
permitted to delay giving 1,300 secret documents to Commissioner
Cole.

According to the Sydney Herald, Justice Neil Young of the
Federal Court in Melbourne rejected the Commonwealth's request
to have the legal status of the documents determined by
Commissioner Cole.

Instead, Commissioner Cole must wait until the Federal Court has
heard the full argument of why AWB believes the vast collection
of e-mail exchange, letters, power-point presentations, hand-
written notes, and other papers should be shielded by legal
professional privilege, The Age relates.

The Australian relates that during a hearing on July 17, 2006,
lawyers for AWB said that past and present AWB employees face
the "very real" risk of criminal charges over the Iraqi
kickbacks scandal.

James Judd, barrister for AWB, told the Federal Court that one
reason the Company was fighting to keep 1,304 documents secret
from the Cole Inquiry was the belief that criminal charges might
be laid after Commissioner Cole releases his report.

Commonwealth lawyers wanted the Court to use its discretion to
refer the matter back to the Commissioner, the Sydney Herald
says.  Yet, Justice Young said that he could not determine
whether the Court should do that without having heard all the
evidence about the documents.

The Federal Court is yet to set hearing dates for AWB's claim
that the 1,304 documents, comprising 40 volumes, should be
withheld from the Cole Inquiry, ABC News Online says.

The Age also notes that Judge Young has barred Commissioner Cole
from issuing any more demands for the documents until the case
is decided.

ABC News Online recounts that Commissioner Cole had previously
said he will not reconvene until he has everything from AWB that
he is entitled to.

The deadline for Commissioner Cole to submit a report relating
to the Inquiry has been extended for the third time until the
end of September, ABC News notes.

                          About AWB

AWB Limited -- http://www.awb.com.au/-- is Australia's leading  
agribusiness and one of the world's largest wheat marketing
companies.  It is also one of Australia's top 100 publicly
listed companies.  The Company is the exclusive manager and
marketer of all Australian bulk wheat exports through what is
known as the Single Desk.  The Company markets wheat, and a
range of other grains, into more than 50 countries, with
Australian wheat exports worth up to AU$5 billion per year.  
AWB's footprint includes more than 430 outlets through its
subsidiary landmark and has offices across the world.  The
company employs more than 2,700 staff reaching over 100,000
customers.  AWB is also one of the nation's largest suppliers of
rural merchandise, distributors of fertilizer, marketers of
livestock, brokers of rural real estate and handlers of wool.

Previously a low profile organization, AWB made headlines in
late 2005 when it was accused of knowingly paying AU$290 million
in kickbacks to the Government of Iraq, under Saddam Hussein's
administration, through the United Nation's oil-for-food
program.  A UN report then found out that AWB paid the kickbacks
to a Jordanian trucking company linked to Hussein's deposed
regime.  The Australian Government then appointed a commission,
headed by retired judge Terence Cole, to investigate into the
Company's role in and the Government's alleged "knowledge" of
the scandal.  The "Cole Inquiry" is currently underway.  The
scandal is anticipated to create great political repercussions
to the Australian Government, given the country's contribution
to military action against President Hussein in the 2003
invasion of Iraq.


BALDIVIS ENTERPRISES: Members Agree on Voluntary Wind-Up
--------------------------------------------------------
At a general meeting of the members of Baldivis Enterprises Pty
Limited on June 15, 2006, it was agreed that a voluntary wind-up
of the Company is appropriate and necessary.

In this regard, Oren Zohar and Brian McMaster were appointed as
liquidators.

The Liquidators can be reached at:

         Oren Zohar
         Brian McMaster
         KordaMentha, Level 11
         37 St. Georges Terrace
         Perth, Western Australia
         Australia


BS & L PTY: Intends to Final Dividend on July 26
------------------------------------------------
BS & L Pty Limited notifies parties-in-interest of its intention
to declare a final dividend for creditors on July 26, 2006.

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

The Troubled Company Reporter - Asia Pacific recounts that the
Company declared its first dividend on June 26, 2006.

The Liquidator can be reached at:

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


CAPITAL FOODS: Hugh Martin Named Liquidator
-------------------------------------------
At a general meeting of the members of Capital Foods Pty Limited
held on June 13, 2006, Liquidator Hugh Martin was appointed to
manage the Company's wind-up activities.

The Liquidator can be reached at:

         Hugh Martin
         Bernardi Martin, Level 1
         195 Victoria Square
         Adelaide, Australia


CBW IMPORTS: To Declare Dividend on July 25
-------------------------------------------
CBW Imports Pty Limited will declare its first and final
dividend on July 25, 2006.

Creditors who were not able to prove their claims by
July 6, 2006, will be excluded from sharing in 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


CHAMPAIGN INTERNATIONAL: Winds Up Business Operations
-----------------------------------------------------
On June 13, 2006, members of Champaign International Pty Limited
passed a resolution to wind up the Company's business
operations.

Christopher J. Palmer was subsequently appointed as liquidator.

The Liquidator can be reached at:

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


CHARM LOGGING: Faces Liquidation Proceedings
--------------------------------------------
The liquidation of Charm Logging Ltd commenced on June 12, 2006,
following the appointment of Anthony C. Harris as liquidator by
the High Court of Rotorua.

Subsequently, Mr. Harris requires the creditors of the Company
to submit their proofs of claim by August 12, 2006, for them to
share in any distribution the Company will make.

The High Court on June 12, 2006, heard the liquidation bid filed
by Accident Compensation Commission against the Company, the
Troubled Company Reporter - Asia Pacific recounts.

The Liquidator can be reached at:

         Anthony C. Harris
         Harris Neil & Associates Limited
         P.O. Box 14-216, Tauranga
         New Zealand
         Telephone: (07) 571 6384
         Facsimile: (07) 571 6385


D BRADFORD PTY: Members to Hear Wind-Up Details on July 25
----------------------------------------------------------
Members of D Bradford Pty Limited will hold their final meeting
on July 25, 2006, at 10:00 a.m., for them to receive Liquidator   
P. J. Fitzgerald's accounts showing how the Company was wound up
and how its property was disposed of.

As reported by the Troubled Company Reporter - Asia Pacific,
P. J. Fitzgerald was appointed as the liquidator of the Company
on March 3, 2006.

The Liquidator can be reached at:

         P. J. Fitzgerald
         KPMG
         Level 3, 63 Market Street
         Wollongong, New South Wales 2500
         Australia
         Telephone:(02) 4229 2633


D'ANGELO & KEZIC: Creditors to Receive Second and Final Dividend
----------------------------------------------------------------
D'Angelo & Kezic Pty Limited will declare its second and final
dividend on July 21, 2006.

Creditors who were able to prove their claims by July 13, 2006,
are entitled to share in the dividend distribution.

The liquidator can be reached at:

         Mervyn J. Kitay
         Grant Thornton Western Australian Partnership
         Level 6, 256 St. Georges Terrace
         Perth, Western Australia 6000
         Australia
         Telephone:(+61) 8 9481 1448


ELIO INDUSTRIES: Appoints Joint Liquidators
-------------------------------------------
Members of Elio Industries Pty Limited convened on
June 7, 2006, and appointed Jason Bettles and Susan Carter as
joint liquidators.

The Liquidators can be reached at:

         Jason Bettles
         Worrells Solvency & Forensic Accountants
         Level 6, 50 Cavill Avenue
         Surfers Paradise, Queensland 4217
         Australia


F.J. HORNER: Dividend Declaration Slated for July 25
----------------------------------------------------
F.J. Horner & Son Pty. Limited will declare a first and final
dividend for creditors on July 25, 2006.

In this regard, the Company's creditors are required to submit
their proofs of claim to Liquidator Barry Keith Taylor for them
to share in 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


FORTESCUE METALS: Net Assets Increased for Year Ended June 30
-------------------------------------------------------------
On July 19, 2006, Fortescue Metals Group Ltd. posted in its Web
site its financial report for the year ended June 30, 2006,
disclosing that its financial position improved significantly in
2006, with a 131% increase in net assets to AU$137,106,130 from
AU$59,440,751 in 2005.

The Company attributed the improvement to a AU$72,705,249
increase in total assets to AU$221,048,135, comprised primarily
of increases in exploration and evaluation expenditure,
partially offset by lower cash balances held at June 30, 2006.

Fortescue also disclosed that it is exposed to foreign currency
risk -- primarily U.S. dollars -- on cash held, foreign currency
loans, and exploration and evaluation expenditure.  The Company
further noted that it has not entered into any forward foreign
exchange contracts as of June 30, 2006, and is currently fully
exposed to foreign exchange risk.

                        ASIC Proceedings

According to Fortescue, the Australian Securities and Investment
Commission intends to commence legal proceedings against the
Company and its chief executive officer, Andrew Forrest, in
relation to a market disclosure of certain agreements that the
Company signed in 2004.

The agreements in question relate to those signed with China
Railway Engineering Corporation, China Harbour Engineering
Corporation, and China Metallurgical Construction Corporation.

Fortescue noted that the ASIC statement of claim alleges a
breach by the Company and by Mr. Forrest of the continuous
disclosure provisions of the Corporations Act under Section 674
and also a breach under Section 1041H relating to deceptive and
misleading conduct.

The ASIC is seeking civil penalties of up to AU$3,000,000 from
the Company and AU$600,000 from Mr. Forrest, as well as an order
that he compensate Fortescue for any pecuniary penalty it may be
required to pay.

Fortescue stated that both the Company and Mr. Forrest will
vigorously contest the charges.

                     Payroll Tax Assessment

Fortescue disclosed that it has lodged an objection to a payroll
tax assessment of AU$1,495,989 it received from the State
Revenue Department relating to options issued to The Metals
Group Pty Ltd in 2003.

The Company asserted that these options are not wages for
payroll tax purposes under the definitions of the Payroll Tax
Assessment Act 2002.

Fortescue's Annual Financial Report for the period ended
June 30, 2006, is available for free at:

  http://bankrupt.com/misc/Fortescue_Annual_Report_June2006.pdf

                      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.


FORTESCUE METALS: Signs US$400 Mln Investment Deal with Leucadia
----------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
July 19, 2006, Noble Group Limited has terminated its financing
talks with Fortescue Metals Group Limited for an off-take and
equity deal that would secure financing for Fortescue's AU$2-
billion Pilbara iron ore project.

The report also noted that Fortescue operations director Graeme
Rowley was confident that an alternative equity deal would be
struck soon.  

In an update, Fortescue has released a statement to the
Australian Stock Exchange, disclosing that it has signed a
Subscription Agreement with Leucadia National Corporation for a
US$400-million (AU$536 million) investment in Fortescue.

Under the Agreement Leucadia will:

   (a) pay US$300 million for a placement of 26,400,000
       Fortescue shares, representing nearly 10% of the expanded
       issued shares on a fully diluted basis and equates to a
       value per share of AU$15.20 each based on the current
       AUD/USD exchange rate; and

   (b) invest a further US$100 million under a loan note with a
       term of 13 years from signing.

Fortescue explains that interest under the note is calculated as
4% of the revenue, net of government royalties, from the sale of
iron ore FOB Port Hedland from the tenements of the Cloud Break
and Christmas Creek areas only.

Accordingly, the interest is only payable when Fortescue is in
production and is only relevant to iron ore produced from these
two tenement areas for a period of 13 years from the date of
financial close.

The subscription for the shares and the note is conditional on
the date the Fortescue Group raises the total debt capital for
minimum of US$2 billion to finance the project.  Fortescue says
that if this condition is not satisfied or waived by
December 31, 2006, either party can withdraw from the Agreement.

The note is also unsecured and deeply subordinated to any
secured debt.  In the event that an interest payment is earned
but not payable due to secured lender restrictions, the amount
unpaid will accrue interest at a market interest rate until
payment is made.

On reaching financial close Fortescue will immediately issue the
shares and the note to Leucadia.  The introduction of the
Leucadia investment will provide the requisite equity to enable
completion of Fortescue's project financing.

Fortescue says that Leucadia will have Board representation as
it is entitled to nominate one director whilst ever it holds
more than 13,200,000 shares or more that US$50,000,000 in notes.

          Leucadia Deal is "Best Possible Endorsement"

Rebecca Keenan of The Age relates that Fortescue chief financial
officer Chris Catlow is confident that the Company will be
secured over the next two months.  He says that "[t]he
investment is really the best possible endorsement of
Fortescue."

The deal strengthens and broadens Fortescue's capital base and
ownership and sets it up for considerable future growth, Mr.
Rowley says, adding that "[i]t does not overly dilute our
ownership."

Fortescue will not be looking for any more equity partners and
will now focus on marketing agreements, The Age notes.

The Australian Associated Press says that the Company has
agreements in place for 80% of its planned production of 45
million tons, and has been reserving part of its iron ore in
case an equity partner also wanted to take part in marketing.

As Leucadia is not interested in marketing, Fortescue will now
push ahead with finalizing sales, the AAP notes.

Discussions about marketing activities between Noble and
Fortescue could still be continued in the future, The Sydney
Morning Herald relates, citing Fortescue, as saying.

The Herald Sun recounts that last year, Mr. Forrest announced
binding contracts for the sale of iron ore, which angered
Chinese buyers who had only signed an agreement to negotiate
over contracts.

Fortescue's director of operations Graeme Rowley said that the
Company could resume talks with Noble about marketing activities
in the future.

The Company said that a comprehensive financing package was
expected to be in place within this quarter.

                         About Leucadia

Leucadia National Corporation is a New York Stock Exchange
listed holding company engaged in businesses, which include
mining, manufacturing, telecommunications, real estate
activities, and agricultural operations.  Leucadia has existing
interest in resources and is involved with the development of a
copper mine in Spain together with onshore oil and gas contract
drilling.  Since 1979 through to 2005, the market price of a
Leucadia common share has had a compounded annual growth rate of
approximately 25.1%.

As of March 31, 2006, Leucadia had cash and marketable
securities for new investments of approximately US$2.1 billion.  
For the year ended December 31, 2005, Leucadia reported revenues
of US$1.04 billion and had total assets of US$5.3 billion and
common shareholders' equity of US$3.7 billion.

                      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.


HYUNDAI AUTO: Federal Court Issues Wind-Up Order
------------------------------------------------
The Federal Court of Australia issued an order for the wind-up
of Hyundai Auto Complete Pty Limited's operations.

The Court also ordered the appointment of Christopher J. Palmer
as liquidator.

The Liquidator can be reached at:

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


LC TAYLOR: Members to Receive Liquidator's Report on July 24
------------------------------------------------------------
A final meeting of the members of LC Taylor Holdings Pty Limited
will be held on July 24, 2006, at 11:00 a.m.

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

The Liquidator can be reached at:

         Vincent Choy
         Auswild & Co.
         1st Floor, 50 Montgomery Street
         Kogarah, Australia


LEGIT MUSIC: To Declare Dividend for Unsecured Creditors
--------------------------------------------------------
Legit Music (Australia) Pty Limited will declare its first and
final dividend for unsecured creditors on July 28, 2006, to the
exclusion of those who were not able to prove their claims.

The liquidator can be reached at:  

         Jennifer E. Low
         Sheridans, Chartered Accountants
         Level 6, 40 St George's Terrace
         Perth, Western Australia 6000
         Australia
         Telephone:(08) 9221 9339
         Facsimile:(08) 9221 9340


MARKET LINKED: Undergoes Voluntary Liquidation
----------------------------------------------
At a general meeting on June 15, 2006, the members of Market
Linked Pty Limited agreed that the Company must voluntarily
commence a wind-up of its operations.

Liquidator Sule Arnautovic was subsequently appointed to manage
the wind-up activities.

The Liquidator can be reached at:

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


P & N BUTTERFIELD: Members Appoint Official Liquidator
------------------------------------------------------
Members of P & N Butterfield Pty Limited held a meeting on
June 14, 2006, and decided to voluntarily wind up the Company's
Business operations.

The liquidator can be reached at:

         P. J. Teece
         Teece & Teece
         239 Rocky Point Road
         Sans Souci, New South Wales 2219
         Australia


RICHARDSON REMOVALS: Creditors to Receive Dividend on July 29
-------------------------------------------------------------
Richardson Removals Pty Limited will declare its third and final
dividend on July 29, 2006.

Creditors whose claims were not admitted by June 23, 2006, will
be excluded from sharing in the dividend distribution the
Company will make.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company declared its interim dividend on August 10, 2005.

Moreover, the Company declared its third dividend on June 13,
2006.

The Liquidator can be reached at:

         John Park
         KordaMentha (Qld)
         22 Market Street
         Brisbane, Queensland 4000
         Australia
         Telephone:(07) 3225 4000
         Facsimile:(07) 3225 4999


S1 AUSTRALIA: Members to Convene on July 24
-------------------------------------------
The members of S1 Australia Pty Limited will convene on
July 24, 2006, at 10:00 a.m.

During the meeting, members will be asked to:

   -- receive and adopt a report of the liquidator's act and  
      dealings during the conduct of the winding up;

   -- receive and adopt the Australian Securities and
      Investments Commission Form 524 Accounts and Statement by
      The liquidator; and

   -- transact any other business, which may properly be brought  
      forward at the meeting.

The liquidator can be reached at:

         Peter Andrew Gooden
         Croft Gooden Partners
         Level 5, 60 Miller Street
         North Sydney, New South Wales 2060
         Australia


SAFE LIFTS: Joint and Several Liquidators Named
-----------------------------------------------
At a general meeting on June 19, 2006, members of Safe Lifts
Technology (Qld) Pty Limited appointed Anthony Warner and Cliff
Sanderson as joint and several liquidators for the Company.

The Liquidators can be reached at:

         Anthony Warner
         Cliff Sanderson
         CRS Warner Sanderson
         Level 5, 30 Clarence Street
         Sydney, New South Wales 2000
         Australia
         Web Site: http://www.crswarnersanderson.com.au/


SAMDA DEVELOPMENTS: Receivers Cease to Act for Company
------------------------------------------------------
Peter Geroff and Will Colwell ceased to act as receivers of all
the properties and assets of Samda Developments Pty Limited on
June 9, 2006.


TERRITORY CHIEF: Receivers and Managers Step Aside
--------------------------------------------------
On June 1, 2006, Derrick Craig Vickers and Geoffrey Frank
Totterdell ceased to act as receivers and managers of the
property of Territory Chief Fishing Company Pty Limited.


TOUCH A CLASS: Liquidator Pattison to Present Wind-Up Report
------------------------------------------------------------
Valerie/notice

A general meeting of the members and creditors of Touch a Class
Pty Limited will be held on July 21, 2006, at 11:00 a.m., where
Liquidator Paul A. Pattison will report on the Company's wind-up
and property disposal exercises.

The Liquidator can be reached at:

         Paul A. Pattison
         Pattisons Business Advisors & Insolvency Specialists
         461 Bourke Street
         Melbourne, Victoria 3000
         Australia
  

TRACKER MARINE: Enters Wind-Up Proceedings
------------------------------------------
On June 7, 2006, Bradley Vincent Hellen and Ann Fordyce were
Named joint and several receivers and managers of Tracker Marine
Australia Pty Limited.

The Joint & Several Receivers and Managers can be reached at:

         Bradley Vincent Hellen
         Ann Fordyce
         c/o Pilot Partners Chartered Accountants
         Level 5, 175 Eagle Street
         Brisbane, Queensland 4000
         Australia


W A STONEY: Members' Final Meeting Set on July 26
-------------------------------------------------
A final meeting of the members of W A Stoney & Sons Pty Limited
will be held on July 26, 2006, at 11:00 a.m.

During the meeting, Liquidator M. W. Stoney will present final
accounts of the Company's wind-up operations.

The Liquidator can be reached at:

         M. W. Stoney
         97 Ellingerrin Road
         Inverleigh, Victoria 3321
         Australia
         Telephone:(03) 5265 1230
         Facsimile:(03) 5265 1583


WOLLONGONG FREIGHT: To Declare First and Final Dividend
-------------------------------------------------------
Wollongong Freight Centre Pty Limited will declare its first and
final dividend on July 27, 2006.

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

The liquidator can be reached at:   

         Danny Vrkic
         Jirsch Sutherland & Co.
         Wollongong Chartered Accountants
         Level 3, 6-8 Regent Street
         Wollongong, New South Wales 2500
         Australia
         Telephone:(02) 4225 2545
         Facsimile:(02) 4225 2546


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

AXM PHARMA: Acquires 51% Interest in Drug Distributor
-----------------------------------------------------
AXM Pharma Inc. completed the acquisition of a 51% interest in
Liaoning Ming Cheng Medical & Pharmaceutical Co., Ltd. through
the issuance of 3.7 million shares of AXM Pharma's common stock.

Shenyang-based Liaoning Ming Cheng is a distributor of patented
Chinese Medicines, antibiotics, biochemical medicines and
healthcare products in northeastern China.  The acquisition,
reportedly, closed on July 1, 2006.

Headquartered in City of Industry, California, AXM Pharma, Inc.
(AMEX: AXJ) -- http://www.axmpharma.com/-- through its wholly  
owned subsidiary, AXM Pharma Shenyang, Inc., is a manufacturer
of proprietary and generic pharmaceutical products, which
include injectables, capsules, tablets, liquids and medicated
skin products for export and domestic Chinese sales.  AXM
Shenyang is located in the City of Shenyang, in the Province of
Liaoning, China.  AXM Shenyang has an operating history of
approximately 10 years.

                       Going Concern Doubt

Lopez, Blevins, Bork & Associates, LLP, in Houston, Texas,
raised substantial doubt about AXM Pharma, Inc.'s ability to
continue as a going concern after auditing the Company's
consolidated financial statements for the year ended Dec. 31,
2005.  The auditor pointed to the Company's losses and need for
additional capital.


CHINA AVIATION: Former Senior Trader Fined HKD194,800
-----------------------------------------------------
Former senior trader Gerard Rigby was fined HKD194,800 after he
pleaded guilty to insider trading in connection with a financial
scandal that almost bankrupted China Aviation Oil, The Standard
reports.

Mr. Rigby paid the fine after District Judge Liew Thiam Leng
handed down his ruling in subordinate court.  

Judge Liew told The Standard that Mr. Rigby could have served a
default jail term of six months if he could not afford to pay
the fine.

According to the report, Mr. Rigby pleaded guilty to selling
16,800 CAO shares in August 2004, making him the sixth former
CAO official to be punished in connection with the fiasco that
saw the company nearly collapse under the weight of US$550
million in debt due to a disastrous gamble in oil derivatives,
The Standard recounts.

Earlier, The Troubled Company Reporter - Asia Pacific reported
that CAO's former Chief Executive Officer Chen Jiulin pleaded
guilty to six of 15 charges hurled against him, which includes
issuing false financial statements conspiring to cheat Deutsche
Bank.

He was sentenced to four-year jail term executed immediately.

                          *     *     *

Incorporated in 1983, China Aviation Oil (Singapore) Corp.
Limited -- http://www.caosco.com/-- deals primarily in jet fuel  
procurement, although it is also active in international oil
trading and oil-related investment.  The firm commands a near-
100% market share of the procurement of imported jet fuel for
China's civil aviation industry, and has expanded its market to
include ASEAN countries, the Far East and the United States.

Singapore's Commercial Affairs Department investigated China
Aviation in December 2004 after it was discovered that the
Company had lost up to SGD896.07 million in fuel derivatives
trading, which was not immediately reported to the Singapore
Exchange.  China Aviation avoided bankruptcy when creditors
agreed to write down some of its debt in June 2005, and BP Plc,
Europe's biggest oil company, agreed to take a stake in the
company.

Shareholders of the Company have subsequently approved a new
restructuring plan for China Aviation.  According to a TCR-AP
report on March 7, 2006, the approved restructuring plan allows
creditors an option to have an upfront cash payment of 45 cents
on every dollar owed, or a higher repayment rate of 58 cents a
dollar spread over five years.

The Company completed its Restructuring Plan on March 28, 2006.   


CHINA EASTERN: Mulls Stake Sale to Singapore Airlines
-----------------------------------------------------
China Eastern Airlines is considerinf selling a majority stake
to Singapore Airlines, in hopes of making the latter a strategic
investor, Reuters reports.

Sources told Reuters that the two airlines had been in talks for
months, but no final agreement had been reached yet.

According to Reuters, the proceeds of the stake disposal would
be utilized to expand China Eastern's fleet.

Reuters recounts that China Eastern Chairman Li Fenghua, had
told state media in April that carrier aimed to sell at least a
20% stake to a foreign investor, hopefully within the year.

The investment, Reuters notes, could give China Eastern an
access to Singapore Airlines' extensive global network if the
plan works out.  Moreover, the airline could gain an upper hand
on its domestic competitors.

                          *     *     *

Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- principal  
activity is operation of domestic and international commercial
air transportation.  The Group also is involved in the common
aircraft industry. Other activities include general aviation,
air catering, advertisement, import and export, equipment
manufacturing, real estate, hotel business, finance and
training. The fleet includes more than 60 large and medium size
airplanes, Airbus and Boeing mostly.  Its operation centering
from Shanghai to the whole People's Republic of China and
linking to Asia, Europe, America and Australia.

On April 28, 2006, Fitch Ratings downgraded China Eastern's
Foreign Currency and Local Currency Issuer Default Ratings to B+
from BB-.  The outlook on the IDRs is stable.

According to the rating agency, the downgrade primarily reflects
China Eastern's substantially declined profitability, caused by
a 36.8% hike in operating expenses relative to a 28.4% growth in
revenues, and increased debt levels, which substantially
weakened the carrier's major credit ratios.


EVERGREEN TECHNOLOGY: Names Mok as Liquidator
---------------------------------------------
Members of Evergreen Technology International Limited on June
15, 2006, appointed Mok Chi Wai as the Company's official
liquidator.

The Liquidator can be reached at:

         Mok Chi Wai
         Unit 3903, Tower 2
         Lippo Centre, 89 Queensway
         Hong Kong


ONWARD ELECTRICAL: Members Final Meeting Set August 4
-----------------------------------------------------
Members of Onward Electrical & Supplies Co Ltd will convene on
August 4, 2006, 10:00 in the morning at Room 103, 2nd Floor,
Duke of Windsor Social Service Bldg, 15 Hennessy Road, Wanchai,
Hong Kong.

At the meeting, members will receive Liquidator Li Man Wai's
report on the Company's wind-up.


POLYLION LIMITED: Court to Hear Wind-Up Bid on August 16
--------------------------------------------------------
The High Court of Hong Kong will hear a petition to wind up
Polylion Ltd on August 16, 2006, at 9:30 in the morning.

Woo Loong Engineering & Construction Co Ltd filed the petition
with the Court on June 19, 2006.

The solicitors for the petitioner can be reached at:

         Or, Ng & Chan
         15th Floor, The Bank of East Asia Bldg
         10 Des Voeux Road Central
         Hong Kong


PROJECT SUPPLIES: Joint Liquidators Step Aside
----------------------------------------------
Derek Lai and Darach E. Haughey stepped aside as joint
liquidators of Project Supplies Ltd on June 20, 2006.


SAIL VALUE: Final Members' Meeting Slated for August 14
-------------------------------------------------------
The final members' meeting of Sail Value Asia Advisors Ltd will
be held on August 14, 2006, 10:00 in the morning at Unit 1601,
16/F., Malaysia Bldg, 50 Gloucester Road, Wanchai, Hong Kong.

At the meeting, Liquidator Wong Lam Kit Yee will report on the
Company's wind-up and property disposal exercises.


SAMLANE DEVELOPMENT: Wind-Up Petition Hearing Fixed August 9
------------------------------------------------------------
The High Court of Hong Kong is set to hear a wind-up petition
filed against Samlane Development Ltd on August 9, 2006, at 9:30
in the morning.

Pacific Technology Ltd filed the petition with the Court on
June 8, 2006.

The solicitors for the petitioner can be reached at:

         Au-Yueng, Cheng, Ho & Tin
         14th Floor, Far East Consortium Bldg
         121 Des Voeux Road, Central
         Hong Kong


SWEETMART INTERNATIONAL: Appoints Official Liquidators
------------------------------------------------------
Alan Chung Wah Tang and Alison Wong Lee Fung Ying were on
July 3, 2006, appointed as joint liquidators for Sweetmart
International Co Ltd.

The Joint Liquidators can be reached at:

         Alan Chung Wah Tang
         13/F., Gloucester Tower
         The Landmark
         11 Pedder Street, Central
         Hong Kong


WORKPLACE COMPANY: To Pay First Dividend
----------------------------------------
Workplace Company Ltd notifies parties-in-interest of its
intention to declare its first dividend of 30% on July 21, 2006.


YAN LUEN: Court to Hear Wind-Up Application on August 16
--------------------------------------------------------
A wind-up petition against Yan Luen Tsui Yuk Grass Co Ltd will
be heard before the High Court of Hong Kong on August 16, 2006,
at 9:30 in the morning.

Mok Man Cham, filed the petition with the court on June 14,
2006.

The solicitor for the plaintiff can be reached at:

         Joseph Lo
         34/F., Hopewell Centre
         183 Queen's Road East
         Wanchai, Hong Kong


YINSON KNITTING: Wind-Up Petition Hearing Fixed on August 9
-----------------------------------------------------------
A wind-up petition filed against Yinson Knitting Ltd will be
heard before the High Court of Hong Kong on August 9, 2006, at
9:30 in the morning.

Hang Seng Bank Ltd filed the petition with the Court on June 9,
2006.

The solicitor for the petitioner can be reached at:

         Johnson Stokes & Master
         18th Floor, Prince's Bldg
         10 Chater Road, Central
         Hong Kong


YUE CHEONG: Faces Wind-Up Proceedings
-------------------------------------
A petition to wind up Yue Cheong Hong Gifts Products Co Ltd will
be heard before the High Court of Hong Kong on August 30, 2006,
at 9:30 in the morning.

Bank of China (Hong Kong) Ltd filed the petition with the Court
on July 4, 2006.

Solicitors for the petitioner can be reached at:

         Rowland Chow, Chan & Co
         15th Floor, Wing Lung Bank Bldg
         No.45 Des Voeux Road Central
         Hong Kong


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

MYSORE CEMENTS: Forges JV Relationship with HeidelbergCement
------------------------------------------------------------
Mysore Cements Limited disclosed that its board of directors and
its promoter group have been working on various options for
rebuilding the net worth of the Company as well as addressing
its current debt overhang besides creating growth opportunities
for the future.

The Company has a nominal cement capacity of 2.095 million
metric tons per annum with operations at Ammasandara
(Karnataka), Damoh (M.P.) and Jhansi (U.P.) and sells cement
under the well known "Diamond" brand popular in both Central and
South India.

After a careful review of various possibilities, the Company and
the promoter group have decided to enter into a joint venture
relationship with the global cement and building materials major
HeidelbergCement Group.

Accordingly, the Company proposed to issue and allot up to
6,65,00,000 equity shares to HeidelbergCement Group by way of a
fresh issue on a preferential basis to raise long term resources
for the Company.  The issue price has been fixed at INR54 per
equity share.

To consolidate the said joint venture relationship, relevant
agreements have been entered into between HeidelbergCement
Group, the Company and the promoter group.  The promoter group
will sell 1,34,00,000 shares at INR58 per share excluding non-
compete fees of INR14.50 per share out of their present holdings
to HeidelbergCement Group, who will also be making an open offer
to shareholders of the Company in accordance with regulations at
the above price of INR58 per share.

Both the promoter and HeidelbergCement groups have expressed
their joint resolve to work with the management to further
strengthen the Company's position in the Indian cement sector.  
The promoter group will continue their full support at the Board
level with Sri S K Birla as the non-executive Chairman and Sri
Sidharth Birla as Director.  The composition of the Board is and
will remain compliant with the regulatory requirements and
HeidelbergCement Group would nominate others on the Board at the
time deemed appropriate.

In effect this proposal enables the Company not only to retain
its corporate identity but also raises resources to help it
address its debt and capital expenditure needs, besides being
able to strengthen its presence in both the Central and Southern
market regions.  The plan concurrently allows shareholders an
opportunity to either exit at a healthy valuation which is at a
premium to current market price, or to continue to hold their
shares and participate in a strengthened entity with management
by a strong global cement player.

SMIFS Capital Markets Ltd and Khaitan & Co. tendered financial
and legal advise on the proposal.  Ambit Corporate Finance and J
Sagar Associates advised HeidelbergCement Group.

                   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.


TRAVANCORE RAYONS: Likely to Commence Revival by October 2006
-------------------------------------------------------------
The Perumbavoor-based Travancore Rayons Limited is set to reopen
by October this year after a five-year closure, Business Line
reveals.

The Company's new promoter -- the NDEE Group -- is confident
that the Company will resume operations in the fourth quarter of
2006 after the State Government ordered a consortium of banks to
participate in the one-time settlement agreement offered by IDBI
Bank, Business Line says.

According to The Hindu, the NDEE Group and IDBI have arrived at
an agreement to settle Travancore Rayon's debt last year.  
However, the major lender failed to convince other financial
institutions to do the same.

Currently, the State Government is helping the NDEE Group
negotiate with the banks, Business Line relates.  Once
agreements are reached with the banks on one-time settlement and
with trade unions, the Promoter would request the Kerala High
Court to nullify the Board for Industrial and Financial
Reconstruction's decision to liquidate the Company.

As reported by The Hindu, the BIFR had ordered the closure of
the sick government unit in 2002.  It was at this juncture that
the new promoter came forward with a revival package and as it
had been under the consideration of the State Government, the
Kerala High Court had stayed the closure of the unit.

Business Line reports that the Government had signed an
agreement with the Coimbatore-based NDEE Group in July 2005 for
reviving the unit.

As per the agreement, all the loan liabilities including those
taken by the Company under government guarantee would be taken
over by the Promoter and would be settled through one-time
settlement.  Similarly, all the dues to the state government and
government agencies would also be settled.

The Promoter had vowed to keep the existing workforce and employ
more people as soon as the Company's facility restarts
operations, Business Line says.

The Company has been idle for over two years now and about 1,200
workers are without wages.  At present, the unit is maintained
by a skeleton staff of 70 people on a monthly wage of INR500,
The Hindu adds.

Travancore Rayons Company manufactured viscose filament rayon
yarns, cellulose films, cotton linter pulps and cellulose
powders, which are biodegradable and eco-friendly.


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

PERUSAHAAN GAS: To Provide Gas Supply to Islands
------------------------------------------------
State gas firm PT Perusahaan Gas Negara has joined forces with
state-owned oil firm PT Perusahaan Listrik Negara and the Riau
Island province to provide adequate gas supply for an expected
increase in power demand in Batam, Bintan and Karimun, the
Jakarta Post relates.

According to the Post, the three islands will soon be declared a
special economic zone, and PGN plans to build a gas pipeline to
connect Batam and Bintan to supply gas to power stations in the
area, since almost all power stations -- owned by Perusahaan
Listrik -- in the islands are dependent on gas.

Representatives of the two firms and Riau Island province held a
meeting on July 18, 2006, to discuss the amount of gas needed to
operate power generators on the three islands.  PGN President
WMP Simanjuntak, PLN Primary Energy Director Ali Herman Ibrahim
and Riau Islands deputy governor Muhammad Sani attended the
meeting.

Mr. Ibrahim said that there is enough power supply in the three
islands to provide electricity for large and small-scale foreign
firms interested in investing in the area.  He added that the
meeting was also held to ensure PGN was committed to providing
gas to power generators owned by PLN in the islands, since
almost 80% of the Company's power generators in Riau Island are
gas-fired.

Mr. Simanjuntak said that PGN plans to install an undersea
pipeline to supply pas from Bamtan to Bintan.  The project is
slated to cost around IDR129.1 billion, and would provide 100
million cubic feet of gas on a daily basis.  They would use
tankers to supply gas to Karimun, since it would be too costly
to build pipeline to the island.  The gas supply would also
depend on preparatory work by gas producers Conoco Philips,
Jambi Berang and Petro China.

Mr. Sani told the Post that the Riau administration has set
aside IDR50 billion from the 2007 regional budget for
infrastructure projects in the islands; he added that they would
try to raise the fund allocation.  The administration plans to
put up two power generators with a power capacity of 25
megawatts each, and promised to complete the project by next
year.

                          *     *     *

Headquartered in Jakarta, PT Perusahaan Gas Negara is 61% owned
by the Government of Indonesia and is engaged in the
transmission and distribution of natural gas in the country,
with leading domestic market shares.

The Troubled Company Reporter - Asia Pacific reported on May 23,
2006, that Moody's Investors Service had affirmed PGN's Ba2
corporate family rating, which is expected to remain unchanged,
whereas Fitch Ratings Agency assigned these ratings to the
Company on June 27, 2006:

   -- Long-term foreign currency Issuer Default Rating 'BB-';

   -- Long-term local currency IDR 'BB-';

   -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due
      2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN
      and its subsidiaries 'BB-'; and

   -- National Long-term rating 'AA(idn)'.


PERUSAHAAN LISTRIK: Promises to Increase Supply to Islands
----------------------------------------------------------
State utility firm PT Perusahaan Listrik Negara has promised to
increase power supply to the islands of Batam, Bintan and
Karimun together with gas firm PT Perusahaan Gas Negara and the
Riau Island province, the Jakarta Post says.

In anticipation of the three islands to be declared as a special
economic zone, representatives of the two state firms and Riau
Island province met on July 18, 2006, in Batam to determine how
much gas would be needed to power generators on the islands.  
PLN Primary Energy Director Ali Herman Ibrahim, PGN President
WMP Simanjuntak and Riau Island Deputy Governor Muhammad Sani
attended the meeting.

According to Mr. Ibrahim, there is sufficient power supply in
the three islands to provide electricity for large and small-
scale foreign firms interested in investing in the area.  He
added that the meeting was also held to ensure PGN was committed
to providing gas to power generators owned by PLN in the
islands, since almost 80% of the Company's power generators in
Riau Island are gas-fired.

Mr. Sani told the Post that the Riau administration has set
aside IDR50 billion from the 2007 regional budget for
infrastructure projects in the islands.  He added that they
would try to raise the fund allocation.  The administration
plans to put up two power generators with a power capacity of 25
megawatts each, and promised to complete the project by next
year.

                          *     *     *

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

A report by the Troubled Company Reporter - Asia Pacific on
June 30, 2006, states that the Indonesian Government had offered
to settle PLN's debt to state oil and gas firm PT Pertamina,
which totaled IDR23.9 trillion, according to the firm.  But PLN
acting president Djuanda Nugraha Ibrahim says that the Company
owes IDR17 trillion to Pertamina.


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

ALL NIPPON: Sets Up Joint Venture Firm with Rakuten Inc.
--------------------------------------------------------
All Nippon Airways Co., Ltd., disclosed at a press conference on
July 12, 2006, that it would set up a joint venture firm with
Rakuten Inc. to provide online travel services to the public by
Aug. 1, 2006.

The new company, called Rakuten ANA Travel On-line, will provide
packages that customers put together themselves, combining any
of All Nippon's 900 daily flights with a choice of 20,000
lodgings, car rental and other services, provided by Rakuten
Travel, Inc., and ANA Sales Co. Ltd., ANA's tour operator
subsidiary.

Both ANA and Rakuten groups enjoy the number one share in their
respective markets: ANA is the largest domestic airline in Japan
for passengers carried, and Rakuten has the largest share of
online domestic accommodation bookings.  The new travel packages
will be branded "ANA Raku Pack" -- "raku" means "easy" or "fun"
in Japanese -- and will be sold through the Rakuten Travel Web
site from October this year.

All Nippon and Rakuten first teamed up in July 2004 with a joint
loyalty programme allowing ANA Mileage Club members to earn
mileage using the Rakuten site, and members of the Rakuten Super
Point Programme to earn points while flying via All Nippon
Airways.  In this new development, both firms will provide a
variety of travel products on a single site that customers can
build according to their individual needs and budget, in a move
aimed at making the travel process ever more simple and
convenient.

Details of the New Joint Venture Company:

  * Name                   Rakuten ANA Travel Online Co Ltd

  * Field of Operation     Travel services

  * Date of Establishment  August 1, 2006

  * Capital                JPY90 million

  * Total Investment       JPY700 million

  * Investors              Rakuten, Inc.: 50%
                           All Nippon Airways Co., Ltd.: 40%
                           ANA Sales Co., Ltd.: 10%

  * Directors              To be appointed by both ANA and
                           Rakuten

  * Executives             ANA Group 3
                           Rakuten Group 3

  * No of Employees        10

  * Head Office            Ark Yagi Hills, Roppongi 1-8-7
                           Minato-ku, Tokyo
                           (Rakuten Travel head office address)

                          *     *     *

Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline  
company in terms of revenue.  The Company, which was founded in
1952, provides these services: 1. Scheduled air transportation
business; 2. Nonscheduled air transportation business and
business utilizing aircraft; 3. Business of buying, selling,
leasing and maintenance of aircraft and aircraft parts; and
4. Aircraft transportation ground support business, including      
passenger boarding procedures and loading of hand baggage.

All Nippon's core business is domestic passenger transportation,
which accounts for 43% of its total revenues before inter
segment adjustments.

Fitch Ratings gave All Nippon a BB+ long-term foreign and local
Issuer Default Ratings.

Moody's Investors Service gave the airline a Ba1 senior
unsecured debt rating.

Standard & Poor's Ratings Services gave All Nippon a 'BB-' long-
term corporate credit rating.


JAPAN AIRLINES: Seeks to Offer Cheap Fares for Domestic Flights
---------------------------------------------------------------
Japan Airlines Corp. has increased its pricing competition with
its biggest rival, All Nippon Airways Co., Ltd., by offering
fares of JPY7,700 for one-way domestic flights from Oct. 1,
2006, to Oct. 5, 2006, Crisscross News relates.

Pending approval by the Ministry of Land, Infrastructure and
Transport, JAL will pre-sell tickets at the discounted price
from Aug. 1, 2006, to Aug. 10, 2006, Crisscross adds.

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.

                          *     *     *

As of March 31, 2006, JAL's debt amounted to JPY1.93 trillion,
whereas shareholders' equity stood at JPY148.1 billion.

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.

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 gave 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.


* Corporate Bankruptcies Fall 6% in June 2006
---------------------------------------------
Japanese corporate bankruptcies have dropped for the third
consecutive month in June, the Associated Press reports, citing
Teikoku Databank Ltd.

According to Teikoku, corporate bankruptcies reached 744 cases
in June 2006, approximately a 6% drop from the number reported
in June 2005 and an 8.1% decrease from May 2006.

In the first six months of 2006, corporate failures increased
5.3% to 4,625 cases, reflecting a mild upward trend in
bankruptcies.  Insolvent firms' debts reached JPY383.2 billion
in June, a drop of 12.8% on year, whereas debts for the first
half of the year fell 8.7% to JPY2.8 trillion.


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

KYONGNAM BANK: Posts a KRW133 Billion Net Income for 2005
---------------------------------------------------------
Kyongnam Bank posted a KRW132.68-billion (US$130.98 million) net
income for the fiscal year 2005, up 21% from the
KRW109.24-billion net income posted in 2004.

Operating revenues moved up 4% to KRW796.27 billion in 2005 from
KRW764.59 billion the year before.  Operating expenses went down
marginally to KRW634.68 billion from KRW640.545 billion.

The bank's total assets as of December 31, 2006, was
KRW14.10 trillion, while loans and deposits stood at
KRW8.43 trillion and KRW10.52 trillion.

Kyongnam Bank -- http://www.kyongnambank.co.kr/-- has served as  
a regional financial center of South Gyeongsang Province from
its stronghold bases in Masan, Changwon and Ulsan, the three
major industrial centers in Korea.

Fitch Ratings gave Kyongnam Bank an individual rating of C
effective April 25, 2006.


SK CORP: Discloses Future Business Plans
----------------------------------------
SK Corp. is considering expanding its business in China, the
company stated in a corporate disclosure.

SK Corp. said that it is working out a plan to acquire stakes in
coal mines in major coal reserves in Xinjiang, Inner Mongolia
and other areas of Northwestern China.  The plan would make way
for the company's entry into the power generation business,
which is also under preliminary review.

For its asphalt business, the SK Corp. plans to expand its
distribution facility of an asphalt laboratory established in
Beijing in 2005.

According to the company, talks are in progress with local
businesses to enter the environmental business in China with the
Selective Catalytic Reduction and the Diesel Particulate Filter
as the cornerstones, as well as with Chinese petrochemical
companies for the establishment of a wholesale/retail network.

In a separate disclosure, SK Corp. revealed that it has received
an offer to purchase a stake in Ghana's national oil company.
However, nothing has been finalized yet.

                      About SK Corporation

Headquartered in Seoul, South Korea, SK Corporation --
http://eng.skcorp.com/-- is the leading energy and  
petrochemical company with 4,916 employees, KRW22 trillion and
KRW2 trillion in sales and net income, respectively, and 22
offices around the world in 2005. The company is strategically
positioned as Korea's largest and Asia's leading refiner next to
Sinopec and PetroChina.  SK Corp. currently explores, develops
and produces oil in 13 nations that span Africa, Asia and the
Americas, including Russia, Vietnam, Indonesia, Australia,
Brazil, Cote d'Ivoire, United States, Peru.

Moody's Investors Service gave SK Corp.'s Foreign Currency Long
Term Debt a Ba1 rating effective February 17, 2006.


SK CORP: Enters European Exploration & Development Business
-----------------------------------------------------------
SK Corporation has acquired exploration and development
interests in four blocks in the United Kingdom North Sea through
farm out agreements with Nautical Petroleum plc, a specialized
developer of heavy oil assets, the company said in a press
release.

The agreements signify SK Corp.'s first entry into the European
exploration and production business.  The forward work program
will include the drilling of wells planned for 2007-2008.

                      About SK Corporation

Headquartered in Seoul, South Korea, SK Corporation --
http://eng.skcorp.com/-- is the leading energy and  
petrochemical company with 4,916 employees, KRW22 trillion and
KRW2 trillion in sales and net income, respectively, and 22
offices around the world in 2005. The company is strategically
positioned as Korea's largest and Asia's leading refiner next to
Sinopec and PetroChina.  SK Corp. currently explores, develops
and produces oil in 13 nations that span Africa, Asia and the
Americas, including Russia, Vietnam, Indonesia, Australia,
Brazil, Cote d'Ivoire, United States, Peru.

Moody's Investors Service gave SK Corp.'s Foreign Currency Long
Term Debt a Ba1 rating effective February 17, 2006.


SK CORP: High Oil Prices Fuel Record Sales
------------------------------------------
SK Corporation posts record sales of KRW5.28 trillion for the
first quarter ending March 31, 2006, up 11% compared to the
KRW4.76-trillion sales reported a year ago.  

Revenue was boosted by the high oil prices and the rise in
product prices.

The company's operating profit is at KRW330 billion, a 14%
decline from the previous year's corresponding quarter operating
profit of KRW383 billion, due to lower refining margins and
petrochemical spreads.

Non-operating profit increased by 124% year over year to
KRW433 billion from KRW194 billion in the first quarter of 2005
due to equity method gains as well as foreign exchange gains
from the appreciation of the Korean Won.

                  Business Sector Performance

   * Petroleum

     In spite of a decrease in the refining margin, operating
     profit for SK Corp.'s petroleum business improved for the
     first quarter of 2006 due to the company's crude oil
     purchasing strategy.  SK Corp. increased its purchases of
     West Africa crude oil from December 2005, which provided
     more cost efficiency than Middle Eastern crude oil.  As a
     result, West Africa crude oil reached 25% of the total
     supply mix by January of this year, exceeding the 2005
     average of 7%.  Another factor is the utilization of low-
     priced inventories.  Since the economics of using Middle
     Eastern crude oil was not high enough, the division reduced
     imports of oil from the Middle East and instead utilized
     inventories accumulated when oil prices were more stable.

   * Petrochemicals

     The price of naphtha for the first quarter of 2006 rose a
     substantial 26.4% year over year and these volatile market
     conditions reduced profit margins, which resulted to a 57%
     reduction in operating profit for the petrochemical
     division compared to a record breaking 2005 first quarter's
     result.  However, despite the rise in naphtha price and
     unfavorable market conditions, the petrochemical division
     recorded a KRW89.4 billion operating profit.

   * Lubricants

     The most improved results for the first quarter of 2006
     came from SK's Lubricant division.  Sales and operating
     profit jumped by 34% from KRW130.4 billion to
     KRW174.6 billion and 65% from KRW20 billion to
     KRW33 billion, respectively, year over year.  Successful
     management of the rising raw material cost on the product
     price was a key factor for the results.

   * Exploration and Production (E&P)

     The E&P division's sales and operating profit for the first
     quarter of this year reached KRW75.1 billion and
     KRW47.7 billion, respectively, in spite of the contract
     expiration of the Marib Yemen oil block.  The most notable
     result was the unit's operating profit, which increased
     63.5% quarter-on-quarter, reaching KRW47.4 billion compared
     to KRW28.5 billion last quarter.

     The average daily production for the first quarter was
     approximately 20,000 bpd which has slightly decreased from
     last year's average of 24,000 bpd.  However, the division
     expects additional oil and LNG production from Brazil
     BMC-8, YLNG and PLNG blocks to further enhance its
     profitability from the second half of 2007 onwards.

                      About SK Corporation

Headquartered in Seoul, South Korea, SK Corporation --
http://eng.skcorp.com/-- is the leading energy and  
petrochemical company with 4,916 employees, KRW22 trillion and
KRW2 trillion in sales and net income, respectively, and 22
offices around the world in 2005.  The company is strategically
positioned as Korea's largest and Asia's leading refiner next to
Sinopec and PetroChina.  SK Corp. currently explores, develops
and produces oil in 13 nations that span Africa, Asia and the
Americas, including Russia, Vietnam, Indonesia, Australia,
Brazil, Cote d'Ivoire, United States, Peru.

Moody's Investors Service gave SK Corp.'s Foreign Currency Long
Term Debt a Ba1 rating effective February 17, 2006.


SK CORP: Enters Joint Venture Deal with Indonesia's Pertamina
-------------------------------------------------------------
SK Corp. signed a joint venture agreement with PT Pertamina, an
Indonesian energy company.

The two companies initially planned to jointly invest
US$175 million to build and operate a group III base oil plant
at Dumai Refinery in Indonesia.  Under the agreement, SK Corp.
is in charge of marketing in global market, outside of
Indonesia, while PT Pertamina is in charge of marketing in the
Indonesian domestic market.

SK Corp. and PT Pertamina also signed an MOU stating that the
two companies will work closely together on a variety of
upstream, downstream, trading and other projects.

Group III base oil is developed using an advanced technology
that yields higher quality oil that is saturated and pure, with
very low volatility and high viscosity index.  With over 50% of
the global market share, SK Corp. leads the commercial market
for group III base oil.

Construction of the Indonesia-based base oil plant is slated to
begin within 2006 and is slated for completion in the first half
of 2008.  The facility would produce 7,250 barrels per day,
which will help meet growing demand all over the world.  

                      About SK Corporation

Headquartered in Seoul, South Korea, SK Corporation --
http://eng.skcorp.com/-- is the leading energy and  
petrochemical company with 4,916 employees, KRW22 trillion and
KRW2 trillion in sales and net income, respectively, and 22
offices around the world in 2005.  The company is strategically
positioned as Korea's largest and Asia's leading refiner next to
Sinopec and PetroChina.  SK Corp. currently explores, develops
and produces oil in 13 nations that span Africa, Asia and the
Americas, including Russia, Vietnam, Indonesia, Australia,
Brazil, Cote d'Ivoire, United States, Peru.

Moody's Investors Service gave SK Corp.'s Foreign Currency Long
Term Debt a Ba1 rating effective February 17, 2006.


SK CORP: Signs Partnership with ExxonMobil
------------------------------------------
SK Corporation has acquired a 20% interest in the Majunga
Offshore Profond exploration block in Madagascar under a farm-
out agreement with Vanco Madagascar Limited, the company said in
a press release.

The exploration will be conducted in a partnership with
ExxonMobil, which holds a 50% interest, and BG International,
which holds the remaining 30%.  ExxonMobil is the operator.

The press release states that the program includes the drilling
of an exploration well planned for early 2007.

The Majunga Offshore Profond Block, which covers an area of
approximately 15,840 square kilometers, is located in deep water
in northwestern Madagascar, approximately 100 kilometers from
Mahajanga.

                      About SK Corporation

Headquartered in Seoul, South Korea, SK Corporation --
http://eng.skcorp.com/-- is the leading energy and  
petrochemical company with 4,916 employees, KRW22 trillion and
KRW2 trillion in sales and net income, respectively, and 22
offices around the world in 2005.  The company is strategically
positioned as Korea's largest and Asia's leading refiner next to
Sinopec and PetroChina.  SK Corp. currently explores, develops
and produces oil in 13 nations that span Africa, Asia and the
Americas, including Russia, Vietnam, Indonesia, Australia,
Brazil, Cote d'Ivoire, United States, Peru.

Moody's Investors Service gave SK Corp.'s Foreign Currency Long
Term Debt a Ba1 rating effective February 17, 2006.


SK CORP: Opens Fourth BTX Facility
----------------------------------
SK Corporation has commenced operations on its fourth BTX --
benzene, toluene and xylene -- facility in Ulsan Complex, the
company said in a press release.

In early May, the KRW230-billion facility began its commercial
operations with an annual production capacity of 650,000 metric
tons.  This allows SK Corp. to boost its total refining capacity
to 2.8 million metric tons of aromatics per year, the largest
capacity in the domestic Korean petroleum market.

SK Corp.'s executive vice president for production, Jee Sung-
Tae, said that the company is expected to have increased sales
of KRW500 billion with the new facility.  SK Corp. is
aggressively expanding its petroleum business by improving
operational efficiency and increasing facilities.

SK Corp. recorded KRW4.83 trillion in sales for its
petrochemical business in 2005, an increase of 8.7% from the
previous year, and is producing approximately 4.36 million
metric tons of chemicals per year.

                      About SK Corporation

Headquartered in Seoul, South Korea, SK Corporation --
http://eng.skcorp.com/-- is the leading energy and  
petrochemical company with 4,916 employees, KRW22 trillion and
KRW2 trillion in sales and net income, respectively, and 22
offices around the world in 2005.  The company is strategically
positioned as Korea's largest and Asia's leading refiner next to
Sinopec and PetroChina.  SK Corp. currently explores, develops
and produces oil in 13 nations that span Africa, Asia and the
Americas, including Russia, Vietnam, Indonesia, Australia,
Brazil, Cote d'Ivoire, United States, Peru.

Moody's Investors Service gave SK Corp.'s Foreign Currency Long
Term Debt a Ba1 rating effective February 17, 2006.


SK CORP: Incheon Oil to Revive Crude Unit
-----------------------------------------
SK Corp.'s SK Incheon Oil plans to repair and restart a crude
unit mothballed in 2001, Reuters reports.

SK Incheon Oil, taken over by industry leader SK Corp. in early
2006 after a drawn-out bankruptcy process, will resume running
the 75,000 barrel per day crude unit any time next year, a
company source said.

According to Reuters, the former Inchon Oil Refinery Co. Ltd.,
which holds a 3.6% domestic market share, filed for court
receivership in 2001 after it suffered huge debts prior to a
government-led rescue plan in 1999 when Hyundai took over the
refiner from the Hanwha Group.  The refiner also had to shut
down the crude unit to help ease the domestic oil product supply
glut at that time.

SK Incheon Oil is based in Incheon, the western port city of
South Korea, which is closer to China than local rivals.

SK Corp. agreed to buy its smaller rival for US$3 billion late
in 2005, part of an expansion drive targeting export markets
such as China.  The deal was completed early this year.

                      About SK Corporation

Headquartered in Seoul, South Korea, SK Corporation --
http://eng.skcorp.com/-- is the leading energy and  
petrochemical company with 4,916 employees, KRW22 trillion and
KRW2 trillion in sales and net income, respectively, and 22
offices around the world in 2005.  The company is strategically
positioned as Korea's largest and Asia's leading refiner next to
Sinopec and PetroChina.  SK Corp. currently explores, develops
and produces oil in 13 nations that span Africa, Asia and the
Americas, including Russia, Vietnam, Indonesia, Australia,
Brazil, Cote d'Ivoire, United States, Peru.

Moody's Investors Service gave SK Corp.'s Foreign Currency Long
Term Debt a Ba1 rating effective February 17, 2006.


* High Oil Prices Take Toll on Firms
------------------------------------
South Korean companies are struggling to keep soaring
international oil prices from raising their operational costs
and undermining their bottom lines, the Korea Times reports.

Prices for Dubai Crude broke past US$70 a barrel in July raising
concerns for Korea's oil-dependent economy.  Dubai Crude
accounts for over 70% of Korea's oil imports.  Prices are
predicted to go higher to US$80 per barrel, to as high as
US$100.

The Korea Times says that, according to the Korea Chamber of
Commerce and Industry, 63.2% of local companies said, in a May
2006 survey of 627 companies, that they would have to halt
business operations if international oil prices surpass US$80 a
barrel.  About three quarters of respondents said that they have
no effective countermeasures against volatile oil prices.

                        Oil Companies

According to the report, local oil refineries said that they
have considered raising pump prices to cover the costs but
refrained from doing so because of a reluctance to put
inflationary pressures on consumers.

SK Corp., Korea's largest oil refinery, said that it has been
trying to slow the pace of retail price hikes since 2005, eyeing
regions such as Africa, other than the Middle East, for crude
oil to ensure a steady supply of gasoline.

Chemicals and textile maker Hyosung said that although it has
carried out a program to cut energy consumption, high oil prices
are forcing it to rationalize its organization and operations.

Honam Petrochemical, on the other hand, expressed concerns that
rising oil and naphtha prices will squeeze its profitability.

                         Hardest Hit

Reuters relates that among the hardest hit are airline
companies.  Their jet fuel costs are soaring, reducing earnings.

Asiana Airlines said that it has eliminated or reduced
unprofitable routes and is testing flights carrying a minimum
amount of fuel.  As the airline needs to raise ticket prices to
deal with high oil prices, the company expects some profit loss
and a decline in passengers this year.

Hyundai Motor Co. said that because of high oil prices and the
additional burden of a labor dispute, it is refraining from
making investments and expenditure, while Samsung Electronics is
looking at exporting some of its main products such as liquid
crystal displays and mobile phones using low-cost ships.


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

DATUK KERAMAT: Public Shareholding Level Pegged at 70.60%
---------------------------------------------------------
The public shareholding spread of Datuk Keramat Holdings Berhad
as of June 30, 2006, is 70.60% comprising of 17,390 public
shareholders holding not less than 100 shares each.

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 Datuk Keramat Holdings
  
Headquartered in Pulau Pinang, Malaysia, Datuk Keramat Holdings
Berhad is engaged in investment and property holding.  The
Company is also involved in management services; property
investment services; project management services and
development; credit and financing activities; distribution and
publication of magazines; media design and advertising;
management of supermarket and departmental store; trading and
distribution of pharmaceutical, management of car park, garment
manufacturing and financial services.  The Group faced numerous
suits filed by financiers and trade creditors who have alleged
that outstanding debts are owed to them.  On January 24, 2005,
the Company was served with a wind-up petition by Affin Bank
Bhd, who claimed a sum of MYR15.66 million as of May 31, 2002,
in respect of revolving credit facilities granted to the
Company.  The Company has been suffering tight liquidity and is
facing delisting due to its failure to submit its financial
reports to Bursa Malaysia.  In an effort to settle the debts and
come to an agreement with the creditors, the Companies had
prepared an initial scheme for the purposes of a debt
restructuring scheme under Section 176(10) of the Companies Act,
1965.


FEDERAL FURNITURE: Public Shareholders Hold 59.24% Shares
---------------------------------------------------------
Federal Furniture Holdings Berhad has fully complied with
Paragraph 8.15 of the Bursa Malaysia Securities Berhad's Listing
Requirements whereby a listed issuer must ensure that at least
25% of the total listed shares are in the hands of a minimum
public shareholders holding not less than 100 shares each.

As of June 30, 2006, 59.24% of Pan Malaysian shares were held by
2,770 shareholders holding not less than 100 shares each.

                About Federal Furniture Holdings

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

On June 24, 2004, the Board of Directors of Federal Furniture
has proposed a capital reduction, a share premium reduction,
rights issue with warrants and a debt settlement scheme with
some of its financial institution lenders to restructure and
settle a substantial part of its total bank borrowings.  On July
5, 2006, the Company submitted its Regulkarization Plan to Bursa
Malaysia Securities Berhad for approval.

As of March 31, 2006, the Company's balance sheet showed total
assets of MYR145,551,934 and total liabilities of
MYR151,217,536, resulting into a shareholders' deficit of
MYR5,665,602.


GEORGE TOWN: Unveils 38.48% Public Shareholding Level
-----------------------------------------------------
George Town Holdings Berhad disclosed that its public
shareholding spread as of June 30, 2006, is 38.48% comprising
5,094 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 George Town Holdings Berhad

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


LANKHORST BERHAD: Files Amended First Quarter Report
----------------------------------------------------
Lankhorst Berhad on July 18, 2006, filed its amended financial
report for the quarter ended March 31, 2006.

In the amended report, the Group's revenue reduced by 60.9% to
MYR10.015 million compared with the previous corresponding
quarter's result.  The Group registered a profit before tax of
MYR6.06 million in the first quarter of 2006, as compared with
the MYR0.29 million profit before tax in the first quarter of
2005.

Lankhorst Berhad's net profit for the quarter ended March 31,
2006, totaled MYR6.056 million, compared with MYR0.323 million
net profit for the same period last year.

The Company's revised balance sheet as of March 31, 2006,
revealed total assets of MYR105.613 million and total
liabilities of MYR203.251 million resulting into a stockholders'
deficit of MYR97,638,000.

There was no interim or final dividend declared or recommended
for the quarter under review.

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

   http://bankrupt.com/misc/tcrap_lankhorstberhad071906.pdf

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

   http://bankrupt.com/misc/tcrap_lankhorstbhd051706.doc

                     About Lankhorst Berhad

Headquartered in Selangor, Malaysia, Lankhorst Berhad engages in
civil and geotechnical engineering services, building
construction, trading and application of geosynthetic materials.  
Other activities include property development and investment,
water and wastewater treatment, oil and gas contracting and
supply, quarry operations, railway track construction,
mechanical and electrical construction, soil improvement
services and trading of construction supply.  The Company has
been incurring a string of losses due to high operating costs
and its units are facing winding up actions.  It also defaulted
on several loan facilities.

On April 24, 2006, Lankhorst was classified as an affected
listed issuer and is required to comply with the provisions of
the Bourse's Practice Note 17/2005 category.  In the event
Lankhorst fails to comply with all the provisions of PN 17/2005,
Bursa Securities may take any action against the Company
including but not limited to delisting proceedings against
Lankhorst.  The Company is currently under the protection of a
Restraining Order pursuant to Section 176 of the Companies Act,
1965 and currently formulating a debt and capital restructuring
scheme to improve the Company's financial position to be
announced in due course.


LANKHORST BERHAD: Provides Default Status Update
------------------------------------------------
Lankhorst Berhad disclosed that, as of June 30, 2006, its total
loans in default has amounted to MYR97,291,791,000.

The Company's board of directors believes that the Company is
insolvent and is unable to pay its debt in full within the next
12 months.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company is in the process of formulating a restructuring scheme
to address the default issue and its group of companies have
been granted a Restraining Order by the Kuala Lumpur High Court
on May 30, 2005, which has been subsequently extended until
September 7, 2006.

Details of the facilities defaulted by the Company are available
for free at:

    http://bankrupt.com/misc/tcrap_lankhorstbhd071906.pdf

                     About Lankhorst Berhad

Headquartered in Selangor, Malaysia, Lankhorst Berhad engages in
civil and geotechnical engineering services, building
construction, trading and application of geosynthetic materials.  
Other activities include property development and investment,
water and wastewater treatment, oil and gas contracting and
supply, quarry operations, railway track construction,
mechanical and electrical construction, soil improvement
services and trading of construction supply.  The Company has
been incurring a string of losses due to high operating costs
and its units are facing winding up actions.  It also defaulted
on several loan facilities.

On April 24, 2006, Lankhorst was classified as an affected
listed issuer and is required to comply with the provisions of
the Bourse's Practice Note 17/2005 category.  In the event
Lankhorst fails to comply with all the provisions of PN 17/2005,
Bursa Securities may take any action against the Company
including but not limited to delisting proceedings against
Lankhorst.  The Company is currently under the protection of a
Restraining Order pursuant to Section 176 of the Companies Act,
1965 and currently formulating a debt and capital restructuring
scheme to improve the Company's financial position to be
announced in due course.

The Company's March 31, 2006, balance sheet revealed total
assets of MYR105,613,000 and total liabilities of MYR203,251,000
resulting into a stockholders' deficit of MYR97,638,000.


MALAYSIA AIRLINES: Flying to Rome Five Times Weekly
---------------------------------------------------
The governments of Malaysia and Italy signed a memorandum of
agreement on July 18, 2006, allowing Malaysia Airlines to fly
five times a week between Kuala Lumpur and Rome, Bernama
reports.

In addition, the Agreement will enable Malaysia Airlines to
operate three all-cargo services per week from Kuala Lumpur to
Rome or Milan.  It also provides Malaysia Airlines and Air
Italia with the right to enter into a code-sharing arrangement,
Bernama says.

The MoU also notes that Malaysia and Italy will hold bilateral
talks next year to discuss a daily frequency for passenger
services between Kuala Lumpur and Rome, the report says.  This
proposed expansion to daily services will enable Malaysia
Airlines to hub its operations via Rome to major cities in
Europe.

The air services agreement between Malaysia and Italy was signed
on March 23, 1995 in Kuala Lumpur, and replaced a similar
agreement signed by both countries on Aug 29, 1968, Bernama
says.  Malaysia Airlines had commenced operations into Rome on
March 27, 1994.

According to Bernama, both countries signed a confidential MoU
on July 18, 1997, which, among others, provided the right for
the designated airlines of either country to operate a maximum
of three weekly services.

The airlines of both countries were not entitled to exercise
fifth freedom rights on the intermediate and beyond points until
the Transport Ministry recently decided to land the additional
flights in the effort to enable the growth of Malaysia Airlines'
services, Bernama 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.


MYCOM BERHAD: Public Shareholding Level Meets Requirement
---------------------------------------------------------
Mycom Berhad's public shareholding spread according to the
Record of Depositors as of June 30, 2006, stood at 72.32% of its
total paid up capital with 2,497 public shareholders holding not
less than 100 shares.

Therefore, the Company has complied with Bursa Malaysia
Securities Berhad's public spread 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 Mycom Berhad

Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad is engaged
in the provisions of granite quarry services, manufactures and
sells latex rubber thread, tape, plywood, laminated board and
sawn timber, cultivates oil palm fruits, and develops property.  


The Company is also involved in hotel operation, provision of
management and financial services and investment holding.  
Operations of the Group are carried out in Malaysia and South
Africa.

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


NORTH BORNEO: Complies with Public Spread Requirement
-----------------------------------------------------
The North Borneo Corporation Berhad's public shareholding spread
as of June 30, 2006, was 93.42% comprising 10,034 public
shareholders holding not less than 100 shares each.

Consequently, Multi-Usage has complied with the public
shareholding spread requirement pursuant to the Listing
Requirements of Bursa Malaysia Securities Berhad.

                  About The North Borneo Group

Headquartered in Sabah, Malaysia, The North Borneo Corporation
Berhad engages in the management of forest management unit and
investment holding.  The Group operates in Malaysia and Bermuda.  
Due to its continuous losses, the Kuala Lumpur Stock Exchange
placed the Company under the Practice Note 4/2001 category in
April 2001 and was ordered to start regularizing its financial
condition.  On April 28, 2005, the Securities Commission has
agreed to North Borneo's proposal to dispose of its business as
part of the Company's efforts to regularize its finances and
restructure its debts.  The Plan, however, met objections from
creditors.  On March 6, 2006, two scheme creditors of North
Borneo Corp. -- Sabah Development Bank and Prokhas Sdn Bhd --
withdrew their support of the Company's proposed debt
restructuring, saying that they are no longer agreeable to the
terms of the planned business disposal as part of the
restructuring program.

The Company's March 31, 2006, balance sheet showed total assets
of MYR1,662,000 and total liabilities of MYR163,379,000
resulting into a MYR161,717,000 deficit in shareholders' funds.


OLYMPIA INDUSTRIES: Public Shareholding Stands at 71.35%
--------------------------------------------------------
Olympia Industries Berhad's public shareholding spread as of
June 30, 2006, is 71.35% comprising 31,537 shareholders holding
not less than 100 shares each.

Accordingly, Olympia Industries 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 Olympia Industries

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

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


PANGLOBAL BERHAD: Revises Some Terms of Restructuring Scheme
------------------------------------------------------------
PanGlobal Berhad's board of directors on July 18, 2006, resolved
to revise certain terms of the Company's Proposed Restructuring
Scheme, which was approved by the Securities Commission on
April 6, 2006.

The Board proposed to revise the effective capital reduction
level for the existing ordinary shares of MYR1 each in PanGlobal
from 50% to 60%.  The new level will bring the capital reduction
exercise to be on par with the 60% discount and waiver to be
given by the Scheme Creditors for the value of their portion of
unsecured debts under the Proposed Debt Settlement.

The capital reduction exercise will now involve:

   -- the proposed cancellation of RM0.60 from every existing
      ordinary share of MYR1 each in PanGlobal resulting in an
      existing issued and paid-up share capital of
      MYR140,130,340 comprising 140,130,340 ordinary shares of
      MYR1 each being reduced to MYR56,052,136 comprising
      140,130,340 ordinary shares of MYR0.40 each; and

   -- the proposed consolidation of the 140,130,340 ordinary
      shares of MYR0.40 each in PanGlobal into 112,104,272
      ordinary shares of MYR0.50 each in PanGlobal.

As announced on September 8, 2005, the rights issue exercise is
expected to raise gross proceeds of MYR210.196 million.  In
order for the rights issue exercise to raise this same amount of
proceeds taking into account the revised capital reduction
level, the entitlement basis for the rights issue exercise is
required to be revised.  Thus, the Proposed Rights Issue will
now entail the renounceable rights issue of 420,391,020
PanGlobal shares at an issue price of MYR0.50 per PanGLobal
share on the basis of 15 Rights Shares for every four PanGlobal
Shares held after the Proposed Capital Reduction.

Furthermore, the settlement to a Secured Scheme Creditor --
Maybank Berhad -- which holds MYR182,695,117 nominal value of
RCSLS via a RCSLS buy-back arrangement, has been revised to take
into account monies in an escrow account with an ascribed value
of MYR11.816 million, which was inadvertently omitted earlier.  
The revised settlement to Maybank Berhad in relation to its
RCSLS under the Proposed Debt Settlement can be summarized as:

                            Original    Revised    Variance
                             MYR'000    MYR'000     MYR'000

   Outstanding debt as of
   September 1, 2005         182,695    182,695           -

   ERV of security held       47,800     59,616      11,816

   Nominal value of RCSLS
   not covered by security   134,895    123,079     (11,816)

   Buy-back price            101,758    108,848       7,090

   No of free Warrants
   to be issued               16,862     15,385      (1,477)

As a result, the total cash settlement to the Scheme Creditors
under the Proposed Debt Settlement will be increased by
MYR7.090 million to MYR341.142 million and the number of free
Warrants to be issued under the Proposed Debt Settlement has
been reduced by 1.477 million to 68.340 million.  There are no
changes to the basis of settlement under the Proposed Debt
Settlement or the total settlement to the other Scheme
Creditors.

Resulting from the revisions, the total indicative proceeds of
MYR360.196 million from the Proposed Rights Issue and Proposed
PGI Disposal is expected to be utilized as:

   Proposed utilization            Original        Revised
                                    MYR'000        MYR'000

   Buy-back of Loan Stocks
   and settlement under the
   Proposed Debt Settlement
   Scheme                           334,052        341,142

   Financing of the working
   capital requirements of the
   PanGlobal Group and to defray
   expenses incidental to the
   Proposed Restructuring Scheme     26,144         19,054

   Total                            360,196        360,196

There are no other changes to the terms of the Proposed
Restructuring Scheme.  These revisions have been proposed
resulting from feedback received from the Scheme Creditors whose
support is critical to ensure that the Proposed Restructuring
Scheme can be successfully implemented.

The Proposed Restructuring Scheme is expected to enhance the
future earnings of the PanGlobal Group.

The potential effect of the Proposed Restructuring Scheme on the
dividends to be declared by PGB for the future financial years
would be dependent on the dividend rate to be determined after
taking into consideration the financial performance of the
PanGlobal Group.

                     About PanGlobal Berhad

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

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


PAXELENT CORPORATION: Unit Files MYR1-Mln Suit Against Dibena
-------------------------------------------------------------
On July 14, 2006, Paxelent Corporation Berhad's subsidiary, Mass
Media Interactive Sdn Bhd, filed with the Kuala Lumpur High
Court a Writ of Summons against Dibena Enterprise Sdn Bhd, to
recover MYR1,000,000.

The amount is in respect of a MYR1-million advance granted by
Mass Media to Dibena for the subscription of 1,000,000 ordinary
shares of MYR1 each in Konsortium Multimedia Sdn Bhd.

The total sum consists of:

   -- MYR500,000, which was obtained in August 11, 2000, for the
      subscription of 500,000 ordinary shares of MYR1 each in
      KOMMS; and

   -- an additional sum of MYR500,000 secured in December 15,
      2000, for the subscription of additional 500,000 ordinary
      shares of MYR1 each in KOMMS.

Under the suit, Mass Media is asserting a MYR1-million claim
plus 8% annual pre-judgment and post-judgment interests.

Mass Media is also demanding payment for legal costs and further
relief that the Court deems fit.

                   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.


TANCO HOLDINGS: Court Dismisses Stay Order Extension Request
------------------------------------------------------------
The Kuala Lumpur High Court, on July 18, 2006, dismissed with
costs Tanco Holdings Berhad's application to extend by another
three months the restraining order granted by the Court.

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

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

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

Meanwhile, the Company will continue to proceed with its debt
restructuring scheme together with creditors under Section 176
of the Companies Act, 1965.

                  About Tanco Holdings Berhad

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


TRU-TECH HOLDINGS: Public Holds 46.77% of Shares
------------------------------------------------
Tru-Tech Holdings Berhad has complied with the public
shareholding spread requirement of Bursa Malaysia Securities
Berhad with 46.77% of its shares being held by 2,405 public
shareholders holding not less than 100 shares.

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 Tru-Tech Holdings

Headquartered in Ulu Tiram Johor, Malaysia, Tru-Tech Holdings
Berhad's principal activity is the manufacturing of electronic
components and products.  Its other activities include
development and distribution of switch-mode power supplies and
investment holding.  The Group operates in Malaysia, Singapore,
United States and United Kingdom.  On May 27, 2004, Tru-Tech
announced a series of proposed corporate exercises to address
its losses.  These include the incorporation of a new entity as
Tru-Tech's holding company, and the disposal of its existing
contract-assembly business to a third party.  Much of Tru-Tech's
future performance will hinge on its ability to restructure its
debts and resolve its poor liquidity.  Bursa Malaysia Securities
Berhad, on May 26, 2006, decided to suspend trading in the
securities of Tru-Tech Holdings Berhad from June 5, 2006, as the
Company has failed to regularize its financial condition
pursuant to the Bourse's Listing Requirements.

The Company's March 31, 2006, balance sheet showed total assets
of MYR43,930,000 and total liabilities of MYR131,614,000,
resulting into a stockholders' deficit of MYR87,684,000.


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

ABS-CBN BROADCASTING: To Switch Off Analog TV For Digital
---------------------------------------------------------
ABS-CBN Broadcasting Corp. is applying for a license to provide
digital television-terrestrial service services, aligned with
the global broadcast industry's thrust to switch off analog
television programming as early as 2010, Telecom Asia reports.

In its letter to the National Telecommunications Commission,
ABS-CBN said that it "remains legally, financially and
technically qualified to maintain and operate" the DTT service.

Telecom Asia notes that the move is to complement ABS-CBN's
efforts to upgrade its broadcast operations and enhance the
efficiency of its service.

The Telecom Asia report adds that according to ABS-CBN, the
proposed conversion of DWWX-TV station (Channel 2) from analog
to digital broadcast is being undertaken to aid the Philippine
government's efforts to effect migration of television broadcast
stations from analog to digital transmissions, "at the earliest
possible time."

                            About DTT

Telecom Asia explains that broadcast providers with DTT services
can offer digital programming while still leveraging on their
existing analog infrastructure.  DTT technology makes use of
aerials instead of satellite dishes and cable to offer
television signals that are digitized and compressed, allowing
providers to carry more information faster, simultaneously, and
with better sound and picture quality.

Broadcast companies worldwide, particularly those operating in
countries with low cable and satellite penetration, are starting
to make inroads into DTT programming.  These nascent services
include interactive TV, multi-channel programming, interactive
advertising, TV-based online shopping and banking and the
delivery of premium television content directly to mobile
phones.

                          *     *     *

ABS-CBN Broadcasting or Alto Broadcasting System-Chronicle
Broadcasting Network -- http://www.abscbn-ir.com/-- is a  
leading Philippine radio and television broadcasting network and
multimedia company.  It was the first television station founded
in the Philippines in 1953.  The network's main broadcast
facilities are located at the ABS-CBN Broadcast Center, Mother
Ignacia St., Diliman, Quezon City, Philippines.

ABS-CBN's senior secured debt was given a Ba3 rating by Moody's
Investor Service.


ABS-CBN BROADCASTING: California-Based Unit Upgrades Services
-------------------------------------------------------------
ABS-CBN Broadcasting Corp.'s United States-based subsidiary,
ABS-CBN International, has completed the first round of
technology upgrades and the launch of voice, video and data
services at the San Francisco International Gateway satellite
uplink center in Richmond, California, Telecom Asia reports.

ABS-CBN's strategic upgrades are designed to boost the gateway's
capabilities for triple-play services.  The company purchased
the facility from Loral Space and Communications Corp. in
November 2005, and received FCC licensing approval in April
2006.

Telecom Asia explains that SFIG, a large "carrier class"
satellite communications facility, provides Northern California
with access to communication satellites serving North America,
Asia, Latin America and select European satellites.  With other
facilities, it also provides services to the Middle East and
Africa.  It has 18 antennas, emergency generator backup, fiber
connectivity from two vendors, along with C-band and Ku-band
capabilities.

                   About ABS-CBN Broadcasting

ABS-CBN Broadcasting or Alto Broadcasting System-Chronicle
Broadcasting Network -- http://www.abscbn-ir.com/-- is a  
leading Philippine radio and television broadcasting network and
multimedia company.  It was the first television station founded
in the Philippines in 1953.  The network's main broadcast
facilities are located at the ABS-CBN Broadcast Center, Mother
Ignacia St., Diliman, Quezon City, Philippines.

ABS-CBN's senior secured debt was given a Ba3 rating by Moody's
Investor Service.


GLOBE TELECOM: Moody's Affirms Ba2 Foreign Currency Ratings
-----------------------------------------------------------
Moody's Investors Service has raised the local currency
corporate family rating of Globe Telecom, Inc. to Baa2 from Baa3
with a stable outlook.  This action concludes the review for
possible upgrade that commenced on March 29, 2006.

At the same time, Moody's has withdrawn the Baa2 corporate
family rating and assigned a Baa2 local currency issuer rating
-- stable outlook -- given the company is an investment grade
without issues of subordination.

Moody's affirmed Globe's Ba2 foreign currency senior unsecured
ratings, which were not subject to the review, with a negative
outlook.

"Globe continues to demonstrate an ability to sustain a stable
operating platform, including sound credit metrics, and is one
of two entities enjoying an enviable position in the healthy
Filipino cellular market," says Moody's Charles Macgregor,
VP/Senior Credit Officer and lead analyst for the company.

"The company, however, is exposed to moderate systemic risk and
may be susceptible to changes in government fiscal policy and/or
the regulatory environment," Moody's Macgregor adds.

Globe's rating reflects the application of Moody's Joint Default
Analysis to Government Related Issuers.  In accordance with this
rating methodology, the Baa2 rating of Globe encompasses the
following inputs:

   * Baseline credit assessment of 10 -- on a scale of 1 to 21,
     where 1 represents lowest credit risk;

   * Aa2 local currency rating of Singapore Telecommunications
     (SingTel) -- its 44% shareholder;

   * Low dependence; and

   * Medium support.

The baseline credit assessment of 10 is underpinned by Globe's
position as the second largest telecommunications operator in
the Philippines as well as its healthy financial profile and
free cash flow generative status, including a sound debt
maturity and liquidity profile.

On the other hand, the BCA also factors in Globe's exposure to
an inherently volatile regional economy and the risks associated
with the political uncertainty evident in the Philippines.
Notably, any deterioration in the political environment and
changes in the regulatory regime could impact Globe's ongoing
access to the capital markets and its prospects for continued
growth.

Globe's foreign currency senior unsecured debt rating of Ba2 is
above the Philippines' foreign currency country ceiling of B1.
The foreign currency senior unsecured debt rating incorporates
convertibility risk, which is the likelihood of the government
declaring a debt moratorium to counter a foreign currency
crisis.  Moody's views foreign currency bonds subject to
international law as less likely to be subject to a debt
moratorium than foreign currency obligations subject to local
law.  Therefore, there is a differential between Globe's foreign
currency bond rating and the sovereign rating.  As such, Globe's
foreign currency bond rating is a function of its own risk of
default and the probability of a Philippine government default
on its foreign debt, the likelihood that the government would
declare a moratorium in the event of a default and, if it did,
the chances that it would exempt a company such as Globe.

In accordance with Moody's global rating methodology for
telecommunications companies, Globe's overall performance
measurements on a consolidated basis, relative to the rating
methodology, indicate a Baa3 rating category, which is
consistent with its BCA.

The outlook on the local currency issuer rating is stable, while
the foreign currency rating has a negative outlook.

Globe's credit metrics already exhibit a strong investment grade
quality and hence upward rating pressure is now a function of a
more stable economic, political, and social environment, which
could reduce the uncertainties associated with its prospective
operating environment.  Globe's baseline credit assessment may
experience upward pressure if absolute EBITDA exceeds
PHP50 billion with a margin over 65% and with adjusted debt to
adjusted EBITDA falling towards 1x.

Negative rating action may be evident if the company adopts a
more aggressive financial policy concurrent with major M&A
activity and a downturn in its operating environment, be it
driven by political, economic or regulatory factors.  Globe's
BCA may experience downward pressure with an EBITDA margin
falling below 50% in conjunction with an adjusted debt to
adjusted EBITDA ratio approaching 2x.

Event risk is, however, apparent due to sovereign-related issues
that could manifest in changes in either the fiscal or
regulatory environments.  In addition, Globe's foreign currency
ratings are sensitive to movements in the sovereign rating.

In addition to the factors affecting the baseline credit
assessment, the ratings may also be impacted by changes in the
ratings of SingTel, and by changes in Moody's assessments of
default dependence and support.

Globe Telecom, Inc., is the second largest telecommunications
provider in the Philippines.


LEPANTO CONSOLIDATED: Board Okays Stock Rights Offer
----------------------------------------------------
Lepanto Consolidated Mining Co. said on July 18, 2006, that its
board of directors had approved an offering of one-for-eight
stock rights in order to raise PHP639 million to pay off its
debts, the Philippine Daily Inquirer reveals.

According to a disclosure to the Philippine Stock Exchange, the
Company offered the stock rights at PHP0.20 per share, with
shareholders having the option to subscribe one common share for
every eight shares held.  According to Lepanto, the offer period
may begin on Sept. 11, 2006, and the record date is set for
Aug. 16, 2006.

The Philippine Star relates that an initial payment of 50% is
needed upon subscription, and the balance should be paid by
October 20, 2006.  Proceeds from the stock offering will go
toward payment of PHP219 million in debts due this year and
settlement of employee-related accounts and advances totaling
PHP158.07 million to shareholders.

The Troubled Company Reporter - Asia Pacific reported on
July 14, 2006, that with the rise of world copper prices,
Lepanto hopes to reopen its copper-gold mine in Mankayan,
Benguet in September.  The mine's operations were suspended in
1997 on low copper prices.

The Star says that the Company is expecting to spend over
PHP1 billion in development costs for the Benguet Mine, which is
slated to produce 7,000 tons of copper concentrate in its first
year of operations.

The increasing price of gold has led Lepanto to target a net
income of PHP300 million this year, against a PHP409.53-million
net loss in 2005.  The Company was able to break even in the
first quarter of 2006 with a yield of 15,500 ounces of gold and
20,000 ounces of silver, and aims to yield up to 24,000 ounces
of gold and silver per quarter.

                          *     *     *

Lepanto Consolidated Mining Company --  
http://www.lepantomining.com/-- is one of Philippines' top  
producers of gold and its by-products, copper and silver.  The
Company also has investments in other areas through its
subsidiaries such as hauling business, diamond drilling
business, insurance business, manufacturing of industrial
diamond tools for mining exploration, marble cutting and the
construction industry.      

Lepanto Consolidated is working to recover from a PHP400-billion
loss incurred in the past two years due to labor disputes.


NATIONAL POWER: Plans to Retain One-Day Power Sales Program
-----------------------------------------------------------
National Power Corp. plans to retain its one-day power sales
program and has made efforts to improve the program in order to
serve clients better, the Philippine Inquirer relates.

Napocor President Cyril del Callar released the statement to
assure customers after the program was temporarily suspended in
May and June 2006.  This Suspension caused the Philippine
Chamber of Commerce & Industry and the Federation of Philippine
Industries to seek a more reliable implementation method, the
Philippine Star says.

The Inquirer states that according to PCCI President Donald Dee,
the sudden cancellation created a negative effect on power-
dependent industries such as cement and steelmaking, and raised
costs by PHP20 million each time.

Napocor's one-day power sales program enables the Company to
sell excess power via online public bidding to customers,
especially those with self-generation capacity of at least one
megawatt.

The Star says that, according to Mr. Callar, the suspensions,
which occurred from May 23-27 and June 5-11, were due to a lack
of power reserves to bid out on the said dates.  He further
added that the program was based on availability, meaning they
could only sell power in excess of the necessary reserves of
13.1% of peak demand.  The temporary suspensions occurred due to
the unscheduled shutdown of four power plants, hence the Company
did not have enough excess power to sell.

However, the Company has included a commitment to guarantee a
three-day price guarantee to firms for excess power that would
be bid out, in order to prevent further suspensions.

                          *     *     *

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.


PHIL. LONG DISTANCE: Moody's Affirms Ba2 Foreign Currency Rating
----------------------------------------------------------------  
Moody's Investors Service has raised the local currency
corporate family rating of Philippine Long Distance Company to
Baa3 from Ba1 with a positive outlook.  This action concludes
the review for possible upgrade commenced on March 29, 2006.

At the same time, Moody's has withdrawn the Baa3 corporate
family rating and assigned a Baa3 local currency issuer rating
-- positive outlook -- given the company is investment grade
without issues of subordination.

Moody's has affirmed PLDT's Ba2 foreign currency senior
unsecured ratings, which were not subject to the review, with a
negative outlook.

"The upgrade has been prompted by continued improvements in
PLDT's credit profile, such that it now enjoys a lowly geared
balance sheet, a 65% share in revenue terms of the Filipino
market, where only one major competitor is present, and has
flexibility significant enough to invest its free cash flows
into upgrading its technology base," says Moody's Charles
Macgregor, VP/Senior Credit Officer and lead analyst for the
company.

Moody's notes that the company has:

   -- firm growth prospects;

   -- manageable capex requirements notwithstanding prospective
      investment in 3G technology and a next generation fixed
      network;

   -- no meaningful structural subordination, notwithstanding
      debt at its Smart Cellular subsidiary;

   -- conservative financial policies; and

   -- a sound liquidity risk profile to ensure that it is
      appropriate for an investment grade company.

"The company, however, remains exposed to changes in government
fiscal policy and, to a lesser degree, regulatory and foreign
exchange risk, such that continued open access to global capital
markets may be threatened by any precipitous developments within
the Philippines.  At the same time, the magnitude of this risk
diminishes as PLDT repays maturing debt given lack of need to
access debt markets," Moody's Macgregor adds.

The local currency issuer rating outlook is positive, while the
foreign currency rating has a negative outlook and would be
downgraded if the Philippines' B1 foreign currency country
ceiling with negative outlook is downgraded.

In accordance with Moody's global rating methodology for
telecommunications companies, PLDT's overall performance
measurements on a consolidated basis, relative to the rating
methodology, indicate a Baa3 rating category being constrained
by country specific factors, which is consistent with its Local
Currency rating.

The positive outlook reflects that PLDT's credit metrics already
exhibit a strong investment grade quality; hence upward pressure
on the local currency rating is now a function of a more stable
economic, political and social environment, and which could
reduce the uncertainties associated with the company's
prospective operating environment.  Indicators of a stabilising
environment could be reflected by a strengthening of EBITDA,
both absolutely and as a percentage of revenue above PHP90
billion and 65% respectively.  A seamless transition to a 3G
platform would also be a positive development.  The foreign
currency ratings would further be upgraded with an upgrade in
the sovereign rating.

PLDT currently enjoys a healthy financial and operating risk
profile, and downward pressure on the rating is not expected.
Event risk is, however, apparent due to sovereign-related issues
that could manifest in changes to either the tax or regulatory
environments.  Such an outcome may be seen in weaker credit
metrics, specifically with the EBITDA margin falling below 50%,
debt/EBITDA rising above 2.0x, and FFO Interest coverage
trending towards 4x.  In addition, PLDT's foreign currency
ratings are sensitive to movements in the sovereign rating.

Philippine Long Distance Company, based in Manila, Republic of
Philippines, is that country's leading provider of integrated
telecommunications services.


PHILIPPINE NATIONAL BANK: Posts 35% Rise in Half-Year Profit
------------------------------------------------------------
Philippine National Bank posted a 35% increase in net profit for
the first six months of 2006 at PHP425 million, against a
PHP315-million net profit for the same period in 2005, the
Philippine Inquirer relates, citing Xinhua Financial News.

According to a statement by the Bank, the profit was attributed
to an increase in its trading and foreign exchange income and
interest income on loans and receivables based on central bank
policies, though it did not disclose figures.  PNB's earnings
for the second quarter stood at PHP235 million.

                          *     *     *

Philippine National Bank -- http://www.pnb.com.ph/-- is the  
Philippine's first universal bank established on July 22, 1916.   

The Bank's core business consists of lending and deposit-taking
activities from corporate, middle market and retail customers,
as well as various government units.  Its other principal
activities include bill discounting, fund transfers, remittance
servicing, foreign exchange dealings, retail banking, trust
services, treasury operations and trade finance.  Through its
subsidiaries, PNB engages in a number of diversified financial
and related businesses such as international merchant banking,
investment banking, life/non-life insurance, leasing, financing
of small-and-medium-sized industries, and financial advisory
services.  It introduced innovations such as the bank on wheels,
computerized banking, ATM banking, mobile money changing and
domestic travelers' checks.

PNB is on the fourth year of its five-year rehabilitation plan
approved by the Bangko Sentral ng Pilipinas.  The rehabilitation
plan, which was signed in May 2002, stipulated these financial
conditions:

   * PHP7.8 billion of the PHP25 billion assistance extended by
     the BSP and Philippine Deposit Insurance Corp. would be
     converted into equity;

   * PNB will partially settle PHP10 billion of its obligation
     by way of dacion en pago through the assignment of
     government and government-related receivables; and

   * PNB will maintain PHP6.1 billion as a 10-year loan at an
     interest rate equivalent to the 91-day T-Bill rate plus 1
     percentage point to be re-priced quarterly.

PNB secured the approval of the Securities and Exchange
Commission in July 2002 to undergo quasi-reorganization, which
reduced the par value of its shares from PHP60 per share to
PHP40 per share.  This was done in order to accommodate the
PHP7.8 billion debt-to-equity conversion of the PDIC through the
issuance of 195,175,444 preferred shares.  The debt-to-equity
conversion allowed the Government to have a direct hand in the
governance and management of the Bank until full divestment of
its equity holdings.  The move resulted in the Government
controlling 44.98% of the Bank, while the Lucio Tan Group holds
a 44.98% stake.


VICTORIAS MILLING: Deficit Narrows on PHP430-Million Net Profit
---------------------------------------------------------------
Victorias Milling Corporation posted a PHP429.83-million net
profit for the quarter ended May 31, 2006, a 286% increase year-
on-year from the previous corresponding quarter's
PHP111.29-million income.

The Troubled Company Reporter - Asia Pacific earlier reported
that Victorias Milling posted a consolidated net loss of
PHP236.4 million for the financial year ended August 31, 2005.

The Company's revenue grew 41% to PHP3.36 billion in the May
2006 quarter from PHP2.39 billion in the May 2005, due to:

   * a 30.3% increase in cane supply representing 236,640
     metric tons more versus the targeted cane supply and also       
     higher by 7.2% against same quarter last year;

   * a 28.7% increase in raw sugar production compared with the
     targeted volume.  The current result, however, is lower
     than last year's production volume; and

   * higher raw sugar mill share prices.

As of May 31, 2006, the Company's consolidated balance sheet
showed strained liquidity, with PHP1.27 billion in total current
assets available to pay PHP2.03 billion in total current
liabilities coming due within the next 12 months.

The Company's consolidated total assets as of May 31, 2006, was
PHP8.40 billion, while its total liabilities was at
PHP9.78 billion.

                      Going Concern Issues

Victorias Milling outlines its going concern issues in its 17Q
filing, saying that the Company incurred significant losses from
operations and has an accumulated deficit of PHP3.26 billion and
PHP3.7 billion as of May 31, 2006, and August 31, 2005,
respectively, and capital deficiency of PHP1.37 billion and
PHP1.8 billion as of May 31, 2006, and August 31, 2005,
respectively, which adversely affected its financial condition
and cash flow position.

VMC defaulted on payments of its maturing liabilities to
creditors, which are currently under a debt-restructuring
program.  Additionally, the Company discloses that except for
Victorias Foods Corporation, its other consolidated subsidiaries
-- Canetown Development Corporation, Victorias Quality Packaging
Company, Inc., and Victorias Agricultural Land Corporation --
have incurred significant losses from operations, and have
accumulated deficits and capital deficiencies, which have
adversely affected their financial condition and cash flow
position.  Moreover, related company North Negros Marketing Co.,
Inc., has declared bankruptcy, while Caneland Sugar Corporation
has ceased milling operations in April 1997.

Victorias Milling's report for the quarter ending May 31, 2006,
is available for free at:

http://bankrupt.com/misc/Victorias_Milling_03312006QuarterlyReport.pdf

                     About Victorias Milling

Headquartered in Victorias City, Bacolod, Victorias Milling
Company Inc. -- http://www.victoriasmilling.com/-- was   
organized in 1919 and is engaged in the acquisition,
construction, maintenance and operation of sugar mills, as well
as other related business activities.  Through the years, the
company has expanded its operations to include a foundry, a
machine shop, a fabrication shop, a food canning company, an
organic fertilizer plant and a piggery.

On July 4, 1997, the Company filed an application with the
Securities and Exchange Commission to suspend payments to
creditors.  On July 8, 1997, the SEC issued a stay order
restraining all Victorias Milling creditors or any of its
subsidiaries from enforcing their claims, to allow the Company
or any of its subsidiaries to continue to their normal business
operations.  The SEC also ordered the formation of a Management
Committee to oversee the Company's operations and
rehabilitation.

The Company is currently undergoing debt restructuring.


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

GEOCON PILING: Creditors Set to Meet on July 31
-----------------------------------------------
Creditors of Geocon Piling & Engineering Pte Limited will
convene at 7 Shenton Way, at Sectional Practice Hall Level 2,
Singapore Conference Hall, Singapore 068810 on July 31, 2006, at
3:00 p.m.

During the meeting, creditors will be asked to:

   -- receive a status update from the liquidator;

   -- appoint a Committee of Inspection pursuant to
      Section 277 (1) of the Companies Act (Cap 50);

   -- nominate and authorize a member of the COI and the
      Liquidator to open, close or operate one or more  
      bank accounts, and close any existing bank accounts;

   -- appoint a solicitor to assist the liquidator in his
      duties;

   -- give authority to the liquidators to compromise debts; and

   -- consider any other matter, which may properly be brought
      before the meeting.

Creditors are asked to establish proofs of debt with the
liquidator by July 28, 2006, at 12:00 p.m., for them to attend,
nominate and vote at the said meeting.

As reported by the Troubled Company Reporter - Asia Pacific, the
High Court of the Republic of Singapore on June 30, 2006, issued
a wind-up order against Geocon Piling & Engineering Pte Limited.  
In this regard, Tham Chee Chong was appointed as liquidator.

Geocon's creditor -- Resources Piling Pte Limited -- filed the
wind-up application on June 1, 2006, TCR-AP recounts.

The Liquidator can be reached at:

         Tam Chee Chong
         c/o Deloitte & Touche
         6 Shenton Way
         #32-00 DBS Tower Two,
         Singapore 068609


GULFEAST SHIPPING: Pays Dividend to Creditors
---------------------------------------------
Gulfeast Shipping Private Limited had paid its first and final
dividend to creditors on July 5, 2006.

The creditors receive 100% of their admitted claims.

The liquidator can be reached at:

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


RESPONSIVE LEASING: Accepting Proofs of Debt Until July 28
----------------------------------------------------------
Responsive Leasing Singapore Pte Ltd notifies parties-in-
interest of its intention to declare dividend for its creditors.

In this regard, 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


SAN HOE: Creditors' Proofs of Claim Due on August 14
----------------------------------------------------
Creditors of San Hoe Heavy Equipment Private Limited are
required to submit their proofs of claim by August 14, 2006, to
Liquidator Wee Hui Pheng.

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

The Liquidator can be reached at:

         Wee Hui Pheng
         c/o Ms. Wee Seng Tiong & Co
         1 Coleman Street #06-10
         The Adelphi
         Singapore 179803


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

PICNIC CORP: Posts THB819.8-Million Net Loss in 1st Quarter 2006
----------------------------------------------------------------
Picnic Corporation PCL posted a net loss of THB819.80 million
for the quarter ended March 31, 2006, compared with the
THB71.44-million net profit for the first quarter in 2005.

The consolidated balance sheet of the Company also showed
strained liquidity with THB2.428 billion of current assets
available to pay THB4.266 billion of current liabilities coming
due within the next 12 months.

According to the Company, the loss was mainly due to its
provision of THB460 million on these doubtful debts:

   * THB146 million account receivable in LPG business;
   * THB254 million account receivable in engineering business;
   * THB59.98 million worth of other accounts receivable in LPG
     business.

Shareholders' equity as of March 31, 2006, is THB2.030 billion.  

                       Going Concern Doubt

Somchai Kurujitkosol of S.K. Accountant Services Co Ltd, raised
substantial doubt regarding the Company's and its subsidiaries'
ability to continue as a going concern after auditing their
consolidated financial statements for the quarter ended
March 31, 2006.

Mr. Kurujitkosol said that as of March 31, 2006, the Company's
and its subsidiaries' current liability exceed their current
asset by THB1.838 billion.  He said that the Company and its
subsidiaries are parties to various loan agreements coming from
finance institutions and some parts now constitute defaulted
liabilities.

Mr. Kurujitkosol added that the Company's ability to continue
its operation is dependent on its ability to negotiate a debt
restructuring agreement, to increase its share capital, and to
follow up debt collection from its account receivables.

A full-text copy of the Company's financial report for the
quarter ending March 31, 2006, is available for free at:

   http://bankrupt.com/misc/PICNIC_FS_1Q_06.xls

                          *     *     *

Headquartered in Bangkok, Thailand, Picnic Corporation Public
Company Limited -- http://www.picniccorp.com/-- is engaged in  
liquefied petroleum gas trading business under "Picnic Gas"
trademark transferred from Union Gas and Chemicals Company Ltd.

The Troubled Company Reporter - Asia Pacific reported on July 3,
2006, that Picnic Corp. informed the Stock Exchange of Thailand
that it is facing legal action filed by the Hong Kong and
Shanghai Banking Corp Ltd regarding its THB170.52-million debt.


* S&P Shows Concern over Thai's Political Uncertainty
-----------------------------------------------------
Standard and Poor's warned that Thailand's political uncertainty
has weakened its sovereign credit rating, but no downgrade is
imminent.  The rating agency maintains an investment-grade
rating of BBB+ with a stable outlook for Thailand.

Kim Eng Tan, senior credit analyst of S&P said that while
political uncertainties had affected the country's credit
standing, the current uncertainties are expected to clear up by
the end of this year once a new and stable government is
elected.

Mr. Tan adds that Thailand's existing credit strengths had led
S&P to affirm the country's ratings in April, and that the
ratings were not expected to be threatened in the near term.

"Among similarly rated sovereigns, recent trends in Thailand's
economic performance, its fiscal flexibility, and external
finance put the country ahead of most members in the peer
group," he said.

Standard & Poor's noted that from 2003 to 2005, Thailand's real
economic growth averaged 6% per year, with government debt
falling to 26% of GDP by the end of 2005.

Moreover, Thailand's current-account deficit of 2% of GDP last
year was lower than in similarly rated countries, while foreign-
exchange reserves are sufficient to cover external financing
requirements.

While the uncertainties have affected investor confidence and
could damage growth over time, the short-term impact is moderate
and reversible once a legitimate government is put in place
following an election.

However, Mr. Tan expressed that if political uncertainty
persists into 2007, then the damage to the investment climate
could become long lasting, ultimately affecting even consumer
spending.


* Euler Sees Significant Increase In Global Business Failures
-------------------------------------------------------------
After a substantial increase in 2005 and a decline in 2006, the
number of business insolvencies in the United States is
predicted to climb once again in 2007, according to global trade
credit insurer Euler Hermes.  Worldwide, the Index predicts that
business failures will increase by 3% in 2007 on the heels of a
global economic slowdown.  

The Global Business Failure Index -- created by Euler Hermes to
compare business failures by country, going beyond the national
definitions and taking into account the size of the respective
global economies -- predicts an 8% increase in US corporate
insolvencies for 2007.  The Index has fluctuated quite a bit in
the past two years, showing a 14% increase in 2005 and a 5%
decrease for 2006.  The 2005 hike was caused by an increased
number of businesses insolvencies in advance of the new
bankruptcy laws, which took effect on November 17, 2005.  
However, the revamped U.S. bankruptcy code has caused a notable
decrease in the number of corporate insolvencies for 2006, with
the Index predicting a slight decrease in the number of
businesses that will declare bankruptcy.

Dan North, Euler Hermes ACI Chief Economist, offered his view on
the macroeconomic factors that can affect business failures:
"The US economy turned in a very strong performance in the first
quarter as real Gross Domestic Product grew at a 5.6% annualized
rate.  However, GDP growth is expected to slow during the rest
of the year as a result of three factors.  First, the housing
market which has supported the US economy over the past few
years is cooling off, providing less equity to finance consumer
activity and reducing demand for household goods and services.
Second, high energy prices, particularly for gasoline, are
putting a drag on consumer activity.  Third, and perhaps most
importantly, the Federal Reserve may have tightened monetary
policy too far as reflected in the inverted yield curve, a
strong indicator of a future slowdown.  The effects of Fed
tightening take a year or more to be felt, meaning that the US
economy will be experiencing a drag from rising interest rates
for at least another 12 months.  These three pressures on the US
economy will certainly put pressure on business failures
throughout the next year."

Euler Hermes Global Business Failure Index forecasts these
country-by-county changes in the number of business failures:


     Country        2007      2006
     -------        ----      ----
     USA              8%       -5%
     France           0%        0%
     Spain            4%       10%
     Denmark          0%       -8%
     Taiwan           4%        7%
     Luxembourg       0%       -1%
     Greece           4%        5%
     Germany          0%       -5%
     UK               3%        8%
     China            0%        0%
     Portugal         3%        5%
     Hungary         -1%       -1%
     Hong Kong       -1%      -11%
     Italy            3%        3%
     Netherlands     -1%       -2%
     Belgium          2%        0%
     Canada          -3%       -3%
     Ireland         -3%       -3%
     Norway           1%      -10%
     Austria         -3%       -2%
     Japan            1%        2%
     Finland         -3%       -6%
     Czech Republic   1%       -4%
     South Korea     -4%      -10%
     Switzerland      0%        0%
     Singapore       -7%       -6%
     Slovakia         0%        8%
     Sweden          -7%      -10%
     Poland           0%       -1%
     Brazil          -8%      -15%

     Western Europe   1%        0%

     Global Index of
     insolvencies     3%       -1%

In the face of the changing domestic and global economic
climate, recognizing and managing future risks becomes a
priority for the nation's business leaders.  The predicted rise
in business failures highlights the important role that trade
credit insurance can play within the business environment, said
Euler Hermes ACI Vice President of Marketing Keith Sherman.  "A
Euler Hermes ACI credit insurance program provides a valuable
extension to a company's credit management practices - a second
pair of objective eyes when approving buyers, as well as an
early warning system should things begin to decline so that
exposure can be effectively managed," he said.  "And,
ultimately, should an unexpected loss occur, the trade credit
insurance policy provides indemnification, thus protecting the
policyholder's revenue and bottom line."  Euler Hermes ACI
utilizes a proprietary database that monitors the credit
worthiness of more than 40 million companies worldwide; this
provides advance warning for policyholders and allows losses to
be minimized in the event of a large corporate insolvency.

Further analysis of the Global Business Failure Index is
available in the Euler Hermes Insolvency Outlook publication,
which is available upon request.

Euler Hermes ACI is the US subsidiary of the Euler Hermes Group
and the oldest and largest provider of trade credit insurance in
North America.  For more information about Euler Hermes ACI
products and services, visit http://www.eulerhermes.com/usa

Euler Hermes is the worldwide leader in credit insurance and one
of the leaders in bonding and guarantees.  With 5,400 employees
in 43 countries, Euler Hermes offers a complete range of
services for the management of customer receivables. The group
posted a 2 billion euro turnover in 2005.  The North American
subsidiary (Euler Hermes ACI) is headquartered in Owings Mills,
MD.  For more information visit http://www.eulerhermes.com/usa  
Euler Hermes, a subsidiary of AGF and a member of Allianz, is
listed on Euronext Paris.  Standard & Poor's rates the group and
its principal credit insurance subsidiaries AA-.




                            *********


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

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