TCRAP_Public/060731.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

              Monday, July 31, 2006, Vol. 9, No. 150

                            Headlines

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

ADVANCED ROOFING: Liquidator to Give Wind-Up Report on Aug. 17
ALLSTATE EXPLORATIONS: Seeks Share Placement Deal of 51.5% Stake
ALLSTATE EXPLORATIONS: AU$679,600 Debt Waived if Mine Opens
ARIUS PTY: Members Decide to Close Business Operations
BLAKEHOPE PTY: Members and Creditors to Receive Wind-Up Report

CAMELLIA GROVE: Placed Under Member's Voluntary Liquidation
COLIN URQUHART: Shuts Down Business Operations
COMMUNITY CHOICE: Liquidator Holbrook to Present Wind-Up Report
DULWICH INVESTMENTS: Members Agree to Wind Up Business
E. OMAR & ASSOCIATES: Members to Receive Liquidator's Report

FERNANDEZ RACING: Names Roderick Sutherland as Liquidator
FLOWERS BY ANDREA: To Declare Dividend for Creditors on Aug. 21
GOLF COURSE: Members Pass Resolution to Wind Up Business
GRASSROOTS MANAGEMENT: Enters Wind-Up Proceedings
HENDON PTY: Members Opt to Close Business Operations

HIH INSURANCE: D. Fedora Faces Criminal Charges
JADAN FRANCHISING: Liquidator to Give Wind-Up Report on Aug. 25
JOLLIS PTY: Shuts Down Business Operations
JTS PROPERTY: Members Decide to Liquidate Business
KEN RIDLEY: Enters Wind-Up Proceedings

LOVILLA PTY: Placed Under Members' Voluntary Liquidation
MOSAIC PUBLIC: Appoints Official Liquidators
OFD UNITS: Receivers and Managers Cease to Act
PHILLIPS CARAVANS: Members to Get Liquidator's Report on Aug. 12
PRG GROUP: Fails to Submit Annual Report, Postpones AGM

QUIGLEY ESTATES: Liquidates Business Operations
RADAR HOTELS: Members and Creditors to Receive Wind-Up Report
ROMNY GRANGE: Liquidator G. S. Andrews to Give Wind-Up Report
SOUTH EAST: Members Appoint Worrells as Liquidators
SPUDS SURF: Creditors Decide to Wind Up Business

TALKING HEADS: Court Issues Wind-Up Order
VISCOUNT MANUFACTURING: Supreme Court Issues Wind-Up Order
WOODRUFF PTY: Members and Creditors to Receive Wind-Up Report
* NSW May Suffer if Reserve Bank Lifts Interest Rates, ABL Warns
* AU PM Says High Oil Prices Start Having "Inflationary Effect"


C H I N A   &   H O N G  K O N G

CEO INVESTMENT: Court Set To Hear Wind-Up Bid
CHIN FOH: In Talks with White Knight on Revamp Plan
CHINA CONSTRUCTION: Names Former Head of BOCOM as New President
CHIU SHUN: Liquidators to Present Wind-Up Report on Aug. 26
FULLWELL INVESTMENTS: Members Final Meeting Slated for Aug. 23

GOLDEN DRAGON: Proofs of Claim Due on August 11
GOLDRIVER CORPORATION: Proofs of Claim Due on August 7
L.N.T. INVESTMENTS: Court Sets Date to Hear Wind-Up Bid
MOGU INTERNATIONAL: Creditors & Members Get Liquidation Report
RICH SINO: Final Meeting Set for August 23

SELCO SALAVAGE: Prepares to Declare Third Interim Dividend
SHATIN LUCKY: Members Opt for Voluntary Liquidation
SWEET HOUSE: Liquidator to Present Wind-Up Report
TOPFINE MACHINERY: Appoints Joint Liquidators
TSZ WAN SHAN: Hearing of Wind-Up Bid Set for Aug. 16

WATERY OCEAN: Faces Wind-Up Proceedings
WIDER INTERNATIONAL: Wind-Up Hearing Set by the Court


I N D I A

HINDUSTAN PETROLEUM: Posts INR6-Billion First Quarter Net Loss


I N D O N E S I A

BANK MANDIRI: First Half Net Profit Rises 32%
* Sovereign Upgrade Has No Current Impact on Banks, S&P Says


J A P A N

LIVEDOOR CO: Ex-Director Denies Involvement in Fraud
NOMURA CAPITAL: Assigns BB Rating to Class D of 2nd Conduit CMBS
SANYO ELECTRIC: Cost-Cutting Measures Leads to Lower Net Loss
SOJITZ CORP: S&P Puts BB- Unsecured Debt Ratings on CreditWatch


K O R E A

HYNIX SEMICONDUCTOR: Rambus Accepts US$133-Mil Damages Payment
LG TELECOM: Fined KRW2 Billion for Price Fixing
* Government Recovers KRW80 Trillion in Firm Rescue Funds


M A L A Y S I A

AKTIF LIFESTYLE: Reports MYR0.145-Mil Loss for Fiscal Year 05/06
AKTIF LIFESTYLE: Turns Around with MYR0.235Mil Net Profit in 1Q
PROTON HOLDINGS: Board Accepts Executive Director's Resignation


P H I L I P P I N E S

BANGKO SENTRAL: Wins Court's Favor in Banco Filipino Suit
BANK OF COMMUNICATIONS: Net Income Soars 1,565% in First Quarter
BANK OF COMMUNICATIONS: Whole Board to Serve Another Term
CHINA BANK: NPL Ratio Increases in June 2006
EQUITABLE PCI: NPL Ratio Up to 5.27% in June 2006

LEPANTO CONSOLIDATED: To Sell Shares in September
MAYNILAD WATER: DMCI Holdings Interested in Acquiring Stake
PHILIPPINE LONG DISTANCE: Unit to Acquire BusinessWorld Stake
PHILIPPINE NATIONAL BANK: Lucio Tan May Buy Government Stakes
RIZAL COMMERCIAL BANKING: NPL Ratio Goes Down to 10.15%

SECURITY BANK: First Quarter 2006 Net Income Doubles
SECURITY BANK: Re-elects Chairman
SECURITY BANK: NPL Ratio Drops to 3.6%
UNIONBANK: Offers PHP157.17 Million for iBank Takeover


T H A I L A N D

FORD MOTOR THAILAND: Books US$123-Mil Net Loss for 2nd Quarter
TUNTEX PUBLIC: Gains THB5.2-Billion Net Profit for F/Y '05

     - - - - - - - -

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

ADVANCED ROOFING: Liquidator to Give Wind-Up Report on Aug. 17
--------------------------------------------------------------
The members and creditors of Advanced Roofing & Vents Pty
Limited will convene on August 17, 2006, at 11:00 a.m., to
receive the liquidator's report on the Company's wind-up and
property disposal.

The Troubled Company Reporter - Asia Pacific reported on
February 13, 2006, that Advanced Roofing was placed under
member's voluntary wind-up on January 20, 2006.

The Liquidator can be reached at:

         G. A. Lopez
         Jones Condon, Chartered Accountants
         Unit 44B, Level 1,
         Piccadilly Square
         West, 7 Aberdeen Street
         (Corner Nash Street) Perth
         Western Australia 6000
         Australia


ALLSTATE EXPLORATIONS: Seeks Share Placement Deal of 51.5% Stake
----------------------------------------------------------------
Allstate Exploration NL seeks expressions of interest for its
51.5% stake in the Beaconsfield Mine Joint Venture in
Beaconsfield, Tasmania, the Sydney Morning Herald reports.

Jamie Freed of the Sydney Herald relates that several interested
parties had approached Allstate, noting that it prefers a share
placement offer rather than a takeover offer for the full
company.

According to the Herald, the natural owner of the Beaconsfield
Mine is Allstate's joint venture partner, Beaconsfield Gold,
which has a 48.5% in the mine and also owns 30% of Allstate.

A report from The Age notes that Beaconsfield and Allstate are
sharing a monthly AU$1.4 million bill for the maintenance of the
mine.

Beaconsfield Gold Chief Executive Officer Bill Colvin said that
his company would prefer an outright takeover but would examine
all options, adding that although it had approval for a
AU$20-million share placement, the stake's actual price might be
lower, the Herald notes.

The Herald reported on June 28, 2006, that Beaconsfield Gold had
secured shareholder support for a AU$20.4-million share
placement to allow it to buy out Allstate.

According to Allstate chairman Rodney Elvish, any proposals put
forward by Beaconsfield Gold will be considered but it is not
guaranteed to gain control over the entire joint venture, the
Herald relates.

Mr. Colvin claims that although Allstate seems keen for a
competitive process, Beaconsfield Gold holds "comprehensive pre-
emptive rights" over Allstate's interest that could block a
rival party from making a takeover.

               Allstate Remains in Administration

As reported in the Troubled Company Reporter - Asia Pacific on
October 27, 2004, Allstate advised the Australian Stock
Exchange that on October 22, 2004, the Company and its
subsidiaries, Allstate Prospecting Pty Limited and ACN 070 164
653 Pty, entered into a Restructure Agreement with the Allstate
group's financier, Macquarie Bank Ltd.

The Herald relates that Allstate has remained in administration
for years and still faces paying off an inter-company loan to
Macquarie worth about AU$45 million.

According to a previous report from the Herald, Macquarie is
Allstate's main creditor, owed millions of dollars in gold hedge
book liabilities.  The Mercury says that Macquarie bought
AU$77 million worth of debt for AU$300,000 in 2002.

Allstate's main shareholder, U.S. gold mining company Newmont,
holds about 57% of the company's shares, the Herald adds.

Thus, Beaconsfield Gold will look to Macquarie and Newmont to
engineer Allstate's exit from the mine, the Herald said.

The Herald relates that on a June 28, 2006 meeting, Beaconsfield
Gold director Mike Trumbull noted that Newmont had not wanted to
play much of a role at Allstate, as reflected in its lack of
board representation.   However, he notes that he could not
speak for Newmont.

According to Mr. Trumbull, if Beaconsfield Gold could move to
full ownership of the mine, it would become a "much more
desirable company in the market."

                 Rockfall Caused Mine Closure

On April 25, 2006, a rockfall killing a miner caused the closure
of the Beaconsfield mine.

After the rockfall, Macquarie agreed to transfer the debt into a
trust for the mine's employees which would only have a value if
the mine reopened, the Herald relates.

The incident is subject to a coroner's inquiry and a special
investigation, The Bordermail says.

The paper relates that Allstate's joint administrator, Michael
Ryan, discloses that mine management had updated employees on
recent progress, but it was not possible to say yet if the mine
would reopen.

The Mercury notes that 52 of the 136 strong Beaconsfield
workforce have taken voluntary redundancies.  

Mr. Ryan relates that the mine would make a submission to
AusIndustry for funds from the Beaconsfield Community Fund to
which the Federal Government has pledged AU$8 million, The
Mercury says.

Mr. Elvish notes that the trustee would run any deal involving
Allstate's interest in the mine.  It is possible that the former
employees could receive an upfront pay-out of less than the full
value of the loan rather than waiting for years of production to
receive the face value, the Herald says.

Mr. Ryan relates that work was continuing on feasibility
studies, led by independent consultants Coffey Mining, on the
mine's future, The Bordermail reports.

According to Mr. Ryan, by August, the management would have a
better understanding of the status of a Workplace Standards
investigation being held to determine the cause of the rockfall.

The Mercury says that the reopening of the mine could be worth
as much as AU$47 million.

The Herald says that about 85 miners and technical staff remain
on the payroll to maintain the plant and equipment to ensure a
quick restart when Tasmanian authorities allow it.

                         About Allstate

Allstate Explorations NL solely operates in Australia.  The
Company manages, develops, and operates the Beaconsfield Mine
Joint Venture in Beaconsfield, Tasmania.  Allstate partially
owns the Beaconsfield gold mine with its partner Beaconsfield
Gold NL.  The Beaconsfield mine is located in Launceston,
Tasmania, Australia.


ALLSTATE EXPLORATIONS: AU$679,600 Debt Waived if Mine Opens
-----------------------------------------------------------
The Tasmanian Government will waive a AU$679,600 debt owed by
Allstate Explorations NL's Beaconsfield gold mine if the mine
reopens, the Australian Associated Press reports, citing
Economic Development Minister Bryan Green telling a budget
estimates hearing in Hobart.

According to The Age, the debt comprises two loans:

   -- AU$620,100 borrowed in 1987 to aid with the payment of
      stamp duty arising from corporate restructuring of the
      mine's ownership; and

   -- AU$59,500 taken in 1992 for similar purposes.

Mr. Green says that a coronial investigation and separate
inquiry are continuing, but he says parts of the mine's
operation could reopen if it is deemed safe.  Mr. Green explains
that foregoing the debt would help the operation into the
future.

Liberal Opposition resources spokesman Rene Hidding tells a
budget estimates hearings in parliament that the money would end
up with Macquarie.  Mr. Hidding asserts that foregoing the debt
is a taxpayer handout to "that needy organization," the
Macquarie Bank, The Australian relates.

Mr. Green contends that the mine -- a joint venture of Allstate
Explorations and Beaconsfield Gold -- is critical to northern
Tasmania's future, The Age says.

Mr. Hidding tells The Australian that he was not questioning the
need to help the mine reopen after a rock fall incident, but he
asserts that if the mine reopens, "that money will be available
to assist Allstate to perhaps get out of a position of
receivership."

The Australian relates that Mr. Green's spokesman denied the
money would end up with Macquarie, contending that the bank is
neither owner nor operator of the mine.  He vows to divest its
claim on intercompany loans to the mineworkers if the mine
reopens.

The Government reveals that it had refused an Allstate request
to allow it to access a bond of up to AU$8 million set aside for
rehabilitation of the mine at the end of its working life, The
Australian says.

The paper relates that on June 28, 1996, the Federal Government
began advertising for applications for an AU$8-million
Beaconsfield Community Fund, set up after the rockfall that
killed miner Larry Knight and trapped Brant Webb and Todd
Russell underground for 14 days.

                         About Allstate

Allstate Explorations NL solely operates in Australia.  The
Company manages, develops, and operats the Beaconsfield Mine
Joint Venture in Beaconsfield, Tasmania.  Allstate partially
owns the Beaconsfield gold mine with its partner Beaconsfield
Gold NL.  The Beaconsfield mine is located in Launceston,
Tasmania, Australia.

Allstate was placed under administration in 2004.  The
Administrator can be reached at:

         Allstate Explorations NL
         The Administrator
         Taylor Woodings Corporation Services
         6th Floor, 30 The Esplanade
         Perth, Australia, 6000
         Telephone: 08 9321 8533
         Fax: 08 9321 8544


ARIUS PTY: Members Decide to Close Business Operations
------------------------------------------------------
At a general meeting on June 8, 2006, the members of
Arius Pty Limited decided to voluntarily wind up the Company's
business operations.

William Inglis was appointed as liquidator.

The Liquidator can be reached at:

         William Inglis
         Suite 7, 9 Foamcrest Avenue
         Newport, New South Wales 2106
         Australia


BLAKEHOPE PTY: Members and Creditors to Receive Wind-Up Report
--------------------------------------------------------------
The members and creditors of Blakehope Pty Limited will hold a
final meeting on August 28, 2006, at 9:15 a.m.

During the meeting, Liquidators Peter Goodin and Robyn Erskine
will present a report regarding the Company's wind-up and
property disposal.

As reported in the Troubled Company Reporter - Asia Pacific, the
members of the Company convened on April 13, 2006, and agreed
that a voluntary wind-up is appropriate and necessary.

The Liquidators can be reached at:

         Peter Goodin
         Robyn Erskine
         Brooke Bird & Co
         Chartered Accountants
         471 Riversdale Road
         Hawthorn East 3123
         Australia
         Telephone:(03) 9882 6666


CAMELLIA GROVE: Placed Under Member's Voluntary Liquidation
-----------------------------------------------------------
On June 30, 2006, the members of Camellia Grove Nursery
(Wholesale) Pty Limited met at a general meeting and agreed to
voluntarily liquidate the Company's business.

In this regard, Geoffrey Neil Walker was appointed as
liquidator.

The Liquidator can be reached at:

         Geoffrey Neil Walker
         WLM Partners Pty Limited
         Level 11, 84 Pitt Street
         Sydney
         Australia


COLIN URQUHART: Shuts Down Business Operations
----------------------------------------------
The members of Colin Urquhart Real Estate Pty Limited held a
general meeting on June 29, 2006, and resolved to voluntarily
wind up the Company's operations.

Stephen Brennan and Michael Royal were subsequently nominated as
joint and several liquidators of the Company.

The Joint and Several Liquidators can be reached at:

         Stephen Brennan
         Michael Royal
         RoyalSBR
         Level 25, Chifley Tower
         2 Chifley Square
         Sydney, New South Wales 2000
         Australia
         Telephone: 1300 780 059
         Facsimile: 1300 136 406


COMMUNITY CHOICE: Liquidator Holbrook to Present Wind-Up Report
---------------------------------------------------------------
A final meeting of the members and creditors of Community Choice
Home Loans Pty Limited will be held on August 16, 2006, at 9:30
a.m., where Liquidator Kim D. Holbrook will report on the
activities that took place during the Company's wind-up period
as well as the manner by which the Company's property was
disposed of.

As reported by the Troubled Company Reporter - Asia Pacific,
Community Choice's creditors met on August 16, 2006, and decided
to wind up the Company's operations.

The Liquidator can be reached at:

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


DULWICH INVESTMENTS: Members Agree to Wind Up Business
------------------------------------------------------
The members of Dulwich Investments Pty Limited convened on
June 29, 2006, and agreed to wind up the Company's business
operations.

Russell Heywood-Smith was appointed as liquidator.

The Liquidator can be reached at:

         Russell Heywood-Smith
         BDO
         Chartered Accountants & Advisers
         248 Flinders Street
         Adelaide, South Australia 5000
         Australia


E. OMAR & ASSOCIATES: Members to Receive Liquidator's Report
------------------------------------------------------------
The members of E. Omar & Associates Pty Limited will hold a
meeting on August 18, 2006, at 10:30 a.m., to receive the
Company's wind-up report and the manner of property disposal
from the liquidator.

As reported by the Troubled Company Reporter - Asia Pacific
on March 3, 2006, the Company was placed under members'
voluntary liquidation on February 6, 2006.

The Liquidator can be reached at:

         D. R. Vasudevan
         Pitcher Partners
         Level 19, 15 William Street
         Melbourne, Victoria 3000
         Australia


FERNANDEZ RACING: Names Roderick Sutherland as Liquidator
---------------------------------------------------------
At a general meeting on July 3, 2006, the members of Fernandez
Racing Pty Limited resolved to voluntarily wind up the Company's
business operations.

In this regard, Roderick Mackay Sutherland was appointed as
liquidator.

The Liquidator can be reached at:

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


FLOWERS BY ANDREA: To Declare Dividend for Creditors on Aug. 21
---------------------------------------------------------------
Flowers By Andrea Louise Pty Limited will declare its first and
final dividend for priority creditors on August 21, 2006, to the
exclusion of those who cannot prove their claims.

The Troubled Company Reporter - Asia Pacific, reported on
August 21, 2006, that the Company's members met on December 1,
2005, and decided to wind up the Company's business operations.

The liquidator can be reached at:

         David H. Scott
         Jones Condon
         Chartered Accountants
         Ground Floor, 77 Station Street
         Malvern Victoria 3144
         Australia


GOLF COURSE: Members Pass Resolution to Wind Up Business
--------------------------------------------------------
At an extraordinary general meeting on June 27, 2006, the
members of Golf Course Investments Pty Limited passed a special
resolution to wind up the Company's business operations.

In this regard, Ian D. Kellaway was appointed as liquidator.

The Liquidator can be reached at:

         Ian D. Kellaway
         Minett & Partners
         Level 5, 491 Kent Street
         Sydney, New South Wales 2001
         Australia


GRASSROOTS MANAGEMENT: Enters Wind-Up Proceedings
-------------------------------------------------
The members of Grassroots Management Pty Limited convened on
June 19, 2006, and agreed to voluntarily wind up the Company's
business operations.

Subsequently, Neil Hillman was nominated as liquidator.

The Liquidator can be reached at:

         Neil Hillman
         Level 29, 264 George Street
         Sydney, New South Wales 2000
         Australia


HENDON PTY: Members Opt to Close Business Operations
----------------------------------------------------
On June 19, 2006, the members of Hendon Pty Limited met and
decided to close the Company's operations.

Subsequently, Neil Hillman was nominated as liquidator.

The Liquidator can be reached at:

         Neil Hillman
         Level 29, 264 George Street
         Sydney, New South Wales 2000
         Australia


HIH INSURANCE: D. Fedora Faces Criminal Charges
-----------------------------------------------
Dominic Fodera, the former Chief Financial Officer of HIH
Insurance Limited, has been committed in Central Local Court in
Sydney to stand trial on a criminal charge of authorizing the
issue of a prospectus from which there was a material omission.

The charge arises from the investigation by the Australian
Securities and Exchange Commission into the affairs of the HIH
group of companies.

The ASIC alleges that on October 26, 1998, Mr. Fodera, in his
capacity as an officer of HIH, authorized the issue of a
prospectus by HIH Holdings (NZ) Ltd., for converting notes that
contained a material omission.  The material omission concerned
the effect of a transaction entered into at the same time
between HIH and Societe Generale Australia Limited relating to
SGAL's taking up a priority allocation of the notes in the
approximate sum of AU$35 million in exchange for HIH depositing
approximately AU$35 million with SGAL.

Mr. Fodera had his bail conditions continued and he is to appear
in the NSW Supreme Court on September 1, 2006.

Mr. Fodera is also due to appear in Downing Centre Court for a
committal hearing commencing on August 7, 2006 in relation to
four criminal charges of giving misleading information and a
further two charges of failing to act honestly as a director.

The Commonwealth Director of Public Prosecutions is prosecuting
the matter.

                      About HIH Insurance

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

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

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

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


JADAN FRANCHISING: Liquidator to Give Wind-Up Report on Aug. 25
---------------------------------------------------------------
The members and creditors of Jadan Franchising Pty Ltd will hold
a final meeting on August 25, 2006, at 10:00 a.m.

During the meeting, Liquidator D. Mclay will present a report on
the Company's wind up and property disposal.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company, which is in voluntary liquidation, declared its first
and final dividend on April 24, 2006

The Liquidator can be reached at:

         D. Mclay
         PO Box 1595
         Booragoon, Western Australia 6954
         Australia
         Telephone:(08) 9330 4658
         Facsimile:(08) 9330 9028


JOLLIS PTY: Shuts Down Business Operations
------------------------------------------
At an extraordinary general meeting on June 27, 2006, the
members of Jollis Pty Ltd passed a special resolution to wind up
the Company's business operations.

Subsequently, Ian Kellaway was appointed as liquidator.

The Liquidator can be reached at:

         Ian Kellaway
         Level 5, 491 Kent Street
         Sydney, New South Wales 2001
         Australia


JTS PROPERTY: Members Decide to Liquidate Business
--------------------------------------------------
The members of JTS Property & Investments No. 3 Pty Ltd held an
extraordinary general meeting on July 13, 2006, and resolved to
liquidate the Company.

Creditors appointed Michael John Morris Smith as liquidator at a
creditor's meeting held that same day.

The Liquidator can be reached at:

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


KEN RIDLEY: Enters Wind-Up Proceedings
--------------------------------------
At a duly constituted meeting on June 30, 2006, the members of
Ken Ridley Pty Ltd passed a special resolution to wind up the
Company's business operations.

Creditors who were not able to prove their claims by
July 21, 2006, are excluded from the dividend distribution.

The liquidator can be reached at:

         Anthony M. Long
         c/o Boyce Chartered Accountants
         19 Montague Street
         Goulburn, New South Wales 2580
         Australia


LOVILLA PTY: Placed Under Members' Voluntary Liquidation
--------------------------------------------------------
On July 1, 2006, the members of Lovilla Pty Limited held a
general meeting and decided to voluntarily liquidate the Company
and distribute the proceeds of its assets.

The liquidator can be reached at:

         James Dick
         Auswild & Co Pty Ltd
         1st Floor, 50 Montgomery Street
         Kogarah New South Wales 2217
         Australia


MOSAIC PUBLIC: Appoints Official Liquidators
--------------------------------------------
At an extraordinary general meeting on June 30, 2006, the
members resolved to wind up the Company's business operations.

In this regard Keiran William Hutchison and John Raymond Gibbons
were appointed as liquidators.

The Liquidators can be reached at:

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


OFD UNITS: Receivers and Managers Cease to Act
----------------------------------------------
Mark Julian Robinson and Maxwell William Prentice cease to act
as receivers and managers of OFD Units Pty Limited on
July 3, 2006.


PHILLIPS CARAVANS: Members to Get Liquidator's Report on Aug. 12
----------------------------------------------------------------
The members of Phillips Caravans Pty Ltd will convene at a final
meeting on August 12, 2006, at 9:30 a.m., to receive Liquidator
Barry Alfred Bentley's report on the Company's wind-up and
property disposal.

The Troubled Company Reporter - Asia Pacific, recounts that on
February 14, 2006, the members of Phillips Caravans met and
agreed to close the Company's business operations.

The Liquidator can be reached at:

         Barry Alfred Bentley
         Bentley Brett & Vincent
         226A Harbour Drive
         Coffs Harbour New South Wales 2450
         Australia


PRG GROUP: Fails to Submit Annual Report, Postpones AGM
-------------------------------------------------------
PRG Group advises that it is putting off its annual meeting to a
later date, a flow-on from delays in finalizing its audited
results, the New Zealand Press Association reports.

Shareholders are required to get the annual report of the
company not less than 20 working days before the annual meeting,
which was scheduled for August 30, 2006, Stuff.co.nz says.

Stuff.co relates that the Company's sale of its consumer finance
arm, PRG Finance Group, to GE Finance and Insurance in January
2006 for a reported NZ$145 million, has been followed by
problems.

Stuff.co recounts that on May 30, 2006, PRG released its
unaudited financial results for the year ended March 31, 2006,
noting that it expected the audited results by June 30, 2006.  
However, the Company failed to submit it on the expected date.  
Thus, the stock exchange suspended PRG from trading since
July 10, 2006.

The Company explains that a delay in getting an audit of the
former finance group would in turn delay the group audit, NZPA
says.

Accordingly, the Company reports that the audit process had
advanced to the stage where its own auditor, Deloitte, could
review the settlement accounts and audit files.

Stuff.co says that PRG shares were at NZ$1.54 -- their lowest
level in over five years and half the value they reached in
September 2002 -- when their trading was suspended and the
Company has issued a profit warning.

       Unaudited Figures Reflect NZ$13.1 Million Loss

On unaudited figures, PRG lost NZ$13.1 million in the March
year, mainly due to the continued poor performance of
Powerhouse, its British electrical goods chain, which it now
wants to re-name Go Switch On, the NZPA reports.

Even though PowerHouse is No. 3 in the British market, PRG warns
that its sales growth is less than budgeted, and likely to
result in a moderate loss for the financial year to March 31,
2007, the NZPA notes.

PRG had previously said it expected PowerHouse to break even in
the current financial year, NZPA notes.

According to Stuff.co, in the financial year to March 31, 2006,
gross operating revenue at PowerHouse fell to GBP143.9 million
(NZ$443.8 million) from GBP215.7 million (NZ$665.3 million).

PowerHouse also reported an EBITA loss of GBP17.6 million
(NZ$54.2 million) for the year from an GBP18.8 million (NZ$57.9
million) EBITA loss last year, Stuff.co relates.

The Troubled Company Reporter - Asia Pacific reported on
March 24, 2006, that PRG hoped that PowerHouse could turn around
despite continuing harsh U.K. trading conditions.  PowerHouse's
39% decline in total sales during the third quarter ended
December 31, 2005, followed a reduction in store numbers over
the past year as it continued an ongoing program of exiting non-
performing stores.

The TCR-AP report stated that PowerHouse had closed 31 non-
performing stores in February and was in the process of entering
an arrangement to resolve remaining liabilities with certain
landlords.  Though most lease agreements were already settled,
landlords of 10 stores had lodged a legal challenge, thus,
delaying the process.

The TCR-AP also noted that PowerHouse planned to build on the
strong performance of its top 53 stores and push for a break-
even target by 2007.  It is also aimed to implement the final
phase of reconstruction that involves closing the remaining non-
performing stores.

The NZPA cites Retail Knowledge Bank senior partner Robert
Clark, as saying that re-named stores will be departmentalized
by brand rather than product type and price.  Mr. Clark notes
that this could be the last chance for PRG to develop a
sustainable format and business model.

                        About PRG Group

Formerly Pacific Retail Group, PRG Group Limited --
http://www.prg.co.nz/-- is an NZX-listed investment company  
focused on the consumer sector.  It has a portfolio of operating
companies in New Zealand and the United Kingdom, including
leading lingerie designer and marketer, Bendon Limited.  PRG
Group's other businesses include PowerHouse, the UK's third
largest specialist appliance retailer.  PowerHouse operates 53
stores in the UK. PRG Group also owns New Zealand homeware
retailer Living & Giving.

Late January 2006, PRG Group completed the sale of its Finance
Group to GE Finance and Insurance for NZ$145 million.  The
Finance Group comprised four companies - Pacific Retail Services  
Limited, Pacific Retail Finance Limited, Montreal Financial
Services Limited and Simply Insurance New Zealand Limited.  The
structure of the sale meant the Finance Group's loan book and  
other assets were sold to GE, together with the shares in Simply
Insurance New Zealand.  Under the sale agreement, PRG has
changed its name from Pacific Retail Group Limited to PRG Group  
Limited.  The Company posted a NZ$75 million capital profit (net
of costs) from the sale.  

PRG Group used part of the sale proceeds to repay
NZ$62.7 million of outstanding Secured Capital Notes and to
repay loans of NZ$20 million to principal banker, ANZ Bank.  PRG
Group hoped that the sale will allow it to retire all parent
company debt, leaving it in a strong financial position to
continue to fund growth in its major operating businesses.


QUIGLEY ESTATES: Liquidates Business Operations
-----------------------------------------------
At a general meeting on July 6, 2006, the members of Quigley
Estates Pty Ltd passed a special resolution to voluntarily wind
up the Company's business operations.

In this regard, Brian Donald Redpath was appointed as
liquidator.

The Liquidator can be reached at:

         Brian Donald Redpath
         Chartered Accountant
         Level 2, 191 Fullarton Road
         Dulwich South Australia 5065
         Australia
         Telephone:(08) 8364 6177


RADAR HOTELS: Members and Creditors to Receive Wind-Up Report
-------------------------------------------------------------
A general meeting of the members and creditors of Radar Hotels
Pty Ltd will be held on August 7, 2006, at 9.30 a.m.

During the meeting, Liquidator G. S. Andrews will present his
report on the Company's wind-up and property disposal.

The Troubled Company Reporter - Asia Pacific, reported on
October 21, 2005, that Radar Hotels, which is in liquidation,
declared its first dividend on Oct. 24, 2006.

The Liquidator can be reached at:

         G. S. Andrews    
         G S Andrews & Assoc
         22 Drummond Street
         Carlton Victoria 3053
         Australia
         Telephone:(03) 9662 2666
         Facsimile:(03) 9662 9544


ROMNY GRANGE: Liquidator G. S. Andrews to Give Wind-Up Report
-------------------------------------------------------------
The members and creditors of Romny Grange Pty Ltd will hold a
general meeting on August 16, 2006, at 9:30 a.m., to receive
Liquidator G.S. Andrews' report regarding the Company's wind-up
and property disposal.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company, which is in liquidation, distributed its first and
final dividend on June 26, 2006.

The Liquidator can be reached at:

         G. S. Andrews
         G. S. Andrews & Associates
         22 Drummond Street
         Carlton Victoria 3053
         Australia
         Telephone:(03) 9662 2666
         Facsimile:(03) 9662 9544


SOUTH EAST: Members Appoint Worrells as Liquidators
---------------------------------------------------
South East Transport Pty. Limited is winding up its business
operations.  At a general meeting of South East members on June
29, 2006, Matthew Jess and Paul Burness were appointed to
supervise the Company's wind-up activities.

The Liquidators can be reached at:

         Matthew Jess
         Paul Burness
         Worrells
         Solvency & Forensic Accountants
         Level 5, 15 Queen Street
         Melbourne Victoria 3000
         Australia
         Telephone:(03) 9613 5500
         Facsimile:(03) 9614 3233
         e-mail: http://www.worrells.net.au/


SPUDS SURF: Creditors Decide to Wind Up Business
------------------------------------------------
The creditors of Spuds Surf Victoria Avenue Pty Limited
met on June 30, 2006, and agreed to wind up the Company's
business operations.

Subsequently, Scott Darren Pascoe was appointed as liquidator.

The Liquidator can be reached at:

         Scott Darren Pascoe
         SimsPartners
         Chartered Accountants
         Level 24, Australia Square
         264 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 9241 3422


TALKING HEADS: Court Issues Wind-Up Order
-----------------------------------------
On June 16, 2006, the Federal Court of Australia entered an
order winding up Talking Heads & Faces Pty Ltd.

The liquidator can be reached at:

         Antony De Vries
         de Vries Tayeh
         Level 3, 95 Macquarie Street
         Parramatta New South Wales 2125
         Australia


VISCOUNT MANUFACTURING: Supreme Court Issues Wind-Up Order
----------------------------------------------------------
On June 21, 2006, the Supreme Court of New South Wales issued an
order to wind up Viscount Manufacturing Pty Limited and
appointed D. I. Mansfield as liquidator.

The Liquidator can be reached at:

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


WOODRUFF PTY: Members and Creditors to Receive Wind-Up Report
-------------------------------------------------------------
A final meting of the members and creditors of Woodruff Pty Ltd
will be held on August 18, 2006, at 10:30 a.m., to receive  
Liquidator B. A. Secatore's accounts regarding the Company's
wind-up and property disposal.

As reported by the Troubled Company Reporter - Asia Pacific, the
creditors of Woodruff passed a special resolution on July 20,
2005, to liquidate the Company's business operations.

The Liquidator can be reached at:

         B. A. Secatore
         Cor Cordis
         Chartered Accountants
         406 Collins Street
         Melbourne Victoria 3000
         Australia


* NSW May Suffer if Reserve Bank Lifts Interest Rates, ABL Warns
----------------------------------------------------------------
Business has warned that another interest rate rise could
flatline the New South Wales economy and hurt the state's
homeowners while doing little to slow the rest of the country,
the Australian Associated Press reports.

Australian Business Ltd., State Chamber chief executive Kevin
MacDonald says that the Reserve Bank has to take into account
the damage it might cause the nation's biggest economy if it
went ahead and lift interest rates next week, the AAP relates.

Economists are almost unanimous in expecting a quarter of a
percentage point rate increase on Wednesday morning, in response
to rising inflation pressures across the nation.

A report from the Troubled Company Reporter - Asia Pacific on
July 28, 2006, noted that most economic commentators saw little
or no chance of an official interest rate cut before March, with
several seeing a risk it could be further away than that.

According to Shane Wright of the AAP, inflation is now running
at close to 5% in Canberra and Perth, while it is at 3.8% in
Sydney.

Mr. MacDonald says his organization, which represents around
30,000 companies across the state, is concerned a rate hike
could effectively push NSW into recession.

The AAP relates that banana prices soared 250% during the past
three months, and were one of the main reasons inflation spiked.

But chief executive of Queensland's Growcom organization, Jan
Davis, says interest rate rises and inflation were more than
just about bananas, news.com.au says.

According to news.com.au, Prime Minister John Howard concedes
that there are different economic stories on the east and west
coasts of the country.

"I think there is a difference between the rate of growth
clearly in Western Australia and the rate of growth in other
parts of the country, but the whole nation is still performing
very strongly," the AAP cites Mr. Howard telling ABC radio.

According to Mr. Howard, he is concerned about the impact of
high petrol prices, adding that the government's tax cuts had
largely been eaten up.

However, the AAP cites opposition treasury spokesman Wayne Swan
asserting that the Reserve Bank's own figures showed inflation
had been creeping up since the Government was re-elected in
2004.


* AU PM Says High Oil Prices Start Having "Inflationary Effect"
---------------------------------------------------------------
According to Australian Prime Minister John Howard, high oil
prices are beginning to have an "inflationary effect" on the
economy, Barbara Adam of Dow Jones Newswires reports.

However, Mr. Howard declines to speculate on the possibility of
the Reserve Bank of Australia raising interest rates this week,
pointing out that the high food prices reflected in last week's
consumer price index was a one-off factor caused by Cyclone
Larry flattening most of the nation's banana crop, Dow Jones
relates.

Mr. Howard reiterates his prediction that he did not expect
world oil prices to fall soon and again dismisses a call for
fuel taxes to be cut to reduce domestic fuel prices, Dow Jones
says.

Dow Jones further says that Mr. Howard also denies that the
economy of Western Australia state is overheating, even though
it is growing at a faster rate than the national economy.

"The whole nation is still performing very strongly, it's just
that Western Australia is performing more strongly than the rest
of the country because so much of the resource sector is located
[in this region] and that's likely to go on for a long time,"
Dow Jones cites Mr. Howard telling Australian Broadcasting Corp.
radio in Perth.

Mr. Howard adds that the rate of expansion is manageable and
does not believe that an overheating stage has been reached at
the present time, Dow Jones relates.


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

CEO INVESTMENT: Court Set To Hear Wind-Up Bid
---------------------------------------------
The High Court of Hong Kong received a wind-up petition against
CEO Investment Ltd on July 6, 2006 from Luk Wai Fun.

The hearing on the petition will be on September 6, 2006, at
9:30 in the morning.

The solicitor for the petitioner can be reached at:

        Ng And Lam
        Unit 17, 31/F., China Merchants Tower
        Shun tak Centre, 168 Connaught Road
        Central, Hong Kong


CHIN FOH: In Talks with White Knight on Revamp Plan
---------------------------------------------------
Chin Foh Berhad is negotiating with an unnamed white knight to
undertake the Company's restructuring, The Edge Daily reports,
adding that the white knight is expected to inject fresh funds
into the Company to regularize its finances.

The Company's managing director, Datuk Stephen Quah, told The
Edge that Chin Foh will try to conclude the talks as soon as
possible before submitting its restructuring scheme to Bursa
Malaysia Securities Berhad in the next six months.  The revamp
proposal will include the disposal of the Company's non-core
assets.

According to Mr. Quah, the Company is looking at divestments of
its interest in associate companies.  He added that the Company
will retain only the subsidiaries involved in trading,
marketing, and manufacturing.

Chin Foh has appointed PriceWaterhouseCoopers as its scheme
managers for its revival, The Edge reveals.

The restructuring, which is expected to take one year to
complete, will help the Company return to profitability by the
fourth quarter of fiscal 2007, The Edge cited Mr. Quah as
saying.

                      About Chin Foh Berhad

Malaysia-based Chin Foh Berhad is principally involved in
trading and distribution of metal base and non-metal base
products, construction materials, panels and non-ferrous metal
products.  Its other activities include manufacturing of glass,
aluminium extrusions, stainless steel and related products,
rotary aluminium ventilators, providing, cutting and slitting of
metal and other related services, general contracting, design,
fabrication, supply and installation of curtain wall and
cladding and holding properties and investments.  Operations are
carried out in Malaysia, Australia, and China.

The Company started posting losses in fiscal 2002 due to high
operating expenses and has not recovered since.  For the quarter
ended April 30, 2006, the Company registered a net loss of
MYR3,012,000.  It also reported a higher cash flow deficit of
MYR30,816,000 as of April 30, 2006, compared to a cash flow
deficit of MYR17,701,000 on April 30, 2005.


CHINA CONSTRUCTION: Names Former Head of BOCOM as New President
---------------------------------------------------------------
Zhang Jianguo, former head of China's Bank of Communication, was
named president and vice chairman of China Construction Bank,
Reuters reports.

However, to be effective, the appointment still has to be
approved by the China Banking Regulatory Commission, Reuters
relates.

Hu Changmiao, spokesman for CCB, told Xinhua News that the
decision to appoint Mr. Zhang was made during a board meeting on
July 27, 2006.  In addition, he also disclosed that Mr. Zhang
was also named deputy director of the CCB board and the
executive director of the board.

"A shareholders' meeting will be held at a proper time and
profiles of the new president will be sent to the shareholders,"
Mr. Hu said.

Reuters recounts that Mr. Zhang was appointed president of the
Bank of Communications in June 2004 and made a name for himself
by orchestrating a deal between BOCOM and Hong Kong and Shanghai
Banking Corporation Limited.  According to the deal, HSBC
purchased 20% stake in BOCOM for US$1.75 billion.  Mr. Zhang
also listed BOCOM on the Mainland Board of the Hong Kong Stock
Exchange in June 2005 and became the first overseas listed
commercial bank on the Chinese mainland.

Asked to comment by Xinhua News on his appointment, Mr. Zhang
said that he was confident about making CCB one of the world's
top commercial banks, with efforts of CCB's over 300,000
employees.

                          *     *     *

The China Construction Bank -- http://www.ccb.cn/-- is one of  
the "big four" banks in the People's Republic of China.  It was
founded on October 1, 1954 under the name of "People's
Construction Bank of China" and later changed to "China
Construction Bank" on March 26, 1996.

On November 24, 2005, The Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service has upgraded
CCB's Bank Financial Strength Rating to D- from E+.


CHIU SHUN: Liquidators to Present Wind-Up Report on Aug. 26
-----------------------------------------------------------
Members and creditors of Chiu Shun Engineering Works Ltd, which
is in liquidation, will be receiving liquidator Chan Sek Kwan's
wind-up report on August 26, 2006, at 10:30 a.m., at Unit G,
12/F., Seabright Plaza, 9-23 Shell Street, in North Point, Hong
Kong.


FULLWELL INVESTMENTS: Members Final Meeting Slated for Aug. 23
--------------------------------------------------------------
A final meeting of the members of Fullwell Investments Ltd will
be held on August 23, 2006, at 11:00 a.m., at 21st Floor, Fee
Tat Commercial Centre, No. 613 Nathan Road, in Kowloon, Hong
Kong.

At the meeting, members will be receiving liquidator Fang Lin
Hui Ming's report on the Company's wind-up and property
disposal.

The Troubled Company Reporter - Asia Pacific reported that on
June 9, 2006, members of the Company opted to voluntarily wind
up the Company.

The liquidator can be reached at:

         Fang Lin Hui Ming
         21/F., Fee Tat Commercial Centre
         No. 613 Nathan Road, Kowloon
         Hong Kong


GOLDEN DRAGON: Proofs of Claim Due on August 11
-----------------------------------------------
Golden Dragon Food Company Ltd prepares to declare its final
dividend.  Thus, the creditors of the Company are required to
submit their proofs of claim by August 11, 2006.

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

Claims must be forwarded to the Company's joint liquidators at:

         Chiang Ping Kwan
         Patrick P. K. Chiang & Co
         Room 2213, 22/F., Asian House
         No.1, Hennessy Road, Wanchai
         Hong Kong


GOLDRIVER CORPORATION: Proofs of Claim Due on August 7
------------------------------------------------------
Goldriver Corporation, through its joint and several liquidator,
will be receiving creditors proofs of claims by August 7, 2006.

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

The liquidator can be reached at:

        Jacky C W Muk
        8th Floor, Prince's Bldg
        10 Chater Road, Central
        Hong Kong


L.N.T. INVESTMENTS: Court Sets Date to Hear Wind-Up Bid
-------------------------------------------------------
The High Court of Hong Kong will hear the wind-up petition filed
against L.N.T. Investments Ltd on August 23, 2006, at 9:30 a.m.

Chan Tak filed the petition with the court on June 28, 2006.

The solicitor for the petitioner can be reached at:

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


MOGU INTERNATIONAL: Creditors & Members Get Liquidation Report
--------------------------------------------------------------
The final meeting of the creditors and members of Mogu
International Ltd was held on July 28, 2006, at the offices of
Ferrier Hodgson Ltd, 14/F., Hong kong Club Bldg, 3A Chater Road,
in Central, Hong Kong.

Liquidator Desmond Cheung presented to the creditors and members
a report on the company's wind-up and property disposal.

The liquidator can be reached at:

         Desmond Chung Seng Chiong
         Joint and Several Liquidator
         Ferrier Hodgson Limited
         14/F Hong Kong Club Building
         3A Chater Road
         Central, Hong Kong

RICH SINO: Final Meeting Set for August 23
------------------------------------------
The final general meeting of Rich Sino Trading Ltd will be on
August 23, 2006, at 10:00 a.m., at 21/F., Fee Tat Commercial
Centre, No.613 Nathan Road, in Kowloon, Hong Kong.

At the meeting, liquidator Tang Wai Ting will be presenting his
report regarding the Company's wind-up and property disposal.


SELCO SALAVAGE: Prepares to Declare Third Interim Dividend
----------------------------------------------------------
Unsecured creditors of Selco Salvage Ltd are required to present
their proofs of claim to liquidator Rainier H C Lam by Aug. 21,
2006.

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

The liquidator can be reached at:

        Rainier H C Lam
        20th Floor, Prince's Bldg
        Central, Hong Kong


SHATIN LUCKY: Members Opt for Voluntary Liquidation
---------------------------------------------------
Members of Shatin Lucky Plaza Ltd resolved on July 10, 2006, to
voluntary liquidate the Company and assign Ng Shung Mo as
liquidator to distribute the company's assets in whole or in
part among members of the company.

The liquidator can be reached at:

         Ng Shung Mo
         12/F., Grand Court
         6 Babington Path, Mid Level
         Hong Kong


SWEET HOUSE: Liquidator to Present Wind-Up Report
-------------------------------------------------
Liquidator Law Hung Chu will be presenting a report regarding
Sweet House Ltd's wind-up proceeding.

The presentation will be held at the final members' meeting of
the Company on August 22, 2006, at 11:00 a.m., at Unit A, 31st
Floor Block 1, Elegant Terrace, in 36 Conduit Road, Hong Kong.


TOPFINE MACHINERY: Appoints Joint Liquidators
---------------------------------------------
Roderick John Sutton and Desmond Chiong, both of Ferrier Hodgson
Ltd, were appointed as joint liquidators on May 22, 2006, to
oversee the liquidation of Topfine Machinery Co Ltd.

The joint liquidators can be reached at:

         Desmond Chiong
         14/F., The Hong Kong Club Bldg
         3A Chater Road, Central
         Hong Kong


TSZ WAN SHAN: Hearing of Wind-Up Bid Set for Aug. 16
----------------------------------------------------
A hearing on the wind-up petition filed against Tsz Wan Shan Ltd
will be held on August 16, 2006, at 9:30 a.m.

Li Lai Ha filed the petition with the High Court of Hong Kong on
June 16, 2006.

The solicitor for Li Lai Ha can be reached at:

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


WATERY OCEAN: Faces Wind-Up Proceedings
---------------------------------------      
The High Court of Hong Kong will hear a petition to wind up
Watery Ocean Restaurant Co Ltd on August 16, 2006, at 9:30 a.m.

Kong Ching Chau submitted the petition before the Court on
June 21, 2006.

The solicitor for Kong Ching Chau can be reached at:

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


WIDER INTERNATIONAL: Wind-Up Hearing Set by the Court
-----------------------------------------------------
The wind-up petition filed against The Wider International
Trading Ltd will be heard before the High Court of Hong Kong on
August 16, 2006, at 9:30 a.m.

Lam Kam Shan filed the petition with the court on June 14, 2006.

The solicitor for Lam Kam Shan can be reached at:

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


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

HINDUSTAN PETROLEUM: Posts INR6-Billion First Quarter Net Loss
--------------------------------------------------------------
Hindustan Petroleum Corporation Ltd has registered a net loss of
INR6.08 billion during the first quarter ending June 30, 2006,
due to under-recoveries in sales of petrol, diesel, cooking gas
and kerosene.

The net loss figure in the first quarter of the current fiscal
year is INR1 billion more than the INR5.08 billion booked in the
same quarter last year.

Hindustan Petroleum's refineries, which have a total capacity of
13 million tonnes per annum, handled 4.14 million tonnes of
crude in the first quarter, operating at 130% of the capacity,
compared to 90% in the same quarter last year.

Despite recording a record refining margin of US$9 per barrel
before granting marketing discounts to its own retail marketing
arm, which brought down the margin to US$7.6 per barrel, the
Company was making losses on retail sales.

The government-fixed price of petrol is INR5.59 per liter below
the cost of recovery, while the diesel price is INR7.89 per
liter below the level.  The subsidy on cooking gas is about
INR133 per 14-kg cylinder and INR18.08 per liter of kerosene
sold through the public distribution system.

Despite this, the Hindustan Petroleum has earmarked INR2 billion
out of its INR9 billion investment plans this year to set up 650
new retail outlets including 500 in rural areas and
modernization of 1,000 more outlets to keep a check on the
quality and quantity of fuel dispensed.

Hindustan Petroleum further disclosed it was on the verge of
achieving financial closure for both the expansion of its
Visakhapatnam refinery from 8.2 million tonnes to 15 million
tonnes and setting up a new refinery at Bhatinda in Punjab.

                    About Hindustan Petroleum

Mumbai-based Hindustan Petroleum Corporation Ltd
-- http://www.hindustanpetroleum.com/-- was formed in 1974 on  
nationalization of ESSO India operations.  The operations of
Caltex were merged in 1976.  With two refineries at Mumbai and
Vizag, Hindustan Petroleum is currently is the second largest
player in both the Indian oil sector as well as the highly
competitive lubricants market.  However, the Company has lately
been incurring losses due to a government mandate to sell fuel
at subsidized prices.  The Company is counting on a Government
bailout to save it from bankruptcy.


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

BANK MANDIRI: First Half Net Profit Rises 32%
---------------------------------------------
PT Bank Mandiri reported a 32.4% growth in its net profit for
the first half of 2006 on decreased bad loan provisions and a
higher net interest margin, Reuters News relates.

Bank President Agus Martowardojo said, however, that they are
not expecting an increase in net profit for the second half of
the year, adding that economic conditions might turn
unfavorable.

Bank Mandiri was adversely affected by the state central bank's
implementation of strict regulations on bad loans classification
and increased benchmark interest rates last year.  The Bank's
January-June 2005 net profit was pegged at IDR616.05 billion,
while this year's H1 net profit stood at IDR815.44 billion;
however, this was still lower than its 2004 first-half net
profit of over IDR3 trillion.  The Indonesian Government's
increase in fuel prices last October 2005 also forced Bank
Mandiri to raise its local rate to 12.75% from 8.5%, which may
have discouraged the public to take out loans.  

Reuters forecasts that the Bank will post a IDR2.28-trillion
full-year net profit for 2006.

                      About Bank Mandiri

Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's  
largest and best capitalized bank in terms of assets, loans and
deposits, and provides comprehensive financial services to more
than six million corporate and individual consumers, as well as
small and medium-sized enterprises in Indonesia.

According to a report by the Troubled Company Reporter - Asia
Pacific on May 29, 2006, Moody's Investors Service had upgraded
the Bank's subordinated debt rating to Ba3 from Ba1, and its
senior debt rating to Ba3 from Ba1, on higher foreign currency
bond ceilings.


* Sovereign Upgrade Has No Current Impact on Banks, S&P Says
------------------------------------------------------------
Standard & Poor's Ratings Services said that the upgrade in the
sovereign credit ratings on Indonesia -- foreign currency BB-
/Stable/B; local currency BB+/Stable/B -- is not expected to
result in a corresponding upgrade of ratings on Indonesian
banks.

The sovereign rating upgrades on Indonesia reflect its improving
fiscal and external performance, resulting in declining debt
burdens.  Standard & Poor's rates:

   * PT Bank Danamon Tbk (BB-/Stable/B);
   * PT Bank Mandiri (BB-/Stable/B);
   * PT Bank Negara Indonesia Tbk (B+/Stable/B); and
   * PT Bank Internasional Indonesia Tbk (B+/Stable/B).

The Indonesian banking sector continues to face the key
challenges of slow credit growth amid a still-high interest rate
environment.  For the first five months of 2006, system credit
grew by a low 1.5%, compared with about 10% in the corresponding
2005 period.  The low credit growth with rising cost of funds
have pressured the banks' net interest income margins.  The
banking sector also faces the impact of lower consumer
purchasing power, hurt by the increase in fuel prices in 2005.

"Consumer loans have been one of the key drivers of the system's
lending focus," said Standard & Poor's credit analyst Adrian
Chee.  At the same time, the high interest rate environment has
contributed to a rise in NPLs in the corporate portfolios of
commercial banks, in particular the state-owned lenders, which
have been unable to take concrete action on such NPLs as they
are classified as state assets.

Nevertheless, as economic and investment activities start to
pick up again, it is expected that there will be a divergence in
financial profiles, in terms of profitability and loan quality
between the banks in Indonesia.  "As banks are expected to
expand their lending activities again when the interest
rate and operating environment becomes more conducive, those
with stronger market positions, more efficient funding avenues,
and a good risk management culture, are expected to benefit,"
Mr. Chee said.

For the banks rated by Standard & Poor's, PT Bank Danamon and PT
Bank Internasional Indonesia are in a relatively more
advantageous position, compared with PT Bank Mandiri and PT Bank
Negara Indonesia.  Standard & Poor's will also be monitoring
further regulatory developments, such as more specific details
on the one-presence policy, and its resultant impact on the
financial and business profiles of the Indonesian banking
sector.


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

LIVEDOOR CO: Ex-Director Denies Involvement in Fraud
----------------------------------------------------
Livedoor Co. Ltd's ex-representative director Fumito Kumagai
denied his involvement in an accounting fraud scam surrounding
the Company and its former founder and other directors at a
court hearing on July 27, 2006, Crisscross News says.

Mr. Kumagai and other former directors of Livedoor were found to
have conspired to cover up the Company's JPY310-million pre-tax
loss for the business year ended September 2004 together with
former Livedoor President Takafumi Horie, by doctoring financial
accounts to instead show an inflated pre-tax profit of
JPY5.03 billion.  Moreover, Mr. Horie and the Company executives
allegedly relayed false information on a merger, with the intent
to boost the stock price of Livedoor's subsidiary, Livedoor
Marketing Co.

Lawyers for Mr. Horie said, however, that he was not aware that
what they were doing was illegal, and denied the fraud charges
against him at a pretrial hearing on July 26, 2006.

                          *     *     *

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

The Troubled Company Reporter - Asia Pacific reported that in
January 2006, Livedoor ex-president and founder Takafumi Horie,
and other Livedoor directors were investigated over allegations
that they have conspired to cover up the Company's JPY310-
million pre-tax loss for the financial year ended September 2004
by doctoring financial accounts to instead show an inflated pre-
tax profit of JPY5.03 billion.

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


NOMURA CAPITAL: Assigns BB Rating to Class D of 2nd Conduit CMBS
----------------------------------------------------------------
Standard & Poor's Ratings Services, on July 28, 2006, assigned
its ratings to NCI Trust Certificate-2's JPY30.7535 billion
floating-rate trust certificates, classes A to D, due September
2013.

The aggregate issue amount of the certificates issued under the
NCI Trust Certificate-2 transaction, including the unrated class
R certificates, is JPY31.1465 billion.  The trust certificates
are ultimately secured by seven non-recourse loans originated by
Nomura Capital Investment Co. Ltd. and extended to seven
borrowers, and by one secured specified bond originated by
Nomura Securities Co. Ltd.  The nonrecourse loans and the
specified bond are ultimately secured by 22 real estate
properties, and the transaction is arranged by Nomura Securities
Co. Ltd.

The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's final
maturity date in September 2013 for the class A certificates,
and the full payment of interest and repayment of principal by
the transaction's final maturity date for the class B to D
certificates.

The ratings are based on:

   -- The quality of the nonrecourse loans and secured specified
      bond that ultimately secure the trust certificates;

   -- The quality of the real estate properties that ultimately
      secure the nonrecourse loans and the secured specified
      bond;

   -- Ample credit support provided by the senior/subordinated
      structure of the certificates;

   -- Ample liquidity support provided by reserves and servicer
      advances; and

   -- The sound nature of the transaction's legal structure.

Ratings assigned:

   JPY31.1465 billion trust certificates due September 2013

   Class           Amount            Rating
   -----           ------            ------
     A          JPY22.8 billion        AAA
     B           JPY4.2 billion          A
     C           JPY2.3 billion        BBB
     D           JPY1.4535 billion      BB
     R         JPY393.0 million         NR


SANYO ELECTRIC: Cost-Cutting Measures Leads to Lower Net Loss
-------------------------------------------------------------
Sanyo Electric Co. said that its cost-cutting efforts led the
Company to post an operating profit of JPY2.57 billion in the
first quarter of 2006 against a JPY13-billion loss the previous
year, Crisscross News relates.

In the three months ended June 30, 2006, Sanyo's net loss
dropped to JPY9.67 billion from the JPY26.2-billion loss for the
same period last year on a rise in solar panel sales and orders
from the mobile phone industry, according to Bloomberg News.  
Sales amounted to JPY504.1 billion.  

The Company's battery division logged an operating profit of
JPY12.6 billion, against a JPY2.7-billion loss the previous
year, due to increased demand for longer lasting rechargeable
batteries.  Sanyo expects sales of its solar batteries to reach
JPY180 billion in the year ending March 31, 2011, from an
initial forecast of JPY56 billion.

Bloomberg adds that the Company received JPY300 billion from
banks on the closure of some factories, in order to pay those
who were laid off.  Sanyo President Toshimasa Iue plans to
concentrate efforts on its solar-panel and rechargeable-battery
operations in order to further increase earnings, after fierce
competition in consumer electronics from low-priced Asian
manufacturers.

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

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

Standard & Poor's Ratings Services gave Sanyo Electric a 'BB'
long-term corporate credit and 'BB+' long-term senior unsecured
debt ratings, which were placed in CreditWatch with negative
implications after the Company disclosed its plan to form a
joint venture with Taiwan's Quanta Computer, Inc., in the flat
panel TV business.

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


SOJITZ CORP: S&P Puts BB- Unsecured Debt Ratings on CreditWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services said on July 28, 2006, that
its 'BB-' long-term corporate credit and 'BB+' senior unsecured
debt ratings on Sojitz Corp. remain on CreditWatch with positive
implications as the Company continues to improve its capital
quality.

S&P placed Sojitz on CreditWatch on April 28, 2006, after the
Company announced its plan to issue JPY300 billion in
convertible bonds and buy back its preferred stock worth
JPY560.4 billion, after shareholders ratified the plan at its
shareholders' meeting.  The bond conversion is now under way,
and once the plan is completed, Sojitz's ratio of preferred
stock to capital will likely be very low, which should greatly
improve its capital quality and have a positive impact on the
Company's credit quality.
     
However, in the two months since the start of the conversion,
JPY34 billion worth of convertible bonds has been converted, and
it may take time a long time for the full issuance amount to be
converted.  Market conditions have also deteriorated since
Sojitz began issuing the convertible bonds, with its stock price
falling to JPY369 per share as of closing day on July 27, 2006.  
Although Sojitz posted good results in the first quarter of
fiscal 2006, the convertible bond price has already hit the
conversion price floor of JPY341.3; if the stock price drops
further and remains low for some time, underwriters may exercise
their put options and seek early redemption, as holding on to
the bonds would have reduced benefit.  Standard & Poor's has
taken into account factors that could impair the scheme's
effectiveness, and the CreditWatch status will be resolved after
the agency further examines the progress of the conversion as
well as market conditions.  Any upgrade is expected to be by one
notch.


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

HYNIX SEMICONDUCTOR: Rambus Accepts US$133-Mil Damages Payment
--------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
July 26, 2006, that Judge Ronald Whyte of the United States
District Court for the Northern District of California reduced
the damage amount that Hynix Semiconductor Inc. has to pay
Rambus Inc. from US$307 million to US$133.4 million.  The
damages pertain to a patent infringement case that Rambus filed
against Hynix.

In an update, Reuters relates that Rambus has accepted the lower
award in its damages case against Hynix for violating its
patents on memory chips.

                       About Rambus Inc.

Rambus Inc. manufactures and licenses chip interface
technologies.  The Company's chip interface technologies are
designed to improve the time-to-market and performance of its
customers' semiconductor and system products for computing,
communications and consumer electronics applications.  Rambus
offers its customers two alternatives for using its chip
interface technologies in their products.  The Company licenses
its portfolio of inventions to semiconductor and system
companies, who use these inventions in the development and
manufacture of their own products.  The licensing agreements may
cover the license of part, or all, of the Company's portfolio.

Rambus also develops its own and industry-standard chip
interface products, which are offered to its customers under
license for incorporation into their semiconductor and system
products.  The Company sells its chip interfaces and licenses to
customers in the Far East, North America and Europe.

                   About Hynix Semiconductor

Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.    
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.

Standard & Poor's Ratings Services gave Hynix, and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc., a
'B+' long-term corporate credit rating.


LG TELECOM: Fined KRW2 Billion for Price Fixing
-----------------------------------------------
Korea's Fair Trade Commission has slapped LG Telecom Ltd. with a
KRW2.03-billion fine for price fixing practices, Yonhap News
says.

According to The Korea Times, another mobile operator, KTF, was
also directed to pay a KRW4.67-billion penalty.

Yonhap News relates that the FTC found that LG Telecom and KTF
colluded in early 2000 to cut voice telephony service fees by
3%, lower than the fees advised by the Ministry of Information
and Communication.

                        About LG Telecom

Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd.
-- http://www.lgtelecom.com/-- is a telecommunications and  
mobile phone operator controlled by the LG Group, one of the
country's largest chaebol.  It is Korea's smallest wireless
operator. LG Telecom became one of the first companies to launch
a commercial 3G service using PCS technology.  In 1997, this was
followed up by launching the second PCS network, offering
greatly increased data transmission speeds.  LG Telecom also
offers a variety of internet services. BankOn is one of the most
popular mobile banking services in South Korea and MusicOn is a
popular instant messenger.

Moody's Investor Service gave LG Telecom a 'Ba2' Issuer Rating,
a 'Ba2' Long-Term Corporate Family Rating and a 'Ba2' Senior
Unsecured Rating.

Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long-
Term Foreign Issuer Credit and Long-Term Local Issuer Credit
Ratings.

Fitch Ratings gave the Company 'BB' Long-Term Foreign Issuer
Default and Foreign Currency Long-Term Default Ratings.


* Government Recovers KRW80 Trillion in Firm Rescue Funds
---------------------------------------------------------
The South Korean Government revealed that it has so far
recovered nearly KRW80 trillion in public funds used to rescue
embattled financial companies, The Korea Times reports.

As of the end of June 2006, the Government had gotten back
KRW79.6 trillion out of a total KRW168.3 trillion it had
injected into troubled financial firms, according to the Finance
Ministry.

In June 2006 alone, KRW4.5 billion in additional bailout funds
were spent, while KRW713 billion worth of taxpayer funds were
being recovered.

The recovery rate stood at 47.3% as of the end of June, up 0.4
percentage points from the previous month, the ministry said.

The Government poured massive amounts of public funds into
financial companies to rescue them from the brink of bankruptcy
following the late 1997 financial crisis.


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

AKTIF LIFESTYLE: Reports MYR0.145-Mil Loss for Fiscal Year 05/06
----------------------------------------------------------------
Aktif Lifestyle Corporation Bhd and its subsidiaries posted a
MYR0.145-million net loss for the financial year ending February
28, 2006, compared with the MYR54.7 million net profit posted
for the previous financial year.

Aktif's consolidated revenue for the 2005/06 financial year was
MYR0.104 million, a 99.7% decrease from the MYR36.64 million
revenue for the 2004/05 financial year.

Aktif's consolidated balance sheet as of February 28, 2006,
showed MYR0.439 million in current assets and MYR0.106 million
in current liabilities, resulting in net current assets of
MYR0.333 million.  Total equity for Aktif's shareholders as of
February 2006 is MYR2.14 million.

Lai Can Yiew, of Deloitte Kassimchan, says that the validity of
the company's and the group's ability to continue as a going-
concern is dependent on the successful conclusion and
implementation of the proposed restructuring scheme.

Aktif's annual report for the period ended February 28, 2006, is
available for free at:

     http://bankrupt.com/misc/Aktif022806.pdf

                     About Aktif Lifestyle

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

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

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


AKTIF LIFESTYLE: Turns Around with MYR0.235Mil Net Profit in 1Q
---------------------------------------------------------------
For the first quarter ended May 31, 2006, Aktif Lifestyle
Corporation Bhd posted a net profit of MYR235,000, a turnaround
from the MYR157,000 net loss posted for the first quarter in
2005.

The Company's revenue for the first quarter of fiscal year
ending February 28, 2007, was MYR11,000, compared with the
MYR17,000 revenue for the first quarter of last fiscal year.

Aktif Lifestyle's total current assets as of May 31, 2006, was
MYR1.18 million, while total current liabilities was
MYR0.10 million.

The Company's key financial data reflect these figures:

                                    Individual Period
                                     Quarter Ending
                                05/31/06         05/31/05
                                --------         --------
      ('000)
      Revenue                      MYR11            MYR17
      Profit/(Loss) before
         tax                         235             (157)
      Profit/(Loss) after
         tax & minority
         interest                    235             (157)
      Net profit/(loss) for
         the period                  235             (157)
      Basic earnings/(loss)
         per share (sen)            1.15            (0.77)
      Dividend per share (sen)      0.00             0.00

                                 As of            As of
                                05/31/06         02/28/08
                                --------         --------

      Net assets per share        0.1200           0.1000
         attributable to
         ordinary equity
         holders of the parent

No dividend was paid or declared by the Company during the
financial quarter under review.

                     About Aktif Lifestyle

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

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

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


PROTON HOLDINGS: Board Accepts Executive Director's Resignation
---------------------------------------------------------------
Proton Holdings Bhd's board of directors has accepted the
resignation of Datuk Kisai Rahmat as executive director of the
company's engineering and manufacturing department effective
July 31, 2006, The Star Online reports.

In a statement, Proton said that Mr. Kisai, who joined the
company in 1983, was one of the pioneer members of the national
car project and had made significant contributions to its
development.

Proton's statement indicated that Mr. Kisai has chosen to pursue
his personal interests after a 23-year stint at the Company.

                     About Proton Holdings

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

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

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


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

BANGKO SENTRAL: Wins Court's Favor in Banco Filipino Suit
---------------------------------------------------------
Bangko Sentral ng Pilipinas prevails in Banco Filipino Savings &
Mortgage Bank's PHP18-billion damages lawsuit, the Philippine
Daily Inquirer reports.

The Inquirer relates that in its ruling, the Regional Trial
Court in Makati City estopped Banco Filipino from including
Bangko Sentral and its policy-making Monetary Board in its
damages claim against the previous central monetary authority --
the Central Bank of the Philippines -- and the successor, the
Central Bank Board of Liquidators.

According to earlier press reports, Banco Filipino is seeking
payment of damages it suffered when the Central Bank declared an
illegal closure of Banco Filipino in 1985 during then dictator
Ferdinand Marcos' rule due to insolvency.  After the Supreme
Court overturned the Central Bank's order, Banco Filipino
resumed operations in 1994.

Banco Filipino had a "change of heart," said Judge Rebecca
Mariano in a decision released last week, "after this court
ruled, relying on plaintiff Banco Filipino's judicial
representations, that the Central Bank continues to exist as the
CB-BOL and, thus, the latter is the proper party defendant."

The same judge ruled in 1997 that the Central Bank and the BSP
have "separate and distinct" personalities.

"This finding was affirmed by the Court of Appeals and was not
reversed by the Supreme Court," Judge Mariano said.

Still, even if Banco Filipino were correct in its claim that the
BSP is the successor-in-interest of the old Central Bank, the
thrift bank had already forfeited its right to sue the new
monetary authority, with the four-year statute of limitations
having expired four years from July 3, 1993, when the BSP was
created, the judge added.

Banco Filipino only sought to implead the BSP as a co-defendant
in September 2003.

PDI says that, according to the banking grapevine, the thrift
bank is now trying to loop in the BSP in its PHP18-billion
damage claim, after belatedly realizing that the bankrupt
Central Bank and its successor, CB-BOL, have virtually no assets
left.

                       About Banco Filipino

Banco Filipino Savings & Mortgage Bank --
http://www.bancofilipino.com/-- is engaged in the general  
business of savings and mortgage banking.  Banco Filipino offers
to the public full domestic banking services, which are five
main types: cash services, commercial services, loans, money
market services, and trust services.

It started operations on July 9, 1964.  The Bank re-opened on
July 1, 1994, after it was ordered to close by the Central Bank
on January 25, 1985, and resumed business as a full service
savings bank with trust operations.

The bank's shares were suspended from trading on Oct. 10, 2002,
with a closing price of PHP90 per share on the last trading day.

The Troubled Company Reporter - Asia Pacific reported on May 17,
2006, that the Bangko Sentral ng Pilipinas approved an emergency
loan of PHP190 million to Banco Filipino Savings & Mortgage Bank
in order for it to remain liquid, after certain of its branches
experienced heavy withdrawals.  The PHP190-million loan is just
the first tranche in the bailout package.  The full amount Banco
Filipino had sought to borrow was not disclosed.

               About Bangko Sentral ng Pilipinas

The Bangko Sentral ng Pilipinas -- http://www.bsp.gov.ph/-- is  
the central bank of the Republic of the Philippines.  It was
established on July 3, 1993, pursuant to the provisions of the
1987 Philippine Constitution and the New Central Bank Act of
1993.  BSP took over from the Central Bank of Philippines as the
country's central monetary authority.  Bangko Sentral enjoys
fiscal and administrative autonomy from the National Government
in the pursuit of its mandated responsibilities.

The powers and functions of the Bangko Sentral are exercised by
the Bangko Sentral Monetary Board, the highest policy-making
body in the BSP.

Standard and Poor's Ratings Servoces gave Bangko Sentral a 'B'
Short Term Local Issuer Credit Rating, a 'BB-' Long-Term Foreign
Issuer Credit Rating, and a 'BB+' Long-Term Local Issuer Credit
Rating.

Moody's Investors Service gave Bangko Sentral a 'Ba1' Senior
Unsecured Debt Rating.


BANK OF COMMUNICATIONS: Net Income Soars 1,565% in First Quarter
----------------------------------------------------------------
Philippine Bank of Communications posted a net income of
PHP388.1 million for the first quarter of 2006, PHP364.8 million
or 1,565.38% higher compared to the net income posted for the
same quarter last year, according to the bank's quarterly
financials submitted to the Philippine Stock Exchange.

The increase came from higher revenues from past due interest,
interest income from interbank loans receivable, trading gains,
income from trust operations and other income.  Reduced interest
expenses also contributed to the higher net income this year.
These higher revenue streams compensated for the lower interest
income, fees and commission, foreign exchange gains and the
increases in operating expenses and gross receipts tax.

Net interest income for the 2006 first quarter was lower by
PHP60.2 million, or 20.21% below the NII for the same period
last year due to the PHP119.0 million decline in interest
income.

Gross interest expense for the current year first quarter was
PHP580.7 million, lower by PHP58.8 million against the previous
year first quarter's PHP639.5 million, due to the reduced volume
of time deposits that migrated to other products of the bank
like the Unified Investment Trust Funds.

For the first quarter of 2006, non-interest income totaled
PHP645.0 million, up by PHP475.0 million from the previous
corresponding quarter's PHP170.0 million.  The increase in
income was due to the upsurge in trading gain by
PHP413.37 million, increase in income from trust operations by
PHP26.28 million and from higher revenues from assets
sold/acquired by PHP55.36 million.

                      Financial Condition

Total Assets as of end-March 2006 amounted to PHP50.8 billion,
PHP2.0 billion lower than the 2005 year-end's PHP52.8 billion.
The decline in assets came from the reduction in amounts due
from Bangko Sentral ng Pilipinas by PHP266.4 million, Interbank
Call Loans by PHP2.2 billion, and loans and other receivables by
PHP700.0 million.

Total deposits decreased by PHP1.8 billion to PHP32.2 billion as
of March 31, 2006, due to maturing long-term deposits that
migrated to the bank's Unified Investment Trust Fund, an off-
book product managed by the Trust Group of the Bank.

Total borrowings decreased by PHP815.5 million to PHP6.9 billion
as of March 31, 2006, on account of reduced FCDU borrowings from
correspondent banks.

The increase in capital stock was brought about by the booking
of preferred shares for PHP3.0 billion upon receipt of approval
from SEC for the issuance of 120,000,000 of such shares.  A
corresponding decrease in Deposit for Future Stock Subscription
for the same amount was also reflected.

The bank's top five key performance indicators are:

                                    03/2006     12/2005
                                    -------     -------

        Loans to Deposits Ratio      38.10%      35.94%
        NPL Ratio                    23.17%      20.71%
        NPL Coverage Ratio           40.09%      42.30%
        Liquidity Ratio              61.07%      56.86%
        Capital to Risk Assets       31.77%      32.67%

PBCOM's financial report for the quarter ended March 31, 2006,
is available for free at:

     http://bankrupt.com/misc/PBC_17Q_Mar2006.pdf

            About Philippine Bank of Communications

Headquartered in Makati City, Philippines, Philippine Bank of
Communications -- http://www.pbcom.com.ph/-- provides different  
products and services through its different divisions and it has
a broad range of credit facilities, which are either denominated
in local currency or foreign. Its Trust Division handles common
trust funds, investment advisory accounts and employee benefit
trusts.  Aside from these, the bank also offers money market
placements and traditional products such as peso deposits.

Fitch Ratings gave Philippine Bank of Communications an
Individual Rating of 'D/E.'


BANK OF COMMUNICATIONS: Whole Board to Serve Another Term
---------------------------------------------------------
Philippine Bank of Communications held its Annual Stockholders'
Meeting on June 20, 2006.  During the meeting, all members of
the Board of Directors were re-elected to continue serving in
the Board.

Sycip, Gorres & Velayo also remained as the bank's external
auditing firm.

Immediately following the Stockholders' Meeting was the
organizational meeting of the Board where these individuals were
once again appointed to serve for another term:

     Chairman Emeritus : Luy Kim Guan
     Honorary Chairman : Chung Tiong Tay
              Chairman : Enrique T. Luy
         Vice Chairman : Ralph Nubla Jr.
       President & CEO : Carmelo Maria Luza Bautista
             Directors : Henry Y. Uy
                         Edwin L. Luy
                         Ernesto T. Luy
                         Carlos G. Chung
                         Atty. Bi Yong So Chungunco
                         Johnny O. Cobankiat
Independent Directors : J. Antonio M. Quila
                         Jose Luis S. Javier
                         Ruben D. Almendras
                         Renato H. Peronilla
  
            About Philippine Bank of Communications

Headquartered in Makati City, Philippines, Philippine Bank of
Communications -- http://www.pbcom.com.ph/-- provides different  
products and services through its different divisions and it has
a broad range of credit facilities, which are either denominated
in local currency or foreign. Its Trust Division handles common
trust funds, investment advisory accounts and employee benefit
trusts.  Aside from these, the bank also offers money market
placements and traditional products such as peso deposits.

Fitch Ratings gave Philippine Bank of Communications an
Individual Rating of 'D/E.'


CHINA BANK: NPL Ratio Increases in June 2006
--------------------------------------------
China Banking Corp.'s non-performing loans totaled
PHP7.29 billion as of June 30, 2006, or 8.26% of its total loan
portfolio, the Philippine Daily Inquirer relates.

The bank earlier posted an NPL ratio of 7.94% as of end-March
with total bad loans of PHP7.34 billion.

According to its latest statement of condition, China Bank set
aside PHP5.6 billion in specific provisions for probable loan
losses and another PHP1.28 billion for general provisions.

Return on equity as of end-June stood at 13.24% compared to
15.30% at end-March.

                        About China Bank

China Banking Corporation -- http://www.chinabank.com.ph/-- is  
the first privately-owned local commercial bank in the
Philippines, with products and services including deposits and
related services, international banking services, insurance
products, loans and credit facilities, trust and investment
services, insurance products, and other services such as
acceptance of various bill payments and donations to charitable
institutions.

China Bank has 140 branches and 166 Automated Teller Machines
nationwide.

                          *     *     *

Moody's Investors Service gave China Bank a 'B' Long-term Issuer
Default Rating effective May 17, 2006.


EQUITABLE PCI: NPL Ratio Up to 5.27% in June 2006
-------------------------------------------------
Equitable PCI Bank's non-performing loans amounted to
PHP6.85 billion or 5.27% of its total loan portfolio as of
June 30, 2006, the Philippine Daily Inquirer reports.

The Philippines' third largest lender by assets had reported an
NPL ratio of 5.03% as of March 31, 2006, with total bad debts at
PHP7.24 billion.

According to its latest statement of condition, the bank set
aside PHP8.92 billion in specific provisions for probable loan
losses and another PHP764.33 million in general provisions.

Return on equity stood at 6.46% compared to 5.70% at the end of
March 2006.

                      About Equitable PCI

Equitable PCI Bank, Inc. -- http://www.equitablepci.com/-- is a  
universal bank formed from the consolidation of Equitable
Banking Corporation and PCI Bank on September 2, 1999.  EBC and
its subsidiaries provide a wide range of commercial, corporate,
and retail banking and financial services, including lending and
deposit taking, branch banking, international banking,
electronic banking, trade finance, cash management, and trust
and treasury services.  Aside from commercial banking, the Bank
also capitalizes in credit card, investment banking, leasing,
trust banking, and remittance business.

                          *     *     *

Moody's Investors Service gave Equitable PCI Bank's Subordinated
Debt and Long Term Bank Deposits 'Ba3' ratings effective May 25,
2006.

Standard & Poor's Rating Service gave Equitable PCI Bank's
senior unsecured debt a 'B' rating and its subordinated debt a
CCC+ rating.  


LEPANTO CONSOLIDATED: To Sell Shares in September
-------------------------------------------------
Lepanto Consolidated Mining Co. will start offering 1-for-8
stock rights to shareholders from September 11-20, 2006, the
Philippine Daily Inquirer says, citing Xinhua Financial News.

This means that stockholders are offered one share at a price of
PHP0.20 per share for every eight shares held on Aug. 16, 2006.
The Company expects to sell some 3.2 billion shares for
PHP636 million in aggregate.  The new shares will be listed on
the Philippine Stock Exchange on Oct. 20, 2006.

The Inquirer adds that, according to Lepanto, the proceeds of
the sale would go toward repaying its bank loans and advances
from shareholders, as well as the settlement of bank-related
accounts.  The Company forecasts a net profit of PHP104 million
for 2006 on high metal prices and increased output.

                    About Lepanto Consolidated

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

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


MAYNILAD WATER: DMCI Holdings Interested in Acquiring Stake
-----------------------------------------------------------
A consortium of DMCI Holdings Inc. and Metro Pacific Investment
Corp. expressed interest in acquiring the 16% stake of French
utility firm Ondeo Services in Maynilad Water Services Inc.,
aside from the Government's 83.9% stake in the Company, Manila
Standard Today relates.

Both firms had teamed up last week to bid for the Government's
stake in Maynilad, the Philippine Inquirer reports, citing XFN-
Asia.  DMCI Chief Financial Officer Herbert Consunji said that
after the company's annual shareholders' meeting, they are
prepared to bid for Ondeo's stake in Maynilad Water, should they
opt to tag along with the Government in selling off its shares.

As reported in the Troubled Company Reporter - Asia Pacific on
July 25, 2006, that aside from the DMCI-Metro Pacific
consortium, India's Karunakaran Ramchand, Manila Water Inc.,
Marubeni Corp. of Japan, and Rubia Holdings-Noonday Asset
Management Asia Pte Ltd. are also interested in bidding for the
Government's stake in Maynilad.

The MWSS, which holds the Government's stake in
Maynilad, has set the minimum required bid for the stake at
PHP3.13 billion, plus a PHP1.54-billion performance bond.  
Qualified bidders who pass business and technical requirements
must post a PHP128.77-million guarantee, before Metropolitan
Waterworks & Sewerage System, which holds the 83.97% stake,
will determine the highest bidder.  The deadline for the
submission of bids is Oct. 24, 2006, and MWSS expects to award
the contract to the winning bidder before December this year.

In the terms of reference for the auction, the winning bidder
will continue Maynilad's operations of the west zone of the 25-
year contract, and will handle the Company's debts in a debt and
capital restructuring agreement with MWSS.

                          *     *     *

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

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

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

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

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

            Debt Capital and Restructuring Agreement

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


PHILIPPINE LONG DISTANCE: Unit to Acquire BusinessWorld Stake
-------------------------------------------------------------
Philippine Long Distance Telephone Co. will acquire a 29.9%
stake in BusinessWorld, the Philippines' oldest business daily,
according to a report from the Agence France-Presse.

In a front page statement, BusinessWorld said that PLDT, through
subsidiary MediaQuest Holdings Inc., would buy the holdings of
the late Filipino tycoon Enrique Zobel.  The stakes would give
MediaQuest three board seats.

The partnership becomes formal in three weeks, the paper said.

MediaQuest President Orlando Vea said that MediaQuest's
objective was to provide the technology to BusinessWorld so that
it can proactively develop its new media thrust in such areas as
broadband Internet and mobile telephony.

                     About Business World

Headquartered in Quezon City, Philippines, BusinessWorld --
http://www.bworld.com.ph/-- is the country's leading business  
newspaper.  It is among the first Philippine publications to
provide information via the World Wide Web when it came up with
the Internet Edition (now BusinessWorld Online) in 1995.
BusinessWorld Online continues the newspaper's tradition as a
publishing pioneer, this time on the Web.  Updated daily and
archived, it is regarded as an institution in Philippine Web
publishing.  Latest advertising agency figures say that it has a
circulation of 65,000 copies every weekday.

                About Philippine Long Distance

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

                          *     *     *

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

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

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


PHILIPPINE NATIONAL BANK: Lucio Tan May Buy Government Stakes
-------------------------------------------------------------
Philippine National Bank has confirmed that the Lucio Tan Group
may acquire the Government's 12.5% stake in PNB, the Philippine
Daily Inquirer reports.

According to the Inquirer, the Lucio Tan Group currently owns
nearly 80% of the bank.

"This is a possibility considering that the (PNB rehabilitation)
program provided the government with a put option on the Lucio
Tan Group.  Once the government exercises its put option, its
exposure in PNB will just be the balance of the PDIC loan," PNB
said in a disclosure to the Philippine Stock Exchange.

The country's fifth largest lender in terms of assets had
borrowed PHP10 billion from the state insurer, the Philippine
Deposit Insurance Corp., and agreed to settle that debt by 2007.  
The bank will continue to handle government deposits until 2007,
when its five-year rehabilitation program is scheduled to
expire.

Mr. Tan, listed as the richest man in the Philippines, won last
year's bidding for a 67% stake in PNB, comprising his and the
Government's combined 372 million shares, by matching the price
of PHP43.77-a-share offered by the only other bidder, a group
led by Union Bank of the Philippines.

                 About Philippine National Bank

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
components/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.

                          *     *     *

Standard and Poor's Ratings Services has given PNB 'B' Short-
Term Foreign Issuer Credit and Short-Term Local Issuer Credit
Rating, as well as 'B-' Long-Term Foreign Issuer Credit and
Long-Term Local Issuer Credit Ratings effective as of April 26,
2006.

Moody's Investors Service has assigned a Ba3 rating to PNB's
proposed local currency subordinated notes -- Series A and
Series B.


RIZAL COMMERCIAL BANKING: NPL Ratio Goes Down to 10.15%
-------------------------------------------------------
Rizal Commercial Banking Corp's non-performing loans amounted to
PHP7.6 billion at the end of June 2006, accounting for 10.15% of
its total loans, the Philippine Daily Inquirer says.

At the end of March 31, 2006, its NPLs amounted to
PHP8.49 billion, accounting for 11.44% of its total loans.

In its latest statement of condition, RCBC reported general
provisions for probable loan losses of PHP307.8 million and
specific provisions of PHP7.34 billion.

Its return on equity stood at 9.34% at the end of last month.

                           About RCBC

Rizal Commercial Banking Corporation -- http://www.rcbc.com/--  
is a universal bank principally engaged in all aspects of
banking.  It provides services such as deposit products, loans
and trade finance, domestic and foreign fund transfers,
treasury, foreign exchange and trust services.  In addition, the
Bank is licensed to enter into forward currency contracts to
service its customers and as a means of reducing and managing
the Bank's foreign exchange exposure.

                          *     *     *

Moody's Investors Service gave Rizal Commercial Banking a 'Ba3'
Long-Term Bank Deposit Rating effective May 25, 2006.


SECURITY BANK: First Quarter 2006 Net Income Doubles
----------------------------------------------------
Security Bank Corporation reported improved net income of
PHP540 million for the first quarter ending March 31, 2006, a
PHP275 million or 104% increase from the PHP265-million net
income reported for the first quarter in 2005, according to the
bank's quarterly financials submitted to the Philippine Stock
Exchange.

Net interest income decreased from PHP974 million for the first
quarter of 2005 to PHP939 million for the first quarter this
year due to declining interest rates and lower volumes of
interest-earning assets.  Non-interest income contributed
PHP857 million for the first quarter of 2006, reflecting a 103%
year-on-year improvement from PHP422 million last year.  The
increase was driven by better foreign exchange profit,
securities trading gains, trust fees, asset disposal gains,
recoveries of charged-off assets and rental income from
foreclosed properties.

Operating expenses for the current period amounted to
PHP888 million, reflecting a growth of PHP229 million or 35%
from the operating expenses of the same period last year.

Provision for credit losses amounted to PHP250 million for the
first quarter of 2006, lower than PHP340 million for the
previous corresponding period.  

Provision for income tax reached PHP117 million for the first
quarter of 2006, lower than PHP131 million for the same period
last year due mainly to the decrease in final taxes.

                        Financial Position

Security Bank ended the first quarter of 2006 with
PHP101 billion in resources, reflecting a PHP4 billion or 4%
decrease from the yearend 2005 level.

Loans and receivables stood at PHP35 billion as of the first
quarter of 2006, reflecting a PHP4 billion or 10% decrease from
the yearend 2005 level as payments exceeded new availments.  
Deposits and borrowings amounted to a combined total of
PHP86 billion at end-March 2006, also reflecting a PHP4 billion
or 4% decrease from the yearend 2005 level due to lower savings
deposits, time deposits and bills payable.

Capital funds are at PHP10.6 billion as of the first quarter of
2006, reflecting a growth of PHP328 million from the yearend
2005 level.  This is the impact of the PHP540 million in
earnings for the first quarter, partly offset by the
PHP213 million decrease in net unrealized gain on available-for-
sale investments.  The capital adequacy ratio at end-March 2006
is 19.6%.  This is well above the BSP minimum requirement of 10%
and the international standard of 8%.

Liquidity as of the first quarter, as reflected by the liquid
assets to total assets ratio, has improved to 60% from 58% as of
yearend 2005.

The Bank continues to maintain superior asset quality with a
non-performing loan ratio of 3.6% and a non-performing asset
ratio of 8.6% as of March 2006.  The sustained level of
provisioning resulted in an NPL and NPA cover of 149% and 79%,
respectively.

Security Bank's first quarter 2006 financial report is available
for free at:

   http://bankrupt.com/misc/SECB_17Q_May2006.pdf

                      About Security Bank

Security Bank Corporation -- http://www.securitybank.com.ph/--  
offers a wide variety of financial products and services.  The
Bank's services include peso, dollar and third currency
deposits, domestic and international fund transfers, deposit
pick-up and payroll services, and ancillary services.  Security
Bank also provides working capital financing, term arrangements,
loan syndication services.

Fitch Ratings gave Security Bank a 'BB' Long-Term Foreign
Currency Issuer Default Rating, a 'BB' Long-Term Local
Currency Issuer Default Rating, a 'D' Individual Rating and a
'4' Support Rating.


SECURITY BANK: Re-elects Chairman
---------------------------------
Frederick Y. Dy stays on as Security Bank Corporation's
chairman, according to a bank press release.

Others to be re-elected to the Board of Directors are:

    Vice Chairman : Paul Y. Ung
          Members : Philip T. Ang
                    Anastasia Y. Dy
                    Jose R. Facundo
                    James JK Hung
                    Jose Perpetuo M. Lotilla
                    Eduardo I. Plana
                    Rafael F. Simpao, Jr.
                    Alberto S. Villarosa  

Fe T. Palileo was elected to the Board and replaces Efren P.
Aranzamendez as representative for the Social Security System.

The election was held during Security Bank's annual stockholders
meeting on May 30, 2006.  

                      About Security Bank

Security Bank Corporation -- http://www.securitybank.com.ph/--  
offers a wide variety of financial products and services.  The
Bank's services include peso, dollar and third currency
deposits, domestic and international fund transfers, deposit
pick-up and payroll services, and ancillary services.  Security
Bank also provides working capital financing, term arrangements,
loan syndication services.

Fitch Ratings gave Security Bank a 'BB' Long-Term Foreign
Currency Issuer Default Rating, a 'BB' Long-Term Local
Currency Issuer Default Rating, a 'D' Individual Rating and a
'4' Support Rating.


SECURITY BANK: NPL Ratio Drops to 3.6%
--------------------------------------
Security Bank Corporation has reduced its non-performing loans
ratio to 3.6% as of the first quarter of 2006 from the 5.3%
level registered at the end of 2005, the bank said in a press
release.

Security Bank Chief Financial Officer Carlos M. Borromeo, in the
same statement, disclosed the sale of PHP1 billion in debt paper
to ADM Capital.  

"We had purposely held off participating in the earlier move to
unload non-performing assets to third party buyers and SPVs as
the bid prices made for these distressed assets at the time were
below our preferred offer prices.  Instead, our strong revenue
growth enabled us to significantly build provisions against
NPLs, giving us the flexibility to explore several options for
their resolution such as the recent sale to ADM Capital.  This
development certainly bolsters Security Bank's capacity to take
on incremental business due to its very strong capital position
and greatly enhanced asset quality position," Mr. Borromeo said.

                      About Security Bank

Security Bank Corporation -- http://www.securitybank.com.ph/--  
offers a wide variety of financial products and services.  The
Bank's services include peso, dollar and third currency
deposits, domestic and international fund transfers, deposit
pick-up and payroll services, and ancillary services.  Security
Bank also provides working capital financing, term arrangements,
loan syndication services.

Fitch Ratings gave Security Bank a 'BB' Long-Term Foreign
Currency Issuer Default Rating, a 'BB' Long-Term Local
Currency Issuer Default Rating, a 'D' Individual Rating and a
'4' Support Rating.


UNIONBANK: Offers PHP157.17 Million for iBank Takeover
------------------------------------------------------
UnionBank of the Philippines' takeover of International Exchange
Bank will be one of the matters to be voted on at iBank's Annual
Stockholder's meeting on August 3, 2006, according to a
regulatory filing made by iBank to the Philippine Stock
Exchange.

On June 26, 2006, UnionBank, which currently owns 98.84% of
iBank's outstanding common shares, filed a Tender Offer Report
with the Securities and Exchange Commission for the acquisition
of the iBank shares it does not already own.  Specifically, the
UnionBank Tender Offer targets 3,698,100 shares in iBank, or
approximately 1.16% of its total outstanding capital stock.

According to the Philippine Daily Inquirer, Unionbank has
offered PHP42.50 per iBank share, totaling PHP157.17 million.

The PDI notes that Unionbank has also called for a meeting among
its shareholders on August 3 to approve the planned merger with
iBank.

The merger, PDI says, would create the country's ninth-largest
bank, with combined assets of PHP168 billion and 187 branches.

UnionBank is now the 13th biggest bank in the Philippines in
terms of assets, and iBank the 17th biggest.

IBank's disclosure to the PSE contains these comparative
financial data (in PHP millions):

Net Sales or Operating Revenues:

                            Union Bank         iBank
                            ----------         -----
         2004                  5,050.6       2,590.6
         2005                  6,123.1       3,418.7
         April 2006            1,956.3       1,394.6

Income From Continuing Operations:

                            Union Bank         iBank
                            ----------         -----
         2004                  2,296.7         517.8
         2005                  2,769.4         803.9
         April 2006              879.9         534.5

Long-Term Obligations and Redeemable Preferred Stock:

                            Union Bank         iBank
                            ----------         -----
         2004                  7,042.6            --
         2005                  6,632.8            --
         April 2006            6,472.1       1,287.1

                About International Exchange Bank

International Exchange Bank - http://www.ibank.com.ph--  
provides products and services such as deposits, cash management
services, commercial and consumer loans, trade finance
facilities, domestic and foreign fund transfers, foreign
exchange, fixed income distribution, derivatives and trust
services. The Bank caters primarily to corporations and
individuals belonging to the Class A, B, and upper C markets.

As of December 29, 2005, the bank was the 17th largest bank in
the Philippines in terms of total resources with total assets of
P58.3 billion. The bank was the 15th largest bank in terms of
total loans, 15th in terms of total capital, and 17th in terms
of total deposits.

                          About UnionBank

Union Bank of the Philippines -- http://www.unionbankph.com/--  
offers a wide range of products and services to both corporate
and individual clients.  Its core businesses are payment
services, corporate cash management foreign exchange, capital
markets, corporate finance and consumer finance.  It is also
engaged in investment management, trust banking, insurance
brokerage, currency brokerage, private banking, pre-need
products marketing, investment banking and financial advisory
and real property development and marketing via Union
Properties, Inc.

Moody's Investors Service gave UnionBank 'Ba3' Senior Unsecured
Debt and Long-Term Bank Deposits Ratings effective May 25, 2006.


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

FORD MOTOR THAILAND: Books US$123-Mil Net Loss for 2nd Quarter
--------------------------------------------------------------
Ford Motor Company reported a net loss of US$123 million, for
the second quarter of 2006 compared with net income of
US$946 million, in the second quarter of 2005.

The Company disclosed that second quarter loss from continuing
operations was US$48 million, compared to a profit of US$936
million, in the same period a year ago.  Its second-quarter
total sales and revenue was US$42 billion, down US$2.5 billion
from a year ago.

"We've seen an improvement in North America results in the
second quarter, but the external factors we face aren't going to
get any easier," said Chairman and Chief Executive Officer Bill
Ford. "Mark Fields (executive vice president and president - The
Americas) and his team have been working on plans to accelerate
their efforts.  Within the next 60 days, we'll be in a position
to discuss the additional actions we will be taking."

The Company also disclosed that special items reduced earnings
in the second quarter and its pre-tax effect included:

     -- a favorable adjustment of US$146 million to the first-
        quarter US$1.7 billion special charge pertaining to
        expected layoff and jobs bank benefits and voluntary
        termination packages based on agreements at its Atlanta
        Assembly Plant and St. Louis Assembly Plant for buyouts
        and employee relocation;

     -- a charge of US$171 million relative to additional
        personnel reduction programs, as well as a related
        charge of US$315 million relative to earlier
        retirements, enhanced benefits, and the accelerated
        recognition of future service costs associated with its
        U.S. hourly pension plan; and

     -- other gains of US$148 million associated with its equity
        interest in a non-recurring gain that Mazda realized on
        the transfer of its pension liabilities back to the
        Japanese government.

The Company further disclosed that it continues to have a strong
year-to-date sales growth in major international markets,
including a 100% increase in China, and a 75% increase in India.

                         About Ford Motor

Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A.,
is the world's third largest automobile manufacturer.  It has
operations all over the world including Thailand.

The Troubled Company Reporter - Asia Pacific reported on July 3,
2006, that Moody's Investors Service lowered the Corporate
Family and senior unsecured ratings of Ford Motor Company to B2
from Ba3.

Standard & Poor's Ratings Services, on the other hand, lowered
its corporate credit rating on Ford Motor Co. and its related
units to 'B+' from 'BB-' and affirmed its 'B-2' short-term
rating.

On June 12, 2006, Fitch Ratings downgraded Ford Motor's issuer
default rating to B+ from BB, and its senior unsecured ratings
to BB- from BB.


TUNTEX PUBLIC: Gains THB5.2-Billion Net Profit for F/Y '05
----------------------------------------------------------
Tuntex Public Company Ltd submitted to the Stock Exchange of
Thailand its financial report for the fiscal year ending
December 31, 2005.

The Company's 2005 consolidated income statement shows a net
profit of THB5.2 billion, which is a turnaround from the
THB1.473-billion net loss reported for the 2004 fiscal year.

As of December 31, 2005, total consolidated liabilities of the
Company and its subsidiaries were down to THB8.785 billion,
compared with the THB19.244 billion as of December 31, 2004.  
Total assets of the Company and its subsidiaries dropped to
THB10.435 billion as of December 2005 from the previous year's
THB15.551 billion.  The Company therefore posted a
THB1.65 billion in total equity as of December 31, 2005,
compared with the THB3.693-billion equity deficit reported as of
December 31, 2004.

As of December 31, 2005, the Company's balance sheet showed
strained liquidity with total current assets of THB1.5 billion
available to pay total current liabilities of THB2.751 billion.

According to the Company's auditor, Supachai Phanyawattano of
Ernst & Young Office, the Company recorded a gain on debt
restructuring amounting to THB6.513 billion, thus the improved
financial standing of the Company.  Gains on debt restructuring
has been presented as an extraordinary item in the earnings
statements of the current fiscal year, while the long-term
liabilities outstanding after the recording of the debt
restructuring transactions have been presented under the caption
of "Long-term debts under business rehabilitation plan" in the
balance sheet, the auditor said.

Full-text copies of the Company's financials for the year ending
December 31, 2005, are available for free at:

   http://bankrupt.com/misc/TUNTEX_report_05.rtf

   http://bankrupt.com/misc/TUNTEXE2.xls

                          *     *     *

Tuntex Public Company Limited -- http://www.tuntexthailand.com/
-- was incorporated as a public company limited under the Thai
laws.  The Company operates in Thailand and its principal
activity is the manufacture of polyester yarn.

On November 17, 2003, the Company filed a petition with the
Central Bankruptcy Court requesting it to order the
rehabilitation of the business of the Company.  On
December 15, 2003, the Central Bankruptcy Court issued a
rehabilitation order.

The Company's plan was approved by creditors on August 6, 2004,
and by the Central Bankruptcy Court on September 10, 2004.  The
Court also appointed the Company to be the business
rehabilitation plan administrator.


                            *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.  
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


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

Copyright 2006.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
   
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mail.  Additional e-mail subscriptions for members of the same
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thereof are $25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.
   
                 *** End of Transmission ***