TCRAP_Public/060801.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  

            Tuesday, August 1, 2006, Vol. 9, No. 151

                            Headlines

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

49 BEACH STREET: Members and Creditors to Receive Wind-Up Report
ADDICTION TREATMENT: Members Pass Resolution to Wind Up Firm
ALIOS NOMINEES: Members Resolve to Wind Up Operations
BLUVALE PTY: Enters Voluntary Liquidation
CAPITAL CITY: Liquidator Slaven to Present Wind Up Report

CASE EQUIPMENT: To Declare Dividend for Priority Creditors
CLIPSAL EXTRUSIONS: Members to Convene on August 11
COPY KING: Court Set to Hear CIR's Liquidation Bid on August 14
EDILO PTY: Appoints Austin Robert Meerten Taylor as Liquidator
ERNEST PHEONIX: Members Opt to Shut Down Business

EZI AUTOMATION: Forced into Voluntary Administration
FINANCIAL INVESTMENTS: Decides to Close Business Operations
FORTESCUE METALS: Founder Faces AU$16-Million Fine
GRAITH (NO 2): Enters Wind-Up Proceedings
JAYAUST PTY: Bank Appoints Receiver and Manager

JOSEPHINE C. WISEMAN: Names John Masselos as Liquidator
JTAP PTY: Enters Wind-Up Proceedings
KINGS CRAFTSMAN: Wind-Up Process Commenced
LYONS MOTORS: Members Resolve to Wind Up Firm
MARIACKA IMPORTS: Creditor's Proofs of Claims Due on August 10

METAL STORM: Files Prospectus for AU$27.5M Underwritten Issue
MILLERS TYRE: Placed Under Member's Voluntary Liquidation
MOONLIGHT STABLES: Liquidation Petition Hearing Set on August 7
MOULA PTY: Members and Creditors Resolve to Wind Up Firm
NB & SA MCPHERSON: Appoints Official Liquidator

NARINGA PARK: Members and Creditors Decide to Close Operations
NAWAB AGRICULTURE: Court to Hear Liquidation Bid on August 7
OXFORD SQUARE: Enters Wind-Up Proceedings
PACIFIC PRECAST: Faces Liquidation Proceedings
PHILLIPS PROPERTIES: Members to Receive Liquidator's Report

REDMOND DALE: Liquidator Mclellan to Present Wind-Up Report
SAEN OPTIONS: Enters Member's Voluntary Liquidation
SWITZER ENTERPRISES: Members Opt for Voluntary Wind-Up
TRIVENIA PTY LTD: Joint Receivers and Managers Cease Step Aside
WOODREIN PTY: Appoints Richard Herbert Judson as Liquidator

Z PAN: Supreme Court Issues Wind-Up Order
* ABN AMRO Craigs Buys Dunedin NZ's Greenslades
* Moody's Sees Challenges and Consolidation of Credit Unions
* NZ's Slower Economic Growth Dims Rates Outlook, Bloomberg Says


C H I N A   &   H O N G  K O N G

AGRICULTURAL BANK: Faces Reform to Boost Rural Financing
ASIA TIME: Contributories and Creditors to Meet on August 1
BETHEL BIBLE: Final Members' Meeting Slated for August 28
BRILLIANT TECHNOLGY: Court to Hear Wind-Up Bid on August 23
CITIC KA WAH BANK: Fitch Affirms Individual Rating at C

CHOI'S FAR EAST: Wind-Up Petition Hearing Fixed on August 16
ECO INFORMATION: Faces Wind-Up Proceedings
ELAYNE DEVELOPMENT: Court Orders Wind-Up
FINE PROJECTS: Court Issues Wind-Up Order
FIRST CHINA: Wind-Up Process Commenced

FORSTERA COMPANY: Appoints Joint Liquidators
GE-ICE LIMITED: Members Opt for Voluntary Wind-Up
KWG TAX: Members Final Meeting Slated for August 31
LANDCOM REALTY: Liquidator Ceases to Act for Company
NUCLEAR CONSTRUCTION: Faces Wind-Up Proceedings

O, W & W HOLDINGS: Law and Wong Cease to Act as Liquidators
OCEAN GRAND: Fubon Bank Seeks HKD35-Million Debt Payment
OCEAN GRAND: Officials Resign as Liquidators Take Control
OMRON (CHINA) GRP: Joint Liquidators Step Aside
SINOCHEM PLASTICS: Creditors' Proofs of Claim Due on August 28

* China's Audit Office Records CNY32-Billion Misused Funds


I N D I A

BHARAT PETROLEUM: Pre-tax Loss Balloons to INR677 Crore
BHARAT PETROLEUM: To Set Up Trading Arm in Singapore


J A P A N

PIONEER CORP: Turns Around with JPY5.66B Profit in 1st Quarter


K O R E A

AMKOR TECH: Awaits Verdict on Pending Claims to Motorola Dispute
AMKOR TECH: Has US$20.98-Million Current Deficit
LG TELECOM: Revocation Leads to KRW103.5B Bill
SK CORP: To Expand Gold Exploration Efforts
* More People Are Borrowing From Loan Sharks


M A L A Y S I A

ANTAH HOLDINGS: Unit Faces MYR19.4-Mln Compensation Payment Suit
AYER HITAM: Payments Default Total MYR41,339,119 as of June 2006
CHIN FOH: Fined MYR12,000 for Breach of Listing Requirements
COMSA FARMS: Delays Submission of Annual Audited Financials
LITYAN HOLDINGS: Buys More Time to Fulfill Scheme Conditions

SUREMAX GROUP: Southern Investment Wants Payment of MYR1,673,592
TECHVENTURE BERHAD: Continues to Work on Debt Revamp Plan


P H I L I P P I N E S

BANK OF THE PHILIPPINE ISLANDS: First Half Earnings Increase 7%
BANK OF THE PHILIPPINE ISLANDS: Now Philippines' Top Bank
BANKARD INC: Shareholders Approve PHP5-Billion Sale to GE Money
PHILIPPINE LONG DISTANCE: Invests PHP360 Million in Call Center
ZEUS HOLDINGS: Second Quarter Net Loss Increases by 13%


S I N G A P O R E

LEAP HONG: Pays Preferential Dividend to Creditors
LESCOSING PTE: Creditor's Proofs of Debt Due on August 4
LST CONSTRUCTION: Winds Up Business Operations
KARAOKE EQUIPMENT: Enters Wind-Up Proceedings
O.S.L. SINKO: Creditors Meeting Scheduled on August 11

THE AUDIOPLEX: Creditors Must Prove Debts by August 7
UNITY BUILDER: Creditor's Proofs of Debt Due on August 11


T H A I L A N D

SIAM COMMERCIAL BANK: Eyes Sale of THB10 Billion Worth of Assets
* BOT Notes Increase on NPLs in Second Quarter 2006

     - - - - - - - -

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

49 BEACH STREET: Members and Creditors to Receive Wind-Up Report
----------------------------------------------------------------
A joint final meeting of the members and creditors of 49 Beach
Street Pty Ltd will be held on August 14, 2006, at 10:00 a.m.

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

As reported by the Troubled Company Reporter - Asia Pacific, the
members held a general meeting on October 12, 2004, and passed a
special resolution to wind up the Company's operations.

The Liquidator can be reached at:

         A. R. Yeo
         Pitcher Partners
         Level 19, 15 William Street
         Melbourne, Victoria 3000
         Australia


ADDICTION TREATMENT: Members Pass Resolution to Wind Up Firm
------------------------------------------------------------
At an extraordinary general meeting on June 27, 2006, the
members of Addiction Treatment Australasia Pty Limited passed a
special resolution to wind up the Company's operations.

Subsequently, Ian Kellaway was appointed as liquidator.

The Liquidator can be reached at:

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


ALIOS NOMINEES: Members Resolve to Wind Up Operations
-----------------------------------------------------
The members of Alios Nominees Pty Ltd held a general meeting on
June 30, 2006, and resolved to voluntarily wind up the Company's
operations.

In this regard, Austin Robert Meerten Taylor was appointed as
liquidator.

The Liquidator can be reached at:

         Austin Robert Meerten Taylor
         Meertens, Chartered Accountants
         Level 10, 68 Grenfell Street
         Adelaide, South Australia 5000
         Australia
         Telephone:(08) 8418 8900
         Facsimile:(08) 8232 5077


BLUVALE PTY: Enters Voluntary Liquidation
-----------------------------------------
At a general meeting of the members of Bluvale Pty Limited on
July 1, 2006, it was agreed that a voluntary wind-up of the
Company's operations is appropriate and necessary.

Subsequently, Samuel Richwol was appointed as liquidator.

The Liquidator can be reached at:

         Samuel Richwol
         O'Keeffe Walton Richwol
         431 Burke Road
         Glen Iris 3146
         Australia
         Telephone:(03) 9822 9823


CAPITAL CITY: Liquidator Slaven to Present Wind Up Report
---------------------------------------------------------
The members and creditors of Capital City Couriers Pty
Limited will convene on August 18, 2006, at 9:00 a.m. to receive
Liquidator M.E. Slavens' accounts of the Company's' wind-up and
property disposal activities.

According to the Troubled Company Reporter - Asia Pacific, the
Company commenced a wind-up of its operations on November 4,
2005.

The Liquidator can be reached at:

         M. E. Slaven
         Rangott Slaven Hundy
         Unit 12, Level 3
         Engineering House
         11 National Circuit
         Barton, Australian Capital Territory 2600
         Australia
         Telephone:(02) 6285 1430
         Facsimile:(02) 6281 1966


CASE EQUIPMENT: To Declare Dividend for Priority Creditors
----------------------------------------------------------
Case Equipment CE Pty Ltd will declare a first and final
dividend for priority creditors on August 11, 2006.

Creditors are required to submit their proofs of claims by
August 10, 2006, to share in the dividend distribution.

The joint and several liquidators can be reached at:

         Michael Royal
         Ezio Senatore
         RoyalSBR
         Level 40, 140 William Street
         Melbourne, Victoria 3000
         Australia
         Telephone: 1300 780 059
         Facsimile: 1300 136 406
         Web site: http://www.royalsbr.com.au/


CLIPSAL EXTRUSIONS: Members to Convene on August 11
---------------------------------------------------
A final meeting of the members of Clipsal Extrusions Pty Limited
will be held on August 11, 2006, at 11:00 a.m.

During the meeting, members will receive Liquidator S. C.
Davies' accounts showing how the Company was wound up and how
its property was disposed of.

The Troubled Company Reporter - Asia Pacific reported on
March 13, 2006, that the Company wound up its operations on
February 6, 2006.

The Liquidator can be reached at:

         S. C. Davies
         c/o McGrathNicol+Partners
         Level 11,115 Grenfell Street
         Adelaide South Australia 5000
         Australia
         Telephone:(08) 8468 3700
         Web site: http://www.mcgrathncol.com.au/


COPY KING: Court Set to Hear CIR's Liquidation Bid on August 14
---------------------------------------------------------------
The Commissioner of Inland Revenue on May 31, 2006, filed before
the High Court of Palmerton a petition to liquidate Copy King
Ltd.

The Court will hear the petition on August 14, 2006, at 10:00
a.m.

The solicitor for the plaintiff can be reached at:

       Julia Dykema  
       Inland Revenue Department
       Technical and Legal Support Group
       South Island Service Centre
       Ground Floor Reception
       518 Colombo Street (P.O. Box 1782)
       Christchurch 8140, New Zealand
       Telephone: (03) 968 0809
       Facsimile: (03) 977 9853


EDILO PTY: Appoints Austin Robert Meerten Taylor as Liquidator
--------------------------------------------------------------
At a general meeting on June 30, 2006, the members of Edilo Pty
Ltd decided to liquidate the Company's business operations.

Subsequently, Austin Robert Meerten Taylor was appointed as
liquidator.

The Liquidator can be reached at:

         Austin Robert Meerten Taylor
         Meertens, Chartered Accountants
         Level 10, 68 Grenfell Street
         Adelaide, South Australia 5000
         Australia
         Telephone:(08) 8418 8900
         Facsimile:(08) 8232 5077


ERNEST PHEONIX: Members Opt to Shut Down Business
-------------------------------------------------
The members of Ernest Pheonix International Pty Ltd convened on
July 1, 2006, and decided to shut down the Company's operations.

In this regard, Samuel Richwol was appointed as liquidator.

The Liquidator can be reached at:

         Samuel Richwol
         O'Keeffe Walton Richwol
         431 Burke Road
         Glen Iris 3146
         Australia
         Telephone:(03) 9822 9823


EZI AUTOMATION: Forced into Voluntary Administration
----------------------------------------------------
Ezi Automation Limited, which specializes in counter-terrorism
barriers, has been accused of trading while insolvent at the
time it was promoting a multimillion-dollar share market float,
Rebecca Urban of The Age reports.

According to The Age, the Australian Tax Office issued Ezi
Automation a penalty notice for outstanding payments and the
Company was placed in voluntary administration on June 21, 2006.

Ferrier Hodgson was appointed as the Company's administrator.  
Ezi Automation owes creditors almost AU$7 million, The Age says.

Through a search of the Australian Securities & Investments
Commission database, The Age discovered that the Company's sole
remaining director, Ian Phillips, registered a new company named
Ezi Security on May 30, 2006.  Two days later, Mr. Phillips
purchased the intellectual property used by Ezi Automation in
its business for AU$10, the paper relates.

                     Road to Administration

The paper relates that in March 2006, the Company was offering
new investors an opportunity to buy shares in a AU$6-million
initial public offering.  After a poor response from
institutional investors, Ezi Automation withdrew its prospectus.

The Age recounts that Ezi Automation's listing prospectus was
released in December 2005, revealing AU$5.5 million in
liabilities and a deficiency of assets of AU$940,000 as of
June 30, 2005.  The prospectus contained no information on
financial performance beyond that date other than a claim that
expenses had increased by AU$160,000 a month.

The prospectus disclosed that Ezi Automation had defaulted on
the repayment of AU$500,000 of convertible notes to investors
and was also embroiled in disputes with former advisers over
unpaid fees, The Age relates.

Ferrier Hodgson has identified debts totaling AU$6.9 million
consisting of:

   -- AU$1.4 million owed to the Tax Office;

   -- AU$1.9 million owed to trade creditors;

   -- an estimated at AU$609,833 owed to employee claims;

   -- AU$417,000 of credit card debt; and

   -- AU$788,000 owed for the lease of cars.

                    Insolvent for Four Years

In his report to creditors in July 2006, Ferrier Hodgson's Brian
Silvia said that he believed the Company's collapse after the
issue of the prospectus must be investigated to ascertain
whether disclosures within the document complied with the
Corporations Act, The Age relates.

Mr. Silvia cited a deficiency of assets over liabilities for
four years, cash flow problems for at least six months, and
numerous claims, demands, and threats of legal action received
from creditors.  Thus, Ezi has been insolvent for a significant
period of time, Mr. Silvia concluded.

The Age notes that the administrator is trying to sell the
business as a going concern.  However, it has been delayed due
to confusion surrounding the ownership of the intellectual
property.

                      About Ezi Automation

Headquartered in Penrith, New South Wales, Ezi Automation
Limited -- http://www.ezi.com.au/-- designs, fabricates, sells,  
installs, and maintains a range of innovative, high-impact,
barrier systems, as well as more traditional security gates and
turnstiles.  Ian Phillips established the Company in 1993.


FINANCIAL INVESTMENTS: Decides to Close Business Operations
-----------------------------------------------------------
At an extraordinary general meeting on June 29, 2006, the
members of Financial Investments Services Group Pty Ltd decided
to close the Company's business operations.

Accordingly, Leonard A. Milner was appointed as liquidator.

The Liquidator can be reached at:

         Leonard A. Milner
         Venn Milner & Co.
         Suite 1, 43 Railway Road
         Blackburn, Victoria 3130
         Australia


FORTESCUE METALS: Founder Faces AU$16-Million Fine
--------------------------------------------------
Fortescue Metals Group Limited and its founder, Andrew Forrest,
are facing an almost AU$16-million fine after the Australian
Securities and Investments Commission asked for a fourfold
increase in penalties against them over statements that the
Company made regarding contracts with its Chinese partners, John
Phaceas of the West Australian reports.

The report relates that the ASIC seeks penalties of:

   -- AU$8 million from the Company, and
   -- AU$7.6 million from Mr. Forrest.

ASIC claims that Fortescue and Mr. Forrest gave misleading
statements about the nature of several key agreements that the
Company claimed to have entered with Chinese companies between
August 2004 and March 2005.

The agreements in question relate to those that Fortescue signed
with:

   * China Railway Engineering Corporation,
   * China Harbour Engineering Corporation, and
   * China Metallurgical Construction Corporation.

The ASIC is also seeking to make Mr. Forrest -- whose personal
stake in Fortescue is worth just over AU$1 billion -- personally
liable for any penalties imposed on the Company and disqualify
him from managing companies, the West says.
  
The fine represents a huge increase over the AU$3.6 million
initially sought by the ASIC when it filed its initial claim
against Mr. Forrest and the Company in March 2006, the West
notes.

As reported in the Troubled Company Reporter - Asia Pacific on
July 20, 2006, the ASIC intends to commence legal proceedings
against the Company and Mr. Forrest in relation to the wrongful
market disclosure regarding the Chinese agreements.

According to The West, Fortescue subsequently confirmed that the
agreements were "framework agreements" that were expected to
precede detailed contracts to be signed later.

The TCR-AP report said that the ASIC is seeking civil penalties
of up to AU$3,000,000 from the Company and AU$600,000 from Mr.
Forrest, as well as an order that he compensate Fortescue for
any pecuniary penalty it may be required to pay.  The report
also noted that Fortescue stated that both the Company and Mr.
Forrest will vigorously contest the charges.  

An ASIC spokeswoman confirms that the agency is seeking the
higher penalties "as per an amended statement of claim" filed in
the Federal Court in Perth last month, The West relates.
  
The West says that it is understood the increased penalties
relate to the ASIC's belief that Fortescue and Mr. Forrest made
additional public references to the agreements than regulators
initially believed, resulting in additional "possible
contraventions" of company disclosure laws.

                         About Fortescue

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

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

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


GRAITH (NO 2): Enters Wind-Up Proceedings
-----------------------------------------
On June 30, 2006, the members of Graith (No 2) Pty Ltd held a
general meeting and resolved to voluntarily wind up the
Company's business operations.

Keiran William Hutchison and John Raymond Gibbons were
consequently appointed as liquidators.

The Liquidators can be reached at:

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


JAYAUST PTY: Bank Appoints Receiver and Manager
-----------------------------------------------
On June 15, 2006, the Commonwealth Bank of Australia appointed
Michael Gerard McCann as receiver and manager for all the assets
and property of Jayaust Pty Ltd.

The Receiver and Manager can be reached at:

         Michael Gerard McCann
         Chartered Accountant
         c/o Grant Thornton
         Level 4, 102 Adelaide Street
         Brisbane
         Australia


JOSEPHINE C. WISEMAN: Names John Masselos as Liquidator
-------------------------------------------------------
The members of Josephine C. Wiseman Pty Ltd convened on June 30,
2006, and resolved to voluntarily wind up the Company's
operations.

In this regard, John James Masselos was appointed as liquidator.

The Liquidator can be reached at:

         John James Masselos
         Masselos Grahame Masselos Pty Ltd
         Level 17, 44 Market Street
         Sydney, New South Wales 2000
         Australia


JTAP PTY: Enters Wind-Up Proceedings
------------------------------------
The members of JTAP Pty Limited convened on June 28, 2006, and
agreed that the Company should wind up its operations
voluntarily.

Subsequently, Roger David Midgley Smith was appointed as
liquidator.

The Liquidator can be reached at:

         Roger David Midgley Smith
         126 George Street
         Morwell, Victoria 3840
         Australia


KINGS CRAFTSMAN: Wind-Up Process Commenced
------------------------------------------
Members of Kings Craftsman Cabinet-Makers Collective Pty Limited
held a general meeting on June 30, 2006, and decided to wind up
the Company's business operations.

Subsequently, 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


LYONS MOTORS: Members Resolve to Wind Up Firm
---------------------------------------------
At a general meeting on July 1, 2006, the members of Lyons
Motors Pty Ltd decided to wind up the Company's business
operations.

Samuel Richwol was consequently appointed as liquidator.

The Liquidator can be reached at:

         Samuel Richwol
         O'Keeffe Walton Richwol
         431 Burke Road
         Glen Iris 3146
         Australia
         Telephone:(03)9822 9823


MARIACKA IMPORTS: Creditor's Proofs of Claims Due on August 10
--------------------------------------------------------------
Mariacka Imports Pty Ltd will declare a first and final dividend
for its priority creditors on August 25, 2006.

Priority employee creditors are required to submit their proofs
of claim by August 10, 2006, for them to share in the dividend
distribution.

As reported by the Troubled Company Reporter - Asia Pacific, the
members of the Company held a general meeting on October 24,
2005, and resolved to wind up the Company's business operations.

The liquidator can be reached at:

         A. D'ALOIA
         D'Aloia Handberg
         Chartered Accountants
         Level 10, 200 Queen Street
         Melbourne Victoria 3000
         Australia


METAL STORM: Files Prospectus for AU$27.5M Underwritten Issue
-------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
July 24, 2006, Metal Storm Limited disclosed that it had entered
into a facilitation agreement with Harmony Investment Fund
Limited as a preliminary step to the execution of underwriting
agreements and the lodgment of the prospectus for its expected
capital raising plan.

The TCR-AP also previously reported that the second stage of
Metal Storm's capital raising plan is a Renounceable Rights
Issue of AU$27.5 million in unsecured Convertible Notes with
attaching options.  The rights issue is to be fully underwritten
by Patersons Securities Limited and fully sub-underwritten by
Harmony.

In an update, on July 28, 2006, Metal Storm filed with the
Australian Securities and Investments Commission the prospectus
for the underwriting of its AU$27.5 million capital raising
plan.

The funds raised will be primarily used to fund the advancement
of its commercialization strategy and to finance specific
product development programs, the Company explained.

Approximately AU203.7 million Notes with a face value of
AU$0.135 are being offered to eligible shareholders on the basis
of 1 Note for each 2.674 ordinary shares on issue to raise
approximately AU$27.5 million.

The issue is fully underwritten by Patersons Securities and sub-
underwritten to the extent of AU$26.125 million by Harmony.

Convertible Note holders will receive a fixed rate of return of
10% per annum paid three monthly in arrears, for a three-year
period.  The full terms of the Notes are set out in the
prospectus, a copy of which will be available for review on the
Company's Web site at http://www.metalstorm.com  

Investors will also receive one Option for every two Notes
allotted for no additional consideration.  The Options may be
exercised at any time before 5 p.m. Australian Eastern Southern
Time on the date, which is three years from the date of issue of
the Options, by paying the exercise price of AU$0.15 per Option.

Metal Storm advised that the Convertible Notes and the Options
will be quoted on the Australian Stock Exchange.  Ordinary
shares issued on conversion of the Notes or exercise of the
Options will rank equally in all respects with all other
ordinary shares on issue.

The net funds raised, together with existing cash reserves and
confirmed revenues from current operations, are expected to be
sufficient to cover the estimated cost of existing and planned
operations and interest payable on the Convertible Notes through
to the August 2009, without assuming additional income from
other sources or from the exercise of options, Metal Storm
notes.

                          *     *     *

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

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

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

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


MILLERS TYRE: Placed Under Member's Voluntary Liquidation
---------------------------------------------------------
At a general meeting on June 30, 2006, the members of Millers
Tyre Service (W.A.) Pty Ltd resolved to voluntarily wind up the
Company's business operations.

Liquidator John E. Ellis required the Company's creditors to
submit their proofs of claim by August 8, 2006, to be share in
any distribution the Company will make.

The Liquidator can be reached at:

         John E. Ellis
         Level 8, 60 Pitt Street
         Sydney New South Wales 2000
         Australia
         Telephone:(02) 9232 7466
         Facsimile:(02) 9251 3973


MOONLIGHT STABLES: Liquidation Petition Hearing Set on August 7
---------------------------------------------------------------
The High Court at Invercargill will hear a liquidation petition
against Moonlight Stables Ltd on August 7, 2006, at 10:00 a.m.

The Accident Compensation Commission filed the said petition
before the Court on June 20, 2006.

Solicitor for the plaintiff can be reached at:

        Dianne S. Lester
        Maude & Miller
        2nd Floor, McDonald's Building
        Cobham Court, Porirua City
        New Zealand
        P.O. Box 50-555 or D.X. S.P. 32-505


MOULA PTY: Members and Creditors Resolve to Wind Up Firm
--------------------------------------------------------
The members and creditors of Moula Pty Ltd met at a general
meeting on June 29, 2006, and rs decided to wind up the
Company's business operations.

In this regard, R. A. Sutcliffe was appointed as liquidator.

The Liquidator can be reached at:

         R. A. Sutcliffe
         Ground Floor
         192-198 High Street
         Northcote Victoria 3070
         Australia
         Telephone:(03) 9482 6277


NB & SA MCPHERSON: Appoints Official Liquidator
-----------------------------------------------
At a general meeting on June 29, 2006, the members of NB & SA
McPherson Pty Ltd resolved to wind up the Company's business
operations.

Subsequently, Barry John Honey was appointed as liquidator.

The Liquidator can be reached at:

         Barry John Honey
         Honey & Honey
         Suite 8, 38 Colin Street
         West Perth 6005
         Australia


NARINGA PARK: Members and Creditors Decide to Close Operations
--------------------------------------------------------------
After an extraordinary general meeting on June 30, 2006, the
members and creditors of Naringa Park Pty Limited resolved to
close the Company's business operations and distribute the
proceeds of its assets disposal.

In this regard, Richard Auricht was appointed as liquidator.

The Liquidator can be reached at:

         Richard Auricht
         Chartered Accountant
         242 Grenfell Street
         Adelaide South Australia 5000
         Australia
         Telephone:(08) 8223 1033


NAWAB AGRICULTURE: Court to Hear Liquidation Bid on August 7
------------------------------------------------------------
The High Court of Rotorua will hear a petition to liquidate
Nawab Agriculture & Horticulture Ltd on August 7, 2006, at 10:45
a.m.

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

Solicitor for the plaintiff can be reached at:

        Dianne S. Lester
        Maude & Miller
        2nd Floor, McDonald's Building
        Cobham Court, Porirua City
        New Zealand
        P.O. Box 50-555 or D.X. S.P. 32-505


OXFORD SQUARE: Enters Wind-Up Proceedings
-----------------------------------------
At an extraordinary general meeting on June 27, 2006, the
members of Oxford Square Hotel Trading Pty Limited resolved to
liquidate the Company's business operations.

In this regard, Ian Kellaway was appointed as liquidator.

The Liquidator can be reached at:

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


PACIFIC PRECAST: Faces Liquidation Proceedings
----------------------------------------------
An application to liquidate Pacific Precast Ltd will be heard
before the High Court of Rotorua on August 7, 2006, at 10:45
a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on May 31, 2006.

The solicitor for the petitioner can be reached at:

        Eleanor Duncan
        Telephone: (07) 959 0471


PHILLIPS PROPERTIES: Members to Receive Liquidator's Report
-----------------------------------------------------------
Members of Phillips Properties Pty Ltd will hold a final meeting
on August 12, 2006, at 11:30 a.m., to receive Liquidator Barry
Alfred Bentley's accounts of the Company's wind up and property
disposal exercises.

The Troubled Company Reporter - Asia Pacific reported that the
members of the Company met on February 14, 2006, and resolved to
wind up the Company's operations.

The Liquidator can be reached at:

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


REDMOND DALE: Liquidator Mclellan to Present Wind-Up Report
-----------------------------------------------------------
The members and creditors of Redmond Dale Pty Ltd will hold a
final meeting on August 22, 2006, at 10:00 a.m.

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

The Troubled Company Reporter - Asia Pacific reported that The
Company commenced a wind-up of its operations on March 3, 2005.

The Liquidator can be reached at:

         Andrew Mclellan
         PPB
         Chartered Accountants
         Level 10, 90 Collins Street
         Melbourne Victoria 3000
         Australia


SAEN OPTIONS: Enters Member's Voluntary Liquidation
---------------------------------------------------
At a general meeting on June 19, 2006, the members of Saen
Options Holding Australia Pty resolved to wind up the Company's
business operations.

Subsequently, Adrian Raftery was appointed as liquidator.

The Liquidator can be reached at:

         Adrian Raftery
         ARW
         Chartered Accountants
         1202, 92 Pitt Street
         Sydney, New South Wales 2000
         Australia


SWITZER ENTERPRISES: Members Opt for Voluntary Wind-Up
------------------------------------------------------
Members of Switzer Enterprises Pty Ltd met on June 30, 2006, and
decided to voluntarily wind-up the Company's business
operations.

In this regard, Salvatore Algeri and Simon A. Wallace-Smith were
appointed as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Salvatore Algeri
         Simon A. Wallace-Smith
         Deloitte Touche Tohmatsu
         180 Lonsdale Street
         Melbourne, Victoria 3000
         Australia


TRIVENIA PTY LTD: Joint Receivers and Managers Cease Step Aside
---------------------------------------------------------------
On June 19, 2006, Martin Jones and Phil Rundell ceased to act as
joint receiver and manager for all the assets and undertakings
Trivenia Pty Ltd.


WOODREIN PTY: Appoints Richard Herbert Judson as Liquidator
-----------------------------------------------------------
The members of Woodrein Pty Ltd met on June 30, 2006, and
resolved to wind up the Company's business operations.

Subsequently, Richard Judson was appointed as liquidator.

The Liquidator can be reached at:

         Richard Judson
         Members Voluntarys Pty. Ltd.
         PO Box 819
         Moorabbin Victoria 3189
         Australia


Z PAN: Supreme Court Issues Wind-Up Order
-----------------------------------------
The Supreme Court of New South Wales issued a wind-up order
against Z Pan Interior Pty Ltd.

The Court also ordered the appointment of Antony De Vries as
liquidator.

The Liquidator can be reached at:

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


* ABN AMRO Craigs Buys Dunedin NZ's Greenslades
-----------------------------------------------
Tauranga-based sharebrokers ABN AMRO Craigs are buying Dunedin
brokers Greenslades to create the largest private client
advisory firm participating on the NZX stock exchange, the New
Zealand Press Association relates.

AAC advises that a heads of agreement has been signed for the
acquisition.  The expanded firm would have a retail network of
14 offices and four affiliates throughout New Zealand, serviced
by more than 100 investment advisers, with fee-earning funds
under management and administration of nearly AU$4 billion,
Stuff.co.nz relates.

According to Stuff.co, AAC is 50% owned by the Australasian arm
of Dutch bank ABN AMRO NV, with the other 50% owned by about 100
New Zealand staff.

All Greenslades shareholders would also become AAC shareholders
as part of the transaction, the NZPA cites AAC, as saying.

According to Greenslades managing director Roy Borgman, the
investment advisory environment was changing and "for the sake
of our clients it was vital to be able to offer an even wider
range of services and investment opportunities" by becoming part
of AAC, the NZPA relates.


* Moody's Sees Challenges and Consolidation of Credit Unions
------------------------------------------------------------
In its new report, Moody's Investors Service sees greater
challenges ahead for Australian credit unions, while their
credit outlook is stable, given their strong asset quality,
improving efficiency and comfortable level of core capital.

"The sector faces increasing challenges as loan growth slows and
competition intensifies, particularly in core products such as
residential mortgages and retail deposits," says Marina Ip, a
Moody's Associate Analyst and author of the report.

"Sector profits have also been distorted somewhat by M&A
activity as the profits arising from the transfer of credit
union businesses create lumpy bottom-line figures for the
acquiring entities," Ms. Ip says.  Moreover, consolidation
pressures are rising, while margin compression is accelerating.

"That said, from what we can determine from the financial
statements of the 10 largest credit unions, profit growth in the
sector (as measured by pre-provision profits) remains positive,
although the rate of growth is slowing," she adds.

Credit unions are defined in Australia as community or industry
focused non-bank financial institutions, which provide a full
range of banking and financial services to members.  As mutual
societies, they are owned and operated by their members.

Although the current regulatory environment has not been tested
by the collapse of an Authorised Deposit-taking Institution,
Moody's views the stance of Australia's financial regulators as
both cautious and generally supportive, and this factor
underpins the ratings of the country's ADIs.

On the issue of consolidation, many credit unions are quite
small and the sector is generally less efficient than other ADIs
in Australia, the report says, adding that M&A activity does
seem to help enhance their economies of scale.

The most likely form of consolidation is between credit unions
that share a similar regional market, the report says.  
Australia's credit union sector currently has 153 participants
with around 10 large players, including one dominant union, due
to recent merger activity.  However, it has been suggested that
the figure could fall to as low as 70 by 2010.

Much of the consolidation is a defense against competition, the
report says.  Although credit unions enjoy an important role in
regional and rural Australia, their small but often strong
franchises in local communities and industry sectors are also
coming under increasing attack, a reflection of rising product
and branch competition in the financial sector.

In the area of asset quality, credit unions have been moving
away from the riskier aspects of personal finance towards lower
risk housing loans with a small portion now funded through
securitization. It is a trend, which is likely to continue.

For example, in June 1985, residential lending was 18.1% of
total lending and personal lending 81.1%.  However, by June
2005, those same categories were 74.6% and 21.3% respectively.

Overall, credit unions command a very small percentage of the
total on-balance sheet assets of financial institutions in
Australia, or 2.2% of ADIs and 1.1% of all financial
institutions.


* NZ's Slower Economic Growth Dims Rates Outlook, Bloomberg Says
----------------------------------------------------------------
The New Zealand dollar may fall amid speculation that investors
will turn to currencies of economies with faster growth and more
prospect of increases in interest rates, Tracy Withers of the
Bloomberg News reports.

The Troubled Company Reporter - Asia Pacific reported on
July 28, 2006, that Reserve Bank Governor Alan Bollard left the
official cash rate at 7.25% and warned that it would be "some
time" before an easing could be considered.  The report also
noted that the Reserve Bank is buying time to see whether the
slowing economy will cool inflation pressure.

"The New Zealand dollar has been on a slippery slope" since Mr.
Bollard's comments, Bloomberg cites Danica Hampton, currency
strategist at Bank of New Zealand Ltd. in Wellington, as saying.

The currency slumped 1% last week as investors who had expected
Mr. Bollard could hint at a rate rise, reversed their view,
Bloomberg recounts.

Bloomberg says that New Zealand's benchmark rate is:

   -- 1.5 points higher than the Reserve Bank of Australia's
      overnight cash rate target; and

   -- 2 percentage points more than the U.S. Federal Reserve's
      interest-rate target for overnight loans between banks.

Bloomberg also notes that interest-rate futures show traders
have reduced the odds of a quarter-percentage point rate boost
in August to 26%, a six-week low after a July 28 government
report showed U.S. gross domestic product expanded at a 2.5%
annual rate last quarter, from 5.6% in the first quarter.

Still, traders see an 87% chance the rates will be raised in
September, Bloomberg says.

According to Bloomberg, a July 28 report showing a 14% decline
in home building approvals in June from May suggested that
economic growth is slackening in response to high interest
rates.  Bloomberg further says that the economy may expand 1.5%
this year, the slowest pace since 1999, the Reserve Bank
forecast in June.

Australia's economy grew 3.1% in the year to March, Bloomberg
notes.


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

AGRICULTURAL BANK: Faces Reform to Boost Rural Financing
--------------------------------------------------------
The Agricultural Bank of China will be among a group of banks
that will be overhauled to become major rural loan providers, in
line with the Government's effort to accelerate the pace of
rural financial reform.  The other institutions are the
Agricultural Development Bank of China and rural credit
cooperatives.

According to Xinhuanet, the Agricultural Bank will be
transformed into a state-owned commercial bank in order to
better serve the agricultural sector and provide more financial
services to farmers.

China Banking Regulatory Commission chairman Tang Shuangning
urged Agricultural Bank and other lending institutions to step
up their efforts to build a solid rural financial service
system.

It is estimated that some CNY15 trillion to CNY20 trillion will
be needed for new countryside construction by 2020, Xinhuanet
relates.  

Mr. Tang told Xinhuanet that financial reform in rural areas
lags behind urban areas in pace, level of investment, network
density, business development, management and quality of
personnel.

                          *     *     *

The state-owned Agricultural Bank of China
-- http://www.abocn.com/-is the mainland's fourth largest bank.   
It has lagged behind other major Chinese commercial banks, which
have received government injections of new capital and been
allowed to link up with foreign partners in preparation for
raising money on foreign stock exchanges.

Despite posting operating profits of over CNY42.4 billion in
2005, the Bank is still carrying billions of dollars in unpaid
loans to state companies, which it says accounted for 26% of its
lending at the end of last year.

The Troubled Company Reporter- Asia Pacific on June 27, 2006,
the National Audit Office found accounting irregularities
involving CNY51.6 billion which CNY14.27 billion of the amount
come from deposit business, CNY27.62 billion on loan grants, and
CNY9.72 billion in fraudulent bill issuance.


ASIA TIME: Contributories and Creditors to Meet on August 1
-----------------------------------------------------------
Contributories and creditors of Asia Time Technologies Ltd will
convene for their first meetings on August 1, 2006, 11:00 a.m.
and 11:30 a.m. respectively.

The meetings will be held at 5th Floor, Allied Kajima Building,
138 Gloucester Road, Wanchai, Hong Kong.


BETHEL BIBLE: Final Members' Meeting Slated for August 28
---------------------------------------------------------
A final meeting of the members of Bethel Bible Seminary (Hong
Kong) Ltd will convene for their final meeting at 45-47 Grampian
Road, Kowloon, Hong Kong on August 28, 2006, at 10:00 in the
morning.

At the meeting, members will receive the liquidator's report on
the Company's wind-up and property disposal exercises.


BRILLIANT TECHNOLGY: Court to Hear Wind-Up Bid on August 23
-----------------------------------------------------------
A wind-up petition against Brilliant Technology Development Ltd
will be heard before the High Court of Hong Kong on August 23,
2006, at 9:30 a.m.

Steve Julianto Santoso filed the petition with the Court on
June 26, 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


CITIC KA WAH BANK: Fitch Affirms Individual Rating at C
-------------------------------------------------------
On July 31, 2006, Fitch Ratings affirmed CITIC Ka Wah Bank's
Long-term foreign currency Issuer Default Rating at BBB+, Short-
term foreign currency rating at F2, Individual rating at C and
Support rating at 3.  The Outlook on the ratings is Stable.  The
affirmation follows Fitch's annual review of Citic Ka Wah's
fiscal 2005 financials.

The ratings reflect Citic Ka Wah's adequate credit profile with
significantly improved asset quality and sound capitalization.
These positive factors mitigate its above average China-related
exposures versus its Hong Kong peers.  Its rating also reflects
its lower but still satisfactory underlying profitability.  

In 2005, the bank registered a better return on assets and
return of common equity of 1.29% and 16.23% respectively, thanks
to some mild provision write-backs and gains on the disposal of
fixed assets.  Pre-provision profit, however, actually declined
due to lower margins emanating from an exceptional narrowing of
Prime-Hibor spreads, which offset continued strong growth in
non-interest income.  Looking ahead, core earnings should
improve in 2006 with a more normalized Prime-Hibor spread and
the bank's renewed focus on wholesale banking customers
including the delivery of treasury solutions to this market.

This should be supported in the retail sphere through the bank's
ongoing focus on the provision of wealth management products to
high net worth clients.

Within a benign economic environment and continuous risk
management enhancement, Citic Kah Wah saw its impaired loan
ratio further decline to 1.9% at end-2005 with the bank's net
non-performing loans to equity ratio at a comfortably low level
of just 6%.  While Citic Ka Wah's good asset quality and
satisfactory returns should continue, its ratings are still
somewhat constrained by its notable China exposure at 15% of
total loans, about half of which were to real estate
development/investment borrowers. Nevertheless, Fitch takes
comfort from the bank's tightened risk management and its
adequate capitalisation; its CAR and equity to asset ratio stood
at 15.7% and 8.5% respectively at end-2005.

In April 2006, CITIC International Financial Holding Company
Limited - the listed holding company that wholly owns Citic Ka
Wah - announced that it would acquire 19.9% of China CITIC Bank.  
This will be financed through the issuance of new shares to the
CITIC Group (which in turn majority owns both CIFH and CNBC).  
As such, the move amounts to a partial shift in the ownership of
CNCB to CIFH from the CITIC Group.  The purpose of the move is
to enable CIFH to take a greater role in deepening the co-
operation between CNCB and CKWB such that synergistic benefits
will accrue from them leveraging off each others' core
competencies and geographical advantages.  Upon completion of
the acquisition, CKWB will rename itself CITIC Bank
International to better reflect its position within the CITIC
Group.


CHOI'S FAR EAST: Wind-Up Petition Hearing Fixed on August 16
------------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Choi's Far East Company Limited on August 16, 2006, at 9:30 a.m.

The wind-up petition was filed by Ng Pui Sze with the Court on
June 14, 2006.

Solicitors 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


ECO INFORMATION: Faces Wind-Up Proceedings
------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Eco Information Systems Ltd on August 30, 2006, at 9:30 a.m.

Cheung Chun Ming, Davy presented the petition before the Court
on July 5, 2006.

Solicitors for the petitioner can be reached at:

       Fung, Wong, Ng & Lam
       Room 8, 4th Floor, New Henry House
       10 Ice House Street, Central
       Hong Kong


ELAYNE DEVELOPMENT: Court Orders Wind-Up
----------------------------------------
The High Court of Hong Kong on July 12, 2006, ordered the
wind-up of Elayne Development Ltd's operations.

The Troubled Company Reporter - Asia Pacific reported that on
May 11, 2006, the Bank of China (Hong Kong) filed before the
Court a wind-up petition against the Company.


FINE PROJECTS: Court Issues Wind-Up Order
-----------------------------------------
The High Court of Hong Kong on July 12, 2006, issued a wind-up
order against Fine Projects Ltd's operations.

The wind-up petition was filed before the Court on May 12, 2006.


FIRST CHINA: Wind-Up Process Commenced
--------------------------------------
First China Trading Ltd commenced a wind-up of its operations on
July 10, 2006, pursuant to an order by the High Court of Hong
Kong.

According to The Troubled Company Reporter - Asia Pacific, the
Bank of China presented the wind-up petition with the Court on
May 9, 2006.


FORSTERA COMPANY: Appoints Joint Liquidators
--------------------------------------------
Shareholders of Forstera Company Limited on July 20, 2006,
appointed Lai Kar Yan, Derek and Darach E. Haughey as the
Company's official liquidators.

The Liquidators require the Company's creditors to submit their
proofs of claim by August 28, 2006.  Failure to comply with the
requirement will exclude a creditor from sharing in any
distribution the Company will make.

The Joint Liquidators can be reached at:

       Lai Kar Yan, Derek
       35/F., One Pacific Place
       88 Queensway, Hong Kong


GE-ICE LIMITED: Members Opt for Voluntary Wind-Up
-------------------------------------------------
The members of Ge-Ice Ltd on July 17, 2006, resolved to
voluntarily wind up the Company's operations and appoint
Liquidator Fung Tat Man to oversee the wind-up proceedings.

The Liquidator can be reached at:

       Fung Tat Man
       3605, 36/F., West Tower
       Shun Tak Centre
       168-200 Connaught Road Central
       Hong Kong


KWG TAX: Members Final Meeting Slated for August 31
---------------------------------------------------
Members of KWG Tax Services Ltd will convene for their final
meeting at 4404 China Resources Building, 26 Harbour Road,
Wanchai, Hong Kong on August 31, 2006.

At the meeting, Liquidator Heng Poi Cher will report on the
Company's wind-up and property disposal exercises.


LANDCOM REALTY: Liquidator Ceases to Act for Company
----------------------------------------------------
Tse Chun Yip ceased to act as liquidator of Landcom Realty Ltd
on July 19, 2006.

The Troubled Company Reporter - Asia Pacific recounts that on
June 28, 2006, Mr. Tse had presented his report on Company's
wind-up proceedings and the manner its properties disposed of.

The former liquidator can be reached at:

       Tse Chun Yip
       25/F., Man Yee Building
       68 Des Vouex Road, Central
       Hong Kong


NUCLEAR CONSTRUCTION: Faces Wind-Up Proceedings
-----------------------------------------------
A petition to wind up the business operations of Nuclear
Construction and Engineering Co Ltd will be heard before the
High Court of Hong Kong on September 13, 2006, at 9:30 a.m.

Guangzhou Aluminum Fluro-Carbon Coated Ltd filed the petition
with the Court on July 7, 2006.

Solicitors for the petitioner can be reached at:

        T.C. Lau & Co.
        Rooms 501-2
        China Insurances Group Bldg
        No. 141 Des Vouex Road Central
        Hong Kong


O, W & W HOLDINGS: Law and Wong Cease to Act as Liquidators
-----------------------------------------------------------
Law Yui Lun and Wong Man Chung, Francis ceased to act as joint
and several liquidators of O, W & W Holdings Ltd on July 19,
2006.

The Troubled Company Reporter - Asia Pacific recounts that the
final shareholders meeting of the Company was held on July 19,
2006, were the former joint liquidators presented a report on
the Company's wind-up and the manner its properties been
disposed of.

The former liquidators can be reached at:

       Law Yui Lun
       19th Floor, No.3 Lockhart Road
       Wanchai, Hong Kong


OCEAN GRAND: Fubon Bank Seeks HKD35-Million Debt Payment
--------------------------------------------------------
Fubon Bank is seeking repayment of HKD35-million dues from Ocean
Grand Holdings chairman Michael Yip Kim-po and his sister Yip
Wan-fung, The Standard reports.

According to The Standard, Fubon is going after Nanfang
Galvanized Aluminum Sheet, of which Ms. Yip Wan-fung owns 90% .
Mr. Yip Kim-po and his sister had guaranteed the HKD35-million
loan to Nanfang.

In a statement, Fubon said that in February this year, the Bank
agreed to lend US$500 million to the privately owned Nanfang
Galvanized Aluminium Sheet.  Fubon adds that Nanfang is already
due for repayment of HKD35.6 million on July 17, the day when
trading in Ocean Grand shares was halted due to accounting
irregularities.

So far, claims filed in the High Court by Ocean Grand creditors
including Taiwan-based Bank SinoPac, Hang Seng Bank, and Nanyang
Commercial Bank add up to HKD23 million, The Standard relates.

However, Deloitte Touche Forensic Services, which was appointed
to investigate the accounts of the Company and its subsidiaries,
announced that Ocean Grand had immediate debts exceeding HKD261
million.

Meanwhile, The Troubled Company Reporter - Asia Pacific found
out that CNY842 million were found missing from the bank
accounts of Ocean Grand's subsidiaries.  In addition, Ocean
Grand and its wholly owned subsidiary have already sought legal
protection from the Company's creditors at the High Court of
Hong Kong.  The Court then ordered for the appointment of
Deloitte as provisional liquidators of the Company.

                          *     *     *

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

The Troubled Company Reporter - Asia Pacific reported on July
27, 2006, that the investigators conducting a prove on the
Group's accounts discovered a total of CNY842 million missing
from the bank accounts of Ocean Grand's subsidiaries and that
the group was unable to pay immediate debts exceeding HKD261
million.

                          *     *     *

Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Ocean Grand Holdings Ltd to B from
BB-.  It also lowered its issue rating on US$160 million senior
unsecured notes due 2010 to B from BB-.  S&P said that the
downgrade reflects their heightened concerns on Ocean Grand's
corporate governance and internal control systems.  

Recently, S&P had again lowered its long-term corporate credit
rating on Ocean Grand Holdings Ltd. to 'D' from 'B'.  In
addition, it lowered its issue rating on US$160-million senior
unsecured notes due 2010 to 'D' from 'B'.


OCEAN GRAND: Officials Resign as Liquidators Take Control
---------------------------------------------------------
All the independent directors and company secretaries of Ocean
Grand Holdings and its subsidiary Ocean Grand Chemicals Holdings
have resigned as provisional liquidators assumed control of the
two firms, the South China Morning Post reports.

According to the Post, both firms were put into provisional
liquidation last week after an internal investigation of the
Company' and subsidiaries' accounts revealed more than CNY800
million had disappeared from their bank accounts.

Ocean Grand confirmed the report, saying its independent non-
executive directors Choy Tak-ho and Chau Po-fan stepped down on
July 26, 2006, following the departure of two other independent
directors, William Lo Wing-yan and Vincent Lee Kwan-ho.

All non-executive directors of Ocean Grand Chemical resigned on
the same day.

                          *     *     *

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

The Troubled Company Reporter - Asia Pacific reported on July
27, 2006, that the investigators conducting a prove on the
Group's accounts discovered a total of CNY842 million missing
from the bank accounts of Ocean Grand's subsidiaries and that
the group was unable to pay immediate debts exceeding HKD261
million.

                          *     *     *

Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Ocean Grand Holdings Ltd to B from
BB-.  It also lowered its issue rating on US$160 million senior
unsecured notes due 2010 to B from BB-.  S&P said that the
downgrade reflects their heightened concerns on Ocean Grand's
corporate governance and internal control systems.  

Recently, S&P had again lowered its long-term corporate credit
rating on Ocean Grand Holdings Ltd. to 'D' from 'B'.  In
addition, it lowered its issue rating on US$160-million senior
unsecured notes due 2010 to 'D' from 'B'.


OMRON (CHINA) GRP: Joint Liquidators Step Aside
-----------------------------------------------
Lai Kar Yan, Derek and Darach E. Haughey ceased to act as joint
and several liquidators of Omron (China) Group Co Ltd on
July 19, 2006.

The former joint liquidators can be reached at:

       Lai Kar Yan, Derek
       35/F., One Pacific Place
       88 Queensway, Hong Kong


SINOCHEM PLASTICS: Creditors' Proofs of Claim Due on August 28
--------------------------------------------------------------
Creditors of Sinochem Plastics (Hong Kong) Ltd are required to
submit their proofs of claims by August 28, 2006, to Joint
Liquidators Lai Kar Yan, Derek and Darach E. Haughey.

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

The Joint Liquidators can be reached at:

       Lai Kar Yan, Derek
       35/F., One Pacific Place
       88 Queensway, Hong Kong


* China's Audit Office Records CNY32-Billion Misused Funds
----------------------------------------------------------
The National Audit Office revealed that it has uncovered around
CNY32-billion worth of funds that were misused funds following
an audit of 184 institutions in the first half of this year, The
Xinhua News reports.

According to NAO, CNY22.3 billion of the total amount was used
in violation of financial regulations and the remaining CNY9.9
billion went to waste.

In addition, NAO told the China Daily that they had sent 98
cases to the judicial and discipline sectors, with 252 people
involved in embezzlement and other inappropriate uses of public
money.

China Daily recounts that on a recent audit of 784 key
agriculture-related projects, NAO discovered that CNY19.2
billion of government funds designated for agriculture projects
was embezzled and CNY890 million wasted in 2004 and 2005.

Moreover, the office also found 19 departments who
misappropriated public funds of CNY174 million using the money
to construct office buildings and buying cars.  In addition,
seventy key tax-paying enterprises evaded taxes of CNY300
million, and 23 enterprises did not pay taxes on time.

Four universities, including North China University of
Technology, Beijing Institute of Petrochemical Technology,
Beijing International Studies University and Beijing Film
Academy, was also found illegally charging fees of CNY1.89
million to students in the 2004 fiscal year, China Daily
relates.

On June 1, 2006, China amended its Audit Law enlarging the scope
of audits and increasing the auditors' law enforcement
abilities, in the past China Daily recalls, only state-owned
enterprises fell in the scope of auditing so as to guarantee
that state assets would not be abused.


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

BHARAT PETROLEUM: Pre-tax Loss Balloons to INR677 Crore
-------------------------------------------------------
State-owned oil marketing firm Bharat Petroleum Corporation
Limited suffered a INR677-crore pre-tax loss in the quarter
ended June 30, 2006, due to selling fuel products at a cheap
price amid skyrocketing crude oil prices, the Company informed
the Bombay Stock Exchange.  The recent pre-tax loss figure is
higher compared to a pre-tax loss of INR431.30 crore in the same
quarter last fiscal year.

However, the Company's total income increased by 34.93% to
INR21,717.90 crore for the quarter under review from the
INR16,095.30-crore income reported for the corresponding quarter
a year ago.

The Group posted a net loss of INR537.90 crore for the quarter
ended June 30, 2006, as compared to net loss of INR300.90 crore
for the same quarter in 2005-06.

                     About Bharat Petroleum

Headquartered in Maharashtra, India, Bharat Petroleum
Corporation Limited -- http://www.bharatpetroleum.com/-- is  
engaged in refining and marketing petroleum, liquefied petroleum
gas and petrochemical products including middle distillates,
light distillate, lubricants, benzene and toluene.  During the
year 2002, the Group introduced Petro Card and SmartFleet Card
and had around 700,000 customers enrolled in 28 cities.  There
are 4,711 retail outlets and 1,729 LPG distributors that operate
in the country.  The plants of the Group are located in Mahul
and Mallet Road in Mumbai and in Budge.

Bharat Petroleum is currently working to reverse its losses
resulting from the Government's mandate to sell kerosene,
liquefied petroleum gas, petrol and diesel way below market
rates.

On September 23, 2005, the Company delisted its shares from the
Madras Stock Exchange Ltd, Calcutta Stock Exchange Association
Ltd and Delhi Stock Exchange Association Ltd.  In November 2005,
Bharat Petroleum's November 2004 profits dissipated and the
Company registered a INR203-crore (US$45.7 million) net loss.  
By the end of the third quarter ending December 31, 2005, the
Company posted a US$231-million net loss.

In January 2006, Bharat Petroleum entered into a merger with
Koichi Refineries Ltd, which shareholders for both companies
accepted.  Even with its expansion moves, Bharat Petroleum has
decided to put aside a US$1.4-million expansion project due to
losses brought about by oil subsidies, as the Company -- and the
entire industry -- suffered huge losses and has difficulty
implementing expansion activities due to the Government's
refusal to allow oil companies to raise fuel prices despite
global crude oil price crossing US$70 a barrel.

On February 20, 2006, the Petroleum Ministry proposed an
increase of INR3 per liter each in petrol and diesel prices and
INR20 per cylinder increase in liquefied petroleum gas price to
save the oil companies from going bankrupt.


BHARAT PETROLEUM: To Set Up Trading Arm in Singapore
----------------------------------------------------
Bharat Petroleum Corporation will set up a wholly owned
subsidiary in Singapore for trading and procurement of crude oil
and petroleum products as well as shipping and derivatives, The
Financial Express reports.

The move will make Bharat Petroleum the first oil refining and
marketing company to have its own overseas trading arm for crude
oil and petroleum products in Singapore -- considered the
world's largest trading, refining and bunkering center.

According to the Express, Bharat Petroleum will give the
subsidiary freedom to enter deals such as selling of cargos, set
prices and pricing terms and enter into transactions without
tendering.  The setting up of an independent trading house will
also be a strategic move, particularly aimed at capturing the
emerging business opportunity for exports from Indian
refineries.

My Iris News relates that Bharat Petroleum has signed a
memorandum of understanding with India's trading arm, MMTC India
Limited, to set up Bharat Petroleum's Singapore subsidiary.

MMTC's independent subsidiary in Singapore, MTPL Limited, has
been in existence since 1994 and will also help Bharat Petroleum
in identifying customers, My Iris says.

                     About Bharat Petroleum

Headquartered in Maharashtra, India, Bharat Petroleum
Corporation Limited -- http://www.bharatpetroleum.com/-- is  
engaged in refining and marketing petroleum, liquefied petroleum
gas and petrochemical products including middle distillates,
light distillate, lubricants, benzene and toluene.  During the
year 2002, the Group introduced Petro Card and SmartFleet Card
and had around 700,000 customers enrolled in 28 cities.  There
are 4,711 retail outlets and 1,729 LPG distributors that operate
in the country.  The plants of the Group are located in Mahul
and Mallet Road in Mumbai and in Budge.

Bharat Petroleum is currently working to reverse its losses
resulting from the Government's mandate to sell kerosene,
liquefied petroleum gas, petrol and diesel way below market
rates.

On September 23, 2005, the Company delisted its shares from the
Madras Stock Exchange Ltd, Calcutta Stock Exchange Association
Ltd and Delhi Stock Exchange Association Ltd.  In November 2005,
Bharat Petroleum's November 2004 profits dissipated and the
Company registered a INR203-crore (US$45.7 million) net loss.  
By the end of the third quarter ending December 31, 2005, the
Company posted a US$231-million net loss.

In January 2006, Bharat Petroleum entered into a merger with
Koichi Refineries Ltd, which shareholders for both companies
accepted.  Even with its expansion moves, Bharat Petroleum has
decided to put aside a US$1.4-million expansion project due to
losses brought about by oil subsidies, as the Company -- and the
entire industry -- suffered huge losses and has difficulty
implementing expansion activities due to the Government's
refusal to allow oil companies to raise fuel prices despite
global crude oil price crossing US$70 a barrel.

On February 20, 2006, the Petroleum Ministry proposed an
increase of INR3 per liter each in petrol and diesel prices and
INR20 per cylinder increase in liquefied petroleum gas price to
save the oil companies from going bankrupt.


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

PIONEER CORP: Turns Around with JPY5.66B Profit in 1st Quarter
--------------------------------------------------------------
Pioneer Corp. reported a net profit of JPY5.66 billion for the
first quarter of 2006, a turnaround from the JPY5.34-billion net
loss posted in the first quarter last year, AFX News Limited
reports.

Dow Jones says that the turnaround was caused by reduced costs,
higher plasma display, audio products and car navigation sales
and weaker currency.  Group sales rose 20% to JPY191.68 billion
from JPY159.20 billion.

The Company raised its net profit forecast from JPY3 billion to
JPY7.5 billion and sales outlook to JPY845 billion from
JPY830 billion, due to the smaller-than-expected drop in prices
of plasma displays and recordable DVD drives.

                          *     *     *

Headquartered in Tokyo, Japan, Pioneer Corporation --
http://www.pioneer.co.jp/-- manufactures consumer and  
commercial electronics, about 40% of its sales come from car
electronics, which are sold to retailers and automobile
manufacturers.  Pioneer also makes video equipment and audio
products.  Through Disco Vision Associations, Pioneer also
generates revenue from licensing optical disc technologies.
Pioneer has more than 30 manufacturing facilities worldwide.

The Troubled Company Reporter - Asia Pacific stated on May 2,
2006, that Pioneer posted a tenfold increase in its net loss for
2005 to JPY84.9 billion, from a JPY8.8 billion net loss in 2004,
due to an increase in restructuring efforts to combat price
falls of its digital appliances.


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

AMKOR TECH: Awaits Verdict on Pending Claims to Motorola Dispute  
----------------------------------------------------------------
Amkor Technology Inc. is anticipating the trial court's decision
on the remaining claims of its dispute with Motorola Inc.
regarding the assignments of certain patents to the Company.

Bench trial on the motion was concluded on January 27, 2006.  
The Court has heard post-trial oral arguments, and parties have
submitted post-trial briefs.

In August 2002, the Company sued Motorola seeking declaratory
judgment relating to a controversy between the parties
concerning Citizen Watch Co. Ltd.'s assigning to the Company of
a Patent License Agreement on January 25, 1996 between Motorola
and Citizen, and Citizen's concurrent assigning to the Company
of its interest in U.S. Patents 5,241,133 and 5,216,278.  The
controversy also relates to the Company's obligation to make
certain payments under an immunity agreement dated June 30,
1993, between the Company and Motorola that is pending in the
Superior Court of the State of Delaware in and for New Castle
County.

The '133 and '278 Patents both relate to BGA packages.

The parties resolved the controversy relating to the immunity
agreement, and all claims and counterclaims relating to the case
were dismissed or otherwise disposed of without further
litigation.  The claims relating to the License Agreement and
the '133 and '278 Patents remained pending.

The parties both filed motions for summary judgment on the
remaining claims, and oral arguments were heard in September
2003.  On October 6, 2003, the Superior Court of Delaware issued
an opinion and order granting the Company's motion for summary
judgment and denying Motorola's motion for summary judgment.
Motorola filed an appeal in the Supreme Court of Delaware.  In
May 2004, the Supreme Court reversed the Superior Court's
decision, and remanded for further development of the factual
record.

West Chester, Pennsylvania-based Amkor Technology Inc. --
http://www.amkor.com/-- subcontracts semiconductor packaging  
and test services.  It has sales and manufacturing offices in
Japan, China, Taiwan, the Philippines and Korea.

Moody's Investors Service affirmed the corporate family and
long-term debt ratings of Amkor Technology, Inc., and revised
the ratings outlook to stable from negative.  In addition, the
speculative grade liquidity rating was upgraded to SGL-3 from
SGL-4.

Standard & Poor's Ratings Services, on May 12, 2006, assigned
its 'CCC+' rating to a new US$300 million senior unsecured note
due 2016 and its 'CCC' rating to a new US$150 million
subordinated convertible note due 2011 being issued by Chandler,
Arizona-based Amkor Technology Inc.  Proceeds of both notes will
be used to partially refinance existing notes due 2008 and 2009.  
Total debt of about US$2.2 billion is expected to be unchanged.

The corporate credit rating on Amkor Technology is B-/Positive/.


AMKOR TECH: Has US$20.98-Million Current Deficit  
------------------------------------------------
Amkor Technology Inc. posted a negative working capital of
US$20.98 million at March 31, 2006.  At December 31, 2005, the
Company recorded a positive working capital of
US$131.75 million.

At March 31, 2006, the Company posted US$795.52 million in
current assets and US$816.50 million in current liabilities
compared to US$766.49 million in current assets and
US$634.73 million in current liabilities at December 31, 2005.

Cash flows from operating activities for the three months ended
March 31, 2006, increased US$125.4 million over the three months
ended March 31, 2005.  This increase was primarily a result of
an increase in net income of US$153.7 million over the
comparable prior year period.

Cash flows resulting from changes in assets and liabilities
decreased by US$46.9 million during the three months ended
March 31, 2006 as compared to the three months ended March 31,
2005.  This is primarily attributable to a decrease in the
change in accounts payable of US$21.7 million due to increases
in inventory purchases and capital expenditure orders.

Cash flows used in investing activities for the three months
ended March 31, 2006, increased by US$11.6 million over the
comparable prior year period primarily due to a US$12.4 million
increase in payments for property, plant and equipment from
US$66.7 million in the three months ended March 31, 2005, to
US$79.1 million in the three months ended March 31, 2006.  The
increase is attributable to selective capacity expansion,
including the expansion of facilities in China and Singapore.

Net cash used in financing activities for the three months ended
March 31, 2006, was US$21.9 million, as compared to
US$11.8 million for the three months ended March 31, 2005.  The
net cash used in financing activities for the three months ended
March 31, 2006, includes the open market purchase of
US$30 million of the Company's 9.25% senior notes due February
2008.

In October 2004, the Company entered into a US$300.0 million
second lien term loan with a group of institutional lenders and
matures in October 2010.  In November 2005, the Company entered
into a US$100.0 million first lien revolving credit facility
available through November 2009, with a letter of credit sub-
limit of US$25.0 million.

As of March 31, 2006, the Company utilized US$2.5 million of the
available letter of credit sub-limit, and had US$97.5 million
available under the revolving credit facility.  The
US$100 million credit facility replaced the prior US$30 million
senior secured revolving credit facility entered into in June
2004.

Amkor Iwate Corporation, a Japanese subsidiary, has a revolving
line of credit with a Japanese bank for JPY2.5 billion (about
US$21.2 million), maturing in September 2006.  The interest rate
at March 31, 2006, was 0.67% and 0.66% for December 31, 2005,
and the line of credit was fully drawn.  Amkor has guaranteed
the repayment of this line of credit.  AIC has a revolving line
of credit at a Japanese bank for JPY300 million (about
US$2.5 million), maturing in June 2006.

The Philippine subsidiary entered into a PHP300 million (about
US$5.3 million) one-year revolving line of credit.

Amkor Assembly & Test (Shanghai) Co. Ltd., a Chinese subsidiary,
entered into a US$15.0 million working capital facility which
bears interest at LIBOR plus 1.25%, maturing in January 2007.
The borrowings to date of US$9.5 million were used to support
working capital.

West Chester, Pennsylvania-based Amkor Technology Inc. --
http://www.amkor.com/-- subcontracts semiconductor packaging  
and test services.  It has sales and manufacturing offices in
Japan, China, Taiwan, the Philippines and Korea.

Moody's Investors Service affirmed the corporate family and
long-term debt ratings of Amkor Technology, Inc., and revised
the ratings outlook to stable from negative.  In addition, the
speculative grade liquidity rating was upgraded to SGL-3 from
SGL-4.

Standard & Poor's Ratings Services on May 12, 2006 assigned its
'CCC+' rating to a new $300 million senior unsecured note due
2016 and its 'CCC'rating to a new $150 million subordinated
convertible note due 2011 being issued by Chandler, Arizona-
based Amkor Technology Inc. Proceeds of both notes will be used
to partially refinance existing notes due 2008 and 2009.  Total
debt of about $2.2 billion is expected to be unchanged.

The corporate credit rating on Amkor Technology is B-/Positive.


LG TELECOM: Revocation Leads to KRW103.5B Bill
----------------------------------------------
South Korea's Ministry of Information and Communication had said
that it will demand KRW103.5 billion (US$108.8 million) in fees
from LG Telecom Ltd. for its exclusive use of the 2.0GHz
bandwidth between May 2002 and July 2006, when its 3G license
was revoked, TeleGeography.Com reports.

As reported by the Troubled Company Reporter - Asia Pacific on
July 26, 2006, the South Korean Government has decided to cancel
LG Telecom's business license for third-generation services in
the country, after the Company abandoned plans to develop the 3G
wireless communication technology.

The TCR-AP report explained that the services associated with 3G
provide the ability to transfer both voice data and non-voice
data.

However, LG Telecom withdrew its plans because of the project's
large investment burden.  LG Telecom acquired the license to
develop and provide the technology in 2001 for KRW1.15 trillion.  
According to the TCR-AP report, the Company has paid KRW220
billion as initial payment, and, under the agreement, would have
to pay off the remaining KRW930 billion over 15 years.

LG Telecom failed to comply with its promise to start the 3G
services in the 2-gigahertz bandwidth by the end of June 2006.
The Company said that it saw a lack of interest and business
viability in the venture, making it reconsider the decision.

                        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.


SK CORP: To Expand Gold Exploration Efforts
-------------------------------------------
SK Corp. is planning to more than quadruple production capacity
from 24,000 barrels per day to 100,000 barrels by 2010, by
further improving the productivity of its existing facilities
and expanding to more countries, The Korea Times reports.  In
addition, the company aims to increase its shares of oil
reserves from the current 400 million barrels to 700 million
barrels by the end of 2006.

                Plans for Continuing Exploration

Beginning this summer, SK Corp. is preparing exploratory
drilling in four blocks in the North Sea and the Majunga block
in Madagascar.  Its involvement in the North Sea block will be a
particular focus for moving forward, because this area is the
global center for oil well drilling and the company hopes to
gain invaluable experience through its activities there.

SK has acquired 30-40% stakes in four maritime blocks off
northeast Britain to join the North Sea energy exploration
project, in a deal with British oil developer Nautical
Petroleum.  An affiliate of Swiss oil company Masefield Energy
Holdings, Nautical Petroleum is active in the energy exploration
and development business in Britain and other European
countries.

It has been investigating the blocks this summer, and plans to
start drilling in 2007 or 2008.

                          Peru Business

Peru has a significant meaning to SK's E&P business.  Last year,
42.5% of its oil production came from the South American
country.  It is also anticipating the formal launch of the Peru
LNG business in the third quarter of 2006 when it will start
supplying LNG to markets in Central and North America.

                      About SK Corporation

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

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


* More People Are Borrowing From Loan Sharks
--------------------------------------------
There is an increase in people who are borrowing money from loan
sharks and private loans, Dong-A Ilbo reports.

Citing a research by the Financial Supervisory Service, Dong-A
Ilbo explains that on 5,113 borrowers of private loans, 36%
answered that they used the service "because of living expenses
including housing expenditures and doctor bills."  The
percentage was 20% in 2005.

             Record Number of Personal Bankruptcies  

According to the Supreme Court and Bank of Korea, 49,581 people
petitioned for bankruptcy for the first half of 2006, or 255.9%
from the 13,391 figure recorded in the first half of 2005.  For
the full-year of 2005, the number of personal bankruptcies was
at the 38,773 level, which was the biggest when measured by an
annual standard.  

The average monthly number of bankruptcy filings have been more
10,000 since April 2006.

                        Other Indicators

In the second quarter of 2006, from April to June, the GDP grew
by a mere 0.8% rating, the lowest increase in five quarters.

Escalating interest rate and inflation are also putting
pressures on households. The average annual interest rate of
loans in household sector was 5.72% in June, which is the
highest in 23 months.

The Government is considering raising the railroad fee by 7.2%,
and cross-country and express buses fee by 18% and 8%,
respectively, in the second half.


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

ANTAH HOLDINGS: Unit Faces MYR19.4-Mln Compensation Payment Suit
----------------------------------------------------------------
Antah Holdings Berhad's wholly owned subsidiary, Kaseh Lebuhraya
Sdn Bhd, receives a Writ of Summons dated July 20, 2006, from
Azam Developer & Construction Sdn Bhd.

Azam Developer asserts a MYR19.4-million compensation claim plus
interests at a rate determined by the Kuala Lumpur High Court.  

Azam Developer also seeks an injunction order restraining Kaseh
from proceeding with and completing the sale of its shares in
Lebuhraya Kajang Seremban Sdn Bhd to Fancy Celebrations Sdn Bhd
without Azam Developer's consent until Kaseh pays the
MYR19.4 million.  In addition, Azam Developer wants Kaseh barred
from selling and dealing with its shareholding in Lekas without
Azam Developer's consent until the compensation sum is settled.

As reported in the Troubled Company Reporter - Asia Pacific on
October 11, 2005, Antah advised Bursa Malaysia that Kaseh has
acquired the entire issued and paid-up share capital of
Lebuhraya Kajang-Seremban.

Azam Development further asks payment for legal costs and any
other relief as the Court may deem fit.

Furthermore, Azam Development serves Kaseh with an Inter-Parte
Summons In Chambers dated July 24, 2006.  The Summons is fixed
for hearing on August 3, 2006.

Kaseh is currently liaising with its Solicitors to take the
appropriate actions to protect its legal rights in respect of
the legal suit by the Plaintiff.

                      About Antah Holdings

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

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

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


AYER HITAM: Payments Default Total MYR41,339,119 as of June 2006
----------------------------------------------------------------
Pursuant to Practice Note No. 1/2001, Ayer Hitam Tin Dredging
Malaysia Berhad provides Bursa Malaysia Berhad an update of its
default in payments position as at June 30, 2006.

According to the Company, its total default in principal sums
plus interest as of the end of June amounted to MYR41,339,119.
This default in payments are owed to lenders in respect of the
term loan and the syndicated term loan as per the Company's
announcement on August 27, 2004.

                                      Principal Sum & Interest
   Lenders           Facility         Defaulted as of 06/30/06
   -------           --------         ------------------------
1. Alliance Bank     Syndicated Term          MYR27,993,900.69
   Malaysia Berhad;  Loan
   EON Bank Berhad;
   Kewangan Bersatu
   Berhad; Malayan
   Banking Berhad

2. AmBank Berhad      Term Loan               MYR13,345,218.04

   Total                                      MYR41,339,118.73

                        About Ayer Hitam

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

The Proposed Restructuring Scheme includes provisions on:

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


CHIN FOH: Fined MYR12,000 for Breach of Listing Requirements
------------------------------------------------------------
On July 31, 2006, Bursa Malaysia Securities Berhad publicly
reprimanded and imposed a MYR12,000 fine on Chin Foh Berhad for
breach of Paragraph 9.23(b) of the Listing Requirements of Bursa
Securities.

Paragraph 9.23(b) of Bursa Malaysia Securities Listing
Requirements states that a listed issuer must ensure that the
issuance of the annual audited accounts together with the
auditors' and directors' reports will, in any case, be given to
Bursa Securities for public release, within a period not
exceeding four months from the close of the financial year of
the listed issuer unless the annual report is issued within a
period of four months from the close of the financial year of
the listed issuer.

Chin Foh failed to submit its Annual Audited Accounts for the
financial year ended January 31, 2006, to Bursa Securities by
the supposed May 31, 2006 deadline.  The Company's AAA was
submitted to Bursa Securities on June 13, 2006, after a delay of
eight market days.

The public reprimand and fine were imposed pursuant to Paragraph
16.17 after taking into consideration all the circumstances of
the case including that the Company had previously breached the
Bursa Securities LR.

                      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.


COMSA FARMS: Delays Submission of Annual Audited Financials
-----------------------------------------------------------
Comsa Farms Berhad informs Bursa Malaysia Berhad that its
submission of its annual audited accounts for the financial year
ended March 31, 2006, will be delayed.

Comsa Farms' AAA 2006 was due to be submitted to the Bourse on
July 31, 2006, pursuant to Paragraph 9.23(b) of the Listing
Requirements of Bursa Securities.

Comsa Farms says that it intends to submit its AAA 2006 on
August 18, 2006.

                    About Comsa Farms Berhad

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

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

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


LITYAN HOLDINGS: Buys More Time to Fulfill Scheme Conditions
------------------------------------------------------------
On July 27, 2006, Lityan Holdings Berhad, through its merchant
bank, Avenue Securities Sdn Bhd, entered into a supplemental
restructuring agreement with creditors:

     -- Giant Best Corporation Limited;
     -- Chen Xinmim; and
     -- Lim Chu Fatt.

Under the deal, the parties agreed to extend the time for the
fulfillment of the conditions in respect of the Company's
restructuring proposal for another one month until August 28,
2006.

The Troubled Company Reporter - Asia Pacific reported on
July 12, 2006, that the Company submitted on July 6, 2006, an
application for a review of the Securities Commission's decision
to reject the Company's proposed restructuring scheme.

The TCR-AP noted that on June 9, 2006, the Securities Commission
denied Lityan Holdings' restructuring proposal, as there were
issues that raised concerns regarding the Scheme including a
requirement to fulfill several conditions of the agreement.

In view of the SC's rejection, Bursa Malaysia Securities Berhad
commenced delisting procedures on June 13, 2006, against Lityan.
Trading in Lityan's shares has been suspended since June 16,
2006, TCR-AP said.

                     About Lityan Holdings

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

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

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


SBBS CONSORTIUM: Faces Trade Suspension on Non-Submission of AAA
----------------------------------------------------------------
SBBS Consortium Berhad failed to submit its Annual Audited
Accounts for the financial year ended December 31, 2005, to
Bursa Malaysia Securities Berhad for public release within the
stipulated timeframe pursuant to Paragraph 9.23(b) of Bursa
Securities' Listing Requirements.

Pursuant to Paragraph 9.26(4) of the Listing Requirements, if a
listed issuer fails to issue the outstanding financial
statements within three months from the expiry of the timeframes
stated in Paragraph 9.22 and 9.23 of the LR, in addition to any
enforcement action that the Bursa Securities may take, the Bursa
Securities will suspend trading in the securities of that listed
issuer.  The suspension will be effected on the market day
following the expiry of the Suspension Deadline.

Thus, in view of SBBS Consortium's failure to meet the deadline,
a trading suspension will be imposed on the listed securities of
the Company.

However, as the listed securities of the Company have already
been suspended from trading since March 31, 2006, due to a
winding-up order being made on the Company, the Bourse states
that the suspension will continue irregardless of the suspension
which was earlier imposed.

Furthermore, the Bourse reminds the Company that, pursuant to
Paragraph 9.26(6) of the LR, if it fails to issue the
outstanding financial statements within six months from the
expiry of the Relevant Timeframes, in addition to any
enforcement action that Bursa Securities may take, delisting
procedures will be commenced against it.

                       About SBBS Consortium

Headquartered in Kuala Lumpur, Malaysia, SBBS Consortium Berhad
is engaged in the trade, manufacture and sale of molded and sawn
timber and other wood-based products.  Its other activity is
investment holding.  Due to its inability to service loan
facilities, the Company had entered into various negotiations
with its bank creditors, and in order to ensure that these
creditors are treated on a pari passu basis, the Company had
ceased making repayments to its bank creditors on an ad-hoc
basis.  As a consequence of this treatment, its bank creditors
have taken various measures to recover their outstanding loans.  
Negotiations between the Company and its bank creditors are
nonetheless, still continuing.  The Company is considering
various sources of new business and funds to address its
financial position, and had on June 24, 2005, appointed Covenant
Equity Consulting Sdn Bhd to advise on its options.  Currently,
the Company is working to implement corporate rehabilitation
exercises to turn its business around.  On May 9, 2006, the SBBS
acknowledged that it belongs to Bursa Malaysia Securities
Berhad's Practice Note 17/2005 category because it is insolvent
by virtue of the wind-up order granted by the Kuala Lumpur High
Court on March 29, 2006.


SUREMAX GROUP: Southern Investment Wants Payment of MYR1,673,592
----------------------------------------------------------------
On July 31, 2006, Suremax Group Berhad and Suremax Builders Sdn.
Bhd. have been served with a Writ of Summons and Statement of
Claim by Southern Investment Bank Berhad.  The Writ was dated
April 7, 2006.

SIBB claims payment of:

   a. MYR1,673,592 as at February 28, 2006; and

   b. interest rolled over at the rate of 8.95% per annum,
      totaling MYR1,673,592.24, calculated on a monthly rest
      basis from March 1, 2006, until the date of full
      settlement

from Suremax and Suremax Builders.

SIBB also wants payment of costs and the entry of a further
order as the Kuala Lumpur High Court deems fair.

The Company said that it will seek legal advice from its
solicitors regarding to the next course of action.


                       About Suremax Group

Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad is
engaged in property development, construction, trading in
construction materials and sub-contracting works.  The firm's
other activities include the provision of property management
services and building construction.  The Group is also involved
in the manufacture and sale of ready mixed concrete.  Suremax
Group has suffered losses since 2004 due to sluggish market
demand.  For the second quarter of the financial year ended
August 31, 2006, Suremax booked a pre-tax loss of MYR1.32
million.  The Company is also trying to avert a series of
winding up actions against its subsidiaries.  On May 9, 2006,
Suremax was identified as a Practice Note 17 company and was
required to regularize its financial condition pursuant to the
Bursa Malaysia Securities Berhad's Listing Requirements.


TECHVENTURE BERHAD: Continues to Work on Debt Revamp Plan
---------------------------------------------------------
On July 27, 2006, Techventure Berhad disclosed that it is still
working on the proposed debt-restructuring scheme with the
financial institution lenders.

Techven will continue to inform Bursa Malaysia Securities of the
status of the debt-restructuring scheme.

As reported by the Troubled company Reporter - Asia Pacific on
June 19, 2006, the Company is required to submit a financial
restructuring plan to the Securities Commission since it was
identified as an affected listed issuer of Bursa Malaysia
Securities Berhad's Practice Note 17 category.

The Company fell under the category because:

   -- the auditors have expressed a modified opinion with
      emphasis on Techven's going concern status in the latest
      audited accounts for the financial year ended December 31,
      2005; and

   -- there are defaults in payment by Techven and its major
      subsidiaries as announced pursuant to Practice Note
      No. 1 and Techven is unable to provide a solvency
      declaration to Bursa Malaysia Securities Berhad.

Techven has until January 7, 2007, to submit the Plan to
relevant authorities.

In the event Techven fails to comply with the obligation to
regularize its condition, all its listed securities will be
suspended from trading and delisting procedures will be
commenced against the Company.

                    About Techventure Berhad

Techventure Berhad is based in Selangor, Malaysia.  Apart from
being a corrugated cartons manufacturer, the Group is also
involved in the production of rubber insulation materials and
roto-molded plastic products like septic tanks, playground
equipment, traffic barriers, and water tanks.  It markets its
entire corrugated cartons and plastic products locally while
about 80% of the rubber insulation materials are exported.  In
addition, the Group also manufactures ice cream.

In June 2003, the Company proposed a debt-restructuring program
to its financial institution lenders to avoid liquidation.  The
proposed Scheme comprises composite schemes to be carried out by
eight companies within the Techven Group.  The Scheme, when
implemented, would allow the beneficiaries to participate in the
future profitability of the Group.  A successful implementation
of the Scheme would also ensure the going concern of the Group
and therefore preserve business and employment opportunities for
the Group's vendors and employees. In May 2006, the Company was
categorized under the Amended Practice Note 17 category of the
Bursa Malaysia Securities Berhad's Listing Requirements.  As an
affected listed issuer, the Company is required to regularize
its financial condition or risk being delisted from the Official
List of Companies.


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

BANK OF THE PHILIPPINE ISLANDS: First Half Earnings Increase 7%
---------------------------------------------------------------
Bank of the Philippine Islands' consolidated net income in the
first half of 2006 rose to PHP4.6 billion, 7% higher than the
first half of the previous year's PHP4.3 billion, the bank said
in a press release.

For BPI's consolidated net income, the 7% improvement in
consolidated net income came from an increase in total revenues
and lower impairment losses, thereby totally negating the 13%
hike in operating expenses.  Return on equity was at 15.9% while
return on assets was at 1.9%.

Non interest income, which rose by 15%, was a major contributor
of top line revenue growth on account of foreign exchange and
securities trading gains, rental income, asset management and
trust fees, and service charges and commissions.

On the other hand, net interest income growth was tempered by
the 33 basis points year on year decline in spreads following
the drop in market rates.  Net interest income rose by a
moderate 3% notwithstanding a 13% increase in average asset
base.

Impairment losses dropped to PHP728 million against the
PHP1 billion set up in 2005 based on the review of the recovery
profile of the bank's non-performing assets.

Operating expenses were 13% higher with almost all major expense
items up due to the Prudential Bank business which was acquired
in September last year.  Manpower cost and premises cost moved
up by 18% and 25%, respectively.

Total assets reached PHP540 billion while deposits jumped to
PHP435 billion at end June 2006, 19% higher than the year-ago
level.  Net loans expanded by 7% to PHP230 billion despite two
non-performing loans sale transactions in July 2005 and May
2006.  Asset quality also improved to 6.1% (BSP definition) from
6.8% in end 2005.

In the first half, BPI received recognition as the best bank
from Euromoney, FinanceAsia and Global Finance.  It was also
recognized as the Best Retail Bank for 2005 by The Asian Banker
and the Best Cash Management Bank by the Asset.  The bank also
emerged as the Most Committed to Strong Dividend Policy in a
FinanceAsia poll and the Best Local Bank Trading the Philippine
Peso in a Euromoney Foreign Exchange Poll.  It was also recently
cited by the BSP as the Commercial Bank of the Year (2005) for
OFW Remittances.

                     Cash Dividend Payment

A cash dividend of PHP0.90 per share for the first semester of
2006 on BPI's outstanding common shares is payable on August 16,
2006, to shareholders of record as of August 1, 2006.

                           About BPI

Bank of the Philippine Islands -- http://www.bpi.com.ph/-- is   
the oldest bank in South East Asia and is the second largest
commercial bank in the Philippines in terms of assets, deposits,
loans and capital base in the year 2003.  The Bank has two major
products and services categories: the first covers its deposit
taking and lending/investment activities, while the second
covers income derived from all services other than deposit
taking, lending and investing, which are generally in the form
of commissions, service charges and fees.

Moody's Investors Service gave BPI a 'B1' Long-Term Bank
Deposits Rating effective February 16, 2005.

Fitch Ratings gave the bank an individual rating of 'C'
effective October 26, 2000.


BANK OF THE PHILIPPINE ISLANDS: Now Philippines' Top Bank
---------------------------------------------------------
Bank of the Philippine Islands has overtaken Metropolitan Bank &
Trust Co. as the country's largest bank in terms of assets, the
Manila Standard reports.

According to BPI, in a press release regarding its first half
position, its total assets reached PHP540 billion as of June 30,
2006, up 19% from the PHP435 billion a year ago.

On the other hand, Metrobank's resources, according to the
Manila Standard, stood at PHP493.69 billion as of June 30, 2006,
up 6% from the PHP465.42 billion posted as of the first half in
2005.

BPI acquired Prudential Bank last year, enabling it to expand
its branches loans and deposits.  Metrobank has not acquired a
bank for over four years.

                         About Metrobank

Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the  
Metrobank Group.  Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network.  Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.

The bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.

On March 3, 2006, Troubled Company Reporter - Asia Pacific
reported that Standard and Poor's Rating Service assigned a CCC+
rating on its US$125-million non-cumulative capital securities,
whereas Moody's Investors Service Rating Agency issued a B-
rating on the same capital instruments.

Moreover, Moody's gave Metrobank a Ba3 Foreign Long Term Bank
Deposits and Subordinated Debt Rating effective May 25, 2006.

Fitch Ratings gave Metrobank a B- Subordinated Debt Rating.

                           About BPI

Bank of the Philippine Islands -- http://www.bpi.com.ph/-- is  
the oldest bank in South East Asia and is the second largest
commercial bank in the Philippines in terms of assets, deposits,
loans and capital base in the year 2003.  The Bank has two major
products and services categories: the first covers its deposit
taking and lending/investment activities, while the second
covers income derived from all services other than deposit
taking, lending and investing, which are generally in the form
of commissions, service charges and fees.

Moody's Investors Service gave BPI a 'B1' Long-Term Bank
Deposits Rating effective February 16, 2005.

Fitch Ratings gave the bank an individual rating of 'C'
effective October 26, 2000.


BANKARD INC: Shareholders Approve PHP5-Billion Sale to GE Money
---------------------------------------------------------------
Bankard Inc. shareholders have approved the sale of the credit
card company's assets and the transfer of its liabilities to GE
Money Bank, a unit of United States-based General Electric Co.,
at a meeting on July 28, 2006, the Manila Standard Today
reports, citing Bankard Vice Chairman Cesar Virata.

Bankard also sold its office and condominium units to GE Money
Bank, Malaya News adds.  

According to Manila Standard, Bankard officials declined to give
out the terms and conditions of the sale to GE Money pending
finalization of the deal.

Bankard Chief Financial Officer Zenaida Torres, however, had
told reporters in Manila that the company planned to sell almost
all of its assets to GE Money, which could amount to
PHP5 billion.  Ms. Torres also said that GE Money would only
assume about PHP185 million worth of liabilities related to card
issuing business.

The Troubled Company Reporter - Asia Pacific reported on
July 26, 2006, that Bankard's board of directors had accepted GE
Consumer Finance's proposal to purchase the company's assets and
assume all business-related liabilities.  

Proceeds from the sale would be used to pay Bankard's remaining
liabilities, Manila Standard relates.  Ms. Torres stated that
Bankard has a total of PHP8 billion in liabilities, and that the
sale amount and the assumed liabilities are still not enough.

Malaya relates that within a year of the completion of the share
sale, Bankard may start issuing cards again, according to its
parent Rizal Commercial Banking Corp. Vice Chairman Cesar
Virata.  The Bank plans to keep its YGC card, after disposing of
its credit card business.  Once the share sale is completed,
some 300,000 Bankard cardholders would be transferred to GE
Money Bank.

                         About GE Money

With US$163 billion in assets, GE Money --
http://www.gemoney.com/-- is a unit of General Electric Company  
and is a leading provider of credit services to consumers,
retailers and auto dealers in approximately 50 countries around
the world.  GE Money, based in Stamford, Connecticut, offers a
range of financial products, including private label credit
cards, personal loans, bank cards, auto loans and leases,
mortgages, corporate travel and purchasing cards, debt
consolidation and home equity loans and credit insurance.

General Electric's financial services unit GE Money launched its
banking operations in the country with the opening of a 30-
branch network under GE Money Bank Philippines.

                         About Bankard

Bankard, Inc. -- http://www.bankard.com/-- is a 67%-owned  
subsidiary of RCBC Capital Corporation.  It was organized by
PCIBank in December 1981 as Philippine Commercial Credit Card,
Inc. to engage in domestic credit card operation.  It issued the
country's first credit card by a commercial bank.  On July 8,
1992, PCCCI changed its corporate name to Bankard Inc.

Bankard is a licensee of Mastercard International Incorporated,
JCB International Co., Ltd. and VISA International Service
Association to issue credit cards accepted by affiliated banks
and merchant establishments worldwide.  The Company markets a
line of credit cards, which includes Bankard MasterCard, Bankard
Visa, Bankard JCB Standard and Premiere and its latest, myDream
JCB.

Bankard's total current assets as of March 31, 2006, stood at
PHP3.58 billion, while its total current liabilities amounted to
PHP4.44 billion.  Bankard's total assets amounted to
PHP4.48 billion, and its equity was pegged at PHP32.17 million.  
The Company posted a PHP242.59-million net loss for the quarter
ended March 31, 2006, on total revenues of PHP494.33 million,
and expenses of PHP736.93 million.

                           About RCBC

Rizal Commercial Banking Corporation -- http://www.rcbc.com/--   
is a universal bank principally engaged in all aspects of
banking, and 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's Long
Term Bank Deposits a Ba3 rating effective May 25, 2006.


PHILIPPINE LONG DISTANCE: Invests PHP360 Million in Call Center
---------------------------------------------------------------
Philippine Long Distance Telephone Co. plans to expand its call
center operations handled by its unit ePldt Inc.'s subsidiary,
e-PLDT Ventus, Inc., and is spending PHP360.04 million for the
expansion, the Manila Bulletin reveals.

The Company plans to increase its number of call center agents
to 1,415.  It currently operates a call center in Iloilo with
300 seats, and will expand in Makati with 245 agents, in Ortigas
with 823 seats and support facilities, and in Quezon City with
46 agents.

The call center will offer financial and market support services
to PLDT and unit Smart Communications Inc. clients, as well as
third party clients in Australia, Canada, Europe, New Zealand,
and the United States, the Philippine Inquirer says.

The Bulletin adds that as the call center of PLDT, e-PLDT Ventus
offers the largest and widest range of telecommunications
services in the country.

                             About PLDT

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.


ZEUS HOLDINGS: Second Quarter Net Loss Increases by 13%
-------------------------------------------------------
Zeus Holdings Inc. posted a 13% increase in its net loss for the
April-June 2006 quarter to PHP31,313, from a PHP27,243 net loss
for the same period last year, the Company discloses in its
filing with the Philippine Stock Exchange.

The Company reveals that cash decreased 17% to PHP43,536 as of
June 30, 2006, from the PHP52,430 as of Dec. 31, 2005, to fund
operating expenses, while input value added tax rose 34% to
PHP118,228 from PHP88,252 on purchases.  Advances to related
parties grew 169% to fund expenses.

Total assets as of June 30, 2006, was PHP161,764, while total
liabilities was PHP1,216,079, resulting to an equity deficit of  
PHP1,054,315.  This deficit is higher than the PHP784,487 equity
deficit as of December 31, 2005.  Total assets as of
December 31, 2005, was PHP140,682, while total liabilities was
PHP925,169.  

For the second quarter, Zeus Holdings' debt to equity ratio
stood at 1.15:1, from 1.18:1 in December 2005.

The Company's Second Quarter 2006 financial report is available
for free at:

   http://bankrupt.com/misc/ZHI_17Q_Jun2006.pdf

                      About Zeus Holdings

Zeus Holdings, Inc., was incorporated on December 17, 1981, as
JR Garments Corporation, to engage in the garment manufacturing,
distribution and export business.  After 15 years, the Company
diversified into other businesses and closed its garment
operations.  It increased its capitalization from PHP100 million
to PHP3 billion and changed its primary purpose to that of a
holding company.  Consequently, it changed its name from JR
Garments Corporation to Zeus Holdings, Inc.

The Company has not declared any cash dividend for the last two
fiscal years.

                          *     *     *

As reported in the Toubled Company Reporter - Asia Pacific on
June 6, 2006, Lilian Linsangan, of Punongbayan & Araullo,
expressed substantial doubt about Zeus Holdings, Inc.'s ability
to continue as a going concern after auditing the Company's
financials for the year ended December 31, 2005.  The going
concern doubt is due to the Company's capital deficiency
resulting from losses incurred in prior years and the absence of
any investing and operating activity.


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

LEAP HONG: Pays Preferential Dividend to Creditors
--------------------------------------------------
Leap Hong Construction Co Pte Limited has paid its preferential
dividend to creditors on August 1, 2006.

The creditors received 20% of all their admitted preferential
claims.

The Troubled Company Reporter - Asia Pacific reported on May 25,
2004, that the Company commenced a wind-up of its operations on
May 14, 2004.

The liquidator can be reached at:

         Tay Swee Sze
         c/o Tay Swee Sze & Associates
         30 Robinson Road #04-01
         Robinson Towers
         Singapore 048546


LESCOSING PTE: Creditor's Proofs of Debt Due on August 4
--------------------------------------------------------
Lescosing Private Limited is set to distribute dividend to
creditors.

To benefit in any distribution, Lescosing's creditors are
required to prove their claims not later than August 4, 2006, at
the liquidator's place of business.

The liquidator can be reached at:

         Ramasamy Subramaniam Iyer
         Goh Thien Phong
         c/o PricewaterhouseCoopers
         8 Cross Street #17-00
         PWC Building
         Singapore 048424


LST CONSTRUCTION: Winds Up Business Operations
----------------------------------------------
LST Construction Pte Ltd commended a wind-up of its operations
on July 21, 2006.

The wind-up application was filed by Lee Construction Pte Ltd
with the High Court of Singapore.

All creditors of LST are required to file their proofs of claims
to the Official Receiver.

The Petitioner's solicitor can be reached at:

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


KARAOKE EQUIPMENT: Enters Wind-Up Proceedings
---------------------------------------------
An application for the wind-up of Karaoke Equipment Centre Pte
Ltd will be heard before the High Court of the Republic of
Singapore on August 4, 2006, at 10:00 a.m.

United Overseas Bank Limited filed the wind-up petition on
July 12, 2006.

The Petitioner's solicitors can be reached at:

         Rajah & Tann
         4 Battery Road #15-01
         Bank of China Building
         Singapore 049908


O.S.L. SINKO: Creditors Meeting Scheduled on August 11
------------------------------------------------------
The creditors of O.S.L. Sinko Private Limited, which is in
liquidation, will hold a meeting on August 11, 2006, at 4:00
p.m., for them to:

   -- receive the liquidators' report and statement of all the
      Company's receipts and payments during the wind-up period
      and consider the liquidators' intention to apply to Court
      for release;

   -- pass a resolution under Section 268 (3)(b) of the
      Companies Act (Chapter 50) to consent to the amount of the
      liquidators' remuneration; and

   -- consider any other business.

As reported in the Troubled Company Reporter - Asia Pacific on
June 9, 2006, O.S.L. Sinko has already declared dividend to
preferential creditors.

The joint and several liquidator can be reached at:

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


THE AUDIOPLEX: Creditors Must Prove Debts by August 7
-----------------------------------------------------
Timothy James Reid, as liquidator of The Audioplex Pte Limited,
notifies the Company's creditors that they must submit proofs of
claim by August 7, 2006.  Failure to file their PoC will exclude
creditors from taking part in the Company's dividend
distribution.

The Liquidator can be reached at:

          Timothy James Reid
          c/o Ferrier Hodgson
          50 Raffles Place
          #16-06 Singapore Land Tower
          Singapore 048623


UNITY BUILDER: Creditor's Proofs of Debt Due on August 11
---------------------------------------------------------
Unity Builder Pte Ltd notifies parties-in-interest of its
intention to declare dividend to creditors.

Creditor are therefore required to submit their proofs of debt
by August 11, 2006, for them to share in the dividend
distribution.

The liquidator can be reached at:

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


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

SIAM COMMERCIAL BANK: Eyes Sale of THB10 Billion Worth of Assets
----------------------------------------------------------------
Siam Commercial Bank is negotiating with both local and foreign
investors to sell off up to THB10 billion worth of non-
performing assets, The Bangkok Post reports.  

According to the Post, Khunying Jada Wattanasiritham, SCB
president, said that the bank is seeking to reduce its non-
performing and is now in the process of grouping its bad assets
for potential sale.  Pricing would vary based on asset quality
and risk.

The Post relates that SCB holds around THB18.8 billion worth of
non-performing assets, based on principal debt and excluding
accrued interest.  These bad assets would be categorized into
four groups, two for sale by customer account and two for sale
of entire asset portfolios.

Thirteen local and foreign investor groups are conducting due
diligence and asset valuations of the portfolios before the bank
opens bidding on Aug 28, 2006, the Post relates.

Moreover, the bank is also considering selling off non-
performing assets and non-performing loans to the Bangkok
Commerce Asset Management under a program sponsored by the Bank
of Thailand, the Post says.

However, Mr. Khunying Jada told the Post that sales to BCAM
would be a last resort, given that the state-owned asset agency
is offering delayed payments ranging from two to nine years
depending on the quality of the assets.

Meanwhile, the bank projects its non-performing loans to fall to
7% of total loans by the end of the year.  SCB reported non-
performing loans of THB59.78 billion, or 9.2% of total loans, at
the end of 2005.

As of the end of June, Siam Commercial Bank had allowances for
doubtful debt of THB47.5 billion, down from THB49.68 billion at
the end of 2005 as a result of loan write-offs and distressed
asset sales in the first half of the year.

                          *     *     *

Thailand's fourth largest commercial bank, Siam Commercial Bank
-- www.scb.co.th/ -- provides a wide variety of personal and
business banking options, including funds management, loan and
investment services, foreign currency exchange, and more. The
bank has more than 500 branches countrywide.  The bank had total
assets worth THB814 billion as of December 31, 2005.

On March 31, 2006, The Troubled Company Reporter - Asia Pacific
reported that Moody's Investors Service placed Siam Commercial
Bank Public Company Limited's bank financial strength rating of
"D+" on review for possible upgrade.


* BOT Notes Increase on NPLs in Second Quarter 2006
---------------------------------------------------
The Bank of Thailand says that the re-entry of non-performing
loans to the local financial institution system had slightly
increased the bad debt amount in the second quarter of this
year, FNWeb reports.

Tarisa Watanagase, BOT's deputy governor told FNWeb that most of
the new NPLs arise from the financial institutions' existing
debtors' failure to comply with debt-restructuring terms and
conditions.   

Some of the increased NPLs were also a result from new debtors'
failure to repay loans.  However, Miss Tarisa said that this
portion is considered small.  Moreover, debtors in the property
sectors did not incur the new NPLs, as many had predicted, she
relates.

The BOT saw no sign of an increase in NPLs incurred by the
property debtors although the sector had been affected by the
country's economic slowdown, she said.

As of the end of the second quarter of this year, NPLs incurred
in the financial institution system totaled THB484.7 billion or
8.23% of the outstanding loans, up by THB13.28 billion from
THB471.43 billion in the previous month.


                            *********

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.
   
TCR-AP subscription rate is $575 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are $25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.
   
                 *** End of Transmission ***