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        T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

             Monday, August 14, 2006, Vol. 9, No. 160

                            Headlines

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

27 GILLES STREET: Placed Under Members' Voluntary Liquidation
AWB LIMITED: Cole Inquiry Hearing to Resume on August 22
BNS TRANSPORT: Members and Creditors to Receive Wind-Up Report
BRIARS SPORTING: Members to Hear Liquidator's Report on Sept. 6
CARKRAFT LIMITED: Shareholders Appoint Joint Liquidators

CE GROUP: Court Hears CIR's Liquidation Bid Today
CENTRAL FOOD: Abeyratne Ceases to Act as Receiver and Manager
COMSPECT PTY: Members' Final Meeting Slated for September 8
CRUISE DEVELOPMENTS: Appoints Andrews as Liquidator
DATUM GROUP: Intends to Distribute Dividend to Creditors

EDEN ONE: Creditors Must Submit Claims by August 25
ESCUDO MOTOR: Faces Liquidation Proceedings
EXSELL MARKETING: Court to Hear Liquidation Bid on August 31
F.R.D. PTY: Liquidators to Present Wind-Up Report on August 31
FORTESCUE METALS: S&P Rates FMG Finance's Proposed Notes 'BB-'

FORTESCUE METALS: Sets Guidance on AU$2.6 Bln notes to be Sold
GLOBAL BINS: Appoints Receivers and Managers
J & D RESTAURANTS: Receivers and Managers Step Aside
J & H DEVELOPMENT: Court Hears Liquidation Bid Today
JAS SALES: Members to Hear Wind-Up Report on September 11

K & C STAPLETON: Placed Under Members' Voluntary Liquidation
LABOUR SUPPLY: Members Opt for Voluntary Wind-Up
LATIMER YOUNG: Creditors Appoint R. D. M. Smith as Liquidator
LEHN TRANSPORT: Names Hancock and Cussen as Receivers
MAL SMITH: Liquidator Andrews to Present Wind-Up Report

MATAROA INTERNATIONAL: Faces Liquidation Proceedings
MERMAID DISTRIBUTORS: Receiver and Manager Steps Aside
MICK HORNSBY: Members and Creditors to Hear Wind-Up Report
NAPIER FABRIC: Undergoes Creditors' Voluntary Wind-Up
NBC BUILDING: Appoints Joint Liquidators

NORTHERN DISTRICT: Members Decide to Shut Down Operations
ORIGIN PACIFIC: Fails Financing Quest & Halts Passenger Services
OZTEK PTY: Taps Steven Nicols as Receiver and Manager
PARITI HOLDINGS: Members to Hold Final Meeting on September 8
PRIMUS TELECOMMS: 2nd Quarter Net Loss Inflated to US$219.9 Mln

PROVINCIAL FINANCE: Debenture Holders Will be Repaid in 3 Years
ROCKCRUSHER DIFFS: Receiver and Manager Ceases to Act for Firm
SAVAL HOLDINGS: Members Agree to Close Operations
SCM PTY: Roderick Mackay Sutherland Named Liquidator
ST JOHNS PROJECTS: To Declare Dividend on August 30

STATURE PTY: Members and Creditors to Receive Wind-Up Accounts
STAVROS DESIGN: Creditors Appoint Official Liquidator
T.Y.D.S.E. LIMITED: Hearing of Liquidation Bid Set on Aug. 31
TRUCAST PTY: To Declare First and Final Dividend on August 31
VISTABLUE PTY: Members Meeting Scheduled on September 7

WESTERN BAY: Finance Now Calls Off Buy-Out Deal
WESTPOINT GROUP: ASIC Seeks Further Freezing of Assets
XCELTEK INTERNET: Commences Wind-Up Proceedings


C H I N A   &   H O N G  K O N G

AES CORP: Earns US$169 Million in Second Quarter of 2006
AFFINITY GLOBAL: Creditors Meet to Discuss Wind-Up
BANK OF CHINA (H.K.): Moody's Reviews C- BFSR for Upgrade
BINA INVESTMENT: Members Resolve to Wind-Up Operations
BON HONG SHIPPING: Members Opt for Voluntary Wind-Up

EGO CHAIN: Final Members' Meeting Set on September 8
EURO-POWER CONSULTANTS: Liquidator to Present Wind-Up Report
FREIGHT SOLUTIONS: Members' Extraordinary Meeting Set on Sept. 1
OCEAN GRAND: Liquidators Confirm CNY667.8-Million Missing
ON MERIT LIMITED: Names Cheng as Liquidator

OVERSEAS CROWN: Creditors Must Prove Debts by August 21
RICH MONDE: Members to Receive Wind-Up Report
WINSUM ELECTRONIC: Appoints Official Liquidator


I N D I A

INDIAN OIL: Books INR1,444-Crore Loss in First Quarter of FY2007
INDIAN OIL: Sri Lankan Unit Loses Market Share After Price Hike
SUPER BAZAR: Reliance Submits INR228-crore Offer for Revival


I N D O N E S I A

NEWERA FOOTWEAR: Pefindo Places Ratings on CreditWatch


J A P A N

ISHIKAWAJIMA-HARIMA HEAVY: FTC Slashes Fines in Bid-Rigging Case
SANYO ELECTRIC: Teams Up with Quanta to Form Joint Venture Firm
SKYLARK CO: Delisting JPY30-Bln Convertible Bonds From LSE


K O R E A

AGRICULTURAL COOPERATIVE: Moody's Raises Short-Term Debt Rating
HANA BANK: Moody's Upgrades Long- and Short-Term Debt Ratings
HYNIX SEMICONDUCTOR: Sets Aside KRW1.26Tril for R&D & Production
INDUSTRIAL BANK OF KOREA: Moody's Raises Short-Term Debt Rating
KOOKMIN BANK: Moody's Upgrades Short-Term Debt Ratings

KOREA DEVELOPMENT BANK: Short-Term Debt Rating Raised by Moody's
KOREA EXCHANGE BANK: Moody's Raises Short-Term Rating
LG CARD: Three Groups Submit Final Bids
SHINHAN BANK: Moody's Upgrades Debt Ratings
STANDARD CHARTERED FIRST BANK: Moody's Raises ST Debt Ratings

TRIGEM COMPUTER: Sees KRW20-30 Bil. Operating Profit Upon Sale
TRIGEM COMPUTER: Korean Development Bank Owns Majority Stake
TRIGEM COMPUTER: Slashes Workforce By More Than Half
WOORI BANK: Moody's Upgrades Long-Term Debt & Deposit Ratings
WOORI FINANCE HOLDINGS: Moody's Raises Issuer Rating to 'Baa2'


M A L A Y S I A

AHB HOLDINGS: SC Denies Request for Another Extension
AVAGO TECHNOLOGIES: Posts US$380M Net Revenue for Second Quarter
AYER MOLEK: Explains Variance in Financial Results
COMSA FARMS: Changes Registered Address
JOHAN CERAMICS: Books Lower Losses in Second Quarter of 2006

KRETAM HOLDINGS: Redeems RCLS and Converts New Shares
MERCES HOLDINGS: Wind-Up Hearing Postponed to August 29
METROPLEX BERHAD: July Default Amount Tops MYR1.78 Billion
STANDARD BANK: Fitch Keeps Individual C Rating


P H I L I P P I N E S

FILSYN CORP: Half-Year Loss Rises to PHP9.5 Billion
MALAYAN INSURANCE: S&P Issues 'BB' Counterparty Credit Rating
* Government Debt Reaches PHP4 Trillion in May 2006
* Pre-Need Firms' Sales Drop 20% in First Half of 2006


S I N G A P O R E

HOCK CHUAN: Creditors' Meeting Slated for August 22
MAE ENGINEERING: Shareholders Take Bigger Stakes
OVERSEAS SHIPHOLDING: Moody's Assigns Ba1 Debt Rating
OVERSEAS SHIPHOLDING: Earns US$60.2 Mln in Second Quarter 2006
REFCO INC: Eight Refco LLC Claimants Can File Consolidated Claim

REFCO INC: Customers Want Rule 2004 Examination on Refco F/X
SEAGATE TECHNOLOGY: Launches US$2.5B Stock Repurchase Scheme
SEAGATE TECHNOLOGY: June 2006 Net Income Decreases to US$7 Mil.
UNION FABRICATION: Undergoes Wind-Up Proceedings


T H A I L A N D

MANAGER MEDIA: Posts THB4.53-Mil. Net Loss in 2006 First Half
THAI WAH: Gains THB100.87-Mil in Net Profit for '06 2nd Quarter
* Thailand Posts THB9-Billion Trade Deficit Due To FTA

     - - - - - - - -

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

27 GILLES STREET: Placed Under Members' Voluntary Liquidation
-------------------------------------------------------------
At a general meeting held on July 21, 2006, the members of 27
Gilles Street Pty Ltd resolved to voluntarily liquidate the
Company's business and distribute the proceeds of its assets
disposal.

In this regard, P. D. McCarthy was appointed as liquidator.

The Liquidator can be reached at:

         P. D. McCarthy
         65 Unley Road
         Parkside South Australia 5063
         Australia


AWB LIMITED: Cole Inquiry Hearing to Resume on August 22
--------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
July 20, 2006, AWB Limited was permitted to delay giving 1,300
secret documents to Commissioner Terence Cole, who leads an
inquiry into the wheat exporter's alleged payment of illegal
kickbacks to Iraq under former dictator Saddam Hussein's regime.  

According to the TCR-AP report, Justice Neil Young of the
Federal Court in Melbourne rejected the Commonwealth's request
to have the legal status of the documents determined by
Commissioner Cole until the Court has heard the full argument of
why AWB believes the vast collection of e-mail exchange,
letters, power-point presentations, hand-written notes, and
other papers -- believed to contain evidence pertaining to the
kickback scandal -- should be shielded by legal professional
privilege.

An earlier TCR-AP report stated that recent changes to the Royal
Commissions Act has given Commissioner Terence Cole the power to
examine documents related to AWB and decide the validity of
AWB's claim asserting legal professional privilege.  However,
AWB obtained a Federal Court order prohibiting Commissioner Cole
from accessing the documents until the wheat exporter's appeal
against having to provide them was heard before the Court.  AWB
has asserted that the documents are protected by legal
professional privilege in proceedings before the Cole Inquiry.

The TCR-AP said that Judge Young has barred Commissioner Cole
from issuing any more demands for the documents until the case
is decided.

In an update, ABC News Online relates that AWB's court challenge
to the power of the Cole Inquiry to demand documents has
concluded.  ABC notes that enough material has been released to
allow the Inquiry to resume hearings.

ABC News says hearings will resume on August 22, 2006.

According to ABC News, Judge Young has reserved judgment on
AWB's legal privilege claim to withhold about 800 documents.

Negotiations between AWB and Commonwealth Government lawyers
have resulted in about 500 disputed documents going to the Cole
Inquiry, the paper reveals.

Material relating to AWB's public relations strategy has also
been released, and the Cole Inquiry has just ordered more
material from AWB managers, ABC News adds.

                         AWB and Tigris

The Australian Associated Press recounts that the Cole Inquiry
has previously heard that AWB recovered an US$8-million debt for
Tigris Petroleum, which is related to BHP, by artificially
inflating wheat prices through United Nations oil-for-food
contracts.

The AAP says that Commonwealth lawyers argued in a written
submission that the Tigris documents could not be legally
privileged because they related to a wrongful act.

The Commonwealth submission contends that the AWB/Tigris
transaction was a sham and was wrongful so that no privilege can
attach, the Sydney Morning Herald relates.

The paper notes that not all the Tigris documents will be
automatically handed over, adding that the concession is
believed to cover about 20 documents.

According to the AAP, AWB is continuing with the bulk of its
case, which covers inquiries into the kickbacks -- Project Rose
-- and the Tigris deal -- Project Water.  The Commonwealth says
that the projects were "fact-finding" missions and should not be
concealed under the guise of legal advice, the AAP adds.

               AWB Paid Crisis Expert AU$91,000

AWB was willing pay American corporate crisis expert Peter
Sandman an amount ranging from AU$78,500 to AU$91,600 to help
draft a public apology for the Iraqi kickback scandal, WA
Business News relates.

New documents released by the Cole Inquiry show that AWB hired
Mr. Sandman in December 2005 and wanted to fly him to Melbourne
for less than two days' work at AU$850.50 an hour, plus
expenses, WA Business adds.

At that time, AWB was under enormous pressure after a United
Nations inquiry into its corrupt oil-for-food program in Iraq
found that the Australian grain trader had paid nearly
AU$300 million in kickbacks to former President Hussein's
regime, the AAP recounts.

WA Business relates that Senior AWB executive Jill Gillingham
initially e-mailed Mr. Sandman at his base in Princeton, New
Jersey, on December 7, 2005, asking if he was willing to help
the wheat exporter.

According to documents released by the Cole Inquiry, AWB ended
up agreeing with Mr. Sandman's suggestion for him to advise the
company via e-mail and telephone conference calls, during which
he helped AWB draft a profuse apology to the Australian people
for the kickbacks scandal.

About nine drafts were made, WA Business notes.

The final version of the apology, seen by the Cole Inquiry
earlier this year, included admissions by AWB's former managing
director Andrew Lindberg that AWB knew about the kickbacks and
never tried to stop them.

However, the Company never released the document, WA Business
says.

The TCR-AP reported on March 28, 2006, citing the Herald Sun,
that Mr. Lindberg and the board of directors junked the apology
plan and decided to go to the Cole Commission instead and
profess ignorance and innocence.

                         About AWB

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

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

In the Company's half-year report ended March 31, 2006, Brett
Kallio, a partner at Ernst & Young, noted that there is inherent
uncertainty surrounding the consolidated entity with regard to
matters associated with the Cole Inquiry.  As the findings of
the Cole Inquiry have not yet been determined and reported,
there is uncertainty as to the nature of these findings and the
financial effect, if any, on the consolidated entity and its
operations, Mr. Kallio stated.

                            *     *     *

The Troubled Company Reporter - Asia Pacific reported on
July 12, 2006, that six American wheat farmers have launched a
AU$1-billion class action against AWB in the United States,
claiming its dealings in overseas markets damaged their own
incomes.  According to the TCR-AP report, more farmers are
considering joining the class action.

The TCR-AP also previously reported that Australian law firm
Maurice Blackburn Cashman was considering a class action against
AWB on behalf of shareholders who lost money in the wake of the
Cole Inquiry.

The Company's balance sheet as of March 31, 2006, reflected
total assets of AU$5.7 billion and total liabilities of
AU$4.54 billion, showing total equity of AU$1.16 billion.


BNS TRANSPORT: Members and Creditors to Receive Wind-Up Report
--------------------------------------------------------------
The members and creditors of BNS Transport Pty Ltd will hold a
final meeting on September 6, 2006, at 10:00 a.m., to hear
accounts of the Company's wind-up and property disposal
activities from Liquidator Kim D. Holbrook.

The Troubled Company Reporter - Asia Pacific reported on
July 6, 2005, that the Company convinced a wind-up of its
operations on May 20, 2005.

The Liquidator can be reached at:

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


BRIARS SPORTING: Members to Hear Liquidator's Report on Sept. 6
---------------------------------------------------------------
A joint meeting of the members of The Briars Sporting Club Ltd
will be held on September 6, 2006, at 9:30 a.m.

At the meeting, Liquidator C. Wykes will report on the Company's
wind-up and property disposal activities.

The Troubled Company Reporter - Asia Pacific reported on
December 27, 2005, that the Company was placed under a members'
voluntary liquidation on December 2, 2005.

The Liquidator can be reached at:

         C. Wykes
         Lawler Partners
         Chartered Accountants
         Level 7, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia


CARKRAFT LIMITED: Shareholders Appoint Joint Liquidators
---------------------------------------------------------
The shareholders of Carkraft Limited on July 24, 2006, appointed
Joint Liquidators John Trevor Whittfield and Boris Van Delden to
oversee the Company's wind-up.

The Joint Liquidators requires the creditors of the Company to
submit their proofs of claim by August 31, 2006, for them to
share in any distribution the Company will make.

The Troubled Company Reporter - Asia Pacific reported on July 4,
2006, that the Company was facing a liquidation petition that
the Commissioner of Inland Revenue filed with the High Court of
Auckland.  The petition was heard on August 3, 2006.

The Joint Liquidators can be reached at:

         John Whittfield
         McDonald Vague, P.O. Box 6092
         Wellesley Street Post Office
         Auckland, New Zealand
         Telephone: (09) 303 0506
         Facsimile: (09) 303 0508
         Web site: www.mvp.co.nz/


CE GROUP: Court Hears CIR's Liquidation Bid Today
-------------------------------------------------
The Commissioner of Inland Revenue on July 4, 2006, filed before
the High Court of Palmerston North a petition to liquidate CE
Group Ltd.

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

The plaintiff's solicitor can be reached at:

         Kerri Ann Doherty
         Technical and Legal Support Group
         Wellington Service Centre, 1st Floor
         New Zealand Post House
         7-27 Waterloo Quay (P.O. Box 1462)
         Wellington, New Zealand
         Telephone: (04) 890 1045
         Facsimile: (04) 890 0009


CENTRAL FOOD: Abeyratne Ceases to Act as Receiver and Manager
-------------------------------------------------------------
William Bernard Abeyratne has ceased its role as receiver and
manager of Central Food Services Pty Ltd since July 13, 2006.


COMSPECT PTY: Members' Final Meeting Slated for September 8
-----------------------------------------------------------
Members of Comspect Pty Limited will convene on September 8,
2006, at 11:00 a.m., to hear the liquidator's report on the
Company's wind-up and the manner of property disposal.

According to the Troubled Company Reporter - Asia Pacific, the
Company is winding up its operations.  It declared its first and
final dividend on July 29, 2005.

The Liquidator can be reached at:

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


CRUISE DEVELOPMENTS: Appoints Andrews as Liquidator
---------------------------------------------------
At a general meeting of the members of Cruise Developments Pty
Ltd held on July 26, 2006, it was resolved that a voluntarily
liquidation of the Company's business is appropriate and
necessary.

Subsequently, Gregory Stuart Andrews was appointed as
liquidator.

The Liquidator can be reached at:

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


DATUM GROUP: Intends to Distribute Dividend to Creditors
--------------------------------------------------------
Datum Group Limited notifies parties-in-interest of its
intention to pay dividend to creditors.

Creditors who were not able to submit their proofs of debt to
Liquidators Jeffery Philip Meltzer and Rachel Mason by
August 11, 2006, will be excluded from sharing in any
distribution the Company will make.

The Joint Liquidators can be reached at:

         R. K. Mason
         Meltzer Mason Heath, Chartered Accountants
         P.O. Box 6302, Wellesley Street
         Auckland, New Zealand
         Telephone: (09) 357 6150
         Facsimile: (09) 357 6152


EDEN ONE: Creditors Must Submit Claims by August 25
---------------------------------------------------
Creditors of Eden One Ltd are required to submit their proofs of
claim by August 25, 2006, to Liquidators Arron Leslie Heath and
Michael Lamacraft.

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:

         A. L. Heath
         Meltzer Mason Heath, Chartered Accountants
         P.O. Box 6302, Wellesley Street
         Auckland, New Zealand
         Telephone: (09) 357 6150
         Facsimile: (09) 357 6152


ESCUDO MOTOR: Faces Liquidation Proceedings
-------------------------------------------
The High Court of Auckland will hear a liquidation petition
against Escudo Motor Co 2003 Ltd on August 31, 2006, at 10:00
a.m.

Wurth New Zealand Ltd filed the petition with the Court on
June 16, 2006.

The plaintiff's solicitor can be reached at:

         Dianne S. Lester
         Credit Consultants Debt Services NZ Limited
         Level Three, 3-9 Church Street
         (P.O. Box 213 or D.X. S.X. 10 069)
         Wellington, New Zealand
         Telephone: (04) 470 5972


EXSELL MARKETING: Court to Hear Liquidation Bid on August 31
------------------------------------------------------------
The Commissioner of Inland Revenue on June 21, 2006, filed
before the High Court of Auckland a petition to liquidate Exsell
Marketing Ltd.

The Court will hear the petition on August 31, 2006, at 10:00
a.m.

The plaintiff's solicitor can be reached at:

         Justine Berryman
         Technical and Legal Support Group
         Auckland North Service Centre
         Inland Revenue Department
         5-7 Byron Avenue, Takapuna
         Auckland, New Zealand  
         Postal Address: P.O. Box 33-150, Auckland
         Telephone: (09) 984 1538
         Facsimile: (09) 984 3116


F.R.D. PTY: Liquidators to Present Wind-Up Report on August 31
--------------------------------------------------------------
The members of F.R.D. Pty Limited will meet on August 3, 2006,
at 10:00 a.m.

At the meeting, Liquidator David Levi will present the Company's
wind-up report and the manner as the disposal of its property.

As reported by the Troubled Company Reporter - Asia Pacific on
December 12, 2005, the Company was placed under a members'
voluntary liquidation on November 2, 2005.

The Liquidator can be reached at:

         David Levi
         PKF
         Chartered Accountants
         Level 10, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia


FORTESCUE METALS: S&P Rates FMG Finance's Proposed Notes 'BB-'
--------------------------------------------------------------
Standard & Poor's Ratings Services assigns its 'BB-' preliminary
long-term debt rating to the US$2 billion senior secured notes
to be issued by Australia-based FMG Finance Pty. Ltd.  The
outlook on the notes is stable.

The note proceeds will be used to fund construction of a
greenfield iron ore operation and associated infrastructure,
including rail and port facilities in the Pilbara region of
Western Australia.

"The rating reflects the project's potential completion and
liquidity risks," Standard & Poor's credit analyst Peter
Stephens says.  "It is based on the assumption that the terms
and conditions of the new equity will be acceptable at financial
close, with the equity and debt funds made available
simultaneously to the project."

The notes will be guaranteed by FMG Chichester Pty Ltd., Pilbara
Mining Alliance Pty Ltd., and The Pilbara Infrastructure Pty
Ltd., the project guarantors, which are direct and indirect
subsidiaries of Fortescue Metals Group Ltd.  FMG will also
guarantee the senior secured notes on a senior basis until
project completion.

The obligations of FMG Finance, FMG, and the project guarantors
under the senior secured notes will be secured by fixed and
floating charges over the assets of FMG Finance and the project-
related assets of the project guarantors, a charge over the bank
accounts in which proceeds of the senior secured notes will be
deposited, share mortgages over all of the shares in the capital
of the project guarantors, a featherweight charge over all of
FMG's assets and undertakings, and mortgages of the real
property leasehold rights of the project and the project mining
tenements.

Final ratings will be issued on receipt and satisfactory review
of all final transaction documentation, including legal
opinions, and are subject to the pricing on the senior secured
notes.  Accordingly, the preliminary ratings should not be
construed as evidence of final ratings.  If Standard & Poor's
does not receive final documentation within a reasonable
timeframe, or if documentation departs from materials reviewed,
Standard & Poor's reserves the right to withdraw or change its
ratings.

The long-term project fundamentals are conceptually sound,
supported by strong market demand for iron ore; a large, long-
life ore body; low technical mining and logistic risks; and a
low projected operating-cost profile.  There are, however,
immediate credit risks for the project; these relate to
construction of the rail and port facilities within an
aggressive timetable, and weak liquidity and financial
flexibility from the project guarantors should construction
delays consume the debt service and cost overrun accounts pre-
funded from the notes issue.

In addition to the construction risk, the project requires
finalization of the mining and infrastructure agreements with
the state government of Western Australia and native title
landholders.  Delays due to regulatory approvals could affect
the construction timetable, as access to the construction areas
could be restricted until full licensing is provided.

The project is being developed under alliance contracts with
reputable mining and civil engineering companies.  However, the
lack of a fixed-price turnkey contract exposes the project to
unforeseen cost overruns with limited alternative funding
sources apart from the note-funded provision accounts.  To
mitigate the liquidity risks associated with delays, the project
debt is sized to include about AU$200 million of contingencies,
AU$300 million of cost overruns, and a backup construction
completion account of AU$135 million.

Due to additional-indebtedness covenants in the proposed notes
issue, FMG and the project group have no access to committed
liquidity if project completion is delayed and the cost overruns
accounts are fully drawn.  On commissioning of the project, cash
flow generation is expected to be robust, supported by strong
market conditions for iron ore and forecast low operating
costs for the project.

"Construction and regulatory delays, and the subsequent
utilization of the project contingency and cost overrun
provisions, could detrimentally affect the project's
creditworthiness," Mr. Stephens says.  "However, we expect these
delays to be manageable within the scope of the construction
period, with the use of cost overrun provisions if required."

The project's long-term debt service capability relies on cash
flow generation, and this, in turn, on completion. While debt
service accounts are prefunded for a two-year period, if the
project runs over cost and the provisions are used to complete
the project, there will be limited liquidity options to complete
and generate sufficient cash flow.

Should the project meet its construction timetable according to
budget, cash flow generation from initial sales in fiscal 2008
should be sufficient to meet debt obligations and operating
expenditures through the ramp-up of the project, assuming
working capital is fully funded.

"Following successful commissioning of the project, the rating
on the senior secured notes could be raised, reflecting more of
the underlying economics of the project, its projected low cost,
long-life reserve base, and the supportive market outlook for
iron ore," Mr. Stephens adds.


FORTESCUE METALS: Sets Guidance on AU$2.6 Bln notes to be Sold
--------------------------------------------------------------
Fortescue Metals Group Ltd. has set guidance on the
AU$2.6 billion of senior secured notes it plans to sell to
finance its iron ore mining business, WA Business News says,
citing a banking source.

The proceeds will fund the construction of a greenfield iron ore
operation and associated infrastructure, including rail and port
facilities in the Pilbara region of Western Australia, the
Australian Associated Press cites ratings agencies, as saying.

According to WA Business, the notes, to be issued via FMG
Finance, comprise of:

   * a 5-year dollar floating-rate note to yield 400 basis
     points over Libor;

   * a 7-year dollar fixed-rate note to yield around 10%;

   * a 7-year euro fixed-rate note to yield around 9.5%;

   * a 10-year dollar fixed-rate note to yield around 10.5%.

The pricing date is yet to be determined.

Citigroup manages the sale.

Moody's Investors Service has rated the issue Ba3, while
Standard & Poor's has assigned an equivalent BB- rating.  Both
ratings are three notches below investment-grade status, WA
Business notes.

The paper relates that S&P said that the fundamentals of the
Pilbara project were sound, supported by a strong market for
iron ore, low technical risks, and a low projected operating-
cost profile.  However, there are risks during construction, the
agency notes.

"Construction and regulatory delays, and the subsequent
utilization of project contingency and cost overrun provisions,
could detrimentally affect the project's creditworthiness," S&P
analyst Peter Stephens says.  "However, we expect these delays
to be manageable within the scope of the construction period,
with the use of cost overrun provisions if required."

Moody's echoed those concerns, saying: "Construction risk is the
primary driver of the rating, given the project's construction
task is large for a company the size of FMG and the timetable
is, in Moody's view, aggressive."

                      About Fortescue

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

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

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

                          *     *     *

Fortescue reported total assets of AU$221 million and total
liabilities of AU$84 million as of June 30, 2006.

Fortescue reported a net loss for the past two fiscal years.  
Net loss for the year ended June 30, 2005, was AU$4.52 million
and net loss for the year ended June 30, 2006, was
AU$2.15 million.


GLOBAL BINS: Appoints Receivers and Managers
--------------------------------------------
On July 12 2006, Robert Michael Scales and Guy Alexander Edwards
were appointed as receivers and managers of Global Bins
Australia Pty Ltd.

The Receivers and Managers can be reached at:

         Robert Michael Scales
         Guy Alexander Edwards
         PKF Chartered Accountants
         Level 11, 485 La Trobe Street
         Melbourne, Victoria 3000
         Australia


J & D RESTAURANTS: Receivers and Managers Step Aside
----------------------------------------------------
Anthony Milton Sims and Scott Darren Pascoe ceased to act as
receivers and managers of J & D Restaurants (Illawarra) Pty
Limited on June 30, 2006.


J & H DEVELOPMENT: Court Hears Liquidation Bid Today
----------------------------------------------------
The High Court of Palmerston North will on August 14, 2006, hear
a liquidation petition filed against J & H Development Ltd.

The Commissioner of Inland Revenue filed the petition with the
Court on June 15, 2006.

The plaintiff's solicitor can be reached at:

         Kerryn Marie Watt
         Technical and Legal Support Group
         Wellington Service Centre, 1st Floor
         New Zealand Post House
         7-27 Waterloo Quay (P.O. Box 1462)
         Wellington, New Zealand
         Telephone: (04) 890 1095
         Facsimile: (04) 890 0009


JAS SALES: Members to Hear Wind-Up Report on September 11
---------------------------------------------------------
Members of Jas Sales Pty Ltd will convene on September 11, 2006,
at 5:00 p.m., to hear accounts of the Company's wind-up from
Liquidator Christopher John Vincent.

According to the Troubled Company Reporter - Asia Pacific, the
Company commenced a wind-up of its operations on March 20, 2006.

The Liquidator can be reached at:

         Christopher John Vincent
         Suites 305-7
         The Trust Building
         155 King Street
         Sydney, New South Wales 2000
         Australia  


K & C STAPLETON: Placed Under Members' Voluntary Liquidation
------------------------------------------------------------
The members of K & C Stapleton Pty Limited held a meeting on
August 1, 2006, and resolved to voluntarily wind up the
Company's operations and distribute the proceeds of its assets
disposal.

Accordingly, Gerry Farlanga was appointed as liquidator.

The Liquidator can be reached at:

         Gerry Farlanga
         Arnold Stevens Finlay Chartered Accountants
         Level 6, 410 Church Street
         North Parramatta, New South Wales 2151
         Australia
         Telephone:(02) 9890 2555


LABOUR SUPPLY: Members Opt for Voluntary Wind-Up
------------------------------------------------
At a general meeting on July 25, 2006, the members of
Labour Supply Australia Pty Ltd resolved to voluntarily wind up
the Company's operations.

Accordingly, Barry Keith Taylor was named liquidator at a
creditors' meeting held that same day.

The Liquidator can be reached at:

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


LATIMER YOUNG: Creditors Appoint R. D. M. Smith as Liquidator
-------------------------------------------------------------
Members of Latimer Young Pty Ltd met on July 20, 2006, and
decided to voluntarily wind up the Company's operations.

Roger David Midgley Smith was subsequently appointed as
liquidator at a creditors' meeting held that same day.

The Liquidator can be reached at:

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


LEHN TRANSPORT: Names Hancock and Cussen as Receivers
-----------------------------------------------------
Geoffrey Trent Hancock and Neil Robert Cussen were appointed as
receivers of all the assets of Lehn Transport Services Pty
Limited on July 24, 2006.

The Receivers can be reached at:

         Geoffrey Trent Hancock
         Neil Robert Cussen
         Horwath Sydney Partnership
         Level 10
         1 Market Street
         Sydney, New South Wales 2000
         Australia


MAL SMITH: Liquidator Andrews to Present Wind-Up Report
-------------------------------------------------------
The members and creditors of Mal Smith Pty Ltd will hold a
general meeting on August 25, 2006, at 10:45 a.m.

At the meeting, Liquidator G. S. Andrews will present accounts
of the Company's wind-up and property disposal exercises.

The Troubled Company Reporter - Asia Pacific reported on
November 17, 2005, that Mal Smith declared its first dividend on
November 18, 2005.

The Liquidator can be reached at:

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


MATAROA INTERNATIONAL: Faces Liquidation Proceedings
----------------------------------------------------
The High Court of Auckland will on August 31, 2006, hear a
petition for the appointment of a liquidator for the assets of
Mataroa International Shipping Ltd.

The application was filed by Axis Container Sales and Leasing
Ltd on June 14, 2006.

The plaintiff's solicitor can be reached at:

         G. W. Davidson
         Coupe Davidson Sweetman, Solicitors
         Corner of Shea Terrace and Taharoto Road
         Takapuna, Auckland
         New Zealand


MERMAID DISTRIBUTORS: Receiver and Manager Steps Aside
------------------------------------------------------
On July 17, 2006, Michael Gerard McCann ceased to act as
receiver and manager of all the assets and undertakings of
Mermaid Distributors Pty Ltd.


MICK HORNSBY: Members and Creditors to Hear Wind-Up Report
----------------------------------------------------------
The members and creditors of Mick Hornsby & Co (Dandenong) Pty
Ltd will convene on August 25, 2006, at 10:15 a.m.

Liquidator Andrews will present the Company's wind-up report and
the manner of property disposal at the meeting.

The Troubled Company Reporter - Asia Pacific reported on June 6,
2006, that the members agreed to voluntarily wind up the
Company's operations on April 12, 2006.

The Liquidator can be reached at:

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


NAPIER FABRIC: Undergoes Creditors' Voluntary Wind-Up
-----------------------------------------------------
On July 26, 2006, a special resolution to place Napier Fabric
Imports Pty Ltd under a creditors' voluntary wind-up was passed
by its creditors.

In this regard, K. L. Sutherland was appointed as liquidator.

The Liquidator can be reached at:

         K. L. Sutherland
         Bent & Cougle Pty Ltd
         Chartered Accountants
         Level 5, 332 St Kilda Road
         Melbourne, Victoria 3004
         Australia


NBC BUILDING: Appoints Joint Liquidators
----------------------------------------
Shareholders of NBC Building & Construction on July 27, 2006,
appointed David Donald Chrichton and Keiran Ann Horne as
liquidators for the Company.

The Liquidators require the Company's creditors to file their
proofs of claim by August 28, 2006, for them to share in any
distribution the Company will make.

The Joint Liquidators can be reached at:

         K. A. Horne
         c/o Marie Inch
         Crichton Horne & Associates Limited
         Old Library Chambers
         109 Cambridge Terrace
         (P.O. Box 3978), Christchurch
         New Zealand
         Telephone: (03) 379 7929


NORTHERN DISTRICT: Members Decide to Shut Down Operations
---------------------------------------------------------
At a general meeting on July 19, 2006, the members of Northern
District Investments Pty resolved to voluntarily wind up the
Company's operations and appoint Michael Schramm as liquidator.

The Liquidator can be reached at:

         Michael Schramm
         Pacifica
         Chartered Accountants
         PO Box 993N
         Cairns, North Queensland 4870
         Australia


ORIGIN PACIFIC: Fails Financing Quest & Halts Passenger Services
----------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 11, 2006, Origin Pacific Airways was urgently seeking
fresh capital to help reduce debt.  The report noted that a
capital injection was necessary to ensure that the airline could
continue to "provide the competition so sorely needed in
regional aviation services."

However, a report from Radio New Zealand reveals that Origin
Pacific "has lost its struggle to survive" and has suspended
operations, putting most of its 260 staff out of work
immediately.  The announcement effectively grounds the biggest
domestic competitor to Air New Zealand on regional routes, the
report says.

Radio NZ relates that Origin Pacific halted its passenger
services on August 10, 2006, saying that it has been unable to
secure the urgently needed capital.

During a staff meeting, Origin Pacific managing Director Robert
Inglis said that there was "no choice" but to suspend operations
and lay off staff, Hawke's Bay Today relates.

According to HBToday, Origin's spokesman, Brendon Burns, said
that the airline might be able to redeploy "a handful" of staff,
but most of the workers would lose their jobs.

Origin Pacific says that it hopes to continue its freight
operations, Radio NZ reveals.

Mr. Inglis explains that if they are able to keep the freight
business running, it will only require a fraction of the current
staff, ShareChat News relates.

        Origin Clients Advised to Run to Air New Zealand

Origin's suspension of operations has left customers in the air
as to what will happen with their tickets, the New Zealand Press
relates.

Thus, Origin Pacific is recommending passengers who have booked
on its flights to contact Air New Zealand, Radio NZ says.  
However, Air New Zealand contends that it will be able to
accommodate these passengers only if Origin agrees to pay in
advance for the arrangement.

Air New Zealand says that Origin's advice is "premature" as
travel agreements have not yet been arranged, The National
Business Review relates.  Air New Zealand's chief financial
officer, Rob McDonald, says that the airline is "extremely
concerned that Origin has abandoned its customers in such a
cavalier manner."

Air New Zealand discloses that its terms of trade with Origin
are payment in advance and when this is confirmed, it will be
able to accommodate Origin passengers, The Review says.

Mr. McDonald will seek a meeting with Origin's managers, The
Review notes.

The Review cites Mr. McDonald as asserting that "based on the
information that Origin Pacific has released to the market, it
is operating as a solvent business that is capable of paying its
bills."

"Before re-accommodating Origin's customers, Air New Zealand
wants to establish what has happened to the money paid for the
fares," The Review cites Mr. McDonald as saying.

Air New Zealand's press statement said that travelers who have
paid for flights on Origin should be protected under the
Companies Act:

   "The interests of the traveling public are protected in a
   number of ways.  Payments made for tickets in advance of
   travel, in cash or by cheque, are held in a separate Trust
   Account.  Tickets paid for by credit card are protected
   through a credit card merchant agreement, secured under
   facilities with ANZ. Travel agents who accept bookings are
   not billed by Origin until the travel has been availed by
   their customer.  Accordingly, any pre-paid travel will be
   honored in full by Origin."

Origin Pacific advises passengers to call 0800 737 000, The
Review notes.

                 New Employment for Sacked Jobs

According to Mr. Inglis, Origin Pacific's immediate focus is to
assist its staff to find new employment and to help passengers
left stranded by the immediate suspension of passenger services,
ShareChat News relates.

At this stage, the number of affected union jobs is still
unknown.

According to The Review, the Engineering, Printing, and
Manufacturing Union, representing about 30 employees at the
airline, said that it will work to ensure that staff receive
their full redundancy entitlement.

"We were aware the airline was in a bid to shore up its
financial state because they asked us to delay negotiations on
the collective agreement we have with them," the NZPA cites EPMU
national secretary Andrew Little, as saying.

"We are pleased that in the last bargaining round we managed to
secure a redundancy agreement for staff and we will now work
with the company to make sure employee entitlements are met in
full," Mr. Little reveals.

               Mr. Inglis Blames Air New Zealand

Mr. Inglis asserts that Origin's financial difficulties came
through "the near-collapse of Air New Zealand."  That led to
Qantas then seeking to become a cornerstone investor of Air New
Zealand, HBToday relates.

Qantas had been a mainstay of the Origin Pacific operation, Mr.
Inglis recounts.

"When they left (in 2004) more than half of our passengers left
with them, so we were carrying a legacy of debt which was
effectively and anchor tied to the chocs of our aircraft and we
were never really able to get away from it," Mr. Inglis relates.

                      About Origin Pacific

Origin Pacific Airways -- http://www.originpacific.co.nz/-- was  
initially launched in 1997 as an air charter service and
continues to offer charters tailored to the specific needs of
business and groups.

Origin Pacific Airways operates from its own purpose-built
facilities at Nelson Airport.  The Company is 100% New Zealand
owned and managed and run by people with extensive knowledge of
air travel and proven success in running airline businesses.


OZTEK PTY: Taps Steven Nicols as Receiver and Manager
-----------------------------------------------------
On July 26, 2006, Steven Nicols was appointed as receiver and
manager of Oztek Pty Ltd.

Mr. Nicols can be reached at:

         Steven Nicols
         c/o Nicols + Brien
         Level 5, 221-229 Crown Street
         Wollongong, New South Wales 2500
         Australia
         Telephone:(02) 4226 6025
         Web site: http://www.bankrupt.com.au/


PARITI HOLDINGS: Members to Hold Final Meeting on September 8
-------------------------------------------------------------
A final meeting of the members of Pariti Holdings Pty Ltd will
be held on September 8, 2006, at 2:00 p.m.

At the meeting, Liquidator Peter J. Carnell will present the
Company's wind-up report and the manner of property disposal.

According to the Troubled Company Reporter - Asia Pacific on
November 10, 2005, the Company was placed under a members'
voluntary liquidation on October 13, 2005.

The Liquidator can be reached at:

         Peter j. Carnell
         WHK Darcy Kennedy Accountants & Advisors
         157 Brisbane Street
         Dubbo, New South Wales 2830
         Australia


PRIMUS TELECOMMS: 2nd Quarter Net Loss Inflated to US$219.9 Mln
---------------------------------------------------------------
PRIMUS Telecommunications Group, Incorporated, filed its second
quarter financial statements for the three months ended June 30,
2006, with the United States Securities and Exchange Commission
on August 9, 2006.

The Company reported a US$219.954 million net loss on US$252.323
million of net revenues for the second quarter ended June 30,
2006, compared with US$44.189 million net loss on US$290.638
million of net revenues for the same period in 2005.

United States and Other

United States and Other net revenue decreased US$4.3 million or
8.3% to US$47.3 million for the three months ended June 30,
2006, from US$51.6 million for the three months ended June 30,
2005.  The decrease is primarily attributed to a decrease of
US$7.7 million in retail voice services (including declines in
residential and small business voice services, prepaid services,
and wireless), and an US$800,000 decrease in Internet services.  
These decreases were partially offset by an increase of
US$2 million in carrier services, and an increase of
US$2 million in retail VOIP services.

Canada

Canada net revenue increased US$7.2 million or 11.6% to
US$70.1 million for the three months ended June 30, 2006, from
US$62.9 million for the three months ended June 30, 2005.  The
increase is primarily attributed to an increase of US$6 million
in VOIP and wireless services, a US$1.4 million increase in
prepaid services, and a US$1.0 million increase in Internet
services.  These increases were partially offset by a decrease
of US$1.1 million in retail voice services.  The strengthening
of the Canadian dollars against the U.S. dollars accounted for a
US$6.7 million increase to revenue, and which reflects changes
in the exchange rates for the three months ended June 30, 2006,
to the three months ended June 30, 2005.

Europe

European net revenue decreased US$31.2 million or 36.0% to
US$55.3 million for the three months ended June 30, 2006, from
US$86.5 million for the three months ended June 30, 2005.  The
decrease is primarily attributable to a decrease of
US$15.7 million in prepaid services (including decreases of
US$13.9 million in the Netherlands and US$1.9 million in
Sweden), a US$14.2 million decrease in carrier services due to
reductions in lower margin sales, and a decrease of
US$1.1 million for retail voice services.  During the second
quarter 2006, the Company restructured the majority of its
retail prepaid services business into a wholesale business.  The
weakening of the European currencies against the U.S. dollar
accounted for an US$800,000 decrease to revenue, when comparing
the exchange rates for the three months ended June 30, 2006, to
the three months ended June 30, 2005.

Asia-Pacific

Asia-Pacific net revenue decreased US$10.2 million or 11.3% to
US$79.5 million for the three months ended June 30, 2006, from
US$89.7 million for the three months ended June 30, 2005.  The
decrease is primarily attributable to a US$6.8 million decrease
in residential voice services, a $6.0 million decrease in dial-
up Internet services, a US$1.5 million decrease in other retail
services (including declines in wireless and other services).  
These decreases were partially offset by a US$3.4 million
increase in Australia DSL services, and an increase of
US$600,000 in business services.  The weakening of the
Australian dollars against the U.S. dollars accounted for a
US$2.6 million decrease to revenue, which reflects changes in
the exchange rates for the three months ended June 30, 2006, to
the three months ended June 30, 2005.

At June 30, 2006, the Company's balance sheet showed
US$414.262 million in total assets and US$878.377 million in
total liabilities, resulting in a US$464.115 million
stockholders' deficit, as compared with US$236.334 million
deficit at December 31, 2005.


The Company's June 30 balance sheet also showed strained
liquidity with US$232.205 million in total current assets
available to pay US$266.680 million in total current liabilities
coming due within the next 12 months.

Full-text copies of the Company's second quarter financials are
available for free at:

              http://ResearchArchives.com/t/s?f73

                        Going Concern Doubt

As reported in the Troubled Company Reporter on June 19, 2006,
Deloitte & Touche LLP expressed substantial doubt about PRIMUS
Telecommunications Group, Incorporated's ability to continue as
a going concern after auditing the Company's financial
statements for the fiscal year ended December 31, 2005.  The
auditing firm pointed to the Company's recurring losses from
operations, the maturity of US$23.6 million of the 5-3/4%
convertible subordinated debentures due February 2007, negative
working capital, and stockholders' deficit.

                           About PRIMUS

Based in McLean, Virginia, PRIMUS Telecommunications Group,
Incorporated (NASDAQ: PRTL) -- http://www.primustel.com/-- is  
an integrated communications services provider offering
international and domestic voice, voice-over-Internet protocol,
Internet, wireless, data and hosting services to business and
residential retail customers and other carriers located
primarily in the United States, Canada, the United Kingdom,
western Europe and Australia.  PRIMUS provides services over its
global network of owned and leased transmission facilities,
including approximately 350 points-of-presence throughout the
world, ownership interests in undersea fiber optic cable
systems, 16 carrier-grade international gateway and domestic
switches, and a variety of operating relationships that allow it
to deliver traffic worldwide.

                          *     *     *

As reported in the Troubled Company Reporter on April 7, 2006,
Standard & Poor's Ratings Services lowered its ratings on PRIMUS
Telecommunications Group Inc., including the corporate credit
rating, which was downgraded to 'CCC' from 'CCC+'.  The outlook
is negative.


PROVINCIAL FINANCE: Debenture Holders Will be Repaid in 3 Years
---------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 8, 2006, the joint receivers for Provincial Finance
Limited -- John Waller and Maurice Noone, at
PricewaterhouseCoopers -- presented interim updates of the
current status of their activities and the Company's affairs.  

According to the TCR-AP report, as of July 13, 2006, good
progress has been made in strengthening collection processes
with a view to reducing the general level of arrears and that
collections have been in line with Provincial Finance's
preliminary expectations.

A follow-up report from The Press relates that the Company's
chairman, David Lyall, and its chief executive officer, John
Edilson, are unlikely to see any return on their NZ$39.5 million
worth of shares in the Company.  Yet, Provincial Finance's
14,000 debenture-holders are likely to see their NZ$300 million
again -- but they will have to be patient.

The TCR-AP previously reported that the Company's investors who
were affected by the Company's collapse will get some of their
money back in September 2006.

The Press cites the Receivers' report confirming that secured
debenture-holders will get most, if not all, of their money back
over the next three years.

According to the Receivers, debenture-holders would get their
first payment of between 10c and 20c for every dollar they
invested at the end of September and that they will also be
informed of the next payment date.  Payments will be staged
after that at regular intervals and -- all going well -- their
principal will be repaid over three years, The Press relates.

A report from the New Zealand Herald relates that moves to
increase recoveries included more use of collection agents for
"face-to-face" recovery work, changing employees' working hours
so they could do more collection work in evenings, selling
repossessed vehicles more quickly and making more use of legal
options.

Stuff.co.nz says investors will be paid interest if there is any
surplus after the principal is paid.  However, the Receivers
warn that there is still a risk to their returns if loan returns
did not come in as expected.

However, the news is still bad for the Company's 450
preferential shareholders who chased a higher return for an
unsecured investment and look highly likely to miss out,
Stuff.co.nz further says.

This group -- which includes Mr. Lyall's relatives -- is owed
NZ$16 million, Stuff.co.nz. notes.

The Receivers note that the repayment of all the investors'
principal is still reliant on the Company's outstanding loans
coming in as expected and the Company qualifying for a
NZ$24 million tax benefit, Stuff.co.nz relates.

The Receivers have written off NZ$80 million worth of bad debts
-- NZ$20 million more than the Company estimated -- in their
report, which also shows that Provincial was technically
insolvent at the time of receivership, with NZ$8.06 million of
negative funds, Stuff relates.

According to the NZ Herald, investors holding NZ$17 million
worth of redeemable preference shares are unlikely to get
anything.  Yet, the Receivers' report shows that at the end of
May, Provincial owed secured investors just under NZ$300 million
and its loan book stood at NZ$308.9 million plus another
NZ$1.7 million owed on a loan book it had purchased, the paper
says.

Loans already written off and excluded from that figure amounted
to NZ$37.2 million, NZ Herald further says, adding that,
according to Mr. Waller, "[t]hese loans will be reviewed and
recovery actions, where appropriate, will be continued."

The Receivers have not found any wrongdoing at the Company
during their investigation, Stuff says.

Mr. Noone says that the report justified the decision of the
Company trustee, who was charged with looking after debenture-
holders' interests, to put the Company into receivership.

According to The Press, the Receivers are still in talks with
several potential buyers of Provincial's remaining loan book and
a restructuring of the Company could still happen.

Fears that borrowers would default once they knew the Company
was in trouble have not been realized, the paper notes.

The Receivers' report also notes that a property at the
exclusive Millbrook development near Arrowtown has been up for
sale, the paper says.

Mr. Waller also reveals that he had sold or entered into
commission arrangements with third parties to recover about
NZ$20 million of written-off debt, the NZ Herald further says.

The response to receivership sales of repossessed vehicles had
been good and Mr. Waller says he is planning to sell South
Auckland Cars' land and buildings over the next three months, NZ
Herald relates.

Other assets had been retained to enable the Company's continued
operation, which is underpinning the loan book's value, NZ
Herald cites Mr. Waller as saying.

Mr. Waller notes that it would take some months to finalize what
would happen to the Company.

A full-text copy of the Receivers' report is available for free
at:

  http://www.pwc.com/nz/pf/PF_ReceiversSection23Report_4August2006.pdf

                    About Provincial Finance

Provincial Finance Limited --
http://www.provincialfinance.co.nz/-- is a New Zealand finance  
company that provides consumer and commercial finance to
individuals and businesses across New Zealand, and promote a
range of investment opportunities.

As reported in the Troubled Company Reporter - Asia Pacific,
Provincial Finance was put into receivership on June 2, 2006,
due to breach of covenants and ratios in its Trust Deed, as well
as a multi-million write-down for bad debts.  The Company owes
NZ$300 million to 14,000 small investors.


ROCKCRUSHER DIFFS: Receiver and Manager Ceases to Act for Firm
--------------------------------------------------------------
Wayne Benton ceased to act as receiver and manager of the
property of Rockcrusher Diffs 4x4 Axle Assemblies Pty Ltd.


SAVAL HOLDINGS: Members Agree to Close Operations
-------------------------------------------------
At a general meeting held on July 24, 2006, the members of Saval
Holdings Pty Ltd passed a special resolution to voluntarily wind
up the Company's operations and distribute the proceeds of its
assets disposal.

The liquidator can be reached at:

         S. L. Horne
         Draper Dillon
         499 St Kilda Road
         Melbourne, Victoria 3004
         Australia


SCM PTY: Roderick Mackay Sutherland Named Liquidator
----------------------------------------------------
At a general meeting of SCM Pty Limited held on July 17, 2006,
members resolved to voluntarily liquidate the Company's business
and appoint Roderick Mackay Sutherland as liquidator.

The Liquidator can be reached at:

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


ST JOHNS PROJECTS: To Declare Dividend on August 30
---------------------------------------------------
St Johns Projects Pty Ltd notifies parties-in-interest of its
intention to declare its first and final dividend on August 30,
2006.

Creditors who were not able to submit their proofs of claim to
Liquidator A. A. Gaffney will be excluded from sharing in any
distribution the Company will make.

The Troubled Company Reporter - Asia Pacific reported on
March 30, 2006, members agreed to voluntarily liquidate the
Company's business on February 24, 2006.

The Liquidator can be reached at:

         A. A. Gaffney
         c/o RSM Bird Cameron
         4th Floor
         8 St George's Terrace
         Perth, Western Australia 6000
         Australia
         Telephone:(08) 9261 9100


STATURE PTY: Members and Creditors to Receive Wind-Up Accounts
--------------------------------------------------------------
The members and creditors of Stature Pty Ltd will convene on
September 5, 2006, at 10:00 a.m., to receive Liquidator Joseph
Sleiman's accounts of the Company's wind-up and the manner of
property disposal.

As reported by the Troubled Company Reporter - Asia Pacific on
December 9, 2005, members agreed to voluntarily liquidate the
Company's business on November 11, 2005.

The Liquidator can be reached at:

         Joseph Sleiman
         Sleiman & Co
         Certified Practising Accountants
         Level 8, 65 York Street
         Sydney, New South Wales
         Australia


STAVROS DESIGN: Creditors Appoint Official Liquidator
-----------------------------------------------------
The members of Stavros Design Pty Ltd held a meeting on July 20,
2006, and resolved to voluntarily liquidate the Company's
business.

Creditors appointed Geoffrey Handberg as liquidator at the
creditors' meeting held that same day.

The Liquidator can be reached at:

         Geoffrey Handberg
         D'Aloia Handberg
         Chartered Accountants
         10/200 Queen Street
         Melbourne, Victoria 3000
         Australia


T.Y.D.S.E. LIMITED: Hearing of Liquidation Bid Set on Aug. 31
-------------------------------------------------------------
A liquidation petition filed against T.Y.D.S.E. Ltd will be
heard before the High Court of Nelson on August 31, 2006, at
10:00 a.m.

The Commissioner of Inland Revenue filed on the petition with
the Court on July 4, 2006.

The plaintiff's solicitor can be reached at:

         S.N. McKenzie
         Preston Russell Law, Solicitors
         92 Spey Street (P.O Box 355)
         Invercargill, New Zealand
         Telephone: (03) 211 0080
         Facsimile: (03) 211 0079


TRUCAST PTY: To Declare First and Final Dividend on August 31
-------------------------------------------------------------
Trucast Pty Ltd will declare its first and final dividend for
creditors on August 31, 2006.

Creditors are required to submit their proofs of claims by
August 17, 2006, to share in the dividend distribution.

As reported by the Troubled Company Reporter - Asia Pacific on
February 10, 2006, members agreed to voluntarily wind up the
Company's operations due to its inability to pay its debts.

The liquidator can be reached at:

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


VISTABLUE PTY: Members Meeting Scheduled on September 7
-------------------------------------------------------
Members of Vistablue Pty Ltd will hold a meeting on September 7,
2006, to receive accounts of the Company's liquidation and
disposal of its assets.

As reported by the Troubled Company - Asia Pacific, the members
agreed to shut down the Company's operations on June 9, 2006.

The liquidator can be reached at:

         Nick Orfanos
         Nicholas Orfanos
         Level 1, 147 Frome Street
         Adelaide, South Australia 5000
         Australia
         Telephone: 08 8224 0440
         Facsimile: 08 8224 0470.
         e-mail:  Nick.orfanos@adelaide.on.net


WESTERN BAY: Finance Now Calls Off Buy-Out Deal
-----------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 4, 2006, Finance Now, a subsidiary of Southland Building
Society, has been undertaking due diligence in Western Bay
Finance's loan book.  The TCR-AP noted that the receivers for
Western Bay would be evaluating whether a deal could still be
worked out.

A follow-up report from The Southland Times relates that Finance
Now has called off the deal because the quality of Western Bay's
portfolio was not satisfactory.

However, Finance Now business development director Wayne Evans
notes that there is still the potential for a partial buy-out,
The Southland Times says.

"There was a portion of the Western Bay loan portfolio that met
our strict selection criteria and, as a result, we will continue
our discussions with Ferrier Hodgson," The Southland Times cites
Mr. Evans, as saying.

Ferrier Hodgson are the receivers for Western Bay, called to
assess the quality of the company's loan book, which has about
10,000 loans totaling NZ$53 million.

According to The Southland Times, Western Bay's statement says
that the receivers will evaluate Finance Now's offer in the
interests of debenture holders and will report directly to the
trustee and, in due course, to the debenture holders.

Mr. Evans relates that he was informed that a decision had not
yet been made on the sale of any of Western Bay's assets, The
Bay of Plenty Times says.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
August 4, 2006, that Western Bay Finance has been put into
receivership, leaving more than 3,000 investors in limbo.  
Receivers Ferrier Hodgson were called to assess the quality of
Western Bay's loan book, which has about 10,000 loans totaling
NZ$53 million.

An earlier TCR-AP report stated that Standard & Poor's Ratings
Services downgraded its insurer financial strength rating on New
Zealand general insurer Linsa Insurance Ltd. -- previously named
Premium Insurance Ltd. -- to 'CC' from 'B-'.   At the same time,
Linsa was placed on CreditWatch with negative implications.  The
report stated that the rating actions follow heightened
financial difficulties facing sister company Western Bay Finance
Ltd.  S&P noted that Western Bay Finance is not rated.

Jim Smylie established Western Bay Finance 17 years ago.


WESTPOINT GROUP: ASIC Seeks Further Freezing of Assets
------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 9, 2006, Justice Robert French of the Federal Court
temporarily froze the assets of two companies linked to
Westpoint founder Norman Phillip Carey -- Silkchime Pty Ltd and
Rold Corp Pty Ltd -- at the "urgent request" of the Australian
Securities and Investments Commission.

In relation to Silkchime, the ASIC seeks asset preservation
orders as well as orders directing Silkchime to file an
affidavit listing its assets and liabilities.  The ASIC has a
continuing concern regarding the risk of dissipation of
Silkchime's assets.

The ASIC contends that:

   (a) approximately AU$3.7 million in loans owing to Westpoint
       Corporation Pty Ltd were assigned from it to Silkchime
       between December 2005 and January 2006.  The effect of
       these assignments was to remove the liability of various
       Westpoint debtors, an asset available to Westpoint
       creditors, and place it in the 'hands' of Silkchime;

   (b) attempts were recently made to transfer AU$30,000 from a
       bank account of Silkchime to a bank account of Keyworld
       Investments Pty Ltd.  The sole director of Keyworld
       Investments Pty Ltd is Karen Sandra Carey, Mr. Carey's
       sister; and

   (c) the impending settlement of a property registered in the
       name of Silkchime may give rise to net proceeds of
       approximately AU$400,000 being available to Silkchime
       after settlement.

In relation to Rold, the ASIC is primarily seeking the
appointment of receivers to Rold's property as well as orders
directing Rold to file an affidavit listing its assets and
liabilities.

The ASIC contends that:

   (a) on November 25, 2005, Renaissance Mezzanine paid to Rold
       AU$1 million.  Westpoint had, on the previous day, paid
       Renaissance Mezzanine AU$1 million.  This "on-payment"
       was recorded in a way which purported to reduce a debt
       owed to Renaissance Mezzanine by Vannin Pty Ltd as
       Trustee for the Hay Family Trust.  The accounting entry
       "masks" the fact that the true benefit of the on-payment
       accrued to Rold.  It is alleged that the funds received
       by Rold were ultimately sourced from investor monies.  
       The effect of this transaction was to remove cash assets
       from Westpoint at a time when it was reasonable to expect
       that Westpoint was facing significant liabilities which
       would result in it going into some form of external
       administration or being liquidated; and

   (b) as at June 2006 Rold held approximately AU$1.1 million in
       two bank accounts with the National Australia Bank.  
       Those bank accounts were not, prior to ASIC's
       application, the subject of any asset preservation orders
       or supervision by receivers.

The ASIC has a continuing concern regarding the risk of
dissipation of Rold's assets.

The ASIC relates that the Court has ordered that certain assets
of the two companies be frozen until midnight on August 28,
2006.  The ASIC's application had been listed for a further
hearing on that day.

The ASIC has also obtained orders that Redchime Pty Ltd,
Richstar Enterprises Pty Ltd, Westpoint Realty Pty Ltd, and
Keypoint Developments Pty Ltd, provide a list of keywords from
the Redchime server to assist the ASIC and the receivers to
identify documents on which legal professional privilege may be
claimed.

On July 28, 2006, the TCR-AP reported that Mr. Carey's cross-
examination has been delayed until the relevance of certain
deleted documents to his questioning can be determined.  
According to the report, more than 27,000 files have been
deleted from the computer system of Redchime -- a subsidiary of
Westpoint.  The deletion was revealed in the Federal Court as
Westpoint's receiver, Brian McMaster, sought to gain access to
information in the deleted files.

                    About Westpoint Group

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

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


XCELTEK INTERNET: Commences Wind-Up Proceedings
-----------------------------------------------
Xceltek Internet Services Pty Limited commenced a wind-up of its
operations on July 6, 2006.

The Supreme Court at Knowles Place, Canberra City will hear the
wind-up petition on September 4, 2006, at 10:00 a.m.

The Plaintiff can be reached at:

         Leading Edge Internet Pty Limited
         Moray & Agnew
         Solicitors, Level 5
         CPA Building, 161 London Circuit
         Canberra City, Australian Capital Territory 2601
         Australia
         Telephone:(02) 6262 6922
         Facsimile:(02) 9232 1004


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

AES CORP: Earns US$169 Million in Second Quarter of 2006
------------------------------------------------------
The AES Corporation filed its second quarter financial
statements for the three months ended June 30, 2006, with the
Securities and Exchange Commission on Aug. 7, 2006.

Revenue increased 15% to US$3.0 billion for the three months
ended June 30, 2006, primarily due to higher prices and volume
across each region and favorable foreign currency translation
impacts in Latin America.

In addition to these revenue improvements, gross margin improved
in large part due to the recognition of US$192 million of bad
debt expense in 2005 to fully provision certain municipal debt
at its Brazilian regulated utilities.

Gross margin increased 75% to US$919 million for the three
months ended June 30, 2006, and gross margin as a percentage of
revenue increased to 30.3% for the three months ended June 30,
2006, from 19.9% in 2005.

Revenue increased 14% to US$6.0 billion for the six months ended
June 30, 2006, primarily due to higher prices and volume in
several region and an increase in emission allowance sales in
North America and Europe to US$73 million from US$30 million
last year and favorable foreign currency translation impacts in
Latin America.

As a result, gross margin increased 39% to US$1.9 billion for
the six months ended June 30, 2006, and gross margin as a
percentage of revenue increased to 31.1% for the six months
ended June 30, 2006, from 25.5% in 2005.

The Company reported US$169 million of net income for the three
months ended June 30, 2006, compared with US$85 million of net
income for the same period in 2005.

For the six months ended June 30, 2006, the Company reported net
income of 520 million compared with US$209 million for the same
period in 2005.

At June 30, 2006, the Company's balance sheet showed US$30.973
billion in total assets, US$26.266 billion in total liabilities,
US$2.256 billion in minority interest, and US$2.451 billion
stockholders' equity.

                      Discontinued operations

In May 2006, the Company reached an agreement to sell its
interest in Eden, a regulated utility located in Argentina.  
Governmental approval of the transaction is still pending in
Argentina, but the Company has determined that the sale is
probable at this time.  Eden, AES's wholly owned subsidiary, has
been classified as "held for sale" and reflected as such on the
financial statements.

Eden is a distribution company that is part of the Regulated
Utilities segment.  

The Company recorded a US$66 million impairment charge to adjust
the carrying value of Eden's assets to their estimated net
realizable value.  

The sale is expected to close by the end of the year.

In May 2006, AES agreed to sell AES Indian Queens Power Limited
and AES Indian Queens Operations Limited, (IOP), which is part
of the Competitive Supply segment.  IOP is an Open Cycle Gas
Turbine, located in the United Kingdom.  The sale is expected to
close by the end of the year.

Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?f4b.

                          About AES Corp

The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a  
power company with operations in South America, Europe, Africa,
Asia and the Caribbean.  The Company generates 44,000 megawatts
of electricity through 124 power facilities, and delivers
electricity through 15 distribution companies.

AES's business group in Asia & Middle East is comprised of
electric utilities and generation plants in China, India,
Kazakhstan, Oman, Qatar, Pakistan and Sri Lanka.  Fuels include
coal, diesel, hydro, gas and oil.  AES has been in the region
since 1994, when it acquired the Cili generation plant in China.

                           *     *     *

As reported in the Troubled Company Reporter on May 25, 2006,
Fitch affirmed The AES Corporation's Issuer Default Rating at
'B+'.  Fitch also affirmed and withdrew the ratings for the
company's junior convertible debt.  The Rating Outlook for all
remaining instruments is Stable.

As reported in the Troubled Company Reporter on March 31, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on diversified energy company The AES Corp. to 'BB-' from
'B+'.  S&P said the outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, 2006,
Moody's affirmed the ratings of The AES Corporation, including
its Ba3 Corporate Family Rating and the B1 rating on its senior
unsecured debt.  Moody's said the rating outlook remains stable.


AFFINITY GLOBAL: Creditors Meet to Discuss Wind-Up
--------------------------------------------------
The creditors of Affinity Global Co Ltd convened on August 9,
2006, at Room C, 2/F., Wing Tat Commercial Bldg, 121-125, Wing
Lok Street, Central, Hong Kong.

The meeting was called for creditors to discuss about the
Company's wind-up exercise.


BANK OF CHINA (H.K.): Moody's Reviews C- BFSR for Upgrade
---------------------------------------------------------
Moody's Investors Service on August 11, 2006, has put the C-
Bank Financial Strength Rating of Bank of China (Hong Kong)
Limited and its subsidiary Chiyu Banking Corporation Limited on
review for upgrade.

At the same time, Moody's has affirmed the BFSR of Nanyang
Commercial Bank's -- a Bank of China (Hoing Kong) subsidiary --
at C, and Bank of China Limited's at D.

Bank of China (H.K.), Chiyu Banking Corp., Bank of China,
NanYang Commercial Bank and Bank of China's A2 long-term deposit
and P-1 short-term deposit ratings -- all with positive outlook
-- are unaffected.

"The review for Bank of China H.K. reflects the bank's
significant franchise in Hong Kong and improved financial
performances since its establishment in October 2001," says May
Yan, a Moody's Vice President/Senior Credit Officer.  

"The review will focus on its ability to continually improve
asset quality and profitability as well as its strategies in
response to Hong Kong's mature operating environment and the
increased risks associated with expansion in China," adds Yan.
"In addition, measures taken to enhance the bank's risk
management practices and corporate governance will be among the
review's key focal points."

The affirmation of Bank of China's D- BFSR reflects Moody's
recognition of the progress Bank of China in improving its asset
quality and capital positions through restructuring and its
recent IPOs.

However, these improvements are also largely driven by external
forces, which overshadow the bank's own efforts in
restructuring. In addition, asset quality could still be
vulnerable to economic downturns, while one particular area of
concern is its high special mention loans, which were 12.7% of
total loans at end-2005.

Further positive rating actions for Bank of China would require
the emergence of a track record of continued stabilization in
asset quality and improvements in other stand-alone financial
areas. Other requirements include evidence of strengthened
corporate governance, risk management and other factors that
also lead to sustained improvements in its financial
performance.

Chiyu Banking Corporation Limited, headquartered in Hong Kong,
is a 70% owned subsidiary of Bank of China H.K.  As of December
2005, it had total assets of HK$31 billion (US$4 billion).

Nanyang Commercial Bank, headquartered in Hong Kong, is a fully
owned subsidiary bank of Bank of China H.K. As of December 2005,
it had total assets of HK$95 billion, or US$12 billion.

Bank of China (Hong Kong) Limited, headquartered in Hong Kong,
is the second largest bank in Hong Kong. BOC H.K. is 66% owned
by Bank of China.  As of December 2005, it had total assets of
HK$822 billion, or US$106 billion.

Bank of China Limited, headquartered in Beijing, is the second
largest commercial bank in China. As of December 2005, it had
total assets of CNY4,740 billion, or US$587 billion.


                          *     *     *

Established on October 1, 2001, Bank of China (Hong Kong)
Limited - http://www.bochk.com/- is a locally incorporated  
licensed bank.  It has combined the businesses of ten of the
twelve banks in Hong Kong originally belonging to the Bank of
China Group.  In addition, it holds shares in Nanyang Commercial
Bank Limited and Chiyu Banking Corporation Limited, both of
which are incorporated in Hong Kong, as well as BOC Credit Card
(International) Limited.

Fitch Ratings on June 18, 2006, upgraded the individual rating
of Bank of China Hong Kong Limited to "B", from "B/C".  At the
same time, the agency affirmed the bank's Long-term foreign
currency Issuer Default Rating of "A", its Short-term foreign
currency rating of "F1", and its Support rating of "2".  The
Outlook on the ratings is Stable.


BINA INVESTMENT: Members Resolve to Wind-Up Operations
------------------------------------------------------
Members of Bina Investment Ltd passed a special resolution on
July 26, 2006, to wind-up the Company's operation and Philip
Brendan Gilligan as liquidator.

The Liquidator can be reached at:

         Philip Brendan Gilligan
         7th Floor, Alexandra House
         18 Chater Road, Central
         Hong Kong


BON HONG SHIPPING: Members Opt for Voluntary Wind-Up
----------------------------------------------------
Members of Bon Hung Shipping Agency Ltd resolved on July 26,
2006, to voluntarily wind-up the Company's operations and
appoint Liquidator Leung Chi Wing to oversee the proceedings.

The Liquidator can be reached at:

         Leung Chi Wing
         Office B., 4/F
         Kiu Fu Commercial Bldg
         300 Lockhart Road, Wanchai
         Hong Kong


EGO CHAIN: Final Members' Meeting Set on September 8
----------------------------------------------------
The members of Ego Chain Ltd will convene for their final
meeting on September 8, 2006, 3:00 p.m. at 2804, China Resources
Bldg, 26 Harbour Road, in Wanchai, Hong Kong.

At the meeting, Liquidator Tang Tse Yee will present accounts of
the Company's wind-up and property disposal activities.

The Troubled Company Reporter - Asia Pacific reported on
January 27, 2006, that the shareholders of the Company decided
to voluntarily wind-up the Company's operation.


EURO-POWER CONSULTANTS: Liquidator to Present Wind-Up Report
------------------------------------------------------------
Members of Euro-Power Consultants Ltd will hold a final meeting
on September 8, 2006, 3:45 a.m. at 2804, China Resources Bldg,
26 Harbour Road, in Wanchai, Hong Kong.

During the meeting, Liquidator Tang Tse Yee will report on the
Company's wind-up and property disposal exercises.


FREIGHT SOLUTIONS: Members' Extraordinary Meeting Set on Sept. 1
----------------------------------------------------------------
The extraordinary general meeting of the members of Freight
Solutions International Ltd will be held at Unit 511, 5th Floor,
Tower 1, Silvercord, No.30 Canton Road, Tsimshatsui, Kowloon,
Hong Kong on September 1, 2006, at 11:00 a.m.

The meeting was called for the purpose of:

    -- considering and receiving a certificate of solvency in
       case that the Company be wound-up voluntarily;

    -- appointing joint and several liquidators for the purpose
       of the wind-up affairs and the distribution of the assets
       of the Company.


OCEAN GRAND: Liquidators Confirm CNY667.8-Million Missing
---------------------------------------------------------
Deloitte Touche Tohmatsu, the appointed provisional liquidator
for both Ocean Grand Holdings Ltd and its subsidiary Ocean Grand
Chemicals Holdings Ltd, said that up to CNY667.8 million was
lost in the Company's account after financial irregularities
were made public, The China Knowledge reports.

On July 17, 2006, The Troubled Company Reporter - Asia Pacific
reported that an internal prove on the Company's and its
subsidiaries accounts discovered a total of CNY842 million were
found missing.

According to China Knowledge, Deloitte had previously informed
the Company of the fund transfers in its preliminary findings
but Ocean Grand had chosen not to disclose the information
earlier.  

The liquidator revealed that out of the CNY667.8 million,
CNY158.1 million was transferred from Kenlap Zhuhai, China
Knowledge relates.  Deloitte also said it had managed to uncover
the identities of those to whom CNY468.1 million had been paid.

Moreover, there was another payment of CNY141.33 million to
Ocean Grand Shanshui but Ocean Grand Holdings did not know the
date on which the money was transferred, nor to whom the funds
were paid, China Knowledge adds.

                          *     *     *

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

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'.


ON MERIT LIMITED: Names Cheng as Liquidator
------------------------------------------
On July 26, 2006, members of On Merit Ltd appointed Liquidator
Cheng Faat Ting, Garyto oversee the Company's wind-up.

Mr. Cheng requires the creditors of the Company to submit their
proofs of claim by September 5, 2006, for them to share in any
distribution the Company will make.

The Liquidator can be reached at:

         Cheng Faat Ting, Gary
         8/F., Richmond Commercial Bldg
         109 Argyle Street, Mong Kok
         Kowloon, Hong Kong


OVERSEAS CROWN: Creditors Must Prove Debts by August 21
-------------------------------------------------------
The creditors of Overseas Crown development Ltd are required to
submit their proofs of claim by August 21, 2006, to Liquidator
Ngan Lin Chun, Esther.

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

The Liquidator can be reached at:

         Ngan Lin Chun, Esther
         1902, MassMutual Tower
         38 Gloucester Road, Wanchai
         Hong Kong


RICH MONDE: Members to Receive Wind-Up Report
---------------------------------------------
The members of Rich Monde Overseas Ltd will be receiving
liquidator Yeung Betty Yuen's report on the Company's wind-up.

The presentation of report will be made at Level 28, Three
Pacific Place, 1 Queen's Road East, Hong Kong on September 6,
2006, at 10:30 a.m.


WINSUM ELECTRONIC: Appoints Official Liquidator
-----------------------------------------------
Law Yui Lun was appointed as liquidator of Winsum Electronic
Limited on July 28, 2006.

The Liquidator can be reached at:

         Room 502, 5th Floor
         Prosperous Bldg
         48-52 Des Voeux Road Central
         Hong Kong


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

INDIAN OIL: Books INR1,444-Crore Loss in First Quarter of FY2007
----------------------------------------------------------------
Indian Oil Corporation Ltd registered a net operating loss of
INR1,444 crore during the first quarter ended June 30, 2006, the
Company disclosed in a press release.

However, after considering the profit of INR3,225 crore from the
sale of 20% of its investment in Oil and Natural Gas Corporation
Limited, Indian Oil has reported a net profit of INR1,781 crore
in the first quarter, as compared to a net loss of INR58 crore
during the same period last year, as per the unaudited financial
results declared by the Indian Oil board.  This is mainly due to
under-realization of INR4,898 crore on sale of fuel products
during the first quarter of 2006-07 as against INR3,194 crore in
the same quarter last year.

The sales turnover for the first quarter of 2006-07, however,
jumped 26% to INR53,164 crore from INR42,340 crore in the
corresponding quarter of the previous year.

Indian Oil sold 12.27 million tonnes of petroleum products,
including gas sales, in the domestic market, besides exporting
0.80 million tonnes, in the first quarter of 2006-07.  Its seven
refineries together achieved a throughput of 10.03 million
tonnes and the pipelines network transported 11.71 million
tonnes of crude oil and products.

Meanwhile, Indian Oil expects its financial position to improve
once it receives its share of oil bonds, given the difficulties
in raising retail fuel prices.  The Company hadn't received its
share of oil bonds by the end of the last quarter.

                     About Indian Oil Corp.

Indian Oil was established as Indian Oil Company Limited in
1959.  Indian Oil Corporation was formed in 1964 with the merger
of Indian Refineries Limited with the Indian Oil Company Ltd.  
Indian Oil's countrywide network of over 22,000 sales points is
backed for supplies by its extensive, well spread out marketing
infrastructure comprising 167 bulk storage terminals,
installations and depots, 94 aviation fuelling stations and 87
LPG bottling plants.  Its subsidiary, IBP Co. Ltd, is a stand-
alone marketing company with a nationwide network of over 3,000
retail sales points.

According to press reports, in spite of its large production
capacity and smooth operations, Indian Oil incurred huge losses
as a result of a Government mandate, which prohibits public
sector oil marketing firms from raising fuel prices despite high
global prices.  For years, Indian Oil has been selling fuel at
subsidized prices, which is way below the costs it pays for
importing fuel from overseas markets.  The Company has not been
able to pass on the high prices leading to large under-
recoveries and losses.

In early 2006, the Government has offered a bailout package to
help rescue oil companies, including Indian Oil, from going
bankrupt.  Under the package, the Government issued Indian Oil,
Bharat Petroleum, Hindustan Petroleum and IBP oil bonds worth
INR10,000 crore to INR12,000 crore to compensate them for not
raising LPG and kerosene prices.  The move was expected to
improve their balance sheets.


INDIAN OIL: Sri Lankan Unit Loses Market Share After Price Hike
---------------------------------------------------------------
Sales in Indian Oil Corporation's Sri Lankan subsidiary, Lanka
Indian Oil Corporation, plummeted by 50% after the unit raised
fuel prices, Colombo Page reports.

Lanka Indian Oil increased prices by INR5 per liter of petrol
and diesel following the price hike of its Indian parent in
June.

As reported by the Troubled Company Reporter - Asia Pacific on
June 7, 2006, Indian Oil raised petrol prices by 9.2% and diesel
prices by 6.6% on June 5, 2006.

Lanka Indian Oil once had a 22% share in the Sri Lanka's fuel
market.  However, the Company lost 11% of its market share to
rival Ceylon Petroleum Corporation, which increased prices by
only INR3 per liter, Colombo Page relates.

The latest plunge in market share is an additional blow to the
operations of Lanka Indian Oil, which last month faced a
takeover threat by the Sri Lankan Government.

The TCR-AP reported on July 7, 2006, that the Sri Lankan
Government warned that it may take over Indian Oil's fuel
outlets in the country if the Company does not resume sales
within 30 days.  Indian Oil suspended the sale of petrol at its
outlets last month, citing the Sri Lankan Government's failure
to pay INR7.6 billion in subsidies.

However, the takeover was averted after Indian Oil agreed to
resume importing and selling petrol in Sri Lanka after
discussions with Sri Lanka's Petroleum and Petroleum Resources
Development Minister AHM Fowzie, the TCR-AP said.

                     About Indian Oil Corp.

Indian Oil was established as Indian Oil Company Limited in
1959.  Indian Oil Corporation was formed in 1964 with the merger
of Indian Refineries Limited with the Indian Oil Company Ltd.  
Indian Oil's countrywide network of over 22,000 sales points is
backed for supplies by its extensive, well spread out marketing
infrastructure comprising 167 bulk storage terminals,
installations and depots, 94 aviation fuelling stations and 87
LPG bottling plants.  Its subsidiary, IBP Co. Ltd, is a stand-
alone marketing company with a nationwide network of over 3,000
retail sales points.

According to press reports, in spite of its large production
capacity and smooth operations, Indian Oil incurred huge losses
as a result of a Government mandate, which prohibits public
sector oil marketing firms from raising fuel prices despite high
global prices.  For years, Indian Oil has been selling fuel at
subsidized prices, which is way below the costs it pays for
importing fuel from overseas markets.  The Company has not been
able to pass on the high prices leading to large under-
recoveries and losses.

In early 2006, the Government has offered a bailout package to
help rescue oil companies, including Indian Oil, from going
bankrupt.  Under the package, the Government issued Indian Oil,
Bharat Petroleum, Hindustan
Petroleum and IBP oil bonds worth INR10,000 crore to INR12,000
crore to compensate them for not raising LPG and kerosene
prices.  The move was expected to improve their balance sheets.


SUPER BAZAR: Reliance Submits INR228-crore Offer for Revival
------------------------------------------------------------
The revival of Super Bazar is likely to push through with
Reliance Industries Limited making a INR288-crore bid to turn
around the shopping chain's business, The Financial Express
reports.

According to DNA India, Reliance has submitted the highest bid
for Super Bazar, well above the INR70-crore offered jointly by
the Indian Labour Cooperative Society and Indian Potash Limited.  

Under the revival offer, Reliance will invest INR143 crore for
revamping the chain and expanding into retailing of
pharmaceuticals, fruit and vegetables, online shopping as well
as institutional sales, DNA India says.  Reliance also plans to
inject more or less the same amount in the share capital and
working capital of Super Bazar.  Reliance has projected that
Super Bazar would achieve an annual revenue of INR1,000 crore
within the next in two-three years.

In addition, Reliance also proposed to settle dues of over
INR10 crore to government agencies and INR25.58 crore to
suppliers, The Financial Express reveals.  Reliance also vows to
retain all Super Bazar's staff.

The offer follows a Government decision to invite bids in May
2006 after the Supreme Court asked the Centre to examine ways to
revive the shopping chain business, according to Financial
Express.

My Iris News says that an evaluation committee formed by the
Court has favored Reliance on account of its financial capacity
and development plan for reviving the cooperative.
  
The panel's recommendations have been forwarded to the Supreme
Court, which is expected to take a final decision at the next
hearing, My Iris adds.

The Government has 50% interest holding in Super Bazar, which
has a membership of 40,000 and employee strength of 2,200.  
Super Bazar falls under the purview of Department of Consumers
Affairs and has been under liquidation since 2002 after it
incurred a loss of INR560 million.


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

NEWERA FOOTWEAR: Pefindo Places Ratings on CreditWatch
------------------------------------------------------
Indonesian rating agency PT PEFINDO put the ratings of PT Newera
Footwear Indonesia and its Bond I/2003 amounting to
IDR31.5 billion on Creditwatch, with negative implications,
following the Company's incapability to provide the sinking fund
for the payment of its 11th coupon due on July 20, 2006,
although its Trustee, PT Bank Permata Tbk. had given the Company
14 days grace period for the payment (up to August 10, 2006).   
The 11th coupon payment itself will be due on August 20, 2006.  

In addition, Newera has not fulfilled the required principal
sinking fund of IDR3.15 billion (the grace period was ended on
May 21, 2006).  

                     About Newera Footwear

PT Newera Footwear Indonesia is a footwear distributor in
Indonesia covering daily footwear products including sport and
traveling shoes that are particularly offered to middle to low-
income people, from children to adults.  The Company is a
license holder of Newera brand, while its footwear productions
are subcontracted to several shoes manufacturers in East Java.

                          *     *     *

PT PEFINDO had, on May 30, 2006, downgraded its ratings for the
Company and its IDR31.5-billion Bond I/2003 to "idCCC" from
"idBB+".


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

ISHIKAWAJIMA-HARIMA HEAVY: FTC Slashes Fines in Bid-Rigging Case
----------------------------------------------------------------
The Fair Trade Commission has opted to reduce fines imposed on
Ishikawajima-Harima Heavy Industries, Inc. on its voluntary
disclosure of its involvement in bid rigging for road tunnel
projects, Crisscross News relates.

According to Kyodo News, the Company allegedly rigged bids for
ventilation facilities on road tunnel projects financed by the
Japanese Government and now-defunct state firm Metropolitan
Express Public Corp.

When the FTC initiated investigations Ishikawajima-Harima, the
Company offered to reveal information on its bid-rigging
activities, prompting the agency to reduce its fines by 30%.

                          *     *     *

Headquartered in Tokyo, Ishikawajima-Harima Heavy Industries
Co., Ltd. was established in 1853 as a shipbuilding firm.  As of
March 2006, the Company's capital was worth JPY64.9 billion, and
it has 28 branches in Japan and 12 offices overseas.

As reported in the Troubled Company Reporter - Asia Pacific on
June 5, 2006, Standard & Poor's Ratings Services affirmed its
'BB+' long-term corporate credit and 'BBB-' senior unsecured
debt ratings on the Company.


SANYO ELECTRIC: Teams Up with Quanta to Form Joint Venture Firm
---------------------------------------------------------------
Sanyo Electric Co. plans to form a global alliance with Taiwan-
based Quanta Computer, Inc., in order to jointly purchase parts
and materials, and prepare for the December season, the
Associated Press states.

Sanyo plans to spin off its TV business' development and
purchasing operations, and will put up a new company with Quanta
called Sanyo Visual Technology, Inc., on Oct. 2, 2006, Reuters
News reveals.  Quanta would have a 19% stake in the new firm,
which would have initial capital of JPY100 million.

AP adds that the new firm will take charge of development and
purchasing for Sanyo's global TV business, including older
cathode ray tube TVs as well as the newer liquid-crystal display
panel TVs.

Both firms had started talks to create a joint venture for flat
-panel TVs in March 2006 and had planned to continue, aiming to
finalize negotiations before July 31, 2007, according to
Reuters.

                     About Sanyo Electric

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

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

                          *     *     *

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


SKYLARK CO: Delisting JPY30-Bln Convertible Bonds From LSE
----------------------------------------------------------
Skylark Co. Ltd. is applying to have its JPY30-billion Zero
Coupon Convertible Bonds due 2011 delisted from the Official
List of the Financial Services Authority and the admission to
trading of the Bonds on the EEA Regulated Market of the London
Stock Exchange plc cancelled.

The Company redeemed all of the outstanding Bonds on July 28 in
accordance with the Supplemental Trust Deed dated July 14 and
the terms and conditions of the Bonds.  The Company has redeemed
the Bonds as part of an ongoing management buy-out following a
successful tender offer for the shares of the Company by SNC
Investment Co., Ltd.  SNC plans to make the Company its wholly
owned subsidiary pursuant to a series of procedures to be taken
following the tender offer.

Accordingly, the Company is applying to the Financial Services
Authority and the London Stock Exchange plc, for the
cancellations, respectively, of:

   -- the listing of the Bonds on the Official List; and

   -- the trading of the Bonds on the EEA Regulated Market of
      the London Stock Exchange plc.

It is anticipated that cancellation of listing and admission to
trading will take effect from August 31.

                        About the Company

Headquartered in Tokyo, Japan, Skylark Co. Ltd. --
http://www.skylark.co.jp/-- operates a chain of family  
restaurants in Japan through the following divisions:
Restaurants and food; Construction and maintenance and Other.  
The Restaurants and food division engages in restaurant chain
operations, sale of food materials and prepared foods, food
transportation and cleaning.  The Construction division deals
with design, construction and repairs of restaurants and
maintenance of building facilities.  The Other business division
deals with wall paper, manufacture and sale of automobile goods,
real estate buying and selling and hotels and condominium
operations.

                          *     *     *

As reported in TCR-AP on July 26, Standard & Poor's Ratings
Services lowered its long-term corporate credit and senior
unsecured debt ratings on Skylark Co. Ltd. by two notches to
'BB' from 'BBB-', on expectations of weakening profitability and
a deterioration in the Company's debt structure over the next
one to two years, due to an increase in bank borrowings to carry
out a management buyout and to enhance the profitability of its
existing restaurants.

At the same time, S&P removed Skylark's ratings from CreditWatch
where they were placed with negative implications on June 9,
2006, after its announcement that it would conduct an MBO
through a tender offer for Skylark shares, aimed at privatizing
the Company.


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

AGRICULTURAL COOPERATIVE: Moody's Raises Short-Term Debt Rating
---------------------------------------------------------------
Moody's Investors Service raised National Agricultural
Cooperative Federation's Short-Term Debt Rating from P-2 to P-1.
The revised rating has a stable outlook.

National Agricultural's Senior/Subordinated Debt of 'A3'/'Baa1',
Long-Term/Short-Term Deposit of 'A3'/'P-2' and Bank Financial
Strength Rating of 'D-' are unaffected.  The outlook is positive
for the long-term ratings and stable for the short-term rating
and BFSR.

     Moody's Upgrades Ratings for 11 Financial Institutions

Moody's has raised its ratings for National Agricultural
Cooperative Federation, together with 10 other Korean financial
institutions:

   * Export-Import Bank of Korea,
   * Hana Bank,
   * Industrial Bank of Korea,
   * Kookmin Bank,
   * Korea Development Bank,
   * Korea Exchange Bank,
   * Shinhan Bank,
   * Standard Chartered First Bank,
   * Woori Bank, and
   * Woori Finance Holdings.

Moody's says that the upgrades for the short-term ratings
incorporate the "stronger liquidity positions at the banks since
the crisis and their ongoing systemic importance."

Specifically, for the nationwide commercials banks, the higher
rating takes into account their heavy dependence on retail
deposits for funding.  For the government-owned banks, the
rating considers their strong explicit access to and support
from the central bank.

       About National Agricultural Cooperative Federation

National Agricultural Cooperative Federation --
http://www.nonghyup.com/-- and its member cooperatives were  
established in 1961 to enhance the social and economic status of
member farmers and balance the development of the national
economy.  The Cooperatives main business activity is the
provision of specialized agricultural and commercial credit and
banking services.  It has overseas branches in Belgium, China,
Japan and the United States.

Moody's Investors Service gave NACF a 'D-' Bank Financial
Strength Rating effective on June 10, 2003.


HANA BANK: Moody's Upgrades Long- and Short-Term Debt Ratings
-------------------------------------------------------------
Moody's Investors Service raised Hana Bank's Long-Term Senior
Debt Rating to 'A3' from 'Baa1' and its Long-Term Deposits
Rating to 'A3' from 'Baa1'.  The revised long-term ratings have
a positive outlook.

Moreover, Moody's also raised Hana Bank's short-term debt rating
to P-1 from P-2.  The revised short-term rating has a stable
outlook.

Hana's Short-Term Deposit Rating of P-2 and Bank Financial
Strength Rating of D+ are unaffected.  Outlook for both are
stable.

The rating actions for Hana Bank reflects its success in its
implementation of strategic initiatives, which has allowed the
bank to develop significant and defensible franchises post-Asian
financial crisis, says Beatrice Woo, a Moody's VP/Senior Credit
Officer.

Ms. Woo adds that during the transition process, Hana Bank, as
well as other Korean financial institutions, has added retail
businesses, although it resulted in huge credit costs in some
cases, to its traditional roles of corporate lender.
Nonetheless, Ms. Woo says, the corporate sector is now
considerably healthier, with the chaebols having reformed
internally and reduced their leverage.

"Therefore, the franchises of [Hana Bank] have evolved such that
their market presence is increasingly meaningful. Currently,
Shinhan Bank is positioned as Korea's second largest bank, Woori
Bank third and Hana Bank fourth," Woo says.

In Moody's view, the banks, including Hana Bank, have increased
their importance and are resilient players in a concentrated and
highly supportive system.  Consequently, the ratings agency
believes that the banks are vital to the Korean banking system,
given their 56% control of system deposits.

As for the short-term ratings, the upgrades incorporate the
stronger liquidity positions at the banks since the crisis and
their ongoing systemic importance.  Specifically, for the
nationwide commercials banks, the higher rating takes into
account their heavy dependence on retail deposits for funding.
For the government-owned banks, the rating considers their
strong explicit access to and support from the central bank.

                        About Hana Bank

Hana Bank -- http://www.hanabank.com/-- provides financial   
services to individuals and corporate clients such as
international banking, trust business and security investment
business through 298 domestic branches and one head office.

Fitch Ratings gave Hana Bank an Individual Rating of B/C.

Moody's Investors Service gave the bank a D+ Bank Financial
Strength Rating.


HYNIX SEMICONDUCTOR: Sets Aside KRW1.26Tril for R&D & Production
----------------------------------------------------------------
Hynix Semiconductor Inc. has said that it will spend
KRW1.26 trillion to manufacture more chips, according to
Bloomberg News.

Bloomberg says that the investment, already approved by the
board of directors, will specifically be used to update
production lines, and spent on research and development.

The spending is part of the KRW3.6 trillion that the company
budgeted for capital expenditure this year, Bloomberg adds,
citing Hynix Investor Relations Head James Kim.

                   About Hynix Semiconductor

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

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


INDUSTRIAL BANK OF KOREA: Moody's Raises Short-Term Debt Rating
---------------------------------------------------------------
Moody's Investors Service raised Industrial Bank of Korea's
Short-Term Debt Rating from 'P-2' to 'P-1'.  The revised rating
has a stable outlook.

These ratings were unchanged:

   * Senior/Subordinated Debt of A3/Baa1,
   * Long-Term/Short-Term Deposit of A3/P-2, and
   * Bank Financial Strength Rating of D-.

The outlook is positive for the long-term ratings and BFSR, but
stable for the short-term rating.

     Moody's Upgrades Ratings for 11 Financial Institutions

On August 10, 2006, Moody's has raised the rating for Industrial
Bank of Korea, together with 10 other Korean financial
institutions:

   * Export-Import Bank of Korea,
   * Hana Bank,
   * Kookmin Bank,
   * Korea Development Bank,
   * Korea Exchange Bank,
   * National Agricultural Cooperative Federation,
   * Shinhan Bank,
   * Standard Chartered First Bank,
   * Woori Bank, and
   * Woori Finance Holdings.

Moody's says that the upgrades for the short-term ratings
incorporate the "stronger liquidity positions at the banks since
the crisis and their ongoing systemic importance."  
Specifically, for the nationwide commercials banks, the higher
rating takes into account their heavy dependence on retail
deposits for funding.  For the government-owned banks, the
rating considers their strong explicit access to and support
from the central bank.

                 About Industrial Bank of Korea

Industrial Bank of Korea -- http://www.kiupbank.co.kr/-- is  
South Korea's largest lender to small-sized companies.  It
provides commercial banking services to small and mid-sized
companies.  The Bank provides loans, discount bills, deposits,
installment savings deposits, domestic remittances, foreign
exchange, safe deposit boxes, and payment acceptances and
guarantees.  IBK also provides PC banking and telephone banking
services.

Moody's Investors Service gave Industrial Bank of Korea a Bank
Financial Strength Rating of 'D' effective January 24, 2006.


KOOKMIN BANK: Moody's Upgrades Short-Term Debt Ratings
------------------------------------------------------
Moody's Investors Service raised Kookmin Bank's Short-Term Debt
Rating from 'P-2' to 'P-1.'  The revised rating has a stable
outlook.

Kookmin's Senior/Subordinated Debt of 'A3'/'Baa1', Long-
Term/Short-Term Deposit of 'A3'/'P-2' and Bank Financial
Strength Rating of 'D+', which is on review for possible
downgrade, are unaffected.  The outlook is positive for the
long-term ratings and stable for the short-term ratings.

     Moody's Upgrades Ratings for 11 Financial Institutions

On August 10, 2006, Moody's has raised the rating for Kookmin
Bank, together with 10 other Korean financial institutions:

   * Export-Import Bank of Korea,
   * Hana Bank,
   * Industrial Bank of Korea,
   * Korea Development Bank,
   * Korea Exchange Bank,
   * National Agricultural Cooperative Federation,
   * Shinhan Bank,
   * Standard Chartered First Bank,
   * Woori Bank, and
   * Woori Finance Holdings.

Moody's says that the upgrades for the short-term ratings
incorporate the "stronger liquidity positions at the banks since
the crisis and their ongoing systemic importance."  
Specifically, for the nationwide commercials banks, the higher
rating takes into account their heavy dependence on retail
deposits for funding.  For the government-owned banks, the
rating considers their strong explicit access to and support
from the central bank.

                       About Kookmin Bank

Kookmin Bank -- http://inf.kbstar.com/-- provides various  
commercial banking services, such as deposits, credit cards,
trust funds, foreign exchange transactions, and corporate
finance.  The bank also offers Internet banking services.

                          *     *     *

Moody's Investors Service gave Kookmin Bank a Bank Financial
Strength rating of D+ effective March 27, 2006.

Fitch Ratings gave the bank a B/C rating.


KOREA DEVELOPMENT BANK: Short-Term Debt Rating Raised by Moody's
----------------------------------------------------------------
Moody's Investors Service raised Korea Development Bank's Short-
Term Debt Rating from 'P-2' to 'P-1'.  The revised rating has a
stable outlook.

KDB's Senior Debt of 'A3', Long-Term/Short-Term Deposit of
'A3'/'P-2' and Bank Financial Strength Rating of 'D-' are
unaffected.  The outlook is positive for the long-term ratings
and stable for the short-term rating and BFSR.

     Moody's Upgrades Ratings for 11 Financial Institutions

On August 10, 2006, Moody's has raised the rating for Korea
Development Bank, together with 10 other Korean financial
institutions:

   * Export-Import Bank of Korea,
   * Hana Bank,
   * Industrial Bank of Korea,
   * Kookmin Bank,
   * Korea Exchange Bank,
   * National Agricultural Cooperative Federation,
   * Shinhan Bank,
   * Standard Chartered First Bank,
   * Woori Bank, and
   * Woori Finance Holdings.

Moody's says that the upgrades for the short-term ratings
incorporate the "stronger liquidity positions at the banks since
the crisis and their ongoing systemic importance."  
Specifically, for the nationwide commercials banks, the higher
rating takes into account their heavy dependence on retail
deposits for funding.  For the government-owned banks, the
rating considers their strong explicit access to and support
from the central bank.

                  About Korea Development Bank

Korea Development Bank -- http://www.kdb.co.kr/-- is South  
Korea's long-term funds provider to major industrial projects.
The company is wholly owned by the Korean Government.  KDB also
offers short and long-term loans, investments, guarantees and
trusts to international finance.  Its major funding sources are
Industrial Finance Bonds, client deposits, special-purpose funds
and foreign-currency funds.

Moody's Investors Service gave KDB a 'D-' Bank Financial
Strength Rating effective on January 24, 2006.


KOREA EXCHANGE BANK: Moody's Raises Short-Term Rating
-----------------------------------------------------
Moody's Investors Service raised the Short-Term Debt and Deposit
Ratings for Korea Exchange Bank to 'P-2' from 'P-3'.  The
revised debt rating remains on review for possible upgrade while
the revised deposit rating carries a stable outlook.

KEB's Senior/Subordinated Debt of 'Baa2'/'Baa3' and Long-Term
Deposit of 'Baa2' remain on review for possible upgrade.  The
Bank Financial Strength Rating of 'D' is unaffected and has a
positive outlook.

     Moody's Upgrades Ratings for 11 Financial Institutions

On August 10, 2006, Moody's has raised the rating for Korea
Exchange Bank, together with 10 other Korean financial
institutions:

   * Export-Import Bank of Korea,
   * Hana Bank,
   * Industrial Bank of Korea,
   * Kookmin Bank,
   * Korea Development Bank,
   * National Agricultural Cooperative Federation,
   * Shinhan Bank,
   * Standard Chartered First Bank,
   * Woori Bank, and
   * Woori Finance Holdings.

Moody's says that the upgrades for the short-term ratings
incorporate the "stronger liquidity positions at the banks since
the crisis and their ongoing systemic importance."  
Specifically, for the nationwide commercials banks, the higher
rating takes into account their heavy dependence on retail
deposits for funding.  For the government-owned banks, the
rating considers their strong explicit access to and support
from the central bank.


LG CARD: Three Groups Submit Final Bids
---------------------------------------
Korea Development Bank has announced that three groups have
submitted final bids for a majority stake in LG Card Co. Ltd.,
Reuters states.

According to the report, the bids were submitted by Shinhan
Financial Group, which analysts say is the most likely buyer;
Hana Financial Group; and the National Agricultural Cooperative
Federation.  Each has teamed with various partners.

Earlier reports by the Troubled Company Reporter - Asia Pacific
state that Hana Financial and MBK Partners LLC forged a
strategic alliance in the acquisition of LG Card, while the NACF
sought the help of Woori Financial Group in putting up some
KRW500 billion.

Reuters adds that the buyer is expected to check LG Card's books
in September 2006 and sign the contract in October.  The buyer
will then buy shares from LG Card's minority shareholders on the
market.

Fourteen creditors holding 82% of the credit card issuer are
offering a stake of between 51% and 72% in LG Card.

Another TCR-AP report on August 9, 2006, mentioned that the
reins of the card firm were handed over to KDB and other
creditors in 2004 after they rescued it from bankruptcy through
a KRW5-trillion debt-for-equity swap and a further KRW1 trillion
in bailout funds.

                       About LG Card Co.

Headquartered in Seoul Korea, LG Card Co. --
http://www.lgcard.com/-- provides installment finance services  
and credit card, as well as leasing services to credit worthy
companies while acquiring valuable assets from merchant banks
and leasing firms.  LG Card also finances families wishing to
purchase big ticket items such as automobiles, appliances and
computers.

At the end of October 2003, LG Card had KRW3.24 trillion more
debt than assets and had faced threats of liquidity crisis and
court receivership.  LG Card has been in the hands of creditors
since it was rescued from bankruptcy through a KRW5-trillion
(US$4.78 billion) debt-for-equity swap and a further KRW1
trillion bailout in late 2004.  Creditors are hoping to recover
the bailout amount through a sale of the credit card issuer in
2006.


SHINHAN BANK: Moody's Upgrades Debt Ratings
-------------------------------------------
Moody's Investors Service raised Shinhan Bank's Long-Term Senior
Debt Rating to 'A3' from 'Baa1' and its Long-Term Deposits
Rating to 'A3' from 'Baa1'.  Both long-term ratings have a
positive outlook.

Shinhan's Short-Term Debt Rating was also raised to 'P-1' from
'P-2'.  

These ratings are affected:

   * Senior/Subordinated/Hybrid Tier 1 Debt raised to
     'A3/Baa1/Baa2' from 'Baa1/Baa2/Baa3';
   * Long-Term Deposit raised to 'A3' from 'Baa1'; and
   * Short-Term Debt raised to 'P-1' from 'P-2'.

The outlook is positive for the long-term ratings and stable for
the short-term rating.

Shinhan's Short-Term Deposit Rating of P-2 and Bank Financial
Strength Rating of D+ are unaffected.  Both ratings have stable
outlook.

     Moody's Upgrades Ratings for 11 Financial Institutions

On August 10, 2006, Moody's Investors Service has raised the
ratings for Shinhan Bank, as well as 10 other Korean financial
institutions:

   * Export-Import Bank of Korea,
   * Hana Bank,
   * Industrial Bank of Korea,
   * Kookmin Bank,
   * Korea Development Bank,
   * Korea Exchange Bank,
   * National Agricultural Cooperative Federation,
   * Standard Chartered First Bank,
   * Woori Bank, and
   * Woori Finance Holdings.

Moody's Vice-President and Senior Credit Officer Beatrice Woo
said that the rating actions for Shinhan Bank, together with
Hana Bank and Woori Bank, "reflect their success in their
implementation of strategic initiatives which has allowed them
to develop significant and defensible franchises post-Asian
financial crisis."

Moody's said that the banks have increased their importance and
are resilient players in a concentrated and highly supportive
system.  Consequently, Moody's believes that the banks are
"vital to the Korean banking system."  Kookmin, Hana, Woori and
Shinhan currently have 56% control of system deposits.

"Thus, the three banks should be rated at levels similar to
Kookmin Bank," Moody's said.

Kookmin Bank currently has these ratings:

   * Short-Term Debt: P-1
   * Senior Subordinated Debt: A3/Baa1,
   * Long-Term/Short-Term Deposit: A3/P-2
   * BFSR: D+

As for the short-term ratings, Moody's adds, the upgrades
incorporate the stronger liquidity positions at the banks since
the crisis and their ongoing systemic importance.  Specifically,
for the nationwide commercials banks, the higher rating takes
into account their heavy dependence on retail deposits for
funding.  For the government-owned banks, the rating considers
their strong explicit access to and support from the central
bank.

                       About Shinhan Bank

Headquartered in Taepyeong-no, Seoul, Shinhan Bank --
http://www.shinhan.com-- was established in 1982 with capital  
from Korean residents in Japan.  It is Korea's fourth largest
bank by assets -- second largest after merging with Chohung Bank
-- holding a 9% share of deposits and 11% of loans.  The bank
has developed a strong franchise in the consumer as well as
small and medium-sized enterprise segments.  In September 2001,
it formed a holding company, SFG, under which it and five other
affiliates became stable companies.  Since then, the Shinhan
Financial Group has expanded its organizational structure to
include 11 subsidiaries and is now Korea's second largest
financial group.

Its merger with Chohung Bank was finalized in April 2006.

The Troubled Company Reporter - Asia Pacific reported on March
16, 2006, that Moody's Investors Service has raised Shinhan
Bank's Bank Financial Strength Rating to D+ from D.  The revised
rating carries a stable outlook.  The higher BFSR reflects the
bank's sustained financial fundamentals upon its merger with
affiliate Chohung Bank.

Despite Moody's initial concerns, Chohung Bank's credit-
worthiness under its parent, Shinhan Financial Group, has
improved substantially.  Therefore, the absorption of Chohung
Bank into Shinhan Bank will not dilute the financial health of
the combined bank as greatly anticipated at the time of the
acquisition.  Nonetheless, the financial fundamentals place
Shinhan Bank at the low end of the rating band.


STANDARD CHARTERED FIRST BANK: Moody's Raises ST Debt Ratings
-------------------------------------------------------------
Moody's Investors Service raised Standard Chartered First Bank's
Short-Term Debt Rating from 'P-2' to 'P-1'.  The revised rating
has a stable outlook.

SCFB's Senior/Subordinated Debt Rating of 'A3'/'Baa1', Long-
Term/Short-Term Deposit Rating of 'A3'/'P-2' and Bank Financial
Strength Rating of 'D+' are unaffected.  The outlook for these
ratings is stable.

Moody's raised the ratings for SCFB, together with 10 Korean
financial institutions:

   * Export-Import Bank of Korea,
   * Hana Bank,
   * Industrial Bank of Korea,
   * Kookmin Bank,
   * Korea Development Bank,
   * Korea Exchange Bank,
   * National Agricultural Cooperative Federation,
   * Shinhan Bank,
   * Woori Bank, and
   * Woori Finance Holdings.

Moody's says that the upgrades for the short-term ratings
incorporate the 'stronger liquidity positions at the banks since
the crisis and their ongoing systemic importance.'  
Specifically, for the nationwide commercials banks, the higher
rating takes into account their heavy dependence on retail
deposits for funding.  For the government-owned banks, the
rating considers their strong explicit access to and support
from the central bank.

                      About SC First Bank

Standard Chartered First Bank Korea Ltd. --
http://www.scfirstbank.com/-- is a commercial bank that offers   
a  wide range of financial services.  The company's offerings
include loans, deposits, credit card, trust accounts, financial
derivative transactions, corporate banking, consumer banking,
and investment banking services.  SC First Bank is the sixth
largest commercial bank in Korea with total assets of KRW60.2
trillion as of March 31, 2006.  Through its nationwide network
of 404 branch offices, SC First Bank serves some 3.5 million
clients in Korea.

Moody's Investors Service gave SC First Bank a Bank Financial
Strength Rating of 'D+'.

Fitch Ratings gave the bank a 'C' Individual Rating.


TRIGEM COMPUTER: Sees KRW20-30 Bil. Operating Profit Upon Sale
--------------------------------------------------------------
TriGem Computer, Inc., expects to achieve KRW20,000,000,000 to
KRW30,000,000,000 in operating profit with the sale of its
assets and the conclusion of its corporate reorganization.

TriGem commenced corporate reorganization proceedings in May
2005 due to losses from investment in subsidiaries, low profits
from its Original Design Manufacturer business, and subsequent
decrease in its credit lines.

TriGem is selling its assets through an auction in accordance
with a corporate reorganization plan agreed to by TriGem's
creditors and shareholders, and approved by the Suwon District
Court in South Korea, in January 2006.  TriGem will use the sale
proceeds to pay debt and stabilize its operations.

In a teaser memorandum sent to potential investors on August 7,
2006, TriGem said that as a result of the commencement of
corporate reorganization proceedings, it suffered from:

   (i) lowered sales due to loss of confidence in the company;

  (ii) difficulty in improving purchasing terms due to loss of
       bargaining power with parts and components vendors; and

(iii) increased working capital -- longer Accounts Receivable
       turnover days and shorter Accounts Payable turnover days
       -- resulting in operating losses in the first quarter of
       2006.

However, TriGem says that it is starting to recover market
share.  Working capital turnovers have also been improving.  
While the company paid cash upfront immediately following the
commencement of corporate reorganization proceedings, it
currently has 15-day trade credit, which is expected to extend
to 30 days by yearend.

                      TriGem Computer, Inc.
                  Condensed Financial Statement
                        (KRW in millions)

                            Year 2005       Q1 2006
                            ---------       -------
   Current Assets          KRW485,824    KRW195,769
   Fixed Assets               109,177        96,630
                            ---------     ---------
      Total Assets            595,001       292,400

   Current liabilities        273,680        46,835
   Long-term liabilities      615,206       228,819
                            ---------     ---------
      Total liabilities       888,886       275,654

   Paid-in Capital            177,444        20,086
                            ---------     ---------
      Total Equity           (293,884)       16,745

   Revenue                    757,220       127,764
   Gross Profit                63,009        18,399
   Operating Profit          (264,018)         (950)
   Ordinary Income           (409,825)        5,756
                            ---------     ---------
   Net Income                (409,825)      281,186
                            =========     =========

TriGem also reports that as of March 31, 2006, it has confirmed
reorganization debt of KRW342,000,000,000 -- consisting of
KRW75,000,000,000 of secured debt and KRW267,000,000,000 in
unsecured debt.

TriGem also has unconfirmed and unsecured reorganization debt of
KRW32,000,000,000.  However, the amount payable in cash if
confirmed, is KRW16,000,000,000.

TriGem also relates that claims in legal dispute total
KRW226,000,000,000.  The amount payable in cash if all disputes
are ruled against TriGem is KRW92,000,000,000.

According to Samjong KPMG FAS Inc., TriGem's lead M&A advisors,
the company, as of March 2006, has a tax loss carryforward of
KRW18,000,000,000 and future tax deductible temporary
differences of KRW518,000,000,000.  Consequently, TriGem notes,
the acquirer of its assets may have tax saving benefits.

                          About TriGem

Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer
Inc. -- http://www.trigem.com/--  manufactures desktop PCs,  
notebook PCs, LCD monitors, printers, scanners, other computer
peripherals, and PIDs and supplies over four million PCs a year
to clients all over the world.

The Troubled Company Reporter - Asia Pacific reported on June
20, 2005, that the Suwon District Court has authorized TriGem's
receivership and gave it a chance to revive its operations.  The
Suwon Court then appointed the Company's former president and
chief executive officer Park Il-hwan as supervisor.

Mr. Park, also as TriGem's Foreign Representative, filed a
chapter 15 petition on Nov. 3, 2005, with the United States
Bankruptcy Court for the Central District of California (Bankr.
C.D. Calif. Case No. 05-50052), seeking recognition of TriGem's
case pending under the Corporate Reorganization Act in Korea as
a foreign main proceeding.  Charles D. Axelrod, Esq., at Stutman
Treister & Glatt, P.C., represents the Foreign Representative in
the U.S.

TriGem America Corporation, an affiliate of the Debtor, filed
for chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif.
Case No. 05-13972).  TriGem Texas, Inc., another affiliate of
the Debtor, also filed for  chapter 11 protection on June 8,
2005 (Bankr. C.D. Calif. Case No. 05-14047). (TriGem Bankruptcy
News, Issue No. 3 Bankruptcy Creditors' Service, Inc., 215/945-
7000).


TRIGEM COMPUTER: Korean Development Bank Owns Majority Stake
------------------------------------------------------------
Korea Development Bank has become the majority shareholder of
TriGem Computer, Inc., following the capital reduction and debt
to equity swaps pursuant to a corporate reorganization plan for
TriGem approved by the Suwon District Court in South Korea, on
January 5, 2006.

TriGem disclosed in a memorandum provided to potential investors
on August 7, 2006, that Korean Development Bank currently owns a
55.97% stake in the company.

                          About TriGem

Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer
Inc. -- http://www.trigem.com/--  manufactures desktop PCs,  
notebook PCs, LCD monitors, printers, scanners, other computer
peripherals, and PIDs and supplies over four million PCs a year
to clients all over the world.

The Troubled Company Reporter - Asia Pacific reported on June
20, 2005, that the Suwon District Court has authorized TriGem's
receivership and gave it a chance to revive its operations.  The
Suwon Court then appointed the Company's former president and
chief executive officer Park Il-hwan as supervisor.

Mr. Park, also as TriGem's Foreign Representative, filed a
chapter 15 petition on Nov. 3, 2005, with the United States
Bankruptcy Court for the Central District of California (Bankr.
C.D. Calif. Case No. 05-50052), seeking recognition of TriGem's
case pending under the Corporate Reorganization Act in Korea as
a foreign main proceeding.  Charles D. Axelrod, Esq., at Stutman
Treister & Glatt, P.C., represents the Foreign Representative in
the U.S.

TriGem America Corporation, an affiliate of the Debtor, filed
for chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif.
Case No. 05-13972).  TriGem Texas, Inc., another affiliate of
the Debtor, also filed for  chapter 11 protection on June 8,
2005 (Bankr. C.D. Calif. Case No. 05-14047). (TriGem Bankruptcy
News, Issue No. 3 Bankruptcy Creditors' Service, Inc., 215/945-
7000).


TRIGEM COMPUTER: Slashes Workforce By More Than Half
----------------------------------------------------
TriGem Computer, Inc., has reduced its workforce to 244
employees from 712 at yearend 2004, the Korean computer maker
said in an August 7, 2006 memorandum provided to potential
investors in connection with the potential sale of its assets.

TriGem does not have a labor union and has handled labor-
management discussions and grievances through a joint
consultation system since 1984.

TriGem also told potential investors that it has not experienced
a single labor dispute, and expects full cooperation from its
labor group with respect to the sale.

                          About TriGem

Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer
Inc. -- http://www.trigem.com/--  manufactures desktop PCs,  
notebook PCs, LCD monitors, printers, scanners, other computer
peripherals, and PIDs and supplies over four million PCs a year
to clients all over the world.

The Troubled Company Reporter - Asia Pacific reported on June
20, 2005, that the Suwon District Court has authorized TriGem's
receivership and gave it a chance to revive its operations.  The
Suwon Court then appointed the Company's former president and
chief executive officer Park Il-hwan as supervisor.

Mr. Park, also as TriGem's Foreign Representative, filed a
chapter 15 petition on Nov. 3, 2005, with the United States
Bankruptcy Court for the Central District of California (Bankr.
C.D. Calif. Case No. 05-50052), seeking recognition of TriGem's
case pending under the Corporate Reorganization Act in Korea as
a foreign main proceeding.  Charles D. Axelrod, Esq., at Stutman
Treister & Glatt, P.C., represents the Foreign Representative in
the U.S.

TriGem America Corporation, an affiliate of the Debtor, filed
for chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif.
Case No. 05-13972).  TriGem Texas, Inc., another affiliate of
the Debtor, also filed for  chapter 11 protection on June 8,
2005 (Bankr. C.D. Calif. Case No. 05-14047). (TriGem Bankruptcy
News, Issue No. 3 Bankruptcy Creditors' Service, Inc., 215/945-
7000).


WOORI BANK: Moody's Upgrades Long-Term Debt & Deposit Ratings
-------------------------------------------------------------
Moody's Investors Service raised Woori Bank's Long-Term Senior
Debt Rating to 'A3' from 'Baa1' and its Long-Term Deposit Rating
also to 'A3' from 'Baa1'.  Both long-term ratings have a
positive outlook.

Woori's Short-Term Deposit Rating of 'P-2' and Bank Financial
Strength Rating of 'D+' are unaffected.  The outlook for ratings
is stable;

Moody's has raised the ratings for Woori Bank, together with 10
other Korean financial institutions:

   * Export-Import Bank of Korea,
   * Hana Bank,
   * Industrial Bank of Korea,
   * Kookmin Bank,
   * Korea Development Bank,
   * Korea Exchange Bank,
   * National Agricultural Cooperative Federation,
   * Shinhan Bank,
   * Standard Chartered First Bank,
   * Woori Finance Holdings.

Moody's Vice-President and Senior Credit Officer Beatrice Woo
said that the rating actions for Woori Bank, together with
Shinhan Bank and Hana Bank, "reflect their success in their
implementation of strategic initiatives which has allowed them
to develop significant and defensible franchises post-Asian
financial crisis."

Moody's said that the banks have increased their importance and
are resilient players in a concentrated and highly supportive
system.  Consequently, Moody's believes that the banks are
"vital to the Korean banking system."  Kookmin, Hana, Woori and
Shinhan currently have 56% control of system deposits.

"Thus, the three banks should be rated at levels similar to
Kookmin Bank,"  Moody's said.

Kookmin Bank currently has the following ratings:

   * Short-Term Debt: P-1
   * Senior Subordinated Debt: A3/Baa1,
   * Long-Term/Short-Term Deposit: A3/P-2
   * BFSR: D+

As for the short-term ratings, Moody's adds, the upgrades
incorporate the stronger liquidity positions at the banks since
the crisis and their ongoing systemic importance.  Specifically,
for the nationwide commercials banks, the higher rating takes
into account their heavy dependence on retail deposits for
funding. For the government-owned banks, the rating considers
their strong explicit access to and support from the central
bank.

                         About Woori Bank

Woori Bank -- http://www.wooribank.com/-- is a government-owned  
bank headquartered in Seoul, Korea.  The bank was established in
2002, and includes the former Hanbit Bank, Sangup Bank and Hanil
Bank.  It is a part of the Woori Financial Group.  It has
branches all over the world, including New York, Los Angeles,
Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore,
Moscow, London, and Dhaka.

                          *     *     *

Fitch Ratings gave Woori Bank an individual rating of 'B/C'
effective July 20, 2005.

Moody's Investors Service gave Woori a 'D+' Bank Financial
Strength Rating effective March 14, 2006.

Standard & Poor's Ratings Services gave Woori Bank a 'C+' Bank
Financial Strength Rating.


WOORI FINANCE HOLDINGS: Moody's Raises Issuer Rating to 'Baa2'
--------------------------------------------------------------
Moody's Investors Service raised the Issuer Rating for Woori
Finance Holdings Co. Ltd. to 'Baa2' from 'Baa3'.

The rating for Woori Finance Holdings -- whose claims are
structurally subordinated to Woori Bank -- was adjusted in
conjunction with the raising of Woori Bank's ratings.  Moody's
raised Woori Bank's Long-Term Senior Debt Rating to 'A3' from
'Baa1' and its Long-Term Deposits also to 'A3' from 'Baa1'.

Moody's has raised the ratings Woori Finance, together with 10
other Korean financial institutions:

   * Export-Import Bank of Korea,
   * Hana Bank,
   * Industrial Bank of Korea,
   * Kookmin Bank,
   * Korea Development Bank,
   * Korea Exchange Bank,
   * National Agricultural Cooperative Federation,
   * Shinhan Bank,
   * Standard Chartered First Bank, and
   * Woori Bank.

                  About Woori Finance Holdings

Woori Finance Holdings Co., Ltd. -- http://www.woorifg.com-- is  
a holding company of Woori Bank, Kwangju Bank, Kyongnam Bank,
and Woori Credit Card.  The Company manages and controls its
financial subsidiaries.  It engages in a range of businesses,
including commercial banking, credit cards, capital markets
activities, international banking, asset management, and
bancassurance.

Fitch Ratings gave Woori Finance Holdings a 'B/C' Individual
Rating effective on September 30, 2005.


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

AHB HOLDINGS: SC Denies Request for Another Extension
-----------------------------------------------------
The Securities Commission rejects AHB Holdings Berhad's
application for a further extension to complete its proposal to
settle a profit guarantee shortfall.

As reported by the Troubled Company Reporter - Asia Pacific on
June 16, 2006, the Company submitted the application through
December 7, 2006.  According to the TCR-AP, on November 3, 2003,
AHB Holdings, formerly known as Artwright Holdings, entered into
an agreement with Yong Yoke Keong, Iskandar Holdings Sdn Bhd and
Yong Chew Keat for a settlement relating to the shortfall in the
profit guarantee that was given by the Guarantors pursuant to
the listing of the Company on the Second Board of the Kuala
Lumpur Stock Exchange on May 21, 1996.

The Proposed Settlement will involve the restricted issue on a
non-renounceable basis of free warrants to the existing
shareholders of the Company, other than the Guarantors and
person connected to the Guarantors.  A nominal amount issue
price of MYR1 due to the Company as consideration for the
Warrants will be borne by the Guarantors.

The SC's latest decision takes into account the fact the Company
had been given more than 18 months to implement the proposed
settlement.  According to the SC, AHB had not taken the
necessary action to ensure that the proposed settlement could be
completed within the approved timeframe.

AHB says its board would discuss its next course of action
regarding the proposed settlement.

                    About Artwright Holdings

Headquartered in Kuala Lumpur, Malaysia, Artwright Holdings
Berhad -- http://www.artwright.com/-- is involved in the  
trading of drafting equipment, office furniture and specialized
computer furniture.  Its other activities include research and
development of office interior markets and products and
investment holding.  

The Company floundered after the 1997/98 Asian financial crisis.  
It subsequently became a Practice Note 4 stock under the Kuala
Lumpur Stock Exchange Listing Requirements.  The Company,
though, has since restructured its financial position and was
taken out of PN4 in June 2004.  However, Artwright and some of
its subsidiaries needed to undergo a voluntary debt-
restructuring scheme to all termed-out lender in order to fully
wipe out its debts.  The Company said that it will continue to
work with its financial adviser, KPMG Financial Services Sdn
Bhd, to arrive at a settlement with all termed-out lenders.


AVAGO TECHNOLOGIES: Posts US$380M Net Revenue for Second Quarter
---------------------------------------------------------------
Avago Technologies Limited has disclosed its unaudited financial
results for the second quarter ended April 30, 2006.

The results for the second quarter and first quarter of fiscal
2006, as presented in the release, exclude revenue, costs and
expenses related to the Company's storage, which was sold on
February 28, 2006, and Printer ASICs operations, sold on May 1,
2006.

Net revenue for the second quarter was US$380 million, compared
with US$396 million in the first quarter of fiscal 2006.  
Including amortization of intangibles, gross margin for the
second quarter was 32%, compared with 22% in the first quarter.  
Second quarter operating expenses, including amortization of
intangibles, were US$142 million.  This compares with first
quarter operating expenses of US$159 million.

Adjusted EBITDA in the second quarter was US$68 million.  This
compares with stronger than anticipated Adjusted EBITDA of
US$91 million for the first quarter, which reflected lower costs
associated with the early stages of corporate infrastructure
development.

Cash balances at the end of April 2006 were approximately
US$210 million, up from US$169 million at the end of January.

"I am very pleased with the execution of our transition plans
and the progress made to date at improving our operating
performance," said Hock E. Tan, President and Chief and
Executive Officer of Avago Technologies.  "We generated
substantial cash from operations during the second quarter,
which combined with the proceeds from our divested businesses
enabled us to pay off all term loans by May 19, significantly
strengthening our capital structure."

A full-text copy of the Company's Financial Report is available
at no charge at:

      http://bankrupt.com/misc/tcrap_avagotech080706.pdf

                      About Avago Tech

Headquartered both in San Jose, CA, and in Singapore, Avago
Technologies Holdings Pte. Ltd. -- http://www.avagotech.com/--  
is the world's largest privately held semiconductor company,
with approximately 6,500 employees worldwide.  Avago provides an
extensive range of analog, mixed-signal and optoelectronic
components and subsystems to more than 40,000 customers.  The
company's products serve four end markets: industrial and
automotive, wired networking, wireless communications, and
computer peripherals.

Worldwide Design, Manufacturing and Marketing Centers in the
United States, Italy, Germany, Singapore, Korea, China, Japan
and Malaysia.

Avago Technologies is the successor to the Semiconductor
Products Group of Agilent.  Avago Technologies purchased the
business of SPG as of December 1, 2005, for US$2.6 billion in
cash.

                          *     *     *

As the Troubled Company Reporter reported on November 7, 2005,
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Avago Technologies Holdings Pte. Ltd.  The
outlook is positive.  At the same time, Avago's proposed
US$975 million first-lien senior secured bank facility was rated
'B+' with a recovery rating of '1', indicating a high
expectation for full recovery of principal in the event of a
payment default.  Avago Technologies Finance Pte Ltd. and
Luxembourg Finance Co. are borrowers under the loan.  In
addition, Standard & Poor's assigned its 'B' rating to Avago's
proposed US$375 million of senior unsecured notes and
US$375 million of senior unsecured floating-rate notes.  Lastly,
Avago's proposed US$250 million of senior subordinated notes
were assigned a 'CCC+' rating.  Avago Technologies Finance Pte
Ltd., Avago Technologies U.S. Inc., and Avago Technologies
Wireless Manufacturing Inc. are co-issuers of the notes.


AYER MOLEK: Explains Variance in Financial Results
--------------------------------------------------
Ayer Molek Company Berhad noted a variance between its audited
and unaudited fourth quarter report for the year ended Dec. 31,
2005.

The Company explained that the positive variance reported in the
accumulated profit and loss account for the fiscal 2005 was
mainly due to audit adjustments such as writing back of
impairment loss provided in the year 2004 amounting to
MYR7.0 million and deducting expenses like Real Property Gain
Tax and other accrual of expenses for that year.

The Company's report for the fourth quarter ended December 31,
2005, and its accompanying notes are available for free at:

   http://bankrupt.com/misc/tcrap_ayermolekBS081206.xls
   http://bankrupt.com/misc/tcrap_ayermolekCF081206.xls
   http://bankrupt.com/misc/tcrap_ayermolekIS081206.xls
   http://bankrupt.com/misc/tcrap_ayermoleknotes081206.pdf

                 About Ayer Molek Rubber Company

Headquartered in Kuala Lumpur, Malaysia, The Ayer Molek Rubber
Company Berhad is principally engaged in the leasing of its
entire plantation land to a third party.  It operates solely in
the domestic market.  

Ayer Molek has suffered recurring losses since the early 90s,
which prompted the Company to propose a rescue and restructuring
scheme to fully redeem and settle outstanding debts.  The
Company's accumulated loss figure as of March 31, 2006, stands
at MYR21,177,000.      

As of March 31, 2006, the Company's balance sheet revealed total
assets of MYR31,056,000 and total liabilities of MYR6,818,000.


COMSA FARMS: Changes Registered Address
---------------------------------------
On August 10, 2006, Comsa Farms started doing business at its
new address:

         Suite 20.03 (A)
         20th Floor, Menara MAA
         No. 12, Jalan Dewan Bahasa
         50460 Kuala Lumpur
         Malaysia

The Registrar may be reached at:

         Telephone: 03-21413060
         Facsimile: 03-21413061
         e-mail: lily@crestcorp.com.my

                        About Comsa Farms

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.


JOHAN CERAMICS: Books Lower Losses in Second Quarter of 2006
------------------------------------------------------------
Johan Ceramics Berhad, on August 10, 2006, submitted for public
release its financial report for the second quarter ended
June 30, 2006.

For the quarter under review, the Company's revenue increased by
12.6% or MYR4.58 million to MYR14.16 million from the
MYR12.58 million revenue in the preceding quarter.  

Due to improved revenue, higher margins and productivity, the
Company booked a lower post-tax loss of MYR0.55 million as
against a post-tax loss of MYR1.24 million in the quarter ended
March 31, 2006.

The lower loss after tax for the current financial year-to-date
of MYR1.79 million as compared to the corresponding financial
year-to-date of MYR3.02 million was due to higher sales revenue
and increases in margins and productivity.

As of June 30, 2006, the Company's balance sheet revealed
current assets of MYR32,521,000 and current liabilities of
MYR34,087,000, resulting into a net current deficit of
MYR1,566,000.  The Company has total assets of MYR65,382,000,
total liabilities of MYR34,087,000 and a shareholders' equity of
MYR31,239,000.  The June 30, 2006, balance sheet also showed
that the Company has accumulated losses of MYR36,062,000.

There was no dividend recommended for the quarter under review.

The Company's Second Quarter Report and its corresponding notes
are avilable for free at:

     http://bankrupt.com/misc/tcrap_johanceramics081106.pdf

     http://bankrupt.com/misc/tcrap_johanceramics081106.xls

                      About Johan Ceramics

Headquartered in Malaysia, Johan Ceramics Berhad principally
engages in the manufacture and sale of glazed ceramic wall and
floor tiles.  The Company's balance sheet as of March 31, 2006,
showed accumulated losses of MYR35.5 million in shareholders
equity.  On June 12, 2006, the Company was classified as an
affected listed issuer under the Amended Practice Note 17
category of Bursa Malaysia Securities Berhad's Listing
Requirements after its auditors expressed doubt on the Company's
ability to continue as a going concern and after its
shareholders' equity plunged below the listing requirement.  As
an affected issuer, the Company is required to formulate and
implement a plan to regularize its financial condition.


KRETAM HOLDINGS: Redeems RCLS and Converts New Shares
-----------------------------------------------------
Kretam Holdings Berhad, on August 8, 2006, partially redeemed
the Redeemable Convertible Loan Stocks, which were issued to
certain lenders pursuant to the Debt Restructuring Scheme that
was announced on April 5, 2002.

The outstanding MYR35,000,000 nominal value of RCSLS-C
(2003/2006) have been fully converted into 35,000,000 new Kretam
Holdings shares of MYR1 each on August 10, 2006, pursuant to the
terms of the Trust Deed dated July 23, 2003.

                      About Kretam Holdings

Kretam Holdings Berhad is a Malaysian company engaged in the
operation of an oil palm plantation and investment holding.  The
Company has a large number of directly or indirectly held
subsidiaries, as well as an associated company, Pantai Dalam
Development Sdn. Bhd., a 49%-owned property developer.  Through
its subsidiaries, it is also involved in the cultivation of oil
palm; the milling and sale of oil palm products; plantation and
palm oil mill management; general contracting for construction,
civil engineering and mechanical works; the provision of project
management, administrative and related services, and property
rental, development and management.

The Company had incurred recurring losses in the past.  As of
March 31, 2006, the Company's balance sheet revealed total
assets of MYR161,427,000 and total liabilities of
MYR268,350,000, resulting into a stockholders' deficit of
MYR106,923,000.


MERCES HOLDINGS: Wind-Up Hearing Postponed to August 29
-------------------------------------------------------
The hearing of a wind-up petition served by Prime Angle Sdn Bhd
on Merces Holdings Berhad's subsidiary, Merces Builders Sdn Bhd,
which was originally set for August 24, 2006, has been moved to
August 29, 2006.

As reported by the Troubled Company Reporter - Asia Pacific on
June 21, 2006, a wind-up petition had been issued and served on
Merces Builders.

In a statement to Bursa Malaysia Securities Berhad on June 13,
2006, Merces Holdings confirmed that the wind-up petition was
presented by Prime Angle Adn Bhd on March 27, 2006.  However,
Merces said that it does not have a record on the service of the
petition and had instructed its solicitor to conduct a search at
the Court.

According to the petition, Prime Angle is asserting a claim of
MYR114,616 as payment for a judgment sum awarded by Shah Alam
Session Court, and an annual interest of 8% from December 1,
1997, until full and final settlement of the amount claimed.

The claim was in respect of the outstanding charge for labor and
materials supplied under a sub-contract painting works for a
project at Bandar Tasik Selatan, in Kuala Lumpur, Malaysia.  
Apart from the amount claimed, the Merces Holdings does not
foresee any further losses except for legal costs.  

                      About Merces Holdings

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


METROPLEX BERHAD: July Default Amount Tops MYR1.78 Billion
----------------------------------------------------------
Metroplex Berhad's estimated amount of default as of July 31,
2006, is MYRRM1,778,284,117.

Currently, Metroplex is in negotiations with its lenders on the
Proposed Composite Schemes of Arrangement, which will
essentially address the default issue.  The Company will advise
the Bursa Securities when the Proposed Scheme is finalized.

A list of the Company's credit facilities in default as of
July 31, 2006, is available for free at:

     http://bankrupt.com/misc/tcrap_metroplexbhd081106.xls

                     About Metroplex Berhad

Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations.  Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school.  Operations are
carried out in Malaysia, Hong Kong, and the Philippines.

On April 28, 2005, Morgan Stanley Emerging Markets Inc. had
filed a wind-up petition against the Company with the Kuala
Lumpur High Court.  In the event the wind-up petition succeeds,
the Company will be put into liquidation.

Metroplex Berhad's April 30, 2006, balance sheet revealed total
liabilities of MYR1,417,778,000 exceeding total assets of
MYR1,214,518,000, resulting into a shareholders' deficit of
MYR203,260,000.


STANDARD BANK: Fitch Keeps Individual C Rating
----------------------------------------------
Fitch Ratings affirmed United Kingdom-based Standard Bank PLC's
ratings at Issuer Default BBB+, Short-term F2, Individual C and
Support 2.  The Outlook remains Stable.

At the same time Fitch is assigning a final Long-term rating of
BBB to SB PLC's issue of US$200 million Step-Up Perpetual
Subordinated Notes.

The IDR, Short-term and Support ratings for SB PLC reflects the
high probability of support from Standard International
Holdings' parent, Standard Bank Group and its main operating
entity The Standard Bank of South Africa.  This is based on a
strong statement of support in SBG's annual accounts, and the
high level of integration between SIH, SB PLC and SBG.

The Individual ratings reflect SB PLC's growing franchise in the
wholesale, cross-border emerging market line of business, and
sound risk management, while liquidity and capitalization are
considered satisfactory.  As a consequence of the emerging
markets exposure, the potential for volatility exists and market
risk is fairly high.  The strategy to diversify by geography and
critical mass has helped spread risks, although critical mass
remains an issue in some areas.

Standard International Holdings is the holding company
(established in 1992) for the international investment banking
activities of SBG and is regulated on a consolidated basis by
the FSA in the U.K.  In addition to SB PLC, other principal
operating subsidiaries are located in Hong Kong, Brazil,
Argentina, Russia, and the U.S.  SIH has further subsidiaries in
Turkey, Singapore and Malaysia.

SB PLC, in addition to having a branch in Dubai and being
represented by a number of SIH's subsidiaries, has further
representation in Australia, China, the Czech Republic, Iran,
Italy, Mexico, and Peru.  SIH specializes in emerging market and
natural resource transactions and is managed on a group basis
rather than as separate subsidiaries.


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

FILSYN CORP: Half-Year Loss Rises to PHP9.5 Billion
---------------------------------------------------
Non-operational Filsyn Corp. maintained its PHP4.59-million loss
for the second quarter ended June 30, 2006, the same amount of
loss it reported for its first-quarter, and higher than the
PHP3.99-million loss it incurred for the second quarter ended
June 30, 2005, according to the Company's latest disclosure to
the Philippine Stock Exchange.

In spite of the loss, the Company will not raise additional
funds in the next 12 months as it can satisfy its cash
requirements for the period.  It has no plans to resume
commercial operations as yet.

Filsyn's losses for the first half of 2006 amount to
PHP9.47 billion, compared to a PHP7.31-billion loss for the same
period in 2005.

The Company reported current assets of PHP33.69 million as of
June 30, 2006, and current liabilities of PHP1.39 billion.  The
Company has a capital deficiency of PHP476.71 million.

The Company's financial report for the six months ended June 30,
2006, is available for free at:

http://www.pse.org.ph/html/ListedCompanies/pdf/2006/FYN_17Q_Aug2006.pdf

                    About Filsyn Corporation

Filsyn Corporation -- organized in 1968 as Filipinas Synthetic
Fiber Corporation -- was engaged in the manufacture of polyester
in the country, supplying polyester fiber and yarn, a major raw
material requirement of the textile industry.  The Company also
ventured into PET bottle production, which is being supplied to
mineral water, softdrinks and condiment industries.  The PET
bottle manufacturing uses Filsyn's polyester chips, which are
converted to Polyester Terephthalate resin.

After suspending its normal operations in the mid-90's, the
Company's operations were limited to the disposal of old
inventories, machineries and equipment, as well as sale of scrap
materials and parts, plus acting as sales agent for FETL and
other entities.

                          *     *     *

Filsyn Corp.'s total capital deficiency for the period from
January-June 30, 2006 amounts to PHP476.71 million, from
PHP571.83 million for the same period last year.


MALAYAN INSURANCE: S&P Issues 'BB' Counterparty Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services had, on Aug. 11, 2006,
assigned a stable 'BB' counterparty credit and insurer financial
strength ratings to Manila-based Malayan Insurance Co., Inc.,
the first property and casualty insurance company it has rated
in the Philippines.

The ratings reflect Malayan's aggressive investment portfolio,
its relatively weaker operating performance than peers, along
with the tougher operating environment in the Philippines.  S&P
credit analyst Nandini Vijayaraghavan said, "These factors are
partially offset by Malayan's strong market position--being the
largest player in the domestic non-life insurance industry--its
adequate capitalization, and improvement in underwriting
performance."

Philippine insurance firms face a weak operating environment
characterized by a weak regulatory environment, low capital
levels, high taxes that burden the local industry, and
insufficient professional expertise.  However, there have been
recent increases in minimum capital levels that will be phased
in over the next four years.

"Malayan, with its long track record, deep relationship with
corporates, and wide branch network, has sustained its strong
position in the domestic non-life insurance industry," Ms.
Vijayaraghavan said.

The Company's market share, in terms of gross premium written,
has improved to about 15% in 2004, from 13% in 2000, and its
market position is derived from its leadership in the fire
insurance line, where its market share is estimated to be about
25% in 2004.  Malayan writes general insurance business with
fire being the largest product line, accounting for 59% of GPW,
followed by motor car (18%), engineering (11%), marine (6%),
personal accident (4%), and surety (2%).

The stable outlook reflects Malayan's strong market position,
improving underwriting performance, and satisfactory
capitalization, but it could be revised to negative if its
profitability declines either due to deterioration in
underwriting performance or a fall in risk-adjusted investment
returns.  Conversely, the outlook could be revised to positive
if there is a sustainable improvement in Malayan's underwriting
performance.

                          *     *     *

The Malayan Insurance Co., Inc. -- http://www.malayan.com/-- is  
considered the core company of the Malayan Group, having been
established first. Non-life insurance protection is at the heart
of Malayan's diversified operations.  The insurance risks it
covers include fire, marine, motorcar, miscellaneous casualty
and personal accident, and surety.


* Government Debt Reaches PHP4 Trillion in May 2006
---------------------------------------------------
The Philippine Government's outstanding debt as of May 31, 2006,
stood at PHP4.02 trillion, a 3.3% rise from its PHP3.89 trillion
debt last year, due to the weakening of the peso, Malaya News
reports.

According to the Philippine Inquirer, a report by the Department
of Finance shows that 60.2% of the Government's total debt was
long-term, while 23.6% was medium-term and 16.2% was short-term.  
Domestic debt was pegged at PHP2.17 trillion last May 2006
compared to a PHP2.06-trillion debt last year, while foreign
debt reached PHP1.845 trillion from PHP1.83 trillion.

The report further states that the increase in foreign debt was
due to a revaluation of the peso against the U.S. dollar, worth
PHP12 billion, since the foreign exchange rate had risen from
PHP51.75 to US$1 as of April 30, 2006, to PHP52.60 to US$1 in
May 31, 2006, ABS-CBN News reveals, citing the Manila Times.

The Inquirer adds that the Government's total contingent debt -
which consists of debts by state-owned corporations and
financial institutions guaranteed by the Government - stood at
PHP591.1 billion, a 2% drop from its debt worth PHP604.14
billion for May 2005, but higher than last month's debt at
PHP580.94 billion.  Malaya states, citing national treasurer
Omar Cruz, that the PHP11-billion rise in contingent debt was
due to fluctuations of third currencies against the U.S. dollar
worth PHP5 billion, and a depreciation of the peso against the
U.S. dollar amounting to PHP9 billion, partially offset by net
repayments worth PHP3 billion.

Standard & Poor's Ratings Services had, on July 25, 2006,
affirmed its 'BB-' senior unsecured rating on the Philippines'
-- foreign currency BB-/Stable/B, local currency BB+/Stable/B --
bonds due in 2016 and 2031.


* Pre-Need Firms' Sales Drop 20% in First Half of 2006
------------------------------------------------------
Low investor confidence in the pre-need industry due to recent
financial scandals drove the pre-need firms' sales down 20.2%
year-on-year to PHP9.7 billion for the January-June 2006 period,
the Philippine Star reports.

The Philippine Inquirer, citing a report from the Securities &
Exchange Commission, says that the sales value of pre-need plans
had risen 25% to PHP1.84 billion for the first half of 2006 from
PHP1.5 billion for the same period last year.

The Star relates that the number of pre-need plans had fallen to
114,092 from 185,908.

The number of life plans sold had dropped 49.6% to 36,945,
whereas sales of education plans had also fallen 46.05% to
17,212, and the number of pension plans sold fell 25.7% to
59,935 from 80,699.

The Inquirer states that the pre-need market was uncertain, as
it was not known if some companies would be permitted to sell
plans after rehabilitation.  The pre-need industry is not
expected to report a rise in earnings due to the adoption of
International Accounting Standards for pre-need firms' 2005
financial reports, since the SEC had proposed that the IAS
require firms to report premiums collected as liabilities and
not income.


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

HOCK CHUAN: Creditors' Meeting Slated for August 22
---------------------------------------------------
The creditors of Hock Chuan Ann Construction Pte Ltd will
convene on August 22, 2006, at 10:00 a.m.

At the meeting, creditors will be asked to:

   -- receive the Liquidator Seshadri Rajagopalan's report on
      the progress of the liquidation;

   -- decide on the issue of the Company's shares in Hytech
      Builders Pte Ltd; and

   -- discuss other matters.

The Liquidator can be reached at:

         Seshadri Rajagopalan
         c/o Ernst & Young
         10 Collyer Quay #23-05,
         Ocean Building
         Singapore 049315


MAE ENGINEERING: Shareholders Take Bigger Stakes
------------------------------------------------
Mae Engineering Ltd noted on August 11, 2006, that its
shareholders had increased their holdings in the Company's share
capital.

United Overseas Bank Nominees (Pte) Ltd and Ong Puay Koon,
director of Mae Engineering -- two of the substantial
shareholders of the Company -- initially held 76,148,907 shares
with 18.35% issued share capital.  Currently, they hold
133,297,814 shares with 16.06 % issued share capital.

The holdings of Ong Puay Koon and United Overseas Bank Nominees
(Pte) Ltd. include 44,148,907 direct shares held before the
change with 10.64 % direct issued share capital and 88,297,814
shares held after the change with 10.64 % direct issued share
capital.

The shareholding percentage before the change of interest is
computed based on issued share capital of 415,045,060 shares and
the after the change of interest the computation was based on
post-rights issued share capital of 830,090,120 shares.

              About MAE Engineering Limited

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

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


OVERSEAS SHIPHOLDING: Moody's Assigns Ba1 Debt Rating
-----------------------------------------------------
Moody's Investors Service affirmed the debt ratings of Overseas
Shipholding Group, Inc.'s Senior Unsecured at Ba1.  The outlook
has been changed to stable from negative.

The ratings reflect Overseas Shipholding's leading market
position as an operator of one of the world's largest tanker
fleets.  The Company derives approximately 75% of revenue from
transporting crude oil at spot market rates.  The high recent
market rates have produced cyclically strong financial results
for the Company.  With EBIT margins of about 40%, Debt of about
3x and EBIT of almost 4x, OSG's metrics are consistent with its
Ba1 debt ratings when applying Moody's methodology for the
Global Shipping industry.

The Company has repaid a substantial portion of the debt
incurred from the February 2005 acquisition of Stelmar Shipping
Ltd. and reported debt is down from the pre-acquisition levels.  
However, Overseas Shipholding increased the number of vessels
chartered-in over this time and entered into large sale
transactions for other vessels, resulting in a moderate increase
in indebtedness with almost no change in leverage.  The ratings
consider the highly cyclical nature of the shipping sector and
anticipate a modest weakening of the credit metrics as shipping
rates normalize over time.

In addition, Overseas Shareholding's fleet growth, expected to
be financed by charter-in agreements, could increase future
leverage, particularly during a cyclical trough in tanker rates.
Recognizing the sharp shipping cycles and the planned fleet
growth, OSG maintains strong liquidity, which supports the
ratings.  The ratings are also constrained by the yet to be
resolved investigation and recent indictment by the United
States Department of Justice regarding alleged violations
concerning maintenance of books and records with respect to the
handling of waste oils on some of the company's vessels.

The change in outlook to stable from negative reflects Moody's
view that demand for OSG's shipping services is likely to remain
solid over the next 12 to 18 months. World demand for crude oil
and refined products is strong and, working to OSG's advantage,
there are longer ton-mile trades due to continuing demand in the
Far East and geographic imbalances between refinery capacity and
end use markets.  The stable outlook also considers that
approximately 25% of OSG's revenues are under time charters
averaging three years. OSG is expected to maintain strong
liquidity through cash on hand, the Capital Contribution Fund,
and a large, long term revolving credit facility, which is
undrawn at this time.

The ratings could be downgraded if Debt is sustained above 4x,
or if EBIT falls below 3x. Downward rating pressure could also
result if OSG completes a significant debt-financed acquisition,
which weakens the credit metrics for a sustained period of time,
if it undertakes a more expansive charter-in fleet growth
strategy, or if lower rates take hold resulting in sustained
negative free cash flow.  Favorable rating action could result
if Debt is sustained below 2x while EBIT is sustained above 5x.  
A change in the chartering strategy resulting in a significant
reduction of the company's exposure to the spot market, by
fixing at least 50 percent of the crude carriers on long-term
time charters, would likely change OSG's risk profile and could
provide the impetus for an upgrade.

About Overseas Shipholding Group, Inc

Overseas Shipholding Group, Inc. (NYSE:OSG)
--- http://www.osg.com/-- is one of the largest publicly traded  
tanker companies in the world with an owned, operated and
newbuild fleet of 117 vessels, aggregating 13.0 million dwt and
865,000 cbm, as of June 30, 2006.  As a market leader in global
energy transportation services for crude oil and petroleum
products in the U.S. and International Flag markets, the Company
is committed to setting high standards of excellence for its
quality, safety and environmental programs.  OSG is recognized
as one of the world's most customer-focused marine
transportation companies, with offices in New York, Athens,
London, Newcastle and Singapore.


OVERSEAS SHIPHOLDING: Earns US$60.2 Mln in Second Quarter 2006
--------------------------------------------------------------
Overseas Shipholding Group, Inc., reported results for the
second fiscal quarter of 2006.

For the quarter ended June 30, 2006, net income was US$60.2
million, down 47% from US$114.2 million in the same period a
year earlier. The year ago quarter benefited from gains on
vessel sales of US$13.2 million, compared with a loss of US$3.5
million, in the current quarter.

EBITDA for the second quarter declined 38% to US$109.1 million
from US$176.3 million in the second quarter of 2005.  TCE
revenues in the quarter decreased by 5% to US$216.3 million from
US$228.6 million in the second quarter of 2005.

For the six months ended June 30, 2006, the Company reported net
income of US$188.6 million, a 32% decline from net income of
US$279.1 million, recorded in the first half of 2005.  Net
income for the first half of 2005 benefited from gains on ship
disposals of US$26.1 million, compared with a loss of US$3.6
million for the same period in fiscal 2006.  EBITDA for the
first six months of 2006 was US$289.2 million, a 28% decrease
from US$399.7 million in the first half of 2005.  TCE revenues
for the six months of 2006 increased less than 1% to US$496.4
million from US$495.8 million in the first half of 2005.

Morten Arntzen, president and chief executive officer, stated,
"It was another quarter of strong performance in each of our
sectors. In what is generally a seasonally weak quarter, our
crude oil tanker fleet, which is entirely double hull, continued
to benefit from the tanker market's greater discrimination
against single hull tankers and from the tight oil markets
across the globe. During the same period, we continued to
produce steady results from our Product and U.S. segments, while
also building a bigger book of longer term time charters."  

Mr. Arntzen continued, "We continue to generate strong cash
flow, have nearly $350 million in cash and tax-effected Capital
Construction Fund and $1.8 billion of credit, all available for
future growth initiatives and our stock buyback program."

About Overseas Shipholding Group, Inc

Overseas Shipholding Group, Inc. (NYSE:OSG) --
http://www.osg.com/-- is one of the largest publicly traded  
tanker companies in the world with an owned, operated and
newbuild fleet of 117 vessels, aggregating 13.0 million dwt and
865,000 cbm, as of June 30, 2006.  As a market leader in global
energy transportation services for crude oil and petroleum
products in the U.S. and International Flag markets, the Company
is committed to setting high standards of excellence for its
quality, safety and environmental programs.  OSG is recognized
as one of the world's most customer-focused marine
transportation companies, with offices in New York, Athens,
London, Newcastle and Singapore.


REFCO INC: Eight Refco LLC Claimants Can File Consolidated Claim
----------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York authorizes certain entities that expressed intent to
file similar proofs of claim against Refco, LLC, to lodge a
single master proof of claim that will be deemed to have been
filed against the Debtor on their behalf.

The Refco Claimants include:

   * Bersec International, LLC,
   * Cargill Investor Services Limited,
   * Haut Commodities, LLC,
   * Kroeck & Associates, LLC,
   * Lind-Waldock Financial Partners, LLC,
   * Lind-Waldock Securities LLC,
   * Marshall Metals, LLC, and
   * New Refco Group Ltd., LLC.

Nothing will prohibit the Refco Claimants from filing individual
proofs of claim in lieu of a Master Proof of Claim against Refco
LLC.

In a separate order, Judge Drain grants Skadden, Arps, Slate,
Meagher & Flom LLP, until 5:00 p.m. on October 17, 2006, to file
a proof of claim against Refco LLC for professional services
rendered before November 25, 2005.

                          About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a  
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for Chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported $16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for Chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the Chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s Chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  


REFCO INC: Customers Want Rule 2004 Examination on Refco F/X
------------------------------------------------------------
Pursuant to Rule 2004 of the Federal Rules of Bankruptcy
Procedure, an ad hoc committee of Refco F/X Associates, LLC
customers asks the U.S. Bankruptcy Court for the Southern
District of New York to authorize and direct FXA to disclose
names and contact information of each of its account holders who
maintained trading accounts with a positive account balance as
of Oct. 17, 2005.

The Customer Committee is currently composed of around 200 FXA
customers working to protect and advance the interests of the
FXA customer body as a whole.

The Customer Committee members believe that many additional
customers would be interested in participating in the proceeding
through the Committee if they were informed of the opportunity.  
By joining the Committee, the FXA customers will also be able to
enhance the value of FXA's estate by, among other things,
working with the Debtors and the Official Committee of Unsecured
Creditors to increase the proceeds from the sale of FXA assets.

Todd E. Duffy, Esq., at Duffy & Amedeo LLP, in New York, tells
Judge Drain that the Customer Committee is entitled to customer
information pursuant to the Bankruptcy Court's October 20, 2005
order and Bankruptcy Rule 1007(a)(1), which require FXA to file
with its petition a list containing names and addresses of each
of its creditors.

Mr. Duffy ensures that the requested disclosure will preserve
the FXA customers' rights.

To the extent that a settlement between the Customer Committee
and FXA is achieved, allowing more customers to participate in
the settlement could benefit the estate and its creditors by
satisfying a significant portion of FXA's creditor body and
clearing the way for a more comprehensive plan of
reorganization, Mr. Duffy states.

                         About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a  
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for Chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported $16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the Chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s Chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  


SEAGATE TECHNOLOGY: Launches US$2.5B Stock Repurchase Scheme
------------------------------------------------------------
Seagate Technology board of directors has authorized the Company
to repurchase up to US$2.5 billion of its outstanding shares of
common stock over the next 24 months, according to a company
release.

This program reinforces Seagate's ongoing commitment to enhance
shareholder value in which, during fiscal year 2006, Seagate
returned over US$500 million to its shareholders through stock
repurchases and quarterly dividends.  Based on today's stock
price the new repurchase program would represent approximately
20% of the company's capitalization.  As of July 28, 2006
Seagate had approximately 576 million shares of stock
outstanding.

Seagate expects to fund the stock repurchase through a
combination of cash on hand, future cash flow from operations
and potential alternative sources of financing. Stock
repurchases under this program may be made through a variety of
methods, which may include open market purchases, privately
negotiated transactions, block trades, accelerated share
repurchase transactions or otherwise, or by any combination of
such methods. The timing and actual number of shares repurchased
will depend on a variety of factors including the stock price,
corporate and regulatory requirements and other market and
economic conditions. The stock repurchase program may be
suspended or discontinued at any time.

                     About Seagate Technology

Headquartered in Scotts Valley, California, Seagate Technology
-- http://www.seagate.com/-- is the worldwide leader in the  
design, manufacturing and marketing of hard disc drives,
providing products for a wide-range of Enterprise, Desktop,
Mobile Computing, and Consumer Electronics applications.  
Seagate's business model leverages technology leadership and
world-class manufacturing to deliver industry-leading innovation
and quality to its global customers, and to be the low cost
producer in all markets in which it participates.  The company
is committed to providing award-winning products, customer
support and reliability to meet the world's growing demand for
information storage.

Seagate Technology has R&D and product sites in: Silicon Valley,
California; Pittsburgh, Pennsylvania; Longmont, Colorado;
Bloomington and Shakopee, Minnesota; Springtown, Northern
Ireland; and Singapore. Manufacturing and customer service sites
are located in: California; Colorado; Minnesota; Oklahoma;
Northern Ireland; China; Malaysia; Singapore and Thailand.

                          *     *     *

Moody's confirmed Seagate's Corporate Family Rating of Ba1 and
upgraded ratings of Seagate's US$400 million senior notes 8%,
due 2009 to Ba1, Maxtor's remaining US$135 million of the US$230
million 6.8% convertible senior notes, due 2010 to Ba1 from B2
and Maxtor Corporation's US$60 million 5-3/4% convertible
subordinated debentures, due 2012 to Ba2 from Caa1.  The rating
outlook is stable.

                           *     *     *

Seagate Technology Int'l-- http://www.seagate-asia.com-- is  
based in Singapore.  Standard and Poor's gave the company a 'BB'
rating for both its long term foreign and long term local issuer
credit effective on November 6, 2000.


SEAGATE TECHNOLOGY: June 2006 Net Income Decreases to US$7 Mil.
---------------------------------------------------------------
Seagate Technology reported net income for the quarter ended
June 30, 2006 of US$7 million compared to US$280 million for the
three months ended July 1, 2005.

The Company reported net income of US$840 million for the fiscal
year ended June 30, 2006, versus net income of US$707 million
for the previous fiscal year.

The Company disclosed that the reported financial results, for
its fiscal fourth quarter and full year 2006, includes both
accounting charges related to the Maxtor acquisition of $146
million and a loss from Maxtor's operating results, from May 19
through June 30, 2006, of approximately US$72 million.

The Company reported revenue of US$2.53 billion for the quarter
ended June 30, 2006, of which US$279 million was Maxtor product
based, and in the year-ago quarter, reported revenues of US$2.18
billion.

For the fiscal year ended June 30, 2006, the Company reported
revenue of US$9.2 billion, of which US$279 million was from
Maxtor based products and revenue of US$7.55 billion for fiscal
year ended July 1, 2005.

The Company disclosed it has declared a quarterly cash
distribution of US$0.08 per share to be paid on or before
Sept. 1, 2006.

During the quarter ended June 30, 2006, the Company further
disclosed that, it repurchased approximately 16.7 million common
shares worth approximately US$400 million and also that its
board of directors has approved an additional share repurchase
of up to US$2.5 billion of the company's common shares over the
next two years.

A full text-copy of the Company's financial results for its
fiscal fourth quarter and full year 2006 may be viewed, at no
cost, at http://ResearchArchives.com/t/s?f5a

A podcast featuring Bill Watkins discussing the Company's
performance during the year and the outlook going forward can be
heard and downloaded from http://www.podtech.net/seagate.

Headquartered in Scotts Valley, California, Seagate Technology
(NYSE: STX) -- http://www.seagate.com/-- is the worldwide  
leader in the design, manufacturing and marketing of hard disc
drives, providing products for a wide-range of Enterprise,
Desktop, Mobile Computing, and Consumer Electronics
applications.  Seagate's business model leverages technology
leadership and world-class manufacturing to deliver industry-
leading innovation and quality to its global customers, and to
be the low cost producer in all markets in which it
participates.  The company is committed to providing award-
winning products, customer support and reliability to meet the
world's growing demand for information storage.

                         *     *     *

Moody's confirmed Seagate's Corporate Family Rating of Ba1 and
upgraded ratings of Seagate's $400 million senior notes 8%, due
2009 to Ba1, Maxtor's remaining $135 million of the $230 million
6.8% convertible senior notes, due 2010 to Ba1 from B2 and
Maxtor Corporation's $60 million 5-3/4% convertible subordinated
debentures, due 2012 to Ba2 from Caa1.  The rating outlook is
stable.

                         *     *     *

Seagate Technology International -- http://www.seagate-asia.com
-- is based in Singapore.  Standard and Poor's gave the company
a 'BB' rating for both its long term foreign and long term local
issuer credit effective on November 6, 2000.


UNION FABRICATION: Undergoes Wind-Up Proceedings
------------------------------------------------
On July 28, 2006, United Overseas Bank Limited filed an
application to wind up Union Fabrication & Engineering Pte Ltd.

The High Court of Singapore will hear the wind-up application on
August 25, 2006, at 10:00 a.m.

The Plaintiff's Solicitors can be reached at:

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


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

MANAGER MEDIA: Posts THB4.53-Mil. Net Loss in 2006 First Half
-------------------------------------------------------------
Manager Media Group Public Co Ltd submitted to the Stock
Exchange of Thailand its financial report for the first half
ended June 30, 2006.

The Company's consolidated income statement for the 2006 first
half shows a net loss of THB4.53 million, a decrease from the
THB83.932-million net loss recorded for the same period in 2005.

Manager Media's balance sheet as of June 30, 2006, reflects
total consolidated liabilities of THB606.831 million, slightly
down from the THB627.092 million as of December 31, 2005.  
Meanwhile, the Company recorded total assets of
THB220.245 million as of June 30, 2006, down from
THB262.734 million as of the end of December 2005.  Total
shareholders' equity deficit of the Company at the end of June
2006 was equal to THB386.586 million.

The Company's balance sheet as of June 30, 2006, also shows
strained liquidity with THB130.726 million in current assets
available to pay THB260.864 million in current liabilities
coming due within the next 12 months.

After auditing the Company's first half and second quarter 2006
results, Prawit Wipusirikup, of RSM Nelson Wheeler Audit
Limited, stated that as the Group's amended business
rehabilitation plan approved by the court requires the Group to
complete its rehabilitation by February 2, 2007, the ultimate
outcome of the debt rehabilitation process being completed
within the timeframe set by the court cannot presently be
determined.  

As a result, Mr. Wipusirikup said, the continuing business
operations of the Group substantially depends on:

    -- the Group's ability to complete the business
       rehabilitation plan within the timeframe set by the
       court; and

    -- the ability of the Group to operate successfully in the
       future and generate adequate cash flows from operations.

These matters indicate the existence of a material uncertainty
with regard to the Group's ability to continue its operations as
a going concern, Mr. Wipusirikup stated.

Full text copies of the Company's financials for the first half
ended June 30, 2006, are available for free at:

   http://bankrupt.com/misc/MGRMD-1STH-06.XLS

   http://bankrupt.com/misc/MGRMD-1H-06-AR.DOC

                          *     *     *

Headquartered in Bangkok, Thailand, Manager Media Group Public
Company Limited -- http://www.manager.co.th/-- publishes a  
variety of daily, weekly, and monthly publications.  Periodicals
include Manager monthly magazine, Manager weekly newspaper,
Manager daily newspaper, and Thai Investment weekly magazine.  
The Company also partners with the Vietnam News Agency to
publish The Vietnam News, an English-language daily newspaper in
Vietnam.  
  
Manager Media has been operating with a capital deficit for
years, the biggest of which totaled around THB2 billion both in
the years 2001 and 2002.  In the same years, the Company posted
net losses of THB54.05 million and THB24.22 million,
respectively.

The Company is in the process of business rehabilitation.  In
2004, the Civil Court approved by the Company's financial
creditors and Manager Media's amended business rehabilitation
plan.  On May 31, 2004, the Company appointed the Thai Military
Bank Public Company Limited as its financial advisor.   

Currently, the Company is listed under the Non-Performing Group
sector of the Stock Exchange of Thailand.


THAI WAH: Gains THB100.87-Mil in Net Profit for '06 2nd Quarter
---------------------------------------------------------------
Thai Wah Public Company Ltd, on August 11, 2006, submitted to
the Stock Exchange of Thailand its financial report for the
second quarter ended June 30, 2006.

The Company's consolidated income statement for the second
quarter ended June 30, 2006, shows a net profit of
THB100.87 million, a turnaround compared with the
THB19.538 million net loss in the same period of 2005.

Thai Wah's balance sheet as of June 30, 2006, reflects
consolidated total liabilities of THB5.043 billion, down from
THB5.446 billion at the end of December 31, 2005.  Total assets
of the Company totaled to THB4.763 billion as of the end of June
2006, an increase compared with the THB3.754 billion at the end
of December 2005.  Total shareholders' equity deficit at June 30
was THB280.184 million.

The Company's balance sheet at June 30, 2006, also shows total
consolidated current assets of THB530.087 million available to
pay total consolidated current liabilities of THB245.85 million
coming due within the next 12 months.

After auditing the Company's second quarter report, Rungnapa
Lertsuwankul, of Ernst & Young Office Limited, raised
significant doubt on the Company's and its subsidiaries' ability
to continue as going concerns.

The Auditor notes that, at present, the Company is in the
process of implementing its business rehabilitation plan as
approved by the Central Bankruptcy Court on June 30, 2003.  
Under the Plan, the restructured debts were divided into five
tranches, each with different sources of funds for repayment and
different interest rates, with the interest rates to be reduced
with effect from January 2003, and the period for loan repayment
to be extended to March 2011.  In February 2005, the Company
sold some of its non-core assets to a buyer in accordance with
the amended plan approved by the Central Bankruptcy Court in
December 2004.  The buyer arranged for a contingent creditor to
release the Company from indebtedness and surrender all rights
of claim, and the Company to receive payment in accordance with
stipulated conditions.  In September 2005, the plan
administrator submitted petitions to the Official Receiver to
amend the Company's Business Rehabilitation Plan by extending
the its implementation period for another one year to February
2007 and clarifying the framework of the Special Purpose
Vehicles for the transfer of non-core assets and debt from the
Company.  The amended plan was approved in October 2005 by the
Central Bankruptcy Court.

According to the Auditor, although the Company has benefited
from the sale of non-core assets, it still has liabilities from
debt restructuring, which it must settle in installments, and
must dispose of assets to repay indebtedness.  These issues,
together with the ability of the Company and its subsidiary
companies to operate in accordance with the rehabilitation
plans, increase their working capital, and successfully
restructure their debts, indicate significant uncertainties
which could give rise to serious doubt as to the ability of the
Company and its subsidiaries to continue as going concerns and
to realize assets and settle liabilities and obligations in the
ordinary course of their businesses.

A full-text copy of the Company's financial report for the
quarter ended June 30, 2006, is available for free at:

   http://bankrupt.com/misc/TWCE2-2ndQ-06.xls

                          *     *     *  

Thai Wah Public Company Ltd's principal activity is the
manufacturing and marketing of various food products using mung
beans.  Products includes mung bean vermicelli, bean sheet
(Shanghai noodle) and salim starch.  Brands and trademarks of
the Group include Double Dragon, Phoenix, Double Kilin and
Double Eagle brands for vermicelli; Double Dragon brand for
salim starch and bean sheet; and New Grade brand for tapioca
starch, tapioca pearls and rice flours.  It operates a factory
in Thailand located in Banglane District, Nakorn Pathom
Province.

The Company was placed in the "Rehabco", or Companies under
rehabilitation, sector of the Thailand Stock Exchange, as
mandated by the Central Bankruptcy Court of Thailand, on
March 12, 2001.  In July 2006, the SET reclassified the whole
sector and categorized the Company under the "non-performing
group."  Companies under the group will retain their listing
status and will be obligated to comply with SET requirements.

Thai Wah is currently implementing a Reorganization Plan, whose
amendments were approved by the Central Bankruptcy Court in
November 2005.


* Thailand Posts THB9-Billion Trade Deficit Due To FTA
------------------------------------------------------
Thailand posted nearly THB9 billion in trade deficit between
October 2005 and May 2006 as a result of the free trade
agreements it has entered with China, India, Australia and New
Zealand, the FNWeb reports.

Government spokesman Surapong Suebwonglee told FNWeb that based
on statistics compiled by the Commerce Ministry on trading
activities with the four countries during the period, Thailand
exported goods worth THB609 billion while importing
THB618 billion of goods, resulting in a THB8.99 billion deficit.

The FNWeb relates that under the Chinese-Thai FTA Agreement,
Thailand exported THBB383 billion worth of goods while importing
THB419 billion from China.

Meanwhile, Thailand exported THB20 billion worth of goods from
India while importing THBB5.9 billion.  The top Thai export item
is colour TV sets, while India's top import were stick shifts.

With Australia, Thailand exported nearly THB187 billion of
products, mostly vehicle, against THB183 billion of imports,
which are mostly gold.

However, according to FNWEb, Thailand also enjoys a trade
surplus with New Zealand under the bilateral free trade
agreement.  Thai exports amounting to THB18 billion to New
Zealand during the period included crude oil and by-products
from bituminous ore and the country imported goods mostly dairy
products worth THBB9.5 billion.


                            *********

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

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

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


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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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
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                 *** End of Transmission ***