TCRAP_Public/060823.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

              Wednesday, August 23, 2006, Vol. 9, No. 167


                            Headlines

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

ALLSTATE EXPLORATIONS: AU$500,000 Offered for AU$47-M Loans
APA DALLEY: Enters Wind-Up Proceedings
ARROW SERVICES: Members Opt for Wind-Up
AWB LIMITED: Request to Expand Scope for Cole Inquiry Denied
BEECHER HOLDINGS: Members' Final Meeting Slated for September 17

CAFE MELBOURNE: Creditors' Proofs of Claim Due on August 31
CAMION TECHNOLOGY: Members and Creditors to Hear Wind-Up Report
CHURTON FARMS: Liquidation Petition Hearing Set on August 29
CORPORATE WELLNESS: Faces Liquidation Proceedings
DALE PROPERTIES: Commences Wind-Up Process

DR EAMZ: Liquidators to Receive Claims Until August 29
ELITE HORSE: Court to Hear Liquidation Bid on August 31
FELTEX CARPETS: To Make Annual NZX Pre-Announcement on Sept. 13
FIS INVESTMENT: Members to Convene on September 12
FORD AUSTRALIA: Moody's Reviews Ratings for Possible Downgrade

FRANKLIN PLUMBING: Appoints Joint and Several Liquidators
FRP LOGISTICS: Members Resolve to Close Business
GEMCO DEVELOPMENTS: Creditors Agree to Liquidate Business
GLOSTER APPAREL: Members and Creditors to Convene on Sept. 15
H & T AIR: Appoints Richard Herbert Judson as Liquidator

HETHKO ENTERPRISES: Members Decide to Shut Down Operations
JOMAR ORLANDO: Creditors Resolve to Wind-Up Firm
KYETTA NOMINEES: Members to Receive Wind-Up Report on Sept. 8
LODAVAS PTY: Placed Under a Members' Voluntary Wind-Up
MORCOM PTY: Liquidator Lucas to Present Wind-Up Report

NGATURI PROPERTIES: Court to Hear Liquidation Bid on August 29
NORTH SYDNEY: Creditors Name Michael Royal as Liquidator
OSWALDS GREEN: Members to Hear Wind-Up Report on September 13
PACIFIC ROYALE: Receiver and Manager Ceases to Act for Firm
PRIMELIFE CORPORATION: Babcock & Brown Mulls Acquisition

PRINT ASSOCIATES: Liquidation Petition Hearing Fixed on Aug. 28
R.W. HOUSTON: Final Meeting Slated for September 25
RETREAT RETAIL: Receiver and Manager Named
S.LENN: Initiates Wind-Up Proceedings
SBC FORMWORK: Members Resolve to Shut Down Business

SHIPAIR REMOVALS: Members Pass Resolution to Liquidate Assets
STARFIN INVESTMENTS: Creditors' Proofs of Claim Due on August 25
STORAGE ALICE: Names Robert A. Ferguson as Liquidator
SUMMERDRINK PTY: Inability to Pay Debt Prompts Wind-Up
THOMAS LAYTON: Members' Final Meeting Slated for September 14

TRANSAG MANUFACTURING: Creditors Must Prove Debts by September 5
TRITECH TECHNOLOGY: Receiver and Manager Step Aside
VAUGHAN REAL: To Distribute First and Final Dividend on Sept. 19
WINSTON HILLS: Appoints Stephen Gower Baker as Liquidator
WORLD COMMERCE: Court to Hear Liquidation Bid on October 5

WORTHGALE: Falls Into Liquidation with Over AU$3-Million Debts
W.&R. SKIOS: Members Opt for Voluntary Wind-Up
* Workers of Failed Firms to Receive Extra Payouts, Cabinet Says


C H I N A   &   H O N G  K O N G

ASC CAPITAL: Creditors' Proofs of Claim Due on September 21
BALLINGTON INT'L: Members and Creditors to Hear Wind-Up Report
CHIAO TUNG: Fitch Withdraws Ratings After Merger with ICBC
CHINA STEP: Appoints Official Liquidator
COTAC LIMITED: Final Members Meeting Set on September 15

COTESH COMPANY: Members to Receive Wind-Up Report
CRYSTALTRACE TECHNOLOGY: Creditors Must Prove Debts by Sept. 21
FONG ON MEDICAL: Liquidator to Present Wind-Up Report Sept. 15
GOLDTRON M. G.: Appoints Joint Liquidators
MEI FAI HATS: Liquidator to Present Wind-Up Report

NITTAN CAPITAL: Joint Liquidators Cease to Act for Company
ONE GROUP ASIA: Court to Hear Wind-Up Bid on October 11
SOUTHERN FORTUNE: Creditors Discuss Wind-Up Matters
SUPER HONOUR: Final Members Meeting Set on September 13
TEEN MISSION: Names Fung as Liquidator

TOPNIT MANUFACTURING: Faces Wind-Up Proceedings
UNITED COMPONENTS: Posts US$19.1-M Net Loss in Second Quarter


I N D I A

FEDDERS CORP: Hires Blackstone to Sell Indoor Air Quality Biz
GENERAL MOTORS: Indian Unit to Enter Used-Car Business in 2007
KANYAKA PARAMESHWARI: RBI Scraps License Due to Insolvency


I N D O N E S I A

ARGO PANTES: Net Loss Down to IDR9.76 Billion in First Half
ARGO PANTES: Restructures Debt with Bank Mandiri
ARGO PANTES: Netherlands Court Declares Unit Bankrupt
BANK NEGARA: Posts IDR839-Billion Net Profit in First Half
LIPPO KARAWACI: Lower Interests Drive Higher Net Income

NOBLE FINANCE: Market Waits on High Yield Deal


J A P A N

FORD MOTOR CREDIT: JCR Puts BB- Bond Ratings on Watch
FORD MOTOR CREDIT: Fitch Cuts Default Rating to B
FORD MOTOR CREDIT: S&P Places Credit Ratings on Watch Negative
JAPAN AIRLINES: Revises Route and Frequency Plan for Fiscal 2006
JAPAN AIRLINES: Posts Traffic Results for 2006 Summer Period


K O R E A

BALLY TOTAL: Revises Potential Growth Indication for 2006
BALLY TOTAL: Paul Toback Resigns as President and CEO
HERBALIFE LTD: Second Quarter Net Income Increases to US$36 Mil.
UNO RESTAURANT: S&P Lowers Corp. Credit Rating to CCC+ from B-
* Bankruptcies Hit Record Low in July


M A L A Y S I A

MALAYSIA AIRLINES: New Fares to Boost Domestic Profits
PARACORP BERHAD: Discusses Debt Restructuring with HSBC Malaysia
PSC INDUSTRIES: Judge Allows Appeal Against Summary Judgment
SEAGATE TECHNOLOGY: Launches US$2.5B Stock Repurchase Scheme
SEAGATE TECHNOLOGY: June 2006 Net Income Decreases to US$7 Mil.

SUGAR BUN: To List 1 Million New Shares
TEXCHEM RESOURCES: Obtains Approval to List Unit in SGX-ST
WEMBLEY INDUSTRIES: Agrees to Settle Legal Disputes


P H I L I P P I N E S

APC GROUP: In Talks for Telecom Subsidiary Sale
MIRANT CORP: Needs NAPOCOR Consent for Philippine Assets Sale
NATIONAL POWER: Incurs Loses During June-July WESM Billing Cycle
SAN MIGUEL: Plans to Sell National Food Minority Stake


S I N G A P O R E

ASIAPAC (I & E) PTE: Creditors' Proofs of Claims Due on Sept. 15
CIVIL GEO: Creditors' First Meeting Scheduled for September 7
MARLEX DISTRIBUTOR: To Hold Creditors' Meeting on August 25
PACIFIC CENTURY: Turnover for Second Quarter Drops to SGD198.9 M
PDC CORP: Subsidiary Inks Purchase and Sales Agreement


T H A I L A N D

SIAM COMMERCIAL: Moody's Confirms Bank's FSR at D+
* Over 1,200 Companies Went Bankrupt After First Half

     - - - - - - - -

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

ALLSTATE EXPLORATIONS: AU$500,000 Offered for AU$47-M Loans
-----------------------------------------------------------
The accountant in charge of the Allstate Explorations NL's
Beaconsfield Mine Joint Venture in Beaconsfield, Tasmania,
offers miners as little as AU$500,000 for AU$47 million worth of
inter-company loans granted by Macquarie Bank, The Australian
reports.

According to the report, the loans were bought by Macquarie from
the administrator of Allstate Explorations, the mine operator
and majority owner, for AU$300,000 in 2002.

The Australian says that an offer to a committee of workers
would give miners AU$500,000 in cash and another AU$1.5 million,
plus shares in Allstate, if the mine reopens.  In return, the
workers would assign to Allstate the AU$47 million in debts, the
Australian says.

As reported in the Troubled Company Reporter - Asia Pacific on
July 31, 2006, a rockfall killing a miner caused the closure of
the Beaconsfield mine.  After the rockfall, Macquarie agreed to
transfer the debt into a trust for the mine's employees which
would only have a value if the mine reopened, the TCR-AP noted.

According to the paper, Allstate shareholders claim the AU$47
million in intercompany debts do not belong to Macquarie but to
the Company shareholders.

The TCR-AP stated that Allstate is still in administration and
faces paying off an inter-company loan to Macquarie worth about
AU$45 million.  Macquarie is Allstate's main creditor, owed
millions of dollars in gold hedge book liabilities, the TCR-AP
noted.

The Australian relates that an administration manager at the
collapsed mine, Toni Griffiths, has reportedly told a committee
of 12 mine workers about the offer from Allstate administrator
Michael Ryan of Perth accounting firm Taylor Woodings.

However, Ms. Griffiths did not disclose the offer for the inter-
company debts.

The paper further relates that the mine workers' committee
decided to write to 148 members of the yet-to-be established
trust -- whether they would like to appoint the Australian
Workers Union to represent them in discussions over the debts.

Macquarie had not yet finalized the details of the trust, The
Australian says, adding that Mr. Ryan is attempting to stitch
together a deal to refinance Allstate and reopen the mine, but
it is believed the outstanding debts have emerged as a stumbling
block in these attempts.

Neither Allstate nor Macquarie can clarify whether the
Beaconsfield Miners Trust had been established yet.  But in its
recent quarterly report, Beaconsfield Gold says it understood
the trust would soon be established, the paper relates.

                         Rockfall Inquiry

As reported in the TCR-AP, the rockfall in the mine is subject
to a coroner's inquiry and a special investigation.

The Australian reports that the inquiry is expected to conclude
its hearings in September, but public disclosure of its findings
is uncertain.

Lawyers for Allstate and Mr. Ryan have encountered resistance
from the inquiry in seeking to have their own legal
representation, the paper notes.

                         About Allstate

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

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

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


APA DALLEY: Enters Wind-Up Proceedings
--------------------------------------
The members of Apa Dalley Pty Limited convened on August 2,
2006, and agreed to:

   -- voluntarily wind up the Company's operations;

   -- appoint Stephen James Parbery as liquidator; and

   -- authorize the Liquidator to divide the assets among the
      members and to destroy the books and records after the
      dissolution of the Company.

The Liquidator can be reached at:

         Stephen James Parbery
         PPB Chartered Accountants
         Level 15, 25 Bligh Street
         Sydney, Australia


ARROW SERVICES: Members Opt for Wind-Up
---------------------------------------
At a general meeting held on July 28, 2006, the members of Arrow
Services Pty Limited passed a special resolution to wind up the
Company's operations.

Subsequently, Timothy James Cuming and David Clement Pratt were
appointed as liquidators.

The Liquidators can be reached at:

         Timothy James Cuming
         David Clement Pratt
         Level 15, 201 Sussex Street
         Sydney, New South Wales 1171
         Australia


AWB LIMITED: Request to Expand Scope for Cole Inquiry Denied
------------------------------------------------------------
AWB Limited's court challenge to the power of the Cole Inquiry
to demand documents has concluded and enough material has been
released to allow the Inquiry to resume hearings on August 22,
2006, the Troubled Company Reporter - Asia Pacific reported on
August 14, 2006.

A follow up report from The Australian relates that Commissioner
Terence Cole will preside over the last few days of public
hearings before he hands over his report on the scandal to the
Howard Government on September 29, 2006.

The paper says that 22 of the nation's top barristers and legal
scholars have failed to convince Attorney-General Philip Ruddock
to expand the scope of the Cole Inquiry to examine wrongdoing by
government ministers or officials.

The Australian notes that legal scholars, including eminent QCs
and senior lecturers at leading law schools, have been trying to
convince Mr. Ruddock to grant extra powers to Mr. Cole before
the Inquiry closes.

According to The Australian, Mr. Cole does not have the power to
decide whether Foreign Minister Alexander Downer, or any other
government official, is guilty of mismanagement or negligence.

However, Mr. Ruddock said the Government would not change the
terms of reference unless Mr. Cole requests it, noting that "Mr.
Cole has not sought any such widening of his terms of
reference," The Australian relates.

But Dr. Saul argued that Mr. Cole should not be put in the
"unenviable position of having to determine his own
jurisdiction, not to mention asking the government for power to
investigate the Government itself," the paper notes.

                         About AWB

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

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.


BEECHER HOLDINGS: Members' Final Meeting Slated for September 17
----------------------------------------------------------------
Members of Beecher Holdings Pty Limited will meet on
September 17, 2006, at 4:00 p.m., to receive Liquidator James
David Beecher's report on the Company's wind-up and property
disposal exercises.

As reported by the Troubled Company Reporter - Asia Pacific on
June 20, 2006, the Company commenced a wind-up of its operations
on May 11, 2006.

The Liquidator can be reached at:

         James David Beecher
         28 Lang Road
         Centennial Park
         New South Wales 2021
         Australia


CAFE MELBOURNE: Creditors' Proofs of Claim Due on August 31
-----------------------------------------------------------
After an extraordinary general meeting held on August 4, 2006,
the members of Cafe Melbourne Pty Ltd resolved to voluntarily
liquidate the Company's business and appoint Richard Gell
Mansell as liquidator.

In this regard, creditors are required to file their proofs of
claim by August 31, 2006, for them to share in the Company's
dividend distribution.

The Liquidator can be reached at:

         Richard Gell Mansell
         R. G. Mansell & Associates
         Level 3, 118 Queen Street
         Melbourne, Australia
         Telephone:(03) 9603 0090
         Facsimile:(03) 9603 0099


CAMION TECHNOLOGY: Members and Creditors to Hear Wind-Up Report
---------------------------------------------------------------
The members and creditors of Camion Technology Pty Limited will
hold a final meeting on September 15, 2006, at 10:00 a.m.

During the meeting, Liquidator M. F. Cooper will present final
accounts of the Company's wind-up and property disposal
exercises.

The Troubled Company Reporter - Asia Pacific reported on
April 22, 2005, that the Company commenced a wind-up of its
operations on March 10, 2005.

The Liquidator can be reached at:

         M. F. Cooper
         Frasers Insolvency Advisory
         Level 5, 99 Elizabeth Street
         Sydney, New South Wales 2000
         Australia


CHURTON FARMS: Liquidation Petition Hearing Set on August 29
------------------------------------------------------------
A petition to liquidate Churton Farms Ltd will be heard before
the High Court of Wanganui on August 29, 2006, at 10:00 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on July 5, 2006.

The Plaintiff's Solicitor can be reached at:

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


CORPORATE WELLNESS: Faces Liquidation Proceedings
-------------------------------------------------
Members of Corporate Wellness Solutions Pty Ltd met on June 30,
2006, and agreed to voluntarily liquidate the Company's
business.

In this regard, James Patrick Downey was appointed as
liquidator.

The Liquidator can be reached at:

         James Patrick Downey
         Chartered Accountant
         Cole Downey & Co.
         Level 1, 22 William Street
         Melbourne, Victoria 3000
         Australia


DALE PROPERTIES: Commences Wind-Up Process
------------------------------------------
The liquidation of Dale Properties Ltd commenced on August 4,
2006 following the appointment of Peter Reginald Jollands and
Rory Iain Grieve as the Company's joint and several liquidators.

In this regard, creditors are required to prove their debts by
September 15, 2006, for them to share in any distribution the
Company will make.

The Joint and Several Liquidators can be reached at:

         Peter Jollands
         Jollands Callander
         Accountants and Insolvency Practitioners
         Level Four, 3-13 Shortland Street
         Auckland, New Zealand
         Web site: http://www.jollandscallander.co.nz/


DR EAMZ: Liquidators to Receive Claims Until August 29
------------------------------------------------------
Joint and Several liquidators David Donald Crichton and Keiran
Ann Horne will be receiving proofs of claim from the creditors
of Dr Eamz Ltd until August 29, 2006.

Failure to prove claims will exclude a creditor from
participating in any distribution the Company will make.

The Joint ands Several Liquidators can be reached at:

         D. D. Crichton
         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


ELITE HORSE: Court to Hear Liquidation Bid on August 31
-------------------------------------------------------
A liquidation petition filed against Elite Horse Transport Ltd
will be heard before the High Court of Auckland on August 31,
2006, at 10:45 a.m.

Teamtalk Ltd filed the petition with the Court on June 29, 2006.

The Plaintiff's Solicitor can be reached at:

         Dianne S. Lester
         Credit Consultants Debt Services NZ Ltd
         Level Three, 3-9 Church Street
         (P.O. Box 213 or D.X. S.X. 10069)
         Wellington, New Zealand
         Telephone: (04) 470 5972


FELTEX CARPETS: To Make Annual NZX Pre-Announcement on Sept. 13
---------------------------------------------------------------
In accordance with the Class Waiver granted by the New Zealand
Stock Exchange on November 3, 2005, Feltex Carpets Limited
advises that it will make its preliminary announcement in
accordance with NZX Listing Rule on September 13, 2006.

Feltex has a balance sheet date of June 30, 2006, and under the
NZSX Listing Rule, is due to make its annual preliminary
announcement to NZX by August 29, 2006.  As Feltex is reporting
under the New Zealand International Financial Reporting
Standards for the financial year commencing July 1, 2005, Feltex
has the benefit of the 15-day extension granted to first time
NZIFRS reporters by the Class Waiver granted by NZX.

Pursuant to the Class Waiver, all NZSX and NZDX Issuers are
granted a waiver from the reporting timeline for the first
period in which they report under NZIFRS.  

The Class Waiver is conditional on Issuers making a preliminary
announcement before the release of their annual report and not
later than 75 days after the end of the year to which that
report relates, and also before the date by which the
preliminary announcement would, but for the waiver, be issued
under Rule 10.4.1(a), Issuers announce through NZX that they
will not be providing the preliminary announcement within the
time frame specified in that Rule and why they will not be doing
so, with reference to the Class Waiver and its relevant
conditions.

Accordingly, Feltex will provide the preliminary announcement
within the timeframe specified in the Class Waiver.

                          About Feltex

Established over 50 years ago, Feltex Carpets Limited
-- http://www.feltex.com/-- has built a reputation for being  
one of the world's leading manufacturers of superior-quality
carpet.  The Feltex operation includes a wool scouring plant,
six spinning mills, three tufted carpet mills, a woven carpet
mill and offices in New Zealand, Australia and the United
States.

The Company also leads the way in exports, with customers
throughout South East Asia, Japan, the United States, the Middle
East and other key world markets.  Feltex listed on the local
stock exchange in mid-2004 in a NZ$254-million initial public
offering -- the year's largest in New Zealand.  However, the
Company fell short of its prospectus earnings projections,
reporting a net profit of NZ$11.8 million in the fiscal year to
June 30, 2005, about half the forecast NZ$23.9 million.  The
Company has struggled with losses and earnings downgrades,
flogging sales, and a dipping share price.  The Company closed
plants and in October 2005, axed 235 jobs, mostly in Australia,
and by 2006, abandoned merger talks with Australian competitor
Godfrey Hirst after it suggested that the apparent "white
knight" investor was more interested in a reverse takeover.  
Godfrey Hirst later sold out its nearly 9% stake in the Company.

In February 2006, Feltex reported a first-half after tax loss of
NZ$11.83 million, down almost 200% compared to the net loss in
the previous year.

The Company is currently undergoing negotiations for a capital
raising exercise, proceeds of which will be used to ease its
NZ$128-million debt to ANZ Bank.


FIS INVESTMENT: Members to Convene on September 12
--------------------------------------------------
Members of FIS Investment Services Pty Ltd will convene on
September 12, 2006, at 11:00 a.m., to receive Andrew McLellan's
accounts of the Company's wind-up and property disposal
exercises.

According to the Troubled Company Reporter - Asia Pacific, the
Company commenced a wind-up of its operations on October 28,
2005.

The Liquidator can be reached at:

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


FORD AUSTRALIA: Moody's Reviews Ratings for Possible Downgrade
--------------------------------------------------------------
Moody's Investors Service is reviewing for possible downgrade
the ratings of:

   (a) Ford Motor Company:

       * B2 corporate family,
       * B2 senior unsecured, and
       * Caa1 subordinate, and

   (b) Ford Motor Credit Company:

       * Ba3 corporate family, and
       * Ba3 senior unsecured.

The Company's Speculative Grade Liquidity Rating has been
affirmed at SGL-1, indicating very good liquidity over the next
12-month period.

The review follows Ford's announcement that as part of the
acceleration of its Way Forward restructuring program it will
significantly reduce production levels in its North American
operations for the second half of 2006 in response to the
continued erosion in the truck and SUV markets.

Moody's also expects that a more aggressive employee attrition
program will be an important element of the Way Forward plan.  
The rating agency believes that the announced production cuts,
in combination with an accelerated attrition program and a
continuing market shift away from trucks and SUVs, will
contribute to a significantly negative cash flow during 2006.
Nevertheless, the Company's current cash position and available
bank credit facilities provide good liquidity relative to the
its near term cash requirements.

Moody's review of Ford is focusing on the degree to which its
accelerated Way Forward plan will reestablish the
competitiveness of the Company's North American operations and
preserve liquidity in the face of significant near-term cash
requirements and more aggressive competition from Asian
manufacturers.  The review will consider the Company's rating
relative to those of key peers, and to the extent a rating
downgrade is necessary it is unlikely to be more than one rating
notch.

Ford expects to announce the details of the revised
restructuring plan in September, and Moody's anticipates that
the resolution of the review will coincide with the announcement
of the revised plan.  Key elements of the plan could include
initiatives to:

   (a) pull forward new product introductions in the car and
       crossover segments;

   (b) optimize the number of vehicle platforms;

   (c) accelerate material costs reduction plans, and

   (d) pursue options for various asset sales.

Bruce Clark, a senior vice president with Moody's says, "[t]he
truck and SUV markets are falling out from under Ford much more
quickly than it expected and consequently the Company will have
to accelerate almost every aspect of the original Way Forward
plan.  But during the near-term, a significant amount of cash
will likely be consumed until the plan begins to gain any real
traction."  The rating agency notes that Ford has approximately
US$23.6 billion cash and short-term VEBA balances to help cover
future cash requirements.

Moody's review of Ford Credit's long-term ratings (Senior at
Ba3) reflects the linkages that exist between it and its parent.  
A further weakening at Ford would have a negative impact on Ford
Credit's stand-alone credit profile.  Moody's currently
maintains a two notch rating differential between Ford and Ford
Credit based on Moody's view that loss severity in the event of
default for Ford Credit would be meaningfully lower than for
Ford.  This two notch rating differential is not expected to be
reduced as a result of this ratings review.

Ford Motor Company, headquartered in Dearborn, Michigan, is a
leading global auto manufacturer.  Ford Motor Credit Company is
one of the world's largest captive finance companies.


FRANKLIN PLUMBING: Appoints Joint and Several Liquidators
---------------------------------------------------------
Iain Bruce Shephard and Christine Margaret Dunphy were appointed
on July 24, 2006, as joint and several liquidators of Franklin
Plumbing Limited.

According to The Troubled Company Reporter - Asia Pacific, the
Company was facing a liquidation proceeding from a petition
filed by the Commissioner of Inland Revenue on May 3, 2006.  The
Court heard the petition on June 26, 2006.

The Joint Liquidators can be reached at:

         Christine Margaret Dunphy
         c/o Andrew Coad at Shephard Dunphy Limited
         Level Two, Zephyr House, 82 Willis Street
         Wellington, New Zealand
         Telephone: (04) 473 6747
         Facsimile: (04) 473 6748


FRP LOGISTICS: Members Resolve to Close Business
------------------------------------------------
At a general meeting held on August 7, 2006, the members of FRP
Logistics Pty Ltd resolved to wind up the Company's operations
and appoint Nicholas Crouch as liquidator.

The Liquidator can be reached at:

         Nicholas Crouch
         Crouch Insolvency
         Chartered Accountants
         Level 28, 31 Market Street
         Sydney, New South Wales 2000
         Australia


GEMCO DEVELOPMENTS: Creditors Agree to Liquidate Business
---------------------------------------------------------
Creditors of Gemco Developments Pty Limited convened on
August 1, 2006, and decided to liquidate the Company's business.

Accordingly, Ozem Kassem and David Watson were appointed as
liquidators.

The Liquidators can be reached at:

         Ozem Kassem
         David Watson
         Cor Cordis Chartered Accountants
         Level 8, 50 Carrington Street
         Sydney, New South Wales
         Australia
         Telephone:(02) 8221 8449
         e-mail: dwatson@corcordis.com.au


GLOSTER APPAREL: Members and Creditors to Convene on Sept. 15
-------------------------------------------------------------
Members and creditors of Gloster Apparel Productions Pty Limited
will convene on September 15, 2006, at 10:00 a.m.

At the meeting, creditors and members will be asked to:

   -- receive the liquidators' final report on the Company's
      wind-up;

   -- approve the liquidators' remuneration; and

   -- authorize the liquidators to destroy, at their discretion,
      the books and records of the Company within a period of
      six months after dissolution of the Company, subject to
      obtaining prior approval from the Australian Securities
      and Investments Commission.

The Troubled Company Reporter Asia - Asia Pacific reported on
January 16, 2006, that the Company commenced a wind-up of its
operations on December 13, 2005.

The liquidators can be reached at:

         Robyn L. Duggan
         Max C. Donnelly
         Ferrier Hodgson Chartered Accountants
         Level 17, 2 Market Street
         Sydney, New South Wales 2000
         Australia


H & T AIR: Appoints Richard Herbert Judson as Liquidator
--------------------------------------------------------
At an extraordinary general meeting held on August 1, 2006, the
members of H & T Air and Sea Pty Ltd agreed to voluntarily wind
up the Company's operations.

Creditors appointed Richard Herbert Judson as liquidator at a
separate meeting held later that day.

The Liquidator can be reached at:

         Richard Herbert Judson
         Judson & Co
         Chartered Accountants
         Suite 4, Level 1
         10 Park Road
         Cheltenham, Victoria 3192
         Australia
         Telephone: 9585 4155


HETHKO ENTERPRISES: Members Decide to Shut Down Operations
----------------------------------------------------------
On August 7, 2006, the members of Hethko Enterprises Pty Ltd
passed a special resolution to voluntarily wind up the Company's
operations and appoint Terry van der Velde and David Stimpson as
joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Terry Van Der Velde
         David Stimpson
         c/o SV Partners
         Suite 2B, Plaza Links
         1-9 Plaza Parade
         Maroochydore, Queensland 4558
         Australia


JOMAR ORLANDO: Creditors Resolve to Wind-Up Firm
------------------------------------------------
At the meeting held on August 3, 2006, the creditors of Jomar
Orlando Pty Ltd passed a special resolution under Section 491 to
wind up the Company's operations.

Subsequently, Bruno A. Secatore and Daniel P. Juratowitch were
named official liquidators.

The Liquidators can be reached at:

         Bruno A. Secatore
         Daniel P. Juratowitch
         Cor Cordis Chartered Accountants
         406 Collins Street
         Melbourne, Victoria 3000
         Australia


KYETTA NOMINEES: Members to Receive Wind-Up Report on Sept. 8
-------------------------------------------------------------
Members of Kyetta Nominees Pty Ltd will meet on September 8,
2006, at 11:45 a.m., to receive accounts of the Company's wind-
up and property disposal exercises from Liquidator A. S. R.
Hewitt.

The Troubled Company Reporter - Asia Pacific reported on
June 26, 2006, that the Company commenced a wind-up of its
operations on May 12, 2006.

The Liquidator can be reached at:

         A. S. R. Hewitt
         Grant Thornton Recovery (Vic) Pty Ltd
         Rialto Towers
         Level 35, South Tower 52
         5 Collins Street
         Melbourne, Victoria 3000
         Australia


LODAVAS PTY: Placed Under a Members' Voluntary Wind-Up
------------------------------------------------------
At a general meeting held on June 15, 2006, the members of
Lodavas Pty Limited agreed to voluntarily wind-up the Company's
operations and appoint David M. McCarthy and Christopher R.
Campbell as joint and several liquidators.

Mr. McCarthy and Mr. Campbell can be reached at:

         David M. McCarthy
         Christopher R. Campbell
         Deloitte Touche Tohmatsu
         Grosvenor Place
         225 George Street
         Sydney, New South Wales 2000
         Australia


MORCOM PTY: Liquidator Lucas to Present Wind-Up Report
------------------------------------------------------
Members of Morcom Pty Ltd will hold a final meeting on
September 11, 2006, at 11:00 a.m., to receive Liquidator P. A.
Lucas' accounts of the Company's wind-up and property disposal
exercises.

The Troubled Company Reporter - Asia Pacific reported on May 17,
2006, that the Company commenced a wind-up of its operations on
March 29, 2006.

The Liquidator can be reached at:

         P. A. Lucas
         P. A. Lucas & Co.
         Chartered Accountants
         Level 8, 100 Edward Street
         Brisbane, Queensland
         Australia


NGATURI PROPERTIES: Court to Hear Liquidation Bid on August 29
--------------------------------------------------------------
The Commissioner of Inland Revenue filed on July 25, 2006, a
petition to Ngaturi Properties Ltd.

The High Court of Wanganui will hear the petition on August 29,
2006, at 10:00 a.m.

CIR's solicitor can be reached at:

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


NORTH SYDNEY: Creditors Name Michael Royal as Liquidator
--------------------------------------------------------
The members of North Sydney Prepress Pty Limited on August 8,
2006, resolved to wind up the Company's operations.

Michael Stephen Hawkins Royal was subsequently appointed as
liquidator at a creditors' meeting held that same day.

The Liquidator can be reached at:

         Michael Stephen Hawkins Royal
         Business Improvement and Restructuring Services
         Suite 9, 305-307, The Kingsway
         Caringbah, New South Wales 2229
         Australia
         Telephone:(02) 9531 8365
         Facsimile:(02) 9531 8367


OSWALDS GREEN: Members to Hear Wind-Up Report on September 13
-------------------------------------------------------------
Members of Oswalds Green Oaks Pty Ltd will convene on September
13, 2006, at 10:00 a.m., to receive Liquidator Nick Orfanos'
accounts of the Company's wind-up proceedings.

As reported by the Troubled Company Reporter - Asia Pacific on
August 31, 2005, the Company commenced a wind-up of its
operations on July 20, 2005.

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


PACIFIC ROYALE: Receiver and Manager Ceases to Act for Firm
-----------------------------------------------------------
Michael Owen ceased to act as receiver and manager of Pacific
Royale Pty Ltd on July 14, 2006.

The former Receiver and Manager can be reached at:

         Michael Owen
         BDO Kendalls
         Level 18, 300 Queen Street
         Brisbane, Queensland 4000
         Australia


PRIMELIFE CORPORATION: Babcock & Brown Mulls Acquisition
--------------------------------------------------------
As part of its strategy to buy retirement communities and bundle
them into a fund, Babcock & Brown Ltd., is looking to purchase
Primelife Corporation, Bloomberg News reports citing three
people with knowledge of the matter, as saying.

The report further cites sources as saying that Primelife's
market value climbed 32% to AU$168 million (US$128 million) in
the past two months.

The firm plans to take control of Primelife using its publicly
traded shell company, MTM Entertainment Trust, which will then
change its name to Babcock & Brown Communities and sell about
AU$400 million of new shares, sources say.  MTM had no revenue
as of June 2005, Bloomberg says.

ABN Amro Holding NV and UBS AG are the leading candidates to
arrange the sale of shares, Bloomberg adds.

Bloomberg recounts that in June, Primelife was in talks with
Babcock about setting up an investment fund.  However,
spokespersons for both Companies declined to comment.

Primelife, which has about 6,000 residents in 50 properties
nationwide, has not reported an annual profit since June 2002,
Bloomberg relates.  Based on its data, Bloomberg notes that the
Company's total assets rose 43% in the four years since June
2001, and revenue gained 10% to AU$74 million in the same
period.

Bloomberg recounts that Babcock bought a stake in Primelife in
November 2003, however, the stock has lost half of its value
since then.

Babcock owns 17% of Primelife, as well as a 49% stake in
PrimeLiving Trust, a closely held firm that owns more than 2,200
retirement apartments.  MTM will buy PrimeLiving as part of the
plan, the people said.

Babcock buys assets that provide predictable returns for
investment funds it manages.  The firm's funds and assets under
management almost doubled to AU$21.7 billion in 2005, Bloomberg
notes.

                        About Primelife

Headquartered in Melbourne, Australia, Primelife Corporation
-- http://www.primelife.com.au-- develops and manages  
properties catering to a wide range of senior living needs,
including independent retirement living, serviced apartments,
aged care or low care hostels and high care nursing homes, and
in-home care.
  
Primelife almost skidded into insolvency when, on September 23,
2004, the Australian Securities and Investments Commission filed
37 proceedings in the Federal Court of Australia seeking, among
other things, orders that an investigating accountant be
appointed over managed investment schemes under Primelife to
report to the Federal Court to ascertain the position of each of
the schemes.  ASIC also applied for the schemes to be wound up.

ASIC alleged that the schemes are not registered, as required
under the Corporations Act.  ASIC brought the Federal Court
proceedings against Primelife and a number of other defendants
including parties who, ASIC alleges, have been involved in
promoting and managing the schemes to a large number of
investors since 1997.   

The unregistered schemes are undergoing or were completely wound
up starting October 2005.  The Company had currently resolved
most of the legal issues and was turning the corner after a
couple of years.


PRINT ASSOCIATES: Liquidation Petition Hearing Fixed on Aug. 28
---------------------------------------------------------------
On July 13, 2006, the Commissioner of Inland Revenue filed with
the High Court of Wellington a liquidation petition against
Print Associates Ltd.

The petition will be heard before the Court on August 28, 2006,
at 10:00 a.m.

CIR's solicitor can be reached at:

         Rachel Laura Roff
         Technical and Legal Support Group
         Wellington Service Centre
         First Floor, New Zealand Post House
         7-27 Waterloo Quay (P.O. Box 1462)
         Wellington, New Zealand
         Telephone: (04) 890 1116
         Facsimile: (04) 890 0009


R.W. HOUSTON: Final Meeting Slated for September 25
---------------------------------------------------
R.W. Houston & Company (Rural) Pty Ltd will hold a final meeting
for its members and creditors on September 25, 2006, at
10:00 a.m.

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

As reported by the Troubled Company Reporter - Asia Pacific, the
Company commenced voluntary liquidation on March 30, 2006.

The Liquidator can be reached at:

         Dennis Turner
         PKF Chartered Accountants
         11th Floor
         485 Latrobe Street
         Melbourne, Victoria 3000
         Australia


RETREAT RETAIL: Receiver and Manager Named
------------------------------------------
On July 31, 2006, Wayne Loechel and Dallas Gist were appointed
as receivers and managers of all the assets and undertakings of
Retreat Retail Services Pty Ltd.

The Receiver and Manager can be reached at:

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


S.LENN: Initiates Wind-Up Proceedings
-------------------------------------
At a general meeting held on July 14, 2006, the members of
S. Lenn Pty Ltd resolved to wind up the Company's operations and
distribute the proceeds of its assets disposal.

Accordingly, Peter Sheldon was appointed as liquidator.

The Liquidator can be reached at:

         Peter Sheldon
         Level 5, Suite 507
         35 Spring Street
         Bondi Junction
         New South Wales 2022
         Australia


SBC FORMWORK: Members Resolve to Shut Down Business
---------------------------------------------------
At a general meeting held on August 3, 2006, the members of SBC
Formwork Pty Limited agreed to:

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

   -- appoint Daniel Civil as liquidator.

The Liquidator can be reached at:

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


SHIPAIR REMOVALS: Members Pass Resolution to Liquidate Assets
-------------------------------------------------------------
Members of Shipair Removals Pty Ltd on August 2, 2006, passed a
special resolution to voluntarily wind up the Company's
operations.

In this regard, Robert A. Ferguson was appointed as liquidator.

The Liquidator can be reached at:

         Robert A. Ferguson
         c/o Fergusons
         Chartered Accountants
         Level 8, 115 Grenfell Street
         Adelaide, South Australia 5000
         Australia


STARFIN INVESTMENTS: Creditors' Proofs of Claim Due on August 25
----------------------------------------------------------------
The creditors of Starfin Investments Ltd are required to submit
their proofs of claim by August 25, 2006, to Joint and Several
Liquidators Brian Joseph Walshe and Richard Brian Burge.

Failure to submit proofs of debt will exclude a creditor from
participating in any distribution the Company will make.

The Joint Liquidators can be reached at:

         Richard Burge
         Sherwin Chan & Walshe
         Chartered Accountants & Business Advisers
         P.O. Box 30-568, Lower Hutt
         New Zealand
         Telephone: (04) 569 9069


STORAGE ALICE: Names Robert A. Ferguson as Liquidator
-----------------------------------------------------
On August 2, 2006, the members of Storage Alice Springs Pty Ltd
passed a special resolution to liquidate the Company's business
and appoint Robert A. Ferguson as liquidator.

Mr. Ferguson can be reached at:

         Robert A. Ferguson
         c/o Fergusons
         Chartered Accountants
         Level 8, 115 Grenfell Street
         Adelaide, South Australia 5000
         Australia


SUMMERDRINK PTY: Inability to Pay Debt Prompts Wind-Up
------------------------------------------------------
At an extraordinary general meeting held on August 4, 2006, the
creditors of Summerdrink Pty Limited resolve to wind up the
Company's operations due to the Company's inability pay its
debts.

In this regard, Stephen Jay was appointed as liquidator.

Mr. Jay can be reached at:

         Stephen Jay
         Suite 2, 1st Floor
         Macquarie Street
         Dubbo, New South Wales 2830
         Australia


THOMAS LAYTON: Members' Final Meeting Slated for September 14
-------------------------------------------------------------
Members of Thomas Layton Holdings Pty Ltd will meet on
September 14, 2006, at 10:00 a.m., to receive Liquidator Robyn
Beverley Mckern's accounts of the Company's wind-up and property
disposal exercises.

The Troubled Company Reporter - Asia Pacific reported on May 19,
2005, that the Company commenced a wind-up of its operations on
April 6, 2005.

The Liquidator can be reached at:

         Robyn Beverley Mckern
         McGrathNicol+Partners
         Level 8, IBM Centre
         60 City Road
         Southbank, Victoria 3006
         Australia
         Telephone:(03) 9038 3137
         Web site: http://www.mcgrathnicol.com/


TRANSAG MANUFACTURING: Creditors Must Prove Debts by September 5
----------------------------------------------------------------
Paul Graham Sargison and Gerald Stanley Rea require the
creditors Transag Manufacturing Ltd to submit their proofs of
claim by September 5, 2006.

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

The Troubled Company Reporter - Asia Pacific reported that on
August 3, 2006, the High Court of Auckland heard the liquidation
petition filed by Corus New Zealand Ltd against the Company.

The Joint Liquidators can be reached at

         P. G. Sargison
         Gerry Rea Associates
         P.O. Box 3015, Auckland
         New Zealand
         Telephone: (09) 377 3099
         Facsimile: (09) 377 3098


TRITECH TECHNOLOGY: Receiver and Manager Step Aside
---------------------------------------------------
Paul A. Pattison ceased to act on July 25, 2006, as receiver and
manager of all the assets and undertakings of Tritech Technology
Pty Ltd.

The former Receiver and Manager can be reached at:

         Paul A. Pattison
         Business Advisors & Insolvency Specialists
         14th Floor, 461 Bourke Street
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9600 4611


VAUGHAN REAL: To Distribute First and Final Dividend on Sept. 19
----------------------------------------------------------------
Vaughan Real Estate Pty Limited will distribute its first and
final dividend to creditors on September 19, 2006, to the
exclusion of those who cannot prove their claims on that same
day.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company commenced a wind-up of its operations on July 31, 2006.

The joint and several liquidators can be reached at:

         Brian H. Allen
         Peter G. Burton
         c/-o Burton Glenn Allen
         Chartered Accountants
         Level 2, 57 Grosvenor Street
         Neutral Bay, New South Wales 2089
         Australia
         Telephone:(02) 9904 4644
         Facsimile:(02) 9904 9644


WINSTON HILLS: Appoints Stephen Gower Baker as Liquidator
---------------------------------------------------------
Members of Winston Hills Real Estate Pty Limited held a meeting
on August 4, 2006, and resolved to wind up the Company's
operations.

In this regard, Stephen Gower Baker was appointed as liquidator.

The Liquidator can be reached at:

         Stephen Gower Baker
         Stephen Baker & Co
         Chartered Accountant
         Suite 2, 98 Woolwich Road
         Woolwich, New South Wales 2110
         Australia
         Telephone: 9817 6427
         Facsimile: 9879 0964


WORLD COMMERCE: Court to Hear Liquidation Bid on October 5
----------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against World Commerce NZ Ltd on October 5, 2006, at 10:45 a.m.

Indiana Publications Ltd filed the petition with the Court on
July 27, 2006.

The Plaintiff's Solicitor can be reached at:

         D. M. McIntosh
         Dawsons Solicitors
         371 Ti Rakau Drive
         Corner of Ti Rakau and Huntington Drive
         P.O. Box 38-143, Howick, East Tamaki
         Auckland, New Zealand
         Facsimile: (09) 272 0001


WORTHGALE: Falls Into Liquidation with Over AU$3-Million Debts
--------------------------------------------------------------
Gold Coast-based Worthgale Pty Ltd was placed in administration
on July 19, 2006, with claims from about 100 creditors exceeding
AU$3 million and a claim on Riverside Ridge (Qld) Pty Ltd for
AU$3.2 million, Townsville Bulletin reports.

In this regard, Administrators Bill Buckby and Ginette Muller of
KordaMentha were appointed as liquidators.

According to the report, Riverside Ridge disputed that any
monies are owed to Worthgale.  Worthgale acted as the contractor
supplying earthworks, drainage, and sewerage work to Sydney
Developer Peter Bega's AU$100 million residential estate
development, in Douglas, Riverside.

In a recent report, Townsville Bulletin relates that Worthgale
has been accused of lodging a fraudulent progress claim, which
claim is documented in a report by administrators into the
Company's affairs.

However, Mr. Buckby noted that he is not yet in a position to
advise creditors on the potential for success of any recovery of
monies by the Company, the paper relates.

"We are currently reviewing the records and books of the Company
and working with lawyers to determine the prospect of any
action," Mr. Buckby said.  "Anything involving litigation is
unclear and subject to investigation the correct position," Mr.
Buckby clarifies.

The administrators' report reveals that Worthgale entered into a
contract worth AU$16.88 million plus variations with Riverside
Ridge.

Riverside Ridge terminated contract on July 7, 2006, and removed
Worthgale from the site, Townsville Bulletin relates.

"The basis of this termination and removal as alleged by
Riverside Ridge was that the Company lodged a fraudulent
progress claim with the site supervisor," the paper cites the
report, as saying.

Riverside Ridge also alleges Worthgale's director -- Peter
Johnston -- had signed a statutory declaration that third party
suppliers had been paid when its investigations had found this
was not the case.  Mr. Johnston could not be contacted for
comment, Townsville Bulletin notes.


W.&R. SKIOS: Members Opt for Voluntary Wind-Up
----------------------------------------------
Shareholders of W.&R. Skios Ltd resolved on July 3, 2006, to
voluntary liquidate the Company's operations and appoint
Liquidator Grant McIntosh to oversee the proceedings.

Mr. McIntosh can be reached at:

         Grant McIntosh
         P.O. Box 794, Hamilton
         New Zealand
         Telephone: (07) 839 5725
         Facsimile: (07) 838 3191


* Workers of Failed Firms to Receive Extra Payouts, Cabinet Says
----------------------------------------------------------------
Workplace Relations Minister Kevin Andrews discloses that
cabinet had approved the change from eight weeks of
reimbursements to 16 weeks.  Thus, workers who lose their jobs
when a company goes under will receive an extra eight weeks of
basic entitlements, The Age reports.

According to Mr. Andrews, the approval was based on society's
changing expectations.

Mr. Andrews told The Australian Associated Press that, "the
community standard upon which this was originally based of eight
weeks was no longer a relevant standard."

The entitlements are handed out via the General Employee
Entitlements and Redundancy Scheme, The Age says.

Mr. Andrews clarifies that the announcement is unrelated to the
threat to 200 workers at Melbourne auto components firm Ajax,
which has gone into voluntary administration.

The budget of the scheme is uncapped, The Age notes.

"The cost will depend on obviously the number of companies," Mr.
Andrews explains.

Almost AU$700 million has been paid out via the entitlement
scheme by the government for the past five years, Mr. Andrews
reveals.

Mr. Andrews says this is a safety net, thus, for this to be
paid:

     -- a company must be placed in liquidation, not simply in
        administration; and

     -- there has to be a failure in terms of the assets of that
        company to be able to meet the employee entitlements.

Mr. Andrews denied the safety net would lead to businesses
taking greater financial risks, The Age says.

"That primary responsibility has and still remains with the
owners of the business," Mr. Andrews notes.


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

ASC CAPITAL: Creditors' Proofs of Claim Due on September 21
-----------------------------------------------------------
The creditors of ASC Capital (H.K.) Ltd are required to submit
their proofs of claim by September 21, 2006, to Joint and
Several Liquidator Lui Tin Nang.

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

The Joint and Several Liquidator can be reached at:

         Lui Tin Nang
         Room 1613, 16/F., Tai Yau Bldg
         181 Johnston Road, Wanchai
         Hong Kong


BALLINGTON INT'L: Members and Creditors to Hear Wind-Up Report
--------------------------------------------------------------
Members and creditors of Ballington International Ltd will
convene on September 12, 2006, at 10:00 a.m. and 10:30 a.m.
respectively, to receive Liquidator Jacky C W Muk's report
regarding the Company's wind-up and the manner of its property
disposal.

The meetings will be held at 27/F., Alexandra House, 18 Chater
Road, Central, Hong Kong.


CHIAO TUNG: Fitch Withdraws Ratings After Merger with ICBC
----------------------------------------------------------
Fitch Ratings affirmed on August 22, 2006, Mega International
Commercial Bank's -- formerly International Commercial Bank of
China -- ratings as:

    * Long-term Issuer Default Rating at A-,

    * Short-term rating at F2,

    * National Long-term rating at AA(twn),

    * National Short-term rating at F1+(twn),

    * Individual B/C; and

    * Support 2.

The Outlook on the ratings is Stable.  

At the same time, the agency has affirmed and simultaneously
withdrawn its ratings on Chiao Tung Bank at Individual C and
Support 2.  The rating actions follow the merger of
International Commercial with its sister company Chiao Tung to
create Mega International on
August 21, 2006.

To effect the merger, each share of the former Chiao Tung Bank
was swapped for a share of International Commercial Bank.  Fitch
views the merger as a favorable combination to produce cost and
revenue synergies due to their complementary business models.  
The enlarged Mega International Bank's assets exceed TWD1.7
trillion, making it the fourth-largest bank in Taiwan with c.
6.3% share of the country's system-wide banking assets.  

Mega International Bank will probably retain the financial
profile of International Commercial Bank, whose assets are 2.2
times those of Chiao Tung Bank.  At end-2005, International
Commercial Bank and Chiao Tung Bank reported strong capital
adequacy with their Tier 1 capital ratios at 10.23% and 13.53%,
respectively.  Fitch expects Mega International Bank to maintain
a strong capital adequacy level post-merger.

Both International Commercial Bank and Chiao Tung Bank were
fully owned subsidiaries of Mega Financial Holdings, which is
23% owned by the Taiwanese government.


CHINA STEP: Appoints Official Liquidator
----------------------------------------
Members of China Step Holdings Ltd appointed Chan Sek Kwan,
Rays, on August 12, 2006, as liquidator of the Company.

Mr. Chan can be reached at:

         Chan Sek Kwan
         Unit G, 12/F., Seabright Plaza
         9-23 Shell Street
         North Point, Hong Kong


COTAC LIMITED: Final Members Meeting Set on September 15
--------------------------------------------------------
Members of Cotac Ltd will convene for their final meeting at
8/F., Gold & Silver Commercial Building, 12-18 Mercer Street,
Central, Hong Kong on September 15, 2006, at 3:00 a.m.

At the meeting, Joint Liquidators Ho Hoi Lam and Man Fung Ying
will present final accounts of the Company's wind-up and
property disposal exercises.


COTESH COMPANY: Members to Receive Wind-Up Report
-------------------------------------------------
Members of Cotesh Company Ltd will convene for their final
meeting at 23/F., Wheelock House, 20 Pedder Street, Hong Kong on
September 22, 2006, at 8:00 a.m.

At the meeting, Liquidator Kevin Chung Ying Hui will present
final accounts of the Company's wind-up proceedings.


CRYSTALTRACE TECHNOLOGY: Creditors Must Prove Debts by Sept. 21
---------------------------------------------------------------
Creditors of Crystaltrace Technology International Company Ltd
are required to submit their proofs of debt by September 21,
2006, to Liquidator Ma Chi Chung.

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

The Liquidator can be reached at:

         Ma Chi Chung
         Room 803, Tung Hip Commercial Bldg
         248 Des Voeux Road Central
         Hong Kong


FONG ON MEDICAL: Liquidator to Present Wind-Up Report Sept. 15
--------------------------------------------------------------
Members and creditors of Fong On Medical Company Limited will
convene on September 15, 2006, 9:30 a.m. and 10:00 a.m.
respectively, at 17/F., Chun Wo Commercial Centre, 23 Wing Wo
Street, Central, Hong Kong.

At the meetings, Liquidator Kenny King Ching Tam will present
final accounts of the Company's wind-up and property disposal
activities.


GOLDTRON M. G.: Appoints Joint Liquidators
------------------------------------------
Creditors of Goldtron M.G. Engineering Co Ltd on August 4, 2006,
appointed Law Yui Lun and Wong Man Chung, Francis, as joint and
several liquidators of the Company.

The Troubled Company Reporter - Asia Pacific reported that Huen
Ho Yin, the Company's former liquidator, ceased to act for the
Company on August 4, 2006.

The Joint Liquidators can be reached at:

         Law Yui Lun
         19/F., No. 3 Lockhart Road
         Wanchai, Hong Kong


MEI FAI HATS: Liquidator to Present Wind-Up Report
--------------------------------------------------
Members of Mei Fai Hats Holdings Ltd will convene on September
15, 2006, 10:00 a.m. at 19/F., Beverly House, Nos. 93-107
Lockhart Road in Wanchai, Hong Kong, to receive Liquidator Cheng
Tai Tai's final accounts with the members of the Company's wind-
up proceedings.

According to The Troubled Company Reporter - Asia Pacific, the
Company commenced a members' voluntary wind-up of its operations
on March 17, 2006.


NITTAN CAPITAL: Joint Liquidators Cease to Act for Company
----------------------------------------------------------
Ying Hing Chiu and Chung Miu Yin, Diana on August 1, 2006,
ceased to act as joint and several liquidators for Nittan
Capital (Hong Kong) Ltd.

The former liquidators can be reached at:

         Ying Hing Chiu
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


ONE GROUP ASIA: Court to Hear Wind-Up Bid on October 11
-------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
One Group Asia Ltd on October 11, 2006, at 9:30 a.m.

Regal Hotels International Holdings Ltd filed the petition with
the Court on August 11, 2006.

The Solicitors for the Petitioner can be reached at:

         D. S. Cheung & Co
         Rooms 1910-1913, Hutchison House
         10 Harcourt Road, Central
         Hong Kong


SOUTHERN FORTUNE: Creditors Discuss Wind-Up Matters
---------------------------------------------------
Creditors of Southern Fortune Trading (Hong Kong) Ltd convened
on August 21, 2006, at 8/F., Richmond Commercial Building, 109
Argyle Street, Mongkok, Kowloon, in Hong Kong, to discuss
matters relating the Company's wind-up.

According to The Troubled Company Reporter - Asia Pacific, the
Company was facing a wind-up petition filed by Wong Fuk Po
before the Court on June 28, 2006.  

The petition will heard today, August 23, 2006.


SUPER HONOUR: Final Members Meeting Set on September 13
-------------------------------------------------------
Members of Super Honour Trading Ltd will convene for their final
meeting at Flat B, 1st Floor, Wing Shing Building, 355-359
Queen's Road West, Hong Kong on September 13, 2006, at 10:00
a.m.

At the meeting, Liquidator Chan Yuk Tan will present accounts of
the Company's wind-up.


TEEN MISSION: Names Fung as Liquidator
--------------------------------------
Shareholders of Teen Mission Association (Hong Kong) Ltd
appointed Fung Hoi Fung as official liquidator on August 10,
2006.

The Liquidator can be reached at:

         Fung Hoi Fung
         Unit B, 8th Floor
         Winsome Commercial Building
         2-8 Tai Cheung Street, Yuen Long
         N.T. Hong Kong


TOPNIT MANUFACTURING: Faces Wind-Up Proceedings
-----------------------------------------------
A wind-up petition filed against Topnit Manufacturing Ltd will
be heard before the High Court of Hong Kong on September 13,
2006, at 9:30 a.m.

Cheung Wai Chung filed the petition with the Court on July 21,
2006.

The Solicitor for the Petitioner can be reached at:

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



UNITED COMPONENTS: Posts US$19.1-M Net Loss in Second Quarter
-------------------------------------------------------------
United Components, Inc. registered revenue for the second
quarter ended June 30, 2006, of US$245.8 million, a US$13.8
million increase compared to the year-ago quarter.

The quarter also included US$10.3 million in sales by water pump
manufacturer ASC Industries, acquired by the Company during the
quarter.  Also, on June 30, the company completed the sale of
its Neapco driveline components and Pioneer specialty
distribution operations, for about US$36 million in cash.  Both
are accounted for as discontinued operations.

The Company disclosed that net loss for the quarter was US$19.1
million, including a loss of US$17.3 million related to the
discontinued operations and their sale, as well as US$14.1
million in one time charges, primarily costs related to the
acquisition of ASC and facilities consolidation costs.  Net
income for the second quarter of 2005 was US$4.4 million.

Earnings before interest, taxes, depreciation and amortization
for the Company's continuing operations was US$33.3 million for
the second quarter, compared with US$30.5 million for the year-
ago quarter.

"The acquisition of ASC Industries during the second quarter has
dramatically expanded our global manufacturing and procurement
platform," Bruce Zorich, chief executive efficer, said.  "ASC
was a first mover within the aftermarket supplier community in
establishing manufacturing and sourcing operations in China,
having operated multiple manufacturing and procurement
facilities in China for more than ten years.  We believe that
this base of operations and skilled management team will lead to
improved product quality and lower costs across the company."

During the second quarter, the Company also continued to
streamline its manufacturing footprint, with the closure of a
Mexican filter manufacturing plant and a Canadian pump
manufacturing facility.  In both cases, operations were
consolidated into larger, more efficient facilities to reduce
future costs.

In connection with the acquisition of ASC, the Company amended
and restated the credit agreement for its senior credit facility
and borrowed an additional $113 million.  As of June 30, the
company's debt stood at US$567 million.  The Company ended the
quarter with US$57 million in cash.  In addition, on July 6,
2006, following the sale of Neapco and Pioneer, the Company
repaid US$35 million of its senior credit facility borrowings.

                    About United Components

United Components, Inc. -- http://www.ucinc.com/-- is among  
North America's largest and most diversified companies servicing
the vehicle replacement parts market.  The company supplies a
broad range of products to the automotive, trucking, marine,
mining, construction, agricultural and industrial vehicle
markets.  The company's customer base includes leading
aftermarket companies as well as a diverse group of original
equipment manufacturers.

                            *   *   *

As reported in the Troubled Company Reporter on April 26, 2006,
Moody's Investors Service lowered the ratings of United
Components, Inc. -- Corporate Family, to B2 from B1; senior
secured revolving credit to B2 from B1, and senior subordinated
notes, to Caa1 from B3.  Moody's also assigned a B2 rating to
the company's new $330 million senior secured term loan D.  The
downgrade reflected Moody's expectation that UCI's credit
metrics, which eroded during 2005 as a result of higher raw
material costs, lower production volumes, other product mix
issues will come under further pressure with the acquisition of
water pump manufacturer ASC Industries, Inc.

As reported in the Troubled Company Reporter on April 24, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on United Components Inc. to 'B+' from 'BB-' and its
rating on UCI's $230 million senior subordinated notes to 'B-'
from 'B'.  Standard & Poor's also assigned its 'BB-' rating to
UCI's proposed US$330 million term loan D senior secured credit
facility and assigned a recovery rating of '1'.


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

FEDDERS CORP: Hires Blackstone to Sell Indoor Air Quality Biz
-------------------------------------------------------------
Fedders Corp. engaged The Blackstone Group to explore the
possible sale of the company's global indoor air quality
businesses.  The IAQ businesses are not core to the company's
principal global residential and commercial HVAC businesses.

Included in a possible sale would be the company's North
American IAQ production facility located in North Carolina, two
factories in Suzhou, China and sales offices located in the
United States, the United Kingdom, Germany, China, Malaysia and
India.  

                          About Fedders

Headquartered in Liberty Corner, New Jersey, Fedders
Corporation, -- http://www.fedders.com/-- is a leading global  
manufacturer and marketer of air treatment products, including
air conditioners, air cleaners, dehumidifiers, and humidifiers.  
The company has production facilities in the United States in
Illinois, North Carolina, New Mexico, and Texas and
international production facilities in the Philippines China and
India.  All products are manufactured to Fedders' one worldwide
standard of quality.

The Company's balance sheet at Dec. 31, 2005, showed
US$331,050,000 in total assets and US$331,110,000 in total
liabilities, resulting in a de minimis stockholders' deficit.

                          *     *     *

As reported in the Troubled Company Reporter on July 5, 2005,
Standard & Poor's Ratings Services lowered its corporate credit
ratings on air treatment products manufacturer Fedders Corp. and
Fedders North America Inc. to 'CC' from 'CCC'.  At the same
time, Fedders North America's senior unsecured debt rating was
lowered to 'C' from 'CC'.  S&P said the outlook remains
negative.


GENERAL MOTORS: Indian Unit to Enter Used-Car Business in 2007
--------------------------------------------------------------
General Motors' Indian subsidiary is keen on venturing into the
used car business early next year, Business Line reports.

According to Business Line, GM India is currently forging a
joint venture with Automart India for the new business plan.

GM India expects Automart India to share its used-car business
know-how and provide the necessary training so the joint venture
could proceed in the shortest time possible, Business Line
relates.

The Company is yet to give a name to the new business as plans
are still in progress.

GM's decision came after rivals Toyota Kirloskar, Hyundai, and
Tata Motors, made known their intentions to foray into the used-
car business, Business Line adds.

                      About General Motors

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

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

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

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


KANYAKA PARAMESHWARI: RBI Scraps License Due to Insolvency
----------------------------------------------------------
After determining the insolvent position of The Kanyaka
Parameshwari Mutually Aided Cooperative Urban Bank Ltd, the
Reserve Bank of India decided to cancel the Coop Bank's license
on August 17, 2006.

The Reserve Bank explained that Kanyaka Parameshwari needed to
shut down as it has already caused inconvenience to its
depositors after several failed attempts to revive its
operations.

The Registrar of Co-operative Societies, Andhra Pradesh has also
been requested to issue an order for the winding up of the Bank
and to appoint a liquidator.

Kanyaka Parameshwari was granted a license by the Reserve Bank
on July 21, 1997, to commence banking business.  However, a
statutory inspection of the bank with reference to its financial
position as of March 31, 2004, revealed that it had violated
several guidelines of the Reserve Bank.  Kanyaka Parameshwari
was facing liquidity problems during January 2005 due to a run
on its deposits.

Subsequent inspection of the bank with reference to its
financial position as of March 31, 2005, revealed further
deterioration in its financial condition.  Its deposits were
getting eroded, as realizable value of paid up capital and
reserves was negative.

Kanyaka Parameshwari was immediately issued a notice, asking the
bank to show cause as to why its banking license should not be
cancelled.  But as Bangalore Mercantile did not have a viable
plan of action for revival and the chances of its revival were
remote, the Reserve Bank decided to cancel the bank's license in
the interest of its depositors.

With the cancellation of its license and after commencement of
liquidation proceedings, the process of paying the bank's
depositors will be set in motion.

Inquiries regarding the license cancellation may be directed to:

         Shri M. Chandrashekaran
         Deputy General Manager
         Urban Banks Department
         Reserve Bank of India
         6-1-56, Secretariat Marg, Saifabad
         Hyderabad 500 004, India
         Telephone: (040)23234623
         Fax: (040)23235891
         e-mail address: ubdhyderabad@rbi.org.in


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

ARGO PANTES: Net Loss Down to IDR9.76 Billion in First Half
-----------------------------------------------------------
PT Argo Pantes Tbk posts a IDR9.76 billion net loss for the six
months ending June 30, 2006, an improvement of 91.07% over the
IDR109.30 billion net loss it posted in the six months ending
June 30, 2005, according to the Company's financials.

Sales revenue of the first half of 2006 was slightly up to
IDR470.97 billion.  Cost of sales however went up by 4.91% to
IDR507.38 billion in the first half of 2006, from the IDR483.60
billion the year before.

As of June 30, 2006, the Company's balance sheet revealed
strained liquidity with current assets of IDR362.24 billion
available to pay current libailities of IDR1.49 trillion coming
due in within the next 12 months.

The June 30, 2006, balance sheet also showed total assets of
IDR1.84 trillion and total liabilities of IDR2.06 trillion,
resulting into a shareholders' deficit of IDR225.41 billion,
2.32% lower than the previous correponding quarter's deficit of
IDR333.08 billion.

The company's financials submitted to the Surubaya Stock
Exchange is available for free at:

http://bankrupt.com/misc/tcrap_argopantes082206.pdf

                       About Argo Pantes

Headquartered in Jakarta, Indonesia, PT Argo Pantes Tbk
-- http://www.argo.co.id-- is an Indonesia-based textile  
manufacturer. The company is comprised of four business units:
Spinning, Yarn Dying, Weaving and Dying Finishing. It sells its
products to both domestic and international markets, including
countries in Asia, North America and Europe. The company's
subsidiaries include Argo Pantes Finance B.V., Argo Pantes (HK)
Ltd. and PT Mega Sentra Propertindo, which are engaged in the
financial services, sales and general trading industries.

PT Argo Pantes Tbk. is the flagship company of Argo Manunggal
Group, one of Indonesia's largest business enterprises.  

Argo Pantes booked lower sales at IDR932.53 billion for the full
year of 2005, and posted a reduced loss at IDR87.24 billion.  

Indo Pus BV, a Netherland-based company and Deutsche Bank filed
a bankruptcy suit on Argo Pantes for its default in paying US$12
million.

Argo Pantes has an outstanding debt of US$198.68 million to 18
creditors of which Bank Madiri is the largest with US$92
million.  The company is currently working out a debt
restructuring through equity conversion.

In its Annual Report for the year 2005, Hidajat Rahardjo of Ijin
Akuntan Publik -- the company's independent auditors --
expressed substantial doubt of the Company's ability to continue
as a going concern, citing the COmpany's significant deficit of
IDR1,451,834,884,000 as of December 31, 2005, and default in
payments.


ARGO PANTES: Restructures Debt with Bank Mandiri
------------------------------------------------
PT Bank Mandiri (Persero) Tbk is signing a preliminary agreement
with Argo Manunggal Group on the restructuring of its IDR2.3
trillion debt with the bank, Antara News says.

According to Antara, a Bank Mandiri official said earlier that
the Argo Group has shown goodwill in settling its debts and
expects to sign a preliminary debt restructuring agreement soon,
adding that the preliminary agreement is basically for the
debtor to show its commitment to settling its debts.

Argo Manunggal's debts will be settled through two options --
asset settlement or rescheduling of sustained debts, Antara
says.

Bisnis Indonesia quotes an unnamed source as saying that another
debtor of Bank Mandiri, Domba Mas Group will soon settle its
liabilities worth IDR1.99 trillion.

                       About Bank Mandiri

Headquartered in Jakarta, Indonesia, PT Bank Mandiri (Persero)
Tbk's -- http://www.bankmandiri.co.id-- services include:  
Internet banking, consumer banking, commercial banking and
corporate banking. The bank's subsidiaries consist of: Bank
Mandiri (Europe) Limited, which is the bank's representative in
Europe; PT Bank Syariah Mandiri, which is a bank within the
syariah banking system; PT Usaha Gedung Bank Dagang Negara,
which is a property management company; PT Mandiri Sekuritas,
which is an investment management company, and PT Bumi Daya
Plaza, which is a property management company. The bank is
supported by 10 regional offices, 54 hub offices, 98 community
offices, 334 spoke offices, 423 cash offices, four international
offices and one representative office. The bank has overseas
operations in the Cayman Islands, China, Hong Kong, London, and
Singapore

A Troubled Company Reporter - Asia Pacific report on May 22,
2006 reports that Moody's Investors Service has upgraded Bank
Mandiri's long-term deposit rating to B2 from B3, with a stable
outlook.   Bank Mandiri's short-term deposit rating of Not-
Prime, and bank financial strength rating of E+ are unaffected.

                       About Argo Pantes

Headquartered in Jakarta, Indonesia, PT Argo Pantes Tbk
-- http://www.argo.co.id-- is an Indonesia-based textile  
manufacturer. The company is comprised of four business units:
Spinning, Yarn Dying, Weaving and Dying Finishing. It sells its
products to both domestic and international markets, including
countries in Asia, North America and Europe. The company's
subsidiaries include Argo Pantes Finance B.V., Argo Pantes (HK)
Ltd. and PT Mega Sentra Propertindo, which are engaged in the
financial services, sales and general trading industries.

PT Argo Pantes Tbk. is the flagship company of Argo Manunggal
Group, one of Indonesia's largest business enterprises.  

Argo Pantes booked lower sales at IDR932.53 billion for the full
year of 2005, and posted a reduced loss at IDR87.24 billion.  

Indo Pus BV, a Netherland-based company and Deutsche Bank filed
a bankruptcy suit on Argo Pantes for its default in paying US$12
million.

Argo Pantes has an outstanding debt of US$198.68 million to 18
creditors of which Bank Madiri is the largest with US$92
million.  The company is currently working out a debt
restructuring through equity conversion.

In its Annual Report for the year 2005, Hidajat Rahardjo of Ijin
Akuntan Publik -- the company's independent auditors --
expressed substantial doubt of the Company's ability to continue
as a going concern, citing the Company's significant deficit of
IDR1,451,834,884,000 as of December 31, 2005, and default in
payments.


ARGO PANTES: Netherlands Court Declares Unit Bankrupt
-----------------------------------------------------
An Amsterdam court has approved the bankruptcy petition filed by
Indo Plus BV against Argo Pantes Finance BV, a subsidiary of
Indonesia's PT Argo Pantes Tbk, AFX News Limited reports citing
XFN-Asia.

Creditors have until Sept. 11, 2006, to submit their written
proofs of claims to the company's administrator, Sjoerd Postma,
at:

         Sjoerd Postma
         Delflandlaan 1
         Postbus 1031
         1000 BA Amsterdam
         Netherlands
         Telephone: +31 (0)20 2060700
         Fax: +31 (0)20 2060750
         e-mail: SPostma@devos.nl


The first meeting of creditors will be held on Sept. 12, 2006,
at the administrator's address.

                       About Argo Pantes

Headquartered in Jakarta, Indonesia, PT Argo Pantes Tbk
-- http://www.argo.co.id-- is an Indonesia-based textile  
manufacturer. The company is comprised of four business units:
Spinning, Yarn Dying, Weaving and Dying Finishing. It sells its
products to both domestic and international markets, including
countries in Asia, North America and Europe. The company's
subsidiaries include Argo Pantes Finance B.V., Argo Pantes (HK)
Ltd. and PT Mega Sentra Propertindo, which are engaged in the
financial services, sales and general trading industries.

PT Argo Pantes Tbk. is the flagship company of Argo Manunggal
Group, one of Indonesia's largest business enterprises.  

Argo Pantes booked lower sales at IDR932.53 billion for the full
year of 2005, and posted a reduced loss at IDR87.24 billion.  

Indo Pus BV, a Netherland-based company and Deutsche Bank filed
a bankruptcy suit on Argo Pantes for its default in paying US$12
million.

Argo Pantes has an outstanding debt of US$198.68 million to 18
creditors of which Bank Madiri is the largest with US$92
million.  The company is currently working out a debt
restructuring through equity conversion.

In its Annual Report for the year 2005, Hidajat Rahardjo of Ijin
Akuntan Publik -- the company's independent auditors --
expressed substantial doubt of the Company's ability to continue
as a going concern, citing the COmpany's significant deficit of
IDR1,451,834,884,000 as of December 31, 2005, and default in
payments.


BANK NEGARA: Posts IDR839-Billion Net Profit in First Half
---------------------------------------------------------
PT Bank Negara Indonesia (Persero) Tbk posts an IDR839-billion
net profit for the first half of 2006, according to a bank
release.

Net Interest Income was relatively stable, showing a year-on-
year growth of just 1%.  This was largely due to the 38% growth
in Interest Expense, which outpaced the 16% growth of Interest
Income.  During the period, Other Operating Income or fee-based
income grew rapidly at 32%, of which the largest contribution
came from bank-transactional activities and services that
benefited from BNI's new information technology system, namely
BNI iCONS which stands for BNI integrated and centralized on-
line system.  Going forward, BNI expects iCONS-based
transactional banking and services will continue to grow and
contribute significantly to BNI's fee income.

Other Operating Expenses for the first semester of 2006
increased by 24% compared to the corresponding period in 2005,
fuelled among other things by increases in expenses for General
and Administration, Personnel, Promotion and others. The
increase in Personnel Expense was attributed to increases in
employee salaries, in addition to the commencement of the
Voluntary Retirement Program in February 2006, which added
approximately IDR150 billion to OPEX.  Aside from this, Other
Expenses also incurred an increase stemming from the obligation
to pay for a guarantee premium to Lembaga Penjamin Simpanan
(LPS), a bank-deposit guarantee institution, the amount of
IDR113 billion in the first half of 2006. This liability has
arisen since the formation of LPS in September 2005, in which
the deposit premium is allocated to banks bi-annually in each
semester.

Provisioning expense declined by 15% from IDR979 billion during
the first semester 2005 to IDR832 billion in the first half of
this year. This decline came at a time when the non-performing
loan (NPL) ratio increased to 16.58% compared to the
corresponding period of the previous year, which is an
indication of the relatively high quality of collaterals that
were pledged by debtors. Whereas for the balance sheet, several
key indicators registered positive growth except for the balance
of outstanding loans.

The bank's press release included the following accounts:

             PT Bank Negara Indonesia (Persero) Tbk

                      Profit Loss Accounts

                       (in IDR, billions)


                                  For the half year ended

                              June 30, 2006   June 30, 2005  

                              -------------   -------------



Net Interest Income                  3,713           3,672

Other Operating Income               1,157             878

Other Operating Expenses             2,816           2,278

Provisioning Expense on

Earning Assets Loss                   832             979

Profit Before Tax                    1,212           1,314

Profit After Estimated Tax             839             921


                         Balance Sheet

Total third-party funds grew significantly by 11%, from IDR105.5
trillion to IDR116.9 trillion.  Funding structure as of June
2006 still comprised primarily of low-cost funds (59%), compared
to high-cost funds (41%) with a ratio of current account
(giro):savings:deposits of 29%:30%:41%.  Compared to that of the
previous year, the ratio of deposits to total funds on June 30,
2006 was significantly higher, mainly as a result of increased
interest rate on bank deposits.

Total outstanding loans was relatively stagnant as a result of
the low demand for credit due to the inconducive macro-economic
environment. Total outstanding loans declined by 2% to IDR60.5
trillion. However, despite declining volume and rising interest
rates, the quality of these earning assets actually improved, as
indicated by the increase in Net Interest Income of 1% during
the period under review.

The bank's press release included the following balance sheet
accounts:

             PT Bank Negara Indonesia (Persero) Tbk

                    Balance Sheet Indicators

                       (in IDR, trillions)



                                  As of           As of

                              June 30, 2006   June 30, 2005  

                              -------------   -------------



Total Assets                       146,800         138,839

Total Loans                         60,538          61,483

Government Bonds

(held-to-maturity)                 31,554          32,416

Third-party Funds                  116,906         105,514

Stockholders' Equity                12,083          11,611

The rapid rise of third-party deposits, combined with the
decline of outstanding loans, resulted in the decline of the
Loan-to-Deposit (LDR) from 58.27% to 51.78%. Other key financial
ratios are as follows:

             PT Bank Negara Indonesia (Persero) Tbk

                           Key Ratios



                                  As of           As of

                              June 30, 2006   June 30, 2005  

                              -------------   -------------



CAR accounting for

credit risk                        20.02%          16.67%

CAR accounting for

market risk                        19.04%          15.98%

NPL                                 16.58%          12.96%

Net NPL                             11.25%           7.82%

Return on Assets                     1.64%           1.95%

Return of Equity                    19.82%          15.32%

Net Interest Margin                  5.45%           5.72%

Operating Cost to

Operating Income                   85.90%          82.32%

Loan to Deposit                     51.78%          58.27%


The high interest rate which has resulted in significantly
higher interest expense has also influenced Net Interest Margin,
which declined from 5.72% to 5.45%. On the equity side, BNI's
CAR is well above the minimum requirement of 8%, reaching as
much as 20,02% (including credit risk) and 19,04% (including
market risk).

The efforts to restructure non-performing loans have not yielded
optimum results as expected, and have continued to date. This is
reflected from the NPL ratio as per end of June 2006 which stood
16.58% with a total NPL amounting to approximately Rp 10
trillion. Corporate loans accounted for the majority of these
NPLs (51% of total) followed by middle segment loans (28%),
small and medium-sized business loans (14%), consumer loans (6%)
and syariah loans (1%).

To date, BNI continues to rehabilitate these non-performing
loans through the so-called 3R remedial program for loan
rescheduling, loan reconditioning and loan restructuring. With
respect to the settlement of NPL, BNI places its hopes that the
outcome of the Financial Sector Policy Package introduced
jointly by the Government of Indonesia and Bank Indonesia in
early July 2006, will expedite the resolution of non-performing
loans in state-owned banks significantly.

                       About Bank Negara

Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia
(Persero) Tbk -- http://www.bni.co.id-- is an Indonesia-based  
financial institution. The bank's products and services include:
Individual, Business, Syariah, Micro Banking, and Online
Feature. The Bank has approximately 700 correspondent banks, 914
local branches and five oversea branches located in New York,
London, Tokyo, Hong Kong and Singapore. The bank has five
subsidiaries: PT BNI Multi Finance, a financial services
company; PT BNI Securities, a securities company; PT BNI Life
Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen
Ventura, a venture capital company, and PT BNJI Ventura Satu, a
venture capital company.

                         *     *     *

A Troubled Company Reporter - Asia Pacific report on May 22,
2006 says that Moody's Investors Service has lifted Bank Negara
Indonesia's senior debt rating to B1 from B2, and long-term
deposit rating to B2 from B3.  The revised ratings carry a
stable outlook.

Bank Negara's short-term deposit rating of Not-Prime, and bank
financial strength rating of E are unaffected.

Another TCR-AP report on May 24, 2006 states that Fitch Ratings
affirmed Bank Negara's:

   * Long-term Foreign and Local Currency Issuer Default Ratings

     at 'BB-';

   * Short-term rating at 'B';

   * Individual rating at 'D'; and

   * Support rating at '4'.

Further, another subsequent TCR-AP report on July 17, 2006 holds
that Standard & Poor's Ratings Services revised the outlook on
the local currency counterparty credit rating on Bank Negara to
stable from positive.  At the same time, Standard & Poor's
affirmed its foreign and local currency ratings on BNI
(B+/Stable/B).


LIPPO KARAWACI: Lower Interests Drive Higher Net Income
-------------------------------------------------------
PT Lippo Karawaci Tbk booked a IDR175.00-billion net income for
the six months ending June 30, 2006, a slight increase from the
previous corresponding quarter's posted net income of IDR171.31
billion, according to the company's financials.

Revenues fell 4.23% to IDR911.98 billion in the first half of
2006, from IDR952.24 billion a year ago.  Expenses also fell
6.69% to IDR451.60 billion from IDR483.92 billion.

The Company posted an other income account of IDR14.66 billion,
due to a lower interest expense account in the first half of
2006.  The interest expense for the six months ending June 30,
2006, amounted to IDR2.91 billion, down 81.51% from IDR15.74
billion in the previous year's first half.

Lippo Karawaci's Consolidated Financial Statements for the six
months ending June 30, 2006, is available for free at:

http://bankrupt.com/misc/tcrap_lippokarawaci082206.pdf

                    About Lippo Karawaci Tbk

PT Lippo Karawaci Tbk -- http://www.lippokarawaci.co.id/-- is  
one of the largest property developers in Indonesia with a
market capitalization of over USD550 million.  As of end-2005,
it possessed a huge land bank reserve of 2,079 hectares.  The
Company also operates four hospitals and four hotels in
Indonesia.  

A Troubled Company Reporter -- Asia Pacific report on May 1,
2006 reports that Standard & Poor's Ratings Services announced
that its ratings on PT Lippo Karawaci Tbk. (B+/Stable/--) was
not affected by the company's decision to sell its entire
interest in a property development project in Singapore.

A TCR-AP report on April 28, 2006, stated that Moody's Investors
Service has confirmed the (P)B1 provisional local currency
corporate family rating of PT Lippo Karawaci Tbk (LK) following
the company's announcement that it has entered into an agreement
to sell its entire interest in the property development project
at Kim Seng Road, Singapore, and which the company had acquired
for around IDR2 trillion in mid April.  The outlook is stable.  
This concludes the review initiated on April 19, 2006.

At the same time, Moody's has placed the (P)B2 provisional
foreign currency senior unsecured bond rating of Lippo Karawaci
Finance B.V. and guaranteed by LK on review for possible
upgrade.  This reflects the review for possible upgrade status
of Indonesia's sovereign rating.

Another TCR-AP report on March 28, 2006 says that Fitch Ratings
has assigned a long-term foreign currency and local currency
issuer default ratings of 'B+' to Indonesia-based  PT Lippo
Karawaci Tbk.  The Outlook for the ratings is Stable.  Fitch has
also assigned a rating of 'B+' and a Recovery Rating  of 'RR4'
to the USD250 million unsecured floating-rate notes due  2011
issued by Lippo Karawaci Finance B.V. and guaranteed by PT Lippo
Karawaci Tbk.  


NOBLE FINANCE: Market Waits on High Yield Deal
----------------------------------------------
The Asian high-yield debt market is hanging its hopes this week
on a US$150 million five-year trade by Indonesia's Noble Finance
B.V., Finance Asia reports.

Citigroup is expected to price Noble Finance's US$150 million
five-year deal.  The lead published price guidance in the 11.5%
area for the Reg-S/144a deal after it wrapped up roadshows in
Europe, the United States and Asia.

Initially the deal had been worth US$240 million but has since
been downsized, Finance Asia explains.

                          Difficulties

Finance Asia adds that it has been difficult for Asia's markets
in general and the high-yield space specifically.  At the
moment, the market environment that Citigroup is shopping Noble
into is less than favourable.  However, if the deal can get done
it will go some  way in providing a yardstick for high-yield
investor sentiment.

At the moment the market has four potential sub-investment grade
deals pending; Aside from Citigroup's Noble, Deutsche Bank has
two Indonesian mandates.  One is a downsized US$150 million deal
for Indonesian media and telco group Media Nusantara Citra --
that deal had initially been looking at a size of around US$250
million -- and the other is for paper producer Fajar Surya
Wisesa.  Similarly Matahari is still waiting for the opportune
time to launch.

With the August holiday season in full swing most banks and
investors are running their respective desks with skeleton
crews. The overall market apathy has been further compounded by
the escalating military action in the Middle East and the
terrorist plot in London.

Additionally, the region's offshore primary high-yield market
has been struggling in the face of increased competition from
the private placement market.

             Rough Sailing Ahead for Noble Finance

As such, the market has seen a sell-off in secondary trading in
recent days, and investors have appeared relatively indifferent
towards new issuance, with overall liquidity levels
deteriorating.

Without a doubt the Noble deal is no easy sell. Indeed it has
already been downsized from US$240 million to its current US$150
million.  Furthermore, the lead will have to overcome some
investor concerns regarding the company's ownership structure of
the issuer. Noble Finance is a BVI created by Mulia Industrindo.

Mulia Industrindo is controlled by Joko Soegiarto Tjandra, who
is currently in negotiations to reach a settlement for US$560
million in debt that has been in default since 2001.

The deal is secured by three commercial properties -- PT Mulia
Intipelangi, PT Mulia Intanlestari and PT Sanggarcipta
Kreasitama on a joint basis -- all in Jakarta and owned by the
Mulia Industrindo group. These three properties are considered
the crown jewels of Mulia's assets, all enjoy full occupancy and
are heavily cashflow positive.

However, the deal does boast a strong covenants package that
goes someway to see that investor interests are protected. The
deal features an assurance that no dividends will be paid during
the duration of the bond and a cashflow waterfall structure that
provides adequate coverage for interest payment and taxes.

Additionally, the deal's structure separates the three holdings
into a separate entity that is not attached to Mulia directly.

                      About Noble Finance

Noble Finance B.V.  is a financing vehicle incorporated by its
parent guarantors, PT Mulia Intipelangi, PT Mulia Intanlestari,
and PT Sanggarcipta Kreasitama, three property holding companies
based in Indonesia.

A Troubled Company Reporter - Asia Pacific report on August 9,
2006 states that Fitch Ratings has assigned a National Long-term
rating of 'BBB-(idn)' to Indonesia's Noble Finance B.V.  Fitch
has also assigned a 'B' Long-term local currency Issuer Default
Rating to Noble.  The Outlook for the ratings is Stable.  At the
same time, the agency also assigned an expected rating of 'BBB-
(idn)' to the proposed US$240 million senior secured notes due
2011 issued by Noble.

Another TCR-AP report on July 17, 2006 states that Standard &
Poor's Ratings Services said today that it assigned its 'B'
corporate credit rating to Noble Finance B.V.  The outlook is
stable.


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

FORD MOTOR CREDIT: JCR Puts BB- Bond Ratings on Watch
-----------------------------------------------------
Japan Credit Rating Agency, Ltd. on August 22, 2006, placed
under Credit Monitor (Negative) the BB- ratings on the bonds and
long-term senior debts of Ford Motor Credit Co.

Placement of Credit Monitor (Negative) was prompted by sharply
deteriorating North American auto sales of Ford Motor Company,
which necessitated significant production cutbacks in the third
and fourth quarter, announced on August 18, 2006.  JCR sees a
possibility that persistent market share losses in high-margin
segments will put pressure on its already weak profitability,
and together with additional restructuring cost, will undermine
its currently strong liquidity through substantial negative
cashflows.

Ford continues to be exposed to increasing competitive pressure
in its key North American market, and is suffering from
pressures on profitability emanating from a deterioration of
sales mix and market share erosions, which was beyond JCR's
prior expectation.  JCR is especially concerned about signs of
weakness in pickup sales, which, together with already faltering
sales of another high-margin mid to large size SUVs segment,
will lead to further deterioration of sales mix, putting further
pressures on its already weak profitability.  Negative cashflows
associated with restructuring cost is likely to undermine its
currently strong liquidity going forward.

JCR intends to complete the rating review for possible downgrade
within one to one and a half month's time, in order to
incorporate expected impact of revised restructuring plan to be
announced by Ford in September, and North American auto sales
development.

In JCR's view, Ford Credit and Ford have a very close
relationship with each other through their operations and
shareholding, and thus Ford Credit's credit rating is strongly
influenced by the credit standing of Ford. While Ford relies on
Ford Credit to provide financing to its dealers and retail
customers purchasing Ford vehicles, Ford Credit heavily depends
on Ford's dealership system and retail customers for financing
revenue.

                     About Ford Motor Credit

Ford Motor Credit Co. -- http://www.fordcredit.com/-- is one of  
the world's largest auto financing companies, and funds autos
for and through some 12,500 Ford, Lincoln, Mercury, Jaguar, Land
Rover, Mazda, Aston Martin, and Volvo dealerships.  Ford Motor
Credit Co. finances new, used, and leased vehicles (including
about 40% of new Fords sold in the US) and provides wholesale
financing, mortgages, and capital loans for dealers.  The
Company also offers individual and business fleet financing,
while its insurance operations offer extended service contracts,
automobile insurance, wholesale inventory insurance, and credit
life and disability insurance.  In Asia Pacific, the Company has
operations in Australia, China, Indonesia, Japan, New Zealand,
Philippines, Taiwan, Thailand and Vietnam.


FORD MOTOR CREDIT: Fitch Cuts Default Rating to B
-------------------------------------------------
Fitch Ratings downgraded on August 18, 2006, the Issuer Default
Rating of Ford Motor Company and Ford Motor Credit Company to
'B' from 'B+'.  Fitch also lowered Ford's senior unsecured
rating to 'B+/RR3' from 'BB-/RR3' and Ford Credit's senior
unsecured rating to 'BB-/RR2' from 'BB/RR2'.  The Rating Outlook
remains Negative.

The downgrade is based on the significant production cutbacks in
the third and fourth quarter that reflect persistent share
losses across key product categories.  Negative cash flows,
including restructuring costs, could exceed US$7 billion in
2006, including working capital and restructuring outflows. Cash
outflows related to restructuring actions will continue in 2007,
although operating losses could moderate as cost reduction
efforts are realized.  Sustained market share losses or a
decline in economic conditions through 2007 would result in
continued high levels of cash outflows and erosion of liquidity.  
Although liquidity remains adequate, progress in achieving
structural cost reductions and maintaining the confidence of
trade creditors will remain critical over the near term.

Implicit in the production cutbacks are expectations of
continued weak pickup sales that have resulted in extended
inventories.  Volume declines in Ford's pickup segment, along
with continued declines in mid-size and large SUVs, are likely
to accelerate revenue declines and negative cash flows in 2006.  
Although continued share losses and price erosion were
anticipated as a result GM's upcoming refreshed pickup line and
the start-up of Toyota's new pickup plant, vulnerability to this
segment has increased as a result of high gas prices, a
potential slowdown in economic conditions, and a contracting
construction segment.

Ford has demonstrated recent growth in certain car segments,
where industry sales have been migrating, but volumes and
profitability in these segments will be insufficient in the
short-term to offset the decline in higher-margin mid-size and
large SUVs and pickups.

Ford's product pipeline is modest over the near term, although
two crossover products to be introduced in 2006 (the Ford Edge
and Lincoln MKX) are expected to partially offset continued
share erosion.

Ford's 'RR3' Recovery Rating reflects good recovery prospects of
50-70% in the event that the company is forced to seek
protection under Chapter 11.  Recovery values benefit from
Ford's holdings in Mazda, operations in Asia and South America,
very modest recoveries from Premier Automotive Group operations,
and 100% ownership in Ford Credit.  Recovery for senior
unsecured holders also benefits from being in a superior
position to the Capital Trust II securities, which represents
approximately 29% of consolidated debt.  Recovery values
associated with Ford Credit are likely to decline as Ford
Credit's balance sheet shrinks and repatriated capital is used
to finance operating losses.

Fitch's recovery analysis also projects that due to declining
market share and low current capacity utilization, at least one
additional assembly plant will be shut down, in addition to
those already announced.

Fitch's recovery scenario incorporates a Chapter 11 filing of
North American operations only, and would result in significant
claims from working capital liabilities -- trade creditors,
dealers, fleet customers, etc. -- in addition to unsecured
debtholders.

Fitch also factored in liabilities related to on and off-balance
sheet liabilities that could augment claims.  Fitch did not
factor in claims related to potential termination or alteration
of legacy OPEB and pension costs.  In the event of a filing,
Fitch anticipates that Ford would not attempt to terminate its
pension plans.  Changes to OPEB liabilities are expected to be
negotiated as part of a new labor agreement in the event of a
Chapter 11 filing, without resulting in claims against the
estate.  The restructured enterprise value includes reduced
production volumes, and structural cost reductions to an extent
that a 3% operating margin could be achieved in North America.

Declining revenues are unlikely to reverse through 2007 due to
market share losses and declining mix.  Despite modest progress
on the cost side, the pace of cost reductions is not expected to
keep up with revenue losses, assuming continued high commodity
costs, thereby continuing negative cash flows.  Over the
intermediate-term, reducing inventories and producing closer to
demand will enhance even-flow production and production
efficiencies, and reduce reliance on ruinous incentive programs.  
However, lower production levels, coupled with already weak
capacity utilization, ill increase short-term cash outflows and
heighten the urgency of achieving substantive structural cost
reductions.

Ford's production cutbacks will also heighten operating and
financial stresses throughout the supply chain, increasing the
risks of further bankruptcies or other supply disruptions.
Supply chain stresses are expected to result in increased risks
of financial support and will limit the potential for any cost
savings to accrue to Ford over the near term from the
restructuring of the supply base.

Ford Credit's IDR remains linked to those of Ford due to the
close business relationship between them.  Fitch expects FMCC's
earnings and dividends to decline noticeably in 2006 primarily
due to lower receivables outstanding and margins. FMCC has
benefited from lower provision expense, as the quality of its
receivables pool has increased, but the pace of these
improvements is expected to slow going forward.

Fitch believes that FMCC maintains a good degree of liquidity
relative to its rating.  Supporting this is FMCC's ability to
sell or securitize a broad spectrum of assets such as retail
finance, lease, and wholesale loans.  Moreover, FMCC continues
to hold high cash balances and its assets mature faster than its
debt.  FMCC's 'RR2' Recovery Rating indicates superior recovery
prospects on unsecured debt resulting from solid unencumbered
asset protection, although discounted to account for stressed
performance and disposition.

                    About Ford Motor Credit

Ford Motor Credit Co. -- http://www.fordcredit.com/-- is one of  
the world's largest auto financing companies, and funds autos
for and through some 12,500 Ford, Lincoln, Mercury, Jaguar, Land
Rover, Mazda, Aston Martin, and Volvo dealerships.  Ford Motor
Credit Co. finances new, used, and leased vehicles (including
about 40% of new Fords sold in the US) and provides wholesale
financing, mortgages, and capital loans for dealers.  The
Company also offers individual and business fleet financing,
while its insurance operations offer extended service contracts,
automobile insurance, wholesale inventory insurance, and credit
life and disability insurance.  In Asia Pacific, the Company has
operations in Australia, China, Indonesia, Japan, New Zealand,
Philippines, Taiwan, Thailand and Vietnam.


FORD MOTOR CREDIT: S&P Places Credit Ratings on Watch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services on August 18, 2006, placed
its 'B+' long-term and 'B-2' short-term ratings on Ford Motor
Co., Ford Motor Credit Co., and related entities on CreditWatch
with negative implications.  The 'BB-' long-term rating and 'B-
2' short-term ratings on FCE Bank PLC, Ford Motor Credit's
European bank, were also placed on CreditWatch with negative
implications, reflecting its linkage to the Ford rating.

The Ford CreditWatch placement reflects S&P's decision to review
the ratings in light of the sharply lower production schedule
just announced for light trucks in the fourth quarter -- down
155,000 units, or 28%, versus fourth-quarter production in 2005.  
These cuts, along with the very likely significant cost
reductions to be announced in September, reveal the magnitude of
turnaround efforts needed to deal with Ford's deteriorating
product mix, lower market share, and excess production capacity
in North America.

"The lower production will have a significant negative effect on
Ford's cash flow in the fourth quarter," said Standard & Poor's
credit analyst Robert Schulz.

Although Ford's North American automotive operations are cash-
flow negative, Ford's liquidity should still be sufficient
relative to near-term requirements, as the Company has a large
liquidity position.

                    About Ford Motor Credit

Ford Motor Credit Co. -- http://www.fordcredit.com/-- is one of  
the world's largest auto financing companies, and funds autos
for and through some 12,500 Ford, Lincoln, Mercury, Jaguar, Land
Rover, Mazda, Aston Martin, and Volvo dealerships.  Ford Motor
Credit Co. finances new, used, and leased vehicles (including
about 40% of new Fords sold in the US) and provides wholesale
financing, mortgages, and capital loans for dealers.  The
Company also offers individual and business fleet financing,
while its insurance operations offer extended service contracts,
automobile insurance, wholesale inventory insurance, and credit
life and disability insurance.  In Asia Pacific, the Company has
operations in Australia, China, Indonesia, Japan, New Zealand,
Philippines, Taiwan, Thailand and Vietnam.


JAPAN AIRLINES: Revises Route and Frequency Plan for Fiscal 2006
----------------------------------------------------------------
Japan Airlines revises its route and frequency plan for the
second half of fiscal 2006 ending March 31, 2006.  From October
29, 2006, JAL will increase the number of flights between Japan
and China, India and Thailand, subject to government approval.

JAL will establish a daily service between Nagoya, Chubu, and
Guangzhou by increasing the number of flights on the route from
three to seven per week.  Flight frequency will be increased on
JAL's Tokyo-Bangkok route from 14 to 21 flights per week,
providing passengers with a three flights per day service.  The
airline will also increase the number of flights between Tokyo
and New Delhi from three to four flights per week.

JAL will reduce from 14 to 7 flights per week its Tokyo-Chicago
service, and suspend its four times-a-week service between
Nagoya-Manila.

Based on a bilateral aviation agreement between the governments
of Japan and China in July 2006, JAL plans to further increase
flight frequency on its routes between the two countries.

The second half route and frequency revisions form part of the
JAL Group's ongoing restructuring of its international,
domestic, and cargo businesses.  Through route restructuring JAL
aims to build a more profit-focused network, and return its
international passenger business to profitability in FY2006.

In the JAL Group medium-term business plan FY2006-2010, the
company forecasts a JPY13.5 billion, or US$112.5 million, income
improvement in FY2006 from route suspensions, flight frequency
adjustments, and a review of aircraft scheduling.  JAL's route
restructuring measures led to an income improvement of JPY3
billion, or US$25 million, in FY2005.

                      About Japan Airlines

Tokyo-based Japan Airlines International Company, Limited
-- http://www.jal.com/en/-- was created as a result of the  
merger of Japan Airlines and Japan Air Systems to boost domestic
coverage.

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

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

                          *     *     *

Fitch Ratings Tokyo analyst Satoru Aoyama said that the
Company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position.  Fitch assigned
a BB- rating on the Company, which is three notches lower than
investment grade.

Moody's Investors Service gave Ba3 senior unsecured and issuer
ratings for Japan Airlines International Co., Ltd., as well as
its Ba3 issuer rating for Japan Airlines Domestic Co., Ltd.

On July 20, 2006, Standard & Poor's Ratings Services had
affirmed its B+ long-term corporate credit and senior unsecured
debt rating on the Company.


JAPAN AIRLINES: Posts Traffic Results for 2006 Summer Period
------------------------------------------------------------
Japan Airlines Group on unveiled on August 21, 2006, its results
for international and domestic traffic for the Japanese summer
vacation period, stretching this year from August 11 to August
20, 2006.

During the 10-day summer vacation period, the JAL Group -- based
on the combined results of JAL, JALways and Japan Asia Airways -
- carried a total of 459,059 international passengers, just 1%
less than in the same vacation period last year.

The results showed that leisure travel to China was definitely
back on the road to full recovery with passenger numbers up
38.3% on last year's figures.  Last year's figures had been
severely affected by anti-Japanese demonstrations held in China
in April 2005.  Passenger traffic on transpacific routes to the
mainland of North America was good, up 14.5% on last year's
results; and passenger numbers up a moderate 1.4% on Southeast
Asia routes.

Route restructuring over the past year resulted in a 9.2%
decrease in the total number of international seats available,
which to some extent led to the high international seat load
factor of 82.8%.

The JAL Group domestic summer vacation domestic passenger total
was 1,464,873, 2.4% up on last year's result.  Domestic seat
supply was 0.2% lower than the same period last year and load
factor was 72.3%.

                    About Japan Airlines

Tokyo-based Japan Airlines International Company, Limited
-- http://www.jal.com/en/-- was created as a result of the  
merger of Japan Airlines and Japan Air Systems to boost domestic
coverage.

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

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

                          *     *     *

Fitch Ratings Tokyo analyst Satoru Aoyama said that the
Company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position.  Fitch assigned
a BB- rating on the Company, which is three notches lower than
investment grade.

Moody's Investors Service gave Ba3 senior unsecured and issuer
ratings for Japan Airlines International Co., Ltd., as well as
its Ba3 issuer rating for Japan Airlines Domestic Co., Ltd.

On July 20, 2006, Standard & Poor's Ratings Services had
affirmed its B+ long-term corporate credit and senior unsecured
debt rating on the Company.


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

BALLY TOTAL: Revises Potential Growth Indication for 2006
---------------------------------------------------------
Bally Total Fitness Holding Corp. disclosed that due in
substantial part to continued softness in member joins compared
to prior periods, the Company's prior indication as to potential
growth in "cash contribution" in 2006 versus 2005 will not be
achieved.

Bally Total anticipates the amount for 2006 will be 10 to 20%
lower than the US$120 million cash contribution previously
disclosed for 2005.  However, the Company continues to
anticipate that its cash flow and availability under its senior
secured credit facility will be sufficient to meet its liquidity
needs for working capital and other cash requirements through
the first quarter of 2007.  

Bally Total Fitness also stated that its previously announced
process to evaluate strategic alternatives, which had focused on
a sale or merger of the Company, is now expected to focus on
exploring other financing alternatives, such as a
recapitalization, private placement, underwritten rights
offering or other corporate restructuring.

In light of these developments and the fact that its discussions
with potential interested parties have not to date resulted in
any proposal, agreement or transaction involving a sale or
merger of the Company, the Strategic Alternatives Committee of
Bally Total Fitness has determined, after consultation with its
outside financial advisors, that other alternatives should now
be pursued.

Bally also announced that while the Company will not be filing
its Quarterly Report on Form 10-Q for the three months ended
June 30, 2006, in a timely manner, it expects to file that
report before the Sept. 11, 2006, expiration of the initial
waiver period previously obtained from the Company's senior bank
lenders and bondholders.  On Aug 10, 2006, the Company filed a
Form 12b-25 pertaining to this delay in filing the second
quarter Form 10-Q.

                       About Bally Total

Bally Total Fitness Holding Corp.
-- http://www.Ballyfitness.com/-- is the largest and only    
nationwide commercial operator of fitness centers, with over 400
facilities located in 29 states, Mexico, Canada, Korea, the
Caribbean, and China under the Bally Total Fitness, Bally Sports
Clubs and Sports Clubs of Canada brands.  Bally offers a unique
platform for distribution of a wide range of products and
services targeted to active, fitness-conscious adult consumers.

                         *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.


BALLY TOTAL: Paul Toback Resigns as President and CEO
-----------------------------------------------------
Bally Total Fitness Holding Corporation reported the
resignation, effective immediately, of Paul A. Toback as
Chairman, President and Chief Executive Officer pursuant to a
Separation Agreement dated Aug. 10, 2006.

The Company said that Don R. Kornstein has been appointed
interim Chairman, and Barry R. Elson has been appointed acting
CEO.

"Our primary near-term focus at Bally remains addressing the
Company's capital structure," said Mr. Kornstein.  "At the same
time, we are continuing to aggressively execute our business
plan to enhance the Company's prospects for long-term success.  
Bally has a strong brand franchise and customer base, and we
look forward to building on this platform to create value for
shareholders," said Mr. Kornstein.

Mr. Kornstein further stated, "On behalf of the Board of
Directors, I wish to recognize the commitment and energy Paul
Toback devoted to this Company as a director and officer and
acknowledge his strong leadership of our management team and
workforce during his tenure at Bally Total Fitness.  We wish him
well in his future endeavors."

Mr. Toback stated, "I appreciate the opportunity I have had over
nearly a decade in leadership roles at Bally.  Through our
efforts, we put the Company on a path of progress.  Now is the
time for others to bring their ideas and energy to the next
phase of the Company's development."

The Board of Directors of Bally intends to explore options for a
permanent replacement for Mr. Toback.

Mr. Kornstein was elected to the Bally Board of Directors in
January 2006.  He is founder and managing partner of Alpine
Advisors LLC, a strategic, financial and management consulting
firm serving a broad range of companies.  Prior to founding
Alpine Advisors, Mr. Kornstein served as Chief Executive
Officer, President and Director of Jackpot Enterprises Inc., a
New York Stock Exchange-listed company.  Mr. Kornstein was also
a Senior Managing Director in the investment banking department
of Bear, Stearns & Co. Inc. for 17 years.

Mr. Elson was elected to the Bally Board of Directors in January
2006 and is a member of the Strategic Alternatives Committee.  
He served as Acting Chief Executive Officer and Director of
Telewest Global, Inc., a provider of entertainment and
communication services.  Mr. Elson earlier also held the posts
of Chief Operating Officer of Urban Media, President of Conectiv
Enterprises, Executive Vice President at Cox Communications and
Vice President of the New York Nets, New York Islanders and
Colorado Rockies.

                         About Bally

Bally Total Fitness Holding Corp. -- http://www.Ballyfitness.com  
-- is a commercial operator of fitness centers, with over 400
facilities located in 29 states, Mexico, Canada, Korea, the
Caribbean, and China under the Bally Total Fitness, Bally Sports
Clubs and Sports Clubs of Canada brands.  

                        *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.


HERBALIFE LTD: Second Quarter Net Income Increases to US$36 Mil.
----------------------------------------------------------------
Herbalife Ltd. reported record second-quarter net sales of
US$466 million, an increase of 21.1% compared with the same
period of 2005.

The growth was attributable to increases in the company's three
largest regions, the Americas, Asia Pacific, and Europe, which
achieved net sales growth of 39.2%, 24.7%, and 2.4%,
respectively, versus the second quarter of 2005.  Partially
offsetting the growth in these regions was a 6.3% decline in
Japan.

"We are pleased to report that the second quarter marked our
10th consecutive quarter of year-over-year double-digit sales
growth," The Company's chief executive officer, Michael O.
Johnson, said.

"Our commitment to supporting the recruiting, retailing and
retention efforts of our distributors has served as a key
catalyst in accelerating our top line growth."

During the second quarter of 2006, new distributor supervisors
increased 41.7% versus the second quarter of 2005.  The
company's high-level Presidents Team increased 15.9% to 924
members during the quarter, compared to 2005, and one new
distributorship attained the prestigious level of Chairman's
Club, bringing the total to 29 members.

                      Financial Performance

For the quarter ended June 30, 2006, Herbalife reported net
income of US$36.3 million compared with US$22.8 million in the
second quarter of 2005.  This increase was primarily
attributable to double-digit net sales growth and lower interest
expense, offset by moderate increases in selling, general and
administrative expenses.

Excluding the impact of a US$5.5 million non-cash tax charge
associated with restructuring the ownership of Herbalife's China
subsidiary in the second quarter of 2005, second quarter 2006
net income increased 28.6% compared with the same period in
2005.

At June 30, 2006, Herbalife's balance sheet showed US$837.801
million in total assets, US$668.913 million in total
liabilities, and US$168.888 million in total stockholders'
equity.

For the six months ended June 30, 2006, the company reported net
income of US$75.0 million compared with US$36.1 million in same
period last year.

Herbalife invested US$13.4 million in capital expenditures
during the second quarter, primarily related to management
information systems, the development of the company's direct-to-
consumer platform, additional infrastructure investments in
China and the relocation of the company's Americas region
headquarters.

              Second Quarter 2006 Business Highlights

During the quarter, Herbalife hosted a record number of
distributors at a variety of regional and local events.  One of
the major highlights was the Asia Pacific Extravaganza hosted in
Bangkok, Thailand, which attracted over 15,000 distributors from
13 countries, including over 2,500 combined from Japan and
China.  The three-day event included training sessions on
business building techniques and new product introductions, as
well as recognition of achievements over the past year.  In
Europe, over 16,000 distributors attended 18 mini-Extravaganzas
hosted in 17 countries.

Furthermore, Herbalife attracted over 4,500 distributors to its
World Team School event in Brazil and almost 5,000 attended a
variety of leadership training sessions across South America.

"By providing our distributors with events focused on training,
motivation and the sharing of best practices, we reinforce our
commitment to continuous investment in initiatives that will
help our distributors grow their businesses," Mr. Johnson said.

Global expansion of the company's distributor business methods
continued to gain traction during the quarter.  Over 16,000
distributors were trained on the Nutrition Club party-planning
concept, which was introduced into six new markets during the
quarter, and the Personal Wellness Evaluation method expanded
into several new markets.

"We are extremely pleased with the global acceptance of our
Nutrition Club method and continue to support our distributors
in acculturating the concept in markets beyond Mexico," Greg
Probert, the company's president and chief operating officer,
said.

"Additionally, we are equally excited that new business building
techniques are being formulated and the unification within our
distributor organization is accelerating the expansion of these
best practices worldwide," Mr. Probert continued.

Herbalife also remained focused on the globalization of its core
products during the quarter.  LiftOff(TM) expanded into eight
European markets and Japan.  NouriFusion was also introduced to
14 new markets, including Brazil, Turkey and Russia.
Furthermore, reinforcing its commitment to distributor support
and training, the company named the 11th member to its Medical
Advisory Board, U.K. sports medicine specialist Ralph Rogers
M.D.

Global branding continues to be a key component in supporting
the recruiting and retailing efforts of Herbalife's
distributors.  Sponsorships during the quarter included the
Florence Fitness Festival, the ITU Madrid Triathlon World Cup,
the Hong Kong Annual Dragon Boat Championships and the 1st KBS
SKY Marathon in Korea.

"Our distributors are excited about these branding initiatives,
and we will continue to invest strategically in grassroots
events to accelerate distributor activation, associate Herbalife
with healthy, active lifestyles and increase consumer awareness
of the Herbalife brand," Mr. Johnson said.

During the quarter, the company also supported the opening of
three new Casa Herbalife programs in Mexico, Argentina, and
Thailand.

"Through the Casa Herbalife program, we are able to build upon
the dream of Mark Hughes, our founder, of providing healthy
meals to underprivileged children around the world," Mr. Johnson
said.

Furthermore, the company continued the execution of its China
strategy by opening nine new stores in eight key provinces,
bringing the total to 28 stores in 17 provinces as of June 30,
2006.

"I am pleased with the progress we have made in China and we
remain encouraged about our long-term prospects in this
important market," Mr. Probert said.

"We have expanded our retail presence in key provinces
throughout the mainland and remain well positioned to execute
our broader strategy once the licensing process is complete," he
continued.

                  Regional Performance

The Americas, which comprised 49.8% of worldwide sales, reported
net sales of US$232.3 million in the second quarter, up 39.2%
versus the same period of 2005.  Excluding currency
fluctuations, net sales increased 37.4%.  This increase was
largely attributable to continued sales growth in Herbalife's
largest market, Mexico, which reported an 86.0% increase during
the quarter versus 2005.  The strong regional performance was
also driven by growth in Brazil, up 27.1%, and the U.S., up
5.7%, in each case versus the second quarter 2005.

Total supervisors in the region, as of June 30, 2006, increased
41.0% versus 2005.  For the six months ended June 30, 2006, net
sales in the Americas increased 48.5% to US$456.3 million, as
compared to the same period in 2005.  Excluding currency
fluctuations, year-to-date net sales in the region increased
44.0%.

Europe, which comprised 31.2% of worldwide sales, reported net
sales of US$145.2 million in the second quarter, up 2.4% versus
the same period of 2005.  Excluding currency fluctuations, net
sales increased 2.7%.  The performance was primarily
attributable to growth in several of the region's top markets,
including Portugal, up 50.5%, France, up 34.9%, Italy, up 17.7%,
and Spain, up 12.9%, in each case compared to the second quarter
of 2005.

However, these increases were partially offset by declines in
Germany and the Netherlands, which were down 14.9% and 21.2%,
respectively, versus 2005.  Total supervisors in the region, as
of June 30, 2006, increased 0.8% versus 2005.  For the six
months ended June 30, 2006, net sales in Europe increased
slightly to US$286.7 million, compared with the same period in
2005.  Excluding currency fluctuations, year-to-date net sales
in the region increased 4.1%.

Asia Pacific, which comprised 14.9% of worldwide sales, reported
net sales of US$69.6 million in the second quarter, up 24.7%
versus the same period of 2005.  Excluding currency
fluctuations, net sales increased 22.9%.  The increase was
primarily attributable to incremental sales from Malaysia and
China, and growth in several other markets such as Thailand, up
39.4%, and South Korea, up 18.9%.  These gains were partially
offset by declines in other markets such as Taiwan, which
decreased 4.6%, resulting from additional distributor focus on
new market opportunities in Malaysia and China.

Total supervisors in the region, as of June 30, 2006, increased
20.8% versus 2005.  For the six months ended June 30, 2006, net
sales in Asia Pacific increased 18.8% to US$137.6 million,
compared with the same period in 2005.  Excluding currency
fluctuations, year-to-date net sales in the region increased
18.1%.

Japan, which comprised 4.1% of worldwide sales, reported net
sales of US$18.9 million in the second quarter, down 6.3% versus
the same period of 2005.  Excluding currency fluctuations, net
sales decreased 0.4%.  Total supervisors in the region, as of
June 30, 2006, declined 0.9% versus 2005.  For the six months
ended June 30, 2006, net sales in Japan declined 12.6% to
US$41.2 million, compared with the same period in 2005.   
However, excluding currency fluctuations, year-to-date net sales
in the region decreased 4.4%.

                     Recent Developments

On July 21, 2006, the company completed refinancing of its
existing US$225.0 million senior secured credit facility.  The
new US$300.0 million senior secured credit facility consists of
a US$200.0 million, seven-year term loan and a US$100.0 million,
six-year revolving credit facility.

At closing, the company used approximately US$65.0 million of
available cash and borrowed US$15.0 million under the new
revolver to repay the outstanding borrowings under its existing
senior credit facility and fund closing costs.

The company also announced that it advised the Trustee of its 9-
1/2% Notes due 2011, of the company's election to redeem the
outstanding US$165.0 million aggregate principal amount of Notes
at the mandatory redemption price of approximately US$109.80 per
US$100.00 aggregate principal amount of Notes.  The company
intends to use the proceeds from the new US$200.0 million term
loan to fund the redemption and pay accrued interest.  The
anticipated redemption date is Aug. 23, 2006.

In conjunction with the Refinancing, the company expects to
incur an after-tax one-time charge of approximately US$14.0
million, representing the call premium on the Notes and the
write-off of unamortized deferred financing costs.

Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?f97

                     About Herbalife Ltd.

Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- is a  
global network marketing company that sells weight-management,
nutritional supplements and personal care products intended to
support a healthy lifestyle.  Herbalife products are sold in 62
countries through a network of more than one million independent
distributors.  The company's largest market is in Mexico.  

The company supports the Herbalife Family Foundation
-- http://www.herbalifefamily.org/-- and its Casa Herbalife  
program to bring good nutrition to children.

                        *    *    *

Standard & Poor's Ratings Services rated Herbalife Ltd.'s long-
term foreign and local issuer credit ratings at BB+.


UNO RESTAURANT: S&P Lowers Corp. Credit Rating to CCC+ from B-
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Boston-based Uno Restaurant Holdings Corp. to 'CCC+'
from 'B-'.  The outlook remains negative.

"The rating action is based on the company's limited liquidity,
and our concern that Uno may not meet its bank covenants when
they step up in 2007, given that the company's weak operating
performance is not expected to recover in the near term," said
Standard & Poor's credit analyst Jackie Oberoi.  Uno has amended
its senior secured credit facility four times in the current
fiscal year.

Ratings on Uno, the parent company of casual dining operator Uno
Chicago, reflect the company's relatively small cash flow base,
limited financial flexibility, highly leveraged capital
structure, regional concentration in the Northeastern U.S., and
participation in the highly competitive casual dining restaurant
industry.

Uno's operating performance has generally been lackluster for
the past few years.  Annual comparable-store sales rose slightly
in the third quarter of 2006; however, the gain was due to an
increase in guest check size, while store traffic declined.  
Sales advanced slightly from levels a year ago, but EBITDA
declined due to a lack of sales leverage, increased labor costs
related to a new menu, and higher utility costs. Although
margins could improve somewhat in the near term as labor costs
should come down, the improvement over the next year is not
expected to materially strengthen cash flow protection measures.

Uno is regionally concentrated, with about 50% of company-owned
restaurants in either Massachusetts or New York.  Other core
markets include the suburban shopping centers and regional mall
areas of the Baltimore/Washington D.C. area and Chicago.  Uno
Chicago Grill restaurants are located in 30 states, the District
of Columbia, Puerto Rico, South Korea and the United Arab
Emirates.


* Bankruptcies Hit Record Low in July
-------------------------------------
South Korea's corporate bankruptcies reached a record low in
July 2006 due to a drop in failures among manufacturing and
service businesses, The Korea Times reports, citing the nation's
central bank.

The Bank of Korea disclosed that the number of failed businesses
rose by one to 211 in July 2006 from the previous month,
slipping below last year's monthly average of 285, the paper
relates.

The bankruptcy filing of South Korean mobile handset
manufacturer VK Corp., ended the zero-bankruptcy record for
conglomerates, which record has continued since October 2004,
The Korea Times says.


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

MALAYSIA AIRLINES: New Fares to Boost Domestic Profits
------------------------------------------------------
Malaysia Airlines expects profit from domestic operations to
climb 8% by the end of next year with its new fare system in
place, Bernama reports.

Business Times relates that Malaysia Airlines recently launched
"micro-segmentized" fare system for the rationalized domestic
network covering 23 routes that could make internal travel
cheaper, thus increasing passenger traffic.

Malaysia airlines commercial director Datuk Rashid Khan tells
Business Times that the new fares were on one-way basis covering
nine segments, which involved two business classes, five economy
classes, and two online web transactions.

The new fare plan offers price flexibility but has its own set
of rules covering ticketing deadlines, refunds, cancellations,
no-shows and fare restrictions, Bernama says.  The revised fare
structure, however, allows travelers the freedom to combine
different one-way fares to plan their travel for both outbound
and inbound flights.

Malaysia Airlines said with the new fare structure, its
customers can actually enjoy lower rates than previously.

The Troubled Company Reporter - Asia Pacific reported on
August 22, 2006, that full fares for domestic economy class were
increased to more than the 15% targeted average from August 21,
2006.

Despite the fare hike, Malaysia Airlines insisted the airline is
still offering one of the cheapest domestic fares in the world,
TCR-AP said.

Meanwhile, Malaysia Airlines is offering one million domestic
seats online at attractive rates via online booking from
September 1, 2006, to July 31, 2007, The Star Online reports.

The carrier's managing director, Idris Jala, says the new fare
structure was on a one-way basis, adding that the discounts were
between 10% and 60%, The Star adds.

                    About Malaysia Airlines

Headquartered in Selangor, Malaysia, Malaysia Airlines
-- http://www.malaysiaairlines.com/-- services domestic and  
international flights.  Its global network comprised 32 domestic
and 86 international destinations.  Of the 86 international
destinations, 17 were operated in collaboration with our airline
partners.

The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes.  In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion to stay afloat and
return to profitability by 2007.  Under the restructuring plan,
the airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
Whistle-blowing and stop corporate sponsorship.


PARACORP BERHAD: Discusses Debt Restructuring with HSBC Malaysia
----------------------------------------------------------------
Paracorp Berhad is in talks with HSBC Bank Malaysia Berhad --
formerly known as Hong Kong Bank Malaysia Berhad -- on the
restructuring of debt owed to the Bank by Paracorp's wholly
owned subsidiary, Empire Valley Sdn Bhd.

As reported in the Troubled Company Reporter - Asia Pacific on
July 24, 2006, Empire Valley has defaulted in its MYR5,177,762
repayment of a banking facility granted by HSBC Bank Malaysia
through a facility agreement dated July 15, 1997.

Empire Valley blamed its inability to repay the banking facility
on its current negative cash flow position.

Earlier, Paracorp declared itself and its subsidiaries as
insolvent, as the Group is unable to repay all of its debts
within the next 12 months.

                      About Paracorp Berhad

Paracorp Berhad's principal activities are the manufacture and
trading of printed graphic overlay, printed electronic circuits,
electroluminescent display, telemetry monitoring system,
electronic circuit components, corrugated plastic sheets,
corrugated carton boxes and plain boards.  Its other activities
include the provision of management services, investment
holding, property investment, property management, money
lending, technology management and research and development
services.  The Group operates in Malaysia, Oceanic countries,
European countries, American countries and other Asian
countries.

The Company has been incurring losses in the past.  For the
quarter ended March 31, 2006, the Company recorded a net loss of
MYR12.3 million.  As of March 31, 2006, the Company's balance
sheet revealed total assets of MYR106,347,000 and total
liabilities of MYR110,465,000, resulting in a MYR41,180,000
stockholders' deficit.

The Company is also classified under Practice Note 17 of Bursa
Malaysia Securities Berhad's Listing Requirements.  As an
affected listed issuer, the Company is required to submit a
financial regularization plan by January 7, 2007.


PSC INDUSTRIES: Judge Allows Appeal Against Summary Judgment
------------------------------------------------------------
The Judge in Chambers at the Kuala Lumpur High Court allowed PSC
Industries Berhad's appeal against a summary judgment obtained
by Danaharta Managers Sdn Bhd on December 9, 2006.

In this regard, the Senior Assistant Registrar's decision
allowing Danaharta Managers' summary judgment application was
set aside.

As reported in the Troubled Company Reporter - Asia Pacific on
December 20, 2006, Danaharta Managers obtained summary judgment
against the Company in respect of a judgment sum of
MYR39,802,688 as of January 31, 2004, plus interests and costs.

                      About PSC Industries

PSC Industries Berhad's principal activities are shipbuilding
and ship repairing. It is also involved in heavy engineering
construction, provision of shipping management services,
manufacturing of aluminium fast passenger sea ferries, supplies
equipment and machineries, marketing and distributing Exocet
Weapon system, manufacturing of confectioneries, snack food and
related products, general trading, power plant construction and
its support activities, printing, property development, and
property and investment holding.  The Group operates in
Malaysia, Australia and the Republic of Ghana.

The Company is currently formulating a regularization plan for
the Group pursuant to Practice Note 17/2005 of the Bursa
Malaysia Securities Berhad's Listing Requirements.  As of
March 31, 2006, the Company's balance sheet showed
MYR212,330,000 in total assets and MYR677,272,000 in total
liabilities, resulting in a MYR464,942,000 stockholders'
deficit.


SEAGATE TECHNOLOGY: Launches US$2.5B Stock Repurchase Scheme
------------------------------------------------------------
Seagate Technology's 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; Singapore; Thailand and Malaysia.

                          *     *     *

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 US$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

                     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; Singapore; Thailand and Malaysia.

                          *     *     *

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.


SUGAR BUN: To List 1 Million New Shares
---------------------------------------
Sugar Bun Corporation Berhad's additional 1,000,000 new ordinary
shares of MYR1 each will be granted listing and quotation on
August 24, 2006.

The new shares were derived from the exercise of 1,000,000
warrants 2002/2012.

                      About Sugar Bun Corp.

Sugar Bun Corporation Bhd -- http://www.sugarbun.com/-- is  
engaged in the operation and franchising of restaurants,
bakeries, and confectioneries.  Its other activities include
general trading of machinery, spare parts and phone cards,
investment holding and provision of administrative, management
and marketing services.  Operations of the Group are carried out
mainly in Malaysia.

The Company is currently undertaking a corporate and debt
restructuring program to wipe out its accumulated losses.  As of
April 30, 2006, the Company has accumulated losses of
MYR46,190,000.


TEXCHEM RESOURCES: Obtains Approval to List Unit in SGX-ST
----------------------------------------------------------
The Singapore Exchange Limited granted Texchem Resources Berhad
a conditional eligibility-to-list its subsidiary Texchem-Pack
Holdings (S) Limited on the Singapore Exchange Securities
Trading Limited.

The listing approval is subject to the condition that the
eligibility-to-list is valid for three calendar months from
August 18, 2006.

                    About Texchem Resources

Headquartered in Penang Malaysia, Texchem Resources Berhad
-- http://www.texchemgroup.com/-- is principally engaged in  
trading in industrial chemicals and other products. Other
activities include manufacturing of family care products and
household insecticides and distribution and marketing of a wide
range of consumer and family care products; manufacturing and
marketing of raw surimi, fishmeal, feedmeal and seafood
products; manufacturing and selling of packaging products for
the electronics, electrical, semiconductor and disk drive
industries and investment holding.  The Group's operations are
located in Malaysia,Thailand, Singapore, Indonesia, China,
Vietnam, Myanmar and Italy.

Texchem is currently undergoing a financial rationalization and
restructuring program, which involves the disposal of a number
of dormant subsidiaries.


WEMBLEY INDUSTRIES: Agrees to Settle Legal Disputes
---------------------------------------------------
On August 8, 2006, Wembley Industries Holdings Berhad, in
concurrence with Plaza Rakyat Sdn Bhd, Ekran Berhad and Tan Sri
Datuk Paduka (DR) Ting Pek Khiing, entered into a settlement
agreement with Dato' Hamzah bin Abdul Majid and Datin Freida
binti Mohd Pilus.

Under the agreement, the parties will work to amicably resolve
the respective suits to which they are a party.  Each party will
bears its own costs and matters incidental thereto subject to
the terms and conditions as stipulated in the Settlement
Agreement.

                     A Series of Legal Suits

On August 8, 1994, Wembley Industries completed the acquisition
of 100% equity interest in Clifford Investments Limited for a
purchase consideration of MYR150,000,000.  The purchase
consideration was fully satisfied by an issue of 60,000,000 new
ordinary shares of MYR1 each credited as fully paid-up at an
issue price of MYR2.50 per share.

Clifford Investment's principal asset is the investment in its
wholly owned subsidiary, Plaza Rakyat, which is the developer
for a mixed development project known as the Plaza Rakyat
Project.  

The acquisition of Clifford Investments came with an aggregate
profit guarantee of MYR140,000,000 given by the Dato' Hamzah
Abdul Majid and Datin Freida Mohd Pilus to Wembley Industries.  
The profit guarantee was in relation to Cliffords Investments'
profits of for the year 1994, 1995, and 1996 stipulated in the
Supplemental Agreement dated July 26, 1994, to the earlier Sale
and Purchase Agreement dated December 4 1992.  Wembley's
shareholders duly approved the Acquisition.

However on August 21, 1997, Wembley issued a notice of demand to
Mr. Majid and Ms. Pilus, claiming an outstanding sum of
MYR129,666,403 under the profit guarantee.

On October 2, 1997, Mr. Majid and Ms. Pilus commenced a suit
against Wembley and Tan Sri Ting claiming repayment of
shareholders advance amounting to MYR83,034.921, a specific
performance of an alleged arbitration agreement in respect of
the profit guarantee for the year 1995.  The plaintiffs claimed
that an arbitration agreement had been entered into between them
and Wembley whereby it had been agreed that Mr. Mahjid and Ms.
Pilus' liability for the profit guarantee of 1995 be referred to
a third party for his determination and that third party had
decided in favor of Mr. Mahjid and Ms. Pilus.

Wembley denied the existence of the alleged arbitration
agreement and counterclaimed for a sum of MYR129,666,403, which
is said to be outstanding under the profit guarantee.

On March 10, 2003, the Suit was struck out pursuant to an appeal
filed by Tan Sri Ting.  Mr. Mahjid and Ms. Pilus filed an
application to the Federal Court for leave to appeal against Tan
Sri Ting's filing.  The Federal Court Application was
subsequently withdrawn with each party bearing their own costs.  
Two appeals to the Court of Appeal were filed by Wembley
Industries against interlocutory orders of the High Court.

In 2003, Mr. Mahjid and Ms. Pilus commenced a new suit against
Tan Sri Ting, which was struck out by the High Court on April
18, 2006.

In 1998, Mr. Mahjid and Ms. Pilus also initiated a suit against
Wembley claiming, inter alia, that the Company's extraordinary
general meeting convened for the purposes of removing them as
directors of Wembley was invalid.  Sometime in 1998, the Suit
was dismissed by the High Court.

Still in 1998, Wembley and Plaza Rakyat commenced a suit against
Mr. Mahjid and Ms. Pilus claiming for MYR7,001,000, which was
held by the defendants as constructive trustee for Wembley and
Plaza Rakyat and for damages for breach of fiduciary duties by
the defendants  as directors of Wembley and Plaza Rakyat in
respect of the Sale and Purchase Agreements between Plaza Rakyat
and Affluent Alliance Sdn Bhd.  Wembley also lodged a Police
Report against Mr. Mahjid and Ms. Pilus.

Still in the same year, Mr. Mahjid and Ms. Pilus commenced the
Section 176(10) Application against WIHB and Plaza Rakyat on
October 23, 1998.  The Application was granted by the High
Court.

In 2001, Mr. Mahjid commenced another suit against Wembley
claiming, inter alia, compensation for wrongful termination of
his office as the company's Executive Vice-Chairman.

                       Amicable Settlement

The parties want to amicably resolve the respective Suits to
which they are a party and all costs and matters incidental
thereto in accordance with the terms and conditions of the
Agreement.

They parties have agreed not to take any further initiative to
activate, pursue, or follow up any suit against each other.

The acceptance of the Settlement Agreement will enable the
Company to resolve its Suits and fully concentrate on more
pressing issues like the Proposed Debt Restructuring and the
completion of the Plaza Rakyat project that would be in the
interest of the Company.

The Settlement Agreement is expected to result in a gain of
MYR83,034,920 for the Company for the financial year ending
December 31, 2006.

                     About Wembley Industries

Headquartered in Sarawak Malaysia, Wembley Industries Holdings
Berhad is a developer of commercial properties and investment
holding.  Its other activities are the development of the inter-
state bus and taxi terminal, the retail podium and the budget
hotel.

The Company has been placed under the Practice Note 4 category
due to its tight cash flow position.  On January 7, 2003,
Malaysia's Foreign Investment Committee approved the Company's
regularization plan.  Subsequently, on April 7, 2003, the FIC
revised its approval to include the possible participation of
Daewoo Corporation, the former turnkey contractor of Plaza
Rakyat Project in the Company's Proposed Debt Restructuring.  
The Company's ability to continue as a going concern hinges on
the successful implementation of the Scheme.

As of March 31, 2006, the Company's balance sheet revealed total
assets of MYR422,729,000 and total liabilities of
MYR1,214,178,000, resulting in a MYR791,749,000 stockholders'
deficit. The Company's accumulated losses as of March 31, 2006,
have reached MYR1,063,555,000.


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

APC GROUP: In Talks for Telecom Subsidiary Sale
-----------------------------------------------
APC Group Incorporated has revived talks with three groups of
investors for the sale of its telecommunications unit Philippine
Global Communications Inc., after Fiber Telecom withdrew its
interest, The Philippine Star reports.

During the Company's annual meeting held on August 17, 2006, APC
president Willy Ocier said they still plan to auction Philcom
even as Fiber Telecom has withdrawn its offer to purchase the
telecommunications firm, the paper relates.

As reported in the Troubled Company Reporter - Asia Pacific on
January 17, 2005, APC planned to sell its telecommunications
subsidiary Philippine Global Communications Incorporated after
years of continued losses.

The Philippine Star recounts that Fiber Telecom has offered to
assume the PHP5.3-billion liabilities of Philcom.

Mr. Ocier noted that the Company has been incurring heavy losses
because of financing charges and depreciation costs brought
about by Philcom's operations.

According to the paper, Mr. Ocier is confident the Philcom sale
would be consummated over the next six months.  However, he
declined to identify the prospective investors but hinted two
are local groups while one is a foreign company.  Mr. Ocier also
noted "the buyer would assume Philcom's debt."

Mr. Ocier disclosed that the accumulated losses of Philcom and
APC amount to almost PHP7 billion.

The Philippine Star says that the Philcom sale would allow APC
to focus on more promising growth businesses like oil and gas
exploration and mining.

The paper recounts that APC earlier formed three subsidiaries to
engage in oil and gas exploration and mineral resources
development:

   1. Aragorn Power & Energy Corp.;

   2. Aragorn Coal Resources; and

   3. APC Mining Corp.

            Philcom was Losing Money Since 1998

According to The Philippine Star, Philcom has been incurring
losses, which have accumulated to PHP6.85 billion since 1998
resulting in negative stockholders' equity for APC.

In 2005, Philcom widened its net loss to PHP646.1 million from
PHP635.9 million in 2004 on higher expenses, the paper recounts.

For the first quarter 2006, APC incurred a net loss of PHP21.7
million, significantly lower than the previous level's PHP41.8
million.  The improvement was mainly due to lower loss of
Philcom arising from higher revenues, The Philippine Star notes.

As of end-March 2006, APC had a capital deficiency of PHP8.72
billion, the paper reveals.

The Philippine Star relates that to improve its financial
standing, the Company has undertaken steps, which include:

   (a) the phasing out of its petroleum trading operations; and

   (b) the sale of the assets and contracts of its security
       service companies.

                     About APC Group, Inc.

APC Group, Inc., was incorporated on October 15, 1993, with the
primary purpose of engaging in oil and gas exploration and
development in the Philippines.  The Company is 46.6% owned by
Belle Corporation.  APC has investments in telecommunications, a
cement project, and manpower outsourcing businesses.

The Company has suffered recurring losses resulting in a deficit
of PHP12.953 billion as of December 31, 2005, and PHP12.2
billion as of December 31, 2004.  As of 2005 and 2004, the
Company's current liabilities exceeded its current assets by
PHP7.3 billion and PHP7.060 billion, respectively.

The deficits affected the ability of the Company's subsidiaries
-- Philippine Global Communications Inc. and PhilCom Corporation
-- to service their maturing obligations on a timely basis.  
Furthermore, the restructuring of PhilCom and PhilCom Corp's
PHP2.99 billion long-term debt, which defaulted in 2003, are
still under renegotiation with the creditors.


MIRANT CORP: Needs NAPOCOR Consent for Philippine Assets Sale
-------------------------------------------------------------
The government wants United States-based Mirant Corp. to seek
the consent of the National Power Corp. before it auctions off
its generation assets in the country, The Philippine Star cites
a top energy official, as saying.

ABS-CBN News relates that Energy Secretary Raphael Lotilla
clarified that the consent from National Power is "necessary to
ensure that the successor can deliver on the obligations under
the contract."

The Philippine Star says that Mr. Lotilla was reacting to the
alleged claim of Mirant that it need not seek the approval of
Napocor to be able to sell its generating assets in the
Philippines.

National Power president Cyril del Callar said that the need for
the consent from National Power is stipulated in the contract
with National Power and other IPPs, ABS-CBN relates.

                          *     *     *

Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that  
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally.  Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590), and emerged under the terms of a
confirmed Second Amended Plan on Jan. 3, 2006.  Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.

When the Debtors filed for protection from their creditors, they
listed US$20,574,000,000 in assets and US$11,401,000,000 in
debts.  The Debtors emerged from bankruptcy on Jan. 3, 2006.
(Mirant Bankruptcy News, Issue No. 103; Bankruptcy Creditors'
Service, Inc., 215/945-7000, http://bankrupt.com/newsstand/)

                           *     *     *

As reported in the Troubled Company Reporter on July 17, 2006,
Moody's Investors Service downgraded the ratings of Mirant
Corporation and its subsidiaries Mirant North America, LLC and
Mirant Americas Generation, LLC.  The Ba2 rating for Mirant Mid-
Atlantic, LLC's secured pass through trust certificates was
affirmed.  Additionally, Mirant's Speculative Grade Liquidity
rating was revised to SGL-2 from SGL-1.  The rating outlook is
stable for Mirant, MNA, MAG, and MIRMA.

Moody's downgraded Mirant Americas Generation, LLC's Senior
Unsecured Regular Bond/Debenture, to B3 from B2.  Moody's also
downgraded Mirant Corporation's Corporate Family Rating, to B2
from B1, and Speculative Grade Liquidity Rating, to SGL-2 from
SGL-1.  Mirant North America, LLC's Senior Secured Bank Credit
Facility, was also downgraded to B1 from Ba3 and its Senior
Unsecured Regular Bond/Debenture, to B2 from B1.

As reported in the Troubled Company Reporter on July 13, 2006,
Fitch Ratings placed the ratings of Mirant Corp., including the
Issuer Default Rating of 'B+', and its subsidiaries on Rating
Watch Negative following its announced plans to buy back stock
and sell its Philippine and Caribbean assets.

Ratings affected are Mirant Corp.'s 'B+' Issuer Default Rating
and Mirant Mid-Atlantic LLC's 'B+' Issuer Default Rating and the
Pass-through certificates' 'BB+/Recovery Rating RR1'.

Fitch also placed Mirant North America, Inc.'s Issuer Default
Rating of 'B+', Senior secured bank debt's 'BB/RR1' rating,
Senior secured term loan's 'BB/RR1' rating, and Senior unsecured
notes' 'BB-/RR1' rating on Rating Watch Negative.  Mirant
Americas Generation, LLC's Issuer Default Rating of 'B+' and
Senior unsecured notes' 'B/RR5' rating was included as well.

Standard & Poor's Ratings Services also placed the 'B+'
corporate credit ratings on Mirant Corp. and its subsidiaries,
Mirant North American LLC, Mirant Americas Generating LLC, and
Mirant Mid-Atlantic LLC, on CreditWatch with negative
implications.


NATIONAL POWER: Incurs Loses During June-July WESM Billing Cycle
----------------------------------------------------------------
National Power Corp. suffered almost a billion pesos in losses
during its June to July billing cycle due to lower sales arising
from the commercial operation of the wholesale electricity spot
market, which began operating late June this year, The Manila
Times reports, citing sources familiar with the matter, as
saying.

Industry sources said National Power lost nearly PHP1 billion
during the spot market's first month of operations, ABS-CBN News
relates, citing The Manila Times.

The losses were incurred as several bulk buyers like
distribution utilities bought at least 10% of their power
requirements from the spot market as mandated by the Electric
Power Industry Reform Act, ABS-CBN News relates.

During the spot market's first month, National Power accounted
for more than 20% of the dispatched power while the biggest bulk
was enjoyed by the trading bloc of plants under the care of the
Power Sector Assets and Liabilities Management Corp., the agency
tasked with selling National Power's assets, The Manila Times
reveals.

The paper cites a top official confirming the losses but saying
these were below "the one billion peso mark."

However, Cyril del Callar, National Power president, declined to
confirm or deny the losses but argued that to judge the state
power firm's sales performance solely on the first month of the
spot market's operation is "too premature," asserting that the
data from the WESM's first month are "inconclusive" considering
that the market continues to move up and down, The Manila Times
relates.

The Philippine Star cites Mr. del Callar pointing out that the
losses could still be recovered in the succeeding trading of the
power firm in the WESM, thus will not result to higher power
costs to its customers.

According to The Manila Times, Energy Undersecretary Melinda
Ocampo said the Department of Energy is awaiting pertinent
documents from National Power, which will be used to measure the
impact of the spot market on the power firm's sales performance.

                Reserve Capacity may be Threat

The Philippine Star relates that Philippine Electricity Market
Corp. president Lasse A. Holopainen warned that though the
market would maintain its fair performance in the next few
months, reserves may be a threat to prices as demand picks up.

Mr. Holpainen disclosed that there are also several power plants
that would be decommissioned like Sual Unit 2, which will be
shut down over the next six to eight months, the paper relates.

"Supply is still safe until 2010 for Luzon but the reserve
capacity would be a concern to be dealt with," The Philippine
Star cites Mr. Holopainen, as saying, also admitting that WESM
may encounter some price spikes due to low reserves.

"A tight demand and supply situation was seen during the first
half of the month where total offered capacity was not always
sufficient to meet electricity demand, particularly during the
peak hours," Mr. Holopainen says.

However, he noted that the rainy season had helped in the
improvement of the reserves in the second half as more
hydropower plants were up and running, The Philippine Star
relates.

                      About National Power

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

                          *     *     *

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

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

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


SAN MIGUEL: Plans to Sell National Food Minority Stake
------------------------------------------------------
San Miguel Corp. plans to sell a minority stake in National
Foods Ltd., ABS-CBN News reports.

However, the Company will retain majority control of National
Foods, the report cites Ramon Ang, San Miguel president, telling
reporters.

"You don't acquire 100% of something just to sell it," Mr. Ang
said, but hinted that there are ways to sell a portion of
something but still "keep control," ABS-CBN News relates noting
that Mr. Ang declined to elaborate.

The Troubled Company Reporter - Asia Pacific reported on July
19, 2006, that San Miguel may sell 49% of its Melbourne,
Australia-based unit, National Foods Ltd., to interested
parties.

The TCR-AP report said that theCcompany bought National Foods
for PHP73.75 billion in June 2005 as part of a PHP189.64-billion
expansion program, which started in 2000.  Acquisitions at home
and abroad to cut San Miguel's reliance on beer and the domestic
market have inflated its debts and raised financing costs, the
TCR-AP noted.

However, Mr. Ang is confident that San Miguel's profits will
continue to increase "on domestic beer and food sales."  In
2005, the company posted a 3% hike in its net income to PHP9.15
billion, ABS-CBN News recounts.

                     Coca-Cola Eyeing CCBPI

ABS-CBN News further recounts that the company earlier revealed
that it was in talks with the Atlanta-headquartered Coca-Cola
Co., which is eyeing to buy San Miguel's controlling stake in
Coca-Cola Bottlers Philippines Inc.

The Company noted that the discussions currently include
negotiations over the Coca-Cola Company taking at least majority
stake in, and management and operational control of CCBPI.

However, Mr. Ang refused to talk about CCBPI but said whatever
will be agreed upon will be something "spectacular," ABS-CBN
News says.

                     About San Miguel Corp.

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

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

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


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


ASIAPAC (I & E) PTE: Creditors' Proofs of Claims Due on Sept. 15
----------------------------------------------------------------
Asiapac (I & E) Pte Ltd requires its creditors to submit their
proofs of claims by September 15, 2006.

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

The joint liquidators can be reached at:

         Steven Tan Chee Chuan
         Douglas Tan Kay Yeow
         138 Cecil Street
         #15-00 Cecil Court
         Singapore 069538


CIVIL GEO: Creditors' First Meeting Scheduled for September 7
-------------------------------------------------------------
The creditors of Civil Geo Pte Ltd will hold their first meeting
on September 7, 2006, at 2:30 p.m.

At the meeting, creditors will be asked to:

   -- receive the full statement of the affairs, showing the
      assets and liabilities of the company;

   -- appoint a Committee of Inspection if deemed necessary; and
   
   -- discuss any other matters.

The Troubled Company Reporter - Asia Pacific reported on July
21, 2006, that the High Court of Singapore heard the Company's
wind-up petition on July 28, 2006.

The Liquidator can be reached at:

         Don M. Ho
         c/o Don Ho & Associates
         Certified Public Accountants
         Corporate Advisory & Recoveries
         20 Cecil Street
         #12-02 & 03 Equity Plaza
         Singapore 049705
         Telephone: 6532 0320 (8 lines)
         Facsimile: 6532 0331


MARLEX DISTRIBUTOR: To Hold Creditors' Meeting on August 25
-----------------------------------------------------------
Creditors of Marlex Distributor Pte Ltd will convene on
August 25, 2006, at 2:30 p.m., to decide whether to approve
Liquidator David Kung Seah Lim's bill of costs.

The Liquidator can be reached at:

         David Kung Seah Lim
         c/o 336 Smith Street
         #05-310 New Bridge Centre
         Singapore 050336


PACIFIC CENTURY: Turnover for Second Quarter Drops to SGD198.9 M
----------------------------------------------------------------
Pacific Century Regional Developments Limited has submitted its
unaudited financial report on August 18, 2006, to Singapore
Stock Exchange.

The financial report showed that the group's turnover for the
second quarter ended June 30, 2006, slightly decreased from
SGD203.9 million to SGD198.9 million in the same quarter last
year.  Profit from operating activities increased significantly
by 202% from last year's SGD14.38 million to SGD43.46 million
for the fiscal year 2006.

The financial statement also showed that the group has made a
profit of SGD13.79 million for the financial year ended June
2006, a recovery compared to the 2005 corresponding period where
it incurred a loss of SGD36.63 million.

The group's balance sheet reflects the group's non-current
liabilities and current liabilities at SGD230.25 million and
SGD904.68 million respectively. Non-current assets figure is at
SGD412.53 million and current assets totaled to SGD1.83 billion
for the quarter ended June 30, 2006.  This leaves a total
shareholder' equity of approximately SGD1. billion.

The Company's financial statement for the second quarter ended
June 30, 2006, is available for free at:

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

                          *     *     *

Pacific Century Regional Developments Limited is a Singapore
based company with operations in Hong Kong, China, Vietnam and
India. The Group's principal activities include the provision of
international, local and mobile telecommunications services.
Other activities include sale and rental of telecommunication
equipment, provision of life insurance services, investment in
and development of infrastructure and properties, investment in
and development of technology-related businesses, Internet and
interactive multimedia services, provision of computer,
engineering and other technical services, and hotel operations.

The Troubled Company Reporter - Asia Pacific, reported that the
Company has remained insolvent for the two consecutive years
from April 2005 up to the present.


PDC CORP: Subsidiary Inks Purchase and Sales Agreement
------------------------------------------------------
PDC Corporation Ltd's subsidiary, RC Industrial Development Pte
Ltd, on August 18, 2006, entered into a sales and purchase
agreement with First World Realty Pte Ltd to acquire the
properties at Geylang Road Singapore for SGD6 million.  The
acquisition will be paid by internal funding and bank
borrowings.

The property has been valued at SGD6 million by an independent
member firm of Singapore Institute of Surveyors & Valuers, based
on Comparison & Income Approach.

The purchase of the property is not expected to have any
material impact on the earnings per share and the net tangible
assets per share of the company for the financial year ending
December 31, 2006.

                          *     *     *

Headquartered in Singapore, PDC Corporation Limited is
principally involved in the provision of general construction,
property development, real estate and investment.  Its other
activities are the provision of renovation work of any kind and
for the demolition of any structure, trading, rental and
servicing of industrial machinery and equipment and the
distribution of multimedia products, home automation system,
other high technology products and investment holding.  

Auditors Ernst & Young has expressed significant doubt on the
Company's ability to continue as a going concern citing its
liabilities and default in repayments.


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

SIAM COMMERCIAL: Moody's Confirms Bank's FSR at D+
--------------------------------------------------
Moody's Investors Service has confirmed Siam Commercial Bank
Public Company Limited's D+ bank financial strength rating and
changed its outlook to positive from stable.

The bank's other ratings remain unchanged at Baa1 for senior
debt and Baa1/Prime-2 for long-term/short-term foreign deposits.  
This action concludes the review of Siam Commercial's BFSR for
possible upgrade announced March 28, 2006.

"The confirmation -- rather than an upgrade, which had been
originally considered due to various improvements -- reflects
Moody's concerns over the bank's rapid loan growth and expansion
into lending for small- and medium-sized enterprises," says Leo
Wah, a Moody's Assistant Vice President/Analyst.

"Such issues could still pressure asset quality and margins in
the near term, and in turn slow Siam Commercial's ability to
achieve the strong financial fundamentals necessary to sustain a
BFSR in the C- range in an emerging market like Thailand," adds
Mr. Wah.

"But the new positive rating outlook indicates Moody's
recognition of the bank's very successful expansion into
consumer banking, improved risk management and our expectation
that management will probably successfully negotiate the
impediments to a higher BFSR," says Mr. Wah.

"Furthermore, a larger exposure to SMEs could also lead to a
more balanced lending portfolio, supporting its development into
a premier universal bank," adds Mr. Wah.

Led by a solid management, Siam Commercial Bank has become a
quality universal bank in terms of market presence,
profitability and risk management.  Its expansion into consumer
lending, despite rising competition because of more players, has
so far delivered satisfactory results because of a successful
execution and its own solid capital base.  The bank has achieved
the critical mass, which leads to a recovery in profitability.

Nonetheless, SME lending is still riskier - particularly in an
economic slowdown - as it is not as diversified as individual
lending and the borrowers usually have weaker balance sheets
than those of large corporate lenders.  The bank's risk profile
may change, given that political uncertainties, interest rate
hikes, and oil price fluctuations have adversely affected the
operating environment in Thailand.

"The bank's relatively aggressive loan growth has engendered
some concerns over its asset quality," says MR. Wah, adding,
"Following years of balance sheet expansion, its consequent
level of liquidity may lead to higher funding costs, thus
affecting profitability."

Moreover, deterioration in its reported non-performing loan
ratio to double digits and in profitability to 2.5% or below, in
terms of its risk-adjusted pre-provision profit ratio, could
exert downward pressure on the BFSR.  However, Moody's currently
believes this last scenario unlikely as Siam Commercial's
financials should not fluctuate substantially.

To consider a ratings upgrade, Moody's would need to see:

    1) further improvement in risk management to cope with the
       expansion in riskier lending, such as activities in SME
       lending and unsecured individual credits;

    2) a proactive adjustment in risk management amid economic
       volatility;

    3) sustained or even improved profitability, in spite of
       possible increases in funding costs, bad debt provision
       charges and operating expenses; and

    4) an operating environment which is relatively stable.

Headquartered in Bangkok, Siam Commercial Bank is Thailand's
third largest bank, with total assets of THB877 billion as of
June 30, 2006.

The rating affected is:

Siam Commercial Bank Public Company Limited -- Bank financial
strength rating of D+. The rating outlook is changed to
positive.

The ratings not affected are:

Siam Commercial Bank Public Company Limited -- Foreign currency
deposit ratings of Baa1 and Prime-2. The rating outlook is
stable.

Siam Commercial Bank Public Co. (Singapore) -- Senior unsecured
debt rating of Baa1. The rating outlook is stable.

                          *     *     *

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

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


* Over 1,200 Companies Went Bankrupt After First Half
-----------------------------------------------------
More than 1,200 companies nationwide went under in July, most of
them in the construction and property development sectors, The
Nation reports.

According to the report, 641 of the total companies were
registered in Bangkok.

Dusit Uchupongamourn, deputy director-general of the Business
Development Department, relates that 1,275 companies went out of
business during July, representing 4.94% increase over the
number reported during the same period last year.  Their
combined registered capital was THBB63.98 billion.

The increase in closures came amid signs of economic difficulty
sparked by higher operating costs and dwindling consumer
confidence.

Meanwhile, 3,882 companies were registered in July, down 6% from
the same period last year, but up 2.56% month-on-month.  Among
the new companies are plastic parts maker Thai Fuji Plastic Co
Ltd and Siam Airline Co Ltd.


                            *********

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.


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

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