TCRAP_Public/060830.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 30, 2006, Vol. 9, No. 172

                            Headlines

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

123 ENTERPRISE: Liquidation Bid Hearing Set on Sept. 4
ANCON CHEMICALS: To Declare First and Final Dividend on Sept. 26
ARRAN PASTORAL: Members Resolve to Voluntarily Wind Up Firm
BAIAMA PTY: Members and Creditors to Convene on Sept. 25
BURT BROS: Members to Receive Liquidator's Wind-Up Report

CARPE OMNES: Receiver and Manager Steps Aside
CPS (NSW) PTY: To Pay Dividend to Ordinary Unsecured Creditors
DEMACO INTERNATIONAL: Liquidator McLellan to Give Wind-Up Report
DRYANDER PTY: Faces Creditors' Voluntary Wind-Up
DVR DEVELOPMENTS: Faces Liquidation Proceedings

FORESHORE ROAD: Placed Under Voluntary Liquidation
JAVA JOHNS: Court to Hear CIR's Liquidation Bid
JUST MANOLIOS: Enters Wind-Up Proceedings
K&J WHITE: Members and Creditors to Receive Wind-Up Report
LOGEC SYSTEMS: To Declare First and Final Dividend on Sept. 24

M.S.D. SPORTS: Names Handberg and Morgan as Joint Liquidators
MAYPOLE MANUFACTURING: Receiver and Manager Named
NEILSON PRODUCTIONS: Faces Wind-Up Proceedings
NEOTEX AUSTRALIA: Members and Creditors to Meet on Sept. 21
NJH TRANSPORT: Undergoes Liquidation Proceedings

NORTH SHORE: Names Johnstone and Hill as Liquidators
NZ GREEN: Shareholders Opt for Voluntary Liquidation
OAMARU AIRSPREAD: Commences Liquidation Proceedings
ORIGIN PACIFIC: Seeks Creditors' Extension to Consider Options
OZ PLANTS: To Declare First Dividend on September 7

P & R MOTORS: Court Sets Date to Hear Liquidation Bid
PLANTATION FRESH: Creditors' Proofs of Debt Due on September 12
PLUMBMASTERS (N.S.W.): Creditors Decide to Shut Down Firm
PROFESSIONAL GIFTS: Members Decide to Close Business
PROVINCIAL FINANCE: NZ$31-Million Accounts Anomaly Not Flagged

R M GROUP: To Declare Dividend on September 15
RED RESTAURANT: Court Set to Hear CIR's Liquidation Bid
REDICHEM TRANSPORT: Creditors' Proofs of Debt Due on August 31
RESOURCE DEVELOPMENTS: Appoints Joint and Several Liquidators
SKY-SKAN AUSTRALIA: Creditors' Proofs of Claim Due on Sept. 7

TAMNAMORE PTY: Members' Final Meeting Scheduled on Sept. 20
TERAWHITI LICENSING: Creditors Must Prove Debts by September 8
VAJEVU PTY: To Declare First and Final Dividend on September 26
VILLAGE ROADSHOW: Stake in Austereo May Increase to 70.8%
VIP VENDING: Placed Under Members' Voluntary Liquidation

WAIHEKE CHARTERS: Creditors' Proofs of Claim Due on Sept. 22
WARBROOK EQUIPMENT: Members and Creditors Resolve to Close Firm
WESTPOINT GROUP: Banks Unwilling to Open Accounts for N. Carey
XERIUM TECHNOLOGIES: Earns US$11.1 Million for 2Q2006
XERIUM TECHNOLOGIES: Sells Huyck Dewatering Equipment Business

XIRO CONSULTING: Members to Receive Wind-Up Report


C H I N A   &   H O N G  K O N G

ASIA PREMIUM: Balance Sheet Upside-Down by US$2.7 Mil at June 30
BANK SINOPAC: S&P Affirms Bank Financial Strength Rating at C+
BROWNHILL TRADING: Final Members Meeting Set on September 20
CERADYNE INC: 2006 2nd Quarter Net Income Climbs to US$30 Mil.
CHAMP EMPIRE: Faces Wind-Up Proceedings

CHINA STEP: Creditors Must Prove Debts by September 22
CHINA TRADE: Appoints Official Liquidator
CHINTUNG FUTURES: Annual Meeting Fixed on Sept. 19
DU WIN GARMENTS: Court to Hear Wind-Up Bid on September 27
GLOBAL CROSSING: Mexican Customer Base Grew 64%

HEAPS LIMITED: Joint Liquidators to Present Wind-Up Report
HOWELL ENGINEERING: Wind-Up Bid Hearing Fixed on Sept. 27
FOREMOST CITY: Liquidator to Present Wind-Up Report
ID INNOVATION: Members and Creditors to Meet on Sept. 5
KWAN FONG: Members' Final Meeting Set on September 19

MEDARTS MEDICAL: Auditor Raises Going Concern Doubt on Operation
ORIENT EXPRESS: Commences Wind-Up Proceedings
OTTO CONTAINER: Members Opt for Voluntary Wind-Up
SKY GREAT: Sole Member to Receive Wind-Up Report
SKYLINE VIEW: Creditors' Proofs of Claim Due on September 20

TRELOCK HONG KONG: Member Resolve to Wind Up Operations


I N D I A

FEDDERS CORP: Equity Deficit Widens to US$17.04M in Six Months
SILICON GRAPHICS: Judge Lifland Approves Disclosure Statement
SILICON GRAPHICS: Court OKs Solicitation and Tabulation Protocol
SILICON GRAPHICS: Gets Final Nod to Use Cash Management System
SILICON GRAPHICS: Modified Employee Incentive Plan Approved

SILICON GRAPHICS: Hires Bear Stearns as Financial Advisor


I N D O N E S I A

ARMSTRONG WORLD: Parent Loses Ownership Under Chapter 11 Plan
COMVERSE TECH: Subsidiary to Acquire Netonomy(R) for US$19M
LAPINDO BRANTAS: IDR33.27T Toxic Mud Bill May Cause Bankruptcy
NORTEL NETWORKS: Sets Aside US$28M Reserve to Clean up Sites
NORTEL NETWORKS: Forms Strategic Alliance with Microsoft Corp.

NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares
PERUSAHAAN GAS: Gets ADB Support in Getting Loans
POLYSINDO EKA: Posts Turnaround of IDR128B on FOREX Gains
TELKOMSEL INDONESIA: Fitch Upgrades Long-Term Rating to BB
TELKOMSEL INDONESIA: Posts 41% Increase in First-Half Net Income


J A P A N

BLOUNT INT: Equity Deficit Narrows to US$122.81 Mil. at June 30
JAPAN AIRLINES: Will Keep Hotel Nikko Saipan


K O R E A

ACTUANT CORP: Buys Actown-Electrocoil Stock for US$24 Million
ARROW ELECTRONICS: Earns US$92.8 Million in 2006 Second Quarter
AVANI INTERNATIONAL: June 30 Capital Deficit Widens to $128,775
BURGER KING: Names Peter Robinson President of EMEA Operations
MERIDIAN CO: Auditors Raise Substantial Going Concern Doubt

QUANTUM CORP: S&P Ups Sr. Secured First-Lien Debt's Rating to B+
QUANTUM CORP: Completes Acquisition of ADIC for US$770 Million


M A L A Y S I A

FURQAN BUSINESS: Proceeds of Austral Amal's Sale Received
MALAYSIA AIRLINES: Violated Immigration Laws, NZ Officials Say
MALAYSIA AIRLINES: Forges Partnership with Virgin
MITHRIL BERHAD: To Seek Shareholders' Mandate at AGM
MYCOM BERHAD: Enters Into Additional Restructuring Pacts

OLYMPIA INDUSTRIES: Inks More Restructuring Deals
RENTOKIL INITIAL: Posts GBP562.8-Mln Equity Deficit at June 30
SEAINS PTE: Enters Dissolution Proceedings
TENAGA NASIONAL: Lists and Quotes 4,859,464 New Shares


P H I L I P P I N E S

ARANETA PROPERTIES: To Hold ASM on October 6, 2006
EXPORT INDUSTRY BANK: Board Appoints Three Senior Officers
APEX MINING: Resets ASM to November 8 & Defers Annual Meeting
METRO PACIFIC: Requests Nine-Day Shares Trading Suspension
MIRANT CORP: Quezon Province Demands Payment of PHP4.12Bln RPT

MIRANT CORP: Gregorys Want Sugar Creek's $42-Mil. Claims Allowed
MIRANT CORP: Lovett Unit Gets Court Approval on NY DEC Order
PHIL. NATIONAL CONSTRUCTION: Submits Turnaround Plan to the SC
* BSP Considers Policy Rate Cut for 2007


S I N G A P O R E

ADVANCED SYSTEMS: Director Steps Aside
ANANDA TRAVEL: Faces Wind-Up Proceedings
GETRONICS NV: Concludes Sale of Units to Kapsch
INTERNATIONAL DRILLING: Creditors' Proofs of Debt Due on Sept. 8
JIN-WEN INVESTMENT: Creditors' Meeting Slated for September 8

REFCO INC: Chapter 7 Trustee Authorized to Wind Down Subsidiary
REFCO INC: Court Approval on Document Sharing Pact Sought


T H A I L A N D

BANGKOK BANK: Moody's Lifts Financial Strength Rating to D+
KASIKORNBANK PCL: Moody's Raises Financial Strength Rating to D+
* Second Quarter Reflects Increase in NPL's


* Upcoming Meetings, Conferences and Seminars

     - - - - - - - -

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

123 ENTERPRISE: Liquidation Bid Hearing Set on Sept. 4
------------------------------------------------------
A petition to liquidate 123 Enterprise Ltd will be heard before
the High Court of Hamilton on September 4, 2006, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on July 25, 2006.

The Solicitor for the Petitioner can be reached at:

         P.L.Windsor Knaap
         Inland Revenue Department
         1 Bryce Street, Hamilton
         New Zealand
         Telephone: (07) 959 0432


ANCON CHEMICALS: To Declare First and Final Dividend on Sept. 26
----------------------------------------------------------------
Ancon Chemicals Pty Ltd will declare its first and final
dividend for priority unsecured creditors on September 26, 2006.

Creditors are required to file their proofs of debt by September
12, 2006, for them to share in the dividend distribution.

The liquidator can be reached at:

         G. J. Keith
         Grant Thornton
         Rialto Towers, Level 35
         South Tower, 525 Collins Street
         Melbourne, Victoria 3000
         Australia


ARRAN PASTORAL: Members Resolve to Voluntarily Wind Up Firm
-----------------------------------------------------------
The members of Arran Pastoral Co Pty Ltd met on August 8, 2006,
and resolved to voluntarily wind up the company's operations.

In this regard, Stan Traianedes was appointed as liquidator.

The Liquidator can be reached at:

         Stan Traianedes
         Hall Chadwick
         Chartered Accountants
         Level 12, 459 Collins Street
         Melbourne, Victoria 3000
         Australia


BAIAMA PTY: Members and Creditors to Convene on Sept. 25
--------------------------------------------------------
Members and creditors of Baiama Pty Limited will meet on
September 25, 2006, at 9:00 a.m., to receive Liquidator Marc
Peskett's final account on the company's wind-up proceedings and
property disposal exercises.

The Liquidator can be reached at:

         Marc Peskett
         MPR Group Pty Ltd
         Level 11, 499 St Kilda Road
         Melbourne, Victoria 3004
         Australia


BURT BROS: Members to Receive Liquidator's Wind-Up Report
---------------------------------------------------------
The members of Burt Bros Brake Service Pty Ltd will hold a final
meeting on September 15, 2006, at 9:00 a.m.

At the meeting, Liquidator Stan Knysh will give his final
account of the company's wind-up proceedings and property
disposal exercises.

The Liquidator can be reached at:

         Stan Knysh
         Knysh & Associates Accountants
         Level 2, 20 Smith Street
         Parramatta, Australia


CARPE OMNES: Receiver and Manager Steps Aside
---------------------------------------------
Justin Denis Walsh ceased to act on August 7, 2006, as receiver
and manager of all the assets and undertakings of Carpe Omnes
Diem Pty Ltd.

The former Receiver and Manager can be reached at:

         Justin Denis Walsh
         Ernst & Young
         Level 5, Waterfront Place
         1 Eagle Street
         Brisbane, Queensland 4000
         Australia


CPS (NSW) PTY: To Pay Dividend to Ordinary Unsecured Creditors
--------------------------------------------------------------
CPS (NSW) Pty Limited will declare on October 19, 2006, its
first and final dividend for ordinary unsecured creditors.

Creditors must submit their proofs of claim by September 12,
2006, for them to share in the company's dividend distribution.

The liquidator can be reached at:

         Peter W. Marsden
         RSM Bird Cameron Partners
         Level 12, 60 Castlereagh Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9233 8933
         Facsimile:(02) 9233 8521


DEMACO INTERNATIONAL: Liquidator McLellan to Give Wind-Up Report
----------------------------------------------------------------
Members and creditors of Demaco International Trading Company
Pty Ltd will convene on September 20, 2006, at 11:00 a.m., to
receive Liquidator Andrew McLellan's report on the company's
wind-up proceedings and property disposal exercises.

The Liquidator can be reached at:

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


DRYANDER PTY: Faces Creditors' Voluntary Wind-Up
------------------------------------------------
Creditors of Dryander Pty Ltd passed a special resolution on
August 10, 2006, to voluntarily wind-up the company's
operations.

Subsequently, K. L. Sutherland and H. A. MacKinnon were named
joint and several liquidators.

The Joint and Several Liquidators can be reached at:

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


DVR DEVELOPMENTS: Faces Liquidation Proceedings
-----------------------------------------------
A petition to liquidate DVR Developments Ltd will be heard
before the High Court of Christchurch on September 4, 2006, at
10:00 a.m.

Larnach Private Ledger No.1 Ltd filed the petition with the
Court on August 4, 2006.

The Solicitor for the Petitioner can be reached at:

         Grant William Smith
         Cousins & Associates, Level Two
         148 Victoria Street, Christchurch
         New Zealand
         P.O. Box 25249, Christchurch
         Facsimile: (03) 377 079


FORESHORE ROAD: Placed Under Voluntary Liquidation
--------------------------------------------------
At a general meeting of the members of Foreshore Road Pty Ltd
held on August 9, 2006, it was resolved that a voluntary wind-up
of the company's operations is appropriate and necessary.

In this regard, Garth D. Olling and Paul Andrew Billingham were
appointed as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Garth D. Olling
         Paul Andrew Billingham
         Chartered Accountants
         Grant Thornton
         Level 17, 383 Kent Street
         Sydney, New South Wales 2000
         Australia


JAVA JOHNS: Court to Hear CIR's Liquidation Bid
-----------------------------------------------
A petition to liquidate Java Johns 2001 Ltd will be heard before
the High Court of Auckland on September 7, 2006.

The Commissioner of Inland Revenue filed the petition with the
Court on June 16, 2006.

The Solicitor for the Petitioner can be reached at:

         Geraldine Ann Ryan
         Auckland South Service Centre
         17 Putney Way (P.O. Box 76-198)
         Manukau City, New Zealand
         Telephone: (09) 984 2002


JUST MANOLIOS: Enters Wind-Up Proceedings
-----------------------------------------
The members of Just Manolios Pty Ltd met on August 14, 2006, and
agreed by way of a special resolution to wind up the company's
operations.

The liquidator can be reached at:

         Tim Norman
         Deloitte Touche Tohmatsu
         180 Lonsdale Street
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9208 7000


K&J WHITE: Members and Creditors to Receive Wind-Up Report
----------------------------------------------------------
A final meeting of the members and creditors of K&J White Pty
Limited will be held on September 19, 2006, at 11:00 a.m.

During the meeting, Liquidator Michael G. Jones will report om
the company's wind-up and property disposal exercises.

The Liquidator can be reached at:

         Michael G. Jones
         Jones Condon Chartered Accountants
         Level 13, 189 Kent Street
         Sydney, New South Wales
         Australia
         Telephone:(02) 9251 5222


LOGEC SYSTEMS: To Declare First and Final Dividend on Sept. 24
--------------------------------------------------------------
Logec Systems Pty Ltd will declare its first and final dividend
to creditors on September 24, 2006, to the exclusion of those
who were not able to prove their claims by September 21, 2006.

As reported by the Troubled Company Reporter - Asia Pacific, the
company commenced a wind-up of its operations on May 23, 2005.

The liquidator can be reached at:

         Glenn A. Crisp
         RSM Bird Cameron Partners
         Chartered Accountants
         Level 8, 525 Collins Street
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9286 1800
         Facsimile:(03) 9286 1899


M.S.D. SPORTS: Names Handberg and Morgan as Joint Liquidators
-------------------------------------------------------------
On August 4, 2006, a special resolution was passed to
voluntarily wind up M.S.D. Sports Pty Ltd and appoint Geoffrey
Handberg and Brent Morgan as joint liquidators.

The Joint Liquidators can be reached at:

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


MAYPOLE MANUFACTURING: Receiver and Manager Named
-------------------------------------------------
On August 9, 2006, Steven Davies was appointed as receiver and
manager of all the assets and undertakings of Maypole
Manufacturing Pty Limited.

The Receiver and Manager can be reached at:

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


NEILSON PRODUCTIONS: Faces Wind-Up Proceedings
----------------------------------------------
The members of Neilson Productions Pty Ltd convened on
August 11, 2006, and resolved to voluntarily wind up the
company's operations.

In this regard, Anthony Robert Cant was appointed as liquidator.

The Liquidator can be reached at:

         Anthony Robert Cant
         Romanis Cant
         Chartered Accountants
         106 Hardware Street
         Melbourne, Australia


NEOTEX AUSTRALIA: Members and Creditors to Meet on Sept. 21
-----------------------------------------------------------
Members and creditors of Neotex Australia Pty Ltd will hold a
meeting on September 21, 2006, at 10:30 a.m., to receive
Liquidator Glenn A. Crisp's accounts of the company's wind-up
proceedings and property disposal exercises.

The Troubled Company Reporter - Asia Pacific reported on May 5,
2005, that the company commenced a wind-up of its operations on
March 23, 2005.

The Liquidator can be reached at:

         Glenn A. Crisp
         RSM Bird Cameron Partners
         Level 8, 525 Collins Street
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9286 1800
         Facsimile:(03) 9286 1899


NJH TRANSPORT: Undergoes Liquidation Proceedings
------------------------------------------------
At a general meeting held on August 9, 2006, the members and
creditors of NJH Transport Pty Ltd agreed to liquidate the
company's business and appoint R. A. Sutcliffe as liquidator.

The Liquidator can be reached at:

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


NORTH SHORE: Names Johnstone and Hill as Liquidators
----------------------------------------------------
Shareholders of North Shore Waterproofing Ltd appointed on
August 16, 2006, Warren Johnstone and Andrew Hill as joint and
several liquidators.

The Joint Liquidators require the company's creditors to submit
their proofs of claim by September 30, 2006.

Failure to prove claims will exclude a creditor from sharing in
any distribution the company will make.

The Joint and Several Liquidators can be reached at:

         Warren Johnstone
         c/o Barbara King or Colin Gower
         BDO Spicers, Level Six, Spicer House
         148 Victoria Street, Christchurch
         New Zealand
         P.O. Box 246, Christchurch
         Telephone: (03) 379 5155
         Facsimile: (03) 353 5526
         e-mail: barbara.king@chc.bdospicers.com
                 colin.gower@chc.bdospicers.com


NZ GREEN: Shareholders Opt for Voluntary Liquidation
----------------------------------------------------
Shareholders of NZ Green Pine Ltd resolved on August 4, 2006, to
voluntary liquidate the company and appoint Joon Youl Seo as
liquidator to oversee the liquidation proceedings.

Mr. Joon can be reached at:

         Joon Youl Seo
         P.O. Box 8722, Symonds Street
         Auckland, New Zealand
         Telephone: (09) 303 2200
         Facsimile: (09) 307 2074


OAMARU AIRSPREAD: Commences Liquidation Proceedings
---------------------------------------------------
The
The liquidation of Oamaru Airspread Ltd commenced on August 18,
2006, following the appointment of Stephen James Higgs and
Stephen Alan Dunbar as joint and several liquidators of the
Company.

In this regard, creditors of the Company are required to submit
their proofs of claim by September 21, 2006. Failure to comply
with the requirement will exclude a creditor from sharing in any
distribution the company will make.

The Joint and Several Liquidators can be reached at:

         Stephen James Higgs
         c/o Nicola Hassan
         139 Moray Place, Dunedin
         New Zealand
         Telephone: (03) 477 9923


ORIGIN PACIFIC: Seeks Creditors' Extension to Consider Options
--------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 18, 2006, Origin Pacific Airways asked its creditors not
to place it in receivership or liquidation while it considers
its options.

The TCR-AP noted that a number of positive opportunities for
restructuring or selling the airline's freight and passenger
businesses were being evaluated.  The process was expected to
take about two weeks, and creditors were expected to receive an
update by August 28, 2006.

A follow-up report from the New Zealand Herald relates that
Origin Pacific has asked its creditors to allow more time for
possible buyers to look at the company's books.

ShareChat News relates that Origin Pacific Managing Director
Robert Inglis told creditors that, during the past two weeks,
Origin's freight operations had continued successfully, while
the company determined the full extent of its creditor
liabilities.

"This process is ongoing and we anticipate that our options will
be better clarified in another two weeks when the parties may
have made firm offers," Mr. Inglis added.

ShareChat notes that interested parties had formally entered
into due diligence of both the freight and passenger businesses.

Mr. Inglis maintains that the appointment of a receiver or
liquidator may not be in the creditors' best interests.

As reported in the TCR-AP, Origin Pacific was "seeking the
indulgence from creditors" to not take action that could
jeopardize restructuring.

A further progress announcement would be made on September 11,
2006, NZPA notes.

                     About Origin Pacific

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

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

                         *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Aug. 11, 2006, that Origin Pacific Airways was urgently seeking
fresh capital to help reduce debt.  The report noted that a
capital injection was necessary to ensure that the airline could
continue to "provide the competition so sorely needed in
regional aviation services."

However, a subsequent TCR-AP report noted that Origin Pacific
halted its passenger services on August 10, 2006, saying that it
has been unable to secure the capital urgently needed to reduce
its debt.  The action put most of its 260 staff out of work
immediately.


OZ PLANTS: To Declare First Dividend on September 7
---------------------------------------------------
Oz Plants Pty Ltd will declare its first dividend to creditors
on September 7, 2006, to the exclusion of those who were not
able to submit their proofs of debt August 31, 2006.

The deed administrator can be reached at:

         B. J. Marchesi
         Bent & Cougle Pty Ltd
         Chartered Accountants
         332 St Kilda Road
         Melbourne, Victoria 3004
         Australia


P & R MOTORS: Court Sets Date to Hear Liquidation Bid
-----------------------------------------------------
The High Court of Palmerston North will hear a liquidation
petition filed against P & R Motors Ltd on September 4, 2006, at
10:00 a.m.

Brake & Transmission NZ Ltd filed the petition with the Court on
August 3, 2006.

The Solicitor for the Petitioner can be reached at:

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


PLANTATION FRESH: Creditors' Proofs of Debt Due on September 12
---------------------------------------------------------------
Plantation Fresh Pty Limited will declare dividend on
September 18, 2006.

Creditors are required to submit their proofs of debt by
September 12, 2006, for them to share in the company's dividend
distribution.

The deed administrator can be reached at:

         Ozem Kassem
         Cor Cordis
         Chartered Accountants
         Level 8, 50 Carrington Street
         Sydney, New South Wales
         Australia
         Telephone:(02) 8221 8433
         Facsimile:(02) 8221 8422


PLUMBMASTERS (N.S.W.): Creditors Decide to Shut Down Firm
---------------------------------------------------------
Plumbmasters (New South Wales) Pty Limited commenced a wind-up
of its operations on August 11, 2006.

The company's wind-up was in accordance to the special
resolution under Section 491 that was passed by the creditors.

The joint liquidator can be reached at:

         David Watson
         Telephone:(02) 8221 8449
         e-mail: dwatson@corcordis.com.au


PROFESSIONAL GIFTS: Members Decide to Close Business
----------------------------------------------------
At an extraordinary general meeting held on August 14, 2006, the
members of Professional Gifts Pty Ltd agreed to close the
company's business.

Creditors appointed Philip Newman and Clyde Peter White as joint
and several liquidators at a separate meeting held on even date.

The Joint and Several Liquidators can be reached at:

         Philip Newman
         Clyde Peter White
         HLB Mann Judd
         Chartered Accountants
         Level 1, 160 Queen Street
         Melbourne 3000
         Australia


PROVINCIAL FINANCE: NZ$31-Million Accounts Anomaly Not Flagged
--------------------------------------------------------------
There was a NZ$31-million anomaly in Provincial Finance
Limited's accounts last year, which was not flagged to investors
or spotted by industry watchers, David King of The Dominion Post
relates.

An investigation by BusinessDay and the University of Canterbury
senior accountancy lecturer, Alan Robb, shows that the company
may have been in worse financial shape a lot earlier, but no
one, including the Securities Commission, queried it, the paper
reports.

The Securities Commission is having a second look at the
accounts after being alerted of the potential problem by
BusinessDay, Stuff.co.nz notes.

According to The Dominion, in Provincial's January 2006
prospectus, based on its accounts to September 30, 2005, the
figure for past due assets, which was listed as NZ$7.2 million
in the previous prospectus, has suddenly jumped to
NZ$38 million, without explanation.

Past due assets are loans that are 90 days or more in arrears,
the paper adds.

Furthermore, the total for impaired assets had gone from zero in
the company's previous prospectus, to NZ$42 million as the it
tried to claw back bad loans.  This number was flagged to
investors and the company said it had set up a dedicated team to
recover the loans, Stuff.co.nz relates.

Despite these problems in the prospectus, financial advisers
continued to pour money into the company until May this year,
The Dominion notes.

Stuff.co.nz cites Provincial Chairman David Lyall as telling
BusinessDay that the jump from NZ$7 million to NZ$38 million was
because the auditors had changed the way they presented the
accounts.  "They said we were NZ$7 million in arrears with
loans, they changed it to report the principal outstanding.
There was no change in the number of loans we were talking
about. It was an accountancy-driven thing," Mr. Lyall explains.

Mr. Lyall says that Provincial Finance had been conservative in
reporting its debts and other finance companies had changed
later, noting that the Companies Office had cleared the
accounts.

Mr. Robb noted that in the company's statement of accounting
policies, Provincial said there had been no changes in the
accounting policies, The Dominion says.

                    About Provincial Finance

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

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


R M GROUP: To Declare Dividend on September 15
----------------------------------------------
R M Group Productions Pty Ltd will declare dividend on
September 15, 2006 for its creditors, to the exclusion of those
who will not be able to submit their proofs of claim.

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


RED RESTAURANT: Court Set to Hear CIR's Liquidation Bid
-------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against Red Restaurant Ltd on September 7, 2006, at 10:45 a.m.

A petition to liquidate the company was filed by the
Commissioner of Inland Revenue on June 29, 2006.

The Solicitor for the Petitioner can be reached at:

         Geraldine Ann Ryan
         Auckland South Service Centre
         Putney Way (P.O. Box 76-198)
         Manukau City, New Zealand
         Telephone: (09) 984 2002


REDICHEM TRANSPORT: Creditors' Proofs of Debt Due on August 31
--------------------------------------------------------------
Redichem Transport Pty Limited will declare its first and final
dividend on August 31, 2006.

Creditors are required to submit their proofs of debt by
August 31, 2006, for them to share in the dividend distribution.

The liquidator can be reached at:

         Mark Roufeil
         Level 9, 31 Market Street
         Sydney, New South Wales 2000
         Australia


RESOURCE DEVELOPMENTS: Appoints Joint and Several Liquidators
-------------------------------------------------------------
Members of Resource Developments International Pty held a
general meeting on August 9, 2006, and resolved to voluntarily
wind up the company's operations.

Accordingly, Garth D. Olling and Paul Andrew Billingham were
appointed as liquidators.

The Liquidators can be reached at:

         Garth D. Olling
         Paul Andrew Billingham
         Chartered Accountants
         Grant Thornton
         Level 17, 383 Kent Street
         Sydney, New South Wales 2000
         Australia


SKY-SKAN AUSTRALIA: Creditors' Proofs of Claim Due on Sept. 7
-------------------------------------------------------------
Sky-Skan Australia Pty Ltd will declare its first and final
dividend to creditors on September 21, 2006, to the exclusion of
those who were not able to prove their debts by September 7,
2006.

The liquidator can be reached at:

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


TAMNAMORE PTY: Members' Final Meeting Scheduled on Sept. 20
-----------------------------------------------------------
Members of Tamnamore Pty Ltd will convene on September 20, 2006,
at 11:00 a.m., to receive Liquidator R. R. S. Mathews' accounts
on the company's wind-up proceedings and property disposal
exercises.

As reported by the Troubled Company Reporter - Asia Pacific on
July 26, 2006, the company commenced a wind-up of its operations
on June 20, 2006.

The liquidator can be reached at:

         R. R. S. Mathews
         Evans & Ayers
         Chartered Accountants
         Level 11, 101 Grenfell Street
         Adelaide, South Australia 5000
         Australia


TERAWHITI LICENSING: Creditors Must Prove Debts by September 8
--------------------------------------------------------------
Creditors of Terawhiti Licensing Trust are required to submit
their proofs of claim to Liquidator Terence Charles Webb Bastion
by September 8, 2006.

Failure to prove debts will exclude a creditor from sharing in
any distribution the company will make.

The Liquidator can be reached at:

         T.C.W. Bastion
         KBC House, 272 Karori Road
         Karori, Wellington
         New Zealand
         P.O. Box 17-344, Karori, Wellington
         Telephone: (04) 476 5775
         Facsimile: (04) 476 5778


VAJEVU PTY: To Declare First and Final Dividend on September 26
---------------------------------------------------------------
Vajevu Pty Limited will declare its first and final dividend on
September 26, 2006.

Creditors who were not able to submit their proofs of debt by
August 22, 2006, will be excluded from sharing in the dividend
distribution.

The liquidator can be reached at:

         Robert Moodie
         c/o Rodgers Reidy
         Chartered Accountants
         Level 8, 333 George Street
         Sydney, New South Wales 2000
         Australia


VILLAGE ROADSHOW: Stake in Austereo May Increase to 70.8%
---------------------------------------------------------
Austereo, owner of the Triple M and Fox FM duopolies and 67.3%
owned by Village Roadshow Limited, reveals that it would spend
AU$34 million buying 18.9 million shares or 5% of the company
this year, The Australian reports.

The plan will potentially lift Village Roadshow's stake to
70.8%, the paper says.

Village Roadshow finance director Peter Foo tells The Australian
that Village Roadshow has yet to decide whether to participate
or refrain from voting on the proposal.

Austereo executive chairman Peter Harvie said that the buyback
is "about making good use of shareholders' funds," the paper
says.

According to The Australian, the buyback could further cement
Village's position in Austereo ahead of likely changes to cross-
media ownership laws.

Austereo is considered a prime takeover target if Village agrees
to sell, but Mr. Harvie downplayed talk of prospective deals,
The Australian notes.

"I think everything is of interest to everyone, but the
legislation hasn't gone through and you don't know what the
Nationals will do, so I can't really speculate," Mr. Harvie
said, noting that the buyback would not preclude future
acquisitions.

"We still have the capacity to do that, we have access to funds,
so it's not a prohibition to any course of action the board may
decide to take," The Australian cites Mr. Harvie as saying.

According to the Sydney Morning Herald, Austereo said the
proposed buyback might increase gearing to about 32.4% from the
current level of 27.4%.

                     About Village Roadshow

Headquartered in Melbourne, Australia, Village Roadshow Limited
-- http://www.villageroadshow.com.au/-- is an international
media and entertainment company that operates core businesses in
cinema, movie production, film distribution, radio, and theme
parks.

The Company's troubles began in 2003 when it offered to buy back
its preference shares to head off a litigation threat by some
preference shareholders who were angered at the Company's
suspension of dividend payments.  Village Roadshow's reported
and budgeted profitability would not allow it to comfortably
fund about AU$42 million worth of ordinary and preference share
dividends out of annual earnings.  For the past years, the
Company has been facing major litigation brought by former
business partners, who had invested in its film investment
scheme.

In December 2005, the Film Production division undertook a
substantial restructure.  As part of this restructure, a
US$115 million Promissory Note was issued to Crescent Film
Holdings and options to acquire a 50% shareholding in the
Hollywood film production and related film exploitation
business, Village Roadshow Pictures Group, were granted to
Crescent and its affiliates.  This initiative, together with the
release of a US$70 million security deposit (replaced by a
Letter of Credit), returned significant cash reserves to Village
Roadshow.  By January 2006, Village Roadshow had advised that
VRPG had reached agreement with its financiers to increase its
film production facility from US$900 million to US$1.4 billion.
VRPG will continue to co-produce and co-finance films with its
principal production partner, Warner Bros.  The revolving period
of the facility has also been extended for a further three
years.  As a result, drawdowns will now be available under the
facility until January 2011 (previously February 2008) with the
debt now scheduled to be fully repaid by January 2015
(previously January 2012).

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
March 1, 2006, that Village Roadshow posted a AU$2.21-million
loss for the half-year ended December 31, 2006, compared to a
net profit of AU$29.99 million in the previous corresponding
half.  The result is contrary to a profit downgrade in January,
which already suggested a break-even figure.

The entertainment group blames its poor financial result on
lower cinema ticket sales, compounding losses from the
restructuring of its movie production business and legal
battles.


VIP VENDING: Placed Under Members' Voluntary Liquidation
--------------------------------------------------------
The members of VIP Vending (Victoria) Pty Limited met on
August 11, 2006, and agreed to voluntarily wind up the company's
operations.

Accordingly, Nicholas Crouch was appointed 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


WAIHEKE CHARTERS: Creditors' Proofs of Claim Due on Sept. 22
------------------------------------------------------------
Shareholders of Waiheke Charters Ltd appointed on August 21,
2006, Paul Graham Sargison and Gerald Stanley Rea as joint and
several liquidators.

The Joint Liquidators require creditors to submit their proofs
of claim by September 22, 2006, for them to share in any
distribution the company will make.

The Joint and Several Liquidator 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


WARBROOK EQUIPMENT: Members and Creditors Resolve to Close Firm
---------------------------------------------------------------
At a general meeting held on August 8, 2006, the members and
creditors of Warbrook Equipment Pty Ltd resolved to close the
company's business and appoint Gregory Stuart Andrews as
liquidator.

The Liquidator can be reached at:

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


WESTPOINT GROUP: Banks Unwilling to Open Accounts for N. Carey
--------------------------------------------------------------
Westpoint Group's founder, Norman Phillip Carey has not received
any living expenses since the end of July 2006 because no major
bank is willing to open a bank account for him, The Courier-Mail
reports.

According to The West Australian, Mr. Carey tried to open
accounts with Westpac, Commonwealth, ANZ Bank, and Bank-West,
but was refused because of the Federal Court orders against him.
National Australia Bank and Bendigo Bank also refused Mr. Carey,
the paper notes.

Westpoint's receiver, Brian McMaster of KordaMentha, also
applied to the National Australia Bank for a bank account on Mr.
Carey's behalf, but was unsuccessful, The Courier-Mail notes.

Thus, Mr. Carey's lawyer Terrence Clavey indicated that he would
seek from the Federal Court in Perth for a variation of orders
that would allow Mr. Carey to open a bank account, The Courier-
Mail relates.

According to The West Australian, Mr. Clavey said his client had
struck a deal to be paid by court-appointed receivers
KordaMentha but was unable to cash his pay cheques because he
had no bank account.

Mr. Carey has been allowed an undisclosed living expense from
Westpoint's receivers, paid from Westpoint companies Richstar
Enterprises and Westpoint Realty, The Courier-Mail says.

The West Australian relates that Mr. Carey's private financial
affairs are under the control of receivers appointed by the
Federal Court to secure control of Carey-linked assets that
seemed to have escaped the Westpoint collapse late last year.

As reported in the Troubled Company Reporter - Asia Pacific on
July 7, 2006, Mr. Carey requested AU$4,000 in weekly living
expenses, saying that before Wespoint's failure, the Company
paid for all his needs.

Mr. Carey prepared an affidavit outlining his financial
situation, The West reveals.  Mr. Clavey notes that he will
apply to keep it confidential.

The West Australian says the affidavit also details the finances
of Mr. Carey's former wife.

The paper recounts that Mr. Carey's split with Diane Carey saw
litigation launched in the Supreme Court in April 2003 over an
allegedly flawed pre-nuptial agreement.

In the court action against Ms. Carey and a Perth law firm, Mr.
Carey claimed the alleged flaws had disrupted his business
activities and cut the value of his companies, The West
Australian relates.

Justice Robert French adjourned the matter, including Mr.
Clavey's request to keep the affidavit confidential to a later
date.

                    About Westpoint Group

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

In February 2006, the Federal Court in Perth issued a wind-up
order against Westpoint Corporation Pty Ltd.  The ASIC had
applied to wind up the company on grounds of insolvency.
The ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.

The Westpoint Group's collapse is considered by many as the
largest of its type in recent years, with small investors being
the biggest group affected.  Investors are currently joining
forces to commence a class action against Westpoint and its
advisors.


XERIUM TECHNOLOGIES: Earns US$11.1 Million for 2Q2006
-----------------------------------------------------
Xerium Technologies, Inc.'s net income was US$11.1 million for
the second quarter of 2006 compared to a net loss of
US$12.3 million for the second quarter of 2005.

The Company's net sales for the second quarter of 2006 were
US$154.6 million, a 6% increase from US$145.9 million for the
second quarter of 2005.

The Company disclosed net cash generated by operating activities
was US$18.3 million for the second quarter of 2006, compared to
a negative US$11.1 million in the same quarter last year.

The Company also disclosed capital expenditures for the second
quarter of 2006 were US$9.5 million, compared to US$8.7 million
for the second quarter of 2005.  Approximately US$6.2 million of
capital expenditures in this year's second quarter were directed
toward projects designed to support the Company's growth
objectives, with the remaining US$3.3 million used to sustain
the Company's existing operations and facilities.

Net income of the Company was US$20.7 million, for the first six
months of 2006, compared to a net loss of US$4.1 million, for
the same period of 2005.

The Company's net sales for the first half of 2006 were US$301.3
million, a 1.2% increase from US$297.8 million for the first six
months of 2005.  The total impact of currency fluctuations on
net sales for the first six months of 2006, as compared to the
first half of 2005, was a decrease of US$5 million, including
US$1.6 million from currency translation and US$3.4 million from
the effect of currency on pricing.

Net cash generated by operating activities was US$22 million for
the first six months of 2006, compared to US$6.6 million in the
same period last year.

                  Declaration of Cash Dividend

The Company also disclosed that its Board of Directors has
declared a cash dividend of US$0.225 per share of common stock
payable on September 15, 2006.

                   About Xerium Technologies

Headquartered in Wesborough, Massachusetts, Xerium Technologies,
Inc. (NYSE: XRM) -- http://xerium.com/-- is a leading global
manufacturer and supplier of two types of products used
primarily in the production of paper: clothing and roll covers.
The company, which operates around the world under a variety of
brand names, owns a broad portfolio of patented and proprietary
technologies to provide customers with tailored solutions and
products integral to production, all designed to optimize
performance and reduce operational costs.  With 36 manufacturing
facilities in 15 countries -- including, Japan and Australia --
Xerium Technologies has approximately 3,900 employees.

                          *     *     *

As reported in the Troubled Company Reporter on January 24,
2006, Moody's Investors Service changed the outlook on Xerium
Technologies, Inc.'s ratings to negative from stable, and
affirmed the company's corporate family rating at B1.  The
change in outlook to negative reflects Xerium's weaker than
expected operating performance primarily due to production
inefficiencies in North America and delays in achieving benefits
from cost reduction initiatives.  Moody's believes the impact of
these issues, coupled with a difficult pricing environment for
roll covers and to a lesser extent clothing products, will
continue to negatively affect operating performance over the
intermediate term.

Affirmed ratings are:

     * Corporate family rating; B1
     * Guaranteed senior secured term loan B; B1
     * Guaranteed senior secured revolving credit facility; B1


XERIUM TECHNOLOGIES: Sells Huyck Dewatering Equipment Business
--------------------------------------------------------------
Xerium Technologies, Inc., has completed the sale of its Huyck
Dewatering Equipment Business, based in Whitstable, United
Kingdom, to subsidiaries of Groupe Laperriere & Verreault Inc.

The Huyck Dewatering Equipment Business is engaged primarily in
the business of the manufacture and sale of equipment utilized
in the wet end of paper-producing machines for the purpose of
enhancing the removal of water from the paper manufacturing
process.  Net sales of the Huyck Dewatering Equipment business
for the first half of 2006 were approximately US$2.0 million.
Financial terms of the transaction were not disclosed.

Tom Gutierrez, Xerium's President and Chief Executive Officer,
says, "We are pleased to complete the sale of the Huyck
Dewatering Equipment Business. This business had been operated
in connection with our European clothing operation, and we
believe that the divestment of this non-core business represents
an opportunity to enhance the focus of our European clothing
management team on its core business."

                   About Xerium Technologies

Headquartered in Wesborough, Massachusetts, Xerium Technologies,
Inc. (NYSE: XRM) -- http://xerium.com/-- is a leading global
manufacturer and supplier of two types of products used
primarily in the production of paper: clothing and roll covers.
The company, which operates around the world under a variety of
brand names, owns a broad portfolio of patented and proprietary
technologies to provide customers with tailored solutions and
products integral to production, all designed to optimize
performance and reduce operational costs.  With 36 manufacturing
facilities in 15 countries -- including, Japan and Australia --
Xerium Technologies has approximately 3,900 employees.

                          *     *     *

As reported in the Troubled Company Reporter on January 24,
2006, Moody's Investors Service changed the outlook on Xerium
Technologies, Inc.'s ratings to negative from stable, and
affirmed the company's corporate family rating at B1.  The
change in outlook to negative reflects Xerium's weaker than
expected operating performance primarily due to production
inefficiencies in North America and delays in achieving benefits
from cost reduction initiatives.  Moody's believes the impact of
these issues, coupled with a difficult pricing environment for
roll covers and to a lesser extent clothing products, will
continue to negatively affect operating performance over the
intermediate term.

Affirmed ratings are:

     * Corporate family rating; B1
     * Guaranteed senior secured term loan B; B1
     * Guaranteed senior secured revolving credit facility; B1


XIRO CONSULTING: Members to Receive Wind-Up Report
--------------------------------------------------
Members of Xiro Consulting Pty Ltd will hold a final meeting on
September 15, 2006, at 11:00 a.m., to receive the liquidator's
accounts of the company's wind-up proceedings and property
disposal exercises.

The Troubled Company Reporter - Asia Pacific reported on
March 1, 2006, that the company commenced a wind-up of its
operations on February 6, 2006.

The joint and several liquidators can be reached at:

         Antony de Vries
         Riad Tayeh
         Level 3, 95 Macquarie Street
         Parramatta, New South Wales 2150
         Australia


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

ASIA PREMIUM: Balance Sheet Upside-Down by US$2.7 Mil at June 30
----------------------------------------------------------------
Asia Premium Television Group, Inc., earned US$580,654 of net
income on US$20,491,876 of revenues on the second quarter ending
June 30, 2006, the Company disclosed on a Form 10-Q filing
delivered to the Securities and Exchange Commission on Aug. 11,
2006.

As of June 30, 2006, the Asia Premium's balance sheet showed
US$21,467,223 in assets and US$23,585,978 in liabilities.  The
Company's equity deficit narrowed to US$2,118,755 as of June 30,
2006, from a US$2,702,824 equity deficit at Dec. 31, 2005.  The
Company had US$20,507,372 in current assets at June 30, 2006,
available to pay off US$23,518,441 of debts due in the next 12
months.

The Company's net cash provided by operating activities
increased to US$3.4 million for the three months ended June 30,
2006, compared to US$1.6 million for the three months ended June
30, 2005.  This increase was primarily due to an increase in
accounts payable and other payables.

Net cash used by investing activities increased to US$200,000
for the three months ended June 30, 2006, compared to net cash
used by investing activities of US$100,000 for the three months
ended June 30, 2005, due primarily to increases in payments for
property and equipment and a note receivable.

Net cash used by financing activities was US$50,000 in the three
months ended June 30, 2006, as compared to US$10,000 during the
three months ended June 30, 2005.  This change was primarily due
to a decrease in advances payable to related parties in the
three months ended June 30, 2006, as compared to the same period
in 2005.

                       Going Concern Doubt

The Company's management expressed substantial doubt about the
Company's ability to continue as a going concern due to
liquidity problems.  However, management believes the going
concern is mitigated because of these factors:

   a) convertible notes payable in the amount of  US$4,000,000
      is included in current liabilities but the note is held by
      a significant shareholder and will be repaid by conversion
      into common stock;

   b) the Company has shown a net profit in each of the two most
      recent fiscal years and expects the trend to continue; and

   c) the Company has generated positive cash flows in each of
      the two most recent fiscal years and expects the trend to
      continue.

A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?106a

                About Asia Premium Television

Asia Premium Television Group, Inc., provides marketing, brand
management, advertising, media planning, public relations and
direct marketing services to clients in the People's Republic of
China.  The Company's primary operating activities are
Publishing advertisements as agents for clients; Media
consulting services; and Advertising production.


BANK SINOPAC: S&P Affirms Bank Financial Strength Rating at C+
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed on August 28, 2006,
its 'BBB-' long-term and 'A-3' short-term counterparty credit
ratings on SinoPac Holdings.  The outlook is stable.

The ratings reflect the SinoPac group's satisfactory asset
quality and capitalization, as well as its prudent risk
controls. Counterbalancing factors include the group's size,
which is small by international standards.

Standard & Poor's also affirmed its 'BBB' long-term and 'A-2'
short term counterparty credit ratings on Bank SinoPac. The
outlook is also stable. At the same time, the 'C+' bank
fundamental strength rating on the bank was affirmed.

The ratings reflect the bank's above-average asset quality,
adequate capitalization, and prudent risk controls.
Counterbalancing factors include the bank's size, which is also
small by international standards.

With total equity of TWD92.4 billion and consolidated assets of
TWD1.1 trillion at the end of March 2006, SinoPac is a midsize
financial holding company. In addition to Bank SinoPac, its
major subsidiaries are International Bank of Taipei and SinoPac
Securities Corp.

The SinoPac group's profitability is below average by
international standards but its asset quality and capitalization
are satisfactory.

                          *     *     *

Bank Sinopac -- http://www.banksinopac.com.tw-- is a Taiwan-
based banking holding company. The bank was founded by Samuel
Yin and Paul Lo in 1992 as Taiwan liberalized its banking
regulations.  In late 2005, SinoPac merged with the
International Bank of Taiwan.


BROWNHILL TRADING: Final Members Meeting Set on September 20
-------------------------------------------------------------
Members of Brownhill Trading Co Ltd will convene for their final
meeting at 7th Floor, Alexandra House, 18 Chater Road, Central,
Hong Kong on September 20, 2006, 3:30 p.m.

At the meeting, Liquidator David J. Lawrence will report on the
company's wind-up and property disposal exercises.

The Troubled Company Reporter - Asia Pacific reported on
April 10, 2006, that the Company commenced a wind-up of its
operations on March 15, 2006.


CERADYNE INC: 2006 2nd Quarter Net Income Climbs to US$30 Mil.
--------------------------------------------------------------
Ceradyn, Inc. registered increased sales for the second quarter
2006 of US$162 million, up from US$89.9 million in second
quarter 2005.  Net income increased to a record US$30 million,
compared to a net income of US$11.4 million in second quarter
2005.

Sales for the six months ended June 30, 2006 were US$298.4
million, up from US$159.7 million in the comparable period last
year.  Net income for the first six months of 2006 increased to
US$54.6 million from US$17.4 million for the first six-month
period in 2005.

Total backlog as of June 30, 2006 rose to a record US$256.6
million compared to total backlog at June 30, 2005 of US$215.6
million.

"We are very pleased with the significant increase in our second
quarter 2006 financial performance," Joel P. Moskowitz, chief
executive officer, commented.

"The expansion of production capacity at our Lexington, Kentucky
technical ceramic manufacturing facility this year allowed us to
ramp up in order to meet the U.S. government's continuing
requirements for lightweight ceramic body armor.  The award to
Ceradyne for ESBI (side plates) in early July of a US$59.8
million, 2006 delivery order, as part of a new 5-year indefinite
delivery/indefinite quantity contract with a maximum value of
US$611.7 million, indicates the continued demand for our
lightweight ceramic body armor.

"The exclusive agreement with Alcan, the establishing of a
manufacturing facility in Chicoutimi, Quebec, Canada, and the
acquisition of the nuclear radiation shielding business which
were announced in July 2006 will put Ceradyne in the
aluminum/boron carbide metal matrix composite business in order
to produce structural elements for the fabrication of nuclear
waste containment vessels.  Ceradyne intends to develop
ballistic grade aluminum compositions for armored vehicles and
use its new Canadian facility as a base for working with the
aluminum smelting industry regarding advanced technical ceramic
applications.

"Additionally, the Company intends to break ground this quarter
on a technical ceramic manufacturing plant in Tianjin, China.
This 117,000 square foot factory will be Ceradyne's first
manufacturing facility in China.  Although its initial ceramic
product will be related to the Chinese manufacture of silicon
solar energy cells, we anticipate it will expand our presence in
China and complement our Beijing sales office."

Mr. Moskowitz further stated: "We recently commenced a voluntary
review of our historical stock option grants and related
accounting treatment. This review was initiated by Ceradyne in
response to concerns raised by several non-regulatory parties
about our stock option granting policies and wide public media
coverage of stock option grant issues involving other companies.
This review is being conducted by a Special Committee of our
Board of Directors, comprised solely of independent directors,
with the assistance of independent legal counsel.  The review is
focusing on stock option grants made during the period of 1997
to the present.

"Although the Special Committee's review has not been completed,
management has concluded that the measurement dates for
accounting purposes differ from recorded dates for certain stock
option grants made during 1997 through 2003. As a result of
these findings, in the 2006 second quarter, the Company recorded
an estimated after-tax, non-cash charge of approximately US$1.5
million pertaining to the years ended December 31, 1997 to 2005
and the first six months of 2006.  However, because the review
has not been completed, the charge we have recorded in the 2006
second quarter may be modified or significantly changed."

                          About Ceradyne

Ceradyne, Inc. (Nasdaq: CRDN) -- http://www.ceradyne.com/--  
develops, manufactures and markets advanced technical ceramic
products and components for defense, industrial,
automotive/dieseland consumer applications.  The company
operates a technical ceramic plant in Tianjin, China.

                           *     *     *

As reported in the Troubled Company Reporter on July 24, 2006,
Ceradyne's $50 million revolving credit facility due 2009
carries Standard & Poor's BB- rating.  Standard & Poor's also
rates the Company's credit rating at BB-.


CHAMP EMPIRE: Faces Wind-Up Proceedings
---------------------------------------
A wind-up petition filed against Champ Empire Ltd will be heard
before the High Court of Hong Kong on September 20, 2006, at
9:30 a.m.

Wong Tak Lok filed the petition with the Court on July 24, 2006.

The Plaintiff's Solicitor can be reached at:

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


CHINA STEP: Creditors Must Prove Debts by September 22
------------------------------------------------------
Liquidator Chan Sek Kwan, Rays require the creditors of China
Step Holdings Ltd to prove their debts by September 22, 2006.

Failure to show proofs of claim will exclude a creditor from
sharing in any distribution the company will make.

The Liquidator can be reached at:

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


CHINA TRADE: Appoints Official Liquidator
-----------------------------------------
Members of China Trade International (HK) Limited appointed on
August 11, 2006, Chan Bing Chung, Jones as the company's
official Liquidator.

The appointment came after members passed a resolution to
voluntarily wind-up its operations.


CHINTUNG FUTURES: Annual Meeting Fixed on Sept. 19
--------------------------------------------------
Members and creditors of Chintung Futures Ltd will convene for
their annual meeting on September 19, 2006, 11:00 a.m. at 18th
Floor, Two International Finance Centre, 8 Finance Street
Central, Hong Kong.

At the meeting, Liquidator Ian Grant Robinson will report on the
Company's wind-up and property disposal activities.


DU WIN GARMENTS: Court to Hear Wind-Up Bid on September 27
----------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition filed
against Du Win Garments Ltd on September 27, 2006, at 9:30 a.m.

Chan Lai Yee filed the petition with the Court on July 28, 2006.

The Plaintiff's Solicitor can be reached at:

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


GLOBAL CROSSING: Mexican Customer Base Grew 64%
-----------------------------------------------
Global Crossing disclosed that the number of its enterprise and
carrier customers increased 64% year over year in the second
quarter of 2006 due to the accelerated adoption of its services
in the "invest and grow" segment, which provides IP services to
enterprises via direct and indirect distribution channels.

Global Crossing, which began operations in Mexico in October
2000, has ramped up its service offerings to enterprises in the
local market and as a result, the number of enterprise customers
in Mexico increased by 50 percent in the second quarter of 2006
compared to the previous year. Global Crossing's state-of-the-
art Internet Protocol solutions also have been key to the
company's success in Mexico.  Overall IP traffic more than
doubled in the country during the same time period, outpacing
the company's global IP growth.

"As one of Latin America's most dynamic economies, Mexico is a
strategic market for Global Crossing," said Jose Antonio Ros,
international president and CAO of Global Crossing.  "Seeing
this type of growth in our customer base further reinforces our
reputation as an IP solutions provider of choice for both
enterprises and the carriers in all of the markets we serve.  We
look forward to working and growing together with national and
multinational firms as they expand into the Mexican market."

Global Crossing also has seen remarkable Internet growth in
Mexico -- the number of customers with Internet services
increased by 144 percent during the 12-month period ending June
2006.  In addition, the number of enterprise and carrier
customers who use IP and data services delivered over Global
Crossing's private network - services such as Multiprotocol
Label Switching (MPLS)-based IP VPNs and legacy services like
Frame Relay and ATM -- has doubled. As a leading enabler of IP
convergence - that is the combination of voice, video and data
over a single connection and a secure network -- Global Crossing
supports fully interoperable legacy and IP-based services,
offering customers the ability to transition to IP at their own
pace.

"Global Crossing has been a valuable strategic partner," said
Kent Brailovsky, director of the Computer Center for Instituto
Tecnologico Autonomo de Mexico or ITAM.  "They have provided the
flexibility and high-quality solutions that meet the exacting
performance and reliability we require.  As a result, our
productivity has increased, and our global connectivity has been
simplified, enabling us to collaborate with international
research and academic institutions. We look forward to Global
Crossing's continued support as we strengthen our position as
one of the leading universities in Mexico."

"In only six years, Global Crossing has established a
significant foothold among key enterprise and carrier customers
in Mexico, including nine of the 10 major carriers in the
country," added Adrian Gonzalez, managing director of Global
Crossing in Mexico.  "The demand we've seen for Global
Crossing's IP solutions among leading companies in Mexico has
been exceptional, and our global IP platform enables us to
continue to respond to its ever-accelerating demand.  We will
continue to serve our customers with the best solutions,
services and networking in the marketplace."

Global Crossing's Mexican operations are headquartered in Mexico
City, with a terrestrial network connecting Mexico City,
Monterrey, Guadalajara and Mazatlan.  Through its subsea system,
Global Crossing connects facilities in Tijuana and the rest of
its global network, delivering services to 600 cities in 60
countries on six continents. The Federal Telecommunications
Commission or Cofetel granted Global Crossing its
telecommunications license in October 2000, allowing the company
to connect Mexico with the major cities of the world.  In Latin
America and the Caribbean, the company's presence extends to 12
of the region's major cities, seamlessly connecting South
America, Mexico, Central America and the Caribbean to the rest
of its global network.

With its regional network officially completed in 2001, Global
Crossing now serves virtually all of Latin America's major
carriers, as well as many prestigious Latin American companies,
including Odebrecht, Brazil's largest multinational construction
company; Arcor, the world's largest confectionary; Mexicana de
Aviacion and Banco Santander.  Global Crossing continues to make
important investments in its IP network to meet the increasing
demand of customers around the world, including new landing
point in Costa Rica and a recent upgrade of the Mid-Atlantic
Crossing (MAC) to add wavelengths on this undersea link
connecting the company's North and South America networks.

                      About Global Crossing

Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
-- http://www.globalcrossing.com/-- provides telecommunication
services over the world's first integrated global IP-based
network, which reaches 27 countries and more than 200 major
cities around the globe including Hong Kong.  Global Crossing
serves many of the world's largest corporations, providing a
full range of managed data and voice products and services.  The
company filed for chapter 11 protection on Jan. 28, 2002 (Bankr.
S.D.N.Y. Case No. 02-40188).  When the Debtors filed for
protection from their creditors, they listed US$25,511,000,000
in total assets and US$15,467,000,000 in total debts.  Global
Crossing emerged from chapter 11 on Dec. 9, 2003.

As of Dec. 31, 2005, Global Crossing's balance sheet reflected a
US$173 million equity deficit compared to US$51 million of
positive equity at Dec. 31, 2004.


HEAPS LIMITED: Joint Liquidators to Present Wind-Up Report
----------------------------------------------------------
Joint and Several Liquidators Sie Ki and Au Yeung Tin Wah will
present to the members of Heaps Ltd accounts of the company's
wind-up and property disposal activities.

The presentation will be made at 2701, 27/F., Wing On House, 71
Des Voeux Road Central, Hong Kong on September 19, 2006, at
10:00 a.m.


HOWELL ENGINEERING: Wind-Up Bid Hearing Fixed on Sept. 27
---------------------------------------------------------
A wind-up petition filed against Howell Engineering Ltd will be
heard before the High Court of Hong Kong on September 27, 2006,
at 9:30 a.m.

Ho Kwok Hung filed the petition with the Court on July 26, 2006.

The Plaintiff's Solicitor can be reached at:

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


FOREMOST CITY: Liquidator to Present Wind-Up Report
---------------------------------------------------
Liquidator Francis Young will present on September 19, 2006, at
11:30 a.m. accounts of Foremost City Ltd's wind-up and the
manner its properties were disposed of.

The presentation will be made at the final members meeting to be
held at 20th Floor, Tung Wai Commercial Bldg., 109-111
Gloucester Road, Wanchai, Hong Kong.


ID INNOVATION: Members and Creditors to Meet on Sept. 5
-------------------------------------------------------
Members and creditors of iD Innovation Ltd will convene on
September 5, 2006, at 3:00 p.m. and 3:30 p.m. respectively.  The
meetings will be held at 32/F., One Pacific Place, 88 Queensway,
Hong Kong.

During the meeting, Liquidators Lai Kar Yan, Derek and Darach
Haughey will present their report on the company's wind-up and
property disposal exercises.


KWAN FONG: Members' Final Meeting Set on September 19
-----------------------------------------------------
Members of Kwan Fong Charitable Foundation Ltd will meet for
their final meeting at Room 2803A, 28/F Wu Chung House, 213
Queen's Road East, Wan Chai on September 19, 2006, at 10:00 a.m.

During the meeting, Liquidator Fred Lee will present a report
regarding the company's wind-up and the manner its properties
were disposed of.


MEDARTS MEDICAL: Auditor Raises Going Concern Doubt on Operation
----------------------------------------------------------------
Medarts Medical System Inc. submitted before the United States
Securities and Exchange Commission its 10-Q filing for the first
quarter period ending April 30, 2006.

The company's balance sheet as of April 30 showed US$0 current
assets compared with current liabilities at US$3,615.  Total
shareholders deficit as April 30 amounted to US$3, 615.

Gately & Associates, the company's auditors, expressed a going
concern doubt on the company's operation.   "At April 30, 2006,
the Company had negative working capital and a stockholder's
deficiency of US$3,715.  For the period August 19, 2004 to April
30, 2006, the Company incurred net losses of $3,715.  These
factors create uncertainty as to the Company's ability to
continue as a going concern," the auditor's report said.

The auditors added that the Company is making efforts to acquire
a business with assets and operations.  However, there is no
assurance that the Company will be successful in accomplishing
this objective.

                          *     *     *


Medarts Medical System, Inc. -- formerly, Unise Investment
Holding of China, Inc. -- was incorporated in the State of
Delaware on August 19, 2004 under the name Edmonds 3, Inc.  On
June 29, 2005, the sole officer, director, and stockholder of
the Company sold all 100,000 issued and outstanding shares of
the Company's Common Stock to Shaanxi Jialong Hi-Tech Industries
Inc., a corporation organized in China, for US$76,000 cash.
Also on June 29, 2005, the Company's name was changed from
Edmonds 3, Inc. to Along Mobile Technology Inc.

On June 29, 2005, the Company's intention was to merge with
Shaanxi Jialong High-tech Industries, Inc., a development stage
company planning to engage in the business of publishing
wireless entertainment applications.  Subsequently, the Company
decided to seek other business entities to combine with.  The
combination will likely take the form of a merger, stock for
stock exchange, or stock for assets exchange.

On June 28, 2006, the Company changed its name to Medarts
Medical System, Inc.  The Company has no products or services;
the Company is seeking a business to merge with or acquire.


ORIENT EXPRESS: Commences Wind-Up Proceedings
---------------------------------------------
Members of Orient Express Container Air (Hong Kong) Co Ltd
resolved on August 14, 2006, to voluntary wind-up the Company's
operations and appoint Chui Chi Hung as Liquidator.

The Liquidator can be reached at:

         Chui Chi Hung
         13/F., Chun Hoi Commercial Bldg
         688-690 Shanghai Street
         Mongkok, Kowloon
         Hong Kong


OTTO CONTAINER: Members Opt for Voluntary Wind-Up
-------------------------------------------------
Members of Otto Container Line Ltd resolved on August 4, 2006,
to wind-up the Company's operation.

In this regard, Natalia KM Seng and Susan YH Lo were appointed
as joint and several Liquidators.

The Joint and Several Liquidators can be reached at:

         Susan Y H Lo
         Level 28, Three Pacific Place
         1 Queen's Road East, Wanchai
         Hong Kong


SKY GREAT: Sole Member to Receive Wind-Up Report
------------------------------------------------
The sole member of Sky Great Shipping Ltd will be receiving
Liquidator Lam Ying Sui's report regarding the Company's wind-up
and property disposal activities.

The report will be presented on September 18, 2006, 3:00 p.m. at
Room 1005, Allied Kajima Bldg, 138 Gloucester Road, Wanchai.
Hong Kong.


SKYLINE VIEW: Creditors' Proofs of Claim Due on September 20
------------------------------------------------------------
Creditors of Skyline View Ltd are required to submit their
proofs of claim to Liquidator Lin Lai Har, Wendy by
September 20, 2006.

Failure to prove debts will exclude a creditor from sharing in
any distribution the company will make.

According to the Troubled Company Reporter - Asia Pacific,
members resolved to wind up the company's operations on August
8, 2006.

The Liquidator can be reached at:

         Lin Lai Har, Wendy
         1301 Elton Tower
         8 Hysan Ave., Causeway Bay
         Hong Kong


TRELOCK HONG KONG: Member Resolve to Wind Up Operations
-------------------------------------------------------
The sole member of Trelock Hong Kong Ltd resolved on August 11,
2006, to wind-up the Company's operations.

Subsequently, Chan Bing Chung, Jones, was appointed as
Liquidator to oversee the company's liquidation activities.


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

FEDDERS CORP: Equity Deficit Widens to US$17.04M in Six Months
--------------------------------------------------------------
Fedders Corp. incurred a US$10.04-million net loss on
US$95.57 million of net sales for the second quarter ending
June 30, 2006, the Company disclosed on a Form 10-Q filing
delivered to the Securities and Exchange Commission on Aug. 9,
2006.

As of June 30, 2006, the Company's balance sheet showed
US$330.07 million in assets and US$347.11 million in
liabilities.  The Company's equity deficit widened to
US$17.04 million at June 30, 2006, from a US$62,000 deficit at
Dec. 31, 2005.

                 Liquidity and Capital Resources

The Company's working capital requirements are seasonal, with
cash balances peaking in the third quarter of each calendar year
and the greatest utilization of its lines of credit occurring
early in the calendar year.  Cash on hand amounted to US$11.8
million at June 30, 2006 compared with US$17.8 million a year
earlier.  Short-term borrowings under the Company's working
capital credit facilities amounted to US$45.8 million at June
30, 2006, compared with US$90.5 million a year earlier.  Current
portion of long-term debt amounted to US$2.3 million at June 30,
2006, compared with US$1.5 million a year earlier.

Net cash provided by operating activities for the six-month
period ended June 30, 2006, amounted to US$9.2 million, compared
with cash used of US$17.7 million in the prior-year period.
Cash was provided by operations primarily as a result of
increased accounts receivable as the Company was in a more
active selling season, partly offset by increased accounts
payable.  Accounts receivable increased US$15 million versus an
increase of US$58.0 million in the prior year.

Net inventories at June 30, 2006, were US$61.7 million compared
with US$74.3 million at Dec. 31, 2005, and US$103.7 million at
June 30, 2005.  The reduced inventory levels reflect the
Company's decision to discontinue room air conditioner and
dehumidifier sales to The Home Depot United States retail stores
and management's focus on reducing inventory. Accounts payable
at June 30, 2006, were US$65.7 million compared with US$44.0
million at Dec. 31, 2005, and $55.5 million at June 30, 2005,
and reflect increased production compared with prior year.

Net cash used in investing activities in the six-month period
ended June 30, 2006, of US$0.7 million compared with cash used
of US$12.6 million in the prior-year period.  Investing
activities included US$1.6 million for additions to property,
plant, and equipment, compared with US$3.3 million for the
prior-year period. This was partly offset by US$0.9 million
proceeds from asset sales in the first quarter.

Net cash used by financing activities for the six-month period
ended June 30, 2006, amounted to US$11.5 million, primarily for
repaying debt.  Net cash provided by financing activities in the
prior-year period was US$26.3 million, comprised primarily of
US$31.2 million in short-term borrowings that were used to
support operating needs, and US$4.0 million of cash dividends.

The Company did not declare quarterly dividends in the three
months ended June 30, 2006.  The First Supplemental Indenture
limits, among other things, the Company from making any dividend
payments without sufficient consolidated net income beginning
January 1, 2006.  The Company declared quarterly dividends of
US$0.03 on each share of outstanding common and Class B stock
and US$0.5375 on each share of outstanding preferred stock in
the three months ended June 30, 2005 and US$0.06 on each share
of outstanding common and Class B stock and US$1.076 on each
share of outstanding preferred stock in the six months ended
June 30, 2005.

A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?fff

                         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.


SILICON GRAPHICS: Judge Lifland Approves Disclosure Statement
-------------------------------------------------------------
The Disclosure Statement of Silicon Graphics has been approved
by the United States Bankruptcy Court for the Southern District
of New York, on July 27, 2006, thereby enabling the Company to
continue on its path toward emerging from chapter 11 by the end
of September.

At a hearing in New York, the Honorable Burton R. Lifland ruled
that SGI's Disclosure Statement contained adequate information
for the purpose of soliciting creditor approval of SGI's Plan of
Reorganization.  The Plan is supported by the Official
Creditors' Committee, the Ad Hoc Committee of Senior Secured
Noteholders and the largest holder of Silicon Graphics'
Unsecured Debentures.

SGI commenced mailing of the Plan and Disclosure Statement on
Aug. 3, 2006.  A hearing for the court to consider confirmation
of the Plan has been scheduled for Sept. 19, 2006.  Certain
other motions related to employees and financing were also
approved.

A full-text copy of the Approved Disclosure Statement is
available for free at http://ResearchArchives.com/t/s?e81

A full-text copy of the First Amended Plan is available for free
at http://ResearchArchives.com/t/s?e82

                     About Silicon Graphics

Headquartered in Mountain View, California, Silicon Graphics,
Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high-
performance computing.  SGI helps customers solve their
computing challenges, whether it's sharing images to aid in
brain surgery, finding oil more efficiently, studying global
climate, providing technologies for homeland security and
defense, enabling the transition from analog to digital
broadcasting, or helping enterprises manage large data.

Silicon Graphics has operations in India, Australia, China,
Japan, New Zealand and sales offices in Hong Kong, Korea,
Malaysia, Indonesia, the Philippines, Singapore, Thailand, and
Vietnam.

The Debtor and 13 of its affiliates filed for Chapter 11
protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990).

Debtor affiliates filing separate chapter 11 petitions:

   * Silicon Graphics Federal, Inc.
   * Cray Research, LLC
   * Silicon Graphics Real Estate, Inc.
   * Silicon Graphics World Trade Corporation
   * Silicon Studio, Inc.
   * Cray Research America Latina Ltd.
   * Cray Research Eastern Europe Ltd.
   * Cray Research India Ltd.
   * Cray Research International, Inc.
   * Cray Financial Corporation
   * Cray Asia/Pacific, Inc.
   * ParaGraph International, Inc.
   * WTI-Development, Inc.

Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of US$369,416,815 and total
debts of US$664,268,602.


SILICON GRAPHICS: Court OKs Solicitation and Tabulation Protocol
----------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York approved Silicon Graphics, Inc., and its debtor-
affiliates' proposed solicitation and tabulation procedures, and
established:

    * Aug. 3, 2006, as the Solicitation Date and the
      Subscription Commencement Date;

    * Aug. 31, 2006, as the Confirmation Objections Deadline;

    * Sept. 6, 2006, as the Voting Deadline; and

    * Sept. 19, 2006, as the Confirmation Hearing Date.

The Official Committee of Unsecured Creditors and the Ad Hoc
Committee had written letters supporting the approval of the
Disclosure Statement.  The Support Letters will be included as
part of the Solicitation Packages distributed to the holders of
claims in classes entitled to vote to accept or reject the Plan.

                     About Silicon Graphics

Headquartered in Mountain View, California, Silicon Graphics,
Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high-
performance computing.  SGI helps customers solve their
computing challenges, whether it's sharing images to aid in
brain surgery, finding oil more efficiently, studying global
climate, providing technologies for homeland security and
defense, enabling the transition from analog to digital
broadcasting, or helping enterprises manage large data.

Silicon Graphics has operations in India, Australia, China,
Japan, New Zealand and sales offices in Hong Kong, Korea,
Malaysia, Indonesia, the Philippines, Singapore, Thailand, and
Vietnam.

The Debtor and 13 of its affiliates filed for Chapter 11
protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990).

Debtor affiliates filing separate chapter 11 petitions:

   * Silicon Graphics Federal, Inc.
   * Cray Research, LLC
   * Silicon Graphics Real Estate, Inc.
   * Silicon Graphics World Trade Corporation
   * Silicon Studio, Inc.
   * Cray Research America Latina Ltd.
   * Cray Research Eastern Europe Ltd.
   * Cray Research India Ltd.
   * Cray Research International, Inc.
   * Cray Financial Corporation
   * Cray Asia/Pacific, Inc.
   * ParaGraph International, Inc.
   * WTI-Development, Inc.

Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of US$369,416,815 and total
debts of US$664,268,602.


SILICON GRAPHICS: Gets Final Nod to Use Cash Management System
--------------------------------------------------------------
The Hon. Allan L. Gropper of the United States Bankruptcy Court
for the Southern District of New York authorizes Silicon
Graphics, Inc., and its debtor-affiliates to continue utilizing
their current integrated cash management system in a manner
consistent with their prepetition practices on a final basis.

As reported in the Troubled Company Reporter on May 17, 2006,
the Office of the United States Trustee has established certain
operating guidelines for debtors-in-possession to supervise the
administration of chapter 11 cases, including changes to the
debtor's cash management system.

A flow chart summarizing the Debtors' Cash Management System is
available for free at http://ResearchArchives.com/t/s?e97

Gary T. Holtzer, Esq., at Weil, Gotshal & Manges LLP, in New
York, informs the Court that the Debtors' Cash Management System
constitutes an ordinary course and essential business practice
providing significant benefits to the Debtors, including, the
ability to:

    -- control corporate funds;

    -- ensure the maximum availability of funds when and where
       necessary; and

    -- reduce administrative expenses by facilitating the
       movement of funds and the development of more timely and
       accurate account balance information.

                     About Silicon Graphics

Headquartered in Mountain View, California, Silicon Graphics,
Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high-
performance computing.  SGI helps customers solve their
computing challenges, whether it's sharing images to aid in
brain surgery, finding oil more efficiently, studying global
climate, providing technologies for homeland security and
defense, enabling the transition from analog to digital
broadcasting, or helping enterprises manage large data.

Silicon Graphics has operations in India, Australia, China,
Japan, New Zealand and sales offices in Hong Kong, Korea,
Malaysia, Indonesia, the Philippines, Singapore, Thailand, and
Vietnam.

The Debtor and 13 of its affiliates filed for Chapter 11
protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990).

Debtor affiliates filing separate chapter 11 petitions:

   * Silicon Graphics Federal, Inc.
   * Cray Research, LLC
   * Silicon Graphics Real Estate, Inc.
   * Silicon Graphics World Trade Corporation
   * Silicon Studio, Inc.
   * Cray Research America Latina Ltd.
   * Cray Research Eastern Europe Ltd.
   * Cray Research India Ltd.
   * Cray Research International, Inc.
   * Cray Financial Corporation
   * Cray Asia/Pacific, Inc.
   * ParaGraph International, Inc.
   * WTI-Development, Inc.

Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of US$369,416,815 and total
debts of US$664,268,602.


SILICON GRAPHICS: Modified Employee Incentive Plan Approved
-----------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York approves Silicon Graphics, Inc., and its debtor-
affiliates' Employee Incentive Plan, as modified, and authorizes
them to pay their obligations under their Other Bonus Programs.

The Debtors have modified their Employee Incentive Plan.

Specifically, the number of eligible employees in Group 1 is
increased from 23 to 27.  Accordingly, the pool of funds
available is increased to US$1,362,909.  Each employee will
receive a bonus of 29% of their annual base salary.

The number of eligible engineers in Group 3 is increased from
seven to nine.  Group 3's funds is decreased to US$303,225.
Thus, each engineer will receive a bonus of 25% of their annual
salary.

Gary T. Holtzer, Esq., at Weil, Gotshal & Manges LLP, in New
York, relates that as a result of the modifications, US$25,000
was made available to increase the discretionary bonus pool from
which individual bonus payments will be awarded.  The Debtors
have and will continue to identify non-insider employees
eligible to receive bonus payments from the Discretionary Pool.

Mr. Holtzer says that if an employee selected to receive a bonus
payment under the EIP resigns or is terminated for cause prior
to payment of all or part of their bonus, the unpaid portions
will be forfeited and returned to the Discretionary Pool.

                Clarifications to Other Bonus Programs

A. Referral Program: After the Debtors filed for bankruptcy,
   they inadvertently paid four Referral Bonuses totaling
   US$8,000 that were earned prepetition.  The Debtors seek
   Retroactive approval of the payments.

B. Lead Program: As of the Petition Date, approximately
   US$32,000 in prepetition bonuses were owed to 100 employees
   In connection with the program.  The Debtors seek the Court's
   authority to pay all outstanding amounts under the program
   and to continue it in the ordinary course of business.

C. Special Incentive Program: As of the Petition Date, US$4,500
   In prepetition bonuses were owed to eight employees under the
   program which the Debtors inadvertently paid postpetition.
   The Debtors seek retroactive approval of the prepetition
   Bonus payments under the program and authority to continue
   The program in the ordinary course of business.

D. Discretionary Bonus Program: The actual and correct amount of
   the bonus payment to a manager in the Debtors' engineering
   department is US$15,000.

E. Retention Bonuses: The Debtors seek the Court's authority to
   pay five retention bonuses totaling US$30,400.

F. Relocation Program: The Debtors learned that there are two
   employees awaiting reimbursement for their relocation
   expenses.  The Debtors seek the Court's authority to make
   payments and to continue to pay newly hired employees for
   their relocation expenses on a case-by-case basis.

G. Sign-On Bonus Program: The Debtors tell the Court that two
   employee candidates did not accept the offers of employment;
   thus, only three employees are awaiting payment of sign-on
   bonuses.

H. Benchmarking Bonuses: The Debtors disclosed that they
   committed to pay a team of six employees a group bonus
   totaling US$12,000, or US$2,000 per employee.

                     About Silicon Graphics

Headquartered in Mountain View, California, Silicon Graphics,
Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high-
performance computing.  SGI helps customers solve their
computing challenges, whether it's sharing images to aid in
brain surgery, finding oil more efficiently, studying global
climate, providing technologies for homeland security and
defense, enabling the transition from analog to digital
broadcasting, or helping enterprises manage large data.

Silicon Graphics has operations in India, Australia, China,
Japan, New Zealand and sales offices in Hong Kong, Korea,
Malaysia, Indonesia, the Philippines, Singapore, Thailand, and
Vietnam.

The Debtor and 13 of its affiliates filed for Chapter 11
protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990).

Debtor affiliates filing separate chapter 11 petitions:

   * Silicon Graphics Federal, Inc.
   * Cray Research, LLC
   * Silicon Graphics Real Estate, Inc.
   * Silicon Graphics World Trade Corporation
   * Silicon Studio, Inc.
   * Cray Research America Latina Ltd.
   * Cray Research Eastern Europe Ltd.
   * Cray Research India Ltd.
   * Cray Research International, Inc.
   * Cray Financial Corporation
   * Cray Asia/Pacific, Inc.
   * ParaGraph International, Inc.
   * WTI-Development, Inc.

Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of US$369,416,815 and total
debts of US$664,268,602.


SILICON GRAPHICS: Hires Bear Stearns as Financial Advisor
---------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York authorized Silicon Graphics, Inc., and its debtor-
affiliates to employ Bear Stearns as their financial advisor, on
a final basis.

Bear Stearns will receive a cash fee equal to 1.00% of the
aggregate consideration involved in a sale, only to the extent
that aggregate Sale Fees exceed US$1,000,000.

As reported in the Troubled Company Reporter on May 19, 2006,
Bear Stearns will:

    (a) review and analyze the business, financial condition and
        prospects of the Debtors;

    (b) review and consider the potential combination benefits
        and other implications of effecting a sale with any
        acquiror;

    (c) review and consider the Debtors' available sale,
        restructuring and financing alternatives;

    (d) develop a valuation of the Debtors and any securities
        that the Debtors offer or propose to offer in connection
        with a transaction;

    (e) review and consider from a financial point of view
        proposed Transaction structures and terms;

    (f) develop and implement a strategy to effectuate a
        Transaction or a Financing, including in the case of a
        Sale:

           -- preparation and distribution of marketing
              materials;

           -- screening of prospective Acquirors;

           -- coordination of data room and Acquiror due
              diligence; and

           -- solicitation and review of proposals from
              prospective Acquirors;

    (g) develop presentations made to any official committee
        appointed in the bankruptcy cases, and other interested
        parties regarding the Transaction;

    (h) negotiate the Transaction with the Debtors' creditors,
        any Acquiror or any other interested parties; and

    (i) meet with the Debtors' Board of Directors to discuss any
        Transaction and Financing alternatives and their
        Financial implications.

The Debtors agreed to pay Bear Stearns:

    (1) A US$100,000 monthly cash fee, payable on June 1, 2006,
        and on the first business day of each calendar month
        during the period of Bear Stearns's engagement;

    (2) If the Debtors consummate a Restructuring, a cash fee
        equal to US$1,500,000, which Restructuring Fee will be
        reduced by 50% of any Sale Fee, or by 100% of any Sale
        Fee associated with a Sale of substantially all of the
        Assets or equity securities of the Debtors;

    (3) If the Company consummates a Sale or enters into an
        agreement pursuant to which a Sale is subsequently
        consummated, a cash fee equal to 1% of the aggregate
        consideration involved in the Sale;

    (4) Upon mutual consent and under terms to be mutually
        agreed upon, Bear Stearns will assist the Debtors in
        consummating a Financing.

                     About Silicon Graphics

Headquartered in Mountain View, California, Silicon Graphics,
Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high-
performance computing.  SGI helps customers solve their
computing challenges, whether it's sharing images to aid in
brain surgery, finding oil more efficiently, studying global
climate, providing technologies for homeland security and
defense, enabling the transition from analog to digital
broadcasting, or helping enterprises manage large data.

Silicon Graphics has operations in India, Australia, China,
Japan, New Zealand and sales offices in Hong Kong, Korea,
Malaysia, Indonesia, the Philippines, Singapore, Thailand, and
Vietnam.

The Debtor and 13 of its affiliates filed for Chapter 11
protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990).

Debtor affiliates filing separate chapter 11 petitions:

   * Silicon Graphics Federal, Inc.
   * Cray Research, LLC
   * Silicon Graphics Real Estate, Inc.
   * Silicon Graphics World Trade Corporation
   * Silicon Studio, Inc.
   * Cray Research America Latina Ltd.
   * Cray Research Eastern Europe Ltd.
   * Cray Research India Ltd.
   * Cray Research International, Inc.
   * Cray Financial Corporation
   * Cray Asia/Pacific, Inc.
   * ParaGraph International, Inc.
   * WTI-Development, Inc.

Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of US$369,416,815 and total
debts of US$664,268,602.


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

ARMSTRONG WORLD: Parent Loses Ownership Under Chapter 11 Plan
-------------------------------------------------------------
Armstrong Holdings, Inc., the parent company of Armstrong World
Industries, Inc., provided additional information regarding the
anticipated effect on Armstrong Holdings of the expected
consummation of the Chapter 11 reorganization of AWI.

As reported in the Troubled Company Reporter on Aug. 16, 2006,
AWI's "Fourth Amended Plan of Reorganization, as Modified" was
confirmed by the United States District Court and AWI currently
expects to emerge from Chapter 11 in the fourth quarter of 2006.

Pursuant to AWI's Chapter 11 Plan, Armstrong Holdings' ownership
of AWI will end.  All current AWI stock will be cancelled and no
payment or other distribution will be made to Armstrong Holdings
on account of its ownership interest.  AWI will distribute to
certain of its creditors under the Chapter 11 Plan cash and new
common stock of reorganized AWI, and in certain circumstances
may also distribute notes of reorganized AWI.  These creditors
include a trust that will be established to satisfy current and
future asbestos personal injury claimants, and allowed unsecured
creditors.

Although AWI's Chapter 11 Plan has been confirmed, Armstrong
Holdings has filed a claim against AWI in an unspecified amount
in respect of intercompany accounts and, to the extent such
claims are allowed by the Bankruptcy Court, Armstrong Holdings
will participate on a pro rata basis in the distributions that
are to be made under the Chapter 11 Plan to unsecured creditors.
The cash and stock in AWI that Armstrong Holdings may receive as
a result of such claims is not expected to have a value in
excess of a few million dollars and there is no assurance that
any claim will be allowed.

Upon AWI's cancellation of Armstrong Holdings' ownership of AWI
pursuant to the Chapter 11 Plan, Armstrong Holdings also will
have a substantial ordinary income loss.  This loss will be in
addition to the substantial net operating loss, which AWI will
incur in connection with consummation of its Chapter 11 Plan.

As a result, the Armstrong consolidated group may be entitled to
receive a tax refund based upon a carry back of a portion of the
group's tax loss to prior years, in an amount estimated to be
approximately US$37 million.  It is not possible for Armstrong
Holdings to estimate at this time the amount, if any, of such
tax refund to which it may be entitled.  Armstrong Holdings may
also be entitled to additional benefits from carrying forward
the balance of its tax loss.

Following AWI's emergence from Chapter 11, Armstrong Holdings
and AWI will cease reporting together as members of a
consolidated group for U.S. federal income tax reporting
purposes.

A final federal income tax return for the companies on a
consolidated basis is expected to be filed by September 2007.
After considering the result of its intercompany account claims
and the tax consequences to Armstrong Holdings of AWI's
emergence from Chapter 11, Armstrong Holdings is expected to
decide whether or not to dissolve.

A full-text copy of the Fourth Amended Plan of Reorganization is
available for free at http://ResearchArchives.com/t/s?fb4

                      About Armstrong World

Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. -- http://www.armstrong.com/-- the major operating
subsidiary of Armstrong Holdings, Inc., designs, manufactures
and sells interior floor coverings and ceiling systems, around
the world, including these Asia Pacific countries: China, Hong
Kong, Japan, Philippines, Singapore and Indonesia.

The Company and its debtor-affiliates filed for chapter 11
protection on December 6, 2000 (Bankr. Del. Case No. 00-04469).
Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and
Russell C. Silberglied, Esq., at Richards, Layton & Finger,
P.A., represent the Debtors in their restructuring efforts.  The
Debtors tapped the Feinberg Group for analysis, evaluation, and
treatment of personal injury asbestos claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured
Creditors. The Creditors Committee tapped Houlihan Lokey for
financial and investment advice.  The Official Committee of
Asbestos Personal Injury Claimant hired Ashby & Geddes as
counsel.

When the Debtors filed for protection from their creditors, they
listed US$4,032,200,000 in total assets and US$3,296,900,000 in
liabilities.


COMVERSE TECH: Subsidiary to Acquire Netonomy(R) for US$19M
-----------------------------------------------------------
Comverse, a subsidiary of Comverse Technology, Inc., has signed
a definitive agreement to acquire privately held Netonomy for
approximately US$19 million in cash.

"This acquisition is in line with our strategic efforts to
continually enhance Comverse's Total Communication Product
Portfolio's ability to generate revenues, strengthen customer
loyalty and improve operational efficiency for communication
service providers," Raz Alon, interim CEO of Comverse
Technology, said.

"Joining Comverse was a natural move," said John Ball, CEO of
Netonomy.  "Service providers need to accelerate the adoption of
direct self-service quicker than ever to lower their cost of
acquisition and service, regardless of market segment.  Web
access to select and change plans and features also improves
customer satisfaction and loyalty, while reducing operational
costs."

                     About Comverse Technology

Comverse Technology, Inc. (NASDAQ: CMVT) --
http://www.comverse.com/-- provides software and systems that
enable network-based multimedia enhanced communication and
billing services.  Over 450 communication and content service
providers in more than 120 countries use Comverse products to
generate  revenues, strengthen customer loyalty and improve
operational efficiency.

Comverse has offices all over the world, including Indonesia,
Malaysia and the Philippines.

                           *     *     *

As reported in the Troubled Company Reporter on May 4, 2006,
Standard & Poor's Ratings Services held its ratings on Comverse
Technology Inc. on CreditWatch with negative implications, where
they were placed on March 15, 2006, on the disclosure that the
board of directors at Comverse had created a special committee
to review matters relating to the company's stock option grants
and the likely need to restate prior-period financial results.

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's placed its corporate credit and senior
unsecured debt ratings on Comverse Technology on CreditWatch
with negative implications.  The company has S&P's 'BB-'
corporate credit and senior unsecured debt ratings.


LAPINDO BRANTAS: IDR33.27T Toxic Mud Bill May Cause Bankruptcy
--------------------------------------------------------------
Lapindo Brantas may go bankrupt if it is held responsible for
cleaning up toxic mud its drilling operations brought forth in
May 2006, Antara News reports.

The mud has been spurting from under the ground since late May,
and has inundated at least 160 hectares (395 acres) of land,
including four villages, ricefields and sugar cane plantations.
In some areas the sludge is six meters (20 feet) deep.

Officials from BP Migas, Indonesia's upstream oil and gas
regulating body, asked the environment ministry for permission
to channel the mudflow in East Java province into the ocean.
However, Environmental Minister Rachmat Witoelar has refused the
proposal.

Lapindo, the company operating the well, is linked to a business
group owned by Welfare Minister Aburizal Bakrie's family.  It
has agreed to compensate the more than 7,600 people displaced by
the sludge.

Elfian Effendi, executive director of environmental group
Greenomics Indonesia, said that Lapindo could go bankrupt if it
is held responsible for the losses, the Jakarta Post reported
earlier this week.

"According to our economic calculations, Lapindo should prepare
IDR33.27 trillion in compensations funds," Mr. Effendi was
quoted as saying.  That amount took into account costs such as
restoring the affected area, repairing ecological damage and
compensating businesses for losses.

Police have named three company executives as suspects for the
incident, which they have classified as a crime.

                          *     *     *

Lapindo Brantas, Inc. -- http://www.lapindo-brantas.com/-- is a
subsidairy of PT Energi Mega Persada Tbk, where PT Medco Energi
Internasional Tbk has 30% shares and Australia's Santos has 20%
shares in the Brantas production sharing contract.


NORTEL NETWORKS: Sets Aside US$28M Reserve to Clean up Sites
------------------------------------------------------------
Nortel Networks Ltd. has reserved US$28 million, as of March 31,
2006, for environmental matters.

The company has remedial activities under way at 14 sites, which
are either currently or previously owned or occupied facilities.

The company is also listed as a potentially responsible party
under the United States Comprehensive Environmental Response,
Compensation and Liability Act at four Superfund sites in the
United States, at two of which, the company is considered a de
minimis potentially responsible party.

                     About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries including Indonesia, Australia, China, Hong Kong,
India, Philippines, Singapore, Taiwan and Thailand.

                          *     *     *

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

Additionally, Moody's Investors Service affirmed the B3
corporate family rating of Nortel; assigned a B3 rating to the
proposed USUS$2billion senior note issue; downgraded the
USUS$200 million 6.875% Senior Notes due 2023 and revised the
outlook to stable from negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
USUS$2 billion notes.  The outlook is stable.


NORTEL NETWORKS: Forms Strategic Alliance with Microsoft Corp.
--------------------------------------------------------------
The convergence of the communications and IT industries took a
significant step forward as Microsoft Corp. and Nortel Networks
Corp. reported a strategic alliance based on a shared vision for
unified communications.  By engaging the companies at the
technology, marketing and business levels, the alliance will
allow both companies to drive new growth opportunities and has
the potential to ultimately transform businesses communications,
reducing costs and complexity and improving productivity for
customers.

By combining Nortel's network quality and reliability with
Microsoft(R) software's ease of use, the alliance will
accelerate the availability of unified communications -- an
industry concept that uses advanced technologies to break down
today's device- and network-centric silos of communication (such
as e-mail, instant messaging, telephony and multimedia
conferencing) and makes it easy and efficient for workers to
reach colleagues, partners and customers with the devices and
applications they use most.

Taking a decisive step further, Nortel and Microsoft will
transition traditional business phone systems into software,
with a Microsoft unified communications software platform and
Nortel software products to provide further advanced telephony
functionality.  This software-centric approach will provide the
easiest transition path for businesses, helping enable them to
reduce the total cost of ownership and better protect current
and future investments.  It will also more quickly enable the
creation of new, innovative applications.

"Nortel and Microsoft have each led fundamental transformations
in their own market -- Nortel's digital innovation and
Microsoft's software on every desktop," said Mike Zafirovski,
president and CEO of Nortel. "By combining our unique strengths,
Microsoft and Nortel will accelerate the delivery of unified
communications -- delivering to our customers a higher-quality
user experience, with greater reliability and lower total cost
of ownership.  That's where we can make a real difference."

"We are investing together because the communications industry
is at an inflection point," said Steve Ballmer, CEO of
Microsoft.  "We will have deep collaboration in product
development with Nortel, allowing us to rapidly deliver high-
quality, highly reliable solutions that will support mission-
critical communications.  The opportunity for our customers is
fantastic.  We will enable them to realize tremendous economic
and business benefits from unified communications."

"This is a gutsy play for Nortel -- accelerating the move of our
voice technology into software and working with the world's
software leader as part of our broader business strategy to
transform the company into a software and services leader," Mr.
Zafirovski said.  "From this transaction, we believe we can
capture well beyond US$1 billion in new revenue, ramping up with
increased momentum through 2009 via professional services, voice
products and applications, as well as data pull-through in the
enterprise."

"Unified communications will drive the next major advance in
individual, team and organizational productivity in today's
24x7, always-connected and increasingly mobile work
environment," said Jeff Raikes, president of the Business
Division at Microsoft.  "Our software-based approach puts people
at the center of communications through a single identity across
e-mail, voice mail, voice over Internet protocol call
processing, instant messaging and video, and intuitively embeds
communications capabilities into people's everyday work
processes, including the Microsoft Office system and third-party
software applications."

                 Components of the Agreement

   1) Strategic alliance

      * The companies will enter into a four-year alliance
        agreement, with provisions for its extension.

      * Nortel will be Microsoft's strategic partner for
        advanced unified communications solutions and systems
        integration.

      * The two companies will form the Innovative
        Communications Alliance --
        http://www.innovativecommunicationsalliance.com/
        -- as a go-to-market vehicle.

      * Microsoft and Nortel will deploy the other's
        technologies in their enterprise networks.

   2) Solutions and systems integration

      * Nortel becomes a strategic systems integration partner
        for the advanced unified communications solution.

      * Nortel believes it can capture substantial new revenue
        through service offerings such as convergence planning,
        integration, optimization, monitoring and managed
        services.

   3) Joint product development

      * Nortel and Microsoft will form joint teams to
        collaborate on product development that spans
        enterprise, mobile and wireline carrier solutions.

      * The two companies will cross-license intellectual
        property.

      * Nortel and Microsoft will engage in early-stage
        integration and testing.

      * Nortel will deliver solutions that complement
        Microsoft's unified communications platform, including
        enterprise contact center applications, mission-critical
        telephony functions, advanced mobility capabilities and
        data networking infrastructure.

   4) Go-to-market initiatives

      * Microsoft and Nortel will jointly sell the advanced
        unified communications solution and integration
        services.  The plan is to develop a training and
        incentive program for the companies' sales teams.

      * Both companies will invest substantial resources in
        marketing, business development and delivery.

      * Microsoft and Nortel will build a joint channel
        ecosystem using both companies' systems integrator,
        reseller, and service provider relationships.

      * The two companies will develop a series of compelling
        solutions for a range of customers, including small and
        medium-sized business, large corporations and service
        providers.

                       About Microsoft

Headquartered in Redmond, Washington, Microsoft Corp. (Nasdaq:
MSFT) provides software, services and solutions that help people
and businesses realize their full potential.

                     About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries including Indonesia, Australia, China, Hong Kong,
India, Philippines, Singapore, Taiwan and Thailand.

                          *     *     *

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

Additionally, Moody's Investors Service affirmed the B3
corporate family rating of Nortel; assigned a B3 rating to the
proposed USUS$2billion senior note issue; downgraded the
USUS$200 million 6.875% Senior Notes due 2023 and revised the
outlook to stable from negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
USUS$2 billion notes.  The outlook is stable.


NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares
------------------------------------------------------------
The board of directors of Nortel Networks Limited declared a
dividend for the months of August and September on each of the
outstanding Cumulative Redeemable Class A Preferred Shares
Series 5 and the outstanding Non-cumulative Redeemable Class A
Preferred Shares Series 7.

The dividend amount for each series is calculated in accordance
with the terms and conditions applicable to each respective
series, as set out in the company's articles.  The annual
dividend rate for each series floats in relation to changes in
the average of the prime rate of Royal Bank of Canada and The
Toronto-Dominion Bank during the preceding month and is adjusted
upwards or downwards on a monthly basis by an adjustment factor
which is based on the weighted average daily trading price of
each of the series for the preceding month, respectively.  The
maximum monthly adjustment for changes in the weighted average
daily trading price of each of the series will be plus or minus
4.0% of Prime.  The annual floating dividend rate applicable for
a month will in no event be less than 50% of Prime or greater
than Prime.

The dividend on each series in respect of the month of August is
payable on Sept. 12, 2006, to shareholders of record of such
series at the close of business on Aug. 31, 2006.  The dividend
on each series in respect of the month of September is payable
on Oct. 12, 2006, to shareholders of record of such series at
the close of business on Sept. 29, 2006.

                     About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries including Indonesia, Australia, China, Hong Kong,
India, Philippines, Singapore, Taiwan and Thailand.

                          *     *     *

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

Additionally, Moody's Investors Service affirmed the B3
corporate family rating of Nortel; assigned a B3 rating to the
proposed USUS$2billion senior note issue; downgraded the
USUS$200 million 6.875% Senior Notes due 2023 and revised the
outlook to stable from negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
USUS$2 billion notes.  The outlook is stable.


PERUSAHAAN GAS: Gets ADB Support in Getting Loans
-------------------------------------------------
PT Perusahaan Gas Negara will get backing from the Asian
Development Bank, Easy Bourse reports.

The ADB has said that it will support loans to Perusahaan Gas
provided by other international financial institutions and
commercial bank.  ADB further said that it will provide
Indonesia a US$75 million loan to aid the construction of a
natural gas pipeline from South Sumatra province to West Java
province.

The planned 661-kilometer pipeline is one of two that state-
owned Perusahaan Gas Negara is building to alleviate a natural
gas shortage in West Java province, said the statement, without
elaborating on the timetable for its construction.

The ADB is part of a consortium led by BP PLC that signed an
agreement earlier in August 2006 with international lenders
including Japan Bank for International Cooperation, BNP Paribas
S.A. and Standard Chartered for 15-year loans totaling
US$2.61 billion for the Tangguh liquefied natural gas facility.

The ADB loans reflect the multilateral lender's mandate to
support Indonesia's economic growth through the development of
environmentally friendly energy projects.

                        About Gas Negara

Headquartered in Jakarta, Indonesia, PT Perusahaan Gas Negara
(Persero) Tbk -- http://www.pgn.co.id-- is a gas and energy
company that is comprised of two core businesses: distribution
and transmission. For distribution, PGN signs long-term supply
agreements with upstream operators, which give the company
scheduled and reliable gas volumes and fixed gas prices. The
above volumes are subsequently sold to commercial and industrial
customers under gas sales agreements.  Under these agreements,
sales volumes are take-or-pay and the gas pricing is fixed and
in US dollar. On the transmission business, PGN ships gas on
behalf of the upstream suppliers under a fixed US dollar tariff
with ship-or-pay volumes agreements.   The company is 59.4%
owned by the Government of Indonesia.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006 that Fitch Ratings Agency assigned these ratings
to PT Perusahaan Gas Negara Tbk on June 27, 2006:


POLYSINDO EKA: Posts Turnaround of IDR128B on FOREX Gains
---------------------------------------------------------
PT Polysindo Eka Perkasa Tbk posted a net income of
IDR127.98 billion for the first half of 2006, a turnaround from
a net loss of IDR832.78 billion a year ago, according to the
company's financials.

Net revenues fell slightly from IDR1.46 trillion for the half-
year period ended June 30, 2005, to IDR1.43 trillion for the
same period ended June 30, 2006.  The company reported a gross
loss of IDR201.52 billion after recording a cost of sales
amounting to IDR1.63 trillion for the first half of 2006.

The company, however, recognized a gain from foreign exchange of
IDR421.74 billion in the 2006 first half against the previous
corresponding period's loss of IDR576.36 billion, bringing the
total other income account to IDR421.74 billion.

The company, however, still maintains a IDR5.90-trillion equity
deficit, with total assets amounting to IDR6.02-billion as of
June 30, 2006.

The company's financials submitted to the Surubaya Stock
Exchange includes these financial highlights:

                                  For the half year ended
                             06/30/2006            06/30/2005
                             ----------            ----------
   Revenues        IDR1,431,684,872,708  IDR1,486,878,590,006
   Cost of Sales      1,633,205,789,850     1,639,397,447,456
   Gross Loss           201,520,917,142       152,518,857,450
   Operating Expenses   111,673,601,495       119,708,184,754
   Loss from Operations 313,194,518,637       272,227,042,204
   Other Income/(Exp.)  421,741,862,172      (576,360,655,538)
   Net Income           127,978,377,459      (832,776,734,423)

                                As of                 As of
                             06/30/2006            06/30/2005
                             ----------            ----------
   Current Assets  IDR1,181,879,272,497    IDR874,138,874,302
   Total Assets       6,017,597,126,949     6,238,730,634,964
   Current
     Liabilities     11,105,630,599,239    17,452,988,743,068
   Non-Current
     Liabilities        811,332,603,133       461,909,742,208
   Total Equity      (5,899,366,075,423)  (11,676,167,850,312)

                      About Polysindo Eka

Headquartered in Jakarta, Indonesia, PT Polysindo Eka Perkasa
Tbk -- http://www.polysindo.com/-- is a manufacturing company
engaged in the production of chemical products, including
manufacturing of synthetic fibers and other textile products.
The company markets the products to both domestic and
international markets such as Europe, North America, the Middle
East and others in Asia.  Its subsidiaries, which are engaged in
the production and trading of textile products and financial
services, include PT Texmaco Jaya Tbk, Polysindo International
Finance Company B.V. and Polysindo (Mauritius) Ltd.

                          *     *     *

A Troubled Company Reporter - Asia Pacific report on June 26,
2006, stated that stakeholders of Polysindo Eka approved on
June 21, 2006, the company's proposal to convert a
IDR14.07-trillion debt into shares.  Creditors would now own 60%
of Polysindo after the debt-to-equity swap, 30% of which would
go to creditor Damiano Investment BV, which had just injected
IDR375.11 billion into the Company to maintain operations.


TELKOMSEL INDONESIA: Fitch Upgrades Long-Term Rating to BB
----------------------------------------------------------
Fitch Ratings, on August 18, 2006, upgraded PT Telekomunikasi
Selular's long-term foreign currency issuer default rating to
'BB' from 'BB-'.  The outlook is stable.  At the same time,
Fitch has affirmed Telkomsel's Long-term local currency IDR of
'BBB-' with a stable outlook.

These rating actions follow the announcement by Fitch that it
has upgraded the country ceiling on the Republic of Indonesia to
'BB' from 'BB-'.  Telkomsel's foreign currency IDR rating
remains constrained by the sovereign country ceiling.  On the
other hand, Telkomsel's Long-term local currency IDR is not
constrained, with the IDR already exceeding the Republic of
Indonesia's local currency IDR of 'BB-' with a stable outlook.

                        About Telkomsel

PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/
-- is the leading operator of cellular telecommunications
services in Indonesia by market share.  By the end of June 2006,
Telkomsel had close to 29.3 million customers which based on
industry statistics represented a market share of more than 50%.

Telkomsel provides GSM cellular services in Indonesia, through
its own nationwide Dual band 900/1800 MHz GSM network, and
internationally, through 259 international roaming partner in
153 countries as of June 2006. The company provides its
subscribers with the choice between two prepaid cards-simPATI
and kartuAs of a pre-paid simPATI service, or the post-paid
kartuHALO service, as well as a variety of value-added services
and programs.


TELKOMSEL INDONESIA: Posts 41% Increase in First-Half Net Income
----------------------------------------------------------------
PT Telekomunikasi Selular Indonesia posted a net income of
IDR5.33 billion for the six months ending June 30, 2006, a 41%
increase from the figure reported a year ago, according to the
company's earnings release.

For the first half of 2006, Telkomsel was able to sustain the
high growth momentum.  The gross operating revenues grew by 38%
YoY from IDR11.53 trillion in the first half of 2005 to
IDR15.93 trillion in first half of this year, while net
operating revenues increased by 43% YoY from IDR9.32 trillion to
IDR13.31 trillion.  Telkomsel generated a net income of
IDR5.33 trillion in the 2006 first-half, an increase of 41%
compared to the first half 2005.

EBITDA for the 2006 first-half reached IDR9.62 trillion, a 43%
increase compared to IDR6.71 trillion in the 2005 first-half.
EBITDA margin over gross revenues increased from 58% to 60% and
EBITDA margin over net revenues stood at 72%.

The growth in operating revenues was driven by prepaid products,
which contributed 88% of total gross revenues growth.  Prepaid
revenues accounted for 72% of total gross revenues.

   * Gross Postpaid revenues grew 9% to IDR2.40 trillion due to
     the 10% postpaid customer base growth.

   * Gross Prepaid revenues rose by 51% to IDR11.39 trillion due
     to the 38% prepaid customer growth and increase in prepaid
     ARPU.

   * Gross International roaming revenues increased slightly to
     IDR0.40 trillion, due to increase in revenues from
     Telkomsel's roamers combined with decrease in revenues from
     foreign visitors.

   * Gross Interconnection revenues increase of 25% to
     IDR1.74 trillion was mainly from interconnection with
     Telkom, which contributed 72% of interconnection revenues.

   * Discounts increased 9% to IDR1.03 trillion.

   * Interconnection/International roaming/Data provider charges
     increased 26% to IDR1.59 trillion mainly because of
     increase in interconnect payment, which accounted for 75%
     of these charges.

Operating Expenses (including depreciation) increased 45% YoY
from IDR3.90 trillion in the first half of 2005 to
IDR5.67 trillion in the first half of 2006, mainly because of
increase in operation & maintenance and depreciation expenses.

   * Personnel expenses grew 67% YoY to IDR0.48 trillion, due to
     a salary adjustment in 4Q05, growth in number of employees
     (by 11%) and higher employee incentives due to strong sales
     and financial performance in 1H06.

   * Operation & maintenance expenses rose 48% to
     IDR1.90 trillion mainly resulting from the network
     infrastructure growth (overall network capacity increased
     by 36%) that affected transmission costs and repair &
     maintenance costs of network equipments.  Increase in
     gasoline and power prices since the second half last year
     also contributed to the growth in operation & maintenance
     expenses.

   * General & administration expenses increased 28% YoY to
     IDR0.36 trillion on all G&A expense components, mainly on
     rental and travel & transportation expenses.

   * Marketing & selling expenses grew 49% YoY to
     IDR0.30 trillion, which was mainly because of higher
     advertising and sales support costs.

   * Revenue dependent and other operating costs increased 18%
     to IDR0.67 trillion, mainly from concession and USO fees.

   * Depreciation expenses increased 52% to IDR1.97 trillion due
     to network infrastructures growth.

Other income/(expenses) increased from net expenses of
IDR6 billion to a net income of IDR9 billion, mainly because of
increase in foreign exchange gain due to the appreciation of the
rupiah combined with tax late payment/penalty.  In the second
quarter 2006 a tax expense of IDR83 billion was booked resulting
from a tax audit, however, Telkomsel will file an objection
letter.  Non-voice/data revenues (gross) in 1H06 increased 44%
to IDR3.74 trillion.  It contributed 24% of gross revenues or
26% of net revenues in 1H06.  Although, still dominated by SMS
revenues, the revenues from other mobile data services are
constantly growing, particularly on value added services such as
content download and ring-back tone, now contributing around 5%
of gross revenues.

                         Customer Base

Telkomsel added five million customers in 1H06.  At the end of
1H06, Telkomsel customer base reached 29.27 million, consisting
of 1.57 million postpaid customers representing 5% of total
customers and 27.70 million prepaid customers representing 95%
of total customers. It grew 7.72 million or 36% compared to
1H05, mainly driven by the prepaid products.

                    Average Revenue Per User

ARPU is derived from monthly recurring customer usage.  ARPU of
postpaid customers decreased 6% YoY from IDR294,000 to
IDR277,000.  However, ARPU of prepaid customers increased both
for simPATI and Kartu As, which was attributable to the
introduction of new tariff-schemes for on-net traffic and
network quality improvements.  ARPU for simPATI increased 4%
YoY, from IDR80K to IDR83K and Kartu As increased 19% YoY from
IDR42K to IDR50K.  As a result, blended ARPU only slightly
declined (2%) to IDR85,000.

As of June 30, 2006, Telkomsel's total assets were at
IDR31.04 trillion, whereas total liabilities were at
IDR13.82 trillion, and total equities amount to
IDR17.22 trillion.

As of June 30, 2006, Telkomsel's current assets increased 14%
from last year to IDR5.13 trillion, mainly attributable to
higher cash balance and higher prepayments for network space
rental.  Property, plant and equipment increased 41% to IDR24.69
trillion as a result of significant growth in network capacity
and coverage enhancement.  Other assets increased more than four
times to IDR1.21 trillion due to recognition of intangible
assets (for 3G license) and equipment taken out from operation
(previously recognized as part of fixed assets).

Current liabilities grew 87% to IDR11.78 trillion as of June 30,
2006, because of an increase in accrued liabilities and dividend
payable.  Non-current liabilities increased 35% to
IDR2.04 trillion, mainly because of new loan facilities signed
in March 2006.  The outstanding amount of these loan facilities
as of the end of June 2006 was IDR700 billion.

As of June 30, 2006 the outstanding balance of the ECA loan
facilities totaled IDR653 billion (IDR336 billion was recorded
under long-term liabilities and IDR317 billion recorded as
current liabilities).

                         About Telkomsel

PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/
-- is the leading operator of cellular telecommunications
services in Indonesia by market share.  By the end of June 2006,
Telkomsel had close to 29.3 million customers which based on
industry statistics represented a market share of more than 50%.

Telkomsel provides GSM cellular services in Indonesia, through
its own nationwide Dual band 900/1800 MHz GSM network, and
internationally, through 259 international roaming partner in
153 countries as of June 2006.  The company provides its
subscribers with the choice between two prepaid cards-simPATI
and kartuAs of a pre-paid simPATI service, or the post-paid
kartuHALO service, as well as a variety of value-added services
and programs.

                          *     *     *

A Troubled Company Reporter - Asia Pacific report on Dec. 20,
2005 states that Standard & Poor's Ratings Services had on
December 12, 2005 raised the foreign currency corporate credit
ratings of PT Telekomunikasi Selular (Telkomsel) from BB- to BB+
with a stable outlook, and its local currency corporate rating
from BB to BB+ with a stable outlook, following a review of the
impact of risk factors such as economic structure, growth
prospects, political stability, depth and liquidity of capital
markets and transfer and convertibility risk.

Another TCR-AP report says that Fitch Ratings gives
Telekomunikasi Selular a BB long term issuer default rating,
effective on August 18, 2006.  The outlook is stable.

Additionally Fitch Ratings gave the company a BB+ local currency
rating and a BB- foreign currency rating.  Both ratings carry a
positive outlook.


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

BLOUNT INT: Equity Deficit Narrows to US$122.81 Mil. at June 30
---------------------------------------------------------------
Blount International, Inc., disclosed financial results for the
second quarter ended June 30, 2006.  Sales from continuing
operations for the quarter were US$165.1 million compared to
US$177.6 million in last year's second quarter.  Operating
income from continuing operations was US$24.0 million compared
to US$29.0 million in the second quarter of 2005.

Sales and operating income from continuing operations exclude
the results of the Lawnmower segment, which is now classified as
a discontinued operation.  Income from continuing operations in
this year's second quarter was US$10.3 million, compared to
US$15.7 million in the comparable period last year.  The results
of the second quarter as compared to last year's were adversely
impacted by foreign currency exchange rates and an increase in
the Company's effective book income tax rate from 18.3% in 2005
to 34.7% in 2006.  Lower shipments of timber harvesting
equipment affected the financial results as compared to last
year's second quarter.  This year's second quarter net income
was positively impacted by US$1.0 million from an insurance
claim.

Commenting on the second quarter, James S. Osterman, Chairman
and Chief Executive Officer, stated: "Our sales performance for
the second quarter was mixed.  Our largest business, the
OutdoorProducts segment, continued to post sales in line with
therecord levels achieved in 2005, but sales of the Industrial
and Power Equipment segment were impacted by softer market
conditions as compared to last year's second quarter.  Although
logging activity in North America remained stable, logging
contractors postponed equipment purchases, in part due to their
rising operating costs.

Looking ahead to the second half of 2006, we are anticipating
similar market conditions to those experienced in the first
half.  Sales of the Outdoor Products segment should continue to
be equal to or slightly higher than last year's second half
sales.  Sales for the Industrial and Power Equipment segment are
expected to be below last year's for the remainder of 2006 given
the current North American market conditions.  We expect the
softness in North America will be somewhat offset by continued
expansion into international markets through our agreements with
Caterpillar.  In the second quarter, we purchased the technology
for the design and manufacture of a line of harvester heads for
the international markets to broaden cutting capability on our
timber harvesting equipment.  For the full year, we expect sales
from continuing operations to range between US$670 million and
US$690 million.

Operating income from continuing operations is estimated to
range between US$97 million and US$101 million.  The operating
income range includes a non-recurring second half expense of
approximately US$3.7 million in conjunction with the redesign of
the Company's pension plans to reduce future costs.  The
operating income range also includes US$3.0 million in stock-
based compensation expense."

                      Segment Results

The Outdoor Products segment reported second quarter sales of
US$114.7 million compared to US$114.1 million in last year's
second quarter.  Sales order backlog increased to US$75.7
million in the second quarter from US$70.3 million in this
year's first quarter and compares to US$82.6 million in last
year's second quarter.  Geographically, sales were strongest in
the domestic markets, with year-over-year sales growth of 7%
achieved in the second quarter.  Sales to original equipment
manufacturers increased 5% from last year's second quarter.
Segment contribution to operating income was US$23.1 million in
this year's second quarter compared to US$26.8 million in last
year's second quarter.  The year-over-year decrease in segment
contribution to operating income includes a US$2.4 million
negative impact from movement in foreign currency exchange
rates.

The Industrial and Power Equipment segment's second quarter
sales were US$50.6 million, up slightly from the first quarter
of this year, but below last year's second quarter amount of
US$63.7 million.  Segment contribution to operating income was
US$4.7 million compared to US$6.4 million in last year's second
quarter.  A decline in shipments of timber-harvesting equipment
was the primary reason for both the sales and contribution
declines from last year's second quarter.  Sales of Caterpillar
branded product increased 25% from this year's first quarter but
were below last year's second quarter, consistent with the sales
trends of Blount branded products.  The weaker demand and
associated orders for our timber-harvesting equipment within
North America reflect customers' concerns about the near term
outlook for logging activity and higher operating costs.
Backlog for this segment as of June 30 was US$37.0 million
compared to US$38.0 million in this year's first quarter and
US$74.4 million in last year's second quarter.

                   Discontinued Operations

On July 27, 2006, the Company completed the sale of certain
assets and liabilities of its Lawnmower segment to Husqvarna.
The sale resulted in preliminary gross proceeds of
US$33.9 million, which the Company utilized to reduce long term
debt to US$374 million as of July 27, 2006.  As a result of this
sale, the Lawnmower segment has been reclassified as a
discontinued operation for all periods presented.

In the second quarter, net loss from discontinued operations was
US$0.9 million compared to net income of US$1.4 million last
year.  This year's net loss includes US$1.5 million of after-tax
expense for employee termination costs.  In the third quarter of
this year, the Company estimates that it will record net income
from discontinued operations to reflect the gain on the sale of
assets and operating activity for the period of ownership.

                    Pension Plan Revisions

The Company has announced a pension plan redesign for existing
employees effective Jan. 1, 2007.  Upon implementation, the
redesign will freeze benefits earned under the Company's defined
benefit plan and increase contributions paid to the Company's
401(k) defined contribution plan.  This redesign will result in
an estimated reduction to the Company's pension expense between
US$16 million and US$23 million over the next five years.  In
the second half of 2006, the Company will record a non-recurring
expense of approximately US$3.7 million in conjunction with the
redesign.

A full-text copy of the Quarterly Report in Form 10-Q filed with
the US Securities and Exchange Commission is available for free
at http://ResearchArchives.com/t/s?fdb

                   About Blount International

Blount International Inc. (NYSE:BLT) -- http://www.blount.com/
-- is a diversified international company operating in three
principal business segments:  Outdoor Products, Industrial and
Power Equipment and Lawnmower.  Blount sells its products in
more than 100 countries around the world.  Blount has one of its
manufacturing locations in Fuzhou, China, as well as,
distribution center in Yokohama, Japan.

As of June 30, 2006, Blount International's equity deficit
narrowed to US$122.81 million from a US$145.18 million deficit
at Dec. 31, 2005.


JAPAN AIRLINES: Will Keep Hotel Nikko Saipan
--------------------------------------------
Despite its decision to abandon the Saipan route, Japan Airlines
is not selling its 18-year-old hotel in Saipan, Marianas Variety
reports.

Hotel Nikko Saipan's general manager and executive vice
president Hideo Nishigori dismissed rumors that Japan Airlines
is selling the hotel after it scrapped Saipan from its list of
destinations, Marianas Variety relates.

Mr. Nishigori said that like other hotels, Nikko is struggling
with low occupancy rates due to the downturn in tourist arrivals
in the Northern Marianas but he added that Japan Airlines is
keeping the hotel, according to Saipan Tribune.  Hotel Nikko
Saipan has 313 rooms but only about 55% are occupied.

Mr. Nishigori said the Northern Marianas remains attractive to
Japanese tourists mainly due to its pristine environment.  But
he added that tourists still want to see more shopping malls,
entertainment centers and sports arenas, which is currently
lacking in Saipan, Marianas Variety relates.

Japan Airlines withdrew its Saipan route in October 2005 mainly
due to the declining volume of passenger traffic, Saipan Tribune
reveals.

                       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
=========

ACTUANT CORP: Buys Actown-Electrocoil Stock for US$24 Million
-------------------------------------------------------------
Actuant Corporation completed the purchase of all of the
outstanding stock of Actown-Electrocoil, Inc., for approximately
US$24 million in cash.  Funding was provided from borrowings
under Actuant's revolving credit facility.

Actown will be a part of Actuant's Tools & Supplies Segment.

"Actown is a great addition to our Professional Electric product
line, which also includes Amveco and Acme Transformer," Mark
Goldstein, Executive Vice President of Actuant and Tools &
Supplies Leader, stated.  "Actown's focus on the OEM customer
base within the magnetics and sign markets is an excellent
complement to our existing businesses.  Its engineering
expertise, long-standing customer relationships and global
footprint allow us to offer the market a broader range of
products and services.  We are excited that Dave Weisberg, Steve
Duffy and the rest of the current Actown management team will
continue to play an important role in the Company's future."

                       About Actuant Corp

Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU)
-- http://www.actuant.com/-- is a diversified industrial
company with operations in more than 30 countries, including
Australia, China, Hong Kong, India, Japan, Taiwan and South
Korea.  The Actuant businesses are market leaders in highly
engineered position and motion control systems and branded
hydraulic and electrical tools and supplies.  Since its creation
through a spin-off in 2000, Actuant has grown its sales from
US$482 million to over US$1 billion and its market
capitalization from US$113 million to over US$1.5 billion.  The
company employs a workforce of approximately 6,000 worldwide.
Actuant Corporation trades on the NYSE under the symbol ATU.

Actuant Corp.'s 2% Convertible Senior Subordinated Debentures
due 2023 carry Standard & Poor's B+ rating.


ARROW ELECTRONICS: Earns US$92.8 Million in 2006 Second Quarter
---------------------------------------------------------------
Arrow Electronics, Inc., reported second quarter 2006 net income
of US$92.8 million on sales of US$3.44 billion, compared with
net income of US$58.4 million on sales of US$2.77 billion in the
second quarter of 2005.  The 24% increase in sales year-over-
year included 14% organic growth and 10% growth as a result of
acquisitions.

Operating income in the second quarter of 2006 and 2005 was
US$163.1 million and US$118.8 million, respectively.

Arrow's net income for the first six months of 2006 was
US$174.3 million on sales of US$6.63 billion, compared with net
income of US$115.6 million on sales of US$5.49 billion in the
first six months of 2005.

"We once again had an excellent quarter as our ongoing
initiatives, coupled with favorable conditions in the
marketplace, led to record second quarter sales and earnings in
excess of our expectations.  We also delivered our highest
second quarter return on invested capital in ten years," said
William E. Mitchell, Chairman, President and Chief Executive
Officer.  "We continue on our path of consistent execution with
14 consecutive quarters of year-over-year sales growth, and we
are very proud of our progress in driving operational excellence
into all parts of our business."

Worldwide components sales of US$2.76 billion increased 6%
sequentially and 27% over last year, while operating income
increased 11% sequentially and 42% over last year.  Sales on a
pro forma basis, including Ultra Source Technology Corp. in the
second quarter of 2005, increased 20% year-over-year.  "Each of
our components businesses around the world achieved sequential
growth and impressive year-over-year increases in sales and
operating income," stated Mr. Mitchell.  "In North America,
sales reached their highest level since the first quarter of
2001, while we drove operating expenses as a percentage of sales
down 150 basis points year-over-year.  Sales in Europe reached
all-time highs while improving operating income almost 60% year-
over-year, and Asia/Pacific sales broke records again with
significant improvements in profitability," added Mr. Mitchell.

Worldwide computer products sales increased 17% sequentially in
this seasonally strong quarter, and increased 14% year-over-
year.  Sales for the Enterprise Computing Solutions business on
a pro forma basis, including DNSint.com AG in the second quarter
of 2005, decreased 2% year-over-year.  "Our enterprise computing
business continued to demonstrate solid profitability and
returns.  Growth was driven by strong performance in storage,
industry standard servers, and our European enterprise business,
offset by weakness in the broad proprietary server market and
software in North America," said Mr. Mitchell.

The company's results for the second quarter of 2006 and 2005
include these items that impact their comparability:

     -- During the second quarter of 2006, the company recorded
        US$3.1 million of restructuring charges.  Included in
        the restructuring charges is approximately
        US$2.4 million related to previously announced actions
        the company has committed to take in an ongoing effort
        to improve its operating efficiencies.  These previously
        announced actions are expected to generate annual cost
        savings of approximately US$6 million beginning in 2007.
        The estimated restructuring charges to be recorded over
        the next several quarters associated with these actions
        total approximately US$1 million.

     -- During the second quarter of 2005, the company recorded
        restructuring charges related to additional actions to
        better optimize the use of its mainframe, reduce real
        estate costs, be more efficient in its distribution
        centers, and to be more productive in the amount of
        US$4.8 million.

     -- During the second quarter of 2005, the company
        repurchased, through a series of transactions,
        US$80.8 million accreted value of its zero coupon
        convertible debentures due in 2021, which could have
        been put to the company in February 2006.  The related
        loss on the repurchase, including the premium paid and
        the write-off of related deferred financing costs,
        aggregated US$1.7 million.

     -- At July 1, 2005, the company determined that an other-
        than-temporary decline in the fair value of an
        investment occurred, and, accordingly, during the second
        quarter of 2005, the company recorded a loss on the
        write-down of an investment of US$3 million.

"We expect the components market to return to more normal,
steady conditions in the third quarter after having experienced
an uptick in demand over the last few quarters.  Based upon the
information known to us today, we anticipate traditional
seasonality for our businesses next quarter, as markets remain
rational and disciplined in all of the regions in which we
operate.  In Asia/Pacific, we expect to see an uptick in demand
in preparation for the typical holiday build.  Both Europe,
because of its extended holiday period, and Enterprise Computing
Solutions, due to typical third quarter seasonality, are
expected to see a drop off in activity levels.  In North
American components, fewer shipping days may cause a
corresponding drop in sales," said Paul J. Reilly, Senior Vice
President and Chief Financial Officer.

"We believe this will result in sales between US$3.275 and
US$3.425 billion for the upcoming quarter.  We anticipate
worldwide components sales between US$2.67 and US$ 2.77 billion
and sales for worldwide computer products to be between US$605
and US$655 million.  Earnings per share on a diluted basis,
including the impact of expensing stock options in accordance
with FASB Statement No. 123(R) estimated at approximately US$.02
per share, are expected to be in the range of US$.68 to US$.72,
excluding any charges.  Excluding the impact of restructuring
and other charges, and the expensing of stock options, diluted
earnings per share for the third quarter are expected to
increase 35% to 42% from last year's third quarter," added Mr.
Reilly.

Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- is a global provider of products,
services and solutions to industrial and commercial users of
electronic components and computer products.  Arrow serves as a
supply channel partner for nearly 600 suppliers and more than
130,000 original equipment manufacturers, contract manufacturers
and commercial customers through a global network of over 270
locations in 53 countries and territories.  In Asia Pacific, the
company operates in Australia, China, Hong Kong, India,
Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand
and Korea.

                          *     *     *

Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The Company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating.  The rating
outlook is positive


AVANI INTERNATIONAL: June 30 Capital Deficit Widens to $128,775
---------------------------------------------------------------
Avani International Group Inc. filed its second quarter
financial statements for the three months ended June 30, 2006,
with the United States Securities and Exchange Commission on
Aug. 11, 2006.

At June 30, 2006, the Company's balance sheet showed
US$1,140,878 in total assets and US$1,269,653 in total
liabilities, resulting in a US$128,775 capital deficit.  The
Company reported a US$32,167 deficit at Dec. 31, 2005.

Avani reported a US$19,026 net loss on US$84,827 of total
revenues for the three months ended June 30, 2006, compared with
a US$103,785 net loss on US$474,224 of total revenues for the
same period in 2005.

Revenues for the six months ended June 30, 2006, were US$101,093
representing a decrease of US$761,552 or 88.28% from revenues of
US$853,319 for the same period in 2005.  The significant
decrease in revenues reflects the deterioration and ultimately
the termination of the business relationship with Avani O2, as
well as the de-consolidation of Avani O2 as a VIE, all of which
occurred during the 2005 period.  Revenues for the 2005 period
also included US$9,326 in cooler rentals and sales.  The Company
sold its cooler rental and sales business in July 2005, and thus
had no corresponding revenue for the 2006 period.

Cost of revenue, which includes depreciation for the six-month
period in 2006 totaled US$191,163, a decrease of US$328,740 or
63.2% from US$519,903 for the same period in 2005.

Cost of revenue for the six-month period ended June 30, 2006,
consisted of costs of goods sold consisting of US$142,950 in
bottled water, supplies, coolers, and related equipment, and
delivery costs (a decrease of US$288,587 or 66.9% from
US$431,537 for the prior period) and US$48,366 in depreciation
(a decrease of US$40,153 or 45.4% from US$88,366 for the same
period in prior year).

The decrease in cost of goods sold for the 2006 period compared
with the prior period is due mainly to lower material and labor
costs associated with the reduced production levels.

The reduction in depreciation for the 2006 period is due to the
write off of the Malaysian equipment held by Avani O2 in July
2005.

Gross loss for the six-month period ended June 30, 2006, was
US$90,070, a decrease of US$252,672 or 126% from gross profit of
US$342,742 for the same period in 2005.

Operating expenses, which includes marketing expenses, and
general and administrative expenses for the six-month period
ended June 30, 2006, totaled US$24,750, a decrease of US$1,535
or 5.8% from US$26,285 for the same period in 2005.

General and administrative costs were US$284,172 in 2006, a
decrease of US$91,650 or 24.45% from US$375,822 in the prior
period.  The decrease is due principally to reduced employees
and payroll, which resulted from sale of 5-gallon business.

Marketing expenses totaled US$26,285 for the six-month period in
2006 representing a decrease of US$1,535 or 5.8% from US$26,285
for the prior period.

The relatively constant marketing expenses reflect the Company's
decision in the fourth quarter of 2004 to reduce overall
international marketing expenses, particularly in Malaysia.

During 2005, the Company wrote off a receivable from Avani O2 in
the amount of US$1,240,811.  There was no write off for the 2006
period.

The Company experienced a foreign exchange loss of US$32,386 in
2006 compared with a gain of US$7,202 in 2005 due to a reduction
in the volume of currency exchange transactions and limited
fluctuation of the exchange rates between U.S. currency and
Canadian currency compared to the same period of prior year.

For the 2006 period, the Company experienced a gain in the
amount of US$252,230 on the sale of its real estate assets.

Loss from operations for the 2006 period is US$179,148 compared
with a loss of US$1,292,974 for the comparable period 2005.

During the 2006 period, the Company recorded interest on debts
payable of US$3,514 compared with US$3,238 for the 2005 period.
Miscellaneous income was $0 in 2006 compared with US$2,278 in
2005, which principally represents taxes paid by Avani O2.

Comprehensive loss for the 2006 period was US$121,608 compared
with a loss of US$311,139 for the same period in 2005.

                 Liquidity and Capital Resources

As of June 30, 2006, the Company had working capital of
US$78,882.  Working capital deficit as of Dec. 31, 2005, was
US$689,799.  The increase in working capital is principally a
result of the gain experienced on the sale of the Company's real
estate, partially offset by the consolidated loss of the Company
for the first fiscal quarter of 2006.

Property, plant and equipment, net of accumulated depreciation,
totaled US$52,878 on June 30, 2006.  Property, plant and
equipment, net of accumulated depreciation, totaled US$916,246
on Dec. 31, 2005.

The Company has entered into an agreement to sell its real
estate located in Canada and intend to re-locate is water
manufacturing business to Malaysia.  The Company intends to use
the proceeds from the sale of its real estate to fund re-
location efforts, and to fund in initial operating capital.

                          Sale of Assets

On June 15, 2006, the Company sold its real property including
land, building and building improvements, for proceeds of
approximately US$1,018,895.  The net book value of its real
property was approximately US$766,665 on June 15, 2006, and the
sale generated a gain of US$252,230.  After the sale of its real
property, its production of water was discontinued.

Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?1071

                        Going Concern Doubt

As reported in the Troubled Company Reporter on April 26, 2006,
Jeffrey Tsang & Co. in Hong Kong raised substantial doubt about
Avani International Group Inc.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2005.  The auditors
pointed to the company's recurring losses from operations.

                  About Avani International Group

Avani International Group Inc. -- http://www.avaniwater.com/--  
produces, markets, and sells purified, oxygen enriched water
under the brand name Avani Water.  The Company utilizes a
technology, which injects oxygen into purified water.  The
Company sells its product in the greater Vancouver metropolitan
area and internationally in the United States, Taiwan, Hong
Kong, Malaysia, Japan, Australia and Korea.  The company has two
wholly owned subsidiaries: Avani Oxygen Water Corporation fka
Avani Water Corporation, and Avani International Marketing
Corporation.


BURGER KING: Names Peter Robinson President of EMEA Operations
--------------------------------------------------------------
Peter Robinson, previously the president of Pillsbury USA and
senior vice president of General Mills Inc., has joined Burger
King Corp. as president of Burger King EMEA, effective
immediately.  Mr. Robinson will be based in the company's EMEA
headquarters in Zug, Switzerland, and will report to Burger King
Corporation CEO John W. Chidsey.  In this role, Robinson will be
responsible for all of Burger King Corporation's business in the
region, including operations, marketing and franchisee
development.  He will be part of the company's executive
leadership team.

Mr. Robinson's career spans more than 30 years in the consumer
foods industry in the United States, Europe, the Middle East and
Africa.

"Peter is results driven and action oriented with exactly the
right mix of multinational experience to lead Burger King in the
region," Mr. Chidsey said.  "During the past two years in EMEA,
we've concentrated on improving operations and marketing and on
new franchisee development. These accomplishments have set the
stage for us to focus intently on improving comparable sales
growth and further accelerating restaurant growth."

Mr. Robinson was appointed president of Pillsbury USA following
the acquisition of Pillsbury by General Mills in 2001 where he
was instrumental in the successful integration of Pillsbury
businesses and employees into the new General Mills.  Before
joining Pillsbury in 1999, Robinson was president of Frito-Lay
International, responsible for Eastern Europe, the Middle East
and Africa.  He has also held leadership positions at Kraft
General Foods.

Mr. Robinson said, "Burger King has made significant strides in
the past few years in Europe and the Middle East, and I'm
confident we can accelerate the momentum. I am pleased to have
the opportunity to work with John and the leadership team at
Burger King at this exciting time in the company's history and
to return to the region."

Mr. Robinson replaces Steve DeSutter, who resigned from his
position as president of Burger King EMEA earlier this month.
Robinson is a native of the United Kingdom.  He holds a degree
in economics from Newcastle University in the United Kingdom.

EMEA is the largest geographic area in the Burger King system
outside the United States with more than 2,100 restaurants in 26
countries and territories, including the United Kingdom,
Germany, Spain and the Netherlands.

                     About Burger King

The Burger King(R) system (NYSE: BKC) -- http://www.bk.com/--  
operates more than 11,100 restaurants in all 50 states and in
more than 65 countries and U.S. territories worldwide,
including Australia, China, Hong Kong, Malaysia,
New Zealand, Philippines, Singapore, Taiwan, Thailand and Korea.
Approximately 90% of BURGER KING restaurants are owned and
operated by independent franchisees, many of them family-owned
operations that have been in business for decades.

Burger King Corp. operates restaurants in the Latin American,
Caribbean and Mexican Region.  The company's first international
restaurant opened in 1963 in Puerto Rico.  Since 1994, Burger
King has opened more than 300 restaurants in the Latin American
region, producing some of the strongest comparable store sales
growth for the brand around the world.  Burger King(R)
restaurants in Latin America serve approximately 1,600 customers
per day each, making them some of the highest volume restaurants
in the system.

                          *     *     *

As reported in the Troubled Company Reporter on June 23, 2006,
Fitch assigned initial ratings for Burger King Corp., the
world's second largest fast food hamburger restaurant chain.
Fitch assigned the Company its 'B+' Issuer Default Rating.
Fitch also rated the Company's US$150 million revolving credit
facility maturing June 2011; and US$967 million aggregate
remaining term loan A and B outstandings maturing June 2011 and
June 2012, respectively, at 'BB/RR2'.  Fitch said that the
Outlook on all Ratings is Positive.


MERIDIAN CO: Auditors Raise Substantial Going Concern Doubt
-----------------------------------------------------------
After auditing Meridian Co., Ltd's financial statements for the
year ended December 31, 2005, Choi, Kim & Park LLP, notes that
the Company's significant operating losses and working capital
deficit raise substantial doubt about its ability to continue as
a going concern.

For the year ended December 31, 2005, Meridian, through a
regulatory filing with the United States Securities and Exchange
Commission, reveals that it recorded a net loss of
KRW3,349,407,134 (US$3,316,245) and an accumulated deficit of
KRW15,125,695,937 (US$14,975,937).

For the year ended December 31, 2005, the Company achieved sales
revenues of KRW1,434,519,243 (US$1,420,316), resulting in a
gross margin of KRW335,324,414 (US$ 332,004), compared with
sales revenues of KRW2,204,234,179 that resulted in a gross
margin of KRW989,431,030 for the year ended December 31, 2004,
and sales revenues of KRW3,441,119,294 that resulted in a gross
margin of KRW1,950,281,610 for the year ended December 31, 2003.

The Company recognizes the possibility of incurring losses for
the foreseeable future.  The extent of future losses will
depend, in part, on the amount of growth in revenues from the
Company's products.  The Company expects that operating costs
increase during the next several years, especially in the areas
of sales and marketing, product development and general and
administrative expenses as it pursues its business strategy.
Thus, the Company will need to generate increased revenues
faster than the rate of growth in costs to achieve
profitability.  To the extent that increases in its operating
expenses precede or are not subsequently followed by
corresponding increases in revenues, or if it is unable to
adjust operating expense levels accordingly, the Company's
business, results of operations and financial condition would be
materially and adversely affected.  There can be no assurance
that the Company will sustain profitability or that its
operating losses will not increase in the future.

Meridian's balance sheet as of June 30, 2006, showed
KRW881,400,865 of total current assets available to pay
KRW3,669,846,158 of total current liabilities coming due within
the next 12-month period.

Moreover, the Company's June 30 balance sheet also reflected
KRW955,842,216 of total assets, versus KRW8,742,288,782 of total
liabilities, resulting in KRW7,786,446,566 shareholders equity
deficit.

Meridian relates that it has limited financial resources and
will require additional cash to implement its business
strategies, including cash for:

    (i) payment of long-term and short-term borrowings;
   (ii) payment of operating expenses;
  (iii) costs associated with bringing new products to market;
   (iv) continued research and development; and
    (v) further implementation of those business strategies.

The Company anticipates raising additional capital through
public or private financings, as well as through loans and other
resources.  There is no assurance that the necessary funds would
be available to the Company on terms acceptable to it.  Failure
to obtain additional funding could result in a delay or an
indefinite postponement in providing some or all of the
Company's products to the market place, or the ability to supply
sufficient product to the market place on a continual and
profitable basis.  Additional funds raised by the Company
through the issuance of equity or convertible debt securities
will cause the Company's current stockholders to experience
dilution.  These securities may grant rights, preferences or
privileges senior to those of the Company's common stockholders.
The Company does not have any contractual restrictions on the
Company's ability to incur debt and, accordingly, the Company
could incur significant amounts of indebtedness to finance its
operations.  Any indebtedness could contain covenants which
would restrict the Company's operations.

In February 2004, the Company received approval for a debt
rescheduling plan for a total of KRW4,697,927,000 (US$4,651,413)
from the Chooncheon District Court, Korea, wherein a group of
creditors of the Company and a representative of the Company
agreed to reschedule the payments on KRW4,697,927,000 of the
Company's debt.

Meridian's 2005 annual financial report is available at the U.S.
SEC site at:

http://www.sec.gov/Archives/edgar/data/1135174/000106299306002523/form20f.htm

Headquartered at Songpa-gu, in Seoul, Korea, Meridian Co., Ltd.,
is engaged the research, development, manufacturing, and
marketing of integrative medical devices in the healthcare
industry.  Integrative medicine combines both Western and
Eastern expertise in order to obtain the highest quality and
standard.  The Company has grown substantially and has
established subsidiaries in China and Los Angeles and in 2004
signed an exclusive distribution agreement with a corporation in
Vancouver, B.C., Canada.  The Company currently sells four
different products to healthcare practitioners throughout the
domestic and overseas market.  These include the LipoLaser, DPA
(Digital Pulse Analyzer), the Lapex-2000, the ABR-2000, and the
Meridian II.


QUANTUM CORP: S&P Ups Sr. Secured First-Lien Debt's Rating to B+
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its rating and
recovery rating on Quantum Corp.'s proposed first-lien bank
facility to 'B+' and '1' from 'B' and '3', respectively,
following a recent amendment to the terms of the proposed
financing of Quantum's acquisition of Advanced Digital
Information Corporation.

The bank loan rating, along with the '1' recovery rating,
reflect Standard & Poor's expectation of full recovery of
principal by first-lien creditors in the event of a payment
default.

The newly proposed first-lien senior secured bank facility will
consist of:

   * a US$150 million revolving credit facility (due 2009); and
   * a US$225 million term loan (due 2012).

Additionally, Quantum will now issue a US$125 million second-
lien senior secured term loan (due 2013), which will not be
rated.

Furthermore, an accelerated maturity clause has been added to
the terms of the credit facilities, such that the failure to
either refinance or convert existing 4.375% convertible
subordinated notes prior to January 1, 2010, would accelerate
maturities of the first- and second-lien facilities to April 2,
2010, and May 2, 2010, respectively.

Scheduled amortization also was amended such that Quantum will
be required to repay US$50 million of the first-lien term loan
by September 2008 in equal quarterly installments beginning in
December 2006.  Thereafter, annual amortization will be
US$2.25 million, paid quarterly, until maturity, at which point
the remaining balance is due.

Quantum's corporate credit rating is 'B' with a stable outlook.
The corporate credit rating reflects increased financial
leverage and debt servicing burdens resulting from the ADIC
acquisition financing and relatively weak operating
profitability stemming from mixed industry fundamentals and
competition.  These factors are partially offset by the
potential for an improved business position, and incremental
improvements in profitability and cash flow generation,
resulting from cost cuts and synergies from the acquisition of
ADIC.

Ratings List:

  Quantum Corp.

    * Sr. secured first-lien debt's rating revised to B+
      (Recovery Rating 1) from B (Recovery Rating 3)

Based in San Jose, California, Quantum Corp., (NYSE: DSS) --
http://www.quantum.com/-- formerly a maker of hard disk drive
for desktop computers, now produces digital linear tape
technology, such as DLT devices, automated tape library systems,
and the tape cartridges used in these systems.  The company has
offices in these Asia-Pacific countries: Korea, Australia,
China, Hong Kong, India, Japan, Malaysia, Singapore.


QUANTUM CORP: Completes Acquisition of ADIC for US$770 Million
-------------------------------------------------------------
Quantum Corp. completed its acquisition of Advanced Digital
Information Corp.

Under the terms of the definitive agreement the Company acquired
all of ADIC and its outstanding shares for US$770 million,
primarily in cash.  The Company is funding the transaction
through a combination of cash on hand and approximately
US$500 million in financing from a group of banks and other
lending institutions.  The annual interest expense resulting
from the financing is expected to be approximately
US$50 million.

As a result of intensive integration planning over the last few
months, the Company has identified annualized cost synergies of
approximately US$75 million to US$80 million, compared to the
US$45 million it had initially estimated.  The Company expects
to begin realizing the benefit of a significant portion of the
synergies by the end of the calendar year, the majority of the
synergy savings by the end of its fiscal year, and the remaining
synergy benefits in the following two quarters.  The synergies
will reduce both cost of goods sold and operating expenses and
primarily be generated by eliminating redundancies in internal
programs, processes and employee positions, rationalizing
facilities, leveraging higher manufacturing volumes to reduce
supply chain costs, and streamlining procurement processes.

With the acquisition of ADIC, the Company offers a comprehensive
portfolio of platform-independent systems, software, devices and
media.  In addition, with combined revenues exceeding
US$1.2 billion over the last four quarters and a significantly
larger sales and service infrastructure, the Company now has the
scale to engage with customers at a more strategic level.

The Company further disclosed that, it will continue to sell and
support all current Quantum and ADIC products; sell all products
through the companies' respective partners and distribution
channels; and maintain existing service contracts and product
warranties.  The Company will have nearly a thousand Sales,
Marketing and Service employees providing informed expertise,
advice and support to customers around the world.

Based in San Jose, California, Quantum Corp., (NYSE: DSS) --
http://www.quantum.com-- formerly a maker of hard disk drive
for desktop computers, now produces digital linear tape
technology, such as DLT devices, automated tape library systems,
and the tape cartridges used in these systems.  The company has
offices in these Asia-Pacific countries: Korea, Australia,
China, Hong Kong, India, Japan, Malaysia, and Singapore.

                          *     *     *

Standard & Poor's Ratings Services revised its rating and
recovery rating on Quantum Corp.'s proposed first-lien bank
facility to 'B+' and '1' from 'B' and '3', respectively,
following a recent amendment to the terms of the proposed
financing of Quantum's acquisition of Advanced Digital
Information Corporation.


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

FURQAN BUSINESS: Proceeds of Austral Amal's Sale Received
---------------------------------------------------------
Furqan Business Organisation Berhad disclosed on August 25,
2006, that it received a letter from Prokhas Sdn Bhd informing
that all proceeds for the disposal of Austral Amal
Properties Sdn Bhd's property has been received towards full and
final settlement of a loan under the Modified Workout Proposal.

As reported by the Troubled Company Reporter - Asia Pacific on
April 11, 2006, Furqan Business Organisation's subsidiary,
Austral Amal, had, on April 6, 2006, entered into a Sale and
Purchase Agreement with Scanart Data System (M) Sdn Bhd.

Under the Agreement, Austral Amal will sell a piece of land, a
four-storey office and a warehouse complex in Bandar Petaling
Jaya, Daerah Petaling, Negeri Selangor Darul Ehsan measuring in
area approximately 8978.9484 square meters for MYR15,100,000.

The disposal is part of the Proposed Disposal of Non-Core Assets
of Austral Amalgamated Berhad Group pursuant to the Workout
Proposal of AAB Group, which was approved and implemented under
the Pengurusan Danaharta Nasional Berhad Act, 1998.

Austral Amal has obtained the approval from Pengurusan Danaharta
Nasional Berhad to sell the Property and Danaharta has agreed to
accept MYR15,100,000 only as full and final redemption of the
Property subject to the sum being paid to Danaharta.

                        About Austral Amal

Austral Amal is a wholly owned subsidiary of Furqan Business and
was incorporated in Malaysia under the Companies Act, 1965, on
June 5, 1995.  The authorized and issued and paid up capital of
Austral Amal is MYR100,000 divided into 100,000 ordinary shares
of MYR1.00 each and MYR2.00 divided into two ordinary shares of
MYE1.00 each, respectively.

                About Furqan Business Organization

Headquartered in Kuala Lumpur, Malaysia, Furqan Business
Organization Berhad formerly known as Austral Amalgamated Berhad
is engaged in property development and investment, tour and
travel services, and financial services.  Other activities
include contractor, leasing and hire purchase financing
facilities.  The Group's operations are substantially carried
out in Malaysia.

Rating Agency Malaysia has downgraded the rating of the
Company's MYR37.66 million Redeemable Convertible Loan Stocks,
from BB3 to B1, with a negative outlook.  At the same time, the
rating agency is maintaining the Rating Watch on the Company.
The downgrade is premised on the deterioration in Furqan's
business profile, especially in its leasing business, which is
currently the main revenue contributor to the Group.


MALAYSIA AIRLINES: Violated Immigration Laws, NZ Officials Say
--------------------------------------------------------------
Immigration officials are prosecuting Malaysia Airlines for
carrying illegal immigrants to New Zealand, the Bangkok Post
reports.

The New Zealand Immigration Department is taking legal action
due to demonstrate that failure to screen passengers would not
be tolerated, the report says.

Immigration officials claim that Malaysia Airlines habitually
breached the Immigration Act, in which airlines are obliged to
ensure that passengers comply with all regulations and are
legally entitled to enter New Zealand before boarding flights
bound for the country.

Board of Airlines Representatives member, Stuart Milne, told the
Post he was disappointed with the prosecution and added that the
Immigration Act was out of date and should be changed.  He said
airlines wanted to cooperate with officials and by and large
they had a good working relationship, which could be jeopardized
by legal action.

Officials said an advanced passenger screening system introduced
last year saw 680 people denied permission to board aircraft
heading for New Zealand in the 12 months to June 30, 2006, the
Post relates.

                    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.


MALAYSIA AIRLINES: Forges Partnership with Virgin
-------------------------------------------------
Malaysia Airlines and Australia's Virgin Blue inked on
August 29, 2006, a partnership agreement aimed at boosting
revenues for both carriers, The Australian reports.

Under the agreement, passengers will be funneled by airlines
into each other's networks.  Virgin will be given access to 47
Malaysia Airlines flights a week into five Australian cities,
the report states.

According to e-travel Blackboard, the tie-up is expected to
involve electronic ticketing as well as inter-lining of baggage
from the three biggest cities and reciprocity between loyalty
schemes.

Malaysia Airlines has been forming partnerships with foreign
airlines as part of its business turnaround plan that was
unveiled in February this year.

The Troubled Company Reporter - Asia Pacific reported on
August 7, 2006, that the Malaysian carrier has signed a code-
sharing agreement with Gulf Air.  The agreement -- which will
come into effect on September 8, 2006 -- will allow Malaysia
Airlines to market seats under its code on the Gulf Air operated
flights between Kuala Lumpur to the Middle East countries of
Bahrain and Oman.

The TCR-AP further reported on August 11, 2006, that Malaysia
Airlines is looking to enter at least five more code sharing
deals by the end of this year, a move that is expected to
increase its passenger load.  The carrier would first sign with
Australia by the end of this month and with South Africa, China,
Europe as well as the United States before Christmas.

                    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.


MITHRIL BERHAD: To Seek Shareholders' Mandate at AGM
----------------------------------------------------
Mithril Berhad's board of directors has, at its meeting held on
August 24, 2006, agreed that the Company will seek approval from
its shareholders at the forthcoming Annual General Meeting for
these proposals:

     * renewal of the shareholders' mandate to enter into
       recurrent related party transactions of a revenue and
       trading nature; and

     * proposed Amendments to the company's Articles of
       Incorporation.

In this regard, a Circular to Shareholders containing the
information on the said Proposals will be issued and dispatched
to the shareholders of the Company in due course.

                       About Mithril Berhad

Headquartered in Kota Kinabalu, Malaysia, Mithril Berhad
-- http://www.mithril.com.my/-- manufactures bricks and
polyurethane products.  Its other activities include dealing and
distribution of bricks and building materials, development of
properties, property management and investment holding.

Mithril started to incur consecutive losses since its listing in
2002 and has so far failed to turn the business around.  For the
quarter ended March 31, 2006, the Company registered a net loss
of MYR1.5 million.  As of March 31, 2006, the Company registered
accumulated losses of MYR182 million.

As reported by the Troubled Company Reporter - Asia Pacific on
July 27, 2006, The Malaysia Rating Corporation Berhad affirmed
the BBB rating on Mithril Berhad's MYR59-million redeemable
Convertible secured loan stocks.  Furthermore, the rating agency
warned that the rating will be placed on MARCWatch with a
negative outlook.


MYCOM BERHAD: Enters Into Additional Restructuring Pacts
--------------------------------------------------------
Mycom Berhad has entered into further agreements with parties
involving part of the total debts to be restructured under the
Company's restructuring scheme.

On August 25, 2006, Mycom, Olympia Industries Berhad and Affin
Recoveries Berhad entered into a novation agreement wherein
Olympia will novate and transfer all its rights and obligations
under a letter of offer dated October 3, 1996, issued by Affin
Recoveries to Olympia granting the latter a revolving credit
facility of up to MYR5,000,000.

On even date, Mycom and Affin Recoveries entered into a
supplemental agreement to vary the terms of the Letter of Offer.
The principal amount together with any interest payable under
the facility to be restructured based on the cut-off date of
September 30, 1998, amounted to MYR5,331,337.  The amount will
be settled by Mycom through:

   -- the issuance of MYR5,331,337 nominal amount of 2006/2012
      Irredeemable Convertible Unsecured Loan Stocks to Affin
      Recoveries; and

   -- the issuance of 286,468 ordinary shares of MYR1 each in
      Mycom to Affin Recoveries as compensation for the
      low/zero interest/coupon rate in respect of the
      2006/2012 ICULS.

In addition, the accrued interest from October 1, 1998, onwards
will be waived by Affin Recoveries.

Furthermore, a novation agreement dated August 25, 2006, was
entered into between pacific Forest Industries Sdn Bhd, Mycom
and AmMerchant Bank Berhad wherein Pacific Forest will novate
and transfer all its rights and obligations under a letter of
offer dated September 24, 1996, issued by AmMerchant to Pacific
Forest granting the latter a revolving credit/bankers acceptance
facility of up to the maximum aggregate principal sum of
MYR5,000,000 to Mycom.

On even date, Mycom and AmMerchant entered into a supplemental
agreement to vary the terms of the Letter of Offer.  The
principal amount together with any interest payable under the
said facility to be restructured based on the cut-off date of
September 30, 1998, amounted to MYR3,094,501 and shall be
settled in full by Mycom through:

     * the issuance of MYR3,094,501 nominal amount of 2006/2012
       ICULS to AmMerchant; and

     * the issuance of 166,276 Mycom Shares to AmMerchant as
       compensation for the low/zero interest/coupon rate in
       respect of the 2006/2012 ICULS.

The accrued interest from October 1, 1998, onwards shall be
waived by AmMerchant.

Moreover, a supplemental agreement dated August 25, 2006, was
signed by Mycom and AmMerchant to vary the terms of a letter of
offer dated July 24, 1997, issued by AmMerchant to Mycom
granting Mycom a bank guarantee facility of up to the maximum
aggregate principal sum of MYR3,000,000.

The principal amount together with any interest payable under
the facility to be restructured based on the September 30, 1998
cut-off date amounted to MYR1,775,560 and shall be settled in
full by Mycom through:

     -- the issuance of MYRM1,775,560 nominal amount of
        2006/2012 ICULS to AmMerchant; and

     -- the issuance of 95,406 Mycom Shares to AmMerchant as
        compensation for the low/zero interest/coupon rate in
        respect of the 2006/2012 ICULS.

The accrued interest from October 1, 1998, onwards will be
waived by AmMerchant.

In addition to the novation and supplemental agreements, Mycom
also entered into:

     1) Trust Deed with Malaysian Trustees Berhad wherein
        Malaysia Trustees agreed to act as trustee for the
        benefit of the holders of the six years Redeemable
        Unsecured Loan Stocks amounting up to MYR60,315,280;

     2) Agency Agreement with Symphony Share Registrars Sdn Bhd
        and Malaysia Trustees whereby Symphony agreed to act as
        an issuing agent and paying agent in relation to the
        issue of the 2006/2012 RULS and payments under the
        2006/2012 RULS Trust Deed;

     3) Trust Deed wherein Malaysia Trsutees agreed to act as
        trustee for the benefit of the holders of the six years
        Irredeemable Convertible Bonds amounting up to
        MYR108,527,879;

     4) Agency Agreement with Symphony and Malaysia Trustees
        whereby Symphony agreed to act as an issuing agent and
        paying agent in relation to the issue of the 2006/2012
        ICB and payments under the 2006/2012 ICB Trust Deed;

     5) Trust Deed wherein Malaysia Trustees agreed to act as
        trustee for the benefit of the holders of the six years
        ICULS amounting up to MYR361,552,465;

     6) Agency Agreement with Symphony and Malaysia Trsutees
        whereby Symphony agreed to act as an issuing agent and
        paying agent in relation to the issue of the 2006/2012
        ICULS and payments under the 2006/2012 ICULS Trust
        Deed; and

     7) Deed Poll made by Mycom constituting 168,536,415
        warrants for an exercise period of 60 months.

                       About Mycom Berhad

Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad is engaged
in the provisions of granite quarry services, manufactures and
sells latex rubber thread, tape, plywood, laminated board and
sawn timber, cultivates oil palm fruits, and develops property.
The Company is also involved in hotel operation, provision of
management and financial services and investment holding.
Operations of the Group are carried out in Malaysia and South
Africa.

Mycom is in the advanced stage of negotiations to settle its
foreign debts.  The proposed capital reduction and consolidation
by Mycom, as well as the proposed share premium account
reduction will reduce the Company's accumulated losses.  As of
March 31, 2006, the Company registered accumulated losses of
MYR1,155,517,000. The Company's June 30, 2006, balance sheet
revealed total assets of MYR817,965,000 and total liabilities of
MYR1,351,772,000, resulting into a stockholders' deficit of
MYR521,083,000.


OLYMPIA INDUSTRIES: Inks More Restructuring Deals
-------------------------------------------------
On August 25, 2006, Olympia Industries Berhad signed further
agreements in respect of its restructuring scheme.

Olympia Industries entered into a novation agreement with Mycom
Berhad and Affin Recoveries Berhad wherein Olympia will novate
an transfer all its rights and obligations under a letter of
offer dated October 3, 1996, issued by Affin Recoveries to
Olympia Industries granting the latter a revolving credit
facility of up to the maximum aggregate principal sum of
MYR5,000,000 to Mycom.

The Company also inked a supplemental agreement with RHB Bank
Berhad to vary the terns of the letters of offer dated November
19, 1992, and December 2, 1993, both issued by RHB to Olympia
granting the latter credit facilities of up to the maximum
aggregate principal sum of MYR5,100,000 comprising of:

     -- an overdraft I facility of up to the maximum aggregate
        principal sum of MYR1,400,000;

     -- a letter of guarantee facility of up to the maximum
        aggregate principal sum of MYR100,000; and

     -- an overdraft II facility of up to the maximum aggregate
        principal sum of MYR3,600,000.

As of August 25, 2006, the letter of guarantee facility had been
withdrawn and cancelled by RHB.

The principal amount together with any interest payable under
the said facility to be restructured based on the cut-off date
of September 30, 1998, amounted to MYR4,317,157 and shall be
settled in full by Olympia through:

   -- the issuance of MYR4,317,157 nominal amount of 2006/2012
      Irredeemable Convertible Unsecured Loan Stocks to RHB;
      and

   -- the issuance of 231,972 ordinary shares of MYR1 each in
      Olympia to RHB as compensation for the low/zero
      interest/coupon rate in respect of the 2006/2012 ICULS.


The accrued interest from October 1, 1998, onwards will be
waived by RHB.

In addition, Olympia also entered into:

     -- a Trust Deed with Malaysian Trustees Berhad wherein the
        latter agreed to act as trustee for the benefit of the
        holders of the six years Redeemable Unsecured Loan
        Stocks amounting up to MYR137,124,246;

     -- an Agency Agreement with Symphony Share Registrars Sdn
        Bhd and Malaysia Trustees whereby Symphony agreed to act
        as an issuing agent and paying agent in relation to the
        issue of the 2006/2012 RULS and payments under the
        2006/2012 RULS Trust Deed;

     -- a Supplemental 2006/2012 Irredeemable Convertible Bonds
        Trust Deed dawith Malaysia Trsutees to vary, amend and
        supplement the terms and conditions of the 2006/2012 ICB
        Trust Deed dated May 24, 2006;

     -- a Supplemental 2006/2012 ICULS Trust Deed with Malaysia
        Trustees to vary, amend and supplement the terms and
        conditions of the 2006/2012 ICULS Trust Deed dated
        May 24, 2006; and

     -- a Deed Poll made by Olympia constituting 101,676,239
        warrants for an exercise period of 60 months.

                     About Olympia Industries

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

The company's June 30, 2006, balance sheet revealed a
stockholders' deficit of MYR1,041,766,000 resulting from total
liabilities of MYR2,035,268,000 exceeding total assets of
MYR1,001,289,000.


RENTOKIL INITIAL: Posts GBP562.8-Mln Equity Deficit at June 30
--------------------------------------------------------------
Rentokil Initial plc released its unaudited interim financial
results for the six months ended June 30, 2006.

Rentokil reported net profit of GBP134.7 million in the first
half of 2006 compared with net profit of GBP64 million in the
first of half of 2005.

In the first half of 2006, revenue from continuing businesses
grew by 10.5%, 3.5% of which was organic.  Revenue was higher
across all divisions other than textiles and washroom services
where it was flat.  Despite this, operating profit was down in
all divisions other than pest control and City Link, resulting
in group operating profit falling by 9.7%.

In the first half of 2006, adjusted operating profit fell by
9.6% at constant rates.  Profit before tax and amortization of
customer lists fell by 6.7%, benefiting from a lower interest
charge.

Statutory revenue (at actual exchange rates) increased by 11.1%
in the half to GBP1,018.6 million.  Statutory operating profit
fell by 10.0% to GBP121.9 million and statutory profit before
income tax of GBP102.1 million was 6.8% lower than last year.

Contract portfolio in the first half was up 5.4%, 1.2% of which
was organic.

Interim dividend for 2006 maintained at 2.13 pence per share.

At June 30, 2006, the Company's balance sheet showed GBP562.8
million in stockholders' deficit, compared with a GBP844.5
million stockholders' deficit at June 30, 2005.

Doug Flynn, Chief Executive Officer of Rentokil Initial, said
"The financial results for the first half are in line with our
expectations.  We have made progress against our priorities to
drive top line growth and improve customer retention.  We
continue to improve our strategic position in a number of
markets.

"In addition, we are giving much greater attention to
productivity and process improvement.  This will take us further
to achieving our sequential goals of firstly restarting revenue
growth, then stabilizing and increasing profits and finally
working towards margin expansion.

"As a result of current market and trading conditions in the
textiles and washroom services division, we have reduced our
full year profit expectations for that business.  We expect the
second half performance for textiles and washroom services to be
broadly flat with the first half.  We still expect our other
divisions to demonstrate improving profit trends during the
second half (before one-off items).  As a result of the
initiatives taken in 2005 and 2006, we anticipate that the group
will return to modest profit growth in 2007."

                     Operating Highlights

In the first half of the year, significant progress has been
made against these goals in some areas; customer retention in
continental European pest control has improved considerably and
similar improvements were achieved by European washroom and some
parts of Asia Pacific, particularly Malaysia.

                    Strategic Highlights

In the first half, the Company continued to provide clear
strategic focus and investment priorities within the group and
to build stronger strategic positions within our businesses.

The transformation of City Link progressed well during the half
and is now ahead of schedule.  This program involves the buy-
back and integration of franchisee-owned businesses and the
introduction of a new business model as we change from primarily
a franchisor to a fully integrated parcels business.

The Company has created a platform for growth in pest control in
the U.S. following the acquisition of JC Ehrlich on March 1.  A
further eighteen companies and businesses were also acquired
during the first half.

In Asia Pacific, a strong core management team is now in place,
which is allowing us to play a bigger and more dynamic role in
this high growth region.  Pink Healthcare was acquired at the
end of June, consolidating our position in the Australian
washroom market.  Other first half acquisitions include Lease-a-
plant, Akarana and Pest Free Service in New Zealand and Oki Dust
Mat in China.

The Company entered an agreement to acquire the CWS branded
washroom and dust mat businesses in Australia, Hong Kong, South
Korea, Malaysia, the Philippines and Singapore.

The U.K. linen and workwear business has been treated as
discontinued along with the U.K., Canadian, Belgian and the
United States manned guarding businesses.

U.K. linen and workwear was closed on April 30.  The sales of
the U.K., Canadian and Belgian manned guarding businesses were
completed during the first half for a gross consideration of
GBP105 million.

                      About Rentokil Initial

Headquartered in England, United Kingdom, Rentokil Initial PLC -
- http://www.rentokil-initial.com/-- is one of the largest
business services companies in the world, operating in all the
major economies of Europe, North America, Asia Pacific and
Africa.  The company has some 90,000 employees providing a range
of support services in over 40 countries.  In the Asia Pacific,
Rentokil operates in Australia, Hong Kong, South Korea, the
Philippines, Singapore and Malaysia.


SEAINS PTE: Enters Dissolution Proceedings
------------------------------------------
Seains Pte Limited was dissolved on August 26, 2006, pursuant to
Section 308 95) of the Companies Act.

The company was incorporated on May 15, 1980, as a private
company limited by shares. Its principal activity was general
insurance agent.

The company became dormant since 2002 after it ceased business
operations.


TENAGA NASIONAL: Lists and Quotes 4,859,464 New Shares
------------------------------------------------------
Tenaga Nasional Berhad's additional 4,859,464 new ordinary
shares of MYR1 each was granted listing and quotation on
August 29, 2006.

The new shared were issued pursuant to the company's employee's
share option scheme.

                     About Tenaga Nasional

Headquartered in Kuala Lumpur, Malaysia, Tenaga Nasional Berhad
-- http://www.tnb.com.my/-- is engaged in the generation,
transmission, distribution and sale of electricity.  The Company
also manufactures, sells and repairs transformers and
switchgears.  It is also involved in provision of project
management, consultancy, engineering works, contracting,
trading, risk management, risk surveys, insurance, research and
development, property management, energy project development and
investment holding services.  It also undertakes repairs and
maintenance of motor vehicles.  The Group operates in Malaysia
and Mauritius.

The Company is currently undertaking liability management
exercises, which are expected to extend the Company's debt
maturity profile and reduce refinancing risk.

Moody's gave the Company a 'Ba' rating due to the Company's
relatively high financial leverage and significant PPA
obligations.


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

ARANETA PROPERTIES: To Hold ASM on October 6, 2006
--------------------------------------------------
In a filing with the Philippine Stock Exchange Commission,
Araneta Properties, Inc., advises that its Annual Stockholders'
Meeting for 2006 has been set by the Board of Directors on
October 6, 2006, and the record date of the stockholders
entitled to vote on the meeting will be September 12, 2006.

                     About Araneta Properties

Araneta Properties, Inc., formerly known as Integrated Chrome
Corporation, was originally organized to mine chrome ore and
produce ferros metal or commonly known as ferrochrome.  It
changed its name to its present one and changed its primary
purpose to that of land and property development in 1997 with
the entry of the Araneta Group.  With its diversification to the
property development business, it relegated its original primary
purpose to that of a secondary concern.  ARA is now engaged in
the fine-tuning of a master plan for the development of 1,500
hectares of land located in the municipality of San Jose del
Monte, Bulacan, and Caloocan City.

J. Carlitos G. Cruz, of Sycip Gorres Velayo & Company raised
significant doubt on Araneta Properties' ability to continue as
a going concern, noting that the Company has incurred a net loss
of PHP22.9 million in 2005 and PHP55.9 million in 2004, and has
a deficit of PHP651.3 million  as of December 31, 2005, and
PHP626.6 million as of December 31, 2004.

According to Mr. Cruz, the Company's ability to continue as a
going concern depends on the successful development and
completion of its real estate for sale and development asset and
their subsequent sale at reasonable margins.

The Troubled Company Reporter - Asia Pacific reported on June 9,
2006, that the company posted a PHP15.91-million net loss for
the first quarter ending March 31, 2006, an 8.75% increase from
the previous corresponding period's net loss of PHP14.63
million.


EXPORT INDUSTRY BANK: Board Appoints Three Senior Officers
----------------------------------------------------------
At a meeting on August 25, 2006, the Board of Export and
Industry Bank noted the termination of then First Vice President
Amelia Z. Isaac, effective July 31, 2006.

The Board likewise approved the appointment of three senior
officers:

         Officer                    Position
         -------                    --------
Juan Victor S. Tanjuatco    Head, Sales & Customer Relationship
                            Management Sector

Edna Daguinsin-Reyes        Chief Compliance Officer

Joseph Gerard D. Tiamson    Head, Business Center Management
                            Group, Service Delivery & Management
                            Sector

                       About ExportBank

Headquartered in Makati City, Manila, Export and Industry Bank
-- http://exportbank.com.ph/-- has 50 branches and has revived
former Urban Bank unit under new names.  Its principal activity
is the provision of commercial banking services such as deposit
taking, loans and trade finance, domestic and foreign fund
transfers, treasury, foreign exchange and trust services.  The
Bank is saddled with the PHP10 billion non-performing assets it
inherited from Urban Bank when the two banks merged in 2002.

The TCR-AP reported on May 10, 2006, that Exportbank is
scheduled to complete a rehabilitation program, which was
proposed in order to reverse a 2005 net loss of PHP1.66 million,
by 2007.

In an agreement dated December 29, 2005, the Philippine Deposit
Insurance Corp. will extend annual financial aid of PHP600
million to the Bank.


APEX MINING: Resets ASM to November 8 & Defers Annual Meeting
-------------------------------------------------------------
Apex Mining Company, Inc.'s Annual Stockholders' Meeting, which
was earlier postponed from June 28, 2006, as per By-Laws to
September 27, 2006, is further reset to November 8, 2006, at
9:00 a.m., at the Valle Verde Country Club in Pasig City.

In addition to the reasons cited in the first postponement, the
company is deferring the Annual Meeting because there are still
shares of the Puyat Group that are not yet transferred as of
this date to the new owners, Mapula Creek Gold Corporation and
Crew Gold Corporation and are still pending issuance of
Certificate of Registration from the BIR.

As reported in the Troubled Company Reporter - Asia Pacific on
May 11, 2006, Apex Mining moved its annual stockholders'
meeting, initially scheduled on June 28, 2006, to September 27,
to:

   * enable the company to complete its ongoing reorganization,
     pursuant to the acquisition of a major stake by Crew Gold
     Corporation and Mapula Creek Gold Corporation last year;

   * give the Company enough time to prepare and distribute the
     necessary printed material relating to the meeting.

                      About Apex Mining

Apex Mining Company, Inc., is majority-owned by Norwegian firm
Crew Gold Corporation, which is based in the United Kingdom.  It
owns the Masara gold mine in Compostela Valley on the island of
Mindanao.  Apex Mining is a corporation that is principally
engaged in the business of mining gold, silver, copper, lead,
and other precious metals.  The Company was initially involved
in copper mining and shifted to gold mining in the late 70s when
copper prices started to plummet.

The Company's Operations were suspended on March 16, 2000, up to
the present.  However, a mine rehabilitation program was
implemented starting July 2000 to re-access the measured ore
blocks located at level 850 and level 930.  There is a pending
negotiation for a joint venture with Argonuat Mining Co., Inc.,
at 3780 Kilroy Airport Way, Suite 200, in Long Beach,
California.  However, the current peace and order situation in
Mindanao has delayed the transaction.


METRO PACIFIC: Requests Nine-Day Shares Trading Suspension
----------------------------------------------------------
In connection with the approval by the Board of Directors and
stockholders of Metro Pacific Corporation of the decrease in its
authorized capital stock from:

   -- PHP30,000,000,000 divided into 29,000,000,000 common
      shares, 997,500,000 Preferred-"Series 1" and 2,500,000
      Preferred-"Series 2" shares all with a par value of PHP1
      per share,

   to:

   -- PHP1,500,000,000 divided into 1,450,000,000 common shares,
      49,875,000 Preferred-"Series 1" and 125,000 Preferred-
      "Series 2" shares all with the par value of PHP1 per
      share,

the company advises that on August 23, 2006, the Securities and
Exchange Commission also approved it.

Accordingly, the Certificate of a Decrease of Capital Stock, as
well as the Certificate of Filing of the Amended Articles of
Incorporation were issued.

In this regard, Metro Pacific requests for a voluntary nine-day
suspension in the trading of its shares, from August 29, 2006,
through September 8, 2006, so that the investing public may
sufficiently absorb this information and to enable them to
complete the process for updating their stock certificates.

                          *     *     *

Metro Pacific Corporation -- http://www.metropacific.com/-- is
the flagship publicly listed investment and management company
of the First Pacific Group in the Philippines.  The Company,
which was formerly known as Metro Drug, Inc., has since then
evolved from a pharmaceutical and consumer products distribution
company into one of the country's leading corporations.

Metro Pacific has these significant subsidiaries:

   * Landco, Inc.
   * Metro Tagaytay Land Co. Inc.
   * Negros Navigation Co. Inc.
   * Lucena Commercial Land Corporation
   * First Pacific Realty Partners Corporation
   * Landco Pacific Centers, Inc.

As reported in the Troubled Company Reporter - Asia Pacific on
June 28, 2006, Marydith C. Miguel, of Sycip Gorres Velayo & Co.,
raised significant doubts on MPC's ability to continue as a
going concern after auditing the Company's annual report for the
period ended December 31, 2005.

Ms. Miguel noted in the auditors report that MPC suffered
significant losses in prior years leading to its inability to
meet its maturing obligations, on principal and interest, to
certain third-party lenders and to a related company.  Although
the Company has generated a PHP194.26-million net income
attributable to equity holders for the year ended December 31,
2005, it continues to reflect a deficit of PHP27.5 billion as of
December 31, 2005, due to prior year's accumulated losses.

In response, the company continues to implement measures geared
towards generating liquidity to meet maturing obligations and
profitability, including debt rehabilitation activities and a
capital restructuring plan.


MIRANT CORP: Quezon Province Demands Payment of PHP4.12Bln RPT
--------------------------------------------------------------
In a warrant of levy issued by the Quezon municipal and
provincial treasurers' offices, the local governments of Quezon
want Mirant Philippines to pay PHP4.12 billion in unpaid real
property taxes for its usage of the 735-megawatt Pagbilao coal-
fired plant, Niel V. Mugas of The Manila Times reports.

Mirant Philippines, as reflected in the warrant of levy, has
been "delinquent" in paying its RPT since 1997 up to the
present, leading to the PHP4.12 billion in unpaid tax
obligation, the report says, noting that failure to pay may lead
to a levy of Mirant's assets -- the Pagbilao coal plant.

According to The Manila Times, local governments have the power
to levy capital equipments of a plant in case its operator fails
to settle tax obligations.

Independent power producers supplying power to the National
Power Corp. are required to pay RPT under Section 258 of the
local government code, the paper relates.

The paper discloses that host provinces collect about 40% of the
RPT while 35% goes to the municipality in which the plant is
located.  The remaining 25% goes to the host barangay.

The Manila Times recounts that a previous ruling of the Court of
Tax Appeals asserted that since Napocor IPPs currently operate
the plant, they are party-in-interest to be levied the RPTs due
to their host LGUs.  By invoking the rulings, local government
units could collect previous taxes since the start of the
commercial operation of a plant, the paper adds.

The Manila Times cites a 2005 report in which the Philippine IPP
Association claimed that the issue on real property taxes will
affect 35 Napocor IPPs and the estimated taxes to be collected
would amount to at least PHP7 billion based on initial
computations.

The pending issue of RPT on Mirant's Pagbilao facility may serve
as an additional factor to the delay in the sale of its
Philippine assets, The Manila Times notes.

                          About Mirant

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 $20,574,000,000 in
assets and $11,401,000,000 in debts.  The Debtors emerged from
bankruptcy on Jan. 3, 2006.

                           *     *     *

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.


MIRANT CORP: Gregorys Want Sugar Creek's $42-Mil. Claims Allowed
----------------------------------------------------------------
Vernon J. Gregory and Sandra Jolene Gregory filed in 2004 four
proofs of claim against Mirant Corp. and its debtor-affiliates
for US$21,000,000 each:

    Debtor                                Claim No.
    ------                                ---------
    Mirant Corporation                      7994
    Mirant Sugar Creek, L.L.C.              7991
    Mirant Sugar Creek Ventures, Inc.       7992
    Mirant Sugar Creek Holdings, Inc.       7993

The Debtors objected to the Gregorys' Claims, but later withdrew
their Objection.

On October 26, 2005, Mirant sought and obtained a Court order
lifting the automatic stay to allow liquidation of the Gregorys'
Claims in a court of appropriate jurisdiction.

For the purpose of voting to accept or reject the Debtors' Plan
and for objecting to the Plan's confirmation, Judge Lynn
temporarily allowed Claim No. 7994 as a general unsecured claim
for US$21,000,000.

Pursuant to the Bankruptcy Court's Order, the Gregorys filed a
civil lawsuit against the four Mirant Debtors in the U.S.
District Court of the Southern District of Indiana.

While preparing service of process, the Gregorys were informed
by Jay Wilson, Mirant's registered agent, that service was not
permitted for Mirant Sugar Creek Ventures and Mirant Sugar Creek
Holdings because the two entities were merged into Mirant
Americas, Inc., and no longer exist.  Mr. Wilson, instead,
advised the Gregorys to amend the complaint against Mirant
Americas.

The Gregorys responded that they do not have a claim against
Mirant Americas, and they cannot simply amend their complaint.

Paul J. Castronovo, Esq., in Hoffman Estates, Illinois, explains
that a motion to amend the Gregorys' civil complaint naming
Mirant Americas as a defendant, in its capacity as a successor-
in-interest to Mirant Sugar Creek Ventures and Mirant Sugar
Creek Holdings, must:

    * be based on a Bankruptcy Court order; and

    * not violate the Plan's discharge injunctions and Section
      524(a)(2) of the Bankruptcy Code.

Mr. Castronovo asserts that the Debtors committed a fraudulent
act by not disclosing the mergers, and breached the Confirmation
Order.  As a result, the Gregorys cannot liquidate their claims
against entities that no longer existed.

The Gregorys ask Judge Lynn to:

   (a) allow Claim No. 7992 against Mirant Sugar Creek Ventures
       and Claim No. 7993 against Mirant Sugar Creek Holdings
       for US$21,000,000 each; and

   (b) direct the Reorganized Debtors' disbursing agent to make
       the distributions.

Mr. Castronovo says the Gregorys have obtained prima facie
status for the validity of their Claims and amount of each
Claim.

                          About Mirant

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 $20,574,000,000 in
assets and $11,401,000,000 in debts.  The Debtors emerged from
bankruptcy on Jan. 3, 2006.

                           *     *     *

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.


MIRANT CORP: Lovett Unit Gets Court Approval on NY DEC Order
------------------------------------------------------------
Mirant Lovett, LLC, a Mirant Corporation debtor-affiliate, owns
and operates the Lovett Coal Ash Management Facility located in
the town of Stony Point, New York.  Mirant Lovett purchased the
Lovett Coal Ash Facility from Orange and Rockland Utilities,
Inc.

In May 2005, the New York Department of Environmental
Conservation served an administrative Notice of Hearing and
Complaint on Mirant Lovett and Mirant New York, Inc., regarding
the Lovett Coal Ash Facility.

The DEC has the authority to enforce New York's environmental
laws, and has jurisdiction over the operation and closure of
solid waste management facilities.

The DEC Complaint alleged, among other things, that Mirant
Lovett failed to perform certain investigation and remediation
or restoration measures at the Lovett Coal Ash Facility in
compliance with New York's Department of Environmental
Conservation Rules and Regulations.

Based on the allegations in the DEC Complaint, Mirant Lovett
estimated that the cost of compliance with Title 6 Part 360 of
the New York Conservation Rules and Regulations will be more
than US$1,000,000.

Additionally, the DEC may impose certain penalties for violation
of the NYCRR of up to US$7,500 plus US$1,500 per day, for each
violation of any rule or regulation promulgated or order issued.
The DEC Complaint sought a US$100,000 penalty against Mirant
Lovett.

New York and the DEC filed administrative claims against the New
York Debtors, including claims against Mirant Lovett in
connection with the Lovett Coal Ash Facility under Section
503(b)
of the Bankruptcy Code.

In late May 2006, Mirant Lovett and the DEC entered into a
preliminary Consent Order resolving the administrative expense
claims asserted against the Lovett Coal Ash Facility.

The Honorable Michael D. Lynn of the approved the Order on
Consent and Compliance Schedule entered into with the Department
of Environmental Conservation dated June 2, 2006.

A full-text copy of the Consent Order between Mirant Lovett and
the New York DEC is available for free at

               http://ResearchArchives.com/t/s?d27

The salient terms of the Consent Order and Compliance Schedule
are:

   (a) Mirant Lovett will pay a US$20,000 penalty to the DEC.
       Upon payment of US$5,000 of the US$20,000, the
       requirement to pay the remaining US$15,000 will be
       suspended if Mirant Lovett meets the terms of the Consent
       Order;

   (b) The Consent Order will not constitute an admission of any
       violation alleged in the DEC Complaint or Consent Order;

   (c) Mirant Lovett's compliance with the Consent Order
       releases and satisfies its obligations to the DEC under
       the Complaint and Consent Order.  However, that
       compliance does not satisfy Mirant Lovett's prospective
       obligations to the DEC;

   (d) In accordance with a DEC-approved schedule, Mirant Lovett
       will complete the construction or repair requirements of
       the "Cap Stabilization Plan" in accordance with the DEC's
       reasonable satisfaction; and

  (e) The Compliance Schedule requires Mirant Lovett to, among
      others:

      i. continue to hold US$4,200,000 in an escrow account with
         Deutsche Bank Trust Company; and

     ii. install certain flow meters and submit a revised Cap
         Stabilization Plan.

                          About Mirant

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 $20,574,000,000 in
assets and $11,401,000,000 in debts.  The Debtors emerged from
bankruptcy on Jan. 3, 2006.

                          *     *     *

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.


PHIL. NATIONAL CONSTRUCTION: Submits Turnaround Plan to the SC
--------------------------------------------------------------
Philippine National Construction Corporation informs the
Philippine Stock Exchange that it has submitted a Joint Motion
for Judgment Based On Compromise to the Supreme Court as part of
the company's total restructuring plan where it projects a net
income of about PHP200 million in 2007 after suffering income
losses for the past 30 years of its franchise period.

The projected financial turnaround will be achieved by a
combination of measures in total corporate restructuring,
particularly reduction of debt, resolution of long standing
legal cases, drastic right sizing of the organization, and
reduction in corporate expenses.

The plan covers:

   1. Debt Settlement

      (a) Philippine National Bank -- PNCC owes PNB
          PHP2.4 billion, the interest of which have resulted in
          audited net income losses.  The PNCC is now in an
          advanced state of negotiations with PNB to finally
          resolve six years of arrearages.  The settlement will
          result in substantial reduction in debt and interest
          charges;

      (b) Radstock Securities -- The PNCC has also asked the
          Supreme Court for an approval of its settlement with
          Radstock stemming from the Regional Trial Court of
          Mandaluyong decision to award Radstock PHP13 billion
          in 2002 plus interest;

      (c) Bureau of Treasury -- The PNCC has proposed a long
          term restructuring of its PHP5.6 billion obligation to
          the Bureau of Treasury;

   2. Organizational right-sizing

      This is in line with PNCC's program to phase out
      unprofitable divisions and service lines and stick to the
      core business of developing tollways.

   3. Franchise extension

      The PNCC is currently requesting Congress for a 25-year
      extension of its Franchise to develop more tollroads and
      arterial linkages from Carmen, Pangasinan to Lucena,
      Quezon.

This financial turnaround will benefit not only the National
Government and the government corporations, which own
approximately 90% of the company, but likewise with an estimated
5,000 public shareholders.

               About Phil. National Construction

Headquartered in Mandaluyong City, Philippine National
Construction Corporation -- http://www.pnccweb.net/-- is a
government-owned and controlled corporation whose principal
business activities include construction, real estate
development, and operation and maintenance of the North and
South Luzon Tollways.  It is the government's main partner in
infrastructure development and construction projects.  Also, it
is the sole operator and franchise-holder of the North and South
Luzon Tollways and has entered into several joint venture
agreements to upgrade and expand said expressways.  Among the
construction projects that are in its pipeline are the Rizal
Avenue Bridge, the DENR Environment Center, the Central Business
Park Package 1 (SM Project), and SLT Rehab (Nichols-Alabang).
The Company's revenues are derived mostly from construction
projects and the collection of tollway fees.

The Troubled Company Reporter - Asia Pacific reported on May 31,
2006, that the company posted a net loss for the three months
ended March 31, 2006, equal to PHP508.26 million -- PHP136.73
million or 21.20% lower than the PHP644.99 million loss recorded
in the corresponding period in 2005.

The TCR-AP also noted that the company is involved in continuing
litigations relating to labor and civil cases.  Both the
management and its legal counsels believe that the final
resolutions of these claims will have a material effect on the
company's financial position, the TCR-AP said.


* BSP Considers Policy Rate Cut for 2007
----------------------------------------
The Bangko Sentral ng Pilipinas may consider cutting the
overnight borrowing rate if inflation comes within the 4%-5%
target, Malaya News reports.

According to the report, BSP Governor Amando Tetangco Jr. said
that if that trend is "well established" and "risks have clearly
subsided," BSP may consider cutting the policy rate, which would
lower the cost of borrowing funds.

The paper notes that the BSP is ruling out any downward
adjustment in the rate this year -- on which banks' prime
lending rates are based -- because inflation still hovers above
target.

Malaya cites another BSP official as saying that it is premature
to think of reducing the rate this year because policy changes
have 15-21 months lag.  Thus, the decision must consider what
may take place when the rate cut takes effect.

Other variables to be considered include oil prices and demand
pressures, which impact on prices as well as the peso-dollar
exchange rate, Malaya says.

"You can't cut the rate if the exchange rate is at 56 for
instance, which is inflationary," the paper cites the official,
as saying.

Malaya recounts that the BSP raised its overnight borrowing rate
by three quarter-percentage points in April, September, and
October last year to contain rising inflation.

The rate now stands at 7.5%, the paper notes.

Malaya says that though domestic policy rates have decoupled
from the Fed rate, easing inflationary pressures in the U.S.
will keep the rate unchanged in the near term and provide less
trigger for interest rate hikes.

The BSP expects 6.9%-7% rise in consumer prices this year
breaching the target but sees inflation falling within 4%-5% in
2007, Malaya notes.


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

ADVANCED SYSTEMS: Director Steps Aside
--------------------------------------
Joseph Au Sai Chuen eased to act as director of Advanced Systems
Automation Limited on August 28, 2006.

                  About Advanced Systems

Advanced Systems Automation Limited -- http://www.asa.com.sg-
is a Singapore-based company that is engaged in the design and
manufacture of automatic molding machines and other back-ended
assembly equipment for the semiconductor industry. The company's
subsidiaries include Avalon Technology Pte. Ltd.; Microfits Pte.
Ltd.; Beijing Microfits Precision Electronics Engineering Co.,
Ltd. and Beijing Advanced Precision Electronics Engineering Co.,
Ltd., both of which are engaged in the manufacture of precision
tools, dies and moulds; Acetech Solutions Ltd.; Advanced Systems
Automation, Inc., and Advanced Systems Automation (Europe)
Limited, which is engaged in the sale and provision of services
to the European semiconductor manufacturing market.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
August 8, 2006, auditors Ernst & Young reported in the company's
Annual Report that, "The group has incurred significant losses
and has been experiencing severe cash shortage in the past four
financial years. The group incurred a net loss of SGD3.4 million
for the financial year ended March 31, 2006, and the group's and
the company's current liabilities exceeded current assets by
SGD20.9 million and SGD22.9 million respectively. As of March
31, 2006, the group and the company were in net shareholders'
deficit positions of SGD13.8 million and SGD11.2 million
respectively.  These matters described above indicate the
existence of a material uncertainty, which may cast significant
doubt about the group and company's ability to continue as going
concerns.

"Ernst and Young adds that the ability of the group and the
company to continue as going concern is dependent on the
completion of the proposed renounceable rights issue, disposal
of non-core assets and business restructuring.


ANANDA TRAVEL: Faces Wind-Up Proceedings
----------------------------------------
Ananda Travel (Singapore) Pte Limited is facing a wind-up
petition filed by Asatsu-Dk Singapore Pte on August 18, 2006.

The liquidator can be reached at:

         Don Ho Mun-Tuke
         Don Ho & Associates
         20 Cecil Street
         #12-02/03 Equity Plaza
         Singapore 049705


GETRONICS NV: Concludes Sale of Units to Kapsch
-----------------------------------------------
Getronics announces that the sale of its operations in Austria,
the Czech Republic, Slovakia and Poland to the Kapsch Group has
been successfully concluded following all due regulatory checks.

The sale will result in Kapsch becoming a strategic business
partner for Getronics in the region, through which Getronics
will continue to ensure the continued high level of service to
its international clients in those countries.

Getronics and Kapsch Group -- a family-owned specialist Austrian
Communications and Information Technology company -- signed an
agreement in June 2006 under which Kapsch will acquire the
business activities of Getronics in Austria, the Czech Republic,
Slovakia and Poland.  Getronics will continue to maintain a
strong presence in the region through its Global Service Centre
in Budapest.

Furthermore, the business assets and liabilities of Getronics
Austria, and all shares in Getronics Czech Republic, Slovakia
and Poland will be transferred to Kapsch.  The agreement,
conditional upon regulatory (anti-trust) procedures, is expected
to close by mid-September 2006.  The deal is proceeding in full
accordance with all relevant laws and regulations.

The decision to sell Getronics' operations in Austria, the Czech
Republic, Slovakia and Poland was the result of a thorough
strategic review of the company's operations in late 2005.
Early in 2006, Getronics, assisted by KPMG Corporate Finance,
began looking for a suitable strategic business partner in the
region.  Kapsch was selected because of its excellent reputation
and the considerable potential synergies arising from the deal.

By acquiring Getronics' Austrian, Czech, Slovak and Polish
operations, Kapsch will be able to expand its presence in the
ICT market, leveraging the high quality ICT services delivery
capabilities and the skilled personnel of the Getronics
operation and its coverage in the region.  This deal enables
Getronics to focus on strengthening and expanding its core
businesses worldwide while continuing to provide the same high
levels of service to its international clients in the Austrian,
Czech, Slovak and Polish markets through its strategic business
partner and its Global Service Centres.

Getronics' Hungarian operations and, in particular, its Global
Service Center in Budapest will continue to play an important
role in Getronics' global operations and will remain a key hub
for servicing its clients in Eastern Europe and the rest of the
world.  Getronics' Austrian, Czech and Polish operations employ
approximately 270 people and had a turnover in 2005 of
approximately EUR45million.

                      About Getronics

Headquartered in Amsterdam, Netherlands, Getronics N.V.
-- http://www.getronics.com/-- designs, integrates and manages
ICT infrastructures and business solutions for many of the
world's largest global and local companies and organizations,
helping them maximize the value of their information technology
investments.  Getronics has some 27,000 employees in over 30
countries and approximate revenues of EUR3 billion.  The company
has regional offices in Boston, Madrid and Singapore.  Its
shares are traded on Euronext Amsterdam.

                        *     *     *

As reported in Troubled Company Reporter - Asia Pacific
Getronics N.V.'s 'B' long-term corporate credit rating, along
with the 'CCC+' senior unsecured debt, 'B' bank loan, and '3'
recovery ratings on CreditWatch with negative implications,
where they had originally been placed on Jan. 19.

The '3' recovery rating indicates Standard & Poor's expectation
of meaningful (50%-80%) recovery of principal for secured
lenders in the event of a payment default.

As reported in TCR-AP, Moody's Investors Service downgraded
Getronics' corporate family rating to B2 from B1 and placed the
ratings on review for possible downgrade following the company's
announcement of half year results showing a widening of net
losses and fall in margins below the company's expectations.
Concurrently the rating on the EUR100 million senior unsecured
convertible Dutch bonds due 2008 has been downgraded to Caa1
from B3.


INTERNATIONAL DRILLING: Creditors' Proofs of Debt Due on Sept. 8
----------------------------------------------------------------
International Drilling Supply Pte Ltd notifies parties-in-
interest of its intention to declare dividend to creditors.

In order to share in the company's dividend distribution,
creditors are required to submit their proofs of debt by
September 8, 2006, to Official Receiver.

The Official Receiver can be reached at:

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


JIN-WEN INVESTMENT: Creditors' Meeting Slated for September 8
-------------------------------------------------------------
The creditors of Jin-Wen Investment Ltd will hold a meeting on
September 8, 2006, at 10:00 a.m.

At the meeting, creditors will be asked to:

   -- consider the appointment of a Committee of Inspection;

   -- nominate and authorize a member of the COI and the
      liquidator to open or close and operate one or more
      bank accounts or close any existing bank accounts. All
      bank accounts will be jointly operated by the nominated
      COI member and the Liquidator; and

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

The liquidator can be reached at:

         Lau Chin Huat
         c/o Blk 150A Mei Chin Road #02-00
         Singapore 140150


REFCO INC: Chapter 7 Trustee Authorized to Wind Down Subsidiary
---------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York gave Albert Togut, the Chapter 7 trustee for Refco,
LLC's estate, authority to complete a wind-down and dissolution
of Refco Trading Services, LLC's business operations in
accordance with Delaware laws.

As reported in the Troubled Company Reporter on Aug. 4, 2006,
Refco Trading was formed in 2003 when Refco, Inc., acquired
United Kingdom-based MacFutures, a day-trading business engaging
in commodity futures and options.

Refco Trading followed a similar model to MacFutures and became
Refco LLC's proprietary trading subsidiary.  Most Refco Trading
employees traded using accounts funded by Refco LLC, and only a
few workers had any customer accounts.

Like the Refco Trading proprietary accounts, any third-party
customer accounts were settled on a daily basis to the extent
that the business day would rarely, if ever, end with Refco
Trading having any open trade positions, Scott E. Ratner, Esq.,
at Togut, Segal & Segal LLP, in New York, relates.

Before the Petition Date, Refco Trading had over 100 employees
and business operations in Montreal, Canada; Chicago, Illinois;
and Miami, Florida.  Refco Trading hired employees, trained them
using a proprietary training system, and provided an account
with which to trade. Most of the employees were paid a flat
salary and traded on an account that was settled on a daily
basis.

The traders also received profit percentages of successful
trades as additional remuneration.  Consistent with their
Acquisition Agreement, Man Financial, Inc., has hired most or
all of Refco Trading's former employees.

Refco Trading ceased all trading operations after the Petition
Date.

Refco Trading currently holds approximately US$1,600,000 in
cash.  The company's liabilities are uncertain, but Mr. Togut
believes that there may be intercompany obligations.  Refco
Trading participated in an intercompany cash management system
that paid the company's obligations to outside sources and
repaid the obligations with intercompany receivables.  Mr. Togut
also believes that there may be liabilities to Canadian taxing
authorities.

Specifically, Mr. Togut proposes to direct certain actions as
are necessary and appropriate to Refco Trading's dissolution and
wind-down, including:

   (a) preparation of accounting reports, statements of receipts
       and disbursements and income statements;

   (b) preparation, signing, and filing of any tax returns in
       the United States or Canada;

   (c) appearances before any governmental authority as may be
       necessary to effectuate a legal wind-down;

   (d) adjudication and resolution of any claims asserted
       against Refco Trading and authorization for payment of
       any allowed claims from Refco Trading's assets to the
       extent required by law; and

   (e) performing any other related tasks as may be necessary to
       effectuate a proper and legal wind-down and dissolution.

Mr. Togut also seeks to pay, without further Court order, all
necessary costs and expenses incurred in connection with the
wind-down, provided that any payments will be made from Refco
Trading's assets, and not those of Refco LLC's estate.

Furthermore, Mr. Togut asks Judge Drain for qualified immunity
from personal liability for his actions in furtherance of Refco
Trading's wind-down.

According to Mr. Togut, Refco LLC's ownership interest in Refco
Trading is an asset of its Chapter 7 estate.  To the extent that
Refco Trading is solvent, its remaining assets will inure to
dissolution pursuant to Delaware laws is consistent with Mr.
Togut's duty to "collect and reduce to money the property of the
estate" under Section 704(a)(1) of the Bankruptcy Code.

Considering that the scope of Refco Trading's assets and
liabilities are unknown, Mr. Togut insists that he must wind
down Refco Trading to determine whether there are any residual
assets that will flow to Refco LLC's estate.

                         About Refco Inc.

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

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

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

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

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


REFCO INC: Court Approval on Document Sharing Pact Sought
---------------------------------------------------------
Refco, Inc., and its debtor-affiliates and Man Financial Inc.
entered into an acquisition agreement, dated as of November 13,
2005, and related buyer transition services agreement and seller
transition services agreement, in connection with the sale of
Refco, LLC's futures commission merchant business to Man.

The Court's orders authorizing the Debtors to enter into the
Acquisition Agreement and the Transition Services Agreements
establish obligations and procedures relating to Man and Albert
Togut, the Chapter 7 trustee overseeing the liquidation of Refco
LLC's estate, to obtain access to data, information and
documents held by the other party relating to Refco LLC's
business purchased by Man.

Since the closing of the Sale, both the Refco LLC Trustee and
Man have followed the protocol established by the Transition
Services Agreements, and have reached other informal protocols,
to obtain access to data, information and documents held by the
other party, and both parties anticipate that they will continue
to need access for the foreseeable future.

The Transition Services Agreements are due to expire by their
terms on Aug. 22, 2006 -- 270 days after the closing of the Sale
on Nov. 25, 2005.

Mr. Togut and Man have negotiated a more permanent arrangement
for the parties to gain access to data, information and
documents in the possession of the other party after the
expiration of the Transition Services Agreements, and to
formalize the protocols under which the parties have been
operating.

Mr. Togut seeks the Court's authority to enter into a facilities
management agreement with Man.

The salient terms of the Facilities Management Agreement are:

   (a) The Trustee will maintain documents and other information
       relating to Refco LLC's business prior to the Sale
       closing that were not part of the Acquired Assets and are
       in the possession or control of the Trustee, through the
       earlier of:

          (i) the date the Court enters an order or final decree
              closing Refco LLC's case;

         (ii) the date an Other Termination Event occurs; or

        (iii) the date the Court enters an order otherwise
              terminating the parties' obligations under the
              Facilities Management Agreement;

   (b) The Trustee will provide Man access to the Refco Records
       for:

          (i) the purpose of Man responding to any Information
              Request directed to Man;

         (ii) any other purpose reasonably related to Man's
              operation of the business and assets acquired from
              Refco LLC and its affiliates.  The Trustee will
              retrieve and provide to Man electronically copies
              of Refco e-mail upon written request from Man.

   (c) Man will maintain documents and other information
       relating to Refco LLC's business that were part of the
       Acquired Assets and are in the possession or control of
       Man through the Termination Date;

   (d) Man will provide the Trustee access to the Man Records
       for purposes of the Trustee:

          (i) responding to any Information Request directed to
              the Trustee or Refco LLC; or

         (ii) otherwise accessing, reviewing, retrieving or
              photocopying Man Records as the Trustee determines
              is necessary; and

   (e) Man will provide "Information Retrieval Services" to the
       Trustee to enable him to:

          (i) respond to any Information Request directed to the
              Trustee or Refco LLC; or

         (ii) otherwise access, review, retrieve or photocopy
              Records as the Trustee determines is necessary.

Each party will bear its own costs in obtaining access to the
party's Records.  However, Refco LLC will reimburse Man for the
costs arising from Man's employees or independent contractors
performing Information Retrieval Services at the effective
hourly rates of the employees or contractors performing those
services.

Man will reimburse Refco LLC for costs arising from the Chapter
7 Debtor's employees retrieving and providing electronic copies
to Man of Refco E-mail at the effective hourly rates of the
employees performing those services.

Jerry L. Switzer, Esq., at Jenner & Block LLP, in Chicago,
Illinois, explains that the Refco LLC Trustee will require
access to the Records for purposes of responding to Information
Requests served on the Trustee or Refco LLC, and otherwise
administering the Chapter 7 Debtor's estate for the foreseeable
future.

Mr. Switzer notes that Mr. Togut needs Man to perform the
Information Retrieval Services because Refco LLC no longer has
any employees, except to the limited extent that employees of
the Chapter 11 Debtors are allocated on a part time basis to the
Chapter 7 Debtor.

                      About Refco Inc.

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

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

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

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

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


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

BANGKOK BANK: Moody's Lifts Financial Strength Rating to D+
-----------------------------------------------------------
Moody's Investors Service has upgraded on August 29, 2006,
Bangkok Bank's bank financial strength rating to D+ from D.  The
bank's debt and deposit ratings are unaffected.  The outlook for
all ratings is stable.  The upgrade concludes the revision in
the outlook for BBL to positive from stable.

"The upgrade of the BFSR reflects BBL's healthy capital base,
improvements in credit quality, and increases in profitability,"
says Leo Wah, a Moody's Assistant Vice President/Analyst.

Moody's considers both BBL's regulatory and economic capital
base as satisfactory.  Thanks to the reduction in non-performing
loans -- from 25.8% at end-2002 to the current level 11.3% --
and the recovery in profitability, the bank has built up its
capital base, leading to more than a tripling of its capital
since 2001.

As such, BBL's regulatory capital level, including the core
Tier-1 portion, remains acceptable despite the moderate increase
in loans in recent years.  Based on Moody's estimates, it also
possesses satisfactory economic capital -- adjusted for possible
additional loan losses --, and which would support not only the
expansion in its loan book but also provide a cushion against
any rapid rise in NPL.  But the latter is unlikely under Moody's
current assessment of the Thai economy.

"BBL's profitability, defined as risk-adjusted pre-provision
profit, has risen gradually over the past few years due to the
widening in net interest margins and continued increases in
recurring non-interest income," says Wah.

At the same time, further improvements in profitability would
likely hinge on the bank's strategy and ability to make use of
its under utilized balance sheet.  Its current gross loan-to-
deposit ratio of 77% is significantly below the average of 93%
for the other three large Thai banks, providing room for high
volumes and interest margins.

The upgrade also recognizes that BBL has taken appropriate steps
to rectify the control problem in its New York branch that
caused the US Office of the Comptroller of the Currency to issue
a cease-and-desist order against certain branch activities.  The
impact on business is believed to have been insignificant.
Moody's will monitor its internal controls going forward,
although the incident is considered as an isolated one.

For future rating actions, Moody's will focus on:

    1) resolution of its lingering NPLs;

    2) how it enhances profitability by taking advantage of its
       under-utilized balance sheet; and

    3) its internal control standards.

But as the rating agency does not expect such performances to
change drastically over the next few years it has therefore
considered the      stable as outlook.

                          *     *     *

Headquartered in Bangkok -- http://www.bangkokbank.com/-- BBL
is Thailand's largest bank, with total assets of THBB1.498
trillion (US$39 billion) at end-June 2006.


KASIKORNBANK PCL: Moody's Raises Financial Strength Rating to D+
----------------------------------------------------------------
Moody's Investors Service has upgraded on augusut 29, 2006,
Kasikornbank Public Company Limited's bank financial strength
rating to D+ from D.  The bank's debt and deposit ratings are
unaffected by this action.  The outlook for all ratings is
stable.  The upgrade concludes the revision in the outlook for
KBank to positive from stable.

"The upgrade of the BFSR reflects KBank's healthy capital base,
improvements in its credit quality, and increases in its
profitability," says Leo Wah, a Moody's Assistant Vice
President/Analyst.

Moody's consider both its regulatory and economic capital base
as satisfactory.  Thanks to the reduction in its non-performing
loans and the recovery in its profitability, the bank has built
up its capital base, leading to more than a tripling in its
capital since 2001.  Furthermore, despite solid lending growth
in recent years, its regulatory capital level, including the
core Tier-1 portion, remains acceptable.

Based on Moody's estimates, the bank also possesses satisfactory
economic capital -- adjusted for possible additional loan losses
--, and which would support not only the expansion of its loan
book, but also provide a cushion against any rapid increase in
NPL.  But the latter is unlikely under Moody's current
assessment of the Thai economy.

"KBank's profitability, defined as risk-adjusted pre-provision
profit, rose rapidly over the past few years due to the widening
of net interest margins, management's efforts to boost its fee
income, and a controlled cost base," says Wah.

"Further improvements in profitability would likely hinge on
KBank's growing exposure to small- and medium-sized enterprises,
which could however be sensitive to economic development, and
its ability to enhance credit quality," adds Wah.

For future rating actions, Moody's will focus on:

    1) possible further improvement in KBank's economic solvency
       through NPL resolution; and

    2) its ability to remain one of the leaders in risk
       management in the Thai banking sector, which has seen
       continual improvements in this area.

But as the rating agency does not expect such performances to
change drastically over the next few years, it has therefore
considered the stable as outlook.

                          *     *     *

Kasikorn Bank Public Company Limited --
http://www.kasikornbank.com/-- otherwise known as the Thai
Farmers Bank, was established in 1945 with registered capital of
THB5 million and has been listed on the Stock Exchange of
Thailand since 1976.  It is Thailand's fourth largest bank, with
total assets of THB844 billion (US$22 billion) as at end June
2006.


* Second Quarter Reflects Increase in NPL's
-------------------------------------------
New and relapsed non-performing loans in the banking sector
picked up in the second quarter of the year, the Bangkok Post
reports, quoting Tumnong Dasri, director for the Bank of
Thailand's corporate debt restructuring advisory department.

Based on BOT's data, non-performing loans at the end of June
2006 totaled THB484.27 billion, or 8.22% of total loans,
compared with THB469.2 billion or 7.9% at the end of March.

Moreover, of the total, new bad-debt cases totaled
THB42.2 billion, compared with THB33.6 billion in the first
quarter.  Relapsed cases, representing previously restructured
debt that was in default again, totaled THB22.8 billion,
compared with THB13.4 billion in the previous quarter.

Mr. Tumnong told The Nation that the increase in NPLs stemmed
partly from debtors' inability to repay their loans due to the
current economic conditions.

Of the total NPLs in the second quarter, cases worth
THB113.3 billion had completed debt restructuring, compared with
THb109.6 billion in the first quarter, BOT data shows.

In addition, accounts totaling THB166 billion were under debt
restructuring in the second quarter, compared with
THB156 billion in the previous quarter.

Loans totaling THB87.18 billion were in the court process in the
second quarter, compared with THB83.1 billion in the previous
quarter.  Another THB117 billion in loans were in the
foreclosure process, up from THB120.3 billion in the first
quarter.

Meanwhile, Mr. Tumnong said the Corporate Debt Restructuring
Committee, set up in 1998 to facilitate restructuring of multi-
creditor loans, would be dissolved on Oct 1, 2006.

The Post relates that over the past eight years, CDRAC has
facilitated the restructuring of THB1.5 trillion worth of loans,
or 80% of its target.

Of the total amount, THB1.4 trillion belonged to the 1998-2002
period, THB6.4 billion were "walk-in" cases starting from 2003,
THB10.74 billion were restructured under debtor-creditor/inter-
creditor agreements and THB422 million forwarded by related
agencies.

BOT governor MR Pridiya-thorn Devakula previously said NPLs
would be reduced to 2% by the end of next year after Bangkok
Commercial Asset Management Co was allowed to buy out non-
performing assets from commercial banks.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
September 8-9, 2006
  American Bankruptcy Institute
    International Insolvency Symposium
      London, England
        Web site: http://www.turnaround.org/

September 13, 2006
  Turnaround Management Association - Australia
    Networking Function Australia
      Parramatta, Australia
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

September 21, 2006
  Insolvency Practitioners Association Of Australia
    Study Group Meetings
      Chartered Accountants House, Sydney, Australia
        Telephone: 9416-2395
          e-mail: amanda_taylor@aapt.net.au

September 26-27, 2006
  American Bankruptcy Institute
    Airline Restructuring
      Helmsley Park Lane Hotel, New York, NY
        Telephone: 1-703-739-0800
          Web site: http://www.abiworld.org/

October 5, 2006
  Turnaround Management Association - Australia
    UTS Fundamentals of Turnaround Management Australia
      Mecure Hotel - Haymarket
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

October 11, 2006
  INSOL
    INSOL Lenders, Australia Technical Day
      Brisbane, Australia
        Web site: http://www.insol.org/

October 11-14, 2006
  Turnaround Management Association - Australia
    2006 Annual Convention
      JW Marriott Grande Lakes, Orlando, FL, USA
        e-mail: livaldi@turnaround.org

October 11, 2006
  Turnaround Management Association - Australia
    Professional Development Meeting Australia
      TBA
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

October 12, 2006
  Insolvency Practitioners Association Of Australia
    IPAA National Conference 2006
      Stamford Plaza, Brisbane City,
        Queensland, Australia
          Telephone: 07-3367-0500
            e-mail: corinne.templeton@invigorate.com.au

October 12, 2006
  Turnaround Management Association - Australia
    UTS Fundamentals of Turnaround Managment Australia
      Melbourne, Australia
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

October 19, 2006
  Insolvency Practitioners Association Of Australia
    Study Group Meetings
      Chartered Accountants House, Sydney, Australia
        Telephone: 9416-2395
          e-mail: amanda_taylor@aapt.net.au

October 31 - November 1, 2006
  International Women's Insolvency & Restructuring Confederation
    IWIRC Annual Conference
      San Francisco, CA, USA
        Web site: http://www.iwirc.com/

November 7-8, 2006
  International Monetary Fund and the Financial
    Supervisory Service
      Macroprudential Supervision: Challenges for Financial
        Supervisors
          Seoul, South Korea
            Telephone: 82-2-3771-5114
              Web site: http://www.fss.or.kr/

November 9-10, 2006
  Turnaround Management Association - Australia
    TMA Australia National Conference Australia
      TBA
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

November 15, 2006
  LI TMA Formal Event
    TMA Australia National Conference
      Long Island, New York, USA
        Web site: http://www.turnaround.org/

November 16, 2006
  Insolvency Practitioners Association of Australia
    Study Group Meetings
      Chartered Accountants House, Sydney, Australia
        Telephone: 9416-2395
          e-mail: amanda_taylor@aapt.net.au

December 13, 2006
  Turnaround Management Association - Australia
    Christmas Function Australia
      GE Commercial Finance, George Street,
        Sydney, Australia
          Telephone: 0438-653-179
            e-mail: tma_aust@bigpond.net.au

February 2007
  American Bankruptcy Institute
    International Insolvency Symposium
      San Juan, Puerto Rico
         Telephone: 1-703-739-0800
           Web site: http://www.abiworld.org

March 27-31, 2007
  Turnaround Management Association - Australia
    2007 TMA Spring Conference
      Four Seasons Las Colinas, Dallas, TX, USA
        e-mail: livaldi@turnaround.org

April 11-15, 2007
  American Bankruptcy Institute
    ABI Annual Spring Meeting
      J.W. Marriott, Washington, DC, USA
        Telephone: 1-703-739-0800
          Web site: http://www.abiworld.org/

October 16-19, 2007
  Turnaround Management Association - Australia
    TMA 2007 Annual Convention
      Boston Marriott Copley Place, Boston, MA, USA
        e-mail: livaldi@turnaround.org

March 25-29, 2008
  Turnaround Management Association - Australia
    TMA Spring Conference
      Ritz Carlton Grande Lakes, Orlando, FL, USA
        e-mail: livaldi@turnaround.org

October 28-31, 2008
  Turnaround Management Association - Australia
    TMA 2008 Annual Convention
      New Orleans Marriott, New Orleans, LA, USA
        e-mail: livaldi@turnaround.org

October 5-9, 2009
  Turnaround Management Association - Australia
    TMA 2009 Annual Convention
      JW Marriott Desert Ridge, Phoenix, AZ, USA
        e-mail: livaldi@turnaround.org

October 4-8, 2010
  Turnaround Management Association - Australia
    TMA 2010 Annual Convention
      JW Marriot Grande Lakes, Orlando, FL, USA
        e-mail: livaldi@turnaround.org

Beard Audio Conferences
  Coming Changes in Small Business Bankruptcy
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Audio Conferences CD
  Beard Audio Conferences
    Distressed Real Estate under BAPCPA
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Changes to Cross-Border Insolvencies
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Healthcare Bankruptcy Reforms
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Calpine's Chapter 11 Filing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Changing Roles & Responsibilities of Creditors' Committees
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Validating Distressed Security Portfolios: Year-End Price
    Validation and Risk Assessment
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Employee Benefits and Executive Compensation
    under the New Code
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Dana's Chapter 11 Filing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Reverse Mergers-the New IPO?
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Fundamentals of Corporate Bankruptcy and Restructuring
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  High-Yield Opportunities in Distressed Investing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Privacy Rights, Protections & Pitfalls in Bankruptcy
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  When Tenants File -- A Landlord's BAPCPA Survival Guide
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Clash of the Titans -- Bankruptcy vs. IP Rights
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/


                            *********

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

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

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


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Catherine Gutib, Valerie Udtuhan, Francis
Chicano, Reiza Dejito, Freya Natasha Fernandez, and Peter A.
Chapman, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

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

                 *** End of Transmission ***