TCRAP_Public/060905.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Tuesday, September 5, 2006, Vol. 9, No. 176

                            Headlines

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

A & H REAL: To Declare First and Final Dividend on September 22
AAC TILTWALL: Members Appoint Official Liquidators
ANSELL LIMITED: Moody's Upgrades Subordinated Debt Rating to Ba1
ARTIS LIQUOR: Enters Liquidation Proceedings
AYEMINOR PTY: Members and Creditors to Hear Wind-Up Report

BRENDAL ENTERPRISES: Commences Wind-Up of Operations
CAMEOBOND PTY: Members' and Creditors' Meeting Set on Sept. 25
CASA DELL'ORO: Members Agree to Wind Up Operations
CONSTRUCT HOMES: Court Hears Liquidation Petition
CREDIT SUISSE (AUSTRALIA): TO Declare Final Dividend on Sept. 26

DETAILZ PTY: Supreme Court Issues Wind-Up Order
ELECTRICAL INTELLIGENCE: Members Opt to Liquidate Business
FEEDER ASSOCIATES: Final Meeting Slated for September 26
FELTEX CARPETS: ANZ Wants Sale Completed on October 20, 2006
FELTEX CARPETS: Turners Complete Due Diligence

FWPBT LIMITED: Creditors' Proofs of Claim Due on Sept. 21
GP GLAZING: Names Steven Nicols as Liquidator
HIH INSURANCE: D. Fodera Pleads Not Guilty to Criminal Charge
HOWLING LIMITED: Court to Hear Liquidation Bid on September 11
HUCK HOLDINGS: Placed Under Members' Voluntary Wind-Up

J & H DEVELOPMENTS: Fisk and Agnew Named as Liquidators
JANZ LIMITED: Court to Hear Liquidation Bid on September 25
JOUSTING PTY: Members Decide to Close Business
L & W INVESTMENTS: Faces Wind-Up Proceedings
L R O'CONNOR: Members Pass Resolution to Wind Up Operations

LEIGHOAK LTD: Creditors' Proofs of Debt Due on September 26
M & B TRAILERS: To Declare Dividend on September 29
METAL STORM: Completes AU$30.5 Million Capital Raising Plan
MO95 PTY: Members and Creditors to Meet on September 28
MOLOK NZ: Liquidation Hearing Slated for October 12

NEWBURY RACING: Hearing of the Wind-Up Bid Set on September 4
O & B MEATS: Members Resolve to Close Business
PACIFIC PRECAST: Appoints Joint and Several Liquidators
PALLINI ENTERPRISES: Court to Hear CIR's Liquidation Bid
PRAGENI LIMITED: Creditors Must Prove Debts by September 15

PLEXVON PTY: Creditors to Receive Liquidation Report
PROTAN TANNING: Supreme Court Orders Wind-Up
RHEOPAIPO PTY: Commences Wind-Up of Operations
S8 LIMITED: Accepts AU$700-Million Takeover Offer from MFS
S8 LIMITED: Appoints Bruce Cotterill as CEO for Australasia

SAXINI PTY: Members Pass Resolution to Wind Up Business
SHANRO PTY: Court Issues Wind-Up Order
STURTON-GILL: Creditors Must Submit Proofs of Debt By Sept. 26
T & S FINANCIAL: Members and Creditors' Meeting Set on Sept. 26
TG SERVICES: To Declare Dividend for Priority Creditors

WATER TREATMENT: Hearing of Liquidation Bid Fixed on Sept.11
WE-R1.ORG: Members and Creditors' Meeting Set on September 29
YARRA CAPITAL: Creditors Resolve to Close Business


C H I N A   &   H O N G  K O N G

AFFINITY GLOBAL: Names Choi Wai Lung as Liquidator
CHEERFUL ARTS: Creditors' Proofs of Claim Due on September 25
CLASSICS ENTERPRISES: Liquidation Process Initiated
DYNAWAY INTERNATIONAL: Enters Wind-Up Proceedings
GRAND STAND: Court Approves Wind-Up Petition

H.K. TEMPO: Court Favors Wind-Up
HONOROLE ENTERPRISES: Members' Final Meeting Slated for Sept. 25
INFOAGE INTERNATIONAL: Appoints Joint and Several Liquidators
I-QUEST CORPORATION: Members & Creditors to Hear Wind-Up Report
INTERWINES LIMITED: Receives Wind-Up Order from Court

JOVELL INCORPORATION: Court Appoints Joint Liquidators
KIG GLASS: June 30 Balance Sheet Reveals Insolvency
LKN-PRIMEFIELD: Uses SGD4M from Rights Issue to Repay Debt
SPECIAL COATINGS: Enters Wind-Up Proceedings
SEEDTRON LIMITED: Liquidator to Present Wind-Up Report

SPECTRUM BRANDS: Fitch Junks Rating on US$2.3-Billion Debt
STAR PROFIT: Court Names Wu and Yu as Liquidators
TAOHO DESIGN: Members and Creditors Hold Annual Meeting
TRADE BRIGHT: Court Orders Wind-Up
UNITED BUILDING: High Court Issues Wind-Up Order

WRAY INTERNATIONAL: Creditors Must Prove Debts by October 31
YINSON KNITTING: Court Issues Wind-Up Order


I N D I A

CELLCAST PLC: Aims to Raise GBP1.3 Million to Avert Liquidation
GENERAL MOTORS: Indian Arm Avails of Lower Excise Duties
GENERAL MOTORS: Delivers 368,776 Vehicles; Retail Sales Up 8%
GMAC LLC: Pending Sale Spurs S&P to Keep Rating on CreditWatch
SILICON GRAPHICS: Wants to Hire Deloitte as Accountants

SILICON GRAPHICS: Seeks Court OK to Tap KPMG LLP as Auditors
SILICON GRAPHICS: Favors Ernst & Young as Primary Auditors
SILICON GRAPHICS: Committee Taps FTI as Financial Advisors


I N D O N E S I A

INCO LTD: Board Still Recommends Merger with Phelps Dodge
LONTAR PAPYRUS: Records US$12-Mil Net Loss on Foreign Exchange
PAKUWON JATI: Fitch Assigns 'B' Issuer Default Ratings
PHILLIPS-VAN HEUSEN: Earns US$29 Million in Second Quarter 2006
VNU NV: GE Executive David Calhoun Named as CEO & Chairman



K O R E A

HANA BANK: Heads to Market with New Subordinated Bond Deal
KOREA EXCHANGE: Prosecutors Ignore Lone Star Threat


J A P A N

CHUOAOYAMA PwC: Resumes Operations as Misuzu Audit
DTC ONE SPC: Fitch Affirms 'BB' Class E Notes
LIVEDOOR CO: Founder Pleads Not Guilty to Accounting Fraud
MITSUBISHI MOTORS: Inks Pact with Workers on U.S. Auto Plant
MITSUBISHI MOTORS: U.S. Sales Increase in August

MITSUBISHI MOTORS: To Trim Auto Platforms to 6 from 14
NISHI-NIPPON CITY BANK: Fitch Affirms 'E' Individual Rating
SUMITOMO MITSUI BANKING: Fitch Affirms 'C/D' Individual Rating


M A L A Y S I A

CYGAL BERHAD: June 30 Balance Sheet Reveals Insolvency
CYGAL BERHAD: Seeks Final Extension of Time to Implement Revamp
FALCONBRIDGE LTD: Xtrata Buys Additional 4.9% Share in Company
MALAYSIA AIRLINES: Hikes Surcharges on International Routes
MENTIGA CORPORATION: Posts MYR6-Million Net Loss in 2nd Quarter

PAN MALAYSIAN: Losses Shrink in First Quarter of 2006
PROTON HOLDINGS: Lower Sales Drive MYR59M Loss in First Quarter
PROTON HOLDINGS: Cars to Hit Saudi Roads Soon
TALAM CORPORATION: Board to Seek Shareholders' Mandate at AGM


P H I L I P P I N E S

BACNOTAN CONSOLIDATED: To List 33,961,345 Shares on September 6
BANK OF CEBU: Bangko Sentral Closes Bank Due to Insolvency
BENGUET CORP: Submits Reports; Shares Trading Resumes
CHINA BANK: Expands Remittance Network
DEVELOPMENT BANK: $130M Hybrid Issue Carries Fitch's BB- Rating

DEVELOPMENT BANK: S&P Assigns 'B+' to Hybrid Tier-I Security
DEVELOPMENT BANK: S&P Gives 'BB-/B' and 'BB+/B' Credit Ratings
SECURITY BANK: Increases Cash Dividend by 50%


S I N G A P O R E

DIGILAND INTERNATIONAL: Pays Serviceable Loan to Creditors
ELECTA SYSTEM: Pays First and Final Preferential Dividend
LIANG HUAT: Appoints Lim Jenny as Group Financial Controller
MAE ENGINEERING: Director Resigns; Executive Officers Appointed
REFCO INC: Chap. 11 Trustee Wants RCM Pact Objections Overruled

SEE HUP SENG: Executive Director Steps Aside
SPECTRUM BRANDS: 3rd Fiscal Quarter Earnings Down to US$2.5 Mil.
THIA KOK: Creditors Proofs' of Debt Due on September 30


T H A I L A N D

KASIKORNBANK: Fitch Affirms Individual Rating at C
TOTAL ACCESS: S&P Affirms BB+ Long Term Corporate Credit Rating


* BOND PRICING: For the Week 4 September to 8 September 2006

     - - - - - - - -

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

A & H REAL: To Declare First and Final Dividend on September 22
---------------------------------------------------------------
A & H Real Estate Pty Limited notifies parties-in-interest of
its intention to declare its first and final dividend on
September 22, 2006.

Creditors who cannot prove their debts by September 12, 2006,
will be excluded from sharing in the dividend distribution.

The liquidator can be reached at:

         Thomas Javorsky
         c/o Jones Condon
         Chartered Accountants
         Australia
         Telephone:(02) 9251 5222


AAC TILTWALL: Members Appoint Official Liquidators
--------------------------------------------------
Members of AAC Tiltwall Constructions Pty Ltd on August 14,
2006, appointed Jason Bettles and Susan Carter as liquidators.

The Liquidators can be reached at:

         Jason Bettles
         Susan Carter
         Worrells Solvency & Forensic Accountants
         Level 6, 50 Cavill Avenue
         Surfers Paradise
         Queensland 4217
         Australia
         Web site: http://www.worrells.net.au/


ANSELL LIMITED: Moody's Upgrades Subordinated Debt Rating to Ba1
----------------------------------------------------------------
Moody's Investors Service upgrades the issuer and senior
unsecured ratings of Ansell Limited to Baa3 from Ba1.  The
outlook is stable.

"The upgrade reflects Ansell's continued strong financial
performance, growth in the core occupational health segment
through the development of branded products and defendable
market positions, along with resolution of uncertainty
surrounding the SPT joint venture," says Peter Fullerton, a
Moody's AVP/Analyst.

"The action further reflects Moody's confidence that the company
can maintain solid investment grade financial metrics through
various stages of the economic and commodity price cycle,
particularly with volatility in global latex markets," adds Mr.
Fullerton.  Since evolving from Pacific Dunlop in 2002, Ansell
has developed a stable track record of operations with the
existing asset base.

The ratings upgraded are:

   Issuer rating - Baa3

   Senior unsecured rating - Baa3

   Subordinated debt rating - Ba1

   Pacific Dunlop USA, Inc., (backed)
     senior unsecured rating - Baa3

   Pacific Dunlop Holdings Inc (backed)
     senior unsecured rating - Baa3

   Ansell Limited short-term rating - P-3

   Pacific Dunlop Holdings Inc (backed)
     short-term rating - P-3

Ansell has steadily grown its core business over the last four
years.  In particular, its Occupation Gloves segment has
expanded materially, allowing the company to become the global
leader in this market.  This growth in earnings from the
occupational gloves segment has reduced the company's exposure
to the highly price competitive condom, household and
examination glove markets -- providing further stability to
earnings.

Moreover, it has developed and maintained a portfolio of branded
products that support the stability and dependability of its
earning streams.  It also exhibits solid geographic and product
diversification with manufacturing and sales spread across
various continents.

Ansell's credit profile derives considerable support from the
maintenance of solid investment grade financial metrics,
primarily low gearing and strong cash flow to debt ratios.  Its
EBITA margins are solid versus those of its peers, providing it
with strong interest coverage metrics.  Its liquidity profile is
solid, characterized by high cash reserves, a low dividend
payout policy and low levels of medium-term debt maturities.

Ansell's financial profile is strong for its Baa3 rating, but
this situation is partly offset by the relatively small size of
its operations.  In FY2006, the company reported total sales of
US$849 million.  Nevertheless, this factor of size is largely
mitigated by the overall strength of its global positions in
core occupational barrier protection products and in various
regional markets for other products.

Ansell is exposed to volatility in the global latex markets, as
some 10-15% of its manufacturing costs are latex related.  In 2H
FY2006, latex prices rose sharply.  But consolidated operating
margins fell only 1.2% to 12.1%, indicating that the company can
maintain investment grade financial metrics during the various
stages of the commodity price cycle.

The rating also incorporates an expectation that earnings for
FY2007 will be adversely impacted by up to US$10 million, when
compared to FY2006 due to the rise in latex prices.  Moody's is
confident that its solid financial metrics can be maintained
through various stages of the commodity and economic cycle.

The rating also anticipates that management will undertake a
moderate level of acquisitions, supporting the scale and
diversity of operations.  Given the financial covenants
contained in Ansell's committed bank facility, Moody's expects
it will implement such transactions to maintain its solid
financial metrics.

When mapped to Moody's rating methodology for the global packed
goods industry, Ansell scores strong investment grade ratings
(Aa and A) for leverage and cash flow to debt metrics and solid
Baa category ratings for margins and interest coverage and
qualitative factors including:

   (a) diversification,

   (b) organic growth of revenues,

   (c) market share, and

   (d) assessment of financial strategy.

Ansell does score a single B rating for size, based on total
sales.  On balance, the strength in its financial profile and
strong positions in key markets offsets this weakness.

The rating outlook is stable, based on Moody's expectations that
Ansell will preserve solid investment grade financial metrics,
mitigating its relatively small size and exposure to latex price
volatility.

The rating is unlikely to experience further upward pressure in
the next 18 months, given the current upgrade to Baa3.  But
upward pressure may emerge should Ansell successfully execute
and integrate a material level of acquisitions to improve both
its scale of operations and diversification of earnings streams.
This outcome would also require the maintenance of existing
leverage and interest coverage metrics.  Its financial profile
is considered strong for the current Baa3 rating, providing
management with some flexibility at the current rating to make
additional acquisitions and capital returns to shareholders.

On the other hand, downward rating pressure may emerge if a
sustained slide occurs in its operating performance.  This may
emerge due to material levels of product recalls or the loss of
market share in key markets due to intense price competition.
Such a development may be evidenced by debt to EBITDA rising
above 3.0-3.5x on a sustained basis, retained cash flow to net
debt falling below 15-20% on a sustained basis and total
coverage falling below 5.5-5.0x on a sustained basis.  Downward
pressure may also emerge if there was a material deterioration
in the company's liquidity position.  This may emerge if
material levels of cash reserves were used to fund acquisitions
or for other purposes without additional, long dated, undrawn
committed standby facilities being obtained.

Ansell Limited, based in Melbourne, Australia, is a global
provider of healthcare barrier protective products, primarily
gloves and condoms.


ARTIS LIQUOR: Enters Liquidation Proceedings
--------------------------------------------
At an extraordinary general meeting held on August 14, 2006, the
members of Artis Liquor Gallery Pty Ltd agreed to voluntarily
liquidate the company's business.

Creditors appointed Craig Crosbie as liquidator at a separate
meeting held later that day.

The Liquidator can be reached at:

         Craig Crosbie
         PPB Chartered Accountants
         Level 10, 90 Collins Street
         Melbourne, Victoria 3000
         Australia


AYEMINOR PTY: Members and Creditors to Hear Wind-Up Report
----------------------------------------------------------
Members and creditors of Ayeminor Pty Ltd will hold a final
meeting on September 25, 2006, at 11:30 a.m., to receive the
liquidators' report on the company's wind-up and property
disposal exercises.

The liquidators can be reached at:

         I. A. Currie
         P. G. Biazos
         Insolvency Accountants
         PO Box 10098, Adelaide Street
         Brisbane, Queensland 4000
         Australia
         Telephone:(07) 3220 0994
         Facsimile:(07) 3220 0996


BRENDAL ENTERPRISES: Commences Wind-Up of Operations
----------------------------------------------------
Members of Brendal Enterprises Pty Ltd met on August 17, 2006,
and decided to wind up the company's operations.

In this regard, Nicholas David Cooper and Andre Janis Strazdine
were appointed as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Nicholas David Cooper
         Andre Janis Strazdine
         SimsPartners
         Level 4, 12 Pirie Street
         Adelaide, South Australia 5000
         Australia


CAMEOBOND PTY: Members' and Creditors' Meeting Set on Sept. 25
--------------------------------------------------------------
Pursuant to Section 509(1) of the Corporations Act, 2001, a
final meeting of the members and creditors of Cameobond Pty Ltd
will be held on September 25, 2006, at 11:00 a.m.

During the meeting, Liquidators I. A. Currie and P. G. Biazos
will report on the company's wind-up and property disposal
exercises.

As reported by the Troubled Company Reporter - Asia Pacific, on
February 13, 2006, the company commenced a wind-up of its
operations on January 17, 2006.

The Liquidators can be reached at:

         I. A. Currie
         P. G. Biazos
         Currie Biazos
         Insolvency Accountants
         PO Box 10098 Adelaide Street
         Brisbane, Queensland 4000
         Australia
         Telephone:(07) 3220 0994
         Facsimile:(07) 3220 0996


CASA DELL'ORO: Members Agree to Wind Up Operations
--------------------------------------------------
At an extraordinary general meeting held on August 14, 2006, the
members of Casa Dell'oro Pty Ltd agreed to wind up the company's
operations.

Peter Gountzos and Richard John Cauchi were appointed as joint
and several liquidators at a creditors' meeting held that same
day.

The Joint and Several Liquidators can be reached at:

         Peter Gountzos
         Richard John Cauchi
         CJL Partners
         Level 3, 180 Flinders Lane
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9639 4779
         Facsimile:(03) 9639 4773


CONSTRUCT HOMES: Court Hears Liquidation Petition
-------------------------------------------------
The High Court of Palmerston North heard on September 4, 2006, a
petition to liquidate Construct Homes Ltd.

Horowhenua Tile Co Ltd filed the petition with the court on
July 18, 2006.

The Solicitor for the Plaintiff can be reached at:

         Emma Va'ai
         Waikanae Law, Barristers & Solicitors
         Kist Building, Mahara Place
         (P.O. Box 8 or D.X. R.A. 61 004)
         Waikanae, New Zealand
         Telephone: (04) 902 5090
         Facsimile: (04) 902 5088


CREDIT SUISSE (AUSTRALIA): TO Declare Final Dividend on Sept. 26
----------------------------------------------------------------
A final dividend will be declared on September 26, 2006, for the
creditors of Credit Suisse First Boston Australia Registered
Traders Pty Limited.

Creditors are required to file their proofs of debt by
September 20, 2006, for them to share in the company's dividend
distribution.

The liquidators can be reached at:

         Keiran Hutchison
         John Gibbons
         Ernst & Young
         Level 37, 680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9248 5862


DETAILZ PTY: Supreme Court Issues Wind-Up Order
-----------------------------------------------
The Supreme Court of New South Wales released on August 17,
2006, as order to have Detailz Pty Ltd's operations wound up.

The Court also directed the appointment of Steven Nicols as
liquidator.

The Liquidator can be reached at:

         Steven Nicols
         Level 2, 350 Kent Street
         Sydney, New South Wales 2000
         Australia


ELECTRICAL INTELLIGENCE: Members Opt to Liquidate Business
----------------------------------------------------------
Members of Electrical Intelligence Pty Ltd convened on
August 16, 2006, and resolved to voluntarily liquidate the
company's business.

Subsequently, David H. Scott was appointed as liquidator.

The Liquidator can be reached at:

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


FEEDER ASSOCIATES: Final Meeting Slated for September 26
--------------------------------------------------------
Members and creditors of Feeder Associates Pty Limited will
convene on September 26, 2006, at 11:00 a.m., to receive
Liquidator John Vouris' accounts on the company's wind-up
proceedings and property disposal exercises.

The Liquidator can be reached at:

         John Vouris
         Lawler Partners
         Level 7, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9232 6800


FELTEX CARPETS: ANZ Wants Sale Completed on October 20, 2006
------------------------------------------------------------
As part of its arrangements with Australia and New Zealand
Banking Group Limited and ANZ National Bank Limited, Feltex
Carpets Limited has been updating the ANZ Group with progress on
the proposals of the two parties currently undertaking due
diligence on Feltex, including Godfrey Hirst's request to extend
its due diligence period.

As reported in the Troubled Company Reporter - Asia Pacific on
August 2, 2006, Feltex Carpets has received a takeover
offer from Australian rival Godfrey Hirst for up to 12 cents per
share.  A subsequent TCR-AP report noted that Graeme and Craig
Turner of Sleepyhead challenged Godfrey Hirst's bid.

In a letter dated September 1, 2006, ANZ reiterated to Feltex
that its preparedness to continue to make available the various
facilities to the company and to take no action in relation to
certain events of default is conditional on a number of matters,
including completion of a sale on October 20, 2006.  To this
end, a formal sale agreement would need to be entered into
expeditiously.

In that same letter, ANZ sought confirmation that all of the
outstanding commercial issues between Feltex and Godfrey Hirst
have been resolved and details of the steps that need to be
taken to give effect to that agreed position.

ANZ further advised that if Feltex and Godfrey Hirst were not in
a position to confirm this to ANZ by September 4, 2006, then ANZ
reserves all of its rights in respect of any past or current
events of default by Feltex, including the right to withdraw its
agreement not to take any action in respect of the events of
default.

Representatives of Feltex and Godfrey Hirst met and based on
their discussions, the parties have advised ANZ that all
material drafting matters in respect of the formal sale
documentation appear to have been agreed.

However, Godfrey Hirst is still considering various material
concerns arising from its due diligence.  Godfrey Hirst has also
advised Feltex that it does not see any value in signing formal
sale documentation while there remains a possibility of an
alternative competing proposal from Graeme and Craig Turner or
any other party.

Godfrey Hirst has advised Feltex that it is considering its
position in relation to its further participation in the process
and is unwilling to provide any certainty regarding its proposal
at this stage.

This position has been advised to ANZ.  Feltex expects to
receive a response from ANZ and will update the market as soon
as it receives that response.

                          About Feltex

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

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

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

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


FELTEX CARPETS: Turners Complete Due Diligence
----------------------------------------------
On September 1, 2006, Graeme and Craig Turner of Sleepyhead
advised the market that their due diligence on Feltex Carpets
Limited is substantially complete.

On that day, Feltex and the ANZ Bank received a letter from the
Turners stating they have been actively working towards
finalizing a proposal, which is in the best interest of Feltex,
its shareholders and its creditors, particularly ANZ.

The Turners stated that they expect to present their full offer
to Feltex's board of directors on September 8, 2006.

As reported in the Troubled Company Reporter - Asia Pacific on
August 9, 2006, the Feltex Board has agreed to open its books to
the Turners.  Due diligence on the carpet business then began,
with the Turners starting work on the books at the Feltex
offices in Melbourne.

The TCR-AP previously reported that the Turners challenged
Godfrey Hirst's bid for Feltex.

                          About Feltex

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

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

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

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


FWPBT LIMITED: Creditors' Proofs of Claim Due on Sept. 21
---------------------------------------------------------
Creditors of FWPBT Ltd are required to submit their proofs of
claim to Liquidator Robert John Knox by September 21, 2006.

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

The Liquidator can be reached at:

         Robert Knox
         BDO Spicers Chartered Accountants
         P.O. Box 2219, Auckland
         New Zealand
         Telephone: (09) 379 2950
         Facsimile: (09) 303 2830


GP GLAZING: Names Steven Nicols as Liquidator
---------------------------------------------
Members of GP Glazing & Glass Co Pty Ltd met on
August 17, 2006, and decided to voluntarily liquidate the
company's business.

Accordingly, Steven Nicols was appointed as liquidator.

The Liquidator can be reached at:

         Steven Nicols
         Nicols + Brien
         Telephone:(02) 9299 2289
         Web site: http://www.bankrupt.com.au/


HIH INSURANCE: D. Fodera Pleads Not Guilty to Criminal Charge
-------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
July 31, 2006, Dominic Fodera, the former chief financial
officer of HIH Insurance Limited, was committed in Central Local
Court in Sydney to stand trial on a criminal charge of
authorizing the issue of a prospectus from which there was a
material omission.

The charge arises from the investigation commenced by the
Australian Securities and Exchange Commission into the affairs
of the HIH group of companies, the TCR-AP noted.

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

On September 1, 2006, in the Supreme Court of New South Wales,
Mr. Fodera pleaded not guilty to the criminal charge.

Mr. Fodera had his bail conditions continued.  The trial will
commence on February 26, 2007.

The Commonwealth Director of Public Prosecutions is prosecuting
the matter.

Mr. Fodera is also due to appear in the Supreme Court of New
South Wales on October 6, 2006, in relation to four criminal
charges of giving misleading information and a further two
charges of failing to act honestly as a director.  These charges
are also being prosecuted by the CDPP and arise out of the
ASIC's investigation into the HIH group of companies.

The TCR-AP previously reported that Mr. Fodera has already faced
a court hearing to determine if he will stand trial on the six
charges against him.

                     About HIH Insurance

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

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

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

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


HOWLING LIMITED: Court to Hear Liquidation Bid on September 11
--------------------------------------------------------------
The High Court of Rotorua will hear a liquidation petition
against Howling Ltd -- formerly known as Bore-Well Services Ltd
-- on September 11, 2006, at 10:45 a.m.

Hirepool Ltd filed the petition with the Court on July 12, 2006.

The Solicitor for the Petitioner can be reached at:

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


HUCK HOLDINGS: Placed Under Members' Voluntary Wind-Up
------------------------------------------------------
At a general meeting held on August 11, 2006, the members of
Huck Holdings Pty Ltd resolved to voluntarily wind up the
company's operations.

The joint and several liquidators can be reached at:

         Tim Norman
         Simon A. Wallace-Smith
         Deloitte Touche Tohmatsu
         180 Lonsdale Street
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9208 7000


J & H DEVELOPMENTS: Fisk and Agnew Named as Liquidators
-------------------------------------------------------
John Howard Ross Fisk and Richard Dale Agnew were on August 14,
2006, appointed as joint and several liquidators for J & H
Developments Ltd.

Mr. Fisk and Mr. Dale require the company's creditors to file
their proofs of claims by September 14, 2006.

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

The Joint Liquidators can be reached at:

         John Fisk
         c/o PricewaterhouseCoopers
         113-119 The Terrace (P.O. Box 243)
         Wellington, New Zealand
         Telephone: (04) 462 7000
         Facsimile: (04) 462 7492


JANZ LIMITED: Court to Hear Liquidation Bid on September 25
-----------------------------------------------------------
On July 26, 2006, the Commissioner of Inland Revenue filed a
petition before the High Court of Christchurch to liquidate Janz
Ltd.

The Court will hear the petition on September 25, 2006, at 10:45
a.m.

The Solicitor for the Petitioner can be reached at:

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


JOUSTING PTY: Members Decide to Close Business
----------------------------------------------
Members of Jousting Pty Ltd convened on August 14, 2006, and
decided to close the company's business.

Accordingly, Colin R. McDonald was appointed as liquidator.

The Liquidator can be reached at:

         Colin R. McDonald
         Chartered Accountant
         PO Box 56
         Mooroolbark, Victoria 3138
         Australia
         Telephone:(03) 9726 4988
         Facsimile:(03) 9726 9338


L & W INVESTMENTS: Faces Wind-Up Proceedings
--------------------------------------------
At an extraordinary general meeting held on August 14, 2006, the
members of L & W Investments Pty Limited agreed to voluntarily
wind up the company's operations.

The liquidator can be reached at:

         Barry Cook
         54 Beechwood Avenue
         Greystanes, New South Wales 2145
         Australia
         Telephone/Fax:(02) 9636 2845


L R O'CONNOR: Members Pass Resolution to Wind Up Operations
-----------------------------------------------------------
On August 18, 2006, members of L R O'Connor Pty Ltd passed a
special resolution to wind up the company's operations.

Accordingly, R. A. Ferguson was appointed as liquidator.

The liquidator can be reached at:

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


LEIGHOAK LTD: Creditors' Proofs of Debt Due on September 26
-----------------------------------------------------------
Leighoak Ltd will declare the first and final dividend on
September 26, 2006.

Creditors must submit their proofs of debt by September 20,
2006, to be included in the company's distribution of dividend.

The liquidator can be reached at:

         Peter Goodin
         Brooke Bird & Co
         Chartered Accountants
         471 Riversdale Road
         Hawthorn East, Victoria 3123
         Australia
         Telephone: 9882 6666


M & B TRAILERS: To Declare Dividend on September 29
---------------------------------------------------
M & B Trailers Pty Ltd will declare the first and final dividend
on September 29, 2006, to the inclusion of creditors who will be
able to prove debts by September 27, 2006.

The liquidator can be reached at:

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


METAL STORM: Completes AU$30.5 Million Capital Raising Plan
-----------------------------------------------------------
On September 1, 2006, the directors of Metal Storm Limited
disclosed that the company has successfully completed the fully
underwritten Renounceable Rights Issue of AU$27.5 million in
Convertible Notes and options with the allotment of 203,703,704
Convertible Notes and 176,852,055 Options in accordance with the
prospectus issued on July 28, 2006.

The Rights Issue was the final part of a two-stage capital-
raising plan, which included the Share Purchase Plan completed
in May, which raised approximately AU$3 million.  In total, the
company raised approximately AU$30.5 million in gross proceeds
from the Share Purchase Plan and the Rights Issue.

The Rights Issue was fully underwritten by Patersons Securities
Limited, who also acted as Lead Manager to the Share Purchase
Plan.  The Rights Issue was 95% sub-underwritten by Harmony
Investment Fund Limited (Harmony).

The Directors believe that the combined Share Purchase Plan and
fully underwritten Rights Issue approach provided the majority
of shareholders with the opportunity to participate in the
capital raising.

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

Harmony also provided a one-year working capital facility of
AU$5 million in June 2006 secured by a fixed and floating charge
over the Company's assets.  The facility was designed to provide
short-term working capital should the Company need it prior to
the completion of the Rights Issue.  This facility was not used
and the fixed and floating charge is expected to be discharged
shortly.

               J. Nicholls' Appointment Confirmed

On the same day, the Directors confirmed the appointment of John
Nicholls as a non-executive director of the company.

The Troubled Company Reporter - Asia Pacific reported on July 7,
2006, that Mr. Nicholls will join Metal Storm Limited's Board as
a non-executive director immediately after the prospectus for
the announced capital raise is issued.

                   About Patersons Securities

Patersons Securities is Australia's largest independently owned
specialist stockbroker, with 10 offices around the country.
Established over 100 years ago, Patersons now has more than 140
private client advisers, institutional sales, research and full
corporate finance capability.  Over the last two years the
Patersons corporate finance team has raised over AU$1.5 billion
for clients, ranking it in the Top 10 brokers in capital
raisings by value.

                    About Harmony Capital Pte

Harmony Capital Partners is a Singapore-based fund management
company which manages a US$500 million capacity Fund.  The
primary strategy of Harmony is to invest in special situations
in Asia including Australia and New Zealand.  The principals of
Harmony, Suresh Withana and John Nicholls, are very familiar
with the investment environment in Australia, particularly in
the turnaround space with experience in a number of industry
sectors.  Harmony has a number of large investors in its fund
including a cornerstone investor with a significant capital base
providing it with the capability to execute investments ranging
from US$5 million to US$50 million in size.

                          *     *     *

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

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

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

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


MO95 PTY: Members and Creditors to Meet on September 28
-------------------------------------------------------
The members and creditors of MO95 Pty Ltd will meet on
September 28, 2006, at 10:00 a.m., to:

   -- receive the final receipts and payments from the
      liquidator;

   -- receive formal notice of the end of the administration;
      and

   -- discuss other business that may be considered with the
      foregoing.

The liquidators can be reached at:

         Paul Burness
         Worrells
         Solvency & Forensic Accountants
         Level 5 15 Queen Street
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9613 5507
         Facsimile:(03) 9614 3233
         Web-site: http://www.worrells.net.au


MOLOK NZ: Liquidation Hearing Slated for October 12
---------------------------------------------------
A petition to liquidate Molok NZ Ltd will be heard before the
High Court of Auckland on October 12, 2006, at 10:00 a.m.

Hertz New Zealand Ltd filed the petition with the court on
July 17, 2006.

The Solicitor for Hertz New Zealand can be reached at:

         Kevin Patrick McDonald
         Eleventh Floor, Global House
         19-21 Como Street
         (P.O. Box 331-065 or D.X. B.P. 66-086)
         Takapuna, Auckland
         New Zealand
         Telephone: (09) 486 6827
         Facsimile: (09) 486 5082


NEWBURY RACING: Hearing of the Wind-Up Bid Set on September 4
-------------------------------------------------------------
A petition to liquidate Newbury Racing & Breeding Ltd was heard
by the High Court of Palmerston North on September 4, 2006.

Majestic Horse Floats Ltd filed the petition with the Court on
July 28, 2006.

The Solicitor for the Plaintiff can be reached at:

         Malcolm David Whitlock
         Whitlock & Company
         c/o Level Two, Baycorp Advantage House
         15 Hopetoun Street, Auckland
         New Zealand


O & B MEATS: Members Resolve to Close Business
----------------------------------------------
Members of O & B Meats Pty Ltd held a general meeting on
August 17, 2006, and resolved to voluntarily wind up the
company's operations.

At the creditors' meeting held later that day, Clyde Peter White
and Philip Newman were appointed as joint and several
liquidators.

The Joint and Several Liquidator can be reached at:

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


PACIFIC PRECAST: Appoints Joint and Several Liquidators
-------------------------------------------------------
On August 2, 2006, shareholders of Pacific Precast Ltd appointed
John Trevor Whittfield and Boris van Delden as Joint and Several
Liquidators.

Subsequently, the Joint Liquidators required the proofs of claim
from creditors to be filed by September 15, 2006.

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

The Troubled Company Reporter - Asia Pacific previously reported
that on May 31, 2006, the Commissioner of Inland Revenue filed a
petition to liquidate the company.  The petition was scheduled
to be heard on August 7, 2006.

The Joint Liquidators can be reached at:

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


PALLINI ENTERPRISES: Court to Hear CIR's Liquidation Bid
--------------------------------------------------------
A petition to liquidate Pallini Enterprises will be heard before
the High Court of Auckland on November 2, 2006, at 10:00 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on July 18, 2006.

The Commissioner's Solicitor can be reached at:

         P.L. Windsor-Knaap
         Inland Revenue Department
         1 Bryce Street, Hamilton
         New Zealand
         Telephone: (07) 959 0432
         Inquiries to C. Williams:
         Telephone: (06) 968 4004


PRAGENI LIMITED: Creditors Must Prove Debts by September 15
-----------------------------------------------------------
Liquidator Daran Nair require proofs of claim from the creditors
of Prageni Ltd to be filed by September 15, 2006.

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

The Liquidator can be reached at:

         Daran Nair
         Nair & Associates
         280 Great South Road
         Greenlane, Auckland
         New Zealand
         Postal Address: P.O. Box 74 322
         Market Road, Auckland
         Telephone: (09) 522 5182
         Facsimile: (09) 522 5183
         Email: daran@nair.co.nz


PLEXVON PTY: Creditors to Receive Liquidation Report
----------------------------------------------------
Creditors of Plexvon Pty Limited will hold a final meeting on
September 29, 2006, at 11:00 a.m., to receive the report on the
proceedings of the company's wind-up and the manner of property
disposal from Liquidator Michael G. Jones.

The Liquidator can be reached at:

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


PROTAN TANNING: Supreme Court Orders Wind-Up
--------------------------------------------
On August 17, 2006, the Supreme Court of New South Wales has
ordered Protan Tanning Studios Pty Ltd to wind up its operations
and appointed Steven Nicols as liquidator.

The Liquidator can be reached at:

         Steven Nicols
         Level 2, 350 Kent Street
         Sydney, New South Wales 2000
         Australia


RHEOPAIPO PTY: Commences Wind-Up of Operations
----------------------------------------------
Members of Rheopaipo Pty Ltd held a meeting on August 14, 2006,
and agreed to voluntarily wind up the company's operations.

Subsequently, Shabnam Amirbeaggi was appointed as liquidator.

The Liquidator can be reached at:

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


S8 LIMITED: Accepts AU$700-Million Takeover Offer from MFS
----------------------------------------------------------
On September 4, 2006, MFS revealed its proposed merger with S8
Limited, estimated to be worth AU$1.7 billion.  MFS and S8
Limited describe the merger as a "vertically and horizontally
integrated retail and wholesale global travel services group
merger."

The merger will entail MFS's off-market takeover of all of the
shares on issue in S8, which is valued at almost AU$700 million.
The S8 board has approved the proposal and the S8 Directors have
indicated that they will accept the proposed merger if no other
offer exceeds MFS's.

The Managing Director and Founder of S8, Chris Scott, has given
MFS a call option over 19.9% of S8 from his shareholdings in the
company.

S8 will hold an investors conference with S8's Chairperson,
Jenny Hutson, and Mr. Scott, on a later date.

                        About S8 Limited

S8 Limited -- http://www.s8.com.au/-- is based in Queensland,
Australia.  It was listed as a publicly owned company on the
Australian Stock Exchange in 2001 and has since added properties
under its management in various geographical locations.

                          *     *     *

On July 24, 2006, the Troubled Company Reporter - Asia Pacific
cited a report from The Courier-Mail, saying that the Office of
Fair Trading has commenced a "major investigation" into S8
Limited for allegedly collecting "millions of dollars" in
commissions from holiday unit owners.

According to The Courier-Mail, the probe coincides with claims
of commission "double-dipping," by disgruntled Gold Coast unit
owners, who hired a private investigator to expose allegedly
inflated commissions.

S8 Limited was allegedly reaping holiday letting commissions as
high as 42% by directing reservations through a separate booking
agency it also owns, the TCR-AP noted.


S8 LIMITED: Appoints Bruce Cotterill as CEO for Australasia
-----------------------------------------------------------
S8 Limited appoints Bruce Cotterill as its new chief executive
officer for travel in the Australasian region.  Mr. Cotterill's
new position will see him responsible for S8 Australasian travel
operations, and he will be based in Sydney.

Mr. Cotterill is currently the CEO of Gullivers New Zealand and
also has a wide range of business experience, including current
roles as a member of the advisory board of Gresham Private
Equity in Australia and Chairman of the Noel Leeming Group
Limited.

"Bruce is an outstanding operator.  Bruce will lead our travel
team in Australasia.  He will work closely with the senior
management in each of our Australasian travel businesses to
deliver a disciplined, efficient, and unified approach to our
travel operations buy heading up the restructure of the back
office operations of the S8 Travel Companies," Chris Scott,
Managing Director for S8, says.

                        About S8 Limited

S8 Limited -- http://www.s8.com.au/-- is based in Queensland,
Australia.  It was listed as a publicly owned company on the
Australian Stock Exchange in 2001 and has since added properties
under its management in various geographical locations.

                         *     *     *

On July 24, 2006, the Troubled Company Reporter - Asia Pacific,
cited a report from The Courier-Mail saying that the Office of
Fair Trading has commenced a "major investigation" into S8
Limited for allegedly collecting "millions of dollars" in
commissions from holiday unit owners.

According to The Courier-Mail, the probe coincides with claims
of commission "double-dipping," by disgruntled Gold Coast unit
owners, who hired a private investigator to expose allegedly
inflated commissions.

S8 Limited was allegedly reaping holiday letting commissions as
high as 42% by directing reservations through a separate booking
agency it also owns, the TCR-AP noted.


SAXINI PTY: Members Pass Resolution to Wind Up Business
-------------------------------------------------------
At an extraordinary general meeting held on August 16, 2006, the
members and creditors of Saxini Pty:

   -- agreed to voluntarily wind up the company's operations;
and

   -- appointed David George Kettlestring as liquidator.

The Liquidator can be reached at:

         David George Kettlestring
         17 Byron Avenue
         North Nowra, New South Wales
         Australia


SHANRO PTY: Court Issues Wind-Up Order
--------------------------------------
On August 17, 2006, the Supreme Court of New South Wales has
issued an order to wind up Shanro Pty Ltd and appointed Steven
Nicols as liquidator.

The Liquidator can be reached at:

         Steven Nicols
         Level 2, 350 Kent Street
         Sydney, New South Wales 2000
         Australia


STURTON-GILL: Creditors Must Submit Proofs of Debt By Sept. 26
--------------------------------------------------------------
Sturton-Gill Pty Ltd will declare its first and final dividend
on September 26, 2006.

Creditors are required to submit their proofs of debt by
September 20, 2006, to be included in the company's distribution
of dividend.

The liquidator can be reached at:

         Peter Goodin
         Brooke Bird & Co
         Chartered Accountants
         471 Riversdale Road
         Hawthorn East, Victoria 3123
         Australia
         Telephone: 9882 6666


T & S FINANCIAL: Members and Creditors' Meeting Set on Sept. 26
---------------------------------------------------------------
The creditors and members of T & S Financial Services Pty
Limited will meet on September 26, 2006, to hear the report from
Liquidator John Vouris on the company's wind-up and property
disposal exercises.

The Liquidator can be reached at:

         John Vouris
         Lawler Partners
         Level 7, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9232 6800


TG SERVICES: To Declare Dividend for Priority Creditors
-------------------------------------------------------
TG Services Atlanta 96 Pty Limited will declare its first and
final dividend for the company's priority creditors on
September 26, 2006, excluding creditors who were unable to prove
their claims on September 25, 2006.

The liquidator can be reached at:

         Murray Godfrey
         RMG Partners
         Level 12, 88 Pitt Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9231 0889


WATER TREATMENT: Hearing of Liquidation Bid Fixed on Sept.11
------------------------------------------------------------
A petition to liquidate Water Treatment Products Ltd will be
heard before the High Court of Tauranga on September 11, 2006,
at 10:45 a.m.

Crane Distribution NZ Ltd filed the petition with the court on
July 24, 2006.

Crane Distribution's Solicitor can be reached at:

         J.E.M. Connell
         Connell & Connell, Solicitors
         Level Fifteen, ASB Bank Centre
         135 Albert Street, Auckland City
         New Zealand


WE-R1.ORG: Members and Creditors' Meeting Set on September 29
-------------------------------------------------------------
The members and creditors of We-R1.Org Pty Limited will hold a
final meeting on September 29, 2006, at 10:00 a.m., to receive
Liquidator Danny Vrkic's report on the company's wind-up
proceedings and the property disposal exercises.

The Liquidator can be reached at:

         Danny Vrkic
         Jirsch Sutherland & Co - Wollongong
         Chartered Accountants
         Level 3, 6-8 Regent Street
         Wollongong, New South Wales 2500
         Australia
         Telephone:(02) 4225 2545
         Facsimile:(02) 4225 2546


YARRA CAPITAL: Creditors Resolve to Close Business
--------------------------------------------------
On August 17, 2006, creditors of Yarra Capital Group Pty Ltd
convened and decided to close the company's business.

In this regard, Gideon Rathner and David Coyne were appointed as
joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Gideon Rathner
         David Coyne
         Lowe Lippmann
         Chartered Accountants
         5 St Kilda Road
         St Kilda
         Victoria 3182
         Australia


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

AFFINITY GLOBAL: Names Choi Wai Lung as Liquidator
--------------------------------------------------
Shareholders of Affinity Global Co Ltd appointed Choi Wai Lung,
Edward as liquidator on August 9, 2006.

Mr. Choi can be reached at:

         Choi Wai Lung, Edward
         Room C, 2/F., Wing Tat Commercial Bldg
         121-125 Wing Lok Street, Central
         Hong Kong


CHEERFUL ARTS: Creditors' Proofs of Claim Due on September 25
-------------------------------------------------------------
Cheerful Arts Printing Ltd Chairman Wong Sai Ming requires the
creditors of the company to prove their claims by September 25,
2006.

Failure to present proofs of claim by the due date will exclude
a creditor from sharing in any distribution the company will
make.


CLASSICS ENTERPRISES: Liquidation Process Initiated
---------------------------------------------------
The High Court of Hong Kong issued a wind-up order against
Classics Enterprises Ltd on August 9, 2006.

According to the Troubled Company Reporter - Asia Pacific, BII
Finance Co Ltd filed the petition with the Court on April 28,
2006.


DYNAWAY INTERNATIONAL: Enters Wind-Up Proceedings
-------------------------------------------------
The High Court of Hong Kong issued a wind-up order against
Dynaway International Investment Limited on August 9, 2006.

The wind-up petition was filed with the Court on June 9, 2006.


GRAND STAND: Court Approves Wind-Up Petition
--------------------------------------------
The High Court of Hong Kong on May 29, 2006, received a wind-up
petition against Grand Stand Holdings Ltd.

The Court issued a wind-up order against the company on
August 9, 2006.


H.K. TEMPO: Court Favors Wind-Up
--------------------------------
The High Court of Hong Kong issued a wind-up order against H.K.
Tempo Recycling Co Ltd on August 9, 2006.

According to the Troubled Company Reporter - Asia Pacific, Woo
Sai Lung filed the wind-up petition with the court on June 10,
2006.  The petition was heard on August 9, 2006.


HONOROLE ENTERPRISES: Members' Final Meeting Slated for Sept. 25
----------------------------------------------------------------
Members of Honorole Enterprises Ltd will convene on September
25, 2006, 11:00 a.m. at Flat C., First Floor, Winner House, 27-
37 D' Aguilar Street, Central, Hong Kong.

At the meeting, Liquidator Ng Yuk Pui, Kelly will present a
report regarding the company's wind-up and property disposal
activities.


INFOAGE INTERNATIONAL: Appoints Joint and Several Liquidators
-------------------------------------------------------------
Shareholders of Infoage International Ltd appointed Kenny King
Ching Tam and Mat Ng as joint and several liquidators on
August 15, 2006.

The Joint Liquidators can be reached at:

         Mat Ng
         17/F., Chun Wo Commercial Centre
         23 Wing Wo Street, Central
         Hong Kong


I-QUEST CORPORATION: Members & Creditors to Hear Wind-Up Report
---------------------------------------------------------------
Members and creditors of I-Quest Corporation Ltd will convene on
September 29, 2006, 3:00 p.m. and 4:00 p.m. respectively at
20/F., Prince's Building, 10 Chater Road, Central, Hong Kong.

During the meetings, Liquidator John James Toohey will report on
the company's wind-up and property disposal exercises.


INTERWINES LIMITED: Receives Wind-Up Order from Court
-----------------------------------------------------
Interwines Ltd received on August 9, 2006, a wind-up order from
the High Court of Hong Kong.

The wind-up petition was filed before the Court on June 9, 2006.


JOVELL INCORPORATION: Court Appoints Joint Liquidators
------------------------------------------------------
The High Court of Hong Kong on July 21, 2006, appointed Wu Shek
Chun, Wilfred and Yu Tak Yee, Beryl as joint and several
liquidators for Jovell Incorporation Ltd.

The Troubled Company Reporter - Asia Pacific reported on January
10, 2006, that the High Court of Hong Kong issued a wind-up
order against the company on December 21, 2005.


KIG GLASS: June 30 Balance Sheet Reveals Insolvency
---------------------------------------------------
KIG Glass Industrial Berhad submitted for public release its
unaudited financial report for the second quarter ended June 30,
2006.

The group recorded lower revenues of MYR1.84 million for the
quarter under review as compared to MYR17.44 million in the
quarter ended June 30, 2005.  The decrease was due to the fact
that the KIG Glass and its subsidiary, Zibo Jiali Glass Industry
Co. Ltd, have both ceased production operations.

However, the Group recorded a lower loss before taxation of
MYR1.81 million for the current quarter as compared to MYR15.33
million in the same quarter last year.  The lower loss was
mainly attributable to:

   -- the deconsolidation of its loss making subsidiary, Zibo
      Jiali Glass Industry; and

   -- lower depreciation charge due to recognition of
      impairment losses on property, plant and equipment in
      the last financial year ended December 31, 2005.

The group's turnover decreased to MYR1.84 million for the
current quarter as compared to MYR2.95 million in the preceding
quarter.  Loss before taxation increased to MYR1.81 million as
compared to MYR1.71 million in the preceding quarter due to
lower sales.

As of June 30, 2006, the group's accumulated losses reached
MYR289,365,000.

The group's June 30, 2006, balance sheet revealed strained
liquidity with current assets of MYR12,844,000 available to pay
current liabilities of MYR153,683,000 coming due within the next
12 months.  The group has a net current deficit of
MYR140,839,000.

As of June 30, 2006, the group has total assets of MYR57,173,000
and total liabilities of MYR153,698,000, resulting into a
stockholders' deficit of MYR96,525,000.

There was no dividend paid or declared since the end of fiscal
2005.

The scale of losses incurred by KIG Glass over the years have
significantly eroded its share capital base and the current net
liability position of the company has demonstrated its lack of
working capital to support its existing operations.  In this
regard, the company's board of directors are compelled to
protect the long-term interests of the shareholders and
creditors, to prevent delisting of the Company.

Due to insolvency, the company has recently been classified
under Practice Note 17.  Accordingly, the directors are of the
opinion that the prospects for the rest of the year are not
expected to improve.

The company's second quarter report and its accompanying notes
are available for free at:

http://bankrupt.com/misc/tcrap_kigglass083106.xls
http://bankrupt.com/misc/tcrap_kigglassnotes083106.doc

                    About KIG Glass Industrial

Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass
Industrial Berhad -- http://www.kedaung.com/-- manufactured and
sold glassware, glass blocks and carton boxes.  The firm's other
activities included manufacturing of ceramic roof tiles.  Its
operations were carried out in Malaysia and China.

Due to its inability to pay debts, the Company ceased operation
in May 2005.  As of December 31, 2005, the KIG Group's
accumulated losses stood at almost MYR300 million.  The
shareholders' funds of the KIG Group was in deficit of
approximately MYR93 million while its total borrowings amounted
to approximately MYR104 million.

As of June 30, 2006, the group has total assets of MYR57,173,000
and total liabilities of MYR153,698,000, resulting into a
stockholders' deficit of MYR96,525,000.


LKN-PRIMEFIELD: Uses SGD4M from Rights Issue to Repay Debt
----------------------------------------------------------
LKN-Primefield Limited disclosed on July 4, 2006, that the
company has raised net proceeds of approximately SGD134.8
million after deducting estimated expenses of approximately
SGD0.6 million from the Rights Issue.

In addition, the company announced on June 20, 2006, that the
HEM Disposal was completed on June 20, 2006, and SGD15.2 million
out of the net sale proceeds of SGD16.2 million is to be applied
towards the redemption of the Existing Bonds.  The company
intends to use SGD115.9 million out of the SGD134.8 million net
proceeds from the Rights Issue to redeem the balance of
approximately SGD115.9 million in principal amount of Existing
Bonds and the balance of approximately SGD18.9 million of the
net proceeds for working capital purposes of the Group

In and update on August 29, 2006, the company said it had
utilized approximately SGD4.8 million from the balance net
proceeds of the Rights Issue amounting to approximately SGD18.9
million to increase the paid-up capital of Augustland Sdn Bhd --
a wholly owned subsidiary of the company.

The proceeds from the increase in the paid-up capital of
Augustland together with the internal funds from Augustland were
used to repay in full a bank loan of approximately MYR11.77
million -- equivalent to approximately S$5.05 million -- owed by
Augustland.

                 About LKN - Primefield Ltd

LKN-Primefield Ltd is a Singapore-based company involved in
investment holding and investing in property for rental.
Through a number of subsidiaries, the company is engaged in
building and civil engineering construction; the construction of
crude oil tanks and piping systems; commercial and home repair
works and the provision of related maintenance services;
property development, investment and management; property
rental; the operation of hotels and restaurants, and the
provision of hotel management and consultancy.  LKN is also
involved in the manufacture, retail sale, distribution, import
and export of computer hardware (including computer peripherals)
and software, and the development of multimedia transactional
payphone kiosks.  In addition, it is an ESDN (electronic service
delivery network) provider that owns and operates a large
network of public broadband transactional terminals. The
company's operations are mainly concentrated in Singapore, China
and Indonesia.

                          *     *     *

On November 29, 2004, LKN-Primefield and certain of its
subsidiaries entered into a debt restructuring plan with the
company's bondholders. HSBC Trustee (Singapore) Ltd. acted as
the trustee for the bondholders; KPMG Business Advisory Pte.
Ltd. acted as New Restructuring Agent/Independent Special
Consultant/Paying Agent.


SPECIAL COATINGS: Enters Wind-Up Proceedings
--------------------------------------------
Special Coatings Service Co Ltd received a wind-up order from
the High Court of Hong Kong on August 9, 2006.

The Troubled Company Reporter - Asia Pacific report that
Shanghai Zhenhua Port Machinery Co Ltd filed the wind-up
petition on May 15, 2006.


SEEDTRON LIMITED: Liquidator to Present Wind-Up Report
------------------------------------------------------
Liquidator Yeung Chi Wai will meet with the members of Seedtron
Ltd to present a report on the company's wind-up and property
disposal activities.

The report will be presented at Rooms 301-2 Lucky Building, 39
Wellington Street, Central, Hong Kong on October 13, 2006, at
4:00 p.m.


SPECTRUM BRANDS: Fitch Junks Rating on US$2.3-Billion Debt
----------------------------------------------------------
Fitch Ratings has initiated rating coverage of Spectrum Brands,
Inc.:

   -- Issuer Default Rating (IDR) CCC;
   -- Senior secured bank facility B/RR1; and
   -- Senior subordinated debentures CCC-/RR5.

The Rating Outlook is Stable.  Approximately US$2.3 billion of
debt is covered by these actions.

The rating reflects Spectrum Brand's high leverage with FFO
adjusted leverage of 8.06 times as well as debt/EBITDA of 7.68x
for the last 12 months ending July 2, 2006.  Much of SPECTRUM
BRAND's US$2.3 billion in total debt was the result of seven
acquisitions completed since the fiscal year ended September 30,
2003, with the bulk occurring in 2005.

The acquisitions served to lessen the company's reliance on
essentially one product - the Rayovac battery.  However, poor
performance in batteries combined with high levels of
acquisition-related debt has hampered free cash flow which
declined from US$163.5 million at the FYE September 30, 2005 to
US$22 million at the LTM ending July 2, 2006.

There has also been a declining trend in interest coverages
since the 2005 acquisitions.  EBITDA/interest has fallen
steadily from 3.09x at FYE03 to 1.75x at LTM July 2.  The
company's high leverage provided little flexibility for a myriad
of issues over the past two years: competitive actions in
grooming, a structural change in the European battery market,
retailer inventory adjustments in batteries and lawn & garden
during 2005 and 2006 in North America and escalating commodity
costs which served to more than offset restructuring savings and
price increases.

Spectrum Brand is a leading provider of private label batteries
in its Europe/Rest of World (ROW) segment.  Batteries represent
70% of this segment and about half is private label.  Private
label is growing rapidly, however margins are significantly less
robust than Spectrum Brand's branded batteries and continues to
be under pressure.

The Europe/ROW segment represented 29% of revenues and 30% of
operating income for the nine months ending July 3, 2005 with a
nine month operating margin of 14.6%.  For the comparable period
in 2006, revenues have declined 17% with operating profits down
43%.  Part of the revenue decline was the company walking away
from US$30 million in low-margined revenues.

Spectrum Brand intends to remain a private-label participant.
Given that the pressure is expected to continue while the
company works on lowering its operating costs, profits from this
key region is expected to be a drag on the consolidated
performance in the near term.

Additionally, while the company has hedged it zinc exposure
through the first half of FYE07, the reset in light of expected
tightness in the zinc market and other energy related costs will
contribute to margin pressure as well.  The current trajectory
in the near term appears negative without actions to provide
additional financial flexibility.

Spectrum Brand's management has historically been able to
achieve cost savings ahead of schedule.  The company is in the
process of three separate actions -acquisition integration,
flattening the North American organization, and reorganizing its
European operation.

These are expected to lead to cost savings of US$150 million by
2008.  The company reports that it is on track with all
initiatives.  The ability to execute on cost savings and the
company's leading brands are also encompassed in the ratings.
The company has had to amend their financial covenants twice in
the past year to address declining operations.

Thus, a concern is that continued declines in Europe which will
take several quarters to address, potential competitive actions
by participants who have substantially more resources, as well
as increased commodity costs still exist and could continue to
pressure margins and complying with covenants.

Spectrum Brand reports that it should comply with its covenants
into the foreseeable future but the ratios appear to be
relatively tight.  Spectrum Brand's ability to continue working
well with its bank group is necessary.

The Rating Outlook is Stable as the company has announced their
discomfort with the present levels of leverage given
underperformance against forecast and has hired Goldman Sachs to
evaluate potential asset sales.  The company's intent is to
review its line of business with a plan to begin executing asset
sales by next spring.

Lines of businesses to be sold, cash flow lost and amount of
debt reduction is unknown at present.  The goal to de-leverage
is viewed positively in light of recent performance trends.
Incorporated into the Stable Outlook is the expectation that the
company will be able to receive waivers, if needed, from its
debt-holders.

The Recovery Ratings and notching in the debt structure reflect
Fitch's recovery expectations under a scenario in which
distressed enterprise value is allocated to the various debt
classes.  The recovery ratings for the bank facility benefit
from a substantial enterprise value which more than covers
maximum outstanding.

There is also covenants and conditions precedent to each loan
that provides protection and precludes sizeable amounts of debt
without sizeable increases in cash flow.  The senior
subordinated debentures reflect the expectation of below average
recovery prospects in a distressed case.

Virtually all of Spectrum Brand's revenue growth from US$573
million in FYE02 to the US$2.359 billion in FYE05 was derived
from acquisitions.  Revenues in the nine months ending July 2,
2006 also increased 13% to US$1.943 billion benefiting from late
FYE05 acquisitions.  It is to be noted however that if sales
were adjusted to assume that all acquisitions during 2005 were
treated as if they had been completed on the first day of fiscal
2005, net sales for the nine months would have declined 6%.

On an as reported basis, FYE05's gross margin declined 480bps to
37.9% due to mix (320bps) and purchase accounting inventory
value charges (160bps), which increased costs of goods, sold. A
normalized EBITDA margin with the 160bps added back would be
14%.

However, poor performance in batteries and escalating commodity
costs during the nine months ending July 2, 2006 reduced the
EBITDA margin to 11.5% -250bps below prior year.  Thus while
leverage is down slightly to 7.7x from 7.9x at the end of the
fiscal year, LTM July 2, 2006 EBITDA/interest has continued to
weaken as the current fiscal year bears the full brunt of the
debt and interest rate increases as the financial covenants were
amended in December and May.

Spectrum Brand is a global branded consumer products company
with operations in seven product categories: consumer batteries;
lawn and garden; pet supplies; electric shaving and grooming;
household insect control; electric personal care products, and
portable lighting.  Today, batteries represent just 33% of
global revenues from 90% in 2002 (41% derived internationally).

                     About Spectrum Brands

Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE:
SPECTRUM BRAND)-- http://www.spectrumbrands.com/-- is a
consumer products company and a supplier of batteries and
portable lighting, lawn and garden care products, specialty pet
supplies, shaving and grooming and personal care products, and
household insecticides.  Spectrum Brands' products are sold by
the world's top 25 retailers and are available in more than one
million stores in 120 countries around the world.  The company
has manufacturing and distribution facilities in China,
Australia and New Zealand, and sales offices in Melbourne,
Shanghai, and Singapore.

                          *     *     *

On June 15, 2006, Standard & Poor's Ratings Services affirmed
its ratings on Spectrum Brands Inc., including the 'B-'
corporate credit rating. At the same time, the ratings were
removed from CreditWatch, where they were placed with negative
implications April 6, 2006, following the Company's
substantially lowered earnings guidance for the second quarter.
The rating outlook is negative.

Moody's Investors Service downgraded all ratings of Spectrum
Brands, Inc.  The outlook for the ratings is stable.  The action
concluded the review for downgrade that was initiated on April
7, 2006.  Ratings downgraded include Corporate family rating to
B3 from B2; US$300 million senior secured revolving credit
facilities to B2 from B1; US$1.2 billion senior secured term
loan facilities to B2 from B1; US$700 million senior
subordinated notes due 2015 to Caa2 from Caa1, and US$350
million senior subordinated notes due 2013 to Caa2 from Caa1.


STAR PROFIT: Court Names Wu and Yu as Liquidators
-------------------------------------------------
On April 10, 2006, the High Court of Hong Kong appointed Wu Shek
Chun, Wilfred and Yu Tak Yee, Beryl as Joint and Several
Liquidators for Star Profit Development Ltd.

On November 25, 2005, the Troubled Company Reporter - Asia
Pacific reported that the High court issued a wind-up order
against the company's operations on November 9, 2005.


TAOHO DESIGN: Members and Creditors Hold Annual Meeting
-------------------------------------------------------
Members and creditors of Taoho Design Architects Ltd convened
for their annual meetings on September 2, 2006, at 9:30 a.m. and
10:00 a.m. respectively.

During the meetings, Liquidator Kenny King Ching Tam presented a
report regarding the company's wind-up.


TRADE BRIGHT: Court Orders Wind-Up
----------------------------------
Trade Bright International Ltd was ordered on August 9, 2006, by
the High Court of Hong Kong to wind up its operations.

A wind-up petition was filed with the Court on June 9, 2006.


UNITED BUILDING: High Court Issues Wind-Up Order
------------------------------------------------
The High Court of Hong Kong issued a wind-up order against
United Building Material (Hong Kong) Ltd on August 9, 2006.

According to the Troubled Company Reporter - Asia Pacific, E Man
Construction Co Ltd filed the petition before the Court on
May 25, 2006.


WRAY INTERNATIONAL: Creditors Must Prove Debts by October 31
------------------------------------------------------------
Creditors of Wray International Ltd are required to prove their
debts by October 31, 2006.  Proofs of claim are to be submitted
to Liquidator Wong Leung Wai.

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

The Liquidator can be reached at:

         Wong Leung Wai
         Room 2001-4, China Insurance Group Bldg
         141 Des Voeux Road, Central
         Hong Kong


YINSON KNITTING: Court Issues Wind-Up Order
-------------------------------------------
The High Court of Hong Kong issued a wind-up order against
Yinson Knitting Ltd on August 9, 2006.

On July 14, 2006, the Troubled Company Reporter - Asia Pacific
reported that the Hang Seng Bank Ltd filed a petition to wind-up
the company's operations on June 9, 2006.  The petition was
heard on August 9, 2006.


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

CELLCAST PLC: Aims to Raise GBP1.3 Million to Avert Liquidation
---------------------------------------------------------------
Cellcast PLC intends to place 16,040,384 new ordinary shares in
order to raise approximately GBP1.3 million and avert a possible
liquidation, which would unlikely provide any return to
shareholders.

Shareholders will convene at 10 a.m. on Sept. 25, 2006, to vote
on the proposed placement, which carries a placing price of 8
pence per new ordinary share.

The Company's Board of Directors opines that, having made due
and careful enquiry and after taking into account the net
proceeds of the placing to be received by the Company, the
working capital available to the Group will, on admission, be
sufficient for its present requirements, that is for at least 12
months from admission.

The net proceeds of the placing of approximately GBP1.2 million
will be used to allow the Company to continue with the roll-out
of its international development program following a period when
the Company has seen a significant depletion of working capital
following operating losses which the Directors believe have in
part been caused by a reorganization of Sky's Electronic
Programming Guide.  The Company's current focus is on overseas
opportunities, and it is important that these are not frustrated
by lack of resources.

                   Details of the Placing

On behalf of and as agents for the Company and pursuant to the
terms and conditions of the Placing Agreement, Daniel Stewart
and HB have conditionally agreed to use their reasonable
endeavors to place 16,040,384 new ordinary shares with
institutional and other investors at a price of 8 pence per
Placing Share, to raise approximately GBP1.3 million before
expenses.  The Placing is conditional, inter alia, on the
passing of the necessary Resolution at the EGM and Admission
taking place between Sept. 26 and Oct. 24, as the Company,
Daniel Stewart and HB may agree.  The Placing is not being
underwritten.

CEO Andrew Wilson and Chief Operating Officer Bertrand Folliet
have agreed to subscribe for an aggregate of 3,125,000 Ordinary
Shares pursuant to the Placing through Harkness Trading Limited,
a company they beneficially own.

Certain institutional investors in the Company have indicated a
desire to realize their shareholdings and HB has agreed to
purchase these holdings, being in aggregate 1,643,666 Ordinary
Shares at the Placing Price conditional, inter alia, on
Admission.

On Admission, the Directors (and persons associated with them in
accordance with the AIM Rules), will hold, in aggregate,
approximately 9,278,397 Ordinary Shares representing 20.9
percent of the Enlarged Issued Share Capital.

The Placing Shares, once issued, will rank pari passu with the
Existing Ordinary Shares, including the right to receive all
dividends and other distributions thereafter declared, made or
paid.  The Placing Shares are expected to be admitted to trading
on AIM on 26 September 2006.

                  Fair and Reasonable Opinion

Harkness Trading Limited, which is beneficially owned by Andrew
Wilson and Bertrand Folliet, has agreed to make a loan available
to the Company of up to GBP200,000 pending completion of the
Placing.  No interest will be payable on the loan which will be
repaid to Harkness Trading Limited out of the proceeds of the
Placing.

The Directors, other than Andrew Wilson and Bertrand Folliet
(given their interest in Harkness Trading Limited), having
consulted with the Company's nominated adviser, consider that
the terms of the loan by Harkness Trading Limited and the issue,
pursuant to the Placing, of new Ordinary Shares to Harkness
Trading Limited are fair and reasonable insofar as Shareholders
are concerned.

                  Expected timetable of events

Latest time and date
for receipt of Forms of Proxy          10 a.m. on Sept. 23, 2006

Extraordinary General Meeting          10 a.m. on Sept. 25, 2006

Dealings in Placing Shares
commence on AIM and CREST accounts
credited in respect of the Placing
Shares to be held in uncertified form             Sept. 26, 2006

Dispatch of definitive share
certificates in respect of the
Placing Shares to be held
in certified form                                   Oct. 3, 2006

                         About Cellcast

Headquartered in London, United Kingdom, Cellcast plc
-- http://www.cellcast.com/-- has developed strategies for
integrating mobile content into the multi-channel TV
environment.  Its applications and programming are already
building new traffic for mobile networks and generating
significant revenue for its broadcast partners in Europe, the
Middle East and Asia.  Cellcast also has a presence in Mumbai,
India.


GENERAL MOTORS: Indian Arm Avails of Lower Excise Duties
--------------------------------------------------------
General Motors India has decided to fit its new U-VA model with
a 1.2-liter engine to avail of excise benefits for small cars
offered by the Indian Government, The Times of India reports.

According to the report, the central government will provide tax
breaks for smaller cars in line with its plan to make India a
compact car hub.  Hence, cars fitted with smaller engines will
enjoy a reduced excise duty of 16%.  The excise tax stands at
24% for bigger models.

MoneyControl says that General Motors has pinned its hopes on
using India as an export hub.  The carmaker is losing out on its
home turf but it is trying to make up for that by capturing more
of the emerging Asian markets.

MoneyControl learns that General Motors will launch its small
car Aveo UVA in November this year.  In addition, the carmaker
will introduce in April 2007 the Chevy Spark, which will be
manufactured in the Halol plant.  General Motors is also looking
at boosting capacity by constructing a second plant in India.

As reported by the Troubled Company Reporter - Asia Pacific on
August 15, 2006, General Motors plans to set up a new unit at
Talegaon, near the western city of Pune, that will have initial
annual production capacity of 140,000 cars and capability for
significant expansion as the market demands.

According to the TCR-AP, construction of the 120-hectare
facility -- which will cost over US$300 million -- will start at
the end of August and is due to finish within 20 months.
Production is slated to start in the third quarter of 2008.

In addition, the TCR-AP reported that the carmaker aims to
capture 10% of India's booming car market by 2010.

                      About General Motors

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

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

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

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


GENERAL MOTORS: Delivers 368,776 Vehicles; Retail Sales Up 8%
-------------------------------------------------------------
General Motors Corp.'s dealers in the United States sold 368,776
new cars and trucks in August 2006.  Retail sales were up 8% on
a sales day adjusted basis, compared with August 2005.

"August retail sales were up almost 30,000 units compared to
last year.  That's great news.  This was one of the stronger
retail months of 2006, with our performance led by such launch
vehicles as the Pontiac Torrent and G6, Saturn Sky, Chevrolet
Cobalt, Impala and Buick Lucerne," said Mark LaNeve, General
Motors North America vice president, Vehicle Sales, Service and
Marketing.

"Importantly, we're capitalizing on the sale of fuel-efficient
cars and trucks including such "30 mpg and Above Club" members
as Pontiac G6 coupe and G5, Chevy HHR, Cobalt, Malibu and
Impala, and Saab 9-3.  Our large pickup retail sales for
Chevrolet Silverado, Avalanche and GMC Sierra were up 27 percent
compared with a year ago.  Customers clearly are responding to
the quality, value, versatility and fuel efficiency of our cars
and trucks.  We encourage everyone in the new-vehicle market to
take advantage of our Final Summer Bonus Cash sales event that
runs through September 5."

Due to the success of new products, GM has seen sales strengthen
over the last few months.  GM market share on a retail basis has
improved significantly in the last 90 days due to great launch
vehicle performance and a broad-range of fuel-efficient
vehicles.

Consistent with its North America turnaround plan, GM continues
to run above 3 million retail units on an annualized basis.

GM also continues to reduce its reliance on low-margin daily
rental sales.  Daily rental sales were down 20% compared to
year-ago levels, and were down 23% compared to July 2006.  Total
fleet sales -- including daily rentals -- were down 15%, or
14,112 vehicles, compared to year-ago levels.

Total GM United States retail passenger car sales are up 5%
versus August last year, demonstrating that GM can compete in
all product categories and take advantage of shifting consumer
preferences.

Chevrolet, GMC, Cadillac, Saab and Buick all saw retail sales
increases in August.

Buick Lucerne, Pontiac G6, Chevy Malibu and Impala drove the
mid-car category.  There were retail deliveries of 9,021 Buick
Lucerne; 7,889 Pontiac G6 (up 18%) and 10,109 Chevy Impala (up
62%) vehicles last month.

Chevrolet retail sales were up 8%, to 144,640 vehicles, led by
an 11% increase in retail truck deliveries.  Chevrolet also had
a 3% hike in retail car deliveries, driven by more than 60%
increases in both Monte Carlo and Impala.

GMC retail sales were up 17% for August with 36,394 vehicles
delivered, driven by 9,407 all-new 2007 Yukon and Yukon XL
sales.

Cadillac retail sales were up 17%, to 17,062 vehicles, led by a
22% hike in retail trucks, including 3,762 all-new 2007 Escalade
and Escalade ESV sales.  There was a 13% rise in Cadillac retail
car deliveries, including 4,041 CTS; 3,138 DTS; and 2,658 STS.

Saab delivered 3,157 retail vehicles in August, up 18% compared
to last year.  Saab 9-3 sales were up 39% retail.

Buick retail deliveries were up 10%, to 17,711 vehicles, powered
by a 31% rise in retail car deliveries.  There were 13,981
combined retail deliveries of LaCrosse and Lucerne, marking the
third consecutive month exceeding 10,000 units.

Saturn retail car sales are up 5% compared with August 2005,
with 8,677 vehicles delivered, including 1,073 Skys.

Chevrolet HHR and Equinox, Saturn Vue and Pontiac Torrent pushed
total small utility sales up 18% compared with a year ago, and
up 45% in the first eight months of the year compared to the
same period a year ago.  Chevrolet HHR saw a 62% increase in
retail sales compared to last year and had CYTD deliveries of
53,208 vehicles.  Chevrolet Equinox had one of its best retail
sales months of the year with 7,737 deliveries.

On the truck side of the market, large pickup truck retail
deliveries were up 27% with 43,185 Chevy Silverado and 16,530
GMC Sierra trucks sold.  Chevy Avalanche retail sales were up
42% compared to a year ago.  GMC had one of its best retail
sales months of the year, with 36,394 vehicles delivered, a 17%
increase from August 2005.  There were 2,002 GMC Canyon retail
deliveries.  GM sold 5,214 all-new 2007 Chevrolet Avalanche;
11,144 Tahoe; 5,332 Suburban; 5,869 GMC Yukon; and 3,538 Yukon
XL vehicles at retail in August.

HUMMER had its second-best total sales month of 2006 with 6,711
total deliveries.  H3 led the charge, up 10% in total sales over
August 2005 with its third best month since launch.  CYTD total
HUMMER sales of 46,497 vehicles were up 49% compared with the
same eight months one year ago.

GM's luxury utilities also posted solid retail sales results in
August, with the all-new 2007 Cadillac Escalade, Escalade ESV
and Cadillac SRX.  August was the best retail sales month of the
year for large utilities, up 22% retail; large luxury utilities
were up 17%.

GM sports cars also posted very strong August retail sales
results, with a 93% improvement compared with year-ago levels.
Corvette retail sales were up 31%, with 2,984 vehicles
delivered.  Pontiac Solstice (1,515 vehicles) and Saturn Sky
(1,073 vehicles) are continuing their brisk retail sales pace.

Mr. LaNeve was very encouraged by strong June, July and August
sales performances, led by GM's launch vehicles and passenger
cars.

"Offering industry-leading products with best-in-class features
and outstanding fuel economy means we are doing the right thing
for the customer.  We are seeing a continuing stability in our
sales and positive momentum."

                     Certified Used Vehicles

August sales for all certified GM brands, including GM Certified
Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn
Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles
and HUMMER Certified Pre-Owned Vehicles, were 44,717 units, down
12% from last August.  Total year-to-date certified GM sales are
347,596 units, down nearly 4% from the same period last year.

GM Certified Used Vehicles, the industry's top-selling certified
pre-owned brand, posted 38,123 sales in August, down 13% from
August 2005.  Year-to-date sales for GM Certified Used Vehicles
are 300,205 units, down 2%.

Cadillac Certified Pre-Owned Vehicles posted 3,609 sales in
August, up 4% from last August.  Saturn Certified Pre-Owned
Vehicles sold 1,976 units, down 30.5%.  Saab Certified Pre-Owned
Vehicles sold 928 units, up 2%.  In its eighth month of
operation, HUMMER Certified Pre-Owned sold 81 units.

"Although August sales were challenging, the industry's top-
selling certified brand, GM Certified Used Vehicles, increased
sales 14 percent over July, while both Cadillac and Saab
Certified Pre Owned Vehicles showed positive year-to-year gains
in August," said Mr. LaNeve.

GM North America Reports August 2006 Production, 2006 Third
Quarter Production Forecast Remains Unchanged at 1.050 Million
Vehicles; 2006 Fourth Quarter Production Forecast Set at 1.130
Million Vehicles

In August, GM North America produced 465,000 vehicles (179,000
cars and 286,000 trucks).  This is down 25,000 units or 5%
compared to August 2005 when the region produced 490,000
vehicles (181,000 cars and 309,000 trucks).  (Production totals
include joint venture production of 26,000 vehicles in August
2006 and 28,000 vehicles in August 2005.)

The region's 2006 third quarter production forecast remains
unchanged at 1.050 million vehicles (405,000 cars and 645,000
trucks).  In the third quarter of 2005 the region produced 1.146
million vehicles (423,000 cars and 723,000 trucks).
Additionally, the region's initial 2006 fourth quarter
production forecast is set at 1.130 million vehicles (455,000
cars and 675,000 trucks), down approximately 12%, or 150,000
units, compared to 2005 fourth quarter actuals.  This production
adjustment does not reflect a reduction in GM's sales outlook,
but is consistent with our strategy to reduce low-margin daily
rentals, and takes into account the plan to shift production of
pick-ups to the next generation pick-ups during the fourth
quarter.

GM also announced 2006 revised third quarter and initial fourth
quarter production forecasts for its international regions.

GM Europe's 2006 third quarter production forecast remains
unchanged at 372,000 vehicles.  In the third quarter of 2005 the
region built 412,000 vehicles.  The region's 2006 initial fourth
quarter production forecast is set at 451,000 units, up 2% from
2005 fourth quarter actuals.

GM Asia Pacific's 2006 third quarter production forecast is
revised at 425,000 vehicles, down 13% from last month's
guidance.  In the third quarter of 2005 the region built 409,000
vehicles.  The region's 2006 initial fourth quarter production
forecast is set at 524,000 units, up 25% from 2005 fourth
quarter actuals.

GM Latin America, Africa and the Middle East -- The region's
2006 third quarter production forecast remains unchanged at
217,000 vehicles.  In the third quarter of 2005 the region built
207,000 vehicles.  The region's 2006 initial fourth quarter
production forecast is set at 211,000 units, up 12% from 2005
fourth quarter actuals.

                      About General Motors

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

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

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

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


GMAC LLC: Pending Sale Spurs S&P to Keep Rating on CreditWatch
--------------------------------------------------------------
Standard & Poor's Services said its rating on GMAC LLC, formerly
General Motors Acceptance Corp., remain on CreditWatch, where
they were placed on Oct. 3, 2005, pending completion of General
Motors Corp.'s planned sale of 51% of its ownership interest in
GMAC to a consortium led by Cerberus Capital Management.  Upon
completion of the sale, Standard & Poor's is likely to raise the
rating to 'BB+/B-1'.

"Several key closing conditions have recently been satisfied,
including the Pension Benefit Guaranty Corp.'s assurance that it
would not, as a result of the GMAC transaction, take action
under ERISA to terminate GM's pension plans or impose liability
on the purchaser or GMAC," explained Standard & Poor's credit
analyst Scott Spritzen.

In addition, Cerberus was granted United States Federal Trade
Commission's anti-trust approval for the transaction, and GMAC
finalized a US$10 billion funding facility with Citigroup.

                         About GMAC LLC

GMAC LLC -- formerly General Motors Acceptance Corporation -- is
a financial services company providing a range of services to a
global customer base.  It is a wholly owned subsidiary of
General Motors Corporation.  The Company operates in three
primary lines of business: Financing, Mortgage and Insurance.
GMAC LLC and its affiliated companies offer a variety of
automotive financial services to and through GM and other
automobile dealerships, and to the customers of those
dealerships.  The Company provides commercial financing and
factoring services to businesses in other industries, such as
manufacturing and apparel.  GMAC LLC's Mortgage operations
originate, purchase, service, sell and securitize residential
and commercial mortgage loans and mortgage related products.
The Company's Insurance operations insure and reinsure
automobile service contracts, personal automobile insurance
coverages (ranging from preferred to non-standard risk) and
selected commercial insurance coverages.  GMAC LLS has a
subsidiary in India called GMAC Financial Services India
Limited.


SILICON GRAPHICS: Wants to Hire Deloitte as Accountants
-------------------------------------------------------
Silicon Graphics Inc. and its debtor-affiliates asked the United
States Bankruptcy Court for the Southern District of New York's
authority to employ Deloitte Financial Advisory Services LLP to
provide accounting services -- specifically fresh-start
accounting -- relating to the Debtors' emergence from Chap. 11,
nunc pro tunc to June 29, 2006.

Deloitte Consulting LLP, an affiliate of Deloitte FAS, will act
as Deloitte FAS' subcontractor to assist in the systems
implementation of the fresh-start accounting analysis.

Deloitte FAS' services will include:

    (a) assistance with Disclosure Statement and Financial
        Projections;

    (b) preparation and substantiation of fresh-start balance
        sheet under Statement of Position 90-7;

    (c) posting of fresh-start entries back to Books of Entry;

    (d) application support;

    (e) assistance and valuation work per fresh-start under SOP
        90-7; and

    (f) assistance with accounting and financial reporting.

The Debtors will pay Deloitte FAS for its services in accordance
with negotiated hourly rates:

       Partner, Principal, or Director          US$600 to US$750
       Senior Manager                           US$475 to US$580
       Manager                                  US$400 to US$500
       Senior Staff                             US$275 to US$375
       Staff                                    US$225

The Debtors will indemnify and hold harmless Deloitte FAS from
all claims, liabilities, and expenses relating to the firm's
engagement, except to the extent judicially determined to have
resulted from the firm's recklessness, bad faith or intentional
misconduct.

Deloitte FAS also agree to defend, indemnify, and hold the
Debtors harmless from and against any loss, damages, or other
liabilities solely to the extent directly caused by any
negligent acts or omissions or willful misconduct of the firm
during the performance of its services.

Kirk Blair, a partner of Deloitte FAS, assures the Court that
his firm is a "disinterested person," as defined in Section
101(14) of the Bankruptcy Code.  Deloitte FAS has no connection
with, and holds no interest adverse to, the Debtors, their
creditors, or any other party-in-interest, Mr. Blair says.

                     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.

As of July 28, 2006, the company has total assets of
US$352,980,000 and total liabilities of US$662,258,000 resulting
into a stockholders' deficit of US$309,278,000.


SILICON GRAPHICS: Seeks Court OK to Tap KPMG LLP as Auditors
------------------------------------------------------------
Pursuant to Sections 327(a) and 328(a) of the United States
Bankruptcy Code, Silicon Graphics, Inc., and its debtor-
affiliates ask the U.S. Bankruptcy Court for the Southern
District of New York's authority to employ KPMG LLP as their
accountants and auditors, nunc pro tunc to June 19, 2006.

The Debtors relate that when they filed for bankruptcy, they
ceased employing Ernst & Young LLP as their primary auditors and
engaged KPMG because of KPMG's expertise in the field and
because the Debtors were able to negotiate a 15% discount on
KPMG's rates.  KPMG commenced work on June 19, 2006.

Barry Weinert, Esq., vice president and general counsel of
Silicon Graphics, Inc., relates that the Debtors need to retain
certified public accountants who will audit their financial
statements and issue an opinion related to the audit.  The
services are essential to the Debtors' continued operations and
plans of emerging from Chapter 11 as a public company.

Retaining KPMG is the most cost-effective manner of procuring
the required services, Mr. Weinert explains.

KPMG's services include:

    * auditing the Debtors' consolidated financial statements
      and control over financial reporting;

    * issuing an annual report;

    * reviewing quarterly financial statements required to be
      filed with the Securities and Exchange Commission;

    * analyzing accounting issues and advising the Debtors
      regarding the proper accounting treatment of events;

    * issuing a comfort letter in connection to filing under the
      Securities Act of 1933, at the Debtors' request; and

    * performing other accounting and auditing services for the
      Debtors as may be necessary or desirable, to the extent
      permitted under professional standards and as agreed to
      between the Debtors and KPMG.

The Debtors will pay KPMG according to the firm's customary
hourly rates, applying a 15% discount, in effect on the date the
services are rendered:

       Partners                               US$660 to US$770
       Directors/Senior Managers/Managers     US$495 to US$575
       Senior/Staff Accountants               US$250 to US$360
       Paraprofessionals                      US$120 to US$195

The Debtors will also reimburse KPMG for expenses incurred.

David A. Kane, a partner of KPMG, assures the Court that his
firm has no connection with, and holds no interest adverse to,
the Debtors, their creditors, or any other party-in-interest.
KPMG is a "disinterested person," as that term is defined in
Section 101(14) of the Bankruptcy Code, Mr. Kane says.

                      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.

As of July 28, 2006, the company has total assets of
US$352,980,000 and total liabilities of US$662,258,000 resulting
into a stockholders' deficit of US$309,278,000.


SILICON GRAPHICS: Favors Ernst & Young as Primary Auditors
----------------------------------------------------------
Prior to their bankruptcy filing, Silicon Graphics, Inc., and
its debtor-affiliates employed Ernst & Young LLP as their
primary auditors.

The Debtors had engaged KPMG LLP to replace Ernst & Young in the
course of their bankruptcy case.

Given their previous engagement, Ernst & Young developed
considerable knowledge regarding the Debtors' finances and
operations.  For this reason, the Debtors seek the United States
Bankruptcy Court for the Southern District of New York's
authority to employ Ernst & Young, nunc pro tunc to July 3,
2006, to:

    * provide transition services in connection with the
      Debtors' audit; and

    * perform certain post-report review procedures relating to
      the reuse of the firm's prepetition audit report.

Barry Weinert, Esq., vice president and general counsel of
Silicon Graphics, Inc., says the employment of Ernst & Young is
the most cost-effective way to ensure compliance with the
reporting requirements of the U.S. Securities and Exchange
Commission.

Pursuant to the terms of an engagement letter with the Debtors,
Ernst & Young will:

    (a) prepare for, and provide KPMG access to the firm's
        working papers for:

        -- the audit of the Debtors' June 24, 2005, consolidated
           financial statements; and

        -- reviews of the September 24, 2004, December 24, 2004,
           March 25, 2005, September 30, 2005, and December 30,
           2005, interim financial statements, performed in
           accordance with the standards of the Public
           Accounting Oversight Board;

    (b) respond to KPMG's inquiries resulting from their review;
        and

    (c) perform post-report review procedures relating to
        consent to the reuse of Ernst & Young's audit report,
        dated September 15, 2005, in the Debtors' filing of its
        consolidated financial statements for the year ended
        June 30, 2006, on Form 10-K.

Ernst & Young's professionals will be paid based on their
customary hourly rates:

       Partners and Principals               US$690 to US$730
       Senior Manager                        US$590 to US$665
       Manager                               US$495 to US$565
       Senior Staff                          US$300 to US$420
       Staff                                 US$240 to US$260

The Debtors will reimburse the firm's reasonable, out-of-pocket
expenses.

Rhonda W. Munnerlyn, a partner of Ernst & Young, assures the
Court that her firm is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code and as modified by
Section 1107(b) of the Bankruptcy Code.

                      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.

As of July 28, 2006, the company has total assets of
US$352,980,000 and total liabilities of US$662,258,000 resulting
into a stockholders' deficit of US$309,278,000.


SILICON GRAPHICS: Committee Taps FTI as Financial Advisors
----------------------------------------------------------
As reported in the Troubled Company Reporter on July 20, 2006,
Silicon Graphics, Inc., debtor-affiliates and the ad hoc
committee of certain holders of 6.50% Senior Secured Convertible
Notes objected to the proposed compensation structure under the
Official Committee of Unsecured Creditors' application to retain
FTI Consulting, Inc., as its financial advisors.

The United States Bankruptcy Court for the Southern District of
New York denied the Creditors' Committee's application on
July 19, 2006.

The Creditors' Committee again seeks the Court's authority to
retain FTI as its financial advisors, effective as of May 18,
2006.

Jaspaul Singh, co-chairperson of the Committee, relates that FTI
has formulated a revised compensation structure acceptable to
both the Ad Hoc Committee and the Debtors.

Specifically, FTI will be paid a fixed allowance through Sept.
30, 2006, in the form of a monthly payment of:

     -- US$175,000 for the period May 18 to July 17;

     -- US$125,000 for the period July 18 to August 17; and

     -- US$100,000 for the remaining period of August 18 through
        September 30.

The total monthly payment for the Final Period will be
US$100,000, regardless of the duration of the period.

Any services provided after September 30, 2006, will be billed
at FTI's customary hourly rates:

       Senior Managing Directors              US$595 to US$655
       Directors/Managing Directors           US$435 to US$590
       Associates/Consultants                 US$215 to US$405

Mr. Singh informs the Court that FTI has provided substantial
services to assist the Creditor's Committee in the negotiation
of the Global Settlement Agreement, the Debtors' Plan of
Reorganization, and the Disclosure Statement.  FTI continues to
provide services required by the Creditors' Committee, including
monitoring of operations, advising the Committee concerning the
confirmation process, and analyzing claims that may impact
distributions to unsecured creditors.

                      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.

As of July 28, 2006, the company has total assets of
US$352,980,000 and total liabilities of US$662,258,000 resulting
into a stockholders' deficit of US$309,278,000.


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

INCO LTD: Board Still Recommends Merger with Phelps Dodge
---------------------------------------------------------
Inco Ltd.'s Board of Directors continues to recommend that
shareholders vote in favor of the proposed combination between
Inco and Phelps Dodge Corp. at a special meeting of Inco
shareholders to be held on Sept. 7, 2006.  Accordingly, the
Board has recommended that Inco shareholders reject the offer by
Companhia Vale do Rio Doce to purchase for cash all of the
outstanding common shares of Inco.

Subject to certain exceptions, the Combination Agreement between
Inco and Phelps Dodge requires that Inco's Board continue to
recommend that shareholders vote in favor of the arrangement
between Inco and Phelps Dodge, unless the Board determines that
a competing acquisition proposal constitutes a "superior
proposal".  The Combination Agreement also provides that Inco
publicly may take a neutral position with respect to any
competing acquisition proposal only until 15 days following the
commencement of the competing acquisition proposal.  In the case
of the CVRD Offer, this 15 calendar day period expired Aug. 29,
2006.

On August 15, 2006, Inco said its Board of Directors was
remaining neutral and making no recommendation with respect to
the CVRD Offer.  Inco's Board did not determine that the CVRD
Offer constitutes a "superior proposal" for purposes of the
Combination Agreement.  However, the Board did determine that
the CVRD Offer could reasonably be expected to result in a
"superior proposal" and, in accordance with the Combination
Agreement, authorized Inco's senior management and advisors to
engage in discussions and negotiations with CVRD.
Representatives of Inco have had several conversations with
representatives of CVRD in which they indicated that Inco was in
a position to engage in negotiations with CVRD to ascertain
whether CVRD was willing to improve the CVRD Offer such that the
Board would be willing to declare it a "superior proposal" for
purposes of the Combination Agreement.  To date, CVRD has
indicated that it is not willing to enter into
substantive discussions or negotiations with respect to
improving the CVRD Offer.  Accordingly, the Inco Board,
consistent with its obligations under the Combination Agreement,
has determined to continue to recommend that Inco shareholders
vote in favor of the arrangement with Phelps Dodge and to
recommend that Inco shareholders reject the CVRD Offer.

In connection with Board's recommendation regarding the CVRD
Offer, the Company is filing today a Notice of Change to
Directors' Circular with Canadian securities regulatory
authorities and an amendment to Solicitation/Recommendation
Statement on Schedule 14D-9 with the United States Securities
and Exchange Commission.  The Notice of Change to Directors'
Circular will be mailed to Inco shareholders on Aug. 29.  Inco
shareholders are urged to read the Notice of Change to
Directors' Circular and the CVRD 14D-9 and any amendments
thereto because they contain
important information.

                        About Inco Ltd.

Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) --
http://www.inco.com/-- produces nickel, which is used primarily
for manufacturing stainless steel and batteries.  Inco also
mines and processes copper, gold, cobalt, and platinum group
metals.  It makes nickel battery materials and nickel foams,
flakes, and powders for use in catalysts, electronics, and
paints.  Sulphuric acid and liquid sulphur dioxide are produced
as byproducts.  The company's primary mining and processing
operations are in Canada, the U.K., and Indonesia.

                          *     *     *

Inco Limited's 3-1/2% Subordinated Convertible Debentures due
2052 carry Moody's Investors Service's Ba1 rating.


LONTAR PAPYRUS: Records US$12-Mil Net Loss on Foreign Exchange
--------------------------------------------------------------
PT Lontar Papyrus Pulp & Paper Industry posted a net loss of
US$12.20 million for the first-half period ending June 30, 2006,
according to the company's financials submitted to the Surubaya
Stock Exchange.

Revenues grew slightly to US$148.80 million for the six months
to June 30, 2006, giving the company a gross profit of
US$23.93 million, slightly lower than the US$29.81-million gross
profit recorded a year ago.

The company, however, posted a net other expense account for the
first half of 2006 amounting to US$18.06 million, due to a loss
on foreign exchange of US$8.18 million in the period on review,
against a US$8.21-million profit a year ago.

The company's financials include these financial highlights:

            PT Lontar Papyrus Pulp & Paper Industry
                      Financial Highlights
                       (in US$ thousands)

                                 As of           As of
                               06/30/2006      06/30/2005
                               -----------     ----------
     Current assets             US$135,411     US$176,449
     Total assets                  932,605        932,752
     Current liabilities           389,037        382,583
     Total liabilities             535,841        523,456
     Total equity                  396,764        409,296

                                  For the period ending
                               06/30/2006      06/30/2005
                               -----------     ----------
     Revenues                   US$148,803     US$144,978
     Cost of sales                 124,873        115,173
     Gross profit                   23,930         29,805
     Operating expenses             12,398         18,368
     Income from operations         11,532         11,437
     Other income/(exp.)           (18,056)         2,002
     Net profit/(loss)             (12,203)         9,639

PT Lontar Papyrus Pulp & Paper Industry manufactures pulp and
paper products.  The company's products include tissue,
printing, and writing paper.  Lontar Papyrus is a subsidiary of
Asia Pulp & Paper Co.

Indonesian ratings company Pefindo gave the company an 'idD'
long-term rating.


PAKUWON JATI: Fitch Assigns 'B' Issuer Default Ratings
------------------------------------------------------
Fitch Ratings has assigned Long-term foreign currency and local
currency Issuer Default Ratings of 'B' to Indonesia-based PT
Pakuwon Jati Tbk.  In addition, Fitch has assigned a National
Long-term rating of 'BBB-(idn)' to Pakuwon.  The Outlook for the
ratings is Stable.

Fitch has also assigned expected rating of 'B' with a Recovery
Rating of 'RR4' to the US$120-million senior unsecured notes due
2011 to be issued by Pakuwon Jati Finance B.V. and guaranteed by
Pakuwon.  The final rating is contingent upon receipt of
documents conforming to information already received.

Pakuwon's ratings are constrained by the project risks arising
from one major greenfield project, Superblock Gandaria, a 7.5-
hectare mixed-use development to be built between 2006 and 2009
in South Jakarta, at the cost of approximately IDR1.7 trillion.
The development, targeting the middle-to-upper income groups,
comprises of a shopping mall with a gross lettable area of
88,071 square meters, an office tower with a GLA of 55,592 sq m,
two condominium blocks with 688 units and a 325-room four star
hotel.  Pakuwon intends to pre-sell the office tower and
condominium on a strata-title basis to partly finance the
development.  The agency notes that while this strategy may
alleviate some constraint on liquidity, it also exposes Pakuwon
to the volatility in the Jakarta real estate market, where there
is an apparent oversupply in the office and condominium
segments.  Some mitigants to these risks include Pakuwon's track
record of successfully completing a similar mixed-use
development in Surabaya, its ability to phase out the
construction of one of two condominium towers and hotel, and the
probable high occupancy rates for the mall given that 35% of the
GLA has already been committed to by potential tenants.

Pakuwon's ratings also reflect the low interest coverage ratio
expected between 2006 and 2007 while Gandaria is being
developed.  The debt restructuring exercise in October 2005,
along with positive operating cash flow generation, has helped
improve both Pakuwon's net debt/EBITDA ratio and interest
coverage ratio to 4.4x in 2005.  However, the US$120 million
notes issue, of which US$40 million is expected to be used to
refinance existing debt, and US$80 million to fund the
development of Gandaria, will cause the interest coverage ratio
to return to historical levels of around 2x to 3x between 2006
and 2007.  While these ratios are expected to improve with
future EBITDA contribution from Gandaria, the increasing focus
on property development, especially in the case of Gandaria
condominium and office, could translate to increased volatility
in earnings and cashflow.

Pakuwon's ratings are supported by its position as a leading
township developer and mall operator in Surabaya.  Pakuwon's
current main asset is Superblock Tunjungan City, a well-
established mixed-use development in the Central Business
District of Surabaya.  This asset, comprising of a mall with a
GLA of 111,782 sq m, office building, hotel and condominium,
contributed 95% and 99% of total revenue and EBITDA,
respectively, in 2005.  Given its dominant market position, the
mall, with its above-market occupancy rates and well-laddered
lease maturity, is expected to continue to contribute strong
predictable recurring cashflow to Pakuwon.  Contribution from
the mall should allow Pakuwon to meet its interest expenses even
if the Gandaria project is delayed due to market conditions.

Pakuwon is also involved in property development in East
Surabaya, targeting the mid-to-high end market segments via its
280 ha share of the 500 ha Grand Pakuwon township.  Development
in the township is done in phases and largely on a pre-sold
basis.  This strategy, along with Pakuwon's low land acquisition
costs, reduces the risks arising from market volatility.  While
contribution from this project is relatively small compared to
Tunjungan, Pakuwon derives some financial flexibility from the
large land bank inventory within Grand Pakuwon, although Fitch
notes that the ability to monetise land bank is usually
constrained during periods of stress.

The Stable Outlook reflects Fitch's expectation that Pakuwon
will continue to generate positive operating cash flows from
Tunjungan at least in line with 2005 performance to maintain its
leverage ratio at 2005 levels.  Poorer than expected sales from
its planned new launches, any significant increase in leverage
and interest coverage ratios from projected levels or any
material financial support to related entities, may result in a
negative rating action.  On the other hand, if the Gandaria is
successfully executed, resulting in improved financial
performance as projected, a positive rating action may be taken.

Pakuwon is a listed property company in Indonesia with a
presence in commercial property investment and development
(retail mall, hotel and office building) and residential
property development, primarily in Surabaya but with plans to
expand to Jakarta in the future.  Pakuwon achieved revenue of
IDR538 billion, EBITDA of IDR200 billion and net income of
IDR41 billion in 2005.  Post the completion of a debt-to-equity
swap in August 2006, the founder's (Alexander Tedja) family has
50.6% beneficial interest in Pakuwon.


PHILLIPS-VAN HEUSEN: Earns US$29 Million in Second Quarter 2006
---------------------------------------------------------------
Phillips-Van Heusen Corporation reported second fiscal quarter
2006 GAAP net income of US$29 million, compared with second
fiscal quarter 2005 GAAP net income of US$23.5 million.

Total revenues in the second fiscal quarter of 2006 increased 3%
to US$458.9 million from US$443.5 million in the prior year.
The company disclosed that the revenue growth was driven by a
13% increase in the Calvin Klein Licensing business, the
continued strong performance of the company's outlet retail
business and wholesale sportswear business, particularly Calvin
Klein men's better sportswear and Arrow.  The company ended the
quarter with US$367.7 million in cash, an increase of
US$196.6 million compared with the prior year's second quarter.
Its receivables and inventories were down 11% and 2%,
respectively, below prior year levels.  The company's higher
year over year cash position, coupled with higher investment
rates of return, resulted in a 40% decrease in net interest
expense for the current year's second quarter.

The company also disclosed that its Series B preferred
stockholders voluntarily converted, in May 2006, all of their
remaining outstanding preferred stock into 11.6 million shares
of common stock and sold 10.1 million shares of such common
stock in a secondary offering.  The transaction further
strengthened the company's balance sheet, eliminated the most
expensive component of its capital structure and enhanced the
liquidity of its common stock.

Phillips-Van Heusen Corporation -- http://www.pvh.com/-- owns
and   markets the Calvin Klein brand worldwide.  It is a shirt
company that markets a variety of goods under its own brands:
Van Heusen, Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co.,
Geoffrey Beene, Kenneth Cole New York, Reaction Kenneth Cole,
BCBG Max Azria, BCBG Attitude, Sean John, MICHAEL by Michael
Kors, Chaps and Donald J. Trump Signature.

It has operations in Asia-Pacific, including Indonesia, China,
Philippines, Malaysia, and Thailand.

                          *     *     *

Phillips-Van Heusen's 7-3/4% Debentures due 2023 carry Moody's
Investors Service's Ba3 rating and Standard and Poor's BB+
rating.


VNU NV: GE Executive David Calhoun Named as CEO & Chairman
----------------------------------------------------------
VNU Group B.V. disclosed that David L. Calhoun, Vice Chairman of
General Electric Company, has been named Chairman of the
Executive Board and Chief Executive Officer of VNU by the
company's Supervisory Board.  He succeeds Rob Ruijter, who has
served as interim CEO since June 13 and who will continue as
VNU's Chief Financial Officer.

Mr. Calhoun comes to VNU from his position as Vice Chairman of
General Electric Company and President and Chief Executive
Officer, GE Infrastructure, where he was responsible for GE's
Aviation, Energy, Oil and Gas, Transportation and Water units,
businesses with combined revenues of US$47 billion expected in
2006 and over 85,000 employees.

In a joint statement, the members of VNU's Supervisory Board
said, "We are very pleased to welcome David Calhoun to VNU.
David has spent more than 27 years at GE where he has built a
world-class record of success.  He is superbly qualified to take
VNU to the next level of growth and performance, as the company
works efficiently and cohesively to enhance the value of its
services, and pursues its many exciting strategic opportunities
in the years ahead."

"I am delighted to join VNU and I'm impressed by the strength of
its franchises and the depth of its capabilities in each of its
marketing information, media information, business publications
and trade show units," said Mr. Calhoun.  "VNU enjoys leading
positions in the global market for mission-critical business
information.  With growing demand for information and insights
that help businesses understand consumers and markets in an
increasingly complex and rapidly changing world, VNU's prospects
have never been stronger.  I look forward to working with the
worldwide VNU organization to develop its next-generation
business solutions and to create the next chapter of VNU's
success."

During his GE career, Mr. Calhoun distinguished himself in a
number of senior leadership positions across a variety of global
businesses.  He became a Vice Chairman of GE in 2005, overseeing
the newly formed Infrastructure group, the largest of GE's six
business segments.

In 2003, Mr. Calhoun was named President and CEO of GE
Transportation.  In 2000, he was appointed President and CEO of
GE Aircraft Engines.  Before that, he served as President and
CEO of GE Employers Reinsurance Company, GE Lighting, and GE
Transportation Systems.  From 1994 to 1995, he served as
President of GE Plastics for the Pacific region.

Mr. Calhoun joined GE in 1979 as a member of GE's highly
respected Financial Management Program.  He rose to the
Corporate Audit staff and became manager of programs and
planning in 1986.  He was then asked to lead GE Capital's
marketing programs for leveraged buyouts, followed by a similar
role at GE Plastics.  He later was named vice president of GE
Corporate Audit Staff and was elected an officer of the company.

Headquartered in Haarlem, Netherlands, VNU N.V. --
http://www.vnu.com/-- operates publishing businesses and offers
marketing and media information.  The company publishes and
distributes telephone directories, children's books and
periodicals, and business information periodicals.  VNU also
offers television and Internet usage data and advertising
expenditure analysis.  The company has operations worldwide,
including China and Indonesia.

                          *     *     *

Moody's Investors Service downgraded the Corporate Family Rating
of VNU NV to B2 from B1 and its senior unsecured debt ratings to
Caa1 from B1.  This concludes Moody's review of VNU's ratings,
which was last continued on May 26.

Rating downgraded to B2 from B1:

   -- Corporate Family Rating

Ratings downgraded to Caa1 from B1:

   -- floating rate Euro MT Notes due 2012;

   -- 6.75% Euro MT Notes due 2012;

   -- 2.5% Yen MT Notes due 2011, the floating rate Euro MT
      Notes due 2010;

   -- 5.625% GBP MT Notes due 2010/17;

   -- 5.5% Eurobonds due 2008;

   -- 6.75% Eurobonds due 2008;

   -- 6.625% Eurobonds due 2007;

   -- Euro MTN program; and

   -- Nielsen Media Research Inc.'s 7.6% Notes due 2009
      guaranteed by VNU.

Standard & Poor's Ratings Services has lowered its long-term
corporate credit rating on Dutch media group VNU N.V. to 'B'
from 'B+', and affirmed its 'B' short-term corporate credit
rating.


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

HANA BANK: Heads to Market with New Subordinated Bond Deal
----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 28, 2006, Hana Bank intends to market U.S. dollar-
denominated lower-tier II bonds early in September with
roadshows planned in Singapore, Hong Kong and London.

In an update, FinanceAsia.com Ltd relates that Hana Bank has
tapped Barclays, BNP Paribas, and Deutsche Bank for the 10 non-
call five-year lower-tier 2 subordinated bond deal.

According to Timothy Cuffe of Finance Asia, the notes are being
issued off of Hana's US$2.5-billion global medium-term note
program.  Although final size has not yet been determined, the
deal is expected to be within the US$300 million to
US$400 million range.

Roadshows are scheduled in Singapore, Hong Kong and London.

Finance Asia notes that Hana Bank was the first to issue a
hybrid tier-1 deal from Korea when it launched an 8.748%
perpetual non-call 10-year in 2002 via Barclays and JPMorgan.
That deal, rated BBB-/BBB-, is trading at a bid/offer 112.20% to
112.77%, yielding 6.24% to 6.14%.  This is equivalent to 137bp
to 127bp over US Treasuries or 89bp to 78bp over swaps.

The notes have been assigned a Baa1 rating by Moody's, and a
BBB+ rating from S&P.  Hana has a senior foreign currency rating
of Baa1/A3.  Hana was one of the 11 banks to benefit from an
industry upgrade from Moody's in early August, Finance Asia
says.

Korean bank sub-debt is a very active market and provides a wide
array of comparables.

                        About Hana Bank

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

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

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


KOREA EXCHANGE: Prosecutors Ignore Lone Star Threat
---------------------------------------------------
Lone Star Funds Chairman John Grayken has threatened to walk
away from its negotiations with Kookmin Bank pertaining to the
sale of Korea Exchange Bank, unless prosecutors end their
investigation on September 16, 2006, The Chosun Ilbo recounts.

The Troubled Company Reporter - Asia Pacific reported on
August 29, that September 16 is the original deadline set for
Lone Star to complete the KEB Sale.

Yet, Chosun Ilbo relates, senior prosecutor Chae Dong-wook said
that his team will continue investigating the United States-
based fund regardless of its ongoing sales talks with Kookmin.

As reported in the TCR-AP on March 24, Lone Star has agreed to
sell its 64.62% stake in KEB to Kookmin Bank.  According to the
report, Kookmin, reportedly South Korea's largest retail bank by
assets, will have to pay KRW6.4 trillion for the takeover.

However, Lone Star is under suspicion of colluding to manipulate
KEB's financial data to buy it at a discounted price.

The TCR-AP cited Dow Jones as stating that Kookmin Bank and Lone
Star agreed to put off the transaction until mid-September under
the assumption that a probe by South Korean prosecutors into
Lone Star would be completed by then.  Dow Jones noted that if
the Kookmin/Lone Star deal pushes through, it would be one of
the largest corporate takeovers in South Korea in 2006.

                      About Korea Exchange

Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--  
was established in January 1967 by the Government originally as
a specialist foreign exchange bank.  It retains its strength in
trade finance and foreign exchange.  In terms of assets, it
ranks sixth among Korea's nationwide commercial banks with 7% of
system assets.  It operates a branch network of 317 domestic and
28 overseas offices.  During the economic crisis, significant
exposures to troubled corporate borrowers led to a deterioration
in the bank's financial health.  However, since then, its
operating performance stabilized, and the bank has reported
consecutive quarterly profits since the end of 2003.

Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating
effective on June 17, 2005.

Moody's Investors Service gave KEB a 'D' Bank Financial Strength
Rating effective on May 9, 2006.

                          *     *     *

South Korean politicians -- led by the main opposition Grand
National Party -- have alleged that the Korea Exchange shares
were sold cheap to United States-based Lone Star Funds after the
Bank's financial status was incorrectly reported.  Korea
Exchange denied the allegations in March 2006.

The Board of Audit and Inspections and the Supreme Public
Prosecutors' Office initiated separate investigations into the
matter.  On June 20, 2006, the BAI determined that Lone Star's
acquisition of Korea Exchange was led by management with the
approval of the financial supervisory bureau.  BAI found that
KEB exaggerated its insolvency and falsely recorded the Bank for
International Settlements' capital adequacy ratio at 6.16%,
which is below the 8% threshold for healthy banks.

Prosecutors are investigating whether there were any
transgressions of law in the process of selling KEB and whether
bribes were given to officials.  If prosecutors will find solid
evidence that the data was cooked up, it might lead to the
nullification of the KEB sale to Lone Star and the arrest of
regulators, policymakers and former KEB executives.


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

CHUOAOYAMA PwC: Resumes Operations as Misuzu Audit
--------------------------------------------------
ChuoAoyama PricewaterhouseCoopers resumed regular operations on
September 1, 2006, under its new name -- Misuzu Audit
Corporation, The Japan Times reports.

As reported by the Troubled Company Reporter - Asia Pacific on
July 6, 2006, ChuoAoyama halted operations on July 1, 2006, as
ordered by the Financial Services Agency.  The FSA decided to
suspend the firm's operations after three of the firm's auditors
pleaded guilty to falsifying the financial statements of client
Kanebo Limited.  The Company was also banned from auditing its
current clients or accepting new clients from July to August
this year, as it had not set up an internal monitoring system to
prevent similar incidents.

The Tokyo District Court gave three certified public accountants
formerly employed at ChuoAoyama suspended prison terms on
August 9, 2006, for conspiring with Kanebo executives to falsify
the ailing cosmetic giant's earnings in fiscal 2001 and 2002,
The Japan Times discloses.

According to The Japan Times, ChuoAoyama was the first major
auditing firm to be slapped with an FSA suspension order.

Misuzu Chairman Hideki Katayama gave a public apology for the
trouble that the firm's employees had caused, The Japan Times
says.  Nevertheless, Mr. Katayama is confident it could make a
fresh start under the new name.  He said that Misuzu has
implemented a number of reforms, including a system to review
its audit by internal independent accountants.  He, however,
admitted the company will have a tough time bouncing back, as
many clients switched to competitors when the suspension was
implemented.

A June 1, 2006 TCR-AP report stated that over 70 firms had
decided to leave ChuoAoyama and shift to another auditing firm.
That number has since increased to over 400 companies.
According to the TCR-AP, many of the firms that decided to stop
availing of ChuoAoyama's services said that they would either
take on the auditors of their parent firms, or not renew
contracts that are due to expire.  The firms said that they
would employ Deloitte Touche Tohmatsu, Ernst & Young ShinNihon,
or KPMG Azsa & Co. as their auditor.

Since ChuoAoyama's penalty took effect, the auditing company
lost about 230 corporate clients on its list of 834, as of
April 1, 2006, The Japan Times reveals.

The firm not only lost clients but many workers, as well, the
report says.  About 900 of 5,506 employees at the former
ChuoAoyama have moved to Arata -- a new accounting company set
up by PricewaterhouseCoopers after ChuoAoyama was forced to halt
part of its operations in June.

Mr. Katayama admitted the exodus of clients and workers has
affected Misuzu's business.


DTC ONE SPC: Fitch Affirms 'BB' Class E Notes
---------------------------------------------
Fitch Ratings has affirmed DTC's commercial mortgage-backed
securities as follows:

DTC One SPC
-----------
   Class A-1 floating-rate notes due November 2034 (issue amount
   JPY0.5 billion, balance* approximately JPY0.44 billion) --
   affirmed at 'AAA';

   Class A-2 floating-rate notes due November 2034 (issue amount
   JPY4.4 billion, balance* approximately JPY3.86 billion) --
   affirmed at 'AAA';

   Class A-3 floating-rate notes due November 2034 (issue amount
   JPY0.02 billion, balance* approximately JPY0.02 billion) --
   affirmed at 'AAA';

   Class B floating-rate notes due November 2034 (issue amount
   and balance* JPY0.32 billion) -- affirmed at 'AA';

   Class C floating-rate notes due November 2034 (issue amount
   and balance* JPY0.18 billion) -- affirmed at 'A';

   Class D floating-rate notes due November 2034 (issue amount
   and balance* JPY0.32 billion) -- affirmed at 'BBB';

   Class E floating-rate notes due November 2034 (issue amount
   and balance* JPY0.35 billion) -- affirmed at 'BB'; and

   Class X (interest only) -- affirmed at 'AAA'.

DTC Two Funding Limited
-----------------------
   Class A floating-rate notes due June 2035 (issue amount
   JPY7.56 billion, balance* approximately JPY6.6 billion) --
   affirmed at 'AAA';

   Class B floating-rate notes due June 2035 (issue amount and
   balance* JPY0.47 billion) -- affirmed at 'AA';

   Class C floating-rate notes due June 2035 (issue amount and
   balance* JPY0.28 billion) -- affirmed at 'A';

   Class D floating-rate notes due June 2035 (issue amount and
   balance* JPY0.38 billion) -- affirmed at 'BBB';

   Class E floating-rate notes due June 2035 (issue amount and
   balance* JPY0.85 billion) -- affirmed at 'BB';

   Class J floating-rate notes due June 2035 (issue amount
   JPY8.69 billion, balance* approximately JPY7.73 billion) --
   affirmed at 'BBB'; and

   Class X (interest only) -- affirmed at 'AAA'.

DTC Three Funding Limited
-------------------------
   Class A-1 floating-rate notes due February 2036 (issue amount
   JPY8.22 billion, balance* approximately JPY7.49 billion) --
   affirmed at 'AAA';

   Class A-2 floating-rate notes due February 2036 (issue amount
   JPY5.61 billion, balance* approximately JPY5.11 billion) --
   affirmed at 'AAA';

   Class B floating-rate notes due February 2036 (issue amount
   and balance* JPY0.87 billion) -- affirmed at 'AA';

   Class C floating-rate notes due February 2036 (issue amount
   and balance* JPY0.54 billion) -- affirmed at 'A';

   Class D floating-rate notes due February 2036 (issue amount
   and balance* JPY0.69 billion) -- affirmed at 'BBB';

   Class E floating-rate notes due February 2036 (issue amount
   and balance* JPY0.776 billion) -- affirmed at 'BB'; and

   Class X (interest only) -- affirmed at 'AAA'.

DTC Four Funding Limited
------------------------
   Class A-1 floating-rate notes due November 2036 (issue amount
   JPY11.44 billion, balance* approximately JPY10.7 billion) --
   affirmed at 'AAA';

   Class A-2 floating-rate notes due November 2036 (issue amount
   JPY5.72 billion, balance* approximately JPY5.35 billion) --
   affirmed at 'AAA';

   Class B floating-rate notes due November 2036 (issue amount
   and balance* JPY0.84 billion) -- affirmed at 'AA';

   Class C floating-rate notes due November 2036 (issue amount
   and balance* JPY0.87 billion) -- affirmed at 'A';

   Class D floating-rate notes due November 2036 (issue amount
   and balance* JPY0.84 billion) -- affirmed at 'BBB';

   Class E floating-rate notes due November 2036 (issue amount
   and balance* JPY0.75 billion) -- affirmed at 'BB'; and

   Class X (interest only) -- affirmed at 'AAA'.

DTC Five Funding Limited
------------------------
   Class A floating-rate notes due March 2037 (issue amount
   JPY16.83 billion, balance* approximately JPY16.1 billion) --
   affirmed at 'AAA';

   Class B floating-rate notes due March 2037 (issue amount and
   balance* JPY0.84 billion) -- affirmed at 'AA';

   Class C floating-rate notes due March 2037 (issue amount and
   balance* JPY0.84 billion) -- affirmed at 'A';

   Class D floating-rate notes due March 2037 (issue amount and
   balance* JPY0.84 billion) -- affirmed at 'BBB';

   Class E floating-rate notes due March 2037 (issue amount and
   balance* JPY0.72 billion) -- affirmed at 'BB'; and

   Class X (interest only) -- affirmed at 'AAA'.

* As of 31 August 2006

The affirmation follows a regular review of the performance of
the underlying assets. The portfolios of the notes consist of
loans backed by apartments for rent, and Fitch's analysis
includes the review of the performance of the apartment
buildings. Fitch has carefully analyzed the operating
performance of the underlying collateral and confirmed the
performance being in line with the agency's expectations.  No
delinquencies or defaults have occurred on the loan assets since
the closing of each deal, and the principal prepayments made to
date are in line with Fitch's expectations.  Fitch will continue
to monitor the transactions.


LIVEDOOR CO: Founder Pleads Not Guilty to Accounting Fraud
----------------------------------------------------------
Livedoor Co. founder and former president, Takafumi Horie,
pleaded not guilty of violating the securities laws in the first
hearing of his trial at the Tokyo District Court on September 4,
2006, Bloomberg News reports.

Mr. Horie denied tampering with financial figures for Livedoor's
business year to Sept. 30, 2004, the report says.  During
pretrial proceedings, Mr. Horie claimed that he did not inflate
financial figures and did not spread false information on a
Livedoor subsidiary's takeover of a publisher in 2004.

The prosecutors insist that Mr. Horie falsified details
concerning the acquisition of a company to inflate an affiliated
company's stock price in violation of the Securities and
Exchange Law, The Daily Yomuiri recounts.  The most crucial
contention that came up in pre-trial sessions is whether an
investment fund allegedly used in the widow-dressing operation
was, in fact, a dummy, as prosecutors insist.  Prosecutors claim
that the fund was inseparable from Livedoor and just a dummy
company created for the purpose of adding own-stock sales
profits to Livedoor's sales statement, violating rules of
accounting.

The defense team, however, contends that the investment fund was
never a dummy and that Livedoor was not involved in the
management of the fund, The Daily Yomiuri relates.  The money
that prosecutors claim was profit from sales of Livedoor's own
stocks was in fact a dividend from the fund, and including it in
the financial statement does not constitute illegal accounting,
the defense claims.

The Troubled Company Reporter - Asia Pacific reported on
January 18, 2006, that Mr. Horie and other Livedoor directors
were found to have conspired to cover up the Company's JPY310-
million pre-tax loss for the business year ended September 2004,
by tampering financial accounts to instead show an inflated pre-
tax profit of JPY5.03 billion.  Moreover, Mr. Horie and the
Company executives allegedly relayed false information on a
merger, with the intent to boost the stock price of Livedoor's
subsidiary, Livedoor Marketing Co.

The TCR-AP further reported on July 28, 2006, that Mr. Horie's
defense lawyers admitted on July 26, 2006, that the Company was
partially involved in accounting fraud, but claimed that Mr.
Horie was not aware of the illegal activities.

The Daily Yomuiri says that 18 witnesses, including Livedoor
officials, will be called for hearings during the first two
months of the trial.

As reported by the TCR-AP on August 21, 2006, the first hearing
will be followed by 25 more, which are scheduled to be completed
by November 28 this year.  The Court will hold one to three
hearings a week to finish all 26 within a three-month period.

                          *     *     *

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

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

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


MITSUBISHI MOTORS: Inks Pact with Workers on U.S. Auto Plant
------------------------------------------------------------
Mitsubishi Motors North America disclosed on September 1, 2006,
that United Auto Workers' local 2488 members have ratified an
agreement that dramatically improves the ability of the
company's Normal, Illinois assembly plant to be a key player in
the global success of Mitsubishi Motors.

"We are extremely pleased with this agreement," said MMNA
President & CEO, Hiroshi Harunari.  "It sends a clear message to
customers and dealers that Mitsubishi Motors is committed to
being competitive and successful in the United States market."

The agreement includes provisions guaranteeing that production
will continue at the assembly plant in Normal, Illinois through
August 2008.  The pact also provides job security for
approximately 1,500 current UAW workers through the end of the
agreement period.

Shiro Futaki, the head of MMNA's manufacturing division, located
in Normal, Illinois, praised the agreement as a symbol of his
employees' teamwork and determination to succeed.

"I appreciate that our employees have made a commitment to make
a difficult personal sacrifice to improve the future of MMNA,"
he said.

"This agreement continues a long tradition of partnership and
cooperation between MMNA and the UAW.  The leadership of both
the UAW and MMNA recognize the tough issues facing us and we
have worked together to solve them."

MMNA Manufacturing, its employees, and suppliers have enhanced
their competitiveness this fiscal year -- beginning in April --
by working cooperatively to reduce component and manufacturing
process costs, without compromising the quality of their
vehicles and safety of customers.  The new two-year labor
agreement further improves the cost structure of the company by
reducing worker wages and benefits.  MMNA declined to provide a
dollar figure for the bottom-line impact of any of these cost
improvements.

"Our UAW partners recognize that adjustments to wages and
benefits are one of the key factors in determining our long-term
success," said Mr. Futaki.

"MMNA fully appreciates the ability of the UAW to be flexible in
reaching this agreement.  We believe institutionally, the UAW
has the workers' best interest at heart, including a realization
that a strong and vibrant MMNA is in the long-term best interest
of the employees," Mr. Futaki added.

                     About Mitsubishi Motors

Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation
-- http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.

The Company also operates consumer-financing services and
provides this to its customer base.  MMC adopted the "Mitsubishi
Motors Revitalization Plan" on January 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the Company.  The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."

Mitsubishi Motors North America Inc. is responsible for all
manufacturing, finance, sales, marketing, research and
development operations of the Mitsubishi Motors Corporation in
the United States.  Mitsubishi Motors sells coupes,
convertibles, sedans, sport utility vehicles, and light trucks
through a network of approximately 540 dealers.

                          *     *     *

Japan Credit Rating Agency, Ltd., on July 18, 2006, upgraded the
Company's senior debts rating to BB- from B- with a stable
outlook, as its restructuring has been going well as planned,
with Mitsubishi group firms increasing their stakes in MMC to
34.3% as of March 31, 2006.

Rating & Investment Information Inc. had on July 31, 2006,
upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+
to B with a stable outlook and its commercial paper rating from
c to b, and has removed the rating from its monitor at the same
time.


MITSUBISHI MOTORS: U.S. Sales Increase in August
------------------------------------------------
Mitsubishi Motors North America Inc. revealed August sales of
10,954 units, an increase of 0.1% over last August's total of
10,945.

It marked the sixth consecutive month that Mitsubishi United
States sales topped the 10,000 mark and the second consecutive
month of year-over-year increases.  August marked the fourth
month in the last five that MMNA has surpassed the sales of the
same month a year ago.

MMNA President & CEO Hiroshi Harunari said, "The consistency of
the sales performance of our products in the U.S. is an
excellent indicator of the growing strength and stability of our
business in this market.  We are particularly pleased to show
sales increases month after month, at a time when our industry
as a whole has shown declining sales."

Mr. Harunari added that Mitsubishi business should further
strengthen when the all-new, fuel-efficient Outlander crossover
SUV arrives at dealerships in October.

    August sales highlights:

    *  Eclipse was the volume leader at 2,966 up 27.6% from last
       year's volume.
    *  Lancer closed at 1,797 units, up 34.3% from last year's
       volume.
    *  Eclipse Spyder sales were 773 units, up 145.4% from last
       year's volume.

                    About Mitsubishi Motors

Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation
-- http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.

The Company also operates consumer-financing services and
provides this to its customer base.  MMC adopted the "Mitsubishi
Motors Revitalization Plan" on January 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the Company.  The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."

Mitsubishi Motors North America Inc. is responsible for all
manufacturing, finance, sales, marketing, research and
development operations of the Mitsubishi Motors Corporation in
the United States.  Mitsubishi Motors sells coupes,
convertibles, sedans, sport utility vehicles, and light trucks
through a network of approximately 540 dealers.

                          *     *     *

Japan Credit Rating Agency, Ltd., on July 18, 2006, upgraded the
Company's senior debts rating to BB- from B- with a stable
outlook, as its restructuring has been going well as planned,
with Mitsubishi group firms increasing their stakes in MMC to
34.3% as of March 31, 2006.

Rating & Investment Information Inc. had on July 31, 2006,
upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+
to B with a stable outlook and its commercial paper rating from
c to b, and has removed the rating from its monitor at the same
time.


MITSUBISHI MOTORS: To Trim Auto Platforms to 6 from 14
------------------------------------------------------
Mitsubishi Motors Corp is keen on cutting the number of
platforms it uses to six from the current 14 over the next four
years, the Associated Press reveals, citing the Nihon Keizai
Shimbun.

The automaker will use a single platform for vehicles that will
be offered domestically and overseas.  By reducing the number of
platforms, Mitsubishi Motors plans to shorten development time
and also become more cost competitive, AP reports.  The carmaker
currently uses four platforms alone for its minivehicle lineup,
but it intends to gradually shift to one platform, currently
used by a model known as 'i'.

Automakers around the world are looking to slash costs by
cutting the number of platforms, which are the basic underlying
structural components of automobiles, according to the report.

AP says that the Mitsubishi Motors is stepping cost-cutting
efforts as it struggles to turn its business around following a
recall scandal several years ago.  Last month, the company said
it narrowed its losses for the April-June quarter to
JPY15.1 billion, or US$130 million, for the first fiscal
quarter, an improvement from the JPY21.6-billion loss racked up
the previous year.

Mitsubishi Motors is the only money-losing Japanese automaker.
Its rivals, Toyota Motor Corp. and Honda Motor Corp., are
reposting stellar results especially in North America, where
they are boosting market share, the AP reveals.

                     About Mitsubishi Motors

Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation
-- http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.

The Company also operates consumer-financing services and
provides this to its customer base.  MMC adopted the "Mitsubishi
Motors Revitalization Plan" on January 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the Company.  The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."

Mitsubishi Motors North America Inc. is responsible for all
manufacturing, finance, sales, marketing, research and
development operations of the Mitsubishi Motors Corporation in
the United States.  Mitsubishi Motors sells coupes,
convertibles, sedans, sport utility vehicles, and light trucks
through a network of approximately 540 dealers.

                          *     *     *

Japan Credit Rating Agency, Ltd., on July 18, 2006, upgraded the
Company's senior debts rating to BB- from B- with a stable
outlook, as its restructuring has been going well as planned,
with Mitsubishi group firms increasing their stakes in MMC to
34.3% as of March 31, 2006.

Rating & Investment Information Inc. had on July 31, 2006,
upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+
to B with a stable outlook and its commercial paper rating from
c to b, and has removed the rating from its monitor at the same
time.


NISHI-NIPPON CITY BANK: Fitch Affirms 'E' Individual Rating
-----------------------------------------------------------
Fitch Ratings has affirmed Nishi-Nippon City Bank's Long-term
foreign and local currency Issuer Default Ratings at 'BBB-',
Short-term foreign and local currency IDRs at 'F3', Individual
'E' and Support '2'.  The rating Outlook remains Stable.

Fitch also affirmed the ratings of Nishi-Nippon City's
subsidiary, Bank of Nagasaki, at Individual 'E' and Support '3'.

The affirmations follow Nishi-Nippon City's announcement late
last week that it plans to repay on September 6, 2006, half of
its total JPY70 billion in public funds.  In 2002, the
government had injected the funds into Fukuoka City Bank, one of
the predecessor banks of Nishi-Nippon City.  Although the
repayment will be in the form of buying its own shares back from
the government at a cost of JPY41.1 billion, which is equivalent
to 17% of its Tier 1 capital at end-March 2006, the regulatory
capital ratio of Nishi-Nippon City is expected to be slightly
higher than that at end-March 2006, considering Nishi-Nippon
City's net income projection for the half year to end-September
2006 and conversion of the bonds since April 2006 into common
stock.  At end-March 2006, the bank's Tier 1 ratio was 5.68% and
its total capital adequacy ratio was 8.79%.

The current IDRs and Support rating of Nishi-Nippon City reflect
Fitch's expectation of a high probability of support from the
Japanese government, if needed.  This expectation is based on
Nishi-Nippon City's importance to the economy and financial
system of Japan's Fukuoka Prefecture, where the bank has a 25%
share in the lending market.


SUMITOMO MITSUI BANKING: Fitch Affirms 'C/D' Individual Rating
--------------------------------------------------------------
Fitch Ratings has affirmed Sumitomo Mitsui Banking Corporation's
ratings at foreign and local currency Issuer Default 'A-',
Short-term foreign and local currency 'F1', Individual 'C/D' and
Support '1'.  The Outlook remains Positive.

The rating affirmations follow Sumitomo Mitsui Financial Group's
announcement that it will repay a further JPY245.1 billion --
JPY201-billion issued value -- of government-owned preferred
stock through a repurchase and cancellation of such stock.

SMFG's reduction in outstanding public funds will contribute
further to the trend of improving capital quality at SMBC and
capital adequacy ratios are expected to remain at similar levels
considering forecast net income for the first half of fiscal
year end March 2007.  After the announced repayment, the
remaining amount of public funds will be JPY695 billion.  Fitch
takes a positive view of SMFG's public fund repayment and
expects the group to meet its goal of full repayment by end
March 2007.


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

CYGAL BERHAD: June 30 Balance Sheet Reveals Insolvency
------------------------------------------------------
Cygal Berhad submitted on August 29, 2006, its financial report
for the second quarter ended June 30, 2006, to Bursa Malaysia
Securities Berhad.

For the quarter under review, the group booked lower revenue of
MYR20.281 million compared with the MYR31.663-million revenue
posted in the quarter ended March 31, 2006.  However, the
revenue in the reporting quarter is higher compared with the
MYR15.792 million revenue recorded in the same quarter last
year, as contributions from new contracts secured in 2005 had
started to pick up.

The group incurred a net loss of MYR6.416 million in the quarter
ended June 30, 2006, as against a net loss of MYR6.773 million
in the same quarter last year.  As of June 30, 2006, the group
has accumulated MYR357.855 million in losses.

The group's June 30, 2006, balance sheet revealed strained
liquidity with MYR154.115 million in current assets available to
pay MYR485.450 million in current liabilities coming due within
the next 12 months.  The group has net current liabilities of
MYR331.335 million.

The June 30, 2006 balance sheet also showed total assets of
MYR225.079 million and total liabilities of MYR500.665 million
resulting into a stockholders' deficit of MYR275.586 million.

There was no dividend declared for the period under review.

Cygal Berhad's Second Quarter report is available for free at:

   http://bankrupt.com/misc/tcrap_cygalberhad090406.xls

                        About Cygal Berhad

Headquartered in Kuala Lumpur, Malaysia, Cygal Berhad's
principal activity is civil and building construction works.
Its other activities include housing development; manufacturing
and trading in ready mix concrete; trading in building
materials; leasing of aircraft parts and equipment; provision of
hotel management services; and investment holding.  The Group's
activities are located in Malaysia and Hong Kong.

On Nov. 19, 2001, Cygal Berhad and its subsidiary companies
finalized a debt restructuring agreement with their lenders on
involving debts outstanding of approximately MYR230 million.
The Troubled Company Reporter - Asia Pacific reported on
January 13, 2006, that Cygal has obtained the consent of the
majority of its financial institution creditors for a further
extension of time within which Cygal is to meet the conditions
precedent as stipulated in its Nov. 2001 Settlement Agreement
with its creditors.  The deal relates to the settlement of
Cygal's MYR229,637,109 debt to its lenders.  The Securities
Commission later gave Cygal until August 31, 2006, to start
implementing its corporate exercises.

As of June 30, 2006, the company has total assets of
MYR225.079 million and total liabilities of MYR500.665 million
resulting into a stockholders' deficit of MYR275.586 million.


CYGAL BERHAD: Seeks Final Extension of Time to Implement Revamp
---------------------------------------------------------------
Cygal Berhad, on August 17, 2006, made an application to the
Securities Commission for a final extension of time to implement
its corporate restructuring plan.

As reported by the Troubled Company Reporter - Asia Pacific on
May 4, 2006, the Securities Commission has given Cygal Berhad
until August 31, 2006, to start implementing its corporate
exercises.

The TCR-AP reported on January 13, 2006, that Cygal has obtained
the consent of the majority of its financial institution
creditors for a further extension of time within which Cygal is
to meet the conditions precedent as stipulated in a Settlement
Agreement, dated November 19, 2001, between Cygal and its
creditors.  The deal relates to the settlement of Cygal's
MYR229,637,109 debt to its lenders.

The deadline was extended until March 31, 2006.

The Settlement is a part of the Company's proposed corporate and
debt restructuring scheme, which involves:

   -- the exchange of shares on the basis of three new
      company, or Newco, shares for every four shares in Cygal
      and the proposed takeover of Cygal's listed status by
      Newco;

   -- a rights issue raising up to MYR31 million, to be used
      for working capital;

   -- a debt restructuring scheme, which will involve
      Redeemable Convertible Secured Loan Stocks and
      Irredeemable Convertible Unsecured Loan Stocks issued by
      Newco;

   -- the proposed acquisition of shares in Laudable Invention
      Sdn Bhd and Cygal Properties Sdn Bhd to be satisfied by
      cash and shares in Newco;

   -- a proposed employee's share option scheme for all
      eligible employees and Executive Directors of Newco,
      Cygal and its subsidiaries.

Cygal's recent application is still pending the Securities
Commission's approval.

                       About Cygal Berhad

Headquartered in Kuala Lumpur, Malaysia, Cygal Berhad's
principal activity is civil and building construction works.
Its other activities include housing development; manufacturing
and trading in ready mix concrete; trading in building
materials; leasing of aircraft parts and equipment; provision of
hotel management services; and investment holding.  The Group's
activities are located in Malaysia and Hong Kong.

On Nov. 19, 2001, Cygal Berhad and its subsidiary companies
finalized a debt restructuring agreement with their lenders on
involving debts outstanding of approximately MYR230 million.
The Troubled Company Reporter - Asia Pacific reported on
January 13, 2006, that Cygal has obtained the consent of the
majority of its financial institution creditors for a further
extension of time within which Cygal is to meet the conditions
precedent as stipulated in its Nov. 2001 Settlement Agreement
with its creditors.  The deal relates to the settlement of
Cygal's MYR229,637,109 debt to its lenders.  The Securities
Commission later gave Cygal until August 31, 2006, to start
implementing its corporate exercises.

As of June 30, 2006, the company has total assets of
MYR225.079 million and total liabilities of MYR500.665 million
resulting into a stockholders' deficit of MYR275.586 million.


FALCONBRIDGE LTD: Xtrata Buys Additional 4.9% Share in Company
--------------------------------------------------------------
Xstrata plc said in a statement that it has obtained an
additional 4.9% stake at Falconbridge Ltd.

According to the statement, Xstrata started compulsory
acquisition to obtain 100% of Falconbridge.

Business News Americas reports that Xstrata acquired additional
interest after the 18.6 million shares in Falconbridge were
deposited before the former's takeover offer expired on Aug. 25.

Xstrata said in a statement that it now owns over 369 million
common shares, or approximately 97.1% of issued and outstanding
shares on a fully diluted basis.  It has started compulsory
purchase of the remainder at the same price of CDN$62.50 each.

The purchase of Falconbridge shares gives Xstrata significant
exposure to nickel and potential synergies between the two
firm's important copper assets in South America, BNamericas
states.

                  Xtrata's Previous Purchase

As reported in the Troubled Company Reporter - Asia Pacific on
Aug. 21, 2006, 257,700,100 common shares of Falconbridge had
been validly deposited to Xstrata's offer to acquire all
Falconbridge common shares not already owned by the company.

According to the TCR-AP report, Xstrata had taken up and
accepted for payment all shares tendered, which represent
approximately 67.8% of the issued and outstanding Common Shares
on a fully diluted basis.

   Falconbridge Didn't Register Sale with Dominican Tax Dept.

A subsequent report by the Troubled Company Reporter - Latin
America on August 25, stated that Falconbridge has not
registered its sale to Xstrata with the Dominican Republic's Tax
Department.

The TCR-LA cited the DR1 Newsletter as relating that the Tax
Department asked Falconbridge on July 19 to register the sale.

The TCR-LA recounted that Falconbridge sold most of its
outstanding stock to Xstrata for US$20 billion, through the
Toronto Exchange.  The sale includes 85% of Falconbridge
Dominicana.

The Tax Department may fine Falconbridge for not registering the
sale, DR1 stated.

                       About Xstrata

Xstrata plc -- http://www.xstrata.com/-- is a major global
diversified mining group, listed on the London and Swiss stock
exchanges.  The Group is and has approximately 24,000 employees
worldwide, including contractors.

Xstrata does business in six major international commodities
markets: copper, coking coal, thermal coal, ferrochrome,
vanadium and zinc, with additional exposures to gold, lead and
silver.  The Group's operations and projects span four
continents and nine countries: Australia, South Africa, Spain,
Germany, Argentina, Peru, Colombia, the United Kingdom and
Canada.

                      About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
orebodies.  It employs 14,500 people at its operations and
offices in 18 countries.  The Company owns nickel mines in
Canada and the Dominican Republic and operates a refinery and
sulfuric acid plant in Norway.  It is also a major producer of
copper (38% of sales) through its Kidd mine in Canada and its
stake in Chile's Collahuasi mine and Lomas Bayas mine.  Its
other products include cobalt, platinum group metals, and zinc.

Falconbridge has sales offices in Beijing, China, and Tokyo,
Japan, as well as a recycling plant in Penang, Malaysia.

                          *     *     *

Falconbridge's CDN$150 million 5% convertible and callable bonds
due April 30, 2007, carry Standard & Poor's BB+ rating.


MALAYSIA AIRLINES: Hikes Surcharges on International Routes
-----------------------------------------------------------
Malaysia Airlines has increased on September 4, 2006, its fuel
surcharges on several international routes, Today News reports,
citing Agence France Presse.

Under the changes, surcharges for flight on Malaysia Airlines
and those operated by its code-share partners will rise between
US$2 and US$20, AFP says.

Surcharges on flights from Malaysia to southeast Asian
destinations including Singapore, Brunei, Cambodia, the
Philippines and Thailand will rise by US$2, while those on
flights from Malaysia to India, Bangladesh and European
destinations were set to go up US$5.  The fuel surcharge was
raised by US$10 on Middle Eastern routes and by US$20 on flights
to the United States and Argentina.

According to AFP, one route from Malaysia`s northern Penang
state to Medan in Indonesia, saw a drop in the surcharge from
US$21.70 to US$18.70.

Meanwhile, surcharges on flights from Malaysia to Australia,
China, Hong Kong, Japan, the Maldives, New Zealand, Pakistan,
South Korea, Sri Lanka and Taiwan were unchanged, AFP adds.

                    About Malaysia Airlines

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

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


MENTIGA CORPORATION: Posts MYR6-Million Net Loss in 2nd Quarter
---------------------------------------------------------------
Mentiga Corporation Berhad has released its unaudited financial
report for the second quarter ended June 30, 2006.

For the quarter under review, the group registered a revenue of
MYR1,245,000, which is slightly lower compared to MYR1,580,000
revenue posted in the same quarter last year.  The revenue for
the six months ended June 30, 2006, was higher at
MYR9.49 million compared to MYR3.17 million for the
corresponding period last year.  The increase in revenue is due
to sales of exclusive logging works and fellable timber of
MYR7.17 million during the financial period.

The Group's pre-tax loss after minority interest decreased to
MYR2.55 million for the six months ended June 30, 2006, as
compared to MYR9.19 million from the previous financial period.
This is mainly due to the profits recognized from sales of
exclusive logging works and fellable timber.

For the quarter under review, the Group reported pre-tax loss
after minority interest increase to MYR6,019,000 million
compared to MYR3,470,000 profits from the previous quarter.  The
profit for the previous quarter is included the contribution
from the sales of exclusive loggings works and fellable timber,
whereas in the current quarter the company experiencing shortage
of raw material.

Meanwhile, net loss for the quarter under review stood at
MYR6,019,000, as against MYR4,992,000 net loss in the same
quarter last year.  As of June 30, 2006, the group retained
losses of MYR103,224,000.

As of June 30, 2006, the group has current assets of
MYR15,894,000 available to pay current liabilities of
MYR147,573,000 coming due in within the next 12 months.  The
group has net current liabilities of MYR131,679,000.

The group also has total assets of MYR85,632,000 and total
liabilities of MYR156,970,000, resulting into a stockholders'
deficit of MYR71,338,000 as of June 30, 2006.

No interim dividend has been recommended for the current
financial to date.

Mentiga Corp's Second Quarter Report and its accompanying notes
are available for free at:

   http://bankrupt.com/misc/tcrap_mentigacorp090406.xls
   http://bankrupt.com/misc/tcrap_mentigacorp090406.doc
   http://bankrupt.com/misc/tcrap_mentigacorplit090406.xls

                       About Mentiga Corp.

Headquartered in Pahang Darul Makmur, Malaysia, Mentiga
Corporation Berhad is engaged in the trading of timber products,
construction and property development and management and
advisory services to oil palm plantations.

In 2003, the Company proposed to undertake a debt-restructuring
program to settle its debt with creditors.  The Group has
submitted a revised comprehensive proposal to the Securities
Commission on March 16, 2005, to regularize its financial
condition and to restore the Group's shareholders' fund from
being in a deficit position in order to remove Mentiga from
being classified as a Practice Note 4 company.

As of June 30, 2006, Mentiga has total assets of MYR85,632,000
and total liabilities of MYR156,970,000, resulting into a
stockholders' deficit of MYR71,338,000.


PAN MALAYSIAN: Losses Shrink in First Quarter of 2006
-----------------------------------------------------
Pan Malaysian Industries Berhad has issued for public release
its unaudited financial report for the first quarter ended
June 30, 2006.

During the quarter ended June 30, 2006, the group recorded
higher revenue of MYR72.13 million compared to MYR66.42 million
in the same period last year.  The increase in revenue was
mainly due to the better performance of the departmental stores
operations of its subsidiary companies.

The group recorded a loss before tax of MYR0.87 million for the
quarter under review compared to the loss before tax of
MYR26.67 million in the preceding year corresponding period.
The lower loss before tax for the current quarter was mainly due
to the better results of associated companies and gain in
foreign exchange.

The group posted revenue of MYR72.13 million and a loss before
taxation of MYR0.87 million for the current quarter compared to
revenue of MYR95.68 million and profit before taxation of
MYR58.91 million (restated) in the preceding quarter.  The
higher revenue in the preceding quarter was mainly due to higher
sales achieved by the retailing operations of its subsidiary
companies during the festive seasons.  The higher profit before
tax in the preceding quarter was mainly due to the effects of
adoption of FRS 3 and 5 and the reversal of deferred tax by the
associated companies.

The group's June 30, 2006, balance sheet revealed weak liquidity
with MYR90,311,000 in current assets available to pay
MYR428,607,000 in current liabilities coming due within the next
12 months.

The group also has total assets of MYR705,300,000 and total
liabilities of MYR727,790,000, resulting into a stockholders'
deficit of MYR33,338,000 as of June 30, 2006.

There was no dividend paid in the current quarter ended June 30,
2006.

Pan Malaysia's First Quarter Report is available for free at:

   http://bankrupt.com/misc/tcrap_panmalaysian090406.xls

                  About Pan Malaysian Industries

Headquartered in Kuala Lumpur, Malaysia, Pan Malaysian
Industries Berhad is involved in the operation of departmental
and specialty stores and hypermarket.  Its other activities
include investment and property holding.  The Group's operation
is predominantly in Malaysia, Hong Kong and Singapore.

The Company has been suffering recurring losses since 1999.
Moreover, as of June 30, 2006, Pan Malaysian has total assets of
MYR705,300,000 and total liabilities of MYR727,790,000,
resulting into a stockholders' deficit of MYR33,338,000.


PROTON HOLDINGS: Lower Sales Drive MYR59M Loss in First Quarter
---------------------------------------------------------------
Proton Holdings Bhd posted a net loss of MYR58.65 million in the
first quarter to June 30, 2006, on MYR1.42 billion revenue,
Business Times reports.  The national carmaker had posted a loss
of MYR12.35 million on MYR2.05 billion revenue in the
corresponding first quarter of 2005.

The firm attributed the loss to a decline in total car sales and
the lack of a fresh line-up of car models at Proton, as it
transitions to several new models starting in 2007.

Proton managing director Syed Zainal Abidin Syed Mohamed Tahir
told Business Times that 32,200 cars were sold in the first
quarter compared with 44,367 units previously.  He said the drop
in car purchases was proportionate to industry trends, where
sales across the board declined by 5 per cent in the first half
of the year against a year earlier.

"While overall industry sales have dipped, Proton has been
affected mainly by the lack of new car models.  The bulk of our
models have been in the market for several years now while the
market is seeking something more fresh and exciting."

Mr. Syed Zainal said Proton's sales were further affected by
loan terms, interest rates and lower used car values which
required a higher cash top up to switch to a new car, Business
Times relates.  He added that while cost- cutting measures and
better implementation of component-sourcing are bearing fruit,
promotional and marketing costs have risen.

The expenses were recorded in the first quarter though the
results will only be visible in the upcoming quarter.

As an early indication, Proton's car sales in July rose 21% from
the previous month. Satria Neo has also been well received since
its launch in June, with 2,750 vehicles sold and 4,000 orders in
hand.

"This is again evidence that the market wants new cars. Because
the development of new cars takes up to two years, Proton can
only address this issue sometime next year," Mr. Syed Zainal
said.

He said the first quarter losses were balanced by several
initiatives which were implemented since the beginning of the
year, including cost cutting measures, reduction in operational
expenses and streamlining the procurement of components where
Proton now sources raw material in bulk for local vendors.

Proton's Financial Report for the quarter ended June 30, 2006,
is available for free at:

   http://bankrupt.com/misc/tcrap_protonholdings090406.pdf

                     About Proton Holdings

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

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

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


PROTON HOLDINGS: Cars to Hit Saudi Roads Soon
---------------------------------------------
Proton Holdings Berhad is preparing to introduce its cars in
Saudi Arabia this month through a new distributor, Al Rashed &
Al Thunayyan Auto Company, The Star Online reveals.

Al Rashed general manager Khaled A. Al-Thunayyan said the
company would be receiving the first shipment of 100 Proton
cars, including the Gen 2, Waja Campro and Savvy, by middle of
this month.

According to The Star, Al Rashed will be expecting between 100
and 120 units of the cars monthly, with number increasing
between 4,000 and 5,000 units annually.

Al Rashed, which has offices in Riyadh, Dammam, Jeddah and seven
other cities, is part of a conglomerate with business interests
ranging from engineering, trading, construction, finance,
investment, travel, furniture, vehicle trading, watches and
jewellery.

Al Rashed has been appointed the exclusive Saudi Arabian
distributor for Proton for a five-year period.  It is under a
contractual volume commitment of 1,060 units for the first year,
1,800 units for the second year and 2,400 units for the third
year, The Star relates.

Under the agreement, Proton will send its engineers and
mechanics to Saudi Arabia while Al Rashed will send its staff
for training at the Proton plant, The Star adds.

                      About Proton Holdings

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

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

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


TALAM CORPORATION: Board to Seek Shareholders' Mandate at AGM
-------------------------------------------------------------
At an annual general meeting to be convened, Talam Corporation
Berhad's board of directors will propose to obtain the
shareholders' mandate for recurrent related party transactions
of a revenue or trading nature pursuant to the Bursa Malaysia
Securities Berhad's Listing Requirements.

The Board will also seek shareholders' approval for the purchase
of up to 10% of the issued and paid-up ordinary share capital of
the company.

As of August 29, 2006, the company has purchased 878,600 of its
own shares. All shares purchased are being held as treasury
shares.

                        About Talam Corp.

Headquartered in Kuala Lumpur, Malaysia, Talam Corporation
Berhad is principally engaged in property development.  Its
other activities include trading building materials,
manufacturing of ready mixed concrete, provision for higher
educational programs, development and management of hotel, golf
and country club horticulturists, agriculturists and landscaping
designers and contractors and investment holding.  Operations of
the Group are carried out in Malaysia and China.

The Company has accumulated losses and debt in the past few
years.  As of January 31, 2006, the Company registered
accumulated losses of MYR253,898,000.  In a bid to cut back on
its liabilities, the firm has proposed a debt restructuring
scheme, which is still pending approval of relevant authorities.


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

BACNOTAN CONSOLIDATED: To List 33,961,345 Shares on September 6
---------------------------------------------------------------
The Philippine Stock Exchange, Inc., approves the application of
Bacnotan Consolidated Industries, Inc., to list additional
33,961,345 common shares, with a par value of PHP10 per share,
and which comprise of:

   -- 33,957,263 common shares to cover the 20% stock dividend
      declaration to stockholders of record as of August 11,
      2006; and

   -- 3,882 common shares that were previously issued by the
      company but not yet listed.

Accordingly, the listing of the 33,961,345 common shares is set
for September 6, 2006.

                          About BCI

Makati-based Bacnotan Consolidated Industries, Incorporated,
Phinma Group's flagship company, was founded by a group of
industrialists led by the Escaler family in 1957.  BCI is a
holding company that, through its operating subsidiaries, is
engaged primarily in the production, distribution and sale of
clinker, cement and concrete products.  It also has an interest
in the paper and packaging industry and it has also ventured
into property development and reinforced steel bars
manufacturing.

The Company's principal source of revenue is from the cement
sales of its cement subsidiary.  Historically, its cement
subsidiary has been responsible for at least 80% of its sales
revenues.  It is primarily engaged in the quarrying, production,
distribution and marketing of portland and pozzolan cement.

On March 22, 2006, the Troubled Company Reporter - Asia Pacific
cited a report from the Philippine Inquirer saying that the
Philippine Stock Exchange planned to remove Bacnotan
Consolidated from its index due to insufficient tradability.


BANK OF CEBU: Bangko Sentral Closes Bank Due to Insolvency
----------------------------------------------------------
On September 1, 2006, the Bangko Sentral ng Pilipinas closed all
seven branches of the Bank of Cebu, which has been deemed
insolvent by the BSP, The Freeman reports.

The paper cites Francis Randy Hortelano, Supervising Information
Specialist-Depositors Assistance Bureau of the Philippine
Deposit Insurance Corp. as explaining that Bank of Cebu has been
considered insolvent because its assets are not sufficient to
cover its liabilities.

There were 7,870 depositors affected by the bank's closure, The
Freeman says, but notes that deposits of up to a maximum of
PHP250,000 are insured by the PDIC.  Thus, depositors with
deposits less than PHP250,000 in the bank can get their money
back in full from the PDIC.

However, The Freeman relates that Mr. Hortelano said that only
98% of the depositors can claim their money in full from the
PDIC because some depositors have more money than the maximum
insurance coverage in the bank.

The remaining 2%, whose deposits exceed PHP250,000 will still
get to recover their deposits from the proceeds when the bank
disposes of its properties, Mr. Hortelano noted.

PDIC expects to shell out some PHP171.3 million, which
represents 7,870 accounts.  That's about 70% of the total
deposits of PHP244.39 million, Sun.Star Daily relates.

According to Sun.Star, the Bank of Cebu is a multi-unit private
thrift bank whose current chairman of the board is Rodolfo I.
Sabater.

According to The Freeman, the bank's closure is the first bank-
related crisis since Urban Bank's closure in the late 1990s,
which was an aftermath of the 1997 regional economic crisis in
Asia.

The paper relates that the announcements on the posters at the
various branches said that the BSP and PDIC have put the bank
under receivership.

The bank's possibility of reopening will depend on its board
members' rehabilitation plan to bring back the bank's capacity
to provide immediate service to its depositors, The Freeman
notes.

The paper further discloses that:

   -- Peninsula Equity Realty Assets Inc. owns 45% of the bank
      and has a paid up capital of PHP37 million;

   -- The Development Bank of the Philippines owns 15% of the
      stocks;

   -- a certain Atty. Leandro Cedo owns 9%;

   -- 5% is owned by TSK Marketing; and

   -- 1.4% belongs to the Land Bank of the Philippines.

According to Sun.Star, the owners have 90 days to come up with a
viable rehabilitation plan, for the PDIC to evaluate whether or
not they can still manage the bank.

A date will be set for the payment of depositors' insurance
claims.

Sun.Star says that under the law, claims for deposits in excess
of the insured PHP250,000 will be settled together with claims
of other ordinary creditors, after preferred claims like
government taxes, labor claims, secured credits and trust funds
are settled.

But if another bank takes over a bank that is subject to
receivership and closure, then there won't be a problem because
the new owner will assume the deposit accounts of the closed
financial institution, the paper cites Proserfina Siguenza, BSP
Cebu supervision and examination department II chief, as saying.

Ms. Siguenza noted that as of September 1, 2006, she has not yet
received a copy of the resolution, although she has inquired
with the BSP central office in Manila if there is an evaluation
of receivership on the Bank of Cebu.

However, there is still no official confirmation of a possible
takeover of the bank by another, Sun.Star notes.

According to the PDIC Web site, depositors of a closed bank
should file a claim within 24 months from the date of the bank's
closure.  Those who fail to do so in the prescribed period will
lose the right to claim insured deposits, Sun.Star says.

To claim their money, depositors will have to fill up a
clearance form provided by the PDIC and present two
identification cards.

Upon serving of the closure order from the BSP Monetary Board,
the PDIC will immediately take hold of all records and cash of
the bank in question, to "avoid manipulation of records" and
loss of cash, Ms. Siguenza, says.

The Bank of Cebu's main office address is at:

   The Bank of Cebu (A Development Bank)
   Contact: Ephraim C. Salcedo
   Position: Officer-In-Charge
   Address: The Bank of Cebu Bldg.,
            131 V. Gullas St. cor. Osme¤a Blvd.,
            Cebu City 6009
   Contact: (032) 253-9552; 255-6070
   Fax: (032) 255-5147

The other branches are in:

   1. Carcar,
   2. Consolacion,
   3. Lapu-Lapu City,
   4. Mandaue City,
   5. Mactan Economic Zone, and
   6. Tabunok


BENGUET CORP: Submits Reports; Shares Trading Resumes
-----------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 29, 2006, the Philippine Stock Exchange advised that
Benguet Corporation, whose trading of shares was suspended, has
not submitted its Quarterly Report for the quarter ended
June 30, 2006.  Thus, the company's trading of its shares
remained suspended pending compliance with the PSE's
requirements.

An update from the PSE's Memo for Brokers dated September 1,
2006, reveals that the company has already submitted its Annual
Report for the year ended December 31, 2005, and its Quarterly
Reports for the periods ended March 31, 2006, and June 30, 2006.

The PSE also disclosed that the company has also settled the
corresponding penalties for its delayed submission of the
reports.

The trading suspension on the company's shares has been lifted
on September 1, 2006.

The TCR-AP previously reported that the company was not able to
submit its fiscal 2005 financial report to the Securities &
Exchange Commission by the May 31, 2006 deadline.  Hence, it was
ordered to pay a fine of PHP50,000.

                     About Benguet Corporation

Benguet Corporation -- http://www.benguetcorp.com/-- was
organized to primarily engage in gold mining.  It expanded into
chromite and copper production, and then into the fields of
general engineering and industrial construction, agriculture,
shipping, banking and finance, real estate and forestry-based
ventures.

As of March 31, 2006, Benguet Corp.'s liabilities to its
creditor-banks amount to PHP1.7 billion.

                          *      *      *

In a financial report for the quarter ended March 31, 2006, the
Company posted PHP310.66 million in current assets available to
pay PHP3.865 billion in current liabilities due within the next
12 months.  Benguet Corp.'s total assets for the period amount
to PHP3.213 billion, compared with total liabilities of
PHP4.909 billion, resulting to a PHP1.695-billion stockholder's
equity deficit.


CHINA BANK: Expands Remittance Network
--------------------------------------
China Bank continues to strengthen its remittance service --
China Bank On-Time Remittance -- as its further expands its
reach through trusted and well-known remittance partners abroad.

China Bank recently signed an agreement with Singapore's
BrunPhil Express (s) Pte Ltd., and U.S.A.'s Omnex Group, Phil.
Express Remittance and Allied Services, Inc., and U.A.E.'s Wall
Street Exchange.

BrunPhil is one of the leading remittance centers in Singapore
providing customers with reliable, fast and up-to-date
remittance services since 1997.  It is strategically located at
Lucky Plaza in Orchard Road.

Omnex Group, based in Paramus, New Jersey, USA, and operates in
47 U.S. states, is positioned to become the third largest global
money transfer company by the end of 2007.

PERA is one of the leading Filipino remittance centers operating
in San Francisco.

Wall Street Exchange is one of the oldest and largest exchange
companies in the UAE with 9 branches throughout the Emirates.

Through these partnerships and the earlier alliances established
with Qatar's Al Fardan Exchange Co., LLC, and California's East
West Bank of USA (no relation to East West Bank in the
Philippines), Filipinos and other nationalities living or
working in the U.S.A., the Middle East, and Singapore can easily
and securely send money to their loved ones in the Philippines.
The remittance fee for every China Bank On-Time Remittance is
very low, China Bank says.

At East West Bank USA, the fee is only US$8 for dollar to Peso
transactions and only US$20 for dollar-to-dollar transactions.
At Brunphil, it is SGD5 per transaction and special discounts
are even given to frequents remitters.

At Al Fardan, China Bank On-Time Remittances are free.

Remittances made at any of China Bank's remittance partners
arrive in the country in minutes.  It can be credited directly
to the beneficiary's China Bank account or China Bank On-time
Remittance Card.  It may also be claimed at any of the 141 China
Bank branches, withdrawn from any China Bank, Bancnet, Megalink,
or ExpressNet ATM, or delivered directly to the beneficiary's
address.

China Bank even sends free notifications via SMS to inform
beneficiaries about their remittance.

Negotiations with other remittance partners are underway.  Soon,
OFWs and Filipino migrants in Italy, Spain, Greece, Saudi
Arabia, Bahrain, Lebanon, and other parts of Asia can easily and
safely remit through China Bank On-Time Remittance, the bank
notes.

                        About China Bank

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

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

                          *     *     *

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


DEVELOPMENT BANK: $130M Hybrid Issue Carries Fitch's BB- Rating
---------------------------------------------------------------
Fitch Ratings assigns a rating of 'BB-' to the Development Bank
of the Philippines' planned hybrid issue of up to
US$130 million.  DBP was also assigned a Long-term local
currency Issuer Default Rating of 'BB+', a Long-term foreign
currency IDR of 'BB' and a National rating of 'AA+(phl)'.  The
Outlook for all the ratings is Stable.  DBP's existing
Individual rating was affirmed at 'C/D' and Support ratings at
'3.'

The ratings reflect DBP's strong inherent financial strength,
albeit within a weak and potentially volatile Philippine
operating environment, and the considerable likelihood of
support for the bank if needed by its 100% shareholder, the
Philippine government, whose capacity is limited, as per its
IDRs which are the same as DBP's.  The hybrid rating considers
the greater potential for investor-loss on the instruments with
DBP having the option to defer interest payments in the event of
its CAR falling below the 10% regulatory minimum, or if its
distributable reserves -- from which the interest is to be paid
-- becomes insufficient.  It also takes into account the
hybrids' junior status in the event of liquidation.

At end-2005, DBP's impaired assets were high at c.15%, but c.64%
were covered by loan loss reserves, one to two years' profit
should cover any shortfall in reserves.  Industry-wide impaired
assets stood at c.20% and were notably less covered.  The
difference is due to the nature of DBP's operations, with its
loan book being c.35% comprised of loans to other Philippine
banks for developmental on-lending purposes.  The outlook for
DBP's impaired assets is generally stable, with the bank posting
a low 7% loans growth over the three years to end-2005.  DBP's
profitability has been increasingly good over recent years, with
a RoAA of 1.8% in 2005 (and at an average of c.1.3% p.a. for the
previous three years), with its developmental loans funded by
multi-lateral and bilateral agencies (most notably from the
Japan Bank for International Cooperation) on a long-term/fixed-
rate basis.

At mid-2006, DBP's Tier I stood at 18.7% and total CARs at
21.9%.  However, with the risk weighting for its investment in
USD Philippine government securities set to gradually rise from
0% to 100% over the next couple of years under Basel II, DBP's
CAR is projected to decline by more than four percentage points
-- hence the issuance of up to US$130 million in hybrid Tier I
securities, which will add almost five percentage points to the
bank's CAR.  It is not clear at what level DBP will maintain its
Tier I CAR, given fiscal difficulties, the sovereign may well be
demanding in terms of dividend payments.

Whilst not likely, a systemic banking failure is the main risk
to DBP.  In the unlikely case of DBP's "stand-alone" failure,
Fitch's expectation is that the bank would be supported by the
sovereign -- already, DBP's bi/multi-lateral borrowings are
largely guaranteed by the government.  And while the hybrid
issue is, as of a matter of course not guaranteed, Fitch would
expect some support for it from the sovereign if need be.

Established in 1935, DBP is the Philippines' seventh-largest
bank with 4% of system-wide assets. It has a relatively small
network of 77 branches and 91 ATMs.


DEVELOPMENT BANK: S&P Assigns 'B+' to Hybrid Tier-I Security
------------------------------------------------------------
Standard & Poor's Ratings Services assigns its 'B+' long-term
issue credit ratings to the Development Bank of the Philippines'
Tier-I Hybrid Security of up to US$130 million.

The issue rating is three notches below the issuer credit rating
of 'BB+' long-term local currency rating, which accounts for the
optional and mandatory conditions under which DBP can omit
interest payments, as well as the speculative-grade status of
the issuer.

"These factors are balanced against Standard & Poor's assessment
of a low likelihood of interest payment deferral options being
exercised under existing conditions, and the expectation of
ongoing support to DBP based on its importance as a fully
government-owned policy bank," Standard & Poor's credit analyst
Agost Benard, says.

Proceeds of the non-cumulative step-up perpetual security are
aimed at strengthening the bank's regulatory capital base, which
DBP aims to maintain at about 20%.

Under the payment limitations of the instrument, DBP has the
option of not paying interest in the event that it has not
declared or paid a dividend in the preceding financial year, or
if it determines no dividend is to be paid in the current year.
In addition while DBP's charter stipulates an obligation to pay
dividend to the government of up to 50% of profits, central bank
(BSP) regulation only allows dividend payment if DBP had made an
operating profit for the two preceding years.

Nevertheless, Standard & Poor's believes the likelihood of DBP
exercising those options or being obliged to do so is currently
low, and that government support to both issuer and the issue is
likely in a distress scenario.  Being one of the country's two
development banks, DBP is deemed to have a relatively strong
motivation to protect its reputation by paying interest, even
when it has the option of omitting those.  However, should DBP
issue more instruments of a similar type, the resulting increase
in DBP's leverage would cause Standard & Poor's to reexamine the
issue ratings, given the implied increase in the probability of
interest payment deferral clause being exercised.


DEVELOPMENT BANK: S&P Gives 'BB-/B' and 'BB+/B' Credit Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services assigns its 'BB-/B' foreign
currency and 'BB+/B' local currency counterparty credit ratings
to Development Bank of the Philippines.  The outlook is stable.

"The ratings on DBP benefit from the expected support from the
Philippine government, owing to its strong government linkages
and importance to the sovereign," Standard & Poor's credit
analyst Agost Benard, says.  "The ratings also incorporate the
bank's favorable stand-alone financial profile when compared
with domestic banks, and its weak, though improving, asset
quality."

DBP is wholly owned by the government of the Republic of the
Philippines (foreign currency BB-/Stable/B; local currency
BB+/Stable/B).  DBP's board of directors is appointed by the
President of the Republic.  Its designated mandate is broadly
defined as providing development financing, and its business
plans are closely linked to the government's medium-term
development agenda.  Despite its official status as a
development bank and unlike most conventional development banks,
DBP also engages in the full spectrum of commercial banking
operations.

DBP has enjoyed occasional government support, notably through
capital support, debt and liability absorption in the framework
of a restructuring exercise, and sovereign guarantees on its
foreign borrowings.  Despite its public role, DBP operates on a
commercial basis with much autonomy, and competes with private
sector banks in most of its activities.  Its commercial
orientation is highlighted by its stable and marginally
improving profitability since fiscal 2001.  DBP's profitability
is better than that of domestic banks due to its relatively
lower cost structure and low credit loss provisions.

DBP has maintained a diversified funding profile since fiscal
2001, with bills and bonds payable, deposits, and shareholders'
equity contributing 90% of total funds.  The relative high
proportion of bonds in the funding structure provides tenor
benefits and the inherent interest cost disadvantage is balanced
by lower operating expenses for raising these resources.

DBP's capitalization is adequate for the scale and risk profile
of its operations.  The bank's adjusted common equity improved
to about 11.8% of adjusted assets, as at December 31, 2005,
after a decline in 2004, and was comparable with the domestic
average.

DBP's asset quality is weak by global standards, although
nonperforming assets as a proportion of customer loans have been
declining since fiscal 2001.  Its ratio of nonperforming assets,
at 16% of customer loans on December 31, 2005, compares
favorably with domestic peers.  A key factor that has
contributed to DBP's better asset quality in comparison with its
peers is its large exposure to domestic and multinational
financial institutions.

The stable outlook reflects Standard & Poor's view that DBP will
be able to sustain its financial profile in the medium term and
that it will continue to be a financial institution owned by,
and important to, the government.  The rating on DBP could be
raised if Standard & Poor's raises its sovereign credit ratings
on the Philippines and the bank's stand-alone profile, in terms
of asset quality, profitability, and capitalization, improves
simultaneously.

Standard & Poor's would lower its ratings on DBP if there is
deterioration in its business and financial profile, reduced
systemic importance of DBP to the government, or if the credit
rating on the sovereign is lowered.


SECURITY BANK: Increases Cash Dividend by 50%
---------------------------------------------
The Board of Directors of Security Bank Corporation approves the
declaration of a PHP0.75 cash dividend payable on the approval
of the Bangko Sentral ng Pilipinas.

The cash dividend consists of a regular cash dividend amounting
to PHP0.25 per share and a PHP0.50 per share special cash
dividend.  This second cash dividend brings total dividends
declared by the Bank this year to PHP1.50 per share, a 50%
growth over that of 2005.  The current dividend results in a
dividend yield of 3.4% based on the average share price for the
last seven months and is equivalent to a 43% pay-out ratio of
Security Bank's prior year's earnings.

Security Bank has progressively improved its cash dividend
declarations since its first cash dividend declaration in 2002,
alongside its successful efforts at building a sustainable
earnings base for the Bank.

Security Bank posted a net income of PHP1.01 billion for the
first semester of 2006, 50.7% more than the PHP670 million
earnings for the same period last year and is almost equal the
net earnings achievement for the full year of 2005 which stood
at PHP1.16 billion.  Earnings per share for the first semester
of 2006 likewise increased from PHP2.03 to PHP3.07 per share
this year.

The bank's average return on equity has shown considerable
improvement over the years, increasing from the single digit
levels reflected after the Asian financial crisis to the current
annualized return on average equity of 19.5%, a significant
growth over the 12.6% in the comparative period last year.

The Bank has likewise exhibited exemplary asset quality
indicators, underscoring its prudent approach to growth as its
non-performing loans (NPL) ratio stood at a healthy 4.2% with
NPL cover at 141%.  This is the result of the Bank's commitment
to and execution of a credible NPL resolution plan over the last
few years.

The solid earnings performance coupled with its emphasis on
asset quality have further bolstered the Bank's financial
strength resulting in a capital adequacy ratio of 24% as of June
2006.

In a related statement, Security Bank President Alberto S.
Villarosa stated:

"We have over the last three years consistently improved on our
performance year-on-year, achieving a growth and profit
performance previously unequalled in Security Bank's corporate
history.  We believe that opportunities are always present
regardless of the environment and that it is a question of
identifying these opportunities and quickly capitalizing on
these developments to further build our business."

                         About Security Bank

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

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


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

DIGILAND INTERNATIONAL: Pays Serviceable Loan to Creditors
----------------------------------------------------------
Digiland International Limited on June 13, 2005, unveiled its
proposed scheme of arrangement, under which each claim of a
scheme creditor will be divided into:

    -- a serviceable loan -- to be serviced during the scheme
       period; and

    -- a convertible two year bond which the company will
       convert into new shares.

The company estimates that the aggregate amount payable to all
scheme creditors under the serviceable loan is US$7,198,000.
For the serviceable loan, the company will pay US$1,948,000 to
the scheme creditors pro rata in 24 equal installments.  The
company will pay the first installment within five business days
after the effective date of the scheme. If the effective date is
less than five business days before August 31, 2005, the company
must pay the first installment no later than August 31, 2005.
The company will pay each subsequent installment before the last
day of each subsequent month.

For the remaining US$5,250,000 of the serviceable loan, the
company expects to derive the funds from the sale of some of its
assets.  It will pay the proceeds from the sale of these assets
when it receives the proceeds and subject to the company
obtaining the approval from its shareholders for the sale of
such assets -- if necessary-- or a waiver from the Singapore
Exchange Securities Trading Limited.

The aggregate amount due under the convertible bond to all
scheme creditors will be the aggregate value of the admitted
claims less the aggregate amount due under the serviceable loan
to all scheme creditors.  The company will convert to new shares
the outstanding amount due upon the expiry of two years after
the effective date or earlier if a third party has entered into
an agreement with for the subscription of shares.  The formula
for determining the number of new shares to be issued under the
conversion of the outstanding amount due to the convertible loan
depends on whether the company has entered into an agreement for
the subscription of shares in its capital.

If the company has not entered into such an agreement, the
conversion is intended to result in the scheme creditors holding
65% of the enlarged total issued share capital.  If the company
has entered into such an agreement, the conversion is intended
to result in the scheme creditors holding 25% of the enlarged
total issued share capital on the basis that the aggregate
subscription price payable by the third party is at least
S$5,000,000. The company will adjust these percentages if it
pays scheme creditors any amounts towards reducing the amount
due under the convertible bond, or if the third party pays a
subscription price of less than S$5,000,000. The company will
determine how many new shares is to be allotted to each scheme
creditor for every US$1 outstanding under the convertible loan
based on the applicable percentage under the Scheme.

In an update on September 1, 2006, Digiland has paid to the
scheme creditors by cheques an aggregate principal sum of
SGD408,517.07 and US$642,899.61 plus interest under the
serviceable loan.

Therefore, no scheme creditor has any outstanding entitlements
under the scheme.

Upon the scheme creditors presentation of cheques, the scheme
manager will certify that the company has completely performed
its obligations under the scheme, thus terminating the scheme.

                  About Digiland International

Digiland International Limited -- http://www.digiland.com.sg/--  
is a major distributor of IT products and provider of IT
services in the Asia-Pacific.  The Digiland International Group
of Companies was set up initially as the distribution arm of GES
International Limited to handle sales, marketing and
distribution of GES products, specifically the Datamini brand of
Personal Computer, designed and manufactured by GES
International Limited.  It was renamed Digiland International
Private Ltd in 1998 and has since expanded geographically to
cover most countries in Asia-Pacific.

The company has reported a loss of US$44.7 million for the year
ended June 2004, and US$18.7 million for the year ended June
2005 due to the negative impact of the highly cyclical nature of
the computer industry. Sales were adversely affected by the
shortening product cycles of IT products and downward pressure
on selling prices as newer and more technologically advanced
products enter mass production.  Aside from recurring losses,
the company's subsidiaries have also been bombarded by wind-up
petitions filed by creditors.


ELECTA SYSTEM: Pays First and Final Preferential Dividend
---------------------------------------------------------
Electa System Pte Ltd has paid its first and final preferential
dividend to creditors on August 29, 2006.

The company paid 18.5% of the creditor's salaries.

The official receiver can be reached at:

         The URA Centre (East Wing)
         45 Maxwell Road #06-11
         Singapore 069118


LIANG HUAT: Appoints Lim Jenny as Group Financial Controller
------------------------------------------------------------
Liang Huat Aluminium Limited has appointed Lim Jenny as the
group's financial controller on September 1, 2006.  As the
financial controller, Ms. Lim will be responsible for overall
management of financial affairs of the group.

Ms. Lim has been the financial controller of Unitek Group
Limited from March 2005 to April 2006.  She was also the audit
manager of KPMG Huazhen (Shanghai Branch) and was the Audit
Manager of LTC & Associates.

                          *     *     *

Liang Huat Aluminium -- http://www.lianghuatgroup.com.sg/-- is
a vertically integrated, professionally run group of companies
focusing on producing high quality aluminum products and
processed glass for both the industrial and construction
industries.  It also supplies and installs aluminum and
processed glass for major commercial and residential projects
mainly in Singapore.  Liang Huat was the subject of a wind-up
petition filed by Lim Ah Siong trading as Lian Siong Aluminium &
Trading on August 26, 2004.  Presently, the company is
undergoing a financial restructuring exercise.  It is also
working a Scheme of Arrangement with its major creditor banks.


MAE ENGINEERING: Director Resigns; Executive Officers Appointed
---------------------------------------------------------------
Tan Hee Chai, has ceased to act as a Non-Executive Director of
Mae Engineering Ltd on August 31, 2006.  Consequently, Mr. Tan
will cease as Chairman of the Audit Committee and a member of
the Remuneration Committee.

Moreover, Barbara Seng Suet Shee has been promoted from Vice
President "Legal & Contracts" to Executive Vice President
"Corporate Affairs" on September 1, 2006.  Ms. Seng will
continue to be the company's Secretary and will lead the team
for corporate management services, aside from overseeing all
legal and contractual matters of the group.

In the same aspect, Leong Hin Chuee has been appointed as
Executive Vice President "Business Development" of the company
on September 1, 2006. He will manage the functions of strategic
planning and business development and will help drive the growth
of the Group into new markets and new businesses.

In addition, Chan Tuck Weng has been promoted from Senior
Manager "Corporate Services & System Control" to Assistant Vice
President "System Control" with effect from September 1, 2006.
Mr Chan will continue to assist the company on the development
of an effective management control system for the group.

                          *     *     *

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

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


REFCO INC: Chap. 11 Trustee Wants RCM Pact Objections Overruled
---------------------------------------------------------------
Marc Kirschner, the Chapter 11 trustee overseeing Refco Capital
Markets, Ltd.'s estate, asks the Hon. Robert Drain of the U.S.
Bankruptcy Court for the Southern District of New York to
overrule all the Objections and approve, in their entirety, the
RCM Settlement and a settlement joinder by Rogers Raw Materials
Fund, L.P. and Rogers International Raw Materials Fund, L.P.

Some objecting parties sought assurance that the Settlement
preserves their right to seek characterization of their claims
as "Securities Customer Claims."  The RCM Trustee relates that
the requested assurance will be addressed through an amendment
to the Settlement or reflected in a revised proposed order
approving the Settlement.

The RCM Trustee also assures the Court that nothing in the
proposed order, as revised, approving the RCM Settlement would
modify an April 26, 2006 Stipulation with the SPhinX Entities,
which stipulation contains an unfortunate provision that makes
its finality depend on exhaustion of appeals.  Although the
proceeds of the SPhinX recovery fall within the Settlement's
"Assets in Place," the revised order will clarify that the RCM
Trustee's right to distribute proceeds will have to abide
conclusion of an appellate process on the SPhinX Stipulation.

The RCM Trustee believes that neither the RCM Settlement nor the
Revised Order would result in the allowance of substantial
contribution claim amounts -- the subject of the U.S. Trustee's
and Beckenham Trading Company, Inc.'s objections.

Notwithstanding the RCM Trustee's support for allowance of the
amounts as reasonable, the U.S. Trustee and other parties-in-
interest would reserve the right to object to the reasonableness
of the claim amounts asserted, which point would be confirmed in
the Revised Order.

With respect to JPMorgan Chase Bank, N.A.'s objection, the RCM
Trustee confirms that the Settlement neither allows nor
compromises JPMorgan's secured claim against RCM in any way.
The Revised Order would confirm that JPMorgan's rights will not
be affected by the Settlement approval in the event that the
SphinX Settlement is reversed or the proceeds of the SPhinX
Settlement are otherwise unavailable or insufficient.

Mr. Kirschner also contends that neither of these objectors
claims a direct right against RCM:

     * FXCM Capital Markets, L.L.C., and its affiliate are
       contract parties with Debtor Refco F/X Associates, LLC;
       and

     * The Ad Hoc Refco F/X Customer Committee purports to
       represent FXA creditors.

Mr. Kirschner explains that these objectors' interests depend on
(i) FXA's claims against RCM being allowed; (ii) FXA
establishing a net unsecured claim against RCM; and then (iii)
the incorrect proposition that FXA's claim would be prejudiced
by the Settlement.

These objecting parties also have no legitimate economic stake
in the outcome of the Settlement:

   * the Ad Hoc Committee of Equity Security Holders;

   * the Ad Hoc Committee of Senior Subordinated Noteholders,
     which represents holders of notes issued by Refco Finance
     Inc., and Refco Group Ltd., LLC;

   * Wells Fargo Bank, NA, as indenture trustee for the
     Noteholders;

   * Albert Togut, the Chapter 7 Trustee overseeing Refco,
     LLC's estate;

   * Bank of America, N.A., as agent to a group of lenders that
     has lent to RGL; and

   * the Official Committee of Unsecured Creditors.

Tina L. Brozman, Esq., at Bingham McCutchen LLP, in New York,
relates that a small core of objections -- from a tiny minority
of discrete RCM constituents and certain other Debtors,
represented by Skadden, Arps, Slate, Meagher & Flom LLP, that
have asserted that they are RCM creditors -- have merits.

With regard to customer claims to asset ownership, the RCM
Trustee is seeking to settle disputes raised by Josefina Franco
Siller and Winchester Preservation LLC, and is prepared to
reserve the rights of Bencorp Casa de Bolsa, C.A., and Living
Water for the time being.

The RCM Trustee maintains that the Settlement does not
constitute a sub rosa plan.  Ms. Brozman points out that when a
settlement agreement or sale of assets preserves the rights of
other parties-in-interest to participate in a plan development
and voting process, it will not constitute a "sub rosa" plan.

In addition, Ms. Brozman argues, objections relating to the best
interests of creditors test are "premature," since there is no
way of prognosticating, in advance of promulgation of a global
plan, whether a particular creditor will accept the plan under
Section 1129(a)(7)(A)(i) of the Bankruptcy Code.

The RCM ascertains that if the Settlement is implemented in a
plan, then RCM's constituents will receive from the Assets in
Place a substantially better return than they would obtain in a
stockbroker liquidation.

Moreover, the RCM Trustee asserts that approval of the RCM
Settlement will appropriately treat the Rogers Funds Claims,
which are among the largest claims in the Debtors' cases
totaling around $382,000,000.  The RCM Trustee says:

   (i) Rogers Funds was unlikely to prevail in its constructive
       trust claims;

  (ii) Rogers Funds was unlikely to prevail in claims brought
       against other Debtors;

(iii) Rogers Funds was highly likely to establish substantial
       allowed claims at RCM;

  (iv) the Rogers Funds Claims were likely to be characterized
       as "securities customer" claims; and

   (v) it was possible, but unlikely, that the Rogers Funds
       Claims would be characterized as FX/Unsecured Claims.

               Rogers Funds, et al., Support Accord

Rogers Funds want all the Objections overruled -- and the
Settlements approved -- on the grounds that:

   (a) the Objecting Parties mischaracterize the scope and
       objective of the Rogers Settlement Joinder and ignore
       its importance as a "core condition" of the RCM
       Settlement;

   (b) Rule 9019 of the Federal Rules of Bankruptcy Procedure
       does not require a full adjudication of the Rogers
       Funds' Claims at RCM before the Settlement Joinder can be
       approved; and

   (c) Refco LLC has grossly mischaracterized the facts and law
       related to the "Rogers Funds Action."

Guy S. Neal, Esq., at Sidley Austin LLP, in New York, points out
that no party with a recognized claim against RCM has objected
to the Rogers Settlement Joinder.  More significantly, the
super- majority of holders of both the Securities Customers
Claims and the FX/Unsecured Claims support the Rogers Settlement
Joinder and made it a condition precedent to going forward with
the RCM Settlement.

Certain foreign exchange customers of RCM and Leuthold Funds,
Inc., and Leuthold Industrial Metals Fund, L.P., which hold in
the aggregate approximately $400,000,000 in claims against RCM,
want the Settlements approved on the basis that:

   -- the Creditors Committee's allegation that it was excluded
      from participating in negotiations surrounding the RCM
      Settlement is baseless;

   -- the objecting parties fail to demonstrate why the
      "customer property" allocation under the RCM Settlement is
      unreasonable;

   -- the Creditors Committee incorrectly analyzes both the risk
      of material "migration" of Securities Customer claims and
      the legal effect of migration if RCM's case was a
      stockbroker liquidation proceeding; and

   -- the Refco LLC/Rogers Funds risk is minimal and may benefit
      the FX/Unsecured Creditors.

Securities customers holding approximately US$1,700,000,000 in
customer claims, and Abadi & Co. Securities, Ltd., also call for
approval of the RCM Settlement and Rogers Settlement Joinder.

                     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
activites, 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 Bankruptcy News,
Issue No. 39; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SEE HUP SENG: Executive Director Steps Aside
--------------------------------------------
Terence Lim Peng Chuan has ceased to act as Executive Director
of See Hup Seng Limited on September 1, 2006.

Mr. Terence will also cease to act as a member of the Mominating
Committee.

                          *     *     *

See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is
engaged in the provision of corrosion prevention services
through a range of marine and industrial blasting and coating
methods.  Its other activities are the provision of tank
cleaning, painting and coating, ship repair, shipbuilding and
scaffolding services, trading and manufacturing of blasting and
painting equipment and investment holding.  The group is
domiciled in Singapore and markets its products and services
domestically and in the People's Republic of China, Hong Kong
and Cayman Islands.

                         Significant Doubt

As reported in the Troubled Company Reporter - Asia Pacific on
May 24, 2006, after reviewing the company's full year financials
for the year 2005, Moore Stephens--See Hup Seng's independent
auditors--expressed a significant doubt in the company's ability
to continue as going concern on April 7, 2006, citing the
company's losses and net current liabilities.  Moore Stephens
adds that the ability of the group and the company to continue
as going concerns is dependent the company's debt restructuring
exercise.


SPECTRUM BRANDS: 3rd Fiscal Quarter Earnings Down to US$2.5 Mil.
----------------------------------------------------------------
Spectrum Brands, Inc. reported net income for the quarter ended
July 2, 2006 of US$2.5 million compared to US$23.7 million for
the quarter ended July 3, 2005.

The Company also disclosed net sales for the third fiscal
quarter ending July 2, 2006 was US$698.3 million versus US$707.8
million for the same period a year ago.

Net income for the nine months ended July 2, 2006 was US$5.4
million, compared to $49.7 million for the same period in the
previous year.

For the nine months ended July 2, 2006, net sales was US$1.94
billion, up by 13% from US$1.72 billion, for the same period a
year ago.

"Spectrum Brands continues to face challenges in our European
battery business, which was the leading contributor to our
disappointing third quarter results," David A. Jones, chairman
and chief executive officer, said.  "We also generated lower-
than-expected sales this quarter from Remington men's shaving in
North America at Father's Day.  However, there were a number of
bright spots in our third quarter results, including a strong
performance from Remington branded products in Europe and a
modest but encouraging sequential improvement in our North
American battery business.

Gross margin for the quarter was 38% versus 38.2% for the same
period last year.  The decline in gross margin percentage
resulted primarily from lower sales in the global battery
business and increased raw material costs.

Operating income was US$49.0 million versus fiscal 2005's third
quarter operating income of US$69.0 million.

Third quarter interest expense was US$45.7 million versus
US$38.6 million last year due to increased debt levels from the
Tetra acquisition and higher interest rates.  Total debt at July
2, 2006 was US$2.283 billion.

Corporate expenses were US$27.6 million, compared to US$22.1
million in the prior year period.  Expansion of the global
operations support infrastructure and increased professional
fees accounted for the majority of the increase.

                          *     *     *

Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in
120 countries around the world.

                           *     *     *

As reported in the Troubled Company Reporter on June 15, 2006,
Standard & Poor's Ratings Services affirmed its ratings on
Spectrum Brands Inc., including the 'B-' corporate credit
rating.

At the same time, the ratings were removed from CreditWatch,
where they were placed with negative implications April 6, 2006,
following the Company's substantially lowered earnings guidance
for the second quarter.  The rating outlook is negative.

As reported in the Troubled Company Reporter on June 13, 2006,
Moody's Investors Service downgraded all ratings of Spectrum
Brands, Inc.  The outlook for the ratings is stable.  The action
concluded the review for downgrade that was initiated on
April 7, 2006.  Ratings downgraded include Corporate family
rating to B3 from B2; $300 million senior secured revolving
credit facilities to B2 from B1; $1.2 billion senior secured
term loan facilities to B2 from B1; $700 million senior
subordinated notes due 2015 to Caa2 from Caa1, and $350 million
senior subordinated notes due 2013 to Caa2 from Caa1.


THIA KOK: Creditors Proofs' of Debt Due on September 30
-------------------------------------------------------
Liquidator Wee Hui Pheng required the creditors of Thia Kok Wah
Marine Pte Ltd to submit their proofs of debt by September 30,
2006.

Failure to comply with the requirement will exclude the creditor
from sharing in the company's distribution of dividend.

The Liquidator can be reached at:

         Wee Hui Pheng
         Wee Seng Tiong & Co.
         1 Coleman Street #06-10
         The Adelphi
         Singapore 179803


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

KASIKORNBANK: Fitch Affirms Individual Rating at C
--------------------------------------------------
Fitch Ratings affirmed on September 4, 2006, Kasikornbank Public
Company Limited's:

   -- Foreign currency Issuer Default rating at 'BBB+' with a
      Stable Outlook,

   -- Short-term foreign currency rating at 'F2';

   -- Individual rating at 'C'; and

   -- Support rating at '2'.

Its foreign currency subordinated debt is affirmed at 'BBB'.  At
the same time, Fitch Ratings (Thailand) has affirmed KBANK's
National ratings at Long-term 'AA(tha)' with a Stable Outlook,
Short-term 'F1+(tha)' and its subordinated debt at 'AA-(tha)'.

The IDR and the Short-term and Individual ratings reflect the
sustained improvement in the bank's underlying profitability,
asset quality and capital and its strong domestic banking
franchise in middle market, corporate and retail banking, as
well as its good management track record.

The Support rating factors in a high probability of government
support due to its systemic importance.  KBANK's ratings are
currently capped by the sovereign rating 'BBB+'.  Further
improvement in its ratings would also require a further
significant decline in impaired and restructured loans, as well
as structural improvements in the Thai economy and banking
system, including the regulatory and legal framework.

In 2005, KBANK continued to reform its organization and business
lines, as well as strengthen its risk management system with an
aim at effectively providing full range of financial services to
its customers.  In 2006, it specifically launched projects to
enhance customer database, sales, services and IT platform, as
well as strengthen its distribution channels.

KBANK reported a net profit of THB14 billion in 2005, down from
THB15.4 billion in 2004, due to increased tax expenses.
However, its underlying performance remained strong, with pre-
tax profit rising to THB18 billion from THB15.5 billion.  In
H106, KBANK's net income fell to THB7.2 billion from
THB7.7 billion in H105, due to higher provisions and rising
operating expenses as a result of investments in ongoing reform
projects.

Nonetheless, KBANK's pre-provisioning profit continued to
improve by 10% in H106, due to loan growth, rising loan yields
and improved fee income.  Its net interest margin rose to 4.1%
on an annualized basis in H106 from 3.7% in 2005.

KBANK's impaired loans fell to 8.7% of gross loans at end-June
2006 from 9.1% at end-2005.  Loan loss reserves also declined to
THB36.1 billion due to write-offs, equating to about 65.8% of
the remaining impaired loans. Its net impaired loans/equity
ratio fell to 23.1% at end-June 2006 from 26% at end-2005.

At end-June 2006 the bank's Tier 1 capital stood at 10.5% of
total risk-weighted assets, while total capital stood at 15.6%,
which appears relatively strong.  Capital should remain strong
on the back of solid earnings, offsetting the impact of dividend
and asset growth.

                          *     *     *

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.

On August 30, 2006, the Troubled Company Reporter - Asia Pacific
reported that Moody's Investors Service upgraded KBANK's
financial strength rating to D+ from D.


TOTAL ACCESS: S&P Affirms BB+ Long Term Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services announced on September 4,
2006, that it affirmed its 'BB+' long-term corporate credit
ratings on Total Access Communication Public Co. Ltd.,
Thailand's second-largest cellular operator.  The outlook is
stable.

"The rating on TAC factors in established customer base,
extensive nationwide network coverage, as well as Telenor ASA's
ownership and management participation," said Standard & Poor's
credit analyst Cheow Hon Lee.

"Nevertheless, the rating is constrained by a highly competitive
environment, regulatory uncertainties, and tighter liquidity
after refinancing of U.S. dollar bond."

TAC's near-term liquidity is adequate.  As of June 30, 2006, it
had cash balance of about THB3 billion or US$80 million and
THB7.8 billion of undrawn committed credit facilities, compared
with THB15.0 billion of short-term debt.  The remaining
THB4.2 billion is expected to be met by proceeds from a
THB6 billion bond issue done this month.

"The stable outlook is based on the expectation that TAC will
maintain its competitive market position and continue to focus
on its deleveraging program," said Mr. Lee.

The rating may be negatively affected if issues such as
concession conversion and the interconnection regime have a
significant adverse impact on TAC's financial profile or if
there is substantial deviation from its deleveraging program of
achieving debt to EBITDA of 2x in the near to medium term.

Conversely, the rating may be positively affected if TAC can
achieve a sustainable debt to EBITDA of 1.5x and funds from
operations to debt of 40%, as well as maintain positive free
cash flow, accompanied with further improvement in liquidity and
business risk profile.


* BOND PRICING: For the Week 4 September to 8 September 2006
------------------------------------------------------------

Issuer                               Coupon     Maturity  Price
------                               ------     --------  -----

AUSTRALIA & NEW ZEALAND
-----------------------
Ainsworth Game                        8.000%    12/31/09     1
APN News & Media Ltd                  7.250%    10/31/08     5
A&R Whitcoulls Group                  9.500%    12/15/10     8
Arrow Energy NL                      10.000%    03/31/08     1
Babcock & Brown Pty Ltd               8.500%    12/31/49     8
Becton Property Group                 9.500%    06/30/10     1
BIL Finance Ltd                       8.000%    10/15/07     9
Capital Properties NZ Ltd             8.500%    04/15/07     8
Capital Properties NZ Ltd             8.500%    04/15/09     7
Capital Properties NZ Ltd             8.000%    04/15/10     8
Cardno Limited                        9.000%    06/30/08     4
CBH Resources                         9.500%    12/16/09     1
Chrome Corporation Ltd               10.000%    02/28/08     1
Clean Seas Tuna Ltd                   9.000%    09/30/08     1
Djerriwarrh Investments Ltd           6.500%    09/30/09     4
EBet Limited                         10.000%    11/29/06    24
Evans & Tate Ltd                      8.250%    10/29/07     1
Fletcher Building Ltd                 7.900%    10/31/06     8
Fletcher Building Ltd                 8.300%    10/31/06     8
Fletcher Building Ltd                 8.600%    03/15/08     7
Fletcher Building Ltd                 7.800%    03/15/09     8
Fletcher Building Ltd                 8.850%    03/15/10     7
Fletcher Building Ltd                 7.550%    03/15/11     7
Fernz Corp Ltd                        8.560%    10/15/06     9
Futuris Corporation Ltd               7.000%    12/31/07     2
Hy-Fi Securities Ltd                  7.000%    08/15/08     8
Hy-Fi Securities Ltd                  8.750%    08/15/08    11
Hutchison Telecoms Australia          5.500%    07/12/07     1
IMF Australia Ltd                    11.500%    06/30/10     1
Infrastructure & Utilities NZ Ltd     8.500%    09/15/13     8
Infratil Ltd                          8.500%    11/15/15     8
Kagara Zinc Ltd                       9.750%    05/06/07     6
Kiwi Income Properties Ltd            8.000%    06/30/10     1
Minerals Corporation Ltd             10.500%    09/30/07     1
Nuplex Industries Ltd                 9.300%    09/15/07     8
Pacific Print Group Ltd              10.250%    10/15/09    11
Primelife Corporation                 9.500%    12/08/06     1
Primelife Corporation                10.000%    01/31/08     1
Salomon SB Australia                  4.250%    02/01/09     8
Sapphire Securities Ltd               7.410%    09/20/35     7
Sapphire Securities Ltd               9.160%    09/20/35     9
Silver Chef Ltd                      10.000%    08/31/08     1
Software of Excellence                7.000%    08/09/07     1
Speirs Group Ltd.                    10.000%    06/30/49    50
Tower Finance Ltd                     8.750%    10/15/07     8
Tower Finance Ltd                     8.650%    10/15/09     8
TrustPower Ltd                        8.300%    09/15/07     8
TrustPower Ltd                        8.300%    12/15/08     7
TrustPower Ltd                        8.500%    09/15/12     8
TrustPower Ltd                        8.500%    03/15/14     8
Vision Systems Ltd                    9.000%    12/15/08     2

HONGKONG
--------
City Telecom HK Ltd.                  8.750%    02/01/15    73

KOREA
-----
Korea Electric Power                  7.950%    04/01/96    55

MALAYSIA
--------
Aliran Ihsan Resources Bhd            5.000%    11/29/11     1
AHB Holdings Bhd                      5.500%    03/06/07     1
Asian Pac Bhd                         4.000%    12/21/07     1
Berjaya Land Bhd                      5.000%    12/30/09     1
Bumiputra-Commerce                    2.500%    07/17/08     1
Camerlin Group Bhd                    5.500%    07/15/07     1
Crescendo Corporation Bhd             3.000%    08/25/07     1
Eastern & Oriental Hotel              8.000%    07/25/11     1
Eden Enterprises (M) Bhd              2.500%    12/02/07     1
EG Industries Bhd                     5.000%    06/16/10     1
Equine Capital Bhd                    3.000%    08/26/08     1
Fountain View Development Sdn Bhd     3.500%    11/03/06     1
Greatpac Holdings Bhd                 2.000%    12/11/08     1
Gula Perak Bhd                        6.000%    04/23/08     1
Hong Leong Industries Bhd             4.000%    06/28/07     1
Huat Lai Resources Bhd                5.000%    03/28/10     1
I-Berhad                              5.000%    04/30/07     1
Insas Bhd                             8.000%    04/19/09     1
Kamdar Group Bhd                      3.000%    11/09/09     1
Kosmo Technology Industrial Bhd       2.000%    06/23/08     1
Kretam Holdings Bhd                   1.000%    08/10/10     1
Kumpulan Jetson                       5.000%    11/27/12     1
LBS Bina Group Bhd                    4.000%    12/29/06     1
LBS Bina Group Bhd                    4.000%    12/31/07     1
LBS Bina Group Bhd                    4.000%    12/31/08     1
LBS Bina Group Bhd                    4.000%    12/31/09     1
Lion Diversified Holdings Bhd         2.000%    06/01/09     2
Media Prima Bhd                       2.000%    07/18/08     1
Mithril Bhd                           8.000%    04/05/09     1
Mithril Bhd                           3.000%    04/05/12     1
Mutiara Goodyear Development Bhd      2.500%    01/15/07     1
Nam Fatt Corporation Bhd              2.000%    06/24/11     1
Pantai Holdings Bhd                   5.000%    07/31/07     2
Pelikan International Corp Bhd        3.000%    04/08/10     1
Poh Kong Holdings Bhd                 3.000%    01/20/07     1
Prinsiptek Corporation Bhd            3.000%    11/20/06     2
Puncak Niaga Holdings Bhd             2.500%    11/18/16     1
Ramunia Holdings                      1.000%    12/20/07     1
Rashid Hussain Bhd                    3.000%    12/23/12     1
Rashid Hussain Bhd                    0.500%    12/24/12     1
Rhythm Consolidated Bhd               5.000%    12/17/08     1
Silver Bird Group Bhd                 1.000%    02/15/09     1
Southern Steel                        5.500%    07/31/08     1
Tanah Emas Corporation Bhd            2.000%    12/09/06     1
Tenaga Nasional Bhd                   3.050%    05/10/09     1
Titisan Modal Sdn Bhd.                4.000%    04/28/14    73
Titisan Modal Sdn Bhd.                5.000%    04/28/20    74
Tradewinds Plantations Bhd            3.000%    02/28/16     1
WCT Land Bhd                          3.000%    08/02/09     1
Wah Seong Corp                        3.000%    05/21/12     3
YTL Cement Bhd                        4.000%    11/10/15     1

SINGAPORE
---------
Sengkang Mall                         8.000%    11/20/12     1
Structural System Singapore          11.000%    06/30/07     1
Tincel Ltd                            7.400%    06/13/11     1


                            *********

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 ***