TCRAP_Public/060906.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

          Wednesday, September 6, 2006, Vol. 9, No. 177

                            Headlines

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

A.G. CHAPMAN: Supreme Court Issues Wind-Up Order
ABORIGINAL AIR SERVICES: Under Voluntary Administration
ADC (AUSTRALIA): To Declare First and Final Dividend on Sept. 15
ADVANCE HOME: Receivers and Managers Cease to Act
ALCATEL SA: Provides Ethernet VPLS Service to Nextgen Networks

ALL PURPOSE: Members and Creditors to Receive Wind-Up Order
ALLSTATE EXPLORATIONS: Beaconsfield Mine May Reopen, Report Says
AMORE TRATTORIA: Appoints Official Liquidator
APPLIED MATERIALS: Enters Wind-Up Proceedings
AQUIFER SPRING: Faces Liquidation Proceedings

ARCTIC AIR: Members Opt for Voluntary Wind-Up
CARTER HOLT: Global Forest Partners LP Applies for Clearance
CREDIT SUISSE: To Declare Final Dividend on September 26
DARRIN TRANSPORT: Supreme Court Orders Wind-Up
DONELLE ENTERPRISES: Members Decide to Wind Up Operations

DYNAMIC CONTROL: Set to Declare Final Dividend on October 11
F & A ROUMANOS: Members Agree on Voluntary Liquidation
FELTEX CARPETS: Clarifies Returns of IPO Offering to Directors
FELTEX CARPETS: Expects Debt to Increase to NZ$143 Million
FELTEX CARPETS: Godfrey Hirst Withdraws from Sales Process

GLEN THORNE: Commences Wind-Up Proceedings
GLOBAL WEALTH: Members and Creditors to Wind Up Firm
GOODMAN PROPERTIES: Creditors Must Prove Debts by September 15
KIWI DESIGN: Court Hears Liquidation Bid
LEIGHOAK LTD: Members Resolve to Voluntarily Liquidate Firm

LOTOSLAND (AUST): Members Decide to Close Operations
MARCHESI HOLDINGS: Members to Receive Wind-Up Report
MARAETAI HOLDINGS: Court to Hear CIR's Liquidation Bid Sept. 7
MARKET DYNAMICS: Hearing of Liquidation Bid Slated for Sept.7
MAYSTRO PTY: Placed Under Members' Voluntary Wind-Up

MEDISMART TECHNOLOGIES: Liquidator to Present Wind-Up Report
MIGLIORE PTY: Supreme Court Issues Wind-Up Order
N ENTERPRISES: Liquidation Process Commenced
NEOINVENT PTY: Appoints Receivers and Managers
PLANNING S.E.Q.: Undergoes Voluntary Liquidation

POWER BEAM: Creditors Proofs of Debt Due on September 27
REDWOOD GROUP: Shareholders Opt for Voluntary Liquidation
RISIN MEATS: Members Resolve to Wind Up Operations
S & A COLEMAN: Creditors Appoint Official Liquidators
SATILUX PTY: Members Pass Resolution to Wind Up Firm

SHEDS & BUILDINGS: Court Hears CIR's Liquidation Bid
STATELINE SHEDS: Final Meeting Slated for September 29
TRAVALLEY MOTORS: Members Pass Resolution to Wind Up Firm
TOWNSVILLE CUSTOM: To Declare Dividend on September 19
U108 PTY LTD: Receivers and Managers Cease to Act

VAN ZEIST: Placed Under Members' Voluntary Wind-Up
* S&P Report Further Dips NZ Dollar, Reuters Says
* Queensland Insolvencies on the Rise Due to Petrol Price Hike


C H I N A   &   H O N G  K O N G

AGILE PROPERTY: S&P Assigns BB Long Term Corp. Credit Rating
AGILE SOFTWARE: Final Members' Meeting Set on Sept. 29
ALLIED ELEGANT: Liquidators to Present Wind-Up Report
CHINA MERCHANTS: Fitch Affirms Individual D Rating
CHINA MINSHENG: Fitch Keeps Individual D/E Rating

COLORFUL PLASTIC: To Receive Claims Until September 25
EMA DESIGN: Wind-Up Bid Hearing Slated for Oct. 11
EXCELROY LIMITED: Faces Wind-Up Proceedings
FUHWA BANK: Fitch Downgrades Individual Rating to D
HO KWAN: Members to Receive Wind-Up Report

HUA XIA BANK: Fitch Keeps Individual D/E and Support 4 Ratings
IAC BANK: Fitch Maintains Individual Rating at C
IPCO CONSTRUCTORS: Creditors Must Prove Debts by Sept. 25
NUCLEAR CONSTRUCTION: Creditors' Proofs of Claim Due on Sept. 25
ONCYCLE ESTATES: Members' Final Meeting Fixed on Sept. 29

OVERSEAS TRADING: Liquidators' Ma and Lee to Present Report
POLYLION LIMITED: Court Issues Wind-Up Order
SHARP UNION: Court to Hear Wind-Up Bid Today
STANLEY FORCE: Court to Hear Wind-Up Petition on Sept. 20
TIAN AN: Members Opt for Voluntary Wind-Up

WATERY OCEAN: Court Favors Wind-Up
* Taiwan Banks Operating in Tough Times, Fitch Says


I N D I A

FORD MOTOR: May Sell Aston Martin Sports Car Unit to Raise Fund
GMAC LLC: S&P May Up Ratings After 51% Ownership Interest Sale
NETGURU INC: To Sell Indian Operations & Merge with BPOMS
SILICON GRAPHICS: Wants Lease-Decision Period Extended to Dec. 4
SILICON GRAPHICS: Wants Until Dec. 29 to File Chapter 11 Plan

* JCR Revises Outlook on BBB Currency Ratings to Positive


I N D O N E S I A

CORUS GROUP: Posts GBP82-Mln Net Profit for Second Quarter 2006
CORUS GROUP: Deutsche Bank AG Acquires 3.02% Equity Stake


J A P A N

DAIEI INC: Mulls Sale of 39 Outlets to Trim Debt
DAIEI INC: Marubeni Wants Sale of OMC Card Stake
DURA AUTOMOTIVE: Poor Performance Prompts S&P to Junk Rating
DURA AUTOMOTIVE: Incurs US$131 Mil. Net Loss in Second Quarter
JAPAN AIRLINES: Adverse Earnings Condition Hampers Rehab Efforts


K O R E A

CLOROX COMPANY: Equity Deficit Down to US$156 Million at June 30
CLOROX CO: Appoints Don Knauss as Chairman and CEO
DURA AUTOMOTIVE: Poor Performance Prompts S&P to Junk Rating
DURA AUTOMOTIVE: Shortfall Cues Moody's to Junk Ratings
DURA AUTOMOTIVE: Hires Miller Buckfire as Restructuring Advisor

DURA AUTOMOTIVE: Incurs US$131.3 Million Net Loss in Q2
DURA AUTOMOTIVE: Closes Stratford Plant & Lays Off 280 Workers
INTERSERVE: Suspends Senior Staff Over Accounting Irregularities
PHOTRONICS INC: Earns US$4.6 Million in Quarter Ended July 30
WARNACO GROUP: S&P Affirms BB- Corporate Credit Rating

WARNACO GROUP: Barington Group Acquires 5.6% of Common Stock
WARNACO GROUP: Restating 2005 Reports Due to Accounting Errors
WARNACO: Net Revenues Up 20.5% to US$451.6M in Second Quarter


M A L A Y S I A

ANTAH HOLDINGS: June 30 Balance Sheet Shows Insolvency
BUKIT KATIL: Updates on Financial Regularization Plan
FEDERAL FURNITURE: SC Grants Exemption from Mandatory Offer
MULTI-USAGE HOLDINGS: Loss Drops to MYR220,000 in 2nd Quarter
MULTI VEST: Fourth Quarter Net Loss Narrows to MYR3 Million

PROTON HOLDINGS: Rules Out Talks on Sale of Indonesian Plant
SATERAS RESOURCES: Books Higher Loss, Lower Turnover in 1Q/FY06
TALAM CORPORATION: Bourse Suspends Shares Over Wind-Up Action


P H I L I P P I N E S

ATLAS CONSOLIDATED: Berong Nickel Proj. to Start Trial Shipment
DEVELOPMENT BANK: Ready to Support Various Projects in Iloilo
DEVELOPMENT BANK: Extends PHP10-Mln Credit to Laguna Rural Bank
DEVELOPMENT BANK: Increases Ventureslink Funding to PHP30 Mln
* Philippine Economy Continues to Gain Strength Despite Odds

* Philippine Peso Purchasing Power Still Strong in East Visayas


S I N G A P O R E

ARCHITECTS GROUP: To Pay First and Final Dividend on September 8
AXS-ONE INC: June 30 Balance Sheet Upside-Down by US$7.08 Mil.
DAILY EXPRESS: Faces Wind-Up Proceedings
FERB PTE: Creditors Must File Proofs of Debt by September 14
LEAR CORP: Incurs US$6.4 Million Net Loss in 2006 Second Quarter

MICRO COMPONENT: July 1 Balance Sheet Upside-Down by US$7 Mil.
REFCO INC: BofA Wants Final Approval on Cash Collateral Use
REFCO INC: Hires UHY Advisors as Tax Consultants
SMH SYSTEMS: Court to Hear Wind-Up Petition on September 8


T H A I L A N D

G STEEL: Moody's Reviews B1 Ratings for Possible Downgrade
* Thailand Ratings Unaffected by Political Turmoil


* Upcoming Meetings, Conferences and Seminars

     - - - - - - - -

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


A.G. CHAPMAN: Supreme Court Issues Wind-Up Order
------------------------------------------------
The Supreme Court of New South Wales issued on August 17, 2006,
an order to wind up A.G. Chapman Pty Ltd and appoint Steven
Nicols as liquidator.

The Liquidator can be reached at:

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


ABORIGINAL AIR SERVICES: Under Voluntary Administration
-------------------------------------------------------
The board of directors of Aboriginal Air Services voted to bring
in an administrator, The Australian reports.

According to the report, Aboriginal Air, which has four
propeller aircraft, has never made a profit in its 20-year
history and has been propped up by its shareholders -- four
Aboriginal groups from central Australia -- with large
management fees.

While Aboriginal Air general manager Anthony Sandford said it is
"business as usual," he added "there is a risk that services
will be downsized or reduced in frequency," The Australian says.

ABC News Online relates that the company has decided to scale
back operations from its 29 flights each week, many of which are
not economically viable outside the dry season tourist peaks.

Agence France-Presse cites the company's administrator, Austin
Taylor, of Meertons Administrators in Darwin, as saying that the
business had a turnover of about AU$3 million a year, employed
35 staff and operated nine aircraft on about 29 flights a week.

Mr. Taylor says the airline's priority is to stave off
insolvency.

"The background and how it got to become insolvent is something
that we're looking at, but certainly one of its contributing
factors is the withdrawal of one of its major participants, NG
Air, who, when they withdrew, took with them a significant
number of flying hours," Mr. Taylor notes.

According to AFP, Mr. Taylor said they are currently assessing
the options for the company, including a sale of the business as
a going concern.  "Some air services may be affected while these
various options are being considered," Mr. Taylor noted.

The affected air companies are Ngaanyatjarra Air, Ngurratjuta
Air, PY Air and Janami Air, AFP notes.

The Australian reveals that Mr. Sandford called on the
governments of the Northern Territory, Western Australia, and
South Australia to subsidize the Aboriginal services by
AU$2.2 million a year.

                       Staff Redundancies

According to The Australian, Mr. Taylor is understood to have
told a meeting of AAS staff at Alice Springs that 32 of them
would be made redundant, including 16 pilots.

However, Mr. Sandford said that the reported number of
redundancies was exaggerated, the paper says.

ABC News reports that Aboriginal Air shed almost 30 staff after
going into voluntary administration.

Yet Mr. Taylor noted that the company will continue to use the
pilots it has made redundant, adding that the communities using
the company's services will now have to pay for them on a
charter basis, ABC News relates.

Mr. Taylor stated that all the areas are still being serviced
but within a different structure.  He explained that if an
aircraft needs to be chartered or if one of the communities
wants to charter to go somewhere, an AAS pilot will be
contracted in to fly.

"So rather than the pilots being on the payroll permanently, as
it were, they are now being contracted in to do contract
flying," Mr. Taylor further explained.

Aboriginal Air flew to destinations in the Northern Territory,
South Australia, and Western Australia, ABC News notes.

                      About Aboriginal Air

Aboriginal Air Services -- http://www.aboriginalair.com.au/--  
is a corporation, which runs four air companies:

   1. Ngaanyatjarra Air servicing the Western communities
      through to Kalgoorlie;

   2. Ngurratjuta Air operating North and West of Alice Springs;

   3. PY Air is supplying communities in the northern part of
      South Australia; and

   4. Janami Air, the RPT route to Katherine Via communities

Aboriginal Air Services also has its own maintenance arm,
Aboriginal Aircraft Maintenance Services.

The Air and Maintenance companies are owned and controlled by
Aboriginal Corporations.
  

ADC (AUSTRALIA): To Declare First and Final Dividend on Sept. 15
----------------------------------------------------------------
ADC (Australia) Technique Pty Limited will declare its first and
final dividend on September 15, 2006.

Failure to file proofs of debts by September 12, 2006, will
exclude a creditor from sharing in the dividend distribution.

The joint and several liquidators can be reached at:

         David J. F. Lombe
         Peter G. Yates
         Deloitte Touche Tohmatsu
         Grosvenor Place, 225 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9322 7000


ADVANCE HOME: Receivers and Managers Cease to Act
-------------------------------------------------
Neil Singleton and Alan Hayes ceased to act as receivers and
managers of Advance Home Loan Centre Pty Limited on August 10,
2006.

Mr. Singleton and Mr. Hayes can be reached at:

         Neil Singleton
         Alan Hayes
         Partner
         SimsPartners
         Level 24, Australia Square
         264 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9241 3422
         Facsimile:(02) 9241 3922


ALCATEL SA: Provides Ethernet VPLS Service to Nextgen Networks
--------------------------------------------------------------
Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) has been selected by
Nextgen Networks, a specialist provider of high performance data
services, to provide Australia's first national Ethernet VPLS
(Virtual Private LAN Service) network, which will offer
Australian businesses the benefits of advanced virtual private
network (VPN) technology.

The Alcatel-based VPLS network allows businesses to operate
quality-controlled voice, video and data services across an
IP/MPLS-based infrastructure.

Customer benefits of Nextgen's VPLS service include:

   -- the flexibility of a single service at any location, with
      any-to-any connectivity in a national, secure, multipoint
      VPN (Virtual Private Network);

   -- support for the widest range of IT applications because
      the Layer 2 Ethernet VPN is protocol transparent to any
      Layer 3 IP application; customer control of how the
      network connects to a VPN and how the IP network layer is
      configured;

   -- support for real time and mission critical applications
      with packaged and standard offering of Quality of Service
      (QoS) profiles; and

   -- the lowest cost of ownership and operational simplicity
      with Ethernet connectivity and bundled pricing which is
      inclusive of most features.

The new network incorporates Alcatel's industry leading IP/MPLS-
based solutions, including the Alcatel 7750 Service Router,
across the seven capital cities of Australia, and setting a new
market standard for enabling the delivery of profitable national
Ethernet services and high-density aggregation over IP/MPLS-
based networks.

"Offering these new VPLS services demands an infrastructure that
is architected from the ground up with a focus on services and
not the traditional ports-based focus of previous generation
routers," said Peter Harrison, Nextgen Networks General Manager.  
"We are looking to the Alcatel equipment to support a service-
rich architecture, provide the highest levels of service
assurance, and enable rapid service introduction and innovation.

"Based on the Alcatel solution, we will be able to deliver a
range of services that provide improved features and control for
data network owners and operators," added Mr. Harrison. "With
our new national VPLS services, we are now entering the
corporate market with what we believe to be the most advanced
corporate data networking product in Australia.

"Moving to IP is an essential and inevitable step toward
ensuring that companies can be competitive," said Basil Alwan,
resident of Alcatel's IP activities. "VPLS is the first in a new
wave of Ethernet connectivity for businesses in Australia,
leading to significant cost savings, greater control of end-user
networks and increased levels of service and security."

Worldwide, the Alcatel IP portfolio has been selected by more
than 130 service providers in 55 countries, including AT&T, BT,
Telia Sonera, Telefonica and China Telecom. According to Synergy
Research Group, Alcatel is #2 in the Services Edge Router
category in Q1 2006, with 18% market share, following four
consecutive quarters of market share gain.

                         About Nextgen

Headquartered in Australia, Nextgen Networks --
http://www.nextgennetworks.com.au/-- provides of high quality  
data services for other carriers, service providers and
corporate and government customers.  Nextgen owns and operates
Australia's third largest long haul fibre network and a national
VPLS data-switching network.  Nextgen products include custom
fibre network builds, high capacity national data transmission
services, carrier grade co-location facilities and national
Layer 2 VPN services.

                         About Alcatel

Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and
NYSE: ALA) -- http://www.alcatel.com/-- provides communications   
solutions to telecommunication carriers, Internet service
providers and enterprises for delivery of voice, data and video
applications to their customers or employees.  Alcatel brings
its leading position in fixed and mobile broadband networks,
applications and services, to help its partners and customers
build a user-centric broadband world.  With sales of EUR13.1
billion and 58,000 employees in 2005, Alcatel operates in more
than 130 countries, including Australia, Japan, Korea,
Indonesia, Taiwan, the Philippines, Thailand, Singapore, and
Vietnam.

                          *     *     *

As reported in TCR-Europe on March 28, Standard & Poor's Ratings
Services placed its 'BB' long-term corporate credit rating on
France-based telecommunications equipment maker Alcatel on
CreditWatch with negative implications.


ALL PURPOSE: Members and Creditors to Receive Wind-Up Order
-----------------------------------------------------------
Members and creditors of All Purpose Contracting Pty Limited
will convene on September 25, 2006, at 10:00 a.m., to receive
Liquidator R. W. Whitton's report on the company's wind-up
proceedings and property disposal exercises.

The Liquidator can be reached at:

         R. W. Whitton
         c/o Lawler Partners
         Level 7, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 8346 6000


ALLSTATE EXPLORATIONS: Beaconsfield Mine May Reopen, Report Says
----------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
July 31, 2006, a rockfall killing a miner caused the closure of
Allstate Explorations NL's Beaconsfield Mine Joint Venture in
Beaconsfield, Tasmania.  The rockfall is subject to a coroner's
inquiry and a special investigation, the TCR-AP noted.

A subsequent TCR-AP report cited The Australian as noting that
the inquiry was expected to conclude its hearings in September,
but public disclosure of its findings is uncertain.  Lawyers for
Allstate and administrator Michael Ryan have encountered
resistance from the inquiry in seeking to have their own legal
representation.

In an update, a safety report on the Beaconsfield gold mine has
found that it could be reopened later this month, ABC News
Online relates.

The report states that independent consultant company Coffey
Geotechnics, which assessed Beaconsfield's mining methods and
safety measures found there is still a seismological risk.  But
Coffey noted that similar Canadian deep underground operations
are riskier, ABC News relates.

For a possible reopening of the mine, Coffey has recommended
improved mining practices and enhanced ground support, ABC News
says.

ABC News notes that Mr. Ryan will brief the Beaconsfield workers
on the findings as well as the Australian Stock Exchange.

However, for the mine to satisfy a safety case to reopen,
Coffey's report still needs to be reviewed by another
independent consultant and Workplace Standards Tasmania, ABC
News notes.

                         About Allstate

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

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

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


AMORE TRATTORIA: Appoints Official Liquidator
---------------------------------------------
Shareholders of Amore Trattoria Ltd passed a resolution on
June 8, 2006, to voluntary liquidate the company and appoint
Trevor Edwin Laing as liquidator.

Mr. Laing can be reached at:

         Trevor Laing
         Trevor Laing & Associates
         P.O. Box 2468, Dunedin
         New Zealand
         Telephone: (03) 454 4559


APPLIED MATERIALS: Enters Wind-Up Proceedings
---------------------------------------------
At a general meeting held on August 15, 2006, the members of
Applied Materials Handling Pty resolved to voluntarily wind up
the company's operations.

Leigh Dudman was appointed as liquidator at a creditors' meeting
held later that day.

The Liquidator can be reached at:

         Leigh Dudman
         B. K. Taylor & Co
         8/608 St Kilda Road
         Melbourne, Victoria 3004
         Australia


AQUIFER SPRING: Faces Liquidation Proceedings
---------------------------------------------
The High Court of Auckland will hear a liquidation petition
against Aquifer Spring Water Co Ltd on October 19, 2006, at
10:45 a.m.

Sunpi NZ Ltd filed the petition with the court on July 28, 2006.

The Plaintiff's Solicitor can be reached at:

         Malcolm Whitlock
         Debt Recovery Group NZ Limited
         149 Ti Rakau Drive, Pakuranga
         P.O. Box 259 059, Burswood
         Auckland, New Zealand


ARCTIC AIR: Members Opt for Voluntary Wind-Up
---------------------------------------------
Members of Arctic Air (Townsville) Pty Ltd met on August 14,
2006, and decided to voluntarily wind up the company's
operations.

Subsequently, Gerard John Mier and Anthony James Jonsson were
appointed as joint and several liquidators.

The Liquidators can be reached at:
         
         Gerard John Mier
    Anthony James Jonsson
         c/o KPMG Level 13
         Cairns Corporate Tower
         15 Lake Street
         Cairns, Queensland 4870
         Australia


CARTER HOLT: Global Forest Partners LP Applies for Clearance
------------------------------------------------------------
The Commerce Commission has received an application from CRBF, a
timber investment fund, and its advisers Global Forest Partners
LP, seeking clearance to acquire the shares and assets of a
number of Carter Holt Harvey Limited subsidiaries that hold
forestry assets.

The forestry assets include freehold property, non-freehold land
interests, standing timber on that land, plant and equipment,
business contracts, licenses and consents.  The forests and
other assets are located in Northland, the Central North Island,
and Nelson/Marlborough.

Global Forest is a U.S. registered investment adviser that
advises nine institutional timber investments globally.  In New
Zealand, Global Forest advises four investment funds that
between them, own forestry assets in the central North Island, a
50% share of a joint venture with Carter Holt in respect of the
Mangakahia Forest in Northland, and a 49% share of a joint
venture with Weyerhaeuser Company in respect of 63,000 hectares
of forest in the Nelson region.

In considering the application, the Commission's role is to
determine whether the acquisition would have the effect of
substantially lessening competition in a market.

A public version of the application will shortly be available on
the Commission's Web site http://www.comcom.govt.nz/under  
Public Registers.

                      About Global Forrest

Global Forest Partners LP is one of the oldest and largest
timber investment management organizations.  Its direct
predecessor, industry pioneer Resource Investments Inc., was
founded in 1982 and purchased by UBS in 1995.  Global Forrest is
the successor firm to RII and UBS Timber Investors, and was
formed via management buyout from UBS in September 2003.  GFP
currently manages a globally diverse US$1.5 billion portfolio of
closed-end commingled timberfunds and separate accounts on
behalf of institutional and other qualified investors.

                      About Carter Holt

On April 6, 2006, Moody's Investors Service withdrew the Ba1
senior unsecured ratings of Carter Holt Harvey Limited.  The
ratings have been withdrawn due to Moody's expectation that
adequate information will not be available to maintain the
ratings.

The ratings withdrawn were:

   * Carter Holt Harvey Limited US$150 million 9.50% senior
     debentures, due 2024 -- Ba1

   * Carter Holt Harvey Limited US$150 million 8.375% senior
     debentures, due 2015 -- Ba1

On March 23, 2006, Standard & Poor's Ratings Services lowered
its corporate credit and debt issue ratings on New Zealand's
Carter Holt Harvey Ltd. to 'B/Developing' from 'BB/Watch Neg',
and later withdrew the ratings following the Rank Group's
acquisition of more than 90% of CHH's ordinary shares.


CREDIT SUISSE: To Declare Final Dividend on September 26
--------------------------------------------------------
Credit Suisse First Boston Australia Discount Limited notifies
parties-in-interest of its intention to declare final dividend
on September 26, 2006.

Creditors who cannot prove their debts by September 20, 2006,
will be excluded from sharing in the dividend distribution.

The joint and several liquidators can be reached at:

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


DARRIN TRANSPORT: Supreme Court Orders Wind-Up
----------------------------------------------
The Supreme Court of New South Wales on August 17, 2006, issued
an order to wind up Darrin Transport Pty Limited and appoint
Steven Nicols as liquidator.

Mr. Nicols can be reached at:

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


DONELLE ENTERPRISES: Members Decide to Wind Up Operations
---------------------------------------------------------
Members of Donelle Enterprises Pty Ltd convened on August 17,
2006, and decided to close the company's operation.

Subsequently, Oren Zohar and Brian McMaster were appointed as
liquidators.

The Liquidators can be reached at:

         Oren Zohar
         Brian McMaster
         KordaMentha, Level 11
         37 St Georges Terrace
         Perth, Australia


DYNAMIC CONTROL: Set to Declare Final Dividend on October 11
------------------------------------------------------------
Dynamic Control Pty Limited will declare a final dividend on
October 11, 2006.

Creditors who were not able to prove their claims by
September 5, 2006, will be excluded from sharing in the
company's dividend distribution.

The liquidator can be reached at:

         John Park
         KordaMentha (Queensland)
         22 Market Street
         Brisbane, Queensland 4000
         Australia
         Telephone:(07) 3225 4000
         Facsimile:(07) 3225 4999


F & A ROUMANOS: Members Agree on Voluntary Liquidation
------------------------------------------------------
After a general meeting on September 29, 2006, the members of    
F & A Roumanos Investments Pty Limited decided to voluntarily
wind up the company's operations.

Accordingly, Arnold Stevens Finlay was named liquidator.

Mr. Finlay can be reached at:

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


FELTEX CARPETS: Clarifies Returns of IPO Offering to Directors
--------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 28, 2006, the Securities Commission cleared Feltex
Carpets Limited of prospectus irregularities.

The Commission has found no breaches of the securities laws in
the Prospectus.  Thus, there will be no further action to be
taken in regard to the matter, the TCR-AP said.

However, according to Feltex, several media commentators have
made statements concerning the returns to Directors from the
long-term equity incentive plan at the time of the Initial
Public Offering of Feltex Carpets Limited.

Accordingly, the company clarifies information regarding this
matter with respect to the present Directors of Feltex.

Feltex relates that it was disclosed in the Investment Statement
and Prospectus that the company's Directors and Senior Managers
were participants in a long-term equity incentive Plan, which
would be realized in the event of a trade sale or IPO of Feltex.
This Plan was not negotiated specifically for the IPO -- the
Plan had been agreed in 2002, Feltex says.

Feltex explains that at the time of the IPO, each Director made
an election as to how much net cash he would receive, and how
many shares he would hold, through exercising his entitlements
under the Plan.

Feltex provides this table:


                     Share    Shares    Net Cash   Percentage of
Director         Entitlement   Held     Received    Shares Held
--------         ----------- ------    ---------  -------------
Michael Feeney     369,134    221,481    $161,967       60.0%
David Hunter       369,134    221,481    $161,967       60.0%
Timothy Saunders   707,507    500,000    $196,955       70.7%
Peter Thomas       522,940    522,940           -      100.0%

The table shows the entitlement of each present Director to
shares under the Plan, the number of shares each Director
elected at the time of the IPO to hold, the net cash received by
each Director from the Plan, and the percentage that the number
of shares elected to be held represents of the share
entitlement.

Feltex further explains that the number of shares to which each
Director was entitled to was a fixed number of shares -- the
number did not vary according to the price obtained at the IPO.  
Each of these Directors still hold these shares, and each has
acquired shares post the IPO.

None of these Directors have sold any Feltex shares, Des Tolan,
Feltex Chief Financial Officer, says.

                          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: Expects Debt to Increase to NZ$143 Million
----------------------------------------------------------
Feltex Carpets Limited discloses that since reporting on the
level of its borrowings as at June 30, 2006 (being
NZ$128 million), some of the company's raw material suppliers
who were providing extended credit terms to Feltex have reduced
them.  In addition, a regular seasonal sales promotion with
selected retailers in Australia involved extended credit terms.

The current level of interest-bearing debt of Feltex stands at
NZ$135 million.  That level is expected to rise during the
remainder of the month with the position at the end of September
expected to be NZ$143 million.  This increase in debt is
reflected in higher working capital levels for the company.  ANZ
Bank has been monitoring and extending credit on a daily basis
in accordance with daily and weekly forecasts provided to it by
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.


FELTEX CARPETS: Godfrey Hirst Withdraws from Sales Process
----------------------------------------------------------
In a recent company release, Feltex Carpets Limited disclosed
that Godfrey Hirst has advised Feltex that, in all the
circumstances, it does not consider that its current proposal
has a reasonable prospect of success.  It is not interested in
getting involved in a bidding war for the assets of Feltex and
accordingly Godfrey Hirst will not be signing formal
documentation with Feltex on the current terms of the draft Sale
and Purchase Agreement.

Godfrey Hirst has further advised Feltex that it has not
formally withdrawn from the sales process and remains a willing
buyer of the business, but only in an environment, which is more
conducive to a successful sales process.  In those
circumstances, Godfrey Hirst would then consider the terms on
which it would be prepared to move forward.

Feltex relates that the current Godfrey Hirst proposal contains
a mechanism through which the purchase price to be paid to
Feltex is increased (or decreased) for increases (or decreases)
in Feltex's working capital position as at the settlement date.  
Godfrey Hirst and the other bidder, the Turners, have been kept
apprised of the forecast working capital movements throughout
the 'due diligence' period.

Feltex recounts that Godfrey Hirst advised the company it was
considering its position in relation to its further
participation in the sales process.

Craig and Graeme Turner have reconfirmed to Feltex that they
expect to present their full offer to the Feltex Board of
Directors on September 8, 2006.  The Bank had met with Craig
Turner to seek an update on their position.

                          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.


GLEN THORNE: Commences Wind-Up Proceedings
------------------------------------------
Members of Glen Thorne Pty Limited convened on August 15, 2006,
and decided to voluntarily wind up the company's operations.

The liquidator can be reached at:

         Andrew Stewart Reed Hewitt
         Grant Thornton Recovery (Victoria) Pty Ltd
         Rialto Towers, Level 35
         South Tower, 525 Collins Street
         Melbourne, Victoria 3000
         Australia


GLOBAL WEALTH: Members and Creditors to Wind Up Firm
----------------------------------------------------
Members and creditors of Global Wealth Synergies Pty Ltd will
convene on September 29, 2006, at 10:00 a.m.

During the meeting, Liquidator Blakeley will report on the
company's wind-up and property disposal exercises.

The Liquidator can be reached at:

         Ross a. Blakeley
         Taylor Woodings
         Chartered Accountants
         Suite 612, 530 Little Collins Street
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9909 7130
         Facsimile:(03) 9909 7134


GOODMAN PROPERTIES: Creditors Must Prove Debts by September 15
--------------------------------------------------------------
Creditors of Goodman Properties No 3 Ltd are required to submit
their proofs of claim to Joint and Several Liquidators Karen
Betty Mason and Jeffery Philip Meltzer by September 15, 2006.

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

The Joint Liquidators can be reached at:

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


KIWI DESIGN: Court Hears Liquidation Bid
----------------------------------------
A petition to liquidate Kiwi Design Call Center Services Ltd was
heard before the High Court of Christchurch on September 4,
2006.

The Commissioner of Inland Revenue filed the petition with the
Court on July 24, 2006.

The Plaintiff's Solicitor 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


LEIGHOAK LTD: Members Resolve to Voluntarily Liquidate Firm
-----------------------------------------------------------
After a general meeting held on August 17, 2006, the members of
Leighoak Limited decided to voluntarily liquidate the company's
business.

In this regard, Peter Goodin was appointed as liquidator.

The Liquidator can be reached at:

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


LOTOSLAND (AUST): Members Decide to Close Operations
----------------------------------------------------
The members of Lotosland (Aust) Pty Ltd held a general meeting
on August 15, 2006, and decided to close the company's
operations.

Subsequently, Gregory Stuart Andrews was appointed as
liquidator.

Mr. Andrews can be reached at:

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


MARCHESI HOLDINGS: Members to Receive Wind-Up Report
----------------------------------------------------
A final meeting of the members of Marchesi Holdings Pty Limited
will be held on September 28, 2006, at 10:00 a.m.

At the meeting, they will receive Liquidator Gaffney's final
accounts of how the Company was wound up and its property was
disposed of.

The Liquidator can be reached at:

         A. A. Gaffney
         RSM Bird Cameron
         Chartered Accountants
         8 St George's Terrace
         Perth, Western Australia 6000
         Australia
         Telephone:(08) 9261 9100


MARAETAI HOLDINGS: Court to Hear CIR's Liquidation Bid Sept. 7
--------------------------------------------------------------
A petition to liquidate Maraetai Holdings Ltd will be heard
before the High Court of Auckland on September 7, 2006, at 10:00
a.m.

The Commissioner of Inland Revenue filed the petition with the
court on June 19, 2006.

The Plaintiff's Solicitor can be reached at:

         S. J. Eisdell Moore
         Meredith Connell, Level 17
         Forsyth Barr Tower
         55-65 Shortland Street
         P.O. Box 2213 or D.X. C.P. 24-063
         Auckland, New Zealand
         Telephone: 09 336 7556


MARKET DYNAMICS: Hearing of Liquidation Bid Slated for Sept.7
-------------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
filed against Market Dynamics NZ Ltd on September 7, 2006, at
10:00 a.m.

Soar Printing Co Ltd filed the petition with the Court on June
8, 2006.

The Soar Printing's Solicitor can be reached at:

         J. F. Armstrong
         Armstrong Murray, Solicitors
         11 Anzac Street, P.O. Box 331-028
         D.X. B.P. 66-018), Takapuna
         Auckland, New Zealand
         Telephone: (09) 489 9102
         Facsimile: (09) 489 6934


MAYSTRO PTY: Placed Under Members' Voluntary Wind-Up
----------------------------------------------------
On August 18, 2006, the members of Maystro Pty Limited agreed to
voluntarily wind up the company's operations and appoint Richard
Albarran as liquidator.

The Liquidator can be reached at:

         Richard Albarran
         c/o Hall Chadwick
         Level 29, 31 Market Street
         Sydney, New South Wales 2000
         Australia


MEDISMART TECHNOLOGIES: Liquidator to Present Wind-Up Report
------------------------------------------------------------
Members of Medismart Technologies Pty Limited will hold a final
meeting on September 29, 2006, at 10:00 a.m., to receive the
liquidators' report on the company's wind-up and property
disposal exercises.

The Liquidator can be reached at:

         Murray C. Smith
         McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney New South Wales 2000
         Australia
         Telephone:(02) 9338 2601


MIGLIORE PTY: Supreme Court Issues Wind-Up Order
------------------------------------------------
On August 17, 2006, the Supreme Court of New South Wales ordered
the wind up of Migliore Pty Limited.

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


N ENTERPRISES: Liquidation Process Commenced
--------------------------------------------
N Enterprises Ltd commenced its liquidation on August 7, 2006,
with the appointment of Grant Bruce Reynolds as Liquidator.

Mr. Reynolds requires the creditors to prove their debts by
September 30, 2006.

The Liquidator can be reached at:

         G. B. Reynolds
         Reynolds & Associates Limited
         Insolvency Practitioners
         P.O. Box 259-059, Burswood, East Tamaki
         Auckland, New Zealand
         Telephone: (09) 577 0162
         Facsimile: (09) 577 0243


NEOINVENT PTY: Appoints Receivers and Managers
----------------------------------------------
On August 17, 2006, Ozem Kassem & Deryk Andrew were appointed as
receivers and managers of Neoinvent Pty Limited.

The Receivers and Managers can be reached at:

         Ozem Kassem
         Deryk Andrew        
         Cor Cordis Chartered Accountants
         Level 8, 50 Carrington Street,
         Sydney
         Australia


PLANNING S.E.Q.: Undergoes Voluntary Liquidation
------------------------------------------------
On August 17, 2006, the members of Planning S.E.Q. Pty Limited
met and agreed to voluntarily wind up the company's operations.

In this regard, Robert Eugene Murphy and David James Hambleton
were appointed as joint and several liquidators.

The joint and several liquidators can be reached at:

         Robert Eugene Murphy
         David James Hambleton
         Chartered Accountants
         R.E. Murphy & Co
         Level 9, 46 Edward Street
         Brisbane, Queensland 4000
         Australia


POWER BEAM: Creditors Proofs of Debt Due on September 27
--------------------------------------------------------
Power Beam Pty Limited will declare the first and final dividend
for its creditors on September 29, 2006.

To be included in the company's distribution of dividend,
creditors must submit proofs of debt by September 27, 2006.

The deed administrator can be reached at:

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


REDWOOD GROUP: Shareholders Opt for Voluntary Liquidation
---------------------------------------------------------
Shareholders of Redwood Group No. 6 Ltd resolved on July 26,
2006, to voluntary liquidate the company.

Subsequently, Nigel Milton was appointed liquidator.

The Liquidator can be reached at:

         Nigel Milton
         c/o Michael McNab
         BDO Spicers, P.O. Box 51-563
         Pakuranga, Auckland
         New Zealand
         Telephone: (09) 274 9340
         Facsimile: (09) 274 0863


RISIN MEATS: Members Resolve to Wind Up Operations
--------------------------------------------------
At a general meeting held on August 17, 2006, the members of
Risin Meats Pty Ltd passed a special resolution to voluntarily
wind up the company's operations.

The joint and several liquidators can be reached at:

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


S & A COLEMAN: Creditors Appoint Official Liquidators
-----------------------------------------------------
On August 17, 2006, creditors of S & A Coleman Pty Limited
decided to wind up the company's operations.

Accordingly, Daniel I. Cvitanovic was named as liquidator.

The Liquidator can be reached at:

         Daniel I. Cvitanovic
         Chartered Accountant
         Shop 5 Old Potato Shed
         74-76 Hoddle Street
         Robertson, New South Wales 2577
         Australia
         Telephone:(02) 4885 2500
         Facsimile:(02) 4885 2995


SATILUX PTY: Members Pass Resolution to Wind Up Firm
-----------------------------------------------------
At an extraordinary general meeting held on August 16, 2006, the
members of Satilux Pty. Limited passed a special resolution to
wind up the company's operations.

In this regard, David George Kettlestring was appointed as
liquidator.

The Liquidator can be reached at:

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


SHEDS & BUILDINGS: Court Hears CIR's Liquidation Bid
----------------------------------------------------
The High Court of Christchurch heard a petition filed against
Sheds & Buildings Ltd on September 4, 2006.

The Commissioner of Inland Revenue filed the petition with the
Court on July 11, 2006.

The Commissioner's Solicitor 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


STATELINE SHEDS: Final Meeting Slated for September 29
------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
January 2, 2006, members of Stateline Sheds & Fencing Pty
Limited resolved to voluntarily wind up the company.

Accordingly, Messrs. Brett Harrison and Paul Cook of Paul Cook &  
Associates were appointed as Joint and Several Liquidators.

In an update, a final meeting will be held for company's members
and creditors on September 29, 2006, at 12:00 p.m.

During the meeting, Mr. Harrison will show the manner in which
the company's wind-up has been conducted and the property of the
company disposed of.

The Joint and Several Liquidator can be reached at:

         Brett Harrison
         Paul Cook & Associates
         105 Macquarie Street
         Hobart Tasmania 7000
         Australia
         Telephone:(03) 6223 2555
         Facsimile:(03) 6223 2556
         e-mail: info@pjc.com.au


TRAVALLEY MOTORS: Members Pass Resolution to Wind Up Firm
---------------------------------------------------------
At a general meeting held on August 18, 2006, the members of
Travalley Motors Pty Limited passed a special resolution to
voluntarily wind up the company's operations.

Accordingly, Ronald Leslie Male was appointed as liquidator.

The Liquidator can be reached at:

         Ronald Leslie Male
         220 Chesterville Road
         Moorabbin, Victoria 3189
         Australia


TOWNSVILLE CUSTOM: To Declare Dividend on September 19
------------------------------------------------------
Townsville Custom Computer Furniture Pty Limited will declare
its first and final dividend for creditors on October 11 2006.  
Creditors who are unable to prove their claims by September 19,
2006, will be excluded from the distribution.

The liquidator can be reached at:

         Richard William Buckby
         KordaMentha (Qld)
         Level 1, 150 Walker Street
         Townsville, Queensland 4810
         Australia
         Telephone:(07) 4724 5455
         Facsimile:(07) 4724 5405


U108 PTY LTD: Receivers and Managers Cease to Act
--------------------------------------------------
Peter McKenzie Anderson and Murray Campbell Smith ceased to act
as receivers and managers of U108 Pty Limited on August 9, 2006.

The former Receivers and Managers can be reached at:

         Peter McKenzie Anderson
         Murray Campbell Smith
         McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia
         Web site: http://www.mcgrathnicol.com


VAN ZEIST: Placed Under Members' Voluntary Wind-Up
---------------------------------------------------
On August 18, 2006, the members of Van Zeist Holdings Pty
Limited decided to voluntarily wind up the company's operations.

Accordingly, B.J. Marchesi was appointed liquidator.

The Liquidator can be reached at:

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


* S&P Report Further Dips NZ Dollar, Reuters Says
-------------------------------------------------
Profit taking and a Standard & Poor's report pulled down the New
Zealand dollar to nearly 1% on September 5, 2006, Reuters
reports, noting that the S&P report said the country's current
account deficit was weighing on its sovereign rating.

Reuters says the NZ Dollar was sent lower in the offshore
session as investors sold it against the Australian Dollar and
Japanese Yen.  The S&P report further dipped the NZ Dollar,
Reuters adds.

According to Reuters, analysts saw any rebound as difficult.

Reuters relates that S&P's latest Asia-Pacific "Sovereign Report
Card" repeated past comments that New Zealand's current account
deficit was weighing on the country's AA+ sovereign rating, but
the risks were offset by the government's fiscal policy.

"The government's solid fiscal profile, and use of adequate
hedging practices, sufficiently offset the risks in its external
position," Reuter cites S&P, as saying.

S&P noted that it was not unduly concerned about the government
moving into a cash deficit because the money was being spent on
capital projects and also the government's overall low level of
debt, Reuter relates.

According to Reuters, figures showing world prices for New
Zealand commodities rising 0.4% in August, and a revision upward
of near-term economic forecasts by the NZ Institute of Economic
Research, had no impact.

Reuters cites ANZ-National Bank senior dealer and technical
analyst Mark Elliott, as saying that NZ Dollar remained over-
extended and vulnerable to a substantial retracement towards the
NZ$0.6280 area.


* Queensland Insolvencies on the Rise Due to Petrol Price Hike
--------------------------------------------------------------
Business might be booming but insolvency experts detect a slight
change in the wind, Tony Raggatt of the Townsville Bulletin
reports, noting that one of the reasons is petrol prices.

The report cites registered liquidator at Townsville, Moira
Carter, of Jessup and Partners, as saying that the level of
inquiries has increased.

Insolvency specialist at KordaMentha, Bill Buckby, agreed that
company administrations and liquidations are rising, Townsville
Bulletin relates.

The paper states that in Queensland, the number of bankruptcies
increased 15% from 4,693 in 2004-2005 to 5,374 in 2005-2006.

Townsville Bulletin also notes the official receiver for
Insolvency and Trustee Service Australia in Queensland, Digby
Ross, as saying that about 20% of the bankruptcies were
business-related.

According to Australian Securities and Investments Commission
data, the number of companies entering external administration
in Queensland increased 11.48% from 453 in the six months to
June 30, 2005, to 505 in the same period in 2006.

Ms. Carter noted that Townsville generally is still very
buoyant, and Cairns is also very strong with good tourist trade,
Townsville Bulletin relates.

According to the paper, Mr. Buckby said the economy in North
Queensland shows strong growth and very confident people.  
However, Mr. Buckby noticed an increase in difficulties in the
building and construction sector, the paper adds.

Mr. Buckby stated cashflow pressures occurred at times of high
growth and when fuel and material costs increased.

"At the end of that growth period when things start to ease up,
it's at that point in time when the pressures comes on to the
organization," Mr. Buckby noted.


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

AGILE PROPERTY: S&P Assigns BB Long Term Corp. Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services on September 4, 2006,
assigned its 'BB' long-term corporate credit rating to Agile
Property Holdings Ltd.  The outlook is stable.  At the same
time, it assigned its 'BB' issue rating to a proposed issue of
seven-year US$350 million unsecured fixed-rate notes, redeemable
after four years.

The bond proceeds will be used primarily for land acquisitions.
    
"The ratings reflect Agile's established presence in the Pearl
River Delta region of China, large and low cost land bank,
experience in large-scale residential projects, and flexible
development structure," said Standard & Poor's credit analyst
Jacphanie Cheung.

These strengths are partly offset by the company's concentration
in the city of Zhongshan, its rapid expansion plan, and the
operating and execution risks it faces in new markets.

Agile develops large-scale residential properties in suburban
areas, targeting the middle and upper-middle classes.  Recent
government measures to cool the country's overheating property
market are likely to accelerate industry consolidation and
intensify competition, which could hamper Agile's operations and
cash flow generation.

Moreover, the company is vulnerable to volatile market
conditions because of its lack of recurring income from property
investment and focus on asset turnover.  Nevertheless, Agile's
record in its domestic market and financial flexibility give it
a competitive advantage over smaller players.
     
As a result of its rapid expansion and increased debt, the
company's annualized ratio of funds from operations or FFO to
total debt could weaken to 20% over the next two years from 61%
as of June 2006.  Its FFO interest coverage could deteriorate to
4x from 15x over the same period.  Liquidity was strong at the
end of June 2006, with net cash of CNY618 million.

However, its cash position is likely to become tight over the
next two years because of its rapid expansion plan, which
requires substantial upfront cash over the short term.

                          *     *     *

Agile Property Holdings Limited -- http://www.agile.com.cn-- is  
a land developer of Guangdong Province, China.  It was
established in 1985 as a furniture maker in Zhongshan City, and
entered the property business in 1992.  On December 15, 2005,
Agile Property was listed on the Hong Kong Stock Exchange.


AGILE SOFTWARE: Final Members' Meeting Set on Sept. 29
------------------------------------------------------
Members of Agile Software Ltd will convene for their final
meeting on September 29, 2006, 9:30 a.m. at 19/F., Seaview
Commercial Building, 21-24 Connaught Road West in Hong Kong.

At the meeting, Joint and Several Liquidators Andrew C. Ma and
Felix K. Lee will present their report regarding the company's
wind-up and the manner its properties were disposed of.


ALLIED ELEGANT: Liquidators to Present Wind-Up Report
-----------------------------------------------------
Joint and Several Liquidators Andrew C. Ma and Felix K. Lee are
set to report on Allied Elegant Ltd's wind-up and its property
disposal activities.

The report will be presented on September 29, 2006, 10:00 a.m.
at 19/F., Seaview Commercial Building, 21-24 Connaught Road West
in Hong Kong.

The Troubled Company Reporter - Asia Pacific reported on
February 17, 2006, that the members of the company resolved to
wind up its operations.  


CHINA MERCHANTS: Fitch Affirms Individual D Rating
--------------------------------------------------
Fitch Ratings affirmed on September 5, 2006, China Merchants
Bank's Individual D and Support 3 ratings.

China Merchants Bank's Individual 'D' rating reflects its
standing as one of China's better-managed, more innovative, and
more customer-oriented banks.

However, inadequate capital, modest profitability, and fast
growth are a concern given the high-risk operating environment.  
After several years of rapid growth of over 50%, credit growth
moderated to a still quite strong 22% to 26% from 2004 to H106.

As of the fist half of 2006, retail loans represented 16% of
total loans.  Merchants continue to report relatively good asset
quality, with NPLs declining to 2.3% of total loans in H106, and
loan loss reserve coverage a solid 123%.

However, profitability remains modest, with return on assets of
just 0.56%, and capital is thin with the ratio of equity/assets
falling to 3.1%.  In this context, the bank's upcoming listing
in Hong Kong is considered credit positive, both in terms of
capital raising and further strengthening corporate governance.

                          *     *     *

China Merchants Bank -- http://www.cmbchina.com/-- is the  
second-largest bank among China's 12 nationwide shareholding
commercial banks. It was established in 1987 and listed on the
Shanghai Stock Exchange in 2002.  The Ministry of
Communications-owned China Merchants Group is the bank's main
shareholder with a 26 percent stake (through various companies).   
The bank had 410 banking outlets nationwide and 17,829 employees
at end-2004.

On August 3, 2006, The Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings has upgraded its Individual rating
on China Merchants Bank to 'D' from 'D/E'.  At the same time,
the bank's Support rating was affirmed at '3'.

On Aug 21, 2006, the Troubled Company Reporter - Asia Pacific
reported that China Merchants Bank received an approval in
principle from Hong Kong Stock Exchange to launch its US$2
billion initial public Offering.


CHINA MINSHENG: Fitch Keeps Individual D/E Rating
-------------------------------------------------
Fitch Ratings affirmed on September 5, 2006, China Minsheng
Banking Corp.'s Individual D/E and Support 4 ratings.

China Minsheng's Individual D/E rating reflects its better-than
average asset quality figures, together with weak capitalization
and thin earnings.

For several years, Minsheng has been one of the fastest growing
commercial banks in China, with assets expanding at an average
of 32% annually on a compounded basis since 2002.  In 2005, the
bank posted the strongest loan growth among nationwide peers, up
31% vs. an average of 15%.  Continued rapid growth is a concern,
particularly given Minsheng's already constrained capital
position.

Minsheng's asset quality continues to hold up well, with the
bank registering some of the strongest asset quality figures
among China's nationwide banks: at end Jun06, the ratio of 5-
tier NPLs/total loans was 1.2% and loan loss reserve coverage
116.5%.

The bank's total capital adequacy ratio slipped below the
regulatory requirement of 8% in H106, but is expected to rise by
year-end after the bank completes its planned private A share
placement.

                          *     *     *

China Minsheng Banking Corporation Ltd's principal activity is
the provision of commercial banking services that include
absorbing public deposits, providing short term, medium term and
long term loans, making domestic and international settlement,
discounting bills and issuing financial bonds.


COLORFUL PLASTIC: To Receive Claims Until September 25
------------------------------------------------------
Chairman Wong Sai Ming of Colorful Plastic Printing Ltd will be
receiving proofs of claim from the creditors of the company
until September 25, 2006.

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


EMA DESIGN: Wind-Up Bid Hearing Slated for Oct. 11
--------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Ema Design & Industries Ltd on October 11, 2006, at 9:30 a.m.

Jieyang Xingcai Metal Products Ltd filed the petition with the
Court on August 4, 2006.

The Solicitors for the Petitioner can be reached at:

         Fan Wong & Tso
         Room 2102, 21/F
         Tower II, Lippo Centre
         89 Queensway, Hong Kong


EXCELROY LIMITED: Faces Wind-Up Proceedings
-------------------------------------------
A petition to wind-up Excelroy Ltd will be heard before the High
Court of Hong Kong on September 13, 2006, at 9:30 a.m.

Bank of China (Hong Kong) filed the petition with the Court on
June 15, 2006.

The Solicitors for the Petitioner can be reached at:

         Wat & Company
         12th Floor, Chuang's Tower
         30 & 32 Connaught Road Central
         Hong Kong


FUHWA BANK: Fitch Downgrades Individual Rating to D
---------------------------------------------------
Fitch Ratings affirmed on September 4, 2006, the National
ratings of Taiwan's Fuhwa Bank.  The rating agency also upgraded
the bank's Support rating one notch and downgraded its
Individual rating one notch.

After the revision, all the ratings are as follows:

    * National Long-term A-(twn);

    * National Short-term F2(twn);

    * Individual D; and

    * Support 3.

The Outlook on all the ratings remains Stable.

The affirmation of Fuhwa's National ratings and the upgrade of
its Support rating reflect the committed support from its
parent, Fuhwa Financial Holding Co.  Fuhawa Financial is
required by law to provide the bank with full support and has
injected TWD3 billion into the bank in 2004 and another TWD3
billion in 2005 to bolster the Fuhwa's capitalization.

Fitch notes that Fuhwa Financial's capital strength is adequate,
given that it owns two other principal subsidiaries, Fuhwa
Securities Finance and Fuhwa Securities Co.  Both of them have
strong liquid asset positions and robust capitalization.

The downgrade of Fuhwa's Individual rating reflects the
deterioration in its profitability as a result of increased
credit costs on unsecured consumer lending and rising pressure
on interest margins.  Fuhwa has aggressively grown consumer
loans since 2003. Consumer loans made up 58% of total loans at
end-2005 (non-mortgage consumer loans accounted for a near 20%
of total loans), up from 39% at end-2002.  The recent credit
crisis in Taiwan's unsecured consumer lending weakened Fuhwa's
profitability in 2005 and seen it worsen so far in 2006.

Fuhwa is a wholly owned subsidiary of Fuhwa Financial.  
Currently, the largest shareholder, Yuanta Core Pacific
Securities and its related parties have acquired a 45% stake in
Fuhawa Financial with the intention of merging with the holding
company.  Fitch notes the proposed merger would have a positive
impact on Fuhwa's ratings, provided that Yuanta obtains majority
control of Fuhwa Financial.


HO KWAN: Members to Receive Wind-Up Report
------------------------------------------
Members of Ho Kwan Co Ltd will receive a wind-up report from
Joint and Several Liquidator Andrew C. Ma and Felix K. Lee on
September 29, 2006, at 10:30 a.m.

The report will be presented at 19/F., Seaview Commercial
Building, 21-24 Connaught Road West in Hong Kong.


HUA XIA BANK: Fitch Keeps Individual D/E and Support 4 Ratings
--------------------------------------------------------------
Fitch Ratings affirmed on September 5, 2006, Hua Xia Bank's
Individual D/E and Support 4 ratings.

Hua Xia Bank's Individual D/E rating reflects its weak capital
position, inadequate profitability, and potential asset quality
risks stemming from very rapid loan growth.  Total loans
expanded 29% in 2005, the second fastest growth among local
peers.

Asset quality remains stable with the ratio of NPLs at 3%,
although loan loss reserve coverage is thin at just 69%.

Due to relatively higher loan loss provisioning and expenses,
Hua Xia Bank's earnings remain quite weak overall with return on
assets of just 0.42%. Capital also is an issue with the bank's
equity/assets ratio slipping to 2.7% in H106.

Introduction of a consortium of foreign shareholders led by
Deutsche Bank is a credit positive in both improving its
corporate governance and future business development.

                          *     *     *

Headquartered in Beijing, Hua Xia Bank Co., Limited
-- http://www.hxb.com.cn-- is a commercial bank that offers  
financial services to both corporate and individual clients.  At
the end of 2005, it has 27 branches and 257 offices nationwide.

On 21 September 2005, Deutsche Bank entered into a preliminary
agreement to purchase a holding of about 10 per cent in Huaxia
Bank, a medium-sized Beijing-based lender, for about US$200m.  
People close to the situation said Deutsche had teamed up with
another European financial institution to buy a total of about
15 per cent in Shanghai-listed Huaxia for more than US$300m - a
slight premium to its market value.


IAC BANK: Fitch Maintains Individual Rating at C
------------------------------------------------
Fitch Ratings affirmed on September 4, 2006, Hong Kong-based
Industrial and Commercial Bank of China (Asia) Limited's
Individual rating at C and Support rating at 2.

Fitch notes the credit profile of ICBC Asia is adequate, with
sound asset quality ratios and adequate capitalization.  Its
franchise was further enhanced with the 2004 acquisition of
Belgium Bank in Hong Kong expanding its assets by one-third and
giving it a more balanced business mix; at end-June 2006,
corporate loans accounted for 33% of total loans (versus 57% in
2003) while retail and commercial loans stood at 30% and 35%
respectively, thanks to Belgium Bank's more retail and SME-
oriented nature.

The bank's profitability, while satisfactory, remained below its
peer-average due to its relatively modest net interest margins,
which reflects its limited deposit-taking franchise and
considerable amount of low-yielding syndicated corporate loans.

To enhance its et interest margin, ICBC Asia is shifting towards
higher-yielding assets.  Also, to bolster fee income, the bank
is developing its wealth management businesses by leveraging off
the more retail-oriented customer base and systems of the former
Belgium Bank.  These moves are yielding some improvement in its
profitability; in 1H06, net profit rose 18% for an improved RoAA
and RoAE of 0.93% and 11.55% (vs 0.91% and 11.08% in 2005
respectively).  This was achieved with the bank's net interest
margin rising 37bps to 1.44% and through fee income growth of
22%.

ICBC's cost-to-income ratio further declined to 37.4%, partly
through cost synergies arising out of the Belgium Bank merger.  
Asset quality remained good with an impaired loan ratio of 0.8%
at mid-2006 and a satisfactory 67% level of reserves coverage.

Loan growth was quite strong at 13% in 2005, even after loan
sales to its parent and third parties during the year so as to
keep its CAR at a solid target level of c.16%.  In particular,
loans outside Hong Kong (including China and other emerging
Asian markets) surged to 9% of loans at end-2005, although
growth here slowed to 6% (annualized) in H106.

Overall loan growth in 1H06 came in at negative 3% due to
further sales.  Fitch notes that the bank's expansion into
emerging Asia and general shift towards higher margins assets is
raising its risk profile.  This, however, is mitigated by the
bank's quite strong capitalization, with its CAR further
bolstered to 17.8% at mid-2006 through the loan book contraction
and a HKD2.2 billion sub-debt issuance to its 60% parent, the
Industrial and Commercial Bank of China.

ICBC China is one of China's Big Four state-owned banks and is
rated 'A-' (A minus).  Fitch believes there is a high
probability that it would support ICBC Asia should the need
arise.

                          *     *     *

Established in 1964, ICBC Asia has been the principal Hong Kong
unit of ICBC China since 2000.  It became Hong Kong's seventh-
largest local bank by way of assets on acquiring Belgium Bank.  
Listed in Hong Kong, ICBC Asia has one other notable
shareholder, Fortis N.V. with a 9% share in the bank.


IPCO CONSTRUCTORS: Creditors Must Prove Debts by Sept. 25
---------------------------------------------------------
Creditors of Ipco Constructors International Ltd are required to
submit their proofs of claim to Joint and Several Liquidator
Andrew David Ross by September 25, 2006.

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

The Joint and Several Liquidator can be reached at:

         Andrew David Ross
         12/F., China Merchants Tower
         Shun Tak Centre
         168-200 Connaught Road Central
         Hong Kong


NUCLEAR CONSTRUCTION: Creditors' Proofs of Claim Due on Sept. 25
----------------------------------------------------------------
Creditors of Nuclear Construction and Engineering Co Ltd are
required to submit their proofs of claim to Liquidator Stephen
Briscoe by September 25, 2006.

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

On August 1, 2006, the Troubled Company Reporter - Asia Pacific
reported that the High Court of Hong Kong will hear the wind-up
petition against the company on September 13, 2006. The petition
was filed by Guangzhou Aluminum Fluro-Carbon Coated Ltd.


ONCYCLE ESTATES: Members' Final Meeting Fixed on Sept. 29
---------------------------------------------------------
A final members' meeting of Oncycle Estates Ltd will be held on
September 29, 2006, 11:00 a.m. at 19/F., Seaview Commercial
Building, 21-24 Connaught Road West in Hong Kong.

During the meeting, Joint and Several Liquidators Andrew C. Ma
and Felix K. Lee will present a report regarding Allied Elegant
Ltd's wind-up and its property disposal activities.


OVERSEAS TRADING: Liquidators' Ma and Lee to Present Report
-----------------------------------------------------------
Joint and Several Liquidators Andrew C. Ma and Felix K. Lee will
present a report regarding Overseas Trading and Investments
Ltd's wind-up and property disposal activities.

The report will be presented on September 29, 2006, 11:30 a.m.
at 19/F., Seaview Commercial Building, 21-24 Connaught Road West
in Hong Kong.


POLYLION LIMITED: Court Issues Wind-Up Order
--------------------------------------------
The High Court of Hong Kong issued a wind-up order against the
operations of Polylion Ltd on August 16, 2006.

According to the Troubled Company Reporter - Asia Pacific, Woo
Long Engineering & Construction Co Ltd filed the wind-up
petition on June 19, 2006.  The petition was heard before the
court on August 16, 2006.


SHARP UNION: Court to Hear Wind-Up Bid Today
--------------------------------------------
The High Court of Hong Kong is set to hear a wind-up petition
against Sharp Union Ltd today, September 6, 2006, at 9:30 a.m.

Bank of China (Hong Kong) filed the petition with the Court on
May 2, 2006.

The Solicitors for the Petitioner can be reached at:

         Gallant Y.T. Ho & Co.
         5th Floor, Jardine House
         No.1 Connaught Place
         Central, Hong Kong


STANLEY FORCE: Court to Hear Wind-Up Petition on Sept. 20
---------------------------------------------------------
A petition to wind up the operations of Stanley Force Insurance
Brokers Ltd will be heard before the High Court of Hong Kong on
September 20, 2006, at 9:30 a.m.

ING Finance Financial Planning Ltd filed the petition with the
Court on July 25, 2006.

The Solicitors for the Petitioner can be reached at:

         Keith Lam Lau & Chan
         5/F., The Chinese Club Building
         21-22 Connaught Road Central
         Hong Kong


TIAN AN: Members Opt for Voluntary Wind-Up
------------------------------------------
Class A, B, C, D and E shareholders of Tian An Development Co
Ltd resolved on August 23, 2006, to voluntary wind up the
company's operations.

Subsequently, Lo Wai On was named Liquidator for the company.

The Liquidator can be reached at:

         Lo Wai On
         Room 1901-2
         Park-In Commercial Centre
         56 Dundas Street, Mongkok
         Kowloon, Hong Kong


WATERY OCEAN: Court Favors Wind-Up
----------------------------------
The High Court of Hong Kong issued a wind-up order against
Watery Ocean Restaurant Co Ltd on August 16, 2006.

The Troubled Company Reporter - Asia Pacific reported on July
31, 2006, that Kong Ching Chau filed a wind-up petition against
the company on June 21, 2006.  The petition was heard before the
court on August 16, 2006.


* Taiwan Banks Operating in Tough Times, Fitch Says
---------------------------------------------------
Fitch Ratings says Taiwan banks are operating in a tough
environment in which severe market fragmentation and a flattish
yield curve have continued to depress interest margins.  

Current conditions have exacerbated the interest margin
compression the sector was already seeing, as banks here
struggled with seeking out domestic lending opportunities,
particularly in the wake of the unsecured consumer lending
debacle that exploded in late 2005.

The agency further notes that the government's will to privatise
state-controlled banks as well as its willingness to allow
market forces to shape the banking system are key factors to
speeding up the sluggish pace of much-needed consolidation in
the sector.

In a comprehensive report published on 30 August entitled "The
Taiwan Banking System", Fitch adds that property market related
credits are one of the very few bright spots for banks, thanks
to a moderate recovery in property after a decade-long recession
that ended mid-2003. However, the agency warned that the
recovery in property markets does entail a potential risk as it
is in part supported by expectations of improved cross-straits
relations with China, amid an environment of subdued economic
growth and low interest spreads on mortgages.

Additionally, the agency notes the existing political
disagreements among the Taiwanese and Chinese governments.  This
has added to the constraints on Taiwan banks' development, given
that Taiwanese government prohibits Taiwan banks from expanding
to mainland China - the biggest outbound investment destination
by Taiwan corporations.

The agency identifies consolidation as the main theme in the
development of the Taiwan banking system from 2001 to 2006,
although this is occurring at a fairly slow pace.

"Looking ahead, the government's determination to privatise
state-controlled banks is essential to step up the pace of the
banking consolidation process and revitalise the overall banking
system," said Jonathan Lee, senior director in Fitch's Financial
Institutions team in Taipei.  

As at end-July 2006, government-controlled financial
institutions held about 50% of the system's banking assets.

In the report, Fitch expressed its views that the new unified
regulatory regime governing the banking system under the
auspices of the Financial Supervisory Commission as more
effective than the previous fragmented system.  However,
authorities have demonstrated a willingness to employ regulatory
forbearance to assist weak institutions and a reluctance to
intervene even in banks with severe solvency problems.

In addition, the agency is concerned about overall weak
corporate governance among Taiwanese banks.  The creation of the
FSC in July 2004 has increased the level of independent
authority and better integrated the supervision of increasingly
complicated universal banking activities across the banking,
insurance and securities sectors.

Nevertheless, the government is likely to allow market forces to
play a greater role in shaping the banking system. Therefore,
Fitch expects the consistently maintained "no bank bankruptcy"
policy to come under challenge.  The public bank bail-out fund,
or the Financial Restructuring Fund is gradually being wound
down and the blanket deposit guarantee hitherto offered by the
FRF was replaced in July 2005 by the basic deposit insurance
scheme managed by the Central Deposit Insurance Corp.


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

FORD MOTOR: May Sell Aston Martin Sports Car Unit to Raise Fund
---------------------------------------------------------------
Ford Motor Company has begun the process of exploring strategic
options for Aston Martin sports-car unit, with particular
emphasis on a potential sale of all or a portion of the unit.

"As part of our ongoing strategic review, we have determined
that Aston Martin may be an attractive opportunity to raise
capital and generate value," said Chairman and Chief Executive
Officer Bill Ford.  

"Aston Martin Lagonda has flourished under Ford ownership, which
is why we believe it is prudent to consider a sale of all or
part of this prized brand.  Since Aston Martin's dealer network,
product architecture and size are distinctly different from
other Ford brands, it is the most logical and capital-smart
divestiture choice.  The objective of any sale would be to
position Aston Martin within a structure and resource base
sufficient to allow it to reach its full potential, while
enabling Ford to efficiently raise capital for its other
brands."

Mr. Ford added, "Regarding our other Premier Automotive Group
brands, we've made no decisions, as our review of strategic
alternatives continues.  However, we continue to be encouraged
by Jaguar's progress and by the strength and consumer appeal of
the Jaguar, Land Rover and Volvo product lineups."

The company said there can be no assurance that the decision to
explore strategic options for Aston Martin will result in any
transaction, which would be subject to Board approval.

                        About Ford Motor

Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A.,
is the world's third largest automobile manufacturer.  It has
operations all over the world, including India.

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

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


GMAC LLC: S&P May Up Ratings After 51% Ownership Interest Sale
--------------------------------------------------------------
Standard & Poor's Ratings Services' 'BB/B-1' ratings 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 ratings 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 U.S. FTC anti-trust approval
for the transaction, and GMAC finalized a $10 billion funding
facility with Citigroup.

However, on July 28, 2006, the FDIC announced a six-month
moratorium on approving ownership changes affecting industrial
loan companies.  The Cerberus consortium had submitted notices
with respect to GMAC's ILC, GMAC Automotive Bank, the timing of
the approval of which is likely to be affected by the
moratorium.  FDIC approval of the Change in Bank Control Act
notices with regard to GMAC Automotive Bank is a condition to
closing the GMAC transaction.

GMAC and GM have disclosed that they are now working with the
consortium to consider ways of avoiding delay of the targeted
closing date (i.e., later in 2006).

Standard & Poor's will continue monitoring developments
pertaining to the transaction.

                          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.


NETGURU INC: To Sell Indian Operations & Merge with BPOMS
---------------------------------------------------------
netGuru, Inc., entered into definitive agreements to merge with
privately held BPO Management Services, Inc., and divest its
Indian engineering business process outsourcing operations and
related assets.

The proposed merger would result in BPOMS becoming a wholly
owned subsidiary of netGuru, with BPOMS' stockholders exchanging
their shares of BPOMS common stock and preferred stock for
shares of netGuru common stock and preferred stock, and netGuru
assuming the obligations under BPOMS' outstanding options and
warrants.  It is anticipated that BPOMS stockholders would then
hold approximately 90% of netGuru's equity interests that would
be outstanding immediately following the consummation of the
merger, excluding most new equity or equity-based securities, if
any, issued by netGuru or BPOMS after Aug. 29, 2006.  The
divestiture of the Indian operations would occur simultaneously
with the merger and involve the transfer of netGuru's Indian
subsidiary and certain additional assets and liabilities to an
entity owned and controlled by affiliates of netGuru, Inc.

Patrick Dolan, BPOMS' chief executive officer, commented: "We
believe our merger with netGuru would provide not only access to
the capital markets to support future growth but also key
software and technology to complement and strengthen our
existing operations.  Demand for back-office business process
outsourcing services, especially from the under-served middle
market, is rising, and with economic and business growth
continuing, we feel this merger represents a timely and
strategic move."

In connection with the merger and divestiture, netGuru would
declare a cash dividend and conduct a reverse stock split.  If
declared, the cash dividend would be approximately
US$3.5 million, or approximately 18 cents per share of netGuru
common stock outstanding prior to the planned reverse stock
split, and would become payable out of US$1.5 million in cash
expected to be provided by BPOMS in the merger and US$2 million
in cash expected to be received by netGuru from the divestiture.

After the declaration of the dividend but prior to the payment
of the dividend and consummation of the merger, netGuru would
effect a 1-for-30 reverse stock split of its approximately 19.2
million outstanding common shares.  In addition, netGuru would
create three series of preferred stock containing, among other
terms, various conversion, liquidation, redemption, voting,
director election, and board observation provisions.  Shares of
BPOMS preferred stock would convert into shares of the newly
created netGuru preferred stock at the closing of the proposed
merger.

If all closing conditions are met, the merger and divestiture
are anticipated to be completed by December 2006.  After the
merger and divestiture are completed, the Company's remaining
operations -- Web4 enterprise content management software and
netGuru Systems -- would be integrated into BPOMS' existing
operations.  BPOMS' management team would assume the Company's
executive and other management positions, although it is
anticipated that netGuru's chief financial officer, Bruce
Nelson, and chief operating officer, Koushik Dutta, will retain
their current positions.

                           About netGuru

netGuru, Inc. (Nasdaq: NGRU) -- http://www.netguru.com/--  
offers engineering business process outsourcing services for the
architecture, engineering, and construction industry; document
and project collaboration software and solutions for those
industries; enterprise software providers, software integrators,
and other businesses engaged in document and project-centric
operations; and technical services and support.  netGuru offices
are located in the United States, Europe, and India.

Haskell & White LLP in Irvine, Calif., raised substantial doubt
on netGuru, Inc.'s ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
year ended March 31, 2006.  The auditor pointed to the Company's
operating losses; negative cash flows from operations; sale of a
significant portion of its operating assets; partial liquidation
distribution to stockholders during the year ended March 31,
2006; and contemplation of selling additional operating assets.


SILICON GRAPHICS: Wants Lease-Decision Period Extended to Dec. 4
----------------------------------------------------------------
Silicon Graphics, Inc., and its debtor-affiliates ask the United
States Bankruptcy Court for the Southern District of New York to
extend the period within which they may assume or reject their
unexpired leases for an additional 90 days, through and
including the earlier of:

    (i) the effective date of the proposed Plan of
        Reorganization; and

   (ii) December 4, 2006.

As of August 16, 2006, the Debtors are party to 18 unexpired
leases of nonresidential real property, Gary Holtzer, Esq., at
Weil, Gotshal & Manges LLP, in New York, relates.

Section 365(d)(4) of the Bankruptcy Code provides that if a
debtor does not assume or reject an unexpired lease of
nonresidential real property by the earlier of the date that is
120 days after the Petition Date, or the date of the entry of
the order confirming a plan, the lease will be deemed rejected
and the debtor will immediately surrender the property to the
lessor.  However, the Court may extend the debtor's lease
decision period prior to the expiration of the 120-day period,
for 90 days, upon the debtor's request for cause.

Under the Plan, the Debtors will generally reject executory
contracts and unexpired leases not specifically listed for
assumption in the Plan's schedules, with assumption and
rejection effective upon the Debtors' emergence from Chapter 11.  
However, Mr. Holtzer notes that the confirmation of the Plan
will not occur until after September 5, 2006, which is the
current deadline to assume or reject the Unexpired Leases.

Without an extension of the Lease Decision Period, the Debtors
may be forced to assume unnecessary leases, including needless
administrative expenses, or to reject leases that are beneficial
to them, Mr. Holtzer says.

Mr. Holtzer notes that the extension is necessary because:

    * the Unexpired Leases are important to the Debtors'
      continued operation and their reorganization efforts; and

    * the Debtors wish to avoid making unreasonable or
      uninformed decision as to whether to assume or reject the
      Unexpired Leases.

The lessors under the Unexpired Leases will not be prejudiced by
the extension, Mr. Holtzer further notes.

The Debtors assure Judge Lifland that they are current, and
intend to remain current, on their postpetition obligations
under the Unexpired Leases.

A full-text copy of the list of Unexpired Leases is available
for free at http://researcharchives.com/t/s?102a  

                     About Silicon Graphics

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

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

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

Debtor affiliates filing separate chapter 11 petitions:

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

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


SILICON GRAPHICS: Wants Until Dec. 29 to File Chapter 11 Plan
-------------------------------------------------------------
Silicon Graphics, Inc., and its debtor-affiliates ask the United
States Bankruptcy Court for the District of New York to extend,
without prejudice to their rights to seek further extensions,
their:

    * Exclusive Plan Proposal Period through and including
      December 29, 2006; and

    * Exclusive Solicitation Period through and including
      February 28, 2007.

Gary Holtzer, Esq., at Weil, Gotshal & Manges LLP, in New York,
tells Judge Lifland that the Debtors' Chapter 11 cases are
sufficiently large and complex to warrant the requested
extension.

According to Mr. Holtzer, the Debtors' good-faith progress is
evidenced by the accomplishment of several milestones within 90
days of the Petition Date, specifically:

    -- the filing of a Plan of Reorganization supported by the
       representatives of all economic parties-in-interest;

    -- the approval of the related Disclosure Statement;

    -- the commencement of solicitations; and

    -- the establishment of a date for the hearing on
       confirmation of the Plan.

Mr. Holtzer maintains that granting the extension will afford
the Debtors the opportunity to ensure the confirmation of a
viable and consensual Chapter 11 plan, without giving them
unfair bargaining leverage over creditor constituencies.  
Instead of prejudicing any party-in-interest, the extension will
afford the Debtors the opportunity to ensure the confirmation of
a realistic, viable and consensual Chapter 11 plan.

The Debtors assure the Court that since the Petition Date, they
have timely met, and will continue to timely meet, their
postpetition obligations.

                      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.


* JCR Revises Outlook on BBB Currency Ratings to Positive
---------------------------------------------------------
Japan Credit Rating Agency affirmed on September 4, 2006, the
BBB ratings on foreign currency and local currency long-term
senior debts of the Republic of India.  Simultaneously, it has
revised their rating outlooks from Stable to Positive.

The revision reflects JCR's assessment that:

     * India's chronic fiscal deficit has begun to improve with
       the trend likely to continue in the medium term; and

     * the Indian economy will be able to maintain a
       comparatively high growth rate on the order of 7%, mainly
       driven by the strong service sector.

Additionally, the ratings are supported by other positive
factors, such as the implementation of structural reforms with
consideration paid to the poor by the Congress Party-led
coalition government which came to power in the April 2004
general election, India's comparatively stable macroeconomic
performance led by the development of the service sector, its
relatively sound foreign currency liquidity position and
improving relations with Pakistan.

On the other hand, in order for the country to raise its
economic growth rate to 9-10%, the same level as that of the
Chinese economy, it needs to resolve its own problems, in
particular, the vulnerability to weather conditions of the
agricultural sector, which still occupies an important position
in the Indian economy in terms of industrial composition of GDP
and employment, as well as the infrastructure bottlenecks
including electric power supply.  The current government needs
to carry out reforms targeted at those areas.  There is no
denying that the leftist parties' support outside of the Cabinet
can be a factor that may delay the government-led structural
reforms, particularly labor reforms and privatization.  However,
their strong reluctance to see the return of the former ruling
party BJP may work as a prop to prevent a possible collapse of
the new administration.  JCR expects that the structural reform
policy itself will be retained under the current administration
although the pace of the reforms may not necessarily be
steadfast.

India's real GDP growth accelerated to 8.4% in FY2005 (April
2005-March 2006) from 7.5% the previous year, primarily led by
the strong service sector.  The growth may slightly decelerate
in FY2006 in view of the growing inflationary pressure.  JCR
projects, however, that driven by the strong service sector, a
real GDP growth rate in the 7.5-8.0% range will be within reach
in FY2006.  In a medium-term perspective, in order to raise the
economic growth rate to the higher range of 9-10% as in China,
the Indian economy needs to overcome its own problems.  These
include the vulnerability to weather conditions of its
agricultural sector, which accounts for about 20% of GDP and 57%
of the total employment, and the infrastructure bottlenecks,
particularly electric power supply.  However, the country's per
capita GDP has now topped US$3,400 on a purchasing power parity
basis.  Private consumption has been expanding, paced by the
increased purchasing power of the emerging middle class.
Moreover, the service sector has been growing steadily, led by
the software industry.  Given these factors, an average annual
growth rate on the order of 7% is now considered a good
possibility.

Fiscal reforms are one of urgent tasks confronting India.  The
combined general-account fiscal deficit involving both the
central and local governments has exceeded 8% of GDP in recent
years.  Under its FY06/07 budget announced in February, the UPA
government set its target fiscal deficit/GDP ratio at 3.8% for
the center.  In FY05/06, the fiscal deficit target was almost
attained with the ratio cut to 4.1% on a revised estimate basis
as against 4.3% envisaged in the original budget.  The FY06/07
budget put the total revenues excluding borrowed funds at
INR4,153.1 billion or about 10.5% of GDP.  

Tax revenues were projected at INR3,272.1 billion (or 78.8% of
the total revenues), up an estimated 19.4% from the previous
fiscal year.  The budget plan envisaged a high increase in tax
revenues as in FY05/06.  This holds the key to achieving the
fiscal deficit target.  The government plans to increase tax
revenues through such measures as the hike of the services tax
from 10% to 12% and an expansion of the tax base.  The annual
growth of net tax revenues averaged 19.7% in the four years from
FY02/03 to FY05/06 on strong economic activities.  The envisaged
tax revenue increase is expected to be achieved unless there is
some drastic change in the Indian economy's growth momentum
supported by the strong service sector.  

The total budget expenditures were set at INR5,639.9 billion in
FY06/07 (about 14.3% of GDP), up 10.9% from the previous fiscal
year (on an estimated basis).  The increase rate is high as
compared with the previous fiscal year when the growth of total
expenditures was kept moderate.  Interest expenses, which had
been on the rise amid the growing public debt burdens caused by
continuing fiscal deficits, were projected to increase by 7.5%
to INR1,398.2 billion (on a BE to BE basis), accounting for
24.8% of the total expenditures.  However, their ratio to the
total revenues excluding borrowed funds was projected to
decrease to 33.7% as against 35.9% the previous fiscal year due
mainly to the strong growth of tax revenues.

Elsewhere, the ratio of the national defense spending to the
total expenditures was lowered to 15.8% from 16.1% the previous
fiscal year although the amount itself was budgeted to grow 8.9%
to INR890 billion.  Subsidy expenses were cut 1.4% to INR462.1
billion, with their ratio to the total expenditures set to
decline to 8.2% from 9.2% in the previous fiscal year.  As in
the previous year, the FY06/07 budget reflects the current
government's policy to tackle the difficulties of paying due
consideration to both the agriculture and the poor, and the
economic development while improving its fiscal position at the
same time.  Specifically, the government continues to put
priority on measures for rural areas including employment
promotion in the agriculture and expansion of loans to farmers.  
It also pays heed to the promotion of the textile, food
processing, petrochemical, automobile and tourism industries
which can generate more employment and the development of
infrastructure such as electric power plants and motorways.
These may well be called balanced policy measures based on the
reality of India that the agricultural sector accounts for
nearly 60% of the total employment.

Meanwhile, in the medium term, the administration is expected to
address the improvement of its fiscal position, based on the
Fiscal Responsibility Act.  The Act requires the government to
reduce the fiscal deficit/GDP ratio to less than 3.0% by FY08/09
by cutting the deficit 0.3% annually in and after FY04/05.
Although the government temporarily suspended the fulfillment of
the obligation in FY05/06, it is supposed to resume implementing
it under the FY06/07 budget with the aim of achieving the
targeted fiscal deficit reduction by FY08/09.  According to
JCR's medium-term fiscal simulation, the government's primary
balance is expected to turn into surplus and the nominal GDP
growth rate will continue to exceed the nominal interest rate,
allowing the public debt/GDP ratio to keep declining.

Since India experienced a foreign currency liquidity crisis
triggered by the 1991 Gulf War, it has drastically improved its
external balance through a conservative management of external
debt and a strong growth of exports.  The external debt/GDP
ratio, which climbed to a peak 43.7% in FY92/93, began falling
thereafter and dropped to 15.5% at the end of March 2006.  The
ratio of external debt to goods and services exports also fell
to 76.0% at the end of March 2006 from a peak 381.5% in FY92/93,
due mainly to a robust expansion of exports.  Both ratios are
expected to continue declining slowly from now on.

Furthermore, short-term external debt has been kept at very low
levels, with its ratio to the total external debt standing at
7.0% at the end of March 2006.  Similarly, the debt service
ratio, which stood at an exorbitant 35.3% in FY90/91, has
improved steadily, and is expected to stay at the level of 12%
in the coming years.  

Foreign exchange reserves kept increasing in recent years on a
growing current account surplus brought mainly by surging
software exports and income remittances by nonresident workers.  
The reserves stood at US$145.1 billion at the end of March 2006,
ranking India fifth in the world after South Korea.  The
reserves are 16.9 times as much as the short-term external debt,
a dramatic improvement from a mediocre 0.3 times at the end of
March 1991.

The country's IT software exports, a focus of global attention
in recent years, have been keeping their robust growth. These
exports rose 31.5% year-on-year to US$16.1 billion in the nine
months from April to December 2005.  This strong growth is
likely to continue in the years to come.  

Meanwhile, a trade deficit has continued expanding in recent
years due to increasing imports centering on oil.  The goods
trade deficit/ GDP ratio widened to 6.4% in FY05/06 from 5.8% in
FY04/05.  This pushed up the current account deficit/GDP ratio
to 1.3% in FY05/06 from 0.8% in FY04/05.  It is likely that the
trade deficit will exceed 8.0% of GDP in FY06/07.  However, as
bigger surpluses in the service and transfer accounts will
offset the goods trade deficit, the current account deficit will
be maintained at the manageable level of around 1.8%.

Foreign direct investment, which is very important to ensure the
country's industrial advancement and sustained economic growth,
grew 23.5% to US$5.3 billion in the nine months from April to
December 2005.  

JCR will watch how the government will be able to accelerate FDI
inflow by improving the country's international confidence
through the implementation of structural reforms including
deregulation of inward foreign investment and the maintenance of
political stability.


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

CORUS GROUP: Posts GBP82-Mln Net Profit for Second Quarter 2006
---------------------------------------------------------------
Corus Group PLC released its unaudited second-quarter results
for the year ended July 1, 2006.

The group posted GBP82 million net profit on GBP2.41 billion
group turnover for the second quarter of 2006 compared with
GBP171 million net profit on GBP2.49 billion group turn over for
the same period in 2005.

The group's operating profit for the quarter ended July 1, 2006,
is GBP129 million compared with GBP267 million operating profit
for second quarter in 2005.

At July 1, 2006, the group's unaudited balance sheet showed
GBP8.26 billion in total assets, GBP4.58 billion in total
liabilities and GBP3.68 billion in shareholders' equity.

"In the second quarter of 2006, Corus' financial performance has
benefited from a combination of the improvement in market
conditions and our Restoring Success program.  The market
outlook for the second half of the year is encouraging, although
the blast furnace reline at Ijmuiden and seasonal production
shutdowns will mitigate the benefits to our income statements
over this period," Chief Executive Philippe Varin commented.

"The completion of the sale of our downstream aluminum
operations is an important milestone in allowing the Group to
focus on carbon steel," Mr. Varin concluded.

A full-text copy of Corus Group's second quarter results is
available at no charge at http://ResearchArchives.com/t/s?10c7

                        About Corus Group

Corus Group PLC -- http://www.corusgroup.com/-- produces metal  
from its major operating facilities in the U.K., the
Netherlands, Germany, France, Norway, Belgium and Canada.  Corus
turns over GBP10 billion annually and employs 47,300 in over 40
countries and sales offices and service centers worldwide,
including Indonesia and the Philippines.  Corus was created
through the merger of British Steel plc and Koninklijke
Hoogovens N.V.

The group suffered six years ago from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

                          *     *     *

As reported by TCR-Europe on June 21, Standard & Poor's removed
Corus Group PLC's CreditWatch and raised its long-term corporate
credit rating to 'BB' from 'BB-', reflecting the group's
improved financial risk profile.  S&P said the Outlook is
stable.

Fitch Ratings changed Corus Group PLC's Outlook to Positive from
Stable and affirmed the Issuer Default Rating at BB- following
the company's announcement of its 2005 results and plan to
dispose its aluminium business for EUR826 million.  Corus'
affirmed debt instruments include:

   a) Corus Group PLC EUR800 mln 7.5% senior notes B+;

   b) Corus Group PLC EUR307 mln 3.0% convertible bonds B+;

   c) Corus Finance PLC GBP200 mln 6.75% guaranteed bonds B+;
      and

   d) Corus Finance PLC EUR20 mln 5.375% guaranteed bonds B+.

As reported in the TCR-Europe on May 11, Moody's Investors
Service upgraded Corus Group plc's corporate family rating to
Ba2, upgraded its senior unsecured and supported unsecured
obligations to B1 and raised senior secured bank facility to
Ba1.


CORUS GROUP: Deutsche Bank AG Acquires 3.02% Equity Stake
---------------------------------------------------------
Corus Group plc received notification from Deutsche Bank AG
London that, in accordance with Section 198-202 of the UK
Companies Act 1985, Deutsche Bank AG and its subsidiary
companies have a notifiable interest in 27,084,028 ordinary
shares amounting to 3.02% of Corus Group plc's issued share
capital.  

Part of this holding may relate to hedging arrangements for
customer transactions.

Deutsche Bank AG is a corporation domiciled in Frankfurt,
Germany, of which Deutsche Bank AG London is a branch.

                        About Corus Group

Corus Group PLC -- http://www.corusgroup.com/-- produces metal  
from its major operating facilities in the U.K., the
Netherlands, Germany, France, Norway, Belgium and Canada.  Corus
turns over GBP10 billion annually and employs 47,300 in over 40
countries and sales offices and service centers worldwide,
including Indonesia and the Philippines.  Corus was created
through the merger of British Steel plc and Koninklijke
Hoogovens N.V.

The group suffered six years ago from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

                          *     *     *

Standard & Poor's removed Corus Group PLC's CreditWatch and
raised its long-term corporate credit rating to 'BB' from 'BB-',
reflecting the group's improved financial risk profile.  S&P
said the Outlook is stable.

Fitch Ratings changed Corus Group PLC's Outlook to Positive from
Stable and affirmed the Issuer Default Rating at BB- following
the company's announcement of its 2005 results and plan to
dispose its aluminium business for EUR826 million.  Corus'
affirmed debt instruments include:

   a) Corus Group PLC EUR800 mln 7.5% senior notes B+;

   b) Corus Group PLC EUR307 mln 3.0% convertible bonds B+;

   c) Corus Finance PLC GBP200 mln 6.75% guaranteed bonds B+;
      and

   d) Corus Finance PLC EUR20 mln 5.375% guaranteed bonds B+.

As reported in the TCR-Europe on May 11, Moody's Investors
Service upgraded Corus Group plc's corporate family rating to
Ba2, upgraded its senior unsecured and supported unsecured
obligations to B1 and raised senior secured bank facility to
Ba1.


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

DAIEI INC: Mulls Sale of 39 Outlets to Trim Debt
------------------------------------------------
Daiei Incorporated hopes to generate JPY100 billion through the
sale of 39 properties, including some core branches, The Japan
Times reports.  The proceeds of the disposal will be used to
repay debts.

The Times reveals that the retailer has identified these assets
to be sold:

   -- 14 directly operated stores primarily in the Tokyo and
      Osaka metropolitan areas;

   -- 17 affiliated supermarkets;

   -- two branches of subsidiary Opa Co.;

   -- three distribution centers; and

   -- three food-processing centers.

Daiei is accepting bids from interested parties starting this
week and will chose one or more buyers by next month, Reuters
says, citing the Nihon Keizai Shimbun.

According to MarketWatch, a cutback in liabilities through the
assets disposal could help bolster the position of Daiei's
biggest shareholder, Marubeni Corp., which will enter talks with
retail giants to sell a part of its stake in Daiei.  Marubeni
said last week that it is open to strategic partners in
operating Daiei and would consider any potential proposals from
companies interested in investing in the retailer.

As reported by the Troubled Company Reporter - Asia Pacific on
September 1, 2006, Marubeni Corporation is keen on selling part
of its 44.6% holding in Daiei to either Aeon Co or Wal-Mart
Stores Inc.  However, in order for the retail giants to accept
Marubeni's proposal, Daiei's liabilities must be trimmed to an
acceptable level.

Although Daiei cut its group interest-bearing liabilities to
about JPY400 billion as of the end of February 2006 from more
than JPY1 trillion a year earlier, Marubeni views the debt level
as still being too high, Reuters relates.

                        About Daiei Inc.

Headquartered in Hyogo, Tokyo, Daiei Incorporated --
http://www.daiei.co.jp/-- operates about 3,000 stores through  
its subsidiaries and franchisees.  Its retail businesses include
supermarkets, discount stores, department stores, and specialty
shops.  Other businesses include restaurants, hotels, and real
estate services.  Domestic sales make up more than 90% of its
revenues.  Daiei diversified haphazardly during the 1980s
loading up on debt and failing to keep up with new, more
efficient competitors.  Daiei, with the support of the
Industrial Rehabilitation Corporation of Japan, has decided to
close 54 stores nationwide, including subsidiaries, as part of
its new business reconstruction plan.

Daiei has been rehabilitated under the auspices of the
Industrial Revitalization Corp. of Japan after accumulating huge
debts during the bubble economy of the late 1980s.  With the
IRCJ's help since late 2004, Daiei's finances have started to
show a recovery as it has shut down unprofitable stores and sold
subsidiaries.  

As reported by the Troubled Company Reporter - Asia Pacific on
August 18, 2006, Marubeni Corporation assumed the leading role
in Daiei's turnaround efforts by acquiring the entire 33.67%
stake held by the IRCJ in Daiei.  Marubeni now holds a 44.6%
stake in Daiei.


DAIEI INC: Marubeni Wants Sale of OMC Card Stake
------------------------------------------------
Marubeni Corporation is urging Daiei Incorporated to sell around
20% of its stake in credit card firm OMC Card Inc., worth
JPY60 billion, Reuters reports, citing the Yomuiri Shimbun.

Daiei's top shareholder, Marubeni, wants to use proceeds from
the sale of OMC shares to finance the revamp of Daiei stores,
according to the Yomiuri.

Marubeni spokesman Tsutomu Honda, however, denied the report,
saying that his company was not considering selling shares in
OMC at present.  Daiei said it had no plans to sell its OMC
shares, Reuters relates.

Daiei currently holds about 52% of OMC Card.  Its financial
business earned more than 80% of Daiei's consolidated operating
profit last business year, against an operating loss in its main
retail operations.

As reported in the Troubled Company Reporter - Asia Pacific on
August 18, 2006, Marubeni became Daiei's largest shareholder in
August by purchasing shares previously held by government
bailout agency Industrial Revitalization Corporation of Japan.

According to the TCR-AP, Marubeni believes that it could
expedite Daiei's recovery by "quickly improving its operations
and finances further."  It also aims to strengthen its food
distribution business as well as other commodities operations by
strengthening ties with Daiei.

Daiei, on the other hand, is confident that it could achieve its
restructuring and growth plans by using Marubeni's know-how and
strength as a trading company, the TCR-AP had noted.

                        About Daiei Inc.

Headquartered in Hyogo, Tokyo, Daiei Incorporated
-- http://www.daiei.co.jp/-- operates about 3,000 stores  
through its subsidiaries and franchisees.  Its retail businesses
include supermarkets, discount stores, department stores, and
specialty shops.  Other businesses include restaurants, hotels,
and real estate services.  Domestic sales make up more than 90%
of its revenues.  Daiei diversified haphazardly during the 1980s
loading up on debt and failing to keep up with new, more
efficient competitors.  Daiei, with the support of the
Industrial Rehabilitation Corporation of Japan, has decided to
close 54 stores nationwide, including subsidiaries, as part of
its new business reconstruction plan.

Daiei has been rehabilitated under the auspices of the
Industrial Revitalization Corp. of Japan after accumulating huge
debts during the bubble economy of the late 1980s.  With the
IRCJ's help since late 2004, Daiei's finances have started to
show a recovery as it has shut down unprofitable stores and sold
subsidiaries.  

As reported by the Troubled Company Reporter - Asia Pacific on
August 18, 2006, Marubeni Corporation assumed the leading role
in Daiei's turnaround efforts by acquiring the entire 33.67%
stake held by the IRCJ in Daiei.  Marubeni now holds a 44.6%
stake in Daiei.

A subsequent TCR-AP report on September 1, 2006, stated that
Marubeni is keen on selling part of its 44.6% holding in Daiei
to either Aeon Co or Wal-Mart Stores Inc.  However, in order for
the retail giants to accept Marubeni's proposal, Daiei's
liabilities must be trimmed to an acceptable level.  Although
Daiei cut its group interest-bearing liabilities to about
JPY400 billion as of the end of February 2006 from more than
JPY1 trillion a year earlier, Marubeni views the debt level as
still being too high.


DURA AUTOMOTIVE: Poor Performance Prompts S&P to Junk Rating
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.

"This stems from the company's very weak earnings and negative
cash flow during the second quarter of 2006, and poor prospects
for meaningful improvements for the remainder of the year given
tough industry conditions," said Standard & Poor's credit
analyst Martin King.

Rochester Hills, Michigan-based Dura, a manufacturer of
automotive and recreational vehicle components, has total debt
of about US$1.2 billion.  The rating outlook is negative.

Dura reported EBITDA substantially below prior-year levels
during the second quarter, typically the company's strongest
quarter of the year.  EBITDA was down US$29 million (60%) from
last year, and the company's free cash flow was negative US$50
million.

Although automotive industry conditions were difficult during
the second quarter, Dura's performance was much worse than
expected. The company attributed its weak results to these:

   -- Unfavorable product mix, as sales of some of Dura's most
      profitable products fell because of the market share
      losses of key customers, reduced production of high-margin
      light trucks and SUVs, and sparse new business contracts
      that were insufficient to replace lost programs;

   -- Higher raw material costs, especially for aluminum, which
      was up 50% year-over-year, and steel, which did not
      decrease by as much as expected.  The expiration of raw
      material cost recovery contracts and the lag in passing on
      cost increases to customers forced Dura to absorb the bulk
      of the material cost increases during the second quarter;

   --Decreased pricing, as the company agreed to immediately
     reduce prices to gain acceptance on a key customer's raw
     material resale program; and

   -- A bloated overhead cost structure, as Dura has failed to
      reduce indirect labor costs in line with the decline in
      revenue experienced during the past two years.

                      About DURA Automotive

Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent  
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It has 59 manufacturing and product development
facilities located in the United States, Brazil, Canada, China,
Czech Republic, France, Germany, Mexico, Portugal, Slovakia,
Spain and the United Kingdom.  The group also has a presence in
India and Japan.


DURA AUTOMOTIVE: Incurs US$131 Mil. Net Loss in Second Quarter
--------------------------------------------------------------
DURA Automotive Systems, Inc., filed its financial results for
the second quarter ended July 2, 2006, with the United States
Securities and Exchange Commission on Aug. 4, 2006.

For the three months ended July 2, 2006, Dura Automotive
incurred US$131.3 million net loss on US$573.3 million of net
revenues, compared to US$2.9 million of net income on
US$623.8 million of net revenues in 2005.

"While we haven't begun to experience material financial
improvements to date, our operational restructuring plan is off
to an excellent start," said Larry Denton, Chairman and Chief
Executive Officer of DURA Automotive.  "Our management team is
committed to meeting our restructuring goals and our entire
organization is aligned to deliver this program."

Primarily lower North American and European automotive
production, unfavorable vehicle platform mix and the loss of the
GMT 800 seat adjuster business drove the decrease in second
quarter revenue from the prior year.  Partially offsetting these
decreases was the benefit received from foreign currency
exchange.  The decrease in second quarter income from continuing
operations from the prior year reflects the impact of lower
automotive production, the loss of the GMT 800 seat adjuster
business and higher raw material prices.

Mr. Denton continued, "We need to match our overhead structure
to the market share of our major customers.  While our 50 cubed
restructuring plan is focused on structuring our operations for
the future, we must take action immediately to address the
current industry conditions.  To support this effort, we will
reduce our labor force by 510 employees by year end."

The US$2.9 million facility consolidation charge for the quarter
relates primarily to actions associated with the previously
announced 50-cubed operational restructuring plan.  
Approximately US$2.3 million of the charge relates to employee
severance costs and US$600,000 was for facility closure and
asset impairment charges.

In accordance with Statement of Financial Accounting Standards
No. 109 "Accounting for Income Taxes", DURA's second quarter
2006 provision for income taxes includes the recording of a
US$90.8 million valuation allowance for U.S. deferred tax assets
recorded as of Dec. 31, 2005.  DURA determined the need for a
valuation allowance based upon its updated quarterly analysis of
its U.S. operations taxable income together with the extended
impact of elevated raw material prices on the automotive and
recreation vehicle industries.

A copy of the Company's Quarterly Report is available for free
at http://researcharchives.com/t/s?fa1

                      About DURA Automotive

Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent  
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It has 59 manufacturing and product development
facilities located in the United States, Brazil, Canada, China,
Czech Republic, France, Germany, Mexico, Portugal, Slovakia,
Spain and the United Kingdom.  The group also has a presence in
India and Japan.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 1, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.


JAPAN AIRLINES: Adverse Earnings Condition Hampers Rehab Efforts
----------------------------------------------------------------
Japan Airlines has abandoned some of its business plan targets,
which the company deems unrealistic given the difficult earnings
environment, Forbes reports, citing the Nihon Keizai Shimbun.

According to the Nihon Keizai Shimbun, Japan Airlines had
originally identified a number of goals, which include a return
on equity of 6.5% by March 2009 and 18.3% by March 2011.  The
airline also proposed to shorten the period for it to fully
settle interest-bearing debts to nine by fiscal 2007 and seven
by fiscal 2008.

In its financial statements from the year to March 2003 through
the year to March 2005, Japan Airlines vowed to achieve ROE of
over 10% and to pay off interest-bearing liabilities through
operating cash flow over 10 years, the report relates.

However, in recent financial statements filed with the Kanto
Local Financial Bureau, Japan Airlines revised its main business
objectives to "improving medium- and long-term ROE" and
"reducing interest-bearing liabilities."

The carrier explained it dropped the figures stated in its
original plan, saying the present business conditions are no
longer conducive to the establishment of numerical targets.

In the year ended March 2006, JAL suffered a group net loss of
JPY47.2 billion due to surging fuel prices and a drop in
domestic passengers.  The firm's prospects remain grim after it
reported a net loss of JPY26.7 billion for the first quarter
ended June 30, 2006, Nihon Keizai says.

                       About Japan Airlines

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

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

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

                          *     *     *

Fitch Ratings Tokyo analyst Satoru Aoyama said that the
Company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position.  Fitch assigned
a BB- rating on the Company, which is three notches lower than
investment grade, whereas Moody's Investors Service gave Ba3
senior unsecured and issuer ratings for Japan Airlines
International Co., Ltd., as well as its Ba3 issuer rating for
Japan Airlines Domestic Co., Ltd.  On July 20, 2006, Standard &
Poor's Ratings Services had affirmed its B+ long-term corporate
credit and senior unsecured debt rating on the Company.


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

CLOROX COMPANY: Equity Deficit Down to US$156 Million at June 30
----------------------------------------------------------------
The Clorox Company filed its report on financial results for the
fiscal year ended June 30, 2006, on Form 10-K, with the United
States Securities and Exchange Commission on Aug. 25, 2006.

Net sales in fiscal year 2006 increased 6% to US$4.6 billion
compared to US$4.4 billion in the prior period.  Volume
increased at a rate of 1% as price increases impacted shipments.  
Contributing to the volume growth in the current year was the
introduction of several new products and product improvements,
and strong shipments of home-care products within Latin America.

Net earnings were US$444 million for the fiscal year 2006 versus
US$1.1 billion in the previous fiscal year.

Gross profit increased 3% to US$1.96 billion in fiscal year 2006
from US$1.9 billion in fiscal year 2005, and decreased as a
percentage of net sales to 42.2% in fiscal year 2006 from 43.2%
in fiscal year 2005.

The company's balance sheet at June 30, 2006, showed total
assets of 3,616 million and total liabilities of
US$3,772 million resulting in a stockholders' deficit of
US$156 million.  The company's stockholders' deficit at June 30,
2005 stood at US$553 million.

Return on Invested Capital decreased approximately 60 basis
points to 13.3% during fiscal year 2006 due to lower adjusted
operating profit and higher invested capital.  Adjusted
operating profit includes US$36 million of pretax incremental
costs related to historical stock option compensation expense
and the former chairman and chief executive officer's health-
related retirement, which lowered ROIC by 60 basis points.  
Invested capital increased due to an increase in other assets as
a result of the company recording a net pension asset at June
30, 2006, compared to a net pension liability at June 30, 2005,
for its domestic plan.  Cash and cash equivalents for the fiscal
year ended June 30, 2006 decreased to US$192 million from
US$293 million in the prior fiscal year.

A full-text copy of the company's management's discussion and
results of operations may be viewed at no charge at
http://ResearchArchives.com/t/s?1099

                        About Clorox Co.

Headquartered in Oakland, California, The Clorox Company --
http://www.thecloroxcompany.com/-- provides household cleaning  
products and reaches beyond bleach.  Although best known for
bleach (leader worldwide), Clorox makes laundry and cleaning
items (Formula 409, Pine-Sol, Tilex), cat litter (Fresh Step),
car care products (Armor All, STP), the Brita water-filtration
system (in North America), and charcoal briquettes (Kingsford).

The company has locations worldwide, including the Philippines
and South Korea.

The company's balance sheet at June 30, 2006, showed total
assets of 3,616 million and total liabilities of
US$3,772 million resulting in a stockholders' deficit of
US$156 million.  The company's stockholders' deficit at June 30,
2005, stood at US$553 million.


CLOROX CO: Appoints Don Knauss as Chairman and CEO
--------------------------------------------------
Donald R. Knauss has been named chairman and chief executive
officer of The Clorox Company, effective early October 2006.

Mr. Knauss, 55, is currently president and chief operating
officer for Coca-Cola North America.  He succeeds Robert W.
Matschullat, 58, who has served as Clorox's interim chairman and
interim CEO since March 2006, when Gerald E. Johnston stepped
down from those positions due to illness.

"Don has a depth of experience in the consumer products
industry, and he is perfectly suited for Clorox in our drive to
grow our business," said Mr. Matschullat.  "Throughout his
career, he has established himself as a change agent.  
Businesses have grown and flourished under his leadership, and
he achieves results in a way that engages and brings the entire
organization along with him. Don knows how to lead customer- and
consumer-focused organizations.  He has a great, no-nonsense
style that's well suited to the Clorox culture."

As president and COO for the US$7 billion Coca-Cola North
America division since 2004, Mr. Knauss was responsible for
marketing, supply-chain operations, brand and new-product
development and sales.  During his tenure, he significantly
increased the quantity and quality of marketing, helped
revitalize the innovation pipeline across beverage categories
and made diversity a business imperative.  He came to Coke's
North America division from Minute Maid North America, where he
was president and CEO for three years.

"It's an honor to take the helm at Clorox," Mr. Knauss said of
his appointment.  "Clorox has a legacy of strong leading brands,
great marketing and smart, passionate people.  The organization
has done an extraordinary job building operational excellence.  
It has established seamless business processes and truly
understands consumers, qualities that have been demonstrated by
its innovation and brand-building record.  Clorox is strongly
positioned to grow, which I find very exciting.  It is also very
important to me that Clorox has a corporate culture of driving
results while respecting others.  It's a culture steeped in core
values with a deep commitment to community involvement.  I'm
proud to be joining a company of people that have always placed
the highest importance on acting with integrity in all they do."

Mr. Knauss started his career at Coca-Cola in 1994 as senior
vice president of marketing for Minute Maid.  In 1996, he was
promoted to senior vice president and general manager for Minute
Maid's U.S. retail operations.  He next served as president for
Coca-Cola in Southern Africa.  Prior to joining Coca-Cola, Mr.
Knauss held various positions in marketing and sales with
PepsiCo, Inc. and Procter & Gamble.  Prior to launching his
business career, Mr. Knauss served as an officer in the United
States Marine Corps.

In March 2006, Mr. Matschullat, then presiding director of the
board of directors, was appointed interim chairman and interim
CEO of Clorox after Gerald E. Johnston suffered a heart attack
and subsequently retired from his positions.  Mr. Matschullat
will return to serve on the company's board of directors.

                        About Clorox Co.

Headquartered in Oakland, California, The Clorox Company --
http://www.thecloroxcompany.com/-- provides household cleaning  
products and reaches beyond bleach.  Although best known for
bleach (leader worldwide), Clorox makes laundry and cleaning
items (Formula 409, Pine-Sol, Tilex), cat litter (Fresh Step),
car care products (Armor All, STP), the Brita water-filtration
system (in North America), and charcoal briquettes (Kingsford).

The company has locations worldwide, including the Philippines
and South Korea.

The company's balance sheet at June 30, 2006, showed total
assets of 3,616 million and total liabilities of
US$3,772 million resulting in a stockholders' deficit of
US$156 million.  The company's stockholders' deficit at June 30,
2005, stood at US$553 million.


DURA AUTOMOTIVE: Poor Performance Prompts S&P to Junk Rating
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.

"This stems from the company's very weak earnings and negative
cash flow during the second quarter of 2006, and poor prospects
for meaningful improvements for the remainder of the year given
tough industry conditions," said Standard & Poor's credit
analyst Martin King.

Rochester Hills, Michigan-based Dura, a manufacturer of
automotive and recreational vehicle components, has total debt
of about US$1.2 billion.  The rating outlook is negative.

Dura reported EBITDA substantially below prior-year levels
during the second quarter, typically the company's strongest
quarter of the year.  EBITDA was down US$29 million (60%) from
last year, and the company's free cash flow was negative
US$50 million.

Although automotive industry conditions were difficult during
the second quarter, Dura's performance was much worse than
expected.  The company attributed its weak results to these:

   -- Unfavorable product mix, as sales of some of Dura's most
      profitable products fell because of the market share
      losses of key customers, reduced production of high-margin
      light trucks and SUVs, and sparse new business contracts
      that were insufficient to replace lost programs;

   -- Higher raw material costs, especially for aluminum, which
      was up 50% year-over-year, and steel, which did not
      decrease by as much as expected.  The expiration of raw
      material cost recovery contracts and the lag in passing on
      cost increases to customers forced Dura to absorb the bulk
      of the material cost increases during the second quarter;

   -- Decreased pricing, as the company agreed to immediately
      reduce prices to gain acceptance on a key customer's raw
      material resale program; and

   -- A bloated overhead cost structure, as Dura has failed to
      reduce indirect labor costs in line with the decline in
      revenue experienced during the past two years.

                     About DURA Automotive

Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent  
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.

The company has three locations in Asia, namely in China, Japan
and Korea.


DURA AUTOMOTIVE: Shortfall Cues Moody's to Junk Ratings
-------------------------------------------------------
Moody's Investors Service lowered the ratings of Dura Operating
Corp., and its direct parent, Dura Automotive Systems, Inc.  
Dura Automotive's Corporate Family Rating has been lowered to
Caa1 from B3.  Dura Operating Corp.'s senior secured second lien
ratings were lowered to Caa1 from B3, the senior unsecured notes
were lowered to Caa3 from Caa2; and the senior subordinated
notes were lowered to Ca from Caa3.

Dura Automotive Systems Capital Trust's preferred securities
were affirmed at Ca.  The lowered ratings reflect the company's
significant performance shortfall while it executes a major
restructuring plan to move production to low cost countries.   
The company's results have been impacted by market share losses
of its Big 3 OEM customers, slower growth in Europe, higher raw
material pricing, and the loss of its GMT 800 seat adjuster
business and other business mix issues.

The speculative grade liquidity rating was lowered to SGL-4,
representing the potential need for additional financing over
the next twelve months driven by the company's recent quarterly
performance, continuing industry pressures, and the company's
cash restructuring needs.  The outlook is negative.

The negative outlook reflects Moody's expectation that these
industry pressures will continue to negatively impact Dura
Automotive's performance given expected lower production levels
from the Big 3 OEMs in the second half of 2006 and continued raw
material pricing pressures.  Additionally, the company announced
its expectation of taking a goodwill impairment charge,
reflecting the lower expected profitability of its businesses.
While the company noted expected cost benefits from further
headcount reductions, this will unlikely be sufficient to
reverse the impact of the industry pressures noted above.

For the LTM period ending July 2, 2006, Dura Automotive's debt
has risen to well over 8x and EBIT has deteriorated to
approximately 0.7x.  These results have been dramatically
impacted by the deterioration in the company's most recent
quarter during which it reported break even EBIT.  These metrics
along with the prospects for further operating weakness are
heavily weighted within Moody's Automotive Supplier methodology
and position the company's Corporate Family Rating at the Caa1
level.

Ratings lowered:

Dura Operating Corp.:

   * US$150 million guaranteed senior secured second-lien term
     loan due May 2011, to Caa1 from B3;

   * US$75 million guaranteed senior secured second-lien add-on
     term loan due May 2011, to Caa1 from B3

Dura Automotive Systems, Inc.:

   * Corporate Family Rating to Caa1 from B3;

   * US$400 million of 8.625% guaranteed senior unsecured notes
     due April 2012, to Caa3 from Caa2;

   * US$456 million of 9% guaranteed senior subordinated notes
     due May 2009 to Ca from Caa3;

   * US$100 million of 9% guaranteed senior subordinated notes     
     due May 2009, to Ca from Caa3;

Dura Automotive's Speculative Grade Liquidity Rating to SGL-4
from SGL-3

Ratings affirmed:

Dura Automotive Systems Capital Trust's

   * Ca rating for the US$55.25 million of 7.5% convertible
     trust preferred securities due 2028

Dura Automotive's US$175 million guaranteed senior secured
first-lien asset-based revolving credit is not rated by Moody's.

The last rating action was March 14, 2006, when the ratings were
assigned to the senior secured second-lien add-on term loan.

                     About DURA Automotive

Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent  
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.

The company has three locations in Asia, namely in China, Japan
and Korea.


DURA AUTOMOTIVE: Hires Miller Buckfire as Restructuring Advisor
---------------------------------------------------------------
DURA Automotive Systems Inc. has turned to Miller Buckfire & Co.
for help on its financial debt restructuring, Reuters reports.

Company spokesman Robert Mead told Reuters that Miller Buckfire
was hired last week to evaluate DURA's capital structure.  Mr.
Mead said that while it was too early to speculate on how the
restructuring will be implemented, the Company intends to
maintain sufficient liquidity to operate its business during the
process.

DURA had incurred a US$131.3 million net loss on
US$573.3 million of net revenues for the three months ended
July 2, 2006.  In conjunction with the release of its second
quarter financial results, Larry Denton, Chairman and Chief
Executive Officer of DURA announced that the Company intends to
reduce its labor force by 510 employees by year end.  The
planned job cuts is in addition to DURA's 50 cubed restructuring
plan, which is focused on structuring the Company's operations.

                     About DURA Automotive

Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent  
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.

The company has three locations in Asia, namely in China, Japan
and Korea.

                          *     *     *

Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.


DURA AUTOMOTIVE: Incurs US$131.3 Million Net Loss in Q2
-------------------------------------------------------
DURA Automotive Systems, Inc., filed its financial results for
the second quarter ended July 2, 2006, with the United States
Securities and Exchange Commission on Aug. 4, 2006.

For the three months ended July 2, 2006, the Company incurred a
US$131.3 million net loss on US$573.3 million of net revenues,
compared to US$2.9 million of net income on US$623.8 million of
net revenues in 2005.

"While we haven't begun to experience material financial
improvements to date, our operational restructuring plan is off
to an excellent start," said Larry Denton, Chairman and Chief
Executive Officer of DURA Automotive.  "Our management team is
committed to meeting our restructuring goals and our entire
organization is aligned to deliver this program."

The decrease in second quarter revenue from the prior year was
driven primarily by lower North American and European automotive
production, unfavorable vehicle platform mix and the loss of the
GMT 800 seat adjuster business.  Partially offsetting these
decreases was the benefit received from foreign currency
exchange.  The decrease in second quarter income from continuing
operations from the prior year reflects the impact of lower
automotive production, the loss of the GMT 800 seat adjuster
business and higher raw material prices.

Mr. Denton continued, "We need to match our overhead structure
to the market share of our major customers.  While our 50 cubed
restructuring plan is focused on structuring our operations for
the future, we must take action immediately to address the
current industry conditions.  To support this effort, we will
reduce our labor force by 510 employees by year end."

The US$2.9 million facility consolidation charge for the quarter
relates primarily to actions associated with the previously
announced 50-cubed operational restructuring plan.  
Approximately US$2.3 million of the charge relates to employee
severance costs and US$600,000 was for facility closure and
asset impairment charges.

In accordance with Statement of Financial Accounting Standards
No. 109 "Accounting for Income Taxes", DURA's second quarter
2006 provision for income taxes includes the recording of a
US$90.8 million valuation allowance for U.S. deferred tax assets
recorded as of Dec. 31, 2005.  DURA determined the need for a
valuation allowance based upon its updated quarterly analysis of
its U.S. operations taxable income together with the extended
impact of elevated raw material prices on the automotive and
recreation vehicle industries.

A copy of the Company's Quarterly Report is available for free
at http://researcharchives.com/t/s?fa1

                     About DURA Automotive

Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent  
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.

The company has three locations in Asia, namely in China, Japan
and Korea.

                          *     *     *

Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.


DURA AUTOMOTIVE: Closes Stratford Plant & Lays Off 280 Workers
--------------------------------------------------------------
Dura Automotive Systems Inc. is closing its brake cable plant in
Stratford, Ontario, Canada, by 2007, terminating around 280
hourly and salaried employees.

The company disclosed early this year their "50-cubed"
operational restructuring plan designed to enhance performance
optimization, worldwide efficiency and improve financial
results.  The restructuring plan is expected to impact over 50%
of its worldwide operations either through product movement or
facility closures.  The company expects to complete this action
by year end 2007.  Cash expenditures for the restructuring plan
are expected to be approximately US$100 million, which includes
capital expenditures between US$25 and US$35 million.  
Restructuring cash expenses will relate primarily to employee
severance, facility closure and product move costs.  The
restructuring plan will be financed with cash on hand and
availability under the company's existing revolving credit
facility.

The company's management believes that the company's current
available liquidity will provide the funds necessary to execute
this restructuring plan along with its ongoing operating cash
requirements.  Should the company's current liquidity not be
adequate to fund the restructuring plan and ongoing cash
requirements for operations, the company may be required to
modify its restructuring plan, says Keith R. Marchiando, the
company's Chief Financial Officer.

Major ongoing and completed restructuring actions are:

  -- In May 2006, the company disclosed that it would close its
     Brantford, Ontario Canada, manufacturing facility by June
     2007.  The 66,000 square foot plant makes a variety of
     automotive column shift assemblies.  The facility closing
     will impact approximately 120 jobs and the company will
     transfer Brantford production to other DURA facilities to
     improve overall capacity utilization.  Severance related
     charges of US$1.9 million have been recorded in 2006; all
     of which was recorded in the second quarter of 2006.

  -- In June 2006, the company disclosed the proposed closing of
     its manufacturing facility in Llanelli, United Kingdom. The
     118,000 square-foot plant makes automotive cable control
     systems and currently employs approximately 270 people. The
     company is currently in the consultation process with
     Llanelli's AMICUS trade union concerning the proposed
     closing, and therefore have not determined if the plant
     will in fact be closed.  Other restructuring charges of
     US$0.2 million have been recorded in the second quarter of
     2006.

  -- The company incurred year-to-date 2006 severance related
     charges of US$0.2 million for one of its Spanish
     facilities, recorded during the second quarter of 2006.

  -- The company has notified in July 2006 at its LaGrange,
     Indiana plant that it is closing the facility.  The plant,
     which currently employs approximately 270 people,
     manufactures a variety of window systems for the recreation
     vehicle, mass transit and heavy truck markets.  Production
     of the window systems will be transferred to other
     production facilities.  The company is currently in
     negotiations with the respective union concerning severance
     and have not yet determined the charge.

  -- The company incurred year-to-date Lawrenceburg facility
     production movement costs of US$0.5 million, of which
     US$0.3 million was incurred in the second quarter of 2006;

  -- In 2004, the company disclosed a plan to exit its
     Brookfield, Missouri, facility and combine the business
     with other operations.  This action is complete and      
     resulted in year-to-date 2006 total charges of
     US$0.1 million, which was recorded during the second
     quarter of 2006.  In 2005, the company incurred charges of
     US$0.9 million.

  -- During the fourth quarter of 2005, the company began the
     streamlining of a North American plant that will be
     completed in 2007.  Certain employee severance related
     charges totaling US$1.4 million were incurred, of which
     US$1.3 million was recorded in the fourth quarter of 2005.
     Additional severance related charges of US$0.1 million were
     recorded in the second quarter of 2006.

  -- During the third quarter of 2005, the company disclosed a
     plan to streamline an Einbeck, Germany, manufacturing
     operation.  This action is substantially completed and
     resulted in no severance cost in 2006.

  -- During the second quarter of 2005, the company disclosed a
     plan to streamline a Plettenberg, Germany, manufacturing
     operation during 2005 and 2006.  In the third quarter of
     2005, the company received approval for this action from
     the appropriate Workers' Council and Union.  Full
     identification of the actual employees has been
     substantially completed.  Total severance costs of
     US$4.4 million are expected upon final identifications of
     all applicable employees.  Approximately US$3.6 million has
     already been recorded, including US$0.4 million for the six
     months ended July 2, 2006.

  -- During the first quarter of 2005, the company reported a
     plan to centralize its enterprise resource planning systems
     and centralize many of its functional operations to better
     align with current business levels.  These actions are
     ongoing domestically as the company continues to migrate
     its operations.  The company is unable to estimate future
     severance costs as applicable employees have not been
     identified.  Approximately US$1.3 million of severance
     related charges were incurred in 2005.  No additional costs
     have been incurred for the six months ended July 2, 2006.  
     The company has not formalized the total impact to its
     international operations, since meaningful migration and
     centralization will not begin until late 2006.  The company
     does expect that upwards of 200 individuals could be
     impacted.  The company has not yet specifically identified
     which individuals or group of individuals will be impacted,
     or in which international locations they reside.  
     Therefore, the company is not able to estimate the
     termination liability impact at this time.  The company
     does not expect, however, that the international
     termination costs for this action will exceed the related
     estimate for U.S. operations.

On July 27, 2006, the company also disclosed plans to reduce its
indirect workforce by 510 individuals in addition to the
previously announced "50-cubed" operational restructuring plan.
The rationale for this workforce reduction is to more
appropriately align indirect workforce with current sales
volumes.  The company anticipates having this goal accomplished
by the end of 2006.

                     About DURA Automotive

Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent  
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.

The company has three locations in Asia, namely in China, Japan
and Korea.

                          *     *     *

Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.


INTERSERVE: Suspends Senior Staff Over Accounting Irregularities
----------------------------------------------------------------
Support services group Interserve PLC has suspended six senior
staff in its industrial services unit after discovering
accounting irregularities that will result in a GBP25-million
reduction in net assets in its interim results, Lifestyle Extra
reports.

The Daily Telegraph reported that the suspected accounting
irregularities go back five years, uncovered only after internal
reviews following the organisational restructuring and board
change announced on July 20, 2006.

Interserve also said that it has launched an independent
forensic review and an operational and strategic review of the
industrial services business, with the help of KPMG and law firm
Linklaters.

                    About Interserve Plc

Interserve -- http://www.interserveplc.co.uk/-- is a services,  
maintenance and building group.  The company provides services
across the whole life of many types of buildings and
infrastructure such as hospitals, schools, offices, industrial
plant, bridges, waterworks or roads.  We offer our services at
each stage of the asset lifecycle: building, equipment hiring,
maintenance and replacement and operations support.

The company has operations in Korea, Australia, New Zealand,
Hong Kong, and the Philippines.


PHOTRONICS INC: Earns US$4.6 Million in Quarter Ended July 30
-----------------------------------------------------------
Photronics, Inc.'s net income for the third quarter of fiscal
2006 ended July 30, 2006 amounted to US$4.6 million, compared to
the prior year's third quarter net income of US$14.8 million.  
Net income for the third quarter of 2006 included a charge of
US$1.8 million after tax in connection with the restructuring of
the company's operations in North America.

Sales for the quarter were US$108.2 million, down 5.9%, compared
to US$114.9 million for the third quarter of 2005.  
Semiconductor photomasks accounted for US$87.2 million or 80.6%
of revenues during the third quarter of fiscal 2006, while sales
for flat panel display photomask sets accounted for US$21
million or 19.4%.

Net income for the first nine months of fiscal 2006 amounted to
US$19.5 million, compared to the prior year's first nine months
net income of US$29.9 million.

Sales for the first nine months of 2006 were US$339.6 million,
up 3.2% from the US$329 million for the first nine months of
fiscal 2005.  Semiconductor photomasks accounted for
US$264.5 million or 77.9% of revenues during the first nine
months of fiscal 2006, while sales for FPD photomask sets
accounted for US$75.1 million or 22.1%.

A market driven slowdown in FPD business impacted the company's
performance during the quarter.  In the semiconductor business,
the company's performance was largely in line with expectations
across all three regions it serves, as the Photronics team
continues to execute the company's strategic plan," commented
Michael J. Luttati, Chief Executive Officer.

"We expect conditions in our FPD business to begin improving
over the next several months and are already seeing signs of
improvement.  Furthermore, we were encouraged that even in this
difficult environment, Photronics outperformed its competitors,
gaining market share by leveraging our unique technology and
service leadership advantage.  It is this type of performance
which illustrates how our global team has embraced the strategic
priorities of profitable technology leadership; tighter global
integration and market share leadership.  We remain committed to
achieving these goals."

Photronics, Inc. -- http://www.photronics.com/-- is a worldwide  
manufacturer of photomasks.  Photomasks are high precision
quartz plates that contain microscopic images of electronic
circuits.  A key element in the manufacture of semiconductors
and flat panel displays, photomasks are used to transfer circuit
patterns onto semiconductor wafers and flat panel substrates
during the fabrication of integrated circuits, a variety of flat
panel displays and, to a lesser extent, other types of
electrical and optical components.  They are produced in
accordance with product designs provided by customers at
strategically located manufacturing facilities in Europe, North
America, and Asia --specifically Korea, Taiwan, and Singapore.

                          *     *     *

Photronics carry Moody's B1 rating and Standard & Poor's BB-
Corporate Credit Rating.


WARNACO GROUP: S&P Affirms BB- Corporate Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on The
Warnaco Group Inc.'s ratings to stable from positive.  At the
same time, the ratings on Warnaco were affirmed, including its
'BB-' corporate credit rating.  Total debt outstanding at
April 1, 2006, was about US$431 million.

"The outlook revision follows the company's announcement that it
will restate its financial statements for the fiscal year ended
December 2005 and the first quarter of 2006 ended April 1, 2006,
as a result of certain irregularities and errors related to its
accounting for returns and vendor allowances at its Chaps
menswear division," said Standard & Poor's credit analyst Susan
H. Ding.

The financial impact of these restatements will not
significantly affect credit protection measures.  However, the
company needs to restate its financial statements due to
accounting irregularities and an error related to the company's
SAP implementation in its swimwear division.  These items will
result in reported material weaknesses for its financial
statements.  In addition, Warnaco needs to seek waivers for
certain technical defaults under its credit agreement.

The ratings on New York, N.Y.-based Warnaco reflect:

   -- its participation in a highly competitive and promotional
      retail environment,

   -- its concentration in the slower-growing department store
      channel, and

   -- its exposure to fashion risk in some of its business
      segments.

The ratings also incorporate the operating risk associated with
reinvigorating the company's various product offerings and the
integration risk related to the company's acquisition of the
Calvin Klein businesses in Europe and Asia.  Furthermore, the
ratings reflect Warnaco's positive operating momentum and its
well-recognized brand names.

Warnaco manufactures and markets men's and women's intimate
apparel, underwear, and sportswear (including jeans, khakis, and
swimwear).  Products are sold under owned and licensed names
such as Olga, Warner's, Anne Cole, Ocean Pacific, Speedo, Chaps,
and Calvin Klein, among others.  Some of Warnaco's core products
are characterized by relatively stable demand.

Standard & Poor's expects Warnaco to maintain credit measures
that are stronger than the medians for the current rating, given
the company's business challenges.  Still, if the company can
improve and sustain financial results in the intermediate term,
including reducing debt leverage, the outlook may be revised
back to positive.  However, if the company is not able to
sustain its operating momentum and engages in share repurchases
or additional acquisitions, or if the company faces integration
problems, or if further restatements or adjustments are found
upon the completion of the internal accounting investigation,
the ratings and outlook would be reviewed.


WARNACO GROUP: Barington Group Acquires 5.6% of Common Stock
------------------------------------------------------------
The Barington Group has filed a Schedule 13D with the United
States Securities and Exchange Commission disclosing that it now
collectively holds approximately 5.6% of the common stock of The
Warnaco Group, Inc.

The Barington Group consists of Barington Capital Group, L.P.,
Ramius Capital Group, L.L.C. and various other affiliated
entities.

In its Schedule 13D filing with the US Securities and Exchange
Commission, Barington stated that it believes Warnaco to be
undervalued and that it wishes to engage in discussions with the
company's senior management concerning measures that it believes
will improve shareholder value for the benefit of the company's
stockholders.

In its filing, Barington said such measures include, but are not
limited to:

   -- the improvement in execution by the Company's senior
      management team and oversight provided by its Board of
      Directors in light of what Barington believes to be a
      string of recent operating disappointments stemming from

     (a) the recently announced financial restatement caused
         by accounting issues at the Company's Chaps division
         and swimwear segment, and the resulting Securities and
         Exchange Commission informal inquiry,

     (b) disruptions and excess costs associated with poor
         implementation of SAP at the Company's swimwear
         segment, and

     (c) missed revenue growth and gross margin targets;

   -- a substantial reduction in equity grants, including stock
      options and restricted stock, which have averaged 5.0%
      annually or a staggering 17.6% cumulatively of the
      company's shares outstanding over the past three and
      one-half fiscal years;

   -- the improvement in gross and EBITDA margins, which
      currently trail peer averages by approximately 800 and 600
      basis points, respectively, through a reduction in SG&A
      and corporate expenses and better merchandising;

   -- the disposition of non-core brands and licenses,
      especially in underperforming divisions of the Company's
      intimate apparel and swimwear segments; and

   -- the exploration of alternatives, including, without
      limitation, the possible sale of the Company.

            About Barington Capital Group, L.P.

Based in New York, Barington Capital Group, L.P. is an
investment management firm that primarily invests in
undervalued, small and mid-capitalization companies.  Barington
and its principals are experienced value-added investors who
have taken active roles in assisting companies in creating or
improving shareholder value.

             About Ramius Capital Group, L.L.C.

Ramius Capital Group, L.L.C. is a registered investment advisor
that manages assets of US$7.3 billion in a variety of
alternative investment strategies.  Ramius Capital Group,
through its wholly-owned subsidiary, Admiral Advisors, LLC,
advises funds that invest primarily in the securities of U.S.
public companies that are believed to be undervalued.   

                     About Warnaco Group

Headquartered in New York, The Warnaco Group, Inc. --
http://www.warnaco.com/-- is a leading apparel company engaged  
in the business of designing, marketing and selling intimate
apparel, menswear, jeanswear, swimwear, men's and women's
sportswear and accessories under such owned and licensed brands
as Warner's(R), Olga(R), Lejaby(R), Body Nancy Ganz(tm),
Speedo(R), Anne Cole(R), Op(R), Ocean Pacific(R), Cole of
California(R) and Catalina(R) as well as Chaps(R) sportswear and
denim, J. Lo by Jennifer Lopez(R) lingerie, Nautica(R) swimwear,
Michael Kors(R) swimwear and Calvin Klein(R) men's and women's
underwear and sportswear, men's, women's, junior women's and
children's jeans and accessories and women's and juniors'
swimwear.  The company emerged from bankruptcy protection in
2003.  Its Authentic Fitness unit is the North American
distributor of Speedo swimwear.  In 2003 the last two US-based
manufacturing facilities were closed and production shifted to
Honduras, Mexico, and Asia.  In 2006 it acquired the license,
wholesale, and retail units for Calvin Klein jeans and
accessories in Europe and Asia.

                          *     *     *

Standard & Poor's Ratings Services revised on Aug. 11, 2006, its
outlook on The Warnaco Group, Inc.'s ratings to stable from
positive.  At the same time, the ratings on Warnaco were
affirmed, including its 'BB-' corporate credit rating.  Total
debt outstanding at April 1, 2006, was about US$431 million.


WARNACO GROUP: Restating 2005 Reports Due to Accounting Errors
--------------------------------------------------------------
The Audit Committee of Warnaco Group, Inc.'s Board of Directors
has concluded that the company will restate its previously
reported financial statements for its fiscal year ended Dec. 31,
2005, and first fiscal quarter ended April 1, 2006.

The restatements are required as a result of certain
irregularities and errors discovered by the company during the
company's second quarter closing review.  The irregularities
primarily relate to the accounting for certain returns and
vendor allowances at its Chaps menswear division.  These matters
were reported to the company's Audit Committee, which engaged
outside counsel, who in turn retained independent forensic
accountants, to investigate and report to the Audit Committee.   
Based on information obtained in that investigation, and also to
correct for an error that resulted from the implementation of
its new systems infrastructure at its Swimwear Group in the
first quarter of fiscal 2006, and certain immaterial errors, the
Audit Committee has accepted management's recommendation that
the Company restate its financial statements.

Warnaco intends to file an amended annual report for the fiscal
year ended December 31, 2005, and an amended quarterly report
for the quarter ended April 1, 2006, with the US Securities and
Exchange Commission.  Until these restated financial statements
are filed with the SEC, neither the company's consolidated
financial statements for the fiscal year ended December 31,
2005, and the related reports of the company's independent
registered public accounting firm, nor the company's
consolidated financial statements for the first fiscal quarter
ended April 1, 2006, should be relied upon.  The company has
discussed the matters relating to the accounting irregularities
and errors with Deloitte & Touche LLP, the company's independent
registered public accounting firm and is filing a Form 8-K with
the SEC in connection with its restatement decision.

Warnaco expects that the effect of the restatement for the
fiscal year ended December 31, 2005, will be to reduce reported
net income from continuing operations per diluted share from
US$1.12 to between approximately US$1.05 and US$1.07 per diluted
share, and for the first fiscal quarter ended April 1, 2006 to
reduce reported net income per diluted share from US$0.34 to
between approximately US$0.28 and US$0.30 per diluted share.

Warnaco believes that the matters causing the restatements have
been identified and that management has taken appropriate
corrective action.  However, because the Audit Committee and its
advisors have not fully completed their investigation, the
company's analysis of the restatement adjustments has not been
finalized.  Accordingly, the estimated restatement amounts
disclosed above remain preliminary, unaudited and subject to
adjustment, possibly by amounts that could be material
individually or in the aggregate.  In addition, it is possible
that the company may identify additional new issues which could
also impact its previously issued financial statements and the
scope of the restatements described in this press release.  In
the event that new issues requiring restatement arise, it is
possible that such additional adjustments could be material
individually or in the aggregate.

Additionally, in connection with Warnaco's investigation, three
employees in the Chaps menswear division, who are not "Executive
Officers" as defined by the rules of the SEC, have either
resigned or been terminated.

"Warnaco is committed to maintaining an internal culture and
external reputation for practicing the highest standards in all
of our business affairs and has zero tolerance for violations of
our Code of Business Conduct and Corporate Ethics," Joe Gromek,
Warnaco's President and Chief Executive Officer, said.  "We are
deeply disappointed by the recent events at our Chaps menswear
division and believe, based on information provided to date by
the outside counsel to the Audit Committee and forensic
accountants, that the inappropriate behavior was confined to
that division.  We remain confident in the potential of our
brands and the prospects for our businesses."

Warnaco has evaluated the impact of the restatements of the
previously issued financial statements on the company's
assessments of the effectiveness of its internal control over
financial reporting as of the applicable periods, and concluded
that material weaknesses existed in the company's internal
control over financial reporting for the second and first fiscal
quarters of 2006 and the fiscal year ended December 31, 2005.

A material weakness, as defined by the Public Company Accounting
Oversight Board, is a control deficiency, or combination of
control deficiencies, that results in more than a remote
likelihood that a material misstatement of the annual or interim
financial statements will not be prevented or detected.  Based
on this definition, restatement of financial statements in prior
filings with the SEC is a strong indicator of the existence of a
"material weakness" in the design or operation of internal
control over financial reporting.

In connection with the restatements, Warnaco is seeking a waiver
of certain technical defaults under its credit agreement.   

Although no assurances can be given, based on conversations with
the agent for the lenders, the company is confident that it will
obtain the waiver in a timely fashion.

                     About Warnaco Group

Headquartered in New York, The Warnaco Group, Inc. --  
http://www.warnaco.com/-- is a leading apparel company engaged  
in the business of designing, marketing and selling intimate
apparel, menswear, jeanswear, swimwear, men's and women's
sportswear and accessories under such owned and licensed brands
as Warner's(R), Olga(R), Lejaby(R), Body Nancy Ganz(tm),
Speedo(R), Anne Cole(R), Op(R), Ocean Pacific(R), Cole of
California(R) and Catalina(R) as well as Chaps(R) sportswear and
denim, J. Lo by Jennifer Lopez(R) lingerie, Nautica(R) swimwear,
Michael Kors(R) swimwear and Calvin Klein(R) men's and women's
underwear and sportswear, men's, women's, junior women's and
children's jeans and accessories and women's and juniors'
swimwear.  The company emerged from bankruptcy protection in
2003.  Its Authentic Fitness unit is the North American
distributor of Speedo swimwear.  In 2003 the last two US-based
manufacturing facilities were closed and production shifted to
Honduras, Mexico, and Asia.  In 2006 it acquired the license,
wholesale, and retail units for Calvin Klein jeans and
accessories in Europe and Asia.

                          *     *     *

Standard & Poor's Ratings Services revised on Aug. 11, 2006, its
outlook on The Warnaco Group, Inc.'s ratings to stable from
positive.  At the same time, the ratings on Warnaco were
affirmed, including its 'BB-' corporate credit rating.  Total
debt outstanding at April 1, 2006, was about US$431 million.


WARNACO: Net Revenues Up 20.5% to US$451.6M in Second Quarter
-------------------------------------------------------------
The Warnaco Group, Inc., reported results for the second quarter
ended July 1, 2006.

         Highlights for the Second Quarter of Fiscal 2006:

   -- Net revenues increased 20.5% to US$451.6 million, compared
      with US$374.7 million in the second quarter of fiscal
      2005;

   -- Gross profit margin was 35.1% of net revenues, compared
      with 30.2% in the second quarter of fiscal 2005;

   -- Operating income declined to US$14.0 million, compared
      with US$15.6 million in the second quarter of fiscal 2005;
      and

   -- Net income was US$3.4 million, or US$0.07 per diluted
      share, compared with US$6.3 million, or US$0.14 per
      diluted share in the second quarter of fiscal 2005.

Warnaco notes that fiscal 2006 second quarter results include
the operations of the Calvin Klein Jeans and related businesses
in Europe and Asia or the CKJEA Business, which were acquired on
January 31, 2006.  Excluding the CKJEA Business, net revenues
increased 3.5% to US$387.9 million, compared with
US$374.7 million in the prior year quarter, and operating income
was US$15.0 million compared with US$15.6 million in the prior
year quarter.  For the second quarter, net revenues from the
CKJEA Business were US$63.7 million and operating losses were
US$1.0 million (including US$2.6 million of amortization
expense).

"Contributions from certain pre-acquisition businesses and a
smaller than expected loss at the CKJEA Business resulted in the
better than anticipated second quarter results," said Joe
Gromek, Warnaco's President and Chief Executive Officer.  "The
Intimate Apparel Group, led by Calvin Klein Underwear and
Warner's, continued its positive momentum from the first quarter
and delivered significant increases in gross profit and
operating income.  Speedo also delivered strong sales growth and
substantial improvements in profitability.  Unfortunately, this
positive performance was substantially offset by the poor
performance of the Sportswear Group.  Significantly higher
dilution at Chaps due to higher markdown allowances compared
withthe prior year period and the shift in timing of certain
membership club sales negatively affected the Sportswear
segment."

Mr. Gromek continued, "We continue to believe the development of
our global wholesale and retail platform positions us to achieve
our long term revenue and operating income targets.   
Additionally, with the acquisition of the CKJEA Business, which
is surpassing our performance expectations, we believe our
international businesses, which generate operating margins well
above the Company average, will account for approximately 40% of
our fiscal 2006 revenues."

                        Restatement

Warnaco will be restating its previously reported financial
statements for its fiscal year ended December 31, 2005, and
first fiscal quarter ended April 1, 2006.  The restatements are
required as a result of certain irregularities discovered by the
company during its second quarter closing review and certain
other errors.  The irregularities primarily relate to the
accounting for certain returns and customer allowances at the
company's Chaps menswear division.  These matters were reported
to the company's Audit Committee, which engaged outside counsel,
who in turn retained independent forensic accountants, to
investigate and report to the Audit Committee.  Based on
information obtained in that investigation, and also to correct
for an error that resulted from the implementation of Warnaco's
new systems infrastructure at the Swimwear Group in the first
quarter of fiscal 2006, and certain immaterial errors, the Audit
Committee accepted management's recommendation that the Company
restate its financial statements.

"We are deeply disappointed by what occurred at our Chaps
menswear division," concluded Mr. Gromek.  "However, the
investigation, which is now substantially complete, did not
reveal any inappropriate activity outside of that division.  In
spite of what happened, Chaps remains an important brand in our
portfolio with strong brand equity and consumer loyalty and we
expect Chaps to contribute to Warnaco's profitability in fiscal
2006 and beyond."

            Second Quarter Operating Highlights

Second quarter net revenues increased 20.5% to US$451.6 million,
including US$63.7 million in revenues from the CKJEA Business.  
Intimate Apparel Group net revenues increased 6.9% compared with
the prior year, reflecting continued positive consumer response
to Calvin Klein Underwear and Warner's.  Swimwear Group net
revenues increased 17.6% compared with the prior year period
driven by Speedo, Michael Kors and Calvin Klein.  Sportswear
Group net revenues (excluding the CKJEA Business) declined
13.4%, reflecting among other things the significantly higher
dilution at Chaps, the timing shift of certain sales to
membership clubs to the second half of the year and a decline in
off-price sales year over year.  The increase in net revenues
for the second quarter of fiscal 2006 includes approximately
US$2.5 million related to the translation of foreign currencies,
primarily as a result of a stronger euro and Canadian dollar
relative to the second quarter of fiscal 2005.

Gross profit was US$158.4 million, or 35.1% of net revenues,
including US$35.2 million in gross profit from the CKJEA
Business, compared withUS$113.0 million, or 30.2% of net
revenues, for the second quarter of fiscal 2005.  The 490 basis
point improvement in gross profit margin was the result of

   (i) the strong gross profit margins of the acquired CKJEA
       Business,

  (ii) improvements in Swimwear gross profit margins, and

(iii) improved product mix and more full price sales from the
       Intimate Apparel Group partially offset by declines in
       Chaps gross profit margin due to an incremental
       US$7.5 million in markdown allowances compared with the
       prior year period.

Gross profit for the second quarter of fiscal 2006 includes
approximately US$1.0 million related to the translation of
foreign currencies, primarily as a result of a stronger euro and
Canadian dollar relative to the second quarter of fiscal 2005.

Selling, general and administrative expenses were
US$140.4 million, or 31.1% of net revenues, compared with
US$95.3 million, or 25.4% of net revenues, for the prior year
quarter.  The increase in SG&A included:

   (i) US$33.7 million from the CKJEA Business,

  (ii) US$6.3 million of incremental Swimwear Group expense
       primarily related to continued investment in Ocean
       Pacific brands and increased marketing and severance
       expense,

(iii) US$5.1 million resulting from an increased percentage of
       the Company's revenues generated from higher SG&A
       businesses, including international and retail; and

  (iv) US$1.6 million of incremental corporate information
       technology expenses primarily associated with the
       implementation of the new systems infrastructure.

SG&A was negatively affected by approximately US$0.4 million
related to the translation of foreign currencies, primarily as a
result of a stronger euro and Canadian dollar relative to the
second quarter of fiscal 2005.

Amortization of intangible assets was US$4.0 million, compared
with US$1.1 million in the prior year period, primarily due to
an increase of US$2.6 million in intangible assets associated
with the acquisition of the CKJEA Business.

Operating income for the second quarter of fiscal 2006 was
US$14.0 million, including a loss of US$1.0 million from the
CKJEA Business, compared withUS$15.6 million in the prior year
period.  The strong operating profits from the Intimate Apparel
Group were offset by disappointing results in the Sportswear
Group, the seasonal weakness of the CKJEA Business and higher
expenses in the Swimwear Group.  Operating income for the second
quarter of fiscal 2006 includes approximately US$0.6 million
related to the translation of foreign currencies, primarily as a
result of a stronger euro and Canadian dollar relative to the
second quarter of fiscal 2005.

Other income was US$0.8 million, compared with a loss of
US$0.9 million in the prior year quarter related primarily to
foreign exchange rate gains on the current portion of inter-
company loans denominated in foreign currencies.

Net interest expense increased to US$9.4 million compared
withUS$4.5 million in the prior year period.  The US$4.9 million
increase is primarily the result of incremental indebtedness
incurred in connection with the acquisition of the CKJEA
Business.

Net income was US$3.4 million, or US$0.07 per diluted share,
compared with US$6.3 million, or US$0.14 per diluted share, for
the second quarter of fiscal 2005, which reflects the continued
strength in Intimate Apparel substantially offset by the
disappointing performance of the Sportswear Group.

       Balance Sheet Highlights as of July 1, 2006

Cash and cash equivalents were US$138.4 million, compared with
US$153.9 million of cash and cash equivalents at July 2, 2005,
notwithstanding the approximately US$70.8 million of cash (net
of acquired cash) used in connection with the acquisition of the
CKJEA Business on January 31, 2006.

In addition, during the quarter Warnaco used approximately
US$12.2 million of cash to repurchase 675,000 shares of common
stock under the company's previously announced share repurchase
program, at an average price of US$18.05.  Approximately 2.3
million shares remain authorized for repurchase under the share
repurchase program.  The share repurchase program may be
modified or terminated by the company's Board of Directors at
any time.

Accounts receivable were US$278.7 million, up from
US$204.2 million at July 2, 2005.  Accounts receivable related
to the CKJEA Business were US$55.5 million.  Receivables,
excluding the CKJEA Business, were up 9.3% in the quarter.

Net inventories were US$311.0 million, up from US$277.3 million
at July 2, 2005.  Inventories at July 1, 2006 include
US$44.6 million of inventory of the CKJEA Business and a
US$6.5 million increase in Swimwear inventory, for which the
company believes it is appropriately reserved.  Excluding the
CKJEA Business, inventories were down 3.9%, which reflects the
company's continued discipline related to planning and inventory
management.

                    Fiscal 2006 Outlook

Larry Rutkowski, Warnaco's Chief Financial Officer commented,
"Although the restatement we announced on August 8, 2006 will
lower fiscal 2005 results, our forward guidance continues to be
based upon fiscal 2005 results prior to giving effect to the
restatement.  For the year we continue to expect our pre-
acquisition business revenue growth to be in the low single
digits.  In addition, for our pre-acquisition businesses, we
continue to expect at least a 100 basis point improvement in
gross margin percentage and mid single digit percentage
improvement in the operating margin percentage over the prior
year (assuming minimal pension expense in fiscal 2006)."

Mr. Rutkowski concluded, "Overall, for the company (including
the acquired CKJEA Business), we continue to expect revenue
growth in 2006 to be at least in the low 20 percent range; mid
single digit percentage improvement in the operating margin
percentage over the prior year (assuming minimal pension expense
in fiscal 2006); and that the acquisition of the CKJEA Business
will be accretive to Warnaco's 2006 earnings per share."

                     Subsequent Events

In August 2006, Warnaco received a favorable ruling from the
Netherlands taxing authority relating to the company's European
operations.  The ruling, which is retroactive to the beginning
of 2006, is expected to have a positive impact on the company's
effective tax rate for fiscal 2006 and beyond.

                     About Warnaco Group

Headquartered in New York, The Warnaco Group, Inc. --  
http://www.warnaco.com/-- is a leading apparel company engaged  
in the business of designing, marketing and selling intimate
apparel, menswear, jeanswear, swimwear, men's and women's
sportswear and accessories under such owned and licensed brands
as Warner's(R), Olga(R), Lejaby(R), Body Nancy Ganz(tm),
Speedo(R), Anne Cole(R), Op(R), Ocean Pacific(R), Cole of
California(R) and Catalina(R) as well as Chaps(R) sportswear and
denim, J. Lo by Jennifer Lopez(R) lingerie, Nautica(R) swimwear,
Michael Kors(R) swimwear and Calvin Klein(R) men's and women's
underwear and sportswear, men's, women's, junior women's and
children's jeans and accessories and women's and juniors'
swimwear.  The company emerged from bankruptcy protection in
2003.  Its Authentic Fitness unit is the North American
distributor of Speedo swimwear.  In 2003 the last two US-based
manufacturing facilities were closed and production shifted to
Honduras, Mexico, and Asia.  In 2006 it acquired the license,
wholesale, and retail units for Calvin Klein jeans and
accessories in Europe and Asia.

                          *     *     *

Standard & Poor's Ratings Services revised on Aug. 11, 2006, its
outlook on The Warnaco Group, Inc.'s ratings to stable from
positive.  At the same time, the ratings on Warnaco were
affirmed, including its 'BB-' corporate credit rating.  Total
debt outstanding at April 1, 2006, was about US$431 million.



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

ANTAH HOLDINGS: June 30 Balance Sheet Shows Insolvency
------------------------------------------------------
Antah Holdings Berhad has submitted for public release its
financial report for the fourth quarter ended June 30, 2006.

For the quarter ended June 30, 2006, the group recorded
consolidated revenue of MYR12.4 million and consolidated losses
before taxation of MYR8.1 million mainly due to provision for
doubtful debts on other debtors of the subsidiaries amounting to
MYR13.8 million which the recoverability is in doubt and high
finance costs of MYR5.1 million.

The impact of the losses is however mitigated by the share in
profit of an associate company and other income derived from
write back of short term investments.

The group registered lower revenue of MYR12.4 million and
consolidated losses before taxation of MYR8.1 million for the
fourth quarter of 2006 compared to MYR37.6 million and
MYR28.2 million respectively with the corresponding preceding
quarter.

The 39% reduction in revenue is mainly due to the completion of
the disposal of healthcare division in September 2005 whereby
the result of this division is no longer be consolidated in
Antah's group accounts.

Despite a decrease in revenue, the company recorded lower losses
before taxation of 70% compared to the corresponding preceding
quarter.  This is mainly due to less provisions made during the
quarter under reviewed compared to major provision such as
provision for corporate guarantee liabilities of MYR9.7 million,
impairment losses on goodwill of MYR8.2 million, impairment
losses on property plant and equipment of MYR7.7 million and
also incurred losses on termination of joint venture of
MYR8.1 million in the preceding quarter.

As of June 30, 2006, the group's balance sheet revealed strained
liquidity with MYR88.726 million in current assets available to
pay MYR615.161 million in current liabilities.  The group has a
net current deficit of MYR526.435 million.  The balance sheet
also showed total assets of MYR678.492 million and total
liabilities of MYR1.039 billion, resulting into a shareholders'
deficit of MYR361.167 million.

There was no dividend recommended for the quarter under review.

Antah Holdings' Fourth Quarter Report and its accompanying notes
are available for free at:

http://bankrupt.com/misc/tcrap_antahholdings090506.xls
http://bankrupt.com/misc/tcrap_antahholdingsnotes090506.doc
http://bankrupt.com/misc/tcrap_antahholdingsnotes2090506.doc

                       About Antah Holdings

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

The Company's balance sheet as of June 30, 2006, showed total
assets of MYR678.492 million and total liabilities of
MYR1.039 billion, resulting into a shareholders' deficit of
MYR361.167 million.

The Company's default on its credit facilities totaled
MYR286,442,000, as of April 30, 2006.


BUKIT KATIL: Updates on Financial Regularization Plan
-----------------------------------------------------
Bukit Katil Resurces Berhad disclosed on August 30, 2006, that
there have been no other material developments in respect of its
plan to regularize its financial position, except that the
company's securities will be delisted from the main market of
the Official List of Bursa Malaysia Securities Bhd with effect
from September 5, 2006.

As reported by the Troubled Company Reporter - Asia Pacific on
August 25, 2006, Bukit Katil Resources Berhad's securities was
scheduled to be removed from the Official List of Bursa Malaysia
Securities Berhad on September 5, 2006, as the company does not
have an adequate level of financial condition to warrant
continued listing at the Bourse.

                        About Bukit Katil

Headquartered in Kuala Lumpur, Malaysia, Bukit Katil Resources
Berhad is engaged in money lending and oil palm and rubber
production.  Other activities include investment holding,
software development, property investment and development and
manufacturing of bricks and ceramic products.  Operations are
carried out in Malaysia and India.  The Company has defaulted on
several loan facilities and admits that it does not have
sufficient cash to pay its debts.

As of December 31, 2005, the Company recorded a deficit of
MYR129,981,000.  The Company, on December 16, 2005, presented an
application to regularize its financial condition through debt
restructuring, which was subsequently rejected by the Securities
Commission.

As of March 31, 2006, the Company's balance sheet showed
MYR57,148,000 in total assets and MYR135,320,000 in total
liabilities, resulting in a stockholders' equity deficit of
MYR78,172,000.


FEDERAL FURNITURE: SC Grants Exemption from Mandatory Offer
-----------------------------------------------------------
The Securities Commission, on August 28, 2006, approved the
application for an exemption from mandatory offer obligation for
the remaining voting shares in Federal Furniture Holdings to
Choy Fook On & Sons Realty Sdn Bhd and associated parties.

Pursuant to the SC's approval, Choy Fook On and its associates
are required at all times to disclose to the SC all acquisitions
or purchases of the voting shares of Federal Furniture made by
them in a 12-month period from August 28, 2006, being the date
of the granting of the exemption.

                     About Federal Furniture

Headquartered in Selangor Darul Ehsan Malaysia Federal Furniture
Holdings Bhd -- http://www.federal-furniture.com/-- is a listed  
company on the Kuala Lumpur Stock Exchange and is Malaysia's
premier furniture and interior design group.  It consists of
companies in all the main sectors of the furniture-related
industries, from manufacturing, marketing, exporting, contract
furnishing and interior design to retail.

On June 24, 2004, the Board of Directors of Federal Furniture
has proposed a capital reduction, a share premium reduction,
rights issue with warrants and a debt settlement scheme with
some of its financial institution lenders to restructure and
settle a substantial part of its total bank borrowings.  On July
5, 2006, the Company submitted its Regulkarization Plan to Bursa
Malaysia Securities Berhad for approval.

As of March 31, 2006, the Company's balance sheet showed total
assets of MYR145,551,934 and total liabilities of
MYR151,217,536, resulting into a shareholders' deficit of
MYR5,665,602.


MULTI-USAGE HOLDINGS: Loss Drops to MYR220,000 in 2nd Quarter
-------------------------------------------------------------
Multi-Usage Holdings Berhad has released its unaudited financial
report for the second quarter ended June 30, 2006.

For the current financial period, the group's revenue has
decreased by approximately 40% or approximately MYR4.89 million
as compared to the preceding year corresponding period.  The
decline in revenue was on all divisions of the group.  The
progress of the on-going property development project has been
slow and thus, recording a lower progress billings.

Sales of completed properties is higher due to the aggressive
marketing and promotion.  The revenue from these sales has
doubled as compared to the previous year corresponding period.
However, the trading division's revenue was lower than the
preceding year corresponding period due to the decrease in the
quantity of orders mainly due to the higher pricing of the
materials.

At present, the group's contracting division is emphasizing on
internal projects only to ensure higher margin and better
control on quality of developed properties. The Group expects
the revenue from property division to improve in the second half
of the year as the progress development of the on-going project
is expected to accelerate at a faster pace.

The group incurred a loss before tax of MYR0.51 million for the
current period compared to a loss before tax of MYR12.25 million
in the same period last year. The lower loss before tax was
mainly due to the provision made for the crystallization of
corporate guarantee amounting to MYR11.25 million given to
lenders of a former subsidiary company, allowance made for
doubtful debts and amortization of goodwill in the preceding
year corresponding period.

The revenue for the current quarter was higher than the
immediate preceding quarter due to higher revenue generated by
the property division. The revenue is mainly from the sales of
completed properties and progress billings from the present on-
going project.  There is no significant change in the loss
before tax for the current quarter and the quarter ended March
31, 2006.

The group's June 30, 2006, balance sheet showed current weak
liquidity with current assets of MYR42,809,000 available to pay
current liabilities of MYR61,385,000, coming due within the next
12 months.  The group has total assets of MYR88,263,000, total
liabilities of MYR61,705,000 and stockholders' equity of
MYR26,558,000.

There was no dividend declared for during the qaurter under
review.

Mulit-Usage Holdings' Second Quarter Report is available for
free at: http://bankrupt.com/misc/tcrap_multi-usage090506.pdf

                    About Multi-Usage Holdings

Headquartered in Penang, Malaysia, Multi-Usage Holdings Berhad's
principal activities are development of properties, manufacture,
and sale of cement concrete products, cement bricks, hollow
blocks, stones, and all kinds of building materials.  The
Company is also engaged in contracting works for construction
project, provision of management services, hiring of mobile
crane and other heavy equipment, trading of furniture, and
investment holding.  The Group operates predominantly in
Malaysia.

As of March 31, 2006, the Company's auditors expressed doubt on
the Group's financial position and the Company's proposed
restructuring scheme.  According to the auditors, the Company's
ability to go on as a going concern hinges on the implementation
of its restructuring scheme.


MULTI VEST: Fourth Quarter Net Loss Narrows to MYR3 Million
-----------------------------------------------------------
Multi Vest Resources Berhad has filed its financial report for
the fourth quarter ended June 30, 2006, with the Bursa Malaysia
Securities Berhad.

For the quarter under review, the group reported a pre-tax loss
of MYR2,443,000 on revenue of MYR10,315,000, as against a pre-
tax loss of MYR2,732,000 on MYR12,125,000 revenue in the same
quarter last year.

The group registered a net loss of MYR3,044,000 for the quarter
under review compared with a net loss of MYR4,003,000 in the
same quarter last year.  As of June 30, 2006, the group has
accumulated MYR326,752,976 in losses.

The June 30, 2006, balance sheet revealed the group's tight
liquisity position with current assets of MYRMYR6,518,360
available to pay current liabilities of MYR20,255,995, coming
due within the next 12 months.  The group has net current
liabilities of MYR13,737,635.  The group has total assets of
MYR44,014,142, total liabilities of MYR385,953,214 and
stockholders' equity of MYR94,860,113.

There were no dividends paid during the quarter under review.

The group's Fourth Quarter Report and its accompanying notes are
available for free at:

http://bankrupt.com/misc/tcrap_mutivest090506.xls
http://bankrupt.com/misc/tcrap_multivest090506.doc

                   About Multi Vest Resources

Headquartered in Malaysia, Multi Vest Resources Berhad is
engaged in cultivating and processing of oil palm.  Its other
activities include property and investment holding.

The group has been incurring losses continuous losses in the
past five years. As of June 30, 2006, the group has accumulated
MYR326,752,976 of losses.


PROTON HOLDINGS: Rules Out Talks on Sale of Indonesian Plant
------------------------------------------------------------
Proton Holdings Berhad dismissed rumors that it is disposing of
its Cikarang plant in Indonesia, Bernama reports.

The carmaker stressed it has no intention of selling the
Indonesian facility, saying it has plans to maximize the plant's
usage in line with its aim to make Indonesia as one of its
export market, Bernama says.

According to Business Times, Indonesian press reported that
Proton will sell the plant following a change in the Malaysian
Government's policy on car import tariffs.  The reports said
Proton's Indonesian subsidiary, PT Proton Edar, is in talks with
PT Bajaj Auto Indonesia, on the possible sale of the factory.

"The report from Indonesia is inaccurate as we have plans to
ramp up our presence in the country, in both transport as well
as retail markets," Proton's managing director, Syed Zainal
Abidin Syed Mohamed Tahir told Bernama.  "This will require us
to activate our assembly facility as we gain traction with car
sales in Indonesia," he said.

Meanwhile, Commissioner of PT Proton Edar Indonesia, Achmad
Safiun, said the company will work together with Proton Holdings
to make Indonesia as one of Proton's best markets in this
region, The Edge Daily relates.

"We are very proud of the confidence Proton has in Indonesia,"
Mr. Safiun 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.

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.


SATERAS RESOURCES: Books Higher Loss, Lower Turnover in 1Q/FY06
---------------------------------------------------------------
Sateras Resources Berhad submitted for public release its
unaudited financial report for the first quarter ended June 30,
2006.

Turnover for the current reporting quarter was lower at
MYR763,000 as compared with MYR962,000 in the same quarter last
year.   The Group reported a higher loss before taxation of
MYR2,752,000 the quarter ended June 30, 2006, as compared with
MYR2,591,000 in the quarter ended June 30, 2005.  The losses
were due to normal operational activities of the group, which
have not shown any improvement.     
    
The group for this quarter continued to incur losses mainly due
to the interest expenses on outstanding loan, the provision of
penalty interest on tax liabilities and recurring legal expenses
for the numerous litigation cases against Sateras Group.  The
group's accumulated stood at MYR412,064,000 as of June 30, 2006.

As of June 30, 2006, the group has net current liabilities of
MYR131,293,000, resulting from MYR246,110,000 in current
liabilities exceeding current assets of MYR114,817,000.  The
group has total assets of MYR161,093,000 and total liabilities
of MYR263,523,000, resulting into a stockholders' deficit of
MYR102,430,000.

There was no dividend recommended for the period under review.
      
The Company said it will endeavor to exhaust all avenues to
secure the proposed restructuring scheme.

Sateras Resources First Quarter Report and its accompanying
notes are available for free at:

http://bankrupt.com/misc/tcrap_saterasresources090506.xls
http://bankrupt.com/misc/tcrap_saterasresourcesnotes090506.doc
  
                     About Sateras Resources

Headquartered in Kuala Lumpur, Malaysia, Sateras Resources
(Malaysia) Berhad is principally engaged in investment holding
and provision of management and secretarial services.  The
principal activities of its subsidiary companies are that of
property development, investment in real property, investment
holding and educational services.

The Company has been experiencing losses since the Asian
financial crisis in 1997.  As of June 30, 2006, the Company's
financial statements revealed accumulated losses of
MYR412,064,000 and stockholders' deficit of MYR102,430,000.


TALAM CORPORATION: Bourse Suspends Shares Over Wind-Up Action
-------------------------------------------------------------
Talam Corporation Bhd was suspended from trading on Bursa
Malaysia Securities Berhad from September 1, 2006, "until
further notice" due to a wind-up petition served on a wholly
owned subsidiary, Lestari Puchong Sdn Bhd, The Star Online
reveals.

Talam said it would file an appeal with the Court of Appeal
against the High Court's wind-up order, and also an application
for stay of the Official Receiver in exercising his powers as a
liquidator.

"The company wishes to inform that the winding-up order does not
have any material financial impact on the group, and the company
does not suffer any further losses except for legal costs for
both parties," it said.

In a separate announcement, Talam said on Aug 30, 2006, that it
submitted on that day its outstanding annual audited accounts
for the financial year ended Jan 31, 2006. That was the deadline
for submission of the delayed accounts that was originally due
on May 31, or it faced suspension on Bursa Malaysia Securities
Berhad.  The annual accounts have not, however, been posted on
Bursa's Web site.  

                       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
=====================

ATLAS CONSOLIDATED: Berong Nickel Proj. to Start Trial Shipment
---------------------------------------------------------------
Atlas Consolidated Mining and Development Corporation discloses
that its Berong Nickel Project in Palawan Island is progressing
towards production and has now been granted all the permits
necessary for the initial trial bulk metallurgical sample of
30,000 dry metric tons of ore grading around 1.7% nickel.  The
trial shipment is expected to be undertaken in late September or
early October 2006 using local contractors.  Commercial
operations are expected to commence in November or December
2006.

The Palawan Nickel Project is a joint venture between Atlas
Consolidated, UK-based Toledo Mining Corporation plc and
Investika Limited of Australia.

Project development work to enable the safe extraction and
shipment of the bulk sample has progressed rapidly.  Leighton
Contractors (Philippines) Inc., has almost completed the
construction of the temporary causeway; the coastal stockpile
area with associated environmental controls is 50% complete; the
access road to the mine site is being widened to allow two-way
traffic; fuel storage facilities have been erected; and
office/accommodation facilities partly completed.  Further, the
navigational buoys have been manufactured and are ready for
placement along the 50 km ocean approach channel.

As previously reported, an export target of 80,000 to 90,000 dry
metric tons of ore has been set for 2006, 620,000dmt for 2007,
and 1 million dmt for 2008 and beyond.  Actual sales will be
dependent on weather conditions.

The development of the mining operations in an environmentally
responsible and sustainable manner will provide an immediate
benefit to the local communities at Berong, the nearby city of
Quezon, the provincial capital of Puerto Princesa, and the
broader Philippine economy.  Employment opportunities,
education, and skills training, livelihood programs, and
business opportunities will arise and provide a measurable
increase in living standards.

George Bujtor, TMM Chief Executive Officer, commented:

"Whilst further approvals such as the Mineral Production Sharing
Agreement are undergoing final processing, we can confidently
expect full commercial operations to commence before year-end
2006."

As reported in the Troubled Company Reporter - Asia Pacific on
December 7, 2005, Atlas Consolidated Toledo Mining begun site
work on the Berong nickel project after receiving a Temporary
Exploration Permit from the Department of Environment and
Natural Resources.

The TEP allowed fieldwork to be carried out prior to
securing a Mineral Production Sharing Agreement for a direct
shipping operation at Berong in the province of Palawan, the
TCR-AP explained.

The TCR-AP also noted that Toledo Mining, by expending funds and
other consideration, may earn a Joint Venture interest in the
project and in Atlas subsidiary Berong Nickel Corporation.

                    About Atlas Consolidated

Headquartered in Mandaluyong City, Philippines, Atlas
Consolidated Mining and Development Corporation was established
through the merger of assets and equities of three Soriano
controlled pre-war mines, the Masbate Consolidated Mining
Company, IXL Mining Company and the Antamok Goldfields Mining
Company.  The Company is engaged in mineral and metallic mining
and exploration that primarily produces copper concentrates and
gold with silver and pyrites as major by-products.  The
Company's copper mining operations are centered in Toledo City,
Cebu, where two open pit mines, two underground mines and
milling complexes (concentrators) are located.  The Cebu copper
mine ceased operations in 1994.  Activities after the shutdown
were limited to safeguarding and maintaining the property, plant
and equipment at the minesite.  The closure has brought huge
losses to the mining firm.

In January 2004, Atlas decided to rehabilitate the company and
its assets since copper and nickel prices have recovered.

According to a TCR-AP report on June 1, 2006, Atlas reported a
capital deficiency of PHP3.035 billion for the year ended
December 31, 2005.  Moreover the Company's auditor, Jaime F. Del
Rosario, of Sycip Gorres Velayo, raised substantial doubt on the
Company's ability to continue as a going concern.


DEVELOPMENT BANK: Ready to Support Various Projects in Iloilo
-------------------------------------------------------------
The Development Bank of the Philippines recently discussed its
priority projects in Iloilo with Governor Niel Tupas and some
key clients.

DBP President and Chief Executive Officer Reynaldo David says
the state-owned bank wants to increase the share of its loans to
90% of its total loan portfolio as it gears up to become a more
vital partner of the government in nation-building.

Mr. David adds that the DBP is ready to support the various
projects bared by President Gloria Arroyo during her recent
State-of-the-Nation-Address.

Mr. David further says that DBP is putting a premium on its
flagship projects including the Sustainable Logistics
Development Program.

The SLDP aims to improve the infrastructure for the efficient
movement of commodities, and to bring down the cost of goods,
through a modern storage, handling, and transport system.

DBP is also prioritizing projects for public utilities like
power generation, water supply and distribution, and projects
towards country development including schools, hospitals, and
airports.

                           About DBP

Development Bank of the Philippines --
http://www.devbankphil.com.ph/-- is the Philippines's most  
progressive development banking institution, providing for the
medium and long-term financing needs of enterprises, with
emphasis on small and medium-scale industries, particularly in
the countryside.

                          *     *     *

On, September 4, 2006, Fitch Ratings assigned DBP a rating of
'BB-' to DBP's planned hybrid issue of up to US$130 million.  

Standard & Poor's Ratings Services also assigned its 'B+' long-
term issue credit ratings to bank's Tier-I Hybrid Security of up
to US$130 million.  S&P also assigned its 'BB-/B' foreign
currency and 'BB+/B' local currency counterparty credit ratings
to DBP, with a stable outlook.


DEVELOPMENT BANK: Extends PHP10-Mln Credit to Laguna Rural Bank
---------------------------------------------------------------
The Development Bank of the Philippines through the Microfinance
Resource Center has approved a PHP10-million credit line for the
Rural Bank of Mabitac as a qualified microfinance institution
under the DBP Microfinance and SME Programs.

Under an agreement signed recently, a portion of the approved
credit line will be re-lent for the purchase of photovoltaic
solar home systems in Polilio, Panubulan, Jumalig, and
Patnanogan in Quezon Province.  The project aims to benefit
families in the four islands, which remain un-electrified as of
August 28, 2006, by providing them with an adequate, affordable
and reliable energy source.

This lending initiative makes the Rural Bank of Mabitac the
first MFI to avail of a microfinance loan for PV solar home
systems, a microfinance product being made available through the
MFC. Funding will come from the Rural Power Project Facility of
the World Bank.

Through the PHP10-million credit line approved by DBP, the Rural
Bank of Mabitac plans to launch its Kabalikat Loan II Program
for livelihood, including agri-microfinance and PV solar home
system projects.

                  About Rural Bank of Mabitac

Established in 1974, the Rural Bank of Mabitac, Inc., has seven
branches -- one in Infanta, Quezon, and six in areas in Laguna:

   1. Siniloan,
   2. Sta. Maria,
   3. Paete,
   4. Los Banos,
   5. Calamba, and
   6. Cabuyao

The bank is among the top 200 rural and cooperative banks as
ranked by the Bangko Sentral ng Pilipinas (BSP).

                           About DBP

Development Bank of the Philippines --
http://www.devbankphil.com.ph/-- is the Philippines's most  
progressive development banking institution, providing for the
medium and long-term financing needs of enterprises, with
emphasis on small and medium-scale industries, particularly in
the countryside.

                          *     *     *

On, September 4, 2006, Fitch Ratings assigned DBP a rating of
'BB-' to DBP's planned hybrid issue of up to US$130 million.  

Standard & Poor's Ratings Services also assigned its 'B+' long-
term issue credit ratings to bank's Tier-I Hybrid Security of up
to US$130 million.  S&P also assigned its 'BB-/B' foreign
currency and 'BB+/B' local currency counterparty credit ratings
to DBP, with a stable outlook.


DEVELOPMENT BANK: Increases Ventureslink Funding to PHP30 Mln
-------------------------------------------------------------
The Development Bank of the Philippines has granted Ventureslink
International, Inc., an increase in its supplier's funding limit
from PHP15 million to PHP30 million under the DBP Instant
Working Capital facility.

                         About Ventureslink

Ventureslink International, Inc., provides manpower and
management consultancy as well as marketing and promotional
services to firms like Unilever Philippines, Inc., Pilipinas
Shell Petroleum Corporation, Energizer Philippines, Eveready
Philippines, and GMA-7.

                           About DBP

Development Bank of the Philippines --
http://www.devbankphil.com.ph/-- is the Philippines's most  
progressive development banking institution, providing for the
medium and long-term financing needs of enterprises, with
emphasis on small and medium-scale industries, particularly in
the countryside.

                          *     *     *

On, September 4, 2006, Fitch Ratings assigned DBP a rating of
'BB-' to DBP's planned hybrid issue of up to US$130 million.  

Standard & Poor's Ratings Services also assigned its 'B+' long-
term issue credit ratings to bank's Tier-I Hybrid Security of up
to US$130 million.  S&P also assigned its 'BB-/B' foreign
currency and 'BB+/B' local currency counterparty credit ratings
to DBP, with a stable outlook.


* Philippine Economy Continues to Gain Strength Despite Odds
------------------------------------------------------------
According to President Gloria Macapagal Arroyo, the country
continues to gain economic strength and is on the right track of
political stability through solid reforms, which have a
meaningful payback to the Filipino people.

The President says the country sustained its economic strength
from the first quarter up to the second quarter.  The 6.4%
inflation rate, the strong showing of the peso, the 5.5% GDP
growth in the second quarter of 2006, the increase by 14% in OFW
remittances and the improving outlook of credit rating agencies
and reputable international institutions like the Development
Bank of Singapore that forecasts a stronger peso to breach the
P50:1$ all augur well for the country.

The expected target of 5.5% up to 6.1% GDP by the end of the
year is achievable according to the President.

The country's exit from the IMF, the improving revenue
generation, and the massive pump priming into the economy
through the planned super regions is expected to pace the
economic takeoff.

What the country has achieved is noteworthy, the President says
despite the many obstacles it has faced like the rising price of
oil and interest, the close competition in the region, and the
threat of terrorism.

While there are no short-term solutions to these problems, the
President calls on the people to help sustain the momentum of
enterprise and productivity and political stability.

With this, by 2008, the country is expected to have a balanced
budget, when the debt payment shall then be reduced by half.

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


* Philippine Peso Purchasing Power Still Strong in East Visayas
----------------------------------------------------------------
The Purchasing Power of Peso in Eastern Visayas slightly
weakened by one-centavo to PHP0.75 in June from PHP0.76 the
previous month according to the National Statistics Office
Regional Office 8.

Despite its weakening by one-centavo, the region's PPP is still
stronger compared to the national level by 3-centavos where the
same also shrank from its previous month's PPP of PHP0.73.

Among the 17 regions nationwide, the peso is strongest in
Cagayan Valley at PHP0.76 followed by Eastern Visayas together
with Central Luzon, MIMAROPA and Central Mindanao.  The weakest
was still in Autonomous Region in Muslim Mindanao at PHP0.69.

All other regions maintained its PPP except for the National
Capital Region, Cordillera Administrative Region, Western
Visayas, and Western Mindanao wherein these provinces weaken
also their PPP by one-centavo.

Among the provinces in Region 8, the province of Biliran showed
a strengthened peso value of PHP0.79 from PHP0.75 in May.  On
the other hand, all other EV provinces' PPP slipped with the
highest in the province of Leyte by 3-centavos now valued at
PHP0.75.

In addition, the PPP for the provinces of Eastern Samar,
Northern Samar, Samar and Southern Leyte likewise slid down by
one-centavo which now stood at PHP0.78, PHP0.68, PHP0.75 and
PHP0.69, respectively.

NSO explains that the one-peso in 2000 (base year) is worth
PHP0.75 in June.  This also implies that the same basket of
goods and services worth PHP75 in 2000 (base year) can be bought
at 100 pesos during the reference period.

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


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

ARCHITECTS GROUP: To Pay First and Final Dividend on September 8
----------------------------------------------------------------
Architects Group Associates Pte Ltd will pay its first and final
dividend to creditors on September 8, 2006.

The amount that will be paid to creditors is seventy cents to a
dollar on all admitted preferential claims.

The liquidator can be reached at:

         Robin Chia Chiew Meng
         13B Teo Hong Road
         Singapore 088327


AXS-ONE INC: June 30 Balance Sheet Upside-Down by US$7.08 Mil.
--------------------------------------------------------------
AXS-ONE Inc. reported a net loss of US$2.5 million for the
second quarter ended June 30, 2006, compared to a net loss of
US$4.4 million in the second quarter of last year.

Total revenues for the second quarter were US$8 million, an
increase of 6.8% compared with revenues of US$7.5 million for
the second quarter of 2005 and up 6.5% sequentially compared to
the US$7.5 million reported for the first quarter.

For the first six months of 2006, total revenues were
US$15.5 million compared with total revenues of US$15.5 million
for the first six months of 2005.  The net loss for the first
six months of 2006 was US$5.2 million, compared to a net loss of
US$7.5 million for the comparable prior-year period.

At June 30, 2006, the Company's balance sheet showed
US$9,799,000 in total assets and US$16,887,000 in total
liabilities, resulting in a US$7,088,000 stockholders' deficit.  

The Company completed the quarter with US$3.3 million in cash
and cash equivalents.  The Company's accounts receivable were
US$4.3 million as of June 30, and the company completed the
quarter with US$1.7 million of borrowing availability on its
US$4 million line of credit.

"While we saw an increase in deal closings during the second
quarter, specifically with our partner Sun Microsystems, our
reported results are below our expectations," commented Bill
Lyons, chairman and CEO of AXS-One.  

"We continue to experience lengthy sales cycles which resulted
in a number of deals that were anticipated to close being pushed
out into subsequent quarters.

However, recently released industry studies that highlight AXS-
One's complete integrated platform solution validate our belief
that our software is appropriately positioned within this
growing and dynamic market.  These factors, combined with
improved execution on our sales pipeline, should allow us to
grow revenues and continue our progress toward a return to
profitability."

                       About AXS-ONE Inc.

AXS-One Inc. (AMEX: AXO) -- http://www.axsone.com/-- provides  
high performance Records Compliance Management solutions.  The
AXS-One Compliance Platform enables organizations to implement
secure, scalable and enforceable policies that address records
management for corporate governance, legal discovery and
industry regulations such as SEC17a-4, NASD 3010, Sarbanes-
Oxley, HIPAA, The Patriot Act and Gramm-Leach Bliley.  
Headquartered in Rutherford, New Jersey, AXS-One has offices
worldwide including in the United States, Australia, Singapore,
United Kingdom and South Africa.


DAILY EXPRESS: Faces Wind-Up Proceedings
----------------------------------------
On August 24, 2006, Orix Leasing Singapore Limited has filed an
application to wind up Daily Express Distribution & Shipping.

The wind-up petition will be heard the before the High Court of
Singapore on September 15, 2006, at 10:00 a.m.

The Solicitors for the Plaintiff can be reached at:

         Asialegal LLC
         20 Cecil Street
         #18-01, Equity Plaza
         Singapore 049705


FERB PTE: Creditors Must File Proofs of Debt by September 14
------------------------------------------------------------
Preferential and unsecured creditors of Ferb Pte Ltd are
required to submit their proofs of debt by September 14, 2006.

Failure to comply with the requirement will exclude a creditor
from sharing in the company's distribution of dividend.

The joint and several liquidators can be reached at:

         Peter Chay Fook Yuen
         Bob Yap Cheng Ghee
         c/o KPMG
         16 Raffles Quay
         #22-00 Hong Leong Building
         Singapore 048581


LEAR CORP: Incurs US$6.4 Million Net Loss in 2006 Second Quarter
----------------------------------------------------------------
Lear Corporation posted record net sales of US$4.8 billion and
pretax income of US$31.5 million, which included costs related
to restructuring actions, impairments, and other special items
of US$24 million, for the second quarter of 2006.  The results
for the second quarter of 2006 compare to year-earlier net sales
of US$4.4 billion and a pretax loss of US$50.4 million,
including costs related to restructuring actions and other
special items of US$79.5 million.

Net loss for the second quarter of 2006 was US$6.4 million.  
This compares with a net loss of US$44.4 million, for the second
quarter of 2005.

Net sales were up from the prior year, primarily reflecting the
addition of new business globally, offset in part by lower
production on several Lear platforms in North America and
Europe. Operating performance improved from the year earlier
results primarily due to the increase in net sales as well as
benefits from cost and operating efficiencies in the Company's
core businesses.  These improvements were offset in part by
higher raw material costs.

"The Lear team remains focused on improving quality and ensuring
flawless launch execution while we aggressively implement cost
improvement and operating efficiency initiatives," said Bob
Rossiter, Lear Chairman and Chief Executive Officer.  "Although
there are many challenges facing our industry, we are taking
aggressive actions to address these issues and further improve
our operating results.  We will continue to be product-line
focused; competitive on a global basis; and dedicated to working
collaboratively with our customers."

Free cash flow was positive US$800,000 for the second quarter of
2006. Net cash provided by operating activities was US$74.8
million.

Quality and customer satisfaction measures remain at high
levels, and the Company continued to win recognition from
customers around the world.  Second quarter awards include
"Supplier of the Year" from General Motors and Special
Recognition for Customer Service from Ford Motor Company.  
Recognition was also received from Toyota, Mazda and Volkswagen
for excellence in quality and customer service.  Lear continues
to be ranked as the highest quality major seat supplier in the
2006 J. D. Power Seat Quality Report.

Lear also made progress on important strategic initiatives,
including the signing of a definitive agreement to contribute
substantially all of its European Interiors business to
International Automotive Components Group, LLC in return for a
34% equity interest, subject to adjustment, and the Company
continued to aggressively expand its business in Asia and with
Asian automakers globally.

During the quarter, Lear was awarded several new programs in
China, and in India, Lear won its first business with Tata
Motors. In addition, Lear opened a new TACLE joint venture
facility in Sunderland, England with its Japanese partner Tachi-
S, to support future vehicle programs with Nissan in Europe.  
This is Lear's third TACLE joint venture facility, including a
plant under construction in Mt. Juliet, Tennessee to serve
Nissan in North America and a facility in China to serve Asia.  
Lear's plant in Montgomery, Alabama is ramping up to full
production to supply seats for the all-new Hyundai Santa Fe
sport utility vehicle and another new location in San Antonio,
Texas will be supplying interior trim for the 2007 Toyota
Tundra.

                  Full-Year 2006 Outlook

For the full year of 2006, Lear expects record worldwide net
sales of approximately US$18 billion, reflecting primarily the
addition of new business globally, partially offset by
unfavorable platform mix.  Net sales guidance is up about US$300
million from the prior guidance reflecting primarily the
forecast for a stronger Euro.

Lear anticipates 2006 income before interest, other expense,
income taxes, impairments, restructuring costs and other special
items (core operating earnings) to be in the range of US$400 to
US$440 million, unchanged from the prior guidance.  This
compares with US$325 million a year ago.

Restructuring costs for 2006 are estimated to be in the range of
US$120 to US$150 million.  Interest expense is estimated to be
in the range of US$220 to US$230 million in 2006, compared with
US$183 million last year.

Pretax income before impairments, restructuring costs and other
special items is estimated to be in the range of US$120 to
US$160 million.  This compares with US$97 million last year.  
Cash taxes are estimated to be within a range of US$80 to US$100
million, compared with US$113 million last year.

Free cash flow is expected to be in the range of positive US$50
to US$100 million, compared with negative US$419 million a year
ago.  This reflects improved earnings, lower capital spending,
reduced tooling and engineering costs and improved net working
capital, offset in part by higher cash costs for restructuring.  
Net cash provided by operating activities for 2005 was US$561
million.

Capital spending in 2006 is estimated at approximately US$400
million, down from last year's peak level due primarily to lower
launch activity.  Depreciation and amortization are expected to
be in the range of US$410 to US$420 million, compared with
US$393 million last year.

Industry production assumptions underlying Lear's financial
outlook include 15.7 million units in North America, which is
down slightly from a year ago, and 19 million units in Europe,
roughly flat with a year ago.  

                           About Lear Corp

Headquartered in Southfield, Michigan, Lear Corporation (NYSE:
LEA) -- http://www.lear.com/-- supplies automotive   interior  
systems and components.  Lear provides complete seat systems,
electronic products and electrical distribution systems and
other interior products.

Lear has operations in these Asian countries: China, India,
Japan, the Philippines, Singapore and Thailand.

                          *     *     *

As reported in the Troubled Company Reporter on April 21, 2006,
Standard & Poor's affirmed the 'B+' rating on the US$1 billion
first-lien term loan.  Standard & Poor's corporate credit rating
on Lear Corp. is B+/Negative/B-2.  The speculative-grade rating
reflects the company's depressed operating performance caused by
severe industry pressures.


MICRO COMPONENT: July 1 Balance Sheet Upside-Down by US$7 Mil.
--------------------------------------------------------------
Micro Component Technology, Inc., reported profitable results
for its second quarter ended July 1, 2006.  Net sales for the
second quarter of 2006 were US$3.7 million, an increase of 178%
from net sales of US$1.3 million for the second quarter of 2005,
and additionally up 55% from the first quarter of 2006.

Net income was US$7,000 in the second quarter of 2006, compared
to net loss of US$1.6 million in the comparable prior year
period.

Net sales for the six-months ended July 1, 2006 were US$6.1
million, an increase of 84.4% from net sales of US$3.3 million
in the prior year.  The net loss for the six-month period of
2006 was US$1.1 million, compared to a net loss of US$2.6
million in the prior year.

At July 1, 2006, the Company's balance sheet showed US$7.02
million in total assets and US$14.03 in total liabilities,
resulting in a US$7.01 stockholders' deficit.

MCT's President, Chairman and Chief Executive Officer, Roger E.
Gower, commented, "This quarter was a significant achievement
for all of the MCT employees worldwide.  We not only shipped
twice as many systems in Q2 as in Q1 of 2006 but also received
orders within Q2 that exceeded the Q2 shipments.  It appears
that this growth is not only associated with the increased
capacity requirements of our marketplace, but also from existing
customers who have identified the cost savings associated with
strip test solutions and are now replacing existing capacity to
allow them to further reduce their cost of test.  Our commitment
to rapid product development over the past 10 years appears to
be achieving its goals as desired," concluded Gower.

                       Going Concern Doubt

Virchow, Krause & Company, LLP, expressed substantial doubt
about Micro Component's ability to continue as a going concern
after auditing the Company's financial statements for the years
ended Dec. 31, 2005, 2004 and 2003.  The auditing firm pointed
to the Company's recurring losses from operations and has a
stockholders' deficit

                         About Micro Component

Micro Component Technology, Inc. -- at http://www.mct.com--  
supplies integrated automation solutions for the global
semiconductor test and assembly industry.  MCT offers complete
and comprehensive equipment automation solutions for the test,
laser mark handling equipment, mark inspect, singulation, sort,
and packaging for shipment portions of the back-end of the
semiconductor manufacturing process that significantly improve
our customers' productivity, yield and throughput.  The company
has facilities in Malaysia, the Philippines and Singapore.


REFCO INC: BofA Wants Final Approval on Cash Collateral Use
-----------------------------------------------------------
Bank of America, N.A., in its capacity as administrative agent
for prepetition secured lenders under a Credit Agreement, dated
Aug. 5, 2004, asks the Hon. Robert Drain of the U.S. Bankruptcy
for the Southern District of New York to enter a final order:

   (1) authorizing Refco Group Ltd., LLC, and its affiliates to
       use the Prepetition Lenders' Cash Collateral; and

   (2) providing adequate protection to the Prepetition Lenders.

BofA delivered to the Court a proposed Final Cash Collateral
Order, pursuant to which the Debtors will be authorized to:

   (a) use up to $83,333,000 in the aggregate of cash and cash
       investments of the Debtors other than Refco Capital
       Markets, LTD., for professional expenses related to RCM's
       Chapter 11 case -- Non-Lender Other Estate Expenses; and

   (b) use or distribute up to $200,000,000 of Available Cash,
       provided that:

       -- with respect to the first $100,000,000 used or
          distributed, 50% will be paid to BofA as adequate
          protection in respect of the Prepetition Credit
          Agreement; and

       -- with respect to the next $100,000,000, 66-2/3% will be
          paid to BofA as Adequate Protection Payment.

       The balance of Available Cash used or distributed may be:

       (A) applied to the payment of Non-Lender Other Estate
           Expenses, to the extent accrued and payable in
           accordance with the Interim Compensation Order and
           with the Payment Allocation Methodology; or

       (B) reserved for the payment of future Non-Lender Other
           Estate Expenses accrued through the Termination Date
           when so accrued and payable.

BofA proposes that no further Available Cash will be used or
distributed without its written consent or further Court order,
if:

    -- the aggregate amount of Available Cash paid or reserved
       for the payment of Non-Lender Other Estate Expenses
       reaches the $83,333,000 Authorized Amount; or

    -- a plan of reorganization and corresponding disclosure
       statement for RCM has not been filed with the Court by
       November 15, 2006.

BofA also asks the Court to permit the Debtors to use, from
October 18, 2005, through the Termination Date, up to
US$12,000,000 of Cash Collateral to pay administrative expenses
other than Non-Lender Other Estate Expenses.

"Termination Date" will mean the earlier of:

     * December 15, 2006; and

     * seven business days after BofA notifies the Debtors in
       writing that it no longer consents to the use of Cash
       Collateral.

BofA further asks Judge Drain to grant the Prepetition Lenders:

   1.  Adequate Protection Liens and Claims to the extent of
       their valid, perfected, and non-voidable security
       interests and liens in the Prepetition Collateral, for
       any diminution in value of their interests in the
       Prepetition Collateral from and after the Petition Date;
       and

   2.  to the extent of diminution, superpriority allowed claims
       pursuant to Section 507(b) of the Bankruptcy Code, with
       priority over administrative expenses and other claims
       allowable under Section 507(a)(2).

BofA agrees to a US$1,000,000 carve-out to cover expenses of the
Debtors and the statutory committees in connection with the
investigation or evaluation of the validity, perfection,
priority, extent or enforceability of the Prepetition Debt or
the liens securing the Prepetition Debt.

BofA asks Judge Drain to approve a scheme for allocating
professional expenses of RCM, the Committee and other parties
with professionals required to be compensated from RCM's
estates.

BofA adds that the Debtors should be required to continue
providing weekly financial reports.

A full-text copy of the Payment Allocation Methodology is
available at no charge at http://ResearchArchives.com/t/s?107e

BofA is represented in the Debtors' cases by Donald S.
Bernstein, Esq., Karen E. Wagner, Esq., and Brian M. Resnick,
Esq., at Davis Polk & Wardwell, in New York.

The Court has set to convene a hearing on August 28, 2006, at
10:00 a.m. to consider entry of a Final Cash Collateral Order.

A full-text copy of BofA's proposed Final Cash Collateral Order
is available at no charge at:

           http://ResearchArchives.com/t/s?107f

                      About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 39; Bankruptcy Creditors' Service, Inc.,

        
REFCO INC: Hires UHY Advisors as Tax Consultants
------------------------------------------------
Refco, Inc., its debtor-affiliates and Marc S. Kirschner, the
court-appointed trustee for Refco Capital Markets, Ltd.,
obtained authority from the U.S. Bankruptcy Court for the
Southern District of New York to formally employ UHY Advisors
NY, Inc., and its affiliated entities as their tax advisors,
nunc pro tunc to Feb. 3, 2006.

As reported in the Troubled Company Reporter on Aug. 8, 2006,
the Debtors and the RCM Trustee believe that UHY, being the 14th
largest accounting firm of tax and business consultants in the
United States with an extensive network of affiliated firms
internationally, possesses expertise and knowledge to provide
services.

According to the Debtors, UHY will perform these necessary
services:

   (a) preparation, review and filing of federal, state and
       local tax returns and any amended returns, corresponding
       schedules, related documents, including any extensions of
       time to file tax returns as well as complex technical
       analysis of various issues and formulation of
       recommendations to the Debtors and the RCM Trustee;

   (b) attendance and assistance with meetings and examinations
       with Internal Revenue Service, international or state and
       local tax authorities, the executive management team at
       Refco, Inc., the Chapter 11 and Chapter 7 trustees for
       RCM and Refco, LLC;

   (c) advice and assistance regarding transaction taxes, state
       and local sales and use taxes, and audits;

   (d) assembly and compilation of information necessary to
       prepare tax returns;

   (e) accounting, auditing and bookkeeping services;

   (f) review and assistance with any international tax-related
       issues and documents;

   (g) tax consulting and strategy services relating to several
       complex transactions;

   (h) consulting services relating to treatment of transactions
       for financial reporting purposes in accordance with GAAP;

   (i) assistance with organizing and cataloging the Debtors'
       books and records; and

   (j) performance of other tax-related services and accounting
       and audit-related services that are mutually agreed on by
       the Debtors, the Trustee and UHY.

The Debtors assure the Bankruptcy Court that UHY's services will
not result in unnecessary duplication of efforts in their
bankruptcy cases.

In accordance with an order authorizing the Debtors to employ
and compensate professionals used in ordinary course, payments
are subject to Court approval if they exceed $50,000 in any
month, or exceed an aggregate of $500,000 in the Debtors' cases.

The Debtors' payments to UHY have not exceeded these caps as of
July 14, 2006.

Under an engagement letter with the Debtors and the RCM Trustee,
UHY agreed to fix its professional fee at US$400,000, along with
a US$50,000 retainer, for services relating to preparation of
certain partnership and corporation tax returns.  Specific
services that are encompassed in the fixed fee are:

     Fee        Service
     ---        -------
   US$150,000   New Refco Group Ltd. LLC Partnership Returns for
                short year Jan. 1, 2005, to Aug. 10, 2005;
                and

   US$250,000   Refco Inc. Corporate Tax Returns for tax year
                starting Aug. 11, 2005, to June 30, 2006.

The fixed fee does not include any accounting, bookkeeping or
other support services necessary to prepare the returns.

For other services, UHY's standard hourly rates range from
US$150 for first year staff to $550 for managing directors.  It
is UHY's policy to adjust rates periodically to reflect economic
and other conditions.

Consistent with its policy with respect to its other clients,
UHY will bill for other charges and disbursements incurred,
including costs for long distance telephone usage, photocopying,
travel, messengers, computer usage and postage.

As of July 20, 2006, UHY has received US$200,000 from the
Debtors.  UHY will then apply to the Court for allowance of
compensation for professional services rendered and
reimbursement of expenses incurred in the Debtors' cases.  
However, services subject to the fixed fee arrangement will be
subject to the jurisdiction and approval of the Court and the
U.S. Trustee under Section 328(a) of the Bankruptcy Code.

Michael Greenwald, managing director of UHY, attests that the
firm:

   (i) does not have any connection with the Debtors or any
       other party-in-interest;

  (ii) is a "disinterested person," as that term is defined in
       Section 101(14); and

(iii) does not hold or represent any interest adverse to the
       Debtors' estates.

                          About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 39; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)  


SMH SYSTEMS: Court to Hear Wind-Up Petition on September 8
----------------------------------------------------------
Lim Vincent has filed an application to wind up SMH Systems &
Equipment Pte Ltd on August 1, 2006.

The High Court of Singapore will hear the wind-up petition on
September 8, 2006, at 10:00 a.m.

The Solicitors for the Plaintiff can be reached at:

         Grays LLC
         530 Lorong 6 Toa Payoh #02-06
         HDB Hub
         Singapore 310530


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

G STEEL: Moody's Reviews B1 Ratings for Possible Downgrade
----------------------------------------------------------
Moody's Investors Service announced on September 4, 2006, that
it is continuing its review for possible downgrade of G Steel
Public Company Limited's B1 corporate family and senior
unsecured ratings.

The ratings were initially placed on review for possible
downgrade on June 27, 2006, following G Steel's announcement
that it would pay up to US$180 million to procure Nakornthai
Strip Mill PLC's convertible debt.

"In its continuing review, Moody's will evaluate how the
purchase of NSM's convertible debt would be financed and the
subsequent impact on G Steel's financial profile," says Angela
Choi, lead analyst.

"If the transaction proceeds as planned, Moody's will likely
lower G Steel's ratings by one notch to B2", Angela Choi, adds.

While Moody's acknowledges the strategic benefits of the
proposed transaction, the lower rating reflects the company's
plan to raise up to US$120 million in debt to part fund the
transaction, thereby weakening its credit metrics to a level
that is more consistent with a B2 rating.  The final rating
outlook will likely depend on the terms associated with the debt
being raised, including any potential refinancing risk if a
short-term debt structure is employed.

"Moody's will also assess G Steel's financial policy and
business strategy relative to NSM as well as its commitment to
provide on-going support for NSM's operations," adds Choi.

"However, should the transaction not occur, the company's
ratings are likely to be confirmed." adds Choi.

                          *     *     *

G Steel Public Company Ltd headquartered in Bangkok, produces
hot rolled coils in different grades and gauges.  G Steel is a
stand-alone operating entity with no related group companies.


* Thailand Ratings Unaffected by Political Turmoil
--------------------------------------------------
Fitch Ratings today said that ongoing political uncertainty in
Thailand is affecting the country's economic growth prospects,
but is not, as yet, altering the agency's view on its sovereign
creditworthiness.

During Fitch's annual conference in Bangkok focusing on
"Regional & Thai Economic & Banking Risks for 2007", the
agency's analysts said that assuming the political situation is
resolved this year, they are cautiously optimistic on a rebound
in Thai growth in 2007 which should see banks continue to
perform well and any asset quality problems there contained.

Speaking on the Asian and Thai economic and political outlook,
James McCormack, head of Asia sovereigns, indicated that among
other things, a strong external story was offsetting the ill-
effects of ongoing political uncertainty in Thailand.

"Thailand's ratings remain supported by a steady decline in
government debt and a robust external liquidity position, with
official foreign reserves approaching an all-time high of USD60
billion," said Mr. McCormack.  Nonetheless, he pointed out the
economic impact of the political situation.  "Consumer and
investor sentiment has suffered, and the much-publicized surge
in demand from the mega-projects has simply not materialized."

Assuming a resolution of the political situation later this
year, Fitch expects Thai GDP growth to rebound in 2007.  
However, an unexpected extension of the current political
environment would cause the agency to review Thailand's medium-
term growth prospects, and could cause a more disruptive
response in financial markets.

Meanwhile in his presentation on Thai banks and finance
companies, David Marshall, head of Asia Pacific financial
institutions, noted that overall asset quality has shown only a
slight deterioration in 2006 despite the country's political
turmoil and slower economic growth.

"The larger Thai banks in particular have been performing very
well, some featuring among the most profitable banks in Asia in
Fitch's regional rankings in 2005.  If, as Fitch expects,
economic growth rebounds in 2007, the banks should continue to
perform well and any asset quality problems should prove limited
and short-lived," said Mr. Marshall.

However, he cautioned that any extension of the uncertainties
would likely impact the property market, which has fallen back
since 2005 following very strong price rises over the previous
two years, and lenders could see some defaults by developers and
mortgage borrowers.

In assessing asset quality trends, Fitch sees at present only
pockets of more notable deterioration, especially in hire
purchase, both auto and non-auto, in the latter cases arising
from the severe competition that has led to a relaxation of loan
origination standards over the past few years.

The impact of these trends is more significant for finance
companies and the smaller banks than for the large banks.  The
agency sees some evidence of rising credit card delinquencies
but they are generally not high by international standards,
although trends at the subprime level are more worrying.

Fitch also considers the level of household indebtedness in
Thailand to be moderate although increasing from a low base
(household debt to income was 58% in 2004).  Additionally, the
experience of other markets that have suffered consumer lending
crises such as Korea and more recently Taiwan, suggests that a
seemingly moderate overall number does not rule out over
borrowing and ultimately, serious defaults by some borrowers.

On the broader Asian region, Mr. McCormack indicated that the
region remains reasonably well placed to deal with an impending
slowdown in external demand amid higher interest rates.  
"Leading indicators for the export sector suggest weaker growth
in the months ahead, not only in the US, but across the OECD,"
Mr. McCormack said.  Fitch expects global GDP growth to fall to
3.2% in 2007 from 3.5% in 2006, led lower by the US, where
growth is expected to decline to 2.6% from 3.2%.  The agency
believes Asian export growth can continue to be supported by
demand from China, at least in the initial stages of a cyclical
downturn.

Higher interest rates are also a factor in assessing Asia's
economic prospects in the short term. Asian central banks were
initially slow to follow US policy, but rates are now higher
across the region, especially in Hong Kong and Thailand.  
According to Fitch, while interest rates are higher, credit
growth is still mixed, suggesting the effects on domestic demand
have not been particularly pronounced in the region.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
September 8-9, 2006
  American Bankruptcy Institute
    International Insolvency Symposium
      London, England
        Web site: http://www.turnaround.org/

September 13, 2006
  Turnaround Management Association - Australia
    Networking Function Australia
      Parramatta, Australia
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

September 21, 2006
  Insolvency Practitioners Association Of Australia
    Study Group Meetings
      Chartered Accountants House, Sydney, Australia
        Telephone: 9416-2395
          e-mail: amanda_taylor@aapt.net.au

September 26-27, 2006
  American Bankruptcy Institute
    Airline Restructuring
      Helmsley Park Lane Hotel, New York, NY
        Telephone: 1-703-739-0800
          Web site: http://www.abiworld.org/

October 5, 2006
  Turnaround Management Association - Australia
    UTS Fundamentals of Turnaround Management Australia
      Mecure Hotel - Haymarket
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

October 11, 2006
  INSOL
    INSOL Lenders, Australia Technical Day
      Brisbane, Australia
        Web site: http://www.insol.org/

October 11-14, 2006
  Turnaround Management Association - Australia
    2006 Annual Convention
      JW Marriott Grande Lakes, Orlando, FL, USA
        e-mail: livaldi@turnaround.org

October 11, 2006
  Turnaround Management Association - Australia
    Professional Development Meeting Australia
      TBA
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

October 12, 2006
  Insolvency Practitioners Association Of Australia
    IPAA National Conference 2006
      Stamford Plaza, Brisbane City,
        Queensland, Australia
          Telephone: 07-3367-0500
            e-mail: corinne.templeton@invigorate.com.au

October 12, 2006
  Turnaround Management Association - Australia
    UTS Fundamentals of Turnaround Managment Australia
      Melbourne, Australia
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

October 19, 2006
  Insolvency Practitioners Association Of Australia
    Study Group Meetings
      Chartered Accountants House, Sydney, Australia
        Telephone: 9416-2395
          e-mail: amanda_taylor@aapt.net.au

October 31 - November 1, 2006
  International Women's Insolvency & Restructuring Confederation
    IWIRC Annual Conference
      San Francisco, CA, USA
        Web site: http://www.iwirc.com/

November 7-8, 2006
  International Monetary Fund and the Financial
    Supervisory Service
      Macroprudential Supervision: Challenges for Financial
        Supervisors
          Seoul, South Korea
            Telephone: 82-2-3771-5114
              Web site: http://www.fss.or.kr/

November 9-10, 2006
  Turnaround Management Association - Australia
    TMA Australia National Conference Australia
      TBA
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

November 15, 2006
  LI TMA Formal Event
    TMA Australia National Conference
      Long Island, New York, USA
        Web site: http://www.turnaround.org/

November 16, 2006
  Insolvency Practitioners Association of Australia
    Study Group Meetings
      Chartered Accountants House, Sydney, Australia
        Telephone: 9416-2395
          e-mail: amanda_taylor@aapt.net.au

December 13, 2006
  Turnaround Management Association - Australia
    Christmas Function Australia
      GE Commercial Finance, George Street,
        Sydney, Australia
          Telephone: 0438-653-179
            e-mail: tma_aust@bigpond.net.au

February 2007
  American Bankruptcy Institute
    International Insolvency Symposium
      San Juan, Puerto Rico
         Telephone: 1-703-739-0800
           Web site: http://www.abiworld.org

March 27-31, 2007
  Turnaround Management Association - Australia
    2007 TMA Spring Conference
      Four Seasons Las Colinas, Dallas, TX, USA
        e-mail: livaldi@turnaround.org

April 11-15, 2007
  American Bankruptcy Institute
    ABI Annual Spring Meeting
      J.W. Marriott, Washington, DC, USA
        Telephone: 1-703-739-0800
          Web site: http://www.abiworld.org/

October 16-19, 2007
  Turnaround Management Association - Australia
    TMA 2007 Annual Convention
      Boston Marriott Copley Place, Boston, MA, USA
        e-mail: livaldi@turnaround.org

March 25-29, 2008
  Turnaround Management Association - Australia
    TMA Spring Conference
      Ritz Carlton Grande Lakes, Orlando, FL, USA
        e-mail: livaldi@turnaround.org

October 28-31, 2008
  Turnaround Management Association - Australia
    TMA 2008 Annual Convention
      New Orleans Marriott, New Orleans, LA, USA
        e-mail: livaldi@turnaround.org

October 5-9, 2009
  Turnaround Management Association - Australia
    TMA 2009 Annual Convention
      JW Marriott Desert Ridge, Phoenix, AZ, USA
        e-mail: livaldi@turnaround.org

October 4-8, 2010
  Turnaround Management Association - Australia
    TMA 2010 Annual Convention
      JW Marriot Grande Lakes, Orlando, FL, USA
        e-mail: livaldi@turnaround.org

Beard Audio Conferences
  Coming Changes in Small Business Bankruptcy
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Audio Conferences CD
  Beard Audio Conferences
    Distressed Real Estate under BAPCPA
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Changes to Cross-Border Insolvencies
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Healthcare Bankruptcy Reforms
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Calpine's Chapter 11 Filing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Changing Roles & Responsibilities of Creditors' Committees
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Validating Distressed Security Portfolios: Year-End Price
    Validation and Risk Assessment
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Employee Benefits and Executive Compensation
    under the New Code
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Dana's Chapter 11 Filing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Reverse Mergers-the New IPO?
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Fundamentals of Corporate Bankruptcy and Restructuring
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  High-Yield Opportunities in Distressed Investing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Privacy Rights, Protections & Pitfalls in Bankruptcy
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  When Tenants File -- A Landlord's BAPCPA Survival Guide
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Clash of the Titans -- Bankruptcy vs. IP Rights
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/



                            *********

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

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

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


                            *********


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

Copyright 2006.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
   
TCR-AP subscription rate is $575 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are $25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.
   
                 *** End of Transmission ***