TCRAP_Public/060915.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

           Friday, September 15, 2006, Vol. 9, No. 184

                            Headlines

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

ABLE CABLE: Members Decide to Close Business
ALI S PROPERTIES: Liquidation Bid Hearing Set on Sept. 21
AWB LIMITED: Appoints P. Patterson as Company Secretary
B G BULK: Shareholders Agree with Voluntary Liquidation
CANTERBURY SHEARING: Court Appoints Joint Liquidators

D & M TRADERS: Court to Hear Liquidation Petition on Nov. 2
EUPHORIA (RICCARTON): Faces Liquidation Proceedings
EVANS & TATE: Posts AU$63.9 Mln Loss for Fiscal Year 2005-2006
FLAT OUT: Final Meeting Scheduled for October 3
FORTESCUE METALS: ABARE Opposes Pilbara Rail Network Access

GWENALL INVESTMENTS: Enters Voluntary Liquidation
HD BUILDING: Enters Voluntary Liquidation
HD PTY: Shuts Down Business Operations
KTS LOGISTICS: Court Appoints Official Liquidator
LUCRATIVE FINANCIAL: To Declare Dividend on October 10

MARKET DYNAMICS: Liquidation Petition Hearing Set November 16
MOUNTAIN ROAD: Hearing of CIR's Bid Fixed on September 21
NICK GORMLEY: Members Agree on Liquidation
NGUNGURU FISHERTON: Court Set to Hear CIR's Liquidation Bid
NURSERYROOM LIMITED: Creditors Must Prove Debts by September 28

QH PROMOTIONS: Members Agree to Close Business Operations
REGIONAL GASTRONOMIC: Members & Creditors to Hear Wind-Up Report
R & H PRICE: Set to Declare Dividend on October 18
RIVERLINE LIMITED: Liquidation Commenced on August 18
S & G BRICKLAYERS: Members and Creditors to Convene on October 4

SARAH JANE: Members Agree to Wind Up Firm
SDI TECHNOLOGIES: Prepares to Declare Dividend to Creditors
TEILIS FINANCIAL: Former Directors Face Fraud Charges
THE WAM COMMUNICATIONS: Members Appoint Liquidator
TIP TOP: Members Set to Meet on September 25

TONY'S TOW: Members Opt for Voluntary Liquidation
TOORAK SAVANNA: Placed Under Voluntary Liquidation
TREVISA HOLDINGS: Shareholders Opt for Voluntary Liquidation
TRIMACAL PTY: Members Resolve to Wind Up Firm
TRINITY FINANCIAL: Schedules Final Meeting for October 2

VENTURE PUBLISHING: Enters Liquidation Proceedings
UNISTYLE CONSTRUCTIONS: Creditors Opt to Shut Down Business
UNITED FINANCE: Creditors Must Prove Debts
USABILITY BY DESIGN: Enters Voluntary Liquidation
W.&M. WEISZ: To Declare Final Dividend on September 26

WINDEMERE CHAMBERS: Appoints Joint Liquidators
* NZ's Official Cash Rate Unchanged at 7.25%, A. Bollard Says


C H I N A   &   H O N G  K O N G

B & P INTERTRADE: Shareholders Opt to Wind-Up Company
BANK OF COMMUNICATIONS: Names Li Jun as Bank's New Governor
BRAND NEW: Annual Meeting Set for September 20
CHINA SOUTHERN: To Launch Regular Flights to Changsha and Seoul
DUNHUANG (CHINA): Creditors' Proofs of Claim Due on September 22

GAIN FIELD: Creditors' Must Prove Claims by September 28
H.C.T. LTD: Creditor's Proofs of Debt Due on October 3
HERO RAY: Final Members' Meeting Set on October 5
HIH UNDERWRITING: Annual Meetings Slated for October 5
JASPER TECHNOLOGY: Creditors Must Prove Debts by September 15

LEADING TOP: Members' Final Meeting Fixed on October 3
LITAK SHIPPING: Creditors' Proofs of Claim Due on October 3
MIRACLE TIME: Names Joint and Several Liquidators
NEW GAGNEUR: Members' Meeting Slated for October 12
PRODUCT SAFETY (HK): Creditors Must Prove Debts by October 1

PITCAIRN SHIPPING: Liquidators Ceases to Act for Company
PRODUCT SAFETY (INT'L): Creditors' Proofs of Claim Due on Oct. 1
RIGHT MASTER: Final Members Meeting Set on October 3
SKY CHAMPION: Creditors' Proofs of Debt Due on September 27
TAK SHING: Appoints Joint and Several Liquidators

TCL MULTIMEDIA: Mulls on Restructuring European Operations
TECK SOON: Names Mar and Ting as Liquidators
WISE FAVOUR: Liquidator Cease to Act for Company


I N D I A

ALLAHABAD BANK: Considers Overseas Borrowing
ALLAHABAD BANK: Sets INR3.6 Billion Loans for OTS
ALLAHABAD BANK: Test Runs CB Software in October
GMAC LLC: Mulls Bond Market Comeback
SILICON GRAPHICS: Wants to Reject Seven Executory Contracts

SILICON GRAPHICS: Inks Stipulation with Intel & Constellation
SILICON GRAPHICS: Gets Okay to Hire Paul Hastings as IP Counsel
UNITED WESTERN BANK: IDBI Takes Over for INR1.5 Billion


I N D O N E S I A

BANK INTERNASIONAL: Government May Delay Stake Sale Until 2007
BANK TABUNGAN: Government to Sell 28.39% Stake in 4th Quarter
LIPPO BANK: Partners with Nucleus to Overhaul Lending Operations
NORTEL NETWORKS: Outlines Three Key Areas for Market Expansion
NORTEL NETWORKS: Partner Deploys IP Infrastructure for Telegraph

NORTEL NETWORKS: Launches New Product Offerings to SMEs
TELKOM INDONESIA: Teams Up With MEASAT for Satellite Business


J A P A N

DAIEI INCORPORATED: To Pay JPY150-Bln Debt to IRCJ Next Month
KANA SOFTWARE: Posts US$383,000 Loss in Quarter Ended June 30
KANA SOFTWARE: Forms Financial Services Vertical Sales Team
MITSUBISHI MOTORS: Expects Minicars to Drive Profit Rise
SOFTBANK CORP: Offers Phone & iPod Package to Lure Customers

SOFTBANK CORP: Says CEO Did Not Offer Assets as Collateral


K O R E A

BURGER KING: Improving Performance Prompts S&P's Rating Upgrade
CLOROX COMPANY: 3M Sues Unit for Patent Infringement
DRESSER INC: 2005 Financials Filing Extended to December 31
DRESSER INC: To Explore Strategic Alternatives
DRESSER INC: Refinances Existing Senior Secured Credit Facility

KOREA EXCHANGE: Prosecutors Raid Headquarters Again
THOMAS EQUIPMENT: Unit Completes $15 Mil. Funding with Greystone


M A L A Y S I A

ANTAH HOLDINGS: August Default Amount Tops MYR252 Million
ANTAH HOLDINGS: HSBC Seeks Auction of Subsidiary's Land
FORMIS MALAYSIA: Extends Completion Date of OCSB Sale
KIG GLASS: Bourse Decides to Delist Securities
PARACORP BERHAD: Unit Defaults in Payment of Overdraft Facility

POLYMATE HOLDINGS: Bumiputra Commerce Asserts Over MYR14M Claim
PSC INDUSTRIES: Unit Inks HoA with Landas Fikir for Shipyard Ops
SETEGAP BERHAD: Buyers Extend Period to Obtain Sale Approval
SATERAS RESOURCES: Delays 2006 Annual Report Submission
TENAGA NASIONAL: Lists Additional 4,015,799 Shares


P H I L I P P I N E S

EQUITABLE PCI: BSP Confirms Election of Directors
BANK OF CEBU: Accuses BSP & PDIC of Abuse of Discretion
FIL-ESTATE CORPORATION: Board Postpones ASM to Later Date
METROPOLITAN BANK: Amends 1Q Ended March 31, 2006
PHILIPPINE LONG DISTANCE: Denies Foreign Control Above 40%


S I N G A P O R E

ASICHEM TRADING: Creditors' Meeting Set on September 28
GLOBELL CHEMICAL: Faces Wind-Up Proceedings
REFCO: Asks Court to Approve Settlement Accord with BofA, et al.
REFCO INC: Wants to Walk Away from 18 Trading Operation Deals
SEAGATE TECHNOLOGY: Earns US$840 Million in Fiscal 2006

UNICOMM NETWORK: Creditors to Receive Wind-Up Report


T H A I L A N D

NFC FERTILZER: Won't Seek De-listing from SET, CEO Says
SIAM COMMERCIAL: Seeks to Clear Name In Shin Corp-Temasek Deal

     - - - - - - - -

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

ABLE CABLE: Members Decide to Close Business
--------------------------------------------
The members of Able Cable & Data Pty Ltd met on August 29, 2006,
and agreed to shut down the Company's business operations.

Subsequently, Michael Edward Slaven was appointed as liquidator.

Mr. Slaven can be reached at:

         Michael Edward Slaven
         Rangott Slaven Hundy
         Level 3, Engineering House
         11 National Circuit
         Barton, Australian Capital Territory 2600
         Australia


ALI S PROPERTIES: Liquidation Bid Hearing Set on Sept. 21
---------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against Ali S Properties Ltd on September 21, 2006, at 10:00
a.m.

A petition was filed by the Commissioner of Inland Revenue on
June 20, 2006.

The Solicitor for the Petitioner can be reached at:

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


AWB LIMITED: Appoints P. Patterson as Company Secretary
-------------------------------------------------------
AWB Limited Chairman Brendan Stewart advises the Australian
Stock Exchange that Peter Patterson has been appointed Company
Secretary.

Mr. Patterson is currently Deputy Company Secretary at Coles
Myer Limited and has 12 years of experience in ASX listed
companies, Mr. Stewart says, noting that Mr. Patterson is a
lawyer with a Master's degree.

Mr. Stewart discloses that Mr. Patterson will be a member of
AWB's Executive Leadership Group and will report directly to the
Board.

Mr. Patterson will immediately start at AWB once his current
work commitments at Coles Myer are complete.

                        About AWB

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

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

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

                          *     *     *

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

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

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


B G BULK: Shareholders Agree with Voluntary Liquidation
-------------------------------------------------------
Shareholders of B G Bulk Haulage Ltd resolved on August 16,
2006, to place the company under voluntary liquidation.

Subsequently, Warwyck James Dewe was appointed Liquidator of the
company.

The Liquidator can be reached at:

         W. J. Dewe
         249 Wicksteed Street
         (P.O. Box 4088), Wanganui
         New Zealand
         Telephone: (06) 349 0888
         Facsimile: (06) 349 0879


CANTERBURY SHEARING: Court Appoints Joint Liquidators
-----------------------------------------------------
The High Court of Wellington ordered the appointment of David
Donald Crichton and Keiran Ann Horne as joint and several
liquidators of Canterbury Shearing.

Subsequently, the company's creditors are required to prove
their debts to the Liquidators by September 21, 2006.  Failure
to present proofs of claim will exclude a creditor from sharing
in any distribution the company will make.

The Troubled Company Reporter - Asia Pacific reported on
August 10, 2006, that the company was facing a liquidation
petition filed by the Accident Compensation Commission.  The
petition was heard on August 21, 2006.

The Joint Liquidators can be reached at:

         K. A. Horne
         c/o Nelson Gardiner
         Crichton Horne & Associates Limited
         Old Library Chambers
         109 Cambridge Terrace
         (P.O. Box 3978), Christchurch
         New Zealand
         Telephone: (03) 379 7929
         Web site: http://www.cha.co.nz/


D & M TRADERS: Court to Hear Liquidation Petition on Nov. 2
-----------------------------------------------------------
On July 28, 2006, the Commissioner of Inland Revenue filed a
petition to liquidate D & M Traders Ltd.

The petition will be heard before the High Court of Auckland on
November 2, 2006, at 10:45 a.m.

Solicitor for the Petitioner can be reached at:

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


EUPHORIA (RICCARTON): Faces Liquidation Proceedings
---------------------------------------------------
On August 7, 2006, Incorporated Incorporated Ltd filed with the
High Court of Christchurch a petition to liquidate Euphoria
(Riccarton) Ltd.

The petition will be heard before the Court on September 35,
2006, at 10:00 a.m.

The Solicitor for the Petitioner can be reached at:

         Malcolm Whitlock
         Debt Recovery Group NZ Limited
         149 Ti Rakau Drive, Pakuranga
         Auckland, New Zealand

         Or

         P.O. Box 259 059, Burswood
         Auckland


EVANS & TATE: Posts AU$63.9 Mln Loss for Fiscal Year 2005-2006
--------------------------------------------------------------
Evans & Tate Limited posted a loss of AU$63.9 million for the
2005-2006 financial year, down 12% on the corresponding figure
for the previous year.

As of June 30, 2006, the company's balance sheet revealed
strained liquidity with AU$90.930 billion in total current
assets available to pay AU$152.377 billion of total current
liabilities coming due within the next 12 months.

Evans & Tate's June 30, 2006 balance sheet also showed total
liabilities of AU$207.445 billion exceeding total assets of
AU$139.792 billion, resulting to total shareholders' deficit of
AU$67.653 billion.

The company's Chief Executive Officer Martin Johnson, says 2005-
2006 had been a tough year and the loss was painful for all
stakeholders.

"Despite the gloom of 2005-2006, the turnaround of Evans & Tate
started to show some positive results in the final two months of
the year," Mr. Johnson says.

"As well, there were clear indications that the Evans & Tate
strategy to focus its future direction on its ultra-premium
wines and brands from the Margaret River region was the best way
forward for the company," Mr. Johnson notes.

Mr. Johnson discloses that the Evans & Tate Board of Directors
had approved in principle a plan to restructure its balance
sheet.  Work on the proposed restructure is in its initial
stages and it is far too early to release final details.

Mr. Johnson explains that the 2005-2006 result was attributable
to a number of factors including tough trading conditions in the
United Kingdom market, the wine market glut in Australia coupled
with increased competition and restructuring costs associated
with the Evans & Tate turnaround strategy.

Mr. Johnson further says "[a]ll of the pain caused by the
challenges in the marketplace provided the impetus to reinvent
our business to an extent that may not have been possible under
less traumatic conditions.  The turnaround strategy embarked on
12 months ago is already yielding significant results and laying
the platform for a sustainable future.  We now have the team,
the plan, and the products to drive profitable sales in the
years to come."

According to Mr. Johnson, there were several "positive
indicators" in the second half of 2005-06 including:

   (a) Impact of the new distribution agreement with HwCg in the
       UK had already started to show results in May and June
       2006;

   (b) Double-digit domestic volume growth in the Evans & Tate
       Margaret River brand in a flat market overall;

   (c) Significant grape intake reduction program had been
       successfully completed in South East Australia and the
       Margaret River region; and

   (d) The overhaul of the management team had been finalized
       and the business restructure had been completed which
       would result in a substantial reduction in staff costs
       and overheads going forward.

Mr. Johnson also notes that the company's wholly owned
distribution business, WineSource, is the company's ongoing
strength which would be further strengthened in 2006-2007 with
the addition of a number of new agency brands.

Since the end of the 2005-2006 year, Evans & Tate had completed
the sale of its Mildura and Griffith wineries with proceeds of
about AU$30 million, of which AU$25.2 million went to repaying
debt, Mr. Johnson relates.

Evans & Tate has also launched a new stand-alone brand and
several new premium wines from the Margaret River range with
more to follow in coming weeks.

"2006-07 will see the company very focused on its core brands
and its mission as a producer and distributor of premium quality
wines," Mr. Johnson asserts.

Evans & Tate will not pay a final dividend on either its
ordinary or preference shares.

A full-text copy of Evans & Tate's financial report for the year
ended June 30, 2006, is available for free at:

http://www.etw.com.au/one/popupframe.asp?windowurl=pdf/130906_Preliminary_Final_
Rpt_FY_30_June_06.pdf

                          Going Concern

Evans & Tate says that the financial report has been prepared on
a going concern basis, noting that as at June 30, 2006, certain
matters are considered pertinent when considering the ability of
the consolidated entity to continue as a going concern.

The company notes that if it is unable to continue as a going
concern, it will be required to realize its assets and
extinguish its liabilities other than in the normal course of
business and at amounts that may be different to those stated in
the financial report.

                    About Evans & Tate

Headquartered in Wembley, Western Australia, Evans & Tate
Limited -- http://www.etw.com.au/-- is an Australian wine
company listed on the Australian Stock Exchange.  The primary
businesses of the Evans & Tate Wine Group are the production,
marketing and distribution of a number of branded, exclusive
labeled and unbranded wines; contract winemaking; wine trading;
viticultural services; and wine tourism through its Visitor
Centers.

In June 2005, rumors began brewing that the wine maker was
carrying total liabilities of AU$127.5 million, of which
AU$102.5 million was interest-bearing debt.  A few days later,
Evans & Tate admitted that it had been coordinating with
insolvency firm KordaMentha on the recommendation of its major
creditor, ANZ Banking Group Limited.  It had appointed
KordaMentha's 333 Performance Management "to improve its
forecasting, planning and business efficiencies."  Evans & Tate
also admitted that it was cash flow negative and had sought an
AU$8.5-million capital injection from ANZ Bank.  The firm
further said that it would cut the value of its wine inventories
by AU$8 million to AU$10 million, offload stock at a discount,
and cut the carrying value of certain wineries.  In July 2005,
Evans & Tate has secured an additional AU$10 million in short-
term working capital from ANZ.

The Troubled Company Reporter - Asia Pacific reported on
July 18, 2006, that Evans & Tate has already written down the
value of its inventory by AU$39 million over the past year and
reported a AU$44-million first-half loss.

In the first half of 2006, Evans & Tate has taken steps to sell
its Griffith and Mildura Wineries to reduce debts, which are
estimated to be more than AU$160 million, and meet restructuring
costs.

On August 25, 2006, it has completed the sale of its Griffith
winery in the New South Wales Riverina to TWG Australia, which
is the Australian subsidiary of California-based The Wine Group
LLC, for AU$8 million.  The Griffith Winery Sale, the TCR-AP had
noted, brings the amount that Evans & Tate will get from asset
realization to more than AU$30 million.

Furthermore, a company statement disclosed that on August 29,
2006, the sale of its Mildura Winery to Roberts Estate was
completed for a total consideration of AU$22 million.


FLAT OUT: Final Meeting Scheduled for October 3
-----------------------------------------------
A final meeting of the members and creditors of Flat Out Events
Pty Ltd will be held on October 3, 2006, at 10:00 a.m.

During the meeting, Liquidators Stephen Jay will present final
accounts of the Company's wind-up and property disposal
exercises.

The Liquidator can be reached at:

         Stephen Jay
         c/o Nicholls & Co
         Chartered Accountants
         PO Box 1250
         Dubbo, New South Wales 2830
         Australia


FORTESCUE METALS: ABARE Opposes Pilbara Rail Network Access
-----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
June 15, 2006, Fortescue Metals Group Ltd. Chief Executive
Officer Andrew Forrest appealed to the Australian Competition
Tribunal on June 13, 2006, to have BHP Billiton's Mt. Newman
rail line opened to third-party access under the Trade Practices
Act.

An earlier TCR-AP report in May 2006 stated that the Australian
Government barred Fortescue from gaining access to BHP
Billiton's Pilbara rail line despite the National Competition
Council's recommendation that the miner be granted the right to
negotiate with BHP.

In an update, a report from ABC North West WA relates that the
Australian Bureau of Agricultural and Resource Economics'
executive director, Brian Fisher, warns that there will be
costly implications if Fortescue is allowed access to a rail
line owned by BHP Billiton in the Pilbara.

According to the report, Mr. Fisher believes open access to rail
lines in Queensland causes bottlenecks and delaying exports.

"You'll probably damage your ability to get iron ore out of
those ports in the north-west and therefore you damage
Australia's growth prospects," ABC North West cites Mr. Fisher,
as saying.

However, according to Resources Minister John Bowler FMG will
soon have its own rail line, noting that FMG will build the
railway and "we're going to help them do that."

The issue will be fought out in the Federal Court in October,
ABC North West notes.

According to the TCR-AP, the BHP rail deal would have allowed
Fortescue to use its trains to cart 60-70 million tonnes of iron
ore in the next decade on BHP's rail line from the small Mindy
Mindy deposit to Port Hedland.

                       About Fortescue

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

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

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

                          *     *     *

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

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


GWENALL INVESTMENTS: Enters Voluntary Liquidation
-------------------------------------------------
At an extraordinary general meeting on August 23, 2006, the
members of Gwenall Investments Pty Ltd agreed that the Company
must voluntarily commence a wind-up of its operations.

Subsequently, Robert James Harper was named liquidator.

The Liquidator can be reached at:

         Robert James Harper
         Chartered Accountant
         2A Hope Street
         Pymble 2073
         Australia


HD BUILDING: Enters Voluntary Liquidation
-----------------------------------------
On August 29, 2006, the members of HD Building (NSW) Pty Ltd
convened and agreed that the Company should wind up its
operations voluntarily.

In this regard, John Duncan Green was appointed as liquidator.

The Liquidator can be reached at:

         John D. Green
         BDO
         Chartered Accountants & Advisers
         Level 19, 2 Market Street
         Sydney, New South Wales 2000
         Australia


HD PTY: Shuts Down Business Operations
--------------------------------------
The members of HD Pty Ltd convened on August 29, 2006, and
agreed to shut down the Company's business operations.

John Duncan Green was subsequently named as liquidator.

The Liquidator can be reached at:

         John D. Green
         BDO Chartered Accountants & Advisers
         Level 19, 2 Market Street
         Sydney, New South Wales 2000
         Australia


KTS LOGISTICS: Court Appoints Official Liquidator
-------------------------------------------------
The Federal Court of Australia on August 25, 2006, appointed
Christopher H. Palmer as official liquidator of KTS Logistics
Pty Ltd.

The Liquidator can be reached at:

         Christopher J. Palmer
         O'Brien Palmer
         Level 4, 23 Hunter Street
         Sydney, New South Wales 2000
         Australia


LUCRATIVE FINANCIAL: To Declare Dividend on October 10
------------------------------------------------------
Lucrative Financial Solutions Pty Ltd will declare its first
priority dividend on October 10, 2006.

Priority creditors who were unable to prove their claims by
October 3, 2006 are excluded from sharing in the dividend
distribution.

As reported by the Troubled Company Reporter - Asia Pacific, the
company declared its first priority dividend on October 28,
2005.

The Liquidator can be reached at:

         M. E. Slaven
         Rangott Slaven Hundy
         Unit 12, Level 3, Engineering House
         11 National Circuit
         Barton, Australian Capital Territory 2600
         Australia
         Telephone:(02) 6285 1430
         Facsimile:(02) 6281 1966


MARKET DYNAMICS: Liquidation Petition Hearing Set November 16
-------------------------------------------------------------
Carat New Zealand Ltd filed with the High Court of Auckland a
liquidation petition against Market Dynamics NZ Ltd on August
11, 2006.

The application will be heard before the Court on November 16,
2006, at 10:00 a.m.

The Solicitor for the Petitioner can be reached at:

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


MOUNTAIN ROAD: Hearing of CIR's Bid Fixed on September 21
---------------------------------------------------------
On June 20, 2006, the Commissioner of Inland Revenue filed a
liquidation petition against Mountain Road Development Co Ltd.

The petition will be heard before the High Court of Auckland on
September 21, 2006, at 10:00 a.m.

The Solicitor for the Petitioner can be reached at:

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


NICK GORMLEY: Members Agree on Liquidation
------------------------------------------
Members of Nick Gormley Print Solutions Pty Ltd convened on
August 25, 2006, and agreed to liquidate the Company's business
operations.

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

The Joint and Several Liquidators can be reached at:

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


NGUNGURU FISHERTON: Court Set to Hear CIR's Liquidation Bid
-----------------------------------------------------------
A petition to liquidate Ngunguru Fisherton Ltd will be heard
before the High Court of Auckland on October 12, 2006, at 10:00
a.m.

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

The Solicitor for the Petitioner can be reached at:

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


NURSERYROOM LIMITED: Creditors Must Prove Debts by September 28
---------------------------------------------------------------
Creditors of Nurseryroom Ltd are required to submit their proofs
of debt to Joint Liquidators Paul Graham Sargison and Gerald
Stanley Rea by September 28, 2006.

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

The joint Liquidators can be reached at:

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


QH PROMOTIONS: Members Agree to Close Business Operations
---------------------------------------------------------
At an extraordinary general meeting of QH Promotions Pty Ltd on
August 25, 2006, members agreed that it is in the Company's best
interests to wind up its operations.

Subsequently, the creditors at a meeting held that same day
named Richard Herbert Judson liquidator.

The Liquidator can be reached at:

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


REGIONAL GASTRONOMIC: Members & Creditors to Hear Wind-Up Report
----------------------------------------------------------------
Members and creditors of Regional Gastronomic Services Pty Ltd
will hold a final meeting on October 3, 2006, at 10:30 a.m.

During the meeting, Liquidator Stephen Jay will report about the
Company's wind-up and property disposal exercises.

The Liquidator can be reached at:

         Stephen Jay
         c/o Nicholls & Co
         Chartered Accountants
         PO Box 1250
         Dubbo, New South Wales 2830
         Australia


R & H PRICE: Set to Declare Dividend on October 18
--------------------------------------------------
R & H Price Transport Pty Ltd will declare its first and final
dividend to creditors on October 18, 2006, to the exclusion of
those who cannot prove their claims by October 4, 2006.

The Liquidator can be reached at:

         S. J. Hundy
         Unit 12, Level 3, Engineering House
         11 National Circuit
         Barton, Australian Capital Territory
         Australia


RIVERLINE LIMITED: Liquidation Commenced on August 18
-----------------------------------------------------
The liquidation of Riverline Ltd commenced on August 18, 2006,
following the appointment of Robert Laurie Merlo as liquidator.

Accordingly, Mr. Merlo required the creditors of the company to
prove their debts by September 18, 2006.  Failure to present
proofs of claims will exclude a creditor from sharing in any
distribution the company will make.

The Liquidator can be reached at:

         R. L. Merlo
         Merlo Burgess & Co. Limited
         P.O. Box 51-486, Pakuranga
         Auckland, New Zealand
         Telephone: (09) 520 7101
         Facsimile: (09) 529 1360
         e-mail: merloburgess&co@xtra.co.nz


S & G BRICKLAYERS: Members and Creditors to Convene on October 4
----------------------------------------------------------------
A final meeting of the members and creditors of S&G Bricklayers
Pty Ltd will be held on October 4, 2006, 11:00 a.m., at
Boardroom, Venn Milner & Co Chartered Accountants, Suite 1, 43
Railway Road, Blackburn, Victoria.

During the meeting, Liquidator Leonard A. Milner will report on
the Company's wind-up exercise and property disposal.


SARAH JANE: Members Agree to Wind Up Firm
-------------------------------------------
Members of Sarah Jane Pty Ltd convened on August 25, 2006, and
agreed to shut down the Company's business operations.

Subsequently, Gregory J. Parker was appointed as liquidator at a
creditors' meeting held that same day.

The Liquidator can be reached at:

         Gregory J. Parker
         Parker Insolvency
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia


SDI TECHNOLOGIES: Prepares to Declare Dividend to Creditors
-----------------------------------------------------------
SDI Technologies (Australia) Pty Ltd will declare its first and
final dividend on September 21, 2006.

Creditors who cannot prove their claims by September 21, 2006,
will be excluded from sharing in any distribution the Company
will make.

As reported by the Troubled Comany Reporter - Asia Pacific on
July 12, 2006, SDI Technologies was placed in a members'
voluntary liquidation on June 9, 2006. Jamieson Louttit was
appointed as liquidator.

The Liquidator can be reached at:

         Jamieson Louttit
         Chartered Accountant
         Jamieson Louttit & Associates
         Suite 73, Level 15
         88 Pitt Street
         Sydney, New South Wales 2000
         Telephone:(02) 9231 0505
         Facsimile:(02) 9231 0303


TEILIS FINANCIAL: Former Directors Face Fraud Charges
-----------------------------------------------------
Karl Heinz Hermann Veljkovic, of Berwick, and Barry John Patrick
of Pakenham, Victoria, have appeared before the Melbourne
Magistrates Court on charges of attempting to pervert the course
of justice after an investigation by the Australian Securities
and Exchange Commission.

These charges follow fraud and other charges brought by the ASIC
against Messrs. Veljkovic and Patrick in March 2006 after an
investigation into the operation of an unlicensed financial
services business, Teilis Financial Services Pty Ltd, which is
in liquidation.

The ASIC alleges that after these criminal charges had been
issued, Messrs. Patrick and Veljkovic informed some of the
investors that they would be treated less favorably as creditors
while they remained witnesses in respect of the charges brought
against them by the ASIC.

The ASIC alleges Mr. Veljkovic was knowingly involved in
operating Teilis without a license and induced investors to
rollover their superannuation benefits into self-managed
superannuation funds.  It is alleged these funds were then used
to support other companies and businesses associated with Mr.
Veljkovic, in particular the operation of petrol stations in the
Gippsland towns of Moe, Morwell, and Rawson.

Other charges relate to the circumstances in which companies
associated with Messrs. Veljkovic and Patrick obtained various
loans and other forms of financial accommodation.

Mr. Veljkovic faces a total of 22 counts, including:

   1. obtaining property by deception;

   2. fraudulently inducing persons to redeem their
      superannuation;

   3. providing unlicensed investment advice;

   4. fraudulently inducing persons to deal in securities;

   5. using his position as company director to gain a financial
      advantage;

   6. operating a securities business without a dealer's
      license;

   7. failing to disclose pecuniary interests when making
      investment recommendations;

   8. failing to keep company books and records;

   9. failing to provide assistance to a company liquidator; and

  10. attempting to pervert the course of justice

On April 28, 2006, Mr. Patrick was committed to stand trial in
the County Court of Victoria on a total of nine charges,
including:

   -- obtaining property by deception;
   -- failing to keep company books and records; and
   -- failing to provide assistance to a company liquidator

The Magistrate, Mr. Hodgens, committed both men to appear before
the County Court of Victoria on November 28, 2006:

   * Mr. Veljkovic in relation to all charges; and

   * Mr. Patrick in relation to the sole charge against him then
     before the Court of attempting to pervert the course of
     justice.

The Commonwealth Director of Public Prosecutions is prosecuting
the matter.

                          Background

The six companies operated by Messrs. Veljkovic and Patrick
were:

   1. Teilis Financial Services Pty Ltd,
   2. Aarosonic Credits Limited,
   3. Supatrust Finance Ltd,
   4. Pacific Petroleum Services Pty Ltd,
   5. H.B.L Holdings Pty Ltd, and
   6. Texol Petroleum Services Pty Ltd

On October 12, 2001, the ASIC successfully applied for Federal
Court orders appointing a liquidator to the six companies and
restraining Messrs. Veljkovic and Patrick and their wives from:

   * soliciting money from regulated superannuation funds for an
     unregistered managed investment scheme;

   * carrying on an unlicensed securities business which
     involved the soliciting of money from regulated
     superannuation funds; and

   * carrying on an unlicensed investment advice business which
     comprised advice to a regulated superannuation fund.

The liquidator advised that there were insufficient funds
available for any return to the investors.


THE WAM COMMUNICATIONS: Members Appoint Liquidator
--------------------------------------------------
At a general meeting held on August 25, 2006, members of The Wam
Communications Group Pty Ltd resolved to voluntarily wind up the
Company's operations.

Daniel Jean Civil was appointed liquidator at the creditors'
meeting held later that day.

The Liquidator can be reached at:

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


TIP TOP: Members Set to Meet on September 25
--------------------------------------------
A final meeting of the members of Tip Top Blinds Pty Ltd will be
conducted on September 25, 2006, 12:00 a.m., at 46-50 Buckland
Street, Clayton Victoria.

During the meeting, Liquidator Peter Kinderman will give the
accounts of the Company's wind-up proceedings.


TONY'S TOW: Members Opt for Voluntary Liquidation
-------------------------------------------------
The members of Tony's Tow Bars and Trailers Pty Ltd on August
18, 2006, decided that the Company should wind up its operations
voluntarily and appoint Stephen Jay as liquidator.

The Liquidator can be reached at:

         Stephen Jay
         Suite 103, 1st Floor
         Wollundry Chambers
         Johnston Street
         Wagga Wagga, New South Wales 2650
         Australia


TOORAK SAVANNA: Placed Under Voluntary Liquidation
--------------------------------------------------
At an extraordinary general meeting of the members of Toorak
Savanna Pty Ltd on August 25, 2006, it was agreed that a
voluntary wind-up of the Company's operations is appropriate and
necessary.

In this regard, G. A. Marx was named official liquidator.

The Liquidator can be reached at:

         G. A. Marx
         Suite 601
         3 Waverley Street
         Bondi Junction, New South Wales 2022
         Australia


TREVISA HOLDINGS: Shareholders Opt for Voluntary Liquidation
------------------------------------------------------------
Shareholders of Trevisa Holdings Ltd resolved on August 16,
2006, to place the company under voluntary liquidation.

Accordingly, Rhys Michael Barlow was appointed as official
liquidator.

The Liquidator can be reached at:

         Rhys Michael Barlow
         c/o BDO Spicers, Chartered Accountants
         Level Two, BDO House
         99-105 Customhouse Quay
         (P.O. Box 10-340), Wellington
         New Zealand
         Telephone: (04) 472 5850
         Facsimile: (04) 473 3582
         e-mail: rhys.barlow@wlg.bdospicers.com


TRIMACAL PTY: Members Resolve to Wind Up Firm
---------------------------------------------
After their general meeting on August 24, 2006, held at The
Broke Village Store, Broke, New South Wales, the members of
Trimacal Pty Ltd decided to voluntarily wind-up the Company's
operations.

The Liquidator can be reached at:

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


TRINITY FINANCIAL: Schedules Final Meeting for October 2
--------------------------------------------------------
Members of Trinity Financial Technicians Pty Ltd will hold a
final meeting on October 2, 2006, at 6:00 p.m., for them to
receive Liquidator Bruce Elliot Rowntree's final account showing
how the Company was wound up and how its property was disposed
of.

The Liquidator can be reached at:

          Bruce Elliot Rowntree
          Level 2
          2 Barrack Street, Sydney
          Australia


VENTURE PUBLISHING: Enters Liquidation Proceedings
--------------------------------------------------
Shareholders of Venture Publishing Ltd appointed Robert Laurie
Merlo as liquidator on August 18, 2006.

Subsequently, the creditors of the company are required to prove
their debts to Mr. Merlo by September 18, 2006.  Failure to
present proofs of claim will exclude a creditor from sharing in
any distribution the company will make.

According to the Troubled Company Reporter - Asia Pacific, PMP
Digital Ltd filed a petition to liquidate the company on July
11, 2006.  The petition was scheduled for hearing before the
High Court of Wellington on August 21, 2006.

The Liquidator can be reached at:

         R. L. Merlo
         Merlo Burgess & Co. Limited
         P.O. Box 51-486, Pakuranga
         Auckland, New Zealand
         Telephone: (09) 520 7101
         Facsimile: (09) 529 1360
         e-mail: merloburgess&co@xtra.co.nz


UNISTYLE CONSTRUCTIONS: Creditors Opt to Shut Down Business
-----------------------------------------------------------
The creditors of Unistyle Constructions Pty Ltd held a meeting
on August 24, 2006, and agreed to shut down the Company's
business operations.

They also decided to appoint John William Cunningham and John
Richard Park as joint and several liquidators.

The Liquidator can be reached at:

         John William Cunningham
         John Richard Park
         Ramsay Clout
         Suite 2, 63 The Esplanade
         Cotton Tree


UNITED FINANCE: Creditors Must Prove Debts
------------------------------------------
Liquidator A. Koutzoumis of United Finance Pty Ltd required
creditors to submit their proofs of debt after 21 days from
August 28, 2006, for them to share in any distribution the
Company will make.

The Troubled Company Reporter - Asia Pacific previously reported
that on June 16, 2006, shareholders of United Finance convened
and resolved to shut down the company's operations.

The Liquidator can be reached at:

         A. Koutzoumis
         Holden & Bolster Avenir Pty Ltd
         Level 31, 264-278 George Street
         Sydney, New South Wales 2000
         Australia


USABILITY BY DESIGN: Enters Voluntary Liquidation
-------------------------------------------------
At an extraordinary general meeting of the members of Usability
By Design Pty Ltd on August 24, 2006, it was agreed that a
voluntary wind-up of the Company is appropriate and necessary.

Daniel I. Cvitanovic was appointed as liquidator at the
creditors' meeting held that same day.

The Liquidator can be reached at:

         Daniel I. Cvitanovic
         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


W.&M. WEISZ: To Declare Final Dividend on September 26
------------------------------------------------------
W.&M. Weisz Investments Pty Ltd will declare its first and final
dividend on September 26, 2006.

Creditors who were not able to prove their claims by
September 25, 2006 will be excluded from sharing in any
distribution the Company will make.

The Liquidator can be reached at:

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


WINDEMERE CHAMBERS: Appoints Joint Liquidators
----------------------------------------------
After their extraordinary general meeting on August 29, 2006,
the members of Windemere Chambers Pty Ltd decided to voluntarily
wind up the Company's operations.

Subsequently, D.G. Young was appointed liquidator.

The Liquidator can be reached at:

         D. G. Young
         Pitcher Partners
         Level 3, 60 Castlereagh Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9221 2099
         Facsimile:(02) 9223 1762


* NZ's Official Cash Rate Unchanged at 7.25%, A. Bollard Says
-------------------------------------------------------------
In a statement, New Zealand Reserve Bank Governor Alan Bollard
says economic activity appears to have been stronger than
expected through the first half of 2006, with the expansion of
employment particularly surprising.

Net exports and government spending have contributed to the
buoyancy in activity, while the easing in household consumption
has been more moderate than projected.  Similarly, while the
housing market has slowed, it continues to exhibit momentum.

Mr. Bollard notes that further dampening effects on demand from
high oil prices and higher effective mortgage rates over the
period ahead, is expected.  "But, even allowing for these
effects, we see more inflation pressure than in earlier
reviews," Mr. Bollard says.

According to Mr. Bollard, with overall resource pressures easing
more gradually than forecast, annual inflation is not expected
to fall below 3% until late 2007.  Oil price increases and the
depreciation of the exchange rate earlier in the year have
pushed headline annual inflation to 4% in the June quarter.
Inflation expectations have continued to drift upwards,
influenced by the rising headline inflation numbers.

While second-round flow-on effects have so far been limited,
this remains a risk given the persistence of demand and labor
market pressures, Mr. Bollard explains, noting that that wages
and prices are assumed to be not unduly influenced by the short-
term peak in headline inflation.

"Given the continued strength of medium-term inflation
pressures, the outlook for monetary policy has become more
finely balanced.  With inflation now taking longer to move
comfortably within the target band of the Policy Targets
Agreement, there is little leeway to withstand further surprises
to medium-term inflation pressures," Mr. Bollard relates.

"In these circumstances, we are less confident that no further
policy tightening will be required in this cycle.  In this
regard, we will want to be clearer about the economic situation
and outlook.  However, there is clearly no prospect of an OCR
cut for some considerable time," Mr. Bollard advises.


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

B & P INTERTRADE: Shareholders Opt to Wind-Up Company
-----------------------------------------------------
On August 21, 2006, members of B & P Intertrade Ltd passed a
special resolution to voluntarily wind up the Company and
appoint Chiu Wai Hon and Lau Wai Ming as joint and several
liquidators.

By virtue of an ordinary resolution, an audit of the
Liquidator's statement of accounts is not required.


BANK OF COMMUNICATIONS: Names Li Jun as Bank's New Governor
----------------------------------------------------------
China's Bank of Communications has appointed Li Jun as the
bank's new governor at a provisional board meeting held on
September 13, 2006, the Xinhuanet News reports.

Bank spokesman, Song Feng, told the paper that Mr. Li, was also
appointed vice chairman of the bank's board.

"The board believes Li has a deep understanding about the
history, culture, system and management of the Bank of
Communications," Mr. Song said.

Xinhuanet notes that Mr. Li's financial career dates back to
August 1975 when he started working for the Wuhan branch of the
People's Bank of China in central China's Hubei Province.  From
October 1985 to October 1990,he worked for the Wuhan branch of
the Industrial and Commerce Bank.

Moreover, from October 1990 to April 1998, Li was vice general
manager and later governor of the Wuhan branch of the Bank of
Communications.

He has been working as auditor general, director, managing
director, executive director and vice governor for the Bank of
Communications since April 1998.

                          *     *     *

Founded in 1908, Bank of Communications is one of four oldest
banks in China and one of the early note-issuing banks of China.
BOCOM was also China's first state-owned shareholding commercial
bank.  With a 20% stake owned by HSBC, BOCOM was listed in Hong
Kong in June 2005, becoming the first major commercial bank from
the Chinese mainland to be listed overseas.

On September 29, 2005, the Troubled Company Reporter - Asia
Pacific reported that Standard & Poor's raised the bank
fundamental strength ratings on Bank of China Ltd 'C' from 'D+'.

Earlier, TCR-AP reported that the Bank faced a fraud case
involving CNY220 million at its Jinzhou branch in Liaoning.
According to the National Audit Office, several staff members at
the branch had forged documents to deceive the lender's Shanghai
headquarter about the cancellation of loans made out to 175
companies.


BRAND NEW: Annual Meeting Set for September 20
-----------------------------------------------
Members and creditors of Brand New Group Ltd will convene for
their annual meeting on September 20, 2006, 3:30 p.m., at Room
1005, 10/F., Kowloon Building, 555 Nathan Road, Kowloon, Hong
Kong.

During the meeting, Liquidators Kong Tak Yuen and Chung Cheuk
Ming will present a report regarding the company's wind-up.


CHINA SOUTHERN: To Launch Regular Flights to Changsha and Seoul
---------------------------------------------------------------
China Southern Airlines will launch regular flights between the
central city of Changsha and Seoul starting in October, the
People Daily reports, citing a company executive.

Xu Xiaolin, director of the market office of the Hunan branch of
China Southern, told the paper that the new service will offer
five return flights a week on Mondays, Wednesdays, Thursdays,
Fridays and Sundays between Changsha -- capital of central
China's Hunan Province -- and Seoul of the Republic of Korea.

The flights will depart from Changsha at 11 a.m. (Beijing time)
and arrive in Seoul at 2:35 p.m. (Seoul time).  The return
flights will depart from Seoul at 3:35 p.m. and arrive in
Changsha at 5:35 p.m., Mr. Xu said.

Mr. Xu added that prior to the new regular flights, only
chartered flights were available between Changsha and Seoul.
They were operated by two Chinese airlines, the China Southern
Airlines and the China Eastern Airlines, and two ROK airways -
Korean Air and Asiana Airlines.

"The chartered flight service is for tourist groups, but not
suitable for individual business people," she said. "The new
service will be more convenient for people in Hunan and the
ROK."

                          *     *     *

Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally.  It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.

On May 1, 2006, Fitch Ratings has downgraded China Southern
Airlines Company Limited's Foreign Currency and Local Currency
Issuer Default Ratings to B+ from BB-.

The Troubled Company Reporter - Asia Pacific reported on August
21, 2006, that the carrier posted a net loss of CNY825 million
for the first half of 2006 due to soaring fuel prices and rapid
expansion.


DUNHUANG (CHINA): Creditors' Proofs of Claim Due on September 22
----------------------------------------------------------------
Liquidator Kong Chi How, Johnson requires the creditors of
Dunhuang (China) Company Ltd to submit their proofs of claim by
September 22, 2006.

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

The Liquidator can be reached at:

         Kong Chi How, Johnson
         29/F, Wing On Centre
         111 Connaught Road Central
         Hong Kong


GAIN FIELD: Creditors' Must Prove Claims by September 28
--------------------------------------------------------
Creditors of Gain Field Ltd are required to submit their proofs
of claim to Liquidator Fan Sai Yee by September 28, 2006.

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

The Liquidator can be reached at:

         Fan Sai Yee
         Rooms 1009-1012, 10th Floor
         K. Wah Centre, 191 Java Road
         North Point, Hong Kong


H.C.T. LTD: Creditor's Proofs of Debt Due on October 3
------------------------------------------------------
Creditors of H.C.T. Ltd are required to submit their proofs of
claim to Liquidators Puen Wing Fai and Lo Yeuk Ki, Alice by
October 3, 2006, at 5:00 p.m.

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

According to the Troubled Company Reporter - Asia Pacific, the
company's sole shareholder voluntarily wound up the company's
operations on August 25, 2006.

The Liquidator can be reached at:
PD Ref 223 B
         Puen Wing Fai
         Lo Yeuk Ki, Alice
         21/F, Kwan Chart Tower
         6 Tonnochy Road
         Wanchai, Hong Kong


HERO RAY: Final Members' Meeting Set on October 5
-------------------------------------------------
Members of Hero Ray Investment Ltd will convene for their final
meeting at Room 601, Chevalier House, 45-51 Chatham Road, Tsim
Sha Tsui, Kowloon, on October 5, 2006, at 11:00 a.m.

At the meeting, members will receive Liquidator Cheung Chui Ping
Chaplin's final account of the Company's wind-up operation.


HIH UNDERWRITING: Annual Meetings Slated for October 5
------------------------------------------------------
Members and creditors of HIH Underwriting Services (Asia) Ltd
will convene for their annual meetings on October 5, 2006, at
9:00 a.m. and 9:30 a.m. respectively at 20/F, Prince's Building,
10 Chater Road, Central, Hong Kong.

During the meetings, Liquidator Jan G W Blaauw will present
accounts of the company's wind-up exercises.


JASPER TECHNOLOGY: Creditors Must Prove Debts by September 15
-------------------------------------------------------------
Creditors of Jasper Technology Ltd are to submit their proofs of
debts by September 15, 2006, Liquidator Desmond Chung Seng
Chiong.

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

The Joint and Several Liquidator can be reached at:

         Desmond Chung Seng Chiong
         c/o Ferrier Hodgson Limited
         14/F, Hong Kong Club Building
         3A Chater Road
         Hong Kong


LEADING TOP: Members' Final Meeting Fixed on October 3
------------------------------------------------------
A final meeting of the members of Leading Top Development Ltd
will be conducted on October 3, 2006, at 11:00 a.m.

During the meeting, Liquidator Chan Sun Kwong will present final
accounts of the Company's wind-up operations and property
disposal activities.

According to the Troubled Company Reporter - Asia Pacific,
creditors of the company were required to submit their proofs of
claim on August 21, 2006, for them to share in any distribution
the company will make.

The Liquidator can be reached at:
PD Ref 255 B
         Chan Sun Kwong
         Room 102, Oriental Centre
         67-71 Chatham Road
         Tsimshatsui, Kowloon
         Hong Kong


LITAK SHIPPING: Creditors' Proofs of Claim Due on October 3
-----------------------------------------------------------
Creditors of Litak Shipping Company Ltd are required to prove
their claims by October 3, 2006, or be excluded from sharing in
any distribution the Company will make.

On August 28, 2006, members resolved to voluntarily wind up the
company's operations and appoint Ricky P.O. Chong and Cordelia
Tang as liquidators.

The Joint and Several Liquidators can be reached at:

         Ricky P. O. Chong
         Cordelia Tang
         905 Silvercord, Tower 2
         30 Canton Road, Tsimshatsui
         Kowloon, Hong Kong


MIRACLE TIME: Names Joint and Several Liquidators
-------------------------------------------------
Simon Richard Blade and Bruno Arboit were appointed as joint and
several liquidators for Miracle Time Investment Ltd on August
21, 2006.

The Joint and Several Liquidators can be reached at:

         Simon Richard Blade
         Bruno Arboit
         Baker Tilly Hong Kong
         12/F, China Merchants Tower
         Shun Tak Centre
         168-200 Connaught Road, Central
         Hong Kong


NEW GAGNEUR: Members' Meeting Slated for October 12
---------------------------------------------------
Members and creditors of New Gagneur Ltd will convene for their
meetings at 35th Floor, One Pacific Place, 88 Queensway, Hong
Kong, on October 12, 2006.

At the meetings, members and creditors will receive Liquidators'
Lai Kar Yan and Darach E. Haughey's final account of the
Company's wind-up operations.


PRODUCT SAFETY (HK): Creditors Must Prove Debts by October 1
------------------------------------------------------------
Liquidator Andrew George Hung, require the creditors of Product
Safety Coordination (HK) Ltd to prove their debts by October 1,
2006.

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

The Liquidator can be reached at:

         Andrew George Hung
         Unit 801B, Dina House
         Ruttonjee Centre
         11 Duddell Street
         Central, Hong Kong


PITCAIRN SHIPPING: Liquidators Ceases to Act for Company
--------------------------------------------------------
Ying Hing Chiu and Chung Miu Yin, Diana ceased to act as joint
and several liquidators for Pitcairn Shipping Company Ltd on
August 28, 2006.

The Liquidator can be reached at:

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


PRODUCT SAFETY (INT'L): Creditors' Proofs of Claim Due on Oct. 1
----------------------------------------------------------------
Creditors of Product Safety Coordination (HK) Ltd are required
to submit their proofs of claim to Liquidator Andrew George Hung
by October 1, 2006.

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

The Liquidator can be reached at:

PD Ref. 2Andrew George Hung
         Unit 801B, Dina House
         Ruttonjee Centre
         11 Duddell Street
         Central, Hong Kong


RIGHT MASTER: Final Members Meeting Set on October 3
----------------------------------------------------
Members of Right Master Investments Ltd will convene for their
final meeting on October 3, 2006, 10:00 a.m., at 8th Floor,
Gloucester Tower, The Landmark, 11 Pedder Street, Central, Hong
Kong.

At the meeting, Liquidator Iain Ferguson Bruce will present a
report regarding the Company's wind-up and the manner its
properties were disposed of.


SKY CHAMPION: Creditors' Proofs of Debt Due on September 27
-----------------------------------------------------------
Liquidator Raymond Tang Wai Man requires creditors of Sky
Champion Consultants Ltd to submit their proofs of debt by
September 27, 2006.

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

On August 28, 2006, members of the company appointed Mr. Tang as
the company's Liquidator.

The Liquidator can be reached at:

         Raymond Tang Wai Man
         C C Wu Building
         302-8 Hennessy Road
         Wanchai, Hong Kong


TAK SHING: Appoints Joint and Several Liquidators
-------------------------------------------------
On August 18, 2006, members and creditors of Tak Shing Buying
Office Ltd appointed Au-Yong Shong, Samuel and Wan Ho Yuen,
Terence, as the company's joint and several Liquidators.

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

The Joint and Several Liquidators can be reached at:

         Au-Yong Shong, Samuel
         Wan Ho Yuen, Terence
         Room 1602-03
         16/F, CLI Building
         313 Hennessy Road, Wan Chai
         Hong Kong


TCL MULTIMEDIA: Mulls on Restructuring European Operations
----------------------------------------------------------
TCL Multimedia Technology Holdings Limited is expected to
release a restructuring plan for its European business in
October, aiming to turn around the unit's heavy losses, China
Daily reports.

The report cites Chairman and CEO Li Dongsheng, as saying with
heavy losses, we must carry out a full-scale restructuring of
our European business, adding that one reason for the huge
losses was a lack of attention to European business.

China Daily recounts that in 2004, TCL acquired the TV unit of
French electronics firm Thomson, which uses the Thomson brand in
Europe and RCA in North America.  TCL grouped all its TV
businesses under TMT.

However, in the first half of 2006, its European business landed
the company with CNY763 million in losses, dragging the group's
performance down to a net loss of CNY736 million yuan.

To turn around the loss-making businesses in Europe and North
America, Mr. Li personally took over the role of TMT CEO, trying
to use his personal authority to push an aggressive
restructuring program, called Total Operating Performance, the
China Daily relates.

The program is designed to reform the organization, push the
shift to flat panel products, reduce costs by cutting
unnecessary links, and speed up innovation.

In addition, China Daily says the program could result to
reorganization of its factories in Europe, thus laying off some
workers.  In North America TMT has merged its three Mexican
factories, cutting the number of employees from 4,200 to 2,500.

According to Shanghai Daily, the restructuring plan involves a
consolidation project for its European-based sector.  The
project is expected to be launched at the end of this month and
should be complete by the beginning of next month, the Shanghai
Daily says.

Shanghai Daily cites earlier reports as saying TCL was in
discussions with a European financial group, which would aid in
the consolidation.  Mr. Li didn't deny the report but did not
disclose the details, the paper relates.

Mr. Li expects the restructuring to take one year and by then
TMT's European business will be back in the black, China Daily
says.

                          *     *     *

Headquartered in New Territories, Hong Kong, TCL Multimedia
Technology Holdings Limited -- http://www.tclcom.com/-- is
formerly known as TCL International Holdings Limited.  The
Group's principal activities are designing, manufacturing and
selling electronic products like colored TV, DVD players, VCD
players, home cinema hi-fi systems, mobile handsets, internet
related information technology products, refrigerators and
washing machines.  Its other activity includes trading
electronic parts and components used in the production of color
television sets.

On August 31, 2006, the Troubled Company Reporter - Asia Pacific
reported that the company posted CNY763 million losses of TCL
Multimedia Technology Holdings Limited's European operations,
which caused losses of the TCL Corp. group to widen to CNY737.56
million.


TECK SOON: Names Mar and Ting as Liquidators
--------------------------------------------
On August 25, 2006, members of Teck Soon Hong Godown &
Transportation Ltd appointed Selwyn Mar and Wong Yue Ting,
Thomas as joint and several liquidators to oversee the Company's
wind-up.

The Joint and Several Liquidators can be reached at:

         Selwyn Mar
         Wong Yue Ting, Thomas
         11/F, Fortis Bank Tower
         77-79 Gloucester Road
         Hong Kong


WISE FAVOUR: Liquidator Cease to Act for Company
-------------------------------------------------
On August 23, 2006, Man-Kou Tan ceased to act as liquidator of
Wise Favour Transportation Company Ltd.

According to the Troubled Company Reporter - Asia Pacific, the
Liquidator presented a wind-up report with the members of the
Company on the same day.

The former Liquidator can be reached at:

         Man-Kou Tan
         Flat P, 12/F, Kaiser Estate
         Phase 3, 11 Hok Yuen Street
         Hung Hom, Kowloon


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

ALLAHABAD BANK: Considers Overseas Borrowing
--------------------------------------------
Allahabad Bank might explore the option of borrowing from the
overseas market once its Hong Kong branch became fully
operational from November 2006, The Hindu reports.

Bank Chairman and Managing Director A C Mahajan said that there
was a need to raise INR1,000 crore as Tier-II capital during the
current financial year.  For this, the bank may consider raising
funds in Hong Kong, adding that the other option of raising sub-
ordinate debt would also be explored.

To boost Tier-I capital, the bank might consider issue of
preference capital once the Banking Mergers and Acquisitions
Amendment Bill received Presidential assent.  The quantum of
Tier I capital, the core capital of the bank, was pegged at
INR3,000 crore.

Aside from Hong Kong, the bank is also looking into other
countries like Australia and New Zealand for expanding its
presence overseas, Mr. Mahajan said.  He adds that the bank's
representative office at Shenzhen in China might also be
converted into a full-fledged branch.

                       About Allahabad Bank

Allahabad Bank -- http://www.allahabadbank.com-- is a public
sector bank in India.  Allahabad Bank's offerings include
personal loans, AllBank-Expo scheme, loan against National
Savings Certificate and Kisan Vikas Patra, housing finance,
furnishing loan, car finance and education loan.  The bank
offers a range of deposit schemes to the non-resident Indians.
Allahabad Bank has retail banking boutique branches all over
India.  Its other services include AllBank-Property, All
Ayushman Bima Yojana, Cash Management Services, Kisan Credit
Card, Flexi-Fix Deposit, Gold Deposit, SSI Finance, Gold Card
Scheme for Exporters, Kisan Shakti Yojana, Bancassurance and
Mutual fund, Real Time Gross Settlement and Clean Note Policy.

                          *     *      *

The Troubled Company Reporter - Asia Pacific reported on
September 14, 2006, that Fitch Ratings assigned an Individual
rating of C/D to Allahabad Bank.  The Support rating is affirmed
at '4'.  The outlook on the rating is stable.


ALLAHABAD BANK: Sets INR3.6 Billion Loans for OTS
-------------------------------------------------
Allahabad Bank is mulling major expansion plans over the next
five years, Economic Times reports.

The bank is planning to shore up its total business mix -- total
advances and deposits -- to INR2 lakh crore from the present
INR80,000 crore.  The bank is also aiming to clean up its
balance sheet and has identified small and medium loan accounts,
earmarking INR3.6 billion for a one-time settlement.

The bank further plans to reduce gross non-performing assets to
under 3% and net NPA to under 0.5% by March 31, 2006.  The bank
currently has a gross NPA and net NPA of 3.6% and 0.8%
respectively.  Its gross NPA amounts to almost INR10 billion.

Improvement in asset quality and upgrade in technology is also
among its planned improvements.

                       About Allahabad Bank

Allahabad Bank -- http://www.allahabadbank.com-- is a public
sector bank in India.  Allahabad Bank's offerings include
personal loans, AllBank-Expo scheme, loan against National
Savings Certificate and Kisan Vikas Patra, housing finance,
furnishing loan, car finance and education loan.  The bank
offers a range of deposit schemes to the non-resident Indians.
Allahabad Bank has retail banking boutique branches all over
India.  Its other services include AllBank-Property, All
Ayushman Bima Yojana, Cash Management Services, Kisan Credit
Card, Flexi-Fix Deposit, Gold Deposit, SSI Finance, Gold Card
Scheme for Exporters, Kisan Shakti Yojana, Bancassurance and
Mutual fund, Real Time Gross Settlement and Clean Note Policy.

                          *     *      *

The Troubled Company Reporter - Asia Pacific reported on
September 14, 2006, that Fitch Ratings assigned an Individual
rating of C/D to Allahabad Bank.  The Support rating is affirmed
at '4'.  The outlook on the rating is stable.


ALLAHABAD BANK: Test Runs CB Software in October
------------------------------------------------
Allahabad Bank expects to begin trials of its core-banking
software in October 2006 across 25 of its 2,015 branches and
complete the network by March 2009, the Financial Express
states.

The data center has been set up at the Reliance Infocomm campus
at Vashi in Mumbai, while the disaster recovery center is being
set up at Lucknow, Bank Chairman and Managing Director A C
Mahajan said.  Cleaning of data is being done at the 25 branches
that will be in the pilot project, Mr. Mahajan added.

The Financial Express also cites Mr. Mahajan as saying that 375
branches would be on the CBS next year, and the rest by 2009.

                       About Allahabad Bank

Allahabad Bank -- http://www.allahabadbank.com-- is a public
sector bank in India.  Allahabad Bank's offerings include
personal loans, AllBank-Expo scheme, loan against National
Savings Certificate and Kisan Vikas Patra, housing finance,
furnishing loan, car finance and education loan.  The bank
offers a range of deposit schemes to the non-resident Indians.
Allahabad Bank has retail banking boutique branches all over
India.  Its other services include AllBank-Property, All
Ayushman Bima Yojana, Cash Management Services, Kisan Credit
Card, Flexi-Fix Deposit, Gold Deposit, SSI Finance, Gold Card
Scheme for Exporters, Kisan Shakti Yojana, Bancassurance and
Mutual fund, Real Time Gross Settlement and Clean Note Policy.

                          *     *      *

The Troubled Company Reporter - Asia Pacific reported on
September 14, 2006, that Fitch Ratings assigned an Individual
rating of C/D to Allahabad Bank.  The Support rating is affirmed
at '4'.  The outlook on the rating is stable.


GMAC LLC: Mulls Bond Market Comeback
------------------------------------
General Motors Corporation's finance subsidiary, GMAC LLC,
unveiled plans to sell its first set of bonds in two years, RTT
News says, citing Bloomberg News.

According to RTT, GMAC could broker a deal after a
US$14-billion sale of a 51% stake to a group of investors led by
New York-based Cerberus Capital Management is completed.

A return to the bond market would signal increasing investor
confidence after the company's credit ratings were cut to non-
investment grade in May 2005, Detroit Free Press relates.

GMAC debt, a benchmark for investors for more than 30 years, has
rallied in the past 12 months.  The difference between the yield
on its US$4 billion of 8% bonds due in 2031 and Treasuries with
similar maturities is the narrowest in five years.

GMAC has US$247 billion of bonds and loans in about a dozen
currencies, Banknet 360 reports.  A study by J.P. Morgan Chase &
Co. earlier this year found that about 93% of junk bond funds
own GM debt.

However, Bloomberg says that GM's junk bonds are recovering as
Chief Executive Officer Rick Wagoner closes plants, cuts jobs
and sells more than US$17 billion of assets after posting a
US$10.6 billion loss last year, the first since 1992.  He is
also negotiating an alliance with Renault SA and Nissan Motor
Co.

"At the end of the year, GMAC's probably going to be back in
investment grade," Daniel Fuss, who oversees more than US$23
billion in fixed income as vice chairman of Loomis Sayles & Co.
in Boston, told Detroit Free Press.  "On that basis, the bonds
are cheap."

                         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 LLC has a subsidiary in India called GMAC Financial
Services India Limited.

The Troubled Company Reporter - Asia Pacific reported on
September 6, 2006, that 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'.


SILICON GRAPHICS: Wants to Reject Seven Executory Contracts
-----------------------------------------------------------
Silicon Graphics, Inc., and its debtor-affiliates ask the United
States Bankruptcy Court for the Southern District of New York
for authority to reject seven contracts, effective as of
Aug. 25, 2006.

The Debtors are party to:

    1. a U.S. business travel services agreement with American
       Express Travel Related Services Company, Inc., dated
       March 1, 2003;

    2. an American Express Corporate Travel Online
       Agreement with American Express, dated July 6, 2005;

    3. an American Express Interactive Travel Group Central
       E-Fulfillment Services Agreement with American Express,
       dated July 6, 2005;

    4. a co-marketing agreement with SpaceWorld Foundation,
       dated November 1, 2005, which contemplated the creation
       of a theatre utilizing certain visual graphics-related
       products of the Debtors;

    5. a consulting agreement with Atle Technology, Inc., dated
       September 29, 2005, under which, the Debtors pay about
       US$18,000 per month;

    6. a QualysGuard service user agreement, dated February 3,
       2004, with Qualys, Inc., wherein the Debtors pay Qualys
       around US$5,500 per month for network scanning security
       services; and

    7. a master services agreement, dated February 5, 2001, with
       Electronic Data Systems Corporation and EDS Information
       Services L.L.C., pursuant to which the Debtors pay about
       US$110,000 per month.

Shai Y. Waisman, Esq., at Weil, Gotshal & Manges LLP, in New
York, relates that after examining the needs of their
businesses, the Debtors concluded that the seven Contracts and
their related obligations constitute unnecessary expenses.
Continued compliance with the Contracts' terms would be
burdensome and would provide little benefit to the Debtors and
their estates.

Mr. Waisman discloses that rejection of the Contracts will not
prejudice the counterparties.

                     About Silicon Graphics

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

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

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

Debtor affiliates filing separate chapter 11 petitions:

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

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

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


SILICON GRAPHICS: Inks Stipulation with Intel & Constellation
-------------------------------------------------------------
Silicon Graphics, Inc., and its debtor-affiliates are parties to
numerous executory contracts with Intel Corporation, including a
development assistance and license agreement dated as of
March 12, 1998.

Pursuant to the Agreements, Silicon Graphics, Inc., and Intel
have been collaborating to develop, market and sell computer
server systems based on Intel microprocessors and related
products.

As of its bankruptcy filing, SGI owes Intel US$4,593,666 in
prepetition debts, which consist of:

   (i) US$205,746 in royalty fees for Intel software sold by SGI
       to its customers; and

  (ii) an accounts receivable balance of US$4,387,920 for
       microprocessor and related product purchases.

Also, as of May 8, 2006, Intel owes SGI US$6,010,072 in
prepetition debts, which consists of:

       (i) US$1,667,490 in cash credits relating to certain
           after-purchase discounts on Intel products utilized
           by SGI as components in their integrated computer
           systems, which SGI then sells to third parties;

      (ii) US$3,743,555 in pending Discount Credits;

     (iii) US$86,030 for returned products;

      (iv) US$95,000 in marketing assistance credits for the
           funding of joint marketing efforts; and

       (v) US$417,997 for advertising and related use of the
           "Intel Inside" logo.

The parties agree that Intel will be entitled to set off the SGI
Prepetition Debts against the Intel Prepetition Debts pursuant
to Section 553(a) of the Bankruptcy Code.  Following the set-
off, Intel will owe SGI US$1,416,406.

Accordingly, the parties stipulate that Intel will remit to
Silicon US$512,997, by check or wire transfer.

As of the date the US$512,997 payment is made:

    -- Intel will grant SGI a credit for US$903,408 to be
       applied to amounts due to Intel by SGI in the ordinary
       course of their business, from and after the Petition
       Date;

    -- the automatic stay is modified solely to allow Intel to
       set off the SGI Prepetition Debts and the Intel
       Prepetition Debts;

    -- SGI fully releases Intel from any claims relating to or
       arising from the Prepetition Debts.  However, Intel will
       not be released from its existing obligations to provide
       warranty, support and maintenance services on Intel
       products purchased by SGI either prior to, or after, the
       Petition Date; and

    -- Intel fully releases SGI from any claims relating to or
       arising from the Prepetition Debts, provided that SGI
       will not be released, acquitted, or discharged from:

         (i) any obligations owed to Intel arising from business
             between the parties from and after the Petition
             Date;

        (ii) any right of set-off or recoupment, other than
             those related to the Prepetition Debt Claims,
             arising from business between SGI and Intel prior
             to the Petition Date; or

       (iii) any rights of Intel under assumed contracts between
             the parties.

                     Constellation Stipulation

Silicon Graphics, Inc., and Constellation New Energy, Inc., are
parties to an electricity service agreement, dated as of
October 15, 2002, pursuant to which, Constellation provides
electricity services to Silicon.

The Parties agree that:

    * prior to filing for bankruptcy, Silicon deposited
      US$300,000 to Constellation, and Constellation agreed to
      return to Silicon US$150,000 of the amount held on
      deposit;

    * when it filed for bankruptcy, Silicon owed US$67,752 to
      Constellation for prepetition Services, which amount
      amends, modifies, and reduces the prepetition liability
      identified in Silicon's schedules of assets and
      liabilities;

    * as of August 30, 2006, Constellation holds a US$150,000
      deposit from Silicon; and

    * Constellation is entitled to set off the Prepetition Debt
      and the Deposit, leaving a Deposit balance of US$82,247.

Hence, the parties stipulate that the automatic stay will be
modified solely to the extent necessary to permit Constellation
to effectuate the Set-off.

Following the Set-off, Silicon will not be obligated to increase
the amount of the Remaining Deposit to US$150,000.  However,
Constellation may request an increase in the amount of the
Remaining Deposit in the event there is a material adverse
change in the Debtors' financial condition.

                      About Silicon Graphics

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

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

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

Debtor affiliates filing separate chapter 11 petitions:

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

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

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


SILICON GRAPHICS: Gets Okay to Hire Paul Hastings as IP Counsel
---------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York gave Silicon Graphics, Inc., and its debtor-affiliates
permission to employ Paul, Hastings, Janofsky & Walker LLP, as
their special intellectual property counsel, nunc pro tunc to
August 1, 2006.

As reported in the Troubled Company Reporter on Aug 24, 2006,
Paul Hastings will:

    (a) evaluate the impact of certain patents on the Debtors'
        business and reorganization plan;

    (b) defend the Debtors in the event that LGE commences any
        action or litigation in connection with its claims;

    (c) advise and counsel the Debtors on issues relating to
        certain patents, including litigation, negotiation,
        interpretation, and resolution of any disputes related
        to the patents; and

    (d) perform any other necessary legal services in
        furtherance of the firm's role as special counsel for
        the Debtors.

Paul Hastings' professionals will be paid based on their
customary hourly rates:

       Position                                 Hourly Rate
       --------                                 -----------
       Partners                               US$510 - US$750
       Counsel                                US$495 - US$730
       Associates                             US$260 - US$560
       Paraprofessionals and Staff             US$70 - US$285

The firm's attorneys expected to be most active in the Debtors'
Chapter 11 cases and their current hourly rates include:

       Professional                             Hourly Rate
       ------------                             -----------
       Ronald S. Lemieux                           US$685
       Terry D. Garnett                            US$575
       Vincent Yip                                 US$575
       Michael Edelman                             US$550
       Peter Weid                                  US$510
       Jay Chiu                                    US$490
       Vid Bhakar                                  US$485
       Todd Snyder                                 US$395
       Hua Chen                                    US$395
       Daniel Prince                               US$350

Mr. Lemieux assured the Court that Paul Hastings does not
represent or hold any interest adverse to the Debtors or their
estates.  Other than Ableco Finance LLC and General Electric
Capital Corporation, Paul Hastings did not and will not seek to
represent any entity or individual adverse to the Debtors in
their Chapter 11 proceedings, Mr. Lemieux tells Judge Lifland.

                      About Silicon Graphics

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

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

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

Debtor affiliates filing separate chapter 11 petitions:

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

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

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


UNITED WESTERN BANK: IDBI Takes Over for INR1.5 Billion
-------------------------------------------------------
United Western Bank Ltd will be bought by state-run Industrial
Development Bank of India Ltd, Reuters reports.  The deal is
worth INR1.5 billion.

IDBI edged out 16 other contenders, including Allahabad Bank,
Citigroup and Standard Chartered Plc.

Reuters explains that IDBI would pay INR28 cash for each United
Western share, according to the draft scheme of amalgamation
released by the central bank.  That amount represents a 30.5%
premium to United Western's closing price on Tuesday.

Bloomberg News reports that shareholders have until Sept. 27 to
consider the merger plan.  The central bank took over management
of Satara, Maharashtra-based United Western on Sept. 2 after two
years of losses wiped out its capital.

Reuters adds that the deal would see IDBI, a long-term-lender-
turned-bank, which has been struggling to grow in the absence of
an extensive branch network, gain United Western's 230 branches
and about 2 million customers.  IDBI now has 195 branches in 109
cities.  The added branches would more than doubled IBDI's
branches, giving it access to the affluent agricultural
community of Maharashtra, according to the Bloomberg report.

Central bank figures showed United Western, which had deposits
of INR64.8 billion and outstanding loans of INR40.06 billion as
of March 31, 2006, had a bad loan ratio of 5.66% of total
assets, compared with its peers' of 1.97%

                         Takeover Price

The price Industrial Bank would have to pay is less than the
INR2.7 billion in stock offered by Indiabulls Financial Services
Ltd., a securities company that competed with Citigroup, ICICI
Bank Ltd., India's second-largest lender, Canara Bank and others
in trying to acquire United Western.

                    Placed Under Moratorium

The Union Government placed United Western under a moratorium
based on an application from the Reserve Bank of India, the
Hindu Business Line reports.

The moratorium will run from September 2, 2006, to December 1,
2006, under which depositors will be allowed to withdraw a
maximum of INR10,000 at any of the bank's branches, but not
through the use of ATMs.

In exceptional circumstances including, medical treatment,
higher education, marriage expenses or any other emergency,
depositors will be allowed to withdraw more than INR10,000.

The move came after the bank posted huge losses in the last two
years due to inefficient management.  The losses led to net
worth erosion and a negative capital adequacy ratio.

Anand Sinha, Executive Director of the RBI, said that United
Western's net worth fell below the prescribed limit of
INR300 crore, jeopardizing the interest of its depositors.

The Hindu Business Line explains that in 2004-05, United
Western's reported a net loss of INR98.64 crore and climbed to
INR106.48 crore in 2005-06.  For the quarter ended June 30,
2006, the bank reported a net loss of INR6.08 crore.

Capital adequacy ratio was way below the prescribed minimum of
9%.  As of June 30, 2006, United Western had a 0.67% capital
adequacy ratio.

As of July 31, 2006, the gross non-performing assets stood at
INR493 crore or at 13.84% of total assets, while net NPAs
amounted to INR201 crore or 6.16%.  Both are way above the
industry average net NPA of 1.87%

                      Second Rights Issue

The Hindu Business Line adds that the  recently proposed a
second rights issue, however, the RBI commented that the chances
for success for the second rights issue were "doubtful" and that
it would not raise enough to reach the 9% capital adequacy
ratio.

United Western's first rights issue in March 2006 only garnered
INR42.96 crore.

            United Western's Rehabilitation Package

United Western had earlier submitted its rehabilitation package
on September 7, 2006.  The New Kerala reports that a UWB source
has said that the proposals placed in a sealed envelope were
submitted to the RBI.

The proposal involves a INR350 crore capital infusion by Sicom
Limited, the Maharashtra Government and the Deepak Parekh-
spearheaded HDFC group.

Apart from capital infusion, the proposals also touch upon the
subjects of management restructuring, inviting professionals at
appropriate levels, HR issues and others as required by the RBI,
sources said.

Another New Kerala report confirms that Sicom, and HDFC will
invest INR70 crore each, while the Maharashtra government will
invest INR210 crore in United Western.

Sicom and HDFC will be taking equity in the bank, the GoM will
pump in money, either in the form of equity or bonds.

                    About United Western Bank

United Western Bank Limited -- http://www.uwbankindia.com--  
operates a network of over 200 banks in India.  The group's
banks provide a full range of services, including retail and
merchant banking, investment management, treasury and NRI
services, credit card services and assorted ATM facilities.

                          *     *      *

Credit Analysis and Research Limited has placed the CARE B+
(very high credit risk/susceptible to default) rating to the
outstanding INR86.2 crore subordinated Tier II bond issues  of
United Western Bank under "credit watch" with developing
implications.


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

BANK INTERNASIONAL: Government May Delay Stake Sale Until 2007
--------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
September 4, 2006, that the Indonesian Government is selling its
remaining stake in PT Bank Internasional Indonesia this month.
According to the TCR-AP report, the move is aimed at raising
funds to finance the country's budget deficit.

In an update, The Jakarta Post cites an official from the state-
sanctioned Asset Management Company as saying that the
Government may postpone its planned offering of its 5.49% stake
in Bank Internasional until next year.

The Asset Management Company manages state holdings at banks
taken over during the 1997 Asian financial crisis, The Post
explains.

The Asset Management Company, according to its president,
Mohammad Syahrial, will instead focus on offering the
Government's 28.39% share in Bank Tabungan Pensiunan Nasional.

Mr. Syahrial stated that the Asset Management Company would go
ahead with the Bank Tabungan sale, in line with plans by the
bank's management to hold an initial public offering by the end
of this year.

The Asset Management Company had been expected to offer the BII
shares soon after its IDR1.75-trillion (US$192 trillion) sale of
the Government's 25.9% stake in Bank Permata.

The Post says that the management company earlier indicated that
it planned to sell both the Permata and BII shares by the end of
2006.  It appointed local securities house Bahana Securities and
German-based Deutsche Bank AG as the underwriters and financial
advisors for the sales.

The Government is expecting IDR2.38 trillion in sales proceeds
from the Asset Management Company this year.

                    About Bank Internasional

PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/--  
engages in general banking services and in other banking
activities based on Syariah principles.  The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard.  The bank is headquartered in Jakarta,
Indonesia.

With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on May 22,
2006, that Moody's Investors Service has raised Bank
Internasional Indonesia's issuer rating to B1 from B2,
subordinated debt rating to B1 from B2, and long-term deposit
rating to B2 from B3.  The outlook for the ratings is stable.

Additionally on May 29, 2006, Moody's Investors Service has
placed Bank Internasional Indonesia's E+ bank financial strength
rating on review for possible upgrade.

Another TCR-AP report on May 24, 2006, said that Fitch Ratings
affirms Bank Internasional's ratings on its:

   * Long-term Foreign Currency Issuer Default Rating 'BB-';

   * Short-term 'B';

   * Individual 'C/D'; and

   * Support '4'.

The outlook for ratings is stable.


BANK TABUNGAN: Government to Sell 28.39% Stake in 4th Quarter
-------------------------------------------------------------
The Indonesian Government plans to sell its 28.39% stake in PT
Bank Tabungan Pensiunan Negara in the fourth quarter of this
year, Dow Jones Newsires reports.

Dow Jones' Linda Silaen cites Mohammad Syahrial -- president
director of state-owned PT Perusahaan Pengelola Aset, which the
Government has tasked to manage and sell its stakes in several
local banks -- as saying that the Government's sale will be
conducted at the same time as when Bank Tabungan launches its
initial public offering.

The report explains that in the IPO, 48.39% of Bank Tabungan
will be on offer to the public.  Bank Tabungan said it will use
the proceeds from the IPO to strengthen its working capital.

The Government is selling its stake in local banks to raise
funds to help cover the state budget deficit, Dow Jones relates.

Mr. Syahrial, the report notes, did not mention the amount the
Government hopes to raise from the Bank Tabungan stake sale.

                      About Bank Tabungan

Headquartered in Jakarta, Indonesia, Bank Tabungan Negara
(Persero) -- http://www.btn.co.id/-- is a state-owned bank
involved in commercial banking.  In 1974, Bank Tabungan was
appointed as the financing institution for low- to medium-income
housing in an effort to support the Government's housing
development program.  Nonetheless, BTN suffered huge losses from
large corporate lending during the 1997 economic crisis.  The
Government then recapitalized the Bank, and still wholly owns
it.

BTN is now the smallest state bank, but retains a dominating 31%
share in housing loans as of end-2004.  In 2002, the Government
directed it to focus on commercial housing loans.  Hence, its
subsidized housing loans dropped to 44% of its portfolio at July
2005 from 75% at end-2002.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on August
4, 2006, that Moody's Investors Service revised the outlook for
Bank Tabungan Negara's 'E' bank financial strength rating to
positive from stable.  An earlier TCR-AP report on May 22, 2006,
stated that Moody's has upgraded Bank Tabungan Negara's long-
term deposit rating to B2 from B3, concluding the review
initiated on February 27, 2006.  The outlook for the revised
rating is stable.


LIPPO BANK: Partners with Nucleus to Overhaul Lending Operations
----------------------------------------------------------------
PT Lippo Bank Tbk awarded a contract to Nucleus Software Exports
Ltd on September 13, 2006, Equity Bulls reports.

Equity Bulls relates that under the contract, Nucleus will
implement its "FinnOne LOS and FinnOne Collections & Recovery
Management System Solutions" across Lippo Bank's 396 branches.

According to My Iris, this system will enable the bank to
enhance its "one-stop" banking services, resulting in easy
inter-operability across its branches and developing efficient
work flow systems in their lending business.

Currently Lippo Bank provides "one-stop" banking services in
retail, consumer and commercial segments, and international
products.  It provides attractive investment instruments for its
individual and corporate customers with a total of more than 2.9
million accounts, My Iris explains.

Nucleus Software Exports, with its flagship product FinnOne,
today has over 124 clients across the globe, from Asia-Pacific,
Europe, Middle East, Africa, and America.

FinnOne LOS automates and manages the complete application
processing flow of any retail finance instrument be it auto
loans, personal loans, home loans, credit cards or even services
related applications.

FinnOneTM Collections system manages the entire collections and
focuses on tracking and managing delinquent customers helping
organizations in minimizing delinquencies through a series of
proactive actions and higher supervision.  A unique platform
that comes loaded with add-on modules, supporting any phase of
distressed receivable lifecycle and enabling powerful recovery
management.

                        About Lippo Bank

Headquartered in Jakarta, Indonesia, PT Lippo Bank Tbk --
http://www.lippobank.co.id/-- offers two product segments:
Consumer Products -- comprised of personal accounts, debit
cards, distribution cards, VIP banking, credit cards, loans,
bancassurance, payment services, loyalty programs and safe
deposit boxes -- and Corporate Products -- consisting of
LippoKredit, LippoTrade, LippoGiro, LippoDeposit, e-LippoLink
and MFTS.  The bank is supported by 134 branch offices, 21 sub-
branch offices, 238 cash offices and four payment service
offices nationwide.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
December 28, 2005, that Fitch Ratings Services has affirmed Bank
Lippo's Individual rating at 'D', while upgrading its support
rating to '4' from '5' to reflect the entry of Khazanah Nasional
Berhad, the investment arm of the Malaysian Government, as the
majority shareholder of the bank.


NORTEL NETWORKS: Outlines Three Key Areas for Market Expansion
--------------------------------------------------------------
Nortel Networks Corp has outlined three of the key areas that
the Company will focus on to make its promise of "Business Made
Simple" a reality, and disclosed a series of contract wins
demonstrating momentum in the European market.

At a press conference in London, Nortel President and Chief
Executive Officer, Mike Zafirovski, outlined that mobility and
convergence, enterprise transformation and services and
solutions will form the heart of Nortel's business.

"In the broadest sense of the term, mobility is about freedom
and possibility.  By leveraging our strength in Metro Ethernet,
CDMA and our renewed investment in 4G wireless, we will drive
simple and effective convergence," said Zafirovski.

"The bandwidth glut left by the Internet bubble bursting has
disappeared and we clearly see the opportunity for next
generation optical and backbone transport networks.  We aim to
capture the video explosion and, with IMS, ensure next-
generation convergence services become a reality at an
affordable price point."

"Customers want to see their business applications integrated
with their telephony systems and this lies at the heart of our
Enterprise Transformation.  We will create a powerful ecosystem
of disruptive partnerships and -- coupled with strong go-to-
market capabilities -- will re-invent voice and further blur the
lines between IT and telephony."

"Expanding Nortel's Services capability is an integral part of
our future.  We will also expand our reusable solutions
offerings to deliver powerful bundles and integration
capabilities -- freeing customers to integrate and manage as
much or as little of their network as they want," said
Zafirovski.

Nortel's new Europe, Middle East and Africa regional president,
Darryl Edwards, used the event to reveal a number of new
customers demonstrating European market momentum in these areas:

Mobility and Convergence:

   -- Golden Telecom in Russia is expanding its optical network
      with Nortel to increase its voice and broadband services
      across the region.

   -- Craig Wireless in Greece has been supplied with a fixed
      WiMAX solution from Nortel for the rapid roll-out of
      broadband across four major Greek cities including Athens.

   -- COMCOR Group in Russia will provide VoIP and broadband
      services to Moscow residents using a network powered by
      next generation IMS-ready technology from Nortel.

Enterprise Transformation:

   -- The Telegraph Group is equipping its reporters with
      anytime, anywhere communications for video-streaming and
      multimedia services through IP-based communication
      capabilities from Nortel.

   -- The Economist Group is deploying a complete Nortel IP
      communications solution to allow its editors and analysts
      to communicate more effectively.

Services and Solutions:

   -- Swisscom has launched Business VoIP Services operated and
      maintained by Nortel Global Services and based on Nortel
      IMS-ready technology.

                          About Nortel

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

                          *     *     *

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

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

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

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


NORTEL NETWORKS: Partner Deploys IP Infrastructure for Telegraph
----------------------------------------------------------------
The Telegraph Group, a major British media organization, is
equipping its reporters in the field with anytime, anywhere
communications mobility for video-streaming and multimedia
services through IP-based communication capabilities from Nortel
Networks Corp.  The multi-million dollar IP infrastructure at
the Group's new London headquarters will be deployed by Nortel's
Gold Solutions Partner Applinet plc.

"The Telegraph Group required a network capable of providing a
wide range of multimedia services that would contribute to the
success of our business objectives," said Peter Green,
operations director, Telegraph Group Ltd.  "We found the
technology we needed, at the right place through Applinet and
Nortel."

Nortel's technology will provide a highly secure and reliable,
high-speed network based on some of the latest technologies for
current and next-generation multimedia applications.  This
includes IP telephony, video streaming and video conferencing to
help drive The Telegraph Group's aim to be at the forefront of
multimedia communications.

"The ability to simplify its business through a state-of-the-art
solution was critical to the success of the Telegraph Group in
today's highly competitive media market," said Peter Kelly,
president, Enterprise EMEA, Nortel.

"Our excellent relationship with Applinet and its redentials
ensured we had a compelling proposition for the customer which
met the requirements for the Group's new headquarters.  A new
network with the flexibility to easily expand to meet future
demand plus deliver highly secure and highly reliable always on
business critical applications was crucial to meeting the
Group's business plan for higher productivity and efficiency for
its staff."

"The Telegraph Group's new network will be a fantastic showcase
example of how an organization can use technology to achieve
greater efficiencies and competitive advantage," said Darren
Boyce, managing director, Applinet.

"With the development of mobility in the workforce and the need
for reporters to be able to communicate anytime, anywhere, the
adoption of highly reliable technology to deliver a range of
multimedia services will differentiate The Telegraph Group
within the media market."

The deployment includes a comprehensive end-to-end portfolio of
solutions based on Nortel Ethernet Routing Switches and Ethernet
Switches with Nortel's server-based, full-featured IP PBX
Communication Server 1000 and Nortel's Multimedia Communication
Server (MCS) 5100 for SIP-based multimedia and collaborative
applications.  End to end security of the new network is ensured
by Nortel's VPN Gateway, Threat Protection System and Switched
Firewall running Check Point firewall-1.

The implementation also includes Nortel's Contact Center
portfolio, a comprehensive, next generation set of products for
effective, real-time customer service and Nortel IP Phones 1100
series, plus conference and soft phones.

                    About Telegraph Group

Telegraph Group Limited is a newspaper publisher, which
publishes The Daily Telegraph, The Sunday Telegraph,
telegraph.co.uk and The Weekly Telegraph.  This is a wholly
owned subsidiary of Press Holdings Limited.

                        About Applinet

Applinet is a U.K. leading professional converged network
solutions provider.  Applinet helps customers, via consultancy
and support services, overcome their technology challenges by
providing end-to-end solutions in Mobility, Security,
Convergence, Multimedia and Wireless.

                         About Nortel

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

                          *     *     *

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

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

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

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


NORTEL NETWORKS: Launches New Product Offerings to SMEs
-------------------------------------------------------
Nortel Networks is introducing new product offerings and
simplifications to its Small and Medium Businesses or SMB
program that will allow the company to better support its
current SMB resellers, broaden its channel base and evolve SMB
customers to converged networks and IP-based communications as
business needs change.

As part of this strategy, new and existing value-added resellers
or VARs now have access to pre-defined, easy-to-sell SMB voice
and data packages that address the distinctive requirements,
challenges and budgets of smaller businesses.  In addition,
Nortel is introducing a streamlined fast track accreditation
program that will help lower the cost of entry and increase time
to market for both new and existing SMB channel partners to sell
Nortel's Business Communication Manager or BCM 50.

"Nortel's new initiative demonstrates the Company's commitment
to the SMB market as well as to the channel partners serving
those customers," said Ken Presti, strategy analyst, Presti
Research and Consulting, Inc.  "Building upon the BCM50, Nortel
has streamlined its training processes and established pre-
defined SMB solutions that can help channel partners deliver the
value of IP convergence for those small and medium customers."

Simplifications to Nortel's SMB strategy will help increase
momentum for its recently announced IPT 1-2-3 initiative to
provide simple, easy to implement options that help enterprises
migrate or upgrade to IP telephony at their own pace and at a
more affordable cost.  Nortel is working closely with its value-
added distributors to substantially increase its SMB channel
base and extend its reach into the SMB market by recruiting new
resellers, particularly ones experienced in SMB voice and data
convergence.

"Nortel understands that resellers are the key channel to reach
the SMB market, and those resellers who are able to quickly and
effectively address the growing opportunity for IP telephony
solutions will be the most successful," said Eric Schoch, vice
president, North American Marketing, Channels and Distribution,
Nortel.  "Nortel is providing a simple way for VARs to attack
this opportunity with pre-defined bundled solutions, streamlined
training, improved quote tools and commercial offers."

Nortel is introducing new standard voice and data packages that
include Nortel's award-winning BCM50.  These packages simplify
the sales process for partners with easy-to-position, easy-to-
configure and easy-to-order business communications solutions:

   -- Two IPT packaged solutions

      These IPT packages provide everything a small office needs
      to implement a high quality IP telephony solution for
      eight or 16 users.  These packages -- which include
      products from the new SMB data portfolio, IP trunks,
      stations, voice mail, unified messaging, and IP
      telephones -- are ideal for new installations or for
      upgrading an installed base site to the latest technology.

   -- Three voice-centric packaged solutions

      Sized in configurations for four, eight and 16 users,
      these pre-defined packages contain everything a small
      business needs for an advanced digital communication
      solution, including digital trunks, stations, digital
      phones and voice mail, as well as unified messaging for
      the eight and 16 user packages.

   -- One data-only solution

      This package includes the newly released SMB data products
      -- the Business Ethernet Switch 100, the Business Access
      Point 120 and the Business Secure Router 222, each of
      which is specifically designed for the size, business
      needs and cost considerations of SMB customers.  This
      package can be added to one of the three voice-centric
      packages or sold alone.

These new packages will be supported by Nortel's fast track
accreditation program, which includes pre- and post-sales
training curriculum that will help partners quickly educate new
sales representatives about the Nortel BCM50.

Nortel's BCM50 is designed to give smaller businesses -- with as
few as three staff members -- low-cost, secure, advanced
communication services such as IP telephony and online
multimedia applications that allow employees to collaborate
regardless of location.  For nearly 20 years, Nortel has
provided voice communication solutions to more than 15 million
small and medium business employees in more than 80 countries,
and its industry-leading BCM50 sold more than 22,000 units
globally during its first year of availability.

                          About Nortel

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

                          *     *     *

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

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

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

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


TELKOM INDONESIA: Teams Up With MEASAT for Satellite Business
-------------------------------------------------------------
PT Telekomunikasi Indonesia Tbk and MEASAT Satellite Systems
Sdn. Bhd. revealed the signing of a Memorandum of Understanding
laying out cooperation in the future development of their
respective satellite businesses, a Telkom press release said.

"Cooperation between TELKOM and MEASAT is part of wide ranging
cooperation between Malaysia and Indonesia," said Mr. Arwin
Rasyid, chief executive officer for TELKOM. "By working with
MEASAT and leveraging our combined skills, capabilities, and
assets we believe we have an opportunity to strengthen our
respective satellite businesses to better compete in an industry
dominated by European and North American firms."

Initial cooperation between TELKOM and MEASAT will be focused on
the joint marketing of satellite capacity, joint development of
an expanded portfolio of value added services, sharing
operational experience, and improving the connectivity between
each organization's satellite and fibre optic networks.  Both
organizations have also committed to explore opportunities for
the joint development of new satellites to meet future satellite
capacity requirements of both organizations, in order to better
serve the future requirements of the Indonesian, Malaysian, and
regional satellite market.

"TELKOM operates a strong satellite business," said Y.A. Bhg Tun
Hj. Mohammed Hanif bin Omar, Director of MEASAT.  "We look
forward to developing opportunities to work with PT Telkom
closely moving forward to better serve customer needs in
Indonesia, Malaysia , and across the wider Asia-Pacific market."

                          About MEASAT

MEASAT is a premium supplier of satellite communication services
to Asia's leading broadcasters, DTH operators and telecom
providers. Currently operating a two satellite network, MEASAT
provides video distribution services across East and South East
Asia, Indochina, South Asia and Australia. The launch of MEASAT-
3 and MEASAT-1R, will extend the reach of the MEASAT fleet,
providing customers with a satellite able to reach Pay-TV
operators in over 100 countries, representing more than 70% of
the world's population.

Leveraging facilities at the MEASAT Teleport and Broadcast
Centre, and working with a select group of world-class media
partners including Astro, Pacific Century Matrix and STT, MEASAT
provides a complete range of broadcast services including video
playout, up-linking, and video turnaround to and from the key
European and North American markets.

                     About Telkom Indonesia

Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/
-- provides local and long-distance telephone service in
Indonesia.  Known as Telkom, the company also offers fixed-
wireless service, leased lines, and data transport through
affiliates.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2006, Moody's Investors Service gave Telekomunikasi
Indonesia a Ba1 local currency corporate family rating.

Standard & Poor's Ratings Services gave the Company foreign and
local currency corporate credit ratings of BB+.

Fitch Ratings has assigned Telkom Indonesia Long-
term foreign and local currency Issuer Default Ratings of 'BB-'.


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

DAIEI INCORPORATED: To Pay JPY150-Bln Debt to IRCJ Next Month
-------------------------------------------------------------
Daiei Incorporated intends to fully settle the JPY150-billion
debt it owes the Industrial Revitalization Corporation of Japan
by the end of October 2006, Reuters reports.

According to Reuters, the retail giant, which has been
restructuring under the state-backed IRCJ's supervision, will
sell properties and shares in credit card subsidiary OMC Card
Inc. and supermarket unit Maruetsu Incorporated to repay the
IRCJ.

As reported by the Troubled Company Reporter - Asia Pacific on
September 8, 2006, Daiei plans to expedite its debt repayments
using proceeds from the sale of the retailer's Pachinko parlor
chain operator Pandora Inc. and other outlets.  This is on top
of the planned OMC equity stake sale.

The TCR-AP further stated that Daiei expects to generate
JPY100 billion through the sale of 39 properties, including some
core branches.  The proceeds of the disposal will be used to
repay debts.

Daiei hopes that its latest plan will successfully shrink its
mounting debts, which peaked at JPY2 trillion at the end of
February 2001, the TCR-AP added.

According to the Nihon Keizai Shimbun, Daiei is working to trim
parent interest-bearing debt by more than JPY200 billion from
the current level of JPY350 billion to help secure refinancing
loans.

In a separate report, Reuters says that refinancing of loans to
the IRCJ will be provided by four financial institutions.
Sumitomo Mitsui Financial Group and Sumitomo Trust & Banking Co.
Ltd will each put up JPY50 billion.  Nomura Holdings Inc. will
dole out JPY30 billion and Shinsei Bank JPY20 billion.

                        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.


KANA SOFTWARE: Posts US$383,000 Loss in Quarter Ended June 30
-------------------------------------------------------------
KANA Software, Inc., reported a net loss in accordance with
generally accepted accounting principles of US$383,000, for the
quarter ended June 30, 2006, versus a GAAP net loss of
US$1.9 million for the quarter ended June 30, 2005.

The Company reported a GAAP net loss of US$1.5 million for the
six months ended June 30, 2006, versus a GAAP net loss of
US$15.7 million for the six months ended June 30, 2005.

KANA's total revenues for the quarter ended June 30, 2006, were
US$14.5 million, including license revenues of US$5.9 million.
These revenue numbers represent increases of 36% in total
revenue and 150% in license revenue over the second quarter
2005.  This is KANA's fifth consecutive quarter of total revenue
growth.

KANA's total revenues for the six months ended June 30, 2006
were US$26 million, including license revenues of US$8.8
million.  These revenue numbers represent increases of 25% and
125%, respectively, from the total and license revenue numbers
reported for the six months ended June 30, 2005.

"We are very pleased with our second quarter results, as they
reflect the significant strides KANA has made over the last year
to streamline the organization and focus on its core
competencies," said Michael Fields, chief executive officer of
KANA.

"KANA's consistent revenue growth over the last five quarters is
indicative of the overall market demand for multi-channel
customer service software.  More importantly, though, it's a
testament to the depth and scalability of our solutions, the
quality and commitment of our people and the mission and focus
of our company.  As a result, KANA is well positioned for
profitability and continued success and leadership in the multi-
channel customer service market."

Based on the demand the Company is seeing and anticipating for
its multi-channel customer service solutions with new and
existing customers and integrator partners, KANA expects that
total revenues for 2006 will range between US$56 million and
US$58 million.  This represents a growth of 30% to 34% over 2005
total revenues.

                      Going Concern Doubt

As reported in the Troubled Company Reporter on July 12, 2006,
KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP,
expressed substantial doubt about the Company's ability to
continue as a going concern after auditing the Company's
financial statement for the year ending Dec. 31, 2005.  Burr
Pilger pointed to the Company's recurring losses from
operations, net capital deficiency, negative cash flow from
operations and accumulated deficit.

                          About KANA

KANA Software, Inc., provides multi-channel customer service
software applications.  KANA's integrated solutions allow
companies to deliver service across all channels, including
email, chat, call centers and Web self-service, so customers
have the freedom to choose the service they want, how and when
they want it.  The Company's target market is the Global 2000
with a focus on large enterprises with high volumes of customer
interactions, such as banks, telecommunications companies, high-
tech manufacturers, healthcare organizations and government
agencies.

The Company is headquartered in Menlo Park, California, with
offices in Japan, Hong Kong, Korea and throughout the United
States and Europe.


KANA SOFTWARE: Forms Financial Services Vertical Sales Team
-----------------------------------------------------------
KANA Software Inc. disclosed a series of organizational changes
in its global sales and service operations.  The changes
illustrate the unprecedented demand KANA is experiencing for its
industry-leading multi-channel customer service solutions, and
will enable the company to accelerate its revenue growth and
meet aggressive sales targets worldwide.

Formation of Global Financial Services Sales Team

In order to build upon its tremendous growth and customer
adoption within the financial services market, KANA has
established a global financial services vertical sales team.

Daniel Turano, a seasoned veteran, joins KANA as the newly
appointed Vice President of Global Financial Services and will
work to build a sales team that is focused specifically on
financial services accounts worldwide.

As part of Mr. Turano's expanding financial services group,
Lindsay McEwan has joined KANA as the regional sales manager for
financial services in the United Kingdom, bringing ten years of
direct sales and management experience within the investment
banking, retail and capital markets vertical along with senior
relationships with large financial institutions.

"As a strategic alliance partner, we are very pleased and
excited about KANA's new financial services initiative.  With
KANA's increased focus and investment in Financial Services, our
joint relationship will further accelerate the delivery of
market leading solutions to Financial Services organizations,"
said Mark Greene, Vice President, IBM Financial Services Sector.

                Enhancing the Worldwide Sales Team

Bill Rowe, who joined the organization in January, will expand
his current role with a promotion to Senior Vice President of
Worldwide Sales and Service.  Mr. Rowe has been responsible for
KANA's sales and professional services operations in the
Americas region and will now expand that role to include Europe
and Asia. Alf Saggese, Senior Vice President of Sales & Service
for International Operations, will report into Mr. Rowe.

Eric Ward will move into the role of Western Region Sales
Director, with responsibility for expanding sales and services
as well as continuing to build strong customer relationships.

Edwin Kuhn will join KANA as the Eastern Region Sales Director.
Mr. Kuhn has nineteen years of sales experience, most recently
having served as the Identity Management (IDM) Sales Manager at
Oracle Corporation, receiving recognition as the top IDM sales
representative of the year.

Both the Western and Eastern Region Sales Directors will report
to Bill Rowe.

In order to fully capitalize on the tremendous market
opportunity stemming from rapid adoption of eService channels,
KANA is expanding its worldwide sales organization and by the
end of 2006 the Company will have doubled its sales force over
the year ended 2005.  As a result of this significant
organizational expansion, KANA will have the necessary resources
in place to ensure excellent customer service, pursue new
transactions as well as focus on cultivating cross-sell and up-
sell opportunities within its extensive install base.  With more
than 600 customers, including approximately half of the world's
100 largest companies, KANA is in an exceptional position to
fuel its continued financial growth and success through this
sales approach.

"Elevating and expanding a worldwide sales team is an exciting
initiative for any company.  KANA has seen a substantial
increase in demand for its multi-channel customer service
solutions, especially in the financial services industry.  This
expansion is not only exciting but necessary for us to stay
ahead of market demand as well as continue to give our customers
the high levels of service and support they have come to
expect," said Bill Rowe, Senior Vice President of Worldwide
Sales and Service, KANA.

                        Going Concern Doubt

As reported in the Troubled Company Reporter on July 12, 2006,
KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP,
expressed substantial doubt about the Company's ability to
continue as a going concern after auditing the Company's
financial statement for the year ending Dec. 31, 2005.  Burr
Pilger pointed to the Company's recurring losses from
operations, net capital deficiency, negative cash flow from
operations and accumulated deficit.

                          About KANA

KANA Software, Inc., provides multi-channel customer service
software applications.  KANA's integrated solutions allow
companies to deliver service across all channels, including
email, chat, call centers and Web self-service, so customers
have the freedom to choose the service they want, how and when
they want it.  The Company's target market is the Global 2000
with a focus on large enterprises with high volumes of customer
interactions, such as banks, telecommunications companies, high-
tech manufacturers, healthcare organizations and government
agencies.

The Company is headquartered in Menlo Park, California, with
offices in Japan, Hong Kong, Korea and throughout the United
States and Europe.


MITSUBISHI MOTORS: Expects Minicars to Drive Profit Rise
--------------------------------------------------------
Mitsubishi Motors Corporation is counting on its newly launched
eK minicar to generate the automaker's first profit in four
years, The Financial Express reports, citing Bloomberg News.

On September 13, 2006, Mitsubishi Motors released its first new
domestic model, as consumers opt for minicars to save on fuel
costs.  The company plans to sell 6,000 units of the eK Wagon
and eK Sport minicar models a month.

Sales in Japan account for 21% of Mitsubishi Motors' global
target of 1.41 million vehicles in the year ending March 31,
2007, Bloomberg says.  In April, the automaker forecast sales in
Japan will rise 18% to 302,000 units for the full year.

Mitsubishi Motors President Osamu Masuko is confident the
company will achieve its sales target due to the rising
popularity of minicars, Bloomberg relates.

According to the report, consumers opt for minicars because
aside from its fuel-saving feature, it carries lower tax and
insurance rates.

Sales of mini cars jumped for an eighth month in August, as
automakers released six new models this year, the report adds.

                      About Mitsubishi Motors

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

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

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

                          *     *     *

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

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


SOFTBANK CORP: Offers Phone & iPod Package to Lure Customers
------------------------------------------------------------
In a bid to retain its 16% share in Japan's lucrative mobile
market, Softbank Corporation has begun offering an Apple
Computer iPod nano packaged with one of its own mobile phones,
Reuters reveals.

Softbank is selling one of its cellphone models made by Sharp
Corp. together with the new 2-gigabyte iPod nano, which Apple
unveiled on September 16, 2006, the report says.  Apple's iPod
is the world's best-selling digital music player.

According to Reuters, the new promotion is aimed at keeping
customers for at least two years as Softbank would require them
to refund the cost for the handsets if they cancel their
subscription before the contract expires.

Softbank is trying to spread costs, such as incentives paid to
retailers, over time instead of paying all at once, Reuters
says.  The new sales scheme allows Softbank to bring down the
price of handsets while lightening the impact of the subsidy
costs on short-term earnings.

Softbank is competing against its bigger rivals NTT DoCoMo Inc.
and KDDI Corp. to roll out new services and products before a
rule change from October 24, 2006, that lets customers switch
carrier while keeping their numbers, Reuters adds.

                      About Softbank Corp.

Based in Tokyo, Japan, Softbank Corporation
-- https://www.softbank.co.jp/ -- is a leading Japanese
telecommunications and media corporation, with operations in
broadband, fixed-line telecommunications, e-Commerce, Internet,
broadmedia, technology services, finance, media and marketing,
and other businesses.  SoftBank was established on September 3,
1981, and had a market capitalization of approximately US$32.8
billion at February 28, 2006.

SoftBank's corporate profile includes various other companies
such as Japanese broadband company Cable & Wireless IDC, cable
company BB-Serve, and gaming company GungHo Online
Entertainment.  On March 17, 2006, SoftBank announced its
agreement to buy Vodafone Japan, giving it a stake in Japan's
US$78 billion mobile market.

                            *     *     *

According to a Troubled Company Reporter - Asia Pacific report
on April 18, 2006, Standard & Poor's Rating Services agency
affirmed its 'BB-' long-term corporate credit rating on the
Company, with negative implications.

Moody's Investors Service had, on August 9, 2006, upgraded
Softbank Corp.'s stable long-term debt rating and issuer rating
to Ba2 from Ba3, concluding a review initiated on March 17,
2006, when the Company announced that it would acquire a 97.7%
stake in mobile phone giant Vodafone Group's Japanese unit,
Vodafone K. K.


SOFTBANK CORP: Says CEO Did Not Offer Assets as Collateral
----------------------------------------------------------
Softbank Corporation released a statement in response to media
coverage referring to the personal assets of the company's
chairman and chief executive officer, Masayoshi Son.

The company clarified that there is no truth to reports that Mr.
Son's personal assets have been pledged as collateral for
Softbank's financing.

The Troubled Company Reporter - Asia Pacific, citing Reuters,
reported on September 12, 2006, that Mr. Son has lent up to one
third of his US$6-billion stake in the company as collateral for
loans.

According to the TCR-AP, a July 20, 2006, regulatory filing
stated that Mr. Son handed over 107 million Softbank shares to
Japanese and foreign banks including Deutsche Bank DE, Goldman
Sachs (Charts), Merrill Lynch (Charts) and Mizuho Corporate
Bank, part of Mizuho Financial Group.  Half the amount, or 54
million shares, went to Deutsche Bank, which, along with Mizuho,
was a lead underwriter of Softbank's Vodafone buyout.

The collateral arrangements caused Softbank's shares -- which
fell 15% in two days last month due to worries over accounting
practices at Softbank -- to drop another 2.5% to JPY2,155 by
September 8, 2006, the TCR-AP  said. Softbank's shares dipped as
much as 3% on concerns that the collateral offering could erode
Mr. Son's ownership stake, which has supported the company's
share price amid worries over its mounting debts.

                      About Softbank Corp.

Based in Tokyo, Japan, Softbank Corporation
-- https://www.softbank.co.jp/ -- is a leading Japanese
telecommunications and media corporation, with operations in
broadband, fixed-line telecommunications, e-Commerce, Internet,
broadmedia, technology services, finance, media and marketing,
and other businesses.  SoftBank was established on September 3,
1981, and had a market capitalization of approximately US$32.8
billion at February 28, 2006.

SoftBank's corporate profile includes various other companies
such as Japanese broadband company Cable & Wireless IDC, cable
company BB-Serve, and gaming company GungHo Online
Entertainment.  On March 17, 2006, SoftBank announced its
agreement to buy Vodafone Japan, giving it a stake in Japan's
US$78 billion mobile market.

                          *     *     *

According to a Troubled Company Reporter - Asia Pacific report
on April 18, 2006, Standard & Poor's Rating Services agency
affirmed its 'BB-' long-term corporate credit rating on the
Company, with negative implications.

Moody's Investors Service had, on August 9, 2006, upgraded
Softbank Corp.'s stable long-term debt rating and issuer rating
to Ba2 from Ba3, concluding a review initiated on March 17,
2006, when the Company announced that it would acquire a 97.7%
stake in mobile phone giant Vodafone Group's Japanese unit,
Vodafone K. K.


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

BURGER KING: Improving Performance Prompts S&P's Rating Upgrade
---------------------------------------------------------------
Standard & Poor's Ratings Services raised the corporate credit
and senior secured debt ratings on Miami-based quick-service
operator Burger King Corp. to 'BB-' from 'B+'.

Concurrently, the recovery rating on the company's secured
credit facility was raised to '2' from '3' due to the repayment
of $400 million of debt.  The '2' recovery rating indicates the
expectation for substantial (80%-100%) recovery of principal in
the event of a payment default.

All ratings are removed from CreditWatch, where they were placed
on Feb. 1, 2006, with positive implications.  The outlook is
stable.

"The upgrade reflects Burger King's improving operating
performance and reduced leverage," said Standard & Poor's credit
analyst Diane Shand.

A healthier franchise system, the streamlining of general and
administrative operations, and better products and advertising
have enabled Burger King to generate positive operating trends
over the past three years.  The company has also decreased
leverage significantly -- to 4.8x in fiscal 2006 from 7.5x in
fiscal 2005 -- as a result of utilizing $350 million of its
proceeds from its initial public offering to reduce debt and
improve profitability.

Ratings on Burger King reflect the company's:

   * vulnerable business profile;

   * participation in the competitive quick service sector of
     the restaurant industry;

   * leveraged capital structure; and

   * aggressive financial policy.

These risks are partially mitigated by the company's good market
position and improving operating performance.

Burger King's operating performance has shown improvement since
the company was purchased by a consortium of investors in 2002.
The company has strengthened its management team, developed new
products, and addressed financial and relationship issues in the
franchise system.  This has resulted in positive same-store
sales for the past 10 quarters and the operating margin
expanding to 24% in fiscal 2006, from 19.2% in fiscal 2005.

Standard & Poor's believes that the company has the opportunity
to further improve operating performance over the next few years
through menu changes, further strengthening store execution and
advertising, and expanding store hours.  But progress could be
slow and uneven because Burger King is up against formidable
competitors such as McDonald's Corp. (A/Stable/A-1), Wendy's
International Inc. (BB+/Negative/B-1), and Yum! Brands Inc.
(BBB/Stable/--)

Burger King is the third-largest quick-service restaurant
operator in the world in terms of sales and units, with 1,204
company-owned restaurants and 9,889 franchised restaurants
worldwide.

                       About Burger King(R)

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

                          *     *     *

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


CLOROX COMPANY: 3M Sues Unit for Patent Infringement
----------------------------------------------------
3M Co. filed a patent infringement lawsuit against Clorox Co.'s
Brita Water-filtration division and a unit of Sears Holdings
Corp.

3M, a diversified technology company, alleges that the Clorox
and Sears units infringed patents relating to a cartridge-based
water-filtering system.  The patented system reportedly allows
change of cartridges without drips.

Through the suit, 3M wants to stop Clorox and Sears from selling
products that would violate the patents.

3M also seeks damages in an unspecified amount.

                         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.


DRESSER INC: 2005 Financials Filing Extended to December 31
-----------------------------------------------------------
Dresser Inc. entered into an Amendment and Waiver to its Credit
Agreement dated April 10, 2001, with these parties:

   -- D.I. Luxembourg S.A.R.L.;

   -- DEG Acquisitions, LLC;

   -- Dresser Holdings, Inc.;

   -- the subsidiary guarantors party to the Credit Agreement;
      and

   -- the Agreement's lenders and agents.

Among others, the Amendment extends to December 31, 2006, the
deadline for Dresser to provide its senior secured lenders with
audited financial statements for the fiscal year ended
December 31, 2005.

The amendment also includes various technical revisions.

A full-text copy of the Amendment and Waiver is available for
free at:

http://www.sec.gov/Archives/edgar/data/1140415/000119312506189476/dex41.htm

                       About Dresser

Based in Addison, Texas, Dresser, Inc. --
http://www.dresser.com/-- designs, manufactures and markets
equipment and services sold primarily to customers in the flow
control, measurement systems, and compression and power systems
segments of the energy industry.  The Company has a
comprehensive global presence, with over 8,500 employees and a
sales presence in over 100 countries worldwide, including Korea
and Japan.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 3, 2006,
Moody's Investors Service downgraded Dresser, Inc.'s ratings.
Moody's said the rating outlook is negative.

Dresser's Corporate Family Rating was downgraded to B1 from Ba3.
The rating for the Company's Senior Secured Tranche C Term Loan
maturing 2009 was downgraded to B1 from Ba3.  Moody's also
downgraded the rating for the Company's Senior Unsecured Term
Loan maturing 2010 to B2 from B1.  The Company's Senior
Subordinated Notes maturing 2011 was downgraded to B3 from B2.


DRESSER INC: To Explore Strategic Alternatives
----------------------------------------------
Dresser, Inc. disclosed that its Board of Directors has
authorized its management to begin a process to explore
strategic alternatives for the business, including the potential
sale of the company.  The company has retained Morgan Stanley
and UBS as its financial advisors for this process, which is
expected to take a number of months.  There is no assurance a
transaction will result from this process, and the company does
not expect to disclose additional details unless and until its
Board has approved a specific transaction.

"Our business is performing well both operationally and
financially.  Our customers include the leading names in energy,
our brands are well-known and respected in their various
markets, and our employees are committed to excellence," noted
Patrick M. Murray, chairman and chief executive officer.  "As we
explore our strategic alternatives, we will continue to focus
our resources and efforts on maintaining those competitive
strengths."

                       About Dresser

Based in Addison, Texas, Dresser, Inc. --
http://www.dresser.com/-- designs, manufactures and markets
equipment and services sold primarily to customers in the flow
control, measurement systems, and compression and power systems
segments of the energy industry.  The Company has a
comprehensive global presence, with over 8,500 employees and a
sales presence in over 100 countries worldwide, including Korea
and Japan.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 3, 2006,
Moody's Investors Service downgraded Dresser, Inc.'s ratings.
Moody's said the rating outlook is negative.

Dresser's Corporate Family Rating was downgraded to B1 from Ba3.
The rating for the Company's Senior Secured Tranche C Term Loan
maturing 2009 was downgraded to B1 from Ba3.  Moody's also
downgraded the rating for the Company's Senior Unsecured Term
Loan maturing 2010 to B2 from B1.  The Company's Senior
Subordinated Notes maturing 2011 was downgraded to B3 from B2.


DRESSER INC: Refinances Existing Senior Secured Credit Facility
---------------------------------------------------------------
Dresser, Inc. has received a financing commitment from Morgan
Stanley and Credit Suisse which provides for the refinancing of
Dresser's existing senior secured credit facility, senior
unsecured term loan and 9-3/8% senior subordinated notes due
2011.

As a result of the commitment, which is subject to certain
conditions, the company is revising the terms of the previously
announced amendment it has requested under its senior secured
credit facility.  Under the revised terms, the company is no
longer seeking to extend the term of its revolving credit
facility or establish a new US$50 million synthetic letter of
credit facility.

The company is continuing to seek an extension of the deadline
for providing audited financial statements for the fiscal year
ended Dec. 31, 2005, from Sept. 30, 2006 to Dec. 31, 2006.  In
addition, it is seeking various technical amendments. The
deadline for receiving consents from these lenders is 5 p. m. on
Sept. 8, 2006, New York City time, unless further extended or
terminated by Dresser.

The company said it expects to complete the refinancing as soon
as practicable after the terms and conditions of the refinancing
have been finalized.  "We believe this refinancing is in the
best interests of the company, and the commitment reflects the
confidence that these lenders have in our businesses," said
Patrick M. Murray, chairman and chief executive officer.

                       About Dresser

Based in Addison, Texas, Dresser, Inc. --
http://www.dresser.com/-- designs, manufactures and markets
equipment and services sold primarily to customers in the flow
control, measurement systems, and compression and power systems
segments of the energy industry.  The Company has a
comprehensive global presence, with over 8,500 employees and a
sales presence in over 100 countries worldwide, including Korea
and Japan.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 3, 2006,
Moody's Investors Service downgraded Dresser, Inc.'s ratings.
Moody's said the rating outlook is negative.

Dresser's Corporate Family Rating was downgraded to B1 from Ba3.
The rating for the Company's Senior Secured Tranche C Term Loan
maturing 2009 was downgraded to B1 from Ba3.  Moody's also
downgraded the rating for the Company's Senior Unsecured Term
Loan maturing 2010 to B2 from B1.  The Company's Senior
Subordinated Notes maturing 2011 was downgraded to B3 from B2.


KOREA EXCHANGE: Prosecutors Raid Headquarters Again
---------------------------------------------------
South Korean Prosecutors searched Korea Exchange Bank's
headquarters for the second time in more than two months as part
their investigation into United States-based Lone Star Fund,
which acquired a controlling stake in KEB in 2003, XFN-Asia
reports.

The Associated Press recounts that Prosecutors, as well as tax
and audit agencies, have investigated Lone Star this year over
possible foreign exchange, currency trading and tax
irregularities surrounding its purchase of KEB.  They raided
Lone Star's offices in March.

The latest raid was conducted in relation to a possible slush
funds involving KEB, The Wall Street Journal says, citing senior
prosecutor Chae Dong Wook.

As reported in the Troubled Company Reporter - Asia Pacific,
investigators had been looking into Lone Star's 2003 purchase of
a 50.5% stake in KEB, and had been examining whether the
acquisition was appropriate.  The probe will focus on alleged
charges of the Bank's cheap sale and manipulation of the Bank
for International Settlement equity rate.

Prosecutors first raided KEB's headquarters in June.

                      About Korea Exchange

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

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

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

                          *     *     *

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

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

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


THOMAS EQUIPMENT: Unit Completes $15 Mil. Funding with Greystone
----------------------------------------------------------------
Pneutech Inc., a wholly owned subsidiary of Thomas Equipment
Inc., has successfully refinanced its existing credit facility
with a larger US$15 million credit facility provided by
Greystone Business Credit II, LLC.

"We are pleased to work with JP and his team at Thomas," said
Drew Neidorf, President of Greystone Business Credit II, LLC.

On September 6, 2006, Pneutech Inc., and its wholly-owned
subsidiaries Rousseau Controls Inc. and Hydramen Fluid Power
Limited, initiated a court-supervised restructuring to
facilitate a refinancing of its credit facilities with the Royal
Bank of Canada.  Pneutech obtained an order under the Canadian
Companies' Creditors Arrangement Act in a hearing before the
Quebec Superior Court of Justice, which maintains jurisdiction
over Pneutech.

"We are excited by our partnership with Pneutech and feel
confident we can support its financing needs as it executes on
its opportunities," stated Joel Flig, Executive Vice President
of Greystone Business Credit II, LLC.

Pursuant to the Order, Pneutech received authorization to enter
into a debtor in possession financing arrangement with Greystone
to immediately replace Royal Bank of Canada as Pneutech's
principal lender.

"We are extremely disappointed with the Royal Bank of Canada and
are currently assessing all legal claims related to their
conduct from the original expiration of the credit facility
through the date of refinancing with Greystone on September 8th,
2006," stated David Marks, Chairman of Thomas Equipment, Inc.
"We were delighted to close this financing with Greystone so we
can rapidly proceed through our corporate restructuring."

The new credit facilities provide Pneutech with increased
financing to fund ongoing operations while Pneutech implements
its restructuring and will continue after Pneutech emerges from
these proceedings.

The credit facility with Greystone includes a revolving line of
credit in the maximum amount of US$15,000,000, which also
includes term loans of up to US$1,158,000.  The loans bear
interest at a rate of 3%, plus the prime interest rate.  The
facility will expire in 3 years, subject to earlier termination
under certain circumstances.

As additional consideration for the facility, Thomas Equipment,
Inc. will issue a warrant to Greystone to purchase 1,000,000
shares of common stock at a price of US$0.5 per share.

                    About Thomas Equipment

Headquartered in Milwaukee, Wisconsin, Thomas Equipment, Inc. --
http://www.thomas-equipment.com/-- is a technologically
advanced global manufacturer of a full line of skid steer and
mini skid steer loaders as well as attachments, mobile screening
plants and six models of mini excavators.  The Company
distributes its products through a worldwide network of
distributors and wholesalers.  In addition, the Company's wholly
owned subsidiaries manufacture specialty industrial and
construction products, a complete line of potato harvesting and
handling equipment, fluid power components, pneumatic and
hydraulic systems, spiral wound metal gaskets, and packing
material.  The company maintains an office in Korea.

At March 31, 2006, Thomas Equipment Inc.'s balance sheet showed
a stockholders' deficit of US$31,289,000, compared to a
US$67,129,000 at June 30, 2005.


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

ANTAH HOLDINGS: August Default Amount Tops MYR252 Million
---------------------------------------------------------
According to the Troubled Company Reporter - Asia Pacific on
May 11, 2006, financial institutions extended a total loan
facility of MYR281,401,000 to the Company.  As of July 31, 2006,
Antah's total loan default plus interest was pegged at
MYR250,713,000.

As of August 31, 2006, Antah Holdings Berhad's total default
plus interest owed to various credit facilities stood at
MYR252,577,000.

Details of the Company's defaulted credit facilities are
available for free at:

http://bankrupt.com/misc/tcrap_antahholdings091406.xls

                      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.


ANTAH HOLDINGS: HSBC Seeks Auction of Subsidiary's Land
-------------------------------------------------------
HSBC Bank Malaysia Berhad seeks an order from the Shah Alam High
Court to sell by public auction a land owned by Klang Valley
Recreational Berhad, Antah Holdings Berhad's wholly owned
subsidiary.

The proposed sale is pursuant to an arrangement wherein HSBC
Malaysia agreed not to pursue any outstanding balance, if any,
against Antah Holdings and wholly owned subsidiary, Kaseh
Lebuhraya Sdn. Bhd.

KVR Berhad's land, known as P.T. No. 9577, in Mukim Damansara,
District of Petaling, State of Selangor, was entrusted to HSBC
for credit facilities it granted to Antah Holdings and Kaseh.

HSBC Bank Malaysia Berhad, on July 27, 2006, served on KVR
Berhad, two notices of default relating to the land.  As of
May 31, 2006, HSBC asserted outstanding amounts under the
facilities totaling MYR49,761,221:

         Antah          MYR19,381,069
         Kaseh          MYR30,380,152

The Troubled Company Reporter - Asia Pacific reported on
August 3, 2006, that HSBC also served a Writ of Summons on
Kaseh.  HSBC later discontinued the Summons.

                      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.


FORMIS MALAYSIA: Extends Completion Date of OCSB Sale
-----------------------------------------------------
Formis (Malaysia) Berhad agrees to extend the completion date of
the sale of its entire equity interest Orlando Corporation Sdn
Bhd to December 31, 2006.

The extension was requested by the purchaser of the OCSB
interest, Abdul Halim bin Abdul Karim.

On January 6, 2006, Formis (Malaysia) agreed to dispose 100% of
its equity interest in OCSB pursuant to a conditional sale
agreement with Mr. Bin Abdul Karim.

Pursuant to the deal, Mr. Bin Abdul Karim will acquire OCSB's
entire issued and paid-up capital comprising of 750,000 ordinary
shares of MYR1.00 each for a nominal consideration of MYR1.

Mr. Bin Abdul Karim is currently the Chief Operating Officer and
a director of OCSB, a position which he has held for six years.

The disposal is conditional upon, among others:

   -- the approval or non-objection of the Foreign Investment
      Committee and any other relevant authorities;

   -- Formis' delivery to OCSB, on the completion date of the
      Agreement, a confirmation that it agrees to waive and
      write-off MYR13,445,090 out of the MYR33,445,090 that is
      currently due from OCSB to Formis, subject to Mr. Bin
      Abdul Karim's procuring OCSB to pay Formis MYR20,000,000;
      and

   -- Mr. Bin Abdul Karim's release of Formis from any guarantee
      given on behalf of or for benefit of OCSB and his
      indemnification of Formis against all liabilities arising
      after completion in respect of those guarantees, upon the
      completion date.

Mr. Abdul Bin Karim is OCSB's chief operating officer and
director, a position which he has held for six years.

                      About Formis (Malaysia)

Formis Malaysia Berhad -- http://www.formis.net/-- was
incorporated in Malaysia under the Companies Act, 1965 on March
23, 1992, under the name of Orlando Holdings Berhad.  The
Company was first listed on the Second Board of Bursa Malaysia
Securities Berhad on December 28, 1992, and subsequently, on
March 20, 2000, changed to its present name before being
transferred to Main Board of Bursa Securities on March 30, 2000.

Formis is principally an investment holding company and through
its subsidiaries, is involved in the provision of hardware,
software, maintenance and consultancy services in information
technology business, computer networking solutions and systems
integration as well as the wholesale and retail of full range of
"Orlando" ready-made menswear and related accessories.

Formis was admitted into Bursa Malaysia Securities Berhad's
Practice Note 17 category on March 10, 2006, due to a deficit in
its adjusted shareholders' equity and the impending cessation of
its major business.  Formis is in the process of completing the
disposal of its IT Business to My-InfoTech (M) Berhad.
Furthermore, it had also entered into a conditional sale and
purchase agreement dated January 6, 2006, to dispose of Orlando
Corporation Sdn Bhd.  After the disposal of its IT Business and
the proposed disposal of OCSB, Formis will not have any business
operations.


KIG GLASS: Bourse Decides to Delist Securities
----------------------------------------------
On August 4, 2006, Bursa Malaysia Securities Berhad decided to
give KIG Glass Industrial Berhad until September 3, 2006, to
appoint a new adviser and to submit its regularization plan to
relevant authorities two months from the date of the adviser's
appointment.

However, KIG failed to appoint a new adviser by the stipulated
date and Bursa Securities had rejected the company's application
to extend the appointment period through October 3, 2006.

In the circumstances and in accordance with Bursa Securities'
earlier decision, KIG's securities shall be delisted from the
Official List of Bursa Securities as the company does not have
an adequate level of financial condition and level of operations
to warrant continued listing on the Official List.

Accordingly, the company's securities will be removed from the
Official List on September 19, 2006.

                         About KIG Glass

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

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

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


PARACORP BERHAD: Unit Defaults in Payment of Overdraft Facility
---------------------------------------------------------------
Paracorp Berhad's wholly owned subsidiary, Lion Enterprise (M)
Sdn Bhd, has defaulted in its repayment of the overdraft
facility of MYR500,000 under the Master Facility Agreement dated
August 12, 1999, granted by Citibank Berhad.

As of August 1, 2006, Lion Electronics had defaulted on the
repayment of MYR85,149, the excess amount of the overdraft
facility which have been revised to MYR206,000.

Citibank, through Soo Thien Ming & Nashrah, Advocates &
Solicitors, has demanded that Lion Electronics pay the excess
amount together with legal costs, failing which the Solicitors
have been instructed to recall the Revised OD Facility and
commence legal proceedings against Lion Electronics.

The said default, which occurred due to the current constrain in
the cash flow of Lion Electronics, has not further financial
impact on Paracorp because the outstanding payable under the
Agreement has been accrued and is reflected in the company's
financial statements.

Paracorp is reviewing various restructuring options to address
its financial condition including restructuring of its repayment
obligation of the Revised OD Facility.

                         About Paracorp

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

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

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


POLYMATE HOLDINGS: Bumiputra Commerce Asserts Over MYR14M Claim
---------------------------------------------------------------
On September 6, 2006, Polymate Holdings and its wholly owned
subsidiary, Polymate Industries (M) Sdn Bhd, were served with a
copy of a Judgment dated August 1, 2006, obtained by Bumiputra
Commerce Bank Berhad.

Under the suit, Bumiputra Commerce is asserting a claim of
MYR14,041,907 plus interests as of December 31, 2005.  The
plaintiff is also demanding payment for other costs amounting to
MYR240.

Polymate Industries was also served a Writ of Summons and
Statement of Claims on August 9, 2006, by Titan Petchem (M) Sdn
Bhd, the Troubled Company Reporter - Asia Pacific revealed on
August 29, 2006.

Titan Petchem was claiming a principal amount of MYR1,592,725
plus a monthly interest of 1.5% on the amounts in each of the
invoices to be calculated 60 days from the date each of the
invoices was issued to the date of full settlement.  The
plaintiff was also seeking payment for other costs and further
relief that the Kuala Lumpur High Court deems fit.

                    About Polymate Holdings

Headquartered in Selangor Malaysia, Polymate Holdings Berhad
-- http://www.polymate.com.my/-- is engaged in the
manufacturing and marketing of lead acid batteries for the
automotive and related industries.  It is also engaged in the
manufacturing and dealing of plastic articles and products,
corrugated carton boxes and related products, manufacturing and
trading of door closers and trading of building materials,
investment holding, and provision of corporate and financial
support services.  The Group operates in Malaysia, Australia,
New Zealand, and Europe.

Polymate is negotiating with its lenders to restructure the
Group's credit facilities and is working on various schemes to
regulate its financial position.


PSC INDUSTRIES: Unit Inks HoA with Landas Fikir for Shipyard Ops
----------------------------------------------------------------
PSC Industries Berhad's wholly owned subsidiary, PSC Petroleum
Sdn Bhd, on September 7, 2006, entered into a Heads of Agreement
with Landas Fikir Sdn Bhd.

Under the agreement, the involved parties will collaborate in
engineering, construction, designing, building and repair of
vessels and other mutually agreed objectives at the shipyard in
Pulau Jerejak, Penang by way of a proposed joint venture
company.

Details of the joint venture will be further negotiated and will
be announced upon execution.

Unless mutually extended by the parties, the HoA will
automatically terminate without any further act from the parties
in the event that a joint venture agreement as contemplated
under the HOA and any related definitive agreements between
Landas Fikir and PSC Petroleum are not executed after a period
of six months from the date of the HOA.

                      About PSC Industries

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

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


SETEGAP BERHAD: Buyers Extend Period to Obtain Sale Approval
------------------------------------------------------------
Setegap Berhad, on January 26, 2006, proposed to dispose of:

   -- approximately 62.09% equity interests in Paving Plant and
      Processes (M) Sdn Bhd;

   -- 100% equity interests in Asphalt Industries Sdn Bhd; and

   -- landed properties in Damansara and Serdang.

On August 9, 2006, Alpha Positive Sdn Bhd -- the purchaser of
Paving Plant and Processes -- had agreed to extend the period to
obtain approval from its secured lenders and of the proposed
disposal of Paving Plant through January 31, 2007.

Meanwhile, Lee Kim Yeow and Chee Yen Yin -- the purchasers of
the land property in Damansara -- on August 11, 2006, agreed to
extend the period to fulfill the conditions precedent up to
October 30, 2006, for the proposed disposal of the Damansara
Land.

                      About Setegap Berhad

Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's
principal activities consist of the construction and maintenance
of roads, railways and building, including services rendered on
quarrying.  The Company's other activities include manufacturing
and selling offroad construction equipment, asphalt plants,
mixing plants, asphalt emulsions and premix.  The Group also
provides mechanical and electrical services, leases machinery
and investment holding.

Setegap's cash flow and profitability were affected by the Asian
financial crisis in 1997/98.  As of March 31, 2006, the
Company's balance sheet showed MYR71,401,000 in total assets and
MYR176,007,000 in total liabilities, resulting in a
stockholders' deficit of MYR104,606,000.


SATERAS RESOURCES: Delays 2006 Annual Report Submission
-------------------------------------------------------
Sateras Resources (Malaysia) Berhad failed to submit its 2006
Annual Report to Bursa Malaysia Securities Berhad pursuant to
the requirement of paragraph 9.26(3)(b) of the Bursa Securities
Malaysia Listing Requirements.

Sateras Resources' Annual Report for the Financial Year Ended
March 31, 2006, is due for submission since July 31, 2006.

The Company is presently undergoing financial constraints, which
seriously affected the submission of the Annual Audited Accounts
for the 2006 financial year, Sateras' Board of Directors
explains.

                    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.


TENAGA NASIONAL: Lists Additional 4,015,799 Shares
--------------------------------------------------
Tenaga Nasional Berhad's additional 4,015,799 new ordinary
shares of MYR1 each were granted listing and quotation on
September 11, 2006.

The new shares were derived from the conversion of USD8,560,000
nominal value of the five-year (2002/2007) guaranteed
exchangeable bonds issued by Tenaga Nasional's wholly owned
subsidiary, TNB Capital (L) Limited.

                     About Tenaga Nasional

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

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

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


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

EQUITABLE PCI: BSP Confirms Election of Directors
------------------------------------------------- Equitable PCI
Banks, Inc. discloses that the Bangko Sentral ng Pilipinas has
confirmed the election of 's directors:

   1. Corazon S. De La Paz        -- Chairperson
   2. Winston F. Garcia           -- Vice Chairperson
   3. Teresita T. Sy              -- Vice Chairperson
   4. Rene J. Buenaventura        -- Director/President & CEO
   5. Nazario S. Cabuquit, Jr.
   6. Fulgencio S. Factoran, Jr.
   7. Ma. Luz C. Generoso
   8. Antonio A. Henson
   9. Ramon J. Jabar
  10. Reynaldo P. Palmiery
  11. Ferdinand Martin G. Romualdez
  12. Edmundo L. Tan
  13. Josefina N. Tan

Equitable PCI notes that Messrs. Tirona and Garrucho's position
as independent directors is without prejudice to any information
that may be received from the Securities and Exchange Commission
on any substantial ownership and position with other companies
that may be adversely affect their role as independent
directors.

                      About Equitable PCI

Equitable PCI Bank, Inc. -- http://www.equitablepci.com/-- is a
universal bank formed from the consolidation of Equitable
Banking Corporation and PCI Bank on September 2, 1999.  EBC and
its subsidiaries provide a wide range of commercial, corporate,
and retail banking and financial services, including lending and
deposit taking, branch banking, international banking,
electronic banking, trade finance, cash management, and trust
and treasury services.  Aside from commercial banking, the Bank
also capitalizes in credit card, investment banking, leasing,
trust banking, and remittance business.

                          *     *     *

Moody's Investors Service gave Equitable PCI Bank's Subordinated
Debt and Long-Term Bank Deposits 'Ba3' ratings effective May 25,
2006.

Standard & Poor's Rating Service gave Equitable PCI Bank's
senior unsecured debt a 'B' rating and its subordinated debt a
CCC+ rating.


BANK OF CEBU: Accuses BSP & PDIC of Abuse of Discretion
-------------------------------------------------------
On September 12, 2006, the Bank of Cebu filed a petition for
certiorari before the Court of Appeals in Cebu asking for a writ
of temporary restraining order to reopen the bank, Jhunnex
Napallacan of the Philippine Daily Inquirer reports.

The report says the Bank of Cebu accuses the Bangko Sentral ng
Pilipinas and Philippine Deposit Insurance Corporation of grave
abuse of discretion when they closed the bank.

The bank's counsel, Jose Maronilla, filed the petition on behalf
of:

   * the management,
   * common stockholders, and
   * depositors and employees.

PDIC officials Imelda Singzon, Nancy Sevilla and Benifico
Magday, as well as the Monetary Board officials Fernando
Caballa, Nila Nazareno, Dindo Santos, and Ernesto Ramos
were named as respondents, the Inquirer relates.

According to the paper, the individual petitioners include:

   (a) Bank of Cebu president Ephraim Cuadra Salcedo;

   (b) Ricardo Angeles for Peninsula Equities and Realty Assets
       Inc., the majority stockholder;

   (c) Danilo Lucas, a stockholder and a representative of the
       employees; and

   (d) several depositors.

They assert that the bank, under a new management, had been
improving operations over the past two years, the Inquirer
notes.

Leopoldo Solano, chief of the bank's branch operations and one
of the petitioners, says they question the basis of the Monetary
Board and BSP's action placing the bank under receivership.

The petitioners assert that the bank's branches were in normal
operations until August 31, 2006, the day when PDIC implemented
the receivership order.

The Inquirer quotes the petitioners' 35-page petition as saying:

   "The bank had and has realizable assets to meet liabilities.
   And it has been and is very much in a position and able to
   continue its business without involving probable losses to
   its depositors or creditors."

The petitioners also added that based on their records, the bank
is clean and debt-free and without liabilities other than those
pertaining to deposits, the paper relates.

According to the Inquirer, Mr. Solano is confident that the bank
will be able to recover the good will it had established among
its clients.

Mr. Solano assures that employees who were fired by the PDIC
will be rehired once the court allows it, the Inquirer relates.

                          *     *     *

The Troubled Company Reporter - Asia Pacific previously reported
that on September 1, 2006, the Bank of Cebu was deemed insolvent
by the Bangko Sentral ng Pilipinas.  Thus, BSP closed all seven
branches of the bank located in:

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

According to the TCR-AP, the bank may reopen depending on its
board members' rehabilitation plan.  The bank's owners were
given 90 days to present a viable rehabilitation plan, which
PDIC will evaluate to determine their capacity manage the bank,
the TCR-AP noted.

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

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


FIL-ESTATE CORPORATION: Board Postpones ASM to Later Date
---------------------------------------------------------
At a meeting of the Board of Directors of Fil-Estate Corporation
held on August 11, 2006, the Board decided to postpone to a
later date the company's annual stockholders' meeting previously
scheduled on September 19, 2006.

The postponement will give the company's external auditor more
time to complete auditing the company's books of account.

                  Posts Deficit for 2Q2006

As of June 30, 2006, Fil-Estate Corporation's balance sheet
revealed total liabilities of PHP2,077,170,690 exceeding total
assets of PHP1,767,891,531, resulting to stockholders' deficit
of PHP310,073,145.  These figures showed a slight increase as of
the same period in 2005 which showed total liabilities of
PHP2,074,758,035 also exceeding total assets of
PHP1,767,799,111, which resulted in stockholders' deficit of
PHP308,097,615.

AS of the end of the second-half of 2006, Fil-Estate reflected
an increased deficit of PHP1,896,329,110 as compared to the
figure for the end of the first-half of 2005, which was
PHP1,863,080,884.

As of June 30, 2006, the company posted a deficit of
PHP1,896,329,110 higher compared to the same quarter in 2005
which is PHP1,863,080,884.

The company explains that its regular operating expense brought
about the net loss for second quarter of 2006 of about PHP1.9
million.

The company notes that cash increased by about PHP25,000 from
PHP149,000 in 2005 to PHP174,000 in 2006, the funds were
substantially used for funding for the company's regular
expenses.

The increase in Due to related parties account of about
PHP2.4 million corresponds to additional advances made by FEMI,
one of the major stockholders of the company.

The company's financial results for the quarter-ended June 30,
2006, is available for free at:

http://www.pse.org.ph/html/ListedCompanies/pdf/2006/FC_17Q_Jun2006.pdf

Fil-Estate plans to continue its strategy of maintaining itself
as a holding company with key investment in the MRT project
through Metro Rail Transit Holdings, Inc., and Metro Rail
Transit Holdings 2.  The operation for the next 12 months will
be strictly confined to that of an investee company.

Depending on the progress of MRTC and MRTH discussions on Phase
2 of the MRT project, Fil-Estate Corporation may consider
further investing or participating in the phase 2 projects.

The company also notes that its performance indicator cannot be
effectively measured or discussed, since its operation is
strictly confined with the investment in MRT.

                        About Fil-Estate

Fil-Estate Corporation was originally incorporated as San Jose
Oil Company, Inc. whose primary purpose was to prospect for and
market, oil, natural gas and other minerals and secondarily
invest in non-mining corporation or other enterprises.  In July
1996, the Board of Directors and the stockholders approved the
change in the Company's primary purpose from oil exploration to
that of a holding company authorized to engage in property and
infrastructure development, as well as the increase in
authorized capital stock from PHP300 million to PHP2 billion
with par value of PHP1.00 per share.

On January 22, 1998, the Securities and Exchange Commission
approved the change in corporate name to Fil-Estate Corporation,
the change in primary purpose from oil exploration to a holding
firm, the change in par value from P0.01 to P1.00 per share, and
the declassification of the A and B shares.  The Company shall
engage in infrastructure, privatization, leisure and real estate
investments through directly managed subsidiaries, associated
entities and strategic alliances. On December 31, 2002, the SEC
approved the Company's increase in authorized capital stake from
PHP300 million shares to PHP2 billion shares.

The key investment of Fil-Estate Corporation is in the form of
equity interest in Metro Rail Transit Holdings, Inc., and Metro
Rail Transit Holdings 2.  The combined investment in these two
holding companies represents approximately 28.5% interest in the
MRT phase I train system which runs from North triangle and Taft
Avenue.

As of June 30, 2006, Fil-Estate Corporation's balance sheet
revealed total liabilities of PHP2,077,170,690 exceeding total
assets of PHP1,767,891,531, resulting to stockholders' deficit
of PHP310,073,145.


METROPOLITAN BANK: Amends 1Q Ended March 31, 2006
-------------------------------------------------
On September 11, 2006, Metropolitan Bank & Trust Company
informed the Philippine Stock Exchange of these amendments in
its original report for the quarter ended March 31, 2006:

   1. reclassification of the Investment Properties of a wholly
      owned subsidiary amounting to PHP1,360,603,196 from Other
      Resources - net to Investment Properties; and

   2. material changes in the Statement of Condition accounts
      during the quarter, which refer to amounts of at least 5%
      of the relevant accounts, or a lower amount that the bank
      deems material on the basis of other factors.

A full-text copy of the bank's amended report for the quarter
ended March 31, 2006, is available for free at:

http://www.pse.org.ph/html/ListedCompanies/pdf/2006/MBT_17Q_Sep2006.pdf

                        About Metrobank

Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the
Metrobank Group.  Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network.  Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.

The Bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.

                          *     *     *

On March 3, 2006, the Troubled Company Reporter - Asia Pacific
reported that Standard and Poor's Rating Service assigned a CCC+
rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.

Moreover, Moody's gave Metrobank a Ba3 Foreign Long-Term Bank
Deposits and Subordinated Debt Rating effective May 25, 2006.

Fitch Ratings Ltd. gave Metrobank a B- Subordinated Debt Rating.


PHILIPPINE LONG DISTANCE: Denies Foreign Control Above 40%
----------------------------------------------------------
In a disclosure with the Philippine Stock Exchange, the
Philippine Long Distance Telephone Co., denies that foreign
ownership of its capital exceeds the constitutional limit
of 40% and that foreigners control its Board of Directors.

PLDT's denial is in relation to the news article entitled
"Aliens control PLDT (60% foreign ownership violates
Constitution)" published in the September 13, 2006 issue of
Malaya newspaper.

The company contends that foreign ownership of PLDT's capital
has always been and remains to be below 40% and foreign
representation in the Board of PLDT is in proportion to the
percentage of foreign ownership of PLDT's capital.

The company discloses that as of August 31, 2006, only
122,693,774 shares or 13.7% of the 896,294,802 total subscribed
shares of PLDT were owned by foreigners, with two foreign
representations in the Board of PLDT.

                           About PLDT

Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.

                          *     *     *

Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT.  Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.

Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+.

Standard & Poor's also affirmed its 'BB+' foreign currency
rating on the company with a stable outlook.


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

ASICHEM TRADING: Creditors' Meeting Set on September 28
-------------------------------------------------------
Creditors of Asichem Trading (S) Pte Ltd will convene on
September 28, 2006, 2:30 p.m. at 331, North Bridge Tower, No.
04-04/5, Odeon Towers, Singapore.

During the meeting, members will be asked to:

     -- consider the appointment of a Committee of Inspection;

     -- authorize members of the COI and the Liquidators to
        gain access to bank accounts, which will be jointly
        operated by COI members and Liquidators;

     -- appoint a Solicitor to assist the Liquidators in their
       duties; and

     -- consider other matters relevant to the meeting.

The Joint Liquidator can be reached at:

         Aw Eng Hai
         Foo Kon Tan Grant Thornton
         47 Hill Street, No. 05-01
         Singapore Chinese Chamber of Commerce & Industry Bldg
         Singapore


GLOBELL CHEMICAL: Faces Wind-Up Proceedings
-------------------------------------------
A wind-up petition filed against Globell Chemical Co Ltd will be
heard before the High Court of the Republic of Singapore on
September 22, 2006, at 10:00 a.m.

Silberline Asia Pacific Inc filed the petition on August 30,
2006.

The Solicitors for the Plaintiff can be reached at:

         Drew & Napier LLC
         20 Raffles Place
         No. 17-00, Ocean Towers
         Singapore


REFCO: Asks Court to Approve Settlement Accord with BofA, et al.
----------------------------------------------------------------
Refco, Inc., and certain of its subsidiaries and affiliates, and
Marc Kirschner, the Chapter 11 trustee of Refco Capital Markets,
Ltd., ask the U.S. Bankruptcy Court for the Southern District of
New York to approve a settlement agreement with Bank of America,
N.A., and a syndicate of lenders under an August 5, 2004, credit
agreement.

The Settlement Agreement implements a key component of a global
plan being negotiated for the Refco estates, J. Gregory Milmoe,
Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York,
explains on the Debtors' behalf.

The Global Plan, Mr. Milmoe says, would call for pre-
confirmation payments to a group of the Debtors' secured
lenders.  The payments will help ensure the availability of
funds to pay other constituencies by:

   (1) cutting off the interest accruing on the secured lenders'
       claims in excess of US$6,000,000 per month or US$200,000
       per day;

   (2) minimizing the incurrence of additional professional fees
       by the Debtors, the Debtors' secured lenders, the
       Committees and others, which have already been
       substantial; and

   (3) resolving disputes over the use of cash collateral.

The specific terms of the Global Plan are currently being
negotiated and a formal agreement has not yet been reached among
the various constituencies, Edwin E. Smith, Esq., at Bingham
McCutchen LLP, in New York, tells the Court on the RCM Trustee's
behalf.  The Motion is being filed in the expectation that a
formal agreement for a Global Plan will be reached, Mr. Smith
says.

              Refco's Obligations to BofA & Lenders

Refco Finance Holding, LLC, entered into the Credit Agreement in
connection with an Equity Purchase and Merger Agreement among
Refco Group Ltd., LLC; Refco Group Holdings, Inc.; Thomas H. Lee
and its affiliates; and certain other parties.  The Equity
Purchase Agreement required Refco Group to obtain
US$1,400,000,000 in financing through a term loan and a note
issuance.

The Equity Purchase Agreement contemplated a series of
transactions resulting in:

   (i) New Refco Group, Ltd., LLC, becoming the parent of Refco
       Group;

  (ii) THL and its co-investors acquiring a 56.7% interest in
       New Refco Group;

(iii) Phillip Bennett, CEO of the various Refco Entities,
       owning a 42.8% interest in New Refco Group; and

  (iv) Refco management owning the remaining 0.5% of New Refco
       Group.

RFH and Refco Group merged on Aug. 5, 2004, with Refco Group as
the surviving entity.

The Credit Agreement provided for up to US$800,000,000 in term
loans and a US$75,000,000 revolving credit facility.  New Refco
Group and certain of Refco Group's affiliates guaranteed Refco
Group's obligations under the Credit Agreement.

Refco Group and the Guarantors granted BofA, as administrative
agent for the Lenders, a security interest in substantially all
of Refco Groups' and the Guarantors' assets pursuant to a
Security Agreement and certain Collateral Documents.

RFH and Refco Finance, Inc., also issued US$600,000,000 in 9%
Senior Subordinated Notes pursuant to a Senior Subordinated Note
Indenture dated Aug. 5, 2004, with Wells Fargo Bank, N.A.  The
Notes were guarantied by Refco Group and certain of Refco
Group's affiliates, but the Notes and the guaranties are
unsecured and subordinate to the claims arising from the Loan
Documents.

As of the Petition Date, there was approximately US$642,000,000
in principal outstanding under the Credit Agreement exclusive of
interest, fees, and other obligations.  Interest on the
principal is accruing at a rate of more than US$6,000,000 per
month.

BofA has filed proofs of claim against the Debtors based on
amounts due under the Loan Documents.  BofA also asserted claims
based on, among others things, fraud and misrepresentations of
the Debtors.  BofA said certain of the Debtors were potentially
employed in a joint scheme to defraud the Lenders in relation to
the Recapitalization.

On Jan. 24, 2005, the Refco estates paid US$150,000,000 to the
Lenders in partial satisfaction of amounts due under the Credit
Agreement.  BofA transferred the funds to certain of the
Lenders.

             Potential Claims Against BofA & Lenders

The Joint Subcommittee of the Official Committees of Unsecured
Creditors believes that the Debtors' estates hold potential
causes of action to (i) avoid their obligations to the Lenders,
and (ii) recover the Repayment as fraudulent conveyances.

The Joint Subcommittee, however, acknowledges that resolution of
the claims against BofA and the Lenders would be expensive and
time-consuming.  BofA and Lenders may assert significant
defenses like solvency, reasonably equivalent and fair value,
lack of grounds for collapsing transactions, lack of causation,
inability to avoid settlement payments and the like, Mr. Smith
tells Judge Drain.

                   Major Settlement Terms

The Debtors and the RCM Trustee filed with the Court a proposed
order, which sets out the settlement terms permitting the
payment of the Debtors' secured lenders.  The Proposed Order,
Mr. Smith relates, also provides the means by which the Debtors
can avoid contesting and, if unsuccessful, paying claims
asserted by BofA and the Lenders based on alleged fraud and
misrepresentations as well as contesting or paying claims for
indemnification, additional interest, and other amounts claimed
under contracts.

A full-text copy of the Proposed Order is available at no charge
at http://bankrupt.com/misc/Refco_BofAPactPropOrder.pdf

The Proposed Order provides that BofA and the Lenders' claims
under the Loan Documents will be allowed in full as secured
claims in the cases of Refco Group and the debtor-Guarantors.
The claims will be secured by valid and perfected liens in
collateral, which will be worth more than the amount of the
secured claims.  The secured claims will not be subject to
avoidance.

On or before the later of Oct. 16, 2006, or a later date that is
agreed upon, the Debtors will pay BofA:

   * US$642,000,000, constituting the full outstanding principal
     amount due under the Loan Documents;

   * US$1,693,276, constituting the full amount of interest
     accrued and unpaid under the Loan Documents on the Petition
     Date;

   * all interest accrued on principal and interest payable
     under the Loan Documents from the Petition Date through the
     Payment Date, payable at the Post-Petition Interest Rate
     and compounded daily from the Petition Date through the
     Payment Date;

   * the lesser of US$13,500,000 and the fees and expenses that
     arereimbursable under the Loan Documents through
     Sept. 30, 2006.  The amount is subject to increase upon the
     occurrence of certain events, such as if the hearing on the
     Motion is contested or if BofA incurs additional fees as a
     result of being sued prior to Sept. 30; and

   * other fees and expenses payable under the Loan Documents
     incurred from Oct. 1, 2006, through the Payment Date.

The Post-Petition Interest Rate is the Base Rate in effect from
time to time plus the Applicable Rate applicable to Base Rate
Loans, as each term is defined in the Credit Agreement, but
without the additional 2% per annum default interest provided in
the Credit Agreement.

BofA and the Lenders are deemed to consent to their Liens being
primed in part by security interests and liens that secure
credit obligations incurred by the Debtors for the purpose of
funding or refinancing the funding of payments made to BofA
pursuant to the Proposed Order if the principal amount of the
credit obligation does not exceed US$200,000,000.

                       Qualifying Plan

The parties participating in the Settlement, including the
Debtors and the RCM Trustee, expect to execute a participating
party agreement by the September 27, 2006, hearing on the
Motion.  The parties will agree to:

   -- use their reasonable best efforts to ensure that a plan
      confirmed in the Chapter 11 Debtors' cases is a Qualifying
      Plan; and

   -- be bound by the terms and conditions of the Proposed
      Order, whether or not a plan is agreed upon or confirmed.

A list of the participating parties is available at no charge at
http://bankrupt.com/misc/Refco_ParticipatingParties.pdf

A Qualifying Plan, among others, implements the terms and
conditions of the Proposed Order, including the treatment of and
releases provided to BofA and the Lenders.  BofA's and the
Lenders' claims for indemnification and other amounts due under
the Credit Agreement will be estimated at US$0 for purposes of
allowance in the Debtors' cases.  Their unsecured claims,
including claims for fraud and misrepresentation, will also be
estimated at US$0.

                       Cash Collateral

Upon payment in full of amounts required to be paid on or before
the Payment Date, the Debtors will be authorized to use the
Lenders' cash collateral to pay allowed administrative expenses
and to make other payments under an effective Qualified Plan or
as permitted by the Bankruptcy Court without any further consent
of or provision of adequate protection to BofA or the Lenders.

The Adequate Protection Motion currently before the Court will
be postponed to the date of the hearing on confirmation of a
plan.  BofA and the Lenders will not seek any additional
adequate protection.

                        BAWAG Proceeds

BofA has asserted, on the Lenders' behalf, a security interest
in, among other Refco assets, the cash proceeds of the Debtors'
settlement with BAWAG P.S.K. Bank fur Arbeit und Wirtschaft und
Osterreichische Postsparkasse Aktiengesellschaft.

Mr. Milmoe relates that to the extent that Refco Group or any of
the Guarantors ever come into possession of the BAWAG Proceeds,
on or prior to the Payment Date, the Debtors may use these
proceeds to make the payments required under the Proposed Order.

                      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 US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.

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

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

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


REFCO INC: Wants to Walk Away from 18 Trading Operation Deals
-------------------------------------------------------------
By orders dated November 14 and 15, 2005, the United States
Bankruptcy Court for the Southern District of New York
authorized Refco Inc., and its debtor-affiliates and certain of
their affiliates to enter into and perform under an Acquisition
Agreement with Man Financial Inc.  The Court also approved the
sale of the Sellers' regulated commodities trading business and
the assumption and assignment of certain related executory
contracts and unexpired leases to be designated by Man.

The Acquisition Agreement provides for the Sellers and Man to
enter into a Buyer Transition Services Agreement and a Seller
Transition Services Agreement, pursuant to which the Sellers and
Man were to provide each other services necessary to facilitate
the transfer of the Acquired Assets to Man for 270 days
following the closing of the asset sale.  The Transition
Services Agreements expired on August 22, 2006.

Sally McDonald Henry, Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in New York, informs Judge Drain that 18 contracts
were utilized in trading operations of the Debtors' business
that was sold to Man.  The contracts generally relate to
routing, trading information, connectivity and communication
services.

The Contracts are:

Debtor             Counterparty           Description
------             ------------           -----------
Refco Inc.         4Cast Inc              Client Order Form

                   Avotus Corp.           Revised 90-Day Annual
                                          Support Renewal Notice

                   De Lage Landen         Lease Agreement
                      Financial Services

                   IBM Corporation        Master Services
                                             Attachment for
                                             ServiceElite

Refco Group Ltd.,  Brio Technology, Inc.  Brio Software License
   LLC                                       Agreement

                   Cogent Canada Inc.     Layer 2 Network
                                             Services

                   Cogent Communications  Layer 2 Network
                                             Services

                   CQG, Inc.              NASDAQ Consolidated
                                             Subscriber
                                             Agreement

                   CQG, Inc., and CQGI,   CQG Order Routing
                      Ltd.                   Service Broker
                                             Agreement

                   Ecco, LLC, & EccoWare  Software License
                      Limited                Agreement

                   FNX Limited            Sierra System Product
                                             License Agreement

                   IFC Credit Corp.       Equipment Lease
                                             Agreement & Advance
                                             Funding Addendum

                   Imceda Software        Sales Quotation

                   Matrix Integration     Services Agreement
                      Technology

                   Patsystems (NA) LLC    Software License
                                             Agreement

                   SalesForce.com         Master Services
                                             Agreement

                   Sybase, Inc.           Software License
                                             Agreement &
Addendum

                   Tibco Software, Inc.   End User Maintenance
                                             Agreement

Considering that the Transition Services Agreements have now
expired, the services provided pursuant to the Contracts are no
longer needed, Ms. Henry says.

Accordingly, the Debtors seek the Court's permission under
Section 365 of the Bankruptcy Code to reject the Contracts,
effective as of August 30, 2006.

The Debtors also propose that any counterparties seeking to
assert rejection damage claims must file a proof of claim within
30 days after the Court rules on the request.

The Debtors currently believe that the Contracts are executory
contracts within the meaning of Section 365.  However, further
investigation and analysis may reveal that one or more of the
Contracts are not executory.  Therefore, the Debtors reserve the
right to assert, including in connection with resolution of
contract rejection damage claims, that the Contracts are not
executory.

                   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. 40; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


SEAGATE TECHNOLOGY: Earns US$840 Million in Fiscal 2006
-------------------------------------------------------
Seagate Technology submitted its annual financial report on Form
10-K to the Securities and Exchange Commission on Sept. 11,
2006.

Revenue for fiscal year 2006 was approximately US$9.2 billion,
up 22% from approximately US$7.6 billion in fiscal year 2005.
The increase in revenue was primarily due to record disc drive
shipments of 118.7 million units in fiscal year 2006 compared to
98.1 million units in fiscal year 2005.

For the fiscal year ended June 30, 2006 net income was US$840
million versus net income of US$707 million for the prior fiscal
year.

The Company had approximately US$1.7 billion in cash, cash
equivalents and short-term investments at June 30, 2006, which
includes $910 million of cash and cash equivalents.  Cash and
cash equivalents increased by US$164 million during fiscal year
2006, up from US$746 million at July 1, 2005.  The increase
primarily provided by cash from operations of approximately
US$1.5 billion.

The Company disclosed that it has a US$100 million revolving
credit facility that matures in November 2008, which is
available for cash borrowings and for the issuance of letters of
credit up to US$100 million.  No borrowing has been drawn under
the revolving credit facility.  The Company utilized US$31
million for outstanding letters of credit and bankers'
guarantees as of June 30, 2006.

The Company also had other uncommitted unsecured credit lines
totaling US$21 million at June 30, 2006.  As of June 30, 2006, a
total of US$8 million of letters of credit and bank guarantees
were outstanding under the facilities.

The Company also disclosed that during fiscal year 2006
dividends aggregating approximately US$155 million were paid to
its common shareholders.

As a result of the Maxtor acquisition, the Company assumed all
debts and liabilities of Maxtor Corporation, together with cash
and short-term investments, and any consolidated indebtedness of
Maxtor Corporation outstanding at May 19, 2006, including its
outstanding convertible senior notes, which were consolidated
with the Company's indebtedness.

The Company repurchased a total of approximately 16.7 million
common shares for approximately US$400 million during the
quarter ended June 30, 2006, all of which were retired and
therefore not available for reissue.  In July 2006, its board of
directors approved an additional share repurchase of up to
US$2.5 billion of common shares over the next two years.

A full text-copy of Seagate Technology's financial report for
the fiscal year 2006 may be viewed at no charge at:

              http://ResearchArchives.com/t/s?117f

                     About Seagate Technology

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

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

                          *     *     *

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

                           *     *     *

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


UNICOMM NETWORK: Creditors to Receive Wind-Up Report
----------------------------------------------------
Creditors of Unicomm Network Services Pte Ltd will convene at
Liquidator Goh Thien Phong's office on October 4, 2006, at 12:00
noon.

At the meeting, the creditors will receive Mr. Goh's report
regarding the company's wind-up proceedings.

The Liquidator can be reached at:

         Goh Thien Phong
         8 Cross Street, No. 17-00
         PWC Bldg, Singapore


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

NFC FERTILZER: Won't Seek De-listing from SET, CEO Says
-------------------------------------------------------
Nuttaphob Ratanasuwanthawee, NFC Fertiliser Plc's chief
executive officer, announced that the company will not delist
its securities from the Stock Exchange of Thailand, The Nation
reports.

"We reached the conclusion that we will not de-list the
company's stock and our stock is now listed under the non-
performing group," he told Thai-language news agency Bisnews.

The Nation recounts that early this year, Mr. Nuttaphob said
that NFC's stock would be delisted without seeking to
rehabilitate the company because its major shareholders were
barred from a tender offer to purchase remaining shares from the
stock market.

Based on SET's regulations, listed companies with shareholders'
equity below zero have two choices -- immediate delisting from
the bourse or rehabilitating their businesses.

The company is among 17 firms listed under the non-performing
group, which includes Datamat, Bangkok Steel Industry, Manager
Media Group, Thai Durable Group, Sun Tech Group, Thai Wah and
Tanayong.

If they can comply with the SET's criteria to restore
shareholders' equity to positive territory and restructure 75
per cent of their debts, then they would be allowed to trade in
their normal sectors.

NFC's stock has been suspended from trading for a long time and
its price before suspension stood at Bt1.36 per share.  Mr.
Nuttaphob and his group hold 51% of NFC, while Wichai Tongtang
and Direk Chatpimonkul own 26%.

Headquartered in Bangkok, NFC Fertilizer Public Company Limited
-- http://www.nfc.co.th-- produces chemical fertilizer
containing nitrogen, phosphate, and potash, under its Nation
Fertilizer brand name.  Additionally, it imports and distributes
urea, ammonium sulfate, and potassium chloride fertilizers.  The
Company also distributes phosphoric acid and gypsum, which are
by-products of its fertilizer production.

In the third quarter of 2004, the Company had entered into a
debt restructuring in accordance with its business
rehabilitation plan.

The Company then reported a gain on debt restructuring of
THB11.29 billion, which was presented as an extraordinary item
in the statement of income for the year ended December 31, 2004.
Subsequently, on August 24, 2004, the Plan Administrator made a
request to Thailand's Central Bankruptcy Court to cancel its
business rehabilitation, which the Court approved on September
13, 2004.

Recently, the management proposed to change the Company's
business plan toward providing logistic services including all
warehouses and related services.  Presently, the shareholders
have not had a resolution on such proposal.  The Company is in
the process of reviewing its plan.

The Company is currently listed under the "Non-Performing Group"
sector of the Stock exchange of Thailand.


SIAM COMMERCIAL: Seeks to Clear Name In Shin Corp-Temasek Deal
--------------------------------------------------------------
Siam Commercial Bank denied any wrongdoing related to its role
in the takeover of Shin Corp by Temasek Holdings of Singapore,
The Bangkok Post reports.

The bank was a key adviser for the Temasek deal, and a direct
investor with a 10% stake in Cedar Holdings, one of several
firms set up to hold Shin shares, the Post relates.

A widespread investigation regarding the legality of the Temasek
shareholding structure and its use of nominees has rattled many
within the business community.

According to the Troubled Company Reporter - Asia Pacific,
investigations started when the Commerce Ministry of Thailand
probed into the status of Kularb Kaew and its shareholdings in
telecom giant Shin Corp.

Temasek Holdings -- the investment arm of the Singapore
Government -- set up Kularb Kaew and two other holding companies
as part of its takeover of Shin Corp in late January, the TCR-AP
said.  Authorities are looking into whether Kularb Kaew, now
68%-owned by Sino-Thai businessman Surin Upatkoon, is a
legitimate Thai company, or is in fact a nominee for Temasek.

Meanwhile, the Post notes that Siam Commercial's total exposure
to the Shin deal is estimated at around THB16 billion, including
loans made to Temasek as well as direct investments made by the
bank.  SCB Securities, the bank's investment banking arm, played
a major role in setting up the structure of the Shin takeover.

Khunying Jada Wattanasiritham, the bank's president said that
the bank had no investment ties to Kularb Kaew.

The bank's relationship to the deal was only as a shareholder in
Cedar Holdings and a lender to Temasek, Ms. Khunying Jada said.
"Yes, we are one of three major investors in Cedar.  When we
made the decision to invest, it was with the general
understanding that this would be a Thai company," she adds.

SCB's shareholdings in Cedar, initially 10% when the Temasek
deal was first launched in late January, now stands at just 5%
after Cedar raised capital to support the Shin tender offer, the
Post recounts.

The sheer size of the deal meant that a number of other banks
were also involved, Ms. Khunying Jada added.  She also stated,
"We can't deny our involvement in this deal. We decided to
invest as we believed it was good business for the bank."

Ms. Khunying Jada acknowledged that the "complicated"
transaction had probably had an impact on the bank's image, and
that the bank was now studying the situation in co-operation
with outside legal experts.

                          *     *     *

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

The Troubled Company Reporter - Asia Pacific reported on
August 23, 2006, that Moody's Investors Service has confirmed
Siam Commercial Bank Public Company Limited's D+ bank financial
strength rating and changed its outlook to positive from stable.


* Large Companies With Insolvent Balance Sheets
-----------------------------------------------

                                                       Total
                                           Total   Shareholders
                                           Assets      Equity
Company                        Ticker       ($MM)      ($MM)
------                         ------    ------------  ------

AUSTRALIA

Acma Engineering & Const.
   Group Limited                  ACX        21.39      -2.24
Allstate Explorations NL          ALX        12.65     -51.62
Austar United Communications Ltd. AUN       231.54     -52.58
Global Wine Ventures Limited      GWV        22.04      -0.84
Hutchison Telecommunications
   (Aust) Ltd.                    HTA      1696.65    -786.31
Indophil Resources NL             IRN        37.79     -69.96
Intellect Holdings Limited        IHG        23.98     -11.13
Namberry Limited                  NMB        15.12      -4.26
Orbital Corporation Limited       OEC        14.01      -4.86
RMG Limited                       RMG        22.33      -2.16
Stadium Australia Group           SAX       135.23     -41.84
Tooth & Company Limited           TTH        99.25     -74.39
Tourism, Hotels & Leisure Ltd.    TLC        15.76      -0.66

CHINA AND HONG KONG

Artel Solutions Group
  Holdings Limited                931        29.19     -18.65
Asia Telemedia Limited            376        10.89      -5.50
Anhui Feicai Vehicle Co. Ltd.     887       129.80      -7.00
Bestway International             718        25.00      -0.67
Chang Ling Group                  561        77.48     -76.83
Chengdu Book - A               600083        21.50      -3.07
China Liaoning International
  Cooperation Holdings Ltd.       638        25.79     -43.45
China Kejian Co. Ltd.              35        54.71    -179.23
Datasys Technology Holdings      8057        14.10      -2.07
Eforce Holdings Limited           943        10.31      -0.51
Everpride Biopharmaceutical
   Company Limited               8019        10.16      -2.16
Fujian Changyuan Investment
   Holdings Limited               592        31.36     -54.04
Gold-Face Holdings Limited        396        40.60     -63.11
Guangdong Meiya Group
   Company Ltd.                   529       107.16     -49.54
Guangdong Sunrise Group
   Company Ltd-A                   30        35.98    -182.94
Guangdong Sunrise Group
   Co. Ltd-B                   200030        35.98    -182.94
Guangxi Wuzhou Zhongheng
   Group Co Ltd.                  557        62.19    -115.50
Hainan Dadonghai Tourism          613        19.74      -5.81
Hainan Dadongh-A               200613        19.74      -5.81
Hainan Overseas Chinese
   Investment Co. Ltd.         600759        32.70     -15.28
Hans Energy Company Limited       554        94.75     -10.76
Heilong Jiang Long Di Co. Ltd.    832       134.62     -61.22
Heilongjiang Sun & Field
   Science & Tech.                620        29.96     -49.18
Heilongjiang Black Dragon
   Co. Ltd.                    600187       121.30     -74.45
Hualing Holdings Limited          382       242.26     -28.15
Huda Technology & Education
   Development Co. Ltd.        600892        17.29      -0.19
Hunan Anplas Co., Ltd.            156        94.17     -65.04
Hunan GuoGuang Ceramic
   Co., Ltd.                   600286        87.44     -68.55
Innovo Leisure Recreation
   Holdings Ltd.                  703        13.68      -2.01
Jiangsu Chinese.com Co. Ltd.      805        15.86     -34.56
Jiangxi Paper Industry
   Co. Ltd                     600053        19.58     -12.80
Loulan Holdings Limited          8039        13.01      -1.04
Magnum International Holdings
   Limited                        305        10.35      -5.83
Mindong Electric Group Co., Ltd.  536        21.63      -1.50
New City (Beijing) Development
   Limited                        456       151.61     -19.15
New World Mobile Holdings Ltd     862       215.47    -126.57
Orient Power Holdings Ltd.        615       176.86     -64.20
Plus Holdings Ltd                1013        24.00      -3.15
Prosperity International
   Holdings (HK) Limited         8139        10.73      -2.45
Shandong Jintai Group Co. Ltd.  600385       19.58     -12.18
Shanghai Xingye Housing
   Company Ltd                 600603        14.90     -72.98
Shenyang Hejin Holding
   Company Ltd.                   633        83.18     -20.87
Shenz China Bi-A                   17        39.13    -224.64
Shenz China Bi-B                   17        39.13    -224.64
Shenzhen Dawncom Business Tech
   And Service Co., Ltd           863        79.84     -37.30
Shenzhen Shenxin Taifeng Group
   Co. Ltd.                        34        95.27     -44.65
Shenzen Techo Telecom Co., Ltd.   555        14.84      -6.25
Sichuan Changjiang Packaging
   Holding Co. Ltd.            600137        13.11     -72.76
Sichuan Topsoft Investment
   Company Limited                583       113.12    -148.61
SMI Publishing Group Ltd.        8010        10.48      -7.83
Songliao Automobile Co. Ltd.   600715        49.56      -3.76
Sun's Group Manufacturing
   Company Limited                988       103.02     -72.80
Taiyuan Tianlong Group Co.
   Ltd                         600234        13.47     -87.63
Theme International
   Holdings Limited               990        22.46      -0.77
UDL Holdings Limited              620        12.48      -7.15
Wealthmark International
   (Holdings) Limited              39        11.32      -2.43
Winowner Group Co. Ltd.        600681        38.03     -62.88
Xinjiang Hops Co. Ltd          600090       101.34    -135.99
Yantai Hualian Development
   Group Co. Ltd.              600766        59.99      -7.66
Yueyang Hengli Air-Cooling
   Equipment Inc.                 622        49.89     -17.71
Zarva Technology Co. Ltd.         688       101.76    -102.01

INDIA

PT Dharmala Intiland             DILD       197.91      -6.62

INDONESIA

Ades Waters Indonesia Tbk        ADES        21.35      -8.93
Bukaka Teknik Utama Tbk          BUKK        44.45    -107.00
Hotel Sahid Jaya                 SHID        71.05      -4.26
Jakarta Kyoei Ste                JKSW        44.72     -38.57
Mulialand Tbk                    MLND       160.45     -19.82
Multibreeder Adirama Indonesia   MBAI        64.54      -2.31
Pakuwon Jati Tbk                 PWON       188.41     -50.78
Panca Wiratama Sakti Tbk         PWSI        39.72     -18.82
PT Steady Safe                   SAFE        19.65      -2.43
PT Toba Pulp Lestrari Tbk        INRU       403.58    -198.86
PT Unitex Tbk                    UNTX        29.08      -5.87
PT Voksel Electric Tbk           VOKS        44.01     -11.74
PT Wicaksana Overseas
   International Tbk             WICO        84.36     -32.88
Sekar Bumi Tbk                   SKBM        23.07     -41.95
Steady Safe Tbk                  SAFE        19.65      -2.43
Suba Indah Tbk                   SUBA        85.17      -9.18
Surya Dumai Industri Tbk         SUDI       105.06     -30.49
Unitex Tbk                       UNTX        29.08      -5.87

JAPAN

Hanaten Co., Ltd.                9870       167.79      -1.63
Mamiya-OP Co., Ltd.              7991       152.37     -67.11
Montecarlo Co. Ltd.              7569        66.29      -3.05
Nihon Seimitsu Sokki Co., Ltd.   7771        23.82      -1.10
Sumiya Co., Ltd.                 9939        89.32     -11.57
Tenryu Lumber Co., Ltd.          7904       187.75     -44.48
Tokai Aluminum Foil Co., Ltd.    5756       106.49     -12.55
Yakinikuya Sakai Co., Ltd.       7622        79.44     -11.14

MALAYSIA

Antah Holdings Bhd                ANT       241.10     -39.36
Ark Resources Berhad              ARK        25.91     -28.35
CHG Industries Bhd                CHG        25.95     -41.38
Cygal Bhd                         CYG        58.47     -69.79
Comsa Farms Bhd                   CFB        63.60      -5.00
Consolidated Farms Berhad       CFARM        36.32     -17.21
Emico Holdings Bhd                EMI        42.56      -1.92
Jin Lin Wood Industries Berhad    JLW        21.68      -1.74
Kig Glass Industrial Berhad       KIG        15.76     -24.61
Lankhorst Bhd                    LKHT        25.91     -28.35
Mentiga Corporation Berhad       MENT        22.13     -18.25
Metroplex Bhd                     MEX       323.51     -49.28
Mycom Bhd                         MYC       227.68    -114.64
Lityan Holdings Bhd               LIT        22.22     -19.11
Olympia Industries Bhd           OLYM       255.84    -227.85
Panglobal Bhd                     PGL       189.92     -50.36
Park May Bhd                      PMY        11.04     -13.58
PSC Industries Bhd                PSC        62.80    -116.18
Polymate Holdings Bhd            PYMT        64.73      -7.28
Setegap Berhad                    STG        19.92     -26.88
Tru-Tech Holdings Berhad          TRU        15.86     -16.71
Wembley Industries Holdings Bhd   WMY       111.72    -204.61

PHILIPPINES

APC Group Inc.                    APC        67.04    -163.14
Atlas Consolidated Mining and
   Development Corp.               AT        33.59     -57.17
Cyber Bay Corporation            CYBR        11.54     -58.06
East Asia Power Resources Corp.   PWR        92.55     -64.61
Fil-Estate Corporation             FC        33.30      -5.80
Filsyn Corporation                FYN        19.20      -8.83
Filsyn Corporation               FYNB        19.20      -8.83
Global Equities Inc.              GEI        24.18      -1.81
Gotesco Land, Inc.                 GO        17.34      -9.59
Gotesco Land, Inc.                GOB        17.34      -9.59
Prime Media Holdings Inc.        PRIM        11.12     -15.52
Prime Orion Philippines Inc.     POPI        98.36     -74.34
Swift Foods Inc.                  SFI        26.95      -8.23
Unioil Resources & Holdings
   Company Inc.                   UNI        10.64      -9.86
United Paragon Mining Corp.       UPM        21.19     -21.52
Universal Rightfield Property
   Holdings Inc.                   UP        45.12     -13.48
Uniwide Holdings Inc.              UW        61.45     -30.31
Victorias Milling Company Inc.    VMC       127.83     -32.21
Vitarich Corporation             VITA        75.04      -4.27

SINGAPORE

China Aviation Oil (Singapore)
   Corporation                    CAO       211.96    -390.07
Compact Metal Industries Ltd.     CMI        54.36     -25.64
Digiland Intl.                   DIGI        31.32     -11.94
Falmac Limited                    FAL        10.90      -0.73
Gul Technologies Singapore
   Limited                        GUL       152.80     -27.74
Informatics Holdings Ltd         INFO        22.30      -9.14
L&M Group of Companies            LNM        56.91     -10.59
Liang Huat Aluminium Ltd.         LHA        19.30     -76.43
Lindeteves-Jacoberg Limited        LJ       225.52     -53.23
LKN-Primefield Limited            LKN       150.70     -12.72
Mae Engineering Ltd               MAE        11.42      -7.79
PDC Corporation Limited           PDC         0.72     -12.07
Pacific Century Regional          PAC      1381.26    -107.11
See Hup Seng Ltd.                 SHS        17.36      -0.09

SOUTH KOREA

BHK Inc                          3990        24.36     -17.38
C & C Enterprise Co. Ltd.       38420        28.05     -14.50
Cenicone Co. Ltd.               56060        36.82      -1.46
Cheil Entech Co. Ltd.           53330        37.25      -0.31
Dewell Elecom Inc.              32590        10.93      -6.92
Everex Inc.                     47600        23.15      -5.10
EG Greentech Co.                55250       186.00      -1.50
EG Semicon Co. Ltd.             38720       166.70     -12.34
Inno Metal Inc.                 70080        25.61       1.41
KP&L Company Limited             9810        15.03      -3.81
Radix Co. Ltd.                  16160        53.78     -17.69
Quality & Tech                  15260        32.33      -1.14
Shinil Industrial Co., Ltd.      2700        41.51      -3.44
SungKwang Co., Ltd.             41140        19.06      -1.60
Tong Yang Major                  1520      2332.81     -86.95
TriGem Computer Inc             14900       629.32    -292.96

THAILAND

Bangkok Rubber PCL                BRC        70.19     -56.98
Bangkok Rubber PCL              BRC/F        70.19     -56.98
Central Paper Industry PCL      CPICO        40.41     -37.02
Central Paper Industry PCL    CPICO/F        40.41     -37.02
Circuit Electronic
   Industries PCL              CIRKIT        20.37     -64.80
Circuit Electronic
   Industries PCL            CIRKIT/F        20.37     -64.80
Daidomon Group Pcl              DAIDO        12.92      -8.51
Daidomon Group Pcl            DAIDO/F        12.92      -8.51
Datamat PCL                       DTM        17.55      -1.72
Datamat PCL                     DTM/F        17.55      -1.72
Diana Department Store Pcl      DIANA        12.71      -1.71
Diana Department Store Pcl    DIANA/F        12.71      -1.71
Everland Public Company Ltd      EVER        56.71    -311.47
Everland Public Company Ltd    EVER/F        39.12     -12.05
Hantex PCl                        HTX         7.51      -7.88
Hantex PCl                      HTX/F         7.51      -7.88
Kuang Pei San Food Products
   Public Co.                  POMPUI        12.51      -9.87
Sahamitr Pressure Container
   Public Co. Ltd.               SMPC        20.77     -28.13
Sri Thai Food & Beverage Public
   Company Ltd                    SRI        18.29     -43.37
Sri Thai Food -F                SRI/F        18.29     -43.37
Tanayong PCL                    TYONG       178.27    -734.30
Tanayong PCL -F               TYONG/F       178.27    -734.30
Thai-Denmark PCL                DMARK        21.37     -18.88
Thai-Denmark -F               DMARK/F        21.37     -18.88
Thai-Wah PCL                      TWC        91.56     -41.24
Thai-Wah PCL -F                 TWC/F        91.56     -41.24



                            *********

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.

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