TCRAP_Public/060918.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

           Monday, September 18, 2006, Vol. 9, No. 185

                            Headlines

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

45 PROJECT: Liquidator to Present Wind-Up Report
A.C.N. 090 053 259: Inability to Pay Debt Prompts Wind-Up
ABORIGINAL AIR: Stops Flights; To Be Placed in Liquidation
ABROQUEM PTY: Final Meeting Scheduled for October 3
ADSTEAM MARINE: To Hold Annual General Meeting on November 7

ARIUS PTY: Members to Hold Final Meeting on September 29
ARROW CARDINIA: Enters Voluntary Wind-Up
ARROW PRIVATE: Enters Voluntary Liquidation
AUSTRALIA ELECTRICAL: Names Robert Moodie as Liquidator
BEACHWATER LANDSCAPING: Enters Wind-Up Proceedings

BG FREIGHT: Shareholders Opt for Voluntary Liquidation
BOUGH DEVELOPMENTS: Court to Hear CIR's Liquidation Bid Nov. 2
CASHMERE HEIGHTS: Court Appoints Liquidators
CAIRNS SHELFCO: Final Meeting Slated on October 10
CAMBAY INVESTMENTS: Placed Under Voluntary Liquidation

CITY DAY: Final General Meeting Set on October 13
CLAREMONT HOME: Liquidates Business Operations
COMMERCIAL & RESIDENTIAL: To Declare Dividend on Nov. 12
CORAL SEA FUNDING: Members to Receive Liquidator's Report
CROSSOCEAN FORWARDING: Winds Up Business Operations

CUNNINGHAM BRICKLAYING: Members Decide to Close Business
DAVYHURST PROJECT: Members Agree on Liquidation
DELUXE PLUMBING: Members Opt to Shut Down Operations
EXPERT PROPERTY: Federal Court Appoints Liquidator
EXPORT PROJECT: Members and Creditors Meeting Set on October 13

FANZONE LIMITED: Creditors Must Prove Debts by Sept. 28
FORTESCUE METALS: G. Toll Gets Rid of 750,000 Shares for AU$6M
GEORGE WOODS: Undergoes Voluntary Liquidation
INTERACTIVE ADMINISTRATION: Enters Voluntary Liquidation
INTERTAX GROUP: Court Orders Scheme Shut Down

J KOHLER & SONS: Placed Under Members' Voluntary Liquidation
JAMES HARDIE: In Talks With Gov't for Possible FFA Amendments
JAMES HARDIE: Will Hold Annual General Meeting on September 19
JOHN PROPERTIES: Names Richardson as Liquidator
JOHNSTON MOTOR: Court Orders Liquidation

KOALA QUALITY: Schedules Final Meeting for October 13
LIMTAL CONTRACTING: Members Opt for Voluntary Liquidation
MARJ PTY: Members and Creditors to Receive Wind-Up Report
MELTEMI SERVICES: To Declare First and Final Dividend on Oct. 3
MIKE'S ELECTRICS: Members Agree to Wind Up Business

MOFIFU PTY: Final Meeting Set for October 13
ORIGIN PACIFIC: Takes Steps to Wind Up Freight Business
ORIGIN PACIFIC: M. Pero Withdraws Freight Takeover Offer
PAUL GROB: To Declare Dividend on September 25
PHOENIX CONSTRUCTIONS: Members Resolve to Wind Up Firm

PLM FORMWORK: Final Meeting Slated for October 13
RELIABLE REO: Members and Creditors to Receive Wind-Up Report
ROBERTSON ROAD: Faces Liquidation Proceedings
SABA PERSIAN: Appoints Joint Liquidators
SOUTHMET PTY: Members Decide to Cease Operations

SPARMANIA PTY: Final Meeting Scheduled for October 12
T J BLATCHFORD: Members Resolve to Wind Up Firm
T.Y.D.S.E. LIMITED: Names Nellies and Jenkins as Liquidators
VILLAGE ROADSHOW: Records AU35.1 Mln Loss for FY-Ended June 2006
VIXEN VESTMENTS: Appoints Official Liquidator

WARRINGTON BUILDERS: Liquidation Process Commenced
WEST PORT MACQUARIE: Liquidator to Give Wind-Up Report
ZINIFEX LIMITED: Annual General Meeting Set for November 27


C H I N A   &   H O N G  K O N G

AGILE PROPERTY: Moody's Keeps (P)Ba3 Corp. Family Rating
AGILE PROPERTY: S&P Keeps BB Long-Term Corp. Credit Rating
ANYPLACE WORKSHOP: Enters Wind-Up Proceedings
BANK OF CHINA: Fitch Keeps Individual Rating at D
BESTAR INTERNATIONAL: Appoints Official Liquidator

BESTNOON LIMITED: Members Opt for Liquidation
B&P INTERTRADE: Joint and Several Liquidators Named
BRILLIANT TECHNOLOGY: Court Orders Wind-Up
CHINA CONSTRUCTION: Fitch Affirms Bank's Individual D Rating
ETTORE NASSETTI: Court to Hear Wind-Up Petition

FRANKLIN TEMPLETON: Joint Liquidators Cease to Act for Company
GOLDEN HARVEST: Court Favors Wind-Up
HALOKING CONSTRUCTION: Court Issues Wind-Up Order
HIH MANAGEMENT: To Hold Annual Meetings on October 5
HING FUNG: Liquidation Bid Hearing Slated for September 20

HONGKONG HOTEL: Names Kit as Liquidator
HTL GARMENTS: Receives Wind-Up Order from Court
IAC BANK: Fitch Affirms Individual D/E Ratings
LITAK SHIPPING: Appoints Joint and Several Liquidators
MASSEY ENERGY: Earns US$3.2 Million in 2nd Quarter Ended June 30

MIRACLE TIME: Winds Up Business Operations
PRODUCT SAFETY (H.K.): Names A.G. Hung as Liquidator
PRODUCT SAFETY (INTERNATIONAL): Appoints New Liquidator
QING YUAN: Enters Wind-Up Proceedings
SANIC INTERNATIONAL: Liquidators Step Aside

SUPRA ENGINEERING: Court to Hear Liquidation Petition on Sept.27
VACATION TRAVEL: Court Issues Wind-Up Order
WAH SAN: Members Resolve to Wind Up Operations
YICK TUNG: Joint Liquidators Cease to Act for the Company
YIP FUNG: Faces Liquidation Proceedings

Y.S. KNITTING: Liquidation Process Initiated


I N D I A

CITY UNION BANK: Posts 25.14% Rise in Net Profit
CITY UNION BANK: Releases AGM Results
CITY UNION BANK: Targets INR10,000 Crore Turnover for 2007
FORD MOTOR: UAW Agrees to Voluntary, System-Wide Buyouts
HMT LIMITED: Net Loss Climbs 730.13% in June Quarter

IFCI LTD: Loss After Tax for June Quarter Improves 65%
IFCI LIMITED: Installs New Director
INDUSTRIAL DEVELOPMENT: CRISIL Rates INR30-B Flexi Bonds at AA+
INDUSTRIAL DEVELOPMENT: UWB Merger Has No Effect on Ratings
INDUSTRIAL DEVELOPMENT: Books INR15-Crore Profit in 1st Quarter

LLOYDS FINANCE: Posts INR5.93M Net Loss in Quarter Ended June 30
LLOYDS FINANCE: Members Pass All AGM Resolutions
ORIENTAL BANK: Posts INR940.20-Mil Net Profit for June Quarter
ORIENTAL BANK: In Talks for Strategic Association
UCO BANK: Posts INR61.5 Crore Net Profit in First Quarter

UCO BANK: Nearly 10,000 Staff Face Layoff After Automation


I N D O N E S I A

BANK MANDIRI: Increases Number of Shares Via MSOP
BANK NIAGA: Increases Shares Via Employee Stock Option Program
BANK RAKYAT: Increases Shares Via Stock Option Program
HM SAMPOERNA: Enters into Trademark License Pact with PM
PERUSAHAAN GAS: To Drill in Sumatra to Find Gas in Coal Seams

TELKOMSEL INDONESIA: Starts Offering 3G Service
* Budget Deficit Will Be 1%-2% of GDP, Finance Minister Says


J A P A N

ASAHI LIFE: S&P Changes Outlook on BB Ratings to Positive
DOANE PET: Posts US$5.4-Million Net Loss in April Quarter
KANA SOFTWARE: Files Registration Statement for Stock Sale
LIVEDOOR CO: Ex-CEO Says Horie Ordered Accounts Manipulation

LIVEDOOR: Prosecutors Demand US$2.5-Million Fine
LOPRO CORP: Fitch Affirms BB and B Currency Ratings
SOFTBANK CORP: To Sell Hi-tech Handsets to Boost Sales
* August Corporate Failures Rise 3.8% on Month, 2.7% on Year


K O R E A

BALLY TOTAL: Approves Indemnification Agreement with Directors
BALLY TOTAL: Shares Drop 17.5% After Posting Second Quarter Loss
* Two South Korean Cos. May Delist from U.S., Dow Jones Says
* 1st Half 2006 Disclosure Filings for Investment in Listed Cos.
* Insurance Cos. Improve Asset Quality in 2ndQ/FY2006, FSS Says


M A L A Y S I A

DAI HWA: Ends Reorganization Plan; Bourse Delists Securities
KIG GLASS: Credit Default Amount Hits MYR79 Million
JIN LIN: High Court Approves Restructuring Proposals
MALAYSIA AIRLINES: Swampillai Takes Helm of Vietnam Operations
MALAYSIA AIRLINES: Launches More Flights to Sabah and Sarawak

MALAYSIA AIRLINES: Foreign Carriers Doubt Ability to Meet Demand
POLYMATE HOLDINGS: Has Yet to Submit Fourth Quarter Report
PROTON HOLDINGS: Shareholders Refuse to Re-elect One Director
PROTON HOLDINGS: Subscribes Shares in Subsidiary Companies
TECHVENTURE BERHAD: Creditor Demands Payment from Unit

TEXCHEM RESOURCES: Incorporates Chinese Subsidiary


P H I L I P P I N E S

BANK OF CEBU: PDIC Pays PHP79.5 Million to 2,283 Claimants
METROPOLITAN BANK: To Raise PHP6.15 Billion from Share Sale
MIRANT CORP: Four Groups Vie to Acquire Philippine Assets


S I N G A P O R E

BIPL PTE: Creditors' Proofs of Debt Due on October 1
GOLDHILL MANAGEMENT: Creditors Must Submit Claims by Oct. 6
JAPAN TRAVEL: To Declare Dividend to Creditors
KUBOTA SUPPLIES: Creditors' Proofs of Claim Due on October 9
REALCENTRE PTE: Members' Final Meeting Set on September 23


T H A I L A N D

NAKORNTHAI STRIP: Plan Administrators Gain 53.65% Combined Stake
* Bad Loans Soar in 2006 Second Quarter, BOT Says

     - - - - - - - -

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

45 PROJECT: Liquidator to Present Wind-Up Report
------------------------------------------------
The members and creditors of 45 Project Management Pty Ltd will
convene at a final meeting on October 13, 2006, at 10:00 a.m.

During the meeting, Liquidator Richard Albarran will present
final accounts of the Company's wind-up operations.

The Troubled Company Reporter - Asia Pacific reported on
February 23, 2006, that 45 Project sought to liquidate its
assets due to its inability to pay debts within 12 months.

The Liquidator can be reached at:

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


A.C.N. 090 053 259: Inability to Pay Debt Prompts Wind-Up
---------------------------------------------------------
At a meeting of members and creditors of A.C.N. 090 053 259 Pty
Ltd held on September 1, 2006, it was decided that a voluntary
wind-up of the Company's operations is appropriate and necessary
since it is unable to pay its debts when they fall due.

Subsequently, Richard Albarran was appointed as liquidator for
the company.

The Liquidator can be reached at:

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


ABORIGINAL AIR: Stops Flights; To Be Placed in Liquidation
----------------------------------------------------------
Aboriginal Air Services will close its doors for good after less
than a fortnight under voluntary administration, ABC News Online
reports.

According to ABC News, administrator Austin Taylor does not
blame any government for not bailing out the business.
"Governments with an interest in the airline have been helpful
since being made aware of the issue," the report cites Mr.
Taylor as saying.

The Troubled Company Reporter - Asia Pacific reported on
September 8, 2006, that the South Australian Government has
accused Mr. Taylor of making "alarmist" comments.  Mr. Taylor
has accused the South Australian Government of ignoring an
unfolding medical crisis.

The TCR-AP noted that the airline operates patient transfers
from remote communities and Mr. Taylor says people could die as
a direct result of the airline's liquidation.

Flights in South Australia, Coober Pedy, Indulkana, and
Ernabella were understood to have ended as of September 14,
2006, Mr. Taylor says.

"This covers freight, postage. . .these are the lifelines to
these communities," Mr. Taylor notes.  "Not much goes in on
buses or trucks.  Some of it does, but most of it goes in on
aircrafts because they are just so remote."

Flights to remote communities across four states will stop after
September 17, 2006, ABC News notes.

The Australian says that the airline's assets will be auctioned.

"[Aboriginal Air's] ultimate fate will be decided by a second
meeting of creditors on September 25, at which it is anticipated
the airline will be placed into liquidation," The Daily
Telegraph quotes Mr. Taylor.

                     About Aboriginal Air

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

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

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

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

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

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

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

The Troubled Company Reporter - Asia Pacific reported on
September 6, 2006, that the board of directors of Aboriginal Air
Services voted to bring in an administrator.  Aboriginal Air has
never made a profit in its 20-year history and has been propped
up by its shareholders -- four Aboriginal groups from central
Australia -- with large management fees, the TCR-AP said, citing
a report from The Australian.


ABROQUEM PTY: Final Meeting Scheduled for October 3
---------------------------------------------------
A final meeting of the members of Abroquem Pty Ltd, which is in
liquidation, will be held on October 3, 2006, at 9:00 a.m.

The Liquidator can be reached at:

         Stephen Neville Hall
         Forsyths
         127 Marius Street
         Tamworth, New South Wales 2340
         Australia
         Telephone:(02) 6766 5166


ADSTEAM MARINE: To Hold Annual General Meeting on November 7
------------------------------------------------------------
Adsteam Marine Limited's Annual General Meeting will be held on
November 7, 2006, at the Australian National Maritime Museum,
Darling Harbour.

                          About Adsteam

Headquartered in New South Wales, Australia, Australia Adsteam
Marine Ltd -- http://www.adsteam.com.au/-- currently has a
fleet of more than 200 vessels and also offers other maritime
services such as a shipping agency, fuel distribution and
salvage.

The Company had undertaken steps in a plan to divest non-core
businesses since May 2003 as part of its business transformation
program and has raised money to support its rescue plan designed
to trim down debts and repay borrowings.  Adsteam's debt was
estimated to be AU$360 million.  As of June 30, 2005, the
Company reported an "improved balance sheet" as it was able to
reduce its debt to AU$302 million, achieved through the sale of
non-core assets, improved earnings, improved debtor management
and a tight dividend policy.


ARIUS PTY: Members to Hold Final Meeting on September 29
--------------------------------------------------------
Pursuant to Section 509 of the Corporations Law, members of
Arius Pty Ltd will hold a final meeting on Sept. 29, 2006, at
9:00 a.m.

At the meeting, Liquidator William Inglis will report on the
company's wind-up proceedings and property disposal.

According to the Troubled Company Reporter - Asia Pacific,
members of Arius decided to voluntarily wind up its business
operations on June 8, 2006.

The Liquidator can be reached at:

         William Inglis
         Chartered Accountant
         Suite 7, Newport Beach Professional Centre
         9 Foamcrest Avenue
         Newport, New South Wales 2106
         Australia


ARROW CARDINIA: Enters Voluntary Wind-Up
----------------------------------------
At a general meeting on August 31, 2006, the members of Arrow
Cardinia Pty Ltd decided to voluntarily wind up the company's
operations.

The Liquidator can be reached at:

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


ARROW PRIVATE: Enters Voluntary Liquidation
-------------------------------------------
At a general meeting of the members of Arrow Private Equity
Management Pty Ltd on August 31, 2006, it was agreed that a
voluntary wind-up of the Company is appropriate and necessary.

The Liquidator can be reached at:

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


AUSTRALIA ELECTRICAL: Names Robert Moodie as Liquidator
-------------------------------------------------------
Members of Australia Electrical Electronics Pty Ltd convened on
August 30, 2006, and agreed to liquidate the Company's business.

Robert Moodie was then appointed as liquidator.

The Liquidator can be reached at:

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


BEACHWATER LANDSCAPING: Enters Wind-Up Proceedings
--------------------------------------------------
The High Court of Wellington appointed on August 21, 2006, John
Howard Ross Fisk and Richard Dale Agnew as joint and several
liquidators of Beachwater Landscaping & Supplies Ltd.

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

The Troubled Company Reporter - Asia Pacific reported that the
Commission of Inland Revenue filed a wind-up petition against
the company on June 23, 2006.  The petition was heard on August
21, 2006.

The Joint Liquidators can be reached at:

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


BG FREIGHT: Shareholders Opt for Voluntary Liquidation
------------------------------------------------------
Shareholders of BG Freight Haulage Ltd resolved on August 11,
2006, to put the company under voluntary liquidation.

In this regard, Warwyck James Dewe was appointed as liquidator.

The Liquidator can be reached at:

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


BOUGH DEVELOPMENTS: Court to Hear CIR's Liquidation Bid Nov. 2
--------------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against Bough Developments Ltd on November 2, 2006, at 10:45
a.m.

A petition was filed by the Commissioner of Inland Revenue on
July 27, 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


CASHMERE HEIGHTS: Court Appoints Liquidators
--------------------------------------------
On August 21, 2006, the High Court at Christchurch issued a
liquidation order against Cashmere Heights Group Ltd.

In this regard, Iain Andrew Nellies and Wayne John Deuchrass
were appointed joint and several liquidators.

According to the Troubled Company Reporter - Asia Pacific, the
Commissioner of Inland Revenue filed the petition with the Court
on June 29, 2006.

The Joint Liquidators can be reached at:

         Iain Andrew Nellies
         Wayne John Deuchrass
         Insolvency Management Limited
         Level Four, 728 Colombo Street (P.O. Box 13-401)
         Christchurch, New Zealand


CAIRNS SHELFCO: Final Meeting Slated on October 10
--------------------------------------------------
Pursuant to Section 509 of the Corporations Act, a final meeting
of the members and creditors of Cairns Shelfco No. 16 Pty Ltd,
which is in liquidation, will be held on October 10, 2006, at
11:00 a.m., at the offices of KordaMentha, Level 5 Chifley
Tower, 2 Chifley Square, in Sydney, New South Wales.

During the meeting, Liquidator Martin Madden will present his
report on the Company's wind-up and property disposal.


CAMBAY INVESTMENTS: Placed Under Voluntary Liquidation
------------------------------------------------------
Members of Cambay Investments Pty Ltd met on August 22, 2006,
and agreed to voluntarily wind up the company's operations.

In this regard, Peter Ngan was appointed as liquidator.

The Liquidator can be reached at:

         Peter Ngan
         Ngan & Co
         Chartered Accountants
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia


CITY DAY: Final General Meeting Set on October 13
-------------------------------------------------
The members and creditors of City Day & Night Security Pty Ltd
will hold a final meeting on October 13, 2006, at 9:30 a.m., for
them to get an account of the manner of the Company's wind-up
and property disposal from liquidator Thomas Javorsky.

As previously reported in the Troubled Company Reporter - Asia
Pacific, members of the Company resolved to voluntarily wind up
the Company's operations on May 12, 2005.

The Liquidator can be reached at:

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


CLAREMONT HOME: Liquidates Business Operations
----------------------------------------------
At a general meeting on August 31, 2006, the members of
Claremont Home Units Pty Ltd passed a special resolution to
voluntarily wind up the Company's business operations.

In this regard, Ian Thomas Stephenson, of Ian Stephenson &
Partners, was named liquidator for the Company.

The Liquidator can be reached at:

         Ian Thomas Stephenson
         Ian Stephenson & Partners
         Chartered Accountants
         200 Pacific Highway
         Crows Nest, New South Wales 2065
         Australia
         Telephone:(02) 9922 2833


COMMERCIAL & RESIDENTIAL: To Declare Dividend on Nov. 12
--------------------------------------------------------
Commercial & Residential Waterproofing, which is subject to a
deed of company arrangement, will declare its first and final
dividend to unsecured creditors on November 12, 2006.

In this regard, creditors are required to file their proofs of
claim by October 3, 2006, for them to share in the dividend
distribution.

The Deed Administrator can be reached at:

         Geoffrey Mcdonald
         Hall Chadwick
         Level 29, 31 Market Street
         Sydney, New South Wales 2000
         Australia


CORAL SEA FUNDING: Members to Receive Liquidator's Report
---------------------------------------------------------
The members of Coral Sea Funding Pty Ltd, which is in
liquidation, will hold a final meeting on October 10, 2006, at
10:00 a.m.

At the meeting, Liquidators Christopher R. Campbell and Peter G.
Yates will present a report on the Company's wind-up and
disposal of properties.

The Liquidators can be reached at:

         Christopher R. Campbell
         Peter G. Yates
         Deloitte Touche Tohmatsu
         Grosvenor Place, 225 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9322 7000


CROSSOCEAN FORWARDING: Winds Up Business Operations
---------------------------------------------------
At a general meeting on September 1, 2006, members of Crossocean
Forwarding Services Pty Ltd agreed that the Company must
voluntarily commence a wind-up of its operations.

Bryan Collis was then named liquidator.

The Liquidator can be reached at:

         Bryan Collis
         O'Brien Palmer
         Level 4, 23-25 Hunter Street
         Sydney, New South Wales 2000
         Australia


CUNNINGHAM BRICKLAYING: Members Decide to Close Business
--------------------------------------------------------
At a general meeting on August 28, 2006, the members of
Cunningham Bricklaying Pty Ltd decided to voluntarily wind up
the Company's business operations.

Peter Ngan's appointment as liquidator was then confirmed at a
creditors meeting held subsequently that day, pursuant to
Section 497(1) of the Corporations Act 2001 .

The Liquidator can be reached at:

         Peter Ngan
         Ngan & Co
         Chartered Accountants
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia


DAVYHURST PROJECT: Members Agree on Liquidation
-----------------------------------------------
The members of Davyhurst Project Pty Ltd held a general meeting
on August 31, 2006, and agreed to shut down the Company's
business operations.

The Liquidator can be reached at:

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


DELUXE PLUMBING: Members Opt to Shut Down Operations
----------------------------------------------------
At a separate meeting of the members and creditors of Deluxe
Plumbing Services Pty Ltd on August 25, 2006, they decided to
voluntarily wind up the Company's operations and appoint Ozem
Kassem as liquidator.

The Liquidator can be reached at:

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


EXPERT PROPERTY: Federal Court Appoints Liquidator
--------------------------------------------------
On August 30, 2006, the Federal Court of Australia, New South
Wales District Registry, entered an order appointing Christopher
J. Palmer as official liquidator of Expert Property Maintenance
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


EXPORT PROJECT: Members and Creditors Meeting Set on October 13
---------------------------------------------------------------
In Accordance with Section 509(2) of the Corporations Act 2001,
members and creditors of Export Project Finance Pty Ltd, which
is in liquidation, will hold a final meeting on October 13,
2006, at 10:00 a.m.

At the meeting, Liquidator P. Ngan will present accounts of the
company's wind-up proceeding and property disposal exercises.

The Liquidator can be reached at:

         P. Ngan
         Ngan & Co
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia


FANZONE LIMITED: Creditors Must Prove Debts by Sept. 28
-------------------------------------------------------
Joint and Several Liquidators Gerald Stanley Rea and Paul Graham
Sargison require the creditors of Fanzone Limited to file their
proofs of debt on September 28, 2006.

Failure to present proofs of debt 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


FORTESCUE METALS: G. Toll Gets Rid of 750,000 Shares for AU$6M
--------------------------------------------------------------
Gordon Toll, who shares the chairmanship at Fortescue Metals
Limited with Andrew Forrest, dumped 750,000 shares in a number
of on-market trades beginning on September 8, 2006, The
Australian reports.

According to the report, the sale saw Mr. Toll pocket
AU$6.31 million through an average share price of AU$8.41.

The Australian, however, notes that Mr. Toll did not explain his
move to dump his holdings in Fortescue, which reportedly left
other shareholders confused as to his relationship with
Fortescue.

The Australian relates that the Fortescue shares were held in a
company called Coffee House Group, in which Mr. Toll holds a 50%
interest.  A search of the Australian Securities and Investments
Commission database showed that the company is not registered in
Australia, The Australian reveals.

The paper cites Fortescue director of operations, Graeme Rowley,
as saying that the board had no warning that Mr. Toll would be
selling his shares.  The shares were bought many years ago, well
before they reached heights of AU$10 a piece, Mr. Rowley
disclosed.

"Mr. Toll is still the chairman of the company and we have had
no indication to confirm otherwise," Mr. Rowley said.

According to The Australian, before the share-dump, Mr. Toll was
Fortescue's eighth-biggest shareholder.

                       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.


GEORGE WOODS: Undergoes Voluntary Liquidation
---------------------------------------------
At a general meeting held on September 1, 2006, the members of
George Woods Investments Pty Ltd resolved to voluntarily
liquidate the company's business and appoint Ian Douglas Haigh
as liquidator.

The Liquidator can be reached at:

         Ian Douglas Haigh
         Level 19, 207 Kent Street
         Sydney, New South Wales 2000
         Australia


INTERACTIVE ADMINISTRATION: Enters Voluntary Liquidation
--------------------------------------------------------
Members of Interactive Administration Services Pty Ltd convened
on August 29, 2006, and agreed that the Company should wind up
its operations voluntarily.

Peter Charles Hicks was subsequently appointed as liquidator.

The Liquidator can be reached at:

         Peter Charles Hicks
         Forsythes Chartered Accountants
         Level 5, 175 Scott Street
         Newcastle


INTERTAX GROUP: Court Orders Scheme Shut Down
---------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 29, 2006, the Australian Securities and Investments
Commission and the Supreme Court of Queensland at Brisbane
declared that David Jeremiah Palmer and companies related to him
-- the Intertax Group -- operated an unregistered managed
investments scheme in breach of the Corporations Act.

The Honorable Justice Fryberg also ordered the appointment of
Gerald Collins and Matthew Joiner, of Jefferson Collins Joiner
Chartered Accountants, as joint and several liquidators to wind
up the members of the Intertax Group and the Scheme, the TCR-AP
said.

In an update, the Supreme Court of Queensland ordered Maxwell
Donald Collins, of Sanctuary Cove, Queensland, and Philip James
Trudgeon, of Cornubia, Queensland, to stop operating an
unregistered managed investment scheme.

The Court granted permanent injunctions against Messrs. Collins
and Trudgeon restraining them from further promoting or
operating the unregistered managed investments scheme conducted
by the 17 companies known as the Intertax Group.

The orders also restrain Messrs. Collins and Trudgeon from
further promoting or operating any other managed investment
scheme that is required to be registered under the Corporations
Act.

Justice Fryberg was satisfied that Messrs. Collins' and
Trudgeon's involvement in the operation of the scheme
constituted a contravention of the Act and that they had been
knowingly involved in the unlawful conduct of the scheme.

"We have taken action to close down this scheme, which was not
registered with ASIC, to protect investors.  It is a timely
reminder that people should only accept financial or investment
advice from people who are properly licensed and only invest in
schemes that comply with the law," Jan Redfern, the ASIC's
Executive Director of Enforcement says.

The ASIC's investigation in relation to the conduct of the
scheme revealed that:

   * prior to November 2005, a company, of which Messrs. Collins
     and Trudgeon are directors, called Lifeland Pty Ltd had
     been involved in property development and had borrowed
     money from the Intertax Group;

   * in November 2005, Lifeland, Messrs. Collins and Trudgeon
     entered into a Deed where they acknowledged they were
     indebted to Intertax Holdings Pty Ltd for AU$2.1 million
     with ongoing accruing interest;

   * in November 2005, Messrs. Collins and Trudgeon, and David
     Jeremiah Palmer discussed a proposal on behalf of Intertax
     Holdings and other related entities, which lead to Messrs.
     Collins and Trudgeon and two companies, Lifeland
     Developments Pty Ltd and Park Developments Pty Ltd entering
     into management agreements whereby Lifeland and Park
     Developments would undertake property development projects
     with the Intertax Group;

   * the sole director of Lifeland Developments was Mr. Trudgeon
     and Park Developments sole director was Mr. Collins; and

   * between November 2005 and May 2006, Messrs. Collins and
     Trudgeon through Park Developments and Lifeland, issued
     unit certificates in trusts which they had purportedly
     established, to investors in the scheme.

The Court also ordered that Messrs. Collins and Trudgeon to
provide assistance to the liquidators of Lifeland Developments
and Park Developments as might be reasonably requested by them
in the winding up of the scheme, provided they are not required
to answer any question that may tend to incriminate them in any
way.

Messrs. Collins and Trudgeon were ordered to pay the ASIC's
costs of the hearing on September 12, 2006.

                      About Intertax Group

Intertax Group -- http://www.intertax.com.au/-- headquartered
in Springwood, Queensland, is a family of companies that offers
a range of services for growth, pleasure, and profit in all
areas of life.

The ASIC sought and obtained the approval of the Supreme Court
of Queensland to wind up an unregistered investment scheme being
operated by the Intertax Group.

Investigative accountants were appointed to prepare a report for
the Court in relation to matters concerning the affairs of the
Intertax Group.  The investigative accountants concluded that:

   * the scheme was insolvent;

   * the investors in the scheme were owed in the order of AU$14
     million;

   * there were grounds to suspect that David Jeremiah Palmer
     and the Intertax Group had contravened the Act and ASIC
     Act; and

   * the liabilities of the scheme exceeded its assets by AU$9.7
     million.

The Court also declared that Mr. Palmer and the Intertax Group
had operated an unregistered managed investments scheme in
breach of the Act and ordered that Mr. Palmer be permanently
restrained from doing so.


J KOHLER & SONS: Placed Under Members' Voluntary Liquidation
------------------------------------------------------------
On August 29, 2006, the members of J Kohler & Sons Pty Ltd
convened at a general meeting and agreed to voluntarily
liquidate the Company's business.

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


JAMES HARDIE: In Talks With Gov't for Possible FFA Amendments
-------------------------------------------------------------
James Hardie Industries Limited discloses that it is currently
in discussions with the NSW Government in relation to potential
and limited amendments to the Final Funding Agreement and
related agreements to achieve a satisfactory outcome for all
stakeholders which would enable the substantive obligations
agreed in the FFA to be implemented in full.  James Hardie says
progress is being made towards achieving this outcome.

The company has also held meetings with the Australian Taxation
Office to seek fresh binding rulings in relation to the tax
treatment of the SPF, once the proposed amendments have been
agreed.  The ATO has been cooperative and has indicated that it
will treat the determination of the tax treatment as a priority.

James Hardie notes there is goodwill among all stakeholders to
remove any remaining barriers to the implementation of the FFA.

On the assumption that a satisfactory outcome is achieved with
the NSW Government and the ATO confirms the parties'
understanding of the tax outcomes, James Hardie will hold an
extraordinary general meeting of shareholders within 10 weeks of
an agreement being reached.

According to James Hardie, work to satisfy the other conditions
precedent to the FFA is well advanced, including:

   (a) the preparation of an independent expert's report;

   (b) an Explanatory Memorandum for shareholders;

   (c) discussions with lenders and an updated actuarial report
       by KPMG Actuaries Pty Limited.

James Hardie also reveals that there are indications the Medical
Research and Compensation Foundation currently has sufficient
funds to pay asbestos claims until early 2007.

James Hardie relates that it has begun investigating options for
providing interim assistance to the MRCF to obtain funding if
negotiations with the NSW Government and ATO are more protracted
than is currently expected and, as a result, the existing
funding available to the MRCF is exhausted before the FFA is
implemented in full.

                       About James Hardie

James Hardie Industries Limited -- http://www.jameshardie.com/-
- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives.  On July 2, 1998, the then
public company announced a plan of reorganization and capital
restructuring.  James Hardie N.V. was incorporated in August
1998 as an intermediary holding company, with all of its common
stock owned by indirect subsidiaries of JHIL.  Effective as of
November 1998, JHIL contributed its fiber cement businesses, its
United States gypsum wallboard business, its Australian and New
Zealand building systems businesses and its Australian windows
business to JHNV and its subsidiaries.

On July 24, 2001, JHIL announced a further plan of
reorganization and capital restructuring, which reorganization
was completed on October 19, 2001.  In connection with the 2001
Reorganization, James Hardie Industries N.V., formerly RCI
Netherlands Holdings B.V., issued common shares represented by
CHESS Units of Foreign Securities on a one for one basis to
existing JHIL shareholders in exchange for their shares such
that JHINV became the new ultimate holding company for JHIL and
JHNV.  Following the 2001 Reorganization, JHINV controls the
same assets and liabilities as JHIL controlled immediately prior
to the 2001 Reorganization.

The Company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL.  In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims.  The Foundation has
warned that it could run out of money within five years.  The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund.  James Hardie was later accused of topping
up the dwindling asbestos fund it established.

By 2004, James Hardie's former asbestos manufacturing
subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd
-- are three of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted  US$6,000,000,000 future
asbestos liabilities in Australia.  Although James Hardie
stopped making asbestos products in 1987, the average 35-year
latency of mesothelioma, an asbestos-related disease, means
asbestos compensation funds will be needed until mid-century. In
a 2005 report by a company-hired actuary from KPMG, it was
predicted that 4,915 Australians would contract mesothelioma
from exposure to Hardie products in the coming decades.  When
less serious forms of asbestos-related disease are included,
James Hardie should expect to compensate 8,725 victims.

On December 1, 2005, the Company announced that the NSW
Government and a wholly owned Australian subsidiary of the
Company -- LGTDD Pty Ltd -- had entered into a conditional
agreement to provide long-term funding to a special purpose fund
that will provide compensation for Australian asbestos-related
personal injury claims against certain former James Hardie
asbestos companies.  The amount of the asbestos provision of
AU$1 billion, at March 31, 2006, is the Company's best estimate
of the probable outcome, which estimate includes an actuarial
calculation prepared by KPMG Actuaries Pty Ltd of the projected
future cash outflows, undiscounted and uninflated, and the
anticipated tax deduction arising from Australian legislation
which came into force on April 6, 2006.


JAMES HARDIE: Will Hold Annual General Meeting on September 19
--------------------------------------------------------------
James Hardie Industries NV will hold an Annual General Meeting
on September 19, 2006, at 10:00 a.m., in Westin Sydney, 1 Martin
Place, in Sydney, New South Wales.

This is the company's Australian information meeting.

                       About James Hardie

James Hardie Industries Limited -- http://www.jameshardie.com/-
- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives.  On July 2, 1998, the then
public company announced a plan of reorganization and capital
restructuring.  James Hardie N.V. was incorporated in August
1998 as an intermediary holding company, with all of its common
stock owned by indirect subsidiaries of JHIL.  Effective as of
November 1998, JHIL contributed its fiber cement businesses, its
United States gypsum wallboard business, its Australian and New
Zealand building systems businesses and its Australian windows
business to JHNV and its subsidiaries.

On July 24, 2001, JHIL announced a further plan of
reorganization and capital restructuring, which reorganization
was completed on October 19, 2001.  In connection with the 2001
Reorganization, James Hardie Industries N.V., formerly RCI
Netherlands Holdings B.V., issued common shares represented by
CHESS Units of Foreign Securities on a one for one basis to
existing JHIL shareholders in exchange for their shares such
that JHINV became the new ultimate holding company for JHIL and
JHNV.  Following the 2001 Reorganization, JHINV controls the
same assets and liabilities as JHIL controlled immediately prior
to the 2001 Reorganization.

The Company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL.  In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims.  The Foundation has
warned that it could run out of money within five years.  The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund.  James Hardie was later accused of topping
up the dwindling asbestos fund it established.

By 2004, James Hardie's former asbestos manufacturing
subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd
-- are three of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted  US$6,000,000,000 future
asbestos liabilities in Australia.  Although James Hardie
stopped making asbestos products in 1987, the average 35-year
latency of mesothelioma, an asbestos-related disease, means
asbestos compensation funds will be needed until mid-century. In
a 2005 report by a company-hired actuary from KPMG, it was
predicted that 4,915 Australians would contract mesothelioma
from exposure to Hardie products in the coming decades.  When
less serious forms of asbestos-related disease are included,
James Hardie should expect to compensate 8,725 victims.

On December 1, 2005, the Company announced that the NSW
Government and a wholly owned Australian subsidiary of the
Company -- LGTDD Pty Ltd -- had entered into a conditional
agreement to provide long-term funding to a special purpose fund
that will provide compensation for Australian asbestos-related
personal injury claims against certain former James Hardie
asbestos companies.  The amount of the asbestos provision of
AU$1 billion, at March 31, 2006, is the Company's best estimate
of the probable outcome, which estimate includes an actuarial
calculation prepared by KPMG Actuaries Pty Ltd of the projected
future cash outflows, undiscounted and uninflated, and the
anticipated tax deduction arising from Australian legislation
which came into force on April 6, 2006.


JOHN PROPERTIES: Names Richardson as Liquidator
-----------------------------------------------
On August 18, 2006, shareholders of John Properties Ltd
appointed Anthony Murray Richardson as liquidator.

In this regard, Mr. Richardson will be distributing the
company's dividend to creditors, excluding those who were unable
to prove their claims by September 15, 2006.

The Liquidator can be reached at:

         Anthony Richardson
         Capital Accounting Associates Limited
         Level Two, Waterside House
         220 Willis Street, Wellington
         New Zealand
         P.O. Box 6696, Marion Square
         Wellington
         Telephone: (04) 385 4146
         Facsimile: (04) 385 4246
         e-mail: julie@tonyrichardson.biz


JOHNSTON MOTOR: Court Orders Liquidation
----------------------------------------
The High Court at Christchurch has ordered Johnston Motor
Company Ltd to liquidate its business.

In this regard, Iain Andrew Nellies and Wayne John Deuchrass
were appointed as joint and several liquidators.

According to the Troubled Company Reporter - Asia Pacific, Fair
City Finance Ltd filed the liquidation petition with the Court
on July 25, 2006.

The Joint and Several Liquidators can be reached at:

         Iain Andrew Nellies
         Wayne John Deuchrass
         c/o Insolvency Management Limited
         Level Four, 728 Colombo Street (P.O. Box 13-401)
         Christchurch, New Zealand


KOALA QUALITY: Schedules Final Meeting for October 13
-----------------------------------------------------
Members and creditors of Koala Quality Produce Pty Ltd, which is
in liquidation, will hold a final meeting on October 13, 2006,
at 10:15 a.m., for them to receive Liquidator Peter Ngan's final
account showing how the Company was wound up and how its
property was disposed of.

The Liquidator can be reached at:

         Peter Ngan
         Ngan & Co
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia


LIMTAL CONTRACTING: Members Opt for Voluntary Liquidation
-----------------------------------------------------------
The members of Limtal Contracting Pty Ltd met on September 1,
2006, and passed a special resolution to voluntarily liquidate
the company's business.

Subsequently, Brent Kijurina, of Smith Hancock, was appointed as
liquidator at the creditors meeting held that same day.

The Liquidator can be reached at:

         B. Kijurina
         Smith Hancock, Chartered Accountants
         Level 4, 88 Phillip Street
         Parramatta, New South Wales 2150
         Australia


MARJ PTY: Members and Creditors to Receive Wind-Up Report
---------------------------------------------------------
The members and creditors of Marj Pty Ltd, which is in
liquidation, will hold a final meeting on October 3, 2006, at
11:00 a.m.

During the meeting, Liquidator Stephen Jay will present a report
regarding the Company's wind-up and property disposal.

The Liquidators can be reached at:

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


MELTEMI SERVICES: To Declare First and Final Dividend on Oct. 3
---------------------------------------------------------------
Meltemi Services Pty Ltd, which is in liquidation, notifies
parties-in-interests of its intention to declare a first and
final dividend on October 3, 2006.

Unsecured creditors are required to file their proofs of claim
by October 2, 2006.  Failure to file POCs will exclude creditors
from any dividend distribution.

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


MIKE'S ELECTRICS: Members Agree to Wind Up Business
---------------------------------------------------
The members of Mike's Electrics Pty Ltd convened on August 30,
2006, and agreed to wind up the Company's business operations.

Subsequently, Michael John Morris Smith, of Smith Hancock, was
appointed as liquidator at a creditors meeting held that same
day.

The Liquidator can be reached at:

         Michael John Morris Smith
         Smith Hancock, Chartered Accountants
         Level 4, 88 Phillip Street
         Parramatta, New South Wales 2150
         Australia


MOFIFU PTY: Final Meeting Set for October 13
--------------------------------------------
Pursuant to Section 509 of the Corporations Act 2001, the
members of Mofifu Pty Ltd, which is in liquidation, will hold a
final meeting on October 13, 2006, at 10:30 a.m.

At the meeting, Liquidator Richard Albarran will present
accounts of the company's wind-up proceedings and property
disposal.

The Liquidator can be reached at:

         Richard Albarran
         Hall Chadwick
         Level 29, 31 Market Street
         Sydney, New South Wales 2000


ORIGIN PACIFIC: Takes Steps to Wind Up Freight Business
-------------------------------------------------------
Origin Pacific Airways disclosed that it had attempted but
failed to find a buyer for its freight business.   Thus, it is
now taking steps to wind up the company, the New Zealand Press
Association reports.

Origin Pacific notes that it cannot make further comment at this
stage.

According to the NZPA, several parties have checked the books
and two had placed conditional offers, but the parties were
unable to negotiate mutually satisfactory terms in the time
available.

The Troubled Company Reporter - Asia Pacific noted that on
August 31, 2006, Origin Pacific advised that it would resume an
air charter service, in addition to its freight service, as the
division had operated "significantly profitably".

Stuff.co.nz notes that the freight business largely consisted of
the rights to the cargo space on Qantas domestic Boeing 737
services and a nightly Qantas 767 freighter between Auckland and
Christchurch.

                      About Origin Pacific

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

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

As reported in the Troubled Company Reporter - Asia Pacific on
August 11, 2006, Origin Pacific "has lost its struggle to
survive" and has suspended operations, putting most of its 260
staff out of work immediately.  Thus, Origin Pacific halted its
passenger services on August 10, 2006, after it was unable to
secure the capital urgently needed to reduce its debt.

Origin Pacific had earlier indicated hopes of continuing its
freight operations.


ORIGIN PACIFIC: M. Pero Withdraws Freight Takeover Offer
--------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 15, 2006, mortgage broking millionaire Mike Pero, who
bought a 25% stake Origin Pacific Airways and took a seat on its
board of directors, was prepared to take over Origin Pacific's
freight business, and to pay the cost to keep it operating in
the short term.

A report from The Nelson Mail relates that Mr. Pero has pulled
the plug on purchasing Origin's freight business, blaming an
unfair bidding process.  Mr. Pero believed relationships and
contracts with Origin's freight suppliers were not secure, the
report adds.

The report further says Mr. Pero was one of several parties
doing due diligence on Origin's freight business it.

According to Mr. Pero, the process was taking longer than it
should have.  He asserted that he was disadvantaged because of
favoritism toward other parties interested in the freight
division, stuff.co.nz relates.

However, The Nelson Mail cites an Origin spokesman, as saying
Mr. Pero was subject to the same process of due diligence as
other parties.  Due diligence is still continuing and offers,
including Mr. Pero's, remained on the table, the spokesman said.

The spokesman noted that Origin is bound to accept the best
offer and hoped to have a result in the next few days, The
Nelson Mail says.

                      About Origin Pacific

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

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

As reported in the Troubled Company Reporter - Asia Pacific on
August 11, 2006, Origin Pacific "has lost its struggle to
survive" and has suspended operations, putting most of its 260
staff out of work immediately.  Thus, Origin Pacific halted its
passenger services on August 10, 2006, after it was unable to
secure the capital urgently needed to reduce its debt.

Origin Pacific, however, indicated hopes of continuing its
freight operations.


PAUL GROB: To Declare Dividend on September 25
----------------------------------------------
Paul Grob Bricklaying Pty Ltd, which is in liquidation, will
declare its first and final dividend on September 25, 2006.

Creditors who are not able to prove their claims by Sept. 24,
2006, will be excluded from sharing in any distribution the
Company will make.

The Liquidator can be reached at:

         Peter Hicks
         Forsythes
         Level 5, 175 Scott Street
         Newcastle, New South Wales 2300
         Australia


PHOENIX CONSTRUCTIONS: Members Resolve to Wind Up Firm
------------------------------------------------------
After a general meeting on August 29, 2006, members of Phoenix
Constructions (NSW) Pty Ltd decided to voluntarily wind up the
Company's operations.

Subsequently, Peter Charles Hicks was appointed as liquidator.

The Liquidator can be reached at:

         Peter Charles Hicks
         Forsythes Chartered Accountants
         Level 5, 175 Scott Street
         Newcastle


PLM FORMWORK: Final Meeting Slated for October 13
-------------------------------------------------
A final meeting of the creditors and members of PLM Formwork Pty
Ltd, which is in liquidation, will be held on October 13, 2006,
at 9:00 a.m.

At the meeting, Thomas Javorsky will present a report regarding
the Company's wind-up and property disposal activities.

The Liquidator can be reached at:

         Thomas Javorsky
         c/o Jones Condon
         Chartered Accountants
         Level 13, 189 Kent Street
         Sydney, New South Wales
         Australia
         Telephone:(02) 9251 5222


RELIABLE REO: Members and Creditors to Receive Wind-Up Report
-------------------------------------------------------------
Members and creditors of Reliable Reo Pty Ltd, which is in
liquidation, will hold a final meeting on October 13, 2006, at
11:30 a.m.

At the meeting, Liquidator Richard Albarran will present his
report on the Company's wind-up and property disposal.

The Liquidator can be reached at:

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


ROBERTSON ROAD: Faces Liquidation Proceedings
---------------------------------------------
A petition to liquidate Robertson Road Development Co Ltd will
be heard before the High Court of Auckland on September 21,
2006, at 10:00 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court 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


SABA PERSIAN: Appoints Joint Liquidators
----------------------------------------
Shareholders of Saba Persian Cafe Ltd resolved on August 18,
2006 to liquidate Company's business.

Subsequently, Iain Andrew Nellies and Paul William Gerrard
Jenkins were appointed as joint and several liquidators.

The Liquidators can be reached at:

         Iain Andrew Nellies
         Paul William Gerrard Jenkins
         Insolvency Management Limited
         Level Three, Burns House
         10 George Street (P.O Box 1058)
         Dunedin, New Zealand


SOUTHMET PTY: Members Decide to Cease Operations
------------------------------------------------
At an extraordinary general meeting of Southmet Pty Ltd on
August 31, 2006, members agreed that it is in the Company's best
interests to wind up its operations.

Keiran William Hutchison and John Raymond Gibbons were
subsequently appointed to oversee the Company's wind-up
proceedings.

The Liquidators can be reached at:

         Keiran William Hutchison
         John Raymond Gibbons
         Ernst & Young
         680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9248 5864


SPARMANIA PTY: Final Meeting Scheduled for October 12
-----------------------------------------------------
A final meeting of members of Sparmania Pty Ltd, which is in
liquidation, will be held on October 12, 2006, at 10:00 a.m., at
the office of Borough Mazars, Level 6, 77 Castlereagh Street, in
Sydney, New South Wales.

At the meeting, Liquidator John D. Scarfe will report on the
company's wind-up proceedings and property disposal exercises.


T J BLATCHFORD: Members Resolve to Wind Up Firm
-----------------------------------------------
At a general meeting held on August 17, 2006, the members of T J
Blatchford Pty Ltd resolved to voluntarily wind up the company's
operations.

Accordingly, Ronald James Hare was appointed as liquidator.

The Liquidator can be reached at:

         Ronald James Hare
         Level 2, 55 York Street
         Sydney, New South Wales
         Australia


T.Y.D.S.E. LIMITED: Names Nellies and Jenkins as Liquidators
------------------------------------------------------------
The High Court at Nelson ordered T.Y.D.S.E. Ltd to liquidate its
operations on August 31, 2006.

Iain Andrew Nellies and Paul William Gerrard Jenkins were
subsequently appointed as joint and several liquidators.

According to the Troubled Company Reporter - Asia Pacific, the
Commissioner of Inland Revenue filed the petition with the Court
on July 4, 2006.

The Joint and Several Liquidators can be reached at:

         Iain Andrew Nellies
         Paul William Gerrard Jenkins
         c/o Insolvency Management Limited
         Level Three, Burns House
         10 George Street (P.O Box 1058)
         Dunedin, New Zealand


VILLAGE ROADSHOW: Records AU35.1 Mln Loss for FY-Ended June 2006
----------------------------------------------------------------
Village Roadshow Limited recorded an after tax loss of
AU$35.1 million for the year ended June 30, 2006, consistent
with guidance previously provided by the Company.  The result
compares to a profit re-stated under Australian Equivalents to
International Financial Reporting Standards of AU$49.3 million
for the year ended June 30, 2005.

Excluding material items and discontinued businesses, Village
Roadshow recorded attributable net profit of AU$20.1 million
compared to AU$35.1 million for the prior year.  Reported EBITDA
excluding material items and discontinued operations remained
strong at AU$174.2 million in the current year, compared to the
previous year's AU$197.4 million.

During the 2006 financial year a number of material items and
losses from discontinued businesses were recorded as a result of
substantial progress in relation to the Company's restructuring
program.  Significant achievements in this program include:

   (a) the sale of Argentina, the remaining United Kingdom
       sites, New Zealand and Fiji cinema circuits;

   (b) settlement of a substantial legal claim; and

   (c) the financial restructure of the Film Production
       division.

After tax, material items totaled a loss of AU$37.4 million or
AU$49.7 million before tax.  Approximately AU$39.0 million of
this relates to the Film Production division restructure and
settlement of legal claims, the company explains.

In addition there was an immediate write-off of AU$4.9 million
upon the acquisition of a shareholding in Sydney Attractions
Group, and other corporate expenses associated with the Film
Production restructuring.

Discontinued Operations in the period generated a net loss of
AU$17.8 million including:

   * trading losses for Austria and the UK;

   * trading profits for NZ/Fiji; and

   * a combined net loss on sale of Argentina and UK partially
     offset by a profit on sale of New Zealand and Fiji.

Further restructuring was completed subsequent to year end, when
Village finalized the previously announced acquisition of Warner
Bros.' 50% interest in the Theme Parks division, resulting in
Village Roadshow owning 100% of the main Theme Parks operations.

Village Roadshow has also agreed with the landlords in Austria
to hand back the company's two cinemas in that country by the
end of September 2006.

The financial restructure of the Film Production business
involving Crescent Entertainment and extension of the financing
facility will enable this business to increase the number of
films it produces and has substantially reduced Village
Roadshow's cash investment in this business.

Village Roadshow asserts that the sale of Cinema Exhibition
territories -- Argentina, the remainder of UK, New Zealand/Fiji
and the agreement to exit Austria -- will enable the company to
focus on core territories where there is strong cash flow and
management control, as well as substantially reducing its lease
commitments.

Moving to 100% ownership of the Theme Parks brings significant
strategic and operational benefits to VRL as it simplifies the
structure and allows access to 100% of free cash flow, whilst
retaining access to the Warner Bros.  brand and expertise.  The
VRL group also made an investment in Sydney Attractions Group
during the year which is complementary to the existing Theme
Parks business.

Austereo produced earnings growth this year, despite the impact
of new licences during the year in Sydney and Melbourne.
Austereo has achieved strong audience growth, which is a
testament to its programming and marketing strategies in a
competitive market, and reduced overheads.

The Film Distribution division produced a very solid result for
the year, down marginally from the previous year's record
result.  Blockbuster performances from Harry Potter and the
Goblet of Fire and Charlie and the Chocolate Factory drove
substantially higher box office revenues for Roadshow titles.

A full-text copy of Village Roadshow's Financial Report is
available for free at:

http://www.villageroadshow.com.au/press_releases/pdf/VRL%202006%
20full%20year%20accounts.pdf

                      No Dividend Payment

During the period, VRL completed on-market buy backs aggregating
approximately 10% of ordinary shares for a total of
AU$45.4 million.  There are currently 152.6 million ordinary
shares and 109.6 million preference shares on issue.

The Board of Directors has resolved not to pay a dividend, based
on the results for the 2006 financial year.  This policy will
continue to be reviewed based on the performance of the Company.

                     About Village Roadshow

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

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

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

                          *     *     *

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

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


VIXEN VESTMENTS: Appoints Official Liquidator
---------------------------------------------
Shareholders of Vixen Investments Ltd appointed Rowan Kingstone
as the company's liquidator on August 18, 2006.

The Liquidator can be reached at:

         R. Kingstone
         KDB Chartered Accountants Limited
         Chartered Accountants
         P.O. Box 9200, Auckland
         New Zealand
         Telephone: (09) 303 3007
         Facsimile: (09) 303 1600


WARRINGTON BUILDERS: Liquidation Process Commenced
--------------------------------------------------
The High Court of Christchurch on August 21, 2006, ordered
Warrington Builders (2004) Ltd to liquidate its business.

In this regard, Iain Andrew Nellies and Wayne Deuchrass were
appointed as joint and several liquidators.

The Troubled Company Reporter - Asia Pacific reported on
August 11, 2006, that Williams Hickman Electrical Ltd filed the
petition on July 17, 2006.

The Liquidators can be reached at:

         Iain Andrew Nellies
         Wayne Deuchrass
         c/o Insolvency Management Limited
         Level Four, 728 Colombo Street (P.O. Box 13-401)
         Christchurch, New Zealand


WEST PORT MACQUARIE: Liquidator to Give Wind-Up Report
------------------------------------------------------
Pursuant to Section 509 of the Corporations Act 2001, the
members and creditors of West Port Macquarie Bowling Club Ltd,
which is in liquidation, will hold a meeting on October 11,
2006, at 11:00 a.m.

At the meeting, Liquidator G.A. Russell will report regarding
the Company's wind-up and property disposal.

The Liquidator can be reached at:

         G. A. Russell
         Russell Corporate Advisory
         Suite 304, Level 3
         97 Pacific Highway
         North Sydney, New South Wales 2060
         Australia


ZINIFEX LIMITED: Annual General Meeting Set for November 27
-----------------------------------------------------------
Zinifex Ltd will hold its Annual General Meeting on November 27,
2006, at 10:30 a.m., in Zinc Function Centre, Federation Square,
Melbourne.

                         About Zinifex

Zinifex Limited, one of the world's largest integrated zinc and
lead companies -- http://www.zinifex.com/-- is headquartered in
Melbourne, Australia.  The company owns and operates two mines
and four smelters.  The mines and two of the smelters are
located in Australia and supply the growing industrial markets
of the Asian-Pacific region, including China.  The company also
has a zinc smelter in the Netherlands and the United States.

The company sells a range of zinc metal, lead metal, and
associated alloys in 20 countries.

More than 80% of our products are distributed outside Australia,
particularly in Asia, which is experiencing significant growth
in construction activity and vehicle production.  Zinc is used
for steel galvanizing and die-casting and lead for lead acid
batteries used mainly in cars and other vehicles.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
August 9, 2006, that Fitch Ratings assigned Zinifex a Long-term
foreign currency Issuer Default Rating of 'BB+' with a Stable
Outlook.


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

AGILE PROPERTY: Moody's Keeps (P)Ba3 Corp. Family Rating
--------------------------------------------------------
Moody's Investors Service affirmed on September 15, 2006, Agile
Property Holdings Limited's (P)Ba3 local currency corporate
family rating and foreign currency senior unsecured bond rating.
The ratings outlook is stable.

The affirmation follows the company's decision to increase the
size of its bond issuance to US$400 million from US$350 million.

"Although the increased debt will slightly raise Agile's
projected leverage and weaken its corresponding debt service
coverage metrics, it will help improve somewhat its debt
maturity profile," says lead analyst Kaven Tsang.

Moody's expects to remove the provisional designations for both
ratings once the bond issuance has been successfully completed.

                          *     *     *

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

Agile has a current land bank of 8.3 million square metres.  As
at July 1, it had 26 property development projects in major
cities in the Pearl River Delta region; including Zhongshan,
Guangzhou, Huizhou, and Foshan.

Agile holds a range of properties, such as villas, duplexes,
apartments and condominiums.  Besides residential property
business, Agile is also engaged in the development of commercial
properties, including retail shops and commercial complexes.

Moody's Investors Service assigned on September 4, 2006, Agile
Property's proposed US$350 million bond issue a provisional Ba3
rating.

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


AGILE PROPERTY: S&P Keeps BB Long-Term Corp. Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services disclosed on September 15,
2006, that its BB/Stable long-term corporate credit rating and
outlook on China-based Agile Property Holdings Limited remain
unchanged following the US$50 million increase in the company's
'BB' rated senior notes due 2013.

The issue is now upsized to US$400 million and carries a
semiannual coupon rate of 9%.  The proceeds will be used for
land acquisitions.

                          *     *     *

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

Agile has a current land bank of 8.3 million square metres.  As
at July 1, it had 26 property development projects in major
cities in the Pearl River Delta region; including Zhongshan,
Guangzhou, Huizhou, and Foshan.

Agile holds a range of properties, such as villas, duplexes,
apartments and condominiums.  Besides residential property
business, Agile is also engaged in the development of commercial
properties, including retail shops and commercial complexes.

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


ANYPLACE WORKSHOP: Enters Wind-Up Proceedings
---------------------------------------------
The High Court of Hong Kong issued a wind-up order against
Anyplace Workshop Ltd's operations on August 23, 2006.

According to the Troubled Company Reporter - Asia Pacific,
Solicitors Leung and Wan filed a wind-up petition against the
company on June 27, 2006.


BANK OF CHINA: Fitch Keeps Individual Rating at D
-------------------------------------------------
Fitch Ratings affirmed on September 15, 2006, Bank of China's:

   * Long-term foreign currency IDR at A-;
   * Short-term rating at F2;
   * Individual affirmed at D; and
   * Support at 1.

The Outlook was revised to Positive from Stable.

This action follows the revision in the Outlook on the Long-term
foreign and local currency IDRs of the People's Republic of
China to Positive from Stable while affirming the ratings at A+
and A, respectively.

                          *     *     *

Headquartered in Beijing, China, the Bank of China
-- http://www.bank-of-china.com/-- provides corporate banking,
retail banking and investment banking.  Other activities include
provision of corporate deposits, corporate loans, foreign
exchange business, savings deposits, consumer credit and
bankcards.  It has 12,967 domestic branches and 559 overseas
branches.  The bank received a US$22.5 billion capital injection
from the Government in 2003 to restructure state-owned banks.

                          *     *     *

Moody's Investors Service on August 11, 2006, affirmed the
bank's BFSR at D-.


BESTAR INTERNATIONAL: Appoints Official Liquidator
--------------------------------------------------
Members of Bestar International Industries Ltd on August 21,
2006, passed a special resolution to wind-up the company's
operations and appoint Lau Wing Ling as liquidator.

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

The Liquidator can be reached at:

         Lau Wing Ling
         Unit C, 16/F, Chinaweal Centre
         414-424 Jaffe Road
         Wanchai, Hong Kong


BESTNOON LIMITED: Members Opt for Liquidation
----------------------------------------------
On August 18, 2006, members of Bestnoon Ltd passed a special
resolution to voluntarily wind up the company's operations and
appoint Natalia K M Seng and Susan Y H Lo as joint and several
liquidators.

By the virtue of an ordinary resolution, an audit of the
Liquidators' statements of account is not required.


B&P INTERTRADE: Joint and Several Liquidators Named
---------------------------------------------------
Chiu Wai Hon and Lau Wai Ming were appointed joint and several
liquidators of B&P Intertrade Ltd on August 21, 2006.

The Joint and Several Liquidators can be reached at:

         Chiu Wai Hon
         Lau Wai Ming
         Rooms 603-4
         6/F, Hang Seng Wanchai Building
         200 Hennessy Road
         Wanchai, Hong Kong


BRILLIANT TECHNOLOGY: Court Orders Wind-Up
------------------------------------------
Brilliant Technology Development Ltd received a wind-up order
from the High Court of Hong Kong on August 23, 2006.

According to the Troubled Company Reporter - Asia Pacific, Steve
Julianto Santoso filed the wind-up petition with the court on
June 26, 2006.


CHINA CONSTRUCTION: Fitch Affirms Bank's Individual D Rating
------------------------------------------------------------
Fitch Ratings affirmed on September 15, 2006, China Construction
Bank's:

   * Long-term foreign currency IDR at A-;
   * Short-term rating at F2;
   * Individual at D; and
   * Support at 1.

The Outlook was revised to Positive from Stable.

This follows the revision in the Outlook on the Long-term
foreign and local currency IDRs of the People's Republic of
China to Positive from Stable while affirming the ratings at A+
and A, respectively.

                          *     *     *

The China Construction Bank -- http://www.ccb.cn/-- is one of
the "big four" banks in the People's Republic of China.  It was
founded on October 1, 1954 under the name of "People's
Construction Bank of China" and later changed to "China
Construction Bank" on March 26, 1996.

Standard and Poors ratings on October 19, 2005, upgraded Bank of
China's LTFC rating to A-, STFC rating affirmed at F2,
Individual rating affirmed at D/E, Support rating upgraded to 1.

Fitch Ratings on June 21, 2006, has affirmed China Construction
Bank's (CCB) Individual rating at D/E, support rating at 2.

On August 28, 2006, the Troubled company Reporter - Asia Pacific
reported that Moody's Investors Service affirmed the ratings of
China Construction Bank Corporation on the announcement of its
plan to acquire 100% of Hong Kong-based Bank of America (Asia)
Ltd.

China Construction has an A2 long-term deposit rating with a
positive outlook and a bank financial strength rating of D- with
a stable outlook.  At the same time, Moody's has put Bank of
America Asia's A1/Prime-1 foreign and Aa3/Prime-1 local currency
deposit ratings on review for possible downgrade.


ETTORE NASSETTI: Court to Hear Wind-Up Petition
-----------------------------------------------
A wind-up petition filed against Ettore Nassetti (Asia) Ltd will
be heard before the High Court of Hong Kong on September 13,
2006, at 9:30 a.m.

Travelex Hong Kong Ltd filed the petition on July 21, 2006.

The Solicitors for the Petitioner can be reached at:

         S. K. Lam, Alfred Chan & Co.
         202, 2nd Floor
         Dina House, Ruttonjee Centre
         11 Duddell Street
         Central, Hong Kong


FRANKLIN TEMPLETON: Joint Liquidators Cease to Act for Company
--------------------------------------------------------------
Chan Wah Tip, Michael and Ho Man Kei, Keith ceased to act as
joint and several liquidators for Franklin Templeton
Institutional Asia Ltd on August 22, 2006.

According to the Troubled Company Reporter - Asia Pacific,
shareholders received the Joint Liquidators' wind-up report on
August 22, 2006

The Joint Liquidators can be reached at:

         Chan Wah Tip, Michael
         Ho Man Kei, Keith
         601 Prince's Building
         Chater Road, Central
         Hong Kong


GOLDEN HARVEST: Court Favors Wind-Up
------------------------------------
The High Court of Hong Kong issued a wind-up order against
Golden Harvest Film Productions Ltd on August 23, 2006.

According to the Troubled Company Reporter - Asia Pacific,
United Harvest Asia Ltd filed the petition before the Court on
June 23, 2006.


HALOKING CONSTRUCTION: Court Issues Wind-Up Order
-------------------------------------------------
Haloking Construction Company Ltd was ordered on August 23,
2006, by the High Court of Hong Kong to wind up its operations.

The Troubled Company Reporter - Asia Pacific reported that
Sellmax Ltd filed the petition on June 19, 2006.


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

At the meetings, Liquidator Jan G W Blaauw will present accounts
of the Company's wind-up proceedings and the manner its
properties were disposed of.


HING FUNG: Liquidation Bid Hearing Slated for September 20
----------------------------------------------------------
The High Court of Hong Kong will hear a liquidation petition
against Hing Fung Precious Metals Company Ltd on September 20,
2006, at 9:30 a.m.

Law Chun Wai filed the petition with the Court on July 24, 2006.

The Solicitor of the Petitioner can be reached at:

         Joe Poon
         34/F, Hopewell Centre
         183 Queen's Road East
         Wanchai, Hong Kong


HONGKONG HOTEL: Names Kit as Liquidator
---------------------------------------
Members of Hong Kong Hotel Entertainment Associate Trade Ltd
appointed Tsang Wai Kit as liquidator on August 26, 2006.

Mr. Tsang can be reached at:

         Tsang Wai Kit
         6/F, May May Building
         Nos. 683-685 Nathan Road
         Mongkok, Hong Kong


HTL GARMENTS: Receives Wind-Up Order from Court
-----------------------------------------------
The High Court of Hong Kong issued a wind-up order against HTL
Garments Company Ltd on August 23, 2006.

According to the Troubled Company Reporter - Asia Pacific, South
China Garments Company Ltd filed the petition with the court on
June 5, 2006.

The petition was heard before the court on August 23, 2006.


IAC BANK: Fitch Affirms Individual D/E Ratings
----------------------------------------------
Fitch Ratings affirmed on September 15, 2006, Industrial and
Commercial Bank of China's:

   * Long-term foreign currency IDR at A-;
   * Individual at D/E; and
   * Support affirmed at 1.

The Outlook was revised to Positive from Stable.

This action follows the revision in the Outlook on the Long-term
foreign and local currency IDRs of the People's Republic of
China to Positive from Stable while affirming the ratings at A+
and A, respectively.

                          *     *     *

The Industrial and Commercial Bank of China
-- http://www.icbc.com.cn-- is the largest state-owned
commercial bank, and is authorized by the State Council and the
People's Bank of China (PBOC).  ICBC conducts operations across
China as well as in major international financial centers.

ICBC operates through more than 22,000 domestic outlets, 71
overseas branches and offices and about 1,000 correspondent
banks worldwide.  The bank has approximately 100 million
personal customers, 2.8 million consumer credit clients, and
approximately 400 million personal savings accounts in China.
ICBC also conducts business through its overseas holding
subsidiaries such as ICBC (Asia), Industrial and Commercial
International Capital and Industrial and Commercial East Asia
Finance holding.


LITAK SHIPPING: Appoints Joint and Several Liquidators
------------------------------------------------------
On August 28, 2006, Ricky P.O. Chong and Cordelia Tang were
appointed as joint liquidators of Litak Shipping Company Ltd.

The Joint Liquidators can be reached at:

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


MASSEY ENERGY: Earns US$3.2 Million in 2nd Quarter Ended June 30
----------------------------------------------------------------
Massey Energy Company reported net income of US$3.2 million
compared to US$37 million in 2005.  The Company disclosed that
produced coal revenues for its second quarter ended June 30,
2006, increased to US$492.5 million from US$487.1 million in the
second quarter of 2005.  EBITDA was US$77.5 million in the
second quarter of 2006 compared to US$112.0 million in the
second quarter of 2005.

The Company said that the second quarter volume and financial
results continued to be impacted by the fire-related idling of
the Aracoma longwall and the productivity performance that has
challenged Massey's room and pillar deep mines for several
quarters.  "The good news is that the Aracoma longwall returned
to production July 19th and is operating normally," said Don L.
Blankenship, Massey Chairman and CEO.  "I would like to
personally thank all the management staff and hourly personnel
who worked so tirelessly to return the Aracoma mine to
production."

With the Aracoma longwall in operation again, the Company is
taking a fresh look at all other mining operations.  Massey has
elected to idle four underground mining sections and to
discontinue production at the Rockhouse longwall after it
completes its current panel, in mid-August.  The Company is also
reducing staff and new miner training at a number of other
higher cost mines to decrease costs at those operations.

"Central Appalachia coal mining has been, and continues to be,
under significant cost pressure," said Mr. Blankenship.  "Labor,
productivity, environmental, and regulatory factors are
increasingly difficult to forecast.  We are disappointed that
these pressures continue to impact our financial performance and
we are determined to implement a variety of cost reduction
initiatives."

Nevertheless, Massey continues to lead Central Appalachia in
produced and shipped tonnage and reserve holdings and believes
it continues to be the low cost producer.  "Our focus continues
to be on enhancing shareholder value," said Mr. Blankenship.
"The restart of the Aracoma longwall and the start-up of the
Twilight dragline, along with the other steps we are taking to
control costs, should expand margins going forward."

                  Liquidity and Capital Resources

Massey ended the second quarter with available liquidity of
$303.5 million, including US$69.5 million available on its
asset-based revolving credit facility and US$234.0 million in
cash.  Total debt at the end of the quarter was US$1,107.6
million compared to total debt of US$1,113.3 million at Dec. 31,
2005.

Massey's total debt-to-book capitalization ratio increased to
61.1% at June 30, 2006 from 59.8% at Dec. 31, 2005.  The
capitalization ratio for Dec. 31, 2005, has been adjusted to
reflect the impact of the non-cash adjustment to retained
earnings required by the adoption of Emerging Issues Task Force
Issue 04-6 on Jan. 1, 2006.  After deducting available cash of
US$234.0 million and restricted cash of US$105.0 million, which
supports letters of credit, net debt totaled US$768.6 million.
Total net debt-to-book capitalization was 52.2% at June 30,
2006, compared to 48.0% at Dec. 31, 2005, as adjusted.

Capital expenditures, which totaled US$85.3 million in the
second quarter of 2006 compared to US$111.8 million in the
second quarter of 2005, were US$161.6 million in the first half
of 2006 versus US$197.8 million in the first six months of 2005.
Excluding estimated lease buyouts of US$28 million, capital
spending is expected to total between US$260 and US$270 million
for 2006.

Depreciation, depletion and amortization (DD&A) was US$57.2
million in the second quarter of 2006 compared to US$60.5
million in the second quarter of 2005.  For the year to date,
DD&A totaled US$113.9 million compared to US$118.9 million for
the first six months of  2005.  DD&A is expected to total
between US$235 and US$245 million for the full year 2006.

Based in Richmond, Virginia, Massey Energy Company (NYSE: MEE) -
- http://www.masseyenergyco.com/-- produces Central Appalachian
coal, with subsidiaries serving more than 125 utility,
industrial and metallurgical customers around the world.  The
company has operations in China.

                        *     *     *

As reported on the Troubled Company Reporter on Aug. 2, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Richmond, Virginia-based Massey Energy Co. to 'B+'
from'BB-', reflecting its expectation of weaker-than-anticipated
financial performance; increased debt leverage; and concerns
about aggressive shareholders.  The outlook is stable.


MIRACLE TIME: Winds Up Business Operations
------------------------------------------
At a general meeting of the members of Miracle Time Investment
Ltd on August 21, 2006, it was agreed that a voluntary wind-up
of the Company's operations is appropriate and necessary.

In this regard, Simon Blade and Bruno Arboit were appointed as
Joint and Several Liquidators.

The Joint and Several Liquidators can be reached at:

         Simon Blade
         Bruno Arboit
         Room 1203-13
         12/F, China Merchants Tower
         Shun Tak Centre
         168-200 Connaught Road
         Central, Hong Kong


PRODUCT SAFETY (H.K.): Names A.G. Hung as Liquidator
----------------------------------------------------
On August 25, 2006, shareholders of Product Safety Coordination
(International) Ltd resolved to voluntary wind up the Company's
operations.

Accordingly, Andrew George Hung was named Liquidator of the
Company.

The Liquidator can be reached at:

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


PRODUCT SAFETY (INTERNATIONAL): Appoints New Liquidator
-------------------------------------------------------
On August 25, 2006, shareholders of Product Safety Coordination
(International) Ltd resolved to voluntary wind up the Company's
operations.

Subsequently, Andrew George Hung was appointed liquidator of the
company.

The Liquidator can be reached at:

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


QING YUAN: Enters Wind-Up Proceedings
-------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Qing Yuan Enterprises Ltd on September 13, 2006, at 9:30 a.m.

Umbrella Finance Company Ltd filed the petition with the Court
on July 21, 2006.

The Solicitors for the Petitioner can be reached at:

         Clifford Chance
         29/F, Jardine House
         One Connaught Place
         Central, Hong Kong


SANIC INTERNATIONAL: Liquidators Step Aside
-------------------------------------------
Lai Kar Yan Derek and Darach E. Haughey ceased to act as
Liquidators of Sanic International Ltd on August 22, 2006.

According to the Troubled Company Reporter - Asia Pacific, the
presentation of Liquidators' wind-up report were conducted on
the same day.

The Liquidator can be reached at:

         Lai Kar Yan, Derek
         Darach E. Haughey
         35/F, One Pacific Place
         88 Queensway
         Hong Kong


SUPRA ENGINEERING: Court to Hear Liquidation Petition on Sept.27
----------------------------------------------------------------
A liquidation petition filed against Supra Engineering Ltd will
be heard before the High Court of Hong Kong on September 27,
2006, at 9:30 a.m.

Yeung Kim Ho filed the petition with the court on July 26, 2006.

The Solicitor for the Petitioner can be reached at:

         Joe Poon
         34/F, Hopewell Centre
         183 Queen's Road East
         Wanchai, Hong Kong


VACATION TRAVEL: Court Issues Wind-Up Order
-------------------------------------------
On August 23, 2006, the High Court of Hong Kong ordered Vacation
Travel Company Ltd to wind up its operations.

The Troubled Company Reporter - Asia Pacific previously reported
that on June 28, 2006, Pang San Ming filed a petition before the
court to wind-up the company's operations.


WAH SAN: Members Resolve to Wind Up Operations
----------------------------------------------
On August 18, 2006, members of Wah San Diecasting Company Ltd
resolved to voluntarily wind up its operations and appoint Lau
Yuen Yee as liquidator.

The Liquidator can be reached at:

         Lau Yuen Yee
         Room 1702, 17/F
         Tung Hip Commercial Building
         248 Des Voeux Road
         Central, Hong Kong


YICK TUNG: Joint Liquidators Cease to Act for the Company
---------------------------------------------------------
Lai Kar Yan Derek and Darach E. Haughey ceased to act as joint
and several liquidators for Yick Tung (China) Bonded-Warehousing
& Trading Co. Ltd on August 22, 2006.

According to the Troubled Company Reporter - Asia Pacific the
Joint Liquidators presented a report on the company's wind-up
proceedings, on that day.

The Joint Liquidators can be reached at:

         Lai Kar Yan Derek
         Darach E. Haughey
         35/F, One Pacific Place
         88 Queensway
         Hong Kong


YIP FUNG: Faces Liquidation Proceedings
---------------------------------------
On July 26, 2006, Elitak Machinery Ltd filed before the High
Court of Hong Kong a liquidation petition against Yip Fung
Textiles Company Ltd.

The petition will be heard before the court on September 27,
2006, at 9:30 a.m.

The Solicitor for the Petitioner can be reached at:

         C. K. Mok & Co.
         1st Floor, O.T.B. Building
         No. 259-265 Des Voeux Road Central
         Hong Kong


Y.S. KNITTING: Liquidation Process Initiated
---------------------------------------
On August 23, 2006, the High Court of Hong Kong issued a wind-up
order against the operations of Yiu Sing Knitting Company Ltd.

The Troubled Company Reporter - Asia Pacific previously reported
that Wong Chi Keung, Joe filed a petition to wind-up the
company's operation before the court on June 23, 2006.


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

CITY UNION BANK: Posts 25.14% Rise in Net Profit
------------------------------------------------
City Union Bank Ltd. reported a 25.14% rise in net profit from
INR125.11 crore for the quarter ending June 30, 2005, to
INR156.56 crore for the quarter ending June 30, 2006, according
to the bank's financials submitted to the Mumbai Stock Exchange.

Operating income increased by 19.91% from INR739.55 crore for
the first quarter 2005-06 to INR886.78 crore for the first
quarter 2006-07, spurred by 25.81% increase in interest on
advance, 7.26% increase in investment income to INR674.87 crore
and INR206.00 crore, respectively.

The bank's total income amounted to INR981.67 crore for the
first quarter ended June 30, 2006, a 20.89% improvement against
the INR812.02 crore it recorded a year ago.

As of June 30, 2006, the bank has a 12.65% capital adequacy
ratio, way above the prescribed 9.00%.

The bank's financial results for the quarter ended June 30,
2006, are available for free at:

   http://bankrupt.com/misc/tcrap_cityunion091506.pdf

                     About City Union Bank

City Union Bank Limited -- http://cityunionbank.com/-- provides
savings accounts, current accounts, fixed deposits, cash
certificates, monthly savings, VIP deposit schemes, Flexifix
deposits, CUB Smart deposits and the insurance linked Multiple
Benefits Plan.

As reported in the Troubled Company Reporter - Asia Pacific on
August 8, 2006, Fitch Ratings affirmed City Union's Individual
and Support ratings at 'D/E' and '5', respectively.


CITY UNION BANK: Releases AGM Results
-------------------------------------
Members of City Union Bank Limited, at the company's Annual
General Meeting on August 18, 2006, approved:

     -- the adoption of the Profit & Loss Account for the year
        ended March 31, 2006, the Balance Sheet as on that date,
        the Report of the Directors and Auditors;

     -- the declaration of dividend at the rate of INR4 per
        equity share for the financial year ended March 31,
        2006;

     -- re-appointment Shri VR Arunachalam, Dr S Kasinathan,
        Shri M Mahalingam & Shri P Vaidyanathan as directors of
        the bank; and

     -- the appointment of M/s Abarna & Ananthan, Chartered
        Accountants, Bangalore as the Statutory Central Auditors
        of the bank from the conclusion of this Annual General
        Meeting until the conclusion of the next Annual General
        Meeting, on remuneration, terms & conditions.

The members also authorized the board of directors to:

     * make application to the Central Government for exemption
       from Branch Audit;

     * arrange for audit of such branches as are not exempted;
       and

     * appoint the Branch Auditors for audit of such of the
       branches for the year 2006-07 in consultation with
       bank's Statutory Central Auditors and fix their
       remuneration.

In addition, members also appointed Shri S Bernard as director
of the bank, liable to retire by rotation.

                     About City Union Bank

City Union Bank Limited -- http://cityunionbank.com/-- provides
savings accounts, current accounts, fixed deposits, cash
certificates, monthly savings, VIP deposit schemes, Flexifix
deposits, CUB Smart deposits and the insurance linked Multiple
Benefits Plan.

As reported in the Troubled Company Reporter - Asia Pacific on
August 8, 2006, Fitch Ratings affirmed City Union's Individual
and Support ratings at 'D/E' and '5', respectively.


CITY UNION BANK: Targets INR10,000 Crore Turnover for 2007
----------------------------------------------------------
City Union Bank Ltd. is targeting to achieve INR10,000 crore in
turnover by the end of financial year 2006-07, the bank said in
a press release.

The Bank expects to have additional 24 branches before March
2007, taking the entire network to 170 branches to facilitate
achieving the turnover target.

As part of the plan, City Union Bank has appointed Integrated
Enterprises (India) Ltd., as a business facilitator for
marketing its fixed deposits.

Integrated Enterprises is a 30-year old company with a network
of 106 branches across the country.  This association would
benefit the bank to garner more deposits from the public, even
from locations where the bank does not have a branch.  City
Union Bank is in the process of setting up "Integrated Advisory
Kiosks" at select branches of City Union Bank with the help of
Integrated Enterprises, through which mutual funds and other
financial products will be sold to the bank's customers.

                     About City Union Bank

City Union Bank Limited -- http://cityunionbank.com/-- provides
savings accounts, current accounts, fixed deposits, cash
certificates, monthly savings, VIP deposit schemes, Flexifix
deposits, CUB Smart deposits and the insurance linked Multiple
Benefits Plan.

As reported in the Troubled Company Reporter - Asia Pacific on
August 8, 2006, Fitch Ratings affirmed City Union's Individual
and Support ratings at 'D/E' and '5', respectively.


FORD MOTOR: UAW Agrees to Voluntary, System-Wide Buyouts
--------------------------------------------------------
Ford Motor Company and the United Auto Workers has reached an
agreement on voluntary, system-wide buyouts for more than 75,000
UAW-represented hourly workers at Ford Motor Company.

"Once again, our members are stepping up to make hard choices
under difficult circumstances," said UAW President Ron
Gettelfinger.  "Now, it's Ford Motor Company's responsibility to
lead this company in a positive direction -- which means using
the skills, experience and dedication to quality that UAW
members demonstrate every day in order to deliver quality
vehicles to customers."

A variety of buyout and incentive packages will be available,
depending on the length of service and other eligibility
factors.  All active UAW Ford hourly workers will be eligible
for at least one of the programs, which will be offered on a
one-time basis only due to current conditions in the industry,
including Ford's continued loss of market share.

The buyout packages include retirement incentives, early
retirement, pre-retirement leave, incentives for workers to
terminate their employment at Ford and special educational
opportunities.  UAW Ford workers currently assigned to
Automotive Components Holding facilities will have the
opportunity to flow back to any job openings created at Ford as
a result of the buyout packages.

No UAW Ford hourly worker will have his or her contractual
rights compromised as a result of these buyout packages, and no
worker will be involuntarily separated from Ford Motor Company,
the union disclosed.

A summary of the terms and conditions of the packages is
available for free at http://researcharchives.com/t/s?11ad

The buyouts are part of Ford's move to accelerate its "Way
Forward" turnaround plan initiated early this year.

                        About Ford Motor

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

On Aug. 22, 2006, Dominion Bond Rating Service placed long-term
debt rating of Ford Motor Company Under Review with Negative
Implications following announcement that Ford will sharply
reduce its North American vehicle production in 2006.  DBRS
lowered on July 21, 2006, Ford Motor Company's long-term debt
rating to B from BB, and lowered its short-term debt rating to
R-3 middle from R-3 high.  DBRS also lowered Ford Motor Credit
Company's long-term debt rating to BB(low) from BB, and
confirmed Ford Credit's short-term debt rating at R-3(high).

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

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

On July 24, 2006, Moody's Investors Service lowered the
Corporate Family and senior unsecured ratings of Ford Motor
Company to B2 from Ba3 and the senior unsecured rating of Ford
Motor Credit Company to Ba3 from Ba2.  The Speculative Grade
Liquidity rating of Ford has been confirmed at SGL-1, indicating
very good liquidity over the coming 12-month period.  The
outlook for the ratings is negative.


HMT LIMITED: Net Loss Climbs 730.13% in June Quarter
----------------------------------------------------
HMT Limited reports a net loss of INR1,295 lakhs for the quarter
ended June 30, 2006, a 730.13% increase from the net loss it
reported in the previous corresponding period.

Income from operations more than halved from INR4,904 lakhs for
the three months ending June 30, 2005, to INR1,994 lakhs in the
same period this year.  That and the absence of non-operational
income brought down the company's total income to INR2,254 lakhs
for the quarter ending June 30, 2006, from INR5,942 lakhs a year
ago.

HMT Limited's Profit/Loss Statements for the quarter ended
June 30, 2006, includes these financial data (In INR Lakhs)

                                         Quarter ended
                                 June 30, 2006   June 30, 2005
                                 -------------   -------------
  Income from operations                1,994           4,904
  Other operational income                260             301
  Other non-operational income              -             737
  Total income                          2,254           5,942
  Total expenditure                     3,398           5,917
  Interest                                 39              65
  Depreciation                            105             110
  Loss before tax                       1,288             150
  Net loss                              1,295             156

                        About HMT Limited

HMT Limited -- http://www.hmtindia.com/-- is an engineering
conglomerate.  The company retains the Tractor's Business, which
develops tractors ranging from 25 horsepower to 75 horsepower.
It has an installed capacity of 18,000 tractors for
manufacturing and assembly operations.  The Company has three
tractor manufacturing units in India located at Pinjore in
Haryana, Mohali in Punjab, and Hyderabad in Andhra Pradesh.  The
subsidiaries of the company include HMT Machine Tools Limited,
HMT Watches Limited, HMT Chinar Watches Limited, HMT
(International) Limited, HMT Bearings Limited and Praga Tools
Limited.  The principal segments include Machine tools, Watches,
Tractors, Bearings and Exports.  The Company has a Joint Venture
with SUDMO HMT Process Engineers (India) Limited, Bangalore.

                          *     *      *

Credit Analysis and Research Limited downgraded HMT's long term
bond issue of INR310 crore to CARE BB(SO) on February 18, 2005.

At the same time, the company's medium term bond issue of
INR40.40 crore was likewise downgraded to CARE BB(SO).

Instruments rated 'Double B' are considered to be speculative,
with inadequate protection for interest and principal payments.


IFCI LTD: Loss After Tax for June Quarter Improves 65%
------------------------------------------------------
IFCI Ltd. registered a loss after tax of INR15.61 crore for the
quarter ended June 30, 2006, a 65% improvement against the
INR44.83 crore loss after tax it posted in the previous
corresponding quarter, according the company's financials.

The result was driven by a 67.33% decrease in write-offs and
provisions for bad accounts.  IFCI only provided INR67.87 crore
in the first quarter of 2006, as opposed to the INR207.76 crore
for the first quarter of 2005.

The company reported a 33.33% decline in total income, from
INR384.49 crore in the first quarter of 2005 to INR256.31 crore
in the first quarter of 2006.

Operating expenses amounted to INR8.15 crore, almost unchanged
from the year before.

IFCI Ltd.'s Profit/Loss Statements for the quarter ended
June 30, 2006, include these financial data (in INR crore)

                                         Quarter ended
                                 June 30, 2006   June 30, 2005
                                 -------------   -------------
   Operational income                  252.01          381.83
   Other income                          4.30            2.66
   Total income                        256.31          384.49
   Cost of borrowings                  193.57          210.85
   Operating expenses                    8.15            8.09
   Total expenditure                   271.85          429.28
   Loss before tax                      15.54           44.79
   Loss after tax                       15.61           44.83

                       About IFCI Limited

IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector.  The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services.  Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs.  Non-
project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project.  Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.

                          *     *     *

Fitch Ratings, on June 29 2006, affirmed IFCI Limited's support
rating at '4'.  The outlook on the rating is stable.

Additionally, on February 15, 2006, Credit Analysis and Research
Limited retained a CARE D rating to the long and medium term
debt aggregating INR248 crore.  Instruments carrying this rating
are judged to be of the lowest category.  They are either in
default or likely to be in default soon.


IFCI LIMITED: Installs New Director
-----------------------------------
IFCI Limited has informed the Bombay Stock Exchange in a
regulatory filing that Shri Thomas Mathew T, MD LIC, has been
appointed as director to fill the casual vacancy and Sh P G
Muralidharan, IAS Officer (Retd), has been appointed as
additional director of the Board.

IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector.
IFCI's principal activities include project finance, financial
services, non-project specific assistance and corporate advisory
services.  Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of expansion,
diversification and modernization programs.  Non-project
specific assistance is provided in the form of corporate/short-
term loans, working capital, bills discounting, etc to meet
expenditure, which is not specifically related to any particular
project.  Its investment portfolio includes equity shares,
preference shares, security receipts and government securities.

                          *     *     *

Fitch Ratings, on June 29 2006, affirmed IFCI Limited's support
rating at '4'.  The outlook on the rating is stable.

Additionally, on February 15, 2006, Credit Analysis and Research
Limited retained a CARE D rating to the long and medium term
debt aggregating INR248 crore.  Instruments carrying this rating
are judged to be of the lowest category.  They are either in
default or likely to be in default soon.


INDUSTRIAL DEVELOPMENT: CRISIL Rates INR30-B Flexi Bonds at AA+
---------------------------------------------------------------
CRISIL has assigned AA+/Stable rating to INR30 billion Flexi
Bonds and the INR10 billion Lower Tier II Bonds of Industrial
Development Bank of India.

Furthermore, it has re-affirmed AA+/Stable rating to bonds Issue
(including the aggregated of INR1.45 billion subordinated bonds
of the erstwhile IDBI Bank), INR30 billion Flexi Bonds,
INR89.45 billion Omni Bonds and the certificate deposit
Programme.  It has also affirmed AA+/Stable rating to
INR55.25 billion Omni Bonds, which has been enhanced from
INR50 billion.

The Fixed Deposit Programme has been re-affirmed as FAAA/Stable
and the Certificate of Deposit Programme as P1+.  The INR50
billion Short Term Debt Programme, which has been enhanced from
INR25 million has also been affirmed P1+.

               About Industrial Development Bank

Headquartered in Mumbai, India, Industrial Development Bank of
India -- http://www.idbi.com/-- is a commercial bank that
offers a range of products, including secured loans, such as
housing loans, mortgage loans and loan against securities, and
unsecured loans, such as personal loans, educational loans and
overdrafts to merchant establishments.  It also distributes
third-party products, such as insurance and mutual fund products
to its retail customers.  IDBI also offers project financing,
film financing, equipment financing, asset credits, corporate
loans, working capital loans, direct discounting, financing of
receivables, venture capital funds, bill rediscounting,
rehabilitation financing, foreign exchange and merchant banking.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
July 28, 2006, that Moody's Investors Service has assigned a
financial strength rating of D- and long- and short-term foreign
currency deposit ratings of Ba2/Not-Prime to Industrial
Development Bank of India Limited.  All ratings have stable
outlooks.  The bank's existing Baa2 foreign currency senior
unsecured debt rating is unaffected by this action.

Additionally, Standard & Poor's Ratings Services gave Industrial
Development Bank of India's long-term foreign issuer credit a
BB+ rating on April 19, 2006.


INDUSTRIAL DEVELOPMENT: UWB Merger Has No Effect on Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services on September 14, 2006, said
that its ratings and outlook on public sector bank Industrial
Development Bank of India Ltd (BB+/Positive/B) are not affected
by the Reserve Bank of India clearing a merger proposal between
United Western Bank Ltd. and IDBI.

The merger proposal requires IDBI to pay INR28 for each UWB
share, amounting to a total of INR1.50 billion, and to assume
the assets and liabilities of UWB according to the conditions in
the proposal.

This is the first instance in India where an acquirer bank is
required to compensate the shareholders of a bank under
moratorium.

UWB's branch network in the affluent western Maharashtra region
in India and its wide depositor base is expected to boost IDBI's
distribution network and grow its retail portfolio.

The UWB purchase will have a negligible impact on IDBI's
reported shareholders' funds of INR66.59 billion as of March 31,
2006.  Standard & Poor's, however, expects UWB's weaker asset
quality to impact IDBI's financial profile negatively.

UWB's loan quality and recovery from its INR40 billion loan
portfolio is a concern, given its regulatory net NPL ratio of
5.66% as of March 31, 2006, is significantly above the peer
group average of about 2%.

Standard & Poor's will continue to monitor the impact on IDBI's
financial profile.

                           About UWB

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.

               About Industrial Development Bank

Headquartered in Mumbai, India, Industrial Development Bank of
India -- http://www.idbi.com/-- is a commercial bank that
offers a range of products, including secured loans, such as
housing loans, mortgage loans and loan against securities, and
unsecured loans, such as personal loans, educational loans and
overdrafts to merchant establishments.  It also distributes
third-party products, such as insurance and mutual fund products
to its retail customers. IDBI also offers project financing,
film financing, equipment financing, asset credits, corporate
loans, working capital loans, direct discounting, financing of
receivables, venture capital funds, bill rediscounting,
rehabilitation financing, foreign exchange and merchant banking.

                         *     *      *

The Troubled Company Reporter - Asia Pacific reported on
July 28, 2006, that Moody's Investors Service has assigned a
financial strength rating of D- and long- and short-term foreign
currency deposit ratings of Ba2/Not-Prime to Industrial
Development Bank of India Limited.  All ratings have stable
outlooks.  The bank's existing Baa2 foreign currency senior
unsecured debt rating is unaffected by this action.

Additionally, Standard & Poor's Ratings Services gave Industrial
Development Bank of India's long-term foreign issuer credit a
BB+ rating on April 19, 2006.


INDUSTRIAL DEVELOPMENT: Books INR15-Crore Profit in 1st Quarter
---------------------------------------------------------------
Industrial Development Bank of India posted a net profit of
INR151 crore for the first quarter of fiscal year 2006-07,
against INR109 crore in the same quarter last fiscal year,
reflecting an increase of 39%, the bank said in a press release.

Highlights of Q1 FY07 financial results:

   * Net profit at INR151 crore (INR109 crore in Q1 of 2005-06)
   * Total business up 27% to INR81,733 as of end of June 2006
   * Deposits increase by 73% in the first quarter
   * Advances up by over 10% year-on-year
   * Cost of funds declines to 6.61& from 7.14% as of end of
     June 2005
   * Net NPAs down to 1.02% as of end of June 2006 (1.51% as of
     end of June 2005).

Operating profit rose by over 22% to INR192 crore in the
reported quarter against INR158 crore a year ago.  Profit form
sales of investments went up by 22% to INR148crore, and
accounted for 52% of other income reported in the quarter.

The bank decreased its operating expenses by 6% to INR190 crore
compared to INR201 crore in the previous corresponding period.

                            Business

As of June 30, 2006, IDBI's total business stood at
INR81,733 crore against a INR64,490 crore as of June 30, 2005.

In the reporting quarter, deposits increased by 73% to
INR29,096 crore, while retail assets go up from INR658 crore to
nearly INR9,270 crore.  Investment portfolio follows the upward
trend to INR27,243 crore.

Total assets as of June 30, 2006, stood at INR89,615 crore, 8%
better than the INR82,659 crore a year before.

                     Non-Performing Assets

Sustained recovery efforts during the quarter saw IDBI's sticky
assets decline by INR98 crore, giving the bank a gross NPA to
gross advances ratio of 2.09% as of June 30, 2006, from 2.47% a
year ago.  Net NPA also declined to 1.02%.

                     Capital Adequacy Ratio

IDBI continued to maintain a sound capital base as indicated by
its capital adequacy ratio.  The bank's CAR stood at 14.00%,
with its Tier-I CAR at 11.44% as of the end of June 2006.  RBI's
stipulated norm is 9%.

The bank's financial report for the quarter ended June 30, 2006,
is available for free at:

   http://bankrupt.com/misc/tcrap_IDBI091506.pdf

                About Industrial Development Bank

Headquartered in Mumbai, India, Industrial Development Bank of
India -- http://www.idbi.com/-- is a commercial bank that
offers a range of products, including secured loans, such as
housing loans, mortgage loans and loan against securities, and
unsecured loans, such as personal loans, educational loans and
overdrafts to merchant establishments.  It also distributes
third-party products, such as insurance and mutual fund products
to its retail customers. IDBI also offers project financing,
film financing, equipment financing, asset credits, corporate
loans, working capital loans, direct discounting, financing of
receivables, venture capital funds, bill rediscounting,
rehabilitation financing, foreign exchange and merchant banking.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
July 28, 2006, that Moody's Investors Service has assigned a
financial strength rating of D- and long- and short-term foreign
currency deposit ratings of Ba2/Not-Prime to Industrial
Development Bank of India Limited.  All ratings have stable
outlooks.  The bank's existing Baa2 foreign currency senior
unsecured debt rating is unaffected by this action.

Additionally, Standard & Poor's Ratings Services gave Industrial
Development Bank of India's long term foreign issuer credit a
BB+ rating on April 19, 2006.


LLOYDS FINANCE: Posts INR5.93M Net Loss in Quarter Ended June 30
----------------------------------------------------------------
Lloyds Finance Ltd posted a net loss of INR5.93 million for the
quarter ending June 30, 2006, almost half of the previous year's
net loss of INR10.86 million, the company said in a regulatory
filing to the Bombay Stock Exchange.

Total income increased to INR0.39 million during the quarter in
review, from INR0.09 million the previous year, while operating
expenses decreased to INR6.32 million.

The regulatory filing included these financial data (in INR
millions):

                                         Quarter ended
                                 June 30, 2006   June 30, 2005
                                 -------------   -------------
   Total income                          0.39            0.09
   Operating expenses                    6.32            7.19
   Operating loss                        5.93            7.10
   Net loss                              5.93           10.86

                      About Lloyds Finance

Lloyds Finance Ltd. provides financial services including
leasing, hire purchase, merchant banking, equity research,
corporate finance, portfolio management, forex and other
advisory services.

The company's fixed deposits and senior unsecured debt carry
Credit Analysis and Research Limited's CARE D rating.

Additionally, Lloyds Finance's short-term FD 3800, long-term NCD
217 and OFCD 517 all carry a CARE D rating effective on
August 31, 2006.


LLOYDS FINANCE: Members Pass All AGM Resolutions
------------------------------------------------
Members of Lloyds Finance Limited approved all resolutions
tabled at the company's Annual General Meeting held on
August 18, 2006.

During the meeting, members approved:

   -- the adoption of the Profit & Loss Account for the period
      ended March 31, 2006, and the Balance Sheet as at that
      date and the Directors Report and Auditors Report;

   -- the reappointment of Shri. Basant Bhoruka as director of
      the company;

   -- the appointment of M/s. Vijay H Shah & Co., Chartered
      Accountants, Mumbai, as auditors of the company to hold
      office from the conclusion of the meeting until the
      conclusion of the next Annual General Meeting of the
      members of the company, on remuneration, terms &
      conditions; and

   -- the reappointment of Shri. Pankaj R Desai as Managing
      Director of the company, for a period of five years with
      effect from November 1, 2006, on remuneration, terms and
      conditions.

                      About Lloyds Finance

Lloyds Finance Ltd. provides financial services including
leasing, hire purchase, merchant banking, equity research,
corporate finance, portfolio management, forex and other
advisory services.

The company's fixed deposits and senior unsecured debt carry
Credit Analysis and Research Limited's CARE D rating.

Additionally, Lloyds Finance's short-term FD 3800, long-term NCD
217 and OFCD 517 all carry a CARE D rating effective on
August 31, 2006.


ORIENTAL BANK: Posts INR940.20-Mil Net Profit for June Quarter
--------------------------------------------------------------
Oriental Bank of Commerce recorded a net profit of
INR940.20 million for the quarter ended June 30, 2006, as
compared with the INR435.30-million net profit for the quarter
ended June 30, 2005, the bank said in a regulatory filing with
the Bombay Stock Exchange.

Total income has increased from INR10.83 billion for the quarter
ended June 30, 2005, to INR13.04 billion for quarter ended
June 30, 2006.

Oriental Bank's financial report is available for free at:

   http://bankrupt.com/misc/tcrap_orientalbank091506.pdf

                 About Oriental Bank of Commerce

Headquartered in New Delhi, India, Oriental Bank of Commerce --
http://www.obcindia.com/-- is a scheduled commercial bank.  The
company's domestic services include deposits, comprised of term
deposits, savings accounts, current accounts and the Suvidha
deposit scheme; advances, which consist of corporate advances, a
range of retail credit products and specialty schemes, and
government business, comprised of direct tax collection, pension
disbursement and savings bonds.  It also provides non-resident
Indian banking solutions, including non-resident external
accounts, non-resident ordinary accounts, foreign currency non-
resident accounts and resident foreign currency accounts.  It
also offers debit card services.  The bank also provides
treasury services and merchant banking services.  The bank has
introduced products and services, such as Anywhere Branch
Banking, Cash Management Service, Telebanking, automated teller
machines and Internet banking through select branches.  During
the fiscal year ended March 31, 2006, the Bank had a total of
1,148 branches.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
August 21, 2006, that Fitch Ratings assigned a Long-term foreign
currency issuer default rating of BB+ to Oriental Bank of
Commerce.  The Bank's individual and support ratings have been
affirmed at C/D and 4, respectively.  The outlook on the ratings
is stable.


ORIENTAL BANK: In Talks for Strategic Association
-------------------------------------------------
Oriental Bank of Commerce has informed the Bombay Stock Exchange
that the chairman and managing director of the bank, as well as
CMDs of the Corporation Bank and Indian Bank, are meeting on
September 15, 2006.

The three banks are to discuss a strategic business association
for their customer's mutual benefit.

                 About Oriental Bank of Commerce

Headquartered in New Delhi, India, Oriental Bank of Commerce --
http://www.obcindia.com/-- is a scheduled commercial bank.  The
company's domestic services include deposits, comprised of term
deposits, savings accounts, current accounts and the Suvidha
deposit scheme; advances, which consist of corporate advances, a
range of retail credit products and specialty schemes, and
government business, comprised of direct tax collection, pension
disbursement and savings bonds.  It also provides non-resident
Indian banking solutions, including non-resident external
accounts, non-resident ordinary accounts, foreign currency non-
resident accounts and resident foreign currency accounts.  It
also offers debit card services.  The bank also provides
treasury services and merchant banking services.  The bank has
introduced products and services, such as Anywhere Branch
Banking, Cash Management Service, Telebanking, automated teller
machines and Internet banking through select branches.  During
the fiscal year ended March 31, 2006, the Bank had a total of
1,148 branches.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
August 21, 2006, that Fitch Ratings assigned a Long-term foreign
currency issuer default rating of BB+ to Oriental Bank of
Commerce.  The Bank's individual and support ratings have been
affirmed at C/D and 4, respectively.  The outlook on the ratings
is stable.


UCO BANK: Posts INR61.5 Crore Net Profit in First Quarter
---------------------------------------------------------
UCO Bank posted a net profit of INR61.50 crore for the first
quarter of fiscal year 2007, a jump of 36% from INR45 crore in
the previous corresponding period, the bank said in a press
release.

Operating profit also rose by 29% to INR233.70 from INR181 crore
in the first quarter of the previous financial year.

Interest income posted a growth of 22.18% during the same period
and it grew to INR1,223 crore from INR1,001 crore.  Total income
recorded a Year-on-Year growth of 23% during the quarter and
grew to INR1336 crore from INR1,084 crore.  Interest income from
advances registered an increase of INR204.36 crore with a higher
growth of 35.11%.  Non-interest income also increased by
INR23.26 crore, the growth rate being 34.44%.

Deposits increased from INR47,277 crore to INR55,595 crore
registering a growth of 17.60% year-on-year.  The growth rate in
Advances is more robust at 29.02%.  Advances increased from
INR28,687 crore as of June 30, 2005 to INR37,014 crore.

UCO BANK achieved a total business level of INR92,609 crore as
of June 30, 2006, as against INR75,964 crore as of June 30,
2005, recording a year-on-year growth of 21.91%.

The gross NPAs and net NPAs have come down in absolute terms
during the period from INR1,362 crore and INR836 crore to
INR1,267 crore and Rs.763 crore respectively.  The Gross NPA
Ratio declined to 3.42% as of June 30, 2006, as against 4.75% as
on June 30, 2005, The Net NPA Ratio is also down to 2.09% as of
June 30, 2006 from 2.95% a year ago.

The capital adequacy ratio improved to 11.91% compared to 10.53%
a year ago and is well above the minimum required level of 9%.
The bank raised capital by INR230 crore through the issue of
Innovative Perpetual Debt Instruments ranking for tier -I
capital and another amount of INR500 crore by issuance of bonds
ranking for upper tier -II Capital during the quarter ended
June 30, 2006.

During the quarter in review, the bank has also launched Core
Banking Solution at six branches.  The bank has targeted to
introduce CBS facility in 20 more branches by September 2006.
"Anywhere-Branch-Banking" has been introduced at 155 branches.

UCO Bank's financial report is available for free at:

   http://bankrupt.com/misc/tcrap_ucobank091506.pdf

                          About UCO Bank

UCO Bank Limited -- http://www.ucobank.in/-- is a commercial
bank that also operates in two international financial centers,
Hong Kong and Singapore.  It has approximately 2000 service
units spread all over India.  It undertakes foreign exchange
business in more than 50 centers in India.  The company also has
foreign exchange dealing operations at four centers.  It
caters to the segments of economy, such as agriculture,
industry, trade & commerce, service sector and infrastructure
sector.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
June 20, 2006, that Fitch Ratings upgraded UCO Bank's Individual
rating to 'D' from 'D/E'.  At the same time, Fitch affirms the
bank's support ratings at 4.  All ratings are with a stable
outlook.


UCO BANK: Nearly 10,000 Staff Face Layoff After Automation
----------------------------------------------------------
UCO Bank expects that 40% of its current staff will be rendered
redundant once all of its branches are automated and networked,
the Business Standard reports.

The bank has recently implemented a core banking solution, and
expects nearly 10,000 out of its more than 25,000 workers to be
laid off with in the next two to three years as the CBS system
gets completed.

As early as now, the bank is re-deploying the "excess"
workforce.  The staff that would become surplus would go through
re-orientations for undertaking sales and marketing
responsibilities, which are key to success of any universal bank
in a competitive market.  The Standard explains that the bank
took the first steps at tackling the issue of surplus staff with
the launch of a dedicated sales force for small enterprises and
businesses in Bangalore.  It plans to replicate this move in the
rest of the country over a period.

The major focus of the sales force will be on financing traders,
and small players in real estate.  The team will also mobilize
current accounts and sell insurance and MF products to
businessmen.

                          About UCO Bank

UCO Bank Limited -- http://www.ucobank.in/-- is a commercial
bank that also operates in two international financial centers,
Hong Kong and Singapore.  It has approximately 2000 service
units spread all over India.  It undertakes foreign exchange
business in more than 50 centers in India.  The company also has
foreign exchange dealing operations at four centers.  It
caters to the segments of economy, such as agriculture,
industry, trade & commerce, service sector and infrastructure
sector.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
June 20, 2006, that Fitch Ratings upgraded UCO Bank's Individual
rating to 'D' from 'D/E'.  At the same time, Fitch affirms the
bank's support ratings at 4. All ratings are with a stable
outlook.


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

BANK MANDIRI: Increases Number of Shares Via MSOP
-------------------------------------------------
PT Bank Mandiri increased the number of its shares through a
Management Stock Option Program at the Surabaya Stock Exchange
beginning September 14, 2006, Antara News reports, citing the
stock exchange's division head, Umi Kulsum.

According to the report, the MSOP raised the number of Bank
Mandiri shares by 379,909 to 20,107,737,342 at the Stock
Exchange.

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

                          *     *     *

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

A subsequent TCR-AP report on May 29, 2006, stated that Moody's
upgraded these ratings for Bank Mandiri Persero (P.T.), Cayman
Islands, under the revised foreign currency ceilings:

   -- Subordinated debt rating: to Ba3 from B1 with stable
      outlook; and

   -- Senior debt rating: to Ba3 from B1 with stable outlook.

A TCR-AP report on May 24, 2006, said that Fitch Ratings
affirmed Bank Mandiri's:

   * Long-term Foreign and Local Currency Issuer Default Ratings
     at 'BB-';

   * Short-term rating at 'B';

   * Individual rating at 'D'; and

   * Support rating at '4'.The outlook for the ratings is
     stable.


BANK NIAGA: Increases Shares Via Employee Stock Option Program
--------------------------------------------------------------
PT Bank Niaga Tbk increased the number of its shares at the
Surabaya Stock Exchange through an Employee Stock Option
Program, Antara News reports.

According to Antara, the number of Bank Niaga shares went up by
23,776,000 to 11,884,110,679 at the Stock Exchange.

                        About Bank Niaga

Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk --
http://www.bankniaga.com-- has a license to operate as a
commercial bank, a foreign exchange bank and a bank engaged in
activities based on Syariah principles.  The bank's products and
services include: Funding, Consumer Financing, Business
Financing, Credit and Debit Cards, Private Banking, Preferred
Circle, e-Banking, Corporate Trust, Bancassurance and Treasury
Indicator. The bank's subsidiaries consist of: PT Niaga Aset
Manajemen and PT Saseka Gelora Finance. As of January 31, 2006,
the Bank operates 54 domestic branches, 145 domestic supporting
branches, 22 domestic payment points, seven Syariah units and
one overseas branch.

                         *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
July 6, 2006, Moody's Investors Service has placed Bank Niaga's
E+ bank financial strength rating on review for possible
upgrade.

These ratings were unaffected:

   -- Issuer rating of Ba3. Outlook stable;

   -- Subordinated debt rating of Ba3. Outlook stable; and

   -- Long-term/short-term deposit ratings of B2/Not Prime.
      Outlook stable.

Additionally, Fitch Ratings on June 30, 2005 assigned a B+
rating to Bank Niaga's proposed USD100m, 10 year subordinated
debt issue.  At the same time, Fitch has affirmed the bank's
existing ratings including Long-term Senior foreign currency
rating of 'BB-' (BB minus), Individual rating of D, and Support
rating of 4. The Outlook remains Positive.


BANK RAKYAT: Increases Shares Via Stock Option Program
------------------------------------------------------
PT Bank Rakyat Indonesia multiplied its shares through a
Management Stock Option Program at the Surabaya Stock Exchange
beginning September 14, 2006, Antara News says, citing the stock
exchange's listing division head, Umi Kulsum.

The MSOP had raised the number of Bank Rakyat shares by 547,500
to 12,081,794,450 at the Surabaya Stock Exchange.

                  About Bank Rakyat Indonesia

Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- clients services
comprise Savings, Credits and Syariah.  In addition, the bank
divides its financial and business services into three groups:
Business Services, consisting of bank guarantees, bank
clearance, automatic teller machines and safe deposit boxes;
Financial Services, consisting of bill payments, CEPEBRI,
INKASO, deposit acceptance, online transactions and transfers,
and Other Services, consisting of tax and fine payments,
donations, Western Union and zakat contributions.  During the
year ended December 31, 2005, the bank had one branch office in
Cayman Islands and two representative offices in New York and
Hong Kong, respectively.

                         *     *     *

A Troubled Company Reporter - Asia Pacific report on May 24,
2006, stated that Fitch Ratings affirmed Bank Rakyat
Indonesia's:

   -- Long-term Foreign Currency Issuer Default Rating 'BB-';
   -- Short-term 'B';
   -- Individual 'C/D';
   -- Support '4'.

The outlook for the ratings is stable.

A subsequent TCR-AP report on July 6, 2006, indicated that
Moody's Investors Service has placed Bank Rakyat Indonesia's D-
bank financial strength rating on review for possible upgrade.
BRI's other ratings were unaffected:

   -- Subordinated debt of Ba3; and
   -- Long-term/short-term deposit ratings of B2/Not Prime.
      Outlook stable.


HM SAMPOERNA: Enters into Trademark License Pact with PM
--------------------------------------------------------
PT Hanjaya Mandala Sampoerna Tbk and Philip Morris Products SA
signed a Trademark License Agreement on September 11, 2006,
Antara News says, citing corporate secretary Suartini Harintho
as telling the Jakarta Stock Exchange.

According to the report, Sampoerna has licensed Philip Morris to
produce cigarettes both under direct and indirect agreements in
specific areas.

The agreement came into effect from Sept 11 indefinitely, Antara
notes.  It will cease to be effective when either of the parties
agree to end the contract.

The Troubled Company Reporter - Asia Pacific reported on May 20,
2005, that 97% of Indonesian cigarette maker Sampoerna has been
acquired by U.S. firm Philip Morris.

                   About Philip Morris

PT Philip Morris Indonesia is an affiliate of Philip Morris
International and was established in 1998 when PMI took over
full control of its production facilities in Malang, East Java.

PMI currently controls 14.5% of the global cigarette market
share and employs over 60,000 people worldwide.  PMI's brands
are made in more than 50 factories around the world and are sold
in more than 160 markets.

In 2005, PMI's cigarette production reached 43 billion pieces,
or 5.7%, to 804.5 billion pieces driven primarily by the
acquisition of Sampoerna and Coltabaco in Colombia, volume
growth across Eastern Europe and in Turkey, and a one time
inventory sale in Italy.

The acquisition of Sampoerna allowed PMI to become the majority
sharholder or 97.95% of one of Indonesia's leading cigarette
producing companies.

                      About HM Sampoerna

Surabaya, East Java-based PT Hanjaya Mandala Sampoerna Tbk --
http://www.sampoerna.com/-- manufactures hand rolled and
machine-rolled clove-blended cigarettes.  The company
distributes its products in the domestic and international
market.  Through its subsidiaries, the company also develops
properties.

Standard and Poors gave HM Sampoerna's Long Term Foreign Issuer
Credit a 'BB+' rating effective on November 3, 2005.


PERUSAHAAN GAS: To Drill in Sumatra to Find Gas in Coal Seams
-------------------------------------------------------------
PT Perusahaan Gas Negara is planning to drill as many as five
exploration wells in South Sumatra in 2007 to study the
possibility of extracting gas from coal seams, Bloomberg News
relates.

PGN aims to use the gas to secure supply in 2009 for pipelines
that will connect South Sumatra province to Java, where demand
for the fuel is rising, Bloomberg says, citing PGN President
Director W.M.P. Simandjuntak.

"We want to see whether the gas can be developed
economically," Mr. Simandjuntak said after signing an agreement
with the Musi Rawas regency government on the development of
coal-bed methane.

Bloomberg explains that factories and power stations in
Indonesia are shifting to gas due to the rise in global oil
prices.  The Indonesian Government, which is encouraging the use
of alternative energy sources, said that South Sumatra province
has an estimated 183 trillion cubic feet of coal-bed methane
reserves, of which 30% is located in the Musi Rawas area.

PGN plans to extract at least 200 million cubic feet
of gas from the coal seams once development is completed,
Mr. Simandjuntak said.

                    About Perusahaan Gas Negara

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

                          *     *     *

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

   -- Long-term foreign currency Issuer Default Rating 'BB-';

   -- Long-term local currency IDR 'BB-'; and

   -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due
      2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN
      and its subsidiaries 'BB-'.

Additionally, the TCR-AP said on May 23, 2006, that Moody's
Investors Service has upgraded the foreign currency debt rating
of PGN Euro Finance 2003 Ltd. and guaranteed by PT Perusahaan
Gas Negara to Ba3 from B1.  This rating action follows Moody's
decision to upgrade Indonesia's foreign currency sovereign
rating for bonds from B2 to B1.  At the same time, Moody's has
affirmed the Ba2 corporate family rating of PGN.  The rating
outlook is stable.

Standard & Poor's Rating Services had, on Nov. 24, 2005,
affirmed its 'B+' rating on PGN.


TELKOMSEL INDONESIA: Starts Offering 3G Service
-----------------------------------------------
PT Telekomunikasi Selular Indonesia has officially begun
offering first high-speed wireless service for mobile phones
following its successful trial operation in August, Xinhua News
reports, citing local press.

According to the report, the third-generation, or 3G, service
allows users to download video clips and surf the Internet on
their mobile phones at high speed.  Currently, the 3G service is
only available in Jakarta, The Jakarta Post notes.

Bambang Riadhy Oemar, PT Telkomsel's director for planning and
development, said that the cellular phone operator had "built
300 base transceiver stations in Jakarta to provide 3G service."

Telkomsel would soon expand coverage to other cities, including
Bandung in West Java, Surabaya in East Java and Medan in North
Sumatra, Mr. Bambang added.  He also said that Telkomsel would
increase the number of base transceiver stations to 600 by the
end of 2006 so as to be able to provide high-speed wireless
service in these cities.

Furthermore, Mr. Bambang stated that Telkomsel will invest about
IDR3 trillion to increase the number of base transceiver
stations to 3,000 within three years as it expands its 3G
coverage.

As many as 60,000 customers have registered for the service
since Telkomsel launched the trial operation, Mr. Bambang noted.

Xinhua relates that Telkomsel is one of five companies that won
licenses to operate 3G mobile telecommunications services in
Indonesia.  Aside from Telkomsel, the Government also awarded 3G
service operating rights to PT Indosat, PT Excelcomindo Pratama,
PT Natrindo Telepon Seluler and PT Hutchison CP
Telecommunications.

                         About Telkomsel

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

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

                          *     *     *

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

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

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


* Budget Deficit Will Be 1%-2% of GDP, Finance Minister Says
------------------------------------------------------------
Indonesia's budget deficit in 2006 will be around 1% to 2% of
its gross domestic product, Bloomberg News cites Finance
Minister Sri Mulyani Indrawati as saying.

Minister Mulyani said that growth is "picking up very fast" and
government spending in the second half is expected to be
healthy.  Indonesia expects growth of 6.3% in 2007, Minister
Mulyani adds.

Indonesia needs to boost spending after a doubling of fuel
prices and a surge in borrowing costs slowed consumer spending
in the nation.  Growth in the US$276 billion economy may slow to
5.2% this year from 5.6% in 2005, the IMF said in a report last
week.

                          *     *     *

As reported in the TCR-AP on July 27, 2006, Standard & Poor's
Ratings Service raised its long-term foreign currency rating for
Indonesia to 'BB-' from 'B+', and the long-term local currency
rating to 'BB+' from 'BB'.  S&P also affirmed the country's 'B'
short-term rating.


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

ASAHI LIFE: S&P Changes Outlook on BB Ratings to Positive
---------------------------------------------------------
Standard & Poor's Ratings Services, on September 15, 2006,
revised its outlook to positive from stable on its 'BB-' long-
term counterparty and financial strength ratings on Asahi Mutual
Life Insurance Co., reflecting the company's improving financial
profile, competitive position, and customer base.  The long-term
ratings were affirmed.

Asahi Life has adopted a new business model focusing on highly
profitable individual insurance, buoying its financial position.
The company's surrender and lapse ratio is on a declining trend,
indicating improvement in its customer base and competitive
stance in the market.

The insurer's latent profit on domestic stock holdings jumped to
JPY220.4 billion in fiscal 2005 (ended March 31, 2006) from
JPY14.1 billion a year earlier, due to a surge in stock prices.
The company's self-defined core capital -- excluding unrealized
gains on stock, plus contingency and price fluctuation reserves
-- also increased by JPY32.8 billion.  Asahi Life's
capitalization is improving at a moderate pace, but it is still
below an investment grade-level.

The company's new annualized premiums continued to fall in
fiscal 2005, albeit at a slower rate, declining 0.5%. Asahi Life
is putting a midterm focus on turning around its business in-
force, and its surrender and lapse ratio improved to 6.82% in
fiscal 2005 from 8.13% the previous year.  For the year, premium
income from new policies finally exceeded the income lost on
surrendered and lapsed policies.

As a mutual company, Asahi Life's access to capital markets is
limited.  As a result, the company will likely attempt to
strengthen its capitalization by retaining earnings and cutting
stock holdings to reduce investment risk.

The ratings may be raised if the insurer is able to maintain the
recovery trend in its market position and customer base while
continuing to accumulate retained earnings and reduce investment
risk.


DOANE PET: Posts US$5.4-Million Net Loss in April Quarter
---------------------------------------------------------
Doane Pet Care Company recorded a US$5,406,000 net loss for the
quarter ended April 1, 2006, versus a net income of US$7,176,000
earned during the same period in the prior fiscal year.

Net sales in the first quarter of fiscal 2006 decreased 11.0%,
or US$29.4 million, to US$237.7 million from US$267.1 million in
the first quarter of fiscal 2005.  The decrease in net sales was
primarily due to lower domestic sales volumes, including lower
promotional activity, the discontinuation of domestic non-
manufactured product distribution services, and unfavorable
foreign currency exchange rate fluctuations.

At April 1, the Company's balance sheet showed total assets of
US$1,106,822,000 and total liabilities of US$805,641,000.

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?c97

Headquartered in Brentwood, Tennessee, Doane Pet Care Company
-- http://www.doanepetcare.com/-- is the largest manufacturer
of   private label pet food and the second largest manufacturer
of dry pet food overall in the United States.  The company sells
to approximately 550 customers around the world and serves many
of the top pet food retailers in the United States, Europe and
Japan.  The company offers its customers a full range of pet
food products for both dogs and cats.

                          *     *     *

As reported in the Troubled Company Reporter on April 28, 2006,
Standard & Poor's Ratings Services placed its ratings on Doane
Pet Care Co. on CreditWatch with positive implications.  This
included the 'B+' corporate credit rating and other ratings on
the company.

Doane Pet's 10-5/8% Senior Subordinated Notes due 2015 carry
Moody's Investors Service's Caa1 rating.


KANA SOFTWARE: Files Registration Statement for Stock Sale
----------------------------------------------------------
KANA Software, Inc., filed with the United States Securities and
Exchange Commission on Sept 8, 2006, a registration statement on
Form S-1 relating to the offer and sale of up to 5,277,665
outstanding shares of the common stock and 2,393,233 shares of
common stock that may be issued on the exercise of outstanding
warrants by:

     * NightWatch Capital Partners, LP;
     * NightWatch Capital Partners II, LP; and
     * RHP Master Fund, Ltd.

including an additional 478,647 shares of common stock of which
may be issued on the exercise of the warrants that may be issued
upon the occurrence of an event of dilution resulting from stock
splits, stock dividends or similar transactions or change in the
exercise price by the selling stockholders.

KANA will not receive any of the proceeds from the sales by the
Selling Stockholders of the shares covered by the September 8
prospectus.  The Company will pay the expenses related to the
registration of the Shares covered by this prospectus.  The
Selling Stockholders will pay commissions and selling expenses,
if any, incurred by them.

As of Aug. 31, 2006, there were 34,517,637 shares of common
stock outstanding and issued, excluding shares exercisable under
warrants that KANA has issued.  The Shares offered in the
prospectus, represents 22.2% of the total outstanding and issued
shares of the Company's common stock as of Aug. 31, 2006,
excluding shares exercisable under warrants that the Company has
issued.

A full-text copy of the prospectus is available for free at:

                 http://researcharchives.com/t/s?11a0

                        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.


LIVEDOOR CO: Ex-CEO Says Horie Ordered Accounts Manipulation
------------------------------------------------------------
Former Livedoor Company Chief Financial Officer Ryoji Miyauchi
on September 15, 2006, appeared before the Tokyo District Court
to testify at Takafumi Horie's fifth hearing, Kyodo News
reports.

Mr. Horie -- Livedoor's former president -- and Mr. Miyauchi are
among the former Livedoor executives accused of tampering with
the company's financial statements for the year ended Sept. 30,
2004, and spreading false information on a subsidiary's takeover
of a publisher in October-November 2004 to raise the
subsidiary's stock price and corporate value, Kyodo says.

According to the report, Mr. Horie has pleaded not guilty to the
charges against him, while Mr. Miyauchi, who had admitted to the
charges against him and insisted that Mr. Horie played the
central role in the allegations.

Mr. Miyauchi told the court that Mr. Horie directed efforts to
falsify Livedoor's financial information, Bloomberg News
relates.

"There would have been no need to manipulate earnings without an
order from Horie, right?" Mr. Miyauchi said in an interview with
Bloomberg News.  "As I already testified at my trial, the
company didn't have to do it."

Mr. Horie's counsel, however, denied the charges, saying Horie
was not a "dictator of Livedoor" and he was on an equal footing
with Miyauchi within the company, Bloomberg says.

Mr. Miyauchi, a certified tax accountant, joined Livedoor's
predecessor, Livin' on the Edge, as a director in July 1999,
Kyodo News reports.  He was in charge of financial transaction
matters and expanded the corporate group through corporate
acquisitions.  He is scheduled to testify as a key witness for
the prosecution at Mr. Horie's trial through the ninth hearing
slated for Sept. 29.

As reported in the Troubled Company Reporter - Asia Pacific on
August 21, 2006, Mr. Horie's trial kicked off on Sept. 4.  The
court is slated to hold a total of 26 hearings by Nov. 28 in an
attempt to hand down a ruling before next March.

                          *     *     *

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

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

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


LIVEDOOR: Prosecutors Demand US$2.5-Million Fine
------------------------------------------------
Prosecutors are seeking US$2.5-million payment from Livedoor
Company for breaching securities laws by inflating stock prices
and doctoring company books, The Associated Press says.  The
prosecutors also demanded a US$425,000-fine against Livedoor
subsidiary Livedoor Marketing.

Prosecutors have argued that Livedoor executives used dubious
methods to buy up other companies, declare profits when there
were actually big losses, set up "dummy" companies and jack up
stock prices to raise the capital value of their corporate
group, AP says.

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

The TCR-AP further reported that Mr. Horie had pleaded not
guilty to the charges hurled against him.

Livedoor, on the other hand, did not fight the charges, and its
attorneys filed a guilty plea on behalf of the company.  Former
executive Ryoji Miyauchi has also hinted the company was in the
wrong, AP adds.

                         *     *     *

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

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

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


LOPRO CORP: Fitch Affirms BB and B Currency Ratings
---------------------------------------------------
Fitch Ratings, on September 14, 2006, affirmed Lopro
Corporation's 'BB' long-term foreign and local currency IDRs and
'B' short-term foreign and local current IDRs.  The Outlook for
the ratings is stable.

Fitch Ratings also affirmed the ratings of other Japanese non-
bank finance companies: Acom Co. Ltd., Aiful Corporation, Credit
Saison Co. Ltd, Lopro Corporation, Promise Co. Ltd. and Sanyo
Shinpan Finance Co. Ltd.

The other ratings and Outlook are:

Acom: Long-term foreign and local currency Issuer Default
ratings ("IDRs") 'A'/Stable Outlook, Short-term foreign and
local currency IDRs 'F1';

Aiful: Long-term foreign and local currency IDRs 'A-' (A minus)
/Negative Outlook, Short-term foreign and local currency IDRs
'F2'.

Credit Saison: Long-term foreign and local currency IDRs
'A'/Stable Outlook, Short-term foreign and local currency IDRs
'F1'

Promise: Long-term foreign and local currency IDRs 'A'/Negative
Outlook, Short-term foreign and local currency IDRs 'F1';

Sanyo Shinpan: Long-term foreign and local currency IDRs
'BBB+'/Negative Outlook, Short-term foreign and local currency
IDRs 'F2'.

This affirmation follows the publication of a draft memorandum
on the auditing policy by the Japanese Institute of Certified
Public Accountants, relating to the reserves for reimbursement
claims against excess interest payments.

JICPA published the draft memorandum on Sept. 13 for public
comments.  The draft proposes that from the interim period
ending this month, auditors require non-bank finance companies
to set up their reserves for reimbursement reflecting the actual
rate of reimbursement costs each posted in the past over the
estimated average length of their loans.  Such reserves were
first set for end-March 2006, when the JICPA recommended that
the reserves been equivalent to the estimation of such costs for
the coming year.

If the draft is to be adopted as it is, the non-bank finance
companies which have loan products with an interest rate in the
"grey zone" (i.e. an interest rate in excess of the Interest
Rate Restriction Law - "IRRL"- of between 15% and 20% depending
on the size of a loan) need to make provisions which can be
several times what they have made for the fiscal year ended
March 2006.  For example, pre-tax profits projected by Acom,
Aiful, Promise and Sanyo Shinpan in aggregate for the half year
ending September 2006 are slightly over twice such provisions
for FYE06.  Depending on their past losses and the average
length of loans in their portfolios, some of these companies may
post net losses for the interim period, although for the second
half year to end-March 2007, most, if not all, of the losses
will be covered by profits.

Fitch says that setting up conservative reserves is always
welcome, and believes that these companies will face limited
problems given their abundant capital.

The Money Lending Business Law is likely to be revised early
next year, and politicians are currently discussing how to
implement suggestions made by the council of the ruling Liberal
Democratic Party earlier this year.  The current 29.2% ceiling
is likely to be lowered to match the IRRL. But, timing for
actual implementation of the change and exceptional cases for a
higher rate, which are important factors influencing Fitch's
ratings, are as yet undecided.  The agency underscores however,
that the rating Outlook indicates the direction of Fitch's Long-
term IDRs for the next one to two years.

Fitch notes that the new, lower ceiling will force the consumer
finance companies to urgently overhaul their business models in
the meantime.  The agency will publish commentary on the likely
consequences from the revisions in the law and take any
necessary rating action, when the new provisions and schedule of
the changes are made clear.

                         *     *     *

Headquartered in Kyoto, Japan -- http://www.lopro.co.jp/--  
Lopro Corporation is involved in the provision of lending
services and commercial bills, as well as the leasing of real
estate.  It principally offers its services to small- and
medium-sized companies, as well as small-scale businesses.  Its
major products include commercial bill discounts, as well as
unsecured loans on notes and deeds.  As of April 1, 2006, the
Company merged with a consolidate subsidiary, which is primarily
engaged in the provision of credit assurance services.


SOFTBANK CORP: To Sell Hi-tech Handsets to Boost Sales
------------------------------------------------------
Softbank Corporation's wireless carrier, Vodafone K.K., will
introduce to the market this year new handsets equipped with
Microsoft Corporation's Windows Mobile operating system, The
China Post reports.

Vodafone K.K. and rivals NTT DoCoMo Inc. and KDDI Corp. are
introducing new mobile phones to keep and lure users after new
rules that allow subscribers to switch providers while keeping
their phone number.  Handsets that use Windows Mobile may
attract users who want a cell phone that links easily to their
personal computer, the Post relates.

The Troubled Company Reporter - Asia Pacific reported on
September 15, 2006, that Softbank Corporation has begun offering
an Apple Computer iPod nano packaged with one of its own mobile
phones in a bid to retain its 16% share in Japan's lucrative
mobile market.

According to the TCR-AP, 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 rolling out new services and products before a rule
change from October 24, 2006, that lets customers switch carrier
while keeping their numbers, the TCR-AP added.

                       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.


* August Corporate Failures Rise 3.8% on Month, 2.7% on Year
------------------------------------------------------------
The number of corporate bankruptcies in Japan rose 3.8% to 774
in August from 746 in July 2006, private credit research agency
Teikoku Databank reveals.  On year-over-year basis, the number
of bankruptcies increased 2.7% from 754 in August 2005.  In
July, bankruptcies increased 0.3% on month.

Liabilities left behind by insolvent companies rose 1.7% to
JPY360.93 billion in August 2006 from JPY354.84 billion in July,
and 10.0% from JPY328.05 billion in August last year.

Only five companies with liabilities of JPY10 billion or more
went bankrupt.  Large-scale bankruptcies remained low.  The
number of corporate failures of companies with liabilities of
JPY1 billion or more was 65, while bankruptcies of companies
with liabilities of JPY5 billion or more was 14.

Kanto, with 340 cases, up 14.9% year-on-year, reported the
highest number of corporate failures for the current year.
Bankruptcies in service industry and the wholesale industry
increased both from the last month and the corresponding period
last year.

According to Teikoku, the major cause of bankruptcy was
recession.  The number of recession-induced bankruptcies rose
4.8% to 584 from the same period a year earlier, contributing
75.5% to the total number of bankruptcies.


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

BALLY TOTAL: Approves Indemnification Agreement with Directors
--------------------------------------------------------------
Bally Total Fitness Holding Corp. approved on Sept. 8, 2006, an
Indemnification Agreement with members of the Board of Directors
of the Company.

The company will enter into Indemnification Agreements with the
following directors:

   -- Charles J. Burdick,
   -- Barry M. Deutsch,
   -- Barry R. Elson,
   -- Don R. Kornstein,
   -- Eric Langshur,
   -- Steven S. Rogers and
   -- John W. Rogers, Jr.

Under the Indemnification Agreements, Bally Total will be
obligated to indemnify each director in certain circumstances
and upon certain conditions against expenses, judgments, fines
and settlement amounts incurred by such director.  The
Indemnification Agreements also establish procedures and other
agreements pertaining to such obligations of the company.  The
Board also authorized the company to enter into a similar
agreement with its Senior Vice President, Secretary and General
Counsel, Marc D. Bassewitz.

                        About Bally Total

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
August 15, 2006 that Moody's Investors Service affirmed all the
credit ratings of Bally Total Fitness Holding Corporation.  The
rating outlook remains negative.


BALLY TOTAL: Shares Drop 17.5% After Posting Second Quarter Loss
----------------------------------------------------------------
Bally Total Fitness Holding Corp.'s shares fell 17.5% on Tuesday
last week after it reported a second-quarter 2006 loss due to
weaker membership sales and the possibility of defaulting on
debt payment, the Associated Press relates.

According to AP, Bally Total stock closed down 47 cents, at
US$2.22 on the New York Stock Exchange, dropping as much as
US$2.17.  The stock traded US$9.61 in May.  However, it has been
falling due to failure to sell the firm as well as questions
about its management.

AP states that Paul Toback, the former chairperson and chief
executive of Bally Total, resigned on Aug. 11.  He was replaced
by Don Kornstein -- who now acts as interim chairperson -- and
Barry Elson, who is the interim chief executive officer.  They
were two of the three board members who had successfully been
nominated by Pardus Capital Management LP, a shareholder of
Bally Total.

Mr. Kornstein told the press that Bally Total is focusing on
seeking capital after failing to complete a sale or merger on
favorable terms.

"The biggest issues facing Bally are its significant debt load
and the need to create financial flexibility for its
operations," AP says, citing Mr. Kornstein.

Bally disclosed that it has revised its second-quarter average
number of members to 3.598 million from the 3.581 million it
reported on Monday, AP states.

                        About Bally Total

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
August 15, 2006, that Moody's Investors Service affirmed all the
credit ratings of Bally Total Fitness Holding Corporation.  The
rating outlook remains negative.


* Two South Korean Cos. May Delist from U.S., Dow Jones Says
------------------------------------------------------------
Two South Korean companies may opt to delist from the United
States stock markets, Dow Jones reports, citing Jeong Yong-Won,
an officer at South Korea's Financial Supervisory Service.

According to Mr. Jeong, the two companies would consider removal
from the U.S. stock exchange if costs of maintaining their
listings will increase by more than half.  Mr. Jeong based the
information from a survey conducted by the FSS on U.S.-listed
South Korean companies.

Currently, Dow Jones notes, 15 South Korean companies on the New
York Stock Exchange and the Nasdaq.

Regardless of listing costs going up, the other companies will
maintain their listing as they see the advantage of being in the
list, Mr. Jeong told Dow Jones.

The New York Stock Exchange presently lists eight South Korean
Companies:

   1. Kookmin Bank (KB)
   2. Korea Electric Power Corporation (KEP)
   3. KT Corporation (KTC)
   4. LG.Philips LCD Co., Ltd. (LPL)
   5. POSCO (PKX)
   6. Shinhan Financial Group (SHG)
   7. SK Telecom Co., Ltd. (SKM)
   8. Woori Finance Holdings Co., Ltd. (WF)

To date, Nasdaq lists seven:

   1. Gmarket Inc. (GMKT)
   2. Gravity Co., Ltd. (GRVY)
   3. hanarotelecom incorporated (HANA)
   4. Mirae Corporation (MRAE)
   5. Pixelplus Co., Ltd. (PXPL)
   6. Webzen Inc. (WZEN)
   7. WiderThan Co., Ltd. (WTHN)


* 1st Half 2006 Disclosure Filings for Investment in Listed Cos.
----------------------------------------------------------------
For the first six months of 2006, 2,397 investors held 5% or
more equity interests in 1,624 listed companies (700 Stock
Market-listed and 924 KOSDAQ-listed) according to a press
release from South Korea's Financial Supervisory Service.

The FSS arrived at the information from its analysis of
disclosure filings for investment in listed companies.

During the same six-month period, the FSS noted two tender
offers and 122 proxy solicitations made.

The FSS analysis further revealed that during the 2nd Half:

   -- disclosures filed under the five-percent reporting rule
      totaled 4,157;

   -- by investment purpose, filings for exercising influence on
      the management totaled 1,609 (1,580 companies: 666 Stock
      Market-listed, 914 KOSDAQ-listed) as of the end of June
      2006;

   -- as with foreign investors, 307 (288 legal entities and 19
      individuals) held five percent or more equity interests
      in 505 listed companies, of which 242 were Stock Market-
      listed and 263 KOSDAQ-listed); and

   -- two tender offer filings involving Choong Nam Spinning
      Co., Ltd., were made during the first six months of the
      year.

There were no tender offers intended for enhancing management
control or going private during the period, the FSS adds.


* Insurance Cos. Improve Asset Quality in 2ndQ/FY2006, FSS Says
---------------------------------------------------------------
The asset quality of insurance companies show continued
improvement in the second quarter of 2006, the Financial
Supervisory Service states in its most recent weekly newsletter.

Pursuant to a quality analysis of assets including loans,
securities and receivables, the FSS determined that as of the
end of June 2006, bad assets -- classified as substandard or
below -- fell to KRW2.455 trillion from the KRW2.553 trillion in
the first quarter.

Securities accounted for a majority, or 61.2% of the assets
reviewed.  Cash, deposits and real properties are not included
in the asset quality analysis.

Out of securities totaling KRW181.8 trillion, KRW216.9 billion
were bad assets, down to 0.12% from 0.13% last March 2006.  The
decrease, according to the FSS, was mainly due to continuous
increases in low-risk investments like government and special
bonds.


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

DAI HWA: Ends Reorganization Plan; Bourse Delists Securities
------------------------------------------------------------
Bursa Securities had decided and informed Dai Hwa Holdings (M)
Berhad on February 10, 2006, that, given the fact that the
company had submitted its regularization plan to the relevant
authorities for approval, Bursa Securities would await the
outcome of the company's application to the relevant
authorities.

Dai Hwa announced on August 1, 2006, that the Securities
Commission had rejected its regularization plan.  Dai Hwa
further announced on August 29, 2006, that it has decided not to
appeal against the SC's decision.  It was also announced that
the restructuring agreements have been terminated and the
company would not proceed with the regularization plans.

In the circumstances and in accordance with Bursa Securities'
earlier decision, the securities of the company was removed from
the Official List of Bursa Securities on September 11, 2006.

                  About Dai Hwa Holdings

Headquartered in Johor, Malaysia, Dai Hwa Holdings (M) Berhad's
principal activity is investment holding.  The Company ceased
its entire operations on August 15, 2003, and remained dormant
since then.  The Company was subsequently classified under the
Bursa Malaysia Securities Berhad's Practice Note 10 category.
On November 18, 2006, Bursa Malaysia Securities Bhd delisted Dai
Hwa Holdings (M) Bhd since it failed to ensure its level of
operations is adequate.

On January 27, 2006, the Company submitted its revised
restructuring proposal to the Securities Commission for
approval.  In this regard, on February 10, 2006, the Bourse
decided not to commence the listing procedures against the
Company pending the outcome of the decision from the relevant
authorities on the Company's application of its regularization
plan.

Yet, Dai Hwa revealed on August 29, 2006, that it has decided to
terminate its restructuring agreements and not to proceed with
its regularization plans.  Thus, in the circumstances and in
accordance with Bursa Securities' earlier decision, the
securities of the company was removed from the Official List of
Bursa Securities on September 11, 2006.


KIG GLASS: Credit Default Amount Hits MYR79 Million
----------------------------------------------------
KIG Glass Industrial Berhad provides an update of the Company's
default status of principals and interests pursuant to Practice
Note 1/2001 of the Bursa Malaysia Securities Berhad's Listing
Requirements.

KIG Glass reports defaults, as of July 31, 2006, as totaling
MYR79,202,274.

More than MYR54 million of the total defaults represent amount
KIG Glass owes to Bumiputra Commerce Berhad:

                                            Total Principal and
   Type of Facility                         Interest in Default
   ----------------                         -------------------
   Bankers Acceptances                            MYR29,665,114
   Term Loans                                        20,714,515
   Trust Receipts                                        60,423
   Revolving Credit & Letter of Credit                1,879,418
   Overdraft                                          1,967,938
                                                  -------------
                                                  MYR54,287,408
                                                  =============

The defaulted payments of KIG Glass' subsidiary KIG Ceramics
Industrial Sdn. Bhd. also form part of the MYR79 million unpaid
balance.  As of July 31, 2006, KIG Ceramics is in default to
four banks for principal and interest totaling MYR24,914,866:

                                            Total Principal and
   Lender               Type of Facility    Interest in Default
   ------               ----------------    -------------------
   Bumiputra Commerce
   Bank Berhad          Term Loans                 MYR9,260,800
                        Overdraft                     1,164,267

   Overseas Union Bank
   Berhad               Overdraft                     3,250,276
                        Bankers Acceptance              736,000

   Bumiputra Commerce
   Bank (Labuan) Ltd.   Term Loan                     9,611,122

   RHB Bank Berhad      Overdraft                       892,401

As reported by the Troubled Company Reporter - Asia Pacific, KIG
Glass subsidiary Zibo Jiali Glass Industry Co. Ltd owes United
Overseas Bank Limited, China, USD1.4 million in term loan.  To
date, the updated figures for the term loan is not yet
available.  Zibo filed a voluntary winding-up application with
the Court in the People's Republic of China.

                    About KIG Glass Industrial

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

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

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


JIN LIN: High Court Approves Restructuring Proposals
----------------------------------------------------
The Malaya High Court approves Jin Lin Wood Industries Berhad's
proposed scheme of arrangement with shareholders and proposed
restructuring scheme of arrangement with creditors.

The approval, granted on September 8, 2006, also permitted the
reduction in the issued and paid-up share capital of Jin Lin
pursuant to the Proposed Scheme of Arrangement.

Jin Lin's shareholders have already given their nods to both
proposals at a court-convened meeting on August 25, 2006.

                           About Jin Lin

Headquartered in Kuala, Lumpur Malaysia, Jin Lin Wood Industries
Berhad is engaged in the manufacture and trade of timber and
related timber products.  The Company is also involved in
warehousing, chemical treatment, and investment holding.

As of June 30, 2006, the Company's balance sheet showed total
assets of MYR66,849,000 and total liabilities of MYR100,292,000,
resulting into a stockholders' deficit of MYR33,443,000.


MALAYSIA AIRLINES: Swampillai Takes Helm of Vietnam Operations
--------------------------------------------------------------
The outgoing manager of Malaysian Airlines in Vietnam, Sabarudin
Ismail, formally turned over his post to his successor Terence
Krish Swampillai at a dinner held September 14, 2006, The Saigon
Times reveals.

Mr. Ismail leaves after four years serving as head of Malaysia
Airlines in Vietnam to make room for Mr. Swampillai, who has
been working with the carrier for 16 years, the report says.

Meanwhile, Malaysia Airlines announced at the farewell and
welcome function the relaunching of its "Flights of Shopping"
program, during which passengers will be able to take advantage
of 15-20% discounts at all 'Eraman' retail outlets at Kuala
Lumpur, Kota Kinabalu, Kuching and Penang international
airports.  The period promotion is valid until end-March next
year and for Malaysian Airlines passengers who have purchased
tickets from the carrier in ASEAN countries.  The airline
achieved a big success for a similar three-month shopping
program two years ago, The Saigon Times says.

                     About Malaysia Airlines

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

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


MALAYSIA AIRLINES: Launches More Flights to Sabah and Sarawak
-------------------------------------------------------------
Malaysia Airlines is reinstating services on domestic non-trunk
routes in Sabah and Sarawak today, September 18, 2006, following
a government request for more flights in Sabah and Sarawak,
Bernama News reports.

The carrier will introduce two flights daily on the Kota
Kinabalu-Miri route as well as a daily flight on the Kuching-
Bintulu route, Bernama says.  Malaysia Airlines had stopped
flying the two routes after the implementation of its domestic
rationalization exercise on August 1, 2006, which trimmed the
carrier's domestic routes from 118 to 19.

Malaysia Airlines Managing Director and Chief Executive Officer
Idris Jala said the airline had earlier responded to the
government's call to reinstate flights on Johor Bahru-Kuching,
Penang-Langkawi, KL-Sandakan and KL-Tawau routes.

"We are happy to step in again to the needs of customers with
the much needed capacity and connectivity on the non-trunk
routes and also increase our frequencies on the trunk routes in
East Malaysia," Mr. Jala said.

Malaysia Airlines said it would mount additional daily frequency
between KK-Tawau and KK-Sandakan, bringing the total number of
flights on those routes to four a day while it would increase
Kuching-Miri return flights to three times a day.

The national carrier told Bernama it had deployed an additional
144-seater B737-400 aircraft which will be based in KK, in line
with the carrier's on going initiative to further develop the
Sabah state capital as one of its secondary hubs in Malaysia.
It would also increase flights on the KK-Labuan route to three
flights daily on Sept. 18 and up to four flights a day from
Oct.1.  It currently has a twice daily flight on the KK-Labuan
route.

                    About Malaysia Airlines

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

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


MALAYSIA AIRLINES: Foreign Carriers Doubt Ability to Meet Demand
----------------------------------------------------------------
Malaysia Airlines' failure to meet demand of the country's
tourism sector, especially in accommodating the needs of the
international market, was a major issue raised by several
foreign airlines at meetings with the Tourism Ministry on
September 15, 2006, Bernama News reveals.

Minister Datuk Seri Tengku Adnan Tengku Mansor told Bernama the
foreign airlines questioned the ministry's rationale in asking
for their cooperation to meet the increasing international
demand despite Malaysia having its own national airline.

He said the issue was the main topic raised by foreign airlines,
including Iran Air, at meetings he had with their
representatives to discuss the possibility of them introducing
or increasing flights from their respective countries to Kuala
Lumpur, Bernama relates.

"They asked why, if the demand is high, Malaysia did not get our
own airline to fly here," Mr. Tengku Adnan said.

Mr. Tengku Adnan added Malaysia Airlines' image would not be
affected despite its capability being questioned by the foreign
airlines.  He said he explained to the foreign airlines that
Malaysia Airlines was undergoing a revamp and implementing new
strategies to improve its operations, previously affected by
internal problems.

According to Bernama, the foreign airlines agreed to cooperate
with Malaysia and also hoped for reciprocal action from the
national carrier.

                    About Malaysia Airlines

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

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


POLYMATE HOLDINGS: Has Yet to Submit Fourth Quarter Report
----------------------------------------------------------
Polymate Holdings Berhad was still unable to submit its
financial report for the quarter ended June 30, 2006, by
September 8, 2006, as the company's management has determined
that further provisions and written-offs need to be made for its
subsidiaries.  The figures are now being finalized and are
expected to be significant.

The fourth quarter report is expected to be completed and
submitted to Bursa Securities by September 29, 2006.

                     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.


PROTON HOLDINGS: Shareholders Refuse to Re-elect One Director
-------------------------------------------------------------
Proton Holdings Berhad's shareholders passed all resolutions
tabled in the company's Third Annual General Meeting, which was
duly convened on September 8, 2006, except for the resolution
re-electing Lt. Gen (R) Dato' Seri Mohamed Daud bin Abu Bakar as
director.

                     About Proton Holdings

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

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

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


PROTON HOLDINGS: Subscribes Shares in Subsidiary Companies
----------------------------------------------------------
Proton Holdings Berhad, on September 7, 2006, subscribed to an
additional 255,000,000 Redeemable Convertible Preference Shares
of MYR0.10 each in Proton Marketing Sdn Bhd at an issue price of
MYR1 per RCPS for a total cash consideration of MYR255,000,000.

Proton Marketing on September 7, 2006, subscribed to an
additional 24,000,000 Redeemable Ordinary Shares of GBP each in
Proton Cars (UK) Limited, a wholly owned subsidiary of Proton
Marketing, for a total cash consideration of GBP24,000,000.

On the same date, Proton Marketing also subscribed to an
additional 32,100,000 shares of AUD1 each in Proton Cars
(Australia) Pty Limited by way of novation of debts vide a Deed
of Novation and Deed of Waiver both dated September 7, 2006,
between the parties.

The purpose of the subscription of shares was to facilitate the
recaplitalization and debt restructuring exercise of Proton Cars
Australia and Proton Cars (UK).

The subscriptions do not have an effect on the share capital and
shareholding structure of the Company, neither will it have an
effect on the net assets or earnings of the Group.

                     About Proton Holdings

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

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

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


TECHVENTURE BERHAD: Creditor Demands Payment from Unit
------------------------------------------------------
Techventure Berhad's wholly owned subsidiary, Kotak Kajang
Industries Sdn Bhd, has on September 8, 2006, received a notice
as principal debtor from Snapp Packaging (M) Sdn Bhd in respect
of an amount of MYR250,183 being balance outstanding sum for
goods sold and delivered.

Kotak Kajang will refer the matter to its solicitors for legal
counsel and if necessary, will negotiate with Snapp to resolve
the debt.

Further developments will be announced in due course.

                      About Techventure Bhd

Techventure Berhad is based in Selangor, Malaysia.  Apart from
being a corrugated cartons manufacturer, the Group is also
involved in the production of rubber insulation materials and
roto-molded plastic products like septic tanks, playground
equipment, traffic barriers, and water tanks.  It markets its
entire corrugated cartons and plastic products locally while
about 80% of the rubber insulation materials are exported.  In
addition, the Group also manufactures ice cream.

In June 2003, the Company proposed a debt-restructuring program
to its financial institution lenders to avoid liquidation.  In
May 2006, the Company was categorized under the Amended Practice
Note 17 category of the Bursa Malaysia Securities Berhad's
Listing Requirements.  As an affected listed issuer, the Company
is required to regularize its financial condition or risk being
delisted from the Official List of Companies.


TEXCHEM RESOURCES: Incorporates Chinese Subsidiary
--------------------------------------------------
Texchem Resources Berhad's wholly owned subsidiary, Texchem
Materials Sdn Bhd, recently received a Certificate of Approval
for the proposed incorporation of a wholly owned subsidiary in
Wuxi, the People's republic of China to be known as Texchem
Trading Company Limited, or such other name as may be  approved
by the relevant authorities in the People's Republic of China,
the Troubled Company Reporter - Asia Pacific reported on
April 7, 2006.

In an update, Texchem advised that it received on September 8,
2006, a business license from the Jiangsu Wuxi Industrial and
Commerce Administration Bureau for the incorporation of Texchem
Trading.

As such, Texchem Trading was incorporated and registered under
the laws of the People's Republic of China on September 7, 2006,
with the registered capital of CNY500,000, or around MYR230,950.

                    About Texchem Resources

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

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


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

BANK OF CEBU: PDIC Pays PHP79.5 Million to 2,283 Claimants
----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
September 14, 2006, the Philippine Deposit Insurance Corporation
has started servicing The Bank of Cebu depositors' claims for
insured deposits on September 8, 2006.

In an update, the PDIC has paid PHP79.5 million to 2,283
claimants and 2,085 accounts of the Bank of Cebu as of
September 15, 2006, Cebu News reports.

According to PDIC media relations chief, Carol Cagalingan, the
amount is increasing everyday because of the depositors'
continuous claims filing.

"We will proceed with the processing of claims unless there is
an order from the court for us to stop.  It's business as usual
everyday," Ms. Cagalingan notes.

      Former Bank Officials Refuses to Pay PHP50 Mln Loan

Bank of Cebu President Ephraim Cuadra Salcedo suspected that the
BSP examiners and PDIC officials are in cahoots with the Bank's
former officials who allegedly refused to pay their loans
totaling about PHP50 million, Cebu News relates.

The TCR-AP recently reported that on September 12, 2006, the
Bank filed a petition for certiorari before the Court of Appeals
in Cebu asking for a writ of temporary restraining order to
reopen the bank.

According to the TCR-AP, Bank of Cebu accuses the Bangko Sentral
ng Pilipinas and PDIC of grave abuse of discretion when they
closed the bank.

Ricardo Angeles, the representative of majority stockholder
Peninsula and Realty Assets, said he received reports that PDIC
officials took out documents taken out of the bank premises for
no valid reason, Cebu New says.

However, Ms. Cagalingan contends that if ever there are
documents taken out of the bank, these are related to claims and
payments to depositors, the paper further says.

          PDIC Took Over Employees' Retirement Funds

Ms. Cagalingan refuses to comment on Mr. Angeles' allegations
that PDIC took over the employees' retirement funds deposited
with Rizal Commercial Banking Corporation.  Ms. Cagalingan says
she will clarify the matter with Deputy Receiver Benefico
Magday, Cebu New relates.

The employees owned the fund, the report says.

PDIC's takeover of the bank has caused the families of the 108
employees, some of whom have already worked for 15 to 25 years
with the institution, to suffer financially, Mr. Angeles
asserts, adding that "they fired the employees in violation of
their rights."

However, Ms. Cagalingan explains that the dismissal was needed
to cut expenses to prevent the erosion of assets.

                          *     *     *

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


METROPOLITAN BANK: To Raise PHP6.15 Billion from Share Sale
----------------------------------------------------------------
Metropolitan Bank & Trust Co., expects to raise up to
PHP6.15 billion from its planned sale of primary shares.  The
proceeds of the sale will be used to boost its capital adequacy
ratio, Erik de la Cruz of Xinhua Financial News Service reports.

The Philippine Inquirer relates that Metrobank postponed the
plan to sell shares earlier this year due to unfavorable market
conditions.  But bank officials recently said it may be revived
within the year, the paper notes.

According to the report documents submitted by Metrobank to the
Securities and Exchange Commission, the planned sale assumes an
offering price of PHP36.43 per share, of which:

   * up to 252.5 million will be offered by the bank and other
     selling shareholders outside the Philippines; and

   * another 13.3 million will be made available by selling
     shareholders to local investors.

The final offer price would be within a range of plus or minus
10% of the 10-day weighted average price of the bank's share
price, the Inquirer says.

Metrobank disclosed that the proceeds would become part of its
Tier 1 capital and will improve its CAR, which stood at 18.4% at
the end of March, the Philippine Inquirer relates.

The paper explains that current regulations require banks
operating in the country to maintain a CAR of at least 10%,
noting that while this minimum CAR requirement is to be
maintained, the central bank has approved major methodological
revisions to the calculation of minimum capital that banks
should hold against actual credit risk exposures.

These revisions are consistent with new international standards
under the Basel II framework, which will take effect in 2007,
the Inquirer notes.

                        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.


MIRANT CORP: Four Groups Vie to Acquire Philippine Assets
---------------------------------------------------------
Four groups are vying to acquire the power generating assets of
Atlanta-based Mirant Corp. in the Philippines, Manila Standard
reports citing an unidentified source.

According to the report, the source named the interested parties
as:

   (1) Marubeni-Tokyo Electric-First Gen,
   (2) Korea Electric Power Corp./Chubu Electric,
   (3) One Energy with China Light and Power, and
   (4) Mitsubishi Corp., Mitsui/International Power Group

Mirant dropped investment companies Avenue Capital and Carlyle
Group from the list due to the absence of technical expertise as
well as operations and maintenance partners, Manila Standard
says, further citing the source, as saying.

"Mirant sets criteria and chose candidates from those that have
strong O&M track record for power facilities and those deemed to
be acceptable to Philippine government," the source said.

Credit Suisse, Mirant's financial advisor for the sale of its
shares in Mirant Philippines Inc., is set to shortlist the
potential bidders within the week, Manila Standard notes.

"They are eyeing to finalize the shortlist before end of this
weekend and correspondingly inform the bidders," the source
added.

                          About Mirant

Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally.  Mirant
Corporation filed for Chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590), and emerged under the terms of a
confirmed Second Amended Plan on Jan. 3, 2006.  Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.  When the Debtors filed for
protection from their creditors, they listed US$20,574,000,000
in assets and US$11,401,000,000 in debts.  The Debtors emerged
from bankruptcy on Jan. 3, 2006.

                          *     *     *

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

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

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

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

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

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


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

BIPL PTE: Creditors' Proofs of Debt Due on October 1
----------------------------------------------------
The creditors of BIPL Pte Ltd are required to submit their
proofs of debt by October 1, 2006, for them to share in the
company's dividend distribution.

The liquidator can be reached at:

         Wee Aik Guan
         c/o 6 Shenton Way #32-00
         DBS Building Tower Two
         Singapore 068809


GOLDHILL MANAGEMENT: Creditors Must Submit Claims by Oct. 6
-----------------------------------------------------------
Liquidator Goei Beng Kiong Alan will be receiving proofs of
claim from the creditors of Goldhill Management Services Private
Limited until October 6, 2006.

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

The Liquidator can be reached at:

         Goei Beng Kiong Alan
         1 Coleman Street #06-10
         The Adelphi
         Singapore 179803


JAPAN TRAVEL: To Declare Dividend to Creditors
----------------------------------------------
Japan Travel Bureau Asia Pte Ltd notifies parties-in-interest of
its intention to distribute dividend to creditors.

In this regard, creditors are required to submit their proofs of
claim until September 25, 2006, for them to share in the
dividend distribution.

The liquidator can be reached at:

         Lim Say Wan
         c/o 6 Shenton Way #32-00
         DBS Building Tower Two
         Singapore 068809


KUBOTA SUPPLIES: Creditors' Proofs of Claim Due on October 9
------------------------------------------------------------
The creditors of Kubota Supplies & Engineering (Asia) Pte Ltd
must prove their claim by October 9, 2006, for them to share in
the company's dividend distribution.

The liquidator can be reached at:

         Lau Chin Huat
         c/o Blk 150A
         Mei Chin Road #02-00
         Singapore 140150


REALCENTRE PTE: Members' Final Meeting Set on September 23
----------------------------------------------------------
Members of Realcentre Pte Ltd will hold a final meeting on
September 23, 2006, at 11:00 a.m., at 133 New Bridge Road in
#10-04 Chinatown Point, Singapore 059413.

At the meeting, the members will be asked to:

   -- receive a report on the company's wind-up
      proceedings from Liquidator Kuek Buck Hiong;

   -- hear the manner of the property disposal exercises; and

   -- direct  by special resolution the manner in which the
      books, accounts, documents of the company shall be
      disposed of.


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

NAKORNTHAI STRIP: Plan Administrators Gain 53.65% Combined Stake
----------------------------------------------------------------
Nakornthai Strip Mill Plc's rehabilitation plan administrator,
together with five partners, disclosed that they had obtained a
combined 53.65% shareholding in the company, the Bangkok Post
reports.

Maharaj Planner informed the Stock Exchange of Thailand that it
had increased its stake in Nakornthai Strip by 18.73% to 19.38%
on Sept 11, 2006.  On the same date, Great Western Ltd obtained
7.67%, Eastgate Ltd 6.7%, Newhaven Ltd 5.78%, Bethlehem
International Ltd 8.87% (in addition to the 8.88% already held),
and New Eagle Securities Ltd 5.9%.

In related development, the Post says that, according to G Steel
Plc on September 14, 2006, it had sold 1.4 billion capital-
increase shares to creditors of Nakornthai Strip in exchange for
US$60 million worth of secured receivables convertible into
common shares of NSM at THB1.51 each.

The buyers are Rochelle Finance Ltd (500.58 million shares),
Eastgate Ltd (179.91 million), Great Western Ltd (271.24
million), Newhaven Ltd (177.73 million), Bethlehem International
Ltd (223.73 million), and On City Holdings Ltd (41.79 million
shares).

                          About G Steel

G Steel Public Company Ltd, headquartered in Bangkok, produces
hot rolled coils (HRC) in different grades and gauges.  G Steel
is a stand-alone operating entity with no related group
companies.

Standard & Poor's Ratings Services on June 27, 2006, placed its
ratings on Thailand's G Steel Public Co. Ltd., including the B+
corporate credit rating, on CreditWatch with negative
implications.

On June 27, 2006, Moody's Rating Agency announced that it had
placed the B1 corporate family rating and senior unsecured bond
rating of G Steel Public Company Limited on review for possible
downgrade.

This rating action follows G Steel's announcement it will
purchase approximately US$180 million in convertible bonds
issued by Nakornthai Strip Mill PLC.

                      About Nakornthai Strip

Nakornthai Strip Mill Public Company Limited is a Thailand-based
manufacturing company.  The Group's principal activities are
manufacturing and selling of hot-rolled coil steel.  These
products can be used in downstream industries such as structural
steel industry, container industry, steel pipe industry and gas
tank industry.

The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Nakornthai has announced a recapitalization plan
involving THB4 billion in debt restructuring to ensure a US$50-
75 million credit line for working capital.


* Bad Loans Soar in 2006 Second Quarter, BOT Says
-------------------------------------------------
Manufacturing, commerce and personal-consumption sectors
experienced a significant increase in non-performing loans in
the second quarter of 2006, the Bangkok Post relates citing
reports from the Bank of Thailand.

Based on BoT's report, NPLs in the manufacturing sector rose by
THB29 billion from the previous quarter, the biggest increase in
all sectors.  Re-entry NPLs accounted for THBB11.7 billion.  Bad
loans increased by only THB16.1 billion in the first quarter.

In the second quarter, the manufacturing sector restructured
some debts and transferred others to asset-management companies.
This accounted for THB15.2 billion of NPLs, lower than the
THB22.5 billion in the first quarter.

NPLs in the manufacturing sector rose by 7.3% from the first
quarter to THB157.4 billion, accelerating the 2.5% growth of
overall NPLs.

Manufacturing NPLs accounted for almost 10% of total loans,
compared with 9.5% in the previous quarter.  In terms of total
NPLs, the sector represented 32.5%, up from 31%.

Meanwhile, NPLs in financial institutions jumped in the second
quarter by THB71.7 billion, of which THBB42.2 billion were new
NPLs.  After restructuring, bad loans dropped by
THBB58.4 billion, leaving the net increase in NPLs at
THB13.3 billion.

Krirk Vanikkul, BOT assistant governor, said the increase in
NPLs was due to the economy being in the doldrums, however debt
restructuring, and transfers had helped the situation.

A central bank source said rising interest rates, oil-price
hikes and the economic slowdown were reasons for the
acceleration of NPLs.  The slowdown in the global economy also
caused foreign debtors difficulties in paying their loans.

The commerce sector also saw its bad loans rise by
THB13.4 billion in the second quarter, up from THB11.2 billion.
But it succeeded in restructuring loans of THB12.3 billion,
higher than the THB9.9 billion of the previous quarter.

In the commerce sector, NPL's amounted to THB89.6 billion, up
0.6%.  Its NPLs accounted for 9.1% of total loans, down from
9.2%.

NPLs in the personal-consumption sector also increased by
THB10.7 billion, most were new NPLs.  Bad loans rose by THB9.9
billion in the first quarter, restructuring and transfers,
however accounted for THB9.6 billion of NPLs in the sector, up
from THB7.9 billion.  The sector's net NPLs in the second
quarter rose by THB1.1 billion.

The sector's total NPLs were THB67.8 billion in the second
quarter, or 6% of total loans, up from 5.98% in the previous
quarter.


                            *********

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.  Nolie Christy Alaba, Valerie Udtuhan, Francis
Chicano, Catherine Gutib, Tara Eliza Tecarro, Reiza Dejito, Freya Natasha
Fernandez, and Peter A. Chapman, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

TCR-AP subscription rate is $575 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are $25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.

                 *** End of Transmission ***