TCRAP_Public/061002.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, October 2, 2006, Vol. 9, No. 195

                           Headlines

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

3B CAPITAL: To Declare Third Dividend on October 13
A1 HOUSE REMOVALS: Faces Liquidation Proceedings
ABSOLUTE TRANSPORT: Creditors Decide to Close Business
ARGENTINO TUININGA: Creditors' Proofs of Debt Due on October 3
AUTUMN LODGE: Creditors to Prove Claims on October 9

AWB LIMITED: To Protect Entitlements for Wheat Growers
BENTLEYS GIPPSLAND: To Declare Third Dividend on October 13
BIG RED CAR: Court Sets Date to Hear Liquidation Petition
BRAYBROS GRAZING: Liquidator to Present Wind-Up Report
BRG PARTNERS: Creditors' Proofs of Claim Due on October 3

CARRBROOK INVESTMENTS: Creditors to Prove Debts on October 9
CATLEY PARTNERS: Names Parsons and Kenealy as Liquidators
CONSTELLATION BRANDS: Posts US$1.2 Bil. in Sales in 1st Quarter
CONSTELLATION BRANDS: Agrees on Joint Venture with Grupo Modelo
CONSTELLATION BRANDS: Moody's Rates US$500 Mln Sr. Notes at Ba2

CORDOBA INVESTMENTS: Supreme Court Issues Wind-Up Order
E-CLIPS INTELLIGENT: Members Resolve to Wind-Up Operations
FEBIS LTD: Creditors Must Prove Debts by October 10
FELTEX CARPETS: Receives Godfrey Hirst's Unconditional Offer
FIRST CITY: Hearing of Liquidation Bid Fixed on Nov. 30

GIARRE PTY: Members Resolve to Close Business
INNES APPAREL: Liquidation Bid Hearing Slated for Oct. 6
KENTIA OPERATIONS: Members Opt to Wind-Up Operations
KOOKABURRA DEVELOPMENTS: Commences Wind-Up Proceedings
KPF INDUSTRIES: Court Appoints Joint Liquidators

MAIDIT INVESTMENTS: Members to Hear Wind-Up Report on October 17
MITCHELL-MOORE: Members Pass Resolution to Wind Up Operations
NPS CONTRACTING: Commences Wind Up of Operations
NYLEX LIMITED: Posts AU$13.144 Mln Profit for FY Ended June 30
PRIMELIFE CORPORATION: Enters Babcock & Brown 2nd Joint Venture

PRIMELIFE CORPORATION: Appoints J. Martin as Managing Director
REGENCY PROJECTS: Names Erskine and Goodin as Liquidators
ROYALE ENTERPRISES: Final Meeting Scheduled on October 17
SALACIOUS SOLUTIONS: Placed Under Members' Voluntary Wind-Up
SEAVIEW BOATS: Faces City Council's Liquidation Bid

ST GEORGE EQUITY: Enters Wind-Up Proceedings
ST GEORGE HCAL: Members Opt for Voluntary Wind-Up
ST GEORGE HOME: Members Decide to Wind Up Operations
ST GEORGE WHOLESALE: Members Agree on Voluntary Liquidation
STOCKFORD BILLERWELL: To Declare Third Dividend on October 13

STOCKFORD (KOVAC PARTNERS): Creditors Must Prove Debts by Oct. 3
STOCKFORD (LOVETT): Set to Declare Third Dividend on October 13
STOCKFORD (SMITH-ESP): Prepares to Declare Third Dividend
TIGER SPORTS: Creditors' Proofs of Claim Due on October 30
TREADSTONE PTY: Faces Wind-Up Proceedings

TRANSAX INT'L: Retains North Bay Equity as Financial Advisor
VALLEY PARK: Liquidator Wilson to Give Wind-Up Report
VALPAR PTY: Members' Final Meeting Set on October 17
WALLACES FURNITURE: Members to Receive Wind-Up Report
WALLIS HOLDINGS NO1: Members to Meet on October 17

WALLIS HOLDINGS NO3: Members to Hold Final Meeting
WILLIAM NAIRN: Members' Final Meeting Slated for October 15
* S&P to Look at New Zealand's Rating But Waits for Gov't Plans


C H I N A   &   H O N G  K O N G

ALLSON INTERNATIONAL: Members to Meet on October 27
AMS SERVICES: Members' Final Meeting Fixed on October 26
ASC CAPITAL: Final Members Meeting Set on October 26
BENQ CORP: Mulls Insolvency Filing for German Mobile Subsidiary
CHINA SOUTHERN: Mulls on Raising Surcharges up to 60%

DAIMLERCHRYSLER: In Talks with Chery Auto for Car-Making Deal
EPA LTD: Court Issues Wind-Up Order
HAFA ADAI: Final Meetings Slated for October 23
HARTCOURT COMPANIES: Amends 2003 Report to Account for Purchases
HK INTERNATIONAL MOVERS': Members' Meeting Slated for Oct. 25

HUTCHISON SIX: Joint Liquidators Step Aside
HUTCHISON THREE: Liquidators Ceased to Act for the Company
IAC BANK: In Talks to Acquire Indonesia's Bank Halim
LONGWILL ENGINEERING: Receive Wind-Up Order from Court
MATRIX INDUSTRIES: Liquidators Cease to Act for the Company

MAX BRIDGE: Court to Hear Wind-Up Bid on Oct. 18
MOKLEE LTD: Members Set to Meet on October 23
NEW CHINA ASSET: Members and Creditors to Hold Annual Meeting
NEW CHINA TRADING: Annual General Meeting Set on October 10
NEWSON CONSTRUCTION: Faces Wind-Up Proceedings

ORIENT POWER: Court Favors Wind-Up
PANVA GAS: Moody's Changes Ba2 Ratings' Outlook to Negative
THE JUNGLE: Wind-Up Bid Hearing Set on November 1
UNITED FUND: Members to Hear Wind-Up Report
VIEWELL ASIA: Liquidator to Present Wind-Up Report

W.L.Y. Enterprises: Court to Hear Wind-Up Petition on Nov. 1
* Fitch Says Credit Card Lending Crisis to Drive ABS Market
* Health Ministry Requires Internal Auditing in Big Hospitals


I N D I A

EXIM BANK: Signs INR10-Million Line of Credit to Mauritius
EXIM BANK: Finalizes US$17-Million LoC to Nigerian Government
GENERAL MOTORS: Top Investor Presses for Renault-Nissan Tie-Up
GULFMARK OFFSHORE: Moody's Assigns Loss-Given-Default Rating
INDUSIND BANK: Fitch Affirms 'D' Individual Rating

KOTAK MAHINDRA: Board OKs Demerging Pursuant to Restructuring
KOTAK MAHINDRA: Acquires 51% Paid-Up Capital of KMSL
KOTAK MAHINDRA: Allots 26,152 Equity Shares under ESOP
TATA POWER: Maithon Power Starts Work on 1000-MW Plant
TATA POWER: Adds Nawshir Mirza to Board of Directors

UNITED WESTERN: Posts INR146.4-Mil Loss for 2nd Quarter 2006


I N D O N E S I A

BANK DANAMON: Plans to Issue Rupiah Bonds Early Next Year
DIRECTED ELECTRONICS: Polk Merger Plan Cues S&P's Negative Watch
DIRECTED ELECTRONICS: Completes Acquisition of Polk Audio
HANOVER COMPRESSOR: Moody's Assigns Loss-Given-Default Rating
MATAHARI PUTRA: S&P Affirms B+ Rating to Senior Unsecured Bonds

TUPPERWARE BRANDS: Moody's Assigns Loss-Given-Default Ratings


J A P A N

ALL NIPPON: Announces Corporate Plan Changes
BORGWARNER CAPITAL: Moody's Rates Preferred Shelf (P)Ba1
DAIEI INC: Wants to Sell OPA to Hasten Debt Repayment
FORD MOTOR: Cuts 2,000 Salaried Worker Positions to Reduce Costs
JAPAN AIRLINES: Averts Weekend Strike by Reaching Pilot Deal

JAPAN AIRLINES: Moody's Affirms Units' Ba3 Ratings
KOBE STEEL: S&P Raises Corporate Credit Rating To BBB- From BB
NORINCHUKIN BANK: Releases Term Sheet for Bonds Issue
SAMSONITE CORP: Moody's Assigns Loss-Given-Default Ratings
SOFTBANK CORP: Launching New Phones & Services to Counter Rivals

SUMITOMO METALS: S&P Upgrades Credit Rating To 'BBB-' From 'BB'
TOSHIBA MACHINE: Moody's Ups Rating to Baa2 from Ba1


K O R E A

DAEWOO CORPORATION: Court to Hear Chapter 15 Petition on Oct. 20
LG TELECOM: New Interconnection Fees Could Plunge Profits
SC FIRST BANK: Parent Allegedly In Breach of FSS Rules
TRIGEM COMPUTER: Agrees to Modify Chapter 15 Stay for Gateway
TRIGEM COMPUTER: Disposes Stake In ePlatform

* FSC to Ease Rules on Domestic Sale of Foreign Funds


M A L A Y S I A

AKTIF LIFESTYLE: Wants More Time to Regularize Financial State
MENTIGA CORPORATION: Completes Corporate Exercises
PAN MALAYSIA: Buys Back 55,000 Ordinary Shares for MYR16,232
POLYMATE HOLDINGS: ASIC Approves Deregistration of Subsidiaries
PSC INDUSTRIES: Tetuan Thanggaya Serves Writ of Summons

WEMBLEY INDUSTRIES: Appeal SC's Rejection of Extension Request


P H I L I P P I N E S

ARANETA PROPERTIES: Resets ASM to October 27, 2006
EQUITABLE PCI: SM Tender Offer Generates 51% of Shares
MIRANT CORP: Sale Agreement to Include 2.5 Months Severance Pay
SAN MIGUEL: Elects S. Bello as Director
* Analysts Anticipate Philippine Ratings Upgrade


S I N G A P O R E

AFFYMETRIX INC: Estimates Restructuring to Cost US$15-19 Million
AVAGO TECHNOLOGIES: Moody's Affirms B2 to Sr. Unsecured Debt
EXABYTE CORPORATION: Enters Into Material Definitive Agreement
GETRONICS NV: Sells Majority of Stake to APX Synstar
HIAP HENG CHNG: Creditors' Meeting Slated for October 17

HEXION SPECIALTY: Division Declares Force Majeure
INFOCOMMCENTRE PTE: Subjected to Wind-Up Petition by OCBC
LEAR CORP: Production Cuts to Lower 2006 Net Sales by US$300 Mln
MILLENNIUM-WESTMONT: Pays Third Interim Dividend to Creditors
NHJ (SINGAPORE): Pays First and Final Dividend

PETROLEO BRASILEIRO: Acquires 50% of Pasadena for US$360 Million
REFCO INC: Clarifies Trigger Date for Settlement with Lenders
SEAGATE TECHNOLOGY: To Invest SGD1.3 Billion for Another Plant


T H A I L A N D

BANGKOK STEEL: Posts THB654.70 Mil. Net Loss in 1st Half '06
BANK OF AYUDHYA: Delays THB22-Billion Share Sale to GE

     - - - - - - - -

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

3B CAPITAL: To Declare Third Dividend on October 13
---------------------------------------------------
Deed Administrator Mark A. Korda will declare the third dividend
for the creditors of 3B Capital Investments Pty Ltd on
October 13, 2006.

Creditors unable to prove their claims by October 3, 2006, will
be excluded from the distribution.

The Deed Administrator can be reached at:

         Mark A. Korda
         KordaMentha
         Level 24, 333 Collins Street
         Melbourne, Victoria 3000
         Australia


A1 HOUSE REMOVALS: Faces Liquidation Proceedings
------------------------------------------------
A liquidation petition filed against A1 House Removals Ltd will
be heard before the High Court of Napier on October 5, 2006, at
10:00 a.m.

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

The Solicitor for the Petitioner can be reached at:

         R. J. Collins
         Elvidge & Partners, Solicitors
         Corner of Raffles and Bower Streets
         Napier, New Zealand


ABSOLUTE TRANSPORT: Creditors Decide to Close Business
------------------------------------------------------
On September 8, 2006, creditors of Absolute Transport Pty Ltd
decided to close the company's business.

Accordingly, B. J. Marchesi was appointed as liquidator.

The Liquidator can be reached at:

         B. J. Marchesi
         Bent & Cougle Pty Ltd
         Chartered Accountants
         Level 5, 332 St Kilda Road
         Melbourne, Victoria 3004
         Australia


ARGENTINO TUININGA: Creditors' Proofs of Debt Due on October 3
--------------------------------------------------------------
Argentino Tuininga Pty Ltd, will declare the third dividend for
its creditors on October 13, 2006.

To be included in the company's distribution of dividend,
creditors must submit proofs of debt by October 3, 2006.

The Deed Administrator can be reached at:

         Mark A. Korda
         KordaMentha
         Level 24, 333 Collins Street
         Melbourne, Victoria 3000
         Australia


AUTUMN LODGE: Creditors to Prove Claims on October 9
----------------------------------------------------
On September 8, 2006, Karen Betty Mason and Lloyd James Hayward
were appointed as joint and several liquidators in the
liquidation of Autumn Lodge Care Ltd.

In this regard, the Liquidators require company creditors to
submit their proofs of claim by October 9, 2006, or be excluded
from the benefit of any distribution the Company will make.

The Liquidators can be reached at:

         Lloyd James Hayward
         Karen Betty Mason
         Meltzer Mason Heath
         Chartered Accountants
         P.O. Box 6302, Wellesley Street
         Auckland 1141
         New Zealand
         Telephone:(09) 357 6150
         Facsimile:(09) 357 6152


AWB LIMITED: To Protect Entitlements for Wheat Growers
------------------------------------------------------
AWB Limited will protect pool entitlements of wheat growers from
legal costs arising from the Cole Inquiry and any tax, which
might be assessed against AWB International in connection with
inland transportation fees paid for pool wheat sold to Iraq.

AWB Limited Chairman, Brendan Stewart, states that the Boards of
AWB Ltd and AWB International had been actively working on this
issue for a number of months and the initiatives were taken to
reassure growers about the delivery wheat to the 2006-2007 pool.

"This move means growers can deliver to the National Pool
confident that their entitlements will not be reduced by the
amount of these legal costs or income tax liability," Mr.
Stewart says.

The AWB Ltd Board has considered all its constitutional and
legal obligations.  Accordingly, the Board decided that to
provide absolute confidence to growers, AWB will pay:

   * the legal costs of AWB International arising from the Cole
     Inquiry; and

   * the costs of contesting any ATO assessment and any
     outstanding tax which may be liable in connection with
     inland transportation fees for wheat sold to Iraq.

As reported in the Troubled Company Reporter - Asia Pacific on
September 28, 2006, lawyers for AWB sought costs from the
commonwealth for the Federal Court case.  However, Justice Neil
Young ruled that each party should cover its own costs, the TCR-
AP said.

In addition, AWB Ltd Directors support a proposal that AWB
International operate future pools as separate trusts for each
season to better ensure that growers who deliver wheat to a
season's pool are not at risk of competing for payments with
creditors of another season's pool.

These measures are to protect growers and the business of the
AWB Group, the company explains.

However, they are not an admission by AWB Ltd that any of these
costs or taxes are payable by the AWB Group.  AWB Ltd expressly
reserves its rights to seek compensation for legal costs and to
contest any potential tax assessments.

Mr. Stewart further says that the purported class actions were
ill-conceived, and that if any actions were formally moved
against the company, they would be vigorously defended.

                        About AWB

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

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

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

                          *     *     *

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

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

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


BENTLEYS GIPPSLAND: To Declare Third Dividend on October 13
-----------------------------------------------------------
Bentleys Gippsland Pty Ltd will declare the third dividend for
its creditors on October 13, 2006.

Creditors who are unable to prove their claims by October 3,
2006, will be excluded from the distribution.

The Deed Administrator can be reached at:

         Mark A. Korda
         KordaMentha
         Level 24, 333 Collins Street
         Melbourne, Victoria 3000
         Australia


BIG RED CAR: Court Sets Date to Hear Liquidation Petition
---------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
filed against Big Red Car Ltd on November 30, 2006, at 10:00
a.m.

Westpac Banking Corp filed the petition on August 16, 2006.

The Solicitor for the Plaintiff can be reached at:

         G. M. Sandelin
         Offices of Minter Ellison Rudd Watts, Solicitors
         Level Twenty, Lumley Centre
         88 Shortland Street
         (P.O. Box 3798 or D.X. C.P. 24-061)
         Auckland, New Zealand


BRAYBROS GRAZING: Liquidator to Present Wind-Up Report
------------------------------------------------------
Members of Braybros Grazing Company Pty Ltd will convene on
October 15, 2006, to hear the accounts of the company's wind-up
proceedings from Liquidator Garry Stanley Buswell.

According to the Troubled Company Reporter - Asia Pacific, the
Company commenced a wind-up of its operations on March 10, 2006.

The Liquidator can be reached at:

         Garry Stanley Buswell
         Royal Cornell & Co Pty
         4th Floor, 14-16 Victoria Avenue
         0Perth
         Western Australia 6000
         Australia


BRG PARTNERS: Creditors' Proofs of Claim Due on October 3
---------------------------------------------------------
A third dividend will be declared for the creditors of BRG
Partners Pty Ltd on October 13, 2006.

Creditors are then required to prove their claims by October 3,
2006, to be included in any distribution the Company will make.

The Deed Administrator can be reached at:

         Mark A. Korda
         KordaMentha
         Level 24, 333 Collins Street
         Melbourne, Victoria 3000
         Australia


CARRBROOK INVESTMENTS: Creditors to Prove Debts on October 9
------------------------------------------------------------
On September 8, 2006, shareholders of Carrbrook Investments Ltd
appointed Karen Betty Mason and Lloyd James Hayward as the
company's joint and several liquidators.

The Joint Liquidators subsequently required the company's
creditors to prove their debts by October 9, 2006, for them to
share in the benefit of the distribution.

The Liquidators can be reached at:

         Lloyd James Hayward
         Karen Betty Mason
         Meltzer Mason Heath
         Chartered Accountants
         P.O. Box 6302, Wellesley Street
         Auckland 1141
         New Zealand
         Telephone:(09) 357 6150
         Facsimile:(09) 357 6152


CATLEY PARTNERS: Names Parsons and Kenealy as Liquidators
---------------------------------------------------------
On September 14, 2006, Dennis Clifford Parsons and Katherine
Louise Kenealy were appointed as joint and several liquidators
in the liquidation of Catley Partners Ltd.

The Joint Liquidators can be reached at:

         D. C. Parsons
         Indepth Forensic Limited
         Insolvency Practitioners
         P.O. Box 278, Hamilton
         New Zealand
         Telephone: (07) 957 8674
         Facsimile: (07) 957 8677


CONSTELLATION BRANDS: Posts US$1.2 Bil. in Sales in 1st Quarter
---------------------------------------------------------------
Constellation Brands, Inc., reported first quarter net sales of
US$1.2 billion for the quarter ended May 31, 2006, up 5% over
prior year, or 7% on a constant currency basis.  Branded
business net sales grew eight percent, or nine percent on a
constant currency basis, driven by imported beers and branded
wine in North America.

"We sprinted out of the starting gate this year with solid
performance in our branded businesses," said Richard Sands,
Constellation Brands chairman and chief executive officer.
"These results demonstrate the strength of our unsurpassed
portfolio breadth, geographic diversity, distribution scale and
innovation," continued Mr. Sands.  "With Vincor joining the
Constellation family, Canada becomes our fifth core market and
one which complements our existing geographic diversity while
providing additional growth potential from a very stable and
profitable market."

                      Net Sales Commentary

Double-digit net sales growth of branded wine for North America,
primarily in the U.S., drove an overall 6% increase in branded
wine net sales on a constant currency basis.

"We're meeting consumer wine expectations around the world
through a combination of new product introductions, innovations
in wine and packaging and line and varietal extensions resulting
from our extensive base of consumer, distributor and retailer
insights," stated Mr. Sands.  "Recently introduced wines
including Twin Fin, Monkey Bay, Four Emus and 3 blind moose,
have captured the
imagination and sense of adventure within consumers and
illustrate a desire on their part to try new and different wines
with brand appeal, while varietal extensions such as Woodbridge
Pinot Noir allow us to build on the momentum and strength of
established brands to satisfy consumer demand for a greater
variety of wines from around the world."

Net sales of branded wine for Europe and for Australia/New
Zealand declined in the first quarter.  Constellation is
leveraging its strong leadership position in these markets to
grow market share over the long-term and is focusing on
opportunities to maximize profitability.

Net sales of the company's wholesale and other business
increased slightly on a constant currency basis, including a
slight increase in U.K. wholesale net sales.

The double-digit increase in imported beers net sales is
primarily due to volume growth across Constellation's Mexican
beer portfolio, reflecting continued robust consumer demand and
strong
shipments in advance of the key summer selling season.  "The
import and craft beer businesses continue to be industry growth
drivers in the U.S.," stated Mr. Sands.  "We have the right
brands, in the right market, at the right time to maximize
future growth potential."

Total spirits net sales decreased three percent for the first
quarter.  Investments behind the company's premium spirits
brands, including Meukow Cognac, Effen Vodka, Cocktails by Jenn,
Ridgemont Reserve 1792 Bourbon, the 99 cordials line and Black
Velvet Canadian Whisky, contributed to a three percent increase
in branded spirits, which was more than offset by a 23% decrease
in contract production services.

"We are engaged in a long-term premium spirits portfolio brand-
building effort illustrated by the addition of six new brands in
the past 18 months, and the current rollout of the black cherry
flavor 99 schnapps," explained Mr. Sands.  "We will continue to
look for additional opportunities to expand our premium spirits
business while maintaining our leadership role in value
spirits."

                   Operating Income & Net Income

The company incurred US$3.6 million of stock-based compensation
expense related to the company's March 1, 2006 adoption of
Statement of Financial Accounting Standards No. 123(R), "Share-
Based Payment".

Wines segment operating margin declined 20 basis points due to
the stock compensation expense and an increase in duty costs in
the U.K. at the end of March.

Beers and Spirits segment operating margin declined 80 basis
points for the quarter due primarily to higher transportation
costs for the company's imported beers, overall product mix
within the segment, and the stock compensation expense.

Constellation has entered into a foreign currency forward
contract in connection with the acquisition of Vincor to fix the
U.S. dollar cost of the acquisition and payment of certain
outstanding indebtedness.  The May 31, 2006, mark-to-market
adjustment of the forward contract resulted in a first quarter
pre-tax gain of US$52.5 million.  The company also recorded a
pre-tax loss of US$14.1 million on the previously announced
divestiture of its Strathmore water business.

The reported effective tax rate for first quarter 2007 was 41.8%
compared with 17.7% for first quarter 2006.  The comparable
basis effective tax rate was 36.0 percent for first quarter 2007
versus 35.6% for the prior year period.

                        Vincor Acquisition

As reported in the Troubled Company Reporter on June 19, 2006,
Constellation completed the acquisition of all of the issued and
outstanding common shares of Vincor International Inc. for
C$1.227 billion.  The total transaction value was C$1.58 billion
(USD$1.44 billion), which included Vincor's net debt of C$344
million and Constellation's estimated transaction fees of
approximately C$13 million.

"We're confident in our ability to deliver solid EPS growth for
the year on a comparable basis, despite comparison challenges
for stock compensation expense, increased U.K. duty, interest
and
taxes that we planned at the outset of the year," said Mr.
Sands.  "We are going to continue to build upon our leadership
position in beverage alcohol and complement our organic growth
with strategic acquisitions, improve our return on invested
capital and create value."

               About Constellation Brands

Constellation Brands, Inc. (NYSE:STZ, ASX:CBR), --
http://www.cbrands.com/-- is an international producer and
marketer of beverage alcohol brands with a broad portfolio
across the wine, spirits and imported beer categories.  Well-
known brands in Constellation's portfolio include: Almaden,
Arbor Mist, Vendange, Woodbridge by Robert Mondavi, Hardys,
Goundrey, Nobilo, Kim Crawford, Alice White, Ruffino, Kumala,
Robert Mondavi Private Selection, Rex Goliath, Toasted Head,
Blackstone, Ravenswood, Estancia, Franciscan Oakville Estate,
Inniskillin, Jackson-Triggs, Simi, Robert Mondavi Winery,
Stowells, Blackthorn, Black Velvet, Mr. Boston, Fleischmann's,
Paul Masson Grande Amber Brandy, Chi-Chi's, 99 Schnapps,
Ridgemont Reserve 1792, Effen Vodka, Corona Extra, Corona Light,
Pacifico, Modelo Especial, Negra Modelo, St. Pauli Girl,
Tsingtao.   The company has operations in Australia, Japan, and
New Zealand.

                          *     *     *

As reported in the Troubled Company Reporter on June 19, 2006,
Moody's Investors Service assigned a Ba2 rating to Constellation
Brands, Inc.'s new US$3.5 billion secured credit facility, which
replaced its US$2.9 billion secured credit facility.  The
US$1.3 billion incremental add-on facility, which was proposed
at the time of the Vincor International Inc. acquisition
announcement, was never executed and the rating has been
withdrawn.  Constellation's existing ratings are not affected by
these actions, and have been affirmed.

The ratings outlook remains negative.  Ratings affirmed:

   * US$200 million 8.625% senior unsecured notes, due 2006, Ba2

   * US$200 million 8% senior unsecured notes, due 2008, Ba2

   * GBP80 million 8.5% senior unsecured notes, due 2009, Ba2

   * GBP75 million 8.5% senior unsecured notes, due 2009, Ba2

   * US$250 million 8.125% senior subordinated notes, due 2012,
     Ba3

   * Ba2 Corporate Family Rating

   * The SGL-2 Speculative Grade Liquidity rating


CONSTELLATION BRANDS: Agrees on Joint Venture with Grupo Modelo
---------------------------------------------------------------
Constellation Brands, Inc., reached a new agreement with Grupo
Modelo, S.A. de C.V., to create a joint venture for importing
and marketing Modelo's Mexican beer portfolio in the U.S and
Guam for a 10-year period, effective January 2, 2007.

The joint venture board will consist of directors half from the
Company and half from Grupo Modelo, including the Company's
Chairman and Chief Executive Officer Richard Sands and Grupo
Modelo Chairman and Chief Executive Officer Carlos Fernandez.
The joint venture will be headquartered in Chicago and led by
beer industry veteran, Bill Hackett, president of the Company's
Barton Beers group.

"We are pleased with the creation of this joint venture and
believe that it offers Modelo brands excellent long-term growth
opportunities in the United States with the establishment of a
unified import system," stated Carlos Fernandez. "Constellation
Brands has demonstrated its commitment to our brands for more
than a quarter-of-a-century and we could not ask for a better
partner to work with us in the U.S.  This agreement allows Grupo
Modelo to move to a single importer, which will create strategic
alignment across the nation and the ability to create even more
growth in one of the world's most dynamic beer markets.  The
joint venture will benefit from the existing momentum and
popularity of our brands with consumers, add value to our
business and expand our mutual relationship, which dates from
1978."

"We're delighted about bringing together two companies with
proven entrepreneurial cultures in a collaborative effort to
take the Modelo portfolio to its next level of development in
the U.S.," said Richard Sands.  "This is a unique opportunity
for Grupo Modelo and Constellation Brands to build a business
alliance that was never before possible, and to build it in such
a way that the joint venture will seek to maximize the future
growth potential for the top Mexican beer portfolio.  We believe
the JV will have unsurpassed people, processes, expertise and
retailer and consumer insights that will enable us to
effectively and creatively expand the business."

The Company disclosed that it expects the joint venture be
operational on January 2, 2007, and the new agreement runs
through December 31, 2016, and further that subject to the brand
owners' approval, its national rights to import St. Pauli Girl
and Tsingtao into the U.S. will be part of the joint venture.

                        About Grupo Modelo

Founded in 1925, Grupo Modelo (MX: GMODELOC) is in the
production and marketing of beer in Mexico, with 62.8% of the
total domestic and export market share, as of December 31, 2005.
The company has seven brewing plants in Mexico, with a total
annual installed capacity of 52.0 million hectoliters.  It
currently brews and distributes 12 brands; Corona Extra, the
number one Mexican beer in the world, Corona Light, Modelo
Especial, Victoria, Pacifico, Negra Modelo among others.  The
company exports five brands with a presence in more than 150
countries, and it is the exclusive importer of Anheuser-Busch
products in Mexico.

                    About Constellation Brands

Constellation Brands, Inc. (NYSE:STZ, ASX:CBR), --
http://www.cbrands.com/-- is an international producer and
marketer of beverage alcohol brands with a broad portfolio
across the wine, spirits and imported beer categories.  Well-
known brands in Constellation's portfolio include: Almaden,
Arbor Mist, Vendange, Woodbridge by Robert Mondavi, Hardys,
Goundrey, Nobilo, Kim Crawford, Alice White, Ruffino, Kumala,
Robert Mondavi Private Selection, Rex Goliath, Toasted Head,
Blackstone, Ravenswood, Estancia, Franciscan Oakville Estate,
Inniskillin, Jackson-Triggs, Simi, Robert Mondavi Winery,
Stowells, Blackthorn, Black Velvet, Mr. Boston, Fleischmann's,
Paul Masson Grande Amber Brandy, Chi-Chi's, 99 Schnapps,
Ridgemont Reserve 1792, Effen Vodka, Corona Extra, Corona Light,
Pacifico, Modelo Especial, Negra Modelo, St. Pauli Girl,
Tsingtao.  The company has operations in Australia, Japan, and
New Zealand,

                          *     *     *

As reported in the Troubled Company Reporter on June 19, 2006,
Moody's Investors Service assigned a Ba2 rating to Constellation
Brands, Inc.'s new $3.5 billion secured credit facility, which
replaced its US$2.9 billion secured credit facility.  The
US$1.3 billion incremental add-on facility, which was proposed
at the time of the Vincor International Inc. acquisition
announcement, was never executed and the rating has been
withdrawn.  Constellation's existing ratings are not affected by
these actions, and have been affirmed.  The ratings outlook
remains negative.

Moody's affirmed its Ba2 ratings on the Company's Corporate
Family Rating, US$200 million 8.625% senior unsecured notes, due
2006, US$200 million 8% senior unsecured notes, due 2008,
GBP80 million 8.5% senior unsecured notes, due 2009, and
GBP75 million 8.5% senior unsecured notes, due 2009.  Moody's
also affirmed its Ba3 rating on the Company's US$250 million
8.125% senior subordinated notes, due 2012.


CONSTELLATION BRANDS: Moody's Rates US$500 Mln Sr. Notes at Ba2
----------------------------------------------------------------
Moody's Investors Service assigned a (P)Ba2 rating to
Constellation Brands, Inc.'s new shelf and concurrently, a Ba2
rating to Constellation's new $500 million senior unsecured
note, due 2016.  Constellation's existing ratings are not
affected by these actions, and have been affirmed.  The ratings
outlook remains negative.

The notes will be fully and unconditionally guaranteed by the
subsidiaries that are guarantors under Constellation Brands
senior bank credit facility.  Proceeds from the debt issuance
are to be used to reduce a corresponding amount of borrowings
under the revolver and permanent reduction in term loans.

Moody's assessment of Constellation's liquidity remains
unchanged given that free cash flow is expected to be pressured
throughout the next twelve months thus offsetting the benefits
of the refinancing.

Moody's previous rating action on Constellation was the June 15,
2006, rating affirmation and assignment of bank facility ratings
following the Vincor acquisition.

Constellation's ratings remain constrained by its aggressive
acquisition strategy, which gives rise to considerable
integration and event risk and high pro forma financial
leverage.

Offsetting these risks are Constellation's scale and market
diversification, its broad portfolio of brands covering the
wine, spirits and imported beer categories at all price points,
franchise strength and growth potential, and solid profitability
and efficiency.  The ratings also consider the company's
demonstrated ability to quickly integrate acquisitions, repay
debt, and restore credit metrics.

Leverage improvement following the most recent acquisition will
be further delayed due to the company's recently announced
restructuring program, which will reduce cash flow due to one
time
cash charges of approximately $40 million and increased capital
spending of approximately $25 million.  These projects are
expected to reduce net operating expenses by approximately $5
million in fiscal 2008 and by more than $15 million annually
beginning in fiscal 2009.

Despite the shortfall in expected free cash flow to debt levels,
the ratings affirmation reflects Moody's belief that such
tightening should be temporary given the longer term benefit of
the announced restructuring plan.  The negative ratings outlook
continues to reflect Moody's concern about Constellation's
aggressive acquisition strategy, integration risk, and the
resulting pressures on its financial and business profile.

Any further deviation from current financial or strategic
expectations could result in a downgrade of the ratings.  Upward
rating movement -- absent an exogenous event -- is unlikely at
this time. Stabilization of the outlook could result over time
from evidence that the company has successfully integrated
Vincor, sufficiently paid down debt and is committed to
sustained levels of improved credit metrics.

Ratings assigned:

Shelf ratings:

   * Senior unsecured at (P)Ba2

   * Subordinated at (P)Ba3

   * Preferred stock at (P)B1

   * Ba2 for the $500 million senior unsecured debt issuance due
     2016

Ratings affirmed:

   * $3.5 billion secured bank credit facilities consisting of a
     $1.2 billion Term Loan A due June 2011, a $1.8 billion Term
     Loan B due June 2013, and a $500 million revolving credit
     facility due June 2011$3.5 billion senior secured bank
     facilities; Ba2

   * $200 million 8% senior unsecured notes, due 2008, Ba2

   * GBP80 million 8.5% senior unsecured notes, due 2009, Ba2

   * GBP75 million 8.5% senior unsecured notes, due 2009, Ba2

   * $250 million 8.125% senior subordinated notes, due 2012,
     Ba3

   * Ba2 Corporate Family Rating

   * The SGL-2 Speculative Grade Liquidity rating

Headquartered in Fairport, New York, Constellation Brands, Inc.,
is a leading international producer and marketer of beverage
alcohol brands with a broad portfolio across the wine, spirits,
and imported beer categories.  For the fiscal year ended
February 28, 2006, consolidated net revenue was approximately
$4.6 billion.  Vincor International Inc. is one of the world's
top ten wine companies with revenue for the twelve months ended
December 31, 2005 exceeding CDN$724 million.


CORDOBA INVESTMENTS: Supreme Court Issues Wind-Up Order
-------------------------------------------------------
On September 7, 2006, the Supreme Court of New South Wales
ordered Cordoba Investments Pty Ltd formerly trading as Crystals
of the World to wind up its operations.

Accordingly, Hugh Charles Thomas was appointed as liquidator.

The Liquidator can be reached at:

         Hugh Charles Thomas
         BKR Walker Wayland
         8/F, 55 Hunter Street
         Sydney, New South Wales 2000
         Australia


E-CLIPS INTELLIGENT: Members Resolve to Wind-Up Operations
----------------------------------------------------------
At a general meeting held on September 4, 2006, the members of
Enterprise Retail Software Pty Ltd passed a special resolution
to voluntarily wind-up the company's operations.

In this regard, Gregory Stuart Andrews was appointed as
liquidator.

The Liquidator can be reached at:

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


FEBIS LTD: Creditors Must Prove Debts by October 10
---------------------------------------------------
On September 15, 2006, shareholders of Febis Ltd appointed
Laurence George Chilcott and Peter Charles Chatfield as the
company's joint and several liquidators.

The Joint Liquidators then require the company's creditors to
prove their debts by October 10, 2006, to be included in the
benefit of any distribution the Company will make.

The Liquidators can be reached at:

         Laurence George Chilcott
         Peter Charles Chatfield
         c/o Smith Chilcott Bertelsen Harry
         Chartered Accountants
         Level Eleven, Shortland Tower One
         51-53 Shortland Street (P.O. Box 5545), Auckland
         New Zealand
         Telephone:(09) 379 8035
         Facsimile:(09) 307 8892


FELTEX CARPETS: Receives Godfrey Hirst's Unconditional Offer
------------------------------------------------------------
On September 29, 2006, Godfrey Hirst made an unconditional offer
for Feltex Carpets Limited, ShareChat News reports, citing the
company's receivers.

Godfrey Hirst wants to buy Feltex as a going concern, including
its assets and undertakings in New Zealand, Australia, and the
United States, the New Zealand Press Association relates, noting
that final details will be announced on a later date.

According to receivers McGrathNicol and Partners, there was
evidence that customer support is "at risk" if a credible new
owner was not found quickly, particularly in Australia, which
accounts for the majority of Feltex's revenue, ShareChat says.

NZPA reveals that the High Court has also given McGrathNicol an
extension to the usual period for giving staff termination
notices.

According to NZPA, receivers are usually obliged to give staff
notice within 14 days of appointment but in Feltex's case, they
have been given a 60-day extension.

NZPA cites McGrathNicol as saying that this reinforced the
"business as usual" strategy, but did not apply to Australian
operations, which are also continuing uninterrupted.

                 No Offer from Turner Brothers

Meanwhile, Graeme and Craig Turner will not be putting an offer
to the receivers, NZPA cites a statement from the Turners.

Feltex's bankers were aware that they were unlikely to buy the
business under receivership because of the "significant damage"
that a receivership could do to Feltex's value, reputation, and
business relationships, the Turners stated.

"We always understood that other bidders, who are competitors of
Feltex, may well be able to accept these risks because they are
less reliant upon Feltex remaining fully intact as a going
concern," the Turners further said.

                          About Feltex

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

The Company also leads the way in exports, with customers
throughout South East Asia, Japan, the United States, the Middle
East and other key world markets.  Feltex listed on the local
stock exchange in mid-2004 in a NZ$254-million initial public
offering -- the year's largest in New Zealand.  However, the
Company fell short of its prospectus earnings projections,
reporting a net profit of NZ$11.8 million in the fiscal year to
June 30, 2005, about half the forecast NZ$23.9 million.  The
Company has struggled with losses and earnings downgrades,
flogging sales, and a dipping share price.  The Company closed
plants and in October 2005, axed 235 jobs, mostly in Australia,
and by 2006, abandoned merger talks with Australian competitor
Godfrey Hirst after it suggested that the apparent "white
knight" investor was more interested in a reverse takeover.
Godfrey Hirst later sold out its nearly 9% stake in the Company.
In February 2006, Feltex reported a first-half after tax loss of
NZ$11.83 million, down almost 200% compared with the net loss in
the previous year.

The Company underwent negotiations for a capital raising
exercise, proceeds of which will have been used to ease its
NZ$128-million debt to ANZ Bank.  However, these negotiations
failed.

ANZ Bank placed the Company in receivership on September 22,
2006, and named Colin Nicol, Peter Anderson and Kerryn Downey,
of McGrathNicol+Partners, as receivers and managers.


FIRST CITY: Hearing of Liquidation Bid Fixed on Nov. 30
-------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
filed against First City Developments Ltd on November 30, 2006,
at 10:00 a.m.

Westpac Banking Corp filed the petition on August 16, 2006.

The Solicitor for the Plaintiff can be reached at:

         G. M. Sandelin
         Offices of Minter Ellison Rudd Watts, Solicitors
         Level Twenty, Lumley Centre
         88 Shortland Street
         (P.O. Box 3798 or D.X. C.P. 24-061)
         Auckland, New Zealand


GIARRE PTY: Members Resolve to Close Business
---------------------------------------------
Members of Giarre Pty Ltd held a general meeting on September 8,
2006, and resolved to voluntarily wind up the company's
operations.

At the creditors' meeting held later that day, Michael Gerard
McCann was appointed as liquidator.

The Liquidator can be reached at:

         M. G. McCann
         Grant Thornton
         Chartered Accountants
         Level 4, Grant Thornton House
         102 Adelaide Street
         Brisbane, Queensland 4000
         Australia


INNES APPAREL: Liquidation Bid Hearing Slated for Oct. 6
--------------------------------------------------------
A liquidation petition filed against Innes Apparel (1997) Ltd
will be heard before the High Court of Timaru on October 6,
2006, at 11:00 a.m.

Keung Investment Ltd filed the petition with the Court on
July 19, 2006.

The Solicitor for the Petitioner can be reached at:

         M. D. Whitlock
         Whitlock & Co.,
         Level Two, Baycorp Advantage House
         15 Hopetoun Street, Auckland
         New Zealand


KENTIA OPERATIONS: Members Opt to Wind-Up Operations
----------------------------------------------------
At a general meeting on September 7, 2006, the members of Kentia
Operations Pty Ltd resolved by way of special resolution to
voluntarily wind-up the company's operations.

The Joint and Several Liquidators can be reached at:

         Salvatore Algeri
         Simon Alexander Wallace-Smith
         Deloitte Touche Tohmatsu
         180 Lonsdale Street
         Melbourne, Victoria 3000
         Australia


KOOKABURRA DEVELOPMENTS: Commences Wind-Up Proceedings
------------------------------------------------------
On  September 11, 2006, members of Kookaburra Developments Pty
Ltd decided to voluntarily wind up the company's operations.

Subsequently, John Melluish and Morgan Kelly were appointed as
joint and several liquidators at the creditors' meeting held
that same day.

The Joint and Several Liquidators can be reached at:

         John Melluish
         Morgan Kelly
         Ferrier Hodgson
         Chartered Accountants
         Level 13, Grosvenor Place
         225 George Street
         Sydney, New South Wales 2000
         Australia


KPF INDUSTRIES: Court Appoints Joint Liquidators
------------------------------------------------
The High Court of Auckland on September 14, 2006, appointed
Henry David Levin and David Stuart Vance as joint and several
liquidators of KPF Industries Ltd.

Accordingly the Liquidators required creditors to file their
proofs of claim by October 12, 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
Commissioner of Inland Revenue filed the petition to liquidate
the company on May 15, 2006.  The petition was heard on August
17, 2006.

The Joint Liquidators can be reached at:

         Henry Levin
         c/o Gavin Harold at McCallum Petterson
         Level Eleven, Forsyth Barr Tower
         55-65 Shortland Street
         P.O. Box 6916, Wellesley, Auckland
         New Zealand
         Telephone: (09) 336 0000
         Facsimile: (09) 336 0010


MAIDIT INVESTMENTS: Members to Hear Wind-Up Report on October 17
----------------------------------------------------------------
Members of Maidit Investments Pty Ltd will hold a final meeting
on October 17, 2006, at 10:40 a.m., to receive Liquidator
Wilson's report on the company's wind-up proceedings and
property disposal exercises.

The Troubled Company Reporter - Asia Pacific recounts that the
company was placed under a members' voluntary liquidation on
June 9, 2006.

The Liquidator can be reached at:

         James L. Wilson
         10 Rosslyn Street
         Mile End South
         South Australia 5031
         Australia


MITCHELL-MOORE: Members Pass Resolution to Wind Up Operations
-------------------------------------------------------------
On September 8, 2006, members of Mitchell-Moore Enterprises Pty
Ltd held an extraordinary general meeting and resolved to wind
up the company's operations.

K. S. Wallman was consequently appointed as liquidator.

The Liquidator can be reached at:

         K. S. Wallman
         PO Box 263
         West Perth, Western Australia
         Australia


NPS CONTRACTING: Commences Wind Up of Operations
------------------------------------------------
On September 7, 2006, members of NPS Contracting Services Pty
Ltd decided to wind up the company's operations.

In this regard, Michael Dwyer was appointed as liquidator.

The Liquidator can be reached at:

         Michael Dwyer
         Dwyer Corporate
         Chartered Accountants
         Level 6, 455 Bourke Street
         Melbourne, Victoria 3000
         Australia


NYLEX LIMITED: Posts AU$13.144 Mln Profit for FY Ended June 30
--------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 9, 2006, Nylex Limited has issued a profit warning,
saying that it expects annual underlying operating profit to be
close to break-even and is considering another AU$12 million in
write-downs and restructuring provisions.

Accordingly, Nylex's full-year financial results for the year
ended June 30, 2006, showed a loss of AU$0.528 million for the
underlying contribution from continuing operations before
interest, tax, and one-off items.

However, Nylex recorded a consolidated profit for the financial
year after income tax and minority interest of
AU$13.144 million, a turnaround compared with a loss in 2005 of
AU$45.678 million.

The result consists of a net profit of AU$49.141 million from
divestment activity and a net loss after tax from continuing
operations of AU$35.997 million.  After adjusting for one-off
items incurred in 2005/2006, the underlying contribution from
continuing operations is a loss of AU$4.258 million.  One-off
items incurred in the year totaled AU$31.739 million.

As of June 30, 2006, the company's balance sheet revealed
strained liquidity with AU$116.9 million in total current assets
available to pay AU$132.5 million of total current liabilities
coming due within the next 12 months.

Nylex's June 30, 2006 balance sheet also showed total
liabilities of AU$137.1 million exceeding total assets of
AU$69.9 million.

At year-end, shareholders funds were AU$69.9 million up from
AU$47.4 million at June 2005.  Total interest bearing debt
reduced by AU$93.6 million during the year and totaled
AU$62.2 million at June 2006.

A full-text copy of Nylex's financial results for the year-ended
June 30, 2006, is available for free at:


http://www.nylexlimited.com.au/uploads/files/1159496190511_0.9430014285067476.pdf

                      Disappointing Results

Nylex is forecasting that the trading position of its continuing
businesses will improve in 2006/2007 as a result of the cost
reduction strategies either implemented -- to date, in progress,
or planned.

However, Nylex says the financial performance of its continuing
businesses during the 2005/2006 financial year was
disappointing.

Peter George, Nylex Executive Chairman relates that structural
weaknesses in the company after several years of asset
divestment activity were exposed as a result of a range of
external pressures.  The rise in world oil prices had a material
adverse impact across the group.  Motor vehicle build numbers
were significantly less than forecast, raw material prices
increased by over 25%, and the costs of distribution increased.

              Negotiates New Banking Facilities

The company has also negotiated new banking facilities with its
major bankers, ANZ and Westpac.  These facilities, which are
subject to satisfactory documentation, will replace existing
facilities after the capital raising, which is expected to be
finalized in December 2006.

The Troubled Company Reporter - Asia Pacific reported on
June 29, 2006, that Nylex Limited disclosed a proposed
AU$40-million convertible note issue.  Nylex also disclosed that
it has received a non-binding indicative term sheet, from
Singapore-based Harmony Capital Partners Pty. Ltd., and Garden
Park Equities Pty. Ltd., in which Harmony and Garden Park would
each consider sub-underwriting AU$20 million of the issue.

A subsequent TCR-AP report said Nylex disclosed further details
of the AU$40-million capital raising after the successful
conclusion of the negotiations and due diligence with the sub-
underwriters.  Existing shareholders will have the opportunity
to subscribe for not less than 75% of the amount to be raised.

                      Going Concern Doubt

After auditing the company's financial statements for the year
ended June 30, 2006, M. Irving, a partner at Deloitte Touche
Tohmatsu, Nylex's external auditors, disclosed that there is
significant uncertainty whether the company and its consolidated
entity will be able to continue as going concerns.  Therefore,
there is doubt whether they will realize their assets and
extinguish their liabilities in the normal course of business
and at the amounts stated in the financial report.

The financial report has been prepared on a going concern basis,
which assumes that:

   (a) the entity will successfully complete the AU$40 million
       capital raising which is to be voted on by shareholders
       at the Annual General Meeting in November 2006;

   (b) the entity will execute new banking facilities, which
       have been agreed with ANZ and Westpac but which are
       subject to documentation and to successful completion of
       the capital raising; and

   (c) the continuing will return to profitable trading.

The directors will unanimously recommend the capital raising to
shareholders, but, the success of the intended capital raising
is dependent on shareholders approving the raising at the Annual
General Meeting.

The financial report does not include adjustments relating to
the recoverability and classification of recorded asset amounts
or to the amounts and classification of liabilities that might
be necessary should the Company and the consolidated entity not
continue as a going concern, Deloitte Touche notes.

                        About Nylex

Headquartered in Melbourne, Australia, Nylex Limited --
http://www.nylexlimited.com.au/-- is an Australian marketer,
manufacturer and service provider of plant hire services,
building products, automotive products, plastic products, and
engineered products.

Nylex has been in restructuring for 11 years, the past six saw
the Company management balance between keeping creditors happy
and placating shareholders, who over time lost 90% of their
investments.  Nylex owed its bank lenders more than AU$400
million at the peak and has basically been in a controlled
liquidation of the mish-mash of assets built up in the 1990s.

The Company has sold many businesses to reduce its debt, moved
some production offshore and now has a strong balance sheet and
is looking for acquisitions.  It has also launched a major push
to build on its strong position in garden water control to
become a leader in overall household water conservation.

The Troubled Company Reporter - Asia Pacific reported on
November 29, 2005, that Nylex's future earnings are uncertain
after shareholders sold the Company's profitable asset,
Lucrative AH Plant Hire, to a rival controlled by Nylex
shareholder and Seven Network Chairman Kerry Stokes.
Shareholders agreed to sell AH Plant Hire to the Stokes-
controlled National Hire group for AU$111 million, which just
scrapped in at the bottom of the valuation range calculated by
independent expert Ernst & Young Valuation Services.

Nylex is operating under the close supervision of a group of
banks, which are keen to end the five-year asset sell-off.

In May 2006, Nylex announced a restructure that will cost about
AU$10 million, and has started talks with potential financiers
and existing and potential senior debt providers.


PRIMELIFE CORPORATION: Enters Babcock & Brown 2nd Joint Venture
---------------------------------------------------------------
Primelife Corporation Limited has signed an agreement for the
purchase of land for a 160-unit retirement village development
at Wodonga, Victoria.  This project, which will be undertaken on
a 50/50 basis, will be the second in Primelife's development
joint venture with Babcock & Brown Limited.

The Troubled Company Reporter - Asia Pacific on August 23, 2006,
cited a report from Bloomberg News stating that Babcock bought a
stake in Primelife in November 2003.  However, the stock has
lost half of its value since then.

Babcock owns 17% of Primelife, as well as a 49% stake in
PrimeLiving Trust, a closely held firm that owns more than 2,200
retirement apartments, the TCR-AP said.

Jim Hazel, Primelife Managing Director states "the Wodonga City
Council has identified a significant shortage of quality
retirement village units and we are pleased to fill this need.
The proposed development is located about 3.5 kilometers from
the Wodonga CBD and is approximately 320 kilometers north east
of Melbourne."

"The development site forms part of a larger 'Enterprise Park'
that consists of residential subdivision with two areas for
commercial, adjacent industrial and a bus depot," Mr. Hazel
explains.

"As previously indicated, the development joint venture enhances
our capabilities to identify development opportunities and
allows Primelife to reduce the risks associated with its future
development book," Mr. Hazel notes.

Rob Topfer, Babcock & Brown Head of Corporate Finance also
stated "we expect further announcements by the development joint
venture in the coming months."

The acquisition of land agreement is subject to obtaining
relevant planning permits, the company notes.

                        About Primelife

Headquartered in Melbourne, Australia, Primelife Corporation --
http://www.primelife.com.au-- develops and manages properties
catering to a wide range of senior living needs, including
independent retirement living, serviced apartments, aged care or
low care hostels and high care nursing homes, and in-home care.

Primelife almost skidded into insolvency when, on September 23,
2004, the Australian Securities and Investments Commission filed
37 proceedings in the Federal Court of Australia seeking, among
other things, orders that an investigating accountant be
appointed over managed investment schemes under Primelife to
report to the Federal Court to ascertain the position of each of
the schemes.  ASIC also applied for the schemes to be wound up.

ASIC alleged that the schemes are not registered, as required
under the Corporations Act.  ASIC brought the Federal Court
proceedings against Primelife and a number of other defendants
including parties who, ASIC alleges, have been involved in
promoting and managing the schemes to a large number of
investors since 1997.

The unregistered schemes are undergoing or were completely wound
up starting October 2005.  The Company had currently resolved
most of the legal issues and was turning the corner after a
couple of years.


PRIMELIFE CORPORATION: Appoints J. Martin as Managing Director
--------------------------------------------------------------
On September 29, 2006, the Chairman of Primelife, Judith Sloan,
disclosed that the company's current managing director, Jim
Hazel, will retire.  Accordingly, John Martin was appointed as
new managing director.

The changeover will be effective October 16, 2006.  On that
date, Mr. Martin will assume full responsibility for the
operations and execution of Primelife's strategy.

Primelife retains Mr. Hazel in a consulting role for a period to
ensure a smooth transition.

Ms. Sloan said "Primelife is deeply indebted to Jim for his hard
work in overseeing Primelife through a difficult period from
2004, refocusing the company's business model and operations,
and for building the current senior management team.  Jim has
been an integral part of the successful turnaround of Primelife
and we wish him all the best in his retirement."

Mr. Martin has been with Primelife since November 2004 as the
company's General Counsel and General Manager, Corporate.  He is
also Primelife's representative on the board of the PrimeLiving
Trust, the company's joint acquisition vehicle with Babcock &
Brown and MFS.

According to Ms. Sloan, Mr. Martin was instrumental in the
restructuring of Primelife and the resolution of its legacy
issues.  Primelife's board believes Mr. Martin has the right
blend of skills and experience to lead Primelife through the
next phase of the company's development.

His appointment is a planned move, and he will be supported by
an executive team, which incorporates a great deal of expertise
and industry experience, Ms. Sloan added.

                        About Primelife

Headquartered in Melbourne, Australia, Primelife Corporation --
http://www.primelife.com.au/-- develops and manages properties
catering to a wide range of senior living needs, including
independent retirement living, serviced apartments, aged care or
low care hostels and high care nursing homes, and in-home care.

Primelife almost skidded into insolvency when, on September 23,
2004, the Australian Securities and Investments Commission filed
37 proceedings in the Federal Court of Australia seeking, among
other things, orders that an investigating accountant be
appointed over managed investment schemes under Primelife to
report to the Federal Court to ascertain the position of each of
the schemes.  ASIC also applied for the schemes to be wound up.

ASIC alleged that the schemes are not registered, as required
under the Corporations Act.  ASIC brought the Federal Court
proceedings against Primelife and a number of other defendants
including parties who, ASIC alleges, have been involved in
promoting and managing the schemes to a large number of
investors since 1997.

The unregistered schemes are undergoing or were completely wound
up starting October 2005.  The Company had currently resolved
most of the legal issues and was turning the corner after a
couple of years.


REGENCY PROJECTS: Names Erskine and Goodin as Liquidators
---------------------------------------------------------
At a general meeting held on September 8, 2006, the members of
Regency Projects Pty Ltd decided to voluntarily liquidate the
company's business.

Accordingly, Robyn Erskine and Peter Goodin were appointed as
liquidators.

The Liquidators can be reached at:

         Robyn Erskine
         Peter Goodin
         Brooke Bird & Co. Chartered Accountants
         471 Riversdale Road
         Hawthorn East 3123
         Australia


ROYALE ENTERPRISES: Final Meeting Scheduled on October 17
---------------------------------------------------------
The members and creditors of Royale Enterprises Pty Ltd, which
is in liquidation, will hold their final meeting on October 17,
2006, at 11:00 a.m.

At the meeting, Liquidator S. R. Coad will show the accounts on
the company's wind-up and property disposal exercises.

The Liquidator can be reached at:

         S. R. Coad
         Level 2, 45 Stirling Highway
         Nedlands, Western Australia 6009
         Australia


SALACIOUS SOLUTIONS: Placed Under Members' Voluntary Wind-Up
------------------------------------------------------------
At a general meeting held on September 8, 2006, the members of
Salacious Solutions Pty Ltd resolved to voluntarily wind up the
company's operations.

Subsequently, Peter Goodin was appointed as liquidator.

The Liquidator can be reached at:

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


SEAVIEW BOATS: Faces City Council's Liquidation Bid
----------------------------------------------------
On August 3, 2006, Hutt City Council filed before the High Court
of Wellington a petition to liquidate Seaview Boats Ltd.

The petition will be heard before the Court on October 9, 2006,
at 10:00 a.m.

The Solicitor for the Plaintiff can be reached at:

         David Gerard Dewar
         Thomas Dewar Sziranyi Letts
         P.O. Box 31 240, Lower Hutt
         New Zealand


ST GEORGE EQUITY: Enters Wind-Up Proceedings
--------------------------------------------
At a general meeting held on September 8, 2006, the members of
St George Equity Finance Ltd resolved to voluntarily wind up the
company's operations.

M. C. Smith was subsequently appointed as liquidator.

The Liquidator can be reached at:

         M. C. Smith
         c/o McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9338 2666
         Web site: http://www.mcgrathnicol.com.au


ST GEORGE HCAL: Members Opt for Voluntary Wind-Up
-------------------------------------------------
Members of St George Hcal Ltd met on September 8, 2006, and
decided to voluntarily wind up the company's operations.

In this regard, M. C. Smith was appointed as liquidator.

The Liquidator can be reached at:

         M. C. Smith
         c/o McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Telephone:(02) 9338 2666
         Web site: http://www.mcgrathnicol.com.au


ST GEORGE HOME: Members Decide to Wind Up Operations
----------------------------------------------------
Members of St George Home Finance Pty Ltd convened on
September 8, 2006, and decided to close the company's
operations.

Subsequently, M. C. Smith was appointed as liquidator.

The Liquidator can be reached at:

         M. C. Smith
         c/o McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Telephone:(02) 9338 2666
         Australia
         Web site: http://www.mcgrathnicol.com.au


ST GEORGE WHOLESALE: Members Agree on Voluntary Liquidation
-----------------------------------------------------------
After a general meeting on September 8, 2006, the members of St
George Wholesale Finance Pty Ltd decided to voluntarily wind up
the company's operations.

Accordingly, M. C. Smith was named liquidator.

The Liquidator can be reached at:

         M. C. Smith
         c/o McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9338 2666
         Web site: http://www.mcgrathnicol.com.au


STOCKFORD BILLERWELL: To Declare Third Dividend on October 13
-------------------------------------------------------------
Stockford (Billerwell Powers & Smith-Casey) Pty Ltd, which is
will declare the third dividend for its creditors on October 13,
2006.

Failure to file proofs of debt by October 3, 2006, will exclude
a creditor from sharing in the dividend distribution.

The Deed Administrator can be reached at:

         Mark A. Korda
         KordaMentha
         Level 24, 333 Collins Street
         Melbourne, Victoria 3000
         Australia


STOCKFORD (KOVAC PARTNERS): Creditors Must Prove Debts by Oct. 3
----------------------------------------------------------------
A third dividend will be declared for the creditors of Stockford
(Kovac Partners) Pty Ltd on October 13, 2006.

Creditors must show proofs of debt by October 3, 2006, to be
included in the distribution the Company will make.

The Deed Administrator can be reached at:

         Mark A. Korda
         KordaMentha
         Level 24, 333 Collins Street
         Melbourne, Victoria 3000
         Australia


STOCKFORD (LOVETT): Set to Declare Third Dividend on October 13
---------------------------------------------------------------
Stockford (Lovett) Pty Ltd, which is subject to a deed of
company arrangement, will declare a third dividend on October
13, 2006.

Creditors who cannot prove their claims by October 3, 2006, will
be excluded from sharing in the company's dividend distribution.

The Deed Administrator can be reached at:

         Mark A. Korda
         KordaMentha
         Level 24, 333 Collins Street
         Melbourne, Victoria 3000
         Australia


STOCKFORD (SMITH-ESP): Prepares to Declare Third Dividend
---------------------------------------------------------
Deed Administrator Mark A. Korda of Stockford (Smith-Esp) Pty
Ltd will declare its third dividend on October 13, 2006.

Creditors who cannot prove their debts by October 3, 2006, will
be excluded from sharing in the dividend distribution.

The Deed Administrator can be reached at:

         Mark A. Korda
         KordaMentha
         Level 24, 333 Collins Street
         Melbourne, Victoria 3000
         Australia


TIGER SPORTS: Creditors' Proofs of Claim Due on October 30
----------------------------------------------------------
Joint and Several Liquidators Gilbert Dale Chapman and Grant
Bruce Reynolds require creditors of Tiger Sports Trust to file
their proofs of claim by October 30, 2006.

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

The Liquidators can be reached at:

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


TREADSTONE PTY: Faces Wind-Up Proceedings
-----------------------------------------
Shareholders of Treadstone Pty Ltd resolved on September 6,
2006, to voluntarily wind up the company's operations and
appoint Damien Clarke as liquidator.

The Liquidator can be reached at:

         Damien Clarke
         McCullough Robertson
         Level 11, 66 Eagle Street
         Brisbane, Queensland 4000
         Australia


TRANSAX INT'L: Retains North Bay Equity as Financial Advisor
-------------------------------------------------------------
Transax International Limited disclosed that in response to a
recent third party interest it has received to acquire its
Brazilian operations, it has retained the services of North Bay
Equity Partners to act as the Company's exclusive financial
advisor.

The Company said that it has not set a definitive timetable for
its completion of its evaluation and further that there can be
no assurances that the evaluation process will result in any
specific transaction.  The Company also said that it does not
intend to disclose developments regarding its evaluation of
strategic alternatives unless and until its Board of Directors
approves a definitive transaction.

Stephen Walters, president & chief executive officer, commented,
"Transax continues to aggressively execute on it business model,
nearly tripling its revenues year over year.  Due to recent
unsolicited interest expressed to us, we have decided to retain
North Bay to help us evaluate various strategic business options
in an effort to best recognize the greatest shareholder value
possible."

                        About North Bay

North Bay -- http://www.northbayequity.com/-- provides
financial services and M&A advisory to businesses and management
teams operating in Latin America.

              About Transax International Limited

Based in Miami, Florida, Transax International Limited (OTCBB:
TNSX) -- http://www.transax.com/-- provides health information
management systems to hospitals, physicians and health insurance
companies.  The Company's subsidiaries, TDS Telecommunication
Data Systems LTDA provides services in Brazil; Transax Australia
Pty Ltd. operates in Australia; and Medlink Technologies Inc.
initiates research and development.

Transax International Limited's balance sheet at June 30, 2006,
showed a US$3,717,316 total stockholders' deficit from total
assets of US$2,196,551 and total liabilities of US$5,913,867.

As reported in the Troubled Company Reporter on July 14, 2006,
Moore Stephens, P.C., in New York, raised substantial doubt
about Transax International Limited's ability to continue as a
going concern after auditing the Company's consolidated
financial statements for the year ended December 31, 2005.  The
auditor pointed to the Company's losses, and working capital and
stockholders' deficiencies.


VALLEY PARK: Liquidator Wilson to Give Wind-Up Report
-----------------------------------------------------
Members of Valley Park Investments Pty Ltd will meet on
October 17, 2006, at 10:30 a.m., to receive Liquidator Wilson's
report on the company's wind-up proceedings and property
disposal exercises.

The Troubled Company Reporter - Asia Pacific previously reported
that the company was placed under a members' voluntary
liquidation on June 9, 2006.

The Liquidator can be reached at:

         James L. Wilson
         10 Rosslyn Street
         Mile End South
         South Australia 5031
         Australia


VALPAR PTY: Members' Final Meeting Set on October 17
----------------------------------------------------
A final meeting will be held for the members of Valpar Pty Ltd,
on October 17, 2006, at 10:20 a.m.

During the meeting, Liquidator James L. Wilson will present the
report on the company's wind-up proceedings and property
disposal exercises.

The Liquidator can be reached at:

         James L. Wilson
         10 Rosslyn Street
         Mile End South, South Australia 5031
         Australia


WALLACES FURNITURE: Members to Receive Wind-Up Report
-----------------------------------------------------
Members of Wallaces Furniture Mart Pty Ltd, which is in
liquidation, will hold a final meeting on October 13, 2006, at
10:00 a.m.

Liquidator P. A. Lucas will present an account on the company's
wind-up proceedings and the property disposal exercises.

The Liquidator can be reached at:

         P. A. Lucas
         P. A. Lucas & Co.
         Chartered Accountants
         Level 8, 100 Edward Street
         Brisbane, Queensland
         Australia


WALLIS HOLDINGS NO1: Members to Meet on October 17
--------------------------------------------------
A final meeting of the members of Wallis Holdings No1 Pty Ltd
will be held on October 17, 2006, at 10:00 a.m.

At the meeting, Liquidator Wilson will report on the final
accounts of the wind-up proceedings.

The Liquidator can be reached at:

         James L. Wilson
         10 Rosslyn Street
         Mile End South, South Australia 5031
         Australia


WALLIS HOLDINGS NO3: Members to Hold Final Meeting
--------------------------------------------------
The members of Wallis Holdings No3 Pty Ltd will hold a final
meeting on October 17, 2006, at 10:10 a.m., to receive wind-up
accounts from Liquidator James L. Wilson.

The Liquidator can be reached at:

         James L. Wilson
         10 Rosslyn Street
         Mile End South, South Australia 5031
         Australia


WILLIAM NAIRN: Members' Final Meeting Slated for October 15
-----------------------------------------------------------
A final meeting will be held for the members of William Nairn
Pty Ltd on October 15, 2006.

During the meeting, Liquidator Garry Stanley Buswell will report
the company's wind-up proceedings and property disposal
exercises.

The Troubled Company Reporter - Asia Pacific reported that the
Company was placed under a voluntary liquidation on March 15,
2006.

The Liquidator can be reached at:

         Garry Stanley Buswell
         Royal Cornell & Co Pty
         4th Floor, 14-16 Victoria Avenue
         Perth, Western Australia 6000
         Australia




* S&P to Look at New Zealand's Rating But Waits for Gov't Plans
---------------------------------------------------------------
Standard & Poor's Ratings Services would look closely at New
Zealand's credit rating if the Government went ahead with costly
business tax cuts, New Zealand Herald reports.

However, it will wait for details of the Government's plans, the
report cites S&P, as saying.

The Troubled Company Reporter - Asia Pacific reported on
September 27, 2006, that based on a report from Statistics New
Zealand, the country posted a NZ$961 million trade deficit for
August, which was worse than the NZ$780 million that economists
had forecast.

NZ Herald cites S&P analyst Kyran Curry as saying that the
current account deficit, now at 9.7% of gross domestic product,
is "the most significant factor" weighing on the country's AA+
sovereign credit rating.

"It's high, it's chronic, and it's not sustainable but there are
mitigating factors that help to provide support to New Zealand's
rating, and in particular it's the strong fiscal position that
the Government maintains," the analyst says.

In the May Budget, the Treasury forecast an operating surplus of
NZ$5.7 billion, or 3.6% of GDP, for the year to next June, to be
followed by a NZ$4.3 billon surplus, or 2.6% of GDP, the next
year, NZ Herald relates.

However, the paper says ANZ economists believe the Government's
tax-take forecasts are over-optimistic and rising spending will
narrow those surpluses considerably.

According to a prior TCR-AP report, New Zealand Finance Minister
Michael Cullen told a foreign business audience that the
business tax review is likely to produce a mix of lower
corporate rates and tax credits.

NZ Herald says that Mr. Cullen has also fuelled expectations of
a cut in the company tax rate, perhaps from 33c to 30c in the
dollar, which could cost upwards of NZ$500 million.

NZ Herald further cites factors mitigating against the current
account deficit, aside from the Government's strong fiscal
position.  These factors include:

   (a) how well monetary policy and the banking system were run;
       and

   (b) the transparency and orderliness of Government and its
       decision-making.

The paper notes that S&P still viewed an improved current
account deficit as the New Zealand dollar started falling again,
stimulating an export recovery and dampening domestic demand.

According to NZ Herald:

   * New Zealand has a AA+ credit rating from Standard & Poor's
     and an Aaa rating from Moody's Investors Services;

   * S&P warns that New Zealand's monstrous current account
     deficit continues to weigh on its rating, that is largely
     offset by the Government's strong balance sheet; and

   * should the Government's balance sheet deteriorate
     significantly and its credit rating be downgraded, the
     Government would pay more interest on borrowed funds.  Some
     commentators believe that would flow into the private
     sector, which accounts for most of the country's overseas
     debt.


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

ALLSON INTERNATIONAL: Members to Meet on October 27
---------------------------------------------------
Members of Allson International Hotels & Resorts (H.K.) Ltd will
hold a final general meeting on October 27, 2006, at 1:35 p.m.,
to receive Liquidator Natalia K. M. Seng's account on the
wind-up proceedings and property disposal exercises.

According to the Troubled Company Reporter - Asia Pacific, the
Company commenced a voluntary wind-up on January 13, 2006.

The Liquidator can be reached at:

         Natalia K. M. Seng
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


AMS SERVICES: Members' Final Meeting Fixed on October 26
--------------------------------------------------------
A final meeting of the members of AMS Services (Hong Kong) Ltd
will be conducted on October 26, 2006, at 9:45 a.m.

During the meeting, Liquidators Lui Tin Nang and Yung Wai Kam
will present final accounts of the Company's wind-up operations
and property disposal activities.

The Joint and Several Liquidators can be reached at:

         Lui Tin Nang
         Yung Wai Kam
         Room 1613, 16/F., Tai Yau Bldg
         181 Johnston Road, Wanchai
         Hong Kong


ASC CAPITAL: Final Members Meeting Set on October 26
----------------------------------------------------
Members of ASC Capital (H.K.) Ltd will convene for their final
meeting on October 26, 2006, at 9:30 a.m.

At the meeting, Liquidators Lui Tin Nang and Yung Wai Kam will
present a report regarding the Company's wind-up and the manner
its properties were disposed of.

The Joint and Several Liquidators can be reached at:

         Lui Tin Nang
         Yung Wai Kam
         Room 1613, 16/F., Tai Yau Bldg
         181 Johnston Road, Wanchai
         Hong Kong


BENQ CORP: Mulls Insolvency Filing for German Mobile Subsidiary
---------------------------------------------------------------
Benq Corp. considers filing an insolvency petition for BenQ
Mobile GmbH & Co OHG, its German mobile phone unit, less than a
year after taking over an unprofitable Siemens AG division,
Theresa Tang writes for Bloomberg News.

The company's board of directors also decided to discontinue
capital injection into BenQ Mobile to stem unsustainable losses
from its operations.

BenQ Mobile's operations in Germany, including Munich, Bocholt,
and Kamp-Lintfort may be affected, Bloomberg says, noting that
other subsidiaries in Brazil and other locations are reviewing
their financial position.  BenQ will continue its branded mobile
business in selected markets leveraging its existing R&D and
manufacturing operations in Asia.

"Since October 2005, we have committed and invested an
inordinate amount of capital and resources into our German
mobile phone subsidiary.  We have worked alongside our German
colleagues from the beginning and were able to achieve quite a
number of milestones," K.Y. Lee, BenQ Corporation Chairman
relates.  "Despite the progress achieved in reducing cost and
expenses, widening losses have made this very painful decision
unavoidable," Mr. Lee adds.

BenQ emphasized that adjustments to its mobile operations do not
change the company's unwavering commitment to its branded
business and focus on providing integrated manufacturing
services.

Ms. Tang reports that the Taipei-based company is cutting jobs
and focusing on higher margin models that can compete with Nokia
Oyj and Motorola Inc.  The delay in new models resulted in
slower-than-expected sales and prompted Benq to push back its
target of turning the handset business profitable to the third
quarter of next year at the earliest, Ms. Tang relates.

For the first half of 2006, the company's core business recorded
sales of NT$112.7 billion, and a net loss of NT$7.5 billion.

On August 24, 2006, BenQ's board approved a plan to spin-off its
Integrated Manufacturing Services business, comprising the
company's manufacturing operations.  Additionally, it approved a
US$400 million investment in its wholly owned subsidiary, BenQ
Mobile Holding B.V., and further monetization of Darfon shares
ahead of Darfon's public listing.

                          *     *     *

Headquartered in Taiwan, Republic of China, BenQ Corporation,
Inc. -- http://www.benq.com/-- is principally engaged in
manufacturing, developing and selling of computer peripherals
and telecommunication products.  It is also a major provider of
3G handset, 3G handset, Camera phones, and other products.  BenQ
Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany.


CHINA SOUTHERN: Mulls on Raising Surcharges up to 60%
-----------------------------------------------------
China Southern Airlines along with other Chinese carriers will
increase surcharges on international routes by as much as 60%
starting October 1, 2006, to cover higher fuel costs, the
Standard reports.

The paper cites Rao Xinyu, head of investor relations at Air
China, as saying surcharge on flights to Asian destinations,
except for Middle East countries, will rise to US$40 or HK$312
each way from the current US$25, while the levy on flights to
Europe and North America will climb to US$60 from US$40.

China Southern, China Eastern Airlines and other mainland
carriers have been unable to turn rising traffic into profits
because of government controls on fuel surcharges and hedging,
the Standard relates.

The country's carriers' combined first-half losses more than
quadrupled to 2.57 billion yuan (HK$2.53 billion), after costs
rose 21 percent, the regulator said in July.

                          *     *     *

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

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

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


DAIMLERCHRYSLER: In Talks with Chery Auto for Car-Making Deal
-------------------------------------------------------------
Detroit's auto leader DaimlerChrysler announces plans for a
partnership with China's Chery Automobile to produce cars for
sale in the United States and other markets, All Headline News
reports, adding that the two automakers are currently in the
process of finalizing the deal.

"The two sides have explored various ways to make subcompact
cars together and are now in advanced negotiations," one source
familiar with the matter told Reuters.

Reuters relates that if the deal pushes through, Chery will
provide the models and make revisions at the request of
DaimlerChrysler and that the cars would be made at Chery plants
in China.

DaimlerChrysler will provide most of the funding for the project
while models earmarked for the U.S. market would carry a
Chrysler brand, Reuters adds.

All Headline News recounts that on September 25, 2006, Chrysler
Group chief executive Tom LaSorda said that he hoped to name a
partner by the end of 2006 that would launch the company into
the small car market.

Currently, DaimlerChrysler does not manufacture small cars,
which is a growing trend in the United States, Europe and other
markets, the paper adds.

Chery is among a handful of upstart Chinese vehicle makers that
are eager to push exports to diversify beyond their home market.
It has long eyed the North America market, the world's largest,
via a venture with Maverick entrepreneur Malcolm Bricklin, best
known for bringing the low-cost Yugo car to the United States,
Reuters says.

Mr. Bricklin initially set a target of January 2007 for the
first sales of Chery vehicles, but told Reuters earlier this
month that the launch could be delayed for the third time to
2009.

The potential tie-up with DaimlerChrysler according to Reuters
could jump-start Chery's effort to crack the U.S. market and
boost its global credibility, industry analysts said.


                          *     *     *

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.

It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.The
Chrysler Group segment offers cars and minivans, pick-up trucks,
sport utility vehicles, and vans under the Chrysler, Jeep, and
Dodge brand names.  It also sells parts and accessories under
the MOPAR brand.

DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia, and Thailand.

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of US$6.4 billion based on an
expected full-year operating loss of approximately US$1.2
billion for its Chrysler Group.


EPA LTD: Court Issues Wind-Up Order
-----------------------------------
On September 13, 2006, the High Court of Hong Kong issued an
order to wind-up EPA Ltd's operations.

A wind-up petition was filed with the Court on June 3, 2006.


HAFA ADAI: Final Meetings Slated for October 23
-----------------------------------------------
Members and creditors of Hafa Adai Ltd will hold separate final
meetings on October 23, 2006 at 28th Floor, Emperor Group
Centre, 288 Hennessy Road, Wanchai, Hong Kong.


HARTCOURT COMPANIES: Amends 2003 Report to Account for Purchases
----------------------------------------------------------------
Hartcourt Companies Inc. amended its Form 10-KSB for the year
ended December 31, 2003, filed with the Securities and Exchange
Commission to reflect changes related to its acquisition of four
Chinese companies.

Subsequent to the issuance of financial statements for the year
ended December 31, 2003, the Company determined that certain
transactions have not been accounted for properly.

Dr. Yungeng Hu, Hartcourt's Chief Financial Officer said the
changes in the 2003 financial statements may also cause
adjustments to the financial statements for the year ended
December 31, 2004, and May 31, 2005.  The Company anticipates to
include these adjustments in its Form 10-KSB for the year ended
May 31, 2006.

Hartcourt recorded net sales US$131,699,218 in year 2003,
compared with US$1,137,011 in 2002.  The big increase is driven
by the acquisition of the business of HuaQing, Guowei, NewHuaSun
and Zhongnan.  Loss from discontinued operations is US$70,360 in
2003 while the figure is US$1,020,252 in 2002.

At December 31, 2003, the company's balance sheet showed
US$33,808,151 in total assets, US$15,703,645 in total
liabilities, US$1,895,962 of minority interests, commitments and
contingencies of US$1,300,000 and total shareholders equity of
US$14,908,544.

A full-text copy of the company's amended 2003 annual report is
available for free at:

             http://researcharchives.com/t/s?1037

In an audit report dated August 1, 2006, Kabani & Company Inc.,
expressed substantial doubt about Hartcourt's ability to
continue as a going concern after auditing the Company's 2003
financial statements.

The auditing firm pointed to the Company's accumulated deficit
of US$51,624,284 including net loss of US$570,889 for the year
ended December 31, 2003.

                         About Hartcourt

Headquartered in Shanghai, China, The Hartcourt Companies Inc. -
- http://www.hartcourt.com/-- was incorporated in Utah.  The
Company specializes in the Chinese information technology
market.  In August 2006, the Company decided to enter the post-
secondary education market in China.


HK INTERNATIONAL MOVERS': Members' Meeting Slated for Oct. 25
-------------------------------------------------------------
A final meeting of the members of Hong Kong International
Movers' Association Ltd will be held on October 25, 2006, 11:00
a.m., at 20/F, Prince's Building, Central, Hong Kong.

During the meeting, Liquidator Rainier Hok Chung Lam will
present final accounts of the Company's wind-up and property
disposal exercises.


HUTCHISON SIX: Joint Liquidators Step Aside
-------------------------------------------
Ying Hing Chiu and Chung Miu Yin, Diana ceased to act as joint
and several liquidators for Hutchison Enterprises Six Ltd on
September 18, 2006.

According to the Troubled Company Reporter - Asia Pacific, the
Liquidators presented their final accounts of the Company's
wind-up operations on July 17, 2006.

The former Liquidators can be reached at:

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


HUTCHISON THREE: Liquidators Ceased to Act for the Company
----------------------------------------------------------
On September 18, 2006, Ying Hing Chiu and Chung Miu Yin, Diana
ceased to act as joint and several liquidators for Hutchison
Enterprises Three Ltd.

According to the Troubled Company Reporter - Asia Pacific, the
Liquidators presented their final accounts of the Company's
wind-up operations on July 17, 2006.


IAC BANK: In Talks to Acquire Indonesia's Bank Halim
----------------------------------------------------
Industrial and Commercial Bank of China is in talks to buy PT
Bank Halim Indonesia, the Financial Express reports, noting it
as a move that would mark the bank's first acquisition beyond
China.

"ICBC is in talks with Bank Halim Indonesia," Budi Mulya,
director of strategic planning and a spokesman for Bank
Indonesia, says.  Mr. Budi adds that officials from ICBC have
already met with the governor of Bank Indonesia but did not
disclose the value of the deal.

The Standard relates that Bank Halim, a small bank based in the
country's second-largest city of Surabaya, has total assets of
IDR490 billion or US$53.20 million.

"Chinese banks are a little behind the curve in not expanding
much outside their home base," Charlene Chu, a Beijing-based
director at Fitch Ratings, says.  "ICBC probably has some pretty
strong-profile corporate clients there."

Financial Express recounts that ICBC said in March it was
exploring opportunities in India and Latin America, in addition
to Indonesia.

                          *     *     *

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.  ICBC conducts operations across China as well as
in major international financial centers.

On September 18, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings affirmed ICBC' Individual D/E
rating.

Moody's Investors Service on August 9, 2006, placed on review
for upgrade Industrial and Commercial Bank of China's E+ Bank
Financial Strength Rating.  This follows Moody's earlier rating
action in November 2005 when the outlook for ICBC's BFSR was
revised to positive from stable.


LONGWILL ENGINEERING: Receive Wind-Up Order from Court
------------------------------------------------------
On September 13, 2006, Longwill Engineering Ltd received a wind-
up order from the High Court of Hong Kong.

According to the Troubled Company Reporter - Asia Pacific,
Silver View Property Development Ltd filed before the Court a
wind-up petition on June 1, 2006.


MATRIX INDUSTRIES: Liquidators Cease to Act for the Company
-----------------------------------------------------------
On September 13, 2006, James Wardell and Chan Wai Dune, Charles
ceased to act as joint and several liquidators for Matrix
Industries Ltd.

According to the The Troubled Company Reporter - Asia Pacific,
members and creditors of the Company received Liquidator
Wardell's final accounts on the Company's wind-up operations on
July 6, 2006.

The Joint Liquidators can be reached at:

         James Wardell
         Chan Wai Dune, Charles
         Room 1601-1602, 16/F
         One Hysan Avenue, Causeway Bay
         Hong Kong


MAX BRIDGE: Court to Hear Wind-Up Bid on Oct. 18
------------------------------------------------
A petition to wind-up Max Bridge Ltd will be heard before the
High Court of Hong Kong on October 18, 2006, at 9:30 a.m.

Fung Chiu Fai filed the petition with the Court on August 16,
2006.

The Solicitors for the Petitioner can be reached at:

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


MOKLEE LTD: Members Set to Meet on October 23
---------------------------------------------
Members of Moklee Ltd will hold a final meeting on October 23,
2006, 10:00 a.m., at 8th Floor, Gloucester Tower, The Landmark,
11 Pedder Street in Central, Hong Kong.

At the meeting, Liquidator O'Shaughnessy will present final
account showing how the company was wound up and how its
property was disposed of.


NEW CHINA ASSET: Members and Creditors to Hold Annual Meeting
-------------------------------------------------------------
The members and creditors of The New China Hong Kong Asset
Management Ltd will hold their annual general meetings at 3:00
p.m. and 3:30 p.m. respectively on October 10, 2006, at Room
1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, Hong Kong,.

Liquidator James Wardell will present an account of the
Company's wind-up proceedings.


NEW CHINA TRADING: Annual General Meeting Set on October 10
-----------------------------------------------------------
Members and creditors of The New China Hong Kong Trading
(Beijing) Ltd will hold their annual general meetings on
October 10, 2006, at Room 1601-02, 16th Floor, One Hysan Avenue,
Causeway Bay, Hong Kong, at 10:00 a.m. and 10:30 a.m.
respectively.

During the meeting, Liquidator James Wardell will present
accounts of the company's wind-up proceedings and property
disposal exercises.


NEWSON CONSTRUCTION: Faces Wind-Up Proceedings
----------------------------------------------
The High Court of Hong Kong will hear the wind-up petition
against Newson Construction Engineering Ltd on October 25, 2006,
at 9:30 a.m.

Yasar-Hussain filed the petition with the Court on August 30,
2006.

The Solicitors for the Petitioner can be reached at:

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


ORIENT POWER: Court Favors Wind-Up
----------------------------------
The High Court of Hong Kong issued a wind-up order against
Orient Power Car Stereos Ltd on September 13, 2006.

As reported by the Troubled Company Reporter - Asia Pacific, RSL
Electronic Co Ltd filed the petition on June 30, 2006.


PANVA GAS: Moody's Changes Ba2 Ratings' Outlook to Negative
-----------------------------------------------------------
Moody's Investors Service on September 28, 2006, changed the
outlook for Panva Gas Holdings' Ba2 corporate family rating and
senior unsecured bond rating to negative from stable following
its announcement of interim results for the half year ending
June 30, 2006.

"The negative outlook reflects Panva's lower-than-expected
financial performance mainly caused by lower contributions from
high-margin gas connection fees as a result of slower than
expected penetration growth and lowered connection fees," says
Jennifer Wong, Moody's lead analyst for the company."  Slower
penetration also poses uncertainties of the company achieving
its business growth plan and its expected financial profile
going forward," adds Wong.

Termination of its interest rate swap arrangements in September
2006 will substantially curtail the company's exposure to
interest rate volatility and lower its interest cost.  Panva's
interest cost is expected to decline from over 15% to 8.25% for
its bonds after unwinding the swaps.  The unwinding cost of
HKD436 million is within expectations and Panva's HKD953 million
cash on hand as of 1H2006 is more than sufficient to cover that.
However, this would weaken Panva's balance sheet liquidity.

Currently, the Ba2 rating continues to reflect Panva's exposure
to China's evolving regulatory and operating environment and the
competitive environments for wholesale and retail LPG businesses
- although the latter is partially mitigated by Panva's large
market share.  It also reflects the evolving business risk
profile as Panva's new acquisitions and investments continue.

At the same time, the rating considers the company's core credit
strengths, including favorable industry trends, which offer good
growth potential, and geographically diversified piped gas and
bottled LPG projects.

A rating upgrade is unlikely in the next 12-18 months with the
negative outlook.  However, the outlook could change to stable
if there is a clear trend of robust penetration growth reflected
by sustained strong contribution from connection fees and
improving operating profit margins.

Key credit metrics that Moody's would consider include: Adj.
FFO/Int. of over 2.5x in 2007 and 2008.

On the other hand, the rating may experience a downward trend if
signs emerge that Panva is unable to achieve the business growth
and return expected or should there be regulatory changes that
negatively affect its cash generating ability.

Furthermore, the rating would be under pressure if signs emerged
that Panva's balance sheet liquidity was weakened to such an
extent that cash-in-hand was insufficient to fund its capital
expenditure requirements on a rolling 12-month basis.
The key credit metrics that Moody's would consider for a rating
downgrade include Adj FFO/Int of below 2.0x.

                          *    *     *

Panva Gas, listed on the Hong Kong Stock Exchange, is primarily
engaged in the downstream selling and distribution of LPG and
natural gas in Mainland China.  Its main operations include the
sale of LPG in bulk and cylinders, the provision of piped
natural gas, the construction of gas pipelines and, to a lesser
extent, the sale of LPG household appliances.


THE JUNGLE: Wind-Up Bid Hearing Set on November 1
-------------------------------------------------
A liquidation petition filed against The Jungle Group Ltd will
be heard before the High Court of Hong Kong on November 1, 2006,
at 9:30 a.m.

Wongpitak Chatree filed the petition with the Court on
September 1, 2006.

The Solicitors for the Petitioner can be reached at:

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


UNITED FUND: Members to Hear Wind-Up Report
-------------------------------------------
A final general meeting will be held for the members of United
Fund Construction Ltd on October 23, 2006, 10:00 a.m., at Room
810, Argyle Centre, 688 Nathan Road, Kowloon.

During the meeting, Liquidator Alexander Chiu Wang Cheng will
report on the company's wind-up proceedings and property
disposal exercises.


VIEWELL ASIA: Liquidator to Present Wind-Up Report
--------------------------------------------------
Members and creditors of Viewell Asia Ltd will have a final
meeting on October 28, 2006, 9:30 a.m., at Room 602, 3 Lockhart
Road, Wanchai, Hong Kong.

At the meeting, Liquidator Mak Chi Leung, Paul will report the
company's wind-up proceedings and the manner of property
disposal.


W.L.Y. Enterprises: Court to Hear Wind-Up Petition on Nov. 1
------------------------------------------------------------
So Wing Shan on September 1, 2006, filed before the High Court
of Hong Kong a petition to wind-up the operation of W.L.Y.
Enterprises Ltd.

The Court will hear the petition on November 1, 2006, at 9:30
a.m.

The Solicitors for the Petitioner can be reached at:

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


* Fitch Says Credit Card Lending Crisis to Drive ABS Market
-----------------------------------------------------------
Fitch Ratings said on September 28, that the Taiwan's recent
credit card lending crisis may act as a catalyst for growth in
Taiwan's budding asset-backed securities -- ABS -- market.  This
despite the deterioration in the performance of the credit card
sector, which has temporarily dampened investors' appetite for
credit card ABS in 2006.

"The only benign accompaniment of the crisis is that local card
issuers have started to consider securitization as an effective
risk management tool," said Henry Hung, Fitch ABS analyst,
during Fitch's Taiwan Structured Finance and CDO Conference,
September 2006.

He added that upon the occurrence of Taiwan credit card crisis
at end-2005, the country's only two domestic credit card
transactions both breached their delinquency triggers and
entered into restructuring procedures to avoid early
amortization of the transactions.  Investors in these
transactions, however, deemed this a short-term event and have
approved restructuring plans based on new credit enhancement
levels.

Fitch expects that issuance of Taiwanese credit card ABS
transactions may re-surface in H207, provided that the
performance of the credit card market stabilizes during the
H107.

Providing an assessment of Taiwan's unsecured consumer lending
crisis, Jonathan Lee, senior director Financial Institutions,
was generally optimistic about the resilience of the sector.
Fitch estimates Taiwan banks would suffer an aggregate credit
loss of c.30% of their peak credit card revolving and cash card
loans seen in Q305.

The charge-offs peaked out in March-April 2006 with monthly-
annualized charge-off rates at around 30%.  As banks have
generally suspended card-related lending to fix asset quality,
Fitch expects further credit losses to be limited but spread out
through the time-line of the debt-restructuring programme, and
concentrated particularly over the next two years.

While the lingering credit losses will continue to dampen banks'
already weak profitability in 2007 to 2008, Fitch believes that
it will force much-needed mergers in the financial sector that
could see smaller market participants exit and larger ones
consolidate their market positions.  Despite the sharp decline
in credit card revolving credits, consumption via credit cards
appears to be resilient -- down only 1% year-on-year in July
2006 -- and should provide some support to banks' fee revenues.

Next, Jackie Lee, associate director Structured Credit,
discussed Taiwan's booming structured credit market, attributing
a large part of the growth to banks using these products as a
way of regaining lending flexibility.

"Many banks are keen to use collateralized debt obligation
technology to rebalance their lending capacity and capital
usage.  Otherwise, local banks may not be able to lend further
to specific high-growth industries, such as TFT and DRAM."
Fitch sees around TWD100 billion of structured credit products
in the pipeline.  "The expected deals are mainly on-balance-
sheet collateralized loan obligations and structured bond driven
transactions.

Currently, the market seems to have a preference for asset-
backed commercial paper to a term note structure given the
popularity of the recent issues of Ta Chong Bank 2006-1 and
2006-2 ABCP SPTs," Mr. Lee elaborated.

Fitch also sees residential mortgage-backed securitizations
returning to the fore.  With Hsinchu International Bank's recent
success on cross-border RMBS issuance, Fitch notes growing
interest in cross-border issuance from local market
participants.  "The most apparent benefit for local originators
to go offshore is to establish a new base of investors for
either funding or strategic purposes," said Mr. Hung.

The drivers for going offshore also include the desire to
accommodate large transactions, typically more than US$1-
billion, as well as growing appetite among international
investors for Asian paper, which offers them asset
diversification and attractive yields.  With diversified options
in issuance venues, local originators would benefit from
competitive funding costs, lower pricing volatility and
international capital markets recognition.

Finally, during the panel discussion led by Rachel Hardee, head
of Asia Pacific Structured Credit, Fitch and several external
Taiwan market participants debated key developments in Taiwan's
structured credit market.  Part of the discussion included what
structured credit products Taiwanese investors were currently
investing in and how Fitch products like Stability Scores, CDO
Asset Manager Ratings and the new Risk Analytics Platform for
Credit Derivatives ("RAP CD"), a breakthrough market risk
assessment service for synthetic CDOs, were useful tools for CDO
investors.


* Health Ministry Requires Internal Auditing in Big Hospitals
-------------------------------------------------------------
In an effort to intensify the crackdown on financial
mismanagement, China's health ministry asked big hospitals to
set up its own internal auditing offices, Xinhua News reports.

Under the new regulations, medical institutions with more than
300 beds or annual revenue of at least CNY30 million or US$3.75
million has to set up "independent" auditing offices with
professional auditing staff.

In addition, corporations and institutes with an annual revenue
of at least CNY20 million or US$2.5 million and subordinate
units in the health sector were ordered to conduct internal
auditing, according to the Ministry of Health.

Xinhua relates that the auditing offices will monitor and
instruct local health departments to audit their internal
financial incomes and expenses, as well as other financial
activities.

Severe punishment reportedly awaits the internal auditors, who
are involved in corruption, dereliction, leaks and abuses of
power.

Xinhua recounts that last month, more than 10,000 cases of
illegal pricing in the country's medical sector were reported,
involving illegal acquisitions of nearly CNY800 million or
US$100 million.

The Beijing University First Hospital is among those criticized
for serious illegal charges.


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

EXIM BANK: Signs INR10-Million Line of Credit to Mauritius
----------------------------------------------------------
The Export-Import Bank of India has concluded an agreement with
the Government of Mauritius in order to make a US$10-million
Line of Credit available, MyIris reports, citing the central
bank.

The credit agreement has become effective on August 11, 2006.

According to the report, the credit is available for financing
export of equipment, goods and services from India.  These goods
and services are eligible for export under the foreign trade
policy of Government of India for the construction of the Baie
du Tombeau Sewerage Project in Mauritius, MyIris notes.

MyIris says that the terminal dates for opening letters of
credit will be on August 10, 2008 -- 24 months from the
effective date of credit agreement -- and disbursement will be
on February 10, 2009 -- 30 months from the effective date of
credit agreement.

                        About Exim Bank

Export-Import Bank of India -- http://www.eximbankindia.com/--
was set up by an Act of Parliament in September 1981.  The
special purpose bank is wholly owned by the Government of India.
It aims to provide financial assistance to exporters and
importers, and to function as the principal financial
institution for coordinating the working of institutions engaged
in financing export and import of goods and services.

Headquartered in Mumbai, India, the bank also has overseas
offices in Budapest, Johannesburg, London, Singapore, Washington
DC.

On February 2, 2005, Standard and Poor's Ratings Service gave
Exim Bank's long-term foreign issuer credit a BB+ rating.


EXIM BANK: Finalizes US$17-Million LoC to Nigerian Government
-------------------------------------------------------------
The Export-Import Bank of India has concluded an agreement with,
and makes available a Line of Credit to, the Government of
Niger, Zee News relates.

According to the report, the LoC, which had become effective on
August 30, 2006, is worth US$17 million.

Zee News says that the credit would finance the export of goods
and services from India that are eligible for export under the
foreign trade policy of the Indian Government.

The utilization period under the LoC will expire at the end of
48 months from the scheduled completion date of the contract in
case of project exports and February 7, 2012 -- 72 months from
the date of execution of the credit agreement -- in case of
supply contracts.

                        About Exim Bank

Export-Import Bank of India -- http://www.eximbankindia.com/--
was set up by an Act of Parliament in September 1981.  The
special purpose bank is wholly owned by the Government of India.
It aims to provide financial assistance to exporters and
importers, and to function as the principal financial
institution for coordinating the working of institutions engaged
in financing export and import of goods and services.

Headquartered in Mumbai, India, the bank also has overseas
offices in Budapest, Johannesburg, London, Singapore, Washington
DC.

On February 2, 2005, Standard and Poor's Ratings Service gave
Exim Bank's long-term foreign issuer credit a BB+ rating.


GENERAL MOTORS: Top Investor Presses for Renault-Nissan Tie-Up
--------------------------------------------------------------
General Motors Corporation's largest shareholder, Kirk
Kerkorian, has been urging General Motors Corp. to consider its
proposed alliance with Renault SA and Nissan Motor Company, the
International Herald Tribune reports.

Mr. Kerkorian, who already owns 9.9% of GM through his
investment company Tracinda, informed GM Chief Executive Officer
Rick Wagoner that Tracinda is willing to buy 12 million more
shares in the carmaker, the Tribune relates.

According to MoneyControl, the expanded stake would cost about
US$393 million dollars and boost Tracinda's holdings in General
Motors to 12% from 9.9%.

The Tribune states that the proposed stake purchase would
require regulatory approval because they would result in
Mr. Kekorian owning more than 10% of GM's stock.

While Tracinda believes that a potential three-way alliance
between GM, Renault and Nissan is ideal, GM executives are
skeptical if the tie-up makes sense for the company,
MoneyControl says.

GM said Wednesday that the auto company was well on its way to a
turnaround on its own, without an alliance with Renault and
Nissan, which Renault controls.  Industry experts took that to
mean no deal was likely to be struck, The New York Times
reveals.

However, despite the comments made by GM executives, Mr. Wagoner
has agreed to extend tie-up talks beyond the mid-October
deadline during a meeting with Renault-Nissan's Carlos Ghosn on
September 27, 2006, in Paris, The Times adds.

                       About General Motors

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries.

                           *     *     *

As reported in the Troubled Company Reporter on July 28, 2006,
Standard & Poor's Ratings Services held all of its ratings on
General Motors Corp. -- including the 'B' corporate credit
rating, but excluding the '1' recovery rating -- on CreditWatch
with negative implications, where they were placed March 29,
2006.  The CreditWatch update followed GM's announcement of
second quarter results and other recent developments involving
its bank facility and progress on the GMAC sale.

As reported in the Troubled Company Reporter on July 27, 2006,
Dominion Bond Rating Service downgraded the long-term debt
ratings of General Motors Corporation and General Motors of
Canada Limited to B.  The commercial paper ratings of both
companies are also downgraded to R-3 (low) from R-3.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1'
to General Motor's new US$4.48 billion senior secured bank
facility.  The 'RR1' is based on the collateral package and
other protectionsthat are expected to provide full recovery in
the event of a bankruptcy filing.

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


GULFMARK OFFSHORE: Moody's Assigns Loss-Given-Default Rating
------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors this week, the rating agency confirmed its Ba3 Corporate
Family Rating for GulfMark Offshore Inc. and its B1 rating on
the company's 7.75% Senior Unsecured Guaranteed Global Notes Due
2014.  Moody's assigned those debentures an LGD5 rating
suggesting noteholders will experience a 78% loss in case of
default.

Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Houston, Texas, GulfMark Offshore, Inc. --
http://www.gulfmark.com/-- is a provider of offshore marine
services primarily to oil and gas exploration production firms
in India, Southeast Asia, the North Sea, Brazil and West Africa.

The Troubled Company Reporter - Asia Pacific reported that
Moody's Investors Service upgraded GulfMark Offshore, Inc.'s
corporate family rating from B1 to Ba3 and its US$160 million
senior unsecured notes due 2014 from B2 to B1.  The outlook is
stable.


INDUSIND BANK: Fitch Affirms 'D' Individual Rating
--------------------------------------------------
Fitch Ratings revised the ratings Outlook on IndusInd Bank
Limited to Negative from Stable.  At the same time, the agency
has also assigned an 'A(ind)' National Long-term rating to IBL's
INR500 million Upper Tier 2 bonds with a Negative Outlook.
Fitch also affirmed all of IBL's ratings as follows:

   -- National Long-term at 'A+(ind)'/Negative;
   -- National Short-term at 'F1+(ind)';
   -- INR5,575m subordinated debt at 'A+(ind)'/Negative;
   -- INR1,500m Upper Tier 2 bonds at 'A(ind)'/Negative;
   -- INR2,500m certificates of deposit programme at 'F1+(ind)';
   -- Individual at 'D'; and
   -- Support at '5'.

The revision in Outlook reflects the reduction in the capital
adequacy ratio of the bank.  IBL's regulatory CAR fell to 9.8%
at June 2006 (March 2006: 10.5%, Tier 1: 6.8%) and its equity to
assets ratio (4.5% at June 2006; 4.9% at March 2006) is the
lowest in the National rating category among Indian banks rated
by Fitch.  The CAR had been affected by the deduction of credit
enhancements for securitisation transactions in the financial
year ending March 2006; the bank had issued Tier 2 capital,
including Upper Tier 2 capital, and temporarily offloaded some
loans from its balance sheet in order to shore up the CAR.
Fitch notes, however, that an equity infusion is important to
support the bank's long-term improvement in performance.

The fundamentals of IBL's long-term improvement were put in
place following the write-off of the legacy corporate non-
performing loans and the addition of the more profitable retail
business to IBL's portfolio through the merger with Ashok
Leyland Finance in FY04.  The bank's asset quality (gross NPL
ratio: 2.9% at March 2006) and business profile have improved
following these developments.  Fitch, however, notes that its
operating performance has been weak in FY06 and Q107.  IBL's net
interest margin (2% in FY06, 2.9% in FY05) came under pressure
due to the intense competition in the commercial vehicle
financing business (30% of IBL's loan portfolio), the rising
cost of funds and the elimination of upfront profits on sale of
securitised assets.

Although yields on incremental loans have improved over the past
quarter in line with systemic trends, a repricing of the entire
loan portfolio would only take place over the next 18 to 24
months.  By that time, IBL's investments in expanding its
branches would also be expected to translate into an improvement
in its low-cost deposit base (currently 13% of total deposits)
and result in higher margins.

The agency notes that IBL plans to raise equity from strategic
investors, although the timing of the issue and the quantum of
infusion has yet to be announced. The bank's ratings could come
under downward pressure if its plans to raise equity does not
materialize ahead of the proposed capital charge for operational
risk under the proposed Basel II guidelines that could be
introduced in March 2007.  An improvement in its capitalization
could result in the ratings Outlook being revised to Stable.


KOTAK MAHINDRA: Board OKs Demerging Pursuant to Restructuring
-------------------------------------------------------------
Kotak Mahindra Bank Ltd's board of directors approved the draft
scheme of arrangement to demerge the trading and principal
department of Kotak Mahindra Capital Company Ltd and merge it
back to the Bank.

The Board gave its nod at a meeting on September 29, 2006.

The Scheme is still subject to requisite approvals including
those of the Stock Exchanges under the Listing Agreement,
shareholders, creditors and other regulatory authorities.

The Board of KMCC and Kotak Mahindra Securities Ltd, in a
meeting also held on September 29, approved the demerger of the
trading and clearing operations and strategic investments of
KMSL into KMCC, subject to necessary approvals.

The demergers are part of Kotak Mahindra's proposed internal
restructuring.

                      About Kotak Mahindra

Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank.  The Commercial
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services.  Corporate Centre segment includes
strategic investment and activities.  Car Finance segment offers
car financing.  Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization.  Investment
Banking segment includes advisory and transactional services
providing financial advisory services.  Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits.  Insurance segment offers life
insurance.  Others segment includes forex broking, asset
management services and others.

Fitch Ratings assigned a '5' Support rating to Kotak Mahindra
Bank.


KOTAK MAHINDRA: Acquires 51% Paid-Up Capital of KMSL
----------------------------------------------------
Kotak Mahindra Bank Ltd informed the Bombay Stock Exchange that,
with the Bank's receipt of required approvals, it has now
acquired 51% paid up shares of Kotak Mahindra Securities Ltd.

Hence, KMSL has become a "direct" subsidiary of Kotak Mahindra.
Previously, KMSL was an "indirect" subsidiary of the Bank.

Kotak Mahindra acquired the stake by way of preferential
allotment of shares by KMSL to the Bank.

                      About Kotak Mahindra

Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank.  The Commercial
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services.  Corporate Centre segment includes
strategic investment and activities.  Car Finance segment offers
car financing.  Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization.  Investment
Banking segment includes advisory and transactional services
providing financial advisory services.  Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits.  Insurance segment offers life
insurance.  Others segment includes forex broking, asset
management services and others.

Fitch Ratings assigned a '5' Support rating to Kotak Mahindra
Bank.


KOTAK MAHINDRA: Allots 26,152 Equity Shares under ESOP
------------------------------------------------------
The ESOP Allotment Committee of Kotak Mahindra Bank Ltd allotted
26,152 equity stock of INR10 each, pursuant to the exercise of
Employees Stock Options granted under the Kotak Mahindra Equity
Options Plan 2002-03.

As reported in the Troubled Company Reporter - Asia Pacific, the
bank had allotted 20,212 equity shares of INR10 each on
September 14, 2006, pursuant to the ESOP.

                      About Kotak Mahindra

Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank.  The Commercial
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services.  Corporate Centre segment includes
strategic investment and activities.  Car Finance segment offers
car financing.  Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization.  Investment
Banking segment includes advisory and transactional services
providing financial advisory services.  Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits.  Insurance segment offers life
insurance.  Others segment includes forex broking, asset
management services and others.

Fitch Ratings assigned a '5' Support rating to Kotak Mahindra
Bank.


TATA POWER: Maithon Power Starts Work on 1000-MW Plant
------------------------------------------------------
On September 27, 2006, Maithon Power Ltd, a joint venture of
Tata Power Company Ltd and Damodar Valley Corporation,
ceremonially broke the ground to start construction of a 1000-
megawatt Mega Power Plant at Maithon in Jharkhand, India.

The estimated capital cost of the project is around
INR3800 crore and will be funded through a 70:30 debt to equity
ratio.  Tata Power will contribute approximately INR840 crore to
the equity corpus, with Damodar Valley contributing about
INR300 crore.

The 1000-MW Right Bank Thermal Power Project is the first
initiative in public partnership in the area of generation, Tata
Power said in a regulatory filing at the Bombay Stock Exchange.

According to the filing, the power from the Maithon Project is
to be exported to power deficit in India's western and northern
states and to meet the requirements of Damodar Valley.

Earlier, Tata Power signed a Shareholders Agreement with Damodar
Valley for the Maithon Project.  Tata Power has 74% equity in
the venture, with the Government of India holding 26% of Damodar
Valley's equity.

Tata Power expects financial closure for the Maithon Project
around mid 2007.

Pursuant to Tata Power's current plans, the Project will
comprise of two generating units of which the commissioning of
the first unit is scheduled for Late 2009 and that of the second
unit by mid 2010.

The total land required for the project is about 1200 acres and
currently a significant portion of the land has been acquired by
DVC.

Tata Power said that the project has all the major permits and
clearances, including from the Pollution Control Board.

The estimated capital cost of the project is around
INR3800 crore and will be funded through a 70:30 debt to equity
ratio.  Tata Power will contribute approximately INR840 crore to
the equity corpus, with DVC contributing about INR300 crore.

                        About Tata Power

Headquartered in Mumbai, India, Tata Power Company Limited --
http://www.tatapower.com/-- is engaged in the business of
generation, transmission and distribution of electricity with
operations in the states of Maharashtra, Jharkhand and
Karnataka.  The company operates two business segments: the
power business segment and the other business segment.  Its
power business segment is engaged in the generation,
transmission and distribution of electricity.  The company's
other business segment includes electronics and project
consultancy.  During the fiscal year ended March 31, 2006, the
power business contributed about 94% of the Company's revenues.
On December 2, 2005, it completed the acquisition of 74% equity
stake in Maithon Power Limited from Damodar Valley Corporation.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
November 10, 2005, that Standard & Poor's Ratings Services
affirmed its 'BB+' long-term foreign and local currency
corporate credit ratings for Tata Power.  The outlook is stable.


TATA POWER: Adds Nawshir Mirza to Board of Directors
----------------------------------------------------
Tata Power Company appoints Nawshir H Mirza as an additional
director on the Company's Board of Directors, effective
September 29, 2006.

As previously reported by the Troubled Company Reporter - Asia
Pacific, C P Mistry stepped down as a director of the
Company effective September 18, 2006.

Mr. Mirza, a fellow of the Institute of Chartered Accountants of
India, spent most of his career with Ernst & Young and its
Indian member firm, S.R.Batliboi & Co, Chartered Accountants,
and its predecessor firm, Arthur Young, as partner from 1974 to
2003.

Mr. Mirza is also a director on the Boards of Esab India
Limited, Tata Industries Limited, RPG Guardian Private Limited,
Foodworld Supermarkets Limited and Jardine Shipping Services
(India) Private Limited.

                        About Tata Power

Headquartered in Mumbai, India, Tata Power Company Limited --
http://www.tatapower.com/-- is engaged in the business of
generation, transmission and distribution of electricity with
operations in the states of Maharashtra, Jharkhand and
Karnataka.  The company operates two business segments: the
power business segment and the other business segment.  Its
power business segment is engaged in the generation,
transmission and distribution of electricity.  The company's
other business segment includes electronics and project
consultancy.  During the fiscal year ended March 31, 2006, the
power business contributed about 94% of the Company's revenues.
On December 2, 2005, it completed the acquisition of 74% equity
stake in Maithon Power Limited from Damodar Valley Corporation.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
November 10, 2005, that Standard & Poor's Ratings Services
affirmed its 'BB+' long-term foreign and local currency
corporate credit ratings for Tata Power.  The outlook is stable.


UNITED WESTERN: Posts INR146.4-Mil Loss for 2nd Quarter 2006
------------------------------------------------------------
United Western Bank Ltd. incurred INR60.8 million in net losses
for the quarter ended June 30, 2006, an improvement from the net
loss figure of INR146.4 million for the same period last year.

Income from operations for the second quarter of 2006 total
INR1.552 billion with the bulk coming from interest earned
operating income of INR1.323 billion.

The Company also recorded INR228.4 million other income for the
quarter ended June 30, 2006.

United Western's financial results for the quarter ended
June 30, 2006, is available at the Bombay Stock Exchange at:

http://bseindia.com/qresann/result.asp?scripcd=500430&scripname=
United+Western+Bank+Ltd&quarter=JQ2006-2007&type=50

                      About United Western

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

                          *     *     *

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


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

BANK DANAMON: Plans to Issue Rupiah Bonds Early Next Year
---------------------------------------------------------
PT Bank Danamon Indonesia Tbk is planning to issue rupiah bonds
in the first quarter of 2007 to support its loan expansion
program, Antara News reports, citing bank president Sebastian
Paredes.

Mr. Paredes said that the size of the bond issue is still being
assessed by management.

According to the report, Mr. Paredes, commenting on the central
bank's planned single-presence policy, said that Danamon
shareholders have not decided yet whether to merge with Bank
Internasional Indonesia or not.

Under Bank Indonesia's proposed single-presence policy, one
shareholder will be allowed to control only one bank, and so
banks that share the same owner will be required to merge.

"We're still waiting for the guidelines from Bank Indonesia,
which hopefully will be issued soon.  [The merger] will depend
on the shareholders, what will be best for them and for the
bank," he said.

Mr. Paredes added that the decision on a merger will take some
time since both Danamon and BII have to consult their respective
majority and minority shareholders and seek their approvals.

Antara notes that BII and Bank Danamon are owned indirectly by
Singapore's Temasek Holdings.

Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia
Tbk provides a range of products and services, including
Consumer Banking, Small to Medium-Sized Enterprise and
Commercial, Trade Finance, Treasury Product, Cash Management,
Other Services, Financial Planning and e-Banking.  Danamon
Syariah is the Bank's business unit that provides its customers
with syariah banking products and services.  The Bank also
operates Danamon Simpan Pinjam, which caters to micro banking
customers.  DSP is divided into two groups: DSP to serve and
help enterprises in micro and small-scale banking, and DSP for
individual customers with fixed income.  Bank Danamon is
supported by 86 domestic branch offices, 325 domestic supporting
branch offices, 25 domestic cash office, 739 supporting branches
for DSP, six personal banking branch offices, 10 syariah branch
offices and one overseas branch.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
July 5, 2006, that Moody's Investors Service has placed Bank
Danamon Indonesia's D- bank financial strength rating on review
for possible upgrade.

These ratings were unaffected:

   -- Subordinated debt of Ba3.  The outlook is stable; and

   -- Long-term/short-term deposit of B2/Not Prime.  The outlook
      is stable.

Fitch Ratings, according to a May 24, 2006 TCR-AP report,
affirmed Bank Danamon's:

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

   * Short-term at 'B';

   * Individual at 'C/D'; and

   * Support at '4'.


DIRECTED ELECTRONICS: Polk Merger Plan Cues S&P's Negative Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' corporate
credit rating on consumer electronics maker Directed Electronics
Inc. on CreditWatch with negative implications.  The rating
action follows the company's announcement that it intends to
acquire Polk Audio Inc., a provider of loudspeakers and audio
equipment for homes and cars, for US$136 million in cash.

When the transaction is completed, Standard & Poor's expects to
lower Vista, California-based DEI's corporate credit rating to
'B+' and assign a stable outlook.  Also at closing, Standard &
Poor's will withdraw the ratings on DEI's existing senior
secured bank loan.  Pro forma balance sheet debt at June 30,
2006, taking into account the proposed acquisition, will total
about US$307 million.

In addition, Standard & Poor's assigned its 'B+' senior secured
bank loan rating and '3' recovery rating to DEI Sales Inc.'s (a
direct subsidiary of DEI) proposed US$407 million amended and
restated senior secured credit facilities maturing in 2013,
which includes a US$100 million revolving credit facility that
will be undrawn at close.  The debt rating and recovery rating
indicate the likelihood of a meaningful recovery of principal
(50%-80%) in the event of default or bankruptcy, based on an
assessment of the company's enterprise value.

"The CreditWatch listing reflects DEI's weaker financial
position following the Polk acquisition, since the company will
increase the size of its term loan by US$141 million under an
amended and restated senior secured credit facility to fund the
transaction," said Standard & Poor's credit analyst Nancy C.
Messer.

This amount will be an addition to the company's existing
US$165.8 million term loan.  At the same time that debt is
increased, DEI will be required to invest higher levels of
working capital in the next several years to support its product
build for the satellite radio accessories market.  As a result
of the higher cash interest expense and required investment in
working capital, the company will generate minimal free cash
flow for debt reduction in 2006 and 2007.

Beginning in 2008, the company expects to generate sufficient
free cash flow to allow for debt reduction.  After the
acquisition, the company will be highly leveraged, as the
company expands and diversifies sales through new product
introductions and possible periodic acquisitions.  This ratio
will exceed Standard & Poor's expectations for the 'BB-' rating.

The company has Asian Sales offices in Indonesia, India, Japan,
Malaysia, Singapore, Korea and Thailand.


DIRECTED ELECTRONICS: Completes Acquisition of Polk Audio
---------------------------------------------------------
Directed Electronics, Inc. (Nasdaq: DEIX), revealed the closing
of its acquisition of Polk Audio and related financing.
Originally announced August 22, Polk Audio greatly expands
Directed's high performance home and mobile audio equipment
offering and current Polk management has joined the Directed
team.  Consideration for the acquisition was approximately
US$136 million in cash.  Directed expects the acquisition to be
accretive to its pro forma net earnings in 2006 and beyond.

"We are very excited to have completed the purchase of Polk
Audio and the financing associated with this acquisition.
Polk's leading consumer brand complements our current Definitive
Technology product line and gives us the number 1 position in
the U.S. home speaker market according to industry data,"
commented Jim Minarik, President and CEO of Directed.  "We are
pleased to have the Polk management team join Directed, and we
believe this acquisition will create many expansion
opportunities for both of these marquee brands."

                   About Directed Electronics

Directed Electronics, Inc. (Nasdaq: DEIX)--
http://www.directed.com/-- is the largest designer and marketer
of consumer branded vehicle security and convenience systems in
the United States based on sales and a major supplier of home
audio, mobile audio and video, and satellite radio products.  As
the sales leader in the vehicle security and convenience
category, Directed offers a broad range of products, including
security, remote start, hybrid systems, GPS tracking and
navigation, and accessories, which are sold under its Viper(R),
Clifford(R), Python(R), and other brand names. In the home audio
market, Directed designs and markets Definitive Technology(R)
and a/d/s/(R) premium loudspeakers.  Directed's mobile audio
products include speakers, subwoofers, and amplifiers.  Directed
also markets a variety of mobile video systems under the
Directed Video(R), Directed Mobile Media(R) and Automate(R)
brand names.  Directed also markets and sells certain SIRIUS-
branded satellite radio products, with exclusive distribution
rights for such products to Directed's existing U.S. retailer
customer base. The company has Asian Sales offices, including in
Indonesia, Japan, Malaysia, Singapore, Korea and Thailand.

Standard & Poor's Ratings Services placed its 'BB-' corporate
credit rating on Directed Electronics Inc. on CreditWatch with
negative implications.  The rating action follows the company's
announcement that it intends to acquire Polk Audio Inc., a
provider of loudspeakers and audio equipment for homes and cars,
for US$136 million in cash.


HANOVER COMPRESSOR: Moody's Assigns Loss-Given-Default Rating
-------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors this week, the rating agency confirmed its B1 Corporate
Family Rating for Hanover Compressor Company.

Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:

Issuer: Hanover Compressor Company

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   4.75% Sr. Unsec.
   Conv Notes Due 2008    B3       B3      LGD5       89%

   8.625% Sr. Unsec.
   Gtd. Notes Due 2010    B3       B2      LGD4       59%

   4.75% Sr. Unsec.
   Conv Notes Due 2014    B3       B3      LGD5       89%

   9% Sr. Unsec. Gtd.
   Notes Due 2014         B3       B2      LGD4       59%

   7.5% Sr. Unsec. Gtd.
   Notes Due 2013         B3       B2      LGD4       59%

   7.25% Conv.
   Preferred
   Securities Due 2029   Caa1      B3      LGD6       96%

Issuer: Hanover Equipment Trust 2001A

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   2001 A Equipment
   Lease Notes
   Due 2008               B2      Ba3      LGD3       30%

Issuer: Hanover Equipment Trust 2001B

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   2001 B Equipment
   Lease Notes
   Due 2011               B2      Ba3      LGD3       30%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Houston, Texas, Hanover Compressor Company --
http://www.hanover-co.com-- rents and repairs compressors and
performs natural gas compression services for oil and gas
companies.  It has a fleet of more than 6,520 mobile compressors
ranging from 8 to 4,735 horsepower.  The company's subsidiaries
also provide service, fabrication, and equipment for oil and
natural gas processing and transportation applications.  Hanover
Compressor is disposing of its non-oilfield power generation
facilities and used equipment businesses to focus on core
operations.  In 2006 the company sold the US amine treating
rental assets of Hanover Compression Limited Partnership to oil
and gas firm Crosstex Energy for about US$52 million.

The company has locations in Indonesia, Japan, Korea, Peru,
Taiwan, Trinidad, the United Kingdom, Venezuela and Vietnam,
among others.


MATAHARI PUTRA: S&P Affirms B+ Rating to Senior Unsecured Bonds
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' rating to
the proposed long-term senior unsecured bonds to be issued by
Matahari Finance B.V., a special purpose financing vehicle
wholly owned by Indonesia-based retailer PT Matahari
Putra Prima Tbk. (Matahari; B+/Stable/--).  The bond, which will
be due in 2009, will have an issue size of US$100 million to
US$150 million.

The rating on the proposed bonds mirrors the corporate credit
rating on Matahari, as the bonds will be irrevocably and
unconditionally guaranteed by Matahari, and will rank pari passu
with all existing and future senior unsecured obligations.
Proceeds from the issue will mainly be used to fund Matahari's
expansion program and partly to refinance existing borrowings.

With total assets of IDR4.55 trillion (US$499 million) as at
June 30, 2006, Matahari is Indonesia's largest retailer.  It is
the market leader in the department store segment, while its
presence in supermarkets and hypermarkets is growing.  A large
base of retail outlets provides earnings diversity and allows
the company to benefit from economies of scale in procurement,
logistics, and inventory management.

Nevertheless, the rating on Matahari is constrained by its
highly leveraged financial profile, which is expected to remain
weak in the medium-term due to its sizable IDR6.3 trillion
capital expenditure program over the next six years.  After
inclusion of rental expenses as debt, the company had debt to
EBITDA of 3.3x, debt to capitalization of 60.1%, and funds from
operations to total debt of 23.9% at Dec. 31, 2005.

The company also faces challenging operating conditions due to
the economic and political climate in Indonesia, and execution
and earnings risks from its store location rejuvenation program.

                      About Matahari Putra

Headquartered in Tangerang, Indonesia, PT Matahari Putra Prima
Tbk -- http://www.matahari.co.id/-- is a consumer goods company
engaged in the retail business, providing clothes, jewelries,
bags, shoes, cosmetics, electronics appliances, toys,
stationeries, books, drugs and other everyday needs.  It is also
engaged in the family entertainment industry through the
operation of Time Zone, a game center.  The company operates
Matahari Supermarket, Hypermart stores, Cut Price stores, Boston
Drugs pharmacies, Baker's Delight bakeries, Deli Bon stores and
Market Place grocery stores.  During the year ended December 31,
2005, the company opened its first store in Shenzhen, China, 13
Hypermart stores, four Cut Price stores and one Matahari
Supermarket.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on May 23,
2006, that Moody's Investors Service assigned its (P)B1 local
currency corporate family rating to PT Matahari Putra Prima Tbk.
At the same time, Moody's has assigned its (P)B1 foreign
currency senior unsecured rating to Matahari Finance BV's
proposed bond of up to US$300 million, which is guaranteed by
Matahari.  The ratings outlook is stable.

Earlier TCR-AP reports on May 15, and May 22, 2006, stated that
Standard & Poor's Ratings Services has raised its corporate
credit rating on Indonesia's PT Matahari Putra Prima Tbk to "B+"
from "B-", with a stable outlook, while the company's proposed
long-term senior unsecured bonds of up to US$300 million to be
issued by Matahari Finance B.V., a special purpose financing
vehicle wholly owned by Indonesia-based retailer PT Matahari
Putra Prima Tbk, got a 'B+' rating.


TUPPERWARE BRANDS: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. rental company sector this week, the
rating agency lowered its Ba2 Corporate Family Rating for
Tupperware Brands Corporation to Ba3.  Additionally, Moody's
revised its probability-of-default ratings and assigned loss-
given-default ratings on these loans and bond debt obligations:

                           Projected

                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$715 Million
   Sr. Sec. Term Loan
   due 2012               Ba2       Ba1     LGD2      25%

   US$200 Million Sr.
   Sec. Revolving
   Credit Facility
   due 2010               Ba2       Ba1     LGD2      25%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Tupperware Brands Corporation -- http://www.tupperware.com/--  
is a global direct seller of premium, innovative products across
multiple brands and categories through an independent sales
force of approximately 1.9 million.  Tupperware's product brands
and categories include design-centric preparation, storage and
serving solutions for the kitchen and home through the
Tupperware brand and beauty and personal care products through
its Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics,
Nuvo and Swissgarde brands.

The company has operations in Indonesia, Argentina, Australia,
Bahamas, Brazil, China, France, Germany, Philippines, Spain, and
Sweden, among others.


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

ALL NIPPON: Announces Corporate Plan Changes
--------------------------------------------
All Nippon Airways Co. Limited has filed changes to its 2006
Corporate Plan with the Ministry of Land, Infrastructure and
Transport, the company announced in a press release.

The major changes, subject to approval by the authorities, are:

   -- International Operations

      More flights and improved schedules to maximize partner
      hub strategy and profitability on Asian routes;
      implementation of more daily services to China
      destinations.

      * Star Alliance Hubs - Increased network competitive
        strength, and profitability on Asian routes, by working
        with fellow Star Alliance member airlines in North
        America and Asia to improve connectivity at their hub
        airports.  Namely, the commencement of Tokyo-Chicago
        daily flights, and the increase of Tokyo-Singapore
        frequencies to double daily from the 2006 winter
        schedule.  Furthermore, from September 28, 2006, a move
        to Bangkok's new Suvarnabhumi Airport with Star Alliance
        member carriers and an improved Tokyo-Bangkok schedule
        will allow more convenient connections beyond Bangkok.

      * More Flights to China - Thanks to the successful outcome
        of bilateral talks with China in July this year,
        improved China network by increasing flights to Xiamen
        and Qingdao from Tokyo to a daily service, and
        commencing flights to Tianjing from Nagoya Centrair.
        These will commence with the 2006 winter schedule.

   -- Domestic Operations

      More flights between Naha and the outlying islands of
      Ishigaki and Miyako to improve efficiencies in the region
      and give greater choice to customers flying from Tokyo and
      other parts of Japan.

                    About All Nippon Airways

Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline
company in terms of revenue.  The company, which was founded in
1952, provides these services:

   1. Scheduled air transportation business;

   2. Nonscheduled air transportation business and business
      utilizing aircraft;

   3. Business of buying, selling, leasing and maintenance of
      aircraft and aircraft parts; and

   4. Aircraft transportation ground support business, including
      passenger boarding procedures and loading of hand baggage.

The airlines flies to all key Asian destinations, the United
States and Canada, France, the United Kingdom and key European
countries.

As reported in the Troubled Company Reporter - Asia Pacific on
June 13, 2006, Fitch Ratings said that the credit quality gap
between Japan's top two airlines continues to widen with All
Nippon Airways Co. Limited -- rated 'BB+'/Stable -- benefiting
from market improvements, while its rival, Japan Airlines
Corporation -- rated 'BB-'/Stable -- continues to be grounded by
internal woes.

The TCR-AP also stated on May 30, 2006, that Moody's Investors
Service has upgraded to Ba1 from Ba3 the senior unsecured debt
ratings of All Nippon Airways Co., Ltd.  The rating action
concludes the review initiated on March 3, 2006.  The rating
outlook is stable.

On May 3, 2006, Standard & Poor's Ratings Services revised its
outlook on the BB- long-term corporate credit rating on All
Nippon Airways to positive from stable, reflecting the company's
improved earnings and expectations for stable profitability,
thanks to cost reductions efforts as well as a stronger
competitive position.


BORGWARNER CAPITAL: Moody's Rates Preferred Shelf (P)Ba1
--------------------------------------------------------
Moody's Investors Service has affirmed the debt ratings of
BorgWarner Inc. senior unsecured at Baa2, but changed the rating
outlook to stable from positive.  The actions follow BWA's
announcement of Sept. 22 in which it reduced guidance for 2006
earnings and cash flow from a combination of significantly
lowered North American customer production schedules,
restructuring programs within BWA, and the impact of higher
metal costs on its margins.  While BWA benefits from significant
customer and geographic diversification and well positioned
product offerings, the magnitude of the downdraft from
structural changes in North America limits short-term
expectations and will constrain the timing and pace at which
further improvements in the company's financial standing can be
expected.  Many of these challenges will continue into 2007.
Despite the weaker environment, BWA's financial metrics are
expected to remain supportive of the Baa2 rating, and the
outlook is stable.

Ratings affirmed:

   * BorgWarner Inc.

     -- Senior Unsecured, Baa2
     -- Subordinated shelf, (P)Baa3
     -- Preferred shelf, (P)Ba1

   * BorgWarner Capital Trusts I, II, and III

     -- Shelf ratings for trust preferred, (P)Baa3

The last rating action was on December 8, 2004 at which time
BWA's long-term ratings were confirmed and a positive outlook
was established.

BWA reduced its guidance for full year 2006 earnings by
approximately US$23-$27 million (after-tax) prior to the impact
of a restructuring charge of roughly US$9 million (after tax) to
reduce its North American workforce by 13%.  While this
restructuring represents an appropriate action that will be
supportive of future performance, margins over the balance of
the year will be adversely affected by declines in production
volumes announced by General Motors, Ford Motor Company and
DaimlerChrysler, as well as the rising cost of nickel used
primarily in its turbocharger products.

Collectively, the global operations of the Big 3 OEMs accounted
for 37% of 2005 revenues (roughly 22% from their North American
base), but a significantly higher percentage of BWA's North
American revenues.  While the majority of the company's revenues
and earnings are generated offshore, improvements in those
segments will not offset poorer performance in North America in
the second half of 2006.

Over time, demand for the company's products, diversification
from its customer and geographic base, savings from the
restructuring program, and book of business awards should be
conducive for resumption of revenue and earnings growth.
However, in the near term, structural shifts in North American
vehicle preferences and OEM market share will impact
consolidated operating results, resultant coverage ratios, and
limit progress in reducing indebtedness incurred for acquiring a
69.4% stake in Beru AG. Quantitative metrics are strong for the
rating category, and qualitative factors in the Supplier
Methodology remain fully supportive of the Baa2 rating.

                          *     *     *

Headquartered in Auburn Hills, MI, BorgWarner Inc.
-- http://www.bwauto.com/-- produces highly engineered
components and systems for vehicle powertrain applications.  The
company operates manufacturing and technical facilities in 62
locations in 17 countries, including Japan, Brazil, China,
India, France, Germany, Mexico, South Korea, and Spain.
Revenues in 2005 were approximately US$4.3 billion.


DAIEI INC: Wants to Sell OPA to Hasten Debt Repayment
-----------------------------------------------------
Daiei Inc. is looking to sell affiliate OPA, a company
specializing in renting commercial buildings, in an attempt to
speed up its financial recovery, the Yomiuri Shimbun reports.

OPA has rental space in buildings in 10 locations, including
Tama, Tokyo, Kawasaki, Osaka and Fukuoka, the paper says.  In
the 2005 business year, rents from its stores stood at
JPY84.9 billion.

The Yomiuri relates that because Aeon Co. and Wal-Mart Stores
Inc. are being considered as a partner to assist in its
rehabilitation, Daiei has determined that it no longer needs a
group company to manage tenant buildings, since both Aeon and
Wal-Mart have such expertise.

Sources further told The Yomiuri that Daiei had originally
planned to sell some of the OPA stores, such as the Naha OPA in
Okinawa Prefecture, as it hoped other OPA stores would help
boost its retail sales, but since it wants to improve its
finances as soon as possible, it has decided to sell the entire
OPA company.

Daiei's consolidated interest-bearing debt stood at
JPY413 billion at the end of February 2006, not including
liabilities of OMC Card Inc., a consumer credit service
subsidiary of the retail chain.

                        About Daiei Inc.

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

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

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

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


FORD MOTOR: Cuts 2,000 Salaried Worker Positions to Reduce Costs
----------------------------------------------------------------
Ford Motor Credit Company is consolidating and centralizing most
of its originations and servicing operations in the United
States to reduce costs and improve process efficiencies.  At the
same time, the company said it is reducing its operating costs
through efforts that include salaried personnel reductions of
about 2,000 positions in the United States and Canada.

This continues the company's global business transformation that
has been ongoing for more than a decade.  "We have a history of
managing change effectively, and I'm confident the course we are
on will be equally successful," Mike Bannister, the company's
chairman and chief executive officer, said.

Ford Motor Credit will consolidate its remaining 59 U.S.
branches into six existing service centers, creating new
business centers that will manage originations, dealer credit
and wholesale operations in addition to the servicing functions
already handled today.  Sales employees who work directly with
dealers will remain in local markets to maintain and enhance
their strong dealer connections.  Completion of the branch
consolidation is expected by the end of 2007.  A similar
structure is being considered for Ford Motor Credit's operations
in Canada, which currently has seven branches and one service
center.

"As a company with strong business fundamentals, we believe this
new structure will further strengthen our operational
effectiveness," Mr. Bannister said.  "Our strong collections
processes will continue while we enhance our originations of
automotive financing contracts.  The North American
restructuring also will provide us with the flexibility and
scale necessary to adapt to any changes in business conditions."

"Many of the same Ford Motor Credit salespeople who call on our
dealers today will continue to do so going forward," A.J.
Wagner, president of Ford Motor Credit Company North America,
said.  "Our salespeople have a unique understanding of our
dealers' market and business issues and are in the best position
to provide them with practical solutions to support their
business."

In the last decade, Ford Motor Credit has restructured
operations in Australia, Germany, Japan, Mexico, North America
and the U.K. with a focus on reducing costs and improving
process efficiencies.  Since 2003, Ford Motor Credit has closed
nearly 110 branches in the U.S. and Canada.

Personnel reductions will be achieved through attrition, early
retirements, voluntary separations and, if necessary,
involuntary separations.  Currently, about 8,600 employees work
in Ford Motor Credit offices in the U.S. and Canada; the region
accounts for 75 percent of the company's global business.  As of
June 30, 2006, the company's global managed receivables were
US$151 billion.

                     About Ford Motor Credit

Ford Motor Credit Co. -- http://www.fordcredit.com/-- is one of
the world's largest auto financing companies, and funds autos
for and through some 12,500 Ford, Lincoln, Mercury, Jaguar, Land
Rover, Mazda, Aston Martin, and Volvo dealerships.  Ford Motor
Credit Co. finances new, used, and leased vehicles (including
about 40% of new Fords sold in the U.S.) and provide wholesale
financing, mortgages, and capital loans for dealers.  The
Company also offers individual and business fleet financing,
while its insurance operations offer extended service contracts,
automobile insurance, wholesale inventory insurance, and credit
life and disability insurance.

The Company has operations in the Asia-Pacific region, including
Japan.

The Troubled Company Reporter - Asia Pacific reported on
September 25, 2006, that Rating and Investment Information,
Inc., has placed Ford Motor Credit Company's BB rating on the
Rating Monitor with a view to downgrading.


JAPAN AIRLINES: Averts Weekend Strike by Reaching Pilot Deal
------------------------------------------------------------
A union of Japan Airlines pilots called off a weekend strike
after reaching an agreement with the national carrier, The Japan
Times reports.  The parties will continue talks after the
management showed willingness to compromise.

According to The Associated Press, Japan Airlines had been in
talks with one of its labor unions to avoid a strike on
September 30, and October 1, 2006, over new work conditions that
will come out with the company's planned merger of its local and
international services.

As reported by the Troubled Company Reporter - Asia Pacific on
September 29, 2006, the union representing 650 domestic pilots
threatened to walk out for two days over the changes.

The merger of Japan Airlines Domestic with Japan Airlines
International on October 1 will lead to salary cuts for crew and
force top pilots to quit their union, the TCR-AP said.

If the strike had gone ahead, it would have forced JAL to cancel
about 500 flights, or some 40% of its domestic flights, The
Japan Times reveals.

                       About Japan Airlines

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

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

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

                          *     *     *

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


JAPAN AIRLINES: Moody's Affirms Units' Ba3 Ratings
--------------------------------------------------
Moody's Investors Service has affirmed its Ba3 long-term debt
ratings and issuer ratings for both Japan Airlines International
Co., Ltd and Japan Airlines Domestic Co., Ltd.  The rating
affirmation is in response to the planned restructuring of the
Japan Airlines Corporation group on October 1, 2006 with the
completion of the merger of JAL's two operating subsidiaries,
JAL International and Japan Airlines Domestic.  JAL
International will be the surviving company. The rating outlook
is stable.

Since the establishment of JAL, the joint holding company of JAL
International and JAL Domestic, in October 2002, the two
operating subsidiaries have been proceeding toward
consolidation.  JAL International and JAL Domestic matured bonds
and long-term debts have been replaced by JAL's newly issued
bonds and long-term debts.  Eventually, all the bonds and long-
term debts are to be held by JAL.

All newly issued JAL bonds and long-term debts are jointly and
severally guaranteed by both JAL International and JAL Domestic.
After the planned merger, the new JAL International will
continue to provide guarantees.

The group's cash surplus and short-term borrowings are managed
collectively by its financing entity. Sales activities and
customer management systems have been consolidated, and flights
of both operating companies use the same name and numbering
system.

In addition, the Japanese government treats the group companies
as one unit when it allocates flight licenses and slots. Loans
from government-related financial institutions are now extended
to JAL rather than the separate operating entities.  Moody's
therefore has viewed the credit qualities of JAL International
and JAL Domestic as the same.

The planned merger will be the final step in the JAL group's
corporate restructuring, and Moody's believes that it will not
change the group's financial or operating policies.

Japan Airlines International Co., Ltd., headquartered in Tokyo,
is the largest airline company in Japan.  Japan Airlines
Domestic Co., Ltd., headquartered in Tokyo, is the third-largest
airline company in Japan.  The two companies are fully owned
subsidiaries of Japan Airlines Corporation.


KOBE STEEL: S&P Raises Corporate Credit Rating To BBB- From BB
--------------------------------------------------------------
Standard & Poor's Ratings Services today raised its long-term
corporate credit ratings on four major Japanese steel groups
based on reducing industry risk brought about by consolidation
among steelmakers in Japan.  Consolidation in the steel
industry, which suffers from higher risk generally because of
fluctuating product prices, has eased competition and enabled
the steelmakers to regain their price negotiation ability.  The
Japanese steelmakers are also continuing to benefit from their
focus on high-value-added products, which supports their leading
positions in the domestic and export markets.

Nippon Steel Corp., JFE Holdings Inc., and JFE Steel Corp. were
upgraded by one notch to 'BBB' from 'BBB-'.  The outlooks on the
ratings on these three companies are positive.  The ratings on
their senior unsecured debt were affirmed at 'BBB'.  Kobe Steel
Ltd. and Sumitomo Metal Industries Ltd. were upgraded by two
notches to 'BBB-' from 'BB'.  The outlooks on the ratings on
these two companies are stable.  The rating on the senior
unsecured debt issued by Kobe Steel was raised by one notch to
'BBB-', while the rating on Sumitomo Metal's senior unsecured
debt was raised two notches to 'BBB'.

The upgrades of Nippon Steel, JFE Holdings, and JFE Steel Corp.
reflect their enhanced business franchises, mainly in high-grade
steel products, and improving financial profiles achieved
through debt reduction.  The ratings may be raised if the
companies can improve their business franchises by
differentiating themselves from their major overseas peers that
are aggressively expanding, and improve and stabilize
profitability and cash flow generation.  Whether the companies
can improve their debt-to-capital structures by accumulating
profits and continuing to cut debt is another key issue.  In
considering a further upgrade, Standard & Poor's compare the
companies' business and financial profiles with their major
overseas peers rated between 'BBB-' and 'A+'.  The analysis will
also include the possible impact on the credit quality of the
companies of global consolidation in the industry.

The upgrades of Kobe Steel and Sumitomo Metal reflect
exceptional improvement in their financial profiles achieved
through focusing on high-value-added products, plus benefits
from restructuring and significant debt reduction.  The stable
outlooks reflect Standard & Poor's expectations that the
companies will maintain their financial profiles at a level
adequate to the new ratings, supported by increased stability in
earnings and cash flow.

The senior unsecured debt ratings on Nippon Steel, JFE Holdings,
JFE Steel, and Kobe Steel were equalized with their corporate
credit ratings because of lowered probability of default.
Higher issuer ratings indicate less certainty over the form a
default would take, so the rationalization for rating senior
unsecured debt higher than the issuer rating due to the
probability of debt forgiveness by creditor banks is reduced.

The rating on the senior unsecured debt issued by Sumitomo Metal
was raised by two notches to 'BBB', one notch higher than the
issuer rating on the company.  This reflects the close ties
between the company and its major creditor financial
institutions within the Sumitomo group, based on its record
of capital injections.

                      About Kobe Steel

Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel,
Limited -- http://www.kobelco.co.jp/english/corp/index.html--  
is one of Japan's leading steel makers, as well as the top
supplier of aluminum and copper products.  Other businesses
include welding consumables, urban infrastructure and plant
engineering services, and industrial machinery.

According to a report by the Troubled Company Reporter - Asia
Pacific on June 29, 2006, Kobe Steel shareholders filed a class
action suit against the Company over its alleged bid rigging on
steel bridge construction public works projects.  Shareholders
claimed that the Company had paid fines of JPY201 million by May
2006 to rig bids for public bridge construction projects between
April 2002 and October 2004, and are seeking the same amount in
compensation.

Fitch Ratings Agency had upgraded Kobe Steel's long-term foreign
and local currency Issuer Default Ratings to 'BB+' from 'BB' on
May 31, 2006, while affirming its short-term IDR at 'B'.  The
Company's total adjusted debt/operating EBITDAR had improved to
2.6x at FYE06 from 9.3x at FYE02, whereas it has repaid more
than JPY500 billion of debt since 2000.  Its FYE06 net income
had risen by 35% year-on-year to JPY84.6 billion, mainly due to
higher average steel prices.


NORINCHUKIN BANK: Releases Term Sheet for Bonds Issue
-----------------------------------------------------
Norinchukin Bank plans to sell Lower Tier II bonds in euros,
pounds and yen, Bloomberg News reports.

Deutsche Bank, Goldman Sachs International and Mizuho
International will manage the sale after meetings with
investors, the report says.

In a press release, Norinchukin Bank confirmed the issue terms
of the Euro-denominated notes and the Sterling-denominated notes
on September 20, 2006, and the Yen-denominated notes on
September 22, 2006.  The terms are:

Issuer:           Norinchukin Finance (Cayman) Limited
                  (an overseas special purpose company and 100%
                  subsidiary of the bank located in the Cayman
                  Islands, a British dependent territory)

Type of security: Euro-denominated dated subordinated notes
                  Sterling-denominated dated subordinated notes
                  Yen-denominated dated subordinated notes
                  (all notes above are guaranteed by the bank on
                  a subordinated basis)

Issue amount    : Euro-denominated dated subordinated notes:
                  EUR1 billion

                  Sterling-denominated dated subordinated notes:
                  GBP650 million

                  Yen-denominated dated subordinated notes:
                  JPY50 billion

Maturity of
the notes       : Euro-denominated dated subordinated notes:
                  10 years (callable after 5th anniversary)

                  Sterling-denominated dated subordinated notes:
                  10 years (callable after 5th anniversary)

                  Yen-denominated dated subordinated notes:
                  15 years (callable after 10th anniversary)

Status          : The notes and the obligation of the bank are
                  subordinated to the senior indebtedness of the
                  bank issue format.  The notes will be placed
                  in the Euro market.

                          *     *     *

The Norinchukin Bank -- http://www.nochubank.or.jp/-- is the
central bank for Japan's agricultural, forestry and fishery
cooperative systems.  The bank is Japan's biggest agricultural
cooperative.  Based on constant funds procurement from member
cooperatives, the bank carries out efficient and flexible asset
management by investing in various financial products.  This is
carried out on a global scale.  The profits from these
activities are then continuously passed on to its members.

The bank has branches in the world's major financial centers,
including New York, London, the Cayman Islands and Singapore.
Coupled with its Head Office in Tokyo, this network enables 24-
hour coverage of the global financial markets.

Fitch Ratings fixed a C/D individual rating for Norinchukin Bank
on September 20, 2006.


SAMSONITE CORP: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. rental company sector this week, the
rating agency confirmed its B1 Corporate Family Rating for
Samsonite Corporation.  Additionally, Moody's revised and held
its probability-of-default ratings and assigned loss-given-
default ratings on these notes:

                           Projected

                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$121.5MM (EUR100MM)
   Flat Rate Sr. Unsec.
   Notes due June 2010    B1       Ba3     LGD3       30%

   US$205MM 8.875%
   Sr. Sub. Notes
   due June 1, 2011       B3       B3      LGD5       80%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

                          *     *     *

Samsonite Corporation -- http://www.samsonite.com--  
manufactures, markets and distributes luggage and travel-related
products.  The company's owned and licensed brands, including
Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren,
Lacoste and Timberland, are sold globally through external
retailers and 284 company-owned stores.  Executive offices are
located in London.  The company has global locations in Aruba,
Australia, Costa Rica, Indonesia, India, the United States and
Japan, among others.


SOFTBANK CORP: Launching New Phones & Services to Counter Rivals
----------------------------------------------------------------
Softbank Corporation will sell a total of 15 new mobile phone
units by the end of the year, in a bid to increase its market
share, The Japan Times reports.

According to Reuters, Softbank introduced last week 13 new phone
models to compete against its bigger rivals when a rule change
in October lets mobile phone users keep their phone numbers when
they switch carriers.  The new models include three made by
Sharp Corp.  and two by South Korea's Samsung Electronics.
Softbank will also sell a phone made by Matsushita Eletric
Industrial Co.

On top of the new phones, the Softbank Group will offer new
services including one that allows new handset owners to access
mobile phone Web portal Yahoo Ketai to allow users to surf the
Net almost as easily as with a personal computer.

In addition, Softbank would roll out an upgraded version of the
HSDPA high-speed network by mid-October.  The network allows
downloads of data such as music and video about 10 times faster
than on its existing network, Reuters relates.

                      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.


SUMITOMO METALS: S&P Upgrades Credit Rating To 'BBB-' From 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services today raised its long-term
corporate credit ratings on Sumitomo Metal Industries Ltd. by
two notches to 'BBB-' from 'BB'.  The outlook on the ratings is
stable.  The rating on Sumitomo Metal's senior unsecured debt
was raised two notches to 'BBB'.

The upgrade of Sumitomo Metal reflect exceptional improvement in
its financial profile achieved through focusing on high-value-
added products, plus benefits from restructuring and significant
debt reduction.  The stable outlook reflects Standard & Poor's
expectation that the company will maintain its financial profile
at a level adequate to the new rating, supported by increased
stability in earnings and cash flow.

The rating on the senior unsecured debt issued by Sumitomo Metal
was raised by two notches to 'BBB', one notch higher than the
issuer rating on the company.  This reflects the close ties
between the company and its major creditor financial
institutions within the Sumitomo group, based on its record
of capital injections.

Sumitomo Metal -- http://www.sumitomometals.co.jp/-- is one of
Japan's leading seamless pipe producers; it also makes steel
sheets, steel construction materials and industrial components.
It also manufactures wheels, axles, and other components in the
manufacturing of trains.  SMI also offers engineering services
for construction, energy facilities, and environment
regenerating.


TOSHIBA MACHINE: Moody's Ups Rating to Baa2 from Ba1
----------------------------------------------------
Moody's Investors Service on September 29, 2006, upgraded
Toshiba Machine Co., Ltd.'s issuer rating to Baa2 from Ba1.  The
rating outlook is stable.

The upgrade reflects Moody's view that the company is increasing
its ability to manage earnings stability and will be able to
maintain its conservative capital structure in coming years.
This concludes the review initiated on June 9, 2006.

Toshiba Machine has shifted resources to product segments with
higher potential for market growth and profitability and has
substantially reduced its fixed costs.  Through these efforts,
it has improved and stabilized profitability and cash flow,
which it has used to bolster its capital structure.  The company
has recorded about 10% operating profit margins for the last two
fiscal years, and its total debt to total capitalization ratio
improved significantly to 37% at end-March 2006 from 55% two
years earlier.

Toshiba Machine has a well-diversified business portfolio: while
over half of its sales come from molding machines, about 20% are
from machine tools and some 15% from semiconductor manufacturing
equipment.  Moody's expects the company to achieve a higher
profit stability than other major machine tools manufacturers
that concentrate on machine tools-related businesses -- which
are very cyclical in nature, as they are subject to economic
activities as well as product replacement investment cycles.

Molding machine segment sales have been increasing in recent
years, backed by brisk demand from the domestic auto-related
sector.  The segment's operating profit margin grew to 10.4% for
the year ended March 2006 from 6.8% two years earlier.  The
segment includes such products as injection molding machines,
die-casting machines and plastic extrusion machines, and the
company is a major player in these markets.  Given the strong
backlog and expected solid demand, mainly from the auto sector,
Moody's expects segment performance to continue to be sound.

The profit contribution of the machine tools segment has also
expanded, following market demand.  Segment operating profit
margin leapt to 13.1% for the year ended March 2006 from 3.2%
two years earlier.  Moody's believes that, based on its focus on
high-value-added products and the series of intensive cost
reductions it has taken in the past several years, the company
is likely to maintain favorable profitability for the next
couple of years.

While the performance of the machine tools segment will remain
vulnerable to market demand and could be constrained in a down-
cycle, Moody's anticipates that such deterioration would not be
as significant as in the past, because Toshiba Machine has
substantially decreased its cost base through a series of
restructuring measures.  In addition, the company's molding
machinery business, which has constantly maintained stable
operating profit margins, should mitigate cyclicality in other
segments.

As some of the company's operations have inevitable cyclicality,
the maintenance of sound capital structure is important for
periods of downturn.  At end-fiscal 2006, Toshiba Machine had
achieved a net cash position, and Moody's expects that this will
continue. Although management's focus has moderately shifted
under its current action plan from improving capital structure
to steadily growing the business, Moody's expects the company to
utilize its internally generated cash flow to further reduce
debt, after making capital investments, and improve its capital
structure.

Toshiba Machine Co., Ltd., headquartered in Shizuoka, Japan, is
one of the world's leading manufacturers of molding equipment
and machine tools.


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

DAEWOO CORPORATION: Court to Hear Chapter 15 Petition on Oct. 20
----------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York will hold a hearing on October 20, 2006, 9:45 a.m., to
consider Daewoo Corporation's petition pursuant to Chapter 15 of
the U.S. Bankruptcy Code.

As reported in the Troubled Company Reporter - Asia Pacific on
Sept. 27, 2006, Daewoo, through its Bankruptcy Trustee Hyung-Ha
Lee, filed a Chapter 15 Petition on September 25.

Daewoo seeks, among others, the recognition of its proceeding
under the Republic of Korea's Act on Rehabilitation of Debtors
and Bankruptcy pending before the 12th Bankruptcy Division of
the Seoul Central District Court as a "foreign main proceeding."

Chapter 15, which became effective on October 17, 2005, broadens
the mechanism through which representatives of non-U.S.
proceedings, like Mr. Lee, might obtain relief, including
injunctive relief, in the United States.  Chapter 15 also
expands the powers of U.S. Bankruptcy Courts and enhances the
rights of both U.S. and non-U.S. creditors.

Parties-in-interest are given until 4:00 p.m. New York time,
October 16, 2006, to submit a response or objection to Daewoo's
Chapter 15 Petition or requested relief.

Responses and objections must:

   -- be in writing;

   -- set forth their bases;

   -- be filed with the Court Clerk at:

         Room 534
         One Bowling Green
         New York, NY 10004-1408 U.S.A.;

   -- served on Mr. Lee's counsel at:

         Alston & Bird LLP
         90 Park Avenue
         New York, NY 10016 U.S.A.
         Attn: Paul H. Silverman Esq.; and

   -- submitted before the Objection Deadline.

The U.S. Court requires all parties-in-interest opposing the
Petition to appear at the October 20 Hearing.

                         About Daewoo Corp.

Headquartered in Chung-gu, Seoul, Korea, Daewoo Corporation is a
global trading and investment company in the areas of
international trade, project organizing and overseas resource
developments.  It provides trading in chemicals, textiles,
metals and steel.

On May 25, 2006, pursuant to a resolution by its Board of
Directors, Daewoo applied for bankruptcy under the Korean
Act of Rehabilitation of Debtors and Bankruptcy.

Through its court-appointed bankruptcy trustee Hyung-Ha Lee, the
Company sought protection pursuant to Chapter 15 of the United
States Bankruptcy Code on September 25, 2006.  In accordance
with the Chapter 15 Petition, Daewoo wants its bankruptcy
proceeding in Korea recognized as a foreign main proceeding.


LG TELECOM: New Interconnection Fees Could Plunge Profits
---------------------------------------------------------
LG Telecom may face a significant decline in profits with the
new fees set by the South Korean Government's Ministry of
Information and Communication, Kim Tae-gyu staff reported for
The Korea Times.

According to The Times, the Government set a new system of
interconnection fees lowering the network access fees for LG
Telecom to KRW47.0077 per minute, a reduction of 14.5% from the
original fees.

Interconnection fees refer to payment transactions among telecom
companies, which take place when a client of a specific operator
makes a call to other service customers, The Times explained.

The reduced rates, The Times estimates, could plunge LG
Telecom's profits by KRW100 billion for this year alone.

The new system, however, increased the fees for large telecom
carriers like SK Telecom, the report notes.

Kang Tai-young, director general at the Ministry told The Times
that the new fees is caused by the three wireless operators'
different investments in next-generation networks.

SK Telecom put in huge investments on building the next-
generation mobile network of wideband code division multiple
access while LG Telecom has not channeled resources into that
field over the past few years, Mr. Kang said.

                        About LG Telecom

Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd.
-- http://www.lgtelecom.com/-- is a telecommunications and
mobile phone operator controlled by the LG Group, one of the
country's largest chaebol.  It is Korea's smallest wireless
operator. LG Telecom became one of the first companies to launch
a commercial 3G service using PCS technology.  In 1997, this was
followed up by launching the second PCS network, offering
greatly increased data transmission speeds.  LG Telecom also
offers a variety of internet services. BankOn is one of the most
popular mobile banking services in South Korea and Musicon is a
popular instant messenger.

Moody's Investor Service gave LG Telecom a 'Ba2' Issuer Rating,
a 'Ba2' Long-Term Corporate Family Rating and a 'Ba2' Senior
Unsecured Rating.

Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long-
Term Foreign Issuer Credit and Long-Term Local Issuer Credit
Ratings.

Fitch Ratings gave the Company 'BB' Long-Term Foreign Issuer
Default and Foreign Currency Long-Term Default Ratings.


SC FIRST BANK: Parent Allegedly In Breach of FSS Rules
-------------------------------------------------------
Standard Chartered First Bank Korea Ltd.'s parent, Standard
Chartered Bank, is suspected of influencing the Korean
subsidiary's loan policies breaching Financial Supervisory
Service regulations, according to a report by The Korea Times.

The Times, citing an FSS report, says that SCB allegedly had a
hand when SC First Bank approved US$14.1 billion in loans to
Korean firms between September 2005 to March 2006.

The involvement of a third party in approving loans by financial
firms violates FSS rules.

According to the regulator, SCB's involvement could mean that
Korean firms' information are leaked to foreigners.

SCB, which acquired SC First Bank in April 2005, is an
international bank based in the United Kingdom.

SC Firt Bank believes the allegations have no basis and asserts
that it is fully committed to transparency and strict adherence
to laws.

                      About SC First Bank

Standard Chartered First Bank Korea Ltd. --
http://www.scfirstbank.com/-- is a commercial bank that offers
a  wide range of financial services.  The company's offerings
include loans, deposits, credit card, trust accounts, financial
derivative transactions, corporate banking, consumer banking,
and investment banking services.  SC First Bank is the sixth
largest commercial bank in Korea with total assets of
KRW60.2 trillion as of March 31, 2006.  Through its nationwide
network of 404 branch offices, SC First Bank serves some 3.5
million clients in Korea.

Moody's Investors Service gave SC First Bank a Bank Financial
Strength Rating of 'D+'.

Fitch Ratings gave the bank a 'C' Individual Rating.


TRIGEM COMPUTER: Agrees to Modify Chapter 15 Stay for Gateway
-------------------------------------------------------------
In a stipulation approved by a United States Bankruptcy Court,
Il-Hwan Park, the foreign representative of TriGem Computer,
Inc., and Gateway, Inc., and its affiliates, agree to a limited
modification of the automatic stay imposed in TriGem's Chapter
15 case.

As previously reported in the Troubled Company Reporter - Asia
Pacific, Trigem, through Mr. Park, filed a Chapter 15 petition
with the U.S. Bankruptcy Court for the Central District of
California in November 2005.  Trigem sought the U.S. Court's
recognition of the company's case pending under the Corporate
Reorganization Act in Korea as a foreign main proceeding.

On December 7, 2005, the U.S. Bankruptcy Court recognized as a
foreign main proceeding the Korea Proceeding and imposed
automatic stay on U.S. actions against Trigem.

TriGem assembles and delivers computers to be sold under
Gateway's eMachines label pursuant to the ODM Agreement.

The Gateway Entities were sued by TriGem America Corporation, a
wholly owned U.S. subsidiary of TriGem, for payment of
US$14,954,560 plus interest for unpaid invoices on account of
computers sold by TriGem.

TriGem has not taken any action to:

    (i) collect any amounts allegedly owed under the ODM
        Agreement for delivered computers;

   (ii) redesignate any other party to collect payments; or

  (iii) assert rights in the Adversary Proceeding.

Notwithstanding repeated requests by TGA and the Gateway
Entities, TriGem has refused to disclaim any interest it may
have in the funds owed under the ODM Agreement.

TGA filed a separate Chapter 11 case in June 2005 before the
U.S. Bankruptcy Court for the Central District of California,
Santa Ana Division.  TGA's lawsuit is pending before that court.

Pursuant to a stipulation with Gateway, the parties agree that
the Gateway Entities may proceed with their interpleader and
request for a judicial determination binding on TriGem and the
Foreign Representative, as to whom the Gateway Entities owe
obligations pursuant to the Original Design and Manufacture
Agreement.

The Gateway Entities, however, are stayed from asserting
affirmative recoveries or other claims against TriGem or the
Foreign Representative due to TriGem's Chapter 15 proceeding.

TriGem and the Foreign Representative clarify that, by entering
into the Stipulation, they neither consent to nor submit to the
personal jurisdiction of the Santa Ana Bankruptcy Court or any
other U.S. courts.

                         About TriGem

Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer
Inc. -- http://www.trigem.com/--  manufactures desktop PCs,
notebook PCs, LCD monitors, printers, scanners, other computer
peripherals, and PIDs and supplies over four million PCs a year
to clients all over the world.

The Troubled Company Reporter - Asia Pacific reported on
June 20, 2005, that the Suwon District Court has authorized
TriGem's receivership and gave it a chance to revive its
operations.  The Suwon Court then appointed the Company's former
president and chief executive officer Park Il-hwan as
supervisor.

Mr. Park, also as TriGem's Foreign Representative, filed a
chapter 15 petition on Nov. 3, 2005, with the United States
Bankruptcy Court for the Central District of California (Bankr.
C.D. Calif. Case No. 05-50052), seeking recognition of TriGem's
case pending under the Corporate Reorganization Act in Korea as
a foreign main proceeding.  Charles D. Axelrod, Esq., at Stutman
Treister & Glatt, P.C., represents the Foreign Representative in
the U.S.

TriGem America Corporation, an affiliate of the Debtor, filed
for chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif.
Case No. 05-13972).  TriGem Texas, Inc., another affiliate of
the Debtor, also filed for  chapter 11 protection on June 8,
2005 (Bankr. C.D. Calif. Case No. 05-14047). (TriGem Bankruptcy
News, Issue No. 3 Bankruptcy Creditors' Service, Inc., 215/945-
7000).


TRIGEM COMPUTER: Disposes Stake In ePlatform
--------------------------------------------
TriGem Computer, Inc., sold all of its interests in Korea
ePlatform, according to Reuters Key Development.  TriGem held
104,166 common shares of Korea ePlatform, totaling
KRW4,999,968,000.

Korea ePlatform provides e-marketplace services.

                         About TriGem

Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer
Inc. -- http://www.trigem.com/--  manufactures desktop PCs,
notebook PCs, LCD monitors, printers, scanners, other computer
peripherals, and PIDs and supplies over four million PCs a year
to clients all over the world.

The Troubled Company Reporter - Asia Pacific reported on
June 20, 2005, that the Suwon District Court has authorized
TriGem's receivership and gave it a chance to revive its
operations.  The Suwon Court then appointed the Company's former
president and chief executive officer Park Il-hwan as
supervisor.

Mr. Park, also as TriGem's Foreign Representative, filed a
chapter 15 petition on Nov. 3, 2005, with the United States
Bankruptcy Court for the Central District of California (Bankr.
C.D. Calif. Case No. 05-50052), seeking recognition of TriGem's
case pending under the Corporate Reorganization Act in Korea as
a foreign main proceeding.  Charles D. Axelrod, Esq., at Stutman
Treister & Glatt, P.C., represents the Foreign Representative in
the U.S.

TriGem America Corporation, an affiliate of the Debtor, filed
for chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif.
Case No. 05-13972).  TriGem Texas, Inc., another affiliate of
the Debtor, also filed for  chapter 11 protection on June 8,
2005 (Bankr. C.D. Calif. Case No. 05-14047). (TriGem Bankruptcy
News, Issue No. 3 Bankruptcy Creditors' Service, Inc., 215/945-
7000).


* FSC to Ease Rules on Domestic Sale of Foreign Funds
-----------------------------------------------------
The Financial Supervisory Commission said that it will soon ease
restrictions on the domestic sale of foreign funds, the Korean
Government stated in its Web site.

The FSC changed certain rules, which will take effect at an
unspecified date this year, to address the increased investor
demand for foreign funds among Koreans.

With the softened rules, foreign asset managers with less than
KRW5 trillion (US$5.2 billion) under their management will be
allowed to sell fund products in Korea.

Currently, the government Web site noted, only asset management
companies with more than KRW5 trillion in management are allowed
to sell fund products in the country.

Pursuant to FSC's changes, previously-barred foreign real estate
funds, commodity and other funds will be allowed to be sold in
Korea.  The FSC will, however, modify regulations on their sale
to protect investors.

Issuers will also be required to report more filings with the
FSC, including filing their operating reports, to improve
clarity on the funds and protect investors, Korean.net added.

The Web site further noted, citing FSC records, that as of the
end of July 2006, KRW9.2 trillion ($9.7 billion) of foreign
funds were sold in Korea, and increase in previous years --
KRW6.2 trillion at the end of 2005 and KRW3.4 trillion at the
end of 2004.


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

AKTIF LIFESTYLE: Wants More Time to Regularize Financial State
--------------------------------------------------------------
Aktif Lifestyle Corporation Bhd has, on September 28, 2006,
filed an application with Bursa Malaysia Securities Berhad
seeking an extension of time to identify a new suitable white
knight and submit the necessary applications to the relevant
regulatory authorities.  Aktif specifically wants a three-month
extension to December 30, 2006.

Prior to this, Bursa Securities has extended until September 30,
2006, Aktif Lifestyle's deadline to submit the necessary
applications to the relevant authorities to regularize its
financial condition.

                   About Aktif Lifestyle

Headquartered in Kuala Lumpur, Malaysia, Aktif Lifestyle
Corporation Berhad's principal activities is the operation of
specialty retail stores.  Other activities include investment
holding.

The Company has defaulted on several loan facilities and
incurred continuous losses.  It embarked on various corporate
exercises aimed at regularizing its financial condition.  In
2005, the Company presented a proposed restructuring scheme,
hich did not win the Securities Commission's favor due to
uncertainty in assets valuation and concerns on corporate
governance issues.  An appeal to the SC to review its decision
on the Proposed Restructuring Scheme was already submitted.

As reported by the Troubled Company Reporter - Asia Pacific,
Bursa Malaysia Securities Berhad, on June 8, 2006, commenced
delisting procedures against Aktif, which is a Practice Note 10
company.  In a statement, Bursa Securities said that Aktif has
failed to ensure that its level of operations is adequate in
accordance to the listing requirements.


MENTIGA CORPORATION: Completes Corporate Exercises
--------------------------------------------------
On September 28, 2006, Mentiga Corporation Berhad disclosed that
it has completed its corporate exercises after the listing and
quotation of:

-- 12,500,000 new ordinary shares of MYR1.00 each issued
   pursuant to the Debt Settlement; and

-- 10,000,000 new ordinary shares of MYR1.00 each issued
   pursuant to the conversion of 10,000,000 RCPS.

In a report by the Troubled Company Reporter- Asia Pacific on
Sept. 28, 2006, Mentiga Corporation's restructuring or corporate
exercise comprise these proposals:

  (i) revaluation of the Property Assets of Mentiga and its
      subsidiaries;

(ii)  debt settlement via the issuance of 12,500,000 new
      ordinary shares at an issue price of MYR1.00 per share to
      Amanah Saham Pahang Berhad, a major shareholder, as
      settlement to the amount owed by the Company to ASPA which
      amounted to MYR12,500,000;

(iii) restricted issue of 20,000,000 new redeemable convertible
      preference shares of MYR1.00 each at an issue price of
      MYR1.00 per RCPS to ASPA.

(iv) Disposal of 18,900 ordinary shares of by Selat Bersatu Sdn
      Bhd in PT Rebinmas Jaya "PTRJ" representing an entire 90%
      equity interest in PTRJ to Delloyd Plantation Sdn Bhd and
      Taipan Hectares Sdn Bhd, for a cash consideration of
      MYR61,200,000.

                    About Mentiga Corp.

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

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

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


PAN MALAYSIA: Buys Back 55,000 Ordinary Shares for MYR16,232
------------------------------------------------------------
On September 28, 2006, Pan Malaysia Corporation Berhad has
bought back 55,000 shares of MYR0.50 each for MYR16,232.37.

The minimum price paid for each share purchased was MYR0.290 and
the maximum was MYR0.300.

After the purchase, the cumulative outstanding treasury shares
reached 59,921,400.

               About Pan Malaysia Corporation

Headquartered in Kuala Lumpur, Malaysia, Pan Malaysia
Corporation Berhad provides management services and the
manufacturing, marketing and distribution of confectionery and
cocoa-based and other food products.  The Company also operates
departmental and specialty stores, construction and property
investment and investment holding.  The Group operates in
Malaysia, Australia and the rest of Asia-Pacific.

Pan Malaysia has suffered consecutive losses in the past due to
skyrocketing operating expenses.  The group has been selling
assets to curb losses.  In the fiscal year ending December 31,
2005, the Company booked a net loss of MYR6.8 million.


POLYMATE HOLDINGS: ASIC Approves Deregistration of Subsidiaries
---------------------------------------------------------------
Polymate Holdings Berhad has disclosed on September 28, 2006,
that the Australian Securities and Investments Commission has
approved deregistration of its two subsidiaries -- ABI Victoria
Pty Ltd and ABI South Australia Limited.

ABI Victoria Pty Ltd and ABI South Australia Limited are 100%
owned subsidiaries of ABI Australia Pty Limited, which is owned
77% by ABI Malaysia Sdn Bhd and in turn is 100% owned subsidiary
of Polymate Holdings.

                 About Polymate Holdings

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

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


PSC INDUSTRIES: Tetuan Thanggaya Serves Writ of Summons
-------------------------------------------------------
PSC Industries Berhad and its subsidiary, Penang Shipbuilding &
Construction Sdn Bhd were served with a Writ of Summons and
Statement of Claim from Tetuan Thanggaya Khoo & Co on Sept. 28,
2006.

Tetuan Thanggaya Khoo & Co is claiming against PSC and Penang
Shipbuilding a judgment sum of MYR4,000,000 as of August 18,
2006, plus an annual interest of 8% until full payment.

The plaintiff is also claiming from the two defendants a payment
for legal costs and other relief as deemed fit by the Kuala
Lumpur High Court.

Moreover, the defendants have until October 6, 2006, to enter an
appearance.

                       About PSC Industries

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

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


WEMBLEY INDUSTRIES: Appeal SC's Rejection of Extension Request
--------------------------------------------------------------
On August 28, 2006, Wembley Industries Holdings Berhad has
submitted an appeal to the Securities Commission pertaining to
the SC's rejection of the company's application to extend until
January 31, 2007, the execution of its development agreement
with Dewan Bandaraya, Kuala Lumpur.

As reported by the Troubled Company Reporter - Asia Pacific on
August 4, 2006, Wembley Industries submitted to the SC an
application to extend for another year the signing of a
supplemental joint venture agreement and completion of the
company's restructuring scheme on July 3, 2006.

According to the TCR-AP, the SC granted Wembley Industries'
wholly owned subsidiary, Plaza Rakyat Sdn Bhd, until July 31,
2006, to sign a supplemental agreement with Dewan Bandaraya in
relation to a joint venture agreement, which is part of the
Company's restructuring scheme.  However, the Company has
instructed its adviser, Alliance Merchant Bank Berhad, to make a
formal application for the extension from July 31, 2006, to
July 7, 2007, or the period as advised by Alliance Merchant.

The restructuring scheme involves a proposed:

   * capital reduction and consolidation;

   * debt-restructuring; and

   * rights issue.

A subsequent TCR-AP report noted that Plaza Rakyat and Dewan
Bandaraya are still negotiating on the terms and conditions of
the supplemental agreement between them.  Government ministries
and departments are also involved in the discussions

                    About Wembley Industries

Headquartered in Sarawak Malaysia, Wembley Industries Holdings
Berhad is a developer of commercial properties and investment
holding.  Its other activities are the development of the inter-
state bus and taxi terminal, the retail podium and the budget
hotel.

The Company has been placed under the Practice Note 4 category
due to its tight cash flow position.  On January 7, 2003,
Malaysia's Foreign Investment Committee approved the Company's
regularization plan.  Subsequently, on April 7, 2003, the FIC
revised its approval to include the possible participation of
Daewoo Corporation, the former turnkey contractor of Plaza
Rakyat Project in the Company's Proposed Debt Restructuring.
The Company's ability to continue as a going concern hinges on
the successful implementation of the Scheme.

As of June 30, 2006, the group has total assets of
MYR422,526,000 and total liabilities of MYR1,229,086,000,
resulting into a shareholders' deficit of MYR806,560,000.


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

ARANETA PROPERTIES: Resets ASM to October 27, 2006
--------------------------------------------------
Due to constraints on the timely notification of the
stockholders, Araneta Properties, Inc., informs the Philippine
Stock Exchange that that the company's Annual Stockholders'
Meeting has been reset to October 27, 2006.  Record date of
stockholders entitled to vote is still September 12, 2006.

The Troubled Company Reporter - Asia Pacific, previously
reported that the Meeting was scheduled for October 6, 2006.

                     About Araneta Properties

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

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

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

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


EQUITABLE PCI: SM Tender Offer Generates 51% of Shares
------------------------------------------------------
SM Investments Corporation advised the Philippine Stock Exchange
that its tender offer to buy Equitable PCI Bank at PHP92 per
share generated a participation from shareholders with total
shares of 374.9 million equivalent to 51.6% of Equitable PCI's
total shares outstanding.

The total consideration of the sale is PHP34.49 billion.  The
Tender Offer expired on September 29, 2006.

The sellers include:

   (a) the Government Social Insurance System with 13.55%; and

   (b) the Social Security System with 25.84%, and

   (c) other individual shareholders with 1.34%

EBC Investments Inc. also agreed to sell 10.8% of its holdings
in Treasury Shares under the same terms and conditions as the
Tender Offer.

As reported in the Troubled Company Reporter - Asia Pacific on
September 21, 2006, the Board of Equitable PCI confirmed,
approved, and ratified the action of the bank's nominees in the
Board of Directors of EBC Investments, Inc., in causing the
EBCII Board to adopt a resolution on August 31, 2006, accepting
the binding offer of Teresita T. Sy on behalf of the Sy Family
and their nominees to buy all of Equitable PCI's common shares
owned by EBCII.

The participation of SSS in the tender offer is subject to the
resolution of the case pending in the Supreme Court.

                      About Equitable PCI

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

                          *     *     *

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

Fitch Ratings gave the bank a 'BB' Long-term Issuer Default
rating, a 'B' Short-term rating, a 'D' Individual rating, and A
'3' Support rating.

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


MIRANT CORP: Sale Agreement to Include 2.5 Months Severance Pay
---------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific, on September 11,
2006, cited a report from The Manila Times stating that
employees of Mirant Philippines Inc. may seek Malacanang's
intervention in ensuring just separation packages before the
sale of Mirant Corporation's Philippine-based assets.

The report cites company sources as revealing that the company's
main office in Atlanta has not laid out any separation package
for its Philippine employees.

However, a subsequent TCR-AP report said Mirant Philippines'
chairman and president, Jose Leviste Jr., assured the employees
of full protection in the company's assets sale.

In an update, Roderick T. dela Cruz of Manila Standard Today,
reports that Mirant Philippines will include a separation pay of
2.5 months per year of service for its employees as part of the
sale agreement that the company will sign with the winning
bidder for its power plants in the country -- on top of other
benefits and incentives.

"It will be a part of the deal," the report cites Mr. Leviste,
as telling reporters.

Mr. Leviste reveals that the offer to the company's 1,200
employees will be formalized this week through the issuance of a
written notice about the severance package for those who will be
affected by the change in ownership over Mirant's Philippine
assets.

Manila Standard recounts that the company has been giving a
separation pay of 2.5 months per year of service based on a 14-
month year.

The law only requires the payment of 0.5 month per year of
service for retrenchment and one month per year for redundancy
based on the employee's monthly pay, Manila Standard notes.

                          About Mirant

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


SAN MIGUEL: Elects S. Bello as Director
---------------------------------------
San Miguel Corporation informs the Philippine Stock Exchange
that at the company's Regular Board Meeting on September 28,
2006, the Board elected Silvestre H. Bello III as the company's
director.

Mr. Bello replaced Jose Ma. Rufino, who passed away.

                     About San Miguel Corp.

Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,
operates food, beverage and packaging businesses.  The Company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products.  San Miguel markets its
products both in the domestic and overseas markets.  The Company
also manufactures glass, metal, plastic, paper and composites
packaging products.

A Troubled Company Reporter - Asia Pacific report on April 20,
2006, stated that Moody's Investors Service put a (P)Ba3 foreign
currency rating on the proposed preferred stock issuance of San
Miguel Corp. subsidiary San Miguel Capital Funding Limited.
Moody's also placed a Ba1 local currency corporate family and
indicative foreign currency senior unsecured rating on the
Company.

Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by San Miguel
Capital Funding.


* Analysts Anticipate Philippine Ratings Upgrade
------------------------------------------------
International fund managers surveyed by Dow Jones Newswires have
raised the Philippines and the United States to their most
bullish levels in years among several key changes to their
recommended portfolio weightings this month, Rita Raagas de
Ramos of Manila Bulletin reports.

Fund managers on average suggest a neutral stance in the
Philippines within an Asia-Pacific equities portfolio, their
highest recommendation since September 1999 when they were a
full overweight, the report adds.

Over the past seven years, they have recommended varying degrees
of being underweight in the Philippines mainly due to fiscal
deficit and political concerns, Manila Bulletin recounts.

"In the Philippines, the overall macro conditions are becoming
more favorable, with the budget deficit falling to a manageable
level.  As a result, interest rates have fallen against global
trends and will be the impetus for an upturn in both the
investment and credit cycle," the paper cites HSBC Halbis
Partners, as saying.

Manila Bulletin says the Philippines' budget surplus for the
fourth straight month in August at PHP14.3 billion (US$285
million), kept the January-August budget deficit at a manageable
level of PHP34.2 billion, or just 27% of the full-year ceiling.
An increase in the Philippines' value added tax rate to 12% from
10% in February helped boost the government's revenues in recent
months, Manila Bulletin adds.

According to Manila Bulletin, analysts believe the improved
fiscal position could lead to a Philippine ratings upgrade and
the stock market.  The Philippines is rated below investment
grade by all three major international ratings agencies, the
paper notes.

                         *     *     *

"Standard & Poor's Ratings Services assigned its 'BB-' senior
unsecured rating to the Republic of Philippines' proposed new
bond issue that will mature in 2024, as well as the new debt
under the series of 7.75% Global Bonds due in 2031.  The
government is offering these bonds in exchange for some of its
existing debt.  At the same time, Standard & Poor's also
affirmed its 'BB-' ratings on the bonds that are eligible for
exchange."


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

AFFYMETRIX INC: Estimates Restructuring to Cost US$15-19 Million
----------------------------------------------------------------
On September 25, 2006, Affymetrix Inc. has confirmed that its
restructuring exercise, from its plan to close its Bedford
Massachusetts facility, will cost from US$15 million to US$19
million, according to Yahoo Finance.

Affymetrix disclosed that it expects US$8 million-US$10 million
of the restructuring charges to be related to employee severance
and relocation benefits.  Another US$5 million-US$7 million will
cover contract termination costs related to vacating Bedford,
and the final US$2 million will be related to fixed asset write
downs and other costs.

Two weeks ago, Affymetrix confirmed that Bedford's consolidation
will eliminate or transfer about 80 positions, beginning in the
fourth quarter of 2006 though the first half of 2007.

                   About Affymetrix Inc.

Headquartered in Santa Clara, California, Affymetrix Inc. --
http://www.affymetrix.com/-- analyzes complex genetic
information that are used by pharmaceutical, biotechnology,
agrichemical, diagnostics and consumer products companies.  The
Company has manufacturing facilities in Sacramento, California,
and Bedford, Massachussetts, and maintains important sales and
marketing operations in Europe and Asia (including Singapore,
Japan and China, as well as Australia, New Zealand, Hong Kong,
India, Japan, Malaysia, and Taiwan) and has about 1,100
employees worldwide.

                          *     *     *

Affymetrix Inc.'s noteholders issued a notice of default on
Aug. 17, 2006, under the indenture governing the US$120 million
0.75% Senior Convertible Notes due 2033 as a result of the
company's failure to file its Form 10-Q for the quarter ended
June 30, 2006, with the U.S. Securities and Exchange Commission.


AVAGO TECHNOLOGIES: Moody's Affirms B2 to Sr. Unsecured Debt
------------------------------------------------------------
On September 25, 2006, Moody's Investors Service issued the
ratings of Avago Technologies Pte Ltd.

Moody's has affirmed the following ratings:

-- US$250 million Senior Secured Revolver due on 2012,
   from B1 to Ba2, LGD1, 4%

-- US$500 million 10.125% Senior Unsecured Notes due on 2013,
   from B3 to B2, LGD3, 47%

-- US$250 million Floating Rate Senior Unsecured Notes due on
   2013, from B3 to B2, LGD3, 47%; and

-- US$250 million 11.875% Senior Subordinated Notes due on 2015,
   from Caa2 to Caa1, LGD6, 91%

                        About Avago

Headquartered both in San Jose, CA, and in Singapore, Avago
Technologies Holdings Pte. Ltd. -- http://www.avagotech.com/--  
is a semiconductor company, with approximately 6,500 employees
worldwide.  Avago provides an extensive range of analog, mixed-
signal and optoelectronic components and subsystems to more than
40,000 customers.  The company's products serve four end
markets: industrial and automotive, wired networking, wireless
communications, and computer peripherals.  Avago Technologies is
the successor to the Semiconductor Products Group of Agilent.

Avago Technologies purchased the business of SPG as of Dec. 1,
2005, for US$2.6 billion in cash


EXABYTE CORPORATION: Enters Into Material Definitive Agreement
--------------------------------------------------------------
On September 22, 2006, Exabyte Corporation has entered into a
Sixth Amendment in the Credit and Security Agreement dated
March 9, 2005, with Wells Fargo Business Credit, Inc.

Under the Sixth Amendment, Exabyte's Borrowing Base, as defined
in the Credit Agreement, was increased by up to US$2 million,
which is equal to 100% of the principal amount of borrowings
that may be purchased by Tandberg Data ASA.  This was pursuant
to a Participation Agreement between Tandberg, WFBC and National
Association dated on September 22, 2006.

Pursuant to the terms and conditions of the Asset Purchase
Agreement entered between Exabyte and Tandberg on August 29,
2006, Tandberg is obligated to provide WFBC with an irrevocable
letter of credit for US$2 million to support a further extension
of credit by WFBC to Exabyte.  In accordance with a Letter
Agreement between Tandberg and Exabyte on September 22, 2006,
Tandberg has elected to satisfy the obligation to provide
Exabyte with additional borrowing capacity through the purchase
of a participation interest in the Credit Agreement.

                         About Exabyte

Exabyte Corporation -- http://www.exabyte.com/-- manufactures
tape storage products.  The Company's products back up and
restore critical business information.

In Asia Pacific, the company is headquartered in Singapore, with
offices in Australia, China and Hong Kong.

The Company's balance sheet at Dec 31, 2005, showed total assets
of US$34,715,000, total liabilities US$66,675,000 and Series AA
Convertible preferred stock of 38,931,000, resulting in a
US$70,891,000 stockholders' deficit.


GETRONICS NV: Sells Majority of Stake to APX Synstar
----------------------------------------------------
Getronics has disclosed on September 27, 2006, that it received
a binding offer from APX Synstar to acquire a majority stake in
Getronics' operations in France.

Under the proposed deal, APX Synstar would transfer its business
activities in Belgium to Getronics, strengthening the current
operations of Getronics in Belgium.  Getronics would retain a
33% stake in the French subsidiaries.

Getronics consulted Works Councils with the proposed
transaction, which will be signed once the Works Councils have
rendered their final opinion.  The transaction is expected to
close in fourth quarter of 2006.

"This deal is strategically excellent for Getronics.  It
strengthens our business, while also enabling our clients to
benefit from an expanded footprint in the French market," says
Klaas Wagenaar, CEO of Getronics,

Noel Saille, CEO of APX Synstar has added that the strategic
partnership will reinforce APX Synstar's leading position in the
IT Solutions and Services market in France.

The total estimated 2006 revenue of Getronics' French business
amounts to approximately EUR65 million.  Moreover, the net loss
for 2006 until closing in respect of Getronics' French business
is expected to be EUR8 million.  As a result of the transaction,
Getronics expects to write-down goodwill of approximately
EUR15 million.  The estimated 2006 cash flow used in operating
activities is EUR8 million and the total 2006 cash flow used in
investing and financing activities is estimated to be
EUR6 million.

                       About Getronics

Headquartered in Amsterdam, Netherlands, Getronics N.V. --
http://www.getronics.com/-- designs, integrates and manages
ICT infrastructures and business solutions for many of the
world's largest global and local companies and organizations,
helping them maximize the value of their information technology
investments.  Getronics has some 27,000 employees in over 30
countries and approximate revenues of EUR3 billion.  The company
has regional offices in Boston, Madrid and Singapore.  Its
shares are traded on Euronext Amsterdam.

                        *     *     *

As reported in Troubled Company Reporter - Asia Pacific
Getronics N.V.'s 'B' long-term corporate credit rating, along
with the 'CCC+' senior unsecured debt, 'B' bank loan, and '3'
recovery ratings on CreditWatch with negative implications,
where they had originally been placed on Jan. 19.The '3'
recovery rating indicates Standard & Poor's expectation of
meaningful (50%-80%) recovery of principal for secured lenders
in the event of a payment default.

As reported in TCR-AP, Moody's Investors Service downgraded
Getronics' corporate family rating to B2 from B1 and placed the
ratings on review for possible downgrade following the company's
announcement of half year results showing a widening of net
losses and fall in margins below the company's expectations.
Concurrently the rating on the EUR100 million senior unsecured
convertible Dutch bonds due 2008 has been downgraded to Caa1
from B3.


HIAP HENG CHNG: Creditors' Meeting Slated for October 17
--------------------------------------------------------
The creditors of Hiap Heng Chng (Singapore) Pte Ltd will hold a
meeting on October 17, 2006, at 3:00 p.m.

At the meeting, the creditors will be asked to:

   -- receive an update on the progress of the liquidation;
      and

   -- discuss other matters.

The liquidator can be reached at:

         Seshadri Rajagopalan
         c/o Ernst & Young
         10 Collyer Quay #23-05
         Ocean Building
         Singapore 049315


HEXION SPECIALTY: Division Declares Force Majeure
-------------------------------------------------
Hexion Specialty Chemicals disclosed that its Phenolics and
Forest Products Division declared force majeure for formaldehyde
and formaldehyde-derived products in North America.

The declaration followed the company being placed on allocation
for methanol, as two major methanol producers declared force
majeure.

The company also disclosed that with the raw material
limitations, it is allocating its available supply of
formaldehyde and formaldehyde derived products in North America
among its customers during the force majeure period, dependent
on logistics.  Methanol is a key raw material in the production
of formaldehyde and formaldehyde-derived products used in a wide
range of engineered wood resins, specialty wood adhesives and
other applications.

The company further disclosed that it is working with all
impacted customers to mitigate the effects of the supply
interruption on its operations and customer deliveries and that
the duration of the force majeure period and the potential
financial impact of the situation on the company are still
unknown.

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc.
-- http://hexionchem.com/-- makes thermosetting resins (or
thermosets).  Thermosets add a desired quality (heat resistance,
gloss, adhesion) to a number of different paints and adhesives.
Hexion also makes formaldehyde and other forest product resins,
epoxy resins, and raw materials for coatings and inks.  The
company has 86 manufacturing and distribution facilities in 18
countries.

The company has its Asian headquarters in Singapore, with
offices in Australia, China, Korea, Malaysia, New Zealand,
Taiwan, and Thailand.

                          *     *     *

Standard & Poor's Ratings Services assigned its 'B+' rating and
its recovery rating of '3' to Hexion Specialty's US$1.675
billion senior secured term loan and synthetic letter of credit
facilities.

The rating on the existing US$225 million revolving credit
facility was lowered to 'B+' with a recovery rating of '3', from
'BB-' with a recovery rating of '1', to reflect the similar
security package as the new term loan and synthetic letter of
credit facility.

The ratings on the existing senior second secured notes were
raised to 'B', with a recovery rating of '3', from 'B-' with a
recovery rating of '5'.  The ratings on the senior second
secured notes reflect the amount of priority claims of the
revolving facility and the first-lien term loan lenders.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating on Hexion and revised the outlook to stable from
negative.


INFOCOMMCENTRE PTE: Subjected to Wind-Up Petition by OCBC
---------------------------------------------------------
Oversea-Chinese Banking Corporation Limited has filed an
application to wind up Infocommcentre Pte Ltd on September 13,
2006.

The High Court of Singapore will hear the wind-up application on
October 6, 2006, at 10:00 a.m.

The Solicitors for the Petitioner can be reached at:

         Drew & Napier LLC
         20 Raffles Place #17-00
         Ocean Towers
         Singapore 048620


LEAR CORP: Production Cuts to Lower 2006 Net Sales by US$300 Mln
----------------------------------------------------------------
Lear Corporation discloses the impact of production cuts in
North America by major customers on its 2006 financial outlook.

The production cuts disclosed since the Company issued financial
guidance on July 28, 2006 are expected to negatively impact 2006
net sales by about US$300 million and income before interest,
other expense, income taxes, restructuring costs and other
special items by about 15% compared with prior guidance levels
of about US$18 billion in net sales and a range of US$400 to
US$440 million in core operating earnings.  The Company's
revised outlook for full-year free cash flow is slightly
positive.  The Company is continuing to aggressively implement
cost reduction and restructuring actions to mitigate the impact
of the production cuts and to align the Company's cost structure
to the current production outlook.

"We know our customers and our shareholders expect us to operate
as efficiently as we can, and we are proactively looking at
every aspect of our business for further improvement," Bob
Rossiter, chairman and chief executive officer, commented.
"While we remain positive about the longer-term outlook, we are
taking additional steps now to ensure that we remain financially
strong and even more competitive in the long run."

The Company further disclosed that while the production cuts
will adversely impact both the third and fourth quarters and
each of the Company's business segments, about two thirds of the
decline is in the fourth quarter and a disproportionate amount
is in the Interior segment.

The Company will discuss and update its outlook for the
remainder of 2006 and for 2007 when it releases third quarter
financial results on Oct. 26, 2006.

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

                          *     *     *

Standard & Poor's affirmed the 'B+' rating on the US$1 billion
first-lien term loan.  Standard & Poor's corporate credit rating
on Lear Corp. is B+/Negative/B-2.  The speculative-grade rating
reflects the company's depressed operating performance caused by
severe industry pressures.  The ratings were assigned since
March 29, 2006.

                      About Lear Corporation

Headquartered in Southfield, Michigan, Lear Corporation (NYSE:
LEA) -- http://www.lear.com/-- supplies automotive   interior
systems and components.  Lear provides complete seat systems,
electronic products and electrical distribution systems and
other interior products. Lear has operations in these Asian
countries: Singapore, China, India, Japan, the Philippines and
Thailand.

                          *     *     *

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


MILLENNIUM-WESTMONT: Pays Third Interim Dividend to Creditors
-------------------------------------------------------------
Millennium-Westmont Pte Ltd, which is in liquidation, has paid
the third interim dividend to its creditors on September 22,
2006.

The amount paid was 6.82 cents to a dollar to all admitted
claims.

The company's liquidator can be reached at:

         Ong Yew Huat
         c/o Ernst & Young
         10 Collyer Quay #23-05
         Ocean Building
         Singapore 049315


NHJ (SINGAPORE): Pays First and Final Dividend
----------------------------------------------
NHJ (Singapore) Pte Ltd, which underwent a creditors' voluntary
liquidation, has paid the first and final dividend on Sept. 21,
2006.

The creditors received 14.32 per centum to all admitted
unsecured claims.

The joint liquidator can be reached at:

         Aw Eng Hai
         331 North Bridge Road
         #04-04/05 Odeon Towers
         Singapore 188720


PETROLEO BRASILEIRO: Acquires 50% of Pasadena for US$360 Million
----------------------------------------------------------------
Petrobras America Inc., a wholly owned subsidiary of Petroleo
Brasileiro, has acquired 50% stake of Pasadena refinery for
US360 million.

Astra Oil Company, Inc., which owns Pasadena Refinery System
Inc. is conducting a study with Petrobras to expand Pasadena's
current capacity of 100,000 barrels of oil per day and install
units that will enable it to process heavy oils, including
Petrobras's Marlim production, and deliver high quality
products.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras --
http://www2.petrobras.com.br/ingles/index.asp-- was founded in
1953.  The company explores, produces, refines, transports,
markets, distributes oil and natural gas and power to various
wholesale customers and retaildistributors in Brazil.

Petrobras has operations in China, India, Japan, and Singapore.

                          *     *     *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

                          *     *     *

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

Maturity Date           Amount        Rate       Ratings
-------------           ------        ----       -------
April  1, 2008      US$400,000,000    9%          BB+
July   2, 2013      US$750,000,000    9.125%      BB+
Sept. 15, 2014      US$650,000,000    7.75%       BB+
Dec.  10, 2018      US$750,000,000    8.375%      BB+

                          *     *     *

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006


REFCO INC: Clarifies Trigger Date for Settlement with Lenders
-------------------------------------------------------------
Refco Inc., and its debtor-affiliates and Marc Kirschner, the
Chapter 11 trustee for Refco Capital Markets, Ltd., asked the
U.S. Bankruptcy Court for the Southern District of New York to
approve a settlement agreement with Bank of America, N.A., and a
syndicate of lenders under an Aug. 5, 2004, credit agreement.

Some customers of Refco F/X Associates, LLC, the Ad Hoc
Committee of Equity Security Holders of Refco, Inc., and RH
Capital Associates, LLC, and Pacific Investment Management
Company, LLC, the lead plaintiffs in In re Refco Inc. Securities
Litigation, Case No. 05-Civ.-8626 (GEL), objected to the motion.
On Sept. 20, 2006, the Refco Debtors filed an Amended Proposed
Order with the Court.

The Amended Order clarifies that the Trigger Date in the Lender
Settlement will occur at the earlier of:

   (i) the Payment Date; and

  (ii) the date -- Other Trigger Date -- on which Bank of
       America, N.A., as administrative agent, notifies Refco
       Group, Inc., the Chapter 11 trustee for RCM, and the
       Creditors Committees in writing that a Trigger Date has
       occurred.

Whether or not a Trigger Date has occurred, however, the Debtors
party to the Loan Documents will use their reasonable best
efforts to raise the funds required to pay, and to pay the
amounts required to be paid as promptly as possible.

If the Other Trigger Date will have occurred, and, at the time
of the Other Trigger Date, the Debtors party to the Loan
Documents do not have sufficient funds to pay the amounts in a
lump sum, the Debtors will pay the amounts as soon as possible
after the Other Trigger Date from whatever funds are available
to them, provided that:

   (i) any partial payments will be made in increments of no
       less than $1,000,000; and

  (ii) all amounts required to be paid will have been
       irrevocably paid in full and in cash not later than the
       Outside Payment Date.

The Amended Order also clarifies that the Lender Releases will
not include any person who is or was a director, officer,
employee, shareholder, affiliate, professional or advisor of a
Debtor or any affiliate of a Debtor, in that capacity.

The Amended Order also notes that payments from the BAWAG
Proceeds will reduce the Secured Claims against the Lenders'
Collateral.  If any Debtor, BAWAG, any other party-in-interest,
or their successors, assigns or representatives assert a claim
to or in respect of the BAWAG Proceeds allocated for the Lender
Settlement, the payments will be deemed to have been made from
the Collateral, and the claim will be asserted solely against
the Collateral unencumbered by the payments, and not against
BofA or any Lender.

Refco, LLC; its Chapter 7 trustee, Albert Togut; and Fimex
International, Ltd., have been removed from the list of
participating parties.

A full-text copy of the Amended Order is available at:
http://ResearchArchives.com/t/s?124d

A revised list of participating parties is available at:
http://ResearchArchives.com/t/s?124e

                         About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported $16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 42; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SEAGATE TECHNOLOGY: To Invest SGD1.3 Billion for Another Plant
--------------------------------------------------------------
Seagate Technology has disclosed on September 28, 2006, that it
will invest SGD1.3 billion, to build its third recording-disk
plant in Singapore, which will supply about 80% of Seagate's
total requirement of recording media.

The project includes construction, building and equipment spread
over the next four years, and will potentially create 3,000 new
jobs when the plant is fully operational and running at maximum
production capacity.  The manufacturing activities are expected
to start by mid-2008.

Bill Watkins, Seagate's chief executive officer said that,
Singapore has been a key strategic site for Seagate and the
investment plan will essentially establish Singapore as
Seagate's central media manufacturing hub.

"We will continue to make strategic investments in Singapore by
leveraging established infrastructure and tapping the
exceptional pool of technological and human resources this
island-nation has to offer.  We are also pleased to extend our
mutually beneficial partnership with the Singapore government,
which has shown tremendous support during the time that we have
operated here." Mr. Watkins added.

Accordingly, the Chairman of Singapore Economic Development
Board, Mr Teo Ming Kian, has been glad that through Seagate's
new investment into its third media plant, Singapore will
strengthen its ecosystem for hard disk drives and will lead a
key manufacturing location for hard disc media globally.

Initially, the new facility is expected to require nearly 1,000
employees.  The headcount could potentially grow to 3,000 when
the plant is operating at maximum production capacity depending
on the global requirement for recording media.

Piling works will start later on 2006, and manufacturing
activities on the first production floor are expected to begin
in the first half of 2008.

Headquartered in Scotts Valley, California, Seagate Technology
-- http://www.seagate.com/-- is the worldwide leader in the
design, manufacturing and marketing of hard disc drives,
providing products for a wide-range of Enterprise, Desktop,
Mobile Computing, and Consumer Electronics applications.
Seagate's business model leverages technology leadership and
world-class manufacturing to deliver industry-leading innovation
and quality to its global customers, and to be the low cost
producer in all markets in which it participates.  The company
is committed to providing award-winning products, customer
support and reliability to meet the world's growing demand for
information storage.

Seagate Technology has R&D and product sites in: Silicon Valley,
California; Pittsburgh, Pennsylvania; Longmont, Colorado;
Bloomington and Shakopee, Minnesota; Springtown, Northern
Ireland; and Singapore.  Manufacturing and customer service
sites are located in: Singapore, California; Colorado;
Minnesota; Oklahoma; Northern Ireland; China; Thailand and
Malaysia.

                          *     *     *

Moody's confirmed Seagate's Corporate Family Rating of Ba1 and
upgraded ratings of Seagate's US$400 million senior notes 8%,
due 2009 to Ba1, Maxtor's remaining US$135 million of the US$230
million 6.8% convertible senior notes, due 2010 to Ba1 from B2
and Maxtor Corporation's US$60 million 5-3/4% convertible
subordinated debentures, due 2012 to Ba2 from Caa1.  The rating
outlook is stable.

                          *     *     *

Standard and Poor's gave the company a 'BB' rating for both its
long term foreign and long term local issuer credit effective on
November 6, 2000.


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

BANGKOK STEEL: Posts THB654.70 Mil. Net Loss in 1st Half '06
------------------------------------------------------------
Bangkok Steel Industry Pcl submitted on September 14, 2006, its
financial report for the six months period ended June 30, 2006,
to the Stock Exchange of Thailand.

The company's consolidated financial statement showed
THB654.696 million in net loss on THB5.60 billion revenues in
its first half operations, compared with THB944.38 million net
profit on THB8.019-billion revenues posted in the first half of
2005.

Total current assets of the company and its subsidiaries as of
June 30, 2006, amounted to THB4.589 billion, while current
liabilities totaled to THB687.340 million.

Bangkok Steel's balance sheet reflected total assets at
THB16.591-billion and THB24.852 billion in total liabilities.
Total capital deficiency amounted to THB8.261 billion.

Somchai Kurujitkosol of S.K. Accountant Services Co. Ltd
expressed substantial doubt about Bangkok Steel's ability to
continue as a going concern after auditing its financial
statements for the first half of 2006.

Mr. Somchai specifically pointed to the company's outstanding
balance of debts as of June 30, 2006, amounting to THBB34.557
billion which are divided to principal of THBB26.157 billion and
interest of THB8.400 billion.

A full text copy of the company's financial statement for the
first half period ended June 30, 2006, is available for free at:

         http://bankrupt.com/misc/BSIE1-1h-ar.doc

         http://bankrupt.com/misc/BSIE2-1h-06.xls

         http://bankrupt.com/misc/BSIE2-1h-06-fs.xls


                          *     *     *

Bangkok Steel Industry Public Company Limited --
http://www.bangkoksteel.co.th/-- manufactures reinforcing steel
bars including deformed steel bars under "BSI" brand name, and
galvanized iron flat sheets under "Singha" brand name.
Additionally, the Company provides steel fabrication services
for machinery installations and large containers, and is a
licensee of "Kone" cranes from Finland.

On December 22, 2003, the Supreme Court ordered the Company to
rehabilitate its business in accordance with Thailand's
Bankruptcy Act.  On April 19, 2004, the Central Bankruptcy Court
appointed C.J. Morgan Co., Ltd. and Panya Intellect Co., Ltd. to
be its business rehabilitation planners.  The comptroller of
Bankruptcy head invited the debtors, creditors and lenders to
lodge the claim for settlement of debts with the Company.  The
total claims lodged by the appellants amounted to approximately
THB59.09 billion which were the outstanding balance in the
Company's accounts approximately THB18.91 billion and
commitments and contingent liabilities of THB40.18 billion.

The Company's business rehabilitation plan, dated December 19,
2004, was accepted three days later, and on February 7, 2005,
Thailand's Central Bankruptcy Court entered an order approving
that plan.

On November 30, 2005, the creditors' meeting moved to amend the
Company's business rehabilitation plan, which the Central
Bankruptcy Court agreed to on December 26, 2005.
The company is currently listed under the "Non-Performing Group"
sector of the Stock Exchange of Thailand.


BANK OF AYUDHYA: Delays THB22-Billion Share Sale to GE
------------------------------------------------------
Bank of Ayudhya Pcl announced on September 29, 2006, that it had
agreed with a unit of General Electric to postpone its
THB22 billion (US$586- million) sale to January, Reuters
reports.

The bank, according to Reuters, had planned to complete the sale
on October 10, 2006, but said in a statement the delay was due
to a change of situation following Thailand's recent military
coup.

As reported in the Troubled Company Reporter - Asia Pacific, BAY
has agreed to sell 2 billion shares to the GE unit, starting
with initial purchase of 1.39 billion shares, or a 24.5% stake
in the bank, to be sold at THB16 each totaling THB22.24 billion.

Easy Bourse relates that Dow Jones Newswires contacted GE and
said that it's still "positive" about the planned investment,
and the postponement is just to give the U.S. company more time
to assess the situation.

"We are looking to complete the deal by January 10," Paradai
Threerathada, a spokesman for GE in Thailand, and Vice President
for Communications, GE Money Thailand, told Easy Bourse.

                          *     *     *

Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of
banking and financial services.  The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches.  It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.

                          *     *     *

Moody's Investors Service gave Bank of Ayudha an 'E+' bank
financial strength rating.

Fitch Ratings gave the bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating, a 'B' Short-Term Foreign Currency Rating,
a 'BB' Foreign Currency Subordinated Debt Rating, and a 'D'
Individual Rating.


                            *********

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
James 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
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mail.  Additional e-mail subscriptions for members of the same
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                 *** End of Transmission ***